LEGISLATIVE GENERAL COUNSEL H.B. 542
6 Approved for Filing: T.R. Vaughn 6 nd
2 Sub. (Gray)
6 03-01-24 5:59 PM 6
Senator Curtis S. Bramble proposes the following substitute bill:
1 LOBBYIST DISCLOSURE AND REGULATION ACT
2 MODIFICATIONS
3 2024 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Brady Brammer
6 Senate Sponsor: Ann Millner
7
8 LONG TITLE
9 General Description:
10 This bill amends provisions of the Lobbyist Disclosure and Regulation Act.
11 Highlighted Provisions:
12 This bill:
13 < defines terms;
14 < modifies and clarifies the definitions of lobbyist, lobbying, and a principal;
15 < prohibits consideration, a reward, or an incentive for lobbying that is contingent on
16 certain government action and provides criminal and civil penalties for violation of
17 the prohibition;
18 < replaces the offense of employing or soliciting a person to lobby for contingent
19 compensation with the offense described in the preceding paragraph;
20 < creates an exception to the definition of "expenditure" in relation to certain sporting 2 ndSub. H.B. 542
21 events, performances, or exhibitions of a state institution of higher education or a
22 non-profit institution of higher education;
23 < amends provisions relating to lobbying by a former state official; and
24 < makes technical and conforming changes.
25 Money Appropriated in this Bill:
*HB0542S02*
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26 None
27 Other Special Clauses:
28 None
29 Utah Code Sections Affected:
30 AMENDS:
31 36-11-102, as last amended by Laws of Utah 2023, Chapter 16
32 36-11-201, as last amended by Laws of Utah 2023, Chapter 16
33 53-1-102, as last amended by Laws of Utah 2021, Chapters 349, 360
34 53-1-106, as last amended by Laws of Utah 2023, Chapters 328, 447
35 63G-23-102, as last amended by Laws of Utah 2022, Chapter 125
36 67-24-103, as enacted by Laws of Utah 2009, Chapter 360
37 REPEALS AND REENACTS:
38 36-11-301, as enacted by Laws of Utah 1991, Chapter 280
39
40 Be it enacted by the Legislature of the state of Utah:
41 Section 1. Section 36-11-102 is amended to read:
42 36-11-102. Definitions.
43 As used in this chapter:
44 (1) "Aggregate daily expenditures" means:
45 (a) for a single lobbyist, principal, or government officer, the total of all expenditures
46 made within a calendar day by the lobbyist, principal, or government officer for the benefit of
47 an individual public official;
48 (b) for an expenditure made by a member of a lobbyist group, the total of all
49 expenditures made within a calendar day by every member of the lobbyist group for the benefit
50 of an individual public official; or
51 (c) for a multiclient lobbyist, the total of all expenditures made by the multiclient
52 lobbyist within a calendar day for the benefit of an individual public official, regardless of
53 whether the expenditures were attributed to different clients.
54 (2) "Approved activity" means an event, a tour, or a meeting:
55 (a) (i) to which a legislator or another nonexecutive branch public official is invited;
56 and
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57 (ii) attendance at which is approved by:
58 (A) the speaker of the House of Representatives, if the public official is a member of
59 the House of Representatives or another nonexecutive branch public official; or
60 (B) the president of the Senate, if the public official is a member of the Senate or
61 another nonexecutive branch public official; or
62 (b) (i) to which a public official who holds a position in the executive branch of state
63 government is invited; and
64 (ii) attendance at which is approved by the governor or the lieutenant governor.
65 (3) "Board of education" means:
66 (a) a local school board described in Title 53G, Chapter 4, School Districts;
67 (b) the State Board of Education;
68 (c) the State Charter School Board created under Section 53G-5-201; or
69 (d) a charter school governing board described in Title 53G, Chapter 5, Charter
70 Schools.
71 (4) "Capitol hill complex" means the same as that term is defined in Section
72 63C-9-102.
73 (5) (a) "Compensation" means anything of economic value, however designated, that is
74 paid, loaned, granted, given, donated, or transferred to an individual for the provision of
75 services or ownership before any withholding required by federal or state law.
76 (b) "Compensation" includes:
77 (i) a salary or commission;
78 (ii) a bonus;
79 (iii) a benefit;
80 (iv) a contribution to a retirement program or account;
81 (v) a payment includable in gross income, as defined in Section 62, Internal Revenue
82 Code, and subject to social security deductions, including a payment in excess of the maximum
83 amount subject to deduction under social security law;
84 (vi) an amount that the individual authorizes to be deducted or reduced for salary
85 deferral or other benefits authorized by federal law; or
86 (vii) income based on an individual's ownership interest.
87 (6) "Compensation payor" means a person who pays compensation to a public official
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88 in the ordinary course of business:
89 (a) because of the public official's ownership interest in the compensation payor; or
90 (b) for services rendered by the public official on behalf of the compensation payor.
91 (7) "Education action" means:
92 (a) the passage or defeat of a resolution, policy, amendment, or other official action for
93 consideration by a board of education;
94 (b) a nomination or appointment by an education official or a board of education;
95 (c) the passage or defeat of a vote on an administrative action taken by a vote of a
96 board of education; or
97 [(d) an adjudicative proceeding over which an education official has direct or indirect
98 control;]
99 [(e) a purchasing or contracting decision;]
100 [(f) drafting or making a policy, resolution, or rule;]
101 [(g)] (d) determining a rate or fee[; or].
102 [(h) making an adjudicative decision.]
103 (8) "Education official" means:
104 (a) a member of a board of education; or
105 (b) an individual appointed to or employed in a position under a board of education, if
106 that individual:
107 (i) occupies a policymaking position [or makes purchasing or contracting decisions];
108 [(ii) drafts resolutions or policies or drafts or makes rules;]
109 [(iii)] (ii) determines rates or fees; or
110 [(iv)] (iii) makes decisions relating to an education budget or the expenditure of public
111 money[; or].
112 [(v) makes adjudicative decisions; or]
113 [(c) an immediate family member of an individual described in Subsection (8)(a) or
114 (b).]
115 (9) "Event" means entertainment, a performance, a contest, or a recreational activity
116 that an individual participates in or is a spectator at, including a sporting event, an artistic
117 event, a play, a movie, dancing, or singing.
118 (10) "Executive action" means:
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119 (a) a nomination or appointment by the governor;
120 (b) the action of the governor in approving or vetoing legislation.
121 [(b)] (c) the [proposal, drafting, amendment, enactment, or] passage or defeat by a state
122 agency of a rule, or an amendment to a rule made in accordance with Title 63G, Chapter 3,
123 Utah Administrative Rulemaking Act; or
124 [(c)] (d) agency ratemaking proceedings[; or].
125 [(d) an adjudicative proceeding of a state agency.]
126 (11) "Executive official" means:
127 (a) an individual elected to an executive office or appointed to fill a vacancy in an
128 executive office; or
129 (b) an individual appointed to or employed in a position in the executive branch of
130 state government if that individual:
131 (i) occupies a policymaking position; or
132 (ii) determines rates or fees.
133 [(11)] (12) (a) "Expenditure" means any of the items listed in this Subsection [(11)(a)]
134 (12)(a) when given to or for the benefit of a public official unless consideration of equal or
135 greater value is received:
136 (i) a purchase, payment, or distribution;
137 (ii) a loan, gift, or advance;
138 (iii) a deposit, subscription, or forbearance;
139 (iv) services or goods;
140 (v) money;
141 (vi) real property;
142 (vii) a ticket or admission to an event; or
143 (viii) a contract, promise, or agreement, whether or not legally enforceable, to provide
144 any item listed in Subsections [(11)(a)(i) through (vii)] (12)(a)(i) through (vii).
145 (b) "Expenditure" does not mean:
146 (i) a commercially reasonable loan made in the ordinary course of business;
147 (ii) a campaign contribution:
148 (A) reported in accordance with Title 20A, Chapter 11, Campaign and Financial
149 Reporting Requirements, Section 10-3-208, Section 17-16-6.5, or any applicable ordinance
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150 adopted under Subsection 10-3-208(6) or 17-16-6.5(1); or
151 (B) lawfully given to a person that is not required to report the contribution under a law
152 or ordinance described in Subsection [(11)(b)(ii)(A)] (12)(b)(ii)(A);
153 (iii) printed informational material that is related to the performance of the recipient's
154 official duties;
155 (iv) a devise or inheritance;
156 (v) any item listed in Subsection [(11)(a)] (12)(a) if:
157 (A) given by a relative;
158 (B) given by a compensation payor for a purpose solely unrelated to the public
159 official's position as a public official;
160 (C) the item is food or beverage with a value that does not exceed the food
161 reimbursement rate, and the aggregate daily expenditures for food and beverage do not exceed
162 the food reimbursement rate; or
163 (D) the item is not food or beverage, has a value of less than $10, and the aggregate
164 daily expenditures do not exceed $10;
165 (vi) food or beverage that is provided at an event, a tour, or a meeting to which the
166 following are invited:
167 (A) all members of the Legislature;
168 (B) all members of a standing or interim committee;
169 (C) all members of an official legislative task force;
170 (D) all members of a party caucus; or
171 (E) all members of a group described in Subsections [(11)(b)(vi)(A) through (D)]
172 (12)(b)(vi)(A) through (D) who are attending a meeting of a national organization whose
173 primary purpose is addressing general legislative policy;
174 (vii) food or beverage that is provided at an event, a tour, or a meeting to a public
175 official who is:
176 (A) giving a speech at the event, tour, or meeting;
177 (B) participating in a panel discussion at the event, tour, or meeting; or
178 (C) presenting or receiving an award at the event, tour, or meeting;
179 (viii) a plaque, commendation, or award that:
180 (A) is presented in public; and
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181 (B) has the name of the individual receiving the plaque, commendation, or award
182 inscribed, etched, printed, or otherwise permanently marked on the plaque, commendation, or
183 award;
184 (ix) a gift that:
185 (A) is an item that is not consumable and not perishable;
186 (B) a public official, other than a local official or an education official, accepts on
187 behalf of the state;
188 (C) the public official promptly remits to the state;
189 (D) a property administrator does not reject under Section 63G-23-103;
190 (E) does not constitute a direct benefit to the public official before or after the public
191 official remits the gift to the state; and
192 (F) after being remitted to the state, is not transferred, divided, distributed, or used to
193 distribute a gift or benefit to one or more public officials in a manner that would otherwise
194 qualify the gift as an expenditure if the gift were given directly to a public official;
195 (x) any of the following with a cash value not exceeding $30:
196 (A) a publication; or
197 (B) a commemorative item;
198 (xi) admission to or attendance at an event, a tour, or a meeting, the primary purpose of
199 which is:
200 (A) to solicit a contribution that is reportable under Title 20A, Chapter 11, Campaign
201 and Financial Reporting Requirements, 2 U.S.C. Sec. 434, Section 10-3-208, Section
202 17-16-6.5, or an applicable ordinance adopted under Subsection 10-3-208(6) or 17-16-6.5(1);
203 (B) to solicit a campaign contribution that a person is not required to report under a law
204 or ordinance described in Subsection [(11)(b)(xi)(A)] (12)(b)(xi)(A); or
205 (C) charitable solicitation, as defined in Section 13-22-2;
206 (xii) travel to, lodging at, food or beverage served at, and admission to an approved
207 activity;
208 (xiii) sponsorship of an approved activity;
209 (xiv) notwithstanding Subsection [(11)(a)(vii)] (12)(a)(vii), admission to, attendance
210 at, or travel to or from an event, a tour, or a meeting:
211 (A) that is sponsored by a governmental entity;
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212 (B) that is widely attended and related to a governmental duty of a public official;
213 (C) for a local official, that is sponsored by an organization that represents only local
214 governments, including the Utah Association of Counties, the Utah League of Cities and
215 Towns, or the Utah Association of Special Districts; or
216 (D) for an education official, that is sponsored by a public school, a charter school, or
217 an organization that represents only public schools or charter schools, including the Utah
218 Association of Public Charter Schools, the Utah School Boards Association, or the Utah
219 School Superintendents Association; [or]
220 (xv) travel to a widely attended tour or meeting related to a governmental duty of a
221 public official if that travel results in a financial savings to:
222 (A) for a public official who is not a local official or an education official, the state; or
223 (B) for a public official who is a local official or an education official, the local
224 government or board of education to which the public official belongs[.];
225 (xvi) notwithstanding Subsection (12)(a)(vii), a ticket or admission to a sporting event
226 provided by an institution of higher education described in Subsection 53B-2-101(1), or a
227 private, nonprofit institution of higher education in the state, if the purpose of the public
228 official attending the event is to build a relationship between the institution of higher education
229 and the public official; or
230 (xvii) notwithstanding Subsection (12)(a)(vii), a ticket or admission to a theatrical,
231 musical, dancing, or other artistic performance, an art exhibition, or another artistic event
232 provided by an institution of higher education described in Subsection 53B-2-101(1), or a
233 private, nonprofit institution of higher education in the state, if the purpose of the public
234 official attending the event is to build a relationship between the institution of higher education
235 and the public official.
236 [(12)] (13) "Food reimbursement rate" means the total amount set by the director of the
237 Division of Finance, by rule, under Section 63A-3-107, for in-state meal reimbursement, for an
238 employee of the executive branch, for an entire day.
239 [(13)] (14) (a) "Foreign agent" means an individual who engages in lobbying under
240 contract with a foreign government.
241 (b) "Foreign agent" does not include an individual who is recognized by the United
242 States Department of State as a duly accredited diplomatic or consular officer of a foreign
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243 government, including a duly accredited honorary consul.
244 [(14)] (15) "Foreign government"