By Zbranek H.B. No. 2494 75R6005 ESH-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to regulating certain political contributions and direct 1-3 campaign expenditures made by individuals; providing criminal 1-4 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 G to read as follows: 1-8 SUBCHAPTER G. LIMITS ON CERTAIN CONTRIBUTIONS BY INDIVIDUALS 1-9 Sec. 253.201. APPLICABILITY OF SUBCHAPTER. This subchapter 1-10 applies only to a political contribution or political expenditure 1-11 in connection with a statewide, district, or county office other 1-12 than a judicial office covered by Subchapter F. 1-13 Sec. 253.202. DEFINITION. In this subchapter, "election 1-14 cycle" means the period beginning January 1 following a general 1-15 election for an office and continuing through December 31 following 1-16 the next general election for the office. 1-17 Sec. 253.203. CONTRIBUTION LIMITS. (a) An individual may 1-18 not knowingly make or authorize political contributions to a 1-19 candidate or officeholder that in the aggregate exceed $10,000 1-20 during an election cycle in which the candidate or officeholder is 1-21 involved. 1-22 (b) A person may not knowingly accept a political 1-23 contribution, and shall refuse a political contribution that is 1-24 received, in violation of Subsection (a). 2-1 (c) A person who violates this section commits an offense. 2-2 An offense under this section is a Class A misdemeanor. 2-3 Sec. 253.204. CONTRIBUTION TO CERTAIN COMMITTEES CONSIDERED 2-4 CONTRIBUTION TO CANDIDATE OR OFFICEHOLDER. For purposes of Section 2-5 253.203, a political contribution by an individual to a 2-6 specific-purpose committee for the purpose of supporting a 2-7 candidate, opposing the candidate's opponent, or assisting the 2-8 candidate as an officeholder is considered to be a political 2-9 contribution to the candidate or officeholder. 2-10 Sec. 253.205. DIRECT CAMPAIGN EXPENDITURES CONSIDERED 2-11 CONTRIBUTION TO CANDIDATE. For purposes of Section 253.203, a 2-12 direct campaign expenditure by an individual for the purpose of 2-13 supporting a candidate or opposing a candidate's opponent is 2-14 considered to be a political contribution to the candidate whom the 2-15 expenditure benefits. 2-16 Sec. 253.206. NOTICE TO CANDIDATES OR OFFICEHOLDERS OF 2-17 INTENT TO ACCEPT CONTRIBUTIONS. (a) The campaign treasurer of a 2-18 specific-purpose committee that intends to accept political 2-19 contributions for the purpose of supporting a candidate, opposing a 2-20 candidate's opponent, or assisting a candidate as an officeholder 2-21 shall deliver written notice of the committee's intent to the 2-22 candidate or officeholder. 2-23 (b) The notice must include the full name and address of the 2-24 specific-purpose committee and of its campaign treasurer. 2-25 (c) The notice must be delivered not later than the later 2-26 of: 2-27 (1) the date the committee files its campaign 3-1 treasurer appointment; or 3-2 (2) the third day after the date the committee 3-3 determines it intends to accept political contributions for which 3-4 notice under this section is required. 3-5 (d) A campaign treasurer who violates this section commits 3-6 an offense. An offense under this section is a Class A 3-7 misdemeanor. 3-8 Sec. 253.207. NOTICE TO CANDIDATE, OFFICEHOLDER, OR 3-9 COMMITTEE OF RECEIPT OF CONTRIBUTION. (a) The campaign treasurer 3-10 of a specific-purpose committee that receives a political 3-11 contribution that is considered under Section 253.204 to be a 3-12 political contribution to a candidate or officeholder shall, not 3-13 later than the fifth day after the date the contribution is 3-14 received, deliver written notice of that fact to the affected 3-15 candidate or officeholder. 3-16 (b) A candidate or officeholder who receives a notice under 3-17 Subsection (a) and who has previously accepted a political 3-18 contribution during the election cycle from the individual who is 3-19 the subject of the notice shall, not later than the fifth day after 3-20 the date the notice is received, deliver written notice of the 3-21 previously accepted contribution to the campaign treasurer who 3-22 delivered the notice. 3-23 (c) A notice under this section must include: 3-24 (1) the full name and address of the person receiving 3-25 the political contribution and of the person's campaign treasurer, 3-26 if any; 3-27 (2) the full name and address of the individual making 4-1 the contribution; 4-2 (3) the date the contribution is received or accepted, 4-3 as applicable; and 4-4 (4) the amount of the contribution. 4-5 (d) A person who violates this section commits an offense. 4-6 An offense under this section is a Class A misdemeanor. 4-7 Sec. 253.208. NOTICE TO CANDIDATE OF DIRECT CAMPAIGN 4-8 EXPENDITURE. (a) An individual who makes a direct campaign 4-9 expenditure that is considered under Section 253.205 to be a 4-10 political contribution to a candidate shall, not later than the 4-11 fifth day after the date the expenditure is made, deliver written 4-12 notice of that fact to the candidate whom the expenditure benefits. 4-13 (b) A notice under this section must include: 4-14 (1) the full name and address of the individual making 4-15 the direct campaign expenditure; 4-16 (2) the date the expenditure is made; and 4-17 (3) the amount of the expenditure. 4-18 (c) An individual who violates this section commits an 4-19 offense. An offense under this section is a Class A misdemeanor. 4-20 Sec. 253.209. RETURN OF EXCESS CONTRIBUTION. (a) A person 4-21 who receives a political contribution the acceptance of which would 4-22 violate Section 253.203 shall return the amount by which the 4-23 contribution would exceed the limit to the contributor not later 4-24 than the 10th day after the date the contribution is received. 4-25 (b) A political contribution that is not returned as 4-26 required by this section is considered to be accepted. 4-27 SECTION 2. Section 254.034, Election Code, is amended by 5-1 adding Subsection (f) to read as follows: 5-2 (f) This section applies to a political contribution covered 5-3 by Subchapter G, Chapter 253, except as provided by Section 5-4 253.209. 5-5 SECTION 3. Subchapter C, Chapter 254, Election Code, is 5-6 amended by adding Section 254.0612 to read as follows: 5-7 Sec. 254.0612. ADDITIONAL CONTENTS OF REPORTS OF CANDIDATES 5-8 FOR STATEWIDE, DISTRICT, OR COUNTY OFFICE. In addition to the 5-9 contents required by Sections 254.031 and 254.061, each report by a 5-10 candidate for an office covered by Subchapter G, Chapter 253, must 5-11 include: 5-12 (1) for each political contribution of which the 5-13 candidate receives notice under Section 253.207: 5-14 (A) the full name and address of the 5-15 specific-purpose committee receiving the contribution; 5-16 (B) the full name and address of the committee's 5-17 campaign treasurer; 5-18 (C) the full name and address of the individual 5-19 making the contribution; 5-20 (D) the date the contribution is received; 5-21 (E) the amount of the contribution; and 5-22 (F) an indication of whether the committee 5-23 accepted or refused the contribution; and 5-24 (2) for each direct campaign expenditure of which the 5-25 candidate receives notice under Section 253.208: 5-26 (A) the full name and address of the individual 5-27 making the expenditure; 6-1 (B) the date the expenditure is made; and 6-2 (C) the amount of the expenditure. 6-3 SECTION 4. Subchapter D, Chapter 254, Election Code, is 6-4 amended by adding Section 254.0912 to read as follows: 6-5 Sec. 254.0912. ADDITIONAL CONTENTS OF REPORTS OF STATEWIDE, 6-6 DISTRICT, AND COUNTY OFFICEHOLDERS. In addition to the contents 6-7 required by Sections 254.031 and 254.091, each report by an 6-8 officeholder covered by Subchapter G, Chapter 253, must include, 6-9 for each political contribution of which the officeholder receives 6-10 notice under Section 253.207: 6-11 (1) the full name and address of the specific-purpose 6-12 committee receiving the contribution; 6-13 (2) the full name and address of the committee's 6-14 campaign treasurer; 6-15 (3) the full name and address of the individual making 6-16 the contribution; 6-17 (4) the date the contribution is received; 6-18 (5) the amount of the contribution; and 6-19 (6) an indication of whether the committee accepted or 6-20 refused the contribution. 6-21 SECTION 5. Section 254.1211, Election Code, is amended to 6-22 read as follows: 6-23 Sec. 254.1211. ADDITIONAL CONTENTS OF REPORTS OF CERTAIN 6-24 COMMITTEES. (a) In addition to the contents required by Sections 6-25 254.031 and 254.121, each report by a specific-purpose committee 6-26 for supporting or opposing a candidate for or assisting a holder of 6-27 a judicial office covered by Subchapter F, Chapter 253, must 7-1 include the contents prescribed by Section 254.0611. 7-2 (b) In addition to the contents required by Sections 254.031 7-3 and 254.121, each report by a specific-purpose committee for 7-4 supporting or opposing a candidate for or assisting a holder of an 7-5 office covered by Subchapter G, Chapter 253, must include, for each 7-6 political contribution of which the committee receives notice under 7-7 Section 253.207: 7-8 (1) the full name and address of the candidate or 7-9 officeholder receiving the contribution; 7-10 (2) the full name and address of the candidate's or 7-11 officeholder's campaign treasurer, if any; 7-12 (3) the full name and address of the individual making 7-13 the contribution; 7-14 (4) the date the contribution is accepted; and 7-15 (5) the amount of the contribution. 7-16 SECTION 6. (a) This Act takes effect September 1, 1997. 7-17 (b) Subchapter G, Chapter 253, Election Code, as added by 7-18 this Act, applies only to a political contribution accepted or a 7-19 political expenditure made on or after September 1, 1997. A 7-20 political contribution accepted or a political expenditure made 7-21 before September 1, 1997, is governed by the law in effect at the 7-22 time the contribution was accepted or the expenditure was made and 7-23 is not aggregated with political contributions accepted or 7-24 political contributions made on or after that date. 7-25 (c) Sections 254.0612, 254.0912, and 254.1211(b), Election 7-26 Code, as added by this Act, apply to the reporting of a political 7-27 contribution accepted on or after September 1, 1997. The reporting 8-1 of a political contribution accepted before September 1, 1997, is 8-2 governed by the law in effect at the time the contribution was 8-3 accepted. 8-4 SECTION 7. The importance of this legislation and the 8-5 crowded condition of the calendars in both houses create an 8-6 emergency and an imperative public necessity that the 8-7 constitutional rule requiring bills to be read on three several 8-8 days in each house be suspended, and this rule is hereby suspended.