S.B. 162 Enrolled

1

USE OF CAMPAIGN FUNDS AMENDMENTS
2 2009 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: John L. Valentine
5 House Sponsor: John Dougall
6
7 LONG TITLE
8 General Description:
9 This bill prohibits the use of campaign and officeholder funds for a purpose that would
10 result in the funds' recognition as taxable income under federal tax law.
11 Highlighted Provisions:
12 This bill:
13 . prohibits the use of campaign and officeholder funds for a purpose that would
14 result in the candidate or officeholder recognizing the funds as taxable income
15 under federal tax law; and
16 . makes technical changes.
17 Monies Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 None
21 Utah Code Sections Affected:
22 AMENDS:
23 20A-11-201, as last amended by Laws of Utah 1997, Chapter 355
24 20A-11-301, as last amended by Laws of Utah 1997, Chapter 355
25 20A-11-402, as last amended by Laws of Utah 1997, Chapter 355
26 20A-11-1301, as enacted by Laws of Utah 1997, Chapter 355
27
28 Be it enacted by the Legislature of the state of Utah:
29 Section 1. Section 20A-11-201 is amended to read:

30 20A-11-201. State office candidate -- Separate bank account for campaign funds.
31 (1) (a) Each state office candidate or the candidate's personal campaign committee
32 shall deposit each contribution and public service assistance received in one or more separate
33 campaign accounts in a financial institution.
34 (b) The state office candidate or the candidate's personal campaign committee may use
35 the monies in those accounts only for political purposes.
36 (2) A state office candidate or the candidate's personal campaign committee may not
37 deposit or mingle any contributions received into a personal or business account.
38 (3) If a person who is no longer a state office candidate chooses not to expend the
39 monies remaining in [his] a campaign account, the person shall continue to file the year-end
40 summary report required by Section 20A-11-203 until the statement of dissolution and final
41 summary report required by Section 20A-11-205 are filed with the lieutenant governor.
42 (4) (a) Except as provided in Subsection (4)(b) and Section 20A-11-402 , a person
43 who is no longer a state office candidate may not expend or transfer the monies in a campaign
44 account in a manner that would cause the former state office candidate to recognize the
45 monies as taxable income under federal tax law.
46 (b) A person who is no longer a state office candidate may transfer the monies in a
47 campaign account in a manner that would cause the former state office candidate to recognize
48 the monies as taxable income under federal tax law if the transfer is made to a campaign
49 account for federal office.
50 Section 2. Section 20A-11-301 is amended to read:
51 20A-11-301. Legislative office candidate -- Campaign requirements.
52 (1) Each legislative office candidate shall deposit each contribution and public service
53 assistance received in one or more separate accounts in a financial institution that are
54 dedicated only to that purpose.
55 (2) A legislative office candidate may not deposit or mingle any contributions or
56 public service assistance received into a personal or business account.
57 (3) A legislative office candidate may not make any political expenditures prohibited

58 by law.
59 (4) If a person who is no longer a legislative candidate chooses not to expend the
60 monies remaining in [his] a campaign account, the person shall continue to file the year-end
61 summary report required by Section 20A-11-302 until the statement of dissolution and final
62 summary report required by Section 20A-11-304 are filed with the lieutenant governor.
63 (5) (a) Except as provided in Subsection (5)(b) and Section 20A-11-402 , a person who
64 is no longer a legislative office candidate may not expend or transfer the monies in a campaign
65 account in a manner that would cause the former legislative office candidate to recognize the
66 monies as taxable income under federal tax law.
67 (b) A person who is no longer a legislative office candidate may transfer the monies in
68 a campaign account in a manner that would cause the former legislative office candidate to
69 recognize the monies as taxable income under federal tax law if the transfer is made to a
70 campaign account for federal office.
71 Section 3. Section 20A-11-402 is amended to read:
72 20A-11-402. Officeholder financial reporting requirements -- Termination of
73 duty to report.
74 (1) An officeholder is active and subject to reporting requirements until the
75 officeholder has filed a statement of dissolution with the lieutenant governor stating that:
76 (a) the officeholder is no longer receiving contributions or public service assistance
77 and is no longer making expenditures;
78 (b) the ending balance on the last summary report filed is zero and the balance in the
79 separate bank account required by Sections 20A-11-201 and 20A-11-301 is zero; and
80 (c) a final summary report in the form required by Section 20A-11-401 showing a zero
81 balance is attached to the statement of dissolution.
82 (2) A statement of dissolution and a final summary report may be filed at any time.
83 (3) Each officeholder shall continue to file the year-end summary report required by
84 Section 20A-11-401 until the statement of dissolution and final summary report required by
85 this section are filed with the lieutenant governor.

86 (4) (a) Except as provided in Subsection (4)(b), a person who is no longer an
87 officeholder may not expend or transfer the monies in a campaign account in a manner that
88 would cause the former officeholder to recognize the monies as taxable income under federal
89 tax law.
90 (b) A person who is no longer an officeholder may transfer the monies in a campaign
91 account in a manner that would cause the former officeholder to recognize the monies as
92 taxable income under federal tax law if the transfer is made to a campaign account for federal
93 office.
94 Section 4. Section 20A-11-1301 is amended to read:
95 20A-11-1301. School board office candidate -- Campaign requirements.
96 (1) Each school board office candidate shall deposit each contribution and public
97 service assistance received in one or more separate accounts in a financial institution that are
98 dedicated only to that purpose.
99 (2) A school board office candidate may not deposit or mingle any contributions or
100 public service assistance received into a personal or business account.
101 (3) A school board office candidate may not make any political expenditures
102 prohibited by law.
103 (4) If a person who is no longer a school board candidate chooses not to expend the
104 monies remaining in [his] a campaign account, the person shall continue to file the year-end
105 summary report required by Section 20A-11-1302 until the statement of dissolution and final
106 summary report required by Section 20A-11-1304 are filed with:
107 (a) the lieutenant governor in the case of a state school board candidate; and
108 (b) the county clerk, in the case of a local school board candidate.
109 (5) (a) Except as provided in Subsection (5)(b) and Section 20A-11-402 , a person who
110 is no longer a school board candidate may not expend or transfer the monies in a campaign
111 account in a manner that would cause the former school board candidate to recognize the
112 monies as taxable income under federal tax law.
113 (b) A person who is no longer a school board candidate may transfer the monies in a

114 campaign account in a manner that would cause the former school board candidate to
115 recognize the monies as taxable income under federal tax law if the transfer is made to a
116 campaign account for federal office.