HBA-GUM, GUM S.B. 1364 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1364
By: Harris
Elections
5/14/1999
Engrossed



BACKGROUND AND PURPOSE 

Currently, the Election Code defines an out-of-state political committee
(PAC) as a political committee that makes 80 percent or more of its
political expenditures outside this state in a period of 12 months.
Inflation and the growing amount of campaign dollars moving into PACs have
created a loophole in campaign finance reporting.  S.B. 1364 redefines an
out-of-state political committee to provide that such a political committee
is a committee that makes 90 percent or more of its political expenditures
outside this state in a period of 12 months, and provides additional
limitations on contributions by an out-of-state political committee to a
candidate, officeholder, or political committee of this state. 

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 251.001(15), Election Code, to redefine
"out-of-state political committee" to mean a political committee that makes
90 percent, rather than 80 percent, or more of the committee's total
political expenditures in any combination of elections outside this state
and federal offices not voted on in this state.  

SECTION 2.  Amends Section 253.032, Election Code, by adding Subsections
(f), (g) and (h), as follows: 

(f)  Prohibits a candidate, officeholder, or political committee from
violating any provision of this title (Regulating Political Funds and
Campaigns) by accepting any contribution or transfer from any out-of-state
political committee, regardless of such committee's compliance with any
reporting requirement of that title, notwithstanding any other section of
this title.   

(g)  Provides that out-of-state persons, including but not limited to
out-of-state political committees, that make contributions or transfers of
funds to a political party pursuant to Section 253.104 (Contribution to
Political Party) or Section 257.002 (Requirements Relating to Corporate or
Labor Union Contributions) are exempt from the reporting requirements of
this title.  

(h)  Authorizes any federally-registered out-of-state political committee
that contributes to a Texas candidate to satisfy the reporting requirements
of this title, by filing with the Texas Ethics Commission (commission) a
copy of its federal registration, and a copy of the committee's most
recently filed Federal Election Commission finance report, when a
contribution is made to a Texas candidate or committee.  

SECTION 3.  Effective date: September 1, 1999.

SECTION 4.  Emergency clause.