This document includes House Floor Amendments incorporated into the bill on Mon, Jan 26, 2015 at 4:34 PM by jeyring.
This document includes Senate Committee Amendments incorporated into the bill on Tue, Feb 17, 2015 at 9:13 AM by lpoole.
1     
LOCAL GOVERNMENT DISCLOSURE AND CAMPAIGN

2     
FINANCE AMENDMENTS

3     
2015 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Jack R. Draxler

6     
Senate Sponsor: Margaret Dayton

7     

8     LONG TITLE
9     Committee Note:
10          The Government Operations Interim Committee recommended this bill.
11     General Description:
12          This bill amends provisions related to municipal candidate campaign finance
13     disclosures and personal use expenditures.
14     Highlighted Provisions:
15          This bill:
16          ▸     defines terms;
17          ▸     authorizes a municipality to adopt more stringent campaign finance disclosure
18     requirements and definitions;     
19          ▸     clarifies campaign finance filing deadlines;
20          ▸     authorizes a municipality to adopt more stringent personal use expenditure
21     requirements and definitions;
22          ▸     prohibits a municipal candidate from making a personal use expenditure;
23          ▸     provides that a municipality may adopt an ordinance to identify personal use
24     expenditure violations and enforce prohibitions; and
25          ▸     makes technical and conforming amendments.
26     Money Appropriated in this Bill:
27          None
28     Other Special Clauses:
29          None
30     Utah Code Sections Affected:
31     AMENDS:
32          10-3-208, as last amended by Laws of Utah 2012, Chapters 190, 190, 230, and 230
33     ENACTS:
34          10-3-209, Utah Code Annotated 1953
35     

36     Be it enacted by the Legislature of the state of Utah:
37          Section 1. Section 10-3-208 is amended to read:
38          10-3-208. Campaign finance disclosure in municipal election.
39          (1) [As used in] Unless a municipality adopts by ordinance more stringent definitions,
40     the following are defined terms for purposes of this section:
41          [(a) "Reporting date" means:]
42          [(i) 10 days before a municipal general election, for a campaign finance statement
43     required to be filed no later than seven days before a municipal general election; and]
44          [(ii) the day of filing, for a campaign finance statement required to be filed no later
45     than 30 days after a municipal primary or general election.]
46          (a) "Agent of a candidate" means:
47          (i) a person acting on behalf of a candidate at the direction of the reporting entity;
48          (ii) a person employed by a candidate in the candidate's capacity as a candidate;
49          (iii) the personal campaign committee of a candidate;
50          (iv) a member of the personal campaign committee of a candidate in the member's
51     capacity as a member of the personal campaign committee of the candidate; or
52          (v) a political consultant of a candidate.
53          (b) Ĥ→ (i) ←Ĥ "Candidate" means a person who:
54          Ĥ→ [(i)] (A) ←Ĥ files a declaration of candidacy for municipal office; or
55          Ĥ→ [(ii)] (B) ←Ĥ receives contributions, makes expenditures, or gives consent for
55a     any other person to
56     receive contributions or make expenditures to bring about the person's nomination or election
57     to a municipal office.
57a     Ĥ→ (ii) "Candidate" does not mean a person who files for the office of judge. ←Ĥ
58          (c) (i) "Contribution" means any of the following when done for political purposes:
59          (A) a gift, subscription, donation, loan, advance, or deposit of money or anything of
60     value given to a candidate;
61          (B) an express, legally enforceable contract, promise, or agreement to make a gift,
62     subscription, donation, unpaid or partially unpaid loan, advance, or deposit of money or
63     anything of value to the candidate;
64          (C) any transfer of funds from another reporting entity to the candidate;
65          (D) compensation paid by any person or reporting entity other than the candidate for
66     personal services provided without charge to the candidate;
67          (E) a loan made by a candidate deposited to the candidate's own campaign; and
68          (F) an in-kind contribution.
69          (ii) "Contribution" does not include:
70          (A) services provided by an individual volunteering a portion or all of the individual's
71     time on behalf of the candidate if the services are provided without compensation by the
72     candidate or any other person;
73          (B) money lent to the candidate by a financial institution in the ordinary course of
74     business; or
75          (C) goods or services provided for the benefit of a candidate at less than fair market
76     value that are not authorized by or coordinated with the candidate.
77          (d) "Coordinated with" means that goods or services provided for the benefit of a
78     candidate are provided:
79          (i) with the candidate's prior knowledge, if the candidate does not object;
80          (ii) by agreement with the candidate;
81          (iii) in coordination with the candidate; or
82          (iv) using official logos, slogans, and similar elements belonging to a candidate.
83          (e) (i) "Expenditure" means any of the following made by a candidate or an agent of
84     the candidate on behalf of the candidate:
85          (A) any disbursement from contributions, receipts, or from an account described in
86     Subsection (3)(a)(i);
87          (B) a purchase, payment, donation, distribution, loan, advance, deposit, gift of money,
88     or anything of value made for political purposes;
89          (C) an express, legally enforceable contract, promise, or agreement to make any
90     purchase, payment, donation, distribution, loan, advance, deposit, gift of money, or anything of
91     value for a political purpose;
92          (D) compensation paid by a candidate for personal services rendered by a person
93     without charge to a reporting entity;
94          (E) a transfer of funds between the candidate and a candidate's personal campaign
95     committee as defined in Section 20A-11-101; or
96          (F) goods or services provided by a reporting entity to or for the benefit of the
97     candidate for political purposes at less than fair market value.
98          (ii) "Expenditure" does not include:
99          (A) services provided without compensation by an individual volunteering a portion or
100     all of the individual's time on behalf of a candidate; or
101          (B) money lent to a candidate by a financial institution in the ordinary course of
102     business.
103          (f) "In-kind contribution" means anything of value other than money, that is accepted
104     by or coordinated with a candidate.
105          (g) (i) "Political consultant" means a person who is paid by a candidate, or paid by
106     another person on behalf of and with the knowledge of the candidate, to provide political
107     advice to the candidate.
108          (ii) "Political consultant" includes a circumstance described in Subsection (1)(g)(i),
109     where the person:
110          (A) has already been paid, with money or other consideration;
111          (B) expects to be paid in the future, with money or other consideration; or
112          (C) understands that the person may, in the discretion of the candidate or another
113     person on behalf of and with the knowledge of the candidate, be paid in the future, with money
114     or other consideration.
115          (h) "Political purposes" means an act done with the intent or in a way to influence or
116     tend to influence, directly or indirectly, any person to refrain from voting or to vote for or
117     against any candidate or a person seeking a municipal office at any caucus, political
118     convention, or election.
119          (i) "Reporting entity" means:
120          (i) a candidate;
121          (ii) a committee appointed by a candidate to act for the candidate;
122          Ĥ→ [(iii) a judge;
123          (iv) a judge's personal campaign committee as defined in Section 20A-11-101;
124          (v)] (iii) ←Ĥ a person who holds an elected municipal office;
125          Ĥ→ [(vi)] (iv) ←Ĥ a party committee as defined in Section 20A-11-101;
126          Ĥ→ [(vii)] (v) ←Ĥ a political action committee as defined in Section 20A-11-101;
127          Ĥ→ [(viii)] (vi) ←Ĥ a political issues committee as defined in Section 20A-11-101;
128          Ĥ→ [(ix)] (vii) ←Ĥ a corporation as defined in Section 20A-11-101; or
129          Ĥ→ [(x)] (viii) ←Ĥ a labor organization as defined in Section 20A-11-1501.
130          [(b)] (j) "Reporting limit" means for each calendar year:
131          (i) $50; or
132          (ii) an amount lower than $50 that is specified in an ordinance of the municipality.
133          (2) (a) A municipality may adopt an ordinance establishing campaign finance
134     disclosure requirements for a candidate that are more stringent than the requirements provided
135     in Subsections (3) and (4).
136          (b) The municipality may adopt definitions that are more stringent than those provided
137     in Subsection (1).
138          (c) If a municipality fails to adopt a campaign finance disclosure ordinance described
139     in Subsection (2)(a), a candidate shall comply with financial reporting requirements contained
140     in Subsections (3) and (4).
141          [(2)] (3) (a) [(i)] Each candidate [for municipal office]:
142          [(A)] (i) shall deposit a [campaign] contribution in a separate campaign account in a
143     financial institution; and
144          [(B)] (ii) may not deposit or mingle any campaign contributions received into a
145     personal or business account.
146          [(ii)] (b) Each candidate [for municipal office] who is not eliminated at a municipal
147     primary election shall file with the municipal clerk or recorder a campaign finance statement:
148          [(A)] (i) no later than seven days before the [date of] day on which the municipal
149     general election is held; and
150          [(B)] (ii) no later than 30 days after the [date of] day on which the municipal general
151     election is held.
152          [(iii)] (c) Each candidate for municipal office who is eliminated at a municipal primary
153     election shall file with the municipal clerk or recorder a campaign finance statement [no later
154     than] 30 days after the [date of] day on which the municipal primary election is held.
155          [(b)] (4) Each campaign finance statement under Subsection [(2)(a)] (3)(b) or (c) shall:
156          [(i)] (a) except as provided in Subsection [(2)(b)(ii)] (4)(b):
157          [(A)] (i) report all of the candidate's itemized and total:
158          [(I) campaign] (A) contributions, including in-kind and other nonmonetary
159     contributions, received [before the close of the reporting date] up to and including five days
160     before the campaign finance statement is due, excluding a contribution previously reported;
161     and
162          [(II) campaign] (B) expenditures made [through the close of the reporting date] up to
163     and including five days before the campaign finance statement is due, excluding an expenditure
164     previously reported; and
165          [(B)] (ii) identify:
166          [(I)] (A) for each contribution that exceeds the reporting limit, the amount of the
167     contribution and the name of the Ŝ→ [[] donor [] contributor] ←Ŝ ;
168          [(II)] (B) the aggregate total of all contributions that individually do not exceed the
169     reporting limit; and
170          [(III)] (C) for each [campaign] expenditure, the amount of the expenditure and the
171     name of the recipient of the expenditure; or
172          [(ii)] (b) report the total amount of all [campaign] contributions and expenditures if the
173     candidate receives $500 or less in [campaign] contributions and spends $500 or less on the
174     candidate's campaign.
175          [(3) (a) As used in this Subsection (3), "account" means an account in a financial
176     institution:]
177          [(i) that is not described in Subsection (2)(a)(i)(A); and]
178          [(ii) into which or from which a person who, as a candidate for an office, other than a
179     municipal office for which the person files a declaration of candidacy or federal office, or as a
180     holder of an office, other than a municipal office for which the person files a declaration of
181     candidacy or federal office, deposits a contribution or makes an expenditure.]
182          [(b) A municipal office candidate shall include on any campaign finance statement
183     filed in accordance with this section:]
184          [(i) a contribution deposited in an account:]
185          [(A) since the last campaign finance statement was filed; or]
186          [(B) that has not been reported under a statute or ordinance that governs the account;
187     or]
188          [(ii) an expenditure made from an account:]
189          [(A) since the last campaign finance statement was filed; or]
190          [(B) that has not been reported under a statute or ordinance that governs the account.]
191          [(4)] (5) (a) A municipality may, by ordinance:
192          (i) provide a reporting limit lower than $50;
193          (ii) require greater disclosure of [campaign] contributions [and] or expenditures than is
194     required in this section; and
195          (iii) impose additional penalties on candidates who fail to comply with the applicable
196     requirements beyond those imposed by this section.
197          (b) A candidate [for municipal office] is subject to the provisions of this section and
198     not the provisions of an ordinance adopted by the municipality under Subsection [(4)] (5)(a) if:
199          (i) the municipal ordinance establishes requirements or penalties that differ from those
200     established in this section; and
201          (ii) the municipal clerk or recorder fails to notify the candidate of the provisions of the
202     ordinance as required in Subsection [(5)] (6).
203          [(5)] (6) Each municipal clerk or recorder shall, at the time the candidate for municipal
204     office files a declaration of candidacy, and again 14 days before each municipal general
205     election, notify the candidate in writing of:
206          (a) the provisions of statute or municipal ordinance governing the disclosure of
207     [campaign] contributions and expenditures;
208          (b) the dates when the candidate's campaign finance statement is required to be filed;
209     and
210          (c) the penalties that apply for failure to file a timely campaign finance statement,
211     including the statutory provision that requires removal of the candidate's name from the ballot
212     for failure to file the required campaign finance statement when required.
213          [(6)] (7) Notwithstanding any provision of Title 63G, Chapter 2, Government Records
214     Access and Management Act, the municipal clerk or recorder shall:
215          (a) make each campaign finance statement filed by a candidate available for public
216     inspection and copying no later than one business day after the statement is filed; and
217          (b) make the campaign finance statement filed by a candidate available for public
218     inspection by:
219          (i) (A) posting an electronic copy or the contents of the statement on the municipality's
220     website no later than seven business days after the statement is filed; and
221          (B) verifying that the address of the municipality's website has been provided to the
222     lieutenant governor in order to meet the requirements of Subsection 20A-11-103(5); or
223          (ii) submitting a copy of the statement to the lieutenant governor for posting on the
224     website established by the lieutenant governor under Section 20A-11-103 no later than two
225     business days after the statement is filed.
226          [(7)] (8) (a) If a candidate fails to file a campaign finance statement before the
227     municipal general election by the deadline specified in Subsection [(2)(a)(ii)(A)] (3)(b)(i), the
228     municipal clerk or recorder shall inform the appropriate election official who:
229          (i) shall:
230          (A) if practicable, remove the candidate's name from the ballot by blacking out the
231     candidate's name before the ballots are delivered to voters; or
232          (B) if removing the candidate's name from the ballot is not practicable, inform the
233     voters by any practicable method that the candidate has been disqualified and that votes cast for
234     the candidate will not be counted; and
235          (ii) may not count any votes for that candidate.
236          (b) Notwithstanding Subsection [(7)] (8)(a), a candidate who files a campaign finance
237     statement seven days before a municipal general election is not disqualified if:
238          (i) the statement details accurately and completely the information required under
239     Subsection [(2)(b)] (4), except for inadvertent omissions or insignificant errors or inaccuracies;
240     and
241          (ii) the omissions, errors, or inaccuracies are corrected in an amended report or in the
242     next scheduled report.
243          [(8)] (9) A campaign finance statement required under this section is considered filed if
244     it is received in the municipal clerk or recorder's office by 5 p.m. on the date that [is it] it is
245     due.
246          [(9)] (10) (a) A private party in interest may bring a civil action in district court to
247     enforce the provisions of this section or an ordinance adopted under this section.
248          (b) In a civil action under Subsection [(9)] (10)(a), the court may award costs and
249     attorney fees to the prevailing party.
250          Section 2. Section 10-3-209 is enacted to read:
251          10-3-209. Personal use expenditure -- Authorized and prohibited uses of
252     campaign funds -- Enforcement -- Penalties.
253          (1) Unless a municipality adopts by ordinance more stringent definitions, the following
254     are defined terms for the purposes of this section:
255          (a) "Candidate" means a person who:
256          (i) files a declaration of candidacy for municipal office; or
257          (ii) receives contributions, makes expenditures, or gives consent for any other person to
258     receive contributions or make expenditures to bring about the person's nomination or election
259     to a public office.
260          (b) "Officeholder" means a person who is elected to and currently holds a municipal
261     office.
262          (c) (i) "Personal use expenditure" means an expenditure that:
263          (A) is not excluded from the definition of personal use expenditure by Subsection (2)
264     and primarily furthers a personal interest of a candidate or officeholder or a candidate's or
265     officeholder's family, which interest is not connected with the performance of an activity as a
266     candidate or an activity or duty of an officeholder; or
267          (B) would cause the candidate or officeholder to recognize the expenditure as taxable
268     income under federal law.
269          (ii) "Personal use expenditure" includes:
270          (A) a mortgage, rent, utility, or vehicle payment;
271          (B) a household food item or supply;
272          (C) clothing, except for clothing bearing the candidate's name or campaign slogan or
273     logo and that is used in the candidate's campaign;
274          (D) an admission to a sporting, artistic, or recreational event or other form of
275     entertainment;
276          (E) dues, fees, or gratuities at a country club, health club, or recreational facility;
277          (F) a salary payment made to a candidate, officeholder, or a person who has not
278     provided a bona fide service to a candidate or officeholder;
279          (G) a vacation;
280          (H) a vehicle expense;
281          (I) a meal expense;
282          (J) a travel expense;
283          (K) a payment of an administrative, civil, or criminal penalty;
284          (L) a satisfaction of a personal debt;
285          (M) a personal service, including the service of an attorney, accountant, physician, or
286     other professional person;
287          (N) a membership fee for a professional or service organization; and
288          (O) a payment in excess of the fair market value of the item or service purchased.
289          (2) As used in this section, "personal use expenditure" does not mean an expenditure
290     made:
291          (a) for a political purpose;
292          (b) for candidacy for public office;
293          (c) to fulfill a duty or activity of an officeholder;
294          (d) for a donation to a registered political party;
295          (e) for a contribution to another candidate's campaign account, including sponsorship
296     of or attendance at an event, the primary purpose of which is to solicit a contribution for
297     another candidate's campaign account;
298          (f) to return all or a portion of a contribution to a Ŝ→ [contributor] donor ←Ŝ ;
299          (g) for the following items, if made in connection with the candidacy for public office
300     or an activity or duty of an officeholder:
301          (i) (A) a mileage allowance at the rate established by the Division of Finance under
302     Section 63A-3-107; or
303          (B) for motor fuel or special fuel, as defined in Section 59-13-102;
304          (ii) a meal expense;
305          (iii) a travel expense, including an expense incurred for airfare or a rental vehicle;
306          (iv) a payment for a service provided by an attorney or accountant;
307          (v) a tuition payment or registration fee for participation in a meeting or conference;
308          (vi) a gift;
309          (vii) a payment for the following items in connection with an office space:
310          (A) rent;
311          (B) utilities;
312          (C) a supply; or
313          (D) furnishing;
314          (viii) a booth at a meeting or event; or
315          (ix) educational material;
316          (h) to purchase or mail informational material, a survey, or a greeting card;
317          (i) for a donation to a charitable organization, as defined by Section 13-22-2, including
318     admission to or sponsorship of an event, the primary purpose of which is charitable solicitation,
319     as defined in Section 13-22-2;
320          (j) to repay a loan a candidate makes from the candidate's personal account to the
321     candidate's campaign account;
322          (k) to pay membership dues to a national organization whose primary purpose is to
323     address general public policy;
324          (l) for admission to or sponsorship of an event, the primary purpose of which is to
325     promote the social, educational, or economic well-being of the state or the candidate's or
326     officeholder's community; or
327          (m) for one or more guests of an officeholder or candidate to attend an event, meeting,
328     or conference described in this Subsection (2).
329          (3) (a) A municipality may adopt an ordinance prohibiting a personal use expenditure
330     by a candidate with requirements that are more stringent than the requirements provided in
331     Subsection (4).
332          (b) The municipality may adopt definitions that are more stringent than those provided
333     in Subsection (1) or (2).
334          (c) If a municipality fails to adopt a personal use expenditure ordinance described in
335     Subsection (3)(a), a candidate shall comply with the requirements contained in Subsection (4).
336          (4) A candidate or an officeholder may not use money deposited into a campaign
337     account for:
338          (a) a personal use expenditure; or
339          (b) an expenditure prohibited by law.
340          (5) A municipality may enforce this section by adopting an ordinance:
341          (a) to provide for the evaluation of a campaign finance statement to identify a personal
342     use expenditure; and
343          (b) to commence informal adjudicative proceedings if, after an evaluation described in
344     Subsection (5)(a), there is probable cause to believe that a candidate or officeholder has made a
345     personal use expenditure.
346          (6) If, in accordance with the proceedings described in Subsection (5)(b) established in
347     municipal ordinance, a municipality determines that a candidate or officeholder has made a
348     personal use expenditure, the municipality:
349          (a) may require the candidate or officeholder to:
350          (i) remit an administrative penalty of an amount equal to 50% of the personal use
351     expenditure to the municipality; and
352          (ii) deposit the amount of the personal use expenditure into the campaign account from
353     which the personal use expenditure was disbursed; and
354          (b) shall deposit the money received under Subsection (6)(a)(i) into the municipal
355     general fund.




Legislative Review Note
     as of 11-20-14 11:41 AM

Office of Legislative Research and General Counsel