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.