House passes third‑substitute campaign finance bill after floor debate over limits and reporting rules

SALT LAKE CITY — The Utah House of Representatives passed the third substitute of House Bill 329, a package of campaign finance amendments, on March 2 after extended floor debate that touched on disclosure timing, cash‑reporting practice and whether numeric contribution limits violate free‑speech protections.

Representative Ben Ferry, the bill sponsor, told the House the substitute was needed to correct a drafting omission and to improve transparency. "We picked up one section of the code and I can't amend in a section of the code," he said, explaining the substitute restores a penalty section that had been left out. Ferry also described substantive changes to reporting deadlines and contribution reporting that he characterized as practical fixes: "…we would actually, if we had not caught that, we'd be authorizing you to make your political contribution reports after the election."

Why it matters: The bill alters how and when contributions are disclosed and how small cash donations are reported. Proponents said the changes increase transparency and reduce the appearance that money buys access; opponents warned some proposed limits could impinge on First Amendment rights and that practical reporting problems remain.

Key provisions and sponsor explanation Representative Ferry summarized the main changes the third substitute makes to existing law: it clarifies that certain reports must be filed before an election (to avoid treating "within" as including after an election), extends the reporting window for certain late contributions from 24 to 72 hours to allow organizations time to gather information, tightens rules around cash contributions and requires more explicit reporting of unreimbursed expenses. He described a penalty regime intended to replace removing a candidate from the ballot: an initial fine of $300 for failing to file, with additional fines (he referred to $500 per month) for continuing delinquency.

Cash reporting and de‑minimis threshold The substitute reduces the ability to aggregate small cash donations to obscure donor identities: the previous practice of aggregating amounts under a $50 threshold was removed in the substitute, prompting practical questions from members about how to report anonymous $10 or $20 contributions received in the mail or left at events. Members asked how campaigns should comply when no donor name or address is available; sponsors suggested an "unknown" designation could be used and said they would work on a technical fix to reporting forms.

Limits debated and a failed motion to substitute A motion by Representatives to replace the third substitute with a fourth substitute — one that would have implemented campaign contribution limits recommended by the Governor's Commission on Strengthening Democracy — was debated but failed on the floor. Representative King, who moved the fourth substitute, read the commission's recommended limits aloud (examples stated on the floor included $10,000 per two‑year cycle for statewide races and $5,000 for legislative races). Opponents, including Representative Craig Frank, argued such limits raise constitutional concerns; Frank said, "we are encumbering the citizens' right to free speech by creating campaign contribution limits."

Sponsor response on the vertical‑affiliate problem Sponsor Ferry and supporters also explained why certain numeric limits were not included in the adopted substitute. Ferry described a technical problem with organizations that have vertical relationships (local/state/national affiliates) that can transfer funds under longstanding arrangements; in some contractual arrangements funds move from local to state to national affiliates and that transfer pattern can unintentionally trigger aggregate limits. He said drafters could not yet find a workable fix to address those transfer mechanics and therefore left contribution limits out of the adopted substitute.

Floor outcome and next steps After procedural votes to end debate, the House adopted the third substitute and, in final floor voting, the bill passed by a roll call of 61 yes and 10 no. The presiding officer announced the bill will be transmitted to the Senate for its consideration.

Quotes from floor debate "We picked up one section of the code and I can't amend in a section of the code," — Representative Ben Ferry, explaining the need for a substitute. "We would actually, if we had not caught that, we'd be authorizing you to make your political contribution reports after the election." — Representative Ben Ferry, on clarifying timing language. "We are encumbering the citizens' right to free speech by creating campaign contribution limits." — Representative Craig Frank, opposing numeric limits.

What's next: The third substitute of HB329 will be sent to the Utah Senate. Members signaled staff and sponsors will continue work on technical reporting details (for example, handling anonymous small cash contributions) and on whether or how to address vertical‑affiliate transfers before any further limit proposals are adopted.