BILL ANALYSIS H.B. 2 By: Black February 15, 1995 Committee Report (Amended) BACKGROUND During the interim of the 73rd Legislature, the House Administration Committee undertook the task to study several issues relating to caucuses. To assist the House Administration Committee with this aim, the matter was referred to the Subcommittee on Caucus Policy for further consideration. The Subcommittee held public hearings and heard testimony from some of the House caucus chairs as well as other individuals. Recommendations to the 74th Legislature were adopted by the subcommittee and reported those findings to the full House Administration Committee. Likewise, the House Administration Committee adopted and concurred with the Subcommittee's proposal. Thus, House Bill 2 was filed in accordance with the House Administration Committee's final approval of the Subcommittee on Caucus Policy's recommendations to the 74th Legislature. PURPOSE H.B. 2 would place into statute for all legislative caucuses restrictions on contributions and reporting requirements that are similar to restrictions adopted for caucuses by the House of Representatives in H.R. 4, the "housekeeping resolution". H.B. 2 would extend the restrictions to both house and senate caucuses and would place enforcement in the Texas Ethics Commission. RULEMAKING AUTHORITY It is the opinion of the committee that the bill does not expressly delegate rulemaking authority to a state officer, department, agency, or institution. However, the committee amendment does give the Texas Ethics Commission the authority to prescribe forms for purposes of legislative caucus reports. SECTION BY SECTION ANALYSIS SECTION 1 Adds Section 253.0341 to Title 15 of the Election Code, prohibits caucuses from accepting contributions from third parties during the same period in relation to a legislative session that legislators and other elected officeholders are prohibited from receiving political contributions. That period begins on the 30th day before a regular session and continues through adjournment sine die. As with political contributions, there is no prohibition against accepting contributions before or during a special session. The criminal penalty and civil liability subsections parallel the provisions applicable to entities violating the law relating to political contributions. The section addresses "contributions" accepted by the caucus rather than "political contributions". Both are defined terms of art in Title 15. "Contribution", defined by Section 251.001(2), means a direct or indirect transfer of anything of value; "political contribution", defined by Section 251.001(5), is restricted to campaign or officeholder contributions for which distinct statutory provisions apply. The statute does not contemplate that caucuses will accept political contributions or make political expenditures. A caucus that has as a principal purpose accepting political contributions or making political expenditures. "Legislative caucus" is defined in a manner that includes organizations that permit membership from a single house or both houses. Membership that includes the governor or lieutenant governor does not remove the organization from the definition of legislative caucus, but if the membership includes any other stat officers or private persons the organization is not regulated as a caucus. SECTION 2 Imposes reporting requirements parallel to the general requirements for legislators and political committees in regard to political contributions and political expenditures. Unlike those entities, caucuses are not required to report payments that are not political expenditures, or to report the name of candidates and officeholders benefiting from campaign expenditures, because by definition a caucus does not make those types of expenditures. Placement of these sections in Title 15 of the Election Code gives the Texas Ethics Commission jurisdiction to enforce the requirements, including the power to adopt rules, issue advisory opinions, hear complaints, issue orders, and impose civil penalties up to $5,000 or triple the amount at issue, whichever is greater. SECTION 3 Emergency Clause. EXPLANATION OF AMENDMENTS COMMITTEE AMENDMENT #1 amends Section 254.036, Election Code, by adding subsection (d) to allow the Texas Ethics Commission to prescribe forms for the purpose of legislative caucus reports under Section 254.0311 that are separate and distinct from forms for other reports under this chapter. It also amends Subchapter A, Chapter 251, Election Code, by adding Section 251.009 so that legislative caucus contributions or expenses are not to be considered to be officeholder contribution or expenditure. The amendment also makes a distinction between contributions received from caucus members and contributions received from outside parties. SUMMARY OF COMMITTEE ACTION H.B. 2 was considered in a public hearing on February 7, 1995. The following persons testified in favor of the bill: Mr. Tom Smith, representing Public Citizen. The following persons testified neutrally on the bill: Ms. Sarah Woelk, acting Executive Director, Texas Ethics Commission. The committee considered one amendment to the bill. No action was taken on the amendment and the bill was left pending. The bill was considered in a formal meeting on February 14, 1995. The amendment offered at the public hearing on February 7, 1995 was withdrawn. The committee considered one amendment to the bill. The amendment was adopted without objection. The bill as amended was reported favorably, with the recommendation that it do pass and be printed, by a record vote of 9 ayes, 1 nay, and 1 absent.