Second Substitute H.B. 394

This document includes Senate 3rd Reading Floor Amendments incorporated into the bill on Wed, Mar 12, 2014 at 12:37 PM by lpoole. -->

Senator John L. Valentine proposes the following substitute bill:


             1     
CAMPAIGN FINANCE REVISIONS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: James A. Dunnigan

             5     
Senate Sponsor: John L. Valentine

             6      Cosponsors:
             7      Patrice M. Arent
             8      Rebecca Chavez-Houck
             9      Brad L. DeeSusan Duckworth
Francis D. Gibson
Lynn N. Hemingway
Dana L. LaytonMike K. McKell
Lee B. Perry
Jennifer M. Seelig              10     
             11      LONG TITLE
             12      General Description:
             13          This bill amends provisions of the Election Code relating to campaign finance, conflicts
             14      of interest, and financial disclosures.
             15      Highlighted Provisions:
             16          This bill:
             17          .    defines terms;
             18          .    requires that a financial report include expenditures made by a reporting entity or an
             19      agent (including a political consultant) of a reporting entity on behalf of the
             20      reporting entity;
             21          .    provides that "contribution" includes a loan by a candidate to the candidate's own
             22      campaign;
             23          .    defines "in-kind" contributions;
             24          .    grants rulemaking authority to the director of elections within the Lieutenant


             25      Governor's Office;
             26          .    provides that when a person makes a detailed listing that discloses or reports the
             27      source of a contribution, discloses or reports the person or entity to whom a
             28      disbursement is made, or discloses or reports the identity of a donor, the person:
             29              .    shall reveal the actual source of the contribution, the actual person or entity to
             30      whom the disbursement is ultimately made, or the actual identity of the donor;
             31      and
             32              .    may not merely list, disclose, or report the transactional intermediary;
             33          .    modifies required filing dates for a financial disclosure form filed by a regulated
             34      officeholder;
             35          .    modifies and expands the information that a regulated officeholder is required to
             36      disclose in a financial disclosure form, including information for the year preceding
             37      the day on which the regulated officeholder files a financial disclosure form;
             38          .    expands disclosure provisions to include a regulated officeholder's involvement in
             39      limited liability corporations and other entities;
             40          .    clarifies that a regulated officeholder may file an amended financial disclosure form
             41      at any time;
             42          .    addresses the publication and retention of financial disclosure forms;
             43          .    establishes criminal and civil penalties for violating certain provisions of this bill
             44      relating to the filing or content of a financial disclosure form;
             45          .    describes duties of the lieutenant governor for reviewing a financial disclosure form
             46      and enforcing the provisions of this bill;
             47          .    provides that the lieutenant governor shall deposit a fine collected under this bill
             48      into the General Fund as a dedicated credit to pay for the costs of administering the
             49      provisions of this bill; and
             50          .    makes technical and conforming changes.
             51      Money Appropriated in this Bill:
             52          None
             53      Other Special Clauses:
             54          This bill provides an immediate effective date.
             55      Utah Code Sections Affected:


             56      AMENDS:
             57           20A-11-101 , as last amended by Laws of Utah 2013, Chapters 86, 170, 318, and 420
             58           20A-11-1601 , as enacted by Laws of Utah 2010, Chapter 12
             59           20A-11-1602 , as enacted by Laws of Utah 2010, Chapter 12
             60           20A-11-1603 , as last amended by Laws of Utah 2011, Chapter 297
             61      ENACTS:
             62           20A-11-101.3 , Utah Code Annotated 1953
             63           20A-11-101.5 , Utah Code Annotated 1953
             64           20A-11-1605 , Utah Code Annotated 1953
             65           20A-12-301.5 , Utah Code Annotated 1953
             66      RENUMBERS AND AMENDS:
             67           20A-11-1604 , (Renumbered from 76-8-109, as last amended by Laws of Utah 2013,
             68      Chapter 278)
             69     
             70      Be it enacted by the Legislature of the state of Utah:
             71          Section 1. Section 20A-11-101 is amended to read:
             72           20A-11-101. Definitions.
             73          As used in this chapter:
             74          (1) "Address" means the number and street where an individual resides or where a
             75      reporting entity has its principal office.
             76          (2) "Agent of a reporting entity" means:
             77          (a) a person acting on behalf of a reporting entity at the direction of the reporting
             78      entity;
             79          (b) a person employed by a reporting entity in the reporting entity's capacity as a
             80      reporting entity;
             81          (c) the personal campaign committee of a candidate or officeholder;
             82          (d) a member of the personal campaign committee of a candidate or officeholder in the
             83      member's capacity as a member of the personal campaign committee of the candidate or
             84      officeholder; or
             85          (e) a political consultant of a reporting entity.
             86          [(2)] (3) "Ballot proposition" includes initiatives, referenda, proposed constitutional


             87      amendments, and any other ballot propositions submitted to the voters that are authorized by
             88      the Utah Code Annotated 1953.
             89          [(3)] (4) "Candidate" means any person who:
             90          (a) files a declaration of candidacy for a public office; or
             91          (b) receives contributions, makes expenditures, or gives consent for any other person to
             92      receive contributions or make expenditures to bring about the person's nomination or election
             93      to a public office.
             94          [(4)] (5) "Chief election officer" means:
             95          (a) the lieutenant governor for state office candidates, legislative office candidates,
             96      officeholders, political parties, political action committees, corporations, political issues
             97      committees, state school board candidates, judges, and labor organizations, as defined in
             98      Section 20A-11-1501 ; and
             99          (b) the county clerk for local school board candidates.
             100          [(5)] (6) (a) "Contribution" means any of the following when done for political
             101      purposes:
             102          (i) a gift, subscription, donation, loan, advance, or deposit of money or anything of
             103      value given to the filing entity;
             104          (ii) an express, legally enforceable contract, promise, or agreement to make a gift,
             105      subscription, donation, unpaid or partially unpaid loan, advance, or deposit of money or
             106      anything of value to the filing entity;
             107          (iii) any transfer of funds from another reporting entity to the filing entity;
             108          (iv) compensation paid by any person or reporting entity other than the filing entity for
             109      personal services provided without charge to the filing entity;
             110          (v) remuneration from:
             111          (A) any organization or its directly affiliated organization that has a registered lobbyist;
             112      or
             113          (B) any agency or subdivision of the state, including school districts; [and]
             114          [(vi) goods or services provided to or for the benefit of the filing entity at less than fair
             115      market value.]
             116          (vi) a loan made by a candidate S. deposited .S to the candidate's own campaign; and
             117          (vii) in-kind contributions.


             118          (b) "Contribution" does not include:
             119          (i) services provided [without compensation] by individuals volunteering a portion or
             120      all of their time on behalf of the filing entity if the services are provided without compensation
             121      by the filing entity or any other person;
             122          (ii) money lent to the filing entity by a financial institution in the ordinary course of
             123      business; or
             124          (iii) goods or services provided for the benefit of a candidate or political party at less
             125      than fair market value that are not authorized by or coordinated with the candidate or political
             126      party.
             127          [(6)] (7) "Coordinated with" means that goods or services provided for the benefit of a
             128      candidate or political party are provided:
             129          (a) with the candidate's or political party's prior knowledge, if the candidate or political
             130      party does not object;
             131          (b) by agreement with the candidate or political party;
             132          (c) in coordination with the candidate or political party; or
             133          (d) using official logos, slogans, and similar elements belonging to a candidate or
             134      political party.
             135          [(7)] (8) (a) "Corporation" means a domestic or foreign, profit or nonprofit, business
             136      organization that is registered as a corporation or is authorized to do business in a state and
             137      makes any expenditure from corporate funds for:
             138          (i) the purpose of expressly advocating for political purposes; or
             139          (ii) the purpose of expressly advocating the approval or the defeat of any ballot
             140      proposition.
             141          (b) "Corporation" does not mean:
             142          (i) a business organization's political action committee or political issues committee; or
             143          (ii) a business entity organized as a partnership or a sole proprietorship.
             144          [(8)] (9) "County political party" means, for each registered political party, all of the
             145      persons within a single county who, under definitions established by the political party, are
             146      members of the registered political party.
             147          [(9)] (10) "County political party officer" means a person whose name is required to be
             148      submitted by a county political party to the lieutenant governor in accordance with Section


             149      20A-8-402 .
             150          [(10)] (11) "Detailed listing" means:
             151          (a) for each contribution or public service assistance:
             152          (i) the name and address of the individual or source making the contribution or public
             153      service assistance;
             154          (ii) the amount or value of the contribution or public service assistance; and
             155          (iii) the date the contribution or public service assistance was made; and
             156          (b) for each expenditure:
             157          (i) the amount of the expenditure;
             158          (ii) the person or entity to whom it was disbursed;
             159          (iii) the specific purpose, item, or service acquired by the expenditure; and
             160          (iv) the date the expenditure was made.
             161          [(11)] (12) (a) "Donor" means a person that gives money, including a fee, due, or
             162      assessment for membership in the corporation, to a corporation without receiving full and
             163      adequate consideration for the money.
             164          (b) "Donor" does not include a person that signs a statement that the corporation may
             165      not use the money for an expenditure or political issues expenditure.
             166          [(12)] (13) "Election" means each:
             167          (a) regular general election;
             168          (b) regular primary election; and
             169          (c) special election at which candidates are eliminated and selected.
             170          [(13)] (14) "Electioneering communication" means a communication that:
             171          (a) has at least a value of $10,000;
             172          (b) clearly identifies a candidate or judge; and
             173          (c) is disseminated through the Internet, newspaper, magazine, outdoor advertising
             174      facility, direct mailing, broadcast, cable, or satellite provider within 45 days of the clearly
             175      identified candidate's or judge's election date.
             176          [(14)] (15) (a) "Expenditure" means any of the following made by a reporting entity or
             177      an agent of a reporting entity on behalf of the reporting entity:
             178          (i) any disbursement from contributions, receipts, or from the separate bank account
             179      required by this chapter;


             180          (ii) a purchase, payment, donation, distribution, loan, advance, deposit, gift of money,
             181      or anything of value made for political purposes;
             182          (iii) an express, legally enforceable contract, promise, or agreement to make any
             183      purchase, payment, donation, distribution, loan, advance, deposit, gift of money, or anything of
             184      value for political purposes;
             185          (iv) compensation paid by a filing entity for personal services rendered by a person
             186      without charge to a reporting entity;
             187          (v) a transfer of funds between the filing entity and a candidate's personal campaign
             188      committee; or
             189          (vi) goods or services provided by the filing entity to or for the benefit of another
             190      reporting entity for political purposes at less than fair market value.
             191          (b) "Expenditure" does not include:
             192          (i) services provided without compensation by individuals volunteering a portion or all
             193      of their time on behalf of a reporting entity;
             194          (ii) money lent to a reporting entity by a financial institution in the ordinary course of
             195      business; or
             196          (iii) anything listed in Subsection [(14)] (15)(a) that is given by a reporting entity to
             197      candidates for office or officeholders in states other than Utah.
             198          [(15)] (16) "Federal office" means the office of president of the United States, United
             199      States Senator, or United States Representative.
             200          [(16)] (17) "Filing entity" means the reporting entity that is required to file a financial
             201      statement required by this chapter or Chapter 12, Part 2, Judicial Retention Elections.
             202          [(17)] (18) "Financial statement" includes any summary report, interim report, verified
             203      financial statement, or other statement disclosing contributions, expenditures, receipts,
             204      donations, or disbursements that is required by this chapter or Chapter 12, Part 2, Judicial
             205      Retention Elections.
             206          [(18)] (19) "Governing board" means the individual or group of individuals that
             207      determine the candidates and committees that will receive expenditures from a political action
             208      committee, political party, or corporation.
             209          [(19)] (20) "Incorporation" means the process established by Title 10, Chapter 2, Part
             210      1, Incorporation, by which a geographical area becomes legally recognized as a city or town.


             211          [(20)] (21) "Incorporation election" means the election authorized by Section 10-2-111 .
             212          [(21)] (22) "Incorporation petition" means a petition authorized by Section 10-2-109 .
             213          [(22)] (23) "Individual" means a natural person.
             214          (24) "In-kind contribution" means anything of value, other than money, that is accepted
             215      by or coordinated with a filing entity.
             216          [(23)] (25) "Interim report" means a report identifying the contributions received and
             217      expenditures made since the last report.
             218          [(24)] (26) "Legislative office" means the office of state senator, state representative,
             219      speaker of the House of Representatives, president of the Senate, and the leader, whip, and
             220      assistant whip of any party caucus in either house of the Legislature.
             221          [(25)] (27) "Legislative office candidate" means a person who:
             222          (a) files a declaration of candidacy for the office of state senator or state representative;
             223          (b) declares oneself to be a candidate for, or actively campaigns for, the position of
             224      speaker of the House of Representatives, president of the Senate, or the leader, whip, and
             225      assistant whip of any party caucus in either house of the Legislature; or
             226          (c) receives contributions, makes expenditures, or gives consent for any other person to
             227      receive contributions or make expenditures to bring about the person's nomination, election, or
             228      appointment to a legislative office.
             229          [(26)] (28) "Major political party" means either of the two registered political parties
             230      that have the greatest number of members elected to the two houses of the Legislature.
             231          [(27)] (29) "Officeholder" means a person who holds a public office.
             232          [(28)] (30) "Party committee" means any committee organized by or authorized by the
             233      governing board of a registered political party.
             234          [(29)] (31) "Person" means both natural and legal persons, including individuals,
             235      business organizations, personal campaign committees, party committees, political action
             236      committees, political issues committees, and labor organizations, as defined in Section
             237      20A-11-1501 .
             238          [(30)] (32) "Personal campaign committee" means the committee appointed by a
             239      candidate to act for the candidate as provided in this chapter.
             240          [(31)] (33) "Personal use expenditure" has the same meaning as provided under Section
             241      20A-11-104 .


             242          [(32)] (34) (a) "Political action committee" means an entity, or any group of
             243      individuals or entities within or outside this state, a major purpose of which is to:
             244          (i) solicit or receive contributions from any other person, group, or entity for political
             245      purposes; or
             246          (ii) make expenditures to expressly advocate for any person to refrain from voting or to
             247      vote for or against any candidate or person seeking election to a municipal or county office.
             248          (b) "Political action committee" includes groups affiliated with a registered political
             249      party but not authorized or organized by the governing board of the registered political party
             250      that receive contributions or makes expenditures for political purposes.
             251          (c) "Political action committee" does not mean:
             252          (i) a party committee;
             253          (ii) any entity that provides goods or services to a candidate or committee in the regular
             254      course of its business at the same price that would be provided to the general public;
             255          (iii) an individual;
             256          (iv) individuals who are related and who make contributions from a joint checking
             257      account;
             258          (v) a corporation, except a corporation a major purpose of which is to act as a political
             259      action committee; or
             260          (vi) a personal campaign committee.
             261          (35) (a) "Political consultant" means a person who is paid by a reporting entity, or paid
             262      by another person on behalf of and with the knowledge of the reporting entity, to provide
             263      political advice to the reporting entity.
             264          (b) "Political consultant" includes a circumstance described in Subsection (35)(a),
             265      where the person:
             266          (i) has already been paid, with money or other consideration;
             267          (ii) expects to be paid in the future, with money or other consideration; or
             268          (iii) understands that the person may, in the discretion of the reporting entity or another
             269      person on behalf of and with the knowledge of the reporting entity, be paid in the future, with
             270      money or other consideration.
             271          [(33)] (36) "Political convention" means a county or state political convention held by
             272      a registered political party to select candidates.


             273          [(34)] (37) (a) "Political issues committee" means an entity, or any group of individuals
             274      or entities within or outside this state, a major purpose of which is to:
             275          (i) solicit or receive donations from any other person, group, or entity to assist in
             276      placing a ballot proposition on the ballot, assist in keeping a ballot proposition off the ballot, or
             277      to advocate that a voter refrain from voting or vote for or vote against any ballot proposition;
             278          (ii) make expenditures to expressly advocate for any person to sign or refuse to sign a
             279      ballot proposition or incorporation petition or refrain from voting, vote for, or vote against any
             280      proposed ballot proposition or an incorporation in an incorporation election; or
             281          (iii) make expenditures to assist in qualifying or placing a ballot proposition on the
             282      ballot or to assist in keeping a ballot proposition off the ballot.
             283          (b) "Political issues committee" does not mean:
             284          (i) a registered political party or a party committee;
             285          (ii) any entity that provides goods or services to an individual or committee in the
             286      regular course of its business at the same price that would be provided to the general public;
             287          (iii) an individual;
             288          (iv) individuals who are related and who make contributions from a joint checking
             289      account; or
             290          (v) a corporation, except a corporation a major purpose of which is to act as a political
             291      issues committee.
             292          [(35)] (38) (a) "Political issues contribution" means any of the following:
             293          (i) a gift, subscription, unpaid or partially unpaid loan, advance, or deposit of money or
             294      anything of value given to a political issues committee;
             295          (ii) an express, legally enforceable contract, promise, or agreement to make a political
             296      issues donation to influence the approval or defeat of any ballot proposition;
             297          (iii) any transfer of funds received by a political issues committee from a reporting
             298      entity;
             299          (iv) compensation paid by another reporting entity for personal services rendered
             300      without charge to a political issues committee; and
             301          (v) goods or services provided to or for the benefit of a political issues committee at
             302      less than fair market value.
             303          (b) "Political issues contribution" does not include:


             304          (i) services provided without compensation by individuals volunteering a portion or all
             305      of their time on behalf of a political issues committee; or
             306          (ii) money lent to a political issues committee by a financial institution in the ordinary
             307      course of business.
             308          [(36)] (39) (a) "Political issues expenditure" means any of the following when made by
             309      a political issues committee or on behalf of a political issues committee by an agent of the
             310      reporting entity:
             311          (i) any payment from political issues contributions made for the purpose of influencing
             312      the approval or the defeat of:
             313          (A) a ballot proposition; or
             314          (B) an incorporation petition or incorporation election;
             315          (ii) a purchase, payment, distribution, loan, advance, deposit, or gift of money made for
             316      the express purpose of influencing the approval or the defeat of:
             317          (A) a ballot proposition; or
             318          (B) an incorporation petition or incorporation election;
             319          (iii) an express, legally enforceable contract, promise, or agreement to make any
             320      political issues expenditure;
             321          (iv) compensation paid by a reporting entity for personal services rendered by a person
             322      without charge to a political issues committee; or
             323          (v) goods or services provided to or for the benefit of another reporting entity at less
             324      than fair market value.
             325          (b) "Political issues expenditure" does not include:
             326          (i) services provided without compensation by individuals volunteering a portion or all
             327      of their time on behalf of a political issues committee; or
             328          (ii) money lent to a political issues committee by a financial institution in the ordinary
             329      course of business.
             330          [(37)] (40) "Political purposes" means an act done with the intent or in a way to
             331      influence or tend to influence, directly or indirectly, any person to refrain from voting or to vote
             332      for or against any candidate or a person seeking a municipal or county office at any caucus,
             333      political convention, or election.
             334          [(38)] (41) (a) "Poll" means the survey of a person regarding the person's opinion or


             335      knowledge of an individual who has filed a declaration of candidacy for public office, or of a
             336      ballot proposition that has legally qualified for placement on the ballot, which is conducted in
             337      person or by telephone, facsimile, Internet, postal mail, or email.
             338          (b) "Poll" does not include:
             339          (i) a ballot; or
             340          (ii) an interview of a focus group that is conducted, in person, by one individual, if:
             341          (A) the focus group consists of more than three, and less than thirteen, individuals; and
             342          (B) all individuals in the focus group are present during the interview.
             343          [(39)] (42) "Primary election" means any regular primary election held under the
             344      election laws.
             345          [(40)] (43) "Public office" means the office of governor, lieutenant governor, state
             346      auditor, state treasurer, attorney general, state or local school board member, state senator, state
             347      representative, speaker of the House of Representatives, president of the Senate, and the leader,
             348      whip, and assistant whip of any party caucus in either house of the Legislature.
             349          [(41)] (44) (a) "Public service assistance" means the following when given or provided
             350      to an officeholder to defray the costs of functioning in a public office or aid the officeholder to
             351      communicate with the officeholder's constituents:
             352          (i) a gift, subscription, donation, unpaid or partially unpaid loan, advance, or deposit of
             353      money or anything of value to an officeholder; or
             354          (ii) goods or services provided at less than fair market value to or for the benefit of the
             355      officeholder.
             356          (b) "Public service assistance" does not include:
             357          (i) anything provided by the state;
             358          (ii) services provided without compensation by individuals volunteering a portion or all
             359      of their time on behalf of an officeholder;
             360          (iii) money lent to an officeholder by a financial institution in the ordinary course of
             361      business;
             362          (iv) news coverage or any publication by the news media; or
             363          (v) any article, story, or other coverage as part of any regular publication of any
             364      organization unless substantially all the publication is devoted to information about the
             365      officeholder.


             366          [(42)] (45) "Publicly identified class of individuals" means a group of 50 or more
             367      individuals sharing a common occupation, interest, or association that contribute to a political
             368      action committee or political issues committee and whose names can be obtained by contacting
             369      the political action committee or political issues committee upon whose financial statement the
             370      individuals are listed.
             371          [(43)] (46) "Receipts" means contributions and public service assistance.
             372          [(44)] (47) "Registered lobbyist" means a person registered under Title 36, Chapter 11,
             373      Lobbyist Disclosure and Regulation Act.
             374          [(45)] (48) "Registered political action committee" means any political action
             375      committee that is required by this chapter to file a statement of organization with the Office of
             376      the Lieutenant Governor.
             377          [(46)] (49) "Registered political issues committee" means any political issues
             378      committee that is required by this chapter to file a statement of organization with the Office of
             379      the Lieutenant Governor.
             380          [(47)] (50) "Registered political party" means an organization of voters that:
             381          (a) participated in the last regular general election and polled a total vote equal to 2%
             382      or more of the total votes cast for all candidates for the United States House of Representatives
             383      for any of its candidates for any office; or
             384          (b) has complied with the petition and organizing procedures of Chapter 8, Political
             385      Party Formation and Procedures.
             386          [(48)] (51) (a) "Remuneration" means a payment:
             387          (i) made to a legislator for the period the Legislature is in session; and
             388          (ii) that is approximately equivalent to an amount a legislator would have earned
             389      during the period the Legislature is in session in the legislator's ordinary course of business.
             390          (b) "Remuneration" does not mean anything of economic value given to a legislator by:
             391          (i) the legislator's primary employer in the ordinary course of business; or
             392          (ii) a person or entity in the ordinary course of business:
             393          (A) because of the legislator's ownership interest in the entity; or
             394          (B) for services rendered by the legislator on behalf of the person or entity.
             395          [(49)] (52) "Reporting entity" means a candidate, a candidate's personal campaign
             396      committee, a judge, a judge's personal campaign committee, an officeholder, a party


             397      committee, a political action committee, a political issues committee, a corporation, or a labor
             398      organization, as defined in Section 20A-11-1501 .
             399          [(50)] (53) "School board office" means the office of state school board or local school
             400      board.
             401          [(51)] (54) (a) "Source" means the person or entity that is the legal owner of the
             402      tangible or intangible asset that comprises the contribution.
             403          (b) "Source" means, for political action committees and corporations, the political
             404      action committee and the corporation as entities, not the contributors to the political action
             405      committee or the owners or shareholders of the corporation.
             406          [(52)] (55) "State office" means the offices of governor, lieutenant governor, attorney
             407      general, state auditor, and state treasurer.
             408          [(53)] (56) "State office candidate" means a person who:
             409          (a) files a declaration of candidacy for a state office; or
             410          (b) receives contributions, makes expenditures, or gives consent for any other person to
             411      receive contributions or make expenditures to bring about the person's nomination, election, or
             412      appointment to a state office.
             413          [(54)] (57) "Summary report" means the year end report containing the summary of a
             414      reporting entity's contributions and expenditures.
             415          [(55)] (58) "Supervisory board" means the individual or group of individuals that
             416      allocate expenditures from a political issues committee.
             417          Section 2. Section 20A-11-101.3 is enacted to read:
             418          20A-11-101.3. Detailed listing -- Rulemaking authority.
             419          The director of elections, within the Lieutenant Governor's Office, may make rules, in
             420      accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, in relation to the
             421      form, type, and level of detail required in a detailed listing or a financial disclosure form.
             422          Section 3. Section 20A-11-101.5 is enacted to read:
             423          20A-11-101.5. Disclosure of actual source or recipient required.
             424          (1) As used in this section, "transactional intermediary" means a person, including a
             425      credit card company, a financial institution, or a money transfer service, that pays or transfers
             426      money to a person on behalf of another person.
             427          (2) When, under this chapter, a person makes a detailed listing, discloses or reports the


             428      source of a contribution, discloses or reports the person or entity to whom a disbursement is
             429      made, or discloses or reports the identity of a donor, the person:
             430          (a) shall reveal the actual source of the contribution, the actual person or entity to
             431      whom the disbursement is ultimately made, or the actual identity of the donor; and
             432          (b) may not merely list, disclose, or report the transactional intermediary.
             433          Section 4. Section 20A-11-1601 is amended to read:
             434     
Part 16. Financial Disclosures

             435           20A-11-1601. Title.
             436          This part is known as ["Candidate] "Financial Disclosures."
             437          Section 5. Section 20A-11-1602 is amended to read:
             438           20A-11-1602. Definitions.
             439          [(1) "Filing officer" is as defined in Section 20A-9-101 .]
             440          As used in this part:
             441          (1) "Conflict of interest" means an action that is taken by a regulated officeholder that
             442      the officeholder reasonably believes may cause direct financial benefit or detriment to the
             443      officeholder, a member of the officeholder's immediate family, or an entity that the officeholder
             444      is required to disclose under the provisions of this section, if that benefit or detriment is
             445      distinguishable from the effects of that action on the public or on the officeholder's profession,
             446      occupation, or association generally.
             447          (2) "Entity" means a corporation, a partnership, a limited liability company, a limited
             448      partnership, a sole proprietorship, an association, a cooperative, a trust, an organization, a joint
             449      venture, a governmental entity, an unincorporated organization, or any other legal entity,
             450      regardless of whether it is established primarily for the purpose of gain or economic profit.
             451          (3) "Immediate family" means the regulated officeholder's spouse, a child living in the
             452      regulated officeholder's immediate household, or an individual claimed as a dependent for state
             453      or federal income tax purposes by the regulated officeholder.
             454          (4) "Income" means earnings, compensation, or any other payment made to an
             455      individual for gain, regardless of source, whether denominated as wages, salary, commission,
             456      pay, bonus, severance pay, incentive pay, contract payment, interest, per diem, expenses,
             457      reimbursement, dividends, or otherwise.
             458          (5) (a) "Owner or officer" means an individual who owns an ownership interest in an


             459      entity or holds a position where the person has authority to manage, direct, control, or make
             460      decisions for:
             461          (i) the entity or a portion of the entity; or
             462          (ii) an employee, agent, or independent contractor of the entity.
             463          (b) "Owner or officer" includes:
             464          (i) a member of a board of directors or other governing body of an entity; or
             465          (ii) a partner in any type of partnership.
             466          (6) "Preceding year" means the year immediately preceding the day on which the
             467      regulated officeholder files a financial disclosure form.
             468          (7) "Regulated officeholder" means an individual who is required to file a financial
             469      disclosure form under the provisions of this part.
             470          [(2)] (8) "State constitutional officer" means the governor, the lieutenant governor, the
             471      state auditor, the state treasurer, or the attorney general.
             472          Section 6. Section 20A-11-1603 is amended to read:
             473           20A-11-1603. Financial disclosure form -- Required when filing for candidacy --
             474      Public availability.
             475          (1) Candidates seeking the following offices shall file a financial disclosure with the
             476      filing officer at the time of filing a declaration of candidacy:
             477          (a) state constitutional officer;
             478          (b) state legislator; or
             479          (c) State Board of Education member.
             480          (2) A filing officer may not accept a declaration of candidacy for an office listed in
             481      Subsection (1) unless the declaration of candidacy is accompanied by the financial disclosure
             482      required by this section.
             483          (3) The financial disclosure form shall contain the same requirements and shall be in
             484      the same format as the financial disclosure form described in Section [ 76-8-109 ] 20A-11-1604 .
             485          (4) The financial disclosure form shall:
             486          (a) be made available for public inspection at the filing officer's place of business;
             487          (b) if the filing officer is an individual other than the lieutenant governor, be provided
             488      to the lieutenant governor within five business days of the date of filing and be made publicly
             489      available at the Office of the Lieutenant Governor; and


             490          (c) be made publicly available on the Statewide Electronic Voter Information Website
             491      administered by the lieutenant governor.
             492          Section 7. Section 20A-11-1604 , which is renumbered from Section 76-8-109 is
             493      renumbered and amended to read:
             494           [76-8-109].     20A-11-1604. Failure to disclose conflict of interest -- Failure to
             495      comply with reporting requirements.
             496          [(1) As used in this section:]
             497          [(a) "Conflict of interest" means an action that is taken by a regulated officeholder that
             498      the officeholder reasonably believes may cause direct financial benefit or detriment to the
             499      officeholder, a member of the officeholder's immediate family, or an entity that the officeholder
             500      is required to disclose under the provisions of this section, and that benefit or detriment is
             501      distinguishable from the effects of that action on the public or on the officeholder's profession,
             502      occupation, or association generally.]
             503          [(b) "Entity" means a corporation, a partnership, a limited liability company, a limited
             504      partnership, a sole proprietorship, an association, a cooperative, a trust, an organization, a joint
             505      venture, a governmental entity, an unincorporated organization, or any other legal entity,
             506      whether established primarily for the purpose of gain or economic profit or not.]
             507          [(c) "Filer" means the individual filing a financial declaration under this section.]
             508          [(d) "Immediate family" means the regulated officeholder's spouse and children living
             509      in the officeholder's immediate household.]
             510          [(e) "Income" means earnings, compensation, or any other payment made to an
             511      individual for gain, regardless of source, whether denominated as wages, salary, commission,
             512      pay, bonus, severance pay, incentive pay, contract payment, interest, per diem, expenses,
             513      reimbursement, dividends, or otherwise.]
             514          [(f) "Regulated officeholder" means an individual that is required to file a financial
             515      disclosure under the provisions and requirements of this section.]
             516          [(g) "State constitutional officer" means the governor, the lieutenant governor, the state
             517      auditor, the state treasurer, or the attorney general.]
             518          [(2)] (1) (a) Before or during the execution of any order, settlement, declaration,
             519      contract, or any other official act of office in which a state constitutional officer has actual
             520      knowledge that the state constitutional officer has a conflict of interest [which] that is not


             521      stated on the financial disclosure form [required under Subsection (4), the] described in this
             522      section, the state constitutional officer shall publicly declare that the state constitutional officer
             523      may have a conflict of interest and what that conflict of interest is.
             524          (b) Before or during any vote on legislation or any legislative matter in which a
             525      legislator has actual knowledge that the legislator has a conflict of interest [which] that is not
             526      stated on the financial disclosure form [required under Subsection (4)] described in this
             527      section, the legislator shall orally declare to the committee or body before which the matter is
             528      pending that the legislator may have a conflict of interest and what that conflict is.
             529          (c) Before or during any vote on any rule, resolution, order, or any other board matter
             530      in which a member of the State Board of Education has actual knowledge that the member has
             531      a conflict of interest [which] that is not stated on the financial disclosure form [required under
             532      Subsection (4)] described in this section, the member shall orally declare to the board that the
             533      member may have a conflict of interest and what that conflict of interest is.
             534          [(3)] (2) Any public declaration of a conflict of interest that is made under Subsection
             535      [(2)] (1) shall be noted:
             536          (a) on the official record of the action taken, for a state constitutional officer;
             537          (b) in the minutes of the committee meeting or in the Senate or House Journal, as
             538      applicable, for a legislator; or
             539          (c) in the minutes of the meeting or on the official record of the action taken, for a
             540      member of the State Board of Education.
             541          [(4) (a) The following individuals shall file a financial disclosure form:]
             542          [(i) a] (3) (a) A state constitutional officer[, to be due] shall file a financial disclosure
             543      form:
             544          (i) on the tenth day of January of each year, or the following business day if the due
             545      date falls on a weekend or holiday; and
             546          [(ii) a legislator, at the following times:]
             547          (ii) each time the state constitutional officer changes employment.
             548          (b) A legislator shall file a financial disclosure form:
             549          [(A)] (i) on the first day of each general session of the Legislature; and
             550          [(B)] (ii) each time the legislator changes employment[;].
             551          [(iii) a] (c) A member of the State Board of Education[, at the following times] shall


             552      file a financial disclosure form:
             553          [(A)] (i) on the tenth day of January of each year, or the following business day if the
             554      due date falls on a weekend or holiday; and
             555          [(B)] (ii) each time the member changes employment.
             556          [(b)] (4) The financial disclosure form described in Subsection (3) shall include:
             557          [(i) the filer's name;]
             558          (a) the regulated officeholder's name;
             559          [(ii)] (b) the name and address of [the filer's primary employer] each of the regulated
             560      officeholder's current employers and each of the regulated officeholder's employers during the
             561      preceding year;
             562          [(iii)] (c) for each employer described in Subsection (4)(b), a brief description of the
             563      [filer's] employment, including the [filer's] regulated officeholder's occupation and, as
             564      applicable, job title;
             565          [(iv)] (d) for each entity in which the [filer] regulated officeholder is an owner or [an]
             566      officer, or was an owner or officer during the preceding year:
             567          [(A)] (i) the name of the entity;
             568          [(B)] (ii) a brief description of the type of business or activity conducted by the entity;
             569      and
             570          [(C)] (iii) the [filer's] regulated officeholder's position in the entity;
             571          [(v)] (e) in accordance with Subsection (5)(b), for each [entity that has paid] individual
             572      from whom, or entity from which, the regulated officeholder has received $5,000 or more in
             573      income [to the filer within the one-year period ending immediately before the date of the
             574      disclosure form] during the preceding year:
             575          [(A)] (i) the name of the individual or entity; and
             576          [(B)] (ii) a brief description of the type of business or activity conducted by the
             577      individual or entity;
             578          [(vi)] (f) for each entity in which the [filer] regulated officeholder holds any stocks or
             579      bonds having a fair market value of $5,000 or more as of the date of the disclosure form or
             580      during the preceding year, but excluding funds that are managed by a third party, including
             581      blind trusts, managed investment accounts, and mutual funds:
             582          [(A)] (i) the name of the entity; and


             583          [(B)] (ii) a brief description of the type of business or activity conducted by the entity;
             584          [(vii)] (g) for each entity not listed in Subsections [(4)(b)(iv) through (4)(b)(vi),] (4)(d)
             585      through (f) in which the [filer serves] regulated officeholder currently serves, or served in the
             586      preceding year, on the board of directors or in any other type of [formal advisory capacity] paid
             587      leadership capacity:
             588          [(A)] (i) the name of the entity or organization;
             589          [(B)] (ii) a brief description of the type of business or activity conducted by the entity;
             590      and
             591          [(C)] (iii) the type of advisory position held by the [filer] regulated officeholder;
             592          [(viii)] (h) at the option of the [filer] regulated officeholder, a description of any real
             593      property in which the [filer] regulated officeholder holds an ownership or other financial
             594      interest that the [filer] regulated officeholder believes may constitute a conflict of interest,
             595      including[: (A) a description of the real property; and (B)] a description of the type of interest
             596      held by the [filer] regulated officeholder in the property;
             597          [(ix)] (i) the name of the [filer's] regulated officeholder's spouse and any other adult
             598      residing in the [filer's] regulated officeholder's household [that] who is not related by blood or
             599      marriage, as applicable;
             600          (j) for the regulated officeholder's spouse, the information that a regulated officeholder
             601      is required to provide under Subsection (4)(b);
             602          [(x)] (k) a brief description of the employment and occupation of [the filer's spouse and
             603      any other adult residing in the filer's household that] each adult who:
             604          (i) resides in the regulated officeholder's household; and
             605          (ii) is not related to the regulated officeholder by blood or marriage[, as applicable];
             606          [(xi)] (l) at the option of the [filer] regulated officeholder, a description of any other
             607      matter or interest that the [filer] regulated officeholder believes may constitute a conflict of
             608      interest;
             609          [(xii)] (m) the date the form was completed;
             610          [(xiii)] (n) a statement that the [filer] regulated officeholder believes that the form is
             611      true and accurate to the best of the [filer's] regulated officeholder's knowledge; and
             612          [(xiv)] (o) the signature of the [filer] regulated officeholder.
             613          [(c) (i) The financial disclosure shall be filed with:]


             614          (5) (a) The regulated officeholder shall file the financial disclosure form with:
             615          [(A)] (i) the secretary of the Senate, [for a legislator that is a senator] if the regulated
             616      officeholder is a member of the Senate;
             617          [(B)] (ii) the chief clerk of the House of Representatives, [for a legislator that is a
             618      representative] if the regulated officeholder is a member of the House of Representatives; or
             619          [(C)] (iii) the lieutenant governor, [for all other regulated officeholders] if the regulated
             620      officeholder is a regulated officeholder other than a regulated officeholder described in
             621      Subsection (5)(a)(i) or (ii).
             622           S. [ (b) In making the disclosure described in Subsection (4)(e), a regulated officeholder
             623      who provides services to multiple clients as part of a licensed profession is only required to
             624      provide the information described in Subsection (4)(e) in relation to the entity or practice
             625      through which the regulated officeholder provides professional services and is not required to
             626      provide the information described in Subsection (4)(e) in relation to the regulated officeholder's
             627      clients.
] (b) In making the disclosure described in Subsection (4)(e), a regulated officeholder

             627a      who provides goods or services to multiple customers or clients as part of a business or a
             627b      licensed profession is only required to provide the information described in Subsection (4)(e) in
             627c      relation to the entity or practice
             627d      through which the regulated officeholder provides the goods or services and is not required to
             627e      provide the information described in Subsection (4)(e) in relation to the regulated
             627f      officeholder's individual customers or clients. .S
             628          [(ii)] (6) The lieutenant governor, the secretary of the Senate, and the chief clerk of the
             629      House of Representatives shall ensure that blank financial disclosure forms are available on the
             630      Internet and at their offices.
             631          [(d) Financial disclosure forms that are filed under the procedures and requirements of
             632      this section shall be made available to the public:]
             633          (7) An individual described in Subsection (6) who receives a financial disclosure form
             634      or an amendment to a financial disclosure form under this section shall make each version of
             635      the form, and each amendment to the form, available to the public for the period of time
             636      described in Subsection (8), in the following manner:
             637          [(i)] (a) on the Internet; and
             638          [(ii)] (b) at the office where the form or the amendment to the form was filed.
             639          [(e) This section's requirement to disclose a conflict of interest does]
             640          (8) The period of time that an individual described in Subsection (7) shall make each
             641      version of a financial disclosure form and each amendment to a financial disclosure form
             642      available to the public is:
             643          (a) two years after the day on which the individual described in Subsection (7) receives
             644      the form, for a regulated officeholder in an office that has a normal term of two years or less; or


             645          (b) four years after the day on which the individual described in Subsection (7) receives
             646      the form, for a regulated officeholder in an office that has a normal term of more than two
             647      years.
             648          (9) The disclosure requirements described in this section do not prohibit a regulated
             649      officeholder from voting or acting on any matter.
             650          (10) A regulated officeholder may amend a financial disclosure form described in this
             651      part at any time.
             652          [(5)] (11) A regulated officeholder who violates the requirements of Subsection [(2)]
             653      (1) is guilty of a class B misdemeanor.
             654          (12) (a) A regulated officeholder who intentionally or knowingly violates a provision
             655      of this section, other than Subsection (1), is guilty of a class B misdemeanor.
             656          (b) In addition to the criminal penalty described in Subsection (12)(a), the lieutenant
             657      governor shall impose a civil penalty of $100 against a regulated officeholder who violates a
             658      provision of this section, other than Subsection (1).
             659          Section 8. Section 20A-11-1605 is enacted to read:
             660          20A-11-1605. Failure to file -- Penalties.
             661          (1) Within 30 days after the day on which a regulated officeholder is required to file a
             662      financial disclosure form under Subsection 20A-11-1604 (3)(a)(i), (b)(i), or (c)(i), the lieutenant
             663      governor shall review each filed financial disclosure form to ensure that:
             664          (a) each regulated officeholder who is required to file a financial disclosure form has
             665      filed one; and
             666          (b) each financial disclosure form contains the information required under Section
             667      20A-11-1604 .
             668          (2) The lieutenant governor shall take the action described in Subsection (3) if:
             669          (a) a regulated officeholder has failed to timely file a financial disclosure form;
             670          (b) a filed financial disclosure form does not comply with the requirements of Section
             671      20A-11-1604 ; or
             672          (c) the lieutenant governor receives a written complaint alleging a violation of Section
             673      20A-11-1604 , other than Subsection 20A-11-1604 (1), and after receiving the complaint and
             674      giving the regulated officeholder notice and an opportunity to be heard, the lieutenant governor
             675      determines that a violation occurred.


             676          (3) If a circumstance described in Subsection (2) occurs, the lieutenant governor shall,
             677      within five days after the day on which the lieutenant governor determines that a violation
             678      occurred, notify the regulated officeholder of the violation and direct the regulated officeholder
             679      to file an amended report correcting the problem.
             680          (4) (a) It is unlawful for a regulated officeholder to fail to file or amend a financial
             681      disclosure form within seven days after the day on which the regulated officeholder receives
             682      the notice described in Subsection (3).
             683          (b) A regulated officeholder who violates Subsection (4)(a) is guilty of a class B
             684      misdemeanor.
             685          (c) The lieutenant governor shall report all violations of Subsection (4)(a) to the
             686      attorney general.
             687          (d) In addition to the criminal penalty described in Subsection (4)(b), the lieutenant
             688      governor shall impose a civil fine of $100 against a regulated officeholder who violates
             689      Subsection (4)(a).
             690          (5) The lieutenant governor shall deposit a fine collected under this part into the
             691      General Fund as a dedicated credit to pay for the costs of administering the provisions of this
             692      part.
             693          Section 9. Section 20A-12-301.5 is enacted to read:
             694          20A-12-301.5. Disclosure of actual source or recipient required.
             695          (1) As used in this section, "transactional intermediary" means a person, including a
             696      credit card company, a financial institution, or a money transfer service, that pays or transfers
             697      money to a person on behalf of another person.
             698          (2) When, under this chapter, a person makes a detailed listing, discloses or reports the
             699      source of a contribution, discloses or reports the person or entity to whom a disbursement is
             700      made, or discloses or reports the identity of a donor, the person:
             701          (a) shall reveal the actual source of the contribution, the actual person or entity to
             702      whom the disbursement is ultimately made, or the actual identity of the donor; and
             703          (b) may not merely list, disclose, or report the transactional intermediary.
             704          Section 10. Effective date.
             705          If approved by two-thirds of all the members elected to each house, this bill takes effect
             706      upon approval by the governor, or the day following the constitutional time limit of Utah


             707      Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
             708      the date of veto override.


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