By Ellis, et al.                                S.B. No. 1686

      75R5516 ESH-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the regulation of certain political contributions,

 1-3     political expenditures, and political advertising; providing

 1-4     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.  LEGISLATIVE FAIR CAMPAIGN SPENDING ACT

 1-9           Sec. 253.201.  APPLICABILITY OF SUBCHAPTER.  This subchapter

1-10     applies only to a political contribution or political expenditure

1-11     in connection with the office of state senator or state

1-12     representative.

1-13           Sec. 253.202.  DEFINITIONS.  In this subchapter:

1-14                 (1)  "Complying candidate" means a legislative

1-15     candidate who files a declaration of compliance under Section

1-16     253.211(a)(1).

1-17                 (2)  "In connection with an election" means:

1-18                       (A)  with regard to a political contribution that

1-19     is designated in writing for a particular election, the election

1-20     designated; or

1-21                       (B)  with regard to a political contribution that

1-22     is not designated in writing for a particular election or that is

1-23     designated as an officeholder contribution, the next election for

1-24     that office occurring after the contribution is made.

 2-1                 (3)  "Noncomplying candidate" means a legislative

 2-2     candidate who:

 2-3                       (A)  files a declaration of intent to exceed the

 2-4     limits on political expenditures under Section 253.211(a)(2);

 2-5                       (B)  fails to file a declaration of compliance

 2-6     under Section 253.211(a)(1) or a declaration of intent under

 2-7     Section 253.211(a)(2); or

 2-8                       (C)  files a declaration of compliance under

 2-9     Section 253.211(a)(1) but who later exceeds the personal

2-10     expenditure limit under Section 253.214 or whose principal campaign

2-11     committee later exceeds the aggregate expenditure limit under

2-12     Section 253.215.

2-13                 (4)  "Principal campaign committee" means a

2-14     specific-purpose committee established under Section 253.203 for

2-15     supporting a legislative candidate or assisting a legislative

2-16     officeholder.

2-17           Sec. 253.203.  PRINCIPAL CAMPAIGN COMMITTEE.  (a)  A

2-18     legislative candidate or officeholder shall designate in writing a

2-19     specific-purpose committee to serve as the person's principal

2-20     campaign committee.

2-21           (b)  A designation under Subsection (a) must be:

2-22                 (1)  made not later than the 15th day after the date

2-23     the person becomes a legislative candidate or officeholder; and

2-24                 (2)  filed with the commission.

2-25           (c)  The name of a principal campaign committee must include

2-26     the candidate's or officeholder's name.

2-27           (d)  A legislative candidate or officeholder may not have

 3-1     more than one principal campaign committee at a time.  A person who

 3-2     is both a candidate and an officeholder may not have more than one

 3-3     principal campaign committee.  A candidate who becomes an

 3-4     officeholder is not required to designate a new principal campaign

 3-5     committee.

 3-6           (e)  A prohibition or restriction imposed by this title on a

 3-7     candidate or officeholder applies to the principal campaign

 3-8     committee of a legislative candidate or officeholder.

 3-9           (f)  Except as provided by this section, a person may not

3-10     establish a specific-purpose committee for supporting or opposing a

3-11     legislative candidate or assisting a legislative officeholder.

3-12           Sec. 253.204.  LIABILITY OF CANDIDATE FOR ACT OR OMISSION OF

3-13     PRINCIPAL CAMPAIGN COMMITTEE.  (a)  A legislative candidate or

3-14     officeholder is criminally liable for an act or omission by the

3-15     person's principal campaign committee in connection with a

3-16     requirement or prohibition prescribed by this title only if the

3-17     person authorized, requested, commanded, performed, or recklessly

3-18     tolerated the act or omission.

3-19           (b)  A legislative candidate or officeholder is civilly

3-20     liable for an act or omission by the person's principal campaign

3-21     committee in connection with a requirement or prohibition

3-22     prescribed by this title only if the person authorized, requested,

3-23     commanded, performed, or recklessly or negligently tolerated the

3-24     act or omission.

3-25           Sec. 253.205.  ACCEPTANCE OF POLITICAL CONTRIBUTION BY

3-26     CANDIDATE OR OFFICEHOLDER.  (a)  Except as provided by Subsection

3-27     (b), a legislative candidate or officeholder may not knowingly

 4-1     accept a political contribution in connection with the person's own

 4-2     candidacy or office.

 4-3           (b)  A legislative candidate or officeholder may accept a

 4-4     political contribution on behalf of the person's principal campaign

 4-5     committee unless the committee itself would be prohibited from

 4-6     accepting  the contribution.

 4-7           (c)  A person who violates this section commits an offense.

 4-8     An offense under this section is a Class A misdemeanor.

 4-9           Sec. 253.206.  CONTRIBUTION LIMITS.  (a)  Except as provided

4-10     by Section 253.207, a person other than a general-purpose committee

4-11     may not knowingly make or authorize political contributions to the

4-12     principal campaign committee of a legislative candidate or

4-13     officeholder that, in connection with each election in which the

4-14     candidate or officeholder is involved, in the aggregate exceed:

4-15                 (1)  $3,000, for the office of state senator; or

4-16                 (2)  $1,000, for the office of state representative.

4-17           (b)  A person may not knowingly accept a political

4-18     contribution, and shall refuse a political contribution that is

4-19     received, in violation of Subsection (a).

4-20           (c)  A person who violates this section commits an offense.

4-21     An offense under this section is a Class A misdemeanor.

4-22           Sec. 253.207.  AGGREGATE CONTRIBUTION LIMIT FOR CERTAIN

4-23     FAMILY GROUPS.  (a)  A group consisting of an individual, the

4-24     individual's spouse, and the individual's children may not

4-25     knowingly make or authorize political contributions to the

4-26     principal campaign committee of a legislative candidate or

4-27     officeholder that, in connection with each election in which the

 5-1     candidate or officeholder is involved, in the aggregate exceed:

 5-2                 (1)  $6,000, for the office of state senator; or

 5-3                 (2)  $2,000, for the office of state representative.

 5-4           (b)  A person may not knowingly accept a political

 5-5     contribution, and shall refuse a political contribution that is

 5-6     received, in violation of Subsection (a).

 5-7           (c)  In this section, "child" means a person under 18 years

 5-8     of age who is not and has not been married or who has not had the

 5-9     disabilities of minority removed for general purposes.

5-10           (d)  A person who violates this section commits an offense.

5-11     An offense under this section is a Class A misdemeanor.

5-12           Sec. 253.208.  AGGREGATE LIMIT ON CONTRIBUTIONS FROM AND

5-13     EXPENDITURES BY GENERAL-PURPOSE COMMITTEE.  (a)  The principal

5-14     campaign committee of a legislative candidate or officeholder may

5-15     not knowingly accept a political contribution from a

5-16     general-purpose committee that, when aggregated with each other

5-17     political contribution from a general-purpose committee in

5-18     connection with an election, exceeds:

5-19                 (1)  $100,000 in connection with a general primary

5-20     election, general election, or special election for state senator;

5-21                 (2)  $70,000 in connection with a runoff primary

5-22     election or runoff special election for state senator;

5-23                 (3)  $35,000 in connection with a general primary

5-24     election, general election, or special election for state

5-25     representative; or

5-26                 (4)  $20,000 in connection with a runoff primary

5-27     election or runoff special election for state representative.

 6-1           (b)  For purposes of this section, a political expenditure by

 6-2     a general-purpose committee for the purpose of supporting a

 6-3     candidate, for opposing the candidate's opponent, or for assisting

 6-4     the candidate as an officeholder is considered to be a political

 6-5     contribution to the principal campaign committee of the candidate

 6-6     whom the expenditure benefits, unless the campaign treasurer of the

 6-7     general-purpose committee, in an affidavit filed with the

 6-8     commission, states that the committee has not directly or

 6-9     indirectly communicated with the candidate's campaign, including

6-10     the candidate, an aide to the candidate, a campaign officer, a

6-11     campaign consultant, or the candidate's principal campaign

6-12     committee in regard to a strategic matter, including polling data,

6-13     advertising, or voter demographics, or other information used to

6-14     coordinate activities, in connection with the candidate's campaign.

6-15           (c)  Subsection (b) applies only to a political expenditure

6-16     of which the candidate or officeholder or the candidate's principal

6-17     campaign committee has notice.

6-18           (d)  Subsection (b) does not apply to a political expenditure

6-19     by the principal political committee of the state executive

6-20     committee or a county executive committee of a political party.

6-21           (e)  An affidavit under Subsection (b) must be filed with the

6-22     report under Chapter 254 in which the political expenditure is

6-23     required to be reported.

6-24           (f)  A person who violates this section commits an offense.

6-25     An offense under this section is a Class A misdemeanor.

6-26           Sec. 253.209.  RETURN OF EXCESS CONTRIBUTION.   (a)  A

6-27     principal campaign committee that receives a political contribution

 7-1     the acceptance of which would violate Section 253.206, 253.207, or

 7-2     253.208 shall return the contribution to the contributor not later

 7-3     than the 10th day after the last day of the reporting period

 7-4     prescribed by Chapter 254 in which the contribution is received.

 7-5           (b)  A political contribution that is not returned as

 7-6     required by this section is considered to be accepted.

 7-7           Sec. 253.210.  NOTICE REQUIRED FOR CERTAIN DIRECT CAMPAIGN

 7-8     EXPENDITURES.  (a)  A person other than the principal political

 7-9     committee of the state executive committee or a county executive

7-10     committee of a political party may not make a direct campaign

7-11     expenditure for the purpose of supporting or opposing a legislative

7-12     candidate unless the person files with the commission and the

7-13     principal campaign committee of the candidate whom the expenditure

7-14     benefits a written declaration of the person's intent to make the

7-15     expenditure not later than 48 hours before the expenditure is made.

7-16     The declaration must include the amount of the expenditure.

7-17           (b)  The commission shall file a declaration received under

7-18     Subsection (a) with the records of the principal campaign committee

7-19     of each legislative candidate whom the political expenditure

7-20     benefits.  For purposes of this section,  a political expenditure

7-21     that opposes a legislative candidate is considered to benefit each

7-22     candidate for the office other than the opposed candidate.

7-23           (c)  A political expenditure made by a political committee or

7-24     other association that consists only of costs incurred in

7-25     contacting the committee's or association's dues-paying membership

7-26     may be made without the declaration required by Subsection (a).

7-27           (d)  This section does not apply to a political expenditure

 8-1     by a candidate's principal campaign committee in connection with

 8-2     the candidate's election.

 8-3           Sec. 253.211.  VOLUNTARY COMPLIANCE.  (a)  Not later than the

 8-4     10th day after the date a person becomes a candidate for

 8-5     legislative office, the person shall file with the commission:

 8-6                 (1)  a sworn declaration of compliance stating that the

 8-7     person, acting through the person's principal campaign committee,

 8-8     voluntarily agrees to comply with the limits on political

 8-9     expenditures prescribed by this subchapter; or

8-10                 (2)  a written declaration stating that the person,

8-11     acting through the person's principal campaign committee, intends

8-12     to make political expenditures that exceed the limits prescribed by

8-13     this subchapter.

8-14           (b)  A legislative candidate or the principal campaign

8-15     committee of a legislative candidate may not knowingly accept a

8-16     campaign contribution or make or authorize a campaign expenditure

8-17     before the candidate files a declaration under Subsection (a).

8-18           Sec. 253.212.  EFFECT OF NONCOMPLYING CANDIDATE.  (a)  A

8-19     complying candidate or the principal campaign committee of a

8-20     complying candidate is not required to comply with the limits on

8-21     political contributions and political expenditures prescribed by

8-22     this subchapter and the limit on the reimbursement of personal

8-23     funds prescribed by Section 253.042 if another person becomes a

8-24     candidate for the same office and:

8-25                 (1)  files a declaration of intent to exceed the limits

8-26     on political expenditures under Section 253.211(a)(2);

8-27                 (2)  fails to file a declaration of compliance under

 9-1     Section 253.211(a)(1) or a declaration of intent under Section

 9-2     253.211(a)(2); or

 9-3                 (3)  files a declaration of compliance under Section

 9-4     253.211(a)(1) but later exceeds the personal expenditure limit

 9-5     under Section 253.214 or the person's principal campaign committee

 9-6     later exceeds the aggregate expenditure limit under Section

 9-7     253.215.

 9-8           (b)  The executive director of the commission shall issue an

 9-9     order suspending the limits on political contributions, political

9-10     expenditures, and reimbursement of personal funds for a specific

9-11     office not later than the fifth day after the date the executive

9-12     director determines that:

9-13                 (1)  a person has become a candidate for that office

9-14     and:

9-15                       (A)  has filed a declaration of intent to exceed

9-16     the limits on political expenditures under Section 253.211(a)(2);

9-17     or

9-18                       (B)  has failed to file a declaration of

9-19     compliance under Section 253.211(a)(1) or a declaration of intent

9-20     under Section 253.211(a)(2); or

9-21                 (2)  a complying candidate or the principal campaign

9-22     committee of a complying candidate for that office has exceeded the

9-23     applicable limit on political expenditures prescribed by this

9-24     subchapter.

9-25           Sec. 253.213.  BENEFITS TO COMPLYING CANDIDATE.  (a)

9-26     Regardless of whether the limits on political contributions and

9-27     political expenditures are suspended under Section 253.212 or

 10-1    increased under Section 253.219, a complying candidate and the

 10-2    principal campaign committee of a complying candidate are entitled

 10-3    to:

 10-4                (1)  state on political advertising as provided by

 10-5    Section 255.009 that the candidate complies with the Legislative

 10-6    Fair Campaign Spending Act;

 10-7                (2)  an exemption from sales and use tax as provided by

 10-8    Section 151.354, Tax Code;

 10-9                (3)  use public space in a building or park owned or

10-10    controlled by the state or a political subdivision for a meeting,

10-11    rally, or similar campaign event, subject to:

10-12                      (A)  reasonable restrictions by the governmental

10-13    entity in control of the building or park as to the time and

10-14    duration of events under this subdivision; and

10-15                      (B)  payment of the actual expenses of the

10-16    governmental entity resulting from use of the building or park,

10-17    including preparation, security, and cleanup; and

10-18                (4)  inclusion in the voter's guide under Section

10-19    253.221.

10-20          (b)  A noncomplying candidate and the principal campaign

10-21    committee of a noncomplying candidate are not entitled to the

10-22    benefits provided by this section.

10-23          Sec. 253.214.  PERSONAL EXPENDITURE LIMITS.  (a)  A complying

10-24    candidate may not knowingly make or authorize, from the candidate's

10-25    personal funds or other assets, political expenditures in

10-26    connection with the candidate's candidacy that, in connection with

10-27    each election in which the candidate is involved, in the aggregate

 11-1    exceed:

 11-2                (1)  $25,000, for the office of state senator; or

 11-3                (2)  $15,000, for the office of state representative.

 11-4          (b)  For purposes of Subsection (a), the use of a person's

 11-5    personal funds or other assets as collateral for a loan is

 11-6    considered to be a political expenditure.

 11-7          (c)  A person who violates this section commits an offense.

 11-8    An offense under this section is a Class A misdemeanor.

 11-9          Sec. 253.215.  AGGREGATE EXPENDITURE LIMITS.  (a)  Except as

11-10    provided by Subsection (b), the principal campaign committee of a

11-11    complying candidate may not knowingly make or authorize political

11-12    expenditures that in the aggregate exceed:

11-13                (1)  for the office of state senator:

11-14                      (A)  $350,000, in connection with a general

11-15    primary election, general election, or special election; or

11-16                      (B)  $215,000, in connection with a runoff

11-17    primary election or runoff special election; or

11-18                (2)  for the office of state representative:

11-19                      (A)  $50,000, in connection with a general

11-20    primary election, general election, or special election; or

11-21                      (B)  $35,000, in connection with a runoff primary

11-22    election or runoff special election.

11-23          (b)  This section applies to all political expenditures

11-24    except a political expenditure for:

11-25                (1)  bumper stickers, yard signs smaller than 28 inches

11-26    by 44 inches, or buttons;

11-27                (2)  legal costs incurred in connection with a lawsuit

 12-1    involving a legislative candidate or officeholder;

 12-2                (3)  legal costs incurred in connection with complying

 12-3    with this code; or

 12-4                (4)  accounting costs incurred in connection with

 12-5    complying with this code.

 12-6          (c)  The expenditure limits prescribed by this section for an

 12-7    election other than a special election or runoff special election

 12-8    apply only during the period:

 12-9                (1)  beginning on the 90th day before the date of the

12-10    general primary election for the office involved; and

12-11                (2)  ending on the 30th day after the date of the

12-12    general election for the office involved.

12-13          (d)  For purposes of this section, a political expenditure

12-14    made by a complying candidate from the candidate's personal funds

12-15    or other assets is considered to be a political expenditure by the

12-16    candidate's principal campaign committee.

12-17          (e)  A person who violates this section commits an offense.

12-18    An offense under this section is a Class A misdemeanor.

12-19          Sec. 253.216.  CONTRIBUTION FROM OR DIRECT CAMPAIGN

12-20    EXPENDITURE BY POLITICAL PARTY.  (a)  Except as provided by

12-21    Subsections (c) and (d), the principal political committee of the

12-22    state executive committee of a political party may not make

12-23    political contributions to a complying candidate's principal

12-24    campaign committee, direct campaign expenditures for the benefit of

12-25    a complying candidate, or a combination of such contributions and

12-26    expenditures that, in connection with an election, in the aggregate

12-27    exceed:

 13-1                (1)  $75,000, for the office of state senator; or

 13-2                (2)  $35,000, for the office of state representative.

 13-3          (b)  For purposes of Subsection (a), the amount of a direct

 13-4    campaign expenditure made for the benefit of more than one

 13-5    candidate is divided by the number of candidates for whose benefit

 13-6    the expenditure is made.

 13-7          (c)  Except as provided by Subsection (d), a political

 13-8    contribution to a complying candidate's principal campaign

 13-9    committee or a direct campaign expenditure for the benefit of a

13-10    complying candidate that is made by the principal political

13-11    committee of the state executive committee that exceeds the

13-12    applicable limit prescribed by Subsection (a) or that is made by a

13-13    county executive committee of a political party is considered to be

13-14    a political expenditure by the candidate's principal campaign

13-15    committee for purposes of the expenditure limits prescribed by

13-16    Section 253.215.

13-17          (d)  Subsections (a) and (c) do not apply to a political

13-18    expenditure for:

13-19                (1)  a generic get-out-the-vote campaign;

13-20                (2)  a written list of two or more candidates that:

13-21                      (A)  identifies the party's candidates by name

13-22    and office sought, office held, or photograph;

13-23                      (B)  does not contain:

13-24                            (i)  information about campaign issues; or

13-25                            (ii)  negative information about a

13-26    candidate's opponent;

13-27                      (C)  includes, at the party's option, voting

 14-1    instructions or information; and

 14-2                      (D)  is not mailed, broadcast, cablecast,

 14-3    published in a newspaper or magazine, or placed on a billboard; or

 14-4                (3)  political advertising that is in response to

 14-5    political advertising that represents a political expenditure to

 14-6    which Section 253.210 applies.

 14-7          Sec. 253.217.  CONTRIBUTION BY NATIONAL COMMITTEE OF

 14-8    POLITICAL PARTY CONSIDERED EXPENDITURE BY CANDIDATE'S COMMITTEE.

 14-9    For purposes of Section 253.215, a political contribution by the

14-10    national committee of a political party, as defined by 2 U.S.C.

14-11    Section 431, to the principal campaign committee of a complying

14-12    candidate that is made from money that is not accepted in

14-13    compliance with Subchapter I, Chapter 14, Title 2, United States

14-14    Code, is considered to be a political expenditure by the

14-15    candidate's principal campaign committee.

14-16          Sec. 253.218.  CERTAIN IN-KIND CONTRIBUTIONS CONSIDERED

14-17    EXPENDITURE BY CANDIDATE'S COMMITTEE.  (a)  For purposes of Section

14-18    253.215, an in-kind political contribution is considered to be a

14-19    political expenditure by the principal campaign committee of a

14-20    complying candidate if it is made at the request or direction of

14-21    the candidate or an officer or employee of the principal campaign

14-22    committee of the candidate.

14-23          (b)  In this section, "in-kind political contribution" means

14-24    a political contribution consisting of goods or services for which

14-25    the principal campaign committee of a complying candidate would

14-26    otherwise have made a political expenditure.

14-27          Sec. 253.219.  EFFECT OF CERTAIN DIRECT CAMPAIGN

 15-1    EXPENDITURES.  (a)  If a person makes a direct campaign expenditure

 15-2    for the purpose of supporting or opposing a legislative candidate,

 15-3    other than an expenditure that is considered under Section 253.208

 15-4    to be a political contribution to the principal campaign committee

 15-5    of a candidate, the executive director of the commission shall

 15-6    issue an order increasing, by an amount equal to the amount of the

 15-7    expenditure, the expenditure limits for the principal campaign

 15-8    committee of each complying candidate who opposes the candidate

 15-9    whom the expenditure benefits.  The executive director shall issue

15-10    the order not later than the fifth day after the date the executive

15-11    director determines that an expenditure to which this section

15-12    applies has been made.

15-13          (b)  For purposes of this section, a direct campaign

15-14    expenditure that opposes a candidate is considered to benefit each

15-15    candidate for the office other than the opposed candidate.

15-16          Sec. 253.220.  LEGISLATIVE FAIR CAMPAIGN SPENDING FUND.  (a)

15-17    The legislative fair campaign spending fund is a special account in

15-18    the general revenue fund.

15-19          (b)  The legislative fair campaign spending fund consists of:

15-20                (1)  damages recovered under Section 253.133 for

15-21    violations of this subchapter;

15-22                (2)  civil penalties imposed under Section 571.173,

15-23    Government Code, for violations of this subchapter; and

15-24                (3)  any gifts or grants received by the commission

15-25    under Subsection (f).

15-26          (c)  The legislative fair campaign spending fund may be used

15-27    only for:

 16-1                (1)  voter education projects that relate to

 16-2    legislative campaigns; and

 16-3                (2)  payment of costs incurred in imposing civil

 16-4    penalties for violations of this subchapter.

 16-5          (d)  To the extent practicable, the fund shall be permitted

 16-6    to accumulate until the balance is sufficient to permit the

 16-7    publication of a voter's guide as provided by Section 253.221.

 16-8          (e)  The commission, the secretary of state, and the

 16-9    comptroller may use money in the legislative fair campaign spending

16-10    fund to produce and broadcast or publish public service

16-11    announcements to educate voters about this subchapter.

16-12          (f)  The commission may accept gifts and grants for the

16-13    purposes described by Subsections (c)(1), (d), and (e).  Funds

16-14    received under this subsection shall be deposited to the credit of

16-15    the legislative fair campaign spending fund.

16-16          (g)  The legislative fair campaign spending fund is exempt

16-17    from Section 403.095, Government Code.

16-18          Sec. 253.221.  VOTER'S GUIDE.  (a)  If the necessary funds

16-19    are available under Section 253.220, the commission shall publish a

16-20    voter's guide listing legislative candidates, their backgrounds,

16-21    and similar information.

16-22          (b)  The commission shall adopt rules under which a candidate

16-23    must provide information to the commission for inclusion in the

16-24    voter's guide.  The rules may not restrict the content of a

16-25    candidate's information by any means other than prescribing a

16-26    maximum length.  The voter's guide must indicate whether each

16-27    candidate is a complying candidate or noncomplying candidate, based

 17-1    on declarations filed under Section 253.211 or determinations by

 17-2    the executive director under Section 253.212.  The listing of a

 17-3    noncomplying candidate may not include any information other than

 17-4    the candidate's name and must include a statement that the

 17-5    candidate is not in compliance with the Legislative Fair Campaign

 17-6    Spending Act and is not entitled to have complete information about

 17-7    the candidate included in the guide.

 17-8          (c)  Not later than the seventh day before the date early

 17-9    voting by mail begins, the commission shall:

17-10                (1)  distribute the voter's guide to newspapers in each

17-11    part of the state;

17-12                (2)  make the voter's guide available through the

17-13    Internet; and

17-14                (3)  make the voter's guide available through the

17-15    comptroller's state government electronic billboard.

17-16          (d)  In this section, "Internet" means the largest

17-17    nonproprietary nonprofit cooperative public computer network,

17-18    popularly known as the Internet.

17-19          SECTION 2.  Section 251.005, Election Code, is amended by

17-20    amending Subsection (a) and adding Subsection (d) to read as

17-21    follows:

17-22          (a)  An out-of-state political committee is not subject to

17-23    Chapter 252 or 254, except as provided by Subsection (b), [or] (c),

17-24    or (d).

17-25          (d)  An out-of-state committee that is the national committee

17-26    of a political party, as defined by 2 U.S.C. Section 431, that

17-27    makes political contributions described by Section 253.217 is

 18-1    subject to this title to the same extent as a political committee

 18-2    that is not an out-of-state committee.

 18-3          SECTION 3.  Section 253.003(c), Election Code, is amended to

 18-4    read as follows:

 18-5          (c)  This section does not apply to a political contribution

 18-6    made or accepted in violation of:

 18-7                (1)  Section 253.040 or 253.211; or

 18-8                (2)  Subchapter F.

 18-9          SECTION 4.  Section 253.004(b), Election Code, is amended to

18-10    read as follows:

18-11          (b)  This section does not apply to a political expenditure

18-12    made or authorized in violation of:

18-13                (1)  Section 253.210 or 253.211; or

18-14                (2)  Subchapter F.

18-15          SECTION 5.  Subchapter B, Chapter 253, Election Code, is

18-16    amended by adding Section 253.040 to read as follows:

18-17          Sec. 253.040.  CERTAIN CONTRIBUTIONS BY CERTAIN FORMER

18-18    OFFICEHOLDERS PROHIBITED.  A former officeholder who is required to

18-19    register as a lobbyist under Chapter 305, Government Code, may not

18-20    use a political contribution accepted while the person was a

18-21    candidate or officeholder to make a political contribution to a

18-22    person other than the political party with which the person was

18-23    affiliated or aligned when the person's name last appeared on the

18-24    ballot.

18-25          SECTION 6.  Section 253.042(a), Election Code, is amended to

18-26    read as follows:

18-27          (a)  A candidate or officeholder who makes political

 19-1    expenditures from the candidate's or officeholder's [his] personal

 19-2    funds may not reimburse those [his] personal funds from political

 19-3    contributions in amounts that in the aggregate exceed the following

 19-4    amounts:

 19-5                (1)  for each election in which the person's name

 19-6    appears on the ballot:

 19-7                      (A) [(1)]  for a statewide office other than

 19-8    governor, $250,000; or

 19-9                      (B) [and (2)]  for governor, $500,000; or

19-10                (2)  for each election in which the person's name

19-11    appears on the ballot and in which the person has an opponent whose

19-12    name appears on the ballot:

19-13                      (A)  for state senator, $25,000; or

19-14                      (B)  for state representative, $15,000.

19-15          SECTION 7.  Section 253.134, Election Code, is amended to

19-16    read as follows:

19-17          Sec. 253.134.  CIVIL PENALTIES IMPOSED BY COMMISSION.  (a)

19-18    This title does not prohibit the imposition of civil penalties by

19-19    the commission in addition to criminal penalties or other sanctions

19-20    imposed by law.

19-21          (b)  The commission may contract with a nongovernmental

19-22    entity to collect a civil penalty imposed under Section 571.173,

19-23    Government Code, for a violation of this chapter that is not paid

19-24    before the 120th day after the date it is imposed.

19-25          SECTION 8.  Section 254.034, Election Code, is amended by

19-26    adding Subsection (f) to read as follows:

19-27          (f)  This section applies to a political contribution covered

 20-1    by Subchapter G, Chapter 253, except as provided by Section

 20-2    253.209.

 20-3          SECTION 9.  Subchapter C, Chapter 254, Election Code, is

 20-4    amended by adding Section 254.0612 to read as follows:

 20-5          Sec. 254.0612.  REPORTS BY PRINCIPAL CAMPAIGN COMMITTEE OF

 20-6    LEGISLATIVE CANDIDATE; ADDITIONAL CONTENTS.  (a)  The principal

 20-7    campaign committee of a candidate for state senator or state

 20-8    representative shall comply with this chapter as if the committee

 20-9    were a candidate.

20-10          (b)  In addition to the contents required by Sections 254.031

20-11    and 254.061, each report by the principal campaign committee of a

20-12    candidate for state senator or state representative must include:

20-13                (1)  for each individual from whom the committee has

20-14    accepted political contributions that in the aggregate exceed $100

20-15    and that are accepted during the reporting period:

20-16                      (A)  the individual's principal occupation or job

20-17    title;

20-18                      (B)  the full name of the individual's employer,

20-19    if any; and

20-20                      (C)  the aggregate total of political

20-21    contributions accepted from the individual since the date of the

20-22    last general election for the office sought by the candidate, other

20-23    than a contribution designated in writing for that general

20-24    election; and

20-25                (2)  for each political expenditure made by the

20-26    candidate from the candidate's personal funds or other assets, the

20-27    information required by Section 254.031(a)(3).

 21-1          (c)  In this section, "principal campaign committee" has the

 21-2    meaning assigned by Section 253.202.

 21-3          SECTION 10.  Subchapter D, Chapter 254, Election Code, is

 21-4    amended by adding Section 254.0912 to read as follows:

 21-5          Sec. 254.0912.  REPORTS BY PRINCIPAL CAMPAIGN COMMITTEE OF

 21-6    LEGISLATIVE OFFICEHOLDER; ADDITIONAL CONTENTS.  (a)  The principal

 21-7    campaign committee of a state senator or state representative shall

 21-8    comply with this chapter as if the committee were an officeholder.

 21-9          (b)  In addition to the contents required by Sections 254.031

21-10    and 254.091, each report by the principal campaign committee of a

21-11    state senator or state representative must include the contents

21-12    prescribed by Section 254.0612.

21-13          (c)  In this section, "principal campaign committee" has the

21-14    meaning assigned by Section 253.202.

21-15          SECTION 11.  Subchapter F, Chapter 254, Election Code, is

21-16    amended by adding Section 254.1511 to read as follows:

21-17          Sec. 254.1511.  REPORTS BY PRINCIPAL POLITICAL COMMITTEE OF

21-18    POLITICAL PARTY; ADDITIONAL CONTENTS.  (a)  Each report by the

21-19    principal political committee of the state executive committee of a

21-20    political party must list the political contributions and political

21-21    expenditures made in connection with each candidate or officeholder

21-22    on a separate schedule.

21-23          (b)  In addition to the contents required by Sections 254.031

21-24    and 254.151, each report by the principal political committee of

21-25    the state executive committee of a political party must include,

21-26    for each candidate for or holder of the office of state senator or

21-27    state representative for whose benefit the committee makes a

 22-1    political contribution or political expenditure in the calendar

 22-2    year:

 22-3                (1)  the total amount of political contributions made

 22-4    during the calendar year to the principal campaign committee of the

 22-5    candidate or officeholder; and

 22-6                (2)  the total amount of political expenditures made

 22-7    during the calendar year for the benefit of the candidate or

 22-8    officeholder.

 22-9          (c)  In this section, "principal campaign committee" has the

22-10    meaning assigned by Section 253.202.

22-11          SECTION 12.  Section 254.203(a), Election Code, is amended to

22-12    read as follows:

22-13          (a)  A person may not retain political contributions covered

22-14    by this title, assets purchased with the contributions, or interest

22-15    and other income earned on the contributions for more than six

22-16    years after the date the person [either] ceases to be an

22-17    officeholder or the date the person ceases to be a candidate [or

22-18    files a final report under this chapter], whichever is later.

22-19          SECTION 13.  Section 254.204(a), Election Code, is amended to

22-20    read as follows:

22-21          (a)  At the end of the six-year period prescribed by Section

22-22    254.203, the former officeholder or candidate shall remit any

22-23    unexpended political contributions to one or more of the following:

22-24                (1)  the political party with which the person was

22-25    affiliated or aligned when the person's name last appeared on a

22-26    ballot;

22-27                (2)  a candidate or political committee;

 23-1                (3)  the comptroller [of public accounts] for deposit

 23-2    in the state treasury [State Treasury];

 23-3                (4)  one or more persons from whom political

 23-4    contributions were received, in accordance with Subsection (d);

 23-5                (5)  a recognized tax-exempt, charitable organization

 23-6    formed for educational, religious, or scientific purposes; [or]

 23-7                (6)  a public or private postsecondary educational

 23-8    institution or an institution of higher education as defined by

 23-9    Section 61.003[(8)], Education Code, solely for the purpose of

23-10    assisting or creating a scholarship program; or

23-11                (7)  the commission for deposit in the legislative fair

23-12    campaign spending fund under Section 253.220.

23-13          SECTION 14.  Chapter 255, Election Code, is amended by adding

23-14    Sections 255.009 and 255.010 to read as follows:

23-15          Sec. 255.009.  DISCLOSURE ON POLITICAL ADVERTISING FOR

23-16    LEGISLATIVE OFFICE.  (a)  This section applies only to the

23-17    principal campaign committee of a candidate covered by Subchapter

23-18    G, Chapter 253.

23-19          (b)  Political advertising by the principal campaign

23-20    committee of a complying candidate may include the following

23-21    statement:  "Political advertising paid for by (name of committee)

23-22    in compliance with the voluntary expenditure limits of the

23-23    Legislative Fair Campaign Spending Act."

23-24          (c)  Political advertising by the principal campaign

23-25    committee of a complying candidate that does not contain the

23-26    statement prescribed by Subsection (b) must comply with Section

23-27    255.001.

 24-1          (d)  Political advertising by the principal campaign

 24-2    committee of a noncomplying candidate must include the following

 24-3    statement:  "Political advertising paid for by (name of committee).

 24-4    (Name of candidate) has rejected the voluntary expenditure limits

 24-5    of the Legislative Fair Campaign Spending Act."

 24-6          (e)  The commission shall adopt rules providing for:

 24-7                (1)  the minimum size of the disclosure required by

 24-8    this section in political advertising that appears on television or

 24-9    in writing; and

24-10                (2)  the minimum duration of the disclosure required by

24-11    this section in political advertising that appears on television or

24-12    radio.

24-13          (f)  In this section, "complying candidate," "noncomplying

24-14    candidate," and "principal campaign committee" have the meanings

24-15    assigned by Section 253.202.

24-16          (g)  A person who violates this section is liable for a civil

24-17    penalty not to exceed three times the cost of the political

24-18    advertising that violates this section.

24-19          (h)  A person who violates this section or a rule adopted

24-20    under this section commits an offense.  An offense under this

24-21    section is a Class A misdemeanor.

24-22          Sec. 255.010.  RESTRICTIONS ON CERTAIN TELEPHONE ADVERTISING

24-23    AND POLLING.  (a)  Not later than 24 hours after the time a person

24-24    begins to conduct a telephone advertising campaign or poll in

24-25    connection with a campaign for an office covered by Subchapter G,

24-26    Chapter 253, the person shall file with the commission the script

24-27    that will be used in conducting the advertising campaign or poll.

 25-1    The commission may not take any action in connection with a script

 25-2    filed under this subsection other than making the script available

 25-3    to the public on request.

 25-4          (b)  This section applies only to a telephone advertising

 25-5    campaign or poll conducted by a person, including a news

 25-6    organization, that is:

 25-7                (1)  affiliated or aligned with a candidate, political

 25-8    committee, political party, or campaign consultant; or

 25-9                (2)  compensated by a candidate, political committee,

25-10    political party, or campaign consultant for conducting the

25-11    advertising campaign or poll.

25-12          (c)  A person who violates this section commits an offense.

25-13    An offense under this section is a Class B misdemeanor.

25-14          SECTION 15.  Subchapter H, Chapter 151, Tax Code, is amended

25-15    by adding Section 151.354 to read as follows:

25-16          Sec. 151.354.  CERTAIN LEGISLATIVE CANDIDATES AND COMMITTEES.

25-17    (a)  A taxable item sold, leased, or rented to, or stored, used, or

25-18    consumed by, a complying candidate for state senator or state

25-19    representative or the principal campaign committee of a complying

25-20    candidate is exempted from the taxes imposed by this chapter if the

25-21    item is for use exclusively in connection with the candidate's

25-22    campaign for state senator or state representative.

25-23          (b)  In this section, "complying candidate" and "principal

25-24    campaign committee" have the meanings assigned by Section 253.202,

25-25    Election Code.

25-26          SECTION 16.  Section 253.042(g), Election Code, is repealed.

25-27          SECTION 17.  The provisions of this Act are not severable,

 26-1    and none would have been enacted without the others.  If any

 26-2    provision of this Act is held invalid, each provision is invalid.

 26-3          SECTION 18.  (a)  Except as provided by Subsection (h) of

 26-4    this section, this Act takes effect September 1, 1997.

 26-5          (b)  Not later than September 15, 1997, each candidate for or

 26-6    holder of the office of state senator or state representative shall

 26-7    file with the Texas Ethics Commission a designation of the person's

 26-8    principal campaign committee as required by Section 253.203,

 26-9    Election Code, as added by this Act.

26-10          (c)  Subchapter G, Chapter 253, Election Code, as added by

26-11    this Act, applies only to a political contribution accepted or a

26-12    political expenditure made on or after September 1, 1997.  A

26-13    political contribution accepted or a political expenditure made

26-14    before that date is governed by the law in effect at the time the

26-15    contribution was accepted or the expenditure was made and is not

26-16    aggregated with political contributions accepted or political

26-17    contributions made on or after that date.

26-18          (d)  Section 253.042, Election Code, as amended by this Act,

26-19    applies only to the reimbursement of personal funds for a political

26-20    expenditure made on or after September 1, 1997.  A political

26-21    expenditure made before September 1, 1997, may be reimbursed as

26-22    provided by the law in effect at the time the expenditure was made,

26-23    and the former law is continued in effect for that purpose.

26-24          (e)  Sections 254.0612, 254.0912, and 254.1511, Election

26-25    Code, as added by this Act, apply to the reporting of a political

26-26    contribution accepted or political expenditure made on or after

26-27    September 1, 1997.  The reporting of a political contribution

 27-1    accepted or a political expenditure made before that date is

 27-2    governed by the law in effect at the time the contribution or

 27-3    expenditure was accepted or made, and the former law is continued

 27-4    in effect for that purpose.

 27-5          (f)  Section 253.040, Election Code, as added by this Act,

 27-6    applies only to the expenditure or disposition of a political

 27-7    contribution accepted on or after September 1, 1997.  For purposes

 27-8    of this section, political contributions are expended or disposed

 27-9    of in the order in which the contributions were accepted.

27-10          (g)  Notwithstanding Section 254.203, Election Code, as that

27-11    section existed before amendment by this Act, a former officeholder

27-12    or candidate who ceased to be an officeholder or candidate before

27-13    September 1, 1991, but who has not filed a final report under

27-14    Chapter 254, Election Code, before September 1, 1997, shall, not

27-15    later than January 1, 1998, dispose of unexpended political

27-16    contributions, assets purchased with political contributions, and

27-17    interest or other income earned on political contributions in

27-18    compliance with Section 254.203, Election Code, as amended by this

27-19    Act.  A former officeholder or candidate who ceased to be an

27-20    officeholder or candidate on or after September 1, 1991, shall

27-21    dispose of unexpended political contributions, assets purchased

27-22    with political contributions, and interest or other income earned

27-23    on political contributions in compliance with Section 254.203,

27-24    Election Code, as amended by this Act, regardless of whether the

27-25    person has filed a final report under Chapter 254, Election Code.

27-26          (h)  Section 151.354, Tax Code, as added by this Act, takes

27-27    effect October 1, 1997, and does not affect taxes imposed before

 28-1    that date. The law in effect before October 1, 1997, is continued

 28-2    in effect for purposes of the liability for and collection of taxes

 28-3    imposed before that date.

 28-4          SECTION 19.  The importance of this legislation and the

 28-5    crowded condition of the calendars in both houses create an

 28-6    emergency and an imperative public necessity that the

 28-7    constitutional rule requiring bills to be read on three several

 28-8    days in each house be suspended, and this rule is hereby suspended.