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[Introduced][Status][Bill Documents][Fiscal Note] [Bills Directory]

H.B. 232 Enrolled

             1     

CAMPAIGN AND FINANCIAL REPORTING

             2     
REQUIREMENTS REVISIONS

             3     
2009 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Douglas C. Aagard

             6     
Senate Sponsor: Peter C. Knudson

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill changes certain definitions in Title 20A, Chapter 11, Campaign and Financial
             11      Reporting Requirements.
             12      Highlighted Provisions:
             13          This bill:
             14          .    changes definitions concerning corporations, political action committees, political
             15      issues committees, and political issues expenditures;
             16          .    eliminates a definition; and
             17          .    makes technical changes.
             18      Monies Appropriated in this Bill:
             19          None
             20      Other Special Clauses:
             21          None
             22      Utah Code Sections Affected:
             23      AMENDS:
             24          20A-11-101, as last amended by Laws of Utah 2008, Chapters 14 and 49
             25          20A-11-1202, as last amended by Laws of Utah 2008, Chapters 225 and 360
             26     
             27      Be it enacted by the Legislature of the state of Utah:
             28          Section 1. Section 20A-11-101 is amended to read:
             29           20A-11-101. Definitions.


             30          As used in this chapter:
             31          (1) "Address" means the number and street where an individual resides or where a
             32      reporting entity has its principal office.
             33          (2) "Ballot proposition" includes initiatives, referenda, proposed constitutional
             34      amendments, and any other ballot propositions submitted to the voters that are authorized by
             35      the Utah Code Annotated 1953.
             36          (3) "Candidate" means any person who:
             37          (a) files a declaration of candidacy for a public office; or
             38          (b) receives contributions, makes expenditures, or gives consent for any other person
             39      to receive contributions or make expenditures to bring about the person's nomination or
             40      election to a public office.
             41          (4) "Chief election officer" means:
             42          (a) the lieutenant governor for state office candidates, legislative office candidates,
             43      officeholders, political parties, political action committees, corporations, political issues
             44      committees, and state school board candidates; and
             45          (b) the county clerk for local school board candidates.
             46          (5) "Continuing political party" means an organization of voters that participated in
             47      the last regular general election and polled a total vote equal to 2% or more of the total votes
             48      cast for all candidates for the United States House of Representatives.
             49          (6) (a) "Contribution" means any of the following when done for political purposes:
             50          (i) a gift, subscription, donation, loan, advance, or deposit of money or anything of
             51      value given to the filing entity;
             52          (ii) an express, legally enforceable contract, promise, or agreement to make a gift,
             53      subscription, donation, unpaid or partially unpaid loan, advance, or deposit of money or
             54      anything of value to the filing entity;
             55          (iii) any transfer of funds from another reporting entity or a corporation to the filing
             56      entity;
             57          (iv) compensation paid by any person or reporting entity other than the filing entity for


             58      personal services provided without charge to the filing entity;
             59          (v) remuneration from any organization or its directly affiliated organization that has a
             60      registered lobbyist to compensate a legislator for a loss of salary or income while the
             61      Legislature is in session;
             62          (vi) salaries or other remuneration paid to a legislator by any agency or subdivision of
             63      the state, including school districts, for the period the Legislature is in session; and
             64          (vii) goods or services provided to or for the benefit of the filing entity at less than fair
             65      market value.
             66          (b) "Contribution" does not include:
             67          (i) services provided without compensation by individuals volunteering a portion or all
             68      of their time on behalf of the filing entity; or
             69          (ii) money lent to the filing entity by a financial institution in the ordinary course of
             70      business.
             71          (7) (a) "Corporation" means a domestic or foreign, profit or nonprofit, business
             72      organization that is registered as a corporation or is authorized to do business in a state and
             73      makes any expenditure from corporate funds for:
             74          (i) the purpose of expressly advocating for political purposes; or
             75          (ii) the purpose of [influencing] expressly advocating the approval or the defeat of any
             76      ballot proposition.
             77          (b) "Corporation" does not mean:
             78          (i) a business organization's political action committee or political issues committee;
             79      or
             80          (ii) a business entity organized as a partnership or a sole proprietorship.
             81          (8) "Detailed listing" means:
             82          (a) for each contribution or public service assistance:
             83          (i) the name and address of the individual or source making the contribution or public
             84      service assistance;
             85          (ii) the amount or value of the contribution or public service assistance; and


             86          (iii) the date the contribution or public service assistance was made; and
             87          (b) for each expenditure:
             88          (i) the amount of the expenditure;
             89          (ii) the person or entity to whom it was disbursed;
             90          (iii) the specific purpose, item, or service acquired by the expenditure; and
             91          (iv) the date the expenditure was made.
             92          (9) "Election" means each:
             93          (a) regular general election;
             94          (b) regular primary election; and
             95          (c) special election at which candidates are eliminated and selected.
             96          (10) (a) "Expenditure" means:
             97          (i) any disbursement from contributions, receipts, or from the separate bank account
             98      required by this chapter;
             99          (ii) a purchase, payment, donation, distribution, loan, advance, deposit, gift of money,
             100      or anything of value made for political purposes;
             101          (iii) an express, legally enforceable contract, promise, or agreement to make any
             102      purchase, payment, donation, distribution, loan, advance, deposit, gift of money, or anything
             103      of value for political purposes;
             104          (iv) compensation paid by a corporation or filing entity for personal services rendered
             105      by a person without charge to a reporting entity;
             106          (v) a transfer of funds between the filing entity and a candidate's personal campaign
             107      committee; or
             108          (vi) goods or services provided by the filing entity to or for the benefit of another
             109      reporting entity for political purposes at less than fair market value.
             110          (b) "Expenditure" does not include:
             111          (i) services provided without compensation by individuals volunteering a portion or all
             112      of their time on behalf of a reporting entity;
             113          (ii) money lent to a reporting entity by a financial institution in the ordinary course of


             114      business; or
             115          (iii) anything listed in Subsection (10)(a) that is given by a corporation or reporting
             116      entity to candidates for office or officeholders in states other than Utah.
             117          (11) "Filing entity" means the reporting entity that is filing a financial statement
             118      required by this chapter.
             119          (12) "Financial statement" includes any summary report, interim report, verified
             120      financial statement, or other statement disclosing contributions, expenditures, receipts,
             121      donations, or disbursements that is required by this chapter.
             122          (13) "Governing board" means the individual or group of individuals that determine
             123      the candidates and committees that will receive expenditures from a political action
             124      committee.
             125          (14) "Incorporation" means the process established by Title 10, Chapter 2, Part 1,
             126      Incorporation, by which a geographical area becomes legally recognized as a city or town.
             127          (15) "Incorporation election" means the election authorized by Section 10-2-111 .
             128          (16) "Incorporation petition" means a petition authorized by Section 10-2-109 .
             129          (17) "Individual" means a natural person.
             130          (18) "Interim report" means a report identifying the contributions received and
             131      expenditures made since the last report.
             132          (19) "Legislative office" means the office of state senator, state representative, speaker
             133      of the House of Representatives, president of the Senate, and the leader, whip, and assistant
             134      whip of any party caucus in either house of the Legislature.
             135          (20) "Legislative office candidate" means a person who:
             136          (a) files a declaration of candidacy for the office of state senator or state
             137      representative;
             138          (b) declares himself to be a candidate for, or actively campaigns for, the position of
             139      speaker of the House of Representatives, president of the Senate, or the leader, whip, and
             140      assistant whip of any party caucus in either house of the Legislature; and
             141          (c) receives contributions, makes expenditures, or gives consent for any other person


             142      to receive contributions or make expenditures to bring about the person's nomination or
             143      election to a legislative office.
             144          (21) "Newly registered political party" means an organization of voters that has
             145      complied with the petition and organizing procedures of this chapter to become a registered
             146      political party.
             147          (22) "Officeholder" means a person who holds a public office.
             148          (23) "Party committee" means any committee organized by or authorized by the
             149      governing board of a registered political party.
             150          (24) "Person" means both natural and legal persons, including individuals, business
             151      organizations, personal campaign committees, party committees, political action committees,
             152      political issues committees, labor unions, and labor organizations.
             153          (25) "Personal campaign committee" means the committee appointed by a candidate
             154      to act for the candidate as provided in this chapter.
             155          (26) (a) "Political action committee" means an entity, or any group of individuals or
             156      entities within or outside this state, [that solicits or receives] a major purpose of which is to:
             157          (i) solicit or receive contributions from any other person, group, or entity for political
             158      purposes; or [makes expenditures:]
             159          [(i) for political purposes; or]
             160          [(ii) with the intent or in a way to influence or tend to influence, directly or indirectly,]
             161          (ii) make expenditures to expressly advocate for any person to refrain from voting or
             162      to vote for or against any candidate for a municipal or county office.
             163          (b) "Political action committee" includes groups affiliated with a registered political
             164      party but not authorized or organized by the governing board of the registered political party
             165      that receive contributions or makes expenditures for political purposes.
             166          (c) "Political action committee" does not mean:
             167          (i) a party committee;
             168          (ii) any entity that provides goods or services to a candidate or committee in the
             169      regular course of its business at the same price that would be provided to the general public;


             170          (iii) an individual;
             171          (iv) individuals who are related and who make contributions from a joint checking
             172      account;
             173          (v) a corporation, except a corporation a major purpose of which is to act as a political
             174      action committee; or
             175          (vi) a personal campaign committee.
             176          (27) "Political convention" means a county or state political convention held by a
             177      registered political party to select candidates.
             178          (28) (a) "Political issues committee" means an entity, or any group of individuals or
             179      entities within or outside this state, [that solicits or receives] a major purpose of which is to:
             180          (i) solicit or receive donations from any other person, group, or entity [or makes
             181      disbursements to influence, or to intend to influence, directly or indirectly, any person to: (i)]
             182      to assist in placing a ballot proposition on the ballot, assist in keeping a ballot proposition off
             183      the ballot, or to advocate that a voter refrain from voting or vote for or vote against any ballot
             184      proposition; [or]
             185          (ii) make expenditures to expressly advocate for any person to sign or refuse to sign
             186      [an] a ballot proposition or incorporation petition or refrain from voting, vote for, or vote
             187      against any proposed ballot proposition or an incorporation in an incorporation election[.]; or
             188          (iii) make expenditures to assist in qualifying or placing a ballot proposition on the
             189      ballot or to assist in keeping a ballot proposition off the ballot.
             190          (b) "Political issues committee" does not mean:
             191          (i) a registered political party or a party committee;
             192          (ii) any entity that provides goods or services to an individual or committee in the
             193      regular course of its business at the same price that would be provided to the general public;
             194          (iii) an individual;
             195          (iv) individuals who are related and who make contributions from a joint checking
             196      account; or
             197          (v) a corporation, except a corporation [whose apparent] a major purpose of which is


             198      to act as a political issues committee.
             199          (29) (a) "Political issues contribution" means any of the following:
             200          (i) a gift, subscription, unpaid or partially unpaid loan, advance, or deposit of money
             201      or anything of value given to a political issues committee;
             202          (ii) an express, legally enforceable contract, promise, or agreement to make a political
             203      issues donation to influence the approval or defeat of any ballot proposition;
             204          (iii) any transfer of funds received by a political issues committee from a reporting
             205      entity;
             206          (iv) compensation paid by another reporting entity for personal services rendered
             207      without charge to a political issues committee; and
             208          (v) goods or services provided to or for the benefit of a political issues committee at
             209      less than fair market value.
             210          (b) "Political issues contribution" does not include:
             211          (i) services provided without compensation by individuals volunteering a portion or all
             212      of their time on behalf of a political issues committee; or
             213          (ii) money lent to a political issues committee by a financial institution in the ordinary
             214      course of business.
             215          (30) (a) "Political issues expenditure" means any of the following:
             216          (i) any payment from political issues contributions made for the purpose of
             217      influencing the approval or the defeat of:
             218          (A) a ballot proposition; or
             219          (B) an incorporation petition or incorporation election;
             220          (ii) a purchase, payment, distribution, loan, advance, deposit, or gift of money made
             221      for the express purpose of influencing the approval or the defeat of:
             222          (A) a ballot proposition; or
             223          (B) an incorporation petition or incorporation election;
             224          (iii) an express, legally enforceable contract, promise, or agreement to make any
             225      political issues expenditure;


             226          (iv) compensation paid by a reporting entity for personal services rendered by a person
             227      without charge to a political issues committee; or
             228          (v) goods or services provided to or for the benefit of another reporting entity at less
             229      than fair market value.
             230          (b) "Political issues expenditure" does not include:
             231          (i) services provided without compensation by individuals volunteering a portion or all
             232      of their time on behalf of a political issues committee; or
             233          (ii) money lent to a political issues committee by a financial institution in the ordinary
             234      course of business.
             235          (31) "Political purposes" means an act done with the intent or in a way to influence or
             236      tend to influence, directly or indirectly, any person to refrain from voting or to vote for or
             237      against any candidate for public office or municipal or county office at any caucus, political
             238      convention, primary, or election.
             239          (32) "Primary election" means any regular primary election held under the election
             240      laws.
             241          (33) "Public office" means the office of governor, lieutenant governor, state auditor,
             242      state treasurer, attorney general, state or local school board member, state senator, state
             243      representative, speaker of the House of Representatives, president of the Senate, and the
             244      leader, whip, and assistant whip of any party caucus in either house of the Legislature.
             245          (34) (a) "Public service assistance" means the following when given or provided to an
             246      officeholder to defray the costs of functioning in a public office or aid the officeholder to
             247      communicate with the officeholder's constituents:
             248          (i) a gift, subscription, donation, unpaid or partially unpaid loan, advance, or deposit
             249      of money or anything of value to an officeholder; or
             250          (ii) goods or services provided at less than fair market value to or for the benefit of the
             251      officeholder.
             252          (b) "Public service assistance" does not include:
             253          (i) anything provided by the state;


             254          (ii) services provided without compensation by individuals volunteering a portion or
             255      all of their time on behalf of an officeholder;
             256          (iii) money lent to an officeholder by a financial institution in the ordinary course of
             257      business;
             258          (iv) news coverage or any publication by the news media; or
             259          (v) any article, story, or other coverage as part of any regular publication of any
             260      organization unless substantially all the publication is devoted to information about the
             261      officeholder.
             262          (35) "Publicly identified class of individuals" means a group of 50 or more individuals
             263      sharing a common occupation, interest, or association that contribute to a political action
             264      committee or political issues committee and whose names can be obtained by contacting the
             265      political action committee or political issues committee upon whose financial report they are
             266      listed.
             267          (36) "Receipts" means contributions and public service assistance.
             268          (37) "Registered lobbyist" means a person registered under Title 36, Chapter 11,
             269      Lobbyist Disclosure and Regulation Act.
             270          (38) "Registered political action committee" means any political action committee that
             271      is required by this chapter to file a statement of organization with the lieutenant governor's
             272      office.
             273          (39) "Registered political issues committee" means any political issues committee that
             274      is required by this chapter to file a statement of organization with the lieutenant governor's
             275      office.
             276          (40) "Registered political party" means an organization of voters that:
             277          (a) participated in the last regular general election and polled a total vote equal to 2%
             278      or more of the total votes cast for all candidates for the United States House of Representatives
             279      for any of its candidates for any office; or
             280          (b) has complied with the petition and organizing procedures of this chapter.
             281          (41) "Reporting entity" means a candidate, a candidate's personal campaign


             282      committee, an officeholder, a party committee, a political action committee, and a political
             283      issues committee.
             284          (42) "School board office" means the office of state school board or local school
             285      board.
             286          (43) (a) "Source" means the person or entity that is the legal owner of the tangible or
             287      intangible asset that comprises the contribution.
             288          (b) "Source" means, for political action committees and corporations, the political
             289      action committee and the corporation as entities, not the contributors to the political action
             290      committee or the owners or shareholders of the corporation.
             291          (44) "State office" means the offices of governor, lieutenant governor, attorney
             292      general, state auditor, and state treasurer.
             293          (45) "State office candidate" means a person who:
             294          (a) files a declaration of candidacy for a state office; or
             295          (b) receives contributions, makes expenditures, or gives consent for any other person
             296      to receive contributions or make expenditures to bring about the person's nomination or
             297      election to a state office.
             298          (46) "Summary report" means the year end report containing the summary of a
             299      reporting entity's contributions and expenditures.
             300          (47) "Supervisory board" means the individual or group of individuals that allocate
             301      expenditures from a political issues committee.
             302          Section 2. Section 20A-11-1202 is amended to read:
             303           20A-11-1202. Definitions.
             304          As used in this part:
             305          (1) "Ballot proposition" means constitutional amendments, initiatives, referenda,
             306      judicial retention questions, opinion questions, bond approvals, or other questions submitted
             307      to the voters for their approval or rejection.
             308          (2) (a) "Commercial interlocal cooperation agency" means an interlocal cooperation
             309      agency that receives its revenues from conduct of its commercial operations.


             310          (b) "Commercial interlocal cooperation agency" does not mean an interlocal
             311      cooperation agency that receives some or all of its revenues from:
             312          (i) government appropriations;
             313          (ii) taxes;
             314          (iii) government fees imposed for regulatory or revenue raising purposes; or
             315          (iv) interest earned on public funds or other returns on investment of public funds.
             316          (3) "Expenditure" means:
             317          (a) a purchase, payment, donation, distribution, loan, advance, deposit, gift of money,
             318      or anything of value;
             319          (b) an express, legally enforceable contract, promise, or agreement to make any
             320      purchase, payment, donation, distribution, loan, advance, deposit, gift of money, or anything
             321      of value;
             322          (c) a transfer of funds between a public entity and a candidate's personal campaign
             323      committee;
             324          (d) a transfer of funds between a public entity and a political issues committee; or
             325          (e) goods or services provided to or for the benefit of a candidate, a candidate's
             326      personal campaign committee, or a political issues committee for political purposes at less
             327      than fair market value.
             328          (4) "Governmental interlocal cooperation agency" means an interlocal cooperation
             329      agency that receives some or all of its revenues from:
             330          (a) government appropriations;
             331          (b) taxes;
             332          (c) government fees imposed for regulatory or revenue raising purposes; or
             333          (d) interest earned on public funds or other returns on investment of public funds.
             334          (5) (a) "Influence" means to campaign or advocate for or against a ballot proposition.
             335          (b) "Influence" does not mean providing a brief statement about a public entity's
             336      position on a ballot proposition and the reason for that position.
             337          (6) "Interlocal cooperation agency" means an entity created by interlocal agreement


             338      under the authority of Title 11, Chapter 13, Interlocal Cooperation Act.
             339          (7) "Local district" means an entity under Title 17B, Limited Purpose Local
             340      Government Entities - Local Districts, and includes a special service district under Title 17D,
             341      Chapter 1, Special Service District Act.
             342          [(8) (a) "Political issues committee" means an entity, or any group of individuals or
             343      entities within or outside this state, that solicits or receives a contribution from any other
             344      person, group, or entity and makes an expenditure from one or more contributions to
             345      influence, or to intend to influence, directly or indirectly, any person to assist in placing a
             346      ballot proposition on the ballot, to assist in keeping a ballot proposition off the ballot, or to
             347      refrain from voting or to vote for or to vote against any ballot proposition.]
             348          [(b) "Political issues committee" does not mean an entity that provides goods or
             349      services to an individual or committee in the regular course of its business at the same price
             350      that would be provided to the general public.]
             351          [(9)] (8) "Political purposes" means an act done with the intent or in a way to
             352      influence or intend to influence, directly or indirectly, any person to refrain from voting or to
             353      vote for or against any candidate for public office at any caucus, political convention, primary,
             354      or election.
             355          [(10)] (9) (a) "Public entity" includes the state, each state agency, each county,
             356      municipality, school district, local district, governmental interlocal cooperation agency, and
             357      each administrative subunit of each of them.
             358          (b) "Public entity" does not include a commercial interlocal cooperation agency.
             359          (c) "Public entity" includes local health departments created under Title 26, Chapter 1,
             360      [Local Health Departments] Department of Health Organization.
             361          [(11)] (10) (a) "Public funds" means any monies received by a public entity from
             362      appropriations, taxes, fees, interest, or other returns on investment.
             363          (b) "Public funds" does not include monies donated to a public entity by a person or
             364      entity.
             365          [(12)] (11) (a) "Public official" means an elected or appointed member of government


             366      with authority to make or determine public policy.
             367          (b) "Public official" includes the person or group that:
             368          (i) has supervisory authority over the personnel and affairs of a public entity; and
             369          (ii) approves the expenditure of funds for the public entity.
             370          [(13)] (12) (a) "State agency" means each department, commission, board, council,
             371      agency, institution, officer, corporation, fund, division, office, committee, authority,
             372      laboratory, library, unit, bureau, panel, or other administrative unit of the state.
             373          (b) "State agency" includes the legislative branch, the Board of Regents, the
             374      institutional councils of each higher education institution, and each higher education
             375      institution.


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