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H.B. 301
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CAMPAIGN FINANCE REFORM AMENDMENTS
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2000 GENERAL SESSION
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STATE OF UTAH
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Sponsor: Ralph Becker
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David Ure
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AN ACT RELATING TO THE ELECTION CODE; MODIFYING CERTAIN REQUIREMENTS
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GOVERNING THE USE AND DISPOSITION OF CAMPAIGN FUNDS; AND MAKING
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TECHNICAL CORRECTIONS.
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This act affects sections of Utah Code Annotated 1953 as follows:
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AMENDS:
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20A-11-101, as last amended by Chapters 45 and 93, Laws of Utah 1999
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20A-11-201, as last amended by Chapter 355, Laws of Utah 1997
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20A-11-301, as last amended by Chapter 355, Laws of Utah 1997
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20A-11-402, as last amended by Chapter 355, Laws of Utah 1997
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
20A-11-101
is amended to read:
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20A-11-101. Definitions.
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As used in this chapter:
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(1) "Address" means the number and street where an individual resides or where a
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reporting entity has its principal office.
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(2) "Ballot proposition" includes initiatives, referenda, proposed constitutional
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amendments, and any other ballot propositions submitted to the voters that are authorized by the
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Utah Code Annotated 1953.
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(3) "Candidate" means any person who:
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(a) files a declaration of candidacy for a public office; or
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(b) receives contributions, makes expenditures, or gives consent for any other person to
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receive contributions or make expenditures to bring about the person's nomination or election to
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a public office.
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(4) "Chief election officer" means:
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(a) the lieutenant governor for state office candidates, legislative office candidates,
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officeholders, political parties, political action committees, corporations, political issues
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committees, and state school board candidates; and
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(b) the county clerk for local school board candidates.
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(5) "Continuing political party" means an organization of voters that participated in the last
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regular general election and polled a total vote equal to 2% or more of the total votes cast for all
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candidates for the United States House of Representatives.
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(6) (a) "Contribution" means any of the following when done for political purposes:
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(i) a gift, subscription, donation, loan, advance, or deposit of money or anything of value
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given to the filing entity;
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(ii) an express, legally enforceable contract, promise, or agreement to make a gift,
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subscription, donation, unpaid or partially unpaid loan, advance, or deposit of money or anything
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of value to the filing entity;
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(iii) any transfer of funds from another reporting entity or a corporation to the filing entity;
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(iv) compensation paid by any person or reporting entity other than the filing entity for
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personal services provided without charge to the filing entity;
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(v) remuneration from any organization or its directly affiliated organization that has a
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registered lobbyist to compensate a legislator for a loss of salary or income while the Legislature
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is in session;
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(vi) salaries or other remuneration paid to a legislator by any agency or subdivision of the
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state, including school districts, for the period the Legislature is in session; and
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(vii) goods or services provided to or for the benefit of the filing entity at less than fair
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market value.
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(b) "Contribution" does not include:
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(i) services provided without compensation by individuals volunteering a portion or all of
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their time on behalf of the filing entity; or
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(ii) money lent to the filing entity by a financial institution in the ordinary course of
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business.
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(7) (a) "Corporation" means a domestic or foreign, profit or nonprofit, business
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organization that is registered as a corporation or is authorized to do business in a state and makes
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any expenditure from corporate funds for:
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(i) political purposes; or
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(ii) the purpose of influencing the approval or the defeat of any ballot proposition.
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(b) "Corporation" does not mean:
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(i) a business organization's political action committee or political issues committee; or
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(ii) a business entity organized as a partnership or a sole proprietorship.
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(8) "Detailed listing" means:
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(a) for each contribution or public service assistance:
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(i) the name and address of the individual or source making the contribution or public
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service assistance;
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(ii) the amount or value of the contribution or public service assistance; and
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(iii) the date the contribution or public service assistance was made; and
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(b) for each expenditure:
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(i) the amount of the expenditure;
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(ii) the person or entity to whom it was disbursed;
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(iii) the specific purpose, item, or service acquired by the expenditure; and
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(iv) the date the expenditure was made.
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(9) "Election" means each:
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(a) regular general election;
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(b) regular primary election; and
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(c) special election at which candidates are eliminated and selected.
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(10) (a) "Expenditure" means:
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(i) any disbursement from contributions, receipts, or from the separate bank account
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required by this chapter;
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(ii) a purchase, payment, donation, distribution, loan, advance, deposit, gift of money, or
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anything of value made for political purposes;
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(iii) an express, legally enforceable contract, promise, or agreement to make any purchase,
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payment, donation, distribution, loan, advance, deposit, gift of money, or anything of value for
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political purposes;
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(iv) compensation paid by a corporation or filing entity for personal services rendered by
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a person without charge to a reporting entity;
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(v) a transfer of funds between the filing entity and a candidate's personal campaign
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committee; or
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(vi) goods or services provided by the filing entity to or for the benefit of another reporting
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entity for political purposes at less than fair market value.
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(b) "Expenditure" does not include:
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(i) services provided without compensation by individuals volunteering a portion or all of
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their time on behalf of a reporting entity;
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(ii) money lent to a reporting entity by a financial institution in the ordinary course of
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business; or
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(iii) anything listed in Subsection (5)(a) that is given by a corporation or reporting entity
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to candidates for office or officeholders in states other than Utah.
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(11) "Filing entity" means the reporting entity that is filing a report required by this
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chapter.
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(12) "Financial statement" includes any summary report, interim report, or other statement
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disclosing contributions, expenditures, receipts, donations, or disbursements that is required by this
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chapter.
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(13) "Governing board" means the individual or group of individuals that determine the
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candidates and committees that will receive expenditures from a political action committee.
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(14) "Incorporation" means the process established by Title 10, Chapter 2, Part 1,
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Incorporation, by which a geographical area becomes legally recognized as a city or town.
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(15) "Incorporation election" means the election authorized by Section
10-2-111
.
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(16) "Incorporation petition" means a petition authorized by Section
10-2-109
.
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(17) "Individual" means a natural person.
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(18) "Interim report" means a report identifying the contributions received and
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expenditures made since the last report.
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(19) "Legislative office" means the office of state senator, state representative, speaker of
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the House of Representatives, president of the Senate, and the leader, whip, and assistant whip of
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any party caucus in either house of the Legislature.
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(20) "Legislative office candidate" means a person who:
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(a) files a declaration of candidacy for the office of state senator or state representative;
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(b) declares himself to be a candidate for, or actively campaigns for, the position of
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speaker of the House of Representatives, president of the Senate, or the leader, whip, and assistant
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whip of any party caucus in either house of the Legislature; and
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(c) receives contributions, makes expenditures, or gives consent for any other person to
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receive contributions or make expenditures to bring about the person's nomination or election to
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a legislative office.
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(21) "Newly registered political party" means an organization of voters that has complied
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with the petition and organizing procedures of this chapter to become a registered political party.
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(22) "Officeholder" means a person who holds a public office.
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(23) "Party committee" means any committee organized by or authorized by the governing
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board of a registered political party.
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(24) "Person" means both natural and legal persons, including individuals, business
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organizations, personal campaign committees, party committees, political action committees,
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political issues committees, labor unions, and labor organizations.
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(25) "Personal campaign committee" means the committee appointed by a candidate to act
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for the candidate as provided in this chapter.
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(26) (a) "Personal use" means an expenditure that provides a direct or indirect benefit of
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any kind to a candidate, legislative office candidate, or officeholder that is not reasonably related
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to political purposes.
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(b) "Personal use" does not mean an expenditure for political purposes.
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[(26)] (27) (a) "Political action committee" means an entity, or any group of individuals
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or entities within or outside this state, that solicits or receives contributions from any other person,
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group, or entity or makes expenditures for political purposes. A group or entity may not divide or
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separate into units, sections, or smaller groups for the purpose of avoiding the financial reporting
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requirements of this chapter, and substance shall prevail over form in determining the scope or size
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of a political action committee.
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(b) "Political action committee" includes groups affiliated with a registered political party
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but not authorized or organized by the governing board of the registered political party that receive
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contributions or makes expenditures for political purposes.
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(c) "Political action committee" does not mean:
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(i) a party committee;
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(ii) any entity that provides goods or services to a candidate or committee in the regular
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course of its business at the same price that would be provided to the general public;
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(iii) an individual;
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(iv) individuals who are related and who make contributions from a joint checking
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account;
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(v) a corporation; or
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(vi) a personal campaign committee.
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[(27)] (28) "Political convention" means a county or state political convention held by a
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registered political party to select candidates.
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[(28)] (29) (a) "Political issues committee" means an entity, or any group of individuals
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or entities within or outside this state, that solicits or receives donations from any other person,
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group, or entity or makes disbursements to influence, or to intend to influence, directly or
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indirectly, any person to:
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(i) assist in placing a statewide ballot proposition on the ballot, assist in keeping a
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statewide ballot proposition off the ballot, or refrain from voting or vote for or vote against any
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statewide ballot proposition; or
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(ii) sign or refuse to sign an incorporation petition or refrain from voting, vote for, or vote
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against any proposed incorporation in an incorporation election.
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(b) "Political issues committee" does not mean:
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(i) a registered political party or a party committee;
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(ii) any entity that provides goods or services to an individual or committee in the regular
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course of its business at the same price that would be provided to the general public;
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(iii) an individual;
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(iv) individuals who are related and who make contributions from a joint checking
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account; or
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(v) a corporation, except a corporation whose apparent purpose is to act as a political
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issues committee.
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[(29)] (30) (a) "Political issues contribution" means any of the following:
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(i) a gift, subscription, unpaid or partially unpaid loan, advance, or deposit of money or
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anything of value given to a political issues committee;
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(ii) an express, legally enforceable contract, promise, or agreement to make a political
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issues donation to influence the approval or defeat of any ballot proposition;
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(iii) any transfer of funds received by a political issues committee from a reporting entity;
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(iv) compensation paid by another reporting entity for personal services rendered without
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charge to a political issues committee; and
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(v) goods or services provided to or for the benefit of a political issues committee at less
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than fair market value.
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(b) "Political issues contribution" does not include:
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(i) services provided without compensation by individuals volunteering a portion or all of
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their time on behalf of a political issues committee; or
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(ii) money lent to a political issues committee by a financial institution in the ordinary
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course of business.
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[(30)] (31) (a) "Political issues expenditure" means any of the following:
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(i) any payment from political issues contributions made for the purpose of influencing the
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approval or the defeat of a statewide ballot proposition;
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(ii) a purchase, payment, distribution, loan, advance, deposit, or gift of money made for
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the purpose of influencing the approval or the defeat of a statewide ballot proposition;
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(iii) an express, legally enforceable contract, promise, or agreement to make any political
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issues expenditure;
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(iv) compensation paid by a reporting entity for personal services rendered by a person
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without charge to a political issues committee; or
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(v) goods or services provided to or for the benefit of another reporting entity at less than
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fair market value.
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(b) "Political issues expenditure" does not include:
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(i) services provided without compensation by individuals volunteering a portion or all of
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their time on behalf of a political issues committee; or
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(ii) money lent to a political issues committee by a financial institution in the ordinary
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course of business.
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[(31)] (32) "Political purposes" means an act done with the intent or in a way to influence
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or tend to influence, directly or indirectly, any person to refrain from voting or to vote for or
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against any candidate for public office at any caucus, political convention, primary, or election.
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[(32)] (33) "Primary election" means any regular primary election held under the election
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laws.
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[(33)] (34) "Public office" means the office of governor, lieutenant governor, state auditor,
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state treasurer, attorney general, state or local school board member, state senator, state
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representative, speaker of the House of Representatives, president of the Senate, and the leader,
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whip, and assistant whip of any party caucus in either house of the Legislature.
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[(34)] (35) (a) "Public service assistance" means the following when given or provided to
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an officeholder to defray the costs of functioning in a public office or aid the officeholder to
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communicate with the officeholder's constituents:
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(i) a gift, subscription, donation, unpaid or partially unpaid loan, advance, or deposit of
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money or anything of value to an officeholder; or
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(ii) goods or services provided at less than fair market value to or for the benefit of the
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officeholder.
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(b) "Public service assistance" does not include:
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(i) anything provided by the state;
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(ii) services provided without compensation by individuals volunteering a portion or all
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of their time on behalf of an officeholder;
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(iii) money lent to an officeholder by a financial institution in the ordinary course of
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business;
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(iv) news coverage or any publication by the news media; or
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(v) any article, story, or other coverage as part of any regular publication of any
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organization unless substantially all the publication is devoted to information about the
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officeholder.
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[(35)] (36) "Publicly identified class of individuals" means a group of 50 or more
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individuals sharing a common occupation, interest, or association that contribute to a political
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action committee or political issues committee and whose names can be obtained by contacting
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the political action committee or political issues committee upon whose financial report they are
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listed.
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[(36)] (37) "Receipts" means contributions and public service assistance.
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[(37)] (38) "Registered lobbyist" means a person registered under Title 36, Chapter 11,
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Lobbyist Disclosure and Regulation Act.
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[(38)] (39) "Registered political action committee" means any political action committee
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that is required by this chapter to file a statement of organization with the lieutenant governor's
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office.
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[(39)] (40) "Registered political issues committee" means any political issues committee
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that is required by this chapter to file a statement of organization with the lieutenant governor's
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office.
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[(40)] (41) "Registered political party" means an organization of voters that:
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(a) participated in the last regular general election and polled a total vote equal to 2% or
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more of the total votes cast for all candidates for the United States House of Representatives for
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any of its candidates for any office; or
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(b) has complied with the petition and organizing procedures of this chapter.
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[(41)] (42) "Report" means a verified financial statement.
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[(42)] (43) "Reporting entity" means a candidate, a candidate's personal campaign
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committee, an officeholder, and a party committee, a political action committee, and a political
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issues committee.
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[(43)] (44) "School board office" means the office of state school board or local school
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board.
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[(44)] (45) (a) "Source" means the person or entity that is the legal owner of the tangible
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or intangible asset that comprises the contribution.
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(b) "Source" means, for political action committees and corporations, the political action
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committee and the corporation as entities, not the contributors to the political action committee or
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the owners or shareholders of the corporation.
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[(45)] (46) "State office" means the offices of governor, lieutenant governor, attorney
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general, state auditor, and state treasurer.
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[(46)] (47) "State office candidate" means a person who:
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(a) files a declaration of candidacy for a state office; or
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(b) receives contributions, makes expenditures, or gives consent for any other person to
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receive contributions or make expenditures to bring about the person's nomination or election to
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a state office.
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[(47)] (48) "Summary report" means the year end report containing the summary of a
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reporting entity's contributions and expenditures.
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[(48)] (49) "Supervisory board" means the individual or group of individuals that allocate
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expenditures from a political issues committee.
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Section 2.
Section
20A-11-201
is amended to read:
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20A-11-201. State office candidate -- Separate bank account for campaign funds.
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(1) (a) Each state office candidate or the candidate's personal campaign committee shall
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deposit each contribution and public service assistance received in one or more separate campaign
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accounts in a financial institution.
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(b) (i) The state office candidate or the candidate's personal campaign committee may use
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the monies in those accounts only for political purposes.
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(ii) The state office candidate or the candidate's personal committee may not use the
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monies in those accounts for personal use.
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(2) A state office candidate or the candidate's personal campaign committee may not
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deposit or mingle any contributions received into a personal or business account.
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(3) (a) If a person [who] withdraws or is eliminated in a convention, primary, or regular
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general election, or is no longer a state office candidate [chooses not to expend the monies
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remaining in his campaign account], the person shall, within 60 calendar days of the date of
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withdrawal or elimination, dispose of monies remaining in the person's campaign account by:
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(i) donating the monies to a registered political party or political action committee;
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(ii) donating the monies to the state general fund;
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(iii) expending the monies for political purposes;
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(iv) donating the monies to a tax-exempt nonprofit entity;
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(v) repaying documented loans to the state office candidate's campaign;
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(vi) donating the monies to another candidate's campaign account;
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(vii) transferring the monies to an escrow account for the person to use as a candidate for
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public office within the next four years; or
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(viii) some combination of Subsections (4)(a)(i) through (vii).
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(b) After four years, if the person has not run for public office, the person shall expend the
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monies in the escrow account according to the requirements of Subsection (3)(a).
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(4) The person shall continue to file the year-end summary report required by Section
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20A-11-203
until the statement of dissolution and final summary report required by Section
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20A-11-205
are filed with the lieutenant governor.
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Section 3.
Section
20A-11-301
is amended to read:
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20A-11-301. Legislative office candidate -- Campaign requirements.
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(1) Each legislative office candidate shall deposit each contribution and public service
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assistance received in one or more separate accounts in a financial institution that are dedicated
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only to that purpose.
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(2) A legislative office candidate may not deposit or mingle any contributions or public
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service assistance received into a personal or business account.
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(3) (a) A legislative office candidate may not make any political expenditures prohibited
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by law.
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(b) A legislative office candidate may not use monies in the accounts required by this
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section for personal use.
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(4) (a) If a person [who] withdraws or is eliminated in a convention, primary, or regular
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general election, or is no longer a legislative candidate [chooses not to expend the monies
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remaining in his campaign account], the person shall, within 60 calendar days of the date of the
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withdrawal or elimination, dispose of monies remaining in the person's campaign account by:
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(i) donating the monies to a registered political party or political action committee;
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(ii) donating the monies to the state general fund;
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(iii) expending the monies for political purposes;
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(iv) donating the monies to a tax-exempt nonprofit entity;
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(v) repaying documented loans to the legislative candidate's campaign;
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(vi) donating the monies to another candidate's campaign account;
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(vii) transferring the monies to an escrow account for the person to use as a candidate for
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public office within the next four years; or
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(viii) some combination of Subsections (4)(a)(i) through (vii).
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(b) After four years, if the person has not run for public office, the person shall expend the
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monies in the escrow account according to the requirements of Subsection (4)(a).
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(5) The person shall continue to file the year-end summary report required by Section
333
20A-11-302
until the statement of dissolution and final summary report required by Section
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20A-11-304
are filed with the lieutenant governor.
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Section 4.
Section
20A-11-402
is amended to read:
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20A-11-402. Officeholder financial reporting requirements -- Termination of duty
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to report.
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(1) An officeholder is active and subject to reporting requirements until the officeholder
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has filed a statement of dissolution with the lieutenant governor stating that:
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(a) the officeholder is no longer receiving contributions or public service assistance and
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is no longer making expenditures;
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(b) the ending balance on the last summary report filed is zero and the balance in the
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separate bank account required by Sections
20A-11-201
and
20A-11-301
is zero; and
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(c) a final summary report in the form required by Section
20A-11-401
showing a zero
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balance is attached to the statement of dissolution.
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(2) A statement of dissolution and a final summary report may be filed at any time.
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(3) Each officeholder shall continue to file the year-end summary report required by
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Section
20A-11-401
until the statement of dissolution and final summary report required by this
349
section are filed with the lieutenant governor.
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(4) (a) When an officeholder leaves office, the person shall, within 60 calendar days of
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leaving office, dispose of monies remaining in the person's campaign accounts required by
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Sections
20A-11-201
and
20A-11-301
by:
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(i) donating the monies to a registered political party or political action committee;
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(ii) donating the monies to the state general fund;
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(iii) expending the monies for political purposes;
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(iv) donating the monies to a tax-exempt nonprofit entity;
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(v) repaying documented loans to the officeholder's campaign;
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(vi) donating the monies to another candidate's campaign account;
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(vii) transferring the monies to an escrow account for the person to use as a candidate for
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public office within the next four years; or
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(viii) some combination of Subsections (4)(a)(i) through (vii).
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(b) After four years, if the person has not run for public office, the person shall expend the
363
monies in the escrow account according to the requirements of Subsection (4)(a).
Legislative Review Note
as of 2-9-00 9:05 AM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.