HBA-GUM, RBT H.B. 2611 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 2611 By: Greenberg Elections 8/2/1999 Enrolled BACKGROUND AND PURPOSE Prior to the 76th Texas Legislature, paper reports could be filed with the Ethics Commission. Interested parties could only access the reports by traveling to the Ethics Commission office in Austin. H.B. 2611 requires candidates and officeholders to file reports with the Ethics Commission electronically rather than on paper. H.B. 2611 requires the Ethics Commission to post electronically filed reports on the Internet, thereby making them accessible to all interested parties without unusual expense. This bill does provide exemptions from the requirement to file electronically when the candidate or officeholder does not receive or spend more than $20,000 and when they do not use a computer to maintain their list of contributions and expenditures. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 254.036, Election Code, as follows: Sec. 254.036. FORM OF REPORT; AFFIDAVIT; MAILING OF FORMS. (a) Provides that each report filed under this chapter with an authority other than the commission must be on a form prescribed by the Texas Ethics Commission (commission). (b) Provides that each report filed under this chapter with the commission must be filed by computer diskette, modem, or other means of electronic transfer, using computer software provided by the commission or computer software that meets commission specifications for a standard file format. (c) Authorizes a candidate, officeholder, or political committee that is required to file reports with the commission to file reports that comply with Subsection (a) if the candidate, officeholder, or campaign treasurer of the committee files with the commission an affidavit stating that the candidate, officeholder, or committee, an agent of the candidate, officeholder, or committee, or a person with whom the candidate, officeholder, or committee contracts does not use computer equipment to solicit or acknowledge political contributions or to keep records of political contribution, political expenditures, or persons making political contributions to the candidate, officeholder, or committee. Provides that an affidavit under this subsection must be filed with each report filed under Subsection (a). Provides that the affidavit must include a statement and sets forth the contents of the statement. (d) Sets forth that the circumstances in which a candidate, officeholder, or political committee that is required to file reports with the commission, other than a candidate for or a holder of a statewide office or a specific-purpose committee for supporting or opposing such a candidate or assisting such an officeholder, may file reports that comply with Subsection (a) are: if the candidate or committee does not accept political contributions that in the aggregate exceed $20,000 or make political expenditures that in the aggregate exceed $20,000 in a calendar year. Requires a candidate, officeholder, or political committee that exceeds the limit to file the report as required by Subsection(b) for any reporting period during the calendar year in which the limit was exceeded, other than a reporting period that has ended on the date the limit is exceeded and each reporting period during a calendar year subsequent to the calendar year in which the limit is exceeded.. (e) Authorizes a candidate for an office described by Section 252.005(5) or a specificpurpose committee for supporting or opposing only candidates for an office described by Section 252.005(5) or a measure described by Section 252.007(5) to file reports that comply with Subsection (a) (f) Authorizes an individual required to file a report with the commission in connection with specified direct campaign expenditures to file a report that complies with Subsection (a). (g) Authorizes a person required to file a report with the commission in connection with the office of district judge, district attorney, or judge of a multi county statutory county court to file reports that comply with Subsection (a). (h) Adds language to specify the requirement of an affidavit to file a report applies to a report that is not filed by electronic transfer. Provides that a report filed under this chapter by electronic transfer must be under oath by the person required to file the report, and must contain the digitized signature of the person required to file the report. Provides that a report filed under this chapter is considered to be under oath by the person required to file the report, and the person is subject to prosecution regardless of the absence or a defect in the affidavit. (i) Requires each person required to file reports with the commission that comply with Subsection (b) to file with the commission a written statement providing the manner of electronic transfer that the person will use to file the report not later than the 30th day before the filing deadline for the first report. Requires a person who intends to change the manner of filing to notify the commission of the change not later than the 30th day before the filing deadline for the report to which the change applies. Authorizes the commission to accept as authentic a report filed in any manner that complies with Subsection (b), if a statement is not filed by the person. Requires the commission to promptly notify the person in writing that the commission has received a report filed in a different manner than expected if the commission receives a report that is not filed in the manner described by the person's most recent statement. (j) Redesignated from Subsection (c). (k) Redesignated from Subsection (d). (l) Redesignated from Subsection (g). SECTION 2. Amends Subchapter B, Chapter 254, Election Code, by adding Sections 254.0361 and 254.0362, as follows: Sec. 254.0361. REQUIREMENTS FOR ELECTRONIC FILING SOFTWARE. Sets forth requirements for computer software provided or approved by the commission for use under Section 254.036(b). Requires the commission to conduct at least one public hearing to discuss specifications for computer software developed, purchased, or licensed for use under Section 254.036 before determining the specifications. Requires the commission to accept public comments concerning the software specifications for at least 10 days. Sec. 254.0362. USE OF PUBLICLY ACCESSIBLE COMPUTER TERMINAL FOR PREPARATION OF REPORTS. (a) Authorizes a person who is required to file reports under this chapter to use a publicly accessible computer terminal that has Internet access and web browser software to prepare the reports. (b) Authorizes a public entity to prescribe reasonable restrictions on the use of a publicly accessible computer terminal for preparation of reports under this chapter, except that a public entity may not prohibit a person from using a computer terminal for preparation of reports during the public entity's regular business hours if the person requests to use the computer terminal less than 48 hours before a reporting deadline to which the person is subject. (c) Provides that this section does not require a public entity to proved a person with consumable materials, including paper and computer diskettes, in conjunction with the use of a publicly accessible computer terminal. (d) Prohibits an officeholder from using a computer issued to the officeholder for official use to prepare a report under this title. (e) Defines "public entity" and "publicly accessible computer terminal." SECTION 3. Amends Subchapter B, Chapter 254, Election Code, by adding Sections 254.0401 and 254.0402, as follows: Sec. 254.0401. AVAILABILITY OF ELECTRONIC REPORTS ON INTERNET. (a) Requires the commission to make each report filed with the commission under Section 254.036(b) available to the public on the Internet within two days after the report is filed. (b) Prohibits the commission from making a report filed with the commission under Section 254.036(b) for a reporting deadline by any candidate for a particular office or by a specific-purpose committee for supporting or opposing only one candidate for a particular office available to the public on the Internet until each candidate for that office and each specific-purpose committee for supporting or opposing only one candidate for that office, other than a candidate or committee to which Section 254.036(c) or (d) applies, has filed a report for that reporting deadline. Requires the commission to make each report in connection with that office available on the Internet and by any other electronic means on the 21st day after the date of the filing deadline, for a report other than a report required to be filed under Section 254.064(c), or the fourth day after the date of the filing deadline, for a report required to be filed under Section 254.064(c). (c) Provides that Subsection (b) does not apply to a report filed under Section 254.038. (d) Provides that this access to reports is in addition to the public's access to the information through other means, except as provided by Subsection (b). (e) Requires the commission to remove the address, except for city, state, and zip code, of each person listed as having made a political contribution before placing the report on the Internet. Provides that the address information removed must remain available on the report maintained in the commission's office but may not be available electronically at that office. Sec. 254.0402. PUBLIC INSPECTION OF REPORTS. Prohibits the authority with whom a report is filed under this chapter from requiring a person examining the report to provide any information or identification. Requires the commission to make information from reports filed with the commission under Section 254.036(b) available by electronic means including providing access to computer terminals at the commission's office, providing information on computer diskette for purchase at a reasonable cost, and providing modem or other electronic access to the information. SECTION 4. Amends Section 254.041(a), Election Code, by adding language to provide that a person who is required by this chapter to file a report commits an offense if the person knowingly fails to file a report by computer diskette, modem, or other means of electronic transfer, if the person is required to file reports that comply with Section 254.036(b). Makes conforming changes. SECTION 5. Effective date: September 1, 1999. SECTION 6. Makes application of Section 254.036, Election Code prospective to January 1, 2000. Authorizes a person who is required to file a report under Section 254.036(b) to file a report under Section 254.036(a) as amended by this Act unless not later than January 1, 2000: the commission has developed, purchased, or obtained a license to use computer software that complies with Section 254.0361, Election Code, as added by this Act, and that permits a person to electronically file a report under Chapter 254, Election Code, as required by Section 254.036, Election Code, as amended by this Act, by using a publicly accessibly computer terminal, as defined by Section 254.0362, Election Code, as added by this Act, and; the commission has determined that the computer software has been sufficiently tested and demonstrated to be reliable when used with a publicly accessible computer terminal. SECTION 7. Emergency clause.