By Sadler H.B. No. 2943 75R9236 ESH-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to regulating certain political contributions, political 1-3 expenditures, and political advertising; 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. CONTRIBUTION AND EXPENDITURE LIMITS 1-9 FOR EXECUTIVE AND LEGISLATIVE OFFICES 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: 1-13 (1) a statewide office other than a judicial office; 1-14 (2) the office of state senator; 1-15 (3) the office of state representative; or 1-16 (4) the office of member, State Board of Education. 1-17 Sec. 253.202. DEFINITIONS. In this subchapter: 1-18 (1) "Complying candidate" means a candidate who files 1-19 a declaration of compliance under Section 253.213(a)(1). 1-20 (2) "Election cycle" means: 1-21 (A) the general primary election, runoff primary 1-22 election, if any, and general election for state and county 1-23 officers; or 1-24 (B) a special election and runoff election, if 2-1 any. 2-2 (3) "Noncomplying candidate" means a candidate who: 2-3 (A) files a declaration of intent to exceed the 2-4 limits on political expenditures under Section 253.213(a)(2); 2-5 (B) files a declaration of compliance under 2-6 Section 253.213(a)(1) but later exceeds the limits on political 2-7 expenditures; or 2-8 (C) fails to file a declaration of compliance 2-9 under Section 253.213(a)(1) or a declaration of intent under 2-10 Section 253.213(a)(2). 2-11 (4) "With respect to an election cycle" means: 2-12 (A) with regard to a political contribution that 2-13 is designated in writing for a particular election, the election 2-14 cycle that includes the election designated; or 2-15 (B) with regard to a political contribution that 2-16 is not designated in writing for a particular election or that is 2-17 designated as an officeholder contribution, the election cycle that 2-18 includes the next election for that office occurring after the 2-19 contribution is made. 2-20 Sec. 253.203. CONTRIBUTION LIMITS. (a) Except as provided 2-21 by Subsection (c), a person may not knowingly make or authorize 2-22 political contributions to a candidate or officeholder that, with 2-23 respect to an election cycle in which the candidate or officeholder 2-24 is involved, in the aggregate exceed: 2-25 (1) for a statewide office, $5,000; or 2-26 (2) for an office other than a statewide office, 2-27 $1,000. 3-1 (b) A person may not knowingly accept a political 3-2 contribution, and shall refuse a political contribution that is 3-3 received, in violation of Subsection (a). 3-4 (c) This section does not apply to a political contribution 3-5 made by a general-purpose committee. 3-6 (d) A person who violates this section commits an offense. 3-7 An offense under this section is a Class A misdemeanor. 3-8 Sec. 253.204. CONTRIBUTION BY SPOUSE OR CHILD CONSIDERED TO 3-9 BE CONTRIBUTION BY INDIVIDUAL. (a) For purposes of Section 3-10 253.203, a political contribution by the spouse or child of an 3-11 individual is considered to be a contribution by the individual. 3-12 (b) In this section, "child" means a person under 18 years 3-13 of age who is not and has not been married or who has not had the 3-14 disabilities of minority removed for general purposes. 3-15 Sec. 253.205. CONTRIBUTION LIMITS: GENERAL-PURPOSE 3-16 COMMITTEE. (a) A general-purpose committee may not knowingly make 3-17 or authorize political contributions to a candidate or officeholder 3-18 that, with respect to an election cycle in which the candidate or 3-19 officeholder is involved, in the aggregate exceed: 3-20 (1) for a statewide office, $10,000; or 3-21 (2) for an office other than a statewide office, 3-22 $1,000. 3-23 (b) A person may not knowingly accept a political 3-24 contribution, and shall refuse a political contribution that is 3-25 received, in violation of Subsection (a). 3-26 (c) A person who violates this section commits an offense. 3-27 An offense under this section is a Class A misdemeanor. 4-1 Sec. 253.206. AGGREGATE LIMIT ON CONTRIBUTIONS FROM 4-2 GENERAL-PURPOSE COMMITTEES. (a) A candidate or officeholder may 4-3 not knowingly accept a political contribution from a 4-4 general-purpose committee that, when aggregated with each other 4-5 political contribution from a general-purpose committee, exceeds: 4-6 (1) for the office of governor, $1,500,000; 4-7 (2) for a statewide office other than governor, 4-8 $300,000; 4-9 (3) for the office of state senator, $52,500; or 4-10 (4) for the office of state representative or member, 4-11 State Board of Education, $15,000. 4-12 (b) The limit prescribed by Subsection (a) applies with 4-13 respect to an election cycle in which the candidate or officeholder 4-14 is involved. 4-15 (c) A person who violates this section commits an offense. 4-16 An offense under this section is a Class A misdemeanor. 4-17 Sec. 253.207. CONTRIBUTION TO CERTAIN COMMITTEES CONSIDERED 4-18 CONTRIBUTION TO CANDIDATE OR OFFICEHOLDER. For purposes of 4-19 Sections 253.203, 253.205, and 253.206, a political contribution to 4-20 a specific-purpose committee for the purpose of supporting a 4-21 candidate, opposing the candidate's opponent, or assisting the 4-22 candidate as an officeholder is considered to be a political 4-23 contribution to the candidate or officeholder. 4-24 Sec. 253.208. CERTAIN DIRECT CAMPAIGN EXPENDITURES 4-25 CONSIDERED CONTRIBUTION TO CANDIDATE. (a) For purposes of 4-26 Sections 253.203, 253.205, and 253.206, a direct campaign 4-27 expenditure for the purpose of supporting a candidate or opposing a 5-1 candidate's opponent made by a person other than a specific-purpose 5-2 committee is considered to be a political contribution to the 5-3 candidate whom the expenditure benefits unless the person making 5-4 the expenditure or the person's campaign treasurer, if any, in an 5-5 affidavit filed with the commission, states that the expenditure is 5-6 not made with the cooperation or prior consent of, in consultation 5-7 with, or at the suggestion of: 5-8 (1) the candidate whom the expenditure benefits; 5-9 (2) a specific-purpose committee for supporting the 5-10 candidate or opposing the candidate's opponent; or 5-11 (3) a person acting with the candidate's knowledge and 5-12 consent. 5-13 (b) An affidavit under Subsection (a) must be filed with the 5-14 report under Chapter 254 in which the direct campaign expenditure 5-15 is required to be reported. 5-16 Sec. 253.209. NOTICE TO CANDIDATE OR OFFICEHOLDER OF INTENT 5-17 TO ACCEPT CONTRIBUTIONS OR MAKE EXPENDITURES. (a) The campaign 5-18 treasurer of a specific-purpose committee that intends to accept 5-19 political contributions or make political expenditures for the 5-20 purpose of supporting a candidate covered by this subchapter, 5-21 opposing such a candidate's opponent, or assisting such a candidate 5-22 as an officeholder shall deliver written notice of the committee's 5-23 intent to the candidate or officeholder. 5-24 (b) The notice must include the full name and address of the 5-25 specific-purpose committee and of its campaign treasurer. 5-26 (c) The notice must be delivered not later than the later 5-27 of: 6-1 (1) the date the committee files its campaign 6-2 treasurer appointment; or 6-3 (2) the third day after the date the committee 6-4 determines it intends to accept political contributions or make 6-5 political expenditures for which notice under this section is 6-6 required. 6-7 (d) A campaign treasurer who violates this section commits 6-8 an offense. An offense under this section is a Class A 6-9 misdemeanor. 6-10 Sec. 253.210. NOTICE TO CANDIDATE, OFFICEHOLDER, OR 6-11 COMMITTEE OF RECEIPT OF CONTRIBUTION. (a) The campaign treasurer 6-12 of a specific-purpose committee that receives a political 6-13 contribution that is considered under Section 253.207 to be a 6-14 political contribution to a candidate or officeholder shall, not 6-15 later than the fifth day after the date the contribution is 6-16 received, deliver written notice of that fact to the affected 6-17 candidate or officeholder. 6-18 (b) A candidate or officeholder who receives a political 6-19 contribution shall, not later than the fifth day after the date the 6-20 contribution is received, deliver written notice of that fact to 6-21 the campaign treasurer of each specific-purpose committee that 6-22 notifies the candidate or officeholder under Section 253.209 that 6-23 the committee intends to accept political contributions or make 6-24 political expenditures on the candidate's or officeholder's behalf. 6-25 (c) A notice under this section must include: 6-26 (1) the full name and address of the person receiving 6-27 the political contribution and of the person's campaign treasurer, 7-1 if any; 7-2 (2) the full name and address of the person making the 7-3 contribution; 7-4 (3) the date the contribution is received; and 7-5 (4) the amount of the contribution. 7-6 (d) A person who violates this section commits an offense. 7-7 An offense under this section is a Class A misdemeanor. 7-8 Sec. 253.211. NOTICE TO CANDIDATE OF DIRECT CAMPAIGN 7-9 EXPENDITURE. (a) A person who makes a direct campaign expenditure 7-10 that is considered under Section 253.208 to be a political 7-11 contribution to a candidate shall, not later than the fifth day 7-12 after the date the expenditure is made, deliver written notice of 7-13 that fact to the candidate whom the expenditure benefits. 7-14 (b) A notice under this section must include: 7-15 (1) the full name and address of the person making the 7-16 direct campaign expenditure and of the person's campaign treasurer, 7-17 if any; 7-18 (2) the date the expenditure is made; 7-19 (3) the amount of the expenditure; and 7-20 (4) if applicable, a copy of the affidavit to be filed 7-21 as required by Section 253.208. 7-22 (c) A person who violates this section commits an offense. 7-23 An offense under this section is a Class A misdemeanor. 7-24 Sec. 253.212. RETURN OF EXCESS CONTRIBUTION. (a) A person 7-25 who receives a political contribution, the acceptance of which 7-26 would violate Section 253.203, 253.205, or 253.206, shall return 7-27 the contribution to the contributor not later than the 10th day 8-1 after the date the contribution is received. 8-2 (b) A political contribution that is not returned as 8-3 required by this section is considered to be accepted. 8-4 Sec. 253.213. VOLUNTARY COMPLIANCE. (a) Not later than the 8-5 10th day after the date a person becomes a candidate for an office 8-6 covered by this subchapter, the person shall file with the 8-7 commission: 8-8 (1) a sworn declaration of compliance stating that the 8-9 person voluntarily agrees to comply with the limits on political 8-10 expenditures prescribed by this subchapter; or 8-11 (2) a written declaration of the person's intent to 8-12 make political expenditures that exceed the limits prescribed by 8-13 this subchapter. 8-14 (b) A candidate may not knowingly accept a campaign 8-15 contribution or make or authorize a campaign expenditure before the 8-16 candidate files a declaration under Subsection (a). 8-17 (c) A person who violates Subsection (b) commits an offense. 8-18 An offense under this section is a Class A misdemeanor. 8-19 Sec. 253.214. EFFECT OF NONCOMPLYING CANDIDATE. (a) A 8-20 complying candidate or a specific-purpose committee for supporting 8-21 a complying candidate is not required to comply with the limits on 8-22 political contributions and political expenditures prescribed by 8-23 this subchapter if another person becomes a candidate for the same 8-24 office and: 8-25 (1) files a declaration of intent to exceed the limits 8-26 on political expenditures under Section 253.213(a)(2); 8-27 (2) fails to file a declaration of compliance under 9-1 Section 253.213(a)(1) or a declaration of intent under Section 9-2 253.213(a)(2); or 9-3 (3) files a declaration of compliance under Section 9-4 253.213(a)(1) but later exceeds the limits on political 9-5 expenditures. 9-6 (b) The executive director of the commission shall issue an 9-7 order suspending the limits on political contributions and 9-8 political expenditures for a specific office not later than the 9-9 fifth day after the date the executive director determines that: 9-10 (1) a person has become a candidate for that office 9-11 and: 9-12 (A) has filed a declaration of intent to exceed 9-13 the limits on political expenditures under Section 253.213(a)(2); 9-14 or 9-15 (B) has failed to file a declaration of 9-16 compliance under Section 253.213(a)(1) or a declaration of intent 9-17 under Section 253.213(a)(2); or 9-18 (2) a complying candidate for that office has exceeded 9-19 the limit on political expenditures prescribed by this subchapter. 9-20 Sec. 253.215. BENEFIT TO COMPLYING CANDIDATE. (a) A 9-21 complying candidate is entitled to state on political advertising 9-22 as provided by Section 255.009 that the candidate complies with the 9-23 voluntary limits on political expenditures prescribed by this 9-24 subchapter, regardless of whether the limits on political 9-25 contributions and political expenditures are suspended under 9-26 Section 253.214. 9-27 (b) A noncomplying candidate is not entitled to the benefit 10-1 provided by this section. 10-2 Sec. 253.216. EXPENDITURE LIMITS. (a) A complying 10-3 candidate may not knowingly make or authorize political 10-4 expenditures that, with respect to an election cycle in which the 10-5 candidate is involved, in the aggregate exceed: 10-6 (1) for the office of governor, $10 million; 10-7 (2) for a statewide office other than governor, $2 10-8 million; 10-9 (3) for the office of state senator, $350,000; or 10-10 (4) for the office of state representative or member, 10-11 State Board of Education, $100,000. 10-12 (b) A person who violates this section commits an offense. 10-13 An offense under this section is a Class A misdemeanor. 10-14 Sec. 253.217. EXPENDITURE BY CERTAIN COMMITTEES CONSIDERED 10-15 EXPENDITURE BY CANDIDATE. (a) For purposes of Section 253.216, a 10-16 political expenditure by a specific-purpose committee for the 10-17 purpose of supporting a candidate, opposing the candidate's 10-18 opponent, or assisting the candidate as an officeholder is 10-19 considered to be a political expenditure by the candidate unless 10-20 the candidate, in an affidavit filed with the commission, states 10-21 that the expenditure is not made with the cooperation or prior 10-22 consent of, in consultation with, or at the suggestion of: 10-23 (1) the candidate; 10-24 (2) a specific-purpose committee for supporting the 10-25 candidate or opposing the candidate's opponent; or 10-26 (3) a person acting with the candidate's knowledge and 10-27 consent. 11-1 (b) This section applies only to a political expenditure of 11-2 which the candidate or officeholder has notice. 11-3 (c) A candidate or officeholder shall file an affidavit 11-4 under this section with the next report the candidate or 11-5 officeholder is required to file under Chapter 254 following notice 11-6 of the political expenditure. 11-7 Sec. 253.218. PARTY CONTRIBUTION TO OR DIRECT EXPENDITURE ON 11-8 BEHALF OF COMPLYING CANDIDATE PROHIBITED. (a) A general-purpose 11-9 committee established by a political party or by the state or 11-10 county executive committee of a political party may not knowingly 11-11 authorize or make: 11-12 (1) a political contribution to a complying candidate 11-13 or a specific-purpose committee for supporting a complying 11-14 candidate or opposing a complying candidate; or 11-15 (2) a direct campaign expenditure that benefits a 11-16 complying candidate. 11-17 (b) Subsection (a)(2) does not apply to a political 11-18 expenditure for: 11-19 (1) a generic get-out-the-vote campaign; or 11-20 (2) a written list of two or more candidates that: 11-21 (A) identifies the party's candidates by name 11-22 and office sought, office held, or photograph; and 11-23 (B) is not broadcast, cablecast, published in a 11-24 newspaper or magazine, or placed on a billboard. 11-25 (c) A person who violates this section commits an offense. 11-26 An offense under this section is a Class A misdemeanor. 11-27 SECTION 2. Section 254.034, Election Code, is amended by 12-1 adding Subsection (f) to read as follows: 12-2 (f) This section applies to a political contribution covered 12-3 by Subchapter G, Chapter 253, except as provided by Section 12-4 253.212. 12-5 SECTION 3. Subchapter C, Chapter 254, Election Code, is 12-6 amended by adding Section 254.0612 to read as follows: 12-7 Sec. 254.0612. ADDITIONAL CONTENTS OF REPORTS BY EXECUTIVE 12-8 AND LEGISLATIVE CANDIDATES. In addition to the contents required 12-9 by Sections 254.031 and 254.061, each report by a candidate for an 12-10 office covered by Subchapter G, Chapter 253, must include: 12-11 (1) for each political contribution of which the 12-12 candidate receives notice under Section 253.210: 12-13 (A) the full name and address of the 12-14 specific-purpose committee receiving the contribution; 12-15 (B) the full name and address of the committee's 12-16 campaign treasurer; 12-17 (C) the full name and address of the person 12-18 making the contribution; 12-19 (D) the date the contribution is received; 12-20 (E) the amount of the contribution; and 12-21 (F) an indication of whether the committee 12-22 accepted or refused the contribution; and 12-23 (2) for each direct campaign expenditure of which the 12-24 candidate receives notice under Section 253.211: 12-25 (A) the full name and address of the person 12-26 making the expenditure; 12-27 (B) the full name and address of the person's 13-1 campaign treasurer, if any; 13-2 (C) the date the expenditure is made; and 13-3 (D) the amount of the expenditure. 13-4 SECTION 4. Subchapter D, Chapter 254, Election Code, is 13-5 amended by adding Section 254.0912 to read as follows: 13-6 Sec. 254.0912. ADDITIONAL CONTENTS OF REPORTS BY EXECUTIVE 13-7 AND LEGISLATIVE OFFICEHOLDERS. In addition to the contents 13-8 required by Sections 254.031 and 254.091, each report by an 13-9 officeholder covered by Subchapter G, Chapter 253, must include, 13-10 for each political contribution of which the officeholder receives 13-11 notice under Section 253.210: 13-12 (1) the full name and address of the specific-purpose 13-13 committee receiving the contribution; 13-14 (2) the full name and address of the committee's 13-15 campaign treasurer; 13-16 (3) the full name and address of the person making the 13-17 contribution; 13-18 (4) the date the contribution is received; 13-19 (5) the amount of the contribution; and 13-20 (6) an indication of whether the committee accepted or 13-21 refused the contribution. 13-22 SECTION 5. Subchapter E, Chapter 254, Election Code, is 13-23 amended by adding Section 254.1212 to read as follows: 13-24 Sec. 254.1212. ADDITIONAL CONTENTS OF REPORTS OF COMMITTEES 13-25 SUPPORTING, OPPOSING, OR ASSISTING EXECUTIVE OR LEGISLATIVE 13-26 CANDIDATES AND OFFICEHOLDERS. In addition to the contents required 13-27 by Sections 254.031 and 254.121, each report by a specific-purpose 14-1 committee for supporting or opposing a candidate for or assisting a 14-2 holder of an office covered by Subchapter G, Chapter 253, must 14-3 include, for each political contribution of which the committee 14-4 receives notice under Section 253.210: 14-5 (1) the full name and address of the candidate or 14-6 officeholder receiving the contribution; 14-7 (2) the full name and address of the candidate's or 14-8 officeholder's campaign treasurer, if any; 14-9 (3) the full name and address of the person making the 14-10 contribution; 14-11 (4) the date the contribution is received; 14-12 (5) the amount of the contribution; and 14-13 (6) an indication of whether the candidate or 14-14 officeholder accepted or refused the contribution. 14-15 SECTION 6. Chapter 255, Election Code, is amended by adding 14-16 Sections 255.009 and 255.010 to read as follows: 14-17 Sec. 255.009. DISCLOSURE ON POLITICAL ADVERTISING FOR 14-18 EXECUTIVE AND LEGISLATIVE OFFICES. (a) This section applies only 14-19 to a candidate or specific-purpose committee covered by Subchapter 14-20 G, Chapter 253. 14-21 (b) Political advertising by a complying candidate as 14-22 defined by Section 253.202 or a specific-purpose committee for 14-23 supporting such a candidate may include the following statement: 14-24 "Political advertising paid for by (name of candidate or committee) 14-25 in compliance with the voluntary expenditure limits of the Texas 14-26 Election Code." 14-27 (c) Political advertising by a complying candidate or a 15-1 specific-purpose committee for supporting such a candidate that 15-2 does not contain the statement prescribed by Subsection (b) must 15-3 comply with Section 255.001. 15-4 (d) Political advertising by a noncomplying candidate as 15-5 defined by Section 253.202 or a specific-purpose committee for 15-6 supporting such a candidate must include the following statement: 15-7 "Political advertising paid for by (name of candidate or 15-8 committee), (who or which) has rejected the voluntary expenditure 15-9 limits of the Texas Election Code." 15-10 (e) The commission shall adopt rules providing for: 15-11 (1) the minimum size of the disclosure required by 15-12 this section in political advertising that appears on television or 15-13 in writing; and 15-14 (2) the minimum duration of the disclosure required by 15-15 this section in political advertising that appears on television or 15-16 radio. 15-17 (f) A person who violates this section or a rule adopted 15-18 under this section commits an offense. An offense under this 15-19 section is a Class A misdemeanor. 15-20 Sec. 255.010. RESTRICTIONS ON CERTAIN TELEPHONE AND 15-21 ELECTRONIC POLLING. (a) Not later than the fifth day before the 15-22 date a person conducts a telephone or electronic poll in connection 15-23 with a campaign for an office covered by Subchapter G, Chapter 253, 15-24 the person shall file with the commission the script that will be 15-25 used in conducting the poll. The commission may not take any 15-26 action in connection with a script filed under this subsection 15-27 other than making the script available to the public on request. 16-1 (b) At the beginning of a telephone conversation or 16-2 electronic communication with a polling subject, the pollster 16-3 shall: 16-4 (1) state the pollster's full name; 16-5 (2) identify the person conducting the poll and, if 16-6 that person is not a candidate or political committee, identify the 16-7 candidate or political committee on whose behalf the person is 16-8 conducting the poll; 16-9 (3) state the location from which the person is 16-10 calling or otherwise communicating; and 16-11 (4) state the telephone number of the location from 16-12 which the person is calling or otherwise communicating. 16-13 (c) In conducting the poll, a pollster may not ask a 16-14 question or make a statement that is not included in the script 16-15 filed under Subsection (a), except in response to a question from 16-16 the polling subject. 16-17 (d) This section applies only to a telephone or electronic 16-18 poll conducted by a person, including a news organization, that is: 16-19 (1) affiliated or aligned with a candidate, political 16-20 committee, political party, or campaign consultant; or 16-21 (2) compensated by a candidate, political committee, 16-22 political party, or campaign consultant for conducting the poll. 16-23 (e) A person who violates this section commits an offense. 16-24 An offense under this section is a Class B misdemeanor. 16-25 (f) In this section, "pollster" means the person who places 16-26 a telephone call or electronic communication and asks questions of 16-27 a polling subject. 17-1 SECTION 7. (a) Subchapter G, Chapter 253, Election Code, as 17-2 added by this Act, applies only to a political contribution 17-3 accepted or a political expenditure made on or after September 1, 17-4 1997. A political contribution accepted or a political expenditure 17-5 made before that date is governed by the law in effect at the time 17-6 the contribution was accepted or the expenditure was made and is 17-7 not aggregated with political contributions accepted or political 17-8 expenditures made on or after that date. 17-9 (b) Sections 254.0612, 254.0912, and 254.1212, Election 17-10 Code, as added by this Act, apply only to the reporting of a 17-11 political contribution accepted on or after September 1, 1997. The 17-12 reporting of a political contribution accepted before that date is 17-13 governed by the law in effect at the time the contribution was 17-14 accepted, and that law is continued in effect for that purpose. 17-15 SECTION 8. This Act takes effect September 1, 1997. 17-16 SECTION 9. The importance of this legislation and the 17-17 crowded condition of the calendars in both houses create an 17-18 emergency and an imperative public necessity that the 17-19 constitutional rule requiring bills to be read on three several 17-20 days in each house be suspended, and this rule is hereby suspended.