Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 32 (2015GS)

Sponsor

Rep. Draxler, J.

Final action

Governor Signed 3/27/2015

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• defines terms;
• authorizes a municipality to adopt more stringent campaign finance disclosure requirements and definitions;
• clarifies campaign finance filing deadlines;
• authorizes a municipality to adopt more stringent personal use expenditure requirements and definitions;
• prohibits a municipal candidate from making a personal use expenditure;
• provides that a municipality may adopt an ordinance to identify personal use expenditure violations and enforce prohibitions; and
• makes technical and conforming amendments.

Every vote on this bill

Bill text

LOCAL GOVERNMENT DISCLOSURE AND CAMPAIGN
FINANCE AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jack R. Draxler
Senate Sponsor: 
Margaret Dayton
LONG TITLE
General Description:
This bill amends provisions related to municipal candidate campaign finance
disclosures and personal use expenditures.
Highlighted Provisions:
This bill:
▸ defines terms;
▸ authorizes a municipality to adopt more stringent campaign finance disclosure
requirements and definitions; 
▸ clarifies campaign finance filing deadlines;
▸ authorizes a municipality to adopt more stringent personal use expenditure
requirements and definitions;
▸ prohibits a municipal candidate from making a personal use expenditure;
▸ provides that a municipality may adopt an ordinance to identify personal use
expenditure violations and enforce prohibitions; and
▸ makes technical and conforming amendments.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
10-3-208
, as last amended by Laws of Utah 2012, Chapters 190, 190, 230, and 230
ENACTS:
10-3-209
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
10-3-208
 is amended to read:
10-3-208.
Campaign finance disclosure in municipal election.
(1) [
As used in
] 
Unless a municipality adopts by ordinance more stringent definitions,
the following are defined terms for purposes of
 this section:
[
(a) "Reporting date" means:
]
[
(i) 10 days before a municipal general election, for a campaign finance statement
required to be filed no later than seven days before a municipal general election; and
]
[
(ii) the day of filing, for a campaign finance statement required to be filed no later
than 30 days after a municipal primary or general election.
]
(a) "Agent of a candidate" means:
(i) a person acting on behalf of a candidate at the direction of the reporting entity;
(ii) a person employed by a candidate in the candidate's capacity as a candidate;
(iii) the personal campaign committee of a candidate;
(iv) a member of the personal campaign committee of a candidate in the member's
capacity as a member of the personal campaign committee of the candidate; or
(v) a political consultant of a candidate.
(b) (i) "Candidate" means a person who:
(A) files a declaration of candidacy for municipal office; or
(B) receives contributions, makes expenditures, or gives consent for any other person
to receive contributions or make expenditures to bring about the person's nomination or
election to a municipal office.
(ii) "Candidate" does not mean a person who files for the office of judge.
(c) (i) "Contribution" means any of the following when done for political purposes:
(A) a gift, subscription, donation, loan, advance, or deposit of money or anything of
value given to a candidate;
(B) an express, legally enforceable contract, promise, or agreement to make a gift,
subscription, donation, unpaid or partially unpaid loan, advance, or deposit of money or
anything of value to the candidate;
(C) any transfer of funds from another reporting entity to the candidate;
(D) compensation paid by any person or reporting entity other than the candidate for
personal services provided without charge to the candidate;
(E) a loan made by a candidate deposited to the candidate's own campaign; and
(F) an in-kind contribution.
(ii) "Contribution" does not include:
(A) services provided by an individual volunteering a portion or all of the individual's
time on behalf of the candidate if the services are provided without compensation by the
candidate or any other person;
(B) money lent to the candidate by a financial institution in the ordinary course of
business; or
(C) goods or services provided for the benefit of a candidate at less than fair market
value that are not authorized by or coordinated with the candidate.
(d) "Coordinated with" means that goods or services provided for the benefit of a
candidate are provided:
(i) with the candidate's prior knowledge, if the candidate does not object;
(ii) by agreement with the candidate;
(iii) in coordination with the candidate; or
(iv) using official logos, slogans, and similar elements belonging to a candidate.
(e) (i) "Expenditure" means any of the following made by a candidate or an agent of
the candidate on behalf of the candidate:
(A) any disbursement from contributions, receipts, or from an account described in
Subsection (3)(a)(i);
(B) a purchase, payment, donation, distribution, loan, advance, deposit, gift of money,
or anything of value made for political purposes;
(C) an express, legally enforceable contract, promise, or agreement to make any
purchase, payment, donation, distribution, loan, advance, deposit, gift of money, or anything of
value for a political purpose;
(D) compensation paid by a candidate for personal services rendered by a person
without charge to a reporting entity;
(E) a transfer of funds between the candidate and a candidate's personal campaign
committee as defined in Section 
20A-11-101
; or
(F) goods or services provided by a reporting entity to or for the benefit of the
candidate for political purposes at less than fair market value.
(ii) "Expenditure" does not include:
(A) services provided without compensation by an individual volunteering a portion or
all of the individual's time on behalf of a candidate; or
(B) money lent to a candidate by a financial institution in the ordinary course of
business.
(f) "In-kind contribution" means anything of value other than money, that is accepted
by or coordinated with a candidate.
(g) (i) "Political consultant" means a person who is paid by a candidate, or paid by
another person on behalf of and with the knowledge of the candidate, to provide political
advice to the candidate.
(ii) "Political consultant" includes a circumstance described in Subsection (1)(g)(i),
where the person:
(A) has already been paid, with money or other consideration;
(B) expects to be paid in the future, with money or other consideration; or
(C) understands that the person may, in the discretion of the candidate or another
person on behalf of and with the knowledge of the candidate, be paid in the future, with money
or other consideration.
(h) "Political purposes" means an act done with the intent or in a way to influence or
tend to influence, directly or indirectly, any person to refrain from voting or to vote for or
against any candidate or a person seeking a municipal office at any caucus, political
convention, or election.
(i) "Reporting entity" means:
(i) a candidate;
(ii) a committee appointed by a candidate to act for the candidate;
(iii) a person who holds an elected municipal office;
(iv) a party committee as defined in Section 
20A-11-101
;
(v) a political action committee as defined in Section 
20A-11-101
;
(vi) a political issues committee as defined in Section 
20A-11-101
;
(vii) a corporation as defined in Section 
20A-11-101
; or
(viii) a labor organization as defined in Section 
20A-11-1501
.
[
(b)
] 
(j)
 "Reporting limit" means for each calendar year:
(i) $50; or
(ii) an amount lower than $50 that is specified in an ordinance of the municipality.
(2) (a) A municipality may adopt an ordinance establishing campaign finance
disclosure requirements for a candidate that are more stringent than the requirements provided
in Subsections (3) and (4).
(b) The municipality may adopt definitions that are more stringent than those provided
in Subsection (1).
(c) If a municipality fails to adopt a campaign finance disclosure ordinance described
in Subsection (2)(a), a candidate shall comply with financial reporting requirements contained
in Subsections (3) and (4).
[
(2)
] 
(3)
 (a) [
(i)
] Each candidate [
for municipal office
]:
[
(A)
] 
(i)
 shall deposit a [
campaign
] contribution in a separate campaign account in a
financial institution; and
[
(B)
] 
(ii)
 may not deposit or mingle any campaign contributions received into a
personal or business account.
[
(ii)
] 
(b)
 Each candidate [
for municipal office
] who is not eliminated at a municipal
primary election shall file with the municipal clerk or recorder a campaign finance statement:
[
(A)
] 
(i)
 no later than seven days before the [
date of
] 
day on which
 the municipal
general election 
is held
; and
[
(B)
] 
(ii)
 no later than 30 days after the [
date of
] 
day on which
 the municipal general
election 
is held
.
[
(iii)
] 
(c)
 Each candidate for municipal office who is eliminated at a municipal primary
election shall file with the municipal clerk or recorder a campaign finance statement [
no later
than
] 30 days after the [
date of
] 
day on which
 the municipal primary election 
is held
.
[
(b)
] 
(4)
 Each campaign finance statement under Subsection [
(2)(a)
] 
(3)(b) or (c)
 shall:
[
(i)
] 
(a)
 except as provided in Subsection [
(2)(b)(ii)
] 
(4)(b)
:
[
(A)
] 
(i)
 report all of the candidate's itemized and total:
[
(I) campaign
] 
(A)
 contributions, including in-kind and other nonmonetary
contributions, received [
before the close of the reporting date
] 
up to and including five days
before the campaign finance statement is due, excluding a contribution previously reported
;
and
[
(II) campaign
] 
(B)
 expenditures made [
through the close of the reporting date
] 
up to
and including five days before the campaign finance statement is due, excluding an expenditure
previously reported
; and
[
(B)
] 
(ii)
 identify:
[
(I)
] 
(A)
 for each contribution that exceeds the reporting limit, the amount of the
contribution and the name of the donor;
[
(II)
] 
(B)
 the aggregate total of all contributions that individually do not exceed the
reporting limit; and
[
(III)
] 
(C)
 for each [
campaign
] expenditure, the amount of the expenditure and the
name of the recipient of the expenditure; or
[
(ii)
] 
(b)
 report the total amount of all [
campaign
] contributions and expenditures if the
candidate receives $500 or less in [
campaign
] contributions and spends $500 or less on the
candidate's campaign.
[
(3) (a) As used in this Subsection (3), "account" means an account in a financial
institution:
]
[
(i) that is not described in Subsection (2)(a)(i)(A); and
]
[
(ii) into which or from which a person who, as a candidate for an office, other than a
municipal office for which the person files a declaration of candidacy or federal office, or as a
holder of an office, other than a municipal office for which the person files a declaration of
candidacy or federal office, deposits a contribution or makes an expenditure.
]
[
(b) A municipal office candidate shall include on any campaign finance statement
filed in accordance with this section:
]
[
(i) a contribution deposited in an account:
]
[
(A) since the last campaign finance statement was filed; or
]
[
(B) that has not been reported under a statute or ordinance that governs the account;
or
]
[
(ii) an expenditure made from an account:
]
[
(A) since the last campaign finance statement was filed; or
]
[
(B) that has not been reported under a statute or ordinance that governs the account.
]
[
(4)
] 
(5)
 (a) A municipality may, by ordinance:
(i) provide a reporting limit lower than $50;
(ii) require greater disclosure of [
campaign
] contributions [
and
] 
or
 expenditures than is
required in this section; and
(iii) impose additional penalties on candidates who fail to comply with the applicable
requirements beyond those imposed by this section.
(b) A candidate [
for municipal office
] is subject to the provisions of this section and
not the provisions of an ordinance adopted by the municipality under Subsection [
(4)
] 
(5)
(a) if:
(i) the municipal ordinance establishes requirements or penalties that differ from those
established in this section; and
(ii) the municipal clerk or recorder fails to notify the candidate of the provisions of the
ordinance as required in Subsection [
(5)
] 
(6)
.
[
(5)
] 
(6)
 Each municipal clerk or recorder shall, at the time the candidate for municipal
office files a declaration of candidacy, and again 14 days before each municipal general
election, notify the candidate in writing of:
(a) the provisions of statute or municipal ordinance governing the disclosure of
[
campaign
] contributions and expenditures;
(b) the dates when the candidate's campaign finance statement is required to be filed;
and
(c) the penalties that apply for failure to file a timely campaign finance statement,
including the statutory provision that requires removal of the candidate's name from the ballot
for failure to file the required campaign finance statement when required.
[
(6)
] 
(7)
 Notwithstanding any provision of Title 63G, Chapter 2, Government Records
Access and Management Act, the municipal clerk or recorder shall:
(a) make each campaign finance statement filed by a candidate available for public
inspection and copying no later than one business day after the statement is filed; and
(b) make the campaign finance statement filed by a candidate available for public
inspection by:
(i) (A) posting an electronic copy or the contents of the statement on the municipality's
website no later than seven business days after the statement is filed; and
(B) verifying that the address of the municipality's website has been provided to the
lieutenant governor in order to meet the requirements of Subsection 
20A-11-103
(5); or
(ii) submitting a copy of the statement to the lieutenant governor for posting on the
website established by the lieutenant governor under Section 
20A-11-103
 no later than two
business days after the statement is filed.
[
(7)
] 
(8)
 (a) If a candidate fails to file a campaign finance statement before the
municipal general election by the deadline specified in Subsection [
(2)(a)(ii)(A)
] 
(3)(b)(i)
, the
municipal clerk or recorder shall inform the appropriate election official who:
(i) shall:
(A) if practicable, remove the candidate's name from the ballot by blacking out the
candidate's name before the ballots are delivered to voters; or
(B) if removing the candidate's name from the ballot is not practicable, inform the
voters by any practicable method that the candidate has been disqualified and that votes cast for
the candidate will not be counted; and
(ii) may not count any votes for that candidate.
(b) Notwithstanding Subsection [
(7)
] 
(8)
(a), a candidate who files a campaign finance
statement seven days before a municipal general election is not disqualified if:
(i) the statement details accurately and completely the information required under
Subsection [
(2)(b)
] 
(4)
, except for inadvertent omissions or insignificant errors or inaccuracies;
and
(ii) the omissions, errors, or inaccuracies are corrected in an amended report or in the
next scheduled report.
[
(8)
] 
(9)
 A campaign finance statement required under this section is considered filed if
it is received in the municipal clerk or recorder's office by 5 p.m. on the date that [
is it
] 
it is
due.
[
(9)
] 
(10)
 (a) A private party in interest may bring a civil action in district court to
enforce the provisions of this section or an ordinance adopted under this section.
(b) In a civil action under Subsection [
(9)
] 
(10)
(a), the court may award costs and
attorney fees to the prevailing party.
Section 2. Section 
10-3-209
 is enacted to read:
 10-3-209.
Personal use expenditure -- Authorized and prohibited uses of
campaign funds -- Enforcement -- Penalties.
(1) Unless a municipality adopts by ordinance more stringent definitions, the following
are defined terms for the purposes of this section:
(a) "Candidate" means a person who:
(i) files a declaration of candidacy for municipal office; or
(ii) receives contributions, makes expenditures, or gives consent for any other person to
receive contributions or make expenditures to bring about the person's nomination or election
to a public office.
(b) "Officeholder" means a person who is elected to and currently holds a municipal
office.
(c) (i) "Personal use expenditure" means an expenditure that:
(A) is not excluded from the definition of personal use expenditure by Subsection (2)
and primarily furthers a personal interest of a candidate or officeholder or a candidate's or
officeholder's family, which interest is not connected with the performance of an activity as a
candidate or an activity or duty of an officeholder; or
(B) would cause the candidate or officeholder to recognize the expenditure as taxable
income under federal law.
(ii) "Personal use expenditure" includes:
(A) a mortgage, rent, utility, or vehicle payment;
(B) a household food item or supply;
(C) clothing, except for clothing bearing the candidate's name or campaign slogan or
logo and that is used in the candidate's campaign;
(D) an admission to a sporting, artistic, or recreational event or other form of
entertainment;
(E) dues, fees, or gratuities at a country club, health club, or recreational facility;
(F) a salary payment made to a candidate, officeholder, or a person who has not
provided a bona fide service to a candidate or officeholder;
(G) a vacation;
(H) a vehicle expense;
(I) a meal expense;
(J) a travel expense;
(K) a payment of an administrative, civil, or criminal penalty;
(L) a satisfaction of a personal debt;
(M) a personal service, including the service of an attorney, accountant, physician, or
other professional person;
(N) a membership fee for a professional or service organization; and
(O) a payment in excess of the fair market value of the item or service purchased.
(2) As used in this section, "personal use expenditure" does not mean an expenditure
made:
(a) for a political purpose;
(b) for candidacy for public office;
(c) to fulfill a duty or activity of an officeholder;
(d) for a donation to a registered political party;
(e) for a contribution to another candidate's campaign account, including sponsorship
of or attendance at an event, the primary purpose of which is to solicit a contribution for
another candidate's campaign account;
(f) to return all or a portion of a contribution to a donor;
(g) for the following items, if made in connection with the candidacy for public office
or an activity or duty of an officeholder:
(i) (A) a mileage allowance at the rate established by the Division of Finance under
Section 
63A-3-107
; or
(B) for motor fuel or special fuel, as defined in Section 
59-13-102
;
(ii) a meal expense;
(iii) a travel expense, including an expense incurred for airfare or a rental vehicle;
(iv) a payment for a service provided by an attorney or accountant;
(v) a tuition payment or registration fee for participation in a meeting or conference;
(vi) a gift;
(vii) a payment for the following items in connection with an office space:
(A) rent;
(B) utilities;
(C) a supply; or
(D) furnishing;
(viii) a booth at a meeting or event; or
(ix) educational material;
(h) to purchase or mail informational material, a survey, or a greeting card;
(i) for a donation to a charitable organization, as defined by Section 
13-22-2
, including
admission to or sponsorship of an event, the primary purpose of which is charitable solicitation,
as defined in Section 
13-22-2
;
(j) to repay a loan a candidate makes from the candidate's personal account to the
candidate's campaign account;
(k) to pay membership dues to a national organization whose primary purpose is to
address general public policy;
(l) for admission to or sponsorship of an event, the primary purpose of which is to
promote the social, educational, or economic well-being of the state or the candidate's or
officeholder's community; or
(m) for one or more guests of an officeholder or candidate to attend an event, meeting,
or conference described in this Subsection (2).
(3) (a) A municipality may adopt an ordinance prohibiting a personal use expenditure
by a candidate with requirements that are more stringent than the requirements provided in
Subsection (4).
(b) The municipality may adopt definitions that are more stringent than those provided
in Subsection (1) or (2).
(c) If a municipality fails to adopt a personal use expenditure ordinance described in
Subsection (3)(a), a candidate shall comply with the requirements contained in Subsection (4).
(4) A candidate or an officeholder may not use money deposited into a campaign
account for:
(a) a personal use expenditure; or
(b) an expenditure prohibited by law.
(5) A municipality may enforce this section by adopting an ordinance:
(a) to provide for the evaluation of a campaign finance statement to identify a personal
use expenditure; and
(b) to commence informal adjudicative proceedings if, after an evaluation described in
Subsection (5)(a), there is probable cause to believe that a candidate or officeholder has made a
personal use expenditure.
(6) If, in accordance with the proceedings described in Subsection (5)(b) established in
municipal ordinance, a municipality determines that a candidate or officeholder has made a
personal use expenditure, the municipality:
(a) may require the candidate or officeholder to:
(i) remit an administrative penalty of an amount equal to 50% of the personal use
expenditure to the municipality; and
(ii) deposit the amount of the personal use expenditure into the campaign account from
which the personal use expenditure was disbursed; and
(b) shall deposit the money received under Subsection (6)(a)(i) into the municipal
general fund.