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.