20A-11-104 - Personal use expenditure -- Authorized and prohibited uses of campaign funds -- Enforcement -- Penalties.
20A-11-104. Personal use expenditure -- Authorized and prohibited uses ofcampaign funds -- Enforcement -- Penalties.
(1) (a) As used in this chapter, "personal use expenditure" means an expenditure that:
(i) (A) is not excluded from the definition of personal use expenditure by Subsection (2);and
(B) primarily furthers a personal interest of a candidate or officeholder or a candidate's orofficeholder's family, which interest is not connected with the performance of an activity as acandidate or an activity or duty of an officeholder; or
(ii) would cause the candidate or officeholder to recognize the expenditure as taxableincome under federal law.
(b) "Personal use expenditure" includes:
(i) a mortgage, rent, utility, or vehicle payment;
(ii) a household food item or supply;
(iii) clothing, except for clothing:
(A) bearing the candidate's name or campaign slogan or logo; and
(B) used in the candidate's campaign;
(iv) an admission to a sporting, artistic, or recreational event or other form ofentertainment;
(v) dues, fees, or gratuities at a country club, health club, or recreational facility;
(vi) a salary payment made to:
(A) a candidate or officeholder; or
(B) a person who has not provided a bona fide service to a candidate or officeholder;
(vii) a vacation;
(viii) a vehicle expense;
(ix) a meal expense;
(x) a travel expense;
(xi) a payment of an administrative, civil, or criminal penalty;
(xii) a satisfaction of a personal debt;
(xiii) a personal service, including the service of an attorney, accountant, physician, orother professional person;
(xiv) a membership fee for a professional or service organization; and
(xv) a payment in excess of the fair market value of the item or service purchased.
(2) "Personal use expenditure" does not mean an expenditure made:
(a) for a political purpose;
(b) for candidacy for public office;
(c) to fulfill a duty or activity of an officeholder;
(d) for a donation to a registered political party;
(e) for a contribution to another candidate's campaign account, including sponsorship ofor attendance at an event, the primary purpose of which is to solicit a contribution for anothercandidate's campaign account;
(f) to return all or a portion of a contribution to a contributor;
(g) for the following items, if made in connection with the candidacy for public office oran activity or duty of an officeholder:
(i) (A) a mileage allowance at the rate established by the Division of Finance underSection 63A-3-107; or
(B) for motor fuel or special fuel, as defined in Section 59-13-102;
(ii) a meal expense;
(iii) a travel expense, including an expense incurred for airfare or a rental vehicle;
(iv) a payment for a service provided by an attorney or accountant;
(v) a tuition payment or registration fee for participation in a meeting or conference;
(vi) a gift;
(vii) a payment for the following items in connection with an office space:
(A) rent;
(B) utilities;
(C) a supply; or
(D) furnishing;
(viii) a booth at a meeting or event; or
(ix) educational material;
(h) to purchase or mail informational material, a survey, or a greeting card;
(i) for a donation to a charitable organization, as defined by Section 13-22-2, includingadmission to or sponsorship of an event, the primary purpose of which is charitable solicitation,as defined in Section 13-22-2;
(j) to repay a loan a candidate makes from the candidate's personal account to thecandidate's campaign account;
(k) to pay membership dues to a national organization whose primary purpose is toaddress general public policy;
(l) for admission to or sponsorship of an event, the primary purpose of which is topromote the social, educational, or economic well-being of the state or the candidate's orofficeholder's community; or
(m) for one or more guests of an officeholder or candidate to attend an event, meeting, orconference described in this Subsection (2).
(3) (a) The lieutenant governor shall enforce this section by:
(i) evaluating a financial statement to identify a personal use expenditure; and
(ii) commencing an informal adjudicative proceeding in accordance with Title 63G,Chapter 4, Administrative Procedures Act, if the lieutenant governor has probable cause tobelieve a candidate or officeholder has made a personal use expenditure.
(b) Following the proceeding, the lieutenant governor may issue a signed order requiringa candidate or officeholder who has made a personal use expenditure to:
(i) remit an administrative penalty of an amount equal to 50% of the personal useexpenditure to the lieutenant governor; and
(ii) deposit the amount of the personal use expenditure in the campaign account fromwhich the personal use expenditure was disbursed.
(c) The lieutenant governor shall deposit money received under Subsection (3)(b)(i) inthe General Fund.
Enacted by Chapter 246, 2010 General Session