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H.B. 493
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7 LONG TITLE
8 General Description:
9 This bill amends campaign finance provisions related to anonymous cash contributions.
10 Highlighted Provisions:
11 This bill:
12 . prohibits an anonymous cash contribution over $50;
13 . requires a candidate for the office of governor, lieutenant governor, attorney
14 general, state auditor, state treasurer, state legislator, or State Board of Education
15 member to submit an anonymous cash contribution over $50 to the lieutenant
16 governor for deposit into the General Fund;
17 . requires an officeholder to submit an anonymous cash contribution or cash public
18 service assistance over $50 to the lieutenant governor for deposit into the General
19 Fund;
20 . requires a candidate for municipal office to submit an anonymous cash contribution
21 over the reporting limit to the municipal clerk or recorder for deposit into the
22 municipality's General Fund;
23 . requires a candidate for county office to submit an anonymous cash contribution
24 over $50 to the county clerk for deposit into the county's General Fund;
25 . requires a candidate for local school board to submit an anonymous cash
26 contribution over $50 to the school district's business administrator for deposit into
27 the school district's general fund; and
28 . makes technical changes.
29 Money Appropriated in this Bill:
30 None
31 Other Special Clauses:
32 None
33 Utah Code Sections Affected:
34 AMENDS:
35 10-3-208, as last amended by Laws of Utah 2008, Chapters 49 and 382
36 17-16-6.5, as last amended by Laws of Utah 2008, Chapter 49
37 20A-11-201, as last amended by Laws of Utah 2010, Chapter 246
38 20A-11-301, as last amended by Laws of Utah 2011, Chapter 347
39 20A-11-401, as last amended by Laws of Utah 2011, Chapters 297 and 347
40 20A-11-904, as enacted by Laws of Utah 2010, Chapter 389
41 20A-11-1301, as last amended by Laws of Utah 2011, Chapter 347
42
43 Be it enacted by the Legislature of the state of Utah:
44 Section 1. Section 10-3-208 is amended to read:
45 10-3-208. Campaign finance statement in municipal election.
46 (1) As used in this section:
47 (a) "Reporting date" means:
48 (i) 10 days before a municipal general election, for a campaign finance statement
49 required to be filed no later than seven days before a municipal general election; and
50 (ii) the day of filing, for a campaign finance statement required to be filed no later than
51 30 days after a municipal primary or general election.
52 (b) "Reporting limit" means:
53 (i) $50; or
54 (ii) an amount lower than $50 that is specified in an ordinance of the municipality.
55 (2) (a) (i) Each candidate for municipal office who is not eliminated at a municipal
56 primary election shall file with the municipal clerk or recorder a campaign finance statement:
57 (A) no later than seven days before the date of the municipal general election; and
58 (B) no later than 30 days after the date of the municipal general election.
59 (ii) Each candidate for municipal office who is eliminated at a municipal primary
60 election shall file with the municipal clerk or recorder a campaign finance statement no later
61 than 30 days after the date of the municipal primary election.
62 (b) Each campaign finance statement under Subsection (2)(a) shall:
63 (i) except as provided in Subsection (2)(b)(ii):
64 (A) report all of the candidate's itemized and total:
65 (I) campaign contributions, including in-kind and other nonmonetary contributions,
66 received before the close of the reporting date; and
67 (II) campaign expenditures made through the close of the reporting date; and
68 (B) identify:
69 (I) for each contribution that exceeds the reporting limit, the amount of the contribution
70 and the name of the donor;
71 (II) the aggregate total of all contributions that individually do not exceed the reporting
72 limit; and
73 (III) for each campaign expenditure, the amount of the expenditure and the name of the
74 recipient of the expenditure; or
75 (ii) report the total amount of all campaign contributions and expenditures if the
76 candidate receives $500 or less in campaign contributions and spends $500 or less on the
77 candidate's campaign.
78 (c) (i) A person who makes a cash contribution that exceeds the reporting limit shall
79 disclose the person's name to the candidate who receives the contribution.
80 (ii) If a candidate receives an anonymous cash contribution that exceeds the reporting
81 limit, the candidate:
82 (A) is not required to report the anonymous contribution; and
83 (B) shall submit the anonymous contribution to the municipal clerk or recorder for
84 deposit into the municipality's General Fund.
85 (3) (a) A municipality may, by ordinance:
86 (i) provide a reporting limit lower than $50;
87 (ii) require greater disclosure of campaign contributions and expenditures than is
88 required in this section; and
89 (iii) impose additional penalties on candidates who fail to comply with the applicable
90 requirements beyond those imposed by this section.
91 (b) A candidate for municipal office is subject to the provisions of this section and not
92 the provisions of an ordinance adopted by the municipality under Subsection (3)(a) if:
93 (i) the municipal ordinance establishes requirements or penalties that differ from those
94 established in this section; and
95 (ii) the municipal clerk or recorder fails to notify the candidate of the provisions of the
96 ordinance as required in Subsection (4).
97 (4) Each municipal clerk or recorder shall, at the time the candidate for municipal
98 office files a declaration of candidacy, and again 14 days before each municipal general
99 election, notify the candidate in writing of:
100 (a) the provisions of statute or municipal ordinance governing the disclosure of
101 campaign contributions and expenditures;
102 (b) the dates when the candidate's campaign finance statement is required to be filed;
103 and
104 (c) the penalties that apply for failure to file a timely campaign finance statement,
105 including the statutory provision that requires removal of the candidate's name from the ballot
106 for failure to file the required campaign finance statement when required.
107 (5) Notwithstanding any provision of Title 63G, Chapter 2, Government Records
108 Access and Management Act, the municipal clerk or recorder shall:
109 (a) make each campaign finance statement filed by a candidate available for public
110 inspection and copying no later than one business day after the statement is filed; and
111 (b) make the campaign finance statement filed by a candidate available for public
112 inspection by:
113 (i) (A) posting an electronic copy or the contents of the statement on the municipality's
114 website no later than seven business days after the statement is filed; and
115 (B) verifying that the address of the municipality's website has been provided to the
116 lieutenant governor in order to meet the requirements of Subsection 20A-11-103 (5); or
117 (ii) submitting a copy of the statement to the lieutenant governor for posting on the
118 website established by the lieutenant governor under Section 20A-11-103 no later than two
119 business days after the statement is filed.
120 (6) (a) If a candidate fails to file a campaign finance statement before the municipal
121 general election by the deadline specified in Subsection (2)(a)(i)(A), the municipal clerk or
122 recorder shall inform the appropriate election official who:
123 (i) shall:
124 (A) if practicable, remove the candidate's name from the ballot by blacking out the
125 candidate's name before the ballots are delivered to voters; or
126 (B) if removing the candidate's name from the ballot is not practicable, inform the
127 voters by any practicable method that the candidate has been disqualified and that votes cast for
128 the candidate will not be counted; and
129 (ii) may not count any votes for that candidate.
130 (b) Notwithstanding Subsection (6)(a), a candidate who files a campaign finance
131 statement seven days before a municipal general election is not disqualified if:
132 (i) the statement details accurately and completely the information required under
133 Subsection (2)(b), except for inadvertent omissions or insignificant errors or inaccuracies; and
134 (ii) the omissions, errors, or inaccuracies are corrected in an amended report or in the
135 next scheduled report.
136 (7) A campaign finance statement required under this section is considered filed if it is
137 received in the municipal clerk or recorder's office by 5 p.m. on the date that is it due.
138 (8) (a) A private party in interest may bring a civil action in district court to enforce the
139 provisions of this section or an ordinance adopted under this section.
140 (b) In a civil action under Subsection (8)(a), the court may award costs and attorney's
141 fees to the prevailing party.
142 Section 2. Section 17-16-6.5 is amended to read:
143 17-16-6.5. Campaign financial disclosure in county elections.
144 (1) (a) [
145 campaign finance disclosure requirements for candidates for county office.
146 (b) The ordinance shall include:
147 (i) a requirement that each candidate for county office report [
148 itemized and total campaign contributions and expenditures at least once within the two weeks
149 before the election and at least once within two months after the election;
150 (ii) a definition of "contribution" and "expenditure" that requires reporting of
151 nonmonetary contributions such as in-kind contributions and contributions of tangible things;
152 and
153 (iii) a requirement that the financial reports identify:
154 (A) for each contribution of more than $50, if the name of the donor of the contribution
155 is known, the name of the donor of the contribution and the amount of the contribution; and
156 (B) for each expenditure, the name of the recipient and the amount of the expenditure.
157 (c) The ordinance shall require:
158 (i) a person who makes a cash contribution that exceeds $50 to disclose the person's
159 name to the candidate who receives the contribution; and
160 (ii) a candidate who receives an anonymous cash contribution that exceeds $50 to
161 submit the contribution to the county clerk for deposit into the county's General Fund.
162 (2) [
163 campaign finance disclosure ordinance [
164 candidates for county office shall comply with the financial reporting requirements contained
165 in Subsections (3) through [
166 [
167
168
169 (3) (a) Except as provided in Subsection (3)(b), and if there is no county ordinance
170 meeting the requirements of this section, each candidate for elective office in any county who
171 is not required to submit a campaign financial statement to the lieutenant governor shall file a
172 signed campaign financial statement with the county clerk:
173 (i) seven days before the date of the regular general election, reporting each
174 contribution of more than $50 and each expenditure as of 10 days before the date of the regular
175 general election; and
176 (ii) no later than 30 days after the date of the regular general election.
177 (b) Candidates for community council offices are exempt from the requirements of this
178 section.
179 (4) (a) The statement filed seven days before the regular general election shall include:
180 (i) a list of each contribution of more than $50 received by the candidate if the name of
181 the donor is known, and the name of the donor;
182 (ii) an aggregate total of all contributions of $50 or less received by the candidate; and
183 (iii) a list of each expenditure for political purposes made during the campaign period,
184 and the recipient of each expenditure.
185 (b) The statement filed 30 days after the regular general election shall include:
186 (i) a list of each contribution of more than $50 received after the cutoff date for the
187 statement filed seven days before the election, and the name of the donor;
188 (ii) an aggregate total of all contributions of $50 or less received by the candidate after
189 the cutoff date for the statement filed seven days before the election; and
190 (iii) a list of all expenditures for political purposes made by the candidate after the
191 cutoff date for the statement filed seven days before the election, and the recipient of each
192 expenditure.
193 (5) Candidates for elective office in any county who are eliminated at a primary
194 election shall file a signed campaign financial statement containing the information required by
195 this section not later than 30 days after the primary election.
196 (6) (a) A person who makes a cash contribution that exceeds $50 shall disclose the
197 person's name to the candidate who receives the contribution.
198 (b) If a candidate receives an anonymous cash contribution that exceeds $50, the
199 candidate shall submit the contribution to the county clerk for deposit into the county's General
200 Fund.
201 [
202 [
203 (a) require greater disclosure of campaign contributions and expenditures; and
204 (b) impose additional penalties.
205 [
206 county clerk shall, after making a reasonable attempt to discover if the report was timely
207 mailed, inform the appropriate election officials who:
208 (i) shall, if practicable, remove the name of the candidate by blacking out the
209 candidate's name before the ballots are delivered to voters; or
210 (ii) shall, if removing the candidate's name from the ballot is not practicable, inform
211 the voters by any practicable method that the candidate has been disqualified and that votes
212 cast for the candidate will not be counted; and
213 (iii) may not count any votes for that candidate.
214 (b) Notwithstanding Subsection [
215 (i) the candidate files the reports required by this section;
216 (ii) those reports are completed, detailing accurately and completely the information
217 required by this section except for inadvertent omissions or insignificant errors or inaccuracies;
218 and
219 (iii) those omissions, errors, or inaccuracies are corrected in an amended report or in
220 the next scheduled report.
221 (c) A report is considered filed if:
222 (i) it is received in the county clerk's office no later than 5 p.m. on the date that it is
223 due;
224 (ii) it is received in the county clerk's office with a [
225 postmark three days or more before the date that the report was due; or
226 (iii) the candidate has proof that the report was mailed, with appropriate postage and
227 addressing, three days before the report was due.
228 [
229 enforce the provisions of this section or any ordinance adopted under this section.
230 (b) In a civil action filed under Subsection [
231 attorney's fees to the prevailing party.
232 [
233 Records Access and Management Act, the county clerk shall:
234 (a) make each campaign finance statement filed by a candidate available for public
235 inspection and copying no later than one business day after the statement is filed; and
236 (b) make the campaign finance statement filed by a candidate available for public
237 inspection by:
238 (i) (A) posting an electronic copy or the contents of the statement on the county's
239 website no later than seven business days after the statement is filed; and
240 (B) verifying that the address of the county's website has been provided to the
241 lieutenant governor in order to meet the requirements of Subsection 20A-11-103 (5); or
242 (ii) submitting a copy of the statement to the lieutenant governor for posting on the
243 website established by the lieutenant governor under Section 20A-11-103 no later than two
244 business days after the statement is filed.
245 Section 3. Section 20A-11-201 is amended to read:
246 20A-11-201. State office candidate -- Separate bank account for campaign funds.
247 (1) (a) [
248 the candidate's personal campaign committee shall deposit each contribution and public service
249 assistance received in one or more separate campaign accounts in a financial institution.
250 (b) If a state office candidate receives an anonymous cash contribution that exceeds
251 $50, the state office candidate:
252 (i) shall submit the contribution to the lieutenant governor for deposit into the General
253 Fund; and
254 (ii) is not required to report the contribution.
255 [
256 use money deposited in a campaign account for:
257 (i) a personal use expenditure; or
258 (ii) an expenditure prohibited by law.
259 (2) A state office candidate or the candidate's personal campaign committee may not
260 deposit or mingle any contributions received into a personal or business account.
261 (3) If a person who is no longer a state office candidate chooses not to expend the
262 money remaining in a campaign account, the person shall continue to file the year-end
263 summary report required by Section 20A-11-203 until the statement of dissolution and final
264 summary report required by Section 20A-11-205 are filed with the lieutenant governor.
265 (4) (a) Except as provided in Subsection (4)(b) and Section 20A-11-402 , a person who
266 is no longer a state office candidate may not expend or transfer the money in a campaign
267 account in a manner that would cause the former state office candidate to recognize the money
268 as taxable income under federal tax law.
269 (b) A person who is no longer a state office candidate may transfer the money in a
270 campaign account in a manner that would cause the former state office candidate to recognize
271 the money as taxable income under federal tax law if the transfer is made to a campaign
272 account for federal office.
273 (5) (a) As used in this Subsection (5) and Section 20A-11-204 , "received" means:
274 (i) for a cash contribution, that the cash is given to a state office candidate or a member
275 of the candidate's personal campaign committee;
276 (ii) for a contribution that is a negotiable instrument or check, that the negotiable
277 instrument or check is negotiated; and
278 (iii) for any other type of contribution, that any portion of the contribution's benefit
279 inures to the state office candidate.
280 (b) Each state office candidate shall report each contribution and public service
281 assistance to the lieutenant governor within 30 days after the contribution or public service
282 assistance is received.
283 Section 4. Section 20A-11-301 is amended to read:
284 20A-11-301. Legislative office candidate -- Campaign finance requirements --
285 Candidate as a political action committee officer.
286 (1) (a) (i) [
287 candidate shall deposit each contribution and public service assistance received in one or more
288 separate accounts in a financial institution that are dedicated only to that purpose.
289 (ii) A legislative office candidate may:
290 (A) receive a contribution or public service assistance from a political action
291 committee registered under Section 20A-11-601 ; and
292 (B) be designated by a political action committee as an officer who has primary
293 decision-making authority as described in Section 20A-11-601 .
294 (b) If a legislative office candidate receives an anonymous contribution that exceeds
295 $50, the legislative office candidate:
296 (i) shall submit the contribution to the lieutenant governor for deposit into the General
297 Fund; and
298 (ii) is not required to report the contribution.
299 [
300 may not use money deposited in an account described in Subsection (1)(a)(i) for:
301 (i) a personal use expenditure; or
302 (ii) an expenditure prohibited by law.
303 (2) A legislative office candidate may not deposit or mingle any contributions or public
304 service assistance received into a personal or business account.
305 (3) If a person who is no longer a legislative candidate chooses not to expend the
306 money remaining in a campaign account, the person shall continue to file the year-end
307 summary report required by Section 20A-11-302 until the statement of dissolution and final
308 summary report required by Section 20A-11-304 are filed with the lieutenant governor.
309 (4) (a) Except as provided in Subsection (4)(b) and Section 20A-11-402 , a person who
310 is no longer a legislative office candidate may not expend or transfer the money in a campaign
311 account in a manner that would cause the former legislative office candidate to recognize the
312 money as taxable income under federal tax law.
313 (b) A person who is no longer a legislative office candidate may transfer the money in
314 a campaign account in a manner that would cause the former legislative office candidate to
315 recognize the money as taxable income under federal tax law if the transfer is made to a
316 campaign account for federal office.
317 (5) (a) As used in this Subsection (5) and Section 20A-11-303 , "received" means:
318 (i) for a cash contribution, that the cash is given to a legislative office candidate or a
319 member of the candidate's personal campaign committee;
320 (ii) for a contribution that is a negotiable instrument or check, that the negotiable
321 instrument or check is negotiated; and
322 (iii) for any other type of contribution, that any portion of the contribution's benefit
323 inures to the legislative office candidate.
324 (b) Each legislative office candidate shall report each contribution and public service
325 assistance to the lieutenant governor within 30 days after the contribution or public service
326 assistance is received.
327 Section 5. Section 20A-11-401 is amended to read:
328 20A-11-401. Officeholder financial reporting requirements -- Year-end summary
329 report -- Officeholder as a political action committee officer -- Deposit of anonymous
330 contribution.
331 (1) (a) Each officeholder shall file a summary report by January 10 of each year.
332 (b) An officeholder that is required to file a summary report both as an officeholder and
333 as a candidate for office under the requirements of this chapter may file a single summary
334 report as a candidate and an officeholder, provided that the combined report meets the
335 requirements of:
336 (i) this section; and
337 (ii) the section that provides the requirements for the summary report filed by the
338 officeholder in the officeholder's capacity of a candidate for office.
339 (2) (a) Each summary report shall include the following information as of December 31
340 of the previous year:
341 (i) the net balance of the last summary report, if any;
342 (ii) a single figure equal to the total amount of receipts received since the last summary
343 report, if any;
344 (iii) a single figure equal to the total amount of expenditures made since the last
345 summary report, if any;
346 (iv) a detailed listing of each contribution and public service assistance received since
347 the last summary report;
348 (v) for each nonmonetary contribution:
349 (A) the fair market value of the contribution with that information provided by the
350 contributor; and
351 (B) a specific description of the contribution;
352 (vi) a detailed listing of each expenditure made since the last summary report;
353 (vii) for each nonmonetary expenditure, the fair market value of the expenditure;
354 (viii) a net balance for the year consisting of the net balance from the last summary
355 report plus all receipts minus all expenditures; and
356 (ix) the name of a political action committee for which the officeholder is designated
357 as an officer who has primary decision-making authority under Section 20A-11-601 .
358 (b) (i) For all individual contributions or public service assistance of $50 or less, a
359 single aggregate figure may be reported without separate detailed listings.
360 (ii) Two or more contributions from the same source that have an aggregate total of
361 more than $50 may not be reported in the aggregate, but shall be reported separately.
362 (c) In preparing the report, all receipts and expenditures shall be reported as of
363 December 31 of the previous year.
364 (3) The summary report shall contain a paragraph signed by the officeholder certifying
365 that, to the best of the officeholder's knowledge, all receipts and all expenditures have been
366 reported as of December 31 of the last calendar year and that there are no bills or obligations
367 outstanding and unpaid except as set forth in that report.
368 (4) An officeholder may:
369 (a) receive public service assistance from a political action committee registered under
370 Section 20A-11-601 ; and
371 (b) be designated by a political action committee as an officer who has primary
372 decision-making authority as described in Section 20A-11-601 .
373 (5) (a) If an officeholder receives an anonymous cash contribution or cash public
374 service assistance that exceeds $50, the candidate:
375 (i) except as provided by Subsection (5)(b), shall submit the contribution or public
376 service assistance to the lieutenant governor for deposit into the General Fund; and
377 (ii) is not required to report the contribution or public service assistance.
378 (b) A local school board member shall submit an anonymous cash contribution or cash
379 public service assistance that exceeds $50 to the school district's business administrator for
380 deposit into the school district's general fund.
381 Section 6. Section 20A-11-904 is amended to read:
382 20A-11-904. Contribution given in another's name prohibited -- Anonymous
383 contribution prohibited.
384 A person may not:
385 (1) make a contribution in the name of another;
386 (2) knowingly permit another to make a contribution in the person's name; [
387 (3) knowingly accept a contribution made by one person in the name of another[
388 (4) make a contribution that exceeds $50 without disclosing the person's name.
389 Section 7. Section 20A-11-1301 is amended to read:
390 20A-11-1301. School board office candidate -- Campaign finance requirements --
391 Candidate as a political action committee officer.
392 (1) (a) (i) [
393 candidate shall deposit each contribution and public service assistance received in one or more
394 separate accounts in a financial institution that are dedicated only to that purpose.
395 (ii) A school board office candidate may:
396 (A) receive a contribution or public service assistance from a political action
397 committee registered under Section 20A-11-601 ; and
398 (B) be designated by a political action committee as an officer who has primary
399 decision-making authority as described in Section 20A-11-601 .
400 (b) (i) If a candidate for the State Board of Education receives an anonymous
401 contribution that exceeds $50, the candidate:
402 (A) shall submit the contribution to the lieutenant governor for deposit into the General
403 Fund; and
404 (B) is not required to report the contribution.
405 (ii) If a candidate for local school board receives an anonymous contribution that
406 exceeds $50, the candidate:
407 (A) shall submit the contribution to the school district's business administrator for
408 deposit into the school district's general fund; and
409 (B) is not required to report the contribution.
410 [
411 described in Subsection (1)(a)(i) for:
412 (i) a personal use expenditure; or
413 (ii) an expenditure prohibited by law.
414 (2) A school board office candidate may not deposit or mingle any contributions or
415 public service assistance received into a personal or business account.
416 (3) A school board office candidate may not make any political expenditures prohibited
417 by law.
418 (4) If a person who is no longer a school board candidate chooses not to expend the
419 money remaining in a campaign account, the person shall continue to file the year-end
420 summary report required by Section 20A-11-1302 until the statement of dissolution and final
421 summary report required by Section 20A-11-1304 are filed with:
422 (a) the lieutenant governor in the case of a state school board candidate; and
423 (b) the county clerk, in the case of a local school board candidate.
424 (5) (a) Except as provided in Subsection (5)(b) and Section 20A-11-402 , a person who
425 is no longer a school board candidate may not expend or transfer the money in a campaign
426 account in a manner that would cause the former school board candidate to recognize the
427 money as taxable income under federal tax law.
428 (b) A person who is no longer a school board candidate may transfer the money in a
429 campaign account in a manner that would cause the former school board candidate to recognize
430 the money as taxable income under federal tax law if the transfer is made to a campaign
431 account for federal office.
432 (6) (a) As used in this Subsection (6) and Section 20A-11-1303 , "received" means:
433 (i) for a cash contribution, that the cash is given to a school board office candidate or a
434 member of the candidate's personal campaign committee;
435 (ii) for a contribution that is a negotiable instrument or check, that the negotiable
436 instrument or check is negotiated; and
437 (iii) for any other type of contribution, that any portion of the contribution's benefit
438 inures to the school board office candidate.
439 (b) Each school board office candidate shall report to the chief election officer each
440 contribution and public service assistance within 30 days after the contribution or public
441 service assistance is received.
Legislative Review Note
as of 2-20-12 11:53 AM