1     
POLITICAL COMMITTEE AMENDMENTS

2     
2019 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Daniel W. Thatcher

5     
House Sponsor: Mike Winder

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions relating to political action committees and political issues
10     committees.
11     Highlighted Provisions:
12          This bill:
13          ▸     describes the requirements for the disposal of contributions by a political action
14     committee when the political action committee dissolves;
15          ▸     clarifies reporting requirements for a political action committee and a political
16     issues committee;
17          ▸     provides that a political action committee may make a contribution to a political
18     issues committee, but that a political issues committee may not make a contribution
19     to a political action committee; and
20          ▸     makes technical and conforming changes.
21     Money Appropriated in this Bill:
22          None
23     Other Special Clauses:
24          None
25     Utah Code Sections Affected:
26     AMENDS:
27          20A-11-601, as last amended by Laws of Utah 2018, Chapter 83
28          20A-11-801, as last amended by Laws of Utah 2018, Chapter 83
29     

30     Be it enacted by the Legislature of the state of Utah:
31          Section 1. Section 20A-11-601 is amended to read:
32          20A-11-601. Political action committees -- Registration -- Criminal penalty for
33     providing false information or accepting unlawful contribution.
34          (1) (a) Each political action committee shall file a statement of organization with the
35     lieutenant governor's office [by] on or before January 10 of each year, unless the political
36     action committee has filed a notice of dissolution under Subsection (4).
37          (b) If a political action committee is organized after the January 10 filing date, the
38     political action committee shall file an initial statement of organization no later than seven days
39     after the day on which the political action committee:
40          (i) [receiving] receives contributions totaling at least $750; or
41          (ii) [distributing] distributes expenditures for political purposes totaling at least $750.
42          (c) Each political action committee shall deposit each contribution received in one or
43     more separate accounts in a financial institution that are dedicated only to that purpose.
44          (2) (a) Each political action committee shall designate two officers who have primary
45     decision-making authority for the political action committee.
46          (b) [A person] An individual may not exercise primary decision-making authority for a
47     political action committee [who] if the individual is not designated under Subsection (2)(a).
48          (3) The statement of organization shall include:
49          (a) the name and address of the political action committee;
50          (b) the name, street address, phone number, occupation, and title of the two primary
51     officers designated under Subsection (2)(a);
52          (c) the name, street address, occupation, and title of all other officers of the political
53     action committee;
54          (d) the name and street address of the organization, individual corporation, association,
55     unit of government, or union that the political action committee represents, if any;
56          (e) the name and street address of all affiliated or connected organizations and their
57     relationships to the political action committee;
58          (f) the name, street address, business address, occupation, and phone number of the
59     committee's treasurer or chief financial officer; and
60          (g) the name, street address, and occupation of each member of the governing and
61     advisory boards, if any.
62          (4) (a) [Any] A registered political action committee that intends to permanently cease
63     operations shall file a notice of dissolution with the lieutenant governor's office.
64          (b) [Any] A notice of dissolution filed by a political action committee does not exempt
65     [that] the political action committee from complying with the financial reporting requirements
66     [of] described in this chapter in relation to all contributions received, and all expenditures
67     made, before, at, or after dissolution.
68          (c) A political action committee shall, before filing a notice of dissolution, dispose of
69     any money remaining in an account described in Subsection (1)(c) by:
70          (i) returning the money to the donors;
71          (ii) donating the money to the campaign account of a candidate or officeholder;
72          (iii) donating the money to another political action committee;
73          (iv) donating the money to a political party;
74          (v) donating the money to an organization that is exempt from federal income taxation
75     under Section 501(c)(3), Internal Revenue Code; or
76          (vi) making another lawful expenditure of the money for a political purpose.
77          (d) A political action committee shall report all money donated or expended under
78     Subsection (4)(c) in a financial report to the lieutenant governor, in accordance with the
79     financial reporting requirements described in this chapter.
80          (5) (a) Unless the political action committee has filed a notice of dissolution under
81     Subsection (4), a political action committee shall file, with the lieutenant governor's office,
82     notice of any change of an officer described in Subsection (2)(a).
83          (b) A political action committee may not accept a contribution from a political issues
84     committee, but may donate money to a political issues committee.
85          (c) A political action committee shall:
86          [(b)] (i) [Notice] file a notice of a change of a primary officer described in Subsection
87     (2)(a) [shall:] within 10 days after the day on which the change occurs; and
88          [(i) be filed within 10 days of the date of the change; and]
89          (ii) [contain] include in the notice of change the name and title of the officer being
90     replaced, and the name, street address, occupation, and title of the new officer.
91          (6) (a) A person is guilty of providing false information in relation to a political action
92     committee if the person intentionally or knowingly gives false or misleading material
93     information in the statement of organization or the notice of change of primary officer.
94          (b) Each primary officer designated in Subsection (2)(a) or (5)(c) is guilty of accepting
95     an unlawful contribution if the political action committee knowingly or recklessly accepts a
96     contribution from a corporation that:
97          (i) was organized less than 90 days before the date of the general election; and
98          (ii) at the time the political action committee accepts the contribution, has failed to file
99     a statement of organization with the lieutenant governor's office as required by Section
100     20A-11-704.
101          (c) A violation of this Subsection (6) is a third degree felony.
102          Section 2. Section 20A-11-801 is amended to read:
103          20A-11-801. Political issues committees -- Registration -- Criminal penalty for
104     providing false information or accepting unlawful contribution.
105          (1) (a) Each political issues committee shall file a statement of organization with the
106     lieutenant governor's office [by] on or before January 10 of each year, unless the political
107     issues committee has filed a notice of dissolution under Subsection (4).
108          (b) If a political issues committee is organized after the January 10 filing date, the
109     political issues committee shall file an initial statement of organization no later than seven days
110     after the day on which the political issues committee:
111          (i) [receiving] receives political issues contributions totaling at least $750; or
112          (ii) [disbursing] distributes political issues expenditures totaling at least $750.
113          (c) Each political issues committee shall deposit each contribution received into one or
114     more separate accounts in a financial institution that are dedicated only to that purpose.
115          (2) (a) Each political issues committee shall designate two officers that have primary
116     decision-making authority for the political issues committee.
117          (b) An individual may not exercise primary decision-making authority for a political
118     issues committee if the individual is not designated under Subsection (2)(a).
119          (3) The statement of organization shall include:
120          (a) the name and street address of the political issues committee;
121          (b) the name, street address, phone number, occupation, and title of the two primary
122     officers designated under Subsection (2);
123          (c) the name, street address, occupation, and title of all other officers of the political
124     issues committee;
125          (d) the name and street address of the organization, individual, corporation,
126     association, unit of government, or union that the political issues committee represents, if any;
127          (e) the name and street address of all affiliated or connected organizations and their
128     relationships to the political issues committee;
129          (f) the name, street address, business address, occupation, and phone number of the
130     committee's treasurer or chief financial officer;
131          (g) the name, street address, and occupation of each member of the supervisory and
132     advisory boards, if any; and
133          (h) the ballot proposition whose outcome they wish to affect, and whether they support
134     or oppose it.
135          (4) (a) [Any] A registered political issues committee that intends to permanently cease
136     operations during a calendar year shall:
137          (i) dispose of all remaining funds by returning the funds to donors or donating the
138     funds to an organization that is exempt from federal income taxation under Section 501(c)(3),
139     Internal Revenue Code; and
140          (ii) after complying with Subsection (4)(a)(i), file a notice of dissolution with the
141     lieutenant governor's office.
142          (b) A political issues committee may not donate money to a political action committee,
143     but may accept a contribution from a political action committee.
144          [(b)] (c) Any notice of dissolution filed by a political issues committee does not
145     exempt that political issues committee from complying with the financial reporting
146     requirements of this chapter in relation to all contributions received, and all expenditures made,
147     before, at, or after dissolution.
148          (d) A political issues committee shall report all money donated or expended under
149     Subsection (4)(a) in a financial report to the lieutenant governor, in accordance with the
150     financial reporting requirements described in this chapter.
151          (5) (a) Unless the political issues committee has filed a notice of dissolution under
152     Subsection (4), a political issues committee shall file, with the lieutenant governor's office,
153     notice of any change of an officer described in Subsection (2).
154          (b) A political issues committee shall:
155          [(b)] (i) [Notice] file a notice of a change of a primary officer described in Subsection
156     [(2) shall:] (2)(a) within 10 days after the day on which the change occurs; and
157          [(i) be filed within 10 days of the date of the change; and]
158          (ii) [contain] include in the notice of change the name and title of the officer being
159     replaced and the name, street address, occupation, and title of the new officer.
160          (6) (a) A person is guilty of providing false information in relation to a political issues
161     committee if the person intentionally or knowingly gives false or misleading material
162     information in the statement of organization or the notice of change of primary officer.
163          (b) Each primary officer designated in Subsection (2)(a) or (5)(b) is guilty of accepting
164     an unlawful contribution if the political issues committee knowingly or recklessly accepts a
165     contribution from a corporation that:
166          (i) was organized less than 90 days before the date of the general election; and
167          (ii) at the time the political issues committee accepts the contribution, has failed to file
168     a statement of organization with the lieutenant governor's office as required by Section
169     20A-11-704.
170          (c) A violation of this Subsection (6) is a third degree felony.