LEGISLATIVE GENERAL COUNSEL H.B. 540
6 Approved for Filing: M. Cipriano 6
6 02-13-24 10:38 AM 6
1 LOBBYIST DISCLOSURE AND REGULATION AMENDMENTS
2 2024 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Brian S. King
5 Senate Sponsor: ____________
6
7 LONG TITLE
8 General Description:
9 This bill modifies the Lobbyist Disclosure and Regulation Act.
10 Highlighted Provisions:
11 This bill:
12 < requires the lieutenant governor, on the application to obtain a license to engage in
13 lobbying, to include a place for a lobbyist to:
14 C provide the contact information of the principal; and
15 C indicate whether the principal for whom the lobbyist will lobby is a public
16 entity;
17 < requires the lieutenant governor to prepare an online principal registration form for
18 each principal for whom a lobbyist lobbies;
19 < requires a principal described above to:
20 C register as a user of the lobbyist.utah.gov website; and
21 C verify that the principal retains or employs the lobbyist to lobby on the
22 principal's behalf;
23 < authorizes the lieutenant governor to disapprove an application for a license to
24 engage in lobbying if the lobbyist seeks to represent both a public and a private
25 person or entity;
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26 < authorizes the lieutenant governor to, if a principal fails to verify that the principal
27 retains or employs the lobbyist to engage in lobbying, indicate on the
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28 lobbyist.utah.gov website that the lieutenant governor could not verify that the principal retains
29 or employs the lobbyist to lobby on the principal's behalf;
30 < prohibits a person from giving, or offering to give, an economic incentive to a
31 lobbyist for lobbying that is contingent on certain governmental action or inaction;
32 < modifies a provision prohibiting a lobbyist from communicating false information
33 to a public official;
34 < prohibits a licensed lobbyist from accepting employment to lobby on behalf of a
35 public entity in certain circumstances;
36 < prohibits a licensed lobbyist from, in exchange for renumeration, providing services
37 to, or otherwise working on behalf of, the campaign of a candidate for state
38 legislative office;
39 < provides that, for a former state official, the exception to the one-year prohibition on
40 lobbying applies only if the former state official engages in lobbying on behalf of a
41 business that is the former state official's primary source of income; and
42 < makes technical and conforming changes.
43 Money Appropriated in this Bill:
44 None
45 Other Special Clauses:
46 This bill provides a special effective date.
47 Utah Code Sections Affected:
48 AMENDS:
49 36-11-102, as last amended by Laws of Utah 2023, Chapter 16
50 36-11-103, as last amended by Laws of Utah 2022, Chapter 125
51 36-11-103.5, as enacted by Laws of Utah 2022, Chapter 125
52 36-11-306, as enacted by Laws of Utah 2007, Chapter 233
53 36-11-401, as last amended by Laws of Utah 2022, Chapter 125
54 67-24-103, as enacted by Laws of Utah 2009, Chapter 360
55 ENACTS:
56 36-11-103.3, Utah Code Annotated 1953
57 36-11-303.5, Utah Code Annotated 1953
58 36-11-305.3, Utah Code Annotated 1953
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59 REPEALS AND REENACTS:
60 36-11-301, as enacted by Laws of Utah 1991, Chapter 280
61 36-11-303, as enacted by Laws of Utah 1991, Chapter 280
62
63 Be it enacted by the Legislature of the state of Utah:
64 Section 1. Section 36-11-102 is amended to read:
65 36-11-102. Definitions.
66 As used in this chapter:
67 (1) "Aggregate daily expenditures" means:
68 (a) for a single lobbyist, principal, or government officer, the total of all expenditures
69 made within a calendar day by the lobbyist, principal, or government officer for the benefit of
70 an individual public official;
71 (b) for an expenditure made by a member of a lobbyist group, the total of all
72 expenditures made within a calendar day by every member of the lobbyist group for the benefit
73 of an individual public official; or
74 (c) for a multiclient lobbyist, the total of all expenditures made by the multiclient
75 lobbyist within a calendar day for the benefit of an individual public official, regardless of
76 whether the expenditures were attributed to different clients.
77 (2) "Approved activity" means an event, a tour, or a meeting:
78 (a) (i) to which a legislator or another nonexecutive branch public official is invited;
79 and
80 (ii) attendance at which is approved by:
81 (A) the speaker of the House of Representatives, if the public official is a member of
82 the House of Representatives or another nonexecutive branch public official; or
83 (B) the president of the Senate, if the public official is a member of the Senate or
84 another nonexecutive branch public official; or
85 (b) (i) to which a public official who holds a position in the executive branch of state
86 government is invited; and
87 (ii) attendance at which is approved by the governor or the lieutenant governor.
88 (3) "Board of education" means:
89 (a) a local school board described in Title 53G, Chapter 4, School Districts;
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90 (b) the State Board of Education;
91 (c) the State Charter School Board created under Section 53G-5-201; or
92 (d) a charter school governing board described in Title 53G, Chapter 5, Charter
93 Schools.
94 (4) "Capitol hill complex" means the same as that term is defined in Section
95 63C-9-102.
96 (5) (a) "Compensation" means anything of economic value, however designated, that is
97 paid, loaned, granted, given, donated, or transferred to an individual for the provision of
98 services or ownership before any withholding required by federal or state law.
99 (b) "Compensation" includes:
100 (i) a salary or commission;
101 (ii) a bonus;
102 (iii) a benefit;
103 (iv) a contribution to a retirement program or account;
104 (v) a payment includable in gross income, as defined in Section 62, Internal Revenue
105 Code, and subject to social security deductions, including a payment in excess of the maximum
106 amount subject to deduction under social security law;
107 (vi) an amount that the individual authorizes to be deducted or reduced for salary
108 deferral or other benefits authorized by federal law; or
109 (vii) income based on an individual's ownership interest.
110 (6) "Compensation payor" means a person who pays compensation to a public official
111 in the ordinary course of business:
112 (a) because of the public official's ownership interest in the compensation payor; or
113 (b) for services rendered by the public official on behalf of the compensation payor.
114 (7) "Conflict of interest" means a circumstance where:
115 (a) a lobbyist's representation of one principal or client will be directly adverse to the
116 interests of another principal or client; or
117 (b) there is a significant risk that a lobbyist's representation of one or more principals
118 or clients will be materially limited by:
119 (i) the lobbyist's responsibilities to another principal or client; or
120 (ii) a personal interest of the lobbyist.
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121 [(7)] (8) "Education action" means:
122 (a) a resolution, policy, or other official action for consideration by a board of
123 education;
124 (b) a nomination or appointment by an education official or a board of education;
125 (c) a vote on an administrative action taken by a vote of a board of education;
126 (d) an adjudicative proceeding over which an education official has direct or indirect
127 control;
128 (e) a purchasing or contracting decision;
129 (f) drafting or making a policy, resolution, or rule;
130 (g) determining a rate or fee; or
131 (h) making an adjudicative decision.
132 [(8)] (9) "Education official" means:
133 (a) a member of a board of education;
134 (b) an individual appointed to or employed in a position under a board of education, if
135 that individual:
136 (i) occupies a policymaking position or makes purchasing or contracting decisions;
137 (ii) drafts resolutions or policies or drafts or makes rules;
138 (iii) determines rates or fees;
139 (iv) makes decisions relating to an education budget or the expenditure of public
140 money; or
141 (v) makes adjudicative decisions; or
142 (c) an immediate family member of an individual described in Subsection [(8)(a)]
143 (9)(a) or (b).
144 [(9)] (10) "Event" means entertainment, a performance, a contest, or a recreational
145 activity that an individual participates in or is a spectator at, including a sporting event, an
146 artistic event, a play, a movie, dancing, or singing.
147 [(10)] (11) "Executive action" means:
148 (a) a nomination or appointment by the governor;
149 (b) the proposal, drafting, amendment, enactment, or defeat by a state agency of a rule
150 made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
151 (c) agency ratemaking proceedings; or
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152 (d) an adjudicative proceeding of a state agency.
153 [(11)] (12) (a) "Expenditure" means any of the items listed in this Subsection [(11)(a)]
154 (12)(a) when given to or for the benefit of a public official unless consideration of equal or
155 greater value is received:
156 (i) a purchase, payment, or distribution;
157 (ii) a loan, gift, or advance;
158 (iii) a deposit, subscription, or forbearance;
159 (iv) services or goods;
160 (v) money;
161 (vi) real property;
162 (vii) a ticket or admission to an event; or
163 (viii) a contract, promise, or agreement, whether or not legally enforceable, to provide
164 any item listed in Subsections [(11)(a)(i)] (12)(a)(i) through (vii).
165 (b) "Expenditure" does not mean:
166 (i) a commercially reasonable loan made in the ordinary course of business;
167 (ii) a campaign contribution:
168 (A) reported in accordance with Title 20A, Chapter 11, Campaign and Financial
169 Reporting Requirements, Section 10-3-208, Section 17-16-6.5, or any applicable ordinance
170 adopted under Subsection 10-3-208(6) or 17-16-6.5(1); or
171 (B) lawfully given to a person that is not required to report the contribution under a law
172 or ordinance described in Subsection [(11)(b)(ii)(A)] (12)(b)(ii)(A);
173 (iii) printed informational material that is related to the performance of the recipient's
174 official duties;
175 (iv) a devise or inheritance;
176 (v) any item listed in Subsection [(11)(a)] (12)(a) if:
177 (A) given by a relative;
178 (B) given by a compensation payor for a purpose solely unrelated to the public
179 official's position as a public official;
180 (C) the item is food or beverage with a value that does not exceed the food
181 reimbursement rate, and the aggregate daily expenditures for food and beverage do not exceed
182 the food reimbursement rate; or
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183 (D) the item is not food or beverage, has a value of less than $10, and the aggregate
184 daily expenditures do not exceed $10;
185 (vi) food or beverage that is provided at an event, a tour, or a meeting to which the
186 following are invited:
187 (A) all members of the Legislature;
188 (B) all members of a standing or interim committee;
189 (C) all members of an official legislative task force;
190 (D) all members of a party caucus; or
191 (E) all members of a group described in Subsections [(11)(b)(vi)(A)] (12)(b)(vi)(A)
192 through (D) who are attending a meeting of a national organization whose primary purpose is
193 addressing general legislative policy;
194 (vii) food or beverage that is provided at an event, a tour, or a meeting to a public
195 official who is:
196 (A) giving a speech at the event, tour, or meeting;
197 (B) participating in a panel discussion at the event, tour, or meeting; or
198 (C) presenting or receiving an award at the event, tour, or meeting;
199 (viii) a plaque, commendation, or award that:
200 (A) is presented in public; and
201 (B) has the name of the individual receiving the plaque, commendation, or award
202 inscribed, etched, printed, or otherwise permanently marked on the plaque, commendation, or
203 award;
204 (ix) a gift that:
205 (A) is an item that is not consumable and not perishable;
206 (B) a public official, other than a local official or an education official, accepts on
207 behalf of the state;
208 (C) the public official promptly remits to the state;
209 (D) a property administrator does not reject under Section 63G-23-103;
210 (E) does not constitute a direct benefit to the public official before or after the public
211 official remits the gift to the state; and
212 (F) after being remitted to the state, is not transferred, divided, distributed, or used to
213 distribute a gift or benefit to one or more public officials in a manner that would otherwise
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214 qualify the gift as an expenditure if the gift were given directly to a public official;
215 (x) any of the following with a cash value not exceeding $30:
216 (A) a publication; or
217 (B) a commemorative item;
218 (xi) admission to or attendance at an event, a tour, or a meeting, the primary purpose of
219 which is:
220 (A) to solicit a contribution that is reportable under Title 20A, Chapter 11, Campaign
221 and Financial Reporting Requirements, 2 U.S.C. Sec. 434, Section 10-3-208, Section
222 17-16-6.5, or an applicable ordinance adopted under Subsection 10-3-208(6) or 17-16-6.5(1);
223 (B) to solicit a campaign contribution that a person is not required to report under a law
224 or ordinance described in Subsection [(11)(b)(xi)(A)] (12)(b)(xi)(A); or
225 (C) charitable solicitation, as defined in Section 13-22-2;
226 (xii) travel to, lodging at, food or beverage served at, and admission to an approved
227 activity;
228 (xiii) sponsorship of an approved activity;
229 (xiv) notwithstanding Subsection [(11)(a)(vii)] (12)(a)(vii), admission to, attendance
230 at, or travel to or from an event, a tour, or a meeting:
231 (A) that is sponsored by a governmental entity;
232 (B) that is widely attended and related to a governmental duty of a public official;
233 (C) for a local official, that is sponsored by an organization that represents only local
234 governments, including the Utah Association of Counties, the Utah League of Cities and
235 Towns, or the Utah Association of Special Districts; or
236 (D) for an education official, that is sponsored by a public school, a charter school, or
237 an organization that represents only public schools or charter schools, including the Utah
238 Association of Public Charter Schools, the Utah School Boards Association, or the Utah
239 School Superintendents Association; or
240 (xv) travel to a widely attended tour or meeting related to a governmental duty of a
241 public official if that travel results in a financial savings to:
242 (A) for a public official who is not a local official or an education official, the state; or
243 (B) for a public official who is a local official or an education official, the local
244 government or board of education to which the public official belongs.
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245 [(12)] (13) "Food reimbursement rate" means the total amount set by the director of the
246 Division of Finance, by rule, under Section 63A-3-107, for in-state meal reimbursement, for an
247 employee of the execu