Bill not drafted by TLC or Senate E&E.
Line and page numbers may not match official copy.
By Burnam H.B. No. 3455
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to reporting political contributions and expenditures.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 251.001, Election Code, is amended by
1-5 adding Subdivision (210) to read as follows:
1-6 (21) "Legislative district office" means an office
1-7 maintained by a member of the legislature outside of Travis County
1-8 that is paid for with state funds or officeholder contributions for
1-9 a combination of state funds and officeholder contributions.
1-10 SECTION 2. Section 251.033, Election Code, is amended by
1-11 adding Subsection (c) to read as follows:
1-12 (c) A person is not relieved of the duty to file reports
1-13 under this title because:
1-14 (1) the commission fails to notify the person of a
1-15 deadline; or
1-16 (2) the person fails to receive a notice of a
1-17 deadline.
1-18 SECTION 3. Section 254.031, Election Code, is amended by
1-19 amending Subsection (a) and adding Subsections (c)-(f) to read as
1-20 follows:
1-21 (a) Except as otherwise provided by this chapter, each
1-22 report filed under this chapter must include:
1-23 (1) for [the amount of political contributions from]
1-24 each person from whom the person or committee required to file the
2-1 report accepts political contributions during the reporting period
2-2 that in the aggregate exceed $50:
2-3 (A) [and that are accepted during the reporting
2-4 period by the person or committee required to file a report under
2-5 this chapter,] the full name and address of the person making the
2-6 contributions;
2-7 (B) a description of the property or service
2-8 contributed, if the contribution is not a monetary contribution;
2-9 (C) the amount and date of each contribution;
2-10 (D) the total amount of contribution accepted
2-11 from the person during the reporting period;
2-12 (E) the total amount of contributions accepted
2-13 from the person during the calendar year; and
2-14 (F) if the person making the contribution is an
2-15 individual:
2-16 (i) the individual's principal occupation
2-17 and job title;
2-18 (ii) the full name of the individual's
2-19 employer, if any.
2-20 (2) the amount of loans that are made during the
2-21 reporting period for campaign or officeholder purposes to the
2-22 person or committee required to file the report and that in the
2-23 aggregate exceed $50, the dates the loans are made, the interest
2-24 rate, the repayment schedule [maturity date], the type of
2-25 collateral for the loans, if any, the full name and address of the
2-26 person or financial institution making the loans, the full name and
2-27 address, principal occupation, and name of the employer of each
2-28 guarantor of the loans, the amount of the loans guaranteed by each
2-29 guarantor, and the aggregate principal amount of all outstanding
2-30 loans as of the first and last days [day] of the reporting period;
3-1 (3) the total amount of loans that are made during the
3-2 calendar year for campaign or officeholder purposes to the person
3-3 or committee required to file the report;
3-4 (4) for each fund-raising event held during the
3-5 reporting period by the person or committee required to file the
3-6 report, the date and a description of the event and the total
3-7 amount raised at the event;
3-8 (5) for each person from whom the person or committee
3-9 required to file the report receives interest, refunds, rebates or
3-10 other receipts during the reporting period that in the aggregate
3-11 exceed $50, the name and address of the person making the payment,
3-12 and the date and amount of each payment;
3-13 (6) the amount of political expenditures that in the
3-14 aggregate exceed $50 and that are made during the reporting period,
3-15 the full name and address of the persons to whom the expenditures
3-16 are made, and the dates and purposes of the expenditures;
3-17 (7) [(4)] the amount of each payment made during the
3-18 reporting period from a political contribution if the payment is
3-19 not a political expenditure, the full name and address of the
3-20 person to whom the payment is made, and the date and purpose of the
3-21 payment;
3-22 (8) [(5)] the total amount or a specific listing of
3-23 the political contributions of $50 or less accepted, the total
3-24 amount or a specific listing of interest, refunds, rebates, or
3-25 other receipts of less than $50 received, and the total amount or a
3-26 specific listing of the political expenditures of $50 or less made
3-27 during the reporting period;
3-28 (9) [(6)] the total amount of all political
3-29 contributions accepted, the total amount of all interest, refunds,
3-30 rebates, or other receipts received, and the total amount of all
4-1 political expenditures made during the reporting period;
4-2 (10) the total amount of all political contributions
4-3 accepted, the total amount of all interest, refunds, rebates, or
4-4 other receipts received, and the total amount of all political
4-5 expenditures made during the calendar year;
4-6 (11) the total amount of cash or cash equivalents on
4-7 hand on the first day of the reporting period;
4-8 (12) the total amount of cash or cash equivalents on
4-9 hand on the last day of the reporting period; and
4-10 (13) [(7)] the name of each candidate or officeholder
4-11 who benefits from a direct campaign expenditure made during the
4-12 reporting period by the person or committee required to file the
4-13 report, and the office sought or held, excluding a direct campaign
4-14 expenditure that is made by the principal political committee of a
4-15 political party on behalf of a slate of two or more nominees of
4-16 that party.
4-17 (c) A written promise or pledge to make a political
4-18 contribution must be reported separately in the same manner as
4-19 other monetary contributions.
4-20 (d) The reporting of a political expenditure made to a
4-21 consultant, advertising agency, or similar entity or to a credit
4-22 card company must identify the ultimate intended recipient and the
4-23 purpose of the expenditure.
4-24 SECTION 5. Subchapter B, Chapter 254, Election Code, is
4-25 amended by adding Sections 254.0312-254.0314 to read as follows:
4-26 Sec. 254.0312. REPORT BY REGISTERED LOBBYIST. (a) A person
4-27 who is required to register as a lobbyist under Chapter 305,
4-28 Government Code, shall comply with this chapter as if the person
4-29 were a campaign treasurer of a general-purpose committee.
4-30 (b) A report required to be filed under this section must
5-1 include the information required by Section 254.031 as to political
5-2 contributions:
5-3 (1) made by the registered lobbyist;
5-4 (2) made by the spouse, child, or parent of the
5-5 registered lobbyist;
5-6 (3) made by the employer of the registered lobbyist;
5-7 (4) made by a political committee directly
5-8 established, administered, or controlled by the employer of the
5-9 registered lobbyist;
5-10 (5) made by a client of the registered lobbyist;
5-11 (6) made by a political committee directly
5-12 established, administered, or controlled by a client of the
5-13 registered lobbyist; or
5-14 (7) solicited, arranged, or transmitted by the
5-15 registered lobbyist.
5-16 (c) Each category of contributions described by Subsection
5-17 (b) must be listed separately.
5-18 (d) A lobbying firm may file a report that contains
5-19 information concerning two or more registered lobbyists. The
5-20 report must be verified by each registered lobbyist whose
5-21 activities the report covers.
5-22 (e) A person who files a termination notice under Section
5-23 305.008, Government Code, must file the reports required by this
5-24 chapter for any reporting period during which the person was
5-25 registered under Chapter 305, Government Code.
5-26 (f) In this section:
5-27 (1) "Client" means a person who compensates or
5-28 reimburses a registered lobbyist for lobbying in connection with a
5-29 subject dictated by the person.
5-30 (2) "Employer" means a person who compensates or
6-1 reimburses a registered lobbyist for lobbying in connection with a
6-2 subject dictated by the person or a client of the person. The term
6-3 includes a business entity of which a registered lobbyist is an
6-4 officer, owner, partner, or principal and from which the registered
6-5 lobbyist receives compensation or reimbursement to lobby.
6-6 (3) "Lobby" means to engage in an activity for which
6-7 registration is required under Chapter 305, Government Code.
6-8 Sec. 254.0313. REPORT BY GOVERNMENT CONTRACTOR. (a) A
6-9 person who receives a contract with a governmental entity under
6-10 which the person is paid $5,000 or more shall, except as provided
6-11 by Subsections (c) and (d), comply with this chapter as if the
6-12 person were a campaign treasurer of a general-purpose committee.
6-13 (b) A report required to be filed under this section must
6-14 include the information required by Section 254.031 as to political
6-15 contributions made by:
6-16 (1) the person;
6-17 (2) a political committee directly established,
6-18 administered, or controlled by the person;
6-19 (3) a principal of the person; or
6-20 (4) the spouse or child of the person or of a
6-21 principal of the person.
6-22 (c) A person shall file one report required by this section
6-23 for each year. The report shall be filed not later than July 15.
6-24 The report covers the period beginning one year before the date on
6-25 which the contract is awarded and continuing through June 30. A
6-26 report is not required under this section in the year in which the
6-27 contract is awarded if the contract is awarded after June 30 and
6-28 before July 16. For purposes of this subsection, the date a
6-29 contract is awarded is the date:
6-30 (1) the governmental entity takes formal action to
7-1 award the contract; or
7-2 (2) the contract is signed, if the governmental entity
7-3 is not required to take formal action to award the contract.
7-4 (d) A governmental entity that awards a contract under which
7-5 a person is to be paid $5,000 or more shall:
7-6 (1) include in the contract a statement notifying the
7-7 person to whom the contract is awarded of the person's duty to file
7-8 reports under this section; and
7-9 (2) notify the commission of the name and address of
7-10 the person to whom the contract is awarded.
7-11 (e) A person must file a final report under this section not
7-12 later than the 30th day after:
7-13 (1) the first anniversary of the date the person
7-14 completes the person's performance under the contract; or
7-15 (2) the date the contract is terminated, if the person
7-16 does not complete the person's performance under the contract.
7-17 (f) A final report covers the period beginning on the first
7-18 day after the last report required to be filed under this section
7-19 and ending on:
7-20 (1) the first anniversary of the date the person
7-21 completes the person's performance under the contract; or
7-22 (2) the date the contract is terminated, if the person
7-23 does not complete the person's performance under the contract.
7-24 (g) In this section, "principal" means:
7-25 (1) a corporate director or officer;
7-26 (2) a person who controls 10 percent or more of the
7-27 ownership interest in a business entity; or
7-28 (3) a person who owns an interest worth more than
7-29 $10,000 in a business entity other than a publicly held
7-30 corporation.
8-1 Sec. 254.0314. EXPENDITURE BY CERTAIN COMMITTEES CONSIDERED
8-2 TO BE EXPENDITURE BY CANDIDATE OR OFFICEHOLDER. (a) For purposes
8-3 of this chapter, a political expenditure by a political committee
8-4 for the purpose of supporting a candidate, opposing the candidate's
8-5 opponent, or assisting the candidate as an officeholder is
8-6 considered to be a political expenditure by the candidate unless
8-7 the candidate, in an affidavit filed with the authority with whom
8-8 the candidate's campaign treasurer appointment is required to be
8-9 filed, states that the candidate's campaign, including the
8-10 candidate, an aide to the candidate, a campaign officer, or a
8-11 campaign consultant of the candidate, has not directly or
8-12 indirectly communicated with the committee in regard to a strategic
8-13 matter, including polling data, advertising, or voter demographics,
8-14 in connection with the candidate's campaign.
8-15 (b) This section applies only to an expenditure of which the
8-16 candidate or officeholder has notice.
8-17 SECTION 6. Section 254.038, Election Code, is amended to
8-18 read as follows:
8-19 Sec. 254.038. ADDITIONAL [TELEGRAM] REPORT BY CERTAIN
8-20 CANDIDATES AND POLITICAL COMMITTEES. (a) In addition to other
8-21 reports required by this chapter, the following persons shall file
8-22 additional reports during the period beginning the ninth day before
8-23 election day and ending at 12 noon on the second day before
8-24 election day:
8-25 (1) a candidate for statewide office who accepts
8-26 political contributions from a person that in the aggregate exceed
8-27 $1,000 during that reporting period;
8-28 (2) a candidate for state senator or state
8-29 representative who [has an opponent whose name is to appear on the
8-30 ballot and who] accepts political contributions from a person that
9-1 in the aggregate exceed $500 [$1,000] during that reporting period;
9-2 (3) a specific-purpose committee for supporting or
9-3 opposing a candidate for statewide office and that accepts
9-4 political contributions from a person that in the aggregate exceed
9-5 $1,000 during that reporting period; and [(2) a candidate for
9-6 state representative who has an opponent whose name is to appear on
9-7 the ballot and who accepts political contributions from a person
9-8 that in the aggregate exceed $200 during that reporting period;]
9-9 (4) [(3)] a specific-purpose committee for supporting
9-10 or opposing a candidate for state senator or state representative
9-11 and that accepts political contributions from a person that in the
9-12 aggregate exceed $500 [$1,000] during that reporting period[; and]
9-13 [(4) a specific-purpose committee for supporting or
9-14 opposing a candidate for state representative and that accepts
9-15 political contributions from a person that in the aggregate exceed
9-16 $200 during that reporting period].
9-17 (b) Each report required by this section must include the
9-18 amount of the contributions specified by Subsection (a), the full
9-19 name and address of the person making the contributions, the
9-20 principal occupation of and the full name of the employer of the
9-21 person making the contributions, if the person is an individual,
9-22 and the dates of the contributions.
9-23 (c) Not later than 24 hours after a candidate or political
9-24 committee accepts a contribution to which this section applies, the
9-25 candidate or committee [A report under this section] shall [be
9-26 filed] by telegram, [or] telephonic facsimile machine, or
9-27 electronic mail or other electronic means of communication or by
9-28 hand file:
9-29 (1) the report required by this section with the
9-30 commission; and
10-1 (2) except as provided by Subsection (d), a copy of
10-2 the report required by this section with each county clerk with
10-3 whom the candidate or committee must file copies of reports under
10-4 Section 254.066(b) or 254.130(b) [not later than 48 hours after
10-5 the contribution is accepted].
10-6 (d) A candidate or political committee is not required to
10-7 file a copy of a report with the county clerk if the county
10-8 maintains a computer terminal that:
10-9 (1) allows access to the candidate's report filed with
10-10 the commission; and
10-11 (2) is available for public use.
10-12 (e) Section 254.036 does not apply to a report required by
10-13 this section.
10-14 SECTION 7. Section 254.039, Election Code, is amended by
10-15 amending the heading and Subsection (a) to read as follows:
10-16 Sec. 254.039. ADDITIONAL [TELEGRAM] REPORT BY CERTAIN
10-17 GENERAL-PURPOSE COMMITTEES. (a) In addition to other reports
10-18 required by this chapter, a general-purpose committee that makes
10-19 direct campaign expenditures supporting or opposing either a single
10-20 candidate that in the aggregate exceed $1,000 or a group of
10-21 candidates that in the aggregate exceed $15,000 during the period
10-22 beginning the ninth day before election day and ending at 12 noon
10-23 on the second day before election day shall file a report by
10-24 telegram, [or] telephonic facsimile machine, or electronic mail or
10-25 other electronic means of communication or by hand with the
10-26 commission not later than 48 hours after the expenditure is made.
10-27 SECTION 8. Section 254.040, Election Code, is amended to
10-28 read as follows:
10-29 Sec. 254.040. PRESERVATION OF REPORTS. (a) Except as
10-30 SECTION 11. Section 254.066, Election Code, is amended to
11-1 read as follows:
11-2 Sec. 254.066. AUTHORITY WITH WHOM REPORTS FILED.
11-3 (a) Reports under this subchapter shall be filed with the
11-4 authority with whom the candidate's campaign treasurer appointment
11-5 is required to be filed.
11-6 (b) Except as provided by Subsection (c), a candidate for
11-7 the legislature shall file a copy of each report with the county
11-8 clerk of each county in which the incumbent of the office sought
11-9 maintains a legislative district office.
11-10 (c) A candidate is not required to file a copy of a report
11-11 with the county clerk if the county maintains a computer terminal
11-12 that:
11-13 (1) allows access to the candidate's report filed with
11-14 the commission; and
11-15 (2) is available for public use.
11-16 SECTION 12. Section 254.097, Election Code, is amended to
11-17 read as follows:
11-18 Sec. 254.097. AUTHORITY WITH WHOM REPORTS FILED.
11-19 (a) Reports under this subchapter shall be filed with the
11-20 authority with whom a campaign treasurer appointment by a candidate
11-21 for the office held by the officeholder is required to be filed.
11-22 (b) Except as provided by Subsection (c), a member of the
11-23 legislature shall file a copy of each report with the county clerk
11-24 of each county in which the person maintains a legislative district
11-25 office.
11-26 (c) A member of the legislature is not required to file a
11-27 copy of a report with the county clerk if the county maintains a
11-28 computer terminal that:
11-29 (1) allows access to the member's report filed with
11-30 the commission; and
12-1 (2) is available for public use.
12-2 SECTION 13. Section 254.128(a), Election Code, is amended to
12-3 read as follows:
12-4 (a) If a specific-purpose committee accepts political
12-5 contributions or makes political expenditures for a candidate or
12-6 officeholder, the committee's campaign treasurer shall, [deliver
12-7 written notice of that fact to the affected candidate or
12-8 officeholder] not later than the end of the period covered by the
12-9 report in which the reportable activity occurs, deliver written
12-10 notice of that fact to:
12-11 (1) each candidate or officeholder on whose behalf the
12-12 contributions are accepted or expenditures are made; and
12-13 (2) each opponent whose name is to appear on the
12-14 ballot of a candidate described by Subdivision (1).
12-15 SECTION 14. Section 254.130, Election Code, is amended to
12-16 read as follows:
12-17 Sec. 254.130. AUTHORITY WITH WHOM REPORTS FILED.
12-18 (a) Reports filed under this subchapter shall be filed with the
12-19 authority with whom the political committee's campaign treasurer
12-20 appointment is required to be filed.
12-21 (b) Except as provided by Subsection (d), a specific-purpose
12-22 committee for supporting or opposing a candidate for the
12-23 legislature shall file a copy of each report with the county clerk
12-24 of each county in which the incumbent for the office sought
12-25 maintains a legislative district office.
12-26 (c) Except as provided by Subsection (d), a specific-purpose
12-27 committee for assisting a member of the legislature shall file a
12-28 copy of each report with the county clerk of each county in which
12-29 the member maintains a legislative district office.
12-30 (d) A specific-purpose committee is not required to file a
13-1 copy of a report with the county clerk under Subsection (b) or (c)
13-2 if the county maintains a computer terminal that:
13-3 (1) allows access to the committee's report filed with
13-4 the commission; and
13-5 (2) is available for public use.
13-6 SECTION 15. Section 254.161, Election Code, is amended to
13-7 read as follows:
13-8 Sec. 254.161. NOTICE TO CANDIDATE AND OFFICEHOLDER OF
13-9 CONTRIBUTIONS AND EXPENDITURES. If a general-purpose committee
13-10 other than the principal political committee of a political party
13-11 or a political committee established by a political party's county
13-12 executive committee accepts political contributions or makes
13-13 political expenditures for a candidate or officeholder, notice of
13-14 that fact shall be given to each [the] affected candidate or
13-15 officeholder as provided by Section 254.128 for a specific-purpose
13-16 committee.
13-17 SECTION 16. Section 254.124(f), Election Code, is repealed.
13-18 SECTION 17. (a) This Act takes effect September 1, 1997.
13-19 (b) Sections 254.002 and 254.0313, Election Code, as added
13-20 by this Act, apply only to transactions that occur or contracts
13-21 that are entered into after August 31, 1997.
13-22 (c) Sections 254.031, 254.040, 254.066, 254.097, and
13-23 254.130, Election Code, as amended by this Act, apply only to a
13-24 report filed under Chapter 254, Election Code, that covers the
13-25 period beginning January 1, 1998. A report under Chapter 254,
13-26 Election Code, that covers a period that ends on or before December
13-27 31, 1997, is governed by the law in effect August 31, 1997, and
13-28 that law is continued in effect for that purpose.
13-29 (d) Section 254.0314, Election Code, as added by this Act,
13-30 applies only to a political expenditure made after December 31,
14-1 1997.
14-2 (e) Section 254.038, Election Code, as amended by this Act,
14-3 applies only to a political contribution accepted after December
14-4 31, 1997.
14-5 (f) Section 254.039, Election Code, as amended by this Act,
14-6 applies only to a political expenditure made after December 31,
14-7 1997.
14-8 (g) Section 254.064, Election Code, as amended by this Act,
14-9 applies only to a candidate in an election that occurs after
14-10 November 1, 1997.
14-11 (h) Sections 254.128 and 254.161, Election Code, as amended
14-12 by this Act, apply only to a political contribution accepted or a
14-13 political expenditure made after December 31, 1997.
14-14 SECTION 18. The importance of this legislation and the
14-15 crowded condition of the calendars in both houses create an
14-16 emergency and an imperative public necessity that the
14-17 constitutional rule requiring bills to be read on three several
14-18 days in each house be suspended, and this rule is hereby suspended,
14-19 and that this Act take effect and be in force according to its
14-20 terms, and it is so enacted.