By: Carriker, Rosson S.B. No. 1005
A BILL TO BE ENTITLED
AN ACT
1-1 relating to technical and substantive amendments to the laws
1-2 relating to ethics of public servants, including laws governing the
1-3 Texas Ethics Commission, communications to influence legislation or
1-4 administrative action, the filing of personal financial statements,
1-5 conflicts of interest, the giving or acceptance of certain
1-6 benefits, and political funds and political advertising; providing
1-7 civil and criminal penalties.
1-8 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-9 ARTICLE 1
1-10 SECTION 1.01. Article 1, Chapter 304, Acts of the 72nd
1-11 Legislature, Regular Session, 1991 (Article 6252-9d.1, Vernon's
1-12 Texas Civil Statutes), is amended by adding Sections 1.03, 1.04,
1-13 and 1.05 to read as follows:
1-14 Sec. 1.03. RESTRICTIONS ON COMMISSION MEMBERS. A person who
1-15 is appointed to the commission may not at the time of appointment
1-16 or during service on the commission be:
1-17 (1) an officer of the state in a capacity other than
1-18 as a member of the commission;
1-19 (2) an officer of a political subdivision, political
1-20 party, or political committee;
1-21 (3) a member of the legislature;
1-22 (4) a candidate or campaign treasurer subject to Title
1-23 15, Election Code, and its subsequent amendments; or
1-24 (5) a person required to be registered under Chapter
2-1 305, Government Code, and its subsequent amendments.
2-2 Sec. 1.04. REMOVAL OF COMMISSION MEMBERS. (a) It is a
2-3 ground for removal of a member from the commission if the member:
2-4 (1) is ineligible under Section 1.03 of this article;
2-5 (2) cannot discharge the member's duties for a
2-6 substantial part of the term for which the member is appointed
2-7 because of illness or disability;
2-8 (3) is absent from two consecutive regularly scheduled
2-9 commission meetings that the member is eligible to attend during a
2-10 calendar year unless the absence is excused by majority vote of the
2-11 commission; or
2-12 (4) has a final conviction for a violation of Chapter
2-13 36, Penal Code, and its subsequent amendments.
2-14 (b) The validity of an action of the commission is not
2-15 affected by the fact that it is taken when a ground for removal of
2-16 a commission member exists.
2-17 (c) If the chairman of the commission has knowledge that a
2-18 potential ground for removal of a member exists, the chairman shall
2-19 notify the appropriate appointing authority of the ground.
2-20 (d) If any two commission members have knowledge that a
2-21 potential ground for removal of the chairman exists, the members
2-22 shall notify the appropriate appointing authority of the ground.
2-23 Sec. 1.05. FILLING OF VACANCIES. (a) A vacancy on the
2-24 commission shall be filled as expeditiously as possible but not
2-25 later than the 90th day after the date on which the vacancy occurs.
2-26 (b) The members of the legislature who are required to
2-27 submit a list to the official making the appointment to fill the
3-1 vacancy shall submit the list as expeditiously as possible but not
3-2 later than the 30th day after the date on which the vacancy occurs.
3-3 If the governor is the appointing official and rejects all names on
3-4 the list, a new list must be submitted not later than the 30th day
3-5 after the date of the rejection.
3-6 SECTION 1.02. Subsection (b), Section 1.06, Chapter 304,
3-7 Acts of the 72nd Legislature, Regular Session, 1991 (Article
3-8 6252-9d.1, Vernon's Texas Civil Statutes), is amended to read as
3-9 follows:
3-10 (b) A vacancy on the commission shall be excluded when <may
3-11 not be considered in> determining the membership of the commission
3-12 for the purpose of a quorum. However, if there is a vacancy on the
3-13 commission, a vote of the commission is not effective unless at
3-14 least one member who votes with the majority is from a different
3-15 political party than at least one other member who votes with the
3-16 majority.
3-17 SECTION 1.03. Section 1.11, Chapter 304, Acts of the 72nd
3-18 Legislature, Regular Session, 1991 (Article 6252-9d.1, Vernon's
3-19 Texas Civil Statutes), is amended by amending Subsection (b) and
3-20 adding Subsection (g) to read as follows:
3-21 (b) The commission may:
3-22 (1) issue subpoenas to compel the attendance of
3-23 witnesses and the production of documents under Section 1.14 of
3-24 this article;
3-25 (2) hold hearings, on its own motion <adopted by a
3-26 record vote of at least six commission members> or on a sworn
3-27 complaint, and render decisions on complaints or reports of
4-1 violations as provided by this article;
4-2 (3) agree to the settlement of issues;
4-3 (4) on motion adopted by a record vote <of at least
4-4 six commission members>, initiate civil enforcement actions and
4-5 refer matters to the appropriate prosecuting attorney for criminal
4-6 prosecution;
4-7 (5) disseminate, through pamphlets and seminars,
4-8 explanations and compliance guidelines concerning any law
4-9 administered and enforced by the commission;
4-10 (6) develop computer software to facilitate the
4-11 discharge of statutory duties of the commission;
4-12 (7) contract with persons and agencies to administer
4-13 and carry out this article and rules, standards, and orders adopted
4-14 under this article, but excluding any enforcement authority;
4-15 (8) accept gifts, grants, and donations for the
4-16 administration of its duties; and
4-17 (9) adopt rules to administer this article or any law
4-18 administered and enforced by the commission, including rules that
4-19 define terms used in this article or those laws <provided that a
4-20 rule must be adopted on the affirmative vote of at least six
4-21 members of the commission>.
4-22 (g) The commission by rule shall provide a method for a
4-23 person to verify or swear to a statement, registration, or report
4-24 filed with the commission by electronic data transmittal processes.
4-25 SECTION 1.04. Subsection (b), Section 1.13, Chapter 304,
4-26 Acts of the 72nd Legislature, Regular Session, 1991 (Article
4-27 6252-9d.1, Vernon's Texas Civil Statutes), is amended to read as
5-1 follows:
5-2 (b) The commission may <by record vote of at least six
5-3 commission members> perform a complete audit only at an informal
5-4 and formal hearing.
5-5 SECTION 1.05. Section 1.14, 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 Sec. 1.14. Subpoenas. In connection with an informal
5-9 hearing or a formal hearing, the commission may subpoena and
5-10 examine witnesses and documents as authorized by this article that
5-11 directly relate to a sworn complaint. A copy of a subpoena of the
5-12 commission must be delivered to the respondent. At the written
5-13 request of <at least six members of> the commission, a peace
5-14 officer shall serve a subpoena of the commission in the manner
5-15 prescribed for service of a district court subpoena. If a person
5-16 to whom a subpoena is directed refuses to appear, refuses to answer
5-17 inquiries, or fails or refuses to produce books, records, or other
5-18 documents that were under the person's control when the demand was
5-19 made, the commission shall report that fact to a district court in
5-20 Travis County. The district court shall enforce the subpoena by
5-21 attachment proceedings for contempt in the same manner as the court
5-22 enforces a subpoena issued by the court. A respondent has the
5-23 right to quash a subpoena as provided by law. A subpoenaed witness
5-24 who attends a commission hearing is entitled to the same mileage
5-25 and per diem as a witness who appears before a grand jury.
5-26 SECTION 1.06. Subsection (a), Section 1.17, Chapter 304,
5-27 Acts of the 72nd Legislature, Regular Session, 1991 (Article
6-1 6252-9d.1, Vernon's Texas Civil Statutes), is amended to read as
6-2 follows:
6-3 (a) By a record vote <of at least six members>, the
6-4 commission, without a sworn complaint, may initiate a preliminary
6-5 review of the matter that is the subject of the motion.
6-6 SECTION 1.07. Section 1.21, Chapter 304, Acts of the 72nd
6-7 Legislature, Regular Session, 1991 (Article 6252-9d.1, Vernon's
6-8 Texas Civil Statutes), is amended to read as follows:
6-9 Sec. 1.21. Confidentiality; offense. (a) Except as
6-10 provided by Subsection (c) of this section, proceedings at a
6-11 preliminary review or informal hearing performed by the commission,
6-12 a sworn complaint, and documents relating to and any additional
6-13 evidence relating to the processing, preliminary review, informal
6-14 hearing, or resolution of a sworn complaint or motion <are
6-15 confidential and> may not be disclosed by the commission or a
6-16 person employed by the commission unless entered into the record of
6-17 a formal hearing or a judicial proceeding, except that a document
6-18 or statement that was previously public information remains public
6-19 information.
6-20 (b) Except as provided by Subsection (c) of this section,
6-21 the open records law, Chapter 424, Acts of the 63rd Legislature,
6-22 Regular Session, 1973 (Article 6252-17a, Vernon's Texas Civil
6-23 Statutes), does not apply to documents or any additional evidence
6-24 relating to the processing, preliminary review, informal hearing,
6-25 or resolution of sworn complaints or motions. The open meetings
6-26 law, Chapter 271, Acts of the 60th Legislature, Regular Session,
6-27 1967 (Article 6252-17, Vernon's Texas Civil Statutes), does not
7-1 apply to the processing, preliminary review, informal hearing, or
7-2 resolution of sworn complaints or motions.
7-3 (c) An order issued by the commission after the completion
7-4 of a preliminary review or an informal hearing determining that a
7-5 violation <other than a technical violation or de minimis> has
7-6 occurred is not confidential.
7-7 (d) A person commits an offense if the person discloses
7-8 information made confidential by this section. An offense under
7-9 this subsection is a Class A misdemeanor.
7-10 (e) In addition to other penalties, a person who <files a
7-11 frivolous complaint or> discloses information in violation of <made
7-12 confidential by> this section is civilly liable to the respondent
7-13 in an amount equal to the greater of $10,000 or the amount of
7-14 actual damages incurred by the respondent, including court costs
7-15 and attorney fees.
7-16 SECTION 1.08. Subsection (a), Section 1.23, Chapter 304,
7-17 Acts of the 72nd Legislature, Regular Session, 1991 (Article
7-18 6252-9d.1, Vernon's Texas Civil Statutes), is amended to read as
7-19 follows:
7-20 (a) Not later than the 30th business day after the date the
7-21 formal hearing is completed, the commission by a motion adopted by
7-22 record vote <of at least six members, if the final decision is that
7-23 a violation has occurred, or by five members if the final decision
7-24 is that a violation has not occurred> shall issue:
7-25 (1) a final decision stating the resolution of the
7-26 formal hearing; and
7-27 (2) a written report stating in detail the
8-1 commission's findings of fact, conclusions of law, and
8-2 recommendation of criminal referral or imposition of civil penalty,
8-3 if any.
8-4 SECTION 1.09. Subsection (a), Section 1.28, Chapter 304,
8-5 Acts of the 72nd Legislature, Regular Session, 1991 (Article
8-6 6252-9d.1, Vernon's Texas Civil Statutes), is amended to read as
8-7 follows:
8-8 (a) The commission may:
8-9 (1) impose a civil penalty of not more than $10,000
8-10 <$5,000>, or triple the amount at issue under a law administered
8-11 and enforced by the commission, whichever amount is greater, for a
8-12 delay in complying with a commission order or for a violation of a
8-13 law administered and enforced by the commission;
8-14 (2) impose a civil penalty of not more than $10,000
8-15 for the filing of a frivolous or bad-faith complaint;
8-16 (3) following a criminal conviction for an offense
8-17 under Chapter 36, Penal Code, or Chapter 305, Government Code,
8-18 deny, suspend, or revoke the registration of a person required to
8-19 be registered under Chapter 305, Government Code;
8-20 (4) notify the appropriate regulatory or supervisory
8-21 entity, including any agency, the State Commission on Judicial
8-22 Conduct, the senate, the house of representatives, or the State Bar
8-23 of Texas, of a violation of a law administered and enforced by the
8-24 commission;
8-25 (5) issue and enforce cease and desist orders to stop
8-26 violations; and
8-27 (6) issue affirmative orders to require compliance
9-1 with the laws administered and enforced by the commission.
9-2 SECTION 1.10. Subsection (a), Section 1.31, Chapter 304,
9-3 Acts of the 72nd Legislature, Regular Session, 1991 (Article
9-4 6252-9d.1, Vernon's Texas Civil Statutes), is amended to read as
9-5 follows:
9-6 (a) A member of the commission who is the subject of a
9-7 formal investigation by the commission, of a sworn complaint filed
9-8 with the commission or a motion, or of a motion <by record vote of
9-9 at least six members> of the commission may not participate in
9-10 commission proceedings relating to the investigation, complaint, or
9-11 motion.
9-12 SECTION 1.11. Section 1.26, Chapter 304, Acts of the 72nd
9-13 Legislature, Regular Session, 1991 (Article 6252-9d.1, Vernon's
9-14 Texas Civil Statutes), is repealed.
9-15 ARTICLE 2
9-16 SECTION 2.01. Subsection (e), Section 305.0011, Government
9-17 Code, is amended to read as follows:
9-18 (e) The commission may adopt rules for the implementation of
9-19 this section consistent with this chapter, the Texas Disciplinary
9-20 Rules of Professional Conduct <Code of Professional
9-21 Responsibility>, and the common law of agency.
9-22 SECTION 2.02. Section 305.003, Government Code, is amended
9-23 to read as follows:
9-24 Sec. 305.003. PERSONS REQUIRED TO REGISTER. (a) A person
9-25 must register with the commission under this chapter if the person:
9-26 (1) makes a total expenditure of an amount determined
9-27 by commission rule but not less than $500 <$200> in a calendar
10-1 quarter, not including the person's own travel, food, or lodging
10-2 expenses or the person's own membership dues, on activities
10-3 described in Section 305.006(b) to communicate directly with one or
10-4 more members of the legislative or executive branch to influence
10-5 legislation or administrative action; and <or>
10-6 (2) receives compensation or reimbursement, not
10-7 including reimbursement for the person's own travel, food, or
10-8 lodging expenses or the person's own membership dues, of more than
10-9 an amount determined by commission rule but not less than $500
10-10 <$200> in a calendar quarter from another person to communicate
10-11 directly with a member of the legislative or executive branch to
10-12 influence legislation or administrative action.
10-13 (b) Notwithstanding Subsection (a), a person must register
10-14 with the commission under this chapter if the person receives
10-15 compensation or reimbursement, not including reimbursement for the
10-16 person's own travel, food, or lodging expenses or the person's own
10-17 membership dues, of more than $7,500 in a calendar quarter from
10-18 another person to communicate directly with a member of the
10-19 legislative or executive branch to influence legislation or
10-20 administrative action.
10-21 (c) Subsection (a)(2) requires a person to register if the
10-22 person, as part of his regular employment, has communicated
10-23 directly with a member of the legislative or executive branch to
10-24 influence legislation or administrative action on behalf of the
10-25 person by whom he is compensated or reimbursed, whether or not the
10-26 person receives any compensation for the communication in addition
10-27 to the salary for that regular employment. However, Subsection
11-1 (a)(2) does not require a member of the judicial, legislative, or
11-2 executive branch of state government or an officer or employee of a
11-3 political subdivision of the state to register.
11-4 <(c) A person who communicates directly with a member of the
11-5 executive branch to influence administrative action is not required
11-6 to register under Subsection (a)(2) if the person is an attorney of
11-7 record or pro se, the person enters his appearance in a public
11-8 record through pleadings or other written documents in a docketed
11-9 case pending before a state agency, and that communication is the
11-10 only activity that would otherwise require the person to register.>
11-11 SECTION 2.03. Subchapter A, Chapter 305, Government Code, is
11-12 amended by adding Section 305.0031 to read as follows:
11-13 Sec. 305.0031. FILING BY PERSONS NOT REQUIRED TO REGISTER.
11-14 (a) A person shall file a form with the commission if the person:
11-15 (1) receives any compensation or reimbursement, not
11-16 including reimbursement for the person's own travel, food, or
11-17 lodging expenses or the person's own membership dues, to
11-18 communicate directly with a member of the legislative or executive
11-19 branch to influence legislation or administrative action;
11-20 (2) is not required to register under Section 305.003;
11-21 (3) is not excepted from registration under Section
11-22 305.004 or 305.0041;
11-23 (4) is not required by commission rule to file
11-24 information under Section 305.0051; and
11-25 (5) is not a member of the legislative branch.
11-26 (b) The form must be filed not later than the fifth day
11-27 after the date on which the person makes the first direct
12-1 communication with a member of the legislative or executive branch
12-2 to influence legislation or administrative action.
12-3 (c) The form must contain the filer's full name, address,
12-4 and telephone number and the name and address of each person who
12-5 compensates or reimburses the person to communicate directly with a
12-6 member of the legislative or executive branch to influence
12-7 legislation or administrative action.
12-8 SECTION 2.04. Section 305.004, Government Code, is amended
12-9 to read as follows:
12-10 Sec. 305.004. Exceptions. The following persons are not
12-11 required to register under this chapter:
12-12 (1) a person who owns, publishes, or is employed by a
12-13 newspaper, any other regularly published periodical, a radio
12-14 station, a television station, a wire service, or any other bona
12-15 fide news medium that in the ordinary course of business
12-16 disseminates news, letters to the editors, editorial or other
12-17 comment, or paid advertisements that directly or indirectly oppose
12-18 or promote legislation or administrative action, if the person does
12-19 not engage in further or other activities that require registration
12-20 under this chapter and does not represent another person in
12-21 connection with influencing legislation or administrative action;
12-22 (2) a person whose only direct communication with a
12-23 member of the legislative or executive branch to influence
12-24 legislation or administrative action is an appearance before or
12-25 testimony to one or more members of the legislative or executive
12-26 branch in a hearing conducted by or on behalf of either the
12-27 legislative or the executive branch and who does not receive
13-1 <special or extra> compensation for the appearance other than
13-2 compensation for the person's regular occupational duties and
13-3 actual expenses incurred in attending the hearing;
13-4 (3) a person whose only activity is to encourage or
13-5 solicit members, employees, or stockholders of an entity by whom
13-6 the person is reimbursed, employed, or retained to communicate
13-7 directly with members of the legislative or executive branch to
13-8 influence legislation or administrative action;
13-9 (4) a person whose only activity to influence
13-10 legislation or administrative action is to compensate or reimburse
13-11 an individual registrant to act in the person's behalf to
13-12 communicate directly with a member of the legislative or executive
13-13 branch to influence legislation or administrative action;
13-14 (5) a person whose only activity to influence
13-15 legislation or administrative action is attendance at a meeting or
13-16 entertainment event attended by a member of the legislative or
13-17 executive branch if the total cost of the meeting or entertainment
13-18 event is paid by a business entity, union, or association;
13-19 (6) a person whose only compensation subject to
13-20 Section 305.003(a)(2) consists of reimbursement for any wages not
13-21 earned due to attendance at a meeting or entertainment event,
13-22 travel to and from the meeting or entertainment event, admission to
13-23 the meeting or entertainment event, and any food and beverage
13-24 consumed at the meeting or entertainment event if the meeting or
13-25 entertainment event is attended by a member of the legislative or
13-26 executive branch and if the total cost of the meeting or
13-27 entertainment event is paid by a business entity, union, or
14-1 association; and
14-2 (7) a person who communicates directly with a member
14-3 of the legislative or executive branch on behalf of a political
14-4 party concerning legislation or administrative action, and whose
14-5 expenditures and compensation, as described in Section 305.003,
14-6 combined do not exceed $5,000 a calendar year.
14-7 SECTION 2.05. Subchapter A, Chapter 305, Government Code, is
14-8 amended by adding Section 305.0041 to read as follows:
14-9 Sec. 305.0041. REGISTRATION EXCEPTION FOR CERTAIN ENTITIES.
14-10 A corporation, association, firm, partnership, committee, club,
14-11 organization, or group of persons voluntarily acting in concert is
14-12 not required to register under this chapter if a registrant whom
14-13 the entity reimburses, retains, or employs reports expenditures
14-14 attributable to the entity that are required to be reported under
14-15 Section 305.006. A registrant who is present at the time of an
14-16 expenditure by the entity in order to satisfy the presence
14-17 requirements of Section 305.024(a)(7) shall report those
14-18 expenditures on behalf of the entity.
14-19 SECTION 2.06. Subsections (c) and (f), Section 305.005,
14-20 Government Code, are amended to read as follows:
14-21 (c) The registration fee and registration renewal fee are:
14-22 (1) $100 for a registrant employed by an organization
14-23 or organizations exempt from federal income tax under Section
14-24 501(c)(3) or 501(c)(4), Internal Revenue Code of 1986, and not
14-25 employed by any other person or type of organization for purposes
14-26 regulated under this chapter; or
14-27 (2) $500 <$300> for any other registrant.
15-1 (f) The registration must be written and verified and must
15-2 contain:
15-3 (1) the registrant's full name and address;
15-4 (2) the registrant's normal business, business phone
15-5 number, and business address;
15-6 (3) the full name and address of each person:
15-7 (A) who reimburses, retains, or employs the
15-8 registrant to communicate directly with a member of the legislative
15-9 or executive branch to influence legislation or administrative
15-10 action; and
15-11 (B) on whose behalf the registrant has
15-12 communicated directly with a member of the legislative or executive
15-13 branch to influence legislation or administrative action;
15-14 (4) the subject matter and, if applicable, the bill
15-15 number, docket number, or other legislative or administrative
15-16 designation of the legislation or administrative action that is the
15-17 subject of the registrant's direct communication with a member of
15-18 the legislative or executive branch;
15-19 (5) for each person employed or retained by the
15-20 registrant for the purpose of assisting in direct communication
15-21 with a member of the legislative or executive branch to influence
15-22 legislation or administrative action:
15-23 (A) the full name, business address, occupation,
15-24 and date of employment or retention of the person by the
15-25 registrant; and
15-26 (B) the subject matter and, if applicable, the
15-27 bill number, docket number, or other administrative designation of
16-1 the legislation or administrative action to which the person's
16-2 activities reportable under this section were related; and
16-3 (6) the amount of compensation or reimbursement paid
16-4 by each person who reimburses, retains, or employs the registrant
16-5 for the purpose of communicating directly with a member of the
16-6 legislative or executive branch or on whose behalf the registrant
16-7 communicates directly with a member of the legislative or executive
16-8 branch, except that if the registrant will be paid a specific
16-9 amount for the direct communication by that person under a contract
16-10 or other legally enforceable agreement, the registrant shall report
16-11 that amount instead and shall indicate the period of time covered
16-12 by the contract or other agreement.
16-13 SECTION 2.07. Section 305.006, Government Code, is amended
16-14 by adding Subsection (g) to read as follows:
16-15 (g) A registrant is not required to report under this
16-16 chapter an expenditure for the registrant's own transportation or
16-17 lodging expenses made to communicate directly with a member of the
16-18 legislative or executive branch if the registrant makes no
16-19 expenditures in connection with that occasion for the member's
16-20 transportation or lodging expenses.
16-21 SECTION 2.08. Subsection (a), Section 305.0062, Government
16-22 Code, is amended to read as follows:
16-23 (a) The report filed under Section 305.006 must also contain
16-24 the total expenditures described by Section 305.006(b) that are
16-25 directly attributable to persons in the following categories
16-26 <members of the legislative or executive branch and those that are
16-27 directly attributable to the registrant>. The expenditures must be
17-1 stated in only one of the following categories:
17-2 (1) state senators;
17-3 (2) state representatives;
17-4 (3) elected or appointed state officers, other than
17-5 those described by Subdivision (1) or (2);
17-6 (4) legislative agency employees;
17-7 (5) executive agency employees;
17-8 (6) the immediate family of a member of the
17-9 legislative or executive branch;
17-10 (7) the registrant; or <and>
17-11 (8) events to which all legislators are invited.
17-12 SECTION 2.09. Subchapter A, Chapter 305, Government Code, is
17-13 amended by adding Section 305.0064 to read as follows:
17-14 Sec. 305.0064. AMENDMENT OF SUBSTANTIALLY COMPLETE AND
17-15 CORRECT DOCUMENT. A person required to file a registration,
17-16 report, or other disclosure document under this chapter may, in the
17-17 commission's discretion, amend the document within a reasonable
17-18 time without incurring a penalty if the document originally filed
17-19 was substantially complete and correct and not misleading.
17-20 SECTION 2.10. Section 305.007, Government Code, is amended
17-21 by amending Subsection (a) and adding Subsections (c) and (d) to
17-22 read as follows:
17-23 (a) Except as otherwise provided by this section, the <The>
17-24 registrant must file the report required by Section 305.006 between
17-25 the 1st and 10th day of each month. The report must cover the
17-26 activities occurring during the previous month.
17-27 (c) A registrant may elect to report an expenditure on the
18-1 report that covers the reporting period in which:
18-2 (1) the expenditure is made; or
18-3 (2) the bill for the expenditure is received, if the
18-4 character of the expenditure is such that under normal business
18-5 practice the amount of the expenditure is not disclosed until the
18-6 bill is received.
18-7 (d) A registrant may elect to report under Subsection (c)(2)
18-8 only if the registrant reports a reasonable estimate of the amount
18-9 of the expenditure on the report that covers the reporting period
18-10 in which the expenditure is made.
18-11 SECTION 2.11. Subchapter A, Chapter 305, Government Code, is
18-12 amended by adding Section 305.012 to read as follows:
18-13 Sec. 305.012. AFFIDAVIT. (a) Each registration, report, or
18-14 termination notice filed under this chapter must be accompanied by
18-15 an affidavit executed by the person required to file the
18-16 registration, report, or termination notice.
18-17 (b) The affidavit must contain the statement: "I swear, or
18-18 affirm, that the accompanying document is true and correct to the
18-19 best of my knowledge and includes all information required to be
18-20 reported by me under Chapter 305, Government Code."
18-21 SECTION 2.12. Subchapter A, Chapter 305, Government Code, is
18-22 amended by adding Section 305.013 to read as follows:
18-23 Sec. 305.013. ETHICS TRAINING. (a) The commission shall
18-24 adopt a curriculum for training programs concerning compliance with
18-25 the laws administered and enforced by the commission for persons
18-26 required to register under this chapter.
18-27 (b) The commission by rule may require persons required to
19-1 register under this chapter to complete training under the
19-2 curriculum adopted under Subsection (a).
19-3 SECTION 2.13. Section 305.025, Government Code, is amended
19-4 to read as follows:
19-5 Sec. 305.025. EXCEPTIONS. Section 305.024 does not
19-6 prohibit:
19-7 (1) a loan in the due course of business from a
19-8 corporation or other business entity that is legally engaged in the
19-9 business of lending money and that has conducted that business
19-10 continuously for more than one year before the loan is made;
19-11 (2) a loan or guarantee of a loan or a gift made or
19-12 given by a person related within the second degree by affinity or
19-13 consanguinity to the member of the legislative or executive branch;
19-14 (3) necessary expenditures for transportation and
19-15 lodging when the purpose of the travel is to explore matters
19-16 directly related to the duties of a member of the legislative or
19-17 executive branch, such as fact-finding trips, but not including
19-18 attendance at merely ceremonial events or pleasure trips;
19-19 (4) necessary expenditures for transportation and
19-20 lodging provided in connection with a conference or similar event
19-21 in which the member renders services, such as addressing an
19-22 audience or engaging in a seminar, to the extent that those
19-23 services are more than merely perfunctory; <or>
19-24 (5) expenditures for transportation or lodging for a
19-25 member of the legislative or executive branch, or for an immediate
19-26 family member's transportation and lodging, that are reimbursed by
19-27 the member of the legislative or executive branch; or
20-1 (6) a political contribution as defined by Section
20-2 251.001, Election Code.
20-3 SECTION 2.14. Subsection (a), Section 305.027, Government
20-4 Code, is amended to read as follows:
20-5 (a) A person commits an offense if the person knowingly
20-6 enters into a contract or other agreement to print, publish, or
20-7 broadcast legislative advertising that does not indicate in the
20-8 advertising:
20-9 (1) that it is legislative advertising;
20-10 (2) the full name of the individual who personally
20-11 entered into the contract or agreement with the printer, publisher,
20-12 or broadcaster and the name of the person, if any, that the
20-13 individual represents; <and>
20-14 (3) in the case of advertising that is printed or
20-15 published, the address of the individual who personally entered
20-16 into the agreement with the printer or publisher and the address of
20-17 the person, if any, that the individual represents; and
20-18 (4) the name of the person who will ultimately pay for
20-19 the legislative advertising if different than the name of the
20-20 individual who personally entered into the contract or agreement.
20-21 SECTION 2.15. Subsection (a), Section 305.031, Government
20-22 Code, is amended to read as follows:
20-23 (a) A person commits an offense if the person intentionally
20-24 or knowingly violates a provision of this chapter other than
20-25 Section 305.0011 or Section 305.022. An offense under this
20-26 subsection is a Class A misdemeanor.
20-27 SECTION 2.16. Subsection (a), Section 305.033, Government
21-1 Code, is amended to read as follows:
21-2 (a) The commission shall determine from any available
21-3 evidence whether a registration or report required to be filed with
21-4 the commission under this chapter is late. A registration filed
21-5 without the fee required by Section 305.005 is considered to be
21-6 late. On making a determination that a required registration or
21-7 report is late, the commission shall immediately mail a notice of
21-8 the determination to the person responsible for the filing<, to the
21-9 commission,> and to the appropriate attorney for the state.
21-10 SECTION 2.17. The change in law made by this article to the
21-11 information required to be included in a report filed under Chapter
21-12 305, Government Code, applies only to a report filed on or after
21-13 October 1, 1993.
21-14 SECTION 2.18. The change in law made by Section 2.14 of this
21-15 Act applies only to a contract or other agreement entered into on
21-16 or after September 1, 1993. An offense committed before that date
21-17 is covered by the law in effect on the date the offense occurred,
21-18 and that law is continued in effect for this purpose.
21-19 SECTION 2.19. Chapter 12, Acts of the 55th Legislature, 1st
21-20 Called Session, 1957 (Article 6252-23, Vernon's Texas Civil
21-21 Statutes), is amended to read as follows:
21-22 Sec. 1. Definitions. In this Act, unless the context
21-23 otherwise requires:
21-24 (1) "State <(a) "state> agency" means any office,
21-25 department, commission, or board of the executive department of
21-26 government.
21-27 (2) "Person"<;>
22-1 <(b) "person"> means any individual, including a member of
22-2 the Legislature, legislative employee, state officer, or state
22-3 employee.
22-4 (3) "Commission" means the Texas Ethics Commission.
22-5 Sec. 2. Registration. (a) Except as herein provided, every
22-6 person appearing before a state agency or contacting in person any
22-7 officer or employee thereof on behalf of any other person, firm,
22-8 partnership, corporation, or association in relation to any case,
22-9 proceeding, application, or other matter before such agency, shall
22-10 register in an appropriate record, which shall be maintained by the
22-11 agency for such purpose, the following information:
22-12 (1) <(a)> the name and address of the registrant;
22-13 (2) <(b)> the name and address of the person, firm,
22-14 partnership, corporation, or association on whose behalf the
22-15 appearance or contact is made; and
22-16 (3) <(c)> a statement as to whether or not the
22-17 registrant has received or expects to receive any money, thing of
22-18 value, or financial benefit in return for the services rendered in
22-19 making the appearance or contact.
22-20 (b) This Act shall not apply to:
22-21 (1) officers or employees of a state agency when
22-22 appearing before or contacting officers or employees of another
22-23 state agency on official inter-agency matters; or
22-24 (2) a member of the Legislature or legislative
22-25 employee when appearing before or contacting officers or employees
22-26 of a state agency in the person's capacity as a member of the
22-27 Legislature or legislative employee.
23-1 Sec. 3. Reporting and filing of registrations. Each state
23-2 agency shall file a report with the commission <Secretary of State>
23-3 between the first and tenth of each <the> month <following the
23-4 close of each calendar quarter>. The report shall set forth the
23-5 names of persons registering with the agency during the preceding
23-6 month <quarter>, together with the detailed information specified
23-7 in Section 2 of this Act. Such reports, which shall be considered
23-8 public records of this state and open to public inspection, shall
23-9 be appropriately indexed and kept on file in the office of the
23-10 commission <Secretary of State> for a period of four <(4)> years
23-11 from the date of filing.
23-12 Sec. 3A. Persons not required to register. No person shall
23-13 be required to register if:
23-14 (1) <(a)> the contact with a state agency or its
23-15 officers or employees is solely for the purpose of obtaining
23-16 information, and no attempt is made to influence the action of any
23-17 officer or employee of such agency; or
23-18 (2) <(b) the contact consists in participating in a
23-19 public hearing, at which such person enters his appearance at such
23-20 hearing;>
23-21 <(c) the contact is made in connection with any matter where
23-22 pleadings or instruments disclosing such person's representation is
23-23 on file with the agency;>
23-24 <(d)> the contact is one for which such person receives no
23-25 fee, payment, compensation or any thing of value.
23-26 Sec. 4. Penalty. Any person who fails to register as
23-27 required by Section 2 of this Act shall be guilty of a misdemeanor,
24-1 and upon conviction thereof shall be subject to a fine not
24-2 exceeding Five Hundred Dollars ($500) or by imprisonment in the
24-3 county jail not exceeding six (6) months, or by both such fine and
24-4 imprisonment.
24-5 ARTICLE 3
24-6 SECTION 3.01. Subsection (a), Section 3, Chapter 421, Acts
24-7 of the 63rd Legislature, Regular Session, 1973 (Article 6252-9b,
24-8 Vernon's Texas Civil Statutes), is amended to read as follows:
24-9 (a) On or before April 30th of each year, every elected
24-10 <state> officer, salaried appointed officer, appointed officer of a
24-11 major state agency, executive head of a state agency, and <every>
24-12 party chairman shall file with the commission a financial statement
24-13 complying with the requirements of Section 4 of this Act.
24-14 SECTION 3.02. Subsection (c), Section 4, Chapter 421, Acts
24-15 of the 63rd Legislature, Regular Session, 1973 (Article 6252-9b,
24-16 Vernon's Texas Civil Statutes), is amended to read as follows:
24-17 (c) The account of financial activity referred to in
24-18 Subsection (a) of this section shall consist of:
24-19 (1) a list of all sources of occupational income,
24-20 identified by employer, or if self-employed, by the nature of the
24-21 occupation, including identification of any person, business
24-22 entity, or other organization from whom the person or a business in
24-23 which he has a substantial interest received a fee as a retainer
24-24 for a claim on future services in case of need (as opposed to a fee
24-25 for services on a matter specified at the time of contracting for
24-26 or receiving the fee), whenever professional or occupational
24-27 services were not actually performed during the reporting period
25-1 commensurate to or in excess of the amount of the retainer, and the
25-2 category of the amount of the fee;
25-3 (2) identification by name and category of number of
25-4 shares of stock of any business entity held or acquired, and if
25-5 sold the category of the amount of net gain or loss realized from
25-6 such sale;
25-7 (3) a list of all bonds, notes, and other commercial
25-8 paper held or acquired, and if sold the category of the amount of
25-9 net gain or loss realized from such sale;
25-10 (4) identification of each source and the category of
25-11 the amount of income in excess of $500 derived per source from
25-12 interest, dividends, royalties, and rents;
25-13 (5) identification of each guarantor of a loan and
25-14 identification of each person or financial institution to whom a
25-15 personal note or notes or lease agreement for a total financial
25-16 liability in excess of $1,000 existed at any time during the year,
25-17 and the category of the amount of the liability;
25-18 (6) identification by description of all beneficial
25-19 interests in real property and business entities held or acquired,
25-20 and if sold the category of the amount of the net gain or loss
25-21 realized from such sale;
25-22 (7) identification of any person, business entity, or
25-23 other organization from whom the person or his spouse or dependent
25-24 children received a gift of anything of value in excess of $250 in
25-25 value and a description of each gift, except:
25-26 (A) gifts received from persons related to the
25-27 person at any time within the second degree of consanguinity or
26-1 affinity, as determined under Article 5996h, Revised Statutes;
26-2 (B) political contributions that were reported
26-3 as required by law; and
26-4 (C) expenditures required to be reported by a
26-5 person required to be registered under Chapter 305, Government
26-6 Code;
26-7 (8) identification of the source and the category of
26-8 the amount of all income received as beneficiary of a trust and
26-9 identification of each asset, if known to the beneficiary, from
26-10 which income was received by the beneficiary in excess of $500;
26-11 (9) identification by description and category of the
26-12 amount of all assets and liabilities of any corporation or
26-13 partnership in which 50 percent or more of the outstanding
26-14 ownership was held, acquired, or sold;
26-15 (10) a list of all boards of directors of which the
26-16 person is a member and executive positions which the person holds
26-17 in corporations, firms, partnerships, and proprietorships, stating
26-18 the name of each corporation, firm, partnership, or proprietorship
26-19 and the position held;
26-20 (11) identification of any person providing
26-21 transportation, meals, or lodging expenses permitted under Section
26-22 36.07(b), Penal Code, and the amount of those expenses, other than
26-23 expenditures required to be reported under Chapter 305, Government
26-24 Code; and
26-25 (12) any partnership, joint venture, or other business
26-26 association, excluding a publicly held or traded business entity
26-27 <corporation>, in which both the state officer and a person
27-1 registered under Chapter 305, Government Code, have an interest.
27-2 SECTION 3.03. Section 7C, Chapter 421, Acts of the 63rd
27-3 Legislature, Regular Session, 1973 (Article 6252-9b, Vernon's Texas
27-4 Civil Statutes), is amended to read as follows:
27-5 Sec. 7C. Contracts with governmental entities. (a) A state
27-6 officer may not solicit or accept <from the state, a political
27-7 subdivision of the state, or a governmental entity created under
27-8 the constitution or laws of the state> a commission, fee, bonus,
27-9 retainer, or rebate that is compensation for the officer's personal
27-10 solicitation for the award of a contract for services or sale of
27-11 goods to the state, a political subdivision of the state, or a
27-12 governmental entity created under the constitution or laws of the
27-13 state.
27-14 (b) This section does not apply to:
27-15 (1)<, excluding> contracts that are awarded by
27-16 competitive bid as provided by law and that are not otherwise
27-17 prohibited by law; and
27-18 (2) all court appointments.
27-19 (c) <(b)> A state officer who violates this section commits
27-20 an offense. An offense under this section is a Class A
27-21 misdemeanor.
27-22 SECTION 3.04. Chapter 421, Acts of the 63rd Legislature,
27-23 Regular Session, 1973 (Article 6252-9b, Vernon's Texas Civil
27-24 Statutes), is amended by adding Section 12C to read as follows:
27-25 Sec. 12C. AMENDMENT OF SUBSTANTIALLY COMPLETE AND CORRECT
27-26 DOCUMENT. A person required to file a financial statement or other
27-27 disclosure document under this Act may, in the commission's
28-1 discretion, amend the document within a reasonable time without
28-2 incurring a penalty if the document originally filed was
28-3 substantially complete and correct and not misleading.
28-4 ARTICLE 4
28-5 SECTION 4.01. Subsections (a) and (d), Section 36.02, Penal
28-6 Code, are amended to read as follows:
28-7 (a) A person commits an offense if he intentionally or
28-8 knowingly offers, confers, or agrees to confer on another, or
28-9 solicits, accepts, or agrees to accept from another:
28-10 (1) any benefit as consideration for the recipient's
28-11 decision, opinion, recommendation, vote, or other exercise of
28-12 discretion as a public servant, party official, or voter;
28-13 (2) any benefit as consideration for the recipient's
28-14 decision, vote, recommendation, or other exercise of official
28-15 discretion in a judicial or administrative proceeding;
28-16 (3) any benefit as consideration for a violation of a
28-17 duty imposed by law on a public servant or party official; or
28-18 (4) any benefit that is a political contribution as
28-19 defined by Title 15, Election Code, or that is an expenditure made
28-20 and reported in accordance with Chapter 305, Government Code, if
28-21 the benefit was offered, conferred, solicited, accepted, or agreed
28-22 to pursuant to an express agreement to take or withhold a specific
28-23 exercise of official discretion if such exercise of official
28-24 discretion would not have been taken or withheld but for the
28-25 benefit; notwithstanding any rule of evidence or jury instruction
28-26 allowing factual inferences in the absence of certain evidence,
28-27 direct evidence of the express agreement shall be required in any
29-1 prosecution under this subdivision.
29-2 (d) It is an exception to the application of Subdivisions
29-3 (1), (2), and (3) of Subsection (a) of this section that the
29-4 benefit is a political contribution <accepted> as defined by Title
29-5 15, Election Code, or an expenditure required to be reported under
29-6 Chapter 305, Government Code.
29-7 SECTION 4.02. Subsection (b), Section 36.07, Penal Code, is
29-8 amended to read as follows:
29-9 (b) This section does not prohibit a public servant from
29-10 accepting transportation and lodging expenses <permitted under
29-11 Section 305.025(b)(2), Government Code,> in connection with a
29-12 conference or similar event in which the public servant renders
29-13 services, such as addressing an audience or engaging in a seminar,
29-14 to the extent that those services are more than merely perfunctory,
29-15 or from accepting meals in connection with such an event.
29-16 SECTION 4.03. Section 36.08, Penal Code, is amended by
29-17 adding Subsection (i) to read as follows:
29-18 (i) A public servant who receives an unsolicited benefit
29-19 that the public servant is prohibited from accepting under this
29-20 section may donate the benefit to a governmental entity that has
29-21 the authority to accept the gift or may donate the benefit to a
29-22 recognized tax-exempt charitable organization formed for
29-23 educational, religious, or scientific purposes.
29-24 SECTION 4.04. Subsection (a), Section 36.10, Penal Code, is
29-25 amended to read as follows:
29-26 (a) Sections 36.08 (Gift to Public Servant) and 36.09
29-27 (Offering Gift to Public Servant) of this code do not apply to:
30-1 (1) a fee prescribed by law to be received by a public
30-2 servant or any other benefit to which the public servant is
30-3 lawfully entitled or for which he gives legitimate consideration in
30-4 a capacity other than as a public servant;
30-5 (2) a gift or other benefit conferred on account of
30-6 kinship or a personal, professional, or business relationship
30-7 independent of the official status of the recipient; or
30-8 (3) a benefit to a public servant required to file a
30-9 statement under Chapter 421, Acts of the 63rd Legislature, Regular
30-10 Session, 1973 (Article 6252-9b, Vernon's Texas Civil Statutes), or
30-11 a report under Title 15, Election Code, that is derived from a
30-12 function in honor or appreciation of the recipient if:
30-13 (A) the benefit and the source of any benefit in
30-14 excess of $50 is reported in the statement; and
30-15 (B) the benefit is used solely to defray the
30-16 expenses that accrue in the performance of duties or activities in
30-17 connection with the office which are nonreimbursable by the state
30-18 or political subdivision;
30-19 (4) a political contribution as defined by Title 15,
30-20 Election Code; <or>
30-21 (5) a gift, award, or memento to a member of the
30-22 legislative or executive branch that is required to be reported
30-23 under Chapter 305, Government Code; or
30-24 (6) an item with a value of less than $50, excluding
30-25 cash or a negotiable instrument as described by Section 3.104,
30-26 Business & Commerce Code, and its subsequent amendments.
30-27 SECTION 4.05. Section 39.01, Penal Code, is amended by
31-1 adding Subsection (d) to read as follows:
31-2 (d) A discount or award given for travel, such as frequent
31-3 flyer miles, rental car or hotel discounts, or food coupons, are
31-4 not things of value belonging to the government for purposes of
31-5 this section as long as the public servant engaging in the travel
31-6 complies with any laws, rules, or ordinances applicable to that
31-7 travel.
31-8 SECTION 4.06. (a) The change in law made by this article
31-9 applies only to an offense committed on or after the effective date
31-10 of this Act. For purposes of this section, an offense is committed
31-11 before the effective date of this Act if any element of the offense
31-12 occurs before the effective date.
31-13 (b) An offense committed before the effective date of this
31-14 Act is covered by the law in effect when the offense was committed,
31-15 and the former law is continued in effect for that purpose.
31-16 ARTICLE 5
31-17 SECTION 5.01. Subdivisions (4), (9), (12), and (14), Section
31-18 251.001, Election Code, are amended to read as follows:
31-19 (4) "Officeholder contribution" means a contribution
31-20 to an officeholder or political committee that is offered or given
31-21 with the intent that it be used to defray expenses that:
31-22 (A) are incurred by the officeholder in
31-23 performing a duty or engaging in an activity in connection with the
31-24 office; and
31-25 (B) are not actually reimbursed <reimbursable>
31-26 with public money.
31-27 (9) "Officeholder expenditure" means an expenditure
32-1 made by an officeholder <any person> to defray expenses that:
32-2 (A) are incurred by an officeholder in
32-3 performing a duty or engaging in an activity in connection with the
32-4 office; and
32-5 (B) are not actually reimbursed <reimbursable>
32-6 with public money.
32-7 (12) "Political committee" means a group of persons
32-8 that has as a principal purpose accepting political contributions
32-9 or making political expenditures. The term does not include a
32-10 group of candidates or officeholders all of whom are otherwise
32-11 required to report under this title.
32-12 (14) "General-purpose committee" means a political
32-13 committee that has among its principal purposes:
32-14 (A) supporting or opposing:
32-15 (i) two or more candidates who are
32-16 unidentified or are seeking offices that are unknown; or
32-17 (ii) one or more issues <measures> that
32-18 are unidentified; or
32-19 (B) assisting two or more officeholders who are
32-20 unidentified.
32-21 SECTION 5.02. Section 251.003, Election Code, is amended to
32-22 read as follows:
32-23 Sec. 251.003. Prohibition of Document Filing Fee. Except as
32-24 provided by Section 251.009, a <A> charge may not be made for
32-25 filing a document required to be filed under this title.
32-26 SECTION 5.03. Subchapter A, Chapter 251, Election Code, is
32-27 amended by adding Sections 251.009 and 251.010 to read as follows:
33-1 Sec. 251.009. ANNUAL REGISTRATION FEE FOR CERTAIN POLITICAL
33-2 COMMITTEES. (a) A political committee that is required to file
33-3 its campaign treasurer appointment with the commission shall pay an
33-4 annual registration fee in an amount set by the commission.
33-5 (b) The commission shall adopt a schedule of registration
33-6 fees under this section. The fees may be computed on the basis of:
33-7 (1) whether a political committee is a general-purpose
33-8 committee or a specific-purpose committee;
33-9 (2) the amount of political contributions or political
33-10 expenditures accepted or made by a political committee;
33-11 (3) the number of contributors to a political
33-12 committee; or
33-13 (4) any other factor the commission considers
33-14 relevant.
33-15 (c) A registration fee under this section may not exceed:
33-16 (1) $50 for a political committee that accepts less
33-17 than $10,000 in political contributions in a calendar year or makes
33-18 less than $10,000 in political expenditures in a calendar year; or
33-19 (2) $150 for a political committee that accepts
33-20 $10,000 or more but $20,000 or less in political contributions in a
33-21 calendar year or makes $10,000 or more but $20,000 or less in
33-22 political expenditures in a calendar year.
33-23 (d) The commission shall adopt rules providing for the
33-24 payment of an additional fee by a political committee that has
33-25 accepted political contributions or made political expenditures
33-26 that exceed $20,000 in a calendar year.
33-27 (e) This section does not apply to a specific-purpose
34-1 committee that is not required to appoint a campaign treasurer or
34-2 file reports under Section 254.1811. The commission shall adopt
34-3 rules providing for payment of a registration fee by a
34-4 specific-purpose committee that becomes subject to Subchapter E,
34-5 Chapter 254, as provided by Section 254.183.
34-6 Sec. 251.010. PAYMENT OF REGISTRATION FEE. (a) The fee
34-7 imposed under Section 251.009 shall be paid not later than:
34-8 (1) July 15, if the political committee's campaign
34-9 treasurer appointment is filed on or before July 15 of the year for
34-10 which the fee is paid; or
34-11 (2) the date the political committee's campaign
34-12 treasurer appointment is filed, if the appointment is filed after
34-13 July 15 of the year for which the fee is paid.
34-14 (b) Fees received under this section shall be deposited to
34-15 the credit of the state ethics fund and may be used only for the
34-16 administration and enforcement of this title.
34-17 (c) Not later than the 15th day after the date by which a
34-18 fee is required to be paid under Subsection (a), the commission
34-19 shall deliver a written notice to the campaign treasurer of a
34-20 political committee that has not paid its fee. The notice must:
34-21 (1) be delivered by certified mail, return receipt
34-22 requested; and
34-23 (2) state that the commission will revoke the
34-24 committee's campaign treasurer appointment if the fee is not paid
34-25 before the 15th day after the date the notice is:
34-26 (A) received by the campaign treasurer; or
34-27 (B) returned to the commission as undeliverable
35-1 or unclaimed.
35-2 (d) The commission shall revoke the campaign treasurer
35-3 appointment of a political committee that has not paid its fee on
35-4 or before the 15th day after the date a notice under Subsection (c)
35-5 is received by a campaign treasurer or returned to the commission
35-6 as undeliverable or unclaimed. The commission immediately shall
35-7 deliver written notice of the revocation to the committee's
35-8 campaign treasurer by certified mail, return receipt requested.
35-9 SECTION 5.04. Section 252.001, Election Code, is amended to
35-10 read as follows:
35-11 Sec. 252.001. Appointment of Campaign Treasurer Required.
35-12 Except as provided by Section 254.1811, each <Each> candidate and
35-13 each political committee shall appoint a campaign treasurer as
35-14 provided by this chapter.
35-15 SECTION 5.05. Section 252.003, Election Code, is amended by
35-16 adding Subsection (e) to read as follows:
35-17 (e) For purposes of Subsection (d), a corporation, labor
35-18 organization, or other association or legal entity other than an
35-19 individual directly establishes, administers, or controls a
35-20 general-purpose committee if the entity:
35-21 (1) is entitled to actively participate in determining
35-22 to whom the committee makes political contributions or for what
35-23 purposes the committee makes political expenditures; and
35-24 (2) is entitled to designate a person to fill a
35-25 position of authority, including that of an officer or director, on
35-26 the committee.
35-27 SECTION 5.06. Chapter 252, Election Code, is amended by
36-1 adding Section 252.0131 to read as follows:
36-2 Sec. 252.0131. TERMINATION OF APPOINTMENT ON REVOCATION BY
36-3 COMMISSION. (a) The commission shall revoke the campaign
36-4 treasurer appointment of a political committee for failure to pay a
36-5 registration fee as provided by Section 251.010.
36-6 (b) A campaign treasurer appointment that is revoked by the
36-7 commission is terminated on the fifth day after the date the
36-8 commission delivers the notice of revocation.
36-9 SECTION 5.07. Section 253.031, Election Code, is amended to
36-10 read as follows:
36-11 Sec. 253.031. Contribution and Expenditure Without Campaign
36-12 Treasurer Prohibited. (a) A candidate may not knowingly accept a
36-13 campaign contribution or make or authorize a campaign expenditure
36-14 at a time when a campaign treasurer appointment for the candidate
36-15 is not in effect.
36-16 (b) A political committee may not knowingly accept a
36-17 political contribution or make or authorize a political expenditure
36-18 at a time when a campaign treasurer appointment for the committee
36-19 is not in effect.
36-20 (c) A political committee may not knowingly make or
36-21 authorize a campaign contribution or campaign expenditure
36-22 supporting or opposing a candidate for an office specified by
36-23 Section 252.005(1) in a primary or general election unless the
36-24 committee's campaign treasurer appointment has been filed not later
36-25 than the 30th day before the appropriate election day.
36-26 (d) This section does not apply to a political party's
36-27 county executive committee that accepts political contributions or
37-1 makes political expenditures, except that:
37-2 (1) a county executive committee that accepts
37-3 political contributions or makes political expenditures shall
37-4 maintain the records required by Section 254.001; and
37-5 (2) a county executive committee that accepts
37-6 political contributions or makes political expenditures that, in
37-7 the aggregate, exceed $5,000 in a calendar year shall file:
37-8 (A) a campaign treasurer appointment as required
37-9 by Section 252.001 not later than the 15th day after the date that
37-10 amount is exceeded; and
37-11 (B) the reports required by Subchapter F,
37-12 Chapter 254, including in the political committee's first report
37-13 all political contributions accepted and all political expenditures
37-14 made before the effective date of the campaign treasurer
37-15 appointment.
37-16 (e) This section does not apply to an out-of-state political
37-17 committee unless the committee is subject to Chapter 252 under
37-18 Section 251.005.
37-19 (f) This section does not apply to a political committee
37-20 that is not required to appoint a campaign treasurer under
37-21 Section 254.1811.
37-22 (g) A person who violates this section commits an offense.
37-23 An offense under this section is a Class A misdemeanor.
37-24 SECTION 5.08. Section 253.035, Election Code, is amended by
37-25 amending Subsection (d) and adding Subsections (j) and (k) to read
37-26 as follows:
37-27 (d) In this section, "personal use" means a use that
38-1 primarily furthers individual or family purposes not connected with
38-2 the performance of duties or activities as a candidate for or
38-3 holder of a public office. The term does not include:
38-4 (1) payments made to defray ordinary and necessary
38-5 expenses incurred in connection with activities as a candidate or
38-6 in connection with the performance of duties or activities as a
38-7 public officeholder, including payment of rent, utility, and other
38-8 reasonable housing or household expenses incurred in maintaining a
38-9 residence in Travis County by members of the legislature who do not
38-10 ordinarily reside in Travis County, but excluding payments
38-11 prohibited under Section 253.038; <or>
38-12 (2) payments of federal income taxes due on interest
38-13 and other income earned on political contributions; or
38-14 (3) the incidental use of an asset purchased, leased,
38-15 or otherwise acquired with political contributions if those
38-16 political contributions are reimbursed in an amount that reasonably
38-17 reflects the value of that use.
38-18 (j) A person may use political contributions to purchase,
38-19 lease, otherwise acquire, or maintain an asset for both political
38-20 and personal use if the political contributions are not used to
38-21 purchase, lease, otherwise acquire, or maintain that portion of the
38-22 asset that is attributable to personal use.
38-23 (k) An asset purchased with political contributions may not
38-24 be used for personal use that is more than incidental by the person
38-25 purchasing the asset, or by a person other than the person
38-26 purchasing the asset, unless those political contributions are
38-27 reimbursed in an amount that reasonably reflects the capital,
39-1 operating, and maintenance costs of the asset for that use.
39-2 SECTION 5.09. Subsection (a), Section 253.099, Election
39-3 Code, is amended to read as follows:
39-4 (a) A corporation or labor organization may make one or more
39-5 expenditures to finance nonpartisan voter registration and
39-6 get-out-the-vote campaigns aimed at the corporation's <its>
39-7 stockholders or the labor organization's members<, as applicable,>
39-8 or at the families of the corporation's <its> stockholders or the
39-9 labor organization's members.
39-10 SECTION 5.10. Subsections (a) and (b), Section 253.100,
39-11 Election Code, are amended to read as follows:
39-12 (a) A corporation, acting alone or with one or more other
39-13 corporations, may make one or more <political> expenditures to
39-14 finance the establishment or administration of a general-purpose
39-15 committee.
39-16 (b) A corporation may make <political> expenditures to
39-17 finance the solicitation of political contributions to a
39-18 general-purpose committee assisted under Subsection (a) from the
39-19 stockholders, employees, or families of stockholders or employees
39-20 of one or more corporations.
39-21 SECTION 5.11. Subchapter B, Chapter 254, Election Code, is
39-22 amended by adding Section 254.043 to read as follows:
39-23 Sec. 254.043. AMENDMENT OF SUBSTANTIALLY COMPLETE AND
39-24 CORRECT DOCUMENT. A person required to file a campaign treasurer
39-25 appointment, report, or other disclosure document under this title
39-26 may, in the commission's discretion, amend the document within a
39-27 reasonable time without incurring a penalty if the document
40-1 originally filed was substantially complete and correct and not
40-2 misleading.
40-3 SECTION 5.12. Subsection (a), Section 254.181, Election
40-4 Code, is amended to read as follows:
40-5 (a) An opposed candidate <or specific-purpose committee>
40-6 required to file reports under Subchapter C <or E> may file a
40-7 report under this subchapter instead if the candidate <or
40-8 committee> does not intend to accept political contributions that
40-9 in the aggregate exceed $500 or to make political expenditures that
40-10 in the aggregate exceed $500 in connection with the election.
40-11 SECTION 5.13. Subchapter G, Chapter 254, Election Code, is
40-12 amended by adding Section 254.1811 to read as follows:
40-13 Sec. 254.1811. REPORT NOT REQUIRED. A political committee
40-14 is not required to appoint a campaign treasurer or file reports
40-15 under Subchapter E or F if the committee does not intend to accept
40-16 political contributions that in the aggregate exceed $500 or to
40-17 make political expenditures that in the aggregate exceed $500 in
40-18 connection with an election.
40-19 SECTION 5.14. Section 254.182, Election Code, is amended to
40-20 read as follows:
40-21 Sec. 254.182. Declaration of Intent Required. (a) To be
40-22 entitled to file reports under this subchapter, an opposed
40-23 candidate <or specific-purpose committee> must file with the
40-24 campaign treasurer appointment a written declaration of intent not
40-25 to exceed $500 in political contributions or political expenditures
40-26 in the election.
40-27 (b) To be entitled to accept political contributions or make
41-1 political expenditures without appointing a campaign treasurer or
41-2 filing reports under Subchapter E or F, a political committee must
41-3 file a written declaration of intent not to exceed $500 in
41-4 political contributions or political expenditures in the election.
41-5 The declaration of intent must be filed with the authority with
41-6 whom the committee would file a campaign treasurer appointment if
41-7 one were required.
41-8 (c) The declaration of intent must contain a statement that
41-9 the candidate or committee understands that if the $500 maximum for
41-10 contributions and expenditures is exceeded, the candidate or
41-11 committee is required to file reports under Subchapter C, <or> E,
41-12 or F, as applicable.
41-13 SECTION 5.15. Subsections (a) and (b), Section 254.183,
41-14 Election Code, are amended to read as follows:
41-15 (a) An opposed candidate or a political <specific-purpose>
41-16 committee that exceeds $500 in political contributions or political
41-17 expenditures in the election shall file reports as required by
41-18 Subchapter C, <or> E, or F, as applicable.
41-19 (b) If a candidate or committee exceeds the $500 maximum
41-20 after the filing deadline prescribed by Subchapter C, <or> E, or F
41-21 for the first report required to be filed under the appropriate
41-22 subchapter, the candidate or committee shall file a report not
41-23 later than 48 hours after the maximum is exceeded.
41-24 SECTION 5.16. Section 254.184, Election Code, is amended to
41-25 read as follows:
41-26 Sec. 254.184. Applicability of Regular Reporting
41-27 Requirements. (a) Subchapter C <or E, as applicable,> applies to
42-1 an opposed candidate <or specific-purpose committee> filing under
42-2 this subchapter to the extent that that <the appropriate>
42-3 subchapter does not conflict with this subchapter.
42-4 (b) A candidate <or committee> filing under this subchapter
42-5 is not required to file any reports of political contributions and
42-6 political expenditures other than the semiannual reports required
42-7 to be filed not later than July 15 and January 15.
42-8 SECTION 5.17. Subchapter G, Chapter 254, Election Code, is
42-9 amended by adding Section 254.185 to read as follows:
42-10 Sec. 254.185. EXCEEDING MAXIMUM IMMEDIATELY BEFORE ELECTION
42-11 PROHIBITED. (a) A candidate or political committee that has filed
42-12 a declaration of intent under Section 254.182 may not exceed the
42-13 $500 maximum for political contributions or political expenditures
42-14 after the 11th day before the date of an election in which the
42-15 candidate or committee is involved.
42-16 (b) A person who violates this section commits an offense.
42-17 An offense under this section is a Class A misdemeanor.
42-18 SECTION 5.18. Section 255.001, Election Code, is amended to
42-19 read as follows:
42-20 Sec. 255.001. Required Disclosure on Political Advertising.
42-21 (a) A person may not knowingly enter into a contract or other
42-22 agreement to print, publish, or broadcast political advertising
42-23 that does not indicate in the advertising:
42-24 (1) that it is political advertising;
42-25 (2) the full name of either the individual who
42-26 personally entered into the contract or agreement with the printer,
42-27 publisher, or broadcaster or the person that individual represents;
43-1 <and>
43-2 (3) in the case of advertising that is printed or
43-3 published, the address of either the individual who personally
43-4 entered into the agreement with the printer or publisher or the
43-5 person that individual represents; and
43-6 (4) the name of the person who paid for the political
43-7 advertising if different than the name of the individual who
43-8 personally entered into the contract or agreement.
43-9 (b) This section does not apply to tickets or invitations to
43-10 political fund-raising events or to campaign buttons, pins, hats,
43-11 or similar campaign materials.
43-12 (c) For purposes of this section, political advertising is
43-13 "paid for":
43-14 (1) in the case of advertising purchased with funds
43-15 provided by an individual, by the individual; or
43-16 (2) in the case of advertising purchased with funds
43-17 provided by a political committee, by the campaign treasurer of the
43-18 committee.
43-19 (d) A person who violates this section commits an offense.
43-20 An offense under this section is a Class A misdemeanor.
43-21 SECTION 5.19. The change in law made by Section 5.07 of this
43-22 Act applies only to an offense committed on or after the effective
43-23 date of this Act. An offense committed before that date is covered
43-24 by the law in effect when the offense occurred, and that law is
43-25 continued in effect for this purpose.
43-26 SECTION 5.20. The change in law made by Section 5.18 of this
43-27 Act applies only to a contract or other agreement entered into on
44-1 or after September 1, 1993. A contract or agreement entered into
44-2 before that date is covered by the law in effect on the date the
44-3 contract or agreement was entered into, and that law is continued
44-4 in effect for this purpose.
44-5 ARTICLE 6
44-6 SECTION 6.01. This Act takes effect September 1, 1993.
44-7 SECTION 6.02. The importance of this legislation and the
44-8 crowded condition of the calendars in both houses create an
44-9 emergency and an imperative public necessity that the
44-10 constitutional rule requiring bills to be read on three several
44-11 days in each house be suspended, and this rule is hereby suspended.