Representative Michael K. McKell proposes the following substitute bill:


1     
POLITICAL ACTION COMMITTEE AMENDMENTS

2     
2019 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Karen Mayne

5     
House Sponsor: Michael K. McKell

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions relating to a political action committee.
10     Highlighted Provisions:
11          This bill:
12          ▸     modifies provisions relating to a statement of organization for a political action
13     committee;
14          ▸     prohibits a political action committee from using a name or acronym:
15               •     other than a name or acronym disclosed in the political action committee's
16     statement of organization;
17               •     that is the same, or deceptively similar to, the name or acronym of another
18     political action committee; or
19               •     that is likely to mislead a potential donor regarding the individuals or entities
20     represented by, or affiliated with, the political action committee;
21          ▸     provides for enforcement of the provisions of this bill by the lieutenant governor's
22     office;
23          ▸     permits legal action to enforce the provisions of this bill or to recover damages in
24     certain circumstances; and
25          ▸     makes technical changes.
26     Money Appropriated in this Bill:
27          None
28     Other Special Clauses:
29          This bill provides a coordination clause.
30     Utah Code Sections Affected:
31     AMENDS:
32          20A-11-601, as last amended by Laws of Utah 2018, Chapter 83
33     Utah Code Sections Affected by Coordination Clause:
34          20A-11-601, as last amended by Laws of Utah 2018, Chapter 83
35     

36     Be it enacted by the Legislature of the state of Utah:
37          Section 1. Section 20A-11-601 is amended to read:
38          20A-11-601. Political action committees -- Registration -- Name or acronym used
39     by political action committee -- Criminal penalty for providing false information or
40     accepting unlawful contribution.
41          [(1) (a) Each political action committee shall file a statement of organization with the
42     lieutenant governor's office by January 10 of each year, unless the political action committee
43     has filed a notice of dissolution under Subsection (4).]
44          [(b) If a political action committee is organized after the January 10 filing date, the]
45          (1) (a) A political action committee shall file an initial statement of organization with
46     the lieutenant governor's office no later than seven days after:
47          (i) receiving contributions totaling at least $750; or
48          (ii) distributing expenditures for political purposes totaling at least $750.
49          [(c) Each political action committee shall deposit each contribution received in one or
50     more separate accounts in a financial institution that are dedicated only to that purpose.]
51          (b) After filing an initial statement of organization, a political action committee shall,
52     before January 10 each year after the year in which the political action committee files an initial
53     statement of organization, file an updated statement of organization with the lieutenant
54     governor's office.
55          (2) A statement of organization described in Subsection (1) shall include:
56          (a) the full name of the political action committee, a second name, if any, and an
57     acronym, if any;
58          (b) the address and phone number of the political action committee;
59          (c) the name, address, telephone number, title, and occupation of:
60          (i) the two officers described in Subsection (5) and the treasurer of the political action
61     committee;
62          (ii) all other officers, advisory members, and governing board members of the political
63     action committee; and
64          (iii) each individual or entity represented by, or affiliated with, the political action
65     committee; and
66          (d) other relevant information requested by the lieutenant governor.
67          (3) (a) A political action committee may not use a name or acronym:
68          (i) other than a name or acronym disclosed in the political action committee's latest
69     statement of organization;
70          (ii) that is the same, or deceptively similar to, the name or acronym of another political
71     action committee; or
72          (iii) that is likely to mislead a potential donor regarding the individuals or entities
73     represented by, or affiliated with, the political action committee.
74          (b) Within seven days after the day on which a political action committee files an
75     initial statement of organization, the lieutenant governor's office shall:
76          (i) review the statement and determine whether a name or acronym used by the
77     political action committee violates Subsection (3)(a)(ii) or (iii); and
78          (ii) if the lieutenant governor's office determines that a name or acronym used by the
79     political action committee violates Subsection (3)(a)(ii) or (iii), order, in writing, that the
80     political action committee:
81          (A) immediately cease and desist use of the name or acronym; and
82          (B) within seven days after the day of the order, file an updated statement of
83     organization with a name and acronym that does not violate Subsection (3)(a)(ii) or (iii).
84          (c) If, beginning on May 14, 2019, a political action committee is using a name or
85     acronym that is the same, or deceptively similar to, the name or acronym of another political
86     action committee, the lieutenant governor shall determine which political action committee has
87     been using the name the longest and shall order, in writing, any other political action
88     committee using the same, or a deceptively similar, name or acronym to:
89          (i) immediately cease and desist use of the name or acronym; and
90          (ii) within seven days after the day of the order, file an updated statement of
91     organization with a name and acronym that does not violate Subsection (3)(a)(ii) or (iii).
92          (d) If a political action committee uses a name or acronym other than a name or
93     acronym disclosed in the political action committee's latest statement of organization:
94          (i) the lieutenant governor shall order, in writing, that the political action committee
95     cease and desist use of the name or acronym; and
96          (ii) the political action committee shall immediately comply with the order described in
97     Subsection (3)(d)(i).
98          (4) (a) The lieutenant governor may, in addition to any other penalty provided by law,
99     impose a $100 fine against a political action committee that:
100          (i) fails to timely file a complete and accurate statement of organization or subsequent
101     statement of organization; or
102          (ii) fails to comply with an order described in Subsection (3).
103          (b) The attorney general, or a political action committee that is harmed by the action of
104     a political action committee in violation of this section, may bring an action for an injunction
105     against the violating political action committee, or an officer of the violating political action
106     committee, to enforce the provisions of this section.
107          (c) A political action committee may bring an action for damages against another
108     political action committee that uses a name or acronym that is the same, or deceptively similar
109     to, the name or acronym of the political action committee bringing the action.
110          [(2)] (5) (a) Each political action committee shall designate two officers who have
111     primary decision-making authority for the political action committee.
112          (b) A person may not exercise primary decision-making authority for a political action
113     committee who is not designated under Subsection [(2)] (5)(a).
114          [(3) The statement of organization shall include:]
115          [(a) the name and address of the political action committee;]
116          [(b) the name, street address, phone number, occupation, and title of the two primary
117     officers designated under Subsection (2)(a);]
118          [(c) the name, street address, occupation, and title of all other officers of the political
119     action committee;]
120          [(d) the name and street address of the organization, individual corporation,
121     association, unit of government, or union that the political action committee represents, if any;]
122          [(e) the name and street address of all affiliated or connected organizations and their
123     relationships to the political action committee;]
124          [(f) the name, street address, business address, occupation, and phone number of the
125     committee's treasurer or chief financial officer; and]
126          [(g) the name, street address, and occupation of each member of the governing and
127     advisory boards, if any.]
128          (6) A political action committee shall deposit each contribution received in one or
129     more separate accounts in a financial institution that are dedicated only to that purpose.
130          [(4)] (7) (a) Any registered political action committee that intends to permanently cease
131     operations shall file a notice of dissolution with the lieutenant governor's office.
132          (b) Any notice of dissolution filed by a political action committee does not exempt that
133     political action committee from complying with the financial reporting requirements of this
134     chapter.
135          [(5)] (8) (a) Unless the political action committee has filed a notice of dissolution
136     under Subsection [(4)] (7), a political action committee shall file, with the lieutenant governor's
137     office, notice of any change of an officer described in Subsection [(2)] (5)(a).
138          (b) Notice of a change of a primary officer described in Subsection [(2)] (5)(a) shall:
139          (i) be filed within 10 days of the date of the change; and
140          (ii) contain the name and title of the officer being replaced, and the name, street
141     address, occupation, and title of the new officer.
142          [(6)] (9) (a) A person is guilty of providing false information in relation to a political
143     action committee if the person intentionally or knowingly gives false or misleading material
144     information in [the] a statement of organization or the notice of change of primary officer.
145          (b) Each primary officer designated in Subsection [(2)] (5)(a) is guilty of accepting an
146     unlawful contribution if the political action committee knowingly or recklessly accepts a
147     contribution from a corporation that:
148          (i) was organized less than 90 days before the date of the general election; and
149          (ii) at the time the political action committee accepts the contribution, has failed to file
150     a statement of organization with the lieutenant governor's office as required by Section
151     20A-11-704.
152          (c) A violation of this Subsection [(6)] (9) is a third degree felony.
153          Section 2. Coordinating S.B. 169 with S.B. 33 -- Substantive and technical
154     amendments.
155          If this S.B. 169 and S.B. 33, Political Procedures Amendments, both pass and become
156     law, it is the intent of the Legislature that the Office of Legislative Research and General
157     Counsel shall prepare the Utah Code database for publication by amending Subsection
158     20A-11-601(1) to read:
159          "[(1) (a) Each political action committee shall file a statement of organization with the
160     lieutenant governor's office by January 10 of each year, unless the political action committee
161     has filed a notice of dissolution under Subsection (4).]
162          [(b) If a political action committee is organized after the January 10 filing date, the]
163          (1) (a) A political action committee shall file an initial statement of organization with
164     the lieutenant governor's office no later than 5 p.m. seven days after:
165          (i) receiving contributions totaling at least $750; or
166          (ii) distributing expenditures for political purposes totaling at least $750.
167          (b) Unless the political action committee has filed a notice of dissolution under
168     Subsection (7), after filing an initial statement of organization, a political action committee
169     shall file an updated statement of organization with the lieutenant governor's office each year
170     after the year in which the political action committee files an initial statement of organization:
171          (i) before 5 p.m. on January 10; or
172          (ii) electronically, before midnight on January 10.
173          [(c) Each political action committee shall deposit each contribution received in one or
174     more separate accounts in a financial institution that are dedicated only to that purpose.]".