By Mowery H.B. No. 899 75R2312 ESH-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to limits on political contributions to and direct 1-3 campaign expenditures made on behalf of certain candidates, 1-4 officeholders, and political committees; providing criminal 1-5 penalties. 1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-7 SECTION 1. Chapter 253, Election Code, is amended by adding 1-8 Subchapter G to read as follows: 1-9 SUBCHAPTER G. CONTRIBUTION LIMITS 1-10 Sec. 253.201. CONTRIBUTION LIMITS. (a) A person may not 1-11 knowingly make or authorize political contributions to a candidate 1-12 or officeholder that in the aggregate exceed $5,000 with respect to 1-13 an election cycle in which the candidate or officeholder is 1-14 involved. 1-15 (b) A person may not knowingly accept a political 1-16 contribution, and shall refuse a political contribution that is 1-17 received, in violation of Subsection (a). 1-18 (c) This section does not apply to a political contribution 1-19 in connection with a statewide office. 1-20 (d) A person who violates this section commits an offense. 1-21 An offense under this section is a Class A misdemeanor. 1-22 (e) In this section: 1-23 (1) "Election cycle" means: 1-24 (A) the general primary election, runoff primary 2-1 election, if any, and general election for an office for which a 2-2 primary election is held; 2-3 (B) the general election and runoff election, if 2-4 any, for an office for which a primary election is not held; or 2-5 (C) a special election and runoff election, if 2-6 any. 2-7 (2) "With respect to an election cycle" means: 2-8 (A) with regard to a contribution that is 2-9 designated in writing for a particular election, the election cycle 2-10 that includes the election designated; or 2-11 (B) with regard to a contribution that is not 2-12 designated in writing for a particular election or that is 2-13 designated as an officeholder contribution, the election cycle that 2-14 includes the next election for that office occurring after the 2-15 contribution is made. 2-16 Sec. 253.202. CONTRIBUTION TO CERTAIN COMMITTEES CONSIDERED 2-17 CONTRIBUTION TO CANDIDATE OR OFFICEHOLDER. For purposes of Section 2-18 253.201, a contribution to a specific-purpose committee for the 2-19 purpose of supporting a candidate, opposing the candidate's 2-20 opponent, or assisting the candidate as an officeholder is 2-21 considered to be a contribution to the candidate or officeholder. 2-22 Sec. 253.203. CERTAIN DIRECT CAMPAIGN EXPENDITURES 2-23 CONSIDERED CONTRIBUTION TO CANDIDATE. For purposes of Section 2-24 253.201, a direct campaign expenditure is considered to be a 2-25 campaign contribution to a candidate if it is made with the 2-26 cooperation or prior consent of, in consultation with, or at the 2-27 suggestion of: 3-1 (1) the candidate; 3-2 (2) a specific-purpose committee for supporting the 3-3 candidate or opposing the candidate's opponent; or 3-4 (3) a person acting with the candidate's knowledge and 3-5 consent. 3-6 Sec. 253.204. NOTICE TO CERTAIN CANDIDATES OR OFFICEHOLDERS 3-7 OF INTENT TO ACCEPT CONTRIBUTIONS OR MAKE EXPENDITURES. (a) The 3-8 campaign treasurer of a specific-purpose committee that intends to 3-9 accept political contributions or make political expenditures for 3-10 the purpose of supporting a candidate for an office to which 3-11 Section 253.201 applies, opposing such a candidate's opponent, or 3-12 assisting such a candidate as an officeholder shall deliver written 3-13 notice of the committee's intent to the candidate or officeholder. 3-14 (b) The notice must include the full name and address of the 3-15 specific-purpose committee and of its campaign treasurer. 3-16 (c) The notice must be delivered not later than the later 3-17 of: 3-18 (1) the date the committee files its campaign 3-19 treasurer appointment; or 3-20 (2) the third day after the date the committee 3-21 determines it intends to accept contributions or make expenditures 3-22 for which notice under this section is required. 3-23 (d) A campaign treasurer who violates this section commits 3-24 an offense. An offense under this section is a Class A 3-25 misdemeanor. 3-26 Sec. 253.205. NOTICE TO CANDIDATE, OFFICEHOLDER, OR 3-27 COMMITTEE OF RECEIPT OF CONTRIBUTION. (a) The campaign treasurer 4-1 of a specific-purpose committee that receives a political 4-2 contribution or makes a direct campaign expenditure that is 4-3 considered under Section 253.202 or 253.203 to be a contribution to 4-4 a candidate or officeholder shall, not later than the fifth day 4-5 after the date the contribution is received or the expenditure is 4-6 made, deliver written notice of that fact to the affected candidate 4-7 or officeholder. 4-8 (b) A candidate or officeholder who receives a political 4-9 contribution covered by Section 253.201 shall, not later than the 4-10 fifth day after the date the contribution is received, deliver 4-11 written notice of that fact to the campaign treasurer of each 4-12 specific-purpose committee that notifies the candidate or 4-13 officeholder under Section 253.204 that the committee intends to 4-14 accept political contributions or make political expenditures on 4-15 the candidate's or officeholder's behalf. 4-16 (c) A notice under this section must include: 4-17 (1) the full name and address of the person receiving 4-18 the contribution and of the person's campaign treasurer, if any; 4-19 (2) the full name and address of the person making the 4-20 contribution; 4-21 (3) the date the contribution is received; and 4-22 (4) the amount of the contribution. 4-23 (d) A person who violates this section commits an offense. 4-24 An offense under this section is a Class A misdemeanor. 4-25 Sec. 253.206. RETURN OF EXCESS CONTRIBUTION. (a) A person 4-26 who receives a political contribution the acceptance of which would 4-27 violate Section 253.201 shall return the contribution to the 5-1 contributor not later than the 10th day after the date the 5-2 contribution is received. 5-3 (b) A contribution that is not returned as required by this 5-4 section is considered to be accepted. 5-5 SECTION 2. Section 254.034, Election Code, is amended by 5-6 adding Subsection (f) to read as follows: 5-7 (f) This section applies to a political contribution covered 5-8 by Subchapter G, Chapter 253, except as provided by Section 5-9 253.206. 5-10 SECTION 3. Subchapter C, Chapter 254, Election Code, is 5-11 amended by adding Section 254.0612 to read as follows: 5-12 Sec. 254.0612. ADDITIONAL CONTENTS OF REPORTS BY CERTAIN 5-13 CANDIDATES. In addition to the contents required by Sections 5-14 254.031 and 254.061, each report by a candidate for an office to 5-15 which Section 253.201 applies must include for each political 5-16 contribution of which the candidate receives notice under Section 5-17 253.205: 5-18 (1) the full name and address of the committee 5-19 receiving the contribution; 5-20 (2) the full name and address of the committee's 5-21 campaign treasurer; 5-22 (3) the full name and address of the person making the 5-23 contribution; 5-24 (4) the date the contribution is received; 5-25 (5) the amount of the contribution; and 5-26 (6) an indication of whether the committee accepted or 5-27 refused the contribution. 6-1 SECTION 4. Subchapter D, Chapter 254, Election Code, is 6-2 amended by adding Section 254.0912 to read as follows: 6-3 Sec. 254.0912. ADDITIONAL CONTENTS OF REPORTS BY CERTAIN 6-4 OFFICEHOLDERS. In addition to the contents required by Sections 6-5 254.031 and 254.091, each report by the holder of an office to 6-6 which Section 253.201 applies must include the contents prescribed 6-7 by Section 254.0612. 6-8 SECTION 5. Subchapter E, Chapter 254, Election Code, is 6-9 amended by adding Section 254.1212 to read as follows: 6-10 Sec. 254.1212. ADDITIONAL CONTENTS OF REPORTS OF CERTAIN 6-11 COMMITTEES. In addition to the contents required by Sections 6-12 254.031 and 254.121, each report by a specific-purpose committee 6-13 for supporting or opposing a candidate for or assisting a holder of 6-14 an office to which Section 253.201 applies must include the 6-15 contents prescribed by Section 254.0612. 6-16 SECTION 6. (a) This Act takes effect September 1, 1997. 6-17 (b) Subchapter G, Chapter 253, Election Code, as added by 6-18 this Act, applies only to a political contribution accepted or a 6-19 political expenditure made on or after September 1, 1997. A 6-20 political contribution accepted or a political expenditure made 6-21 before September 1, 1997, is governed by the law in effect at the 6-22 time the contribution was accepted or the expenditure was made and 6-23 is not aggregated with political contributions accepted or 6-24 political contributions made on or after that date. 6-25 (c) Sections 254.0612, 254.0912, and 254.1212, Election 6-26 Code, as added by this Act, apply to the reporting of a political 6-27 contribution accepted on or after September 1, 1997. The reporting 7-1 of a political contribution accepted before September 1, 1997, is 7-2 governed by the law in effect at the time the contribution was 7-3 accepted. 7-4 SECTION 7. The importance of this legislation and the 7-5 crowded condition of the calendars in both houses create an 7-6 emergency and an imperative public necessity that the 7-7 constitutional rule requiring bills to be read on three several 7-8 days in each house be suspended, and this rule is hereby suspended.