By Zbranek H.B. No. 2495 75R6007 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 general-purpose political committees; 1-4 providing criminal 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 1-9 GENERAL-PURPOSE COMMITTEES 1-10 Sec. 253.201. APPLICABILITY OF SUBCHAPTER. This subchapter 1-11 applies only to a political contribution or political expenditure 1-12 in connection with a statewide, district, or county office other 1-13 than a judicial office covered by Subchapter F. 1-14 Sec. 253.202. DEFINITION. In this subchapter, "election 1-15 cycle" means the period beginning January 1 following a general 1-16 election for an office and continuing through December 31 following 1-17 the next general election for the office. 1-18 Sec. 253.203. CONTRIBUTION LIMITS. (a) A general-purpose 1-19 committee may not knowingly make or authorize political 1-20 contributions to a candidate or officeholder that in the aggregate 1-21 exceed $10,000 during an election cycle in which the candidate or 1-22 officeholder is involved. 1-23 (b) A person may not knowingly accept a political 1-24 contribution, and shall refuse a political contribution that is 2-1 received, in violation of Subsection (a). 2-2 (c) A person who violates this section commits an offense. 2-3 An offense under this section is a Class A misdemeanor. 2-4 Sec. 253.204. CONTRIBUTION TO CERTAIN COMMITTEES CONSIDERED 2-5 CONTRIBUTION TO CANDIDATE OR OFFICEHOLDER. For purposes of Section 2-6 253.203, a political contribution by a general-purpose committee to 2-7 a specific-purpose committee for the purpose of supporting a 2-8 candidate, opposing the candidate's opponent, or assisting the 2-9 candidate as an officeholder is considered to be a political 2-10 contribution to the candidate or officeholder. 2-11 Sec. 253.205. CERTAIN DIRECT CAMPAIGN EXPENDITURES 2-12 CONSIDERED CONTRIBUTION TO CANDIDATE. (a) For purposes of Section 2-13 253.203, a direct campaign expenditure by a general-purpose 2-14 committee for the purpose of supporting a candidate or opposing a 2-15 candidate's opponent is considered to be a political contribution 2-16 to the candidate whom the expenditure benefits. 2-17 (b) Subsection (a) does not apply to: 2-18 (1) a direct campaign expenditure described by Section 2-19 253.098; or 2-20 (2) a direct campaign expenditure made only for the 2-21 purpose of communicating directly with the members of or the 2-22 families of members of: 2-23 (A) the general-purpose committee; or 2-24 (B) the entity that directly establishes, 2-25 administers, or controls the general-purpose committee. 2-26 Sec. 253.206. NOTICE TO CANDIDATES OR OFFICEHOLDERS OF 2-27 INTENT TO ACCEPT CONTRIBUTIONS. (a) The campaign treasurer of a 3-1 specific-purpose committee that intends to accept political 3-2 contributions for the purpose of supporting a candidate, opposing a 3-3 candidate's opponent, or assisting a candidate as an officeholder 3-4 shall deliver written notice of the committee's intent to the 3-5 candidate or officeholder. 3-6 (b) The notice must include the full name and address of the 3-7 specific-purpose committee and of its campaign treasurer. 3-8 (c) The notice must be delivered not later than the later 3-9 of: 3-10 (1) the date the committee files its campaign 3-11 treasurer appointment; or 3-12 (2) the third day after the date the committee 3-13 determines it intends to accept political contributions for which 3-14 notice under this section is required. 3-15 (d) A campaign treasurer who violates this section commits 3-16 an offense. An offense under this section is a Class A 3-17 misdemeanor. 3-18 Sec. 253.207. NOTICE TO CANDIDATE, OFFICEHOLDER, OR 3-19 COMMITTEE OF RECEIPT OF CONTRIBUTION. (a) The campaign treasurer 3-20 of a specific-purpose committee that receives a political 3-21 contribution that is considered under Section 253.204 to be a 3-22 political contribution to a candidate or officeholder shall, not 3-23 later than the fifth day after the date the contribution is 3-24 received, deliver written notice of that fact to the affected 3-25 candidate or officeholder. 3-26 (b) A candidate or officeholder who receives a notice under 3-27 Subsection (a) and who has previously accepted a political 4-1 contribution during the election cycle from the general-purpose 4-2 committee that is the subject of the notice shall, not later than 4-3 the fifth day after the date the notice is received, deliver 4-4 written notice of the previously accepted contribution to the 4-5 campaign treasurer who delivered the notice. 4-6 (c) A notice under this section must include: 4-7 (1) the full name and address of the person receiving 4-8 the political contribution and of the person's campaign treasurer, 4-9 if any; 4-10 (2) the full name and address of the general-purpose 4-11 committee making the contribution and of the committee's campaign 4-12 treasurer; 4-13 (3) the date the contribution is received or accepted, 4-14 as applicable; and 4-15 (4) the amount of the contribution. 4-16 (d) A person who violates this section commits an offense. 4-17 An offense under this section is a Class A misdemeanor. 4-18 Sec. 253.208. NOTICE TO CANDIDATE OF DIRECT CAMPAIGN 4-19 EXPENDITURE. (a) The campaign treasurer of a general-purpose 4-20 committee that makes a direct campaign expenditure that is 4-21 considered under Section 253.205 to be a political contribution to 4-22 a candidate shall, not later than the fifth day after the date the 4-23 expenditure is made, deliver written notice of that fact to the 4-24 candidate whom the expenditure benefits. 4-25 (b) A notice under this section must include: 4-26 (1) the full name and address of the committee making 4-27 the direct campaign expenditure and of the committee's campaign 5-1 treasurer; 5-2 (2) the date the expenditure is made; and 5-3 (3) the amount of the expenditure. 5-4 (c) A campaign treasurer who violates this section commits 5-5 an offense. An offense under this section is a Class A 5-6 misdemeanor. 5-7 Sec. 253.209. RETURN OF EXCESS CONTRIBUTION. (a) A person 5-8 who receives a political contribution the acceptance of which would 5-9 violate Section 253.203 shall return the amount by which the 5-10 contribution would exceed the limit to the contributor not later 5-11 than the 10th day after the date the contribution is received. 5-12 (b) A political contribution that is not returned as 5-13 required by this section is considered to be accepted. 5-14 SECTION 2. Section 254.034, Election Code, is amended by 5-15 adding Subsection (f) to read as follows: 5-16 (f) This section applies to a political contribution covered 5-17 by Subchapter G, Chapter 253, except as provided by Section 5-18 253.209. 5-19 SECTION 3. Subchapter C, Chapter 254, Election Code, is 5-20 amended by adding Section 254.0612 to read as follows: 5-21 Sec. 254.0612. ADDITIONAL CONTENTS OF REPORTS OF CANDIDATES 5-22 FOR STATEWIDE, DISTRICT, OR COUNTY OFFICE. In addition to the 5-23 contents required by Sections 254.031 and 254.061, each report by a 5-24 candidate for an office covered by Subchapter G, Chapter 253, must 5-25 include: 5-26 (1) for each political contribution of which the 5-27 candidate receives notice under Section 253.207: 6-1 (A) the full name and address of the 6-2 specific-purpose committee receiving the contribution; 6-3 (B) the full name and address of the 6-4 specific-purpose committee's campaign treasurer; 6-5 (C) the full name and address of the 6-6 general-purpose committee making the contribution; 6-7 (D) the full name and address of the 6-8 general-purpose committee's campaign treasurer; 6-9 (E) the date the contribution is received; 6-10 (F) the amount of the contribution; and 6-11 (G) an indication of whether the 6-12 specific-purpose committee accepted or refused the contribution; 6-13 and 6-14 (2) for each direct campaign expenditure of which the 6-15 candidate receives notice under Section 253.208: 6-16 (A) the full name and address of the 6-17 general-purpose committee making the expenditure; 6-18 (B) the full name and address of the 6-19 general-purpose committee's campaign treasurer; 6-20 (C) the date the expenditure is made; and 6-21 (D) the amount of the expenditure. 6-22 SECTION 4. Subchapter D, Chapter 254, Election Code, is 6-23 amended by adding Section 254.0912 to read as follows: 6-24 Sec. 254.0912. ADDITIONAL CONTENTS OF REPORTS OF STATEWIDE, 6-25 DISTRICT, AND COUNTY OFFICEHOLDERS. In addition to the contents 6-26 required by Sections 254.031 and 254.091, each report by an 6-27 officeholder covered by Subchapter G, Chapter 253, must include, 7-1 for each political contribution of which the officeholder receives 7-2 notice under Section 253.207: 7-3 (1) the full name and address of the specific-purpose 7-4 committee receiving the contribution; 7-5 (2) the full name and address of the specific-purpose 7-6 committee's campaign treasurer; 7-7 (3) the full name and address of the general-purpose 7-8 committee making the contribution; 7-9 (4) the full name and address of the general-purpose 7-10 committee's campaign treasurer; 7-11 (5) the date the contribution is received; 7-12 (6) the amount of the contribution; and 7-13 (7) an indication of whether the specific-purpose 7-14 committee accepted or refused the contribution. 7-15 SECTION 5. Section 254.1211, Election Code, is amended to 7-16 read as follows: 7-17 Sec. 254.1211. ADDITIONAL CONTENTS OF REPORTS OF CERTAIN 7-18 COMMITTEES. (a) In addition to the contents required by Sections 7-19 254.031 and 254.121, each report by a specific-purpose committee 7-20 for supporting or opposing a candidate for or assisting a holder of 7-21 a judicial office covered by Subchapter F, Chapter 253, must 7-22 include the contents prescribed by Section 254.0611. 7-23 (b) In addition to the contents required by Sections 254.031 7-24 and 254.121, each report by a specific-purpose committee for 7-25 supporting or opposing a candidate for or assisting a holder of an 7-26 office covered by Subchapter G, Chapter 253, must include, for each 7-27 political contribution of which the committee receives notice under 8-1 Section 253.207: 8-2 (1) the full name and address of the candidate or 8-3 officeholder receiving the contribution; 8-4 (2) the full name and address of the candidate or 8-5 officeholder's campaign treasurer, if any; 8-6 (3) the full name and address of the general-purpose 8-7 committee making the contribution; 8-8 (4) the full name and address of the general-purpose 8-9 committee's campaign treasurer; 8-10 (5) the date the contribution is accepted; and 8-11 (6) the amount of the contribution. 8-12 SECTION 6. (a) This Act takes effect September 1, 1997. 8-13 (b) Subchapter G, Chapter 253, Election Code, as added by 8-14 this Act, applies only to a political contribution accepted or a 8-15 political expenditure made on or after September 1, 1997. A 8-16 political contribution accepted or a political expenditure made 8-17 before September 1, 1997, is governed by the law in effect at the 8-18 time the contribution was accepted or the expenditure was made and 8-19 is not aggregated with political contributions accepted or 8-20 political contributions made on or after that date. 8-21 (c) Sections 254.0612, 254.0912, and 254.1211(b), Election 8-22 Code, as added by this Act, apply to the reporting of a political 8-23 contribution accepted on or after September 1, 1997. The reporting 8-24 of a political contribution accepted before September 1, 1997, is 8-25 governed by the law in effect at the time the contribution was 8-26 accepted. 8-27 SECTION 7. The importance of this legislation and the 9-1 crowded condition of the calendars in both houses create an 9-2 emergency and an imperative public necessity that the 9-3 constitutional rule requiring bills to be read on three several 9-4 days in each house be suspended, and this rule is hereby suspended.