1     
CAMPAIGN FINANCE REPORTING AMENDMENTS

2     
2017 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Lyle W. Hillyard

5     
House Sponsor: Brad M. Daw

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions in Title 20A, Chapter 11, Campaign and Financial
10     Reporting Requirements, governing campaign finance reporting by corporations.
11     Highlighted Provisions:
12          This bill:
13          ▸     repeals provisions that required a corporation that made expenditures to influence
14     the outcome of an election to report on a financial statement money received from a
15     donor in certain circumstances; and
16          ▸     repeals a provision that required a corporation in certain circumstances to notify a
17     donor that the corporation may:
18               •     use the money to influence the outcome of an election; and
19               •     disclose the identity of the donor.
20     Money Appropriated in this Bill:
21          None
22     Other Special Clauses:
23          None
24     Utah Code Sections Affected:
25     AMENDS:
26          20A-11-701, as last amended by Laws of Utah 2015, Chapters 204 and 296
27          20A-11-702, as last amended by Laws of Utah 2015, Chapter 204
28     

29     Be it enacted by the Legislature of the state of Utah:
30          Section 1. Section 20A-11-701 is amended to read:
31          20A-11-701. Campaign financial reporting by corporations -- Filing requirements
32     -- Statement contents.
33          (1) (a) Each corporation that has made expenditures for political purposes that total at
34     least $750 during a calendar year shall file a verified financial statement with the lieutenant
35     governor's office:
36          (i) on January 10, reporting expenditures as of December 31 of the previous year;
37          (ii) seven days before the state political convention for each major political party;
38          (iii) seven days before the regular primary election date;
39          (iv) on September 30; and
40          (v) seven days before the regular general election date.
41          (b) The corporation shall report:
42          (i) a detailed listing of all expenditures made since the last financial statement;
43          (ii) for a financial statement described in Subsections (1)(a)(ii) through (v), all
44     expenditures as of five days before the required filing date of the financial statement; and
45          (iii) whether the corporation, including an officer of the corporation, director of the
46     corporation, or person with at least 10% ownership in the corporation:
47          (A) has bid since the last financial statement on a contract, as defined in Section
48     63G-6a-103, in excess of $100,000;
49          (B) is currently bidding on a contract, as defined in Section 63G-6a-103, in excess of
50     $100,000; or
51          (C) is a party to a contract, as defined in Section 63G-6a-103, in excess of $100,000.
52          (c) The corporation need not file a financial statement under this section if the
53     corporation made no expenditures during the reporting period.
54          (d) The corporation is not required to report an expenditure made to, or on behalf of, a
55     reporting entity that the reporting entity is required to include in a financial statement described
56     in this chapter or Chapter 12, Part 2, Judicial Retention Elections.
57          (2) The financial statement shall include:
58          (a) the name and address of each reporting entity that received an expenditure from the
59     corporation, and the amount of each expenditure;
60          (b) the total amount of expenditures disbursed by the corporation[:]; and
61          [(i) since the last financial statement; and]
62          [(ii) during the calendar year;]
63          [(c) (i) a statement that the corporation did not receive any money from any donor
64     during the calendar year or the previous calendar year that the corporation has not reported in a
65     previous financial statement; or]
66          [(ii) a report, described in Subsection (3), of the money received from donors during
67     the calendar year or the previous calendar year that the corporation has not reported in a
68     previous financial statement; and]
69          [(d)] (c) a statement by the corporation's treasurer or chief financial officer certifying
70     the accuracy of the financial statement.
71          [(3) (a) The report required by Subsection (2)(c)(ii) shall include:]
72          [(i) the name and address of each donor;]
73          [(ii) the amount of the money received by the corporation from each donor; and]
74          [(iii) the date on which the corporation received the money.]
75          [(b) A corporation shall report money received from donors in the following order:]
76          [(i) first, beginning with the least recent date on which the corporation received money
77     that the corporation has not reported in a previous financial statement, the money received from
78     a donor that:]
79          [(A) requests that the corporation use the money to make an expenditure;]
80          [(B) gives the money to the corporation in response to a solicitation indicating the
81     corporation's intent to make an expenditure; or]
82          [(C) knows that the corporation may use the money to make an expenditure; and]
83          [(ii) second, divide the difference between the total amount of expenditures made since
84     the last financial statement and the total amount of money reported under Subsection (3)(b)(i)
85     on a proration basis between all donors that:]
86          [(A) are not described in Subsection (3)(b)(i);]
87          [(B) gave at least $50 during the calendar year or previous calendar year; and]
88          [(C) have not been reported in a previous financial statement.]
89          [(c) If the amount reported under Subsection (3)(b) is less than the total amount of
90     expenditures made since the last financial statement, the financial statement shall contain a
91     statement that the corporation has reported all donors that gave money, and all money received
92     by donors, during the calendar year or previous calendar year that the corporation has not
93     reported in a previous financial statement.]
94          [(d) The corporation shall indicate on the financial statement that the amount
95     attributed to each donor under Subsection (3)(b)(ii) is only an estimate.]
96          [(e) (i) For all individual donations of $50 or less, the corporation may report a single
97     aggregate figure without separate detailed listings.]
98          [(ii) The corporation:]
99          [(A) may not report in the aggregate two or more donations from the same source that
100     have an aggregate total of more than $50; and]
101          [(B) shall separately report donations described in Subsection (3)(e)(ii)(A).]
102          [(4) If a corporation makes expenditures that total at least $750 during a calendar year,
103     the corporation shall notify a person giving money to the corporation that:]
104          [(a) the corporation may use the money to make an expenditure; and]
105          [(b) the person's name and address may be disclosed on the corporation's financial
106     statement.]
107          Section 2. Section 20A-11-702 is amended to read:
108          20A-11-702. Campaign financial reporting of political issues expenditures by
109     corporations -- Financial reporting.
110          (1) (a) Each corporation that has made political issues expenditures on current or
111     proposed ballot issues that total at least $750 during a calendar year shall file a verified
112     financial statement with the lieutenant governor's office:
113          (i) on January 10, reporting expenditures as of December 31 of the previous year;
114          (ii) seven days before the state political convention of each major political party;
115          (iii) seven days before the regular primary election date;
116          (iv) on September 30; and
117          (v) seven days before the regular general election date.
118          (b) The corporation shall report:
119          (i) a detailed listing of all expenditures made since the last financial statement; and
120          (ii) for a financial statement described in Subsections (1)(a)(ii) through (v),
121     expenditures as of five days before the required filing date of the financial statement.
122          (c) The corporation need not file a statement under this section if it made no
123     expenditures during the reporting period.
124          (2) That statement shall include:
125          (a) the name and address of each individual, entity, or group of individuals or entities
126     that received a political issues expenditure of more than $50 from the corporation, and the
127     amount of each political issues expenditure;
128          (b) the total amount of political issues expenditures disbursed by the corporation[:];
129     and
130          [(i) since the last financial statement; and]
131          [(ii) during the calendar year;]
132          [(c) (i) a statement that the corporation did not receive any money from any donor
133     during the calendar year or the previous calendar year that the corporation has not reported in a
134     previous financial statement; or]
135          [(ii) a report, described in Subsection (3), of the money received from donors during
136     the calendar year or the previous calendar year that the corporation has not reported in a
137     previous financial statement; and]
138          [(d)] (c) a statement by the corporation's treasurer or chief financial officer certifying
139     the accuracy of the verified financial statement.
140          [(3) (a) The report required by Subsection (2)(c)(ii) shall include:]
141          [(i) the name and address of each donor;]
142          [(ii) the amount of the money received by the corporation from each donor; and]
143          [(iii) the date on which the corporation received the money.]
144          [(b) A corporation shall report money received from donors in the following order:]
145          [(i) first, beginning with the least recent date on which the corporation received money
146     that has not been reported in a previous financial statement, the money received from a donor
147     that:]
148          [(A) requests that the corporation use the money to make a political issues
149     expenditure;]
150          [(B) gives the money to the corporation in response to a solicitation indicating the
151     corporation's intent to make a political issues expenditure; or]
152          [(C) knows that the corporation may use the money to make a political issues
153     expenditure; and]
154          [(ii) second, divide the difference between the total amount of political issues
155     expenditures made since the last financial statement and the total amount of money reported
156     under Subsection (3)(b)(i) on a proration basis between all donors that:]
157          [(A) are not described in Subsection (3)(b)(i);]
158          [(B) gave at least $50 during the calendar year or previous calendar year; and]
159          [(C) have not been reported in a previous financial statement.]
160          [(c) If the amount reported under Subsection (3)(b) is less than the total amount of
161     political issues expenditures made since the last financial statement, the financial statement
162     shall contain a statement that the corporation has reported all donors that gave money, and all
163     money received by donors, during the calendar year or previous calendar year that the
164     corporation has not reported in a previous financial statement.]
165          [(d) The corporation shall indicate on the financial statement that the amount attributed
166     to each donor under Subsection (3)(b)(ii) is only an estimate.]
167          [(e) (i) For all individual donations of $50 or less, the corporation may report a single
168     aggregate figure without separate detailed listings.]
169          [(ii) The corporation:]
170          [(A) may not report in the aggregate two or more donations from the same source that
171     have an aggregate total of more than $50; and]
172          [(B) shall separately report donations described in Subsection (3)(e)(ii)(A).]
173          [(4) If a corporation makes political issues expenditures that total at least $750 during a
174     calendar year, the corporation shall notify a person giving money to the corporation that:]
175          [(a) the corporation may use the money to make a political issues expenditure; and]
176          [(b) the person's name and address may be disclosed on the corporation's financial
177     statement.]




Legislative Review Note
Office of Legislative Research and General Counsel