1-1 By: Carriker S.B. No. 1005
1-2 (In the Senate - Filed March 12, 1993; March 15, 1993, read
1-3 first time and referred to Subcommittee on Elections and Ethics;
1-4 April 26, 1993, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 6, Nays 0; April 26, 1993,
1-6 sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Carriker x
1-10 Harris of Dallas x
1-11 Ellis x
1-12 Henderson x
1-13 Luna x
1-14 Parker x
1-15 Wentworth x
1-16 COMMITTEE SUBSTITUTE FOR S.B. No. 1005 By: Carriker
1-17 A BILL TO BE ENTITLED
1-18 AN ACT
1-19 relating to technical and substantive amendments to the laws
1-20 relating to ethics of public servants, including laws governing the
1-21 Texas Ethics Commission, communications to influence legislation or
1-22 administrative action, the filing of personal financial statements,
1-23 conflicts of interest, the giving or acceptance of certain
1-24 benefits, and political funds and political advertising; providing
1-25 civil and criminal penalties.
1-26 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-27 ARTICLE 1
1-28 SECTION 1.01. Article 1, Chapter 304, Acts of the 72nd
1-29 Legislature, Regular Session, 1991 (Article 6252-9d.1, Vernon's
1-30 Texas Civil Statutes), is amended by adding Sections 1.03, 1.04,
1-31 and 1.05 to read as follows:
1-32 Sec. 1.03. RESTRICTIONS ON COMMISSION MEMBERS. A person who
1-33 is appointed to the commission may not at the time of appointment
1-34 or during service on the commission be:
1-35 (1) an officer of the state in a capacity other than
1-36 as a member of the commission;
1-37 (2) an officer of a political subdivision, political
1-38 party, or political committee;
1-39 (3) a member of the legislature;
1-40 (4) a candidate or campaign treasurer subject to Title
1-41 15, Election Code, and its subsequent amendments; or
1-42 (5) a person required to be registered under Chapter
1-43 305, Government Code, and its subsequent amendments.
1-44 Sec. 1.04. REMOVAL OF COMMISSION MEMBERS. (a) It is a
1-45 ground for removal of a member from the commission if the member:
1-46 (1) is ineligible under Section 1.03 of this article;
1-47 (2) cannot discharge the member's duties for a
1-48 substantial part of the term for which the member is appointed
1-49 because of illness or disability;
1-50 (3) is absent from two consecutive regularly scheduled
1-51 commission meetings that the member is eligible to attend during a
1-52 calendar year unless the absence is excused by majority vote of the
1-53 commission; or
1-54 (4) has a final conviction for a violation of Chapter
1-55 36, Penal Code, and its subsequent amendments.
1-56 (b) The validity of an action of the commission is not
1-57 affected by the fact that it is taken when a ground for removal of
1-58 a commission member exists.
1-59 (c) If the chairman of the commission has knowledge that a
1-60 potential ground for removal of a member exists, the chairman shall
1-61 notify the appropriate appointing authority of the ground.
1-62 (d) If any two commission members have knowledge that a
1-63 potential ground for removal of the chairman exists, the members
1-64 shall notify the appropriate appointing authority of the ground.
1-65 Sec. 1.05. FILLING OF VACANCIES. (a) A vacancy on the
1-66 commission shall be filled as expeditiously as possible but not
1-67 later than the 90th day after the date on which the vacancy occurs.
1-68 (b) The members of the legislature who are required to
2-1 submit a list to the official making the appointment to fill the
2-2 vacancy shall submit the list as expeditiously as possible but not
2-3 later than the 30th day after the date on which the vacancy occurs.
2-4 If the governor is the appointing official and rejects all names on
2-5 the list, a new list must be submitted not later than the 30th day
2-6 after the date of the rejection.
2-7 SECTION 1.02. Subsection (b), Section 1.06, Chapter 304,
2-8 Acts of the 72nd Legislature, Regular Session, 1991 (Article
2-9 6252-9d.1, Vernon's Texas Civil Statutes), is amended to read as
2-10 follows:
2-11 (b) A vacancy on the commission shall be excluded when <may
2-12 not be considered in> determining the membership of the commission
2-13 for the purpose of a quorum. However, if there is a vacancy on the
2-14 commission, a vote of the commission is not effective unless at
2-15 least one member who votes with the majority is from a different
2-16 political party than at least one other member who votes with the
2-17 majority.
2-18 SECTION 1.03. Section 1.11, Chapter 304, Acts of the 72nd
2-19 Legislature, Regular Session, 1991 (Article 6252-9d.1, Vernon's
2-20 Texas Civil Statutes), is amended by amending Subsection (b) and
2-21 adding Subsection (g) to read as follows:
2-22 (b) The commission may:
2-23 (1) issue subpoenas to compel the attendance of
2-24 witnesses and the production of documents under Section 1.14 of
2-25 this article;
2-26 (2) hold hearings, on its own motion <adopted by a
2-27 record vote of at least six commission members> or on a sworn
2-28 complaint, and render decisions on complaints or reports of
2-29 violations as provided by this article;
2-30 (3) agree to the settlement of issues;
2-31 (4) on motion adopted by a record vote <of at least
2-32 six commission members>, initiate civil enforcement actions and
2-33 refer matters to the appropriate prosecuting attorney for criminal
2-34 prosecution;
2-35 (5) disseminate, through pamphlets and seminars,
2-36 explanations and compliance guidelines concerning any law
2-37 administered and enforced by the commission;
2-38 (6) develop computer software to facilitate the
2-39 discharge of statutory duties of the commission;
2-40 (7) contract with persons and agencies to administer
2-41 and carry out this article and rules, standards, and orders adopted
2-42 under this article, but excluding any enforcement authority;
2-43 (8) accept gifts, grants, and donations for the
2-44 administration of its duties; and
2-45 (9) adopt rules to administer this article or any law
2-46 administered and enforced by the commission, including rules that
2-47 define terms used in this article or those laws <provided that a
2-48 rule must be adopted on the affirmative vote of at least six
2-49 members of the commission>.
2-50 (g) The commission by rule shall provide a method for a
2-51 person to verify or swear to a statement, registration, or report
2-52 filed with the commission by electronic data transmittal processes.
2-53 SECTION 1.04. Subsection (b), Section 1.13, Chapter 304,
2-54 Acts of the 72nd Legislature, Regular Session, 1991 (Article
2-55 6252-9d.1, Vernon's Texas Civil Statutes), is amended to read as
2-56 follows:
2-57 (b) The commission may <by record vote of at least six
2-58 commission members> perform a complete audit only at an informal
2-59 and formal hearing.
2-60 SECTION 1.05. Section 1.14, Chapter 304, Acts of the 72nd
2-61 Legislature, Regular Session, 1991 (Article 6252-9d.1, Vernon's
2-62 Texas Civil Statutes), is amended to read as follows:
2-63 Sec. 1.14. Subpoenas. In connection with an informal
2-64 hearing or a formal hearing, the commission may subpoena and
2-65 examine witnesses and documents as authorized by this article that
2-66 directly relate to a sworn complaint. A copy of a subpoena of the
2-67 commission must be delivered to the respondent. At the written
2-68 request of <at least six members of> the commission, a peace
2-69 officer shall serve a subpoena of the commission in the manner
2-70 prescribed for service of a district court subpoena. If a person
3-1 to whom a subpoena is directed refuses to appear, refuses to answer
3-2 inquiries, or fails or refuses to produce books, records, or other
3-3 documents that were under the person's control when the demand was
3-4 made, the commission shall report that fact to a district court in
3-5 Travis County. The district court shall enforce the subpoena by
3-6 attachment proceedings for contempt in the same manner as the court
3-7 enforces a subpoena issued by the court. A respondent has the
3-8 right to quash a subpoena as provided by law. A subpoenaed witness
3-9 who attends a commission hearing is entitled to the same mileage
3-10 and per diem as a witness who appears before a grand jury.
3-11 SECTION 1.06. Subsection (a), Section 1.17, Chapter 304,
3-12 Acts of the 72nd Legislature, Regular Session, 1991 (Article
3-13 6252-9d.1, Vernon's Texas Civil Statutes), is amended to read as
3-14 follows:
3-15 (a) By a record vote <of at least six members>, the
3-16 commission, without a sworn complaint, may initiate a preliminary
3-17 review of the matter that is the subject of the motion.
3-18 SECTION 1.07. Section 1.21, Chapter 304, Acts of the 72nd
3-19 Legislature, Regular Session, 1991 (Article 6252-9d.1, Vernon's
3-20 Texas Civil Statutes), is amended to read as follows:
3-21 Sec. 1.21. Confidentiality; offense. (a) Except as
3-22 provided by Subsection (c) of this section, proceedings at a
3-23 preliminary review or informal hearing performed by the commission,
3-24 a sworn complaint, and documents relating to and any additional
3-25 evidence relating to the processing, preliminary review, informal
3-26 hearing, or resolution of a sworn complaint or motion <are
3-27 confidential and> may not be disclosed by the commission or a
3-28 person employed by the commission unless entered into the record of
3-29 a formal hearing or a judicial proceeding, except that a document
3-30 or statement that was previously public information remains public
3-31 information.
3-32 (b) Except as provided by Subsection (c) of this section,
3-33 the open records law, Chapter 424, Acts of the 63rd Legislature,
3-34 Regular Session, 1973 (Article 6252-17a, Vernon's Texas Civil
3-35 Statutes), does not apply to documents or any additional evidence
3-36 relating to the processing, preliminary review, informal hearing,
3-37 or resolution of sworn complaints or motions. The open meetings
3-38 law, Chapter 271, Acts of the 60th Legislature, Regular Session,
3-39 1967 (Article 6252-17, Vernon's Texas Civil Statutes), does not
3-40 apply to the processing, preliminary review, informal hearing, or
3-41 resolution of sworn complaints or motions.
3-42 (c) An order issued by the commission after the completion
3-43 of a preliminary review or an informal hearing determining that a
3-44 violation <other than a technical violation or de minimis> has
3-45 occurred is not confidential.
3-46 (d) A person commits an offense if the person discloses
3-47 information made confidential by this section. An offense under
3-48 this subsection is a Class A misdemeanor.
3-49 (e) In addition to other penalties, a person who <files a
3-50 frivolous complaint or> discloses information in violation of <made
3-51 confidential by> this section is civilly liable to the respondent
3-52 in an amount equal to the greater of $10,000 or the amount of
3-53 actual damages incurred by the respondent, including court costs
3-54 and attorney fees.
3-55 SECTION 1.08. Subsection (a), Section 1.23, Chapter 304,
3-56 Acts of the 72nd Legislature, Regular Session, 1991 (Article
3-57 6252-9d.1, Vernon's Texas Civil Statutes), is amended to read as
3-58 follows:
3-59 (a) Not later than the 30th business day after the date the
3-60 formal hearing is completed, the commission by a motion adopted by
3-61 record vote <of at least six members, if the final decision is that
3-62 a violation has occurred, or by five members if the final decision
3-63 is that a violation has not occurred> shall issue:
3-64 (1) a final decision stating the resolution of the
3-65 formal hearing; and
3-66 (2) a written report stating in detail the
3-67 commission's findings of fact, conclusions of law, and
3-68 recommendation of criminal referral or imposition of civil penalty,
3-69 if any.
3-70 SECTION 1.09. Subsection (a), Section 1.28, Chapter 304,
4-1 Acts of the 72nd Legislature, Regular Session, 1991 (Article
4-2 6252-9d.1, Vernon's Texas Civil Statutes), is amended to read as
4-3 follows:
4-4 (a) The commission may:
4-5 (1) impose a civil penalty of not more than $10,000
4-6 <$5,000>, or triple the amount at issue under a law administered
4-7 and enforced by the commission, whichever amount is greater, for a
4-8 delay in complying with a commission order or for a violation of a
4-9 law administered and enforced by the commission;
4-10 (2) impose a civil penalty of not more than $10,000
4-11 for the filing of a frivolous or bad-faith complaint;
4-12 (3) following a criminal conviction for an offense
4-13 under Chapter 36, Penal Code, or Chapter 305, Government Code,
4-14 deny, suspend, or revoke the registration of a person required to
4-15 be registered under Chapter 305, Government Code;
4-16 (4) notify the appropriate regulatory or supervisory
4-17 entity, including any agency, the State Commission on Judicial
4-18 Conduct, the senate, the house of representatives, or the State Bar
4-19 of Texas, of a violation of a law administered and enforced by the
4-20 commission;
4-21 (5) issue and enforce cease and desist orders to stop
4-22 violations; and
4-23 (6) issue affirmative orders to require compliance
4-24 with the laws administered and enforced by the commission.
4-25 SECTION 1.10. Subsection (a), Section 1.31, 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
4-28 follows:
4-29 (a) A member of the commission who is the subject of a
4-30 formal investigation by the commission, of a sworn complaint filed
4-31 with the commission or a motion, or of a motion <by record vote of
4-32 at least six members> of the commission may not participate in
4-33 commission proceedings relating to the investigation, complaint, or
4-34 motion.
4-35 SECTION 1.11. Section 1.26, Chapter 304, Acts of the 72nd
4-36 Legislature, Regular Session, 1991 (Article 6252-9d.1, Vernon's
4-37 Texas Civil Statutes), is repealed.
4-38 ARTICLE 2
4-39 SECTION 2.01. Subsection (e), Section 305.0011, Government
4-40 Code, is amended to read as follows:
4-41 (e) The commission may adopt rules for the implementation of
4-42 this section consistent with this chapter, the Texas Disciplinary
4-43 Rules of Professional Conduct <Code of Professional
4-44 Responsibility>, and the common law of agency.
4-45 SECTION 2.02. Section 305.003, Government Code, is amended
4-46 to read as follows:
4-47 Sec. 305.003. PERSONS REQUIRED TO REGISTER. (a) A person
4-48 must register with the commission under this chapter if the person:
4-49 (1) makes a total expenditure of an amount determined
4-50 by commission rule but not less than $500 <$200> in a calendar
4-51 quarter, not including the person's own travel, food, or lodging
4-52 expenses or the person's own membership dues, on activities
4-53 described in Section 305.006(b) to communicate directly with one or
4-54 more members of the legislative or executive branch to influence
4-55 legislation or administrative action; and <or>
4-56 (2) receives compensation or reimbursement, not
4-57 including reimbursement for the person's own travel, food, or
4-58 lodging expenses or the person's own membership dues, of more than
4-59 an amount determined by commission rule but not less than $500
4-60 <$200> in a calendar quarter from another person to communicate
4-61 directly with a member of the legislative or executive branch to
4-62 influence legislation or administrative action.
4-63 (b) Notwithstanding Subsection (a), a person must register
4-64 with the commission under this chapter if the person receives
4-65 compensation or reimbursement, not including reimbursement for the
4-66 person's own travel, food, or lodging expenses or the person's own
4-67 membership dues, of more than $7,500 in a calendar quarter from
4-68 another person to communicate directly with a member of the
4-69 legislative or executive branch to influence legislation or
4-70 administrative action.
5-1 (c) Subsection (a)(2) requires a person to register if the
5-2 person, as part of his regular employment, has communicated
5-3 directly with a member of the legislative or executive branch to
5-4 influence legislation or administrative action on behalf of the
5-5 person by whom he is compensated or reimbursed, whether or not the
5-6 person receives any compensation for the communication in addition
5-7 to the salary for that regular employment. However, Subsection
5-8 (a)(2) does not require a member of the judicial, legislative, or
5-9 executive branch of state government or an officer or employee of a
5-10 political subdivision of the state to register.
5-11 <(c) A person who communicates directly with a member of the
5-12 executive branch to influence administrative action is not required
5-13 to register under Subsection (a)(2) if the person is an attorney of
5-14 record or pro se, the person enters his appearance in a public
5-15 record through pleadings or other written documents in a docketed
5-16 case pending before a state agency, and that communication is the
5-17 only activity that would otherwise require the person to register.>
5-18 SECTION 2.03. Subchapter A, Chapter 305, Government Code, is
5-19 amended by adding Section 305.0031 to read as follows:
5-20 Sec. 305.0031. FILING BY PERSONS NOT REQUIRED TO REGISTER.
5-21 (a) A person shall file a form with the commission if the person:
5-22 (1) receives any compensation or reimbursement, not
5-23 including reimbursement for the person's own travel, food, or
5-24 lodging expenses or the person's own membership dues, to
5-25 communicate directly with a member of the legislative or executive
5-26 branch to influence legislation or administrative action;
5-27 (2) is not required to register under Section 305.003;
5-28 (3) is not excepted from registration under Section
5-29 305.004;
5-30 (4) is not required by commission rule to file
5-31 information under Section 305.0051; and
5-32 (5) is not a member of the legislative branch.
5-33 (b) The form must be filed not later than the fifth day
5-34 after the date on which the person makes the first direct
5-35 communication with a member of the legislative or executive branch
5-36 to influence legislation or administrative action.
5-37 (c) The form must contain the filer's full name, address,
5-38 and telephone number and the name and address of each person who
5-39 compensates or reimburses the person to communicate directly with a
5-40 member of the legislative or executive branch to influence
5-41 legislation or administrative action.
5-42 SECTION 2.04. Section 305.004, Government Code, is amended
5-43 to read as follows:
5-44 Sec. 305.004. Exceptions. The following persons are not
5-45 required to register under this chapter:
5-46 (1) a person who owns, publishes, or is employed by a
5-47 newspaper, any other regularly published periodical, a radio
5-48 station, a television station, a wire service, or any other bona
5-49 fide news medium that in the ordinary course of business
5-50 disseminates news, letters to the editors, editorial or other
5-51 comment, or paid advertisements that directly or indirectly oppose
5-52 or promote legislation or administrative action, if the person does
5-53 not engage in further or other activities that require registration
5-54 under this chapter and does not represent another person in
5-55 connection with influencing legislation or administrative action;
5-56 (2) a person whose only direct communication with a
5-57 member of the legislative or executive branch to influence
5-58 legislation or administrative action is an appearance before or
5-59 testimony to one or more members of the legislative or executive
5-60 branch in a hearing conducted by or on behalf of either the
5-61 legislative or the executive branch and who does not receive
5-62 <special or extra> compensation for the appearance other than
5-63 compensation for the person's regular occupational duties and
5-64 actual expenses incurred in attending the hearing;
5-65 (3) a person whose only activity is to encourage or
5-66 solicit members, employees, or stockholders of an entity by whom
5-67 the person is reimbursed, employed, or retained to communicate
5-68 directly with members of the legislative or executive branch to
5-69 influence legislation or administrative action;
5-70 (4) a person whose only activity to influence
6-1 legislation or administrative action is to compensate or reimburse
6-2 an individual registrant to act in the person's behalf to
6-3 communicate directly with a member of the legislative or executive
6-4 branch to influence legislation or administrative action;
6-5 (5) a person whose only activity to influence
6-6 legislation or administrative action is attendance at a meeting or
6-7 entertainment event attended by a member of the legislative or
6-8 executive branch if the total cost of the meeting or entertainment
6-9 event is paid by a business entity, union, or association;
6-10 (6) a person whose only compensation subject to
6-11 Section 305.003(a)(2) consists of reimbursement for any wages not
6-12 earned due to attendance at a meeting or entertainment event,
6-13 travel to and from the meeting or entertainment event, admission to
6-14 the meeting or entertainment event, and any food and beverage
6-15 consumed at the meeting or entertainment event if the meeting or
6-16 entertainment event is attended by a member of the legislative or
6-17 executive branch and if the total cost of the meeting or
6-18 entertainment event is paid by a business entity, union, or
6-19 association; and
6-20 (7) a person who communicates directly with a member
6-21 of the legislative or executive branch on behalf of a political
6-22 party concerning legislation or administrative action, and whose
6-23 expenditures and compensation, as described in Section 305.003,
6-24 combined do not exceed $5,000 a calendar year.
6-25 SECTION 2.05. Subchapter A, Chapter 305, Government Code, is
6-26 amended by adding Section 305.0041 to read as follows:
6-27 Sec. 305.0041. REGISTRATION EXCEPTION FOR CERTAIN ENTITIES.
6-28 A corporation, association, firm, partnership, committee, club,
6-29 organization, or group of persons voluntarily acting in concert is
6-30 not required to register under this chapter if a registrant whom
6-31 the entity reimburses, retains, or employs reports expenditures
6-32 attributable to the entity that are required to be reported under
6-33 Section 305.006. A registrant who is present at the time of an
6-34 expenditure by the entity in order to satisfy the presence
6-35 requirements of Section 305.024(a)(7) shall report those
6-36 expenditures on behalf of the entity.
6-37 SECTION 2.06. Subsections (c) and (f), Section 305.005,
6-38 Government Code, are amended to read as follows:
6-39 (c) The registration fee and registration renewal fee are:
6-40 (1) $100 for a registrant employed by an organization
6-41 or organizations exempt from federal income tax under Section
6-42 501(c)(3) or 501(c)(4), Internal Revenue Code of 1986, and not
6-43 employed by any other person or type of organization for purposes
6-44 regulated under this chapter; or
6-45 (2) $500 <$300> for any other registrant.
6-46 (f) The registration must be written and verified and must
6-47 contain:
6-48 (1) the registrant's full name and address;
6-49 (2) the registrant's normal business, business phone
6-50 number, and business address;
6-51 (3) the full name and address of each person:
6-52 (A) who reimburses, retains, or employs the
6-53 registrant to communicate directly with a member of the legislative
6-54 or executive branch to influence legislation or administrative
6-55 action; and
6-56 (B) on whose behalf the registrant has
6-57 communicated directly with a member of the legislative or executive
6-58 branch to influence legislation or administrative action;
6-59 (4) the subject matter and, if applicable, the bill
6-60 number, docket number, or other legislative or administrative
6-61 designation of the legislation or administrative action that is the
6-62 subject of the registrant's direct communication with a member of
6-63 the legislative or executive branch;
6-64 (5) for each person employed or retained by the
6-65 registrant for the purpose of assisting in direct communication
6-66 with a member of the legislative or executive branch to influence
6-67 legislation or administrative action:
6-68 (A) the full name, business address, occupation,
6-69 and date of employment or retention of the person by the
6-70 registrant; and
7-1 (B) the subject matter and, if applicable, the
7-2 bill number, docket number, or other administrative designation of
7-3 the legislation or administrative action to which the person's
7-4 activities reportable under this section were related; and
7-5 (6) the amount of compensation or reimbursement paid
7-6 by each person who reimburses, retains, or employs the registrant
7-7 for the purpose of communicating directly with a member of the
7-8 legislative or executive branch or on whose behalf the registrant
7-9 communicates directly with a member of the legislative or executive
7-10 branch, except that if the registrant will be paid a specific
7-11 amount for the direct communication by that person under a contract
7-12 or other legally enforceable agreement, the registrant shall report
7-13 that amount instead and shall indicate the period of time covered
7-14 by the contract or other agreement.
7-15 SECTION 2.07. Section 305.006, Government Code, is amended
7-16 by adding Subsection (g) to read as follows:
7-17 (g) A registrant is not required to report under this
7-18 chapter an expenditure for the registrant's own transportation or
7-19 lodging expenses made to communicate directly with a member of the
7-20 legislative or executive branch if the registrant makes no
7-21 expenditures in connection with that occasion for the member's
7-22 transportation or lodging expenses.
7-23 SECTION 2.08. Subsection (a), Section 305.0062, Government
7-24 Code, is amended to read as follows:
7-25 (a) The report filed under Section 305.006 must also contain
7-26 the total expenditures described by Section 305.006(b) that are
7-27 directly attributable to persons in the following categories
7-28 <members of the legislative or executive branch and those that are
7-29 directly attributable to the registrant>. The expenditures must be
7-30 stated in only one of the following categories:
7-31 (1) state senators;
7-32 (2) state representatives;
7-33 (3) elected or appointed state officers, other than
7-34 those described by Subdivision (1) or (2);
7-35 (4) legislative agency employees;
7-36 (5) executive agency employees;
7-37 (6) the immediate family of a member of the
7-38 legislative or executive branch;
7-39 (7) the registrant; or <and>
7-40 (8) events to which all legislators are invited.
7-41 SECTION 2.09. Subchapter A, Chapter 305, Government Code, is
7-42 amended by adding Section 305.0064 to read as follows:
7-43 Sec. 305.0064. AMENDMENT OF SUBSTANTIALLY COMPLETE AND
7-44 CORRECT DOCUMENT. A person required to file a registration,
7-45 report, or other disclosure document under this chapter may, in the
7-46 commission's discretion, amend the document within a reasonable
7-47 time without incurring a penalty if the document originally filed
7-48 was substantially complete and correct and not misleading.
7-49 SECTION 2.10. Section 305.007, Government Code, is amended
7-50 by amending Subsection (a) and adding Subsections (c) and (d) to
7-51 read as follows:
7-52 (a) Except as otherwise provided by this section, the <The>
7-53 registrant must file the report required by Section 305.006 between
7-54 the 1st and 10th day of each month. The report must cover the
7-55 activities occurring during the previous month.
7-56 (c) A registrant may elect to report an expenditure on the
7-57 report that covers the reporting period in which:
7-58 (1) the expenditure is made; or
7-59 (2) the bill for the expenditure is received, if the
7-60 character of the expenditure is such that under normal business
7-61 practice the amount of the expenditure is not disclosed until the
7-62 bill is received.
7-63 (d) A registrant may elect to report under Subsection (c)(2)
7-64 only if the registrant reports a reasonable estimate of the amount
7-65 of the expenditure on the report that covers the reporting period
7-66 in which the expenditure is made.
7-67 SECTION 2.11. Subchapter A, Chapter 305, Government Code, is
7-68 amended by adding Section 305.012 to read as follows:
7-69 Sec. 305.012. AFFIDAVIT. (a) Each registration, report, or
7-70 termination notice filed under this chapter must be accompanied by
8-1 an affidavit executed by the person required to file the
8-2 registration, report, or termination notice.
8-3 (b) The affidavit must contain the statement: "I swear, or
8-4 affirm, that the accompanying document is true and correct to the
8-5 best of my knowledge and includes all information required to be
8-6 reported by me under Chapter 305, Government Code."
8-7 SECTION 2.12. Subchapter A, Chapter 305, Government Code, is
8-8 amended by adding Section 305.013 to read as follows:
8-9 Sec. 305.013. ETHICS TRAINING. (a) The commission shall
8-10 adopt a curriculum for training programs concerning compliance with
8-11 the laws administered and enforced by the commission for persons
8-12 required to register under this chapter.
8-13 (b) The commission by rule may require persons required to
8-14 register under this chapter to complete training under the
8-15 curriculum adopted under Subsection (a).
8-16 SECTION 2.13. Section 305.025, Government Code, is amended
8-17 to read as follows:
8-18 Sec. 305.025. EXCEPTIONS. Section 305.024 does not
8-19 prohibit:
8-20 (1) a loan in the due course of business from a
8-21 corporation or other business entity that is legally engaged in the
8-22 business of lending money and that has conducted that business
8-23 continuously for more than one year before the loan is made;
8-24 (2) a loan or guarantee of a loan or a gift made or
8-25 given by a person related within the second degree by affinity or
8-26 consanguinity to the member of the legislative or executive branch;
8-27 (3) necessary expenditures for transportation and
8-28 lodging when the purpose of the travel is to explore matters
8-29 directly related to the duties of a member of the legislative or
8-30 executive branch, such as fact-finding trips, but not including
8-31 attendance at merely ceremonial events or pleasure trips;
8-32 (4) necessary expenditures for transportation and
8-33 lodging provided in connection with a conference or similar event
8-34 in which the member renders services, such as addressing an
8-35 audience or engaging in a seminar, to the extent that those
8-36 services are more than merely perfunctory; <or>
8-37 (5) expenditures for transportation or lodging for a
8-38 member of the legislative or executive branch, or for an immediate
8-39 family member's transportation and lodging, that are reimbursed by
8-40 the member of the legislative or executive branch; or
8-41 (6) a political contribution as defined by Section
8-42 251.001, Election Code.
8-43 SECTION 2.14. Subsection (a), Section 305.027, Government
8-44 Code, is amended to read as follows:
8-45 (a) A person commits an offense if the person knowingly
8-46 enters into a contract or other agreement to print, publish, or
8-47 broadcast legislative advertising that does not indicate in the
8-48 advertising:
8-49 (1) that it is legislative advertising;
8-50 (2) the full name of the individual who personally
8-51 entered into the contract or agreement with the printer, publisher,
8-52 or broadcaster and the name of the person, if any, that the
8-53 individual represents; <and>
8-54 (3) in the case of advertising that is printed or
8-55 published, the address of the individual who personally entered
8-56 into the agreement with the printer or publisher and the address of
8-57 the person, if any, that the individual represents; and
8-58 (4) the name of the person who will ultimately pay for
8-59 the legislative advertising if different than the name of the
8-60 individual who personally entered into the contract or agreement.
8-61 SECTION 2.15. Subsection (a), Section 305.031, Government
8-62 Code, is amended to read as follows:
8-63 (a) A person commits an offense if the person intentionally
8-64 or knowingly violates a provision of this chapter other than
8-65 Section 305.0011 or Section 305.022. An offense under this
8-66 subsection is a Class A misdemeanor.
8-67 SECTION 2.16. Subsection (a), Section 305.033, Government
8-68 Code, is amended to read as follows:
8-69 (a) The commission shall determine from any available
8-70 evidence whether a registration or report required to be filed with
9-1 the commission under this chapter is late. A registration filed
9-2 without the fee required by Section 305.005 is considered to be
9-3 late. On making a determination that a required registration or
9-4 report is late, the commission shall immediately mail a notice of
9-5 the determination to the person responsible for the filing<, to the
9-6 commission,> and to the appropriate attorney for the state.
9-7 SECTION 2.17. The change in law made by this article to the
9-8 information required to be included in a report filed under Chapter
9-9 305, Government Code, applies only to a report filed on or after
9-10 October 1, 1993.
9-11 SECTION 2.18. The change in law made by Section 2.14 of this
9-12 Act applies only to a contract or other agreement entered into on
9-13 or after September 1, 1993. An offense committed before that date
9-14 is covered by the law in effect on the date the offense occurred,
9-15 and that law is continued in effect for this purpose.
9-16 SECTION 2.19. Chapter 12, Acts of the 55th Legislature, 1st
9-17 Called Session, 1957 (Article 6252-23, Vernon's Texas Civil
9-18 Statutes), is amended to read as follows:
9-19 Sec. 1. Definitions. In this Act, unless the context
9-20 otherwise requires:
9-21 (1) "State <(a) "state> agency" means any office,
9-22 department, commission, or board of the executive department of
9-23 government.
9-24 (2) "Person"<;>
9-25 <(b) "person"> means any individual, including a member of
9-26 the Legislature, legislative employee, state officer, or state
9-27 employee.
9-28 (3) "Commission" means the Texas Ethics Commission.
9-29 Sec. 2. Registration. (a) Except as herein provided, every
9-30 person appearing before a state agency or contacting in person any
9-31 officer or employee thereof on behalf of any other person, firm,
9-32 partnership, corporation, or association in relation to any case,
9-33 proceeding, application, or other matter before such agency, shall
9-34 register in an appropriate record, which shall be maintained by the
9-35 agency for such purpose, the following information:
9-36 (1) <(a)> the name and address of the registrant;
9-37 (2) <(b)> the name and address of the person, firm,
9-38 partnership, corporation, or association on whose behalf the
9-39 appearance or contact is made; and
9-40 (3) <(c)> a statement as to whether or not the
9-41 registrant has received or expects to receive any money, thing of
9-42 value, or financial benefit in return for the services rendered in
9-43 making the appearance or contact.
9-44 (b) This Act shall not apply to:
9-45 (1) officers or employees of a state agency when
9-46 appearing before or contacting officers or employees of another
9-47 state agency on official inter-agency matters; or
9-48 (2) a member of the Legislature or legislative
9-49 employee when appearing before or contacting officers or employees
9-50 of a state agency in the person's capacity as a member of the
9-51 Legislature or legislative employee.
9-52 Sec. 3. Reporting and filing of registrations. Each state
9-53 agency shall file a report with the commission <Secretary of State>
9-54 between the first and tenth of each <the> month <following the
9-55 close of each calendar quarter>. The report shall set forth the
9-56 names of persons registering with the agency during the preceding
9-57 month <quarter>, together with the detailed information specified
9-58 in Section 2 of this Act. Such reports, which shall be considered
9-59 public records of this state and open to public inspection, shall
9-60 be appropriately indexed and kept on file in the office of the
9-61 commission <Secretary of State> for a period of four <(4)> years
9-62 from the date of filing.
9-63 Sec. 3A. Persons not required to register. No person shall
9-64 be required to register if:
9-65 (1) <(a)> the contact with a state agency or its
9-66 officers or employees is solely for the purpose of obtaining
9-67 information, and no attempt is made to influence the action of any
9-68 officer or employee of such agency; or
9-69 (2) <(b) the contact consists in participating in a
9-70 public hearing, at which such person enters his appearance at such
10-1 hearing;>
10-2 <(c) the contact is made in connection with any matter where
10-3 pleadings or instruments disclosing such person's representation is
10-4 on file with the agency;>
10-5 <(d)> the contact is one for which such person receives no
10-6 fee, payment, compensation or any thing of value.
10-7 Sec. 4. Penalty. Any person who fails to register as
10-8 required by Section 2 of this Act shall be guilty of a misdemeanor,
10-9 and upon conviction thereof shall be subject to a fine not
10-10 exceeding Five Hundred Dollars ($500) or by imprisonment in the
10-11 county jail not exceeding six (6) months, or by both such fine and
10-12 imprisonment.
10-13 ARTICLE 3
10-14 SECTION 3.01. Subsection (a), Section 3, Chapter 421, Acts
10-15 of the 63rd Legislature, Regular Session, 1973 (Article 6252-9b,
10-16 Vernon's Texas Civil Statutes), is amended to read as follows:
10-17 (a) On or before April 30th of each year, every elected
10-18 <state> officer, salaried appointed officer, appointed officer of a
10-19 major state agency, executive head of a state agency, and <every>
10-20 party chairman shall file with the commission a financial statement
10-21 complying with the requirements of Section 4 of this Act.
10-22 SECTION 3.02. Subsection (c), Section 4, Chapter 421, Acts
10-23 of the 63rd Legislature, Regular Session, 1973 (Article 6252-9b,
10-24 Vernon's Texas Civil Statutes), is amended to read as follows:
10-25 (c) The account of financial activity referred to in
10-26 Subsection (a) of this section shall consist of:
10-27 (1) a list of all sources of occupational income,
10-28 identified by employer, or if self-employed, by the nature of the
10-29 occupation, including identification of any person, business
10-30 entity, or other organization from whom the person or a business in
10-31 which he has a substantial interest received a fee as a retainer
10-32 for a claim on future services in case of need (as opposed to a fee
10-33 for services on a matter specified at the time of contracting for
10-34 or receiving the fee), whenever professional or occupational
10-35 services were not actually performed during the reporting period
10-36 commensurate to or in excess of the amount of the retainer, and the
10-37 category of the amount of the fee;
10-38 (2) identification by name and category of number of
10-39 shares of stock of any business entity held or acquired, and if
10-40 sold the category of the amount of net gain or loss realized from
10-41 such sale;
10-42 (3) a list of all bonds, notes, and other commercial
10-43 paper held or acquired, and if sold the category of the amount of
10-44 net gain or loss realized from such sale;
10-45 (4) identification of each source and the category of
10-46 the amount of income in excess of $500 derived per source from
10-47 interest, dividends, royalties, and rents;
10-48 (5) identification of each guarantor of a loan and
10-49 identification of each person or financial institution to whom a
10-50 personal note or notes or lease agreement for a total financial
10-51 liability in excess of $1,000 existed at any time during the year,
10-52 and the category of the amount of the liability;
10-53 (6) identification by description of all beneficial
10-54 interests in real property and business entities held or acquired,
10-55 and if sold the category of the amount of the net gain or loss
10-56 realized from such sale;
10-57 (7) identification of any person, business entity, or
10-58 other organization from whom the person or his spouse or dependent
10-59 children received a gift of anything of value in excess of $250 in
10-60 value and a description of each gift, except:
10-61 (A) gifts received from persons related to the
10-62 person at any time within the second degree of consanguinity or
10-63 affinity, as determined under Article 5996h, Revised Statutes;
10-64 (B) political contributions that were reported
10-65 as required by law; and
10-66 (C) expenditures required to be reported by a
10-67 person required to be registered under Chapter 305, Government
10-68 Code;
10-69 (8) identification of the source and the category of
10-70 the amount of all income received as beneficiary of a trust and
11-1 identification of each asset, if known to the beneficiary, from
11-2 which income was received by the beneficiary in excess of $500;
11-3 (9) identification by description and category of the
11-4 amount of all assets and liabilities of any corporation or
11-5 partnership in which 50 percent or more of the outstanding
11-6 ownership was held, acquired, or sold;
11-7 (10) a list of all boards of directors of which the
11-8 person is a member and executive positions which the person holds
11-9 in corporations, firms, partnerships, and proprietorships, stating
11-10 the name of each corporation, firm, partnership, or proprietorship
11-11 and the position held;
11-12 (11) identification of any person providing
11-13 transportation, meals, or lodging expenses permitted under Section
11-14 36.07(b), Penal Code, and the amount of those expenses, other than
11-15 expenditures required to be reported under Chapter 305, Government
11-16 Code; and
11-17 (12) any partnership, joint venture, or other business
11-18 association, excluding a publicly held or traded business entity
11-19 <corporation>, in which both the state officer and a person
11-20 registered under Chapter 305, Government Code, have an interest.
11-21 SECTION 3.03. Section 7C, Chapter 421, Acts of the 63rd
11-22 Legislature, Regular Session, 1973 (Article 6252-9b, Vernon's Texas
11-23 Civil Statutes), is amended to read as follows:
11-24 Sec. 7C. Contracts with governmental entities. (a) A state
11-25 officer may not solicit or accept <from the state, a political
11-26 subdivision of the state, or a governmental entity created under
11-27 the constitution or laws of the state> a commission, fee, bonus,
11-28 retainer, or rebate that is compensation for the officer's personal
11-29 solicitation for the award of a contract for services or sale of
11-30 goods to the state, a political subdivision of the state, or a
11-31 governmental entity created under the constitution or laws of the
11-32 state.
11-33 (b) This section does not apply to:
11-34 (1)<, excluding> contracts that are awarded by
11-35 competitive bid as provided by law and that are not otherwise
11-36 prohibited by law; and
11-37 (2) all court appointments.
11-38 (c) <(b)> A state officer who violates this section commits
11-39 an offense. An offense under this section is a Class A
11-40 misdemeanor.
11-41 SECTION 3.04. Chapter 421, Acts of the 63rd Legislature,
11-42 Regular Session, 1973 (Article 6252-9b, Vernon's Texas Civil
11-43 Statutes), is amended by adding Section 12C to read as follows:
11-44 Sec. 12C. AMENDMENT OF SUBSTANTIALLY COMPLETE AND CORRECT
11-45 DOCUMENT. A person required to file a financial statement or other
11-46 disclosure document under this Act may, in the commission's
11-47 discretion, amend the document within a reasonable time without
11-48 incurring a penalty if the document originally filed was
11-49 substantially complete and correct and not misleading.
11-50 ARTICLE 4
11-51 SECTION 4.01. Subdivision (5), Section 36.01, Penal Code, is
11-52 amended to read as follows:
11-53 (5) "Benefit" means anything reasonably regarded as
11-54 pecuniary gain or pecuniary advantage, and includes a <including>
11-55 benefit to any other person in whose welfare the beneficiary has a
11-56 direct and substantial interest, but does not include food and
11-57 beverage with a combined value of less than $50 for each occasion.
11-58 SECTION 4.02. Subsections (a) and (d), Section 36.02, Penal
11-59 Code, are amended to read as follows:
11-60 (a) A person commits an offense if he intentionally or
11-61 knowingly offers, confers, or agrees to confer on another, or
11-62 solicits, accepts, or agrees to accept from another:
11-63 (1) any benefit as consideration for the recipient's
11-64 decision, opinion, recommendation, vote, or other exercise of
11-65 discretion as a public servant, party official, or voter;
11-66 (2) any benefit as consideration for the recipient's
11-67 decision, vote, recommendation, or other exercise of official
11-68 discretion in a judicial or administrative proceeding;
11-69 (3) any benefit as consideration for a violation of a
11-70 duty imposed by law on a public servant or party official; or
12-1 (4) any benefit that is a political contribution as
12-2 defined by Title 15, Election Code, or that is an expenditure
12-3 required to be reported under Chapter 305, Government Code, if the
12-4 benefit was offered, conferred, solicited, accepted, or agreed to
12-5 pursuant to an express agreement to take or withhold a specific
12-6 exercise of official discretion if such exercise of official
12-7 discretion would not have been taken or withheld but for the
12-8 benefit; notwithstanding any rule of evidence or jury instruction
12-9 allowing factual inferences in the absence of certain evidence,
12-10 direct evidence of the express agreement shall be required in any
12-11 prosecution under this subdivision.
12-12 (d) It is an exception to the application of Subdivisions
12-13 (1), (2), and (3) of Subsection (a) of this section that the
12-14 benefit is a political contribution <accepted> as defined by Title
12-15 15, Election Code, or an expenditure required to be reported under
12-16 Chapter 305, Government Code.
12-17 SECTION 4.03. Subsection (b), Section 36.07, Penal Code, is
12-18 amended to read as follows:
12-19 (b) This section does not prohibit a public servant from
12-20 accepting transportation and lodging expenses <permitted under
12-21 Section 305.025(b)(2), Government Code,> in connection with a
12-22 conference or similar event in which the public servant renders
12-23 services, such as addressing an audience or engaging in a seminar,
12-24 to the extent that those services are more than merely perfunctory,
12-25 or from accepting meals in connection with such an event.
12-26 SECTION 4.04. Section 36.08, Penal Code, is amended by
12-27 adding Subsection (i) to read as follows:
12-28 (i) A public servant who receives an unsolicited benefit
12-29 that the public servant is prohibited from accepting under this
12-30 section may donate the benefit to a governmental entity that has
12-31 the authority to accept the gift or may donate the benefit to a
12-32 recognized tax-exempt charitable organization formed for
12-33 educational, religious, or scientific purposes.
12-34 SECTION 4.05. Subsection (a), Section 36.10, Penal Code, is
12-35 amended to read as follows:
12-36 (a) Sections 36.08 (Gift to Public Servant) and 36.09
12-37 (Offering Gift to Public Servant) of this code do not apply to:
12-38 (1) a fee prescribed by law to be received by a public
12-39 servant or any other benefit to which the public servant is
12-40 lawfully entitled or for which he gives legitimate consideration in
12-41 a capacity other than as a public servant;
12-42 (2) a gift or other benefit conferred on account of
12-43 kinship or a personal, professional, or business relationship
12-44 independent of the official status of the recipient; or
12-45 (3) a benefit to a public servant required to file a
12-46 statement under Chapter 421, Acts of the 63rd Legislature, Regular
12-47 Session, 1973 (Article 6252-9b, Vernon's Texas Civil Statutes), or
12-48 a report under Title 15, Election Code, that is derived from a
12-49 function in honor or appreciation of the recipient if:
12-50 (A) the benefit and the source of any benefit in
12-51 excess of $50 is reported in the statement; and
12-52 (B) the benefit is used solely to defray the
12-53 expenses that accrue in the performance of duties or activities in
12-54 connection with the office which are nonreimbursable by the state
12-55 or political subdivision;
12-56 (4) a political contribution as defined by Title 15,
12-57 Election Code; <or>
12-58 (5) a gift, award, or memento to a member of the
12-59 legislative or executive branch that is required to be reported
12-60 under Chapter 305, Government Code; or
12-61 (6) an item with a value of less than $50, excluding
12-62 cash or a negotiable instrument as described by Section 3.104,
12-63 Business & Commerce Code, and its subsequent amendments.
12-64 SECTION 4.06. Section 39.01, Penal Code, is amended by
12-65 adding Subsection (d) to read as follows:
12-66 (d) A discount or award given for travel, such as frequent
12-67 flyer miles, rental car or hotel discounts, or food coupons, are
12-68 not things of value belonging to the government for purposes of
12-69 this section as long as the public servant engaging in the travel
12-70 complies with any laws, rules, or ordinances applicable to that
13-1 travel.
13-2 SECTION 4.07. (a) The change in law made by this article
13-3 applies only to an offense committed on or after the effective date
13-4 of this Act. For purposes of this section, an offense is committed
13-5 before the effective date of this Act if any element of the offense
13-6 occurs before the effective date.
13-7 (b) An offense committed before the effective date of this
13-8 Act is covered by the law in effect when the offense was committed,
13-9 and the former law is continued in effect for that purpose.
13-10 ARTICLE 5
13-11 SECTION 5.01. Subdivisions (4), (9), (12), and (14), Section
13-12 251.001, Election Code, are amended to read as follows:
13-13 (4) "Officeholder contribution" means a contribution
13-14 to an officeholder or political committee that is offered or given
13-15 with the intent that it be used to defray expenses that:
13-16 (A) are incurred by the officeholder in
13-17 performing a duty or engaging in an activity in connection with the
13-18 office; and
13-19 (B) are not actually reimbursed <reimbursable>
13-20 with public money.
13-21 (9) "Officeholder expenditure" means an expenditure
13-22 made by any person to defray expenses that:
13-23 (A) are incurred by an officeholder in
13-24 performing a duty or engaging in an activity in connection with the
13-25 office; and
13-26 (B) are not actually reimbursed <reimbursable>
13-27 with public money.
13-28 (12) "Political committee" means a group of persons
13-29 that has as a principal purpose accepting political contributions
13-30 or making political expenditures. The term does not include a
13-31 group of candidates or officeholders all of whom are otherwise
13-32 required to report under this title.
13-33 (14) "General-purpose committee" means a political
13-34 committee that has among its principal purposes:
13-35 (A) supporting or opposing:
13-36 (i) two or more candidates who are
13-37 unidentified or are seeking offices that are unknown; or
13-38 (ii) one or more issues <measures> that
13-39 are unidentified; or
13-40 (B) assisting two or more officeholders who are
13-41 unidentified.
13-42 SECTION 5.02. Section 251.003, Election Code, is amended to
13-43 read as follows:
13-44 Sec. 251.003. Prohibition of Document Filing Fee. Except as
13-45 provided by Section 251.009, a <A> charge may not be made for
13-46 filing a document required to be filed under this title.
13-47 SECTION 5.03. Subchapter A, Chapter 251, Election Code, is
13-48 amended by adding Sections 251.009 and 251.010 to read as follows:
13-49 Sec. 251.009. ANNUAL REGISTRATION FEE FOR CERTAIN POLITICAL
13-50 COMMITTEES. (a) A political committee that is required to file
13-51 its campaign treasurer appointment with the commission shall pay an
13-52 annual registration fee in an amount set by the commission.
13-53 (b) The commission shall adopt a schedule of registration
13-54 fees under this section. The fees may be computed on the basis of:
13-55 (1) whether a political committee is a general-purpose
13-56 committee or a specific-purpose committee;
13-57 (2) the amount of political contributions or political
13-58 expenditures accepted or made by a political committee;
13-59 (3) the number of contributors to a political
13-60 committee; or
13-61 (4) any other factor the commission considers
13-62 relevant.
13-63 (c) A registration fee under this section may not exceed:
13-64 (1) $50 for a political committee that accepts less
13-65 than $10,000 in political contributions in a calendar year or makes
13-66 less than $10,000 in political expenditures in a calendar year; or
13-67 (2) $150 for a political committee that accepts
13-68 $10,000 or more but $20,000 or less in political contributions in a
13-69 calendar year or makes $10,000 or more but $20,000 or less in
13-70 political expenditures in a calendar year.
14-1 (d) The commission shall adopt rules providing for the
14-2 payment of an additional fee by a political committee that has
14-3 accepted political contributions or made political expenditures
14-4 that exceed $20,000 in a calendar year.
14-5 (e) This section does not apply to a specific-purpose
14-6 committee that is not required to appoint a campaign treasurer or
14-7 file reports under Section 254.1811. The commission shall adopt
14-8 rules providing for payment of a registration fee by a
14-9 specific-purpose committee that becomes subject to Subchapter E,
14-10 Chapter 254, as provided by Section 254.183.
14-11 Sec. 251.010. PAYMENT OF REGISTRATION FEE. (a) The fee
14-12 imposed under Section 251.009 shall be paid not later than:
14-13 (1) July 15, if the political committee's campaign
14-14 treasurer appointment is filed on or before July 15 of the year for
14-15 which the fee is paid; or
14-16 (2) the date the political committee's campaign
14-17 treasurer appointment is filed, if the appointment is filed after
14-18 July 15 of the year for which the fee is paid.
14-19 (b) Fees received under this section shall be deposited to
14-20 the credit of the state ethics fund and may be used only for the
14-21 administration and enforcement of this title.
14-22 (c) Not later than the 15th day after the date by which a
14-23 fee is required to be paid under Subsection (a), the commission
14-24 shall deliver a written notice to the campaign treasurer of a
14-25 political committee that has not paid its fee. The notice must:
14-26 (1) be delivered by certified mail, return receipt
14-27 requested; and
14-28 (2) state that the commission will revoke the
14-29 committee's campaign treasurer appointment if the fee is not paid
14-30 before the 15th day after the date the notice is:
14-31 (A) received by the campaign treasurer; or
14-32 (B) returned to the commission as undeliverable
14-33 or unclaimed.
14-34 (d) The commission shall revoke the campaign treasurer
14-35 appointment of a political committee that has not paid its fee on
14-36 or before the 15th day after the date a notice under Subsection (c)
14-37 is received by a campaign treasurer or returned to the commission
14-38 as undeliverable or unclaimed. The commission immediately shall
14-39 deliver written notice of the revocation to the committee's
14-40 campaign treasurer by certified mail, return receipt requested.
14-41 SECTION 5.04. Section 252.001, Election Code, is amended to
14-42 read as follows:
14-43 Sec. 252.001. Appointment of Campaign Treasurer Required.
14-44 Except as provided by Section 254.1811, each <Each> candidate and
14-45 each political committee shall appoint a campaign treasurer as
14-46 provided by this chapter.
14-47 SECTION 5.05. Section 252.003, Election Code, is amended by
14-48 adding Subsection (e) to read as follows:
14-49 (e) For purposes of Subsection (d), a corporation, labor
14-50 organization, or other association or legal entity other than an
14-51 individual directly establishes, administers, or controls a
14-52 general-purpose committee if the entity:
14-53 (1) is entitled to actively participate in determining
14-54 to whom the committee makes political contributions or for what
14-55 purposes the committee makes political expenditures; and
14-56 (2) is entitled to designate a person to fill a
14-57 position of authority, including that of an officer or director, on
14-58 the committee.
14-59 SECTION 5.06. Chapter 252, Election Code, is amended by
14-60 adding Section 252.0131 to read as follows:
14-61 Sec. 252.0131. TERMINATION OF APPOINTMENT ON REVOCATION BY
14-62 COMMISSION. (a) The commission shall revoke the campaign
14-63 treasurer appointment of a political committee for failure to pay a
14-64 registration fee as provided by Section 251.010.
14-65 (b) A campaign treasurer appointment that is revoked by the
14-66 commission is terminated on the fifth day after the date the
14-67 commission delivers the notice of revocation.
14-68 SECTION 5.07. Section 253.031, Election Code, is amended to
14-69 read as follows:
14-70 Sec. 253.031. Contribution and Expenditure Without Campaign
15-1 Treasurer Prohibited. (a) A candidate may not knowingly accept a
15-2 campaign contribution or make or authorize a campaign expenditure
15-3 at a time when a campaign treasurer appointment for the candidate
15-4 is not in effect.
15-5 (b) A political committee may not knowingly accept a
15-6 political contribution or make or authorize a political expenditure
15-7 at a time when a campaign treasurer appointment for the committee
15-8 is not in effect.
15-9 (c) A political committee may not knowingly make or
15-10 authorize a campaign contribution or campaign expenditure
15-11 supporting or opposing a candidate for an office specified by
15-12 Section 252.005(1) in a primary or general election unless the
15-13 committee's campaign treasurer appointment has been filed not later
15-14 than the 30th day before the appropriate election day.
15-15 (d) This section does not apply to a political party's
15-16 county executive committee that accepts political contributions or
15-17 makes political expenditures, except that:
15-18 (1) a county executive committee that accepts
15-19 political contributions or makes political expenditures shall
15-20 maintain the records required by Section 254.001; and
15-21 (2) a county executive committee that accepts
15-22 political contributions or makes political expenditures that, in
15-23 the aggregate, exceed $5,000 in a calendar year shall file:
15-24 (A) a campaign treasurer appointment as required
15-25 by Section 252.001 not later than the 15th day after the date that
15-26 amount is exceeded; and
15-27 (B) the reports required by Subchapter F,
15-28 Chapter 254, including in the political committee's first report
15-29 all political contributions accepted and all political expenditures
15-30 made before the effective date of the campaign treasurer
15-31 appointment.
15-32 (e) This section does not apply to an out-of-state political
15-33 committee unless the committee is subject to Chapter 252 under
15-34 Section 251.005.
15-35 (f) This section does not apply to a political committee
15-36 that is not required to appoint a campaign treasurer under
15-37 Section 254.1811.
15-38 (g) A person who violates this section commits an offense.
15-39 An offense under this section is a Class A misdemeanor.
15-40 SECTION 5.08. Section 253.035, Election Code, is amended by
15-41 amending Subsection (d) and adding Subsections (j) and (k) to read
15-42 as follows:
15-43 (d) In this section, "personal use" means a use that
15-44 primarily furthers individual or family purposes not connected with
15-45 the performance of duties or activities as a candidate for or
15-46 holder of a public office. The term does not include:
15-47 (1) payments made to defray ordinary and necessary
15-48 expenses incurred in connection with activities as a candidate or
15-49 in connection with the performance of duties or activities as a
15-50 public officeholder, including payment of rent, utility, and other
15-51 reasonable housing or household expenses incurred in maintaining a
15-52 residence in Travis County by members of the legislature who do not
15-53 ordinarily reside in Travis County, but excluding payments
15-54 prohibited under Section 253.038; <or>
15-55 (2) payments of federal income taxes due on interest
15-56 and other income earned on political contributions; or
15-57 (3) the incidental use of an asset purchased, leased,
15-58 or otherwise acquired with political contributions if those
15-59 political contributions are reimbursed in an amount that reasonably
15-60 reflects the value of that use.
15-61 (j) A person may use political contributions to purchase,
15-62 lease, otherwise acquire, or maintain an asset for both political
15-63 and personal use if the political contributions are not used to
15-64 purchase, lease, otherwise acquire, or maintain that portion of the
15-65 asset that is attributable to personal use.
15-66 (k) An asset purchased with political contributions may not
15-67 be used for personal use that is more than incidental by the person
15-68 purchasing the asset, or by a person other than the person
15-69 purchasing the asset, unless those political contributions are
15-70 reimbursed in an amount that reasonably reflects the capital,
16-1 operating, and maintenance costs of the asset for that use.
16-2 SECTION 5.09. Subsection (a), Section 253.099, Election
16-3 Code, is amended to read as follows:
16-4 (a) A corporation or labor organization may make one or more
16-5 expenditures to finance nonpartisan voter registration and
16-6 get-out-the-vote campaigns aimed at the corporation's <its>
16-7 stockholders or the labor organization's members<, as applicable,>
16-8 or at the families of the corporation's <its> stockholders or the
16-9 labor organization's members.
16-10 SECTION 5.10. Subsections (a) and (b), Section 253.100,
16-11 Election Code, are amended to read as follows:
16-12 (a) A corporation, acting alone or with one or more other
16-13 corporations, may make one or more <political> expenditures to
16-14 finance the establishment or administration of a general-purpose
16-15 committee.
16-16 (b) A corporation may make <political> expenditures to
16-17 finance the solicitation of political contributions to a
16-18 general-purpose committee assisted under Subsection (a) from the
16-19 stockholders, employees, or families of stockholders or employees
16-20 of one or more corporations.
16-21 SECTION 5.11. Subchapter B, Chapter 254, Election Code, is
16-22 amended by adding Section 254.043 to read as follows:
16-23 Sec. 254.043. AMENDMENT OF SUBSTANTIALLY COMPLETE AND
16-24 CORRECT DOCUMENT. A person required to file a campaign treasurer
16-25 appointment, report, or other disclosure document under this title
16-26 may, in the commission's discretion, amend the document within a
16-27 reasonable time without incurring a penalty if the document
16-28 originally filed was substantially complete and correct and not
16-29 misleading.
16-30 SECTION 5.12. Subsection (a), Section 254.181, Election
16-31 Code, is amended to read as follows:
16-32 (a) An opposed candidate <or specific-purpose committee>
16-33 required to file reports under Subchapter C <or E> may file a
16-34 report under this subchapter instead if the candidate <or
16-35 committee> does not intend to accept political contributions that
16-36 in the aggregate exceed $500 or to make political expenditures that
16-37 in the aggregate exceed $500 in connection with the election.
16-38 SECTION 5.13. Subchapter G, Chapter 254, Election Code, is
16-39 amended by adding Section 254.1811 to read as follows:
16-40 Sec. 254.1811. REPORT NOT REQUIRED. A political committee
16-41 is not required to appoint a campaign treasurer or file reports
16-42 under Subchapter E or F if the committee does not intend to accept
16-43 political contributions that in the aggregate exceed $500 or to
16-44 make political expenditures that in the aggregate exceed $500 in
16-45 connection with an election.
16-46 SECTION 5.14. Section 254.182, Election Code, is amended to
16-47 read as follows:
16-48 Sec. 254.182. Declaration of Intent Required. (a) To be
16-49 entitled to file reports under this subchapter, an opposed
16-50 candidate <or specific-purpose committee> must file with the
16-51 campaign treasurer appointment a written declaration of intent not
16-52 to exceed $500 in political contributions or political expenditures
16-53 in the election.
16-54 (b) To be entitled to accept political contributions or make
16-55 political expenditures without appointing a campaign treasurer or
16-56 filing reports under Subchapter E or F, a political committee must
16-57 file a written declaration of intent not to exceed $500 in
16-58 political contributions or political expenditures in the election.
16-59 The declaration of intent must be filed with the authority with
16-60 whom the committee would file a campaign treasurer appointment if
16-61 one were required.
16-62 (c) The declaration of intent must contain a statement that
16-63 the candidate or committee understands that if the $500 maximum for
16-64 contributions and expenditures is exceeded, the candidate or
16-65 committee is required to file reports under Subchapter C, <or> E,
16-66 or F, as applicable.
16-67 SECTION 5.15. Subsections (a) and (b), Section 254.183,
16-68 Election Code, are amended to read as follows:
16-69 (a) An opposed candidate or a political <specific-purpose>
16-70 committee that exceeds $500 in political contributions or political
17-1 expenditures in the election shall file reports as required by
17-2 Subchapter C, <or> E, or F, as applicable.
17-3 (b) If a candidate or committee exceeds the $500 maximum
17-4 after the filing deadline prescribed by Subchapter C, <or> E, or F
17-5 for the first report required to be filed under the appropriate
17-6 subchapter, the candidate or committee shall file a report not
17-7 later than 48 hours after the maximum is exceeded.
17-8 SECTION 5.16. Section 254.184, Election Code, is amended to
17-9 read as follows:
17-10 Sec. 254.184. Applicability of Regular Reporting
17-11 Requirements. (a) Subchapter C <or E, as applicable,> applies to
17-12 an opposed candidate <or specific-purpose committee> filing under
17-13 this subchapter to the extent that that <the appropriate>
17-14 subchapter does not conflict with this subchapter.
17-15 (b) A candidate <or committee> filing under this subchapter
17-16 is not required to file any reports of political contributions and
17-17 political expenditures other than the semiannual reports required
17-18 to be filed not later than July 15 and January 15.
17-19 SECTION 5.17. Subchapter G, Chapter 254, Election Code, is
17-20 amended by adding Section 254.185 to read as follows:
17-21 Sec. 254.185. EXCEEDING MAXIMUM IMMEDIATELY BEFORE ELECTION
17-22 PROHIBITED. (a) A candidate or political committee that has filed
17-23 a declaration of intent under Section 254.182 may not exceed the
17-24 $500 maximum for political contributions or political expenditures
17-25 after the 11th day before the date of an election in which the
17-26 candidate or committee is involved.
17-27 (b) A person who violates this section commits an offense.
17-28 An offense under this section is a Class A misdemeanor.
17-29 SECTION 5.18. Section 255.001, Election Code, is amended to
17-30 read as follows:
17-31 Sec. 255.001. Required Disclosure on Political Advertising.
17-32 (a) A person may not knowingly enter into a contract or other
17-33 agreement to print, publish, or broadcast political advertising
17-34 that does not indicate in the advertising:
17-35 (1) that it is political advertising;
17-36 (2) the full name of either the individual who
17-37 personally entered into the contract or agreement with the printer,
17-38 publisher, or broadcaster or the person that individual represents;
17-39 <and>
17-40 (3) in the case of advertising that is printed or
17-41 published, the address of either the individual who personally
17-42 entered into the agreement with the printer or publisher or the
17-43 person that individual represents; and
17-44 (4) the name of the person who paid for the political
17-45 advertising if different than the name of the individual who
17-46 personally entered into the contract or agreement.
17-47 (b) This section does not apply to tickets or invitations to
17-48 political fund-raising events or to campaign buttons, pins, hats,
17-49 or similar campaign materials.
17-50 (c) For purposes of this section, political advertising is
17-51 "paid for":
17-52 (1) in the case of advertising purchased with funds
17-53 provided by an individual, by the individual; or
17-54 (2) in the case of advertising purchased with funds
17-55 provided by a political committee, by the campaign treasurer of the
17-56 committee.
17-57 (d) A person who violates this section commits an offense.
17-58 An offense under this section is a Class A misdemeanor.
17-59 SECTION 5.19. The change in law made by Section 5.07 of this
17-60 Act applies only to an offense committed on or after the effective
17-61 date of this Act. An offense committed before that date is covered
17-62 by the law in effect when the offense occurred, and that law is
17-63 continued in effect for this purpose.
17-64 SECTION 5.20. The change in law made by Section 5.18 of this
17-65 Act applies only to a contract or other agreement entered into on
17-66 or after September 1, 1993. A contract or agreement entered into
17-67 before that date is covered by the law in effect on the date the
17-68 contract or agreement was entered into, and that law is continued
17-69 in effect for this purpose.
17-70 ARTICLE 6
18-1 SECTION 6.01. This Act takes effect September 1, 1993.
18-2 SECTION 6.02. The importance of this legislation and the
18-3 crowded condition of the calendars in both houses create an
18-4 emergency and an imperative public necessity that the
18-5 constitutional rule requiring bills to be read on three several
18-6 days in each house be suspended, and this rule is hereby suspended.
18-7 * * * * *
18-8 Austin,
18-9 Texas
18-10 April 26, 1993
18-11 Hon. Bob Bullock
18-12 President of the Senate
18-13 Sir:
18-14 We, your Subcommittee on Elections and Ethics to which was referred
18-15 S.B. No. 1005, have had the same under consideration, and I am
18-16 instructed to report it back to the Senate with the recommendation
18-17 that it do not pass, but that the Committee Substitute adopted in
18-18 lieu thereof do pass and be printed.
18-19 Carriker,
18-20 Chairman
18-21 * * * * *
18-22 WITNESSES
18-23 FOR AGAINST ON
18-24 ___________________________________________________________________
18-25 Name: Ms. Fran Coppinger, Ethics Comm. x
18-26 Representing: Herself
18-27 City: Pearland
18-28 -------------------------------------------------------------------
18-29 Name: Jim Marston x
18-30 Representing: Himself
18-31 City: Austin
18-32 -------------------------------------------------------------------
18-33 Name: Tom Smith x x
18-34 Representing: Public Citizen
18-35 City: Austin
18-36 -------------------------------------------------------------------
18-37 FOR AGAINST ON
18-38 ___________________________________________________________________
18-39 Name: Chris Shields x
18-40 Representing: Texas Chamber of Commerce
18-41 City: Austin
18-42 -------------------------------------------------------------------
18-43 Name: Ed Shack x
18-44 Representing: Texas Chamber of Commerce
18-45 City: Austin
18-46 -------------------------------------------------------------------
18-47 Name: Marilyn Monroe x
18-48 Representing: Tx Society of Assoc. Execs.
18-49 City: Austin
18-50 -------------------------------------------------------------------
18-51 Name: Suzy Woodford x
18-52 Representing: Common Cause
18-53 City: Austin
18-54 -------------------------------------------------------------------
18-55 Name: John Steiner x
18-56 Representing: Texas Ethics Commission
18-57 City: Austin
18-58 -------------------------------------------------------------------
18-59 Name: Norman B. Lyons, Jr. x
18-60 Representing: Himself
18-61 City: Fort Worth
18-62 -------------------------------------------------------------------
18-63 Name: Isaias Torres x
18-64 Representing: Texas Ethics Commission
18-65 City: Houston
18-66 -------------------------------------------------------------------
18-67 Name: David Pinkus x
18-68 Representing: Small Business United of Tx
18-69 City: Austin
18-70 -------------------------------------------------------------------