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7 LONG TITLE
8 General Description:
9 This bill modifies the Lobbyist Disclosure and Regulation Act and a reporting section
10 of the Election Code.
11 Highlighted Provisions:
12 This bill:
13 . provides and modifies definitions;
14 . requires political action committees to file a yearly organizational statement;
15 . removes reporting exemptions from certain travel, lodging, and meal expenses;
16 . provides that public officials, elected officials of local governments, and certain
17 state employees are subject to lobbyist disclosure regulations;
18 . requires that financial expenditure reports be filed quarterly;
19 . requires that certain details be reported on expenditures over $5;
20 . provides that single expenses in the amount of $5 or less are not required to be
21 reported unless they are combined with other expenses;
22 . establishes conflict of interest standards for lobbyists; and
23 . makes technical changes.
24 Monies Appropriated in this Bill:
26 Other Special Clauses:
28 Utah Code Sections Affected:
30 20A-11-601, as enacted by Chapter 1, Laws of Utah 1995
31 36-11-102, as last amended by Chapter 13, Laws of Utah 1998
32 36-11-201, as last amended by Chapter 27, Laws of Utah 2003
34 36-11-306, Utah Code Annotated 1953
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.
39 (1) (a) Each political action committee shall file a statement of organization with the
40 lieutenant governor's office on January 10 of each year, unless the political action committee
41 has filed a notice of dissolution under Subsection (3).
42 (b) If a political action committee is organized after the January 10 filing date, the
43 political action committee shall file an initial statement of organization no later than seven
44 calendar days after:
48 (c) If January 10 falls on a weekend or holiday, the statement of organization shall be
49 due on the following business day.
50 (2) The statement of organization shall include:
51 (a) the name and address of the political action committee;
52 (b) the name, address, occupation, and title of each officer;
53 (c) the name and address of the organization, individual corporation, association, unit
54 of government, or union that the political action committee represents, if any;
55 (d) the name and address of all affiliated or connected organizations and their
56 relationships to the political action committee;
57 (e) the name, address, business address, occupation, and phone number of the
58 committee's treasurer or chief financial officer; and
59 (f) the name, address, and occupation of each member of the governing board, if any.
60 (3) (a) Any registered political action committee that intends to permanently cease
61 operations shall file a notice of dissolution with the lieutenant governor's office.
62 (b) Any notice of dissolution filed by a political action committee does not exempt that
63 political action committee from complying with the financial reporting requirements of this
65 Section 2. Section 36-11-102 is amended to read:
66 36-11-102. Definitions.
67 As used in this chapter:
68 (1) "Aggregate daily expenditures" means the total expenditures made within a 24-hour
70 (2) "Executive action" means:
71 (a) nominations and appointments by the governor;
72 (b) the proposal, drafting, amendment, enactment, or defeat by a state agency of any
73 rule made in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act; and
74 (c) agency ratemaking proceedings.
75 (3) (a) "Expenditure" means any of the items listed in this subsection when given to or
76 for the benefit of a public official or his immediate family:
77 (i) a purchase, payment, distribution, loan, gift, advance, deposit, subscription,
78 forbearance, services, or goods, unless consideration of equal or greater value is received; and
79 (ii) a contract, promise, or agreement, whether or not legally enforceable, to provide
80 any of the items listed in Subsection (3)(a)(i).
81 (b) "Expenditure" does not mean:
82 (i) a commercially reasonable loan made in the ordinary course of business;
83 (ii) a campaign contribution reported in accordance with Title 20A, Chapter 11,
85 (iii) printed informational material;
86 (iv) a devise or inheritance;
87 (v) any item listed in Subsection (3)(a) if given by a relative;
88 (vi) a modest item of food or refreshment such as a beverage or pastry offered other
89 than as part of a meal, the value of which does not exceed $5;
90 (vii) a greeting card or other item of little intrinsic value that is intended solely for
91 presentation; or
92 (viii) plaques, commendations, or awards[
98 (4) (a) "Government officer" means:
99 (i) an individual elected to a position in state or local government, when acting within
100 his official capacity; or
101 (ii) an individual appointed to or employed in a full-time position by state or local
102 government, when acting within the scope of his employment.
103 (b) "Government officer" does not mean a member of the legislative branch of state
105 (5) "Immediate family" means a spouse, a child residing in the household, or an
106 individual claimed as a dependent for tax purposes.
107 (6) "Interested person" means an individual defined in Subsections (9)(b)(ii) and
109 (7) "Legislative action" means:
110 (a) bills, resolutions, amendments, nominations, and other matters pending or proposed
111 in either house of the Legislature or its committees or requested by a legislator; and
112 (b) the action of the governor in approving or vetoing legislation.
113 (8) "Lobbying" means communicating with a public official for the purpose of
114 influencing the passage, defeat, amendment, or postponement of legislative or executive action.
115 (9) (a) "Lobbyist" means:
116 (i) an individual who is employed by a principal; or
117 (ii) an individual who contracts for economic consideration, other than reimbursement
118 for reasonable travel expenses, with a principal to lobby a public official.
119 (b) "Lobbyist" does not include:
122 (i) a member or employee of the legislative branch of government;
123 (ii) any person appearing at, or providing written comments to, a hearing conducted in
124 accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act or Title 63,
125 Chapter 46b, Administrative Procedures Act;
126 (iii) any person participating on or appearing before an advisory or study task force,
127 commission, board, or committee, constituted by the Legislature or any agency or department
128 of state government, except legislative standing, appropriation, or interim committees;
129 (iv) a representative of a political party;
130 (v) an individual representing a bona fide church solely for the purpose of protecting
131 the right to practice the religious doctrines of the church unless the individual or church makes
132 an expenditure that confers a benefit on a public official;
133 (vi) a newspaper, television station or network, radio station or network, periodical of
134 general circulation, or book publisher for the purpose of publishing news items, editorials,
135 other comments, or paid advertisements that directly or indirectly urge legislative or executive
136 action; or
141 Legislature or an executive branch agency solely for the purpose of testifying in support of or
142 in opposition to legislative or executive action.
143 (10) "Person" includes individuals, bodies politic and corporate, partnerships,
144 associations, and companies.
145 (11) "Principal" means a person who employs [
146 lobbying either as an employee or as an independent contractor.
147 (12) "Public official" means:
148 (a) a member of the Legislature;
149 (b) an individual elected to a position in the executive branch; or
150 (c) an individual appointed to or employed in the executive or legislative branch if that
152 (i) occupies a policymaking position or makes purchasing or contracting decisions;
153 (ii) drafts legislation or makes rules;
154 (iii) determines rates or fees; or
155 (iv) makes adjudicative decisions.
156 (13) "Quarterly reporting period" means the three-month period covered by each
157 financial report required under Subsection 36-11-201 (2)(a)(i).
159 knowingly and intentionally assists a lobbyist, principal, or government officer in lobbying.
161 sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, first cousin, or
162 spouse of any of these individuals.
163 Section 3. Section 36-11-201 is amended to read:
164 36-11-201. Lobbyist, principal, and government officer financial reporting
165 requirements -- Prohibition for related person to make expenditures.
166 (1) As used in this section, "public official type" means a notation to identify whether
167 the public official is:
168 (a) a member of the legislature;
169 (b) an individual elected to a position in the executive branch;
170 (c) an individual appointed to or employed in a position in the legislative branch who
171 meets the definition of public official in Section 36-11-102 ; or
172 (d) an individual appointed to or employed in a position in the executive branch who
173 meets the definition of public official in Section 36-11-102 .
174 (2) (a) (i) Each lobbyist, principal, and government officer that makes an expenditure
175 during any of the following quarterly reporting periods shall file [
176 financial report with the lieutenant governor on [
178 (A) April 10, for the period of November 1 through March 31;
179 (B) July 10, for the period of April 1 through June 30;
180 (C) October 10, for the period of July 1 through September 30; and
181 (D) January 10, for the period of October 1 through December 31 of the previous year.
182 (ii) If the due date for a financial report falls on a Saturday, Sunday, or legal holiday,
183 the report shall be considered to be due on the next succeeding business day [
185 (iii) The report shall be considered timely filed if postmarked on its due date.
187 members of their immediate families as provided in this section.
189 financial report whether or not the lobbyist has made [
192 (B) If the lobbyist has made no expenditures during the quarterly reporting period, the
193 lobbyist shall file a quarterly financial report listing the amount of expenditures as "none."
194 (C) The report shall be filed in accordance with the dates specified under Subsections
195 (2)(a)(i) and (ii).
196 (b) The [
197 (i) (A) the total amount of expenditures made to benefit public officials during the last
199 (B) the total amount of expenditures made to benefit public officials by public official
200 type during the last [
201 (ii) (A) the total travel expenditures that the lobbyist, principal, or government officer
202 made to benefit public officials and their immediate families during the [
203 quarterly reporting period; and
204 (B) the total travel expenditures that the lobbyist, principal, or government officer
205 made to benefit public officials and their immediate families, by public official type, during the
206 last [
207 (C) a travel expenditure statement that:
208 (I) describes the destination of each trip and its purpose;
209 (II) identifies the total amount of expenditures made to benefit each public official and
210 members of the public official's immediate family for each trip;
211 (III) names all individuals that took each trip;
212 (IV) identifies the public official type to which each public official belongs;
213 (V) provides the name and address of the organization that sponsored each trip; and
214 (VI) identifies specific expenditures for food, lodging, gifts, and sidetrips;
215 (iii) except as specified under Subsection (2)(b)(iv) regarding expenditures for food or
216 beverage, for each aggregate daily [
217 reporting period to benefit a public [
218 public official's immediate [
219 not otherwise reportable under Subsection (2)(b)(ii):
229 family who attended the event or activity or received the benefit of the expenditure;
232 member of the public official's immediate family by the lobbyist, principal, or government
233 officer filing the financial report;
234 (iv) (A) for each aggregate daily expenditure for food or beverage made during the
235 quarterly reporting period to benefit a public official or a member of a public official's
236 immediate family in an amount exceeding $5 per person, but not exceeding $50 per person:
237 (I) the date of the expenditure;
238 (II) the purpose of the expenditure;
239 (III) the public official type to which each public official belongs; and
240 (IV) the total monetary worth of the benefit conferred on the public official or member
241 of the public official's immediate family; and
242 (B) each aggregate daily expenditure for food or beverage that exceeds $50 per person
243 shall be reported under Subsection (2)(b)(iii);
245 government officer or who performed work as an independent contractor for the lobbyist,
246 principal, or government officer during the last year that details the nature of the employment
247 or contract;
249 lobbyist, principal, or government officer made an expenditure to a public official for which a
250 report is required by this section, if any;
252 principal, or government officer made an expenditure to a public official for which a report is
253 required by this section, if any; and
255 organizations that the lobbyist, principal, or government officer filing the report represents.
256 (c) In reporting expenditures under this section for events to which all legislators are
257 invited, each lobbyist, principal, and government officer:
258 (i) may not divide the cost of the event by the number of legislators who actually attend
259 the event and report that cost as an expenditure made to those legislators;
260 (ii) shall divide the total cost by the total number of Utah legislators and others invited
261 to the event and report that quotient as the amount expended for each legislator who actually
262 attended the event; and
263 (iii) may not report any expenditure as made to a legislator who did not attend the
265 (3) (a) As used in this Subsection (3):
266 (i) "Lobbyist group" means two or more lobbyists, principals, government officers,
268 a portion of an expenditure made to benefit a public official or member of his immediate
270 (ii) "Multiclient lobbyist" means a single lobbyist, principal, or government officer
271 who represents two or more clients and divides the aggregate daily expenditure made to benefit
272 a public official or member of his immediate family between two or more of those clients.
273 (b) When a lobbyist group combines to make aggregate daily expenditures to benefit
274 public officials or members of their immediate families, and the total aggregate daily
275 expenditure of the lobbyist group exceeds [
276 group shall disclose on the reports required by this section:
277 (i) the date, location, and purpose of the event, activity, or expenditure;
278 (ii) the name of the public official or member of the public official's immediate family
279 who attended the event or activity or received the benefit of the expenditure;
280 (iii) the public official type to which each public official belongs;
281 (iv) the total monetary worth of the benefit conferred on the public official or member
282 of the public official's immediate family by the lobbyist group [
283 (v) the total monetary worth of the benefit conferred upon the public official or
284 member of the public official's immediate family by the lobbyist, principal, or government
285 officer filing the financial report;
287 lobbyist, principal, or government officer made an expenditure to a public official for which a
288 report is required by this section, if any;
290 principal, or government officer made an expenditure to a public official for which a report is
291 required by this section, if any; and
293 organizations that the lobbyist, principal, or government officer filing the report represents.
294 (c) When a multiclient lobbyist makes aggregate daily expenditures to benefit public
295 officials or members of their immediate families, and the sum of the total aggregate daily
296 expenditure for all of the lobbyist's clients exceeds [
297 member, the multiclient lobbyist shall, for each client, disclose on the reports required by this
299 (i) the date, location, and purpose of the event, activity, or expenditure;
300 (ii) the name of the public official or member of the public official's immediate family
301 who attended the event or activity or received the benefit of the expenditure;
302 (iii) the public official type to which each public official belongs;
303 (iv) the total monetary worth of the benefit conferred on the public official or member
304 of the public official's immediate family by all clients [
305 (v) the total monetary worth of the benefit conferred on the public official or member
306 of the public official's immediate family by the client upon whose behalf the report is filed;
308 lobbyist, principal, or government officer made an expenditure to a public official for which a
309 report is required by this section, if any;
311 principal, or government officer made an expenditure to a public official for which a report is
312 required by this section, if any; and
314 organizations that the lobbyist, principal, or government officer filing the report represents.
315 (4) A related person may not, while assisting a lobbyist, principal, or government
316 officer in lobbying, make an expenditure that benefits a public official or member of the public
317 official's immediate family under circumstances which would otherwise fall within the
318 disclosure requirements of this chapter if the expenditure was made by the lobbyist, principal,
319 or government officer.
337 that the information provided in the report is true, accurate, and complete to the lobbyist's best
338 knowledge and belief.
340 (a) develop preprinted suggested forms for all statements required by this section; and
341 (b) make copies of the forms available to each person who requests them.
343 required by this section [
345 surrenders, fails to renew, or otherwise ceases to be licensed.
346 Section 4. Section 36-11-306 is enacted to read:
347 36-11-306. Conflicts of interest.
348 (1) As used in this section, "conflict of interest" means a circumstance where:
349 (a) the representation of one principal or client will be directly adverse to another
350 principal or client; or
351 (b) there is a significant risk that the representation of one or more principals or clients
352 will be materially limited by the lobbyist's responsibilities to:
353 (i) another principal or client;
354 (ii) a former principal or client;
355 (iii) a third person; or
356 (iv) a personal interest of the lobbyist.
357 (2) Except as provided in Subsection (3), a lobbyist may not represent a principal or
358 client if the representation involves a conflict of interest.
359 (3) Notwithstanding the existence of a conflict of interest, a lobbyist may represent a
360 principal or client if:
361 (a) the lobbyist reasonably believes that the lobbyist will be able to provide competent
362 and diligent representation to each principal or client;
363 (b) the representation is not otherwise prohibited by law;
364 (c) the representation does not require the lobbyist to assert a position on behalf of one
365 principal or client that is opposed to the position of another principal or client represented by
366 the lobbyist involving the same legislative issue; and
367 (d) each affected principal or client gives informed consent to the conflict of interest in
Legislative Review Note
as of 1-10-06 10:23 AM
Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.