By Zbranek                                      H.B. No. 2675

      75R6693 ESH-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the disposition of unexpended political contributions

 1-3     by certain unsuccessful candidates; providing criminal penalties.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subchapter H, Chapter 254, Election Code, is

 1-6     amended by adding Section 254.206 to read as follows:

 1-7           Sec. 254.206.  DISPOSITION OF CONTRIBUTIONS BY UNSUCCESSFUL

 1-8     CANDIDATE FOR STATEWIDE OR DISTRICT OFFICE; REPORT.  (a)  An

 1-9     unsuccessful candidate for a statewide or district office may not

1-10     retain political contributions or interest or other income earned

1-11     on the contributions after January 31 of the year following the

1-12     year in which the election that the candidate lost occurs.

1-13           (b)  Subsection (a) applies only to a political contribution

1-14     accepted before January 1 of the year following the year in which

1-15     the election that the candidate lost occurs.

1-16           (c)  If a person becomes a candidate for a statewide or

1-17     district office before the date prescribed by Subsection (a), the

1-18     prohibition prescribed by that subsection does not apply until the

1-19     person is again an unsuccessful candidate for such an office.

1-20           (d)  Not later than the date prescribed by Subsection (a), an

1-21     unsuccessful candidate for a statewide or district office shall

1-22     remit any unexpended political contributions to a recognized

1-23     tax-exempt, charitable organization formed for educational,

1-24     religious, or scientific purposes.

 2-1           (e)  Not later than the 30th day after the date prescribed by

 2-2     Subsection (a), the unsuccessful candidate shall file with the

 2-3     commission a report of the disposition of the unexpended

 2-4     contributions.  The report must include:

 2-5                 (1)  the person's full name and address;

 2-6                 (2)  the full name and address of each charitable

 2-7     organization to which a payment from unexpended political

 2-8     contributions is made; and

 2-9                 (3)  the date and amount of each payment reported under

2-10     Subdivision (2).

2-11           (f)  Sections 254.201-254.205 do not apply to the retention,

2-12     disposition, or reporting of unexpended political contributions by

2-13     a candidate to whom this section applies.

2-14           (g)  A person who violates Subsection (a) commits an offense.

2-15     An offense under this section is a Class A misdemeanor.

2-16           SECTION 2.  Subchapter B, Chapter 253, Election Code, is

2-17     amended by adding Section 253.040 to read as follows:

2-18           Sec. 253.040.  ACCEPTANCE OF CONTRIBUTIONS BY CERTAIN

2-19     UNSUCCESSFUL CANDIDATES LIMITED.  (a)  An unsuccessful candidate

2-20     for a statewide or district office may not knowingly accept a

2-21     political contribution after December 31 following the election

2-22     that the person lost unless the person intends to use the

2-23     contribution in connection with an election other than the election

2-24     that the person lost.

2-25           (b)  A person who violates this section commits an offense.

2-26     An offense under this section is a Class A misdemeanor.

2-27           SECTION 3.  This Act takes effect September 1, 1997.

 3-1           SECTION 4.  Section 254.206, Election Code, as added by this

 3-2     Act, applies only to the retention, disposition, and reporting of a

 3-3     political contribution accepted on or after September 1, 1997.  The

 3-4     retention, disposition, and reporting of a political contribution

 3-5     accepted before September 1, 1997, are governed by the law in

 3-6     effect at the time the contribution was accepted, and the former

 3-7     law is continued in effect for that purpose.

 3-8           SECTION 5.  The importance of this legislation and the

 3-9     crowded condition of the calendars in both houses create an

3-10     emergency and an imperative public necessity that the

3-11     constitutional rule requiring bills to be read on three several

3-12     days in each house be suspended, and this rule is hereby suspended.