By: Seidlits H.B. No. 2469
73R6806 KLL-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to technical and substantive amendments to the laws
1-3 relating to ethics of public servants, including laws governing the
1-4 Texas Ethics Commission, communications to influence legislation or
1-5 administrative action, the filing of personal financial statements,
1-6 conflicts of interest, the giving or acceptance of certain
1-7 benefits, and political funds; providing civil and criminal
1-8 penalties.
1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10 ARTICLE 1
1-11 SECTION 1.01. Article 1, Chapter 304, Acts of the 72nd
1-12 Legislature, Regular Session, 1991 (Article 6252-9d.1, Vernon's
1-13 Texas Civil Statutes), is amended by adding Sections 1.03-1.05 to
1-14 read as follows:
1-15 Sec. 1.03. RESTRICTIONS ON COMMISSION MEMBERS. A person who
1-16 is appointed to the commission may not at the time of appointment
1-17 or during service on the commission be:
1-18 (1) an officer of the state in a capacity other than
1-19 as a member of the commission;
1-20 (2) an officer of a political subdivision, political
1-21 party, or political committee;
1-22 (3) a member of the legislature;
1-23 (4) a candidate or campaign treasurer subject to Title
1-24 15, Election Code, and its subsequent amendments; or
2-1 (5) a person required to be registered under Chapter
2-2 305, Government Code, and its subsequent amendments.
2-3 Sec. 1.04. REMOVAL OF COMMISSION MEMBERS. (a) It is a
2-4 ground for removal of a member from the commission if the member:
2-5 (1) is ineligible under Section 1.03 of this article;
2-6 (2) cannot discharge the member's duties for a
2-7 substantial part of the term for which the member is appointed
2-8 because of illness or disability;
2-9 (3) is absent from two consecutive regularly scheduled
2-10 commission meetings that the member is eligible to attend during a
2-11 calendar year unless the absence is excused by majority vote of the
2-12 commission; or
2-13 (4) has a final conviction for a violation of Chapter
2-14 36, Penal Code, and its subsequent amendments.
2-15 (b) The validity of an action of the commission is not
2-16 affected by the fact that it is taken when a ground for removal of
2-17 a commission member exists.
2-18 (c) If the chairman of the commission has knowledge that a
2-19 potential ground for removal of a member exists, the chairman shall
2-20 notify the appropriate appointing authority of the ground.
2-21 (d) If any two commission members have knowledge that a
2-22 potential ground for removal of the chairman exists, the members
2-23 shall notify the appropriate appointing authority of the ground.
2-24 Sec. 1.05. FILLING OF VACANCIES. (a) A vacancy on the
2-25 commission shall be filled as expeditiously as possible but not
2-26 later than the 90th day after the date on which the vacancy occurs.
2-27 (b) The members of the legislature who are required to
3-1 submit a list to the official making the appointment to fill the
3-2 vacancy shall submit the list as expeditiously as possible but not
3-3 later than the 30th day after the date on which the vacancy occurs.
3-4 If the governor is the appointing official and rejects all names on
3-5 the list, a new list must be submitted not later than the 30th day
3-6 after the date of the rejection.
3-7 SECTION 1.02. Article 1, Chapter 304, Acts of the 72nd
3-8 Legislature, Regular Session, 1991 (Article 6252-9d.1, Vernon's
3-9 Texas Civil Statutes), is amended by adding Section 1.121 to read
3-10 as follows:
3-11 Sec. 1.121. STATEMENTS AND REPORTS CONSIDERED TO BE
3-12 VERIFIED. (a) A statement or report that is filed with the
3-13 commission is considered to be under oath by the person required to
3-14 file the statement or report regardless of the absence of or defect
3-15 in the affidavit of verification, including a signature.
3-16 (b) A person required to file a statement or report with the
3-17 commission is subject to prosecution under Chapter 37, Penal Code,
3-18 regardless of the absence of or defect in the affidavit of
3-19 verification.
3-20 (c) This section applies to a statement or report that is
3-21 filed with the commission electronically or otherwise.
3-22 SECTION 1.03. Section 1.21, Chapter 304, Acts of the 72nd
3-23 Legislature, Regular Session, 1991 (Article 6252-9d.1, Vernon's
3-24 Texas Civil Statutes), is amended to read as follows:
3-25 Sec. 1.21. Confidentiality; offense. (a) Except as
3-26 provided by Subsection (c) of this section, proceedings at a
3-27 preliminary review or informal hearing performed by the commission,
4-1 a sworn complaint, and documents relating to and any additional
4-2 evidence relating to the processing, preliminary review, informal
4-3 hearing, or resolution of a sworn complaint or motion <are
4-4 confidential and> may not be disclosed by the commission or a
4-5 person employed by the commission unless entered into the record of
4-6 a formal hearing or a judicial proceeding, except that a document
4-7 or statement that was previously public information remains public
4-8 information.
4-9 (b) Except as provided by Subsection (c) of this section,
4-10 the open records law, Chapter 424, Acts of the 63rd Legislature,
4-11 Regular Session, 1973 (Article 6252-17a, Vernon's Texas Civil
4-12 Statutes), does not apply to documents or any additional evidence
4-13 relating to the processing, preliminary review, informal hearing,
4-14 or resolution of sworn complaints or motions. The open meetings
4-15 law, Chapter 271, Acts of the 60th Legislature, Regular Session,
4-16 1967 (Article 6252-17, Vernon's Texas Civil Statutes), does not
4-17 apply to the processing, preliminary review, informal hearing, or
4-18 resolution of sworn complaints or motions.
4-19 (c) An order issued by the commission after the completion
4-20 of a preliminary review or an informal hearing determining that a
4-21 violation <other than a technical violation or de minimis> has
4-22 occurred is not confidential.
4-23 (d) A person commits an offense if the person discloses
4-24 information made confidential by this section. An offense under
4-25 this subsection is a Class A misdemeanor.
4-26 (e) In addition to other penalties, a person who <files a
4-27 frivolous complaint or> discloses information in violation of <made
5-1 confidential by> this section is civilly liable to the respondent
5-2 in an amount equal to the greater of $10,000 or the amount of
5-3 actual damages incurred by the respondent, including court costs
5-4 and attorney fees.
5-5 SECTION 1.04. Section 1.28(a), Chapter 304, Acts of the 72nd
5-6 Legislature, Regular Session, 1991 (Article 6252-9d.1, Vernon's
5-7 Texas Civil Statutes), is amended to read as follows:
5-8 (a) The commission may:
5-9 (1) impose a civil penalty of not more than $5,000, or
5-10 triple the amount at issue under a law administered and enforced by
5-11 the commission, whichever amount is greater, for a delay in
5-12 complying with a commission order or for a violation of a law
5-13 administered and enforced by the commission;
5-14 (2) impose a civil penalty of not more than $5,000
5-15 <$10,000> for the filing of a frivolous or bad-faith complaint;
5-16 (3) following a criminal conviction for an offense
5-17 under Chapter 36, Penal Code, or Chapter 305, Government Code,
5-18 deny, suspend, or revoke the registration of a person required to
5-19 be registered under Chapter 305, Government Code;
5-20 (4) notify the appropriate regulatory or supervisory
5-21 entity, including any agency, the State Commission on Judicial
5-22 Conduct, the senate, the house of representatives, or the State Bar
5-23 of Texas, of a violation of a law administered and enforced by the
5-24 commission;
5-25 (5) issue and enforce cease and desist orders to stop
5-26 violations; and
5-27 (6) issue affirmative orders to require compliance
6-1 with the laws administered and enforced by the commission.
6-2 SECTION 1.05. Section 1.26, Chapter 304, Acts of the 72nd
6-3 Legislature, Regular Session, 1991 (Article 6252-9d.1, Vernon's
6-4 Texas Civil Statutes), is repealed.
6-5 ARTICLE 2
6-6 SECTION 2.01. Section 305.0011(e), Government Code, is
6-7 amended to read as follows:
6-8 (e) The commission may adopt rules for the implementation of
6-9 this section consistent with this chapter, the Texas Disciplinary
6-10 Rules of Professional Conduct <Code of Professional
6-11 Responsibility>, and the common law of agency.
6-12 SECTION 2.02. Section 305.003, Government Code, is amended
6-13 to read as follows:
6-14 Sec. 305.003. PERSONS REQUIRED TO REGISTER. (a) A person
6-15 must register with the commission under this chapter if the person:
6-16 (1) makes a total expenditure of an amount determined
6-17 by commission rule but not less than $200 in a calendar quarter,
6-18 not including the person's own travel, food, or lodging expenses or
6-19 the person's own membership dues, on activities described in
6-20 Section 305.006(b) to communicate directly with one or more members
6-21 of the legislative or executive branch to influence legislation or
6-22 administrative action; and <or>
6-23 (2) receives compensation or reimbursement, not
6-24 including reimbursement for the person's own travel, food, or
6-25 lodging expenses or the person's own membership dues, of more than
6-26 an amount determined by commission rule but not less than $200 in a
6-27 calendar quarter from another person to communicate directly with a
7-1 member of the legislative or executive branch to influence
7-2 legislation or administrative action.
7-3 (b) Subsection (a)(2) requires a person to register if the
7-4 person, as part of his regular employment, has communicated
7-5 directly with a member of the legislative or executive branch to
7-6 influence legislation or administrative action on behalf of the
7-7 person by whom he is compensated or reimbursed, whether or not the
7-8 person receives any compensation for the communication in addition
7-9 to the salary for that regular employment. However, Subsection
7-10 (a)(2) does not require a member of the judicial, legislative, or
7-11 executive branch of state government or an officer or employee of a
7-12 political subdivision of the state to register.
7-13 <(c) A person who communicates directly with a member of the
7-14 executive branch to influence administrative action is not required
7-15 to register under Subsection (a)(2) if the person is an attorney of
7-16 record or pro se, the person enters his appearance in a public
7-17 record through pleadings or other written documents in a docketed
7-18 case pending before a state agency, and that communication is the
7-19 only activity that would otherwise require the person to register.>
7-20 SECTION 2.03. Section 305.004, Government Code, is amended
7-21 to read as follows:
7-22 Sec. 305.004. Exceptions. The following persons are not
7-23 required to register under this chapter:
7-24 (1) a person who owns, publishes, or is employed by a
7-25 newspaper, any other regularly published periodical, a radio
7-26 station, a television station, a wire service, or any other bona
7-27 fide news medium that in the ordinary course of business
8-1 disseminates news, letters to the editors, editorial or other
8-2 comment, or paid advertisements that directly or indirectly oppose
8-3 or promote legislation or administrative action, if the person does
8-4 not engage in further or other activities that require registration
8-5 under this chapter and does not represent another person in
8-6 connection with influencing legislation or administrative action;
8-7 (2) a person whose only direct communication with a
8-8 member of the legislative or executive branch to influence
8-9 legislation or administrative action is an appearance before or
8-10 testimony to one or more members of the legislative or executive
8-11 branch in a hearing conducted by or on behalf of either the
8-12 legislative or the executive branch and whose only <who does not
8-13 receive special or extra> compensation for the appearance is either
8-14 the person's regular salary or routine hourly rate, as applicable,
8-15 and <other than> actual expenses incurred in attending the hearing,
8-16 if any;
8-17 (3) a person whose only activity is to encourage or
8-18 solicit members, employees, or stockholders of an entity by whom
8-19 the person is reimbursed, employed, or retained to communicate
8-20 directly with members of the legislative or executive branch to
8-21 influence legislation or administrative action;
8-22 (4) a person whose only activity to influence
8-23 legislation or administrative action is to compensate or reimburse
8-24 an individual registrant to act in the person's behalf to
8-25 communicate directly with a member of the legislative or executive
8-26 branch to influence legislation or administrative action;
8-27 (5) a person whose only activity to influence
9-1 legislation or administrative action is attendance at a meeting or
9-2 entertainment event attended by a member of the legislative or
9-3 executive branch if the total cost of the meeting or entertainment
9-4 event is paid by a business entity, union, or association;
9-5 (6) a person whose only compensation subject to
9-6 Section 305.003(a)(2) consists of reimbursement for any wages not
9-7 earned due to attendance at a meeting or entertainment event,
9-8 travel to and from the meeting or entertainment event, admission to
9-9 the meeting or entertainment event, and any food and beverage
9-10 consumed at the meeting or entertainment event if the meeting or
9-11 entertainment event is attended by a member of the legislative or
9-12 executive branch and if the total cost of the meeting or
9-13 entertainment event is paid by a business entity, union, or
9-14 association; and
9-15 (7) a person who communicates directly with a member
9-16 of the legislative or executive branch on behalf of a political
9-17 party concerning legislation or administrative action, and whose
9-18 expenditures and compensation, as described in Section 305.003,
9-19 combined do not exceed $5,000 a calendar year.
9-20 SECTION 2.04. Subchapter A, Chapter 305, Government Code, is
9-21 amended by adding Section 305.0041 to read as follows:
9-22 Sec. 305.0041. REGISTRATION EXCEPTION FOR CERTAIN ENTITIES.
9-23 A corporation, association, firm, partnership, committee, club,
9-24 organization, or group of persons voluntarily acting in concert is
9-25 not required to register under this chapter if a registrant whom
9-26 the entity reimburses, retains, or employs reports expenditures
9-27 attributable to the entity that are required to be reported under
10-1 Section 305.006. A registrant who is present at the time of an
10-2 expenditure by the entity in order to satisfy the presence
10-3 requirements of Section 305.024(a)(7) shall report those
10-4 expenditures on behalf of the entity.
10-5 SECTION 2.05. Sections 305.005(c) and (f), Government Code,
10-6 are amended to read as follows:
10-7 (c) The registration fee and registration renewal fee are:
10-8 (1) $100 for a registrant employed by an organization
10-9 or organizations exempt from federal income tax under Section
10-10 501(c)(3) or 501(c)(4), Internal Revenue Code of 1986, and not
10-11 employed by any other person or type of organization for purposes
10-12 regulated under this chapter; or
10-13 (2) $300 for any other registrant.
10-14 (f) The registration must be written and verified and must
10-15 contain:
10-16 (1) the registrant's full name and address;
10-17 (2) the registrant's normal business, business phone
10-18 number, and business address;
10-19 (3) the full name and address of each person:
10-20 (A) who reimburses, retains, or employs the
10-21 registrant to communicate directly with a member of the legislative
10-22 or executive branch to influence legislation or administrative
10-23 action; and
10-24 (B) on whose behalf the registrant has
10-25 communicated directly with a member of the legislative or executive
10-26 branch to influence legislation or administrative action;
10-27 (4) the subject matter and, if applicable, the bill
11-1 number, docket number, or other legislative or administrative
11-2 designation of the legislation or administrative action that is the
11-3 subject of the registrant's direct communication with a member of
11-4 the legislative or executive branch;
11-5 (5) for each person employed or retained by the
11-6 registrant for the purpose of assisting in direct communication
11-7 with a member of the legislative or executive branch to influence
11-8 legislation or administrative action:
11-9 (A) the full name, business address, occupation,
11-10 and date of employment or retention of the person by the
11-11 registrant; and
11-12 (B) the subject matter and, if applicable, the
11-13 bill number, docket number, or other administrative designation of
11-14 the legislation or administrative action to which the person's
11-15 activities reportable under this section were related; and
11-16 (6) the amount of compensation or reimbursement paid
11-17 by each person who reimburses, retains, or employs the registrant
11-18 for the purpose of communicating directly with a member of the
11-19 legislative or executive branch or on whose behalf the registrant
11-20 communicates directly with a member of the legislative or executive
11-21 branch, except that if the registrant will be paid a specific
11-22 amount for the direct communication by that person under a contract
11-23 or other legally enforceable agreement, the registrant shall report
11-24 that amount instead and shall indicate the period of time covered
11-25 by the contract or other agreement.
11-26 SECTION 2.06. Section 305.006, Government Code, is amended
11-27 by adding Subsection (g) to read as follows:
12-1 (g) A registrant is not required to report under this
12-2 chapter an expenditure for the registrant's own transportation or
12-3 lodging expenses made to communicate directly with a member of the
12-4 legislative or executive branch if the registrant makes no
12-5 expenditures in connection with that occasion for the member's
12-6 transportation or lodging expenses.
12-7 SECTION 2.07. Section 305.0062(a), Government Code, is
12-8 amended to read as follows:
12-9 (a) The report filed under Section 305.006 must also contain
12-10 the total expenditures described by Section 305.006(b) that are
12-11 directly attributable to persons in the following categories
12-12 <members of the legislative or executive branch and those that are
12-13 directly attributable to the registrant>. The expenditures must be
12-14 stated in only one of the following categories:
12-15 (1) state senators;
12-16 (2) state representatives;
12-17 (3) elected or appointed state officers, other than
12-18 those described by Subdivision (1) or (2);
12-19 (4) legislative agency employees;
12-20 (5) executive agency employees;
12-21 (6) the immediate family of a member of the
12-22 legislative or executive branch;
12-23 (7) the registrant; or <and>
12-24 (8) events to which all legislators are invited.
12-25 SECTION 2.08. Subchapter A, Chapter 305, Government Code, is
12-26 amended by adding Section 305.012 to read as follows:
12-27 Sec. 305.012. AFFIDAVIT. (a) Each registration, report, or
13-1 termination notice filed under this chapter must be accompanied by
13-2 an affidavit executed by the person required to file the
13-3 registration, report, or termination notice.
13-4 (b) The affidavit must contain the statement: "I swear, or
13-5 affirm, that the accompanying document is true and correct to the
13-6 best of my knowledge and includes all information required to be
13-7 reported by me under Chapter 305, Government Code."
13-8 (c) A registration, report, or termination notice filed
13-9 under this chapter without an affidavit of verification, or filed
13-10 with a defective affidavit, is covered by Section 1.121, Chapter
13-11 304, Acts of the 72nd Legislature, Regular Session, 1991 (Article
13-12 6252-9d.1, Vernon's Texas Civil Statutes).
13-13 SECTION 2.09. Section 305.025, Government Code, is amended
13-14 to read as follows:
13-15 Sec. 305.025. Exceptions. Section 305.024 does not
13-16 prohibit:
13-17 (1) a loan in the due course of business from a
13-18 corporation or other business entity that is legally engaged in the
13-19 business of lending money and that has conducted that business
13-20 continuously for more than one year before the loan is made;
13-21 (2) a loan or guarantee of a loan or a gift made or
13-22 given by a person related within the second degree by affinity or
13-23 consanguinity to the member of the legislative or executive branch;
13-24 (3) necessary expenditures for transportation and
13-25 lodging when the purpose of the travel is to explore matters
13-26 directly related to the duties of a member of the legislative or
13-27 executive branch, such as fact-finding trips, but not including
14-1 attendance at merely ceremonial events or pleasure trips;
14-2 (4) necessary expenditures for transportation and
14-3 lodging provided in connection with a conference, seminar,
14-4 educational program, or similar event in which the member renders
14-5 services, such as addressing an audience or engaging in a seminar,
14-6 to the extent that those services are more than merely perfunctory;
14-7 (5) expenditures for transportation or lodging for a
14-8 member of the legislative or executive branch, or for an immediate
14-9 family member's transportation and lodging, that are reimbursed by
14-10 the member of the legislative or executive branch; or
14-11 (6) <(5)> a political contribution as defined by
14-12 Section 251.001, Election Code.
14-13 SECTION 2.10. Section 305.027(a), Government Code, is
14-14 amended to read as follows:
14-15 (a) A person commits an offense if the person knowingly
14-16 enters into a contract or other agreement to print, publish, or
14-17 broadcast legislative advertising that does not indicate in the
14-18 advertising:
14-19 (1) that it is legislative advertising;
14-20 (2) the full name of the individual who personally
14-21 entered into the contract or agreement with the printer, publisher,
14-22 or broadcaster and the name of the person, if any, that the
14-23 individual represents; <and>
14-24 (3) in the case of advertising that is printed or
14-25 published, the address of the individual who personally entered
14-26 into the agreement with the printer or publisher and the address of
14-27 the person, if any, that the individual represents; and
15-1 (4) the name of the person who will ultimately pay for
15-2 the legislative advertising.
15-3 SECTION 2.11. Section 305.033(a), Government Code, is
15-4 amended to read as follows:
15-5 (a) The commission shall determine from any available
15-6 evidence whether a registration or report required to be filed with
15-7 the commission under this chapter is late. A registration filed
15-8 without the fee required by Section 305.005 is considered to be
15-9 late. On making a determination that a required registration or
15-10 report is late, the commission shall immediately mail a notice of
15-11 the determination to the person responsible for the filing<, to the
15-12 commission,> and to the appropriate attorney for the state.
15-13 SECTION 2.12. The change in law made by this article to the
15-14 information required to be included in a report filed under Chapter
15-15 305, Government Code, applies only to a report filed on or after
15-16 October 1, 1993.
15-17 SECTION 2.13. The change in law made by Section 2.10 of this
15-18 Act applies only to a contract or other agreement entered into on
15-19 or after September 1, 1993. An offense committed before that date
15-20 is covered by the law in effect on the date the offense occurred,
15-21 and that law is continued in effect for this purpose.
15-22 ARTICLE 3
15-23 SECTION 3.01. Section 3(a), Chapter 421, Acts of the 63rd
15-24 Legislature, Regular Session, 1973 (Article 6252-9b, Vernon's Texas
15-25 Civil Statutes), is amended to read as follows:
15-26 (a) On or before April 30th of each year, every elected
15-27 <state> officer, salaried appointed officer, appointed officer of a
16-1 major state agency, executive head of a state agency, and <every>
16-2 party chairman shall file with the commission a financial statement
16-3 complying with the requirements of Section 4 of this Act.
16-4 SECTION 3.02. Sections 4(c) and (d), Chapter 421, Acts of
16-5 the 63rd Legislature, Regular Session, 1973 (Article 6252-9b,
16-6 Vernon's Texas Civil Statutes), are amended to read as follows:
16-7 (c) The account of financial activity referred to in
16-8 Subsection (a) of this section shall consist of:
16-9 (1) a list of all sources of occupational income,
16-10 identified by employer, or if self-employed, by the nature of the
16-11 occupation, including identification of any person, business
16-12 entity, or other organization from whom the person or a business in
16-13 which he has a substantial interest received a fee as a retainer
16-14 for a claim on future services in case of need (as opposed to a fee
16-15 for services on a matter specified at the time of contracting for
16-16 or receiving the fee), whenever professional or occupational
16-17 services were not actually performed during the reporting period
16-18 commensurate to or in excess of the amount of the retainer, and the
16-19 category of the amount of the fee;
16-20 (2) identification by name and category of number of
16-21 shares of stock of any business entity held or acquired, and if
16-22 sold the category of the amount of net gain or loss realized from
16-23 such sale;
16-24 (3) a list of all bonds, notes, and other commercial
16-25 paper held or acquired, and if sold the category of the amount of
16-26 net gain or loss realized from such sale;
16-27 (4) identification of each source and the category of
17-1 the amount of income in excess of $500 derived per source from
17-2 interest, dividends, royalties, and rents;
17-3 (5) identification of each guarantor of a loan and
17-4 identification of each person or financial institution to whom a
17-5 personal note or notes or lease agreement for a total financial
17-6 liability in excess of $1,000 existed at any time during the year,
17-7 and the category of the amount of the liability;
17-8 (6) identification by description of all beneficial
17-9 interests in real property and business entities held or acquired,
17-10 and if sold the category of the amount of the net gain or loss
17-11 realized from such sale;
17-12 (7) identification of any person, business entity, or
17-13 other organization from whom the person or his spouse or dependent
17-14 children received a gift of anything of value in excess of $250 in
17-15 value and a description of each gift, except:
17-16 (A) gifts received from persons related to the
17-17 person at any time within the second degree of consanguinity or
17-18 affinity, as determined under Article 5996h, Revised Statutes;
17-19 (B) political contributions that were reported
17-20 as required by law; and
17-21 (C) expenditures required to be reported by a
17-22 person required to be registered under Chapter 305, Government
17-23 Code;
17-24 (8) identification of the source and the category of
17-25 the amount of all income received as beneficiary of a trust and
17-26 identification of each asset, if known to the beneficiary, from
17-27 which income was received by the beneficiary in excess of $500;
18-1 (9) identification by description and category of the
18-2 amount of all assets and liabilities of any corporation or
18-3 partnership in which 50 percent or more of the outstanding
18-4 ownership was held, acquired, or sold;
18-5 (10) a list of all boards of directors of which the
18-6 person is a member and executive positions which the person holds
18-7 in corporations, firms, partnerships, and proprietorships, stating
18-8 the name of each corporation, firm, partnership, or proprietorship
18-9 and the position held;
18-10 (11) identification of any person providing
18-11 transportation, meals, or lodging expenses permitted under Section
18-12 36.07(b), Penal Code, and the amount of those expenses, other than
18-13 expenditures required to be reported under Chapter 305, Government
18-14 Code; and
18-15 (12) any partnership, joint venture, or other business
18-16 association, excluding a publicly held or traded business entity
18-17 <corporation>, in which both the state officer and a person
18-18 registered under Chapter 305, Government Code, have an interest.
18-19 (d) The financial statement shall be verified. However, a
18-20 statement filed without an affidavit of verification, or filed with
18-21 a defective affidavit, is covered by Section 1.121, Chapter 304,
18-22 Acts of the 72nd Legislature, Regular Session, 1991 (Article
18-23 6252-9d.1, Vernon's Texas Civil Statutes).
18-24 SECTION 3.03. Section 7C, Chapter 421, Acts of the 63rd
18-25 Legislature, Regular Session, 1973 (Article 6252-9b, Vernon's Texas
18-26 Civil Statutes), is repealed.
18-27 ARTICLE 4
19-1 SECTION 4.01. Section 36.01(5), Penal Code, is amended to
19-2 read as follows:
19-3 (5) "Benefit" means anything reasonably regarded as
19-4 pecuniary gain or pecuniary advantage, and includes a <including>
19-5 benefit to any other person in whose welfare the beneficiary has a
19-6 direct and substantial interest, but does not include food and
19-7 beverage with a combined value of less than $50 for each occasion.
19-8 SECTION 4.02. Sections 36.02(a) and (d), Penal Code, are
19-9 amended to read as follows:
19-10 (a) A person commits an offense if he intentionally or
19-11 knowingly offers, confers, or agrees to confer on another, or
19-12 solicits, accepts, or agrees to accept from another:
19-13 (1) any benefit as consideration for the recipient's
19-14 decision, opinion, recommendation, vote, or other exercise of
19-15 discretion as a public servant, party official, or voter;
19-16 (2) any benefit as consideration for the recipient's
19-17 decision, vote, recommendation, or other exercise of official
19-18 discretion in a judicial or administrative proceeding;
19-19 (3) any benefit as consideration for a violation of a
19-20 duty imposed by law on a public servant or party official; or
19-21 (4) any benefit that is a political contribution as
19-22 defined by Title 15, Election Code, or that is an expenditure
19-23 required to be reported under Chapter 305, Government Code, if the
19-24 benefit was offered, conferred, solicited, accepted, or agreed to
19-25 pursuant to an express agreement to take or withhold a specific
19-26 exercise of official discretion if such exercise of official
19-27 discretion would not have been taken or withheld but for the
20-1 benefit; notwithstanding any rule of evidence or jury instruction
20-2 allowing factual inferences in the absence of certain evidence,
20-3 direct evidence of the express agreement shall be required in any
20-4 prosecution under this subdivision.
20-5 (d) It is an exception to the application of Subdivisions
20-6 (1), (2), and (3) of Subsection (a) of this section that the
20-7 benefit is a political contribution <accepted> as defined by Title
20-8 15, Election Code, or an expenditure required to be reported under
20-9 Chapter 305, Government Code.
20-10 SECTION 4.03. Section 36.07(b), Penal Code, is amended to
20-11 read as follows:
20-12 (b) This section does not prohibit a public servant from
20-13 accepting transportation and lodging expenses <permitted under
20-14 Section 305.025(b)(2), Government Code,> in connection with a
20-15 conference or similar event in which the public servant renders
20-16 services, such as addressing an audience or engaging in a seminar,
20-17 to the extent that those services are more than merely perfunctory,
20-18 or from accepting meals in connection with such an event.
20-19 SECTION 4.04. Section 36.08, Penal Code, is amended by
20-20 adding Subsection (i) to read as follows:
20-21 (i) A public servant who receives an unsolicited benefit
20-22 that the public servant is prohibited from accepting under this
20-23 section may donate the benefit to a governmental entity that has
20-24 the authority to accept the gift or may donate the benefit to a
20-25 recognized tax-exempt charitable organization formed for
20-26 educational, religious, or scientific purposes.
20-27 SECTION 4.05. Section 36.10(a), Penal Code, is amended to
21-1 read as follows:
21-2 (a) Sections 36.08 (Gift to Public Servant) and 36.09
21-3 (Offering Gift to Public Servant) of this code do not apply to:
21-4 (1) a fee prescribed by law to be received by a public
21-5 servant or any other benefit to which the public servant is
21-6 lawfully entitled or for which he gives legitimate consideration in
21-7 a capacity other than as a public servant;
21-8 (2) a gift or other benefit conferred on account of
21-9 kinship or a personal, professional, or business relationship
21-10 independent of the official status of the recipient; or
21-11 (3) a benefit to a public servant required to file a
21-12 statement under Chapter 421, Acts of the 63rd Legislature, Regular
21-13 Session, 1973 (Article 6252-9b, Vernon's Texas Civil Statutes), or
21-14 a report under Title 15, Election Code, that is derived from a
21-15 function in honor or appreciation of the recipient if:
21-16 (A) the benefit and the source of any benefit in
21-17 excess of $50 is reported in the statement; and
21-18 (B) the benefit is used solely to defray the
21-19 expenses that accrue in the performance of duties or activities in
21-20 connection with the office which are nonreimbursable by the state
21-21 or political subdivision;
21-22 (4) a political contribution as defined by Title 15,
21-23 Election Code; <or>
21-24 (5) a gift, award, or memento to a member of the
21-25 legislative or executive branch that is required to be reported
21-26 under Chapter 305, Government Code; or
21-27 (6) an item with a value of less than $50, excluding
22-1 cash or a negotiable instrument as described by Section 3.104,
22-2 Business & Commerce Code.
22-3 SECTION 4.06. Section 39.01, Penal Code, is amended by
22-4 adding Subsection (d) to read as follows:
22-5 (d) A discount or award given for travel, such as frequent
22-6 flyer miles, rental car or hotel discounts, or food coupons, are
22-7 not things of value belonging to the government for purposes of
22-8 this section due to the administrative difficulty and cost involved
22-9 in recapturing the discount or award for a governmental entity.
22-10 SECTION 4.07. (a) The change in law made by this article
22-11 applies only to an offense committed on or after the effective date
22-12 of this Act. For purposes of this section, an offense is committed
22-13 before the effective date of this Act if any element of the offense
22-14 occurs before the effective date.
22-15 (b) An offense committed before the effective date of this
22-16 Act is covered by the law in effect when the offense was committed,
22-17 and the former law is continued in effect for that purpose.
22-18 ARTICLE 5
22-19 SECTION 5.01. Section 251.001, Election Code, is amended by
22-20 amending Subdivisions (4), (9), (12), and (14) and adding
22-21 Subdivision (21) to read as follows:
22-22 (4) "Officeholder contribution" means a contribution
22-23 to an officeholder or political committee that is offered or given
22-24 with the intent that it be used to defray expenses that:
22-25 (A) are incurred by the officeholder in
22-26 performing a duty or engaging in an activity in connection with the
22-27 office; and
23-1 (B) are not actually reimbursed <reimbursable>
23-2 with public money.
23-3 (9) "Officeholder expenditure" means an expenditure
23-4 made by any person to defray expenses that:
23-5 (A) are incurred by an officeholder in
23-6 performing a duty or engaging in an activity in connection with the
23-7 office; and
23-8 (B) are not actually reimbursed <reimbursable>
23-9 with public money.
23-10 (12) "Political committee" means a group of persons
23-11 that has as a principal purpose accepting political contributions
23-12 or making political expenditures. The term does not include a
23-13 group of candidates or officeholders all of whom are otherwise
23-14 required to report under this title.
23-15 (14) "General-purpose committee" means a political
23-16 committee that has among its principal purposes:
23-17 (A) supporting or opposing:
23-18 (i) two or more candidates who are
23-19 unidentified or are seeking offices that are unknown; or
23-20 (ii) one or more unidentified measures
23-21 <that are unidentified>; or
23-22 (B) assisting two or more officeholders who are
23-23 unidentified.
23-24 (21) "Unidentified measure" means a question or
23-25 proposal that is intended to be submitted in an election for an
23-26 expression of the voters' will and that is not yet legally required
23-27 to be submitted in an election. The term does not include the
24-1 circulation or submission of a petition to determine whether a
24-2 question or proposal is required to be submitted in an election for
24-3 an expression of the voters' will.
24-4 SECTION 5.02. Section 252.001, Election Code, is amended to
24-5 read as follows:
24-6 Sec. 252.001. Appointment of Campaign Treasurer Required.
24-7 Except as provided by Section 254.1811, each <Each> candidate and
24-8 each political committee shall appoint a campaign treasurer as
24-9 provided by this chapter.
24-10 SECTION 5.03. Section 253.031, Election Code, is amended to
24-11 read as follows:
24-12 Sec. 253.031. Contribution and Expenditure Without Campaign
24-13 Treasurer Prohibited. (a) A candidate may not knowingly accept a
24-14 campaign contribution or make or authorize a campaign expenditure
24-15 at a time when a campaign treasurer appointment for the candidate
24-16 is not in effect.
24-17 (b) A political committee may not knowingly accept a
24-18 political contribution or make or authorize a political expenditure
24-19 at a time when a campaign treasurer appointment for the committee
24-20 is not in effect.
24-21 (c) A political committee may not knowingly make or
24-22 authorize a campaign contribution or campaign expenditure
24-23 supporting or opposing a candidate for an office specified by
24-24 Section 252.005(1) in a primary or general election unless the
24-25 committee's campaign treasurer appointment has been filed not later
24-26 than the 30th day before the appropriate election day.
24-27 (d) This section does not apply to a political party's
25-1 county executive committee that accepts political contributions or
25-2 makes political expenditures, except that:
25-3 (1) a county executive committee that accepts
25-4 political contributions or makes political expenditures shall
25-5 maintain the records required by Section 254.001; and
25-6 (2) a county executive committee that accepts
25-7 political contributions or makes political expenditures that, in
25-8 the aggregate, exceed $5,000 in a calendar year shall file:
25-9 (A) a campaign treasurer appointment as required
25-10 by Section 252.001 not later than the 15th day after the date that
25-11 amount is exceeded; and
25-12 (B) the reports required by Subchapter F,
25-13 Chapter 254, including in the political committee's first report
25-14 all political contributions accepted and all political expenditures
25-15 made before the effective date of the campaign treasurer
25-16 appointment.
25-17 (e) This section does not apply to an out-of-state political
25-18 committee unless the committee is subject to Chapter 252 under
25-19 Section 251.005.
25-20 (f) This section does not apply to a political committee
25-21 that is not required to appoint a campaign treasurer under
25-22 Section 254.1811.
25-23 (g) A person who violates this section commits an offense.
25-24 An offense under this section is a Class A misdemeanor.
25-25 SECTION 5.04. Section 254.181(a), Election Code, is amended
25-26 to read as follows:
25-27 (a) An opposed candidate <or specific-purpose committee>
26-1 required to file reports under Subchapter C <or E> may file a
26-2 report under this subchapter instead if the candidate <or
26-3 committee> does not intend to accept political contributions that
26-4 in the aggregate exceed $500 or to make political expenditures that
26-5 in the aggregate exceed $500 in connection with the election.
26-6 SECTION 5.05. Subchapter G, Chapter 254, Election Code, is
26-7 amended by adding Section 254.1811 to read as follows:
26-8 Sec. 254.1811. REPORT NOT REQUIRED. A political committee
26-9 is not required to appoint a campaign treasurer or file reports
26-10 under Subchapter E or F if the committee does not intend to accept
26-11 political contributions that in the aggregate exceed $500 or to
26-12 make political expenditures that in the aggregate exceed $500 in
26-13 connection with an election.
26-14 SECTION 5.06. Section 254.182, Election Code, is amended to
26-15 read as follows:
26-16 Sec. 254.182. Declaration of Intent Required. (a) To be
26-17 entitled to file reports under this subchapter, an opposed
26-18 candidate <or specific-purpose committee> must file with the
26-19 campaign treasurer appointment a written declaration of intent not
26-20 to exceed $500 in political contributions or political expenditures
26-21 in the election.
26-22 (b) To be entitled to accept political contributions or make
26-23 political expenditures without appointing a campaign treasurer or
26-24 filing reports under Subchapter E or F, a political committee must
26-25 file a written declaration of intent not to exceed $500 in
26-26 political contributions or political expenditures in the election.
26-27 The declaration of intent must be filed with the authority with
27-1 whom the committee would file a campaign treasurer appointment if
27-2 one were required.
27-3 (c) The declaration of intent must contain a statement that
27-4 the candidate or committee understands that if the $500 maximum for
27-5 contributions and expenditures is exceeded, the candidate or
27-6 committee is required to file reports under Subchapter C, <or> E,
27-7 or F, as applicable.
27-8 SECTION 5.07. Sections 254.183(a) and (b), Election Code,
27-9 are amended to read as follows:
27-10 (a) An opposed candidate or a political <specific-purpose>
27-11 committee that exceeds $500 in political contributions or political
27-12 expenditures in the election shall file reports as required by
27-13 Subchapter C, <or> E, or F, as applicable.
27-14 (b) If a candidate or committee exceeds the $500 maximum
27-15 after the filing deadline prescribed by Subchapter C, <or> E, or F
27-16 for the first report required to be filed under the appropriate
27-17 subchapter, the candidate or committee shall file a report not
27-18 later than 48 hours after the maximum is exceeded.
27-19 SECTION 5.08. Section 254.184, Election Code, is amended to
27-20 read as follows:
27-21 Sec. 254.184. Applicability of Regular Reporting
27-22 Requirements. (a) Subchapter C <or E, as applicable,> applies to
27-23 an opposed candidate <or specific-purpose committee> filing under
27-24 this subchapter to the extent that that <the appropriate>
27-25 subchapter does not conflict with this subchapter.
27-26 (b) A candidate <or committee> filing under this subchapter
27-27 is not required to file any reports of political contributions and
28-1 political expenditures other than the semiannual reports required
28-2 to be filed not later than July 15 and January 15.
28-3 SECTION 5.09. The change in law made by Section 5.03 of this
28-4 Act applies only to an offense committed on or after the effective
28-5 date of this Act. An offense committed before that date is covered
28-6 by the law in effect when the offense occurred, and that law is
28-7 continued in effect for this purpose.
28-8 ARTICLE 6
28-9 SECTION 6.01. This Act takes effect September 1, 1993.
28-10 SECTION 6.02. The importance of this legislation and the
28-11 crowded condition of the calendars in both houses create an
28-12 emergency and an imperative public necessity that the
28-13 constitutional rule requiring bills to be read on three several
28-14 days in each house be suspended, and this rule is hereby suspended.