1     
CAMPAIGN FINANCE REPORTING REVISIONS

2     
2015 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Craig Hall

5     
Senate Sponsor: Aaron Osmond

6     

7     LONG TITLE
8     General Description:
9          This bill removes the minimum $50 fine imposed against certain reporting entities that
10     fail to report a contribution.
11     Highlighted Provisions:
12          This bill:
13          ▸     removes the minimum $50 fine imposed against certain reporting entities that fail to
14     report a contribution; and
15          ▸     makes conforming changes.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          None
20     Utah Code Sections Affected:
21     AMENDS:
22          20A-11-201, as last amended by Laws of Utah 2014, Chapter 335
23          20A-11-301, as last amended by Laws of Utah 2014, Chapter 335
24          20A-11-1301, as last amended by Laws of Utah 2014, Chapters 335 and 337
25          20A-12-303, as last amended by Laws of Utah 2014, Chapter 335
26     

27     Be it enacted by the Legislature of the state of Utah:
28          Section 1. Section 20A-11-201 is amended to read:
29          20A-11-201. State office candidate -- Separate bank account for campaign funds

30     -- No personal use -- Contribution reporting deadline -- Report other accounts.
31          (1) (a) Each state office candidate or the candidate's personal campaign committee
32     shall deposit each contribution and public service assistance received in one or more separate
33     campaign accounts in a financial institution.
34          (b) A state office candidate or a candidate's personal campaign committee may not use
35     money deposited in a campaign account for:
36          (i) a personal use expenditure; or
37          (ii) an expenditure prohibited by law.
38          (2) A state office candidate or the candidate's personal campaign committee may not
39     deposit or mingle any contributions received into a personal or business account.
40          (3) If a person who is no longer a state office candidate chooses not to expend the
41     money remaining in a campaign account, the person shall continue to file the year-end
42     summary report required by Section 20A-11-203 until the statement of dissolution and final
43     summary report required by Section 20A-11-205 are filed with the lieutenant governor.
44          (4) (a) Except as provided in Subsection (4)(b) and Section 20A-11-402, a person who
45     is no longer a state office candidate may not expend or transfer the money in a campaign
46     account in a manner that would cause the former state office candidate to recognize the money
47     as taxable income under federal tax law.
48          (b) A person who is no longer a state office candidate may transfer the money in a
49     campaign account in a manner that would cause the former state office candidate to recognize
50     the money as taxable income under federal tax law if the transfer is made to a campaign
51     account for federal office.
52          (5) (a) As used in this Subsection (5) and Section 20A-11-204, "received" means:
53          (i) for a cash contribution, that the cash is given to a state office candidate or a member
54     of the candidate's personal campaign committee;
55          (ii) for a contribution that is a negotiable instrument or check, that the negotiable
56     instrument or check is negotiated; and
57          (iii) for any other type of contribution, that any portion of the contribution's benefit

58     inures to the state office candidate.
59          (b) Each state office candidate shall report to the lieutenant governor each contribution
60     and public service assistance received by the state office candidate:
61          (i) except as provided in Subsection (5)(b)(ii), within 30 days after the day on which
62     the contribution or public service assistance is received; or
63          (ii) within three business days after the day on which the contribution or public service
64     assistance is received, if:
65          (A) the state office candidate is contested in a convention and the contribution or
66     public service assistance is received within 30 days before the day on which the convention is
67     held;
68          (B) the state office candidate is contested in a primary election and the contribution or
69     public service assistance is received within 30 days before the day on which the primary
70     election is held; or
71          (C) the state office candidate is contested in a general election and the contribution or
72     public service assistance is received within 30 days before the day on which the general
73     election is held.
74          (c) [Except as provided in Subsection (5)(d), for] For each contribution or provision of
75     public service assistance that a state office candidate fails to report within the time period
76     described in Subsection (5)(b), the lieutenant governor shall impose a fine against the state
77     office candidate in an amount equal to:
78          (i) [the greater of $50 or] 15% of the amount of the contribution; or
79          (ii) [the greater of $50 or] 15% of the value of the public service assistance.
80          [(d) A fine described in Subsection (5)(c) may not exceed the amount of the
81     contribution or the value of the public service assistance to which the fine relates.]
82          [(e)] (d) The lieutenant governor shall:
83          (i) deposit money received under Subsection (5)(c) into the General Fund; and
84          (ii) report on the lieutenant governor's website, in the location where reports relating to
85     each state office candidate are available for public access:

86          (A) each fine imposed by the lieutenant governor against the state office candidate;
87          (B) the amount of the fine;
88          (C) the amount of the contribution to which the fine relates; and
89          (D) the date of the contribution.
90          (6) (a) As used in this Subsection (6), "account" means an account in a financial
91     institution:
92          (i) that is not described in Subsection (1)(a); and
93          (ii) into which or from which a person who, as a candidate for an office, other than the
94     state office for which the person files a declaration of candidacy or federal office, or as a holder
95     of an office, other than a state office for which the person files a declaration of candidacy or
96     federal office, deposits a contribution or makes an expenditure.
97          (b) A state office candidate shall include on any financial statement filed in accordance
98     with this part:
99          (i) a contribution deposited in an account:
100          (A) since the last campaign finance statement was filed; or
101          (B) that has not been reported under a statute or ordinance that governs the account; or
102          (ii) an expenditure made from an account:
103          (A) since the last campaign finance statement was filed; or
104          (B) that has not been reported under a statute or ordinance that governs the account.
105          Section 2. Section 20A-11-301 is amended to read:
106          20A-11-301. Legislative office candidate -- Campaign finance requirements --
107     Candidate as a political action committee officer -- No personal use -- Contribution
108     reporting deadline -- Report other accounts.
109          (1) (a) (i) Each legislative office candidate shall deposit each contribution and public
110     service assistance received in one or more separate accounts in a financial institution that are
111     dedicated only to that purpose.
112          (ii) A legislative office candidate may:
113          (A) receive a contribution or public service assistance from a political action

114     committee registered under Section 20A-11-601; and
115          (B) be designated by a political action committee as an officer who has primary
116     decision-making authority as described in Section 20A-11-601.
117          (b) A legislative office candidate or the candidate's personal campaign committee may
118     not use money deposited in an account described in Subsection (1)(a)(i) for:
119          (i) a personal use expenditure; or
120          (ii) an expenditure prohibited by law.
121          (2) A legislative office candidate may not deposit or mingle any contributions or public
122     service assistance received into a personal or business account.
123          (3) If a person who is no longer a legislative candidate chooses not to expend the
124     money remaining in a campaign account, the person shall continue to file the year-end
125     summary report required by Section 20A-11-302 until the statement of dissolution and final
126     summary report required by Section 20A-11-304 are filed with the lieutenant governor.
127          (4) (a) Except as provided in Subsection (4)(b) and Section 20A-11-402, a person who
128     is no longer a legislative office candidate may not expend or transfer the money in a campaign
129     account in a manner that would cause the former legislative office candidate to recognize the
130     money as taxable income under federal tax law.
131          (b) A person who is no longer a legislative office candidate may transfer the money in
132     a campaign account in a manner that would cause the former legislative office candidate to
133     recognize the money as taxable income under federal tax law if the transfer is made to a
134     campaign account for federal office.
135          (5) (a) As used in this Subsection (5) and Section 20A-11-303, "received" means:
136          (i) for a cash contribution, that the cash is given to a legislative office candidate or a
137     member of the candidate's personal campaign committee;
138          (ii) for a contribution that is a negotiable instrument or check, that the negotiable
139     instrument or check is negotiated; and
140          (iii) for any other type of contribution, that any portion of the contribution's benefit
141     inures to the legislative office candidate.

142          (b) Each legislative office candidate shall report to the lieutenant governor each
143     contribution and public service assistance received by the legislative office candidate:
144          (i) except as provided in Subsection (5)(b)(ii), within 30 days after the day on which
145     the contribution or public service assistance is received; or
146          (ii) within three business days after the day on which the contribution or public service
147     assistance is received, if:
148          (A) the legislative office candidate is contested in a convention and the contribution or
149     public service assistance is received within 30 days before the day on which the convention is
150     held;
151          (B) the legislative office candidate is contested in a primary election and the
152     contribution or public service assistance is received within 30 days before the day on which the
153     primary election is held; or
154          (C) the legislative office candidate is contested in a general election and the
155     contribution or public service assistance is received within 30 days before the day on which the
156     general election is held.
157          (c) [Except as provided in Subsection (5)(d), for] For each contribution or provision of
158     public service assistance that a legislative office candidate fails to report within the time period
159     described in Subsection (5)(b), the lieutenant governor shall impose a fine against the
160     legislative office candidate in an amount equal to:
161          (i) [the greater of $50 or] 15% of the amount of the contribution; or
162          (ii) [the greater of $50 or] 15% of the value of the public service assistance.
163          [(d) A fine described in Subsection (5)(c) may not exceed the amount of the
164     contribution or the value of the public service assistance to which the fine relates.]
165          [(e)] (d) The lieutenant governor shall:
166          (i) deposit money received under Subsection (5)(c) into the General Fund; and
167          (ii) report on the lieutenant governor's website, in the location where reports relating to
168     each legislative office candidate are available for public access:
169          (A) each fine imposed by the lieutenant governor against the legislative office

170     candidate;
171          (B) the amount of the fine;
172          (C) the amount of the contribution to which the fine relates; and
173          (D) the date of the contribution.
174          (6) (a) As used in this Subsection (6), "account" means an account in a financial
175     institution:
176          (i) that is not described in Subsection (1)(a)(i); and
177          (ii) into which or from which a person who, as a candidate for an office, other than a
178     legislative office for which the person files a declaration of candidacy or federal office, or as a
179     holder of an office, other than a legislative office for which the person files a declaration of
180     candidacy or federal office, deposits a contribution or makes an expenditure.
181          (b) A legislative office candidate shall include on any financial statement filed in
182     accordance with this part:
183          (i) a contribution deposited in an account:
184          (A) since the last campaign finance statement was filed; or
185          (B) that has not been reported under a statute or ordinance that governs the account; or
186          (ii) an expenditure made from an account:
187          (A) since the last campaign finance statement was filed; or
188          (B) that has not been reported under a statute or ordinance that governs the account.
189          Section 3. Section 20A-11-1301 is amended to read:
190          20A-11-1301. School board office candidate -- Campaign finance requirements --
191     Candidate as a political action committee officer -- No personal use -- Contribution
192     reporting deadline -- Report other accounts.
193          (1) (a) (i) Each school board office candidate shall deposit each contribution and public
194     service assistance received in one or more separate accounts in a financial institution that are
195     dedicated only to that purpose.
196          (ii) A school board office candidate may:
197          (A) receive a contribution or public service assistance from a political action

198     committee registered under Section 20A-11-601; and
199          (B) be designated by a political action committee as an officer who has primary
200     decision-making authority as described in Section 20A-11-601.
201          (b) A school board office candidate may not use money deposited in an account
202     described in Subsection (1)(a)(i) for:
203          (i) a personal use expenditure; or
204          (ii) an expenditure prohibited by law.
205          (2) A school board office candidate may not deposit or mingle any contributions or
206     public service assistance received into a personal or business account.
207          (3) A school board office candidate may not make any political expenditures prohibited
208     by law.
209          (4) If a person who is no longer a school board candidate chooses not to expend the
210     money remaining in a campaign account, the person shall continue to file the year-end
211     summary report required by Section 20A-11-1302 until the statement of dissolution and final
212     summary report required by Section 20A-11-1304 are filed with the lieutenant governor.
213          (5) (a) Except as provided in Subsection (5)(b) and Section 20A-11-402, a person who
214     is no longer a school board candidate may not expend or transfer the money in a campaign
215     account in a manner that would cause the former school board candidate to recognize the
216     money as taxable income under federal tax law.
217          (b) A person who is no longer a school board candidate may transfer the money in a
218     campaign account in a manner that would cause the former school board candidate to recognize
219     the money as taxable income under federal tax law if the transfer is made to a campaign
220     account for federal office.
221          (6) (a) As used in this Subsection (6) and Section 20A-11-1303, "received" means:
222          (i) for a cash contribution, that the cash is given to a school board office candidate or a
223     member of the candidate's personal campaign committee;
224          (ii) for a contribution that is a negotiable instrument or check, that the negotiable
225     instrument or check is negotiated; and

226          (iii) for any other type of contribution, that any portion of the contribution's benefit
227     inures to the school board office candidate.
228          (b) Each school board office candidate shall report to the chief election officer each
229     contribution and public service assistance received by the school board office candidate:
230          (i) except as provided in Subsection (6)(b)(ii), within 30 days after the day on which
231     the contribution or public service assistance is received; or
232          (ii) within three business days after the day on which the contribution or public service
233     assistance is received, if:
234          (A) the school board office candidate is contested in a primary election and the
235     contribution or public service assistance is received within 30 days before the day on which the
236     primary election is held; or
237          (B) the school board office candidate is contested in a general election and the
238     contribution or public service assistance is received within 30 days before the day on which the
239     general election is held.
240          (c) [Except as provided in Subsection (6)(d), for] For each contribution or provision of
241     public service assistance that a school board office candidate fails to report within the time
242     period described in Subsection (6)(b), the chief election officer shall impose a fine against the
243     school board office candidate in an amount equal to:
244          (i) [the greater of $50 or] 15% of the amount of the contribution; or
245          (ii) [the greater of $50 or] 15% of the value of the public service assistance.
246          [(d) A fine described in Subsection (6)(c) may not exceed the amount of the
247     contribution or the value of the public service assistance to which the fine relates.]
248          [(e)] (d) The chief election officer shall:
249          (i) deposit money received under Subsection (6)(c) into the General Fund; and
250          (ii) report on the chief election officer's website, in the location where reports relating
251     to each school board office candidate are available for public access:
252          (A) each fine imposed by the chief election officer against the school board office
253     candidate;

254          (B) the amount of the fine;
255          (C) the amount of the contribution to which the fine relates; and
256          (D) the date of the contribution.
257          (7) (a) As used in this Subsection (7), "account" means an account in a financial
258     institution:
259          (i) that is not described in Subsection (1)(a)(i); and
260          (ii) into which or from which a person who, as a candidate for an office, other than a
261     school board office for which the person files a declaration of candidacy or federal office, or as
262     a holder of an office, other than a school board office for which the person files a declaration of
263     candidacy or federal office, deposits a contribution or makes an expenditure.
264          (b) A school board office candidate shall include on any financial statement filed in
265     accordance with this part:
266          (i) a contribution deposited in an account:
267          (A) since the last campaign finance statement was filed; or
268          (B) that has not been reported under a statute or ordinance that governs the account; or
269          (ii) an expenditure made from an account:
270          (A) since the last campaign finance statement was filed; or
271          (B) that has not been reported under a statute or ordinance that governs the account.
272          Section 4. Section 20A-12-303 is amended to read:
273          20A-12-303. Separate account for campaign funds -- Reporting contributions.
274          (1) The judge or the judge's personal campaign committee shall deposit each
275     contribution in one or more separate personal campaign accounts in a financial institution.
276          (2) The judge or the judge's personal campaign committee may not deposit or mingle
277     any contributions received into a personal or business account.
278          (3) (a) As used in this Subsection (3) and Section 20A-12-305, "received" means:
279          (i) for a cash contribution, that the cash is given to a judge or the judge's personal
280     campaign committee;
281          (ii) for a contribution that is a negotiable instrument or check, that the negotiable

282     instrument or check is negotiated; and
283          (iii) for any other type of contribution, that any portion of the contribution's benefit
284     inures to the judge.
285          (b) The judge or the judge's personal campaign committee shall report to the lieutenant
286     governor each contribution received by the judge, within 30 days after the day on which the
287     contribution is received.
288          (c) [Except as provided in Subsection (3)(d), for] For each contribution that a judge
289     fails to report within the time period described in Subsection (3)(b), the lieutenant governor
290     shall impose a fine against the judge in an amount equal to [the greater of $50 or] 15% of the
291     amount of the contribution.
292          [(d) A fine described in Subsection (3)(c) may not exceed the amount of the
293     contribution to which the fine relates.]
294          [(e)] (d) The lieutenant governor shall:
295          (i) deposit money received under Subsection (3)(c) into the General Fund; and
296          (ii) report on the lieutenant governor's website, in the location where reports relating to
297     each judge are available for public access:
298          (A) each fine imposed by the lieutenant governor against the judge;
299          (B) the amount of the fine;
300          (C) the amount of the contribution to which the fine relates; and
301          (D) the date of the contribution.