By Brady                                              H.B. No. 2393
       74R6515 ESH-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to limits on political contributions and political
    1-3  expenditures and to certain political advertising; providing civil
    1-4  and criminal penalties.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Chapter 253, Election Code, is amended by adding
    1-7  Subchapter F to read as follows:
    1-8          SUBCHAPTER F.  CONTRIBUTION AND EXPENDITURE LIMITS
    1-9        Sec. 253.151.  DEFINITIONS.  In this subchapter:
   1-10              (1)  "Complying candidate" or "complying officeholder"
   1-11  means a candidate who files a declaration of compliance under
   1-12  Section 253.156.
   1-13              (2)  "In connection with an election" means:
   1-14                    (A)  with regard to a contribution that is
   1-15  designated in writing for a particular election, the election
   1-16  designated; or
   1-17                    (B)  with regard to a contribution that is not
   1-18  designated in writing for a particular election or that is
   1-19  designated as an officeholder contribution, the next election for
   1-20  that office occurring after the contribution is made.
   1-21              (3)  "Noncomplying candidate" means a candidate who
   1-22  does not file a declaration of compliance under Section 253.156.
   1-23              (4)  "Related committee" means:
   1-24                    (A)  with regard to an officeholder, a
    2-1  specific-purpose committee for assisting the officeholder; and
    2-2                    (B)  with regard to a candidate, a
    2-3  specific-purpose committee for supporting the candidate or opposing
    2-4  the candidate's opponent.
    2-5        Sec. 253.152.  LIMIT ON CONTRIBUTIONS BY INDIVIDUAL OR
    2-6  GENERAL-PURPOSE COMMITTEE.  (a)  An individual may not knowingly
    2-7  make or authorize political contributions that in the aggregate
    2-8  exceed $1,000 to:
    2-9              (1)  an officeholder;
   2-10              (2)  a candidate;
   2-11              (3)  a specific-purpose committee for:
   2-12                    (A)  assisting an officeholder; or
   2-13                    (B)  supporting or opposing a candidate;
   2-14              (4)  a combination of an officeholder and a related
   2-15  committee;
   2-16              (5)  a combination of a candidate and a related
   2-17  committee; or
   2-18              (6)  a combination of related committees for:
   2-19                    (A)  assisting an officeholder; or
   2-20                    (B)  supporting or opposing a candidate.
   2-21        (b)  A general-purpose committee may not knowingly make or
   2-22  authorize political contributions that in the aggregate exceed
   2-23  $5,000 to:
   2-24              (1)  an officeholder;
   2-25              (2)  a candidate;
   2-26              (3)  a specific-purpose committee for:
   2-27                    (A)  assisting an officeholder; or
    3-1                    (B)  supporting or opposing a candidate;
    3-2              (4)  a combination of an officeholder and a related
    3-3  committee;
    3-4              (5)  a combination of a candidate and a related
    3-5  committee; or
    3-6              (6)  a combination of related committees for:
    3-7                    (A)  assisting an officeholder; or
    3-8                    (B)  supporting or opposing a candidate.
    3-9        (c)  The limits prescribed by Subsections (a) and (b) apply
   3-10  in connection with each election in which the candidate or
   3-11  officeholder is involved.
   3-12        (d)  A person may not knowingly accept political
   3-13  contributions made or authorized in violation of this section.
   3-14        (e)  A candidate or officeholder who has accepted a political
   3-15  contribution from an individual or a general-purpose committee
   3-16  that, when aggregated with political contributions accepted from
   3-17  the individual or general-purpose committee by a related committee,
   3-18  exceeds the limit provided by Subsection (a) or (b), shall, not
   3-19  later than the 30th day after the date the candidate or
   3-20  officeholder receives notice of acceptance of a contribution by a
   3-21  related committee on behalf of the candidate or officeholder under
   3-22  Section 254.1281, return to the individual or general-purpose
   3-23  committee the lesser of:
   3-24              (1)  the amount by which the contributions accepted by
   3-25  the candidate or officeholder and the related committee exceed the
   3-26  limit prescribed by Subsection (a) or (b); or
   3-27              (2)  the total amount of contributions accepted from
    4-1  the individual or general-purpose committee by the candidate or
    4-2  officeholder.
    4-3        (f)  A person who violates this section commits an offense.
    4-4  An offense under this section is a Class B misdemeanor.
    4-5        Sec. 253.153.  DIRECT CAMPAIGN EXPENDITURE BY INDIVIDUAL OR
    4-6  GENERAL-PURPOSE COMMITTEE.  (a)  For purposes of Section 253.152, a
    4-7  direct campaign expenditure is considered to be a campaign
    4-8  contribution to a candidate if it is made by an individual or a
    4-9  general-purpose committee with the cooperation or prior consent of,
   4-10  in consultation with, or at the suggestion of:
   4-11              (1)  the candidate;
   4-12              (2)  a specific-purpose committee for supporting the
   4-13  candidate or opposing the candidate's opponent; or
   4-14              (3)  a person acting with the candidate's knowledge and
   4-15  consent.
   4-16        (b)  An individual who makes a direct campaign expenditure
   4-17  covered by Subsection (a) shall give notice of that fact to the
   4-18  affected candidate or officeholder as provided by Section 254.128
   4-19  for a specific-purpose committee and shall include the amount of
   4-20  the direct campaign expenditure in the notice.
   4-21        (c)  A general-purpose committee that makes a direct campaign
   4-22  expenditure covered by Subsection (a) shall include the amount of
   4-23  the direct campaign expenditure in the notice required by Section
   4-24  254.161.
   4-25        Sec. 253.154.  LIMIT ON CONTRIBUTIONS BY INDIVIDUAL TO
   4-26  CERTAIN COMMITTEES.  (a)  An individual may not knowingly make or
   4-27  authorize political contributions in a calendar year that in the
    5-1  aggregate exceed $5,000 to:
    5-2              (1)  a specific-purpose committee for supporting or
    5-3  opposing a measure; or
    5-4              (2)  a general-purpose committee.
    5-5        (b)  A political committee may not knowingly accept political
    5-6  contributions in violation of Subsection (a).
    5-7        (c)  An individual who violates this section commits an
    5-8  offense.  An offense under this section is a Class B misdemeanor.
    5-9        Sec. 253.155.  ANNUAL LIMIT ON TOTAL CONTRIBUTIONS BY
   5-10  INDIVIDUAL.  (a)  Subject to the limits prescribed by Sections
   5-11  253.152 and 253.154, an individual may not knowingly make or
   5-12  authorize political contributions in a calendar year that in the
   5-13  aggregate exceed $25,000.
   5-14        (b)  For purposes of this section, a campaign contribution
   5-15  made to a candidate or to a specific-purpose committee for
   5-16  supporting or opposing a candidate in a year other than the year in
   5-17  which the election in connection with which the contribution is
   5-18  made occurs is considered to be made in the year in which the
   5-19  election occurs.
   5-20        (c)  An individual who violates this section commits an
   5-21  offense.  An offense under this section is a Class B misdemeanor.
   5-22        Sec. 253.156.  VOLUNTARY COMPLIANCE BY CERTAIN CANDIDATES.
   5-23  (a)  A candidate  may voluntarily comply with the limits on
   5-24  expenditures prescribed by Section 253.158 by filing a sworn
   5-25  declaration of compliance with the commission when the person
   5-26  becomes a candidate.
   5-27        (b)  The declaration of compliance must state that the
    6-1  person:
    6-2              (1)  voluntarily agrees to comply with the limits on
    6-3  expenditures; and
    6-4              (2)  is aware of the civil penalty under Section
    6-5  253.159 for a violation of those limits.
    6-6        (c)  The limits on contributions prescribed by this
    6-7  subchapter apply to complying and noncomplying candidates.
    6-8        Sec. 253.157.  EFFECT OF NONCOMPLYING CANDIDATE.  (a)  A
    6-9  complying candidate or a specific-purpose committee for supporting
   6-10  or opposing a complying candidate is not required to comply with
   6-11  the limits on expenditures prescribed by Section 253.158 if another
   6-12  person becomes a candidate for the same office and does not file
   6-13  the declaration of compliance.
   6-14        (b)  The commission shall issue an order suspending the
   6-15  limits on expenditures for a specific office not later than the
   6-16  10th day after the date the commission determines a person has
   6-17  become a candidate for that office and has not filed the
   6-18  declaration of compliance authorized by Section 253.156.
   6-19        Sec. 253.158.  EXPENDITURE LIMITS FOR CERTAIN OFFICES.  (a)
   6-20  Not later than November 1 of each year, the commission shall adopt
   6-21  political expenditure limits as provided by this section.  A limit
   6-22  applies to each election occurring in the calendar year following
   6-23  the year in which the limit is adopted.
   6-24        (b)  The commission shall adopt limits for elections to the
   6-25  following offices:
   6-26              (1)  a statewide office;
   6-27              (2)  state senator;
    7-1              (3)  state representative;
    7-2              (4)  member, State Board of Education;
    7-3              (5)  chief justice or justice, court of appeals;
    7-4              (6)  district judge; and
    7-5              (7)  judge, statutory county court or statutory probate
    7-6  court.
    7-7        (c)  For each election in which the candidate is involved, a
    7-8  complying candidate may not knowingly make or authorize political
    7-9  expenditures that in the aggregate exceed the limit adopted by the
   7-10  commission.
   7-11        Sec. 253.159.  CIVIL PENALTY FOR VIOLATING EXPENDITURE LIMIT.
   7-12  (a)  A complying candidate who violates Section 253.158 is civilly
   7-13  liable to the state in an amount equal to:
   7-14              (1)  50 percent of the amount by which the candidate
   7-15  exceeded the limit to the extent that the candidate exceeded the
   7-16  limit by five percent or less; and
   7-17              (2)  100 percent of the amount by which the candidate
   7-18  exceeded the limit to the extent that the candidate exceeded the
   7-19  limit by more than five percent.
   7-20        (b)  The commission shall notify a person who violates
   7-21  Section 253.158 by registered mail.  A penalty under this section
   7-22  is due on the later of the 30th day after the date:
   7-23              (1)  of the general election for the office the person
   7-24  sought; or
   7-25              (2)  the commission notifies the person of the penalty.
   7-26        (c)  If a person subject to a civil penalty under this
   7-27  section does not voluntarily pay the penalty, the commission shall
    8-1  direct the attorney general to file suit to collect the penalty.
    8-2  If the person was a candidate for attorney general, the commission
    8-3  shall direct the district attorney for the 53rd Judicial District
    8-4  to file suit to collect the penalty.
    8-5        Sec. 253.160.  EXPENDITURE BY CERTAIN COMMITTEES CONSIDERED
    8-6  EXPENDITURE BY CANDIDATE.  For purposes of Section 253.158, an
    8-7  expenditure by a specific-purpose committee for the purpose of
    8-8  supporting a candidate, opposing the candidate's opponent, or
    8-9  assisting the candidate as an officeholder is considered to be an
   8-10  expenditure by the candidate unless the candidate, after proper
   8-11  notification of proposed expenditures by the specific-purpose
   8-12  committee states in an affidavit filed with the commission that the
   8-13  candidate has not directly or indirectly communicated with the
   8-14  committee in regard to a strategic matter, including polling data,
   8-15  advertising, campaign speeches, or voter demographics, in
   8-16  connection with the candidate's campaign.
   8-17        SECTION 2.  Section 254.061, Election Code, is amended to
   8-18  read as follows:
   8-19        Sec. 254.061.  ADDITIONAL CONTENTS OF REPORTS.  In addition
   8-20  to the contents required by Section 254.031, each report by a
   8-21  candidate must include:
   8-22              (1)  the candidate's full name and address, the office
   8-23  sought, and the identity and date of the election for which the
   8-24  report is filed;
   8-25              (2)  the campaign treasurer's name, residence or
   8-26  business street address, and telephone number;
   8-27              (3)  for each political committee from which the
    9-1  candidate received notice under Section 254.128 or 254.161:
    9-2                    (A)  the committee's full name and address;
    9-3                    (B)  an indication of whether the committee is a
    9-4  general-purpose committee or a specific-purpose committee; and
    9-5                    (C)  the full name and address of the committee's
    9-6  campaign treasurer;
    9-7              (4)  the full name and address of each individual
    9-8  acting as a campaign treasurer of a political committee under
    9-9  Section 253.062 from whom the candidate received notice under
   9-10  Section 254.128 or 254.161; <and>
   9-11              (5)  on a separate page or pages of the report, the
   9-12  identification of any payment from political contributions made to
   9-13  a business in which the candidate has a participating interest of
   9-14  more than 10 percent, holds a position on the governing body of the
   9-15  business, or serves as an officer of the business; and
   9-16              (6)  the amount of political contributions from each
   9-17  individual or general-purpose committee of which the candidate has
   9-18  received notice under Section 254.1281, the full name and address
   9-19  of the individual or general-purpose committee making the
   9-20  contributions and the specific-purpose committee accepting the
   9-21  contributions, and the dates of the contributions.
   9-22        SECTION 3.  Section 254.091, Election Code, is amended to
   9-23  read as follows:
   9-24        Sec. 254.091.  ADDITIONAL CONTENTS OF REPORTS.  In addition
   9-25  to the contents required by Section 254.031, each report by an
   9-26  officeholder must include:
   9-27              (1)  the officeholder's full name and address and the
   10-1  office held;
   10-2              (2)  for each political committee from which the
   10-3  officeholder received notice under Section 254.128 or 254.161:
   10-4                    (A)  the committee's full name and address;
   10-5                    (B)  an indication of whether the committee is a
   10-6  general-purpose committee or a specific-purpose committee; and
   10-7                    (C)  the full name and address of the committee's
   10-8  campaign treasurer; <and>
   10-9              (3)  on a separate page or pages of the report, the
  10-10  identification of any payment from political contributions made to
  10-11  a business in which the officeholder has a participating interest
  10-12  of more than 10 percent, holds a position on the governing body of
  10-13  the business, or serves as an officer of the business; and
  10-14              (4)  the amount of political contributions from each
  10-15  individual or general-purpose committee of which the officeholder
  10-16  has received notice under Section 254.1281, the full name and
  10-17  address of the individual or general-purpose committee making the
  10-18  contributions and the specific-purpose committee accepting the
  10-19  contributions, and the dates of the contributions.
  10-20        SECTION 4.  Section 254.128(a), Election Code, is amended to
  10-21  read as follows:
  10-22        (a)  Except as provided by Section 254.1281, if  <If> a
  10-23  specific-purpose committee accepts political contributions or makes
  10-24  political expenditures for a candidate or officeholder, the
  10-25  committee's campaign treasurer shall deliver written notice of that
  10-26  fact to the affected candidate or officeholder not later than the
  10-27  end of the period covered by the report in which the reportable
   11-1  activity occurs.
   11-2        SECTION 5.  Subchapter E, Chapter 254, Election Code, is
   11-3  amended by adding Section 254.1281 to read as follows:
   11-4        Sec. 254.1281.  NOTICE TO CANDIDATE OR OFFICEHOLDER OF
   11-5  CONTRIBUTIONS FROM INDIVIDUAL OR GENERAL-PURPOSE COMMITTEE.
   11-6  (a)  If a specific-purpose committee accepts political
   11-7  contributions from an individual or general-purpose committee for a
   11-8  candidate or officeholder, the specific-purpose committee's
   11-9  campaign treasurer shall deliver written notice of that fact to the
  11-10  affected candidate or officeholder not later than the third day
  11-11  after the date the specific-purpose committee accepts the
  11-12  contribution.
  11-13        (b)  The notice must include:
  11-14              (1)  the full name and address of the individual making
  11-15  the contribution or of the general-purpose committee making the
  11-16  contribution and its campaign treasurer and an indication that the
  11-17  committee is a general-purpose committee;
  11-18              (2)  the full name and address of the specific-purpose
  11-19  committee and its campaign treasurer and an indication that the
  11-20  committee is a specific-purpose committee; and
  11-21              (3)  the amount and date of the contribution.
  11-22        (c)  A specific-purpose committee that notifies a candidate
  11-23  or officeholder of a contribution under this section does not need
  11-24  to deliver a separate notice of the contribution under Section
  11-25  254.128.
  11-26        (d)  A campaign treasurer who fails to comply with this
  11-27  section commits an offense.  An offense under this section is a
   12-1  Class B misdemeanor.
   12-2        SECTION 6.  Chapter 255, Election Code, is amended by adding
   12-3  Section 255.008 to read as follows:
   12-4        Sec. 255.008.  DISCLOSURE ON POLITICAL ADVERTISING BY CERTAIN
   12-5  CANDIDATES AND COMMITTEES.  (a)  This section applies only to a
   12-6  candidate for an office for which limits on expenditures are
   12-7  adopted under Section 253.158.
   12-8        (b)  Political advertising by a candidate who does not file a
   12-9  declaration of intent to comply with the limits on expenditures or
  12-10  a specific-purpose committee for supporting such a candidate must
  12-11  include the following statement:  "Political advertising paid for
  12-12  by (name of candidate or committee), (who or which) has rejected
  12-13  the voluntary limits on campaign spending set by the Texas Ethics
  12-14  Commission under the Election Code."
  12-15        (c)  A person who violates this section commits an offense.
  12-16  An offense under this section is a Class A misdemeanor.
  12-17        SECTION 7.  This Act takes effect September 1, 1995, and
  12-18  applies only to a political contribution made or accepted, or a
  12-19  political expenditure made, on or after that date.  A political
  12-20  contribution made or accepted, or a political expenditure made,
  12-21  before that date is not aggregated with political contributions
  12-22  made or accepted, or  political expenditures made, on or after that
  12-23  date for purposes of Subchapter F, Chapter 253, Election Code, as
  12-24  added by this Act.
  12-25        SECTION 8.  The importance of this legislation and the
  12-26  crowded condition of the calendars in both houses create an
  12-27  emergency   and   an   imperative   public   necessity   that   the
   13-1  constitutional rule requiring bills to be read on three several
   13-2  days in each house be suspended, and this rule is hereby suspended.