1     
LOBBYIST LICENSING MODIFICATIONS

2     
2019 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Don L. Ipson

5     
House Sponsor: Mike Schultz

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions of the Lobbyist Disclosure and Regulation Act.
10     Highlighted Provisions:
11          This bill:
12          ▸     clarifies provisions relating to financial reports;
13          ▸     requires the lieutenant governor to provide, and a lobbyist to take, an annual
14     training course relating to workplace discrimination and harassment;
15          ▸     amends existing rulemaking authority within the Office of the Lieutenant Governor;
16          ▸     amends lobbyist licensing provisions;
17          ▸     prohibits a lobbyist from:
18               •     violating federal laws governing workplace harassment and discrimination; and
19               •     violating policies governing workplace harassment and discrimination adopted
20     by the Utah Senate, the Utah House, and the Utah executive branch;
21          ▸     provides penalties for a lobbyist who violates the provisions of this bill;
22          ▸     permits a lobbyist to file a complaint of workplace discrimination or harassment
23     against an executive worker or a legislative worker; and
24          ▸     makes technical and conforming amendments.
25     Money Appropriated in this Bill:
26          None
27     Other Special Clauses:
28          None
29     Utah Code Sections Affected:

30     AMENDS:
31          36-11-103, as last amended by Laws of Utah 2015, Chapter 188
32          36-11-106, as last amended by Laws of Utah 2002, Chapter 317
33          36-11-307, as enacted by Laws of Utah 2011, Chapter 389
34          36-11-401, as last amended by Laws of Utah 2015, Chapter 258
35          36-11-404, as last amended by Laws of Utah 2008, Chapter 382
36     ENACTS:
37          36-11-501, Utah Code Annotated 1953
38     

39     Be it enacted by the Legislature of the state of Utah:
40          Section 1. Section 36-11-103 is amended to read:
41          36-11-103. Licensing requirements.
42          (1) (a) Before engaging in any lobbying, a lobbyist shall obtain a license from the
43     lieutenant governor by completing the form required by this section.
44          (b) The lieutenant governor shall issue licenses to qualified lobbyists.
45          (c) The lieutenant governor shall prepare a Lobbyist License Application Form that
46     includes:
47          (i) a place for the lobbyist's name and business address;
48          (ii) a place for the following information for each principal for whom the lobbyist
49     works or is hired as an independent contractor:
50          (A) the principal's name;
51          (B) the principal's business address;
52          (C) the name of each public official that the principal employs and the nature of the
53     employment with the public official; and
54          (D) the general purposes, interests, and nature of the principal;
55          (iii) a place for the name and address of the person who paid or will pay the lobbyist's
56     registration fee, if the fee is not paid by the lobbyist;
57          (iv) a place for the lobbyist to disclose:

58          (A) any elected or appointed position that the lobbyist holds in state or local
59     government, if any; and
60          (B) the name of each public official that the lobbyist employs and the nature of the
61     employment with the public official, if any;
62          (v) a place for the lobbyist to disclose the types of expenditures for which the lobbyist
63     will be reimbursed; and
64          (vi) a certification to be signed by the lobbyist that certifies that the information
65     provided in the form is true, accurate, and complete to the best of the lobbyist's knowledge and
66     belief.
67          (2) Each lobbyist who obtains a license under this section shall update the licensure
68     information when the lobbyist accepts employment for lobbying by a new client.
69          (3) (a) Except as provided in Subsection (4), the lieutenant governor shall grant a
70     lobbying license to an applicant who:
71          (i) files an application with the lieutenant governor that contains the information
72     required by this section; [and]
73          (ii) completes the training required by Section 36-11-307; and
74          [(ii)] (iii) pays a [$110] $60 filing fee.
75          (b) A license entitles a person to serve as a lobbyist on behalf of one or more principals
76     and expires on December 31 [of] each [even-numbered] year.
77          (4) (a) The lieutenant governor may disapprove an application for a lobbying license:
78          (i) if the applicant has been convicted of violating Section 76-8-103, 76-8-107,
79     76-8-108, or 76-8-303 within five years before the date of the lobbying license application;
80          (ii) if the applicant has been convicted of violating Section 76-8-104 or 76-8-304
81     within one year before the date of the lobbying license application;
82          (iii) [for] during the term of any suspension imposed under Section 36-11-401;
83          (iv) if the applicant has not complied with Subsection 36-11-307(6);
84          (v) during the term of a suspension imposed under Subsection 36-11-501(3);
85          (vi) if the lobbyist fails to pay a fine imposed under Subsection 36-11-501(3);

86          [(iv)] (vii) if, within one year before the date of the lobbying license application, the
87     applicant has been found to have willingly and knowingly:
88          (A) violated this section or Section 36-11-201, 36-11-301, 36-11-302, 36-11-303,
89     36-11-304, 36-11-305, or 36-11-403; or
90          (B) filed a document required by this chapter that the lobbyist knew contained
91     materially false information or omitted material information; or
92          [(v)] (viii) if the applicant is prohibited from becoming a lobbyist under Title 67,
93     Chapter 24, Lobbying Restrictions Act.
94          (b) An applicant may appeal the disapproval in accordance with the procedures
95     established by the lieutenant governor under this chapter and Title 63G, Chapter 4,
96     Administrative Procedures Act.
97          (5) The lieutenant governor shall deposit each license fee into the General Fund as a
98     dedicated credit to be used by the lieutenant governor to pay the cost of administering the
99     license program described in this section.
100          (6) A principal need not obtain a license under this section, but if the principal makes
101     expenditures to benefit a public official without using a lobbyist as an agent to confer those
102     benefits, the principal shall disclose those expenditures as required by Section 36-11-201.
103          (7) Government officers need not obtain a license under this section, but shall disclose
104     any expenditures made to benefit public officials as required by Section 36-11-201.
105          (8) Surrender, cancellation, or expiration of a lobbyist license does not absolve the
106     lobbyist of the duty to file the financial reports if the lobbyist is otherwise required to file the
107     reports by Section 36-11-201.
108          Section 2. Section 36-11-106 is amended to read:
109          36-11-106. Financial reports are public documents.
110          (1) Any person may:
111          (a) without charge, inspect a license application or financial report filed with the
112     lieutenant governor in accordance with this chapter; and
113          (b) make a copy of a financial report after paying for the actual costs of the copy.

114          (2) The lieutenant governor shall make financial reports filed in accordance with this
115     chapter available for viewing on the Internet at the lieutenant governor's website within seven
116     calendar days after the day on which the report is received by the lieutenant governor.
117          Section 3. Section 36-11-307 is amended to read:
118          36-11-307. Ethics and unlawful harassment training course for lobbyists --
119     Internet availability -- Content -- Participation tracking -- Penalty.
120          (1) The lieutenant governor shall develop and maintain [an ethics training course for]
121     online training courses educating lobbyists[.] about:
122          (a) federal workplace discrimination and harassment prohibitions and requirements;
123          (b) the Utah Senate's, Utah House's, and the executive branch's policies governing
124     workplace discrimination and harassment prohibitions, policies, and procedures; and
125          (c) state and federal requirements governing lobbyists, including lobbyist ethical
126     requirements.
127          (2) [The ethics] A training course described in Subsection (1) shall include training
128     materials and exercises that are available on the Internet to lobbyists and to the public.
129          (3) The lieutenant governor shall design the ethics training course [shall be designed]
130     to assist lobbyists in understanding and complying with current ethical and campaign finance
131     requirements under state law, legislative rules, and federal law.
132          (4) The lieutenant governor may enter into an agreement with the Department of
133     Human Resource Management to assist the lieutenant governor in providing the workplace
134     discrimination and harassment training described in this section.
135          [(4)] (5) [The ethics] A training course described in this section shall include
136     provisions for verifying when a lobbyist has successfully completed [key training exercises] the
137     training.
138          [(5) A lobbyist shall successfully complete the key training exercises of the ethics
139     training course once each year.]
140          [(6) A lobbyist who does not complete the training required by this section is subject to
141     a penalty as provided in Section 36-11-401.]

142          (6) (a) A lobbyist shall, within 30 days after the day on which the lobbyist applies for a
143     lobbying license or a lobbying license renewal:
144          (i) successfully complete the training courses described in this section; and
145          (ii) provide to the lieutenant governor a document, signed by the lobbyist, certifying
146     that the lobbyist has:
147          (A) completed the training courses required by this section; and
148          (B) received, read, understands, and will comply with the workplace discrimination
149     and harassment policies adopted by the Utah Senate, the Utah House, and Utah's executive
150     branch.
151          (b) The lieutenant governor may not issue a lobbying license, or renew a lobbying
152     license, until the lieutenant governor has received from the lobbyist the document required by
153     Subsection (6)(a).
154          (7) A signature described in Subsection (6)(b) may be an electronic signature.
155          Section 4. Section 36-11-401 is amended to read:
156          36-11-401. Penalties.
157          (1) Any person who intentionally violates Section 36-11-103, 36-11-201, 36-11-301,
158     36-11-302, 36-11-303, 36-11-304, 36-11-305, or 36-11-403, is subject to the following
159     penalties:
160          (a) an administrative penalty of up to $1,000 for each violation; and
161          (b) for each subsequent violation of that same section within 24 months, either:
162          (i) an administrative penalty of up to $5,000; or
163          (ii) suspension of the violator's lobbying license for up to one year, if the person is a
164     lobbyist.
165          (2) Any person who intentionally fails to file a financial report required by this chapter,
166     omits material information from a license application form or financial report, or files false
167     information on a license application form or financial report, is subject to the following
168     penalties:
169          (a) an administrative penalty of up to $1,000 for each violation; or

170          (b) suspension of the violator's lobbying license for up to one year, if the person is a
171     lobbyist.
172          (3) Any person who intentionally fails to file a financial report required by this chapter
173     on the date that it is due shall, in addition to the penalties, if any, imposed under Subsection (1)
174     or (2), pay a penalty of up to $50 per day for each day that the report is late.
175          (4) (a) When a lobbyist is convicted of violating Section 76-8-103, 76-8-107, 76-8-108,
176     or 76-8-303, the lieutenant governor shall suspend the lobbyist's license for up to five years
177     from the date of the conviction.
178          (b) When a lobbyist is convicted of violating Section 76-8-104 or 76-8-304, the
179     lieutenant governor shall suspend a lobbyist's license for up to one year from the date of
180     conviction.
181          (5) (a) Any person who intentionally violates Section 36-11-301, 36-11-302, or
182     36-11-303 is guilty of a class B misdemeanor.
183          (b) The lieutenant governor shall suspend the lobbyist license of any person convicted
184     under any of these sections for up to one year.
185          (c) The suspension shall be in addition to any administrative penalties imposed by the
186     lieutenant governor under this section.
187          (d) Any person with evidence of a possible violation of this chapter may submit that
188     evidence to the lieutenant governor for investigation and resolution.
189          [(6) A lobbyist who does not complete the training required by Section 36-11-307 is
190     subject to the following penalties:]
191          [(a) an administrative penalty of up to $1,000 for each failure to complete the training
192     required by Section 36-11-307; and]
193          [(b) for two or more failures to complete the training required by Section 36-11-307
194     within 24 months, suspension of the lobbyist's lobbying license.]
195          [(7)] (6) Nothing in this chapter creates a third-party cause of action or appeal rights.
196          Section 5. Section 36-11-404 is amended to read:
197          36-11-404. Lieutenant governor's procedures.

198          (1) [The lieutenant governor] Except as otherwise provided under Section 36-11-501,
199     the director of elections within the Office of the Lieutenant Governor shall make rules that
200     provide:
201          (a) for the appointment of an administrative law judge to adjudicate alleged violations
202     of this [section] chapter and to impose penalties under this [section] chapter;
203          (b) procedures for license applications, disapprovals, suspensions, revocations, and
204     reinstatements that comply with the procedures and requirements of Title 63G, Chapter 4,
205     Administrative Procedures Act.
206          (2) The lieutenant governor shall develop forms needed for the registration and
207     disclosure provisions [of] described in this chapter.
208          Section 6. Section 36-11-501 is enacted to read:
209     
Part 5. Unlawful Harassment

210          36-11-501. Unlawful harassment -- Investigation -- Penalties.
211          (1) A lobbyist may not engage in conduct that violates:
212          (a) federal workplace discrimination and harassment requirements;
213          (b) Utah Senate or Utah House policies governing workplace discrimination or
214     harassment;
215          (c) Utah executive branch policies governing workplace discrimination or harassment;
216     or
217          (d) any combination of Subsections (1) (a), (b), or (c).
218          (2) (a) The lieutenant governor may take an action described in Subsection (3) against
219     a lobbyist if the lieutenant governor finds, after giving the lobbyist notice and an opportunity to
220     be heard, that the lobbyist engaged in a serious violation, or multiple violations, of this section.
221          (b) The lieutenant governor shall post on the lieutenant governor's website a copy of
222     the Utah Senate's harassment policy, the Utah House's harassment policy, and the executive
223     branch's harassment policies.
224          (3) If the lieutenant governor makes a finding described in Subsection (2)(a), the
225     lieutenant governor may, taking into account the seriousness of the violation or the seriousness

226     or frequency of multiple violations, do either or both of the following:
227          (a) impose an administrative fine against the lobbyist, not to exceed $2,000; or
228          (b) suspend the lobbyist's license for a period of up to five years.
229          (4) A record that relates to an investigation under this section is a protected record, to
230     the extent permitted by Title 63G, Chapter 2, Government Records Access and Management
231     Act.
232          (5) (a) A lobbyist who is a victim of workplace discrimination or harassment by an
233     executive worker may file a complaint under the state executive branch's applicable workplace
234     discrimination and harassment policy.
235          (b) A lobbyist who is a victim of workplace discrimination or harassment by a
236     legislative worker may file a complaint under the Utah Senate's workplace discrimination and
237     harassment policy or the Utah House's workplace discrimination and harassment policy.