1     
CAMPAIGN FUNDS RESTRICTIONS

2     
FOR COUNTY AND LOCAL SCHOOL BOARD OFFICES

3     
2016 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Patrice M. Arent

6     
Senate Sponsor: Margaret Dayton

7     

8     LONG TITLE
9     General Description:
10          This bill prohibits a personal use expenditure on a county and local school board level.
11     Highlighted Provisions:
12          This bill:
13          ▸     defines terms; and
14          ▸     prohibits a county office candidate, county officer, local school board candidate, or
15     local school board member from making a personal use expenditure.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          None
20     Utah Code Sections Affected:
21     ENACTS:
22          17-16-201, Utah Code Annotated 1953
23          17-16-202, Utah Code Annotated 1953
24          17-16-203, Utah Code Annotated 1953
25     

26     Be it enacted by the Legislature of the state of Utah:
27          Section 1. Section 17-16-201 is enacted to read:
28     
Part 2. Personal Use Expenditure

29          17-16-201. Title.

30          This part is known as "Personal Use Expenditure."
31          Section 2. Section 17-16-202 is enacted to read:
32          17-16-202. Definitions.
33          As used in this part:
34          (1) (a) Except as provided in Subsection (1)(b), "contribution" means any of the
35     following when done for a political purpose:
36          (i) a gift, subscription, donation, loan, advance, deposit of money, or anything of value
37     given to the filing entity;
38          (ii) an express, legally enforceable contract, promise, or agreement to make a gift,
39     subscription, donation, unpaid or partially unpaid loan, advance, deposit of money, or anything
40     of value to the filing entity;
41          (iii) any transfer of funds from another reporting entity to the filing entity;
42          (iv) compensation paid by any person or reporting entity other than the filing entity for
43     personal services provided without charge to the filing entity;
44          (v) a loan made by a county office candidate or local school board candidate deposited
45     into the county office candidate's or local school board candidate's own campaign account; or
46          (vi) an in-kind contribution.
47          (b) "Contribution" does not include:
48          (i) services provided by an individual volunteering a portion or all of the individual's
49     time on behalf of the filing entity if the services are provided without compensation by the
50     filing entity or any other person;
51          (ii) money lent to the filing entity by a financial institution in the ordinary course of
52     business; or
53          (iii) goods or services provided for the benefit of a county office candidate or local
54     school board candidate at less than fair market value that are not authorized by or coordinated
55     with the county office candidate or the local school board candidate.
56          (2) "County office" means an office described in Section 17-53-101 that is required to
57     be filled by an election.

58          (3) "County office candidate" means an individual who:
59          (a) files a declaration of candidacy for a county office; or
60          (b) receives a contribution, makes an expenditure, or gives consent for any other person
61     to receive a contribution or make an expenditure to bring about the individual's nomination or
62     election to a county office.
63          (4) "County officer" means an individual who holds a county office.
64          (5) (a) Except as provided in Subsection (5)(b), "expenditure" means any of the
65     following made by a reporting entity or an agent of a reporting entity on behalf of the reporting
66     entity:
67          (i) any disbursement from contributions, receipts, or the separate bank account required
68     under Section 17-16-6.5;
69          (ii) a purchase, payment, donation, distribution, loan, advance, deposit, gift of money,
70     or anything of value made for a political purpose;
71          (iii) an express, legally enforceable contract, promise, or agreement to make any
72     purchase, payment, donation, distribution, loan, advance, deposit, gift of money, or anything of
73     value for a political purpose;
74          (iv) compensation paid by a filing entity for personal services rendered by a person
75     without charge to a reporting entity;
76          (v) a transfer of funds between the filing entity and a county office candidate's, or a
77     local school board candidate's, personal campaign committee; or
78          (vi) goods or services provided by the filing entity to or for the benefit of another
79     reporting entity for a political purpose at less than fair market value.
80          (b) "Expenditure" does not include:
81          (i) services provided without compensation by an individual volunteering a portion or
82     all of the individual's time on behalf of a reporting entity;
83          (ii) money lent to a reporting entity by a financial institution in the ordinary course of
84     business; or
85          (iii) anything described in Subsection (5)(a) that is given by a reporting entity to a

86     candidate or officer in another state.
87          (6) "Filing entity" means:
88          (a) a county office candidate;
89          (b) a county officer;
90          (c) a local school board candidate;
91          (d) a local school board member; or
92          (e) a reporting entity that is required to meet a campaign finance disclosure
93     requirement adopted by a county in accordance with Section 17-16-6.5.
94          (7) "In-kind contribution" means anything of value, other than money, that is accepted
95     by or coordinated with a filing entity.
96          (8) "Local school board candidate" means an individual who:
97          (a) files a declaration of candidacy for local school board; or
98          (b) receives a contribution, makes an expenditure, or gives consent for any other person
99     to receive a contribution or make an expenditure to bring about the individual's nomination or
100     election to a local school board.
101          (9) (a) "Personal use expenditure" means an expenditure that:
102          (i) (A) is not excluded from the definition of personal use expenditure by Subsection
103     (9)(c); and
104          (B) primarily furthers a personal interest of a county office candidate, county officer,
105     local school board candidate, or a local school board member, or a member of a county office
106     candidate's, county officer's, local school board candidate's, or local school board member's
107     family; or
108          (ii) would cause the county office candidate, county officer, local school board
109     candidate, or local school board member to recognize the expenditure as taxable income under
110     federal law.
111          (b) "Personal use expenditure" includes:
112          (i) a mortgage, rent, utility, or vehicle payment;
113          (ii) a household food item or supply;

114          (iii) clothing, except for clothing:
115          (A) bearing the county office candidate's or local school board candidate's name or
116     campaign slogan or logo; and
117          (B) used in the county office candidate's or local school board member's campaign;
118          (iv) admission to a sporting, artistic, or recreational event or other form of
119     entertainment;
120          (v) dues, fees, or gratuities at a country club, health club, or recreational facility;
121          (vi) a salary payment made to:
122          (A) a county office candidate, county officer, local school board candidate, or local
123     school board member; or
124          (B) a person who has not provided a bona fide service to a county candidate, county
125     officer, local school board candidate, or local school board member;
126          (vii) a vacation;
127          (viii) a vehicle expense;
128          (ix) a meal expense;
129          (x) a travel expense;
130          (xi) payment of an administrative, civil, or criminal penalty;
131          (xii) satisfaction of a personal debt;
132          (xiii) a personal service, including the service of an attorney, accountant, physician, or
133     other professional person;
134          (xiv) a membership fee for a professional or service organization; and
135          (xv) a payment in excess of the fair market value of the item or service purchased.
136          (c) "Personal use expenditure" does not include an expenditure made:
137          (i) for a political purpose;
138          (ii) for candidacy for county office or local school board;
139          (iii) to fulfill a duty or activity of a county officer or local school board member;
140          (iv) for a donation to a registered political party;
141          (v) for a contribution to another candidate's campaign account, including sponsorship

142     of or attendance at an event, the primary purpose of which is to solicit a contribution for
143     another candidate's campaign account;
144          (vi) to return all or a portion of a contribution to a contributor;
145          (vii) for the following items, if made in connection with the candidacy for county
146     office or local school board, or an activity or duty of a county officer or local school board
147     member:
148          (A) a mileage allowance at the rate established by the political subdivision that
149     provides the mileage allowance;
150          (B) for motor fuel or special fuel, as defined in Section 59-13-102;
151          (C) a meal expense;
152          (D) a travel expense, including an expense incurred for airfare or a rental vehicle;
153          (E) a payment for a service provided by an attorney or accountant;
154          (F) a tuition payment or registration fee for participation in a meeting or conference;
155          (G) a gift;
156          (H) a payment for rent, utilities, a supply, or furnishings, in connection with an office
157     space;
158          (I) a booth at a meeting or event; or
159          (J) educational material;
160          (viii) to purchase or mail informational material, a survey, or a greeting card;
161          (ix) for a donation to a charitable organization, as defined in Section 13-22-2, including
162     admission to or sponsorship of an event, the primary purpose of which is charitable solicitation,
163     as defined in Section 13-22-2;
164          (x) to repay a loan a county office candidate or local school board candidate makes
165     from the candidate's personal account to the candidate's campaign account;
166          (xi) to pay membership dues to a national organization whose primary purpose is to
167     address general public policy;
168          (xii) for admission to or sponsorship of an event, the primary purpose of which is to
169     promote the social, educational, or economic well-being of the state or the county candidate's,

170     county officer's, local school board candidate's, or local school board member's community;
171          (xiii) for one or more guests of a county office candidate, county officer, local school
172     board candidate, or local school board member to attend an event, meeting, or conference
173     described in this Subsection (9)(c); or
174          (xiv) that is connected with the performance of an activity as a county office candidate
175     or local school board member, or an activity or duty of a county officer or local school board
176     member.
177          (10) "Political purpose" means an act done with the intent or in a way to influence or
178     tend to influence, directly or indirectly, any person to refrain from voting or to vote for or
179     against any candidate or a person seeking an office at any caucus, political convention, or
180     election.
181          (11) "Reporting entity":
182          (a) means the same as that term is defined in Subsection 20A-11-101(52); and
183          (b) includes a county office candidate, a county office candidate's personal campaign
184     committee, a county officer, a local school board candidate, a local school board candidate's
185     personal campaign committee, and a local school board member.
186          Section 3. Section 17-16-203 is enacted to read:
187          17-16-203. Personal use expenditure -- Authorized and prohibited uses of
188     campaign funds -- Enforcement -- Penalties.
189          (1) A county office candidate, county officer, local school board candidate, or local
190     school board member may not use money deposited into the separate bank account required
191     under Section 17-16-6.5 for:
192          (a) a personal use expenditure; or
193          (b) an expenditure prohibited by law.
194          (2) (a) A county clerk shall enforce this section prohibiting a personal use expenditure
195     by:
196          (i) evaluating a financial statement to identify a personal use expenditure; and
197          (ii) commencing an adjudicative proceeding in accordance with applicable county

198     ordinance or policy if the county clerk has probable cause to believe a county office candidate,
199     county officer, local school board candidate, or local school board member has made a personal
200     use expenditure.
201          (b) Following the proceeding, the county clerk may issue a signed order requiring a
202     county office candidate, county officer, local school board candidate, or local school board
203     member who has made a personal use expenditure to:
204          (i) remit an administrative penalty of an amount equal to 50% of the personal use
205     expenditure to the county clerk; and
206          (ii) deposit the amount of the personal use expenditure in the campaign account from
207     which the personal use expenditure was disbursed.
208          (c) The county clerk shall deposit money received under Subsection (2)(b)(i) into the
209     county's general fund.