SRC-ARR C.S.S.B. 1364 76(R)BILL ANALYSIS Senate Research CenterS.B. 1364 By: Harris State Affairs 5/3/1999 Committee Report (Amended) DIGEST Currently, the Election Code has a separate provision for out-of-state political committees (PACs) and requires such PACs to report in Texas only if they make 20 percent or more of their expenditures in Texas. Inflation and the growing amount of campaign dollars moving into PACs has gradually made this provision into an area in which there can be a considerable gap in campaign finance reporting due to raise monies out-of-state, thus by passing state regulations. S.B. 1364 corrects for inflation by raising the percent of donations made outside Texas. PURPOSE As proposed, S.B. 1364 redefines out-of-state political committees. RULEMAKING AUTHORITY This bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subsection (15), Section 251.001, 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) and (g), to prohibit a candidate, officeholder or political committee from violating any provisions of Title 15, Election Code, by accepting any contribution or transfer from any out-of-state political committee's compliance with any reporting requirement of Title 15, Election Code. 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 or Section 257.002 are exempt from the reporting requirements of this Title. Authorizes any federally-registered out-of-state political committee that contributes to a Texas candidate to satisfy the reporting requirements of Title 15, Election Code, by taking certain action. SECTION 3. Effective date: September 1, 1999. SECTION 4. Emergency clause. SUMMARY OF COMMITTEE CHANGES SECTION 2. Adds new SECTION 2 to amend Section 253.032, Election Code, to prohibit a candidate, officeholder or political committee form violating any provisions of Title 15, Election Code. 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 or Section 257.002, are exempt from the reporting requirements of this Title. Authorizes any federally-registered out-of-state political committee that contributes to a Texas candidate to satisfy the reporting requirements of Title 15, Election Code, by taking certain action.