MAD C.S.H.B. 3332 75(R) BILL ANALYSIS
ELECTIONS
C.S.H.B. 3332
By: Gallego
5-12-97
Committee Report (Substituted)
BACKGROUND
Elections rely heavily on the amount of money invested in campaigns. Some
candidates have taken full advantage of the lenient restrictions on fund
raising, especially when receiving funds from national political
organizations. Contributions and gifts must be regulated and watched
closely to ensure the legality of a candidate's methods when raising money
for campaigns. Penalties must assist those regulations by assessing fines
and penalties should the candidate not follow procedure.
PURPOSE
The measure will provide more definite guidelines when candidates or
officeholders engage in raising or spending funds for campaigns.
RULEMAKING AUTHORITY
This bill expressly grants additional rulemaking authority to the Texas
Ethics Commission in SECTIONS 1, 14, and 19 of the bill.
SECTION BY SECTION ANALYSIS
SECTION 1.Amends Chapter 253, Election Code, by adding Subchapter G, as
follows:
SUBCHAPTER G. VOLUNTARY CONTRIBUTION AND EXPENDITURE LIMITS
Sec. 253.201. APPLICABILITY OF SUBCHAPTER. Provides that the subchapter
only applies to political contributions or expenditures related to: a
statewide office other than a judicial office; office of a state senator;
office of a state representative; and an office of a State Board of
Education member.
Sec. 253.202. DEFINITIONS. Defines "principal campaign committee" as a
specific-purpose committee created to support a candidate or to assist an
officeholder.
Sec. 252.203. PRINCIPAL CAMPAIGN COMMITTEE. A candidate or officeholder
must designate, in writing, a specific-purpose committee as a principal
campaign committee no later than the 15th day after the person becomes a
candidate or officeholder. Such designation shall be filed with the
Ethics Commission. The principal campaign committee shall include the
candidate or officeholder's name. Limits a person who is both a candidate
and an officeholder to have one principal campaign committee. Candidates
becoming officeholders need not designate a new principal campaign
committee. Prohibits a person from establishing a specific-purpose
committee for the reason of opposing or assisting an officeholder covered
under this Subchapter.
Sec. 253.204. LIABILITY OF CANDIDATE FOR ACT OR OMISSION OF PRINCIPAL
CAMPAIGN COMMITTEE. Provides that a candidate or officeholder is civilly
liable for an act or omission by the principal campaign committee only if
the candidate or officeholder authorized, requested, commanded, performed
or recklessly or negligently tolerated the act or omission.
Sec. 253.205. ACCEPTANCE OF POLITICAL CONTRIBUTION BY CANDIDATE OR
OFFICEHOLDER. Provides that a candidate or officeholder may accept a
political contribution in connection with the person's own candidacy if
the contribution is accepted on behalf of the principal campaign
committee. However, a contribution may not be accepted by the candidate
or officeholder if the principal campaign committee is prohibited from
accepting the contribution.
Sec. 253.206. LIMIT ON CONTRIBUTION BY CHILD. Provides that for each
election in which the candidate of officeholder campaigns for office, a
child may not make or authorize a political contribution that exceeds $50
in the aggregate. Defines "child" as a person under 18 years-old who has
not been married or has not had the disabilities of being a minor removed.
Sec. 253.207. NOTICE REQUIRED FOR CERTAIN DIRECT CAMPAIGN EXPENDITURES.
Except for the principal political committee of the state executive
committee or a county executive committee of a political party, persons
who make a contribution to support or oppose a candidate must file a
declaration with the Ethics Commission and the candidate's principal
campaign committee. The amount of the expenditure shall be included in the
declaration.
No later than 24 hours after receiving the declaration, the Ethics
Commission must send a copy of the declaration to the candidate or
officeholder's principal campaign committee via fax or overnight mail.
The Ethics Commission must file the declaration together with the
candidate's principal campaign committee records. Expenditures incurred
in contacting the association's or committee's paying membership do not
have to be reported. This section does not apply to a political
expenditure made by a principal campaign committee in connection with a
candidate's election.
Sec. 253.208. FAIR CAMPAIGN SPENDING FUND. Sets forth that the
legislative fair campaign spending fund, a special account within general
revenue, will be comprised of:
_damages recovered under Section 253.133;
_civil penalties imposed under Section 571.173, Government Code;
_gifts or grants received by the Ethics Commission.
Allows funds to be used for voter education projects and to pay for cost
of imposing civil penalties for violations of this Section. Grants the
Ethics Commission the authority to use the funds for broadcasting public
announcements which educate voters about candidates. When it is
practicable, the accumulated funds may be used to publish a voter's guide.
Permits the Ethics Commission to accept gifts and grants; the money must
be deposited in the fair campaign spending fund. Provides that the
legislative fair campaign spending fund is exempt from Section 403.095,
Government Code.
Sec. 253.209. VOTER'S GUIDE. Provides that if sufficient funds exist in
the legislative fair campaign fund, the money may be used to distribute a
voter's guide, giving voters background information on the candidates.
Requires the commission to establish rules pertaining to the information
submitted to the voter's guide by the candidates; only a maximum length
may be set by the commission. Requires the commission to, at least seven
days before early voting by mail begins, distribute the guide via
newspapers, the Internet, and the comptroller's state government
electronic billboard.
SECTION 2. Amends Section 84.001, Election Code. Provides that a person
may not use an early voting ballot application unless the form is obtained
from:
_an individual, candidate, or officeholder not working in conjunction with
another person or
_the principal political committee of the state executive committee or a
county executive committee of a political party.
SECTION 3. Amends Section 251.001, Election Code. Amends Subdivision
(14), deleting the words "that are unidentified" and inserts
"unidentified", providing that a general purpose committee is a political
committee supporting one or more unidentified measures.
Amends Subdivision (16), adding that "political advertising" now includes
communication in opposition or support of a candidate distributed through
an automated dial announcing device.
Adds Subdivision (21), defining an "unidentified measure" as a question
or proposal intended to be submitted in an election but is not legally
required to be submitted.
SECTION 4. Amends Section 251.005, Election Code. Amends Subsection (a),
adding "or (d)".
Adds Subsection (d), providing that any out-of-state committee that is
also the national committee of a political party is subject to this
Section, just as if it were not an out-of-state committee.
SECTION 5. Amends Section 253.001. Subsection (c), Election Code.
Rewords the title to say: CONTRIBUTION OR EXPENDITURE IN ANOTHER'S NAME
PROHIBITED. If a person accepts a contribution on behalf of a candidate,
the person accepting the contribution must disclose the name and address
of the contributor to the recipient. Should a person authorize an
expenditure on behalf of another person, that person must disclose the
name and address of the party benefitting from the expenditure.
SECTION 6. Amends Section 253.003. Subsection (c), Election Code. Adds
that Section 253.003 does not apply to expenditures made or authorized
under Subchapters F or G.
SECTION 7. Amends Section 253.004(a), Election Code. Adds that Section
253.004(b) does not apply to expenditures made or authorized under
Subchapters F or G.
SECTION 8. Amends Section 253.134. Election Code. CIVIL PENALTIES
IMPOSED BY COMMISSION. Election Code. Labels existing text as Subsection
(a), and adds Subsection (b), authorizing the commission to contract with
a non-governmental entity to collect civil penalties for violations not
paid 120 days after the penalty is assessed.
SECTION 9. Amends Section 254.031. Election Code. GENERAL CONTENTS OF
REPORT. Reports filed must include the following information about a
person making a contribution exceeding $100 in the aggregate: occupation
or job title; full name of employer; a list of all contributions made by
the contributor to the candidate since the last general election.
Person showing that best efforts have been used to obtain the information
in the preceding paragraph are considered to be complying with this
section.
SECTION 10. Amends Section 254.061, Election Code. In addition to the
information required by Section 254.031, total amounts or each political
contribution and expenditure made by a political committee must be
included in a candidate or officeholder's report.
SECTION 11. Amends Subchapter C, Chapter 254, Election Code. Adds
Section 254.0612, REPORTS BY PRINCIPAL CAMPAIGN COMMITTEE OF EXECUTIVE OR
LEGISLATIVE CANDIDATE; ADDITIONAL CONTENTS. Provides that principal
campaign committees of candidates for state representative or senate
offices must comply with this Subchapter as if the committee itself were a
candidate.
Reports by principal campaign committees must include the names and
addresses of people to whom expenditures are made. This is in addition
to the requirements of Sections 254.031 and 254.061. Defines "principal
campaign committee."
SECTION 12. Amends Section 254.091, Election Code. Additional
requirements for reports include each political contributions and
expenditures made by political committees.
SECTION 13. Amends Subchapter D, Chapter 254, Election Code. Adds
Section 254.0912. REPORTS BY PRINCIPAL CAMPAIGN COMMITTEE OF
EXECUTIVE LEGISLATIVE OFFICEHOLDER; ADDITIONAL CONTENTS. Provides that
the principal campaign committee of an officeholder shall follow the
guidelines of Subchapter G as if the committee itself were an
officeholder. Principal campaign committee reports must include the items
listed in Section 254.0612.
SECTION 14. Amends Section 254.128, Election Code. NOTICE TO CANDIDATE
AND OFFICEHOLDER OF CONTRIBUTIONS AND EXPENDITURES. Provides that
specificpurpose committees must notify candidates of all political
contributions and expenditures made for the candidate. Specific-purpose
committees must allocate expenditures to several candidates according to
rules adopted by the commission. Expenditures made to assist or support a
candidate benefit each candidate. Expenditures made to oppose a candidate
benefit each opponent. The campaign treasurer is liable for any violation
of this Section.
SECTION 15. Amends Subchapter F, Chapter 254, Election Code. Adds
Section 254.1511. and Section 254.1512. REPORTS BY PRINCIPAL POLITICAL
COMMITTEE OF POLITICAL PARTY; ADDITIONAL CONTENTS. Provides that state
executive committees of a political party, in their report, must include
lists of contributions and expenditures made between the committee and
candidates or officeholders. Requires that reports include the total of
contributions and expenditures accepted and given throughout the calendar
year. Those totals must be of contributions made to principal campaign
committees or for direct benefit to a candidate or officeholder.
Sec. 254.1512. Declares that this section only applies to general-purpose
committees registered under Subchapter I, Chapter 14, Title 2, United
States Code. Campaign treasurers must include in their reports the items
listed in Section 254.031 and 254.151. Sections 254.031(a)1-4 and 6 do
not apply to general-purpose committees under this Section.
For each contribution made by a general-purpose committee that in the
aggregate exceeds $200, the committee's report must include the amount of
the contribution, full name and address of the person, the person's job
title, and the date of the contribution.
The portion of the report relating to loans made throughout the calendar
year, exceeding $200 in the aggregate, must include: the amount of the
loan; name and address of person or lender; date of loan; interest rate;
maturity date; type of collateral; name of loan guarantor; amount of loan
guaranteed by guarantor.
The portion of the report relating to expenditures made during the
reporting period, exceeding $200 in the aggregate, must include: amount
of the expenditure; full name of person to whom the expenditure was made;
date of the expenditure.
Additionally, the report by the general-purpose committee must include an
accurate list of all contributions, loans, and expenditures that are $200
or less. Aggregate principal amounts will also be included in the report.
Any amount or payment information required by the United States Code need
not be in this report. Section 254.156 does not apply to the
general-purpose committees under this Section. The Federal Elections
Commission may draft a report form for the purposes of this Section.
SECTION 16. Amends Section 254.203(a), Election Code. Provides that a
person may not retain contributions or interest earned on contributions
either more than six years after the person ceases to be an officeholder
or the date that the person is not longer a candidate, whichever is later.
SECTION 17. Amends Section 254.204(a), Election Code. Provides that any
contribution money remaining after the six years must be remitted to the
political party with which the person was aligned, a candidate or
political committee, the comptroller, the state treasury or to the
commission for deposit in the fair campaign spending fund under Section
253.220.
SECTION 18. Amends Section 255.001, Election Code. Provides that a
person may not copy political advertising if it does not indicate the name
and address of the person responsible for the distribution or broadcast of
the political material.
SECTION 19. Amends Chapter 255, Election Code. Adds Section 255.009.
DISCLOSURE ON POLITICAL ADVERTISING CONCERNING CERTAIN UNPAID CIVIL
PENALTIES. Any person with outstanding civil penalties must include a
message in all advertisements indicating that the candidate has failed to
pay penalties imposed by the Ethics Commission. The Ethics Commission
shall provide the necessary guidelines for the message. This Section does
not apply to violations that can be appealed under Section 571.133,
Government Code. Violations of this Section are Class A misdemeanors.
SECTION 20. Amends Title 15, Election Code. Adds Chapter 256. POLITICAL
CONSULTANTS.
Sec. 256.001. Defines "political consultant" as a person required to
register under Section 256.002. Defines "political services" as provision
of advice on strategy or demographics and polling.
Sec. 256.002. PERSON REQUIRED TO REGISTER. Requires a person receiving
an amount of money larger than a figure determined by the commission, but
not less than $200, to register with the commission. The amounts received
are calculated by each calendar quarter. This Section applies to
compensation from a candidate, officeholder, or political party for the
purpose of political services. Employees of candidates, officeholders,
political committees or parties need not report. Offenses committed under
this Section are Class A misdemeanors.
Section 256.003. REGISTRATION. Sets forth that persons required to
register do so with the commission and pay a registration fee. All
registration forms filed expire on the 1st of January, unless the person
files a renewal registration form anytime before the expiration date.
Registration fee is $300, to be deposited in the state ethics fund.
Person providing political services even though they are not registered
must file no later than five days after providing the services.
Requires registration to include:
_Full name and address
_business telephone number and address.
Requires any changes in information be reported to the commission before
the next report is due.
Sec. 256.004. ACTIVITIES REPORT. Requires political consultants to file
a report with the commission. It must include the following for each
person receiving political services from that consultant:
_name of person or entity represented by the consultant
_description of services provided
_amount of compensation received
Sec. 256.005. REPORTING SCHEDULE. Requires consultants to file two
reports. One of them no later than July 15. This report will cover all
necessary information from January 1 through June 30. The second report
will cover information from July 1 through December 31.
Sec. 256.006. APPLICABILITY OF CHAPTER 254. Makes Chapter 254,
Subchapters A and B, apply to Section 256.006, except to the portions
where guidelines in a Section are inconsistent with the other.
SECTION 21. Amends Title 16, Revised Statutes. Adds Article 360. BANK
ACCOUNTS FOR CANDIDATES FOR PUBLIC OFFICE.
Sec. 1. DEFINITIONS. Sets forth that a candidate be defined by Section
251.001, Election Code. Banks, savings and loan associations, savings
banks, or credit unions all fall under the definition of a "financial
institution." A political contribution remains defined by Section
251.001, Election Code.
Sec. 2. CONSENT OF CANDIDATE REQUIRED. Requires candidates to give
financial institutions consent in order for the institution to open an
account in the candidate's name.
Sec. 3. CANDIDATE NEED NOT BE SIGNATORY. Declares that Section 2 does
not require the candidate to be a signatory to the account.
SECTION 22. Repeals Section 253.042(g), of the Election Code.
SECTION 23. Sets forth effective dates.
SECTION 24. Emergency clause.
COMPARISON OF ORIGINAL TO SUBSTITUTE
SECTION 1. Section 1 of the original entitled SUBCHAPTER G. LEGISLATIVE
FAIR CAMPAIGN SPENDING ACT, is now labeled RESTRICTION ON POLITICAL
CONTRIBUTIONS AND EXPENDITURES IN CONNECTION WITH EXECUTIVE AND
LEGISLATIVE OFFICES. The original has provisions added by the amendment
in Sec. 253.201 that make this Subchapter applicable to statewide races
and races for membership on the State Board of Education, in addition to
Senate and House seats. Deleted from the original are all definitions
except for "principal campaign committee." Deleted from original are
Sections 253.206-209 and 253-111-218. Those deleted Sections dealt with
the following:
_Sec. 253.206--Contribution limits on individuals.
_Sec. 253.207--Contributions limits on family groups of the candidate or
officeholder.
_Sec. 253.208--Contributions limits on general-purpose committees (PAC's).
_Sec. 253.209--Return of excess money that, if retained by the candidate
or officeholder, would cause the candidate or officeholder to violate the
limits set forth by this Subchapter.
_Sec. 253.211--Provision of voluntary compliance with the limits of Sec.
253.206-208.
_Sec. 253.212--Effects on candidates not complying with the limits in Sec.
253.211.
_Sec. 253.213--Benefits for candidates complying with the limits in Sec.
253.211.
_Sec. 253.214--Sets limits on amount of money a candidate or officeholder
can spend out of personal accounts.
_Sec. 253.215--Sets spending limits for principal campaign committees.
_Sec. 253.216--Sets spending limits for state executive committees.
_Sec. 253.217--Addresses contributions made by a national committee of a
political party.
_Sec. 253.218--Addresses "in-kind" contributions, also known as
contributions of goods and services for which a candidate would have had
to make an expenditure.
_Sec. 253.219-- Allows the Ethics Commission to increase expenditure
limits when a person makes a direct campaign expenditure to support or
oppose a candidate.
Sec.253.210 from the original is now Sec. 253.207 in the substitute,
NOTICE REQUIRED FOR CERTAIN DIRECT CAMPAIGN EXPENDITURES. This Section
requires persons to file with the Ethics Commission if the person makes a
contribution to support or oppose a candidate.
Sec. 253.220 in the original is labeled only the FAIR CAMPAIGN SPENDING
FUND, Sec.253.208 in the substitute. Creates a fund that can be used for
voter-information projects and to publish a voter's guide.
Sec.253.221 in the original, Sec.253.208 in the substitute, establishes
the make-up of the voter's guide that can be published using the
accumulated money in the FAIR CAMPAIGN SPENDING FUND.
SECTION 2. Sec. 251.005 in the original, SECTION 4 of the substitute,
sets forth that national committees of a political party are to be
considered as in-state committees under this Subchapter.
SECTION 3. This SECTION in the original, Sec. 253.003(c), referring to
the applicability of this Section, is deleted.
SECTION 4. This SECTION in the original, Sec. 253.004(b), referring to
the applicability of this Section, is deleted.
SECTION 5. This SECTION in the original, adding Sec. 253.040, relating to
contributions made by former officeholders acting as lobbyists.
SECTION 6. This SECTION in the original, Sec. 253.042(a), relating to
the limits of reimbursement of expenditures that a candidate or
officeholder can seek, is deleted.
SECTION 7. This SECTION in the original, Sec. 253.134, SECTION 8 in the
substitute, refers to allowing the Ethics Commission to contract with a
nongovernmental entity to collect civil penalties.
SECTION 8. This SECTION in the original, Sec. 254.034, relating to
applicability of this Section, is deleted.
SECTION 9. This SECTION in the original, Sec. 254.0612, pertains to
contents of reports submitted by principal campaign committees. This
Section appears in the substitute, however, the language is modified.
SECTION 10. This SECTION in the original, Sec. 254.0912, relating to the
additional contents of reports submitted by principal campaign
committees, is deleted.
SECTION 11. This SECTION in the original, Sec.254.1511, relating to the
contents of reports submitted by principal political committees.
SECTION 12. This SECTION in the original, Sec. 254.203, SECTION 16 in the
substitute, pertains to the time limits set on former candidates or
officeholders to get rid of remaining contribution money.
SECTION 13. This SECTION in the original, Sec. 254.204(a), SECTION 17 in
the substitute, pertains to where left over contribution money can be
deposited.
SECTION 14. This SECTION in the original, Chapter 255, relating to
disclosure of compliance in political advertising, is deleted. Also,
provisions in the SECTION relating to restrictions on telephone
advertising and polling are deleted.
SECTION 15. This SECTION in the original, Subchapter H, Chapter 151, Tax
Code, relating to items that are taxable under this Subchapter, is
deleted.
SECTION 16. This SECTION in the original, SECTION 22 in the substitute,
provides that Section 253.042(g), is repealed.
SECTION 17. This SECTION in the original, a non-severability clause, is
deleted and not included in the substitute.
SECTION 18. This SECTION in the original, SECTION 23 in the substitute,
sets the effective dates.
SECTION 19. This SECTION in the original, SECTION 24 in the substitute,
states the emergency clause.