By Farrar                                               H.B. No. 48

      75R708 ESH-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the penalty for late filing of a report of political

 1-3     contributions and expenditures or a personal financial disclosure

 1-4     statement.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Section 254.042, Election Code, is amended to

 1-7     read as follows:

 1-8           Sec. 254.042.  CIVIL PENALTY FOR LATE REPORT.  (a)  The

 1-9     commission shall determine from any available evidence whether a

1-10     report, other than a telegram report under Section 254.038 or

1-11     254.039, required to be filed with the commission under this

1-12     chapter is late.  On making that determination, the commission

1-13     shall immediately mail a notice of the determination to the person

1-14     required to file the report.

1-15           (b)  If a report is determined to be late, the person

1-16     required to file the report is civilly liable to the state for an

1-17     amount determined by commission rule, but, except as provided by

1-18     Subsection (c), not to exceed $100 for each day that the report is

1-19     late.

1-20           (c)  The minimum penalty under this section is:

1-21                 (1)  $500, for the first incident in which a report is

1-22     late; or

1-23                 (2)  $1,000, for the second or subsequent incident in

1-24     which a report is late.

 2-1           (d)  If a report is more than 30 days late, the commission

 2-2     shall issue a warning of liability by registered mail to the person

 2-3     required to file the report.  If the penalty is not paid before the

 2-4     10th day after the date on which the warning is received, the

 2-5     person is liable for a penalty in an amount determined by

 2-6     commission rule, but not to exceed $10,000.

 2-7           (e)  The commission may adopt rules under which a penalty

 2-8     imposed under this section may be waived if waiver is in the public

 2-9     interest and the interest of justice.

2-10           (f) [(c)]  A penalty paid voluntarily under this section

2-11     shall be deposited in the State Treasury to the credit of the

2-12     General Revenue Fund.

2-13           SECTION 2.  Section 572.033, Government Code, is amended to

2-14     read as follows:

2-15           Sec. 572.033.  CIVIL PENALTY.  (a)  The commission shall

2-16     determine from any available evidence whether a statement required

2-17     to be filed under this subchapter is late.  On making a

2-18     determination that the statement is late, the commission shall

2-19     immediately mail a notice of the determination to the individual

2-20     responsible for filing the statement and to the appropriate

2-21     attorney for the state.

2-22           (b)  If a statement is determined to be late, the individual

2-23     responsible for filing the statement is civilly liable to the state

2-24     for an amount determined by commission rule, but, except as

2-25     provided by Subsection (c), not to exceed $100 for each day that

2-26     the statement is late.

2-27           (c)  The minimum penalty under this subsection is:

 3-1                 (1)  $500, for the first incident in which a statement

 3-2     is late; or

 3-3                 (2)  $1,000, for the second or subsequent incident in

 3-4     which a statement is late.

 3-5           (d)  If a statement is more than 30 days late, the commission

 3-6     shall issue a warning of liability by registered mail to the

 3-7     individual responsible for the filing.  If the penalty is not paid

 3-8     before the 10th day after the date on which the warning is

 3-9     received, the individual is liable for a civil penalty in an amount

3-10     determined by commission rule, but not to exceed $10,000.

3-11           (e)  The commission may adopt rules under which a penalty

3-12     imposed under this section may be waived if waiver is in the public

3-13     interest and the interest of justice.

3-14           (f) [(c)]  This section is cumulative of any other available

3-15     sanction for a late filing of a sworn statement.

3-16           SECTION 3.  This Act takes effect September 1, 1997, and

3-17     applies only to a report under Chapter 254, Election Code, or a

3-18     financial statement under Chapter 572, Government Code, that is due

3-19     on or after that date.  A report under Chapter 254, Election Code,

3-20     or a financial statement  under Chapter 572, Government Code, that

3-21     is due before September 1, 1997, is governed by the law in effect

3-22     August 31, 1997, and that law is continued in effect for that

3-23     purpose.

3-24           SECTION 4.  The importance of this legislation and the

3-25     crowded condition of the calendars in both houses create an

3-26     emergency and an imperative public necessity that the

3-27     constitutional rule requiring bills to be read on three several

 4-1     days in each house be suspended, and this rule is hereby suspended.