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First Substitute H.B. 232

Representative Douglas C. Aagard proposes the following substitute bill:


             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 to
             39      receive contributions or make expenditures to bring about the person's nomination or election
             40      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 the
             47      last regular general election and polled a total vote equal to 2% or more of the total votes cast
             48      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; or
             79          (ii) a business entity organized as a partnership or a sole proprietorship.
             80          (8) "Detailed listing" means:
             81          (a) for each contribution or public service assistance:
             82          (i) the name and address of the individual or source making the contribution or public
             83      service assistance;
             84          (ii) the amount or value of the contribution or public service assistance; and
             85          (iii) the date the contribution or public service assistance was made; and
             86          (b) for each expenditure:
             87          (i) the amount of the expenditure;


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


             119      financial statement, or other statement disclosing contributions, expenditures, receipts,
             120      donations, or disbursements that is required by this chapter.
             121          (13) "Governing board" means the individual or group of individuals that determine the
             122      candidates and committees that will receive expenditures from a political action committee.
             123          (14) "Incorporation" means the process established by Title 10, Chapter 2, Part 1,
             124      Incorporation, by which a geographical area becomes legally recognized as a city or town.
             125          (15) "Incorporation election" means the election authorized by Section 10-2-111 .
             126          (16) "Incorporation petition" means a petition authorized by Section 10-2-109 .
             127          (17) "Individual" means a natural person.
             128          (18) "Interim report" means a report identifying the contributions received and
             129      expenditures made since the last report.
             130          (19) "Legislative office" means the office of state senator, state representative, speaker
             131      of the House of Representatives, president of the Senate, and the leader, whip, and assistant
             132      whip of any party caucus in either house of the Legislature.
             133          (20) "Legislative office candidate" means a person who:
             134          (a) files a declaration of candidacy for the office of state senator or state representative;
             135          (b) declares himself to be a candidate for, or actively campaigns for, the position of
             136      speaker of the House of Representatives, president of the Senate, or the leader, whip, and
             137      assistant whip of any party caucus in either house of the Legislature; and
             138          (c) receives contributions, makes expenditures, or gives consent for any other person to
             139      receive contributions or make expenditures to bring about the person's nomination or election
             140      to a legislative office.
             141          (21) "Newly registered political party" means an organization of voters that has
             142      complied with the petition and organizing procedures of this chapter to become a registered
             143      political party.
             144          (22) "Officeholder" means a person who holds a public office.
             145          (23) "Party committee" means any committee organized by or authorized by the
             146      governing board of a registered political party.
             147          (24) "Person" means both natural and legal persons, including individuals, business
             148      organizations, personal campaign committees, party committees, political action committees,
             149      political issues committees, labor unions, and labor organizations.


             150          (25) "Personal campaign committee" means the committee appointed by a candidate to
             151      act for the candidate as provided in this chapter.
             152          (26) (a) "Political action committee" means an entity, or any group of individuals or
             153      entities within or outside this state, [that solicits or receives] a major purpose of which is to:
             154          (i) solicit or receive contributions from any other person, group, or entity for political
             155      purposes; or [makes expenditures:]
             156          [(i) for political purposes; or]
             157          [(ii) with the intent or in a way to influence or tend to influence, directly or indirectly,]
             158          (ii) make expenditures to expressly advocate for any person to refrain from voting or to
             159      vote for or against any candidate for a municipal or county office.
             160          (b) "Political action committee" includes groups affiliated with a registered political
             161      party but not authorized or organized by the governing board of the registered political party
             162      that receive contributions or makes expenditures for political purposes.
             163          (c) "Political action committee" does not mean:
             164          (i) a party committee;
             165          (ii) any entity that provides goods or services to a candidate or committee in the regular
             166      course of its business at the same price that would be provided to the general public;
             167          (iii) an individual;
             168          (iv) individuals who are related and who make contributions from a joint checking
             169      account;
             170          (v) a corporation, except a corporation a major purpose of which is to act as a political
             171      action committee; or
             172          (vi) a personal campaign committee.
             173          (27) "Political convention" means a county or state political convention held by a
             174      registered political party to select candidates.
             175          (28) (a) "Political issues committee" means an entity, or any group of individuals or
             176      entities within or outside this state, [that solicits or receives] a major purpose of which is to:
             177          (i) solicit or receive donations from any other person, group, or entity [or makes
             178      disbursements to influence, or to intend to influence, directly or indirectly, any person to: (i)] to
             179      assist in placing a ballot proposition on the ballot, assist in keeping a ballot proposition off the
             180      ballot, or to advocate that a voter refrain from voting or vote for or vote against any ballot


             181      proposition; [or]
             182          (ii) make expenditures to expressly advocate for any person to sign or refuse to sign
             183      [an] a ballot proposition or incorporation petition or refrain from voting, vote for, or vote
             184      against any proposed ballot proposition or an incorporation in an incorporation election[.]; or
             185          (iii) make expenditures to assist in qualifying or placing a ballot proposition on the
             186      ballot or to assist in keeping a ballot proposition off the ballot.
             187          (b) "Political issues committee" does not mean:
             188          (i) a registered political party or a party committee;
             189          (ii) any entity that provides goods or services to an individual or committee in the
             190      regular course of its business at the same price that would be provided to the general public;
             191          (iii) an individual;
             192          (iv) individuals who are related and who make contributions from a joint checking
             193      account; or
             194          (v) a corporation, except a corporation [whose apparent] a major purpose of which is to
             195      act as a political issues committee.
             196          (29) (a) "Political issues contribution" means any of the following:
             197          (i) a gift, subscription, unpaid or partially unpaid loan, advance, or deposit of money or
             198      anything of value given to a political issues committee;
             199          (ii) an express, legally enforceable contract, promise, or agreement to make a political
             200      issues donation to influence the approval or defeat of any ballot proposition;
             201          (iii) any transfer of funds received by a political issues committee from a reporting
             202      entity;
             203          (iv) compensation paid by another reporting entity for personal services rendered
             204      without charge to a political issues committee; and
             205          (v) goods or services provided to or for the benefit of a political issues committee at
             206      less than fair market value.
             207          (b) "Political issues contribution" does not include:
             208          (i) services provided without compensation by individuals volunteering a portion or all
             209      of their time on behalf of a political issues committee; or
             210          (ii) money lent to a political issues committee by a financial institution in the ordinary
             211      course of business.


             212          (30) (a) "Political issues expenditure" means any of the following:
             213          (i) any payment from political issues contributions made for the purpose of influencing
             214      the approval or the defeat of:
             215          (A) a ballot proposition; or
             216          (B) an incorporation petition or incorporation election;
             217          (ii) a purchase, payment, distribution, loan, advance, deposit, or gift of money made for
             218      the express purpose of influencing the approval or the defeat of:
             219          (A) a ballot proposition; or
             220          (B) an incorporation petition or incorporation election;
             221          (iii) an express, legally enforceable contract, promise, or agreement to make any
             222      political issues expenditure;
             223          (iv) compensation paid by a reporting entity for personal services rendered by a person
             224      without charge to a political issues committee; or
             225          (v) goods or services provided to or for the benefit of another reporting entity at less
             226      than fair market value.
             227          (b) "Political issues expenditure" does not include:
             228          (i) services provided without compensation by individuals volunteering a portion or all
             229      of their time on behalf of a political issues committee; or
             230          (ii) money lent to a political issues committee by a financial institution in the ordinary
             231      course of business.
             232          (31) "Political purposes" means an act done with the intent or in a way to influence or
             233      tend to influence, directly or indirectly, any person to refrain from voting or to vote for or
             234      against any candidate for public office or municipal or county office at any caucus, political
             235      convention, primary, or election.
             236          (32) "Primary election" means any regular primary election held under the election
             237      laws.
             238          (33) "Public office" means the office of governor, lieutenant governor, state auditor,
             239      state treasurer, attorney general, state or local school board member, state senator, state
             240      representative, speaker of the House of Representatives, president of the Senate, and the leader,
             241      whip, and assistant whip of any party caucus in either house of the Legislature.
             242          (34) (a) "Public service assistance" means the following when given or provided to an


             243      officeholder to defray the costs of functioning in a public office or aid the officeholder to
             244      communicate with the officeholder's constituents:
             245          (i) a gift, subscription, donation, unpaid or partially unpaid loan, advance, or deposit of
             246      money or anything of value to an officeholder; or
             247          (ii) goods or services provided at less than fair market value to or for the benefit of the
             248      officeholder.
             249          (b) "Public service assistance" does not include:
             250          (i) anything provided by the state;
             251          (ii) services provided without compensation by individuals volunteering a portion or all
             252      of their time on behalf of an officeholder;
             253          (iii) money lent to an officeholder by a financial institution in the ordinary course of
             254      business;
             255          (iv) news coverage or any publication by the news media; or
             256          (v) any article, story, or other coverage as part of any regular publication of any
             257      organization unless substantially all the publication is devoted to information about the
             258      officeholder.
             259          (35) "Publicly identified class of individuals" means a group of 50 or more individuals
             260      sharing a common occupation, interest, or association that contribute to a political action
             261      committee or political issues committee and whose names can be obtained by contacting the
             262      political action committee or political issues committee upon whose financial report they are
             263      listed.
             264          (36) "Receipts" means contributions and public service assistance.
             265          (37) "Registered lobbyist" means a person registered under Title 36, Chapter 11,
             266      Lobbyist Disclosure and Regulation Act.
             267          (38) "Registered political action committee" means any political action committee that
             268      is required by this chapter to file a statement of organization with the lieutenant governor's
             269      office.
             270          (39) "Registered political issues committee" means any political issues committee that
             271      is required by this chapter to file a statement of organization with the lieutenant governor's
             272      office.
             273          (40) "Registered political party" means an organization of voters that:


             274          (a) participated in the last regular general election and polled a total vote equal to 2%
             275      or more of the total votes cast for all candidates for the United States House of Representatives
             276      for any of its candidates for any office; or
             277          (b) has complied with the petition and organizing procedures of this chapter.
             278          (41) "Reporting entity" means a candidate, a candidate's personal campaign committee,
             279      an officeholder, a party committee, a political action committee, and a political issues
             280      committee.
             281          (42) "School board office" means the office of state school board or local school board.
             282          (43) (a) "Source" means the person or entity that is the legal owner of the tangible or
             283      intangible asset that comprises the contribution.
             284          (b) "Source" means, for political action committees and corporations, the political
             285      action committee and the corporation as entities, not the contributors to the political action
             286      committee or the owners or shareholders of the corporation.
             287          (44) "State office" means the offices of governor, lieutenant governor, attorney general,
             288      state auditor, and state treasurer.
             289          (45) "State office candidate" means a person who:
             290          (a) files a declaration of candidacy for a state office; or
             291          (b) receives contributions, makes expenditures, or gives consent for any other person to
             292      receive contributions or make expenditures to bring about the person's nomination or election
             293      to a state office.
             294          (46) "Summary report" means the year end report containing the summary of a
             295      reporting entity's contributions and expenditures.
             296          (47) "Supervisory board" means the individual or group of individuals that allocate
             297      expenditures from a political issues committee.
             298          Section 2. Section 20A-11-1202 is amended to read:
             299           20A-11-1202. Definitions.
             300          As used in this part:
             301          (1) "Ballot proposition" means constitutional amendments, initiatives, referenda,
             302      judicial retention questions, opinion questions, bond approvals, or other questions submitted to
             303      the voters for their approval or rejection.
             304          (2) (a) "Commercial interlocal cooperation agency" means an interlocal cooperation


             305      agency that receives its revenues from conduct of its commercial operations.
             306          (b) "Commercial interlocal cooperation agency" does not mean an interlocal
             307      cooperation agency that receives some or all of its revenues from:
             308          (i) government appropriations;
             309          (ii) taxes;
             310          (iii) government fees imposed for regulatory or revenue raising purposes; or
             311          (iv) interest earned on public funds or other returns on investment of public funds.
             312          (3) "Expenditure" means:
             313          (a) a purchase, payment, donation, distribution, loan, advance, deposit, gift of money,
             314      or anything of value;
             315          (b) an express, legally enforceable contract, promise, or agreement to make any
             316      purchase, payment, donation, distribution, loan, advance, deposit, gift of money, or anything of
             317      value;
             318          (c) a transfer of funds between a public entity and a candidate's personal campaign
             319      committee;
             320          (d) a transfer of funds between a public entity and a political issues committee; or
             321          (e) goods or services provided to or for the benefit of a candidate, a candidate's
             322      personal campaign committee, or a political issues committee for political purposes at less than
             323      fair market value.
             324          (4) "Governmental interlocal cooperation agency" means an interlocal cooperation
             325      agency that receives some or all of its revenues from:
             326          (a) government appropriations;
             327          (b) taxes;
             328          (c) government fees imposed for regulatory or revenue raising purposes; or
             329          (d) interest earned on public funds or other returns on investment of public funds.
             330          (5) (a) "Influence" means to campaign or advocate for or against a ballot proposition.
             331          (b) "Influence" does not mean providing a brief statement about a public entity's
             332      position on a ballot proposition and the reason for that position.
             333          (6) "Interlocal cooperation agency" means an entity created by interlocal agreement
             334      under the authority of Title 11, Chapter 13, Interlocal Cooperation Act.
             335          (7) "Local district" means an entity under Title 17B, Limited Purpose Local


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


             367      library, unit, bureau, panel, or other administrative unit of the state.
             368          (b) "State agency" includes the legislative branch, the Board of Regents, the
             369      institutional councils of each higher education institution, and each higher education
             370      institution.


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