By Gallego                                               H.B. No. 4
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to regulating and reporting certain political
 1-3     contributions and certain political expenditures and to regulating
 1-4     certain political advertising; providing civil 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.  RESTRICTIONS ON POLITICAL CONTRIBUTIONS AND
 1-9      EXPENDITURES IN CONNECTION WITH EXECUTIVE AND LEGISLATIVE OFFICES
1-10           Sec. 253.201.  APPLICABILITY OF SUBCHAPTER.  This subchapter
1-11     applies only to a political contribution or political expenditure
1-12     in connection with:
1-13                 (1)  a statewide office other than a judicial office;
1-14                 (2)  the office of state senator;
1-15                 (3)  the office of state representative; or
1-16                 (4)  the office of member, State Board of Education.
1-17           Sec. 253.202.  DEFINITION.  In this subchapter, "principal
1-18     political committee of a candidate or officeholder" means a
1-19     specific-purpose committee established under Section 253.203 for
1-20     supporting a candidate or assisting an officeholder.
1-21           Sec. 253.203.  PRINCIPAL POLITICAL COMMITTEE.  (a)  A
 2-1     candidate for or holder of an office covered by this subchapter
 2-2     shall designate in writing a specific-purpose committee to serve as
 2-3     the person's principal political committee.
 2-4           (b)  A designation under Subsection (a) must be:
 2-5                 (1)  made not later than the 15th day after the date
 2-6     the person becomes a candidate or officeholder; and
 2-7                 (2)  filed with the commission.
 2-8           (c)  The name of a principal political committee must include
 2-9     the candidate's or officeholder's name.
2-10           (d)  A candidate or officeholder may not have more than one
2-11     principal political committee at a time.  A person who is both a
2-12     candidate and an officeholder may not have more than one principal
2-13     political committee.  A candidate who becomes an officeholder is
2-14     not required to designate a new principal political committee.
2-15           (e)  A prohibition or restriction imposed by this title on a
2-16     candidate or officeholder applies to the principal political
2-17     committee of a candidate or officeholder.
2-18           (f)  Except as provided by this section, a person may not
2-19     establish a specific-purpose committee for supporting or opposing a
2-20     candidate for or assisting a holder of an office covered by this
2-21     subchapter.
2-22           Sec. 253.204.  LIABILITY OF CANDIDATE OR OFFICEHOLDER FOR ACT
2-23     OR OMISSION OF PRINCIPAL POLITICAL COMMITTEE.  A candidate or
2-24     officeholder is civilly liable for an act or omission by the
2-25     person's principal political committee in connection with a
 3-1     requirement or prohibition prescribed by this title only if the
 3-2     person authorized, requested, commanded, performed, or recklessly
 3-3     or negligently tolerated the act or omission.
 3-4           Sec. 253.205.  ACCEPTANCE OF POLITICAL CONTRIBUTION BY
 3-5     CANDIDATE OR OFFICEHOLDER.  (a)  Except as provided by Subsection
 3-6     (b), a candidate or officeholder may not knowingly accept a
 3-7     political contribution in connection with the person's own
 3-8     candidacy or office.
 3-9           (b)  A candidate or officeholder may accept a political
3-10     contribution on behalf of the person's principal political
3-11     committee unless the committee itself would be prohibited from
3-12     accepting the contribution.
3-13           Sec. 253.206.  LIMIT ON CONTRIBUTION BY CHILD.  (a)  A child
3-14     may not knowingly make or authorize political contributions to the
3-15     principal political committee of a candidate or officeholder that,
3-16     in connection with each election in which the candidate or
3-17     officeholder is involved, in the aggregate exceed $100.
3-18           (b)  A person may not knowingly accept a political
3-19     contribution, and shall refuse a political contribution that is
3-20     received, in violation of Subsection (a).
3-21           (c)  In this section, "child" means a person under 18 years
3-22     of age who is not and has not been married or who has not had the
3-23     disabilities of minority removed for general purposes.
3-24           Sec. 253.207.  NOTICE REQUIRED FOR CERTAIN DIRECT CAMPAIGN
3-25     EXPENDITURES.  (a)  A person other than the principal political
 4-1     committee of the state executive committee or a county executive
 4-2     committee of a political party may not make a direct campaign
 4-3     expenditure for the purpose of supporting or opposing one or more
 4-4     candidates unless the person files with the commission and the
 4-5     principal political committee of each candidate whom the
 4-6     expenditure benefits a written declaration of the person's intent
 4-7     to make the expenditure not later than 72 hours before the
 4-8     expenditure is made.  The declaration must include the amount of
 4-9     the expenditure.
4-10           (b)  The commission shall file a declaration received under
4-11     Subsection (a) with the records of the principal political
4-12     committee of each candidate whom the political expenditure
4-13     benefits.  Not later than 24 hours after receiving a declaration
4-14     under Subsection (a), the commission shall deliver a copy of the
4-15     declaration by telephonic facsimile machine or overnight mail to
4-16     the principal political committee of each candidate who opposes the
4-17     candidate whom the expenditure benefits.  For purposes of this
4-18     section, a political expenditure that opposes a candidate is
4-19     considered to benefit each candidate for the office other than the
4-20     opposed candidate.
4-21           (c)  A political expenditure made by a political committee or
4-22     other association that consists only of costs incurred in
4-23     contacting the committee's or association's dues-paying membership
4-24     may be made without the declaration required by Subsection (a).
4-25           (d)  This section does not apply to a political expenditure
 5-1     by a candidate's principal political committee in connection with
 5-2     the candidate's election.
 5-3           Sec. 253.208.  FAIR CAMPAIGN SPENDING FUND.  (a)  The fair
 5-4     campaign spending fund is a special account in the general revenue
 5-5     fund.
 5-6           (b)  The fair campaign spending fund consists of:
 5-7                 (1)  damages recovered under Section 253.133 for
 5-8     violations of this subchapter;
 5-9                 (2)  civil penalties imposed under Section 571.173,
5-10     Government Code, for violations of this subchapter; and
5-11                 (3)  any gifts or grants received by the commission
5-12     under Subsection (f).
5-13           (c)  The fair campaign spending fund may be used only for:
5-14                 (1)  voter education projects that relate to campaigns
5-15     for offices covered by this subchapter; and
5-16                 (2)  payment of costs incurred in imposing civil
5-17     penalties for violations of this subchapter.
5-18           (d)  To the extent practicable, the fund shall be permitted
5-19     to accumulate until the balance is sufficient to permit the
5-20     publication of a voter's guide as provided by Section 253.209.
5-21           (e)  The commission may use money in the fair campaign
5-22     spending fund to produce public service announcements to educate
5-23     voters about this subchapter.
5-24           (f)  The commission may accept gifts and grants for the
5-25     purposes described by Subsections (c)(1), (d), and (e).  Funds
 6-1     received under this subsection shall be deposited to the credit of
 6-2     the fair campaign spending fund.
 6-3           (g)  The fair campaign spending fund is exempt from Section
 6-4     403.095, Government Code.
 6-5           Sec. 253.209.  VOTER'S GUIDE.  (a)  If the necessary money is
 6-6     available under Section 253.208, the commission may publish a
 6-7     voter's guide listing candidates for offices covered by this
 6-8     subchapter, their backgrounds, and similar information.
 6-9           (b)  The commission shall adopt rules under which a candidate
6-10     must provide information to the commission for inclusion in the
6-11     voter's guide.  The rules may not restrict the content of a
6-12     candidate's information by any means other than prescribing a
6-13     maximum length.
6-14           (c)  Not later than the seventh day before the date early
6-15     voting by mail begins, the commission shall:
6-16                 (1)  make the voter's guide available for publication
6-17     by newspapers in each part of the state;
6-18                 (2)  make the voter's guide available through the
6-19     Internet; and
6-20                 (3)  make the voter's guide available through the
6-21     comptroller's state government electronic billboard.
6-22           (d)  In this section, "Internet" means the largest
6-23     nonproprietary nonprofit cooperative public computer network,
6-24     popularly known as the Internet.
6-25           SECTION 2.  Section 84.001, Election Code, is amended to read
 7-1     as follows:
 7-2           Sec. 84.001.  APPLICATION REQUIRED.  (a)  To be entitled to
 7-3     vote an early voting ballot by mail, a person who is eligible for
 7-4     early voting must make an application for an early voting ballot to
 7-5     be voted by mail as provided by this title.
 7-6           (b)  An application must be in writing and signed by the
 7-7     applicant.
 7-8           (c)  An applicant is not required to use an official
 7-9     application form.
7-10           (d)  An applicant may not use an application form that is
7-11     part of or is included with a campaign communication or political
7-12     advertising, as defined by Section 251.001, unless the application
7-13     form and campaign communication or political advertising are
7-14     provided to the applicant by:
7-15                 (1)  an individual, candidate, or officeholder not
7-16     working in concert with another person; or
7-17                 (2)  the principal political committee of the state
7-18     executive committee or a county executive committee of a political
7-19     party; or
7-20           (e)  An application form that is provided under the terms of
7-21     subsection (d) must be returned directly to the county clerk by the
7-22     person that is applying for the early voting ballot.
7-23           (f)  An applicant for a ballot to be voted by mail may apply
7-24     for ballots for the main election and any resulting runoff election
7-25     on the same application.  The timeliness of the application for
 8-1     both elections is determined in relation to the main election.
 8-2     However, if the application is not timely for the main election,
 8-3     the timeliness of the application for the runoff election is
 8-4     determined in relation to that election.
 8-5           (g) [(e)]  A person who has not made an application as
 8-6     provided by this title is not entitled to receive an early voting
 8-7     ballot to be voted by mail.
 8-8           SECTION 3.  Section 251.001, Election Code, is amended by
 8-9     amending Subdivisions (14) and (16) and adding Subdivision (21) to
8-10     read as follows:
8-11                 (14)  "General-purpose committee" means a political
8-12     committee that has among its principal purposes:
8-13                       (A)  supporting or opposing:
8-14                             (i)  two or more candidates who are
8-15     unidentified or are seeking offices that are unknown; or
8-16                             (ii)  one or more unidentified measures
8-17     [that are unidentified]; or
8-18                       (B)  assisting two or more officeholders who are
8-19     unidentified.
8-20                 (16)  "Political advertising" means a communication
8-21     supporting or opposing a candidate for nomination or election to a
8-22     public office or office of a political party, a political party, a
8-23     public officer, or a measure that:
8-24                       (A)  in return for consideration[,] is:
8-25                             (i)  published in a newspaper, magazine, or
 9-1     other periodical;
 9-2                             (ii)  [or is] broadcast by radio or
 9-3     television; or
 9-4                             (iii)  delivered through the use of an
 9-5     automated dial announcing device, as defined by Section 55.121,
 9-6     Utility Code; or
 9-7                       (B)  appears in a pamphlet, circular, flier,
 9-8     billboard or other sign, bumper sticker, or similar form of written
 9-9     communication.
9-10                 (21)  "Unidentified measure" means a question or
9-11     proposal that is intended to be submitted in an election for an
9-12     expression of the voters' will and that is not yet legally required
9-13     to be submitted in an election.  The term does not include the
9-14     circulation or submission of a petition to determine whether a
9-15     question or proposal is required to be submitted in an election for
9-16     an expression of the voters' will.
9-17           SECTION 4.  Section 253.003(c), Election Code, is amended to
9-18     read as follows:
9-19           (c)  This section does not apply to a political contribution
9-20     made or accepted in violation of Subchapter F or G.
9-21           SECTION 5.  Section 253.004(b), Election Code, is amended to
9-22     read as follows:
9-23           (b)  This section does not apply to a political expenditure
9-24     made or authorized in violation of Subchapter F or G.
9-25           SECTION 6.  Section 253.134, Election Code, is amended to
 10-1    read as follows:
 10-2          Sec. 253.134.  Civil Penalties Imposed by Commission.
 10-3    (a)  This title does not prohibit the imposition of civil penalties
 10-4    by the commission in addition to criminal penalties or other
 10-5    sanctions imposed by law.
 10-6          (b)  The commission, subject to approval of the attorney
 10-7    general, may contract with a nongovernmental entity to collect a
 10-8    civil penalty imposed under Section 571.173, Government Code, for a
 10-9    violation of this chapter that is not paid before the 120th day
10-10    after the date it is imposed.
10-11          SECTION 7.  Section 254.031, Election Code, is amended to
10-12    read as follows:
10-13          Sec. 254.031.  General Contents of Reports.  (a)  Except as
10-14    otherwise provided by this chapter, each report filed under this
10-15    chapter must include:
10-16                (1)  the amount of political contributions from each
10-17    person that in the aggregate exceed $100 and that are accepted
10-18    during the reporting period by the person or committee required to
10-19    file a report under this chapter, the full name and address of the
10-20    person making the contributions, and the dates of the
10-21    contributions;
10-22                (2)  for each individual from whom the person or
10-23    committee required to file the report has accepted political
10-24    contributions that in the aggregate exceed $100 and that are
10-25    accepted during the reporting period:
 11-1                      (A)  the individual's principal occupation or job
 11-2    title;
 11-3                      (B)  the full name of the individual's employer,
 11-4    if any; and
 11-5                      (C)  if the person required to file the report is
 11-6    a candidate or officeholder, the aggregate total of political
 11-7    contributions accepted from the individual since the date of the
 11-8    last general election for the office sought by the candidate or
 11-9    held by the officeholder, other than a contribution designated in
11-10    writing for that general election;
11-11                (3)  the amount of loans that are made during the
11-12    reporting period for campaign or officeholder purposes to the
11-13    person or committee required to file the report and that in the
11-14    aggregate exceed $50, the dates the loans are made, the interest
11-15    rate, the maturity date, the type of collateral for the loans, if
11-16    any, the full name and address of the person or financial
11-17    institution making the loans, the full name and address, principal
11-18    occupation, and name of the employer of each guarantor of the
11-19    loans, the amount of the loans guaranteed by each guarantor, and
11-20    the aggregate principal amount of all outstanding loans as of the
11-21    last day of the reporting period;
11-22                (4) [(3)]  the amount of political expenditures that in
11-23    the aggregate exceed $50 and that are made during the reporting
11-24    period, the full name and address of the persons to whom the
11-25    expenditures are made, and the dates and purposes of the
 12-1    expenditures;
 12-2                (5) [(4)]  the amount of each payment made during the
 12-3    reporting period from a political contribution if the payment is
 12-4    not a political expenditure, the full name and address of the
 12-5    person to whom the payment is made, and the date and purpose of the
 12-6    payment;
 12-7                (6) [(5)]  the total amount or a specific listing of
 12-8    the political contributions of $50 or less accepted and the total
 12-9    amount or a specific listing of the political expenditures of $50
12-10    or less made during the reporting period;
12-11                (7) [(6)]  the total amount of all political
12-12    contributions accepted and the total amount of all political
12-13    expenditures made during the reporting period; and
12-14                (8) [(7)]  the name of each candidate or officeholder
12-15    who benefits from a direct campaign expenditure made during the
12-16    reporting period by the person or committee required to file the
12-17    report, and the office sought or held, excluding a direct campaign
12-18    expenditure that is made by the principal political committee of a
12-19    political party on behalf of a slate of two or more nominees of
12-20    that party.
12-21          (b)  A person is considered to be in compliance with
12-22    Subsection (a)(2) if the person or the person's campaign treasurer
12-23    shows that best efforts have been used to obtain, maintain, and
12-24    report the information required by that subsection.
12-25          (c)  If no reportable activity occurs during a reporting
 13-1    period, the person required to file a report shall indicate that
 13-2    fact in the report.
 13-3          SECTION 8.  Section 254.061, Election Code, is amended to
 13-4    read as follows:
 13-5          Sec. 254.061.  Additional Contents of Reports.  In addition
 13-6    to the contents required by Section 254.031, each report by a
 13-7    candidate must include:
 13-8                (1)  the candidate's full name and address, the office
 13-9    sought, and the identity and date of the election for which the
13-10    report is filed;
13-11                (2)  the campaign treasurer's name, residence or
13-12    business street address, and telephone number;
13-13                (3)  for each political committee from which the
13-14    candidate received notice under Section 254.128 or 254.161:
13-15                      (A)  the committee's full name and address;
13-16                      (B)  an indication of whether the committee is a
13-17    general-purpose committee or a specific-purpose committee; [and]
13-18                      (C)  the full name and address of the committee's
13-19    campaign treasurer; and
13-20                      (D)  the amount of each political contribution or
13-21    political expenditure;
13-22                (4)  the full name and address of each individual
13-23    acting as a campaign treasurer of a political committee under
13-24    Section 253.062 from whom the candidate received notice under
13-25    Section 254.128 or 254.161; and
 14-1                (5)  on a separate page or pages of the report, the
 14-2    identification of any payment from political contributions made to
 14-3    a business in which the candidate has a participating interest of
 14-4    more than 10 percent, holds a position on the governing body of the
 14-5    business, or serves as an officer of the business.
 14-6          SECTION 9.  Subchapter C, Chapter 254, Election Code, is
 14-7    amended by adding Section 254.0612 to read as follows:
 14-8          Sec. 254.0612.  REPORTS BY PRINCIPAL POLITICAL COMMITTEE OF
 14-9    EXECUTIVE OR LEGISLATIVE CANDIDATE; ADDITIONAL CONTENTS.  (a)  The
14-10    principal political committee of a candidate for an office covered
14-11    by Subchapter G, Chapter 253, shall comply with this chapter as if
14-12    the committee were a candidate.
14-13          (b)  In addition to the contents required by Sections 254.031
14-14    and 254.061, each report by the principal political committee of a
14-15    candidate for an office covered by Subchapter G, Chapter 253, must
14-16    include for each political expenditure made by the candidate from
14-17    the candidate's personal funds or other assets, the information
14-18    required by Section 254.031(a)(4).
14-19          (c)  In this section, "principal political committee of a
14-20    candidate" means a specific-purpose committee established under
14-21    Section 253.203 for supporting a candidate.
14-22          SECTION 10.  Section 254.091, Election Code, is amended to
14-23    read as follows:
14-24          Sec. 254.091.  Additional Contents of Reports.  In addition
14-25    to the contents required by Section 254.031, each report by an
 15-1    officeholder must include:
 15-2                (1)  the officeholder's full name and address and the
 15-3    office held;
 15-4                (2)  for each political committee from which the
 15-5    officeholder received notice under Section 254.128 or 254.161:
 15-6                      (A)  the committee's full name and address;
 15-7                      (B)  an indication of whether the committee is a
 15-8    general-purpose committee or a specific-purpose committee; [and]
 15-9                      (C)  the full name and address of the committee's
15-10    campaign treasurer; and
15-11                      (D)  the amount of each political contribution or
15-12    political expenditure; and
15-13                (3)  on a separate page or pages of the report, the
15-14    identification of any payment from political contributions made to
15-15    a business in which the officeholder has a participating interest
15-16    of more than 10 percent, holds a position on the governing body of
15-17    the business, or serves as an officer of the business.
15-18          SECTION 11.  Subchapter D, Chapter 254, Election Code, is
15-19    amended by adding Section 254.0912 to read as follows:
15-20          Sec. 254.0912.  REPORTS BY PRINCIPAL POLITICAL COMMITTEE OF
15-21    EXECUTIVE OR LEGISLATIVE OFFICEHOLDER; ADDITIONAL CONTENTS.  (a)
15-22    The principal political committee of an officeholder covered by
15-23    Subchapter G, Chapter 253, shall comply with this chapter as if the
15-24    committee were an officeholder.
15-25          (b)  In addition to the contents required by Sections 254.031
 16-1    and 254.091, each report by the principal political committee of an
 16-2    officeholder covered by Subchapter G, Chapter 253, must include the
 16-3    contents prescribed by Section 254.0612.
 16-4          (c)  In this section, "principal political committee of an
 16-5    officeholder" means a specific-purpose committee established under
 16-6    Section 253.203 for assisting an officeholder.
 16-7          SECTION 12.  Section 254.128, Election Code, is amended to
 16-8    read as follows:
 16-9          Sec. 254.128.  Notice to Candidate and Officeholder of
16-10    Contributions and Expenditures.  (a)  If a specific-purpose
16-11    committee accepts political contributions or makes political
16-12    expenditures for a candidate or officeholder, the committee's
16-13    campaign treasurer shall deliver written notice of that fact to the
16-14    affected candidate or officeholder not later than the end of the
16-15    period covered by the report in which the reportable activity
16-16    occurs.
16-17          (b)  The notice must include:
16-18                (1)  the full name and address of the political
16-19    committee and its campaign treasurer;
16-20                (2)  [and] an indication that the committee is a
16-21    specific-purpose committee; and
16-22                (3)  the amount of each political contribution accepted
16-23    or political expenditure made.
16-24          (c)  For purposes of this section, a specific-purpose
16-25    committee that makes a political expenditure that benefits more
 17-1    than one candidate or officeholder shall, in compliance with rules
 17-2    adopted by the commission, allocate a portion of the expenditure to
 17-3    each candidate or officeholder whom the expenditure benefits in
 17-4    proportion to the benefit received by the candidate or
 17-5    officeholder.  For purposes of this subsection:
 17-6                (1)  a political expenditure for supporting a candidate
 17-7    or assisting an officeholder benefits each candidate or
 17-8    officeholder supported or assisted; and
 17-9                (2)  a political expenditure for opposing a candidate
17-10    benefits each opponent of the candidate.
17-11          (d)  A campaign treasurer commits an offense if the campaign
17-12    treasurer fails to comply with this section.  An offense under this
17-13    section is a Class A misdemeanor.
17-14          SECTION 13.  Subchapter F, Chapter 254, Election Code, is
17-15    amended by adding Sections 254.1511 and 254.1512 to read as
17-16    follows:
17-17          Sec. 254.1511.  REPORTS BY PRINCIPAL POLITICAL COMMITTEE OF
17-18    POLITICAL PARTY; ADDITIONAL CONTENTS.  (a)  Each report by the
17-19    principal political committee of the state executive committee of a
17-20    political party must list the political contributions and political
17-21    expenditures made in connection with each candidate or officeholder
17-22    on a separate schedule.
17-23          (b)  In addition to the contents required by Sections 254.031
17-24    and 254.151, each report by the principal political committee of
17-25    the state executive committee of a political party must include,
 18-1    for each candidate for or holder of an office covered by Subchapter
 18-2    G, Chapter 253, for whose benefit the committee makes a political
 18-3    contribution or political expenditure in the calendar year:
 18-4                (1)  the total amount of political contributions made
 18-5    during the calendar year to the principal political committee of
 18-6    the candidate or officeholder; and
 18-7                (2)  the total amount of political expenditures made
 18-8    during the calendar year for the benefit of the candidate or
 18-9    officeholder.
18-10          (c)  In this section, "principal political committee of a
18-11    candidate or officeholder" has the meaning assigned by Section
18-12    253.202.
18-13          Sec. 254.1512.  CONTENTS OF REPORTS OF FEDERALLY REGISTERED
18-14    COMMITTEE.  (a)  This section applies only to a general-purpose
18-15    committee that is registered under Subchapter I, Chapter 14, Title
18-16    2, United States Code.
18-17          (b)  Each report by the campaign treasurer of a
18-18    general-purpose committee to which this section applies must
18-19    include the contents required by Sections 254.031 and 254.151,
18-20    except as provided by this section.
18-21          (c)  Instead of the information required by Sections
18-22    254.031(a)(1)-(4) and (6), the committee's report must include:
18-23                (1)  for each political contribution accepted during
18-24    the reporting period by the committee that, when aggregated with
18-25    each other political contribution accepted by the committee during
 19-1    the calendar year from the person making the contribution, exceeds
 19-2    $200:
 19-3                      (A)  the amount of the contribution;
 19-4                      (B)  the full name and address and principal
 19-5    occupation of the person making the contribution; and
 19-6                      (C)  the date of the contribution;
 19-7                (2)  for each loan made during the reporting period to
 19-8    the committee for campaign purposes that, when aggregated with each
 19-9    other loan made to the committee during the calendar year by the
19-10    person making the loan, exceeds $200:
19-11                      (A)  the amount of the loan;
19-12                      (B)  the full name and address of the person or
19-13    financial institution making the loan;
19-14                      (C)  the date of the loan;
19-15                      (D)  the interest rate;
19-16                      (E)  the maturity date;
19-17                      (F)  the type of collateral for the loan, if any;
19-18                      (G)  the full name and address, principal
19-19    occupation, and name of the employer of each guarantor of the loan;
19-20    and
19-21                      (H)  the amount of the loan guaranteed by each
19-22    guarantor;
19-23                (3)  for each political expenditure made during the
19-24    reporting period by the committee that, when aggregated with each
19-25    other political expenditure made by the committee during the
 20-1    calendar year to the person, exceeds $200:
 20-2                      (A)  the amount of the expenditure;
 20-3                      (B)  the full name and address of the person to
 20-4    whom the expenditure is made; and
 20-5                      (C)  the date of the expenditure;
 20-6                (4)  the total amount or a specific listing of the
 20-7    political contributions of $200 or less accepted and the total
 20-8    amount of political expenditures of $200 or less made during the
 20-9    reporting period; and
20-10                (5)  the aggregate principal amount of all outstanding
20-11    loans as of the last day of the reporting period.
20-12          (d)  The committee's report need not include the amount of a
20-13    payment that is reported as a contribution under Subchapter I,
20-14    Chapter 14, Title 2, United States Code.
20-15          (e)  Section 254.156 does not apply to a committee to which
20-16    this section applies.
20-17          (f)  Notwithstanding Section 571.065, Government Code, a
20-18    committee to which this section applies may report the information
20-19    required by Subsection (c) on a form adopted or accepted by the
20-20    Federal Elections Commission.
20-21          SECTION 14.  Section 254.203(a), Election Code, is amended to
20-22    read as follows:
20-23          (a)  A person may not retain political contributions covered
20-24    by this title, assets purchased with the contributions, or interest
20-25    and other income earned on the contributions for more than six
 21-1    years after the later of:
 21-2                (1)  the date the person [either] ceases to be an
 21-3    officeholder; or
 21-4                (2)  the date of the most recent election in which the
 21-5    person was a candidate [or files a final report under this chapter,
 21-6    whichever is later].
 21-7          SECTION 15.  Section 254.204(a), Election Code, is amended to
 21-8    read as follows:
 21-9          (a)  At the end of the six-year period prescribed by Section
21-10    254.203, the former officeholder or candidate shall remit any
21-11    unexpended political contributions to one or more of the following:
21-12                (1)  the political party with which the person was
21-13    affiliated or aligned when the person's name last appeared on a
21-14    ballot;
21-15                (2)  a candidate or political committee;
21-16                (3)  the comptroller [of public accounts] for deposit
21-17    in the state treasury [State Treasury];
21-18                (4)  one or more persons from whom political
21-19    contributions were received, in accordance with Subsection (d);
21-20                (5)  a recognized tax-exempt, charitable organization
21-21    formed for educational, religious, or scientific purposes; [or]
21-22                (6)  a public or private postsecondary educational
21-23    institution or an institution of higher education as defined by
21-24    Section 61.003[(8)], Education Code, solely for the purpose of
21-25    assisting or creating a scholarship program; or
 22-1                (7)  the commission for deposit in the fair campaign
 22-2    spending fund under Section 253.208.
 22-3          SECTION 16.  Section 255.001(a), Election Code, is amended to
 22-4    read as follows:
 22-5          (a)  A person may not knowingly enter into a contract or
 22-6    other agreement to print, copy, publish, or broadcast political
 22-7    advertising that does not indicate in the advertising:
 22-8                (1)  that it is political advertising; and
 22-9                (2)  the full name and address of:
22-10                      (A)  [either] the individual who caused the
22-11    advertising to be printed, copied, published, or broadcast;
22-12                      (B)  the campaign treasurer of the candidate,
22-13    officeholder, or political committee on whose behalf the
22-14    advertising is printed, copied, published, or broadcast; or
22-15                      (C)  the candidate, officeholder, or political
22-16    committee on whose behalf the advertising is printed, copied,
22-17    published, or broadcast [personally entered into the contract or
22-18    agreement with the printer, publisher, or broadcaster or the person
22-19    that individual represents; and]
22-20                [(3)  in the case of advertising that is printed or
22-21    published, the address of either the individual who personally
22-22    entered into the agreement with the printer or publisher or the
22-23    person that individual represents].
22-24          SECTION 17.  Chapter 255, Election Code, is amended by adding
22-25    Section 255.009 to read as follows:
 23-1          Sec. 255.009.  DISCLOSURE ON POLITICAL ADVERTISING CONCERNING
 23-2    CERTAIN UNPAID CIVIL PENALTIES.  (a)  Political advertising by a
 23-3    person who fails to pay a civil penalty imposed by the commission
 23-4    for a violation of this title must, in addition to any other
 23-5    disclosure required under this chapter, include the following
 23-6    statement:  "(Name of candidate or committee) has failed to pay a
 23-7    civil penalty imposed by the Texas Ethics Commission for a
 23-8    violation of Title 15, Election Code."
 23-9          (b)  The commission shall adopt rules providing for:
23-10                (1)  the minimum size of the disclosure required by
23-11    this section in political advertising that appears on television or
23-12    in writing; and
23-13                (2)  the minimum duration of the disclosure required by
23-14    this section in political advertising that appears on television or
23-15    radio.
23-16          (c)  Subsection (a) does not apply to a civil penalty imposed
23-17    by the commission that is the subject of an appeal under Section
23-18    571.133, Government Code.
23-19          (d)  A person who violates this section commits an offense.
23-20    An offense under this section is a Class A misdemeanor.
23-21          SECTION 18.  Title 15, Election Code, is amended by adding
23-22    Chapter 256 to read as follows:
23-23                   CHAPTER 256.  POLITICAL CONSULTANTS 
23-24          Sec. 256.001.  DEFINITIONS.  In this chapter:
23-25                (1)  "Political consultant" means a person required to
 24-1    register under Section 256.002.
 24-2                (2)  "Political services" includes:
 24-3                      (A)  providing advice on political strategy,
 24-4    voter demographics, or the content or distribution of political
 24-5    advertising;
 24-6                      (B)  seeking the endorsement of an individual or
 24-7    organization; and
 24-8                      (C)  polling.
 24-9          Sec. 256.002.  PERSONS REQUIRED TO REGISTER.  (a)  A person
24-10    shall register with the commission under this chapter if the person
24-11    receives or agrees to receive compensation of more than an amount
24-12    determined by commission rule but not less than $200 in a calendar
24-13    quarter from a candidate, officeholder, political committee, or
24-14    political party to provide political services in connection with a
24-15    statewide or district office or a statewide measure.
24-16          (b)  A person is not required to register under this chapter
24-17    if the person receives compensation for providing political
24-18    services only as an employee of a candidate, officeholder,
24-19    political committee, or political party.
24-20          (c)  A person who knowingly fails to register as required by
24-21    this chapter commits an offense.  An offense under this section is
24-22    a Class A misdemeanor.
24-23          Sec. 256.003.  REGISTRATION.  (a)  Each person required to
24-24    register under this chapter shall file with the commission a
24-25    written registration accompanied by a registration fee.
 25-1          (b)  A registration filed under this chapter expires January
 25-2    1 of each year unless the political consultant files with the
 25-3    commission a written renewal of registration accompanied by a
 25-4    renewal fee.  The political consultant may file the registration
 25-5    renewal at any time in December preceding the expiration of the
 25-6    registration.
 25-7          (c)  The registration fee and registration renewal fee are
 25-8    $300.
 25-9          (d)  A person required to register under this chapter who has
25-10    not registered or whose registration has expired:
25-11                (1)  shall file the registration and fee not later than
25-12    the fifth day after the date the person first provides political
25-13    services to a candidate, officeholder, political committee, or
25-14    political party; and
25-15                (2)  may not accept compensation before the person
25-16    files the registration.
25-17          (e)  The registration must contain:
25-18                (1)  the person's full name and address; and
25-19                (2)  the person's business telephone number and
25-20    business address.
25-21          (f)  If a change occurs in the information required to be
25-22    reported by a person under this section and that changed
25-23    information is not timely reported on a report due under Section
25-24    256.004, the person shall file an amended statement reflecting the
25-25    change with the commission not later than the date the next report
 26-1    is due under Section 256.004.
 26-2          SECTION 19.  (a)  This Act takes effect September 1, 1999.
 26-3          (b)  Not later than September 15, 1999, each candidate for or
 26-4    holder of an office covered by Subchapter G, Chapter 253, Election
 26-5    Code, as added by this Act, shall file with the Texas Ethics
 26-6    Commission a designation of the person's principal political
 26-7    committee as required by Section 253.203, Election Code, as added
 26-8    by this Act.
 26-9          (c)  Subchapter G, Chapter 253, Election Code, as added by
26-10    this Act, applies only to a political contribution accepted or a
26-11    political expenditure made on or after September 1, 1999.  A
26-12    political contribution accepted or a political expenditure made
26-13    before that date is governed by the law in effect at the time the
26-14    contribution was accepted or the expenditure was made.
26-15          (d)  The change in law made to Sections 254.128 and 255.001,
26-16    Election Code, by this Act applies only to an offense committed on
26-17    or after September 1, 1999.  For the purposes of this section, an
26-18    offense is committed before September 1, 1999, if any element of
26-19    the offense occurs before that date.
26-20          (e)  An offense under Section 254.128 or 255.001, Election
26-21    Code, that is committed before September 1, 1999, is covered by the
26-22    law in effect when the offense was committed, and the former law is
26-23    continued in effect for this purpose.
26-24          (f)  Sections 254.061, 254.091, and 254.128, Election Code,
26-25    as amended by this Act, and Sections 254.0612, 254.0912, 254.1511,
 27-1    and 254.1512, Election Code, as added by this Act, apply to the
 27-2    reporting of a political contribution accepted or political
 27-3    expenditure made on or after September 1, 1999.  The reporting of a
 27-4    political contribution accepted or a political expenditure made
 27-5    before that date is governed by the law in effect at the time the
 27-6    contribution or expenditure was accepted or made, and the former
 27-7    law is continued in effect for that purpose.
 27-8          (g)  Notwithstanding Section 254.203, Election Code, as that
 27-9    section existed before amendment by this Act, a person who ceased
27-10    to be an officeholder or who was last a candidate in an election
27-11    before September 1, 1993, shall, not later than January 1, 2000,
27-12    dispose of unexpended political contributions, assets purchased
27-13    with political contributions, and interest or other income earned
27-14    on political contributions in compliance with Section 254.203,
27-15    Election Code, as amended by this Act.  A person who ceased to be
27-16    an officeholder or candidate on or after September 1, 1993, shall
27-17    dispose of unexpended political contributions, assets purchased
27-18    with political contributions, and interest or other income earned
27-19    on political contributions in compliance with Section 254.203,
27-20    Election Code, as amended by this Act, regardless of whether the
27-21    person has filed a final report under Chapter 254, Election Code.
27-22          SECTION 20.  The importance of this legislation and the
27-23    crowded condition of the calendars in both houses create an
27-24    emergency and an imperative public necessity that the
27-25    constitutional rule requiring bills to be read on three several
 28-1    days in each house be suspended, and this rule is hereby suspended.