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First Substitute H.B. 270

Senator John L. Valentine proposes the following substitute bill:


             1     
FINANCIAL DISCLOSURE AND CONFLICT

             2     
OF INTEREST AMENDMENTS

             3     
2010 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Gregory H. Hughes

             6     
Senate Sponsor: Wayne L. Niederhauser

             7      Cosponsors:Eric K. HutchingsPaul Ray              8     
             9      LONG TITLE
             10      General Description:
             11          This bill modifies and enacts provisions of the Utah Code that relate to financial
             12      disclosures and the declaration of conflicts of interest by certain public officeholders
             13      and candidates.
             14      Highlighted Provisions:
             15          This bill:
             16          .    requires candidates for the following offices to file a financial disclosure at the time
             17      of filing a declaration of candidacy:
             18              .    governor, lieutenant governor, state auditor, state treasurer, and attorney general;
             19              .    the Legislature; and
             20              .    the State Board of Education;
             21          .    prohibits a filing officer from accepting a declaration of candidacy unless a financial
             22      disclosure has been filed;
             23          .    provides procedures and requirements for filing financial disclosures;
             24          .    requires a candidate's financial disclosure to be made publicly available:
             25              .    at the filing officer's place of business; and


             26              .    on the Statewide Electronic Voter Information Website administered by the
             27      lieutenant governor;
             28          .    modifies provisions of the criminal statute that regulate failure to disclose conflicts
             29      of interest;
             30          .    provides and modifies definitions;
             31          .    requires the following officeholders to file a financial disclosure at specified times:
             32              .    governor, lieutenant governor, state auditor, state treasurer, and attorney general;
             33              .    members of the Legislature; and
             34              .    members of the State Board of Education;
             35          .    specifies what information the financial disclosure must contain;
             36          .    provides a criminal penalty if a regulated officeholder engages in an official action
             37      that constitutes a conflict of interest if:
             38              .    the conflict of interest has not been provided on the financial disclosure; and
             39              .    the officeholder fails to publicly declare a conflict of interest at the time of the
             40      action;
             41          .    requires conflicts of interest that are declared at the time of the action to be recorded
             42      on official records;
             43          .    requires blank financial disclosure forms to be available for regulated officeholders
             44      and the public;
             45          .    requires financial disclosures that are filed by officeholders to be made available:
             46              .    on the Internet;
             47              .    at the lieutenant governor's office, for executive branch officeholders;
             48              .    at the offices for the Senate or House of Representatives, for legislators; and
             49          .    makes technical changes.
             50      Monies Appropriated in this Bill:
             51          None
             52      Other Special Clauses:
             53          This bill provides an immediate effective date.
             54      Utah Code Sections Affected:
             55      AMENDS:
             56          20A-9-201, as last amended by Laws of Utah 2008, Chapters 11, 13, 14, and 225


             57          76-8-109, as last amended by Laws of Utah 1995, Chapter 191
             58      ENACTS:
             59          20A-11-1501, Utah Code Annotated 1953
             60          20A-11-1502, Utah Code Annotated 1953
             61          20A-11-1503, Utah Code Annotated 1953
             62     
             63      Be it enacted by the Legislature of the state of Utah:
             64          Section 1. Section 20A-9-201 is amended to read:
             65           20A-9-201. Declarations of candidacy -- Candidacy for more than one office or of
             66      more than one political party prohibited with exceptions -- General filing and form
             67      requirements -- Affidavit of impecuniosity.
             68          (1) Before filing a declaration of candidacy for election to any office, a person shall:
             69          (a) be a United States citizen; and
             70          (b) meet the legal requirements of that office.
             71          (2) (a) Except as provided in Subsection (2)(b), a person may not:
             72          (i) file a declaration of candidacy for, or be a candidate for, more than one office in
             73      Utah during any election year; or
             74          (ii) appear on the ballot as the candidate of more than one political party.
             75          (b) A person may file a declaration of candidacy for, or be a candidate for, President or
             76      Vice President of the United States and another office, if the person resigns the person's
             77      candidacy for the other office after the person is officially nominated for President or Vice
             78      President of the United States.
             79          (3) (a) (i) Except for presidential candidates, before the filing officer may accept any
             80      declaration of candidacy, the filing officer shall:
             81          (A) read to the prospective candidate the constitutional and statutory qualification
             82      requirements for the office that the candidate is seeking; and
             83          (B) require the candidate to state whether or not the candidate meets those
             84      requirements.
             85          (ii) Before accepting a declaration of candidacy for the office of county attorney, the
             86      county clerk shall ensure that the person filing that declaration of candidacy is:
             87          (A) a United States citizen;


             88          (B) an attorney licensed to practice law in Utah who is an active member in good
             89      standing of the Utah State Bar;
             90          (C) a registered voter in the county in which he is seeking office; and
             91          (D) a current resident of the county in which he is seeking office and either has been a
             92      resident of that county for at least one year or was appointed and is currently serving as county
             93      attorney and became a resident of the county within 30 days after appointment to the office.
             94          (iii) Before accepting a declaration of candidacy for the office of district attorney, the
             95      county clerk shall ensure that, as of the date of the election, the person filing that declaration of
             96      candidacy is:
             97          (A) a United States citizen;
             98          (B) an attorney licensed to practice law in Utah who is an active member in good
             99      standing of the Utah State Bar;
             100          (C) a registered voter in the prosecution district in which he is seeking office; and
             101          (D) a current resident of the prosecution district in which he is seeking office and either
             102      will have been a resident of that prosecution district for at least one year as of the date of the
             103      election or was appointed and is currently serving as district attorney and became a resident of
             104      the prosecution district within 30 days after receiving appointment to the office.
             105          (iv) Before accepting a declaration of candidacy for the office of county sheriff, the
             106      county clerk shall ensure that the person filing the declaration of candidacy:
             107          (A) as of the date of filing:
             108          (I) is a United States citizen;
             109          (II) is a registered voter in the county in which the person seeks office;
             110          (III) (Aa) has successfully met the standards and training requirements established for
             111      law enforcement officers under Title 53, Chapter 6, Part 2, Peace Officer Training and
             112      Certification Act; or
             113          (Bb) has passed a certification examination as provided in Section 53-6-206 ; and
             114          (IV) is qualified to be certified as a law enforcement officer, as defined in Section
             115      53-13-103 ; and
             116          (B) as of the date of the election, shall have been a resident of the county in which the
             117      person seeks office for at least one year.
             118          (v) Before accepting a declaration of candidacy for the office of governor, lieutenant


             119      governor, state auditor, state treasurer, attorney general, state legislator, or State Board of
             120      Education member, the filing officer shall ensure:
             121          (A) that the person filing the declaration of candidacy also files the financial disclosure
             122      required by Section 20A-11-1503 ; and
             123          (B) if the filing officer is not the lieutenant governor, that the financial disclosure is
             124      provided to the lieutenant governor according to the procedures and requirements of Section
             125      20A-11-1503 .
             126          (b) If the prospective candidate states that he does not meet the qualification
             127      requirements for the office, the filing officer may not accept the prospective candidate's
             128      declaration of candidacy.
             129          (c) If the candidate meets the requirements of Subsection (3)(a) and states that he meets
             130      the requirements of candidacy, the filing officer shall:
             131          (i) inform the candidate that:
             132          (A) the candidate's name will appear on the ballot as it is written on the declaration of
             133      candidacy;
             134          (B) the candidate may be required to comply with state or local campaign finance
             135      disclosure laws; and
             136          (C) the candidate is required to file a financial statement before the candidate's political
             137      convention under:
             138          (I) Section 20A-11-204 for a candidate for constitutional office;
             139          (II) Section 20A-11-303 for a candidate for the Legislature; or
             140          (III) local campaign finance disclosure laws, if applicable;
             141          (ii) provide the candidate with a copy of the current campaign financial disclosure laws
             142      for the office the candidate is seeking and inform the candidate that failure to comply will
             143      result in disqualification as a candidate and removal of the candidate's name from the ballot;
             144          (iii) provide the candidate with a copy of Section 20A-7-801 regarding the Statewide
             145      Electronic Voter Information Website Program and inform the candidate of the submission
             146      deadline under Subsection 20A-7-801 (4)(a);
             147          (iv) provide the candidate with a copy of the pledge of fair campaign practices
             148      described under Section 20A-9-206 and inform the candidate that:
             149          (A) signing the pledge is voluntary; and


             150          (B) signed pledges shall be filed with the filing officer;
             151          (v) accept the candidate's declaration of candidacy; and
             152          (vi) if the candidate has filed for a partisan office, provide a certified copy of the
             153      declaration of candidacy to the chair of the county or state political party of which the
             154      candidate is a member.
             155          (d) If the candidate elects to sign the pledge of fair campaign practices, the filing
             156      officer shall:
             157          (i) accept the candidate's pledge; and
             158          (ii) if the candidate has filed for a partisan office, provide a certified copy of the
             159      candidate's pledge to the chair of the county or state political party of which the candidate is a
             160      member.
             161          (4) Except for presidential candidates, the form of the declaration of candidacy shall be
             162      substantially as follows:
             163          "State of Utah, County of ____
             164          I, ______________, declare my intention of becoming a candidate for the office of
             165      ____ as a candidate for the ____ party. I do solemnly swear that: I will meet the qualifications
             166      to hold the office, both legally and constitutionally, if selected; I reside at _____________ in
             167      the City or Town of ____, Utah, Zip Code ____ Phone No. ____; I will not knowingly violate
             168      any law governing campaigns and elections; I will file all campaign financial disclosure reports
             169      as required by law; and I understand that failure to do so will result in my disqualification as a
             170      candidate for this office and removal of my name from the ballot. The mailing address that I
             171      designate for receiving official election notices is ___________________________.
             172      ____________________________________________________________________
             173          Subscribed and sworn before me this __________(month\day\year).
             174     
Notary Public (or other officer qualified to administer oath.)"

             175          (5) (a) Except for presidential candidates, the fee for filing a declaration of candidacy
             176      is:
             177          (i) $25 for candidates for the local school district board; and
             178          (ii) 1/8 of 1% of the total salary for the full term of office legally paid to the person
             179      holding the office, but not less than $5, for all other federal, state, and county offices.
             180          (b) Except for presidential candidates, the filing officer shall refund the filing fee to


             181      any candidate:
             182          (i) who is disqualified; or
             183          (ii) who the filing officer determines has filed improperly.
             184          (c) (i) The county clerk shall immediately pay to the county treasurer all fees received
             185      from candidates.
             186          (ii) The lieutenant governor shall:
             187          (A) apportion to and pay to the county treasurers of the various counties all fees
             188      received for filing of nomination certificates or acceptances; and
             189          (B) ensure that each county receives that proportion of the total amount paid to the
             190      lieutenant governor from the congressional district that the total vote of that county for all
             191      candidates for representative in Congress bears to the total vote of all counties within the
             192      congressional district for all candidates for representative in Congress.
             193          (d) (i) A person who is unable to pay the filing fee may file a declaration of candidacy
             194      without payment of the filing fee upon a prima facie showing of impecuniosity as evidenced by
             195      an affidavit of impecuniosity filed with the filing officer and, if requested by the filing officer,
             196      a financial statement filed at the time the affidavit is submitted.
             197          (ii) A person who is able to pay the filing fee may not claim impecuniosity.
             198          (iii) (A) False statements made on an affidavit of impecuniosity or a financial
             199      statement filed under this section shall be subject to the criminal penalties provided under
             200      Sections 76-8-503 and 76-8-504 and any other applicable criminal provision.
             201          (B) Conviction of a criminal offense under Subsection (5)(d)(iii)(A) shall be
             202      considered an offense under this title for the purposes of assessing the penalties provided in
             203      Subsection 20A-1-609 (2).
             204          (iv) The filing officer shall ensure that the affidavit of impecuniosity is printed in
             205      substantially the following form:
             206          "Affidavit of Impecuniosity
             207      Individual Name
             208      ____________________________Address_____________________________
             209      Phone Number _________________
             210      I,__________________________(name), do solemnly [swear] [affirm], under penalty of law
             211      for false statements, that, owing to my poverty, I am unable to pay the filing fee required by


             212      law.
             213      Date ______________ Signature________________________________________________
             214      Affiant
             215      Subscribed and sworn to before me on ___________ (month\day\year)
             216     
______________________

             217     
(signature)

             218          Name and Title of Officer Authorized to Administer Oath
______________________"

             219          (v) The filing officer shall provide to a person who requests an affidavit of
             220      impecuniosity a statement printed in substantially the following form, which may be included
             221      on the affidavit of impecuniosity:
             222          "Filing a false statement is a criminal offense. In accordance with Section 20A-1-609 , a
             223      candidate who is found guilty of filing a false statement, in addition to being subject to criminal
             224      penalties, will be removed from the ballot."
             225          (vi) The filing officer may request that a person who makes a claim of impecuniosity
             226      under this Subsection (5)(d) file a financial statement on a form prepared by the election
             227      official.
             228          (6) Any person who fails to file a declaration of candidacy or certificate of nomination
             229      within the time provided in this chapter is ineligible for nomination to office.
             230          (7) A declaration of candidacy filed under this section may not be amended or
             231      modified after the final date established for filing a declaration of candidacy.
             232          Section 2. Section 20A-11-1501 is enacted to read:
             233     
Part 15. Candidate Financial Disclosures

             234          20A-11-1501. Title.
             235          This part is known as "Candidate Financial Disclosures."
             236          Section 3. Section 20A-11-1502 is enacted to read:
             237          20A-11-1502. Definitions.
             238          (1) "Filing officer" is as defined in Section 20A-9-101 .
             239          (2) "State constitutional officer" means the governor, the lieutenant governor, the state
             240      auditor, the state treasurer, or the attorney general.
             241          Section 4. Section 20A-11-1503 is enacted to read:
             242          20A-11-1503. Financial disclosure form -- Required when filing for candidacy --


             243      Public availability.
             244          (1) Candidates seeking the following offices shall file a financial disclosure with the
             245      filing officer at the time of filing a declaration of candidacy:
             246          (a) state constitutional officer;
             247          (b) state legislator; or
             248          (c) State Board of Education member.
             249          (2) A filing officer shall not accept a declaration of candidacy for an office listed in
             250      Subsection (1) unless the declaration of candidacy is accompanied by the financial disclosure
             251      required by this section.
             252          (3) The financial disclosure form shall contain the same requirements and shall be in
             253      the same format as the financial disclosure form described in Section 76-8-109 .
             254          (4) The financial disclosure form shall:
             255          (a) be made available for public inspection at the filing officer's place of business;
             256          (b) if the filing officer is an individual other than the lieutenant governor, be provided
             257      to the lieutenant governor within five business days of the date of filing and be made publicly
             258      available at the Office of the Lieutenant Governor; and
             259          (c) be made publicly available on the Statewide Electronic Voter Information Website
             260      administered by the lieutenant governor.
             261          Section 5. Section 76-8-109 is amended to read:
             262           76-8-109. Failure to disclose conflict of interest.
             263          (1) As used in this section:
             264          [(a) "Business in which the legislator is associated" means any business in which a
             265      legislator is a director, officer, owner, member, partner, employee, or is a holder of stocks or
             266      bonds in the company that have a fair market value of $10,000 or more. This does not include
             267      business associations by members of the legislator's immediate family.]
             268          [(b)] (a) "Conflict of interest" means [legislation or action by a legislator that the
             269      legislator] an action that is taken by a regulated officeholder that the officeholder reasonably
             270      believes may cause direct financial benefit or detriment to [him] the officeholder, a member of
             271      the [legislator's] officeholder's immediate family, or [a business in which the legislator is
             272      associated] an entity that the officeholder is required to disclose under the provisions of this
             273      section, and that benefit or detriment is distinguishable from the effects of that action on the


             274      public or on the [legislator's] officeholder's profession, occupation, or association generally.
             275          (b) "Entity" means a corporation, a partnership, a limited liability company, a limited
             276      partnership, a sole proprietorship, an association, a cooperative, a trust, an organization, a joint
             277      venture, a governmental entity, an unincorporated organization, or any other legal entity,
             278      whether established primarily for the purpose of gain or economic profit or not.
             279          (c) "Filer" means the individual filing a financial declaration under this section.
             280          [(c)] (d) "Immediate family" means the [legislator's] regulated officeholder's spouse
             281      and children living in the [legislator's] officeholder's immediate household.
             282          [(2) In addition to the Declaration of Conflict of Interest form provided for in
             283      Subsection (3), before]
             284          (e) "Income" means earnings, compensation, or any other payment made to an
             285      individual for gain, regardless of source, whether denominated as wages, salary, commission,
             286      pay, bonus, severance pay, incentive pay, contract payment, interest, per diem, expenses,
             287      reimbursement, dividends, or otherwise.
             288          (f) "Regulated officeholder" means an individual that is required to file a financial
             289      disclosure under the provisions and requirements of this section.
             290          (g) "State constitutional officer" means the governor, the lieutenant governor, the state
             291      auditor, the state treasurer, or the attorney general.
             292          (2) (a) Before or during the execution of any order, settlement, declaration, contract, or
             293      any other official act of office in which a state constitutional officer has actual knowledge that
             294      the officer has a conflict of interest which is not stated on the financial disclosure form required
             295      under Subsection (4), the officer shall publicly declare that the officer may have a conflict of
             296      interest and what that conflict of interest is.
             297          (b) Before or during any vote on legislation or any legislative matter in which a
             298      legislator has actual knowledge that [he] the legislator has a conflict of interest which is not
             299      stated on the [conflict of interest form, that] the financial disclosure form required under
             300      Subsection (4), the legislator shall orally declare to the committee or body before which the
             301      matter is pending that the legislator may have a conflict of interest and what that conflict is.
             302      [This declaration of conflict of interest shall be noted in the minutes of any committee meeting
             303      or in the Senate or House Journal.]
             304          [(3) (a) A legislator shall file a Declaration of Conflict of Interest form with the


             305      Secretary of the Senate if the legislator is a senator or with the Chief Clerk of the House of
             306      Representatives if the legislator is a representative to satisfy that legislator's disclosure of any
             307      conflict of interest as required by Subsection (2).]
             308          [(b) This Declaration of Conflict of Interest form shall include the businesses in which
             309      the legislator is associated and the general legislative subject areas in which the legislator may
             310      have a conflict of interest.]
             311          [(c) This Declaration of Conflict of Interest form is available to the public.]
             312          (c) Before or during any vote on any rule, resolution, order, or any other board matter
             313      in which a member of the State Board of Education has actual knowledge that the member has
             314      a conflict of interest which is not stated on the financial disclosure form required under
             315      Subsection (4), the member shall orally declare to the board that the member may have a
             316      conflict of interest and what that conflict of interest is.
             317          (3) Any public declaration of a conflict of interest that is made under Subsection (2)
             318      shall be noted:
             319          (a) on the official record of the action taken, for a state constitutional officer;
             320          (b) in the minutes of the committee meeting or in the Senate or House Journal, as
             321      applicable, for a legislator; or
             322          (c) in the minutes of the meeting or on the official record of the action taken, for a
             323      member of the State Board of Education.
             324          (4) (a) The following individuals shall file a financial disclosure form:
             325          (i) a state constitutional officer, to be due on the tenth day of January of each year, or
             326      the following business day if the due date falls on a weekend or holiday;
             327          (ii) a legislator, at the following times:
             328          (A) on the first day of each general session of the Legislature; and
             329          (B) each time the legislator changes employment;
             330          (iii) a member of the State Board of Education, at the following times:
             331          (A) on the tenth day of January of each year, or the following business day if the due
             332      date falls on a weekend or holiday; and
             333          (B) each time the member changes employment.
             334          (b) The financial disclosure form shall include:
             335          (i) the filer's name;


             336          (ii) the name and address of the filer's primary employer;
             337          (iii) a brief description of the filer's employment, including the filer's occupation, and
             338      as applicable, job title;
             339          (iv) for each entity in which the filer is an owner or an officer:
             340          (A) the name of the entity;
             341          (B) a brief description of the type of business or activity conducted by the entity; and
             342          (C) the filer's position in the entity;
             343          (v) for each entity that has paid $5,000 or more in income to the filer within the
             344      one-year period ending immediately before the date of the disclosure form:
             345          (A) the name of the entity; and
             346          (B) a brief description of the type of business or activity conducted by the entity;
             347          (vi) for each entity in which the filer holds any stocks or bonds having a fair market
             348      value of $5,000 or more as of the date of the disclosure form, but excluding funds that are
             349      managed by a third party, including blind trusts, managed investment accounts, and mutual
             350      funds:
             351          (A) the name of the entity; and
             352          (B) a brief description of the type or business or activity conducted by the entity;
             353          (vii) for each entity not listed in Subsections (4)(b)(iv) through (4)(b)(vi), in which the
             354      filer serves on the board of directors or in any other type of formal advisory capacity:
             355          (A) the name of the entity or organization;
             356          (B) a brief description of the type of business or activity conducted by the entity; and
             357          (C) the type of advisory position held by the filer;
             358          (viii) at the option of the filer, any real property in which the filer holds an ownership
             359      or other financial interest that the filer believes may constitute a conflict of interest, including:
             360          (A) a description of the real property; and
             361          (B) a description of the type of interest held by the filer in the property;
             362          (ix) the name of the filer's spouse and any other adult residing in the filer's household
             363      that is not related by blood or marriage, as applicable;
             364          (x) a brief description of the employment and occupation of the filer's spouse and any
             365      other adult residing in the filer's household that is not related by blood or marriage, as
             366      applicable;


             367          (xi) at the option of the filer, a description of any other matter or interest that the filer
             368      believes may constitute a conflict of interest;
             369          (xii) the date the form was completed;
             370          (xiii) a statement that the filer believes that the form is true and accurate to the best of
             371      the filer's knowledge; and
             372          (xiv) the signature of the filer.
             373          (c) (i) The financial disclosure shall be filed with:
             374          (A) the secretary of the Senate, for a legislator that is a senator;
             375          (B) the chief clerk of the House of Representatives, for a legislator that is a
             376      representative; or
             377          (C) the lieutenant governor, for all other regulated officeholders.
             378          (ii) The lieutenant governor, the secretary of the Senate, and the chief clerk of the
             379      House of Representatives shall ensure that blank financial disclosure forms are available on the
             380      Internet and at their offices.
             381          (d) Financial disclosure forms that are filed under the procedures and requirements of
             382      this section shall be made available to the public:
             383          (i) on the Internet; and
             384          (ii) at the office where the form was filed.
             385          [(d)] (e) This [requirement of disclosure of any] section's requirement to disclose a
             386      conflict of interest does not prohibit a [legislator] regulated officeholder from voting [on any
             387      legislation or legislative] or acting on any matter.
             388          [(4) Every member of the Legislature who has a conflict of interest in any measure or
             389      bill proposed or pending before the Legislature of which he is a member and does not disclose
             390      the fact to the house of which he is a member and votes thereon]
             391          (5) A regulated officeholder who violates the requirements of Subsection (2) is guilty
             392      of a class B misdemeanor.
             393          Section 6. Effective date.
             394          If approved by two-thirds of all the members elected to each house, this bill takes effect
             395      upon approval by the governor, or the day following the constitutional time limit of Utah
             396      Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
             397      the date of veto override.


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