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.