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.