BILL ANALYSIS

H.B. 5111

By: Darby

State Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The bill author has informed the committee that it has been too long since state law regulating campaign treasurers has been updated, resulting in a regulatory framework that has not kept pace with modern campaign practices. For example, under current law, there is no prohibition against simultaneously serving as a campaign treasurer for a political committee and a candidate. The bill author has informed the committee that the Texas Ethics Commission has provided testimony to the committee regarding this regulatory gap, which can create potential conflicts of interest and undermine transparency. H.B. 5111 seeks to address these issues and update the regulatory framework by establishing comprehensive standards relating to the regulation of campaign treasurer appointments, including establishing new eligibility criteria and disqualifying certain individuals.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly granted to the Texas Ethics Commission in SECTION 7 of this bill.

ANALYSIS

H.B. 5111 amends the Election Code to make a person eligible for appointment as a campaign treasurer if the person is 18 years of age or older and a legal resident of Texas. The bill establishes that a person is not eligible for appointment as a campaign treasurer if:

· the person is currently the campaign treasurer for a candidate or political committee;

· the person has been convicted of one of the following Election Code offenses:

o retaliation against a voter;

o unlawful removal from a ballot box;

o unlawfully prohibiting an employee from voting;

o unlawful buying and selling of balloting materials;

o engaging in organized election fraud activity;

o election fraud;

o knowingly or intentionally making any effort to count votes the person knows are invalid or alter a report to include votes the person knows are invalid or to refuse to count votes the person knows are valid or to alter a report to exclude votes the person knows are valid;

o vote harvesting;

o unlawful solicitation and distribution of an application to vote by mail;

o unlawful distribution of early voting ballots and balloting materials; or

o perjury in connection with certain election procedures;

· the Texas Ethics Commission (TEC) has made a determination during the five-year period preceding the date of the person's appointment that the person committed a Category One violation or a Category Two violation, as those terms are defined by Government Code provisions governing the TEC's complaint procedures and hearings;

· the person is required by state law to register as a lobbyist;

· the person is an employee of or contracted by a political committee; or

· the person is a candidate and the appointment is for a political committee.

For purposes of applicable state law regulating political funds and campaigns, a candidate or political committee that appoints a person as a campaign treasurer who is ineligible for appointment under these provisions at the time of appointment is considered to not have a campaign treasurer appointment in effect. The bill provides the following with respect to ineligible campaign treasurers:

· if the TEC receives notice that a candidate's or political committee's campaign treasurer was ineligible under these provisions at the time of the appointment or became ineligible after the appointment, the TEC must conduct an investigation to determine whether the campaign treasurer is ineligible for appointment; and

· if the TEC determines that a campaign treasurer is ineligible for appointment, the TEC must provide notice of that determination to the campaign treasurer and the candidate or political committee as soon as practicable after making the determination.

The bill requires a candidate or political committee to appoint a new campaign treasurer as provided by applicable state law regarding campaign treasurers not later than the 14th business day after the date that, as follows:

· the candidate or political committee becomes aware that the candidate's or political committee's campaign treasurer became ineligible under the bill's provisions after the appointment; or

· the candidate or political committee receives notice under the bill's provisions that the candidate's or political committee's campaign treasurer is ineligible.

A candidate or political committee that violates these provisions is liable for a civil penalty capped at an amount equal to three times the amount of political contributions the candidate or political committee accepted during the period the candidate or political committee was in violation of these provisions. The bill establishes that the following conditions that make a person ineligible for appointment as a campaign treasurer under the bill's provisions do not apply to a person who is a candidate and who appoints the person as the person's own campaign treasurer under applicable Election Code provisions:

· the person has been convicted of one of the Election Code offenses previously specified;

· the TEC has made a determination during the five-year period preceding the date of the person's appointment that the person committed a Category One violation or a Category Two violation;

· the person is required by applicable state law to register as a lobbyist; or

· the person is an employee of or contracted by a political committee.

These provisions also apply to the appointment and removal of an assistant campaign treasurer.

H.B. 5111 repeals the provision establishing that a person is ineligible for appointment as a campaign treasurer if the person is the campaign treasurer of a political committee that does not file a report required by Election Code provisions relating to political reporting.

H.B. 5111 revises the required contents of the written campaign treasurer appointment as follows:

· adds the following to the required contents:

o the campaign treasurer's date of birth;

o the campaign treasurer's email address;

o the campaign treasurer's driver's license number, state identification card number, or social security number; and

o an affidavit signed by the person making the appointment that the campaign treasurer is not ineligible for appointment under the bill's provisions; and

· removes as an option for the campaign treasurer's address the treasurer's business address; and

· removes as a requirement for the campaign treasurer's address that the address be a street address.

The bill, with respect to the requirement for a political committee that files its campaign treasurer appointment with the TEC to notify the TEC in writing of any change in the campaign treasurer's address not later than the 10th day after the date on which the change occurs, makes the requirement applicable to a candidate who so files, clarifies that the campaign treasurer's address is that person's residence address, and specifies that the deadline is the 10th business day after the date on which the changes occurs.

H.B. 5111, with respect to the requirement under current law for the name of a specific-purpose committee for supporting a candidate for a statewide office, a district office filled by voters of more than one county, a judicial district office filled by voters of only one county, state senator, state representative, or the State Board of Education to include the name of the candidate that the committee supports, makes the requirement applicable to a specific-purpose committee for opposing a candidate for one of those offices.

H.B. 5111 requires the TEC or the authority with whom an applicable report is filed, before making a report filed under Election Code provisions relating to political reporting available on the Internet, to remove the following information:

· the campaign treasurer's date of birth, other than year;

· the campaign treasurer's residence address, other than city, state, and zip code; and

· the campaign treasurer's driver's license number, state identification card number, or social security number.

H.B. 5111 repeals Section 252.0011, Election Code.

H.B. 5111 requires the TEC to adopt rules necessary to implement the bill's provisions as soon as practicable after the bill's effective date but not later than January 1, 2026. The bill applies only to a campaign treasurer appointment made on or after January 1, 2026. A campaign treasurer appointment made before January 1, 2026, is governed by the law in effect on the date the appointment was made, and the former law is continued in effect for that purpose.

EFFECTIVE DATE

September 1, 2025.