73R11180 KLL-D
By Carriker, et al. S.B. No. 1005
Substitute the following for S.B. No. 1005:
By Seidlits C.S.S.B. No. 1005
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; or
2-1 (5) a person required to be registered under Section
2-2 305.003, Government Code, or required to file under Section
2-3 305.0031, Government Code.
2-4 Sec. 1.04. REMOVAL OF COMMISSION MEMBERS. (a) It is a
2-5 ground for removal of a member from the commission if the member:
2-6 (1) is ineligible under Section 1.03 of this article;
2-7 (2) cannot discharge the member's duties for a
2-8 substantial part of the term for which the member is appointed
2-9 because of illness or disability;
2-10 (3) is absent from two consecutive regularly scheduled
2-11 commission meetings that the member is eligible to attend during a
2-12 calendar year unless the absence is excused by majority vote of the
2-13 commission; or
2-14 (4) has a final conviction for a violation of Chapter
2-15 36, Penal Code.
2-16 (b) The validity of an action of the commission is not
2-17 affected by the fact that it is taken when a ground for removal of
2-18 a commission member exists.
2-19 (c) If the chairman of the commission has knowledge that a
2-20 potential ground for removal of a member exists, the chairman shall
2-21 notify the appropriate appointing authority of the ground.
2-22 (d) If any two commission members have knowledge that a
2-23 potential ground for removal of the chairman exists, the members
2-24 shall notify the appropriate appointing authority of the ground.
2-25 Sec. 1.05. FILLING OF VACANCIES. (a) A vacancy on the
2-26 commission shall be filled as expeditiously as possible but not
2-27 later than the 90th day after the date on which the vacancy occurs.
3-1 (b) The members of the legislature who are required to
3-2 submit a list to the official making the appointment to fill the
3-3 vacancy shall submit the list as expeditiously as possible but not
3-4 later than the 30th day after the date on which the vacancy occurs.
3-5 If the governor is the appointing official and rejects all names on
3-6 the list, a new list must be submitted not later than the 30th day
3-7 after the date of the rejection.
3-8 SECTION 1.02. Sections 1.11(a) and (b), Chapter 304, Acts of
3-9 the 72nd Legislature, Regular Session, 1991 (Article 6252-9d.1,
3-10 Vernon's Texas Civil Statutes), are amended to read as follows:
3-11 (a) The commission shall:
3-12 (1) administer and enforce Chapters 302 and 305,
3-13 Government Code; Title 15, Election Code; and Chapter 421, Acts of
3-14 the 63rd Legislature, Regular Session, 1973 (Article 6252-9b,
3-15 Vernon's Texas Civil Statutes); and perform any other powers or
3-16 duties given to the commission under those laws;
3-17 (2) prescribe forms for statements and reports
3-18 required to be filed with the commission and provide for the
3-19 distribution of the forms;
3-20 (3) adopt by rule and publish a manual that
3-21 establishes uniform methods of accounting and reporting for use by
3-22 persons required to file statements and reports with the commission
3-23 and that includes a digest of each advisory opinion issued by the
3-24 commission under Section 1.29 of this article;
3-25 (4) send to each member of the legislature at the
3-26 member's Capitol and district addresses:
3-27 (A) a copy of each advisory opinion when the
4-1 opinion is issued by the commission under Section 1.29 of this
4-2 article; and
4-3 (B) an annual digest of each advisory opinion
4-4 issued by the commission during the preceding year, including an
4-5 index;
4-6 (5) <(4)> make a report by December 31 of each
4-7 even-numbered year to the governor and legislature that includes
4-8 each advisory opinion issued by the commission under Section 1.29
4-9 of this article in the preceding two years and that recommends any
4-10 necessary statutory changes;
4-11 (6) <(5)> provide training by April 1 <January> of
4-12 each odd-numbered year for appointed officers of major state
4-13 agencies, salaried appointed officers, and executive heads as those
4-14 terms are defined by Section 2, Chapter 421, Acts of the 63rd
4-15 Legislature, Regular Session, 1973 (Article 6252-9b, Vernon's Texas
4-16 Civil Statutes), for persons who are required to register under
4-17 Chapter 305, Government Code, and for members and members-elect of
4-18 the legislature concerning compliance with the laws administered
4-19 and enforced by the commission;
4-20 (7) <(6)> provide a program of ethics training for
4-21 state employees in cooperation with state agencies;
4-22 (8) <(7)> require each regulatory executive branch
4-23 agency to develop rules limiting the acceptance of gifts or other
4-24 benefits from persons appearing before or regulated by the agency
4-25 that are at least as restrictive as the rules of the commission and
4-26 provide for the submission of the rules to the commission for
4-27 approval; and
5-1 (9) <(8)> assign an account number to each person
5-2 required to file a statement or report with the commission under a
5-3 law administered and enforced by the commission.
5-4 (b) The commission may:
5-5 (1) issue subpoenas to compel the attendance of
5-6 witnesses and the production of documents under Section 1.14 of
5-7 this article;
5-8 (2) hold hearings, on its own motion adopted by a
5-9 record vote of at least six commission members or on a sworn
5-10 complaint, and render decisions on complaints or reports of
5-11 violations as provided by this article;
5-12 (3) agree to the settlement of issues;
5-13 (4) on motion adopted by a record vote of at least six
5-14 commission members, initiate civil enforcement actions and refer
5-15 matters to the appropriate prosecuting attorney for criminal
5-16 prosecution;
5-17 (5) disseminate, through pamphlets and seminars,
5-18 explanations and compliance guidelines concerning any law
5-19 administered and enforced by the commission;
5-20 (6) develop computer software to facilitate the
5-21 discharge of statutory duties of the commission;
5-22 (7) contract with persons and agencies to administer
5-23 and carry out this article and rules, standards, and orders adopted
5-24 under this article, but excluding any enforcement authority;
5-25 (8) accept gifts, grants, and donations for the
5-26 administration of its duties; and
5-27 (9) adopt rules to administer this article or any law
6-1 administered and enforced by the commission, including rules that
6-2 define terms used in this article or those laws <provided that a
6-3 rule must be adopted on the affirmative vote of at least six
6-4 members of the commission>.
6-5 SECTION 1.03. Article 1, Chapter 304, Acts of the 72nd
6-6 Legislature, Regular Session, 1991 (Article 6252-9d.1, Vernon's
6-7 Texas Civil Statutes), is amended by adding Section 1.111 to read
6-8 as follows:
6-9 Sec. 1.111. ETHICS TRAINING. (a) Not later than April 1 of
6-10 each odd-numbered year, an appointed officer of a major state
6-11 agency, a salaried appointed officer, and an executive head as
6-12 those terms are defined by Section 2, Chapter 421, Acts of the 63rd
6-13 Legislature, Regular Session, 1973 (Article 6252-9b, Vernon's Texas
6-14 Civil Statutes), a person who is required to register under
6-15 Chapter 305, Government Code, a member of the legislature, and a
6-16 member-elect of the legislature may attend the training provided by
6-17 the commission under Section 1.11(a) of this article.
6-18 (b) The commission may charge a person described by
6-19 Subsection (a) of this section a reasonable fee to attend the
6-20 training provided by the commission under Section 1.11(a) of this
6-21 article.
6-22 SECTION 1.04. Article 1, Chapter 304, Acts of the 72nd
6-23 Legislature, Regular Session, 1991 (Article 6252-9d.1, Vernon's
6-24 Texas Civil Statutes), is amended by adding Section 1.121 to read
6-25 as follows:
6-26 Sec. 1.121. STATEMENTS AND REPORTS CONSIDERED TO BE
6-27 VERIFIED. (a) A statement or report that is filed with the
7-1 commission is considered to be under oath by the person required to
7-2 file the statement or report regardless of the absence of or defect
7-3 in the affidavit of verification, excluding a signature.
7-4 (b) A person required to file a statement or report with the
7-5 commission is subject to prosecution under Chapter 37, Penal Code,
7-6 regardless of the absence of or defect in the affidavit of
7-7 verification.
7-8 (c) This section applies to a statement or report that is
7-9 filed with the commission electronically or otherwise.
7-10 SECTION 1.05. Section 1.21, Chapter 304, Acts of the 72nd
7-11 Legislature, Regular Session, 1991 (Article 6252-9d.1, Vernon's
7-12 Texas Civil Statutes), is amended to read as follows:
7-13 Sec. 1.21. Confidentiality; offense. (a) Except as
7-14 provided by Subsection (c) of this section, proceedings at a
7-15 preliminary review or informal hearing performed by the commission,
7-16 a sworn complaint, and documents relating to and any additional
7-17 evidence relating to the processing, preliminary review, informal
7-18 hearing, or resolution of a sworn complaint or motion <are
7-19 confidential and> may not be disclosed by the commission or a
7-20 person employed by the commission unless entered into the record of
7-21 a formal hearing or a judicial proceeding, except that a document
7-22 or statement that was previously public information remains public
7-23 information.
7-24 (b) Except as provided by Subsection (c) of this section,
7-25 the open records law, Chapter 424, Acts of the 63rd Legislature,
7-26 Regular Session, 1973 (Article 6252-17a, Vernon's Texas Civil
7-27 Statutes), does not apply to documents or any additional evidence
8-1 relating to the processing, preliminary review, informal hearing,
8-2 or resolution of sworn complaints or motions. The open meetings
8-3 law, Chapter 271, Acts of the 60th Legislature, Regular Session,
8-4 1967 (Article 6252-17, Vernon's Texas Civil Statutes), does not
8-5 apply to the processing, preliminary review, informal hearing, or
8-6 resolution of sworn complaints or motions.
8-7 (c) An order issued by the commission after the completion
8-8 of a preliminary review or an informal hearing determining that a
8-9 violation <other than a technical violation or de minimis> has
8-10 occurred is not confidential.
8-11 (d) A person commits an offense if the person discloses
8-12 information made confidential by this section. An offense under
8-13 this subsection is a Class A misdemeanor.
8-14 (e) In addition to other penalties, a person who <files a
8-15 frivolous complaint or> discloses information in violation of <made
8-16 confidential by> this section is civilly liable to the respondent
8-17 in an amount equal to the greater of $10,000 or the amount of
8-18 actual damages incurred by the respondent, including court costs
8-19 and attorney fees.
8-20 SECTION 1.06. Sections 1.28(a) and (b), Chapter 304, Acts of
8-21 the 72nd Legislature, Regular Session, 1991 (Article 6252-9d.1,
8-22 Vernon's Texas Civil Statutes), are amended to read as follows:
8-23 (a) The commission may:
8-24 (1) impose a civil penalty of not more than $5,000, or
8-25 triple the amount at issue under a law administered and enforced by
8-26 the commission, whichever amount is greater, for a delay in
8-27 complying with a commission order or for a violation of a law
9-1 administered and enforced by the commission;
9-2 (2) impose a civil penalty of not more than $5,000
9-3 <$10,000> for the filing of a frivolous or bad-faith complaint;
9-4 (3) following a criminal conviction for an offense
9-5 under Chapter 36, Penal Code, or Chapter 305, Government Code,
9-6 deny, suspend, or revoke the registration of a person required to
9-7 be registered under Chapter 305, Government Code;
9-8 (4) notify the appropriate regulatory or supervisory
9-9 entity, including any agency, the State Commission on Judicial
9-10 Conduct, the senate, the house of representatives, or the State Bar
9-11 of Texas, of a violation of a law administered and enforced by the
9-12 commission;
9-13 (5) issue and enforce cease and desist orders to stop
9-14 violations; and
9-15 (6) issue affirmative orders to require compliance
9-16 with the laws administered and enforced by the commission.
9-17 (b) In this section, "frivolous complaint" means a complaint
9-18 that is groundless and brought in bad faith or is groundless and
9-19 brought for the purpose of harassment. In determining what
9-20 constitutes a frivolous complaint, the commission shall be guided
9-21 by Rule 13, Texas Rules of Civil Procedure, and interpretations of
9-22 that rule.
9-23 SECTION 1.07. Section 1.31(a), Chapter 304, Acts of the 72nd
9-24 Legislature, Regular Session, 1991 (Article 6252-9d.1, Vernon's
9-25 Texas Civil Statutes), is amended to read as follows:
9-26 (a) A member of the commission who is the subject of a
9-27 formal investigation by the commission, of a sworn complaint filed
10-1 with the commission <or a motion>, or of a motion by record vote of
10-2 at least six members of the commission may not participate in that
10-3 member's official capacity in commission proceedings relating to
10-4 the investigation, complaint, or motion.
10-5 SECTION 1.08. Section 1.26, Chapter 304, Acts of the 72nd
10-6 Legislature, Regular Session, 1991 (Article 6252-9d.1, Vernon's
10-7 Texas Civil Statutes), is repealed.
10-8 ARTICLE 2
10-9 SECTION 2.01. Section 305.0011(e), Government Code, is
10-10 amended to read as follows:
10-11 (e) The commission may adopt rules for the implementation of
10-12 this section consistent with this chapter, the Texas Disciplinary
10-13 Rules of Professional Conduct <Code of Professional
10-14 Responsibility>, and the common law of agency.
10-15 SECTION 2.02. Section 305.002(2), Government Code, is
10-16 amended to read as follows:
10-17 (2) "Communicates directly with" or any variation of
10-18 the phrase means actual contact in person or by telephone,
10-19 telegraph, or letter. The term does not include activities in
10-20 preparation for that contact that do not involve actual contact.
10-21 SECTION 2.03. Section 305.003, Government Code, is amended
10-22 to read as follows:
10-23 Sec. 305.003. PERSONS REQUIRED TO REGISTER. (a) A person
10-24 must register with the commission under this chapter if the person:
10-25 (1) makes a total expenditure of an amount determined
10-26 by commission rule but not less than $500 <$200> in a calendar
10-27 quarter, not including the person's own travel, food, or lodging
11-1 expenses or the person's own membership dues, on activities
11-2 described in Section 305.006(b) to communicate directly with one or
11-3 more members of the legislative or executive branch to influence
11-4 legislation or administrative action; and <or>
11-5 (2) receives compensation or reimbursement, not
11-6 including reimbursement for the person's own travel, food, or
11-7 lodging expenses or the person's own membership dues, of more than
11-8 an amount determined by commission rule but not less than $500
11-9 <$200> in a calendar quarter from another person to communicate
11-10 directly with a member of the legislative or executive branch to
11-11 influence legislation or administrative action.
11-12 (b) Notwithstanding Subsection (a), a person must register
11-13 with the commission under this chapter if the person receives
11-14 compensation or reimbursement, not including reimbursement for the
11-15 person's own travel, food, or lodging expenses or the person's own
11-16 membership dues, of more than $5,000 in a year from another person
11-17 for the purpose of communicating directly with a member of the
11-18 legislative branch to influence legislation. A person does not
11-19 communicate directly to influence legislation if the person
11-20 inquires about legislation or responds to inquiries about
11-21 legislation but does not advocate a particular position.
11-22 (c) Notwithstanding Subsection (a), a person must register
11-23 with the commission under this chapter if the person receives
11-24 compensation or reimbursement, not including reimbursement for the
11-25 person's own travel, food, or lodging expenses or the person's own
11-26 membership dues, of more than $25,000 in a year from another person
11-27 for the purpose of communicating directly with a member of the
12-1 executive branch to influence administrative action. A person does
12-2 not communicate directly to influence administrative action if the
12-3 person inquires about administrative action or responds to
12-4 inquiries about administrative action but does not advocate a
12-5 particular position.
12-6 (d) Notwithstanding Subsection (a), a person must register
12-7 with the commission under this chapter if the person makes a total
12-8 expenditure of more than $1,250 in a calendar quarter, not
12-9 including the person's own travel, food, or lodging expenses or the
12-10 person's own membership dues, on activities described in Section
12-11 305.006(b) to communicate directly with a member of the legislative
12-12 or executive branch to influence legislation or administrative
12-13 action. A person does not communicate directly to influence
12-14 legislation or administrative action if the person inquires about
12-15 legislation or administrative action or responds to inquiries about
12-16 legislation or administrative action but does not advocate a
12-17 particular position.
12-18 (e) Subsection (a)(2) requires a person to register if the
12-19 person, as part of his regular employment, has communicated
12-20 directly with a member of the legislative or executive branch to
12-21 influence legislation or administrative action on behalf of the
12-22 person by whom he is compensated or reimbursed, whether or not the
12-23 person receives any compensation for the communication in addition
12-24 to the salary for that regular employment. However, Subsection
12-25 (a)(2), (b), or (c) does not require a member of the judicial,
12-26 legislative, or executive branch of state government or an officer
12-27 or employee of a political subdivision of the state to register.
13-1 (f) <(c)> A person who communicates directly with a member
13-2 of the executive branch to influence administrative action is not
13-3 required to register under Subsection (c) <(a)(2)> if the person is
13-4 an attorney of record or pro se, the person enters his appearance
13-5 in a public record through pleadings or other written documents in
13-6 a docketed case pending before a state agency, and that
13-7 communication is the only activity that would otherwise require the
13-8 person to register.
13-9 SECTION 2.04. Section 305.004, Government Code, is amended
13-10 to read as follows:
13-11 Sec. 305.004. Exceptions. The following persons are not
13-12 required to register under this chapter:
13-13 (1) a person who owns, publishes, or is employed by a
13-14 newspaper, any other regularly published periodical, a radio
13-15 station, a television station, a wire service, or any other bona
13-16 fide news medium that in the ordinary course of business
13-17 disseminates news, letters to the editors, editorial or other
13-18 comment, or paid advertisements that directly or indirectly oppose
13-19 or promote legislation or administrative action, if the person does
13-20 not engage in further or other activities that require registration
13-21 under this chapter and does not represent another person in
13-22 connection with influencing legislation or administrative action;
13-23 (2) a person whose only direct communication with a
13-24 member of the legislative or executive branch to influence
13-25 legislation or administrative action is an appearance before or
13-26 testimony to one or more members of the legislative or executive
13-27 branch in a hearing conducted by or on behalf of either the
14-1 legislative or the executive branch and whose only <who does not
14-2 receive special or extra> compensation for the appearance is either
14-3 the person's regular salary or routine hourly rate, as applicable,
14-4 and <other than> actual expenses incurred in attending the hearing,
14-5 if any;
14-6 (3) a person whose only activity is to encourage or
14-7 solicit members, employees, or stockholders of an entity by whom
14-8 the person is reimbursed, employed, or retained to communicate
14-9 directly with members of the legislative or executive branch to
14-10 influence legislation or administrative action;
14-11 (4) a person whose only activity to influence
14-12 legislation or administrative action is to compensate or reimburse
14-13 an individual registrant to act in the person's behalf to
14-14 communicate directly with a member of the legislative or executive
14-15 branch to influence legislation or administrative action;
14-16 (5) a person whose only activity to influence
14-17 legislation or administrative action is attendance at a meeting or
14-18 entertainment event attended by a member of the legislative or
14-19 executive branch if the total cost of the meeting or entertainment
14-20 event is paid by a business entity, union, or association;
14-21 (6) a person whose only compensation subject to
14-22 Section 305.003(a)(2) consists of reimbursement for any wages not
14-23 earned due to attendance at a meeting or entertainment event,
14-24 travel to and from the meeting or entertainment event, admission to
14-25 the meeting or entertainment event, and any food and beverage
14-26 consumed at the meeting or entertainment event if the meeting or
14-27 entertainment event is attended by a member of the legislative or
15-1 executive branch and if the total cost of the meeting or
15-2 entertainment event is paid by a business entity, union, or
15-3 association; and
15-4 (7) a person who communicates directly with a member
15-5 of the legislative or executive branch on behalf of a political
15-6 party concerning legislation or administrative action, and whose
15-7 expenditures and compensation, as described in Section 305.003,
15-8 combined do not exceed $5,000 a calendar year.
15-9 SECTION 2.05. Subchapter A, Chapter 305, Government Code, is
15-10 amended by adding Section 305.0041 to read as follows:
15-11 Sec. 305.0041. REGISTRATION EXCEPTION FOR CERTAIN ENTITIES.
15-12 A corporation, association, firm, partnership, committee, club,
15-13 organization, or group of persons voluntarily acting in concert is
15-14 not required to register under this chapter if a registrant whom
15-15 the entity reimburses, retains, or employs reports expenditures
15-16 attributable to the entity that are required to be reported under
15-17 Section 305.006. A registrant who is present at the time of an
15-18 expenditure by the entity in order to satisfy the presence
15-19 requirements of Section 305.024(a)(7) shall report those
15-20 expenditures on behalf of the entity.
15-21 SECTION 2.06. Sections 305.005(c), (f), and (g), Government
15-22 Code, are amended to read as follows:
15-23 (c) The registration fee and registration renewal fee are:
15-24 (1) $100 for a registrant employed by an organization
15-25 or organizations exempt from federal income tax under Section
15-26 501(c)(3) or 501(c)(4), Internal Revenue Code of 1986, and not
15-27 employed by any other person or type of organization for purposes
16-1 regulated under this chapter; or
16-2 (2) $500 <$300> for any other registrant.
16-3 (f) The registration must be written and verified and must
16-4 contain:
16-5 (1) the registrant's full name and address;
16-6 (2) the registrant's normal business, business phone
16-7 number, and business address;
16-8 (3) the full name and address of each person:
16-9 (A) who reimburses, retains, or employs the
16-10 registrant to communicate directly with a member of the legislative
16-11 or executive branch to influence legislation or administrative
16-12 action; and
16-13 (B) on whose behalf the registrant has
16-14 communicated directly with a member of the legislative or executive
16-15 branch to influence legislation or administrative action;
16-16 (4) the subject matter and, if applicable, the bill
16-17 number, docket number, or other legislative or administrative
16-18 designation of the legislation or administrative action that is the
16-19 subject of the registrant's direct communication with a member of
16-20 the legislative or executive branch;
16-21 (5) for each person employed or retained by the
16-22 registrant for the purpose of assisting in direct communication
16-23 with a member of the legislative or executive branch to influence
16-24 legislation or administrative action:
16-25 (A) the full name, business address, occupation,
16-26 and date of employment or retention of the person by the
16-27 registrant; and
17-1 (B) the subject matter and, if applicable, the
17-2 bill number, docket number, or other administrative designation of
17-3 the legislation or administrative action to which the person's
17-4 activities reportable under this section were related; and
17-5 (6) the amount of compensation or reimbursement either
17-6 paid or to be paid by each person who reimburses, retains, or
17-7 employs the registrant for the purpose of communicating directly
17-8 with a member of the legislative or executive branch or on whose
17-9 behalf the registrant communicates directly with a member of the
17-10 legislative or executive branch, and if the registrant elects to
17-11 report the compensation or reimbursement to be paid, the period of
17-12 time that the compensation or reimbursement represents.
17-13 (g) Compensation or reimbursement required to be reported
17-14 under Subsection (f)(6) shall be reported in the following
17-15 categories unless reported as an exact amount:
17-16 (1) less than $5,000;
17-17 (2) at least $5,000 but less than $10,000;
17-18 (3) <(2)> at least $10,000 but less than $25,000;
17-19 (4) <(3)> at least $25,000 but less than $50,000;
17-20 (5) <(4)> at least $50,000 but less than $100,000;
17-21 (6) <(5)> at least $100,000 but less than $150,000;
17-22 (7) <(6)> at least $150,000 but less than $200,000;
17-23 and
17-24 (8) <(7)> $200,000 or more.
17-25 SECTION 2.07. Section 305.006, Government Code, is amended
17-26 by adding Subsection (g) to read as follows:
17-27 (g) A registrant is not required to report under this
18-1 chapter an expenditure for the registrant's own expenses made to
18-2 communicate directly with a member of the legislative or executive
18-3 branch if the registrant makes no expenditures in connection with
18-4 that occasion for the member's expenses.
18-5 SECTION 2.08. Section 305.0062(a), Government Code, is
18-6 amended to read as follows:
18-7 (a) The report filed under Section 305.006 must also contain
18-8 the total expenditures described by Section 305.006(b) that are
18-9 directly attributable to persons in the following categories
18-10 <members of the legislative or executive branch and those that are
18-11 directly attributable to the registrant>. The expenditures must be
18-12 stated in only one of the following categories:
18-13 (1) state senators;
18-14 (2) state representatives;
18-15 (3) elected or appointed state officers, other than
18-16 those described by Subdivision (1) or (2);
18-17 (4) legislative agency employees;
18-18 (5) executive agency employees;
18-19 (6) the immediate family of a member of the
18-20 legislative or executive branch;
18-21 (7) the registrant; or <and>
18-22 (8) events to which all legislators are invited.
18-23 SECTION 2.09. Subchapter A, Chapter 305, Government Code, is
18-24 amended by adding Section 305.0064 to read as follows:
18-25 Sec. 305.0064. AMENDMENT OF SUBSTANTIALLY COMPLETE AND
18-26 CORRECT DOCUMENT. A person required to file a registration,
18-27 report, or other disclosure document under this chapter may, in the
19-1 commission's discretion, amend the document within a reasonable
19-2 time without incurring a penalty if the document originally filed
19-3 was substantially complete and correct and not misleading.
19-4 SECTION 2.10. Subchapter A, Chapter 305, Government Code, is
19-5 amended by adding Section 305.012 to read as follows:
19-6 Sec. 305.012. AFFIDAVIT. (a) Each registration, report, or
19-7 termination notice filed under this chapter must be accompanied by
19-8 an affidavit executed by the person required to file the
19-9 registration, report, or termination notice.
19-10 (b) The affidavit must contain the statement: "I swear, or
19-11 affirm, that the accompanying document is true and correct to the
19-12 best of my knowledge and includes all information required to be
19-13 reported by me under Chapter 305, Government Code."
19-14 (c) A registration, report, or termination notice filed
19-15 under this chapter without an affidavit of verification, or filed
19-16 with a defective affidavit, is covered by Section 1.121, Chapter
19-17 304, Acts of the 72nd Legislature, Regular Session, 1991 (Article
19-18 6252-9d.1, Vernon's Texas Civil Statutes).
19-19 SECTION 2.11. Section 305.007, Government Code, is amended
19-20 by amending Subsection (a) and adding Subsections (c) and (d) to
19-21 read as follows:
19-22 (a) Except as otherwise provided by this section, the <The>
19-23 registrant must file the report required by Section 305.006 between
19-24 the 1st and 10th day of each month. The report must cover the
19-25 activities occurring during the previous month.
19-26 (c) A registrant may elect to report an expenditure on the
19-27 report that covers the reporting period in which:
20-1 (1) the expenditure is made; or
20-2 (2) the bill for the expenditure is received, if the
20-3 character of the expenditure is such that under normal business
20-4 practice the amount of the expenditure or a reasonable estimate of
20-5 the expenditure is not disclosed until the bill is received.
20-6 (d) Notwithstanding Subsection (c), a registrant who elects
20-7 to report under Subsection (c)(2) shall report the expenditure not
20-8 later than the 60th day after the date on which the expenditure is
20-9 made.
20-10 SECTION 2.12. Section 305.025, Government Code, is amended
20-11 to read as follows:
20-12 Sec. 305.025. Exceptions. Section 305.024 does not
20-13 prohibit:
20-14 (1) a loan in the due course of business from a
20-15 corporation or other business entity that is legally engaged in the
20-16 business of lending money and that has conducted that business
20-17 continuously for more than one year before the loan is made;
20-18 (2) a loan or guarantee of a loan or a gift made or
20-19 given by a person related within the second degree by affinity or
20-20 consanguinity to the member of the legislative or executive branch;
20-21 (3) necessary expenditures for transportation and
20-22 lodging when the purpose of the travel is to explore matters
20-23 directly related to the duties of a member of the legislative or
20-24 executive branch, such as fact-finding trips, but not including
20-25 attendance at merely ceremonial events or pleasure trips;
20-26 (4) necessary expenditures for transportation and
20-27 lodging provided in connection with a conference, seminar,
21-1 educational program, or similar event in which the member renders
21-2 services, such as addressing an audience or engaging in a seminar,
21-3 to the extent that those services are more than merely perfunctory;
21-4 (5) expenditures for transportation or lodging for a
21-5 member of the legislative or executive branch, or for an immediate
21-6 family member's transportation and lodging, that are reimbursed by
21-7 the member of the legislative or executive branch; or
21-8 (6) <(5)> a political contribution as defined by
21-9 Section 251.001, Election Code.
21-10 SECTION 2.13. Section 305.027(a), Government Code, is
21-11 amended to read as follows:
21-12 (a) A person commits an offense if the person knowingly
21-13 enters into a contract or other agreement to print, publish, or
21-14 broadcast legislative advertising that does not indicate in the
21-15 advertising:
21-16 (1) that it is legislative advertising;
21-17 (2) the full name of the individual who personally
21-18 entered into the contract or agreement with the printer, publisher,
21-19 or broadcaster and the name of the person, if any, that the
21-20 individual represents; <and>
21-21 (3) in the case of advertising that is printed or
21-22 published, the address of the individual who personally entered
21-23 into the agreement with the printer or publisher and the address of
21-24 the person, if any, that the individual represents; and
21-25 (4) the name of the person who will ultimately pay for
21-26 the legislative advertising if different than the name of the
21-27 individual who personally entered into the contract or agreement.
22-1 SECTION 2.14. Section 305.031(a), Government Code, is
22-2 amended to read as follows:
22-3 (a) A person commits an offense if the person intentionally
22-4 or knowingly violates a provision of this chapter other than
22-5 Section 305.0011 or 305.022. An offense under this subsection is a
22-6 Class A misdemeanor.
22-7 SECTION 2.15. Section 305.033(a), Government Code, is
22-8 amended to read as follows:
22-9 (a) The commission shall determine from any available
22-10 evidence whether a registration or report required to be filed with
22-11 the commission under this chapter is late. A registration filed
22-12 without the fee required by Section 305.005 is considered to be
22-13 late. On making a determination that a required registration or
22-14 report is late, the commission shall immediately mail a notice of
22-15 the determination to the person responsible for the filing<, to the
22-16 commission,> and to the appropriate attorney for the state.
22-17 SECTION 2.16. The change in law made by this article to the
22-18 information required to be included in a report filed under Chapter
22-19 305, Government Code, applies only to a report filed on or after
22-20 October 1, 1993.
22-21 SECTION 2.17. The change in law made to Section 305.027(a),
22-22 Government Code, by this Act applies only to a contract or other
22-23 agreement entered into on or after September 1, 1993. An offense
22-24 committed before that date is covered by the law in effect on the
22-25 date the offense occurred, and that law is continued in effect for
22-26 this purpose.
22-27 SECTION 2.18. Chapter 12, Acts of the 55th Legislature, 1st
23-1 Called Session, 1957 (Article 6252-23, Vernon's Texas Civil
23-2 Statutes), is amended to read as follows:
23-3 Sec. 1. Definitions. In this Act, unless the context
23-4 otherwise requires:
23-5 (1) "State <(a) "state> agency" means any office,
23-6 department, commission, or board of the executive department of
23-7 government.
23-8 (2) "Person"<;>
23-9 <(b) "person"> means any individual, including a member of
23-10 the Legislature, legislative employee, state officer, or state
23-11 employee.
23-12 (3) "Commission" means the Texas Ethics Commission.
23-13 Sec. 2. Registration. (a) Except as herein provided, every
23-14 person appearing before a state agency or contacting in person any
23-15 officer or employee thereof on behalf of any other person, firm,
23-16 partnership, corporation, or association in relation to any case,
23-17 proceeding, application, or other matter before such agency, shall
23-18 register in an appropriate record, which shall be maintained by the
23-19 agency for such purpose, the following information:
23-20 (1) <(a)> the name and address of the registrant;
23-21 (2) <(b)> the name and address of the person, firm,
23-22 partnership, corporation, or association on whose behalf the
23-23 appearance or contact is made; and
23-24 (3) <(c)> a statement as to whether or not the
23-25 registrant has received or expects to receive any money, thing of
23-26 value, or financial benefit in return for the services rendered in
23-27 making the appearance or contact.
24-1 (b) This Act shall not apply to:
24-2 (1) officers or employees of a state agency when
24-3 appearing before or contacting officers or employees of another
24-4 state agency on official inter-agency matters; or
24-5 (2) a member of the Legislature or legislative
24-6 employee when appearing before or contacting officers or employees
24-7 of a state agency in the person's capacity as a member of the
24-8 Legislature or legislative employee.
24-9 Sec. 3. Reporting and filing of registrations. Each state
24-10 agency shall file a report with the commission <Secretary of State>
24-11 between the first and tenth of each <the> month <following the
24-12 close of each calendar quarter>. The report shall set forth the
24-13 names of persons registering with the agency during the preceding
24-14 month <quarter>, together with the detailed information specified
24-15 in Section 2 of this Act. Such reports, which shall be considered
24-16 public records of this state and open to public inspection, shall
24-17 be appropriately indexed and kept on file in the office of the
24-18 commission <Secretary of State> for a period of four <(4)> years
24-19 from the date of filing.
24-20 Sec. 3A. Persons not required to register. No person shall
24-21 be required to register if:
24-22 (1) <(a)> the contact with a state agency or its
24-23 officers or employees is solely for the purpose of obtaining
24-24 information, and no attempt is made to influence the action of any
24-25 officer or employee of such agency; or
24-26 (2) <(b) the contact consists in participating in a
24-27 public hearing, at which such person enters his appearance at such
25-1 hearing;>
25-2 <(c) the contact is made in connection with any matter where
25-3 pleadings or instruments disclosing such person's representation is
25-4 on file with the agency;>
25-5 <(d)> the contact is one for which such person receives no
25-6 fee, payment, compensation or any thing of value.
25-7 Sec. 3B. FORMS. The commission by rule shall prescribe
25-8 forms that must be used for registering and reporting under this
25-9 Act.
25-10 Sec. 4. Penalty. Any person who fails to register as
25-11 required by Section 2 of this Act shall be guilty of a misdemeanor,
25-12 and upon conviction thereof shall be subject to a fine not
25-13 exceeding Five Hundred Dollars ($500) or by imprisonment in the
25-14 county jail not exceeding six (6) months, or by both such fine and
25-15 imprisonment.
25-16 ARTICLE 3
25-17 SECTION 3.01. Section 3(a), Chapter 421, Acts of the 63rd
25-18 Legislature, Regular Session, 1973 (Article 6252-9b, Vernon's Texas
25-19 Civil Statutes), is amended to read as follows:
25-20 (a) On or before April 30th of each year, every elected
25-21 <state> officer, salaried appointed officer, appointed officer of a
25-22 major state agency, executive head of a state agency, and <every>
25-23 party chairman shall file with the commission a financial statement
25-24 complying with the requirements of Section 4 of this Act.
25-25 SECTION 3.02. Sections 4(c) and (d), Chapter 421, Acts of
25-26 the 63rd Legislature, Regular Session, 1973 (Article 6252-9b,
25-27 Vernon's Texas Civil Statutes), are amended to read as follows:
26-1 (c) The account of financial activity referred to in
26-2 Subsection (a) of this section shall consist of:
26-3 (1) a list of all sources of occupational income,
26-4 identified by employer, or if self-employed, by the nature of the
26-5 occupation, including identification of any person, business
26-6 entity, or other organization from whom the person or a business in
26-7 which he has a substantial interest received a fee as a retainer
26-8 for a claim on future services in case of need (as opposed to a fee
26-9 for services on a matter specified at the time of contracting for
26-10 or receiving the fee), whenever professional or occupational
26-11 services were not actually performed during the reporting period
26-12 commensurate to or in excess of the amount of the retainer, and the
26-13 category of the amount of the fee;
26-14 (2) identification by name and category of number of
26-15 shares of stock of any business entity held or acquired, and if
26-16 sold the category of the amount of net gain or loss realized from
26-17 such sale;
26-18 (3) a list of all bonds, notes, and other commercial
26-19 paper held or acquired, and if sold the category of the amount of
26-20 net gain or loss realized from such sale;
26-21 (4) identification of each source and the category of
26-22 the amount of income in excess of $500 derived per source from
26-23 interest, dividends, royalties, and rents;
26-24 (5) identification of each guarantor of a loan and
26-25 identification of each person or financial institution to whom a
26-26 personal note or notes or lease agreement for a total financial
26-27 liability in excess of $1,000 existed at any time during the year,
27-1 and the category of the amount of the liability;
27-2 (6) identification by description of all beneficial
27-3 interests in real property and business entities held or acquired,
27-4 and if sold the category of the amount of the net gain or loss
27-5 realized from such sale;
27-6 (7) identification of any person, business entity, or
27-7 other organization from whom the person or his spouse or dependent
27-8 children received a gift of anything of value in excess of $250 in
27-9 value and a description of each gift, except:
27-10 (A) gifts received from persons related to the
27-11 person at any time within the second degree of consanguinity or
27-12 affinity, as determined under Article 5996h, Revised Statutes;
27-13 (B) political contributions that were reported
27-14 as required by law; and
27-15 (C) expenditures required to be reported by a
27-16 person required to be registered under Chapter 305, Government
27-17 Code;
27-18 (8) identification of the source and the category of
27-19 the amount of all income received as beneficiary of a trust and
27-20 identification of each asset, if known to the beneficiary, from
27-21 which income was received by the beneficiary in excess of $500;
27-22 (9) identification by description and category of the
27-23 amount of all assets and liabilities of any corporation or
27-24 partnership in which 50 percent or more of the outstanding
27-25 ownership was held, acquired, or sold;
27-26 (10) a list of all boards of directors of which the
27-27 person is a member and executive positions which the person holds
28-1 in corporations, firms, partnerships, and proprietorships, stating
28-2 the name of each corporation, firm, partnership, or proprietorship
28-3 and the position held;
28-4 (11) identification of any person providing
28-5 transportation, meals, or lodging expenses permitted under Section
28-6 36.07(b), Penal Code, and the amount of those expenses, other than
28-7 expenditures required to be reported under Chapter 305, Government
28-8 Code; and
28-9 (12) any partnership, joint venture, or other business
28-10 association, excluding a publicly held or traded business entity
28-11 <corporation>, in which both the state officer and a person
28-12 registered under Chapter 305, Government Code, have an interest.
28-13 (d) The financial statement shall be verified. However, a
28-14 statement filed without an affidavit of verification, or filed with
28-15 a defective affidavit, is covered by Section 1.121, Chapter 304,
28-16 Acts of the 72nd Legislature, Regular Session, 1991 (Article
28-17 6252-9d.1, Vernon's Texas Civil Statutes).
28-18 SECTION 3.03. Section 7C, Chapter 421, Acts of the 63rd
28-19 Legislature, Regular Session, 1973 (Article 6252-9b, Vernon's Texas
28-20 Civil Statutes), is amended to read as follows:
28-21 Sec. 7C. Contracts with governmental entities. (a) A state
28-22 officer may not solicit or accept <from the state, a political
28-23 subdivision of the state, or a governmental entity created under
28-24 the constitution or laws of the state> a commission, fee, bonus,
28-25 retainer, or rebate that is compensation for the officer's personal
28-26 solicitation for the award of a contract for services or sale of
28-27 goods to the state, a political subdivision of the state, or a
29-1 governmental entity created under the constitution or laws of the
29-2 state.
29-3 (b) This section does not apply to:
29-4 (1)<, excluding> contracts that are awarded by
29-5 competitive bid as provided by law and that are not otherwise
29-6 prohibited by law; and
29-7 (2) all court appointments.
29-8 (c) <(b)> A state officer who violates this section commits
29-9 an offense. An offense under this section is a Class A
29-10 misdemeanor.
29-11 SECTION 3.04. Chapter 421, Acts of the 63rd Legislature,
29-12 Regular Session, 1973 (Article 6252-9b, Vernon's Texas Civil
29-13 Statutes), is amended by adding Section 12C to read as follows:
29-14 Sec. 12C. AMENDMENT OF SUBSTANTIALLY COMPLETE AND CORRECT
29-15 DOCUMENT. A person required to file a financial statement or other
29-16 disclosure document under this Act may, in the commission's
29-17 discretion, amend the document within a reasonable time without
29-18 incurring a penalty if the document originally filed was
29-19 substantially complete and correct and not misleading.
29-20 SECTION 3.05. Sections 159.001 and 159.031, Local Government
29-21 Code, are repealed.
29-22 ARTICLE 4
29-23 SECTION 4.01. Sections 36.02(a) and (d), Penal Code, are
29-24 amended to read as follows:
29-25 (a) A person commits an offense if he intentionally or
29-26 knowingly offers, confers, or agrees to confer on another, or
29-27 solicits, accepts, or agrees to accept from another:
30-1 (1) any benefit as consideration for the recipient's
30-2 decision, opinion, recommendation, vote, or other exercise of
30-3 discretion as a public servant, party official, or voter;
30-4 (2) any benefit as consideration for the recipient's
30-5 decision, vote, recommendation, or other exercise of official
30-6 discretion in a judicial or administrative proceeding;
30-7 (3) any benefit as consideration for a violation of a
30-8 duty imposed by law on a public servant or party official; or
30-9 (4) any benefit that is a political contribution as
30-10 defined by Title 15, Election Code, or that is an expenditure made
30-11 and reported in accordance with Chapter 305, Government Code, if
30-12 the benefit was offered, conferred, solicited, accepted, or agreed
30-13 to pursuant to an express agreement to take or withhold a specific
30-14 exercise of official discretion if such exercise of official
30-15 discretion would not have been taken or withheld but for the
30-16 benefit; notwithstanding any rule of evidence or jury instruction
30-17 allowing factual inferences in the absence of certain evidence,
30-18 direct evidence of the express agreement shall be required in any
30-19 prosecution under this subdivision.
30-20 (d) It is an exception to the application of Subdivisions
30-21 (1), (2), and (3) of Subsection (a) of this section that the
30-22 benefit is a political contribution <accepted> as defined by Title
30-23 15, Election Code, or an expenditure made and reported in
30-24 accordance with Chapter 305, Government Code.
30-25 SECTION 4.02. Section 36.07(b), Penal Code, is amended to
30-26 read as follows:
30-27 (b) This section does not prohibit a public servant from
31-1 accepting transportation and lodging expenses <permitted under
31-2 Section 305.025(b)(2), Government Code,> in connection with a
31-3 conference or similar event in which the public servant renders
31-4 services, such as addressing an audience or engaging in a seminar,
31-5 to the extent that those services are more than merely perfunctory,
31-6 or from accepting meals in connection with such an event.
31-7 SECTION 4.03. Section 36.08, Penal Code, is amended by
31-8 adding Subsection (i) to read as follows:
31-9 (i) A public servant who receives an unsolicited benefit
31-10 that the public servant is prohibited from accepting under this
31-11 section may donate the benefit to a governmental entity that has
31-12 the authority to accept the gift or may donate the benefit to a
31-13 recognized tax-exempt charitable organization formed for
31-14 educational, religious, or scientific purposes.
31-15 SECTION 4.04. Section 36.10(a), Penal Code, is amended to
31-16 read as follows:
31-17 (a) Sections 36.08 (Gift to Public Servant) and 36.09
31-18 (Offering Gift to Public Servant) of this code do not apply to:
31-19 (1) a fee prescribed by law to be received by a public
31-20 servant or any other benefit to which the public servant is
31-21 lawfully entitled or for which he gives legitimate consideration in
31-22 a capacity other than as a public servant;
31-23 (2) a gift or other benefit conferred on account of
31-24 kinship or a personal, professional, or business relationship
31-25 independent of the official status of the recipient; or
31-26 (3) a benefit to a public servant required to file a
31-27 statement under Chapter 421, Acts of the 63rd Legislature, Regular
32-1 Session, 1973 (Article 6252-9b, Vernon's Texas Civil Statutes), or
32-2 a report under Title 15, Election Code, that is derived from a
32-3 function in honor or appreciation of the recipient if:
32-4 (A) the benefit and the source of any benefit in
32-5 excess of $50 is reported in the statement; and
32-6 (B) the benefit is used solely to defray the
32-7 expenses that accrue in the performance of duties or activities in
32-8 connection with the office which are nonreimbursable by the state
32-9 or political subdivision;
32-10 (4) a political contribution as defined by Title 15,
32-11 Election Code; <or>
32-12 (5) a gift, award, or memento to a member of the
32-13 legislative or executive branch that is required to be reported
32-14 under Chapter 305, Government Code;
32-15 (6) an item with a value of less than $50, excluding
32-16 cash or a negotiable instrument as described by Section 3.104,
32-17 Business & Commerce Code; or
32-18 (7) an item issued by a governmental entity that
32-19 allows the use of property or facilities owned, leased, or operated
32-20 by the governmental entity.
32-21 SECTION 4.05. Section 39.01, Penal Code, is amended by
32-22 adding Subsection (d) to read as follows:
32-23 (d) A discount or award given for travel, such as frequent
32-24 flyer miles, rental car or hotel discounts, or food coupons, are
32-25 not things of value belonging to the government for purposes of
32-26 this section due to the administrative difficulty and cost involved
32-27 in recapturing the discount or award for a governmental entity.
33-1 SECTION 4.06. (a) The change in law made by this article
33-2 applies only to an offense committed on or after the effective date
33-3 of this Act. For purposes of this section, an offense is committed
33-4 before the effective date of this Act if any element of the offense
33-5 occurs before the effective date.
33-6 (b) An offense committed before the effective date of this
33-7 Act is covered by the law in effect when the offense was committed,
33-8 and the former law is continued in effect for that purpose.
33-9 SECTION 4.07. Chapter 401, Government Code, is amended by
33-10 adding Subchapter C to read as follows:
33-11 SUBCHAPTER C. OFFICE OF THE GOVERNOR
33-12 Sec. 401.031. ACCEPTANCE OF GIFTS, GRANTS, AND DONATIONS BY
33-13 GOVERNOR. (a) The governor may accept gifts, grants, and
33-14 donations of property other than cash or negotiable instruments on
33-15 behalf of the state for any lawful public purpose related to the
33-16 office of governor.
33-17 (b) The governor may decline to accept a gift, grant, or
33-18 donation that is made for a specific purpose if the governor
33-19 determines the gift may not be used reasonably or economically for
33-20 the designated purpose.
33-21 ARTICLE 5
33-22 SECTION 5.01. Section 251.001, Election Code, is amended by
33-23 amending Subdivisions (12) and (14) and adding Subdivision (21) to
33-24 read as follows:
33-25 (12) "Political committee" means a group of persons
33-26 that has as a principal purpose accepting political contributions
33-27 or making political expenditures. The term does not include a
34-1 group of candidates or officeholders all of whom are otherwise
34-2 required to file reports under this title.
34-3 (14) "General-purpose committee" means a political
34-4 committee that has among its principal purposes:
34-5 (A) supporting or opposing:
34-6 (i) two or more candidates who are
34-7 unidentified or are seeking offices that are unknown; or
34-8 (ii) one or more unidentified measures
34-9 <that are unidentified>; or
34-10 (B) assisting two or more officeholders who are
34-11 unidentified.
34-12 (21) "Unidentified measure" means a question or
34-13 proposal that is intended to be submitted in an election for an
34-14 expression of the voters' will and that is not yet legally required
34-15 to be submitted in an election. The term does not include the
34-16 circulation or submission of a petition to determine whether a
34-17 question or proposal is required to be submitted in an election for
34-18 an expression of the voters' will.
34-19 SECTION 5.02. Section 252.001, Election Code, is amended to
34-20 read as follows:
34-21 Sec. 252.001. Appointment of Campaign Treasurer Required.
34-22 Except as provided by Section 254.1811, each <Each> candidate and
34-23 each political committee shall appoint a campaign treasurer as
34-24 provided by this chapter.
34-25 SECTION 5.03. Section 252.003, Election Code, is amended by
34-26 adding Subsection (e) to read as follows:
34-27 (e) For purposes of Subsection (d), a corporation, labor
35-1 organization, or other association or legal entity other than an
35-2 individual directly establishes, administers, or controls a
35-3 general-purpose committee if the entity:
35-4 (1) is entitled to actively participate in determining
35-5 to whom the committee makes political contributions or for what
35-6 purposes the committee makes political expenditures; and
35-7 (2) is entitled to designate a person to fill a
35-8 position of authority, including that of an officer or director, on
35-9 the committee.
35-10 SECTION 5.04. Section 253.031, Election Code, is amended to
35-11 read as follows:
35-12 Sec. 253.031. Contribution and Expenditure Without Campaign
35-13 Treasurer Prohibited. (a) A candidate may not knowingly accept a
35-14 campaign contribution or make or authorize a campaign expenditure
35-15 at a time when a campaign treasurer appointment for the candidate
35-16 is not in effect.
35-17 (b) A political committee may not knowingly accept a
35-18 political contribution or make or authorize a political expenditure
35-19 at a time when a campaign treasurer appointment for the committee
35-20 is not in effect.
35-21 (c) A political committee may not knowingly make or
35-22 authorize a campaign contribution or campaign expenditure
35-23 supporting or opposing a candidate for an office specified by
35-24 Section 252.005(1) in a primary or general election unless the
35-25 committee's campaign treasurer appointment has been filed not later
35-26 than the 30th day before the appropriate election day.
35-27 (d) This section does not apply to a political party's
36-1 county executive committee that accepts political contributions or
36-2 makes political expenditures, except that:
36-3 (1) a county executive committee that accepts
36-4 political contributions or makes political expenditures shall
36-5 maintain the records required by Section 254.001; and
36-6 (2) a county executive committee that accepts
36-7 political contributions or makes political expenditures that, in
36-8 the aggregate, exceed $5,000 in a calendar year shall file:
36-9 (A) a campaign treasurer appointment as required
36-10 by Section 252.001 not later than the 15th day after the date that
36-11 amount is exceeded; and
36-12 (B) the reports required by Subchapter F,
36-13 Chapter 254, including in the political committee's first report
36-14 all political contributions accepted and all political expenditures
36-15 made before the effective date of the campaign treasurer
36-16 appointment.
36-17 (e) This section does not apply to an out-of-state political
36-18 committee unless the committee is subject to Chapter 252 under
36-19 Section 251.005.
36-20 (f) This section does not apply to a political committee
36-21 that is not required to appoint a campaign treasurer under
36-22 Section 254.1811.
36-23 (g) A person who violates this section commits an offense.
36-24 An offense under this section is a Class A misdemeanor.
36-25 SECTION 5.05. Section 253.035, Election Code, is amended by
36-26 amending Subsection (d) and adding Subsections (j) and (k) to read
36-27 as follows:
37-1 (d) In this section, "personal use" means a use that
37-2 primarily furthers individual or family purposes not connected with
37-3 the performance of duties or activities as a candidate for or
37-4 holder of a public office. The term does not include:
37-5 (1) payments made to defray ordinary and necessary
37-6 expenses incurred in connection with activities as a candidate or
37-7 in connection with the performance of duties or activities as a
37-8 public officeholder, including payment of rent, utility, and other
37-9 reasonable housing or household expenses incurred in maintaining a
37-10 residence in Travis County by members of the legislature who do not
37-11 ordinarily reside in Travis County, but excluding payments
37-12 prohibited under Section 253.038; <or>
37-13 (2) payments of federal income taxes due on interest
37-14 and other income earned on political contributions;
37-15 (3) payments of telephone expenses for any telephone
37-16 calls that would not have been long-distance telephone calls if
37-17 those telephone calls had been made from the legislative district
37-18 office of a member of the legislature;
37-19 (4) ordinary and necessary expenses paid or incurred
37-20 by a member of the legislature or by a specific-purpose committee
37-21 for assisting the member if the expenses are incurred in connection
37-22 with the performance of duties or activities as a legislator,
37-23 including cleaning and maintenance of clothing worn in performing
37-24 those duties or activities, regardless of whether those expenses
37-25 are allowed as a deduction under the Internal Revenue Code;
37-26 (5) an expenditure made by or on behalf of a member of
37-27 a candidate's or officeholder's immediate family if the same
38-1 expenditure could be made under this chapter by or on behalf of the
38-2 candidate or officeholder; or
38-3 (6) the incidental use of an asset purchased, leased,
38-4 or otherwise acquired with political contributions if those
38-5 political contributions are reimbursed in an amount that reasonably
38-6 reflects the value of that use.
38-7 (j) A person may use political contributions to purchase,
38-8 lease, otherwise acquire, or maintain an asset for both political
38-9 and personal use if the political contributions are not used to
38-10 purchase, lease, otherwise acquire, or maintain that portion of the
38-11 asset that is attributable to personal use.
38-12 (k) An asset purchased with political contributions may not
38-13 be used for personal use that is more than incidental by the person
38-14 purchasing the asset, or by a person other than the person
38-15 purchasing the asset, unless those political contributions are
38-16 reimbursed in an amount that reasonably reflects the capital,
38-17 operating, and maintenance costs of the asset for that use.
38-18 SECTION 5.06. Sections 253.100(a) and (b), Election Code,
38-19 are amended to read as follows:
38-20 (a) A corporation, acting alone or with one or more other
38-21 corporations, may make one or more <political> expenditures to
38-22 finance the establishment or administration of a general-purpose
38-23 committee.
38-24 (b) A corporation may make <political> expenditures to
38-25 finance the solicitation of political contributions to a
38-26 general-purpose committee assisted under Subsection (a) from the
38-27 stockholders, employees, or families of stockholders or employees
39-1 of one or more corporations.
39-2 SECTION 5.07. Subchapter B, Chapter 254, Election Code, is
39-3 amended by adding Section 254.043 to read as follows:
39-4 Sec. 254.043. AMENDMENT OF SUBSTANTIALLY COMPLETE AND
39-5 CORRECT DOCUMENT. A person required to file a campaign treasurer
39-6 appointment, report, or other disclosure document under this title
39-7 may, in the commission's discretion, amend the document within a
39-8 reasonable time without incurring a penalty if the document
39-9 originally filed was substantially complete and correct and not
39-10 misleading.
39-11 SECTION 5.08. Section 254.061, Election Code, is amended to
39-12 read as follows:
39-13 Sec. 254.061. ADDITIONAL CONTENTS OF REPORTS. In addition
39-14 to the contents required by Section 254.031, each report by a
39-15 candidate must include:
39-16 (1) the candidate's full name and address, the office
39-17 sought, and the identity and date of the election for which the
39-18 report is filed;
39-19 (2) the campaign treasurer's name, residence or
39-20 business street address, and telephone number;
39-21 (3) for each political committee from which the
39-22 candidate received notice under Section 254.128 or 254.161:
39-23 (A) the committee's full name and address;
39-24 (B) an indication of whether the committee is a
39-25 general-purpose committee or a specific-purpose committee; <and>
39-26 (C) the full name and address of the committee's
39-27 campaign treasurer; and
40-1 (D) an indication that the candidate rejects the
40-2 committee's support, if applicable;
40-3 (4) the full name and address of each individual
40-4 acting as a campaign treasurer of a political committee under
40-5 Section 253.062 from whom the candidate received notice under
40-6 Section 254.128 or 254.161; and
40-7 (5) on a separate page or pages of the report, the
40-8 identification of any payment from political contributions made to
40-9 a business in which the candidate has a participating interest of
40-10 more than 10 percent, holds a position on the governing body of the
40-11 business, or serves as an officer of the business.
40-12 SECTION 5.09. Section 254.091, Election Code, is amended to
40-13 read as follows:
40-14 Sec. 254.091. ADDITIONAL CONTENTS OF REPORTS. In addition
40-15 to the contents required by Section 254.031, each report by an
40-16 officeholder must include:
40-17 (1) the officeholder's full name and address and the
40-18 office held;
40-19 (2) for each political committee from which the
40-20 officeholder received notice under Section 254.128 or 254.161:
40-21 (A) the committee's full name and address;
40-22 (B) an indication of whether the committee is a
40-23 general-purpose committee or a specific-purpose committee; <and>
40-24 (C) the full name and address of the committee's
40-25 campaign treasurer; and
40-26 (D) an indication that the officeholder rejects
40-27 the committee's support, if applicable; and
41-1 (3) on a separate page or pages of the report, the
41-2 identification of any payment from political contributions made to
41-3 a business in which the officeholder has a participating interest
41-4 of more than 10 percent, holds a position on the governing body of
41-5 the business, or serves as an officer of the business.
41-6 SECTION 5.10. Section 254.128, Election Code, is amended to
41-7 read as follows:
41-8 Sec. 254.128. NOTICE TO CANDIDATE AND OFFICEHOLDER OF
41-9 CONTRIBUTIONS AND EXPENDITURES. (a) If a specific-purpose
41-10 committee intends to make a political expenditure for the benefit
41-11 of a candidate or officeholder, the committee's campaign treasurer
41-12 shall deliver written notice of that fact to the affected candidate
41-13 or officeholder not later than the fifth day before the date the
41-14 expenditure is made.
41-15 (b) If a specific-purpose committee accepts political
41-16 contributions or makes political expenditures for a candidate or
41-17 officeholder, the committee's campaign treasurer shall deliver
41-18 written notice of that fact to the affected candidate or
41-19 officeholder not later than the end of the period covered by the
41-20 report in which the reportable activity occurs.
41-21 (c) <(b)> The notice must include the full name and address
41-22 of the political committee and its campaign treasurer and an
41-23 indication that the committee is a specific-purpose committee.
41-24 (d) <(c)> A campaign treasurer commits an offense if that
41-25 person <he> fails to comply with this section. An offense under
41-26 this section is a Class A misdemeanor.
41-27 SECTION 5.11. Section 254.161, Election Code, is amended to
42-1 read as follows:
42-2 Sec. 254.161. Notice to Candidate and Officeholder of
42-3 Contributions and Expenditures. (a) If a general-purpose
42-4 committee intends to make a political expenditure for the benefit
42-5 of a candidate or officeholder, notice of that fact shall be given
42-6 to the affected candidate or officeholder as provided by
42-7 Section 254.128 for a specific-purpose committee.
42-8 (b) If a general-purpose committee accepts political
42-9 contributions or makes political expenditures for a candidate or
42-10 officeholder, notice of that fact shall be given to the affected
42-11 candidate or officeholder as provided by Section 254.128 for a
42-12 specific-purpose committee.
42-13 (c) For purposes of this section, an expenditure in
42-14 connection with a statement supporting, opposing, or assisting a
42-15 candidate or officeholder is not considered a political expenditure
42-16 if:
42-17 (1) the statement is included in a written
42-18 communication prepared by a general-purpose committee; and
42-19 (2) the primary purpose of the written communication
42-20 is not to support, oppose, or assist the candidate or officeholder.
42-21 (d) This section does not apply to the principal political
42-22 committee of a political party or to a political committee
42-23 established by the county executive committee of a political party.
42-24 SECTION 5.12. Section 254.181(a), Election Code, is amended
42-25 to read as follows:
42-26 (a) An opposed candidate <or specific-purpose committee>
42-27 required to file reports under Subchapter C <or E> may file a
43-1 report under this subchapter instead if the candidate <or
43-2 committee> does not intend to accept political contributions that
43-3 in the aggregate exceed $500 or to make political expenditures that
43-4 in the aggregate exceed $500 in connection with the election.
43-5 SECTION 5.13. Subchapter G, Chapter 254, Election Code, is
43-6 amended by adding Section 254.1811 to read as follows:
43-7 Sec. 254.1811. REPORT NOT REQUIRED. A political committee
43-8 is not required to appoint a campaign treasurer or file reports
43-9 under Subchapter E or F if the committee does not intend to accept
43-10 political contributions that in the aggregate exceed $500 or to
43-11 make political expenditures that in the aggregate exceed $500 in
43-12 connection with an election.
43-13 SECTION 5.14. Section 254.182, Election Code, is amended to
43-14 read as follows:
43-15 Sec. 254.182. Declaration of Intent Required. (a) To be
43-16 entitled to file reports under this subchapter, an opposed
43-17 candidate <or specific-purpose committee> must file with the
43-18 campaign treasurer appointment a written declaration of intent not
43-19 to exceed $500 in political contributions or political expenditures
43-20 in the election.
43-21 (b) To be entitled to accept political contributions or make
43-22 political expenditures without appointing a campaign treasurer or
43-23 filing reports under Subchapter E or F, a political committee must
43-24 file a written declaration of intent not to exceed $500 in
43-25 political contributions or political expenditures in the election.
43-26 The declaration of intent must be filed with the authority with
43-27 whom the committee would file a campaign treasurer appointment if
44-1 one were required.
44-2 (c) The declaration of intent must contain a statement that
44-3 the candidate or committee understands that if the $500 maximum for
44-4 contributions and expenditures is exceeded, the candidate or
44-5 committee is required to file reports under Subchapter C, <or> E,
44-6 or F, as applicable.
44-7 SECTION 5.15. Sections 254.183(a) and (b), Election Code,
44-8 are amended to read as follows:
44-9 (a) An opposed candidate or a political <specific-purpose>
44-10 committee that exceeds $500 in political contributions or political
44-11 expenditures in the election shall file reports as required by
44-12 Subchapter C, <or> E, or F, as applicable.
44-13 (b) If a candidate or committee exceeds the $500 maximum
44-14 after the filing deadline prescribed by Subchapter C, <or> E, or F
44-15 for the first report required to be filed under the appropriate
44-16 subchapter, the candidate or committee shall file a report not
44-17 later than 48 hours after the maximum is exceeded.
44-18 SECTION 5.16. Section 254.184, Election Code, is amended to
44-19 read as follows:
44-20 Sec. 254.184. Applicability of Regular Reporting
44-21 Requirements. (a) Subchapter C <or E, as applicable,> applies to
44-22 an opposed candidate <or specific-purpose committee> filing under
44-23 this subchapter to the extent that Subchapter C <the appropriate
44-24 subchapter> does not conflict with this subchapter.
44-25 (b) A candidate <or committee> filing under this subchapter
44-26 is not required to file any reports of political contributions and
44-27 political expenditures other than the semiannual reports required
45-1 to be filed not later than July 15 and January 15.
45-2 SECTION 5.17. Subchapter G, Chapter 254, Election Code, is
45-3 amended by adding Section 254.185 to read as follows:
45-4 Sec. 254.185. EXCEEDING MAXIMUM IMMEDIATELY BEFORE ELECTION
45-5 PROHIBITED. (a) A candidate or political committee that has filed
45-6 a declaration of intent under Section 254.182 may not exceed the
45-7 $500 maximum for political contributions or political expenditures
45-8 after the 11th day before the date of an election in which the
45-9 candidate or committee is involved.
45-10 (b) A person who violates this section commits an offense.
45-11 An offense under this section is a Class A misdemeanor.
45-12 SECTION 5.18. Section 255.001, Election Code, is amended to
45-13 read as follows:
45-14 Sec. 255.001. Required Disclosure on Political Advertising.
45-15 (a) A person may not knowingly enter into a contract or other
45-16 agreement to print, publish, or broadcast political advertising
45-17 that does not indicate in the advertising:
45-18 (1) that it is political advertising;
45-19 (2) the full name of either the individual who
45-20 personally entered into the contract or agreement with the printer,
45-21 publisher, or broadcaster or the person that individual represents;
45-22 <and>
45-23 (3) in the case of advertising that is printed or
45-24 published, the address of either the individual who personally
45-25 entered into the agreement with the printer or publisher or the
45-26 person that individual represents; and
45-27 (4) the name of the person who paid for the political
46-1 advertising if different than the name of the individual who
46-2 personally entered into the contract or agreement.
46-3 (b) This section does not apply to tickets or invitations to
46-4 political fund-raising events or to campaign buttons, pins, hats,
46-5 or similar campaign materials.
46-6 (c) For purposes of this section, political advertising is
46-7 "paid for":
46-8 (1) in the case of advertising purchased with funds
46-9 provided by an individual, by the individual; or
46-10 (2) in the case of advertising purchased with funds
46-11 provided by a political committee, by the campaign treasurer of the
46-12 committee.
46-13 (d) A person who violates this section commits an offense.
46-14 An offense under this section is a Class A misdemeanor.
46-15 SECTION 5.19. The change made to Section 255.001, Election
46-16 Code, by this Act applies only to a contract or other agreement
46-17 entered into on or after September 1, 1993. A contract or
46-18 agreement entered into before that date is covered by the law in
46-19 effect on the date the contract or agreement was entered into, and
46-20 that law is continued in effect for this purpose.
46-21 ARTICLE 6
46-22 SECTION 6.01. The importance of this legislation and the
46-23 crowded condition of the calendars in both houses create an
46-24 emergency and an imperative public necessity that the
46-25 constitutional rule requiring bills to be read on three several
46-26 days in each house be suspended, and this rule is hereby suspended,
46-27 and that this Act take effect and be in force from and after its
47-1 passage, and it is so enacted.