H.B. 259

             1     

CAMPAIGN CONTRIBUTION AND PUBLIC SERVICE

             2     
ASSISTANCE DISCLOSURE AMENDMENTS

             3     
2014 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Kraig Powell

             6     
Senate Sponsor: ____________

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies the Election Code by amending provisions relating to campaign
             11      contributions and public service assistance.
             12      Highlighted Provisions:
             13          This bill:
             14          .    requires the lieutenant governor to establish and maintain, on the lieutenant
             15      governor's website, a searchable database of reporting entities, principals, and
             16      lobbyists;
             17          .    requires a detailed listing in a financial statement to indicate whether the individual
             18      or source that makes a contribution or provides public service assistance is a
             19      reporting entity, principal, or lobbyist;
             20          .    imposes criminal penalties and a civil fine against a reporting entity that fails to
             21      timely file a corrected financial statement after the lieutenant governor provides
             22      notice that the reporting entity failed to comply with the requirements described in
             23      the preceding paragraph; and
             24          .    makes technical changes.
             25      Money Appropriated in this Bill:
             26          None
             27      Other Special Clauses:


             28          None
             29      Utah Code Sections Affected:
             30      AMENDS:
             31           20A-11-101 , as last amended by Laws of Utah 2013, Chapters 86, 170, 318, and 420
             32      ENACTS:
             33           20A-11-105 , Utah Code Annotated 1953
             34     
             35      Be it enacted by the Legislature of the state of Utah:
             36          Section 1. Section 20A-11-101 is amended to read:
             37           20A-11-101. Definitions.
             38          As used in this chapter:
             39          (1) "Address" means the number and street where an individual resides or where a
             40      reporting entity has its principal office.
             41          (2) "Ballot proposition" includes initiatives, referenda, proposed constitutional
             42      amendments, and any other ballot propositions submitted to the voters that are authorized by
             43      the Utah Code Annotated 1953.
             44          (3) "Candidate" means any person who:
             45          (a) files a declaration of candidacy for a public office; or
             46          (b) receives contributions, makes expenditures, or gives consent for any other person to
             47      receive contributions or make expenditures to bring about the person's nomination or election
             48      to a public office.
             49          (4) "Chief election officer" means:
             50          (a) the lieutenant governor for state office candidates, legislative office candidates,
             51      officeholders, political parties, political action committees, corporations, political issues
             52      committees, state school board candidates, judges, and labor organizations, as defined in
             53      Section 20A-11-1501 ; and
             54          (b) the county clerk for local school board candidates.
             55          (5) (a) "Contribution" means any of the following when done for political purposes:
             56          (i) a gift, subscription, donation, loan, advance, or deposit of money or anything of
             57      value given to the filing entity;
             58          (ii) an express, legally enforceable contract, promise, or agreement to make a gift,


             59      subscription, donation, unpaid or partially unpaid loan, advance, or deposit of money or
             60      anything of value to the filing entity;
             61          (iii) any transfer of funds from another reporting entity to the filing entity;
             62          (iv) compensation paid by any person or reporting entity other than the filing entity for
             63      personal services provided without charge to the filing entity;
             64          (v) remuneration from:
             65          (A) any organization or its directly affiliated organization that has a registered lobbyist;
             66      or
             67          (B) any agency or subdivision of the state, including school districts; and
             68          (vi) goods or services provided to or for the benefit of the filing entity at less than fair
             69      market value.
             70          (b) "Contribution" does not include:
             71          (i) services provided without compensation by individuals volunteering a portion or all
             72      of their time on behalf of the filing entity;
             73          (ii) money lent to the filing entity by a financial institution in the ordinary course of
             74      business; or
             75          (iii) goods or services provided for the benefit of a candidate or political party at less
             76      than fair market value that are not authorized by or coordinated with the candidate or political
             77      party.
             78          (6) "Coordinated with" means that goods or services provided for the benefit of a
             79      candidate or political party are provided:
             80          (a) with the candidate's or political party's prior knowledge, if the candidate or political
             81      party does not object;
             82          (b) by agreement with the candidate or political party;
             83          (c) in coordination with the candidate or political party; or
             84          (d) using official logos, slogans, and similar elements belonging to a candidate or
             85      political party.
             86          (7) (a) "Corporation" means a domestic or foreign, profit or nonprofit, business
             87      organization that is registered as a corporation or is authorized to do business in a state and
             88      makes any expenditure from corporate funds for:
             89          (i) the purpose of expressly advocating for political purposes; or


             90          (ii) the purpose of expressly advocating the approval or the defeat of any ballot
             91      proposition.
             92          (b) "Corporation" does not mean:
             93          (i) a business organization's political action committee or political issues committee; or
             94          (ii) a business entity organized as a partnership or a sole proprietorship.
             95          (8) "County political party" means, for each registered political party, all of the persons
             96      within a single county who, under definitions established by the political party, are members of
             97      the registered political party.
             98          (9) "County political party officer" means a person whose name is required to be
             99      submitted by a county political party to the lieutenant governor in accordance with Section
             100      20A-8-402 .
             101          (10) "Detailed listing" means:
             102          (a) for each contribution or public service assistance:
             103          (i) the name and address of the individual or source making the contribution or public
             104      service assistance;
             105          (ii) if, when the reporting entity files the financial statement, the individual or source
             106      that made the contribution or provided the public service assistance being reported is listed on
             107      the lieutenant governor's website as a reporting entity, a principal as defined in Section
             108      36-11-102 , or a lobbyist as defined in Section 36-11-102 , an indication that the individual or
             109      source is:
             110          (A) a reporting entity;
             111          (B) a principal as defined in Section 36-11-102 ; or
             112          (C) a lobbyist as defined in Section 36-11-102 ;
             113          [(ii)] (iii) the amount or value of the contribution or public service assistance; and
             114          [(iii)] (iv) the date the contribution or public service assistance was made; and
             115          (b) for each expenditure:
             116          (i) the amount of the expenditure;
             117          (ii) the person or entity to whom it was disbursed;
             118          (iii) the specific purpose, item, or service acquired by the expenditure; and
             119          (iv) the date the expenditure was made.
             120          (11) (a) "Donor" means a person that gives money, including a fee, due, or assessment


             121      for membership in the corporation, to a corporation without receiving full and adequate
             122      consideration for the money.
             123          (b) "Donor" does not include a person that signs a statement that the corporation may
             124      not use the money for an expenditure or political issues expenditure.
             125          (12) "Election" means each:
             126          (a) regular general election;
             127          (b) regular primary election; and
             128          (c) special election at which candidates are eliminated and selected.
             129          (13) "Electioneering communication" means a communication that:
             130          (a) has at least a value of $10,000;
             131          (b) clearly identifies a candidate or judge; and
             132          (c) is disseminated through the Internet, newspaper, magazine, outdoor advertising
             133      facility, direct mailing, broadcast, cable, or satellite provider within 45 days of the clearly
             134      identified candidate's or judge's election date.
             135          (14) (a) "Expenditure" means:
             136          (i) any disbursement from contributions, receipts, or from the separate bank account
             137      required by this chapter;
             138          (ii) a purchase, payment, donation, distribution, loan, advance, deposit, gift of money,
             139      or anything of value made for political purposes;
             140          (iii) an express, legally enforceable contract, promise, or agreement to make any
             141      purchase, payment, donation, distribution, loan, advance, deposit, gift of money, or anything of
             142      value for political purposes;
             143          (iv) compensation paid by a filing entity for personal services rendered by a person
             144      without charge to a reporting entity;
             145          (v) a transfer of funds between the filing entity and a candidate's personal campaign
             146      committee; or
             147          (vi) goods or services provided by the filing entity to or for the benefit of another
             148      reporting entity for political purposes at less than fair market value.
             149          (b) "Expenditure" does not include:
             150          (i) services provided without compensation by individuals volunteering a portion or all
             151      of their time on behalf of a reporting entity;


             152          (ii) money lent to a reporting entity by a financial institution in the ordinary course of
             153      business; or
             154          (iii) anything listed in Subsection (14)(a) that is given by a reporting entity to
             155      candidates for office or officeholders in states other than Utah.
             156          (15) "Federal office" means the office of President of the United States, United States
             157      Senator, or United States Representative.
             158          (16) "Filing entity" means the reporting entity that is required to file a financial
             159      statement required by this chapter or Chapter 12, Part 2, Judicial Retention Elections.
             160          (17) "Financial statement" includes any summary report, interim report, verified
             161      financial statement, or other statement disclosing contributions, expenditures, receipts,
             162      donations, or disbursements that is required by this chapter or Chapter 12, Part 2, Judicial
             163      Retention Elections.
             164          (18) "Governing board" means the individual or group of individuals that determine the
             165      candidates and committees that will receive expenditures from a political action committee,
             166      political party, or corporation.
             167          (19) "Incorporation" means the process established by Title 10, Chapter 2, Part 1,
             168      Incorporation, by which a geographical area becomes legally recognized as a city or town.
             169          (20) "Incorporation election" means the election authorized by Section 10-2-111 .
             170          (21) "Incorporation petition" means a petition authorized by Section 10-2-109 .
             171          (22) "Individual" means a natural person.
             172          (23) "Interim report" means a report identifying the contributions received and
             173      expenditures made since the last report.
             174          (24) "Legislative office" means the office of state senator, state representative, speaker
             175      of the House of Representatives, president of the Senate, and the leader, whip, and assistant
             176      whip of any party caucus in either house of the Legislature.
             177          (25) "Legislative office candidate" means a person who:
             178          (a) files a declaration of candidacy for the office of state senator or state representative;
             179          (b) declares oneself to be a candidate for, or actively campaigns for, the position of
             180      speaker of the House of Representatives, president of the Senate, or the leader, whip, and
             181      assistant whip of any party caucus in either house of the Legislature; or
             182          (c) receives contributions, makes expenditures, or gives consent for any other person to


             183      receive contributions or make expenditures to bring about the person's nomination, election, or
             184      appointment to a legislative office.
             185          (26) "Major political party" means either of the two registered political parties that
             186      have the greatest number of members elected to the two houses of the Legislature.
             187          (27) "Officeholder" means a person who holds a public office.
             188          (28) "Party committee" means any committee organized by or authorized by the
             189      governing board of a registered political party.
             190          (29) "Person" means both natural and legal persons, including individuals, business
             191      organizations, personal campaign committees, party committees, political action committees,
             192      political issues committees, and labor organizations, as defined in Section 20A-11-1501 .
             193          (30) "Personal campaign committee" means the committee appointed by a candidate to
             194      act for the candidate as provided in this chapter.
             195          (31) "Personal use expenditure" has the same meaning as provided under Section
             196      20A-11-104 .
             197          (32) (a) "Political action committee" means an entity, or any group of individuals or
             198      entities within or outside this state, a major purpose of which is to:
             199          (i) solicit or receive contributions from any other person, group, or entity for political
             200      purposes; or
             201          (ii) make expenditures to expressly advocate for any person to refrain from voting or to
             202      vote for or against any candidate or person seeking election to a municipal or county office.
             203          (b) "Political action committee" includes groups affiliated with a registered political
             204      party but not authorized or organized by the governing board of the registered political party
             205      that receive contributions or makes expenditures for political purposes.
             206          (c) "Political action committee" does not mean:
             207          (i) a party committee;
             208          (ii) any entity that provides goods or services to a candidate or committee in the regular
             209      course of its business at the same price that would be provided to the general public;
             210          (iii) an individual;
             211          (iv) individuals who are related and who make contributions from a joint checking
             212      account;
             213          (v) a corporation, except a corporation a major purpose of which is to act as a political


             214      action committee; or
             215          (vi) a personal campaign committee.
             216          (33) "Political convention" means a county or state political convention held by a
             217      registered political party to select candidates.
             218          (34) (a) "Political issues committee" means an entity, or any group of individuals or
             219      entities within or outside this state, a major purpose of which is to:
             220          (i) solicit or receive donations from any other person, group, or entity to assist in
             221      placing a ballot proposition on the ballot, assist in keeping a ballot proposition off the ballot, or
             222      to advocate that a voter refrain from voting or vote for or vote against any ballot proposition;
             223          (ii) make expenditures to expressly advocate for any person to sign or refuse to sign a
             224      ballot proposition or incorporation petition or refrain from voting, vote for, or vote against any
             225      proposed ballot proposition or an incorporation in an incorporation election; or
             226          (iii) make expenditures to assist in qualifying or placing a ballot proposition on the
             227      ballot or to assist in keeping a ballot proposition off the ballot.
             228          (b) "Political issues committee" does not mean:
             229          (i) a registered political party or a party committee;
             230          (ii) any entity that provides goods or services to an individual or committee in the
             231      regular course of its business at the same price that would be provided to the general public;
             232          (iii) an individual;
             233          (iv) individuals who are related and who make contributions from a joint checking
             234      account; or
             235          (v) a corporation, except a corporation a major purpose of which is to act as a political
             236      issues committee.
             237          (35) (a) "Political issues contribution" means any of the following:
             238          (i) a gift, subscription, unpaid or partially unpaid loan, advance, or deposit of money or
             239      anything of value given to a political issues committee;
             240          (ii) an express, legally enforceable contract, promise, or agreement to make a political
             241      issues donation to influence the approval or defeat of any ballot proposition;
             242          (iii) any transfer of funds received by a political issues committee from a reporting
             243      entity;
             244          (iv) compensation paid by another reporting entity for personal services rendered


             245      without charge to a political issues committee; and
             246          (v) goods or services provided to or for the benefit of a political issues committee at
             247      less than fair market value.
             248          (b) "Political issues contribution" does not include:
             249          (i) services provided without compensation by individuals volunteering a portion or all
             250      of their time on behalf of a political issues committee; or
             251          (ii) money lent to a political issues committee by a financial institution in the ordinary
             252      course of business.
             253          (36) (a) "Political issues expenditure" means any of the following:
             254          (i) any payment from political issues contributions made for the purpose of influencing
             255      the approval or the defeat of:
             256          (A) a ballot proposition; or
             257          (B) an incorporation petition or incorporation election;
             258          (ii) a purchase, payment, distribution, loan, advance, deposit, or gift of money made for
             259      the express purpose of influencing the approval or the defeat of:
             260          (A) a ballot proposition; or
             261          (B) an incorporation petition or incorporation election;
             262          (iii) an express, legally enforceable contract, promise, or agreement to make any
             263      political issues expenditure;
             264          (iv) compensation paid by a reporting entity for personal services rendered by a person
             265      without charge to a political issues committee; or
             266          (v) goods or services provided to or for the benefit of another reporting entity at less
             267      than fair market value.
             268          (b) "Political issues expenditure" does not include:
             269          (i) services provided without compensation by individuals volunteering a portion or all
             270      of their time on behalf of a political issues committee; or
             271          (ii) money lent to a political issues committee by a financial institution in the ordinary
             272      course of business.
             273          (37) "Political purposes" means an act done with the intent or in a way to influence or
             274      tend to influence, directly or indirectly, any person to refrain from voting or to vote for or
             275      against any candidate or a person seeking a municipal or county office at any caucus, political


             276      convention, or election.
             277          (38) (a) "Poll" means the survey of a person regarding the person's opinion or
             278      knowledge of an individual who has filed a declaration of candidacy for public office, or of a
             279      ballot proposition that has legally qualified for placement on the ballot, which is conducted in
             280      person or by telephone, facsimile, Internet, postal mail, or email.
             281          (b) "Poll" does not include:
             282          (i) a ballot; or
             283          (ii) an interview of a focus group that is conducted, in person, by one individual, if:
             284          (A) the focus group consists of more than three, and less than thirteen, individuals; and
             285          (B) all individuals in the focus group are present during the interview.
             286          (39) "Primary election" means any regular primary election held under the election
             287      laws.
             288          (40) "Public office" means the office of governor, lieutenant governor, state auditor,
             289      state treasurer, attorney general, state or local school board member, state senator, state
             290      representative, speaker of the House of Representatives, president of the Senate, and the leader,
             291      whip, and assistant whip of any party caucus in either house of the Legislature.
             292          (41) (a) "Public service assistance" means the following when given or provided to an
             293      officeholder to defray the costs of functioning in a public office or aid the officeholder to
             294      communicate with the officeholder's constituents:
             295          (i) a gift, subscription, donation, unpaid or partially unpaid loan, advance, or deposit of
             296      money or anything of value to an officeholder; or
             297          (ii) goods or services provided at less than fair market value to or for the benefit of the
             298      officeholder.
             299          (b) "Public service assistance" does not include:
             300          (i) anything provided by the state;
             301          (ii) services provided without compensation by individuals volunteering a portion or all
             302      of their time on behalf of an officeholder;
             303          (iii) money lent to an officeholder by a financial institution in the ordinary course of
             304      business;
             305          (iv) news coverage or any publication by the news media; or
             306          (v) any article, story, or other coverage as part of any regular publication of any


             307      organization unless substantially all the publication is devoted to information about the
             308      officeholder.
             309          (42) "Publicly identified class of individuals" means a group of 50 or more individuals
             310      sharing a common occupation, interest, or association that contribute to a political action
             311      committee or political issues committee and whose names can be obtained by contacting the
             312      political action committee or political issues committee upon whose financial statement the
             313      individuals are listed.
             314          (43) "Receipts" means contributions and public service assistance.
             315          (44) "Registered lobbyist" means a person registered under Title 36, Chapter 11,
             316      Lobbyist Disclosure and Regulation Act.
             317          (45) "Registered political action committee" means any political action committee that
             318      is required by this chapter to file a statement of organization with the Office of the Lieutenant
             319      Governor.
             320          (46) "Registered political issues committee" means any political issues committee that
             321      is required by this chapter to file a statement of organization with the Office of the Lieutenant
             322      Governor.
             323          (47) "Registered political party" means an organization of voters that:
             324          (a) participated in the last regular general election and polled a total vote equal to 2%
             325      or more of the total votes cast for all candidates for the United States House of Representatives
             326      for any of its candidates for any office; or
             327          (b) has complied with the petition and organizing procedures of Chapter 8, Political
             328      Party Formation and Procedures.
             329          (48) (a) "Remuneration" means a payment:
             330          (i) made to a legislator for the period the Legislature is in session; and
             331          (ii) that is approximately equivalent to an amount a legislator would have earned
             332      during the period the Legislature is in session in the legislator's ordinary course of business.
             333          (b) "Remuneration" does not mean anything of economic value given to a legislator by:
             334          (i) the legislator's primary employer in the ordinary course of business; or
             335          (ii) a person or entity in the ordinary course of business:
             336          (A) because of the legislator's ownership interest in the entity; or
             337          (B) for services rendered by the legislator on behalf of the person or entity.


             338          (49) "Reporting entity" means a candidate, a candidate's personal campaign committee,
             339      a judge, a judge's personal campaign committee, an officeholder, a party committee, a political
             340      action committee, a political issues committee, a corporation, or a labor organization, as
             341      defined in Section 20A-11-1501 .
             342          (50) "School board office" means the office of state school board or local school board.
             343          (51) (a) "Source" means the person or entity that is the legal owner of the tangible or
             344      intangible asset that comprises the contribution.
             345          (b) "Source" means, for political action committees and corporations, the political
             346      action committee and the corporation as entities, not the contributors to the political action
             347      committee or the owners or shareholders of the corporation.
             348          (52) "State office" means the offices of governor, lieutenant governor, attorney general,
             349      state auditor, and state treasurer.
             350          (53) "State office candidate" means a person who:
             351          (a) files a declaration of candidacy for a state office; or
             352          (b) receives contributions, makes expenditures, or gives consent for any other person to
             353      receive contributions or make expenditures to bring about the person's nomination, election, or
             354      appointment to a state office.
             355          (54) "Summary report" means the year end report containing the summary of a
             356      reporting entity's contributions and expenditures.
             357          (55) "Supervisory board" means the individual or group of individuals that allocate
             358      expenditures from a political issues committee.
             359          Section 2. Section 20A-11-105 is enacted to read:
             360          20A-11-105. Database of reporting entities, principals, and lobbyists.
             361          (1) As used in this section:
             362          (a) "Lobbyist" is as defined in Section 36-11-102 .
             363          (b) "Principal" is as defined in Section 36-11-102 .
             364          (2) Beginning on July 1, 2014, the lieutenant governor shall establish and maintain a
             365      database of each reporting entity, principal, or lobbyist.
             366          (3) The lieutenant governor shall:
             367          (a) ensure that the database described in Subsection (2):
             368          (i) identifies whether each person in the database is a reporting entity, a principal, or a


             369      lobbyist; and
             370          (ii) is accessible and searchable by name from:
             371          (A) a conspicuous link on the home page of the lieutenant governor's website; and
             372          (B) the location on the lieutenant governor's website where a reporting entity completes
             373      a financial statement; and
             374          (b) keep a record of the day on which the lieutenant governor adds:
             375          (i) a reporting entity, principal, or lobbyist to the database; or
             376          (ii) a designation that a person in the database is a reporting entity, principal, or
             377      lobbyist.
             378          (4) (a) If it appears that a reporting entity has failed to include in a detailed listing an
             379      indication required under Subsection 20A-11-101 (10)(a)(ii), the lieutenant governor shall,
             380      within five days after the day on which the lieutenant governor discovers the failure, notify the
             381      reporting entity of the failure and direct the reporting entity to file a financial statement
             382      correcting the failure.
             383          (b) It is unlawful for a reporting entity to fail to file a corrected financial statement
             384      described in Subsection (4)(a) within seven days after the day on which the reporting entity
             385      receives the notice described in Subsection (4)(a).
             386          (c) A reporting entity that violates Subsection (4)(b) is guilty of a class B
             387      misdemeanor.
             388          (d) The lieutenant governor shall report all violations of Subsection (4)(b) to the
             389      attorney general.
             390          (e) In addition to the criminal penalty described in Subsection (4)(c), the lieutenant
             391      governor shall impose a civil fine of $100 against a reporting entity that violates Subsection
             392      (4)(b).




Legislative Review Note
    as of 12-23-13 2:10 PM


Office of Legislative Research and General Counsel


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