1-1 By: Gallego, et al. (Senate Sponsor - Shapiro) H.B. No. 4
1-2 (In the Senate - Received from the House May 13, 1999;
1-3 May 14, 1999, read first time and referred to Committee on State
1-4 Affairs; May 14, 1999, reported favorably by the following vote:
1-5 Yeas 6, Nays 0; May 14, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the regulation of certain political contributions,
1-9 political expenditures, and political advertising; providing civil
1-10 penalties.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Section 84.001, Election Code, is amended to read
1-13 as follows:
1-14 Sec. 84.001. APPLICATION REQUIRED. (a) To be entitled to
1-15 vote an early voting ballot by mail, a person who is eligible for
1-16 early voting must make an application for an early voting ballot to
1-17 be voted by mail as provided by this title.
1-18 (b) An application must be in writing and signed by the
1-19 applicant.
1-20 (c) An applicant is not required to use an official
1-21 application form.
1-22 (d) An applicant may not use an application form that is
1-23 part of or is included with a campaign communication or political
1-24 advertising, as defined by Section 251.001, unless the application
1-25 form is printed with the return address of the early voting clerk.
1-26 (e) An applicant for a ballot to be voted by mail may apply
1-27 for ballots for the main election and any resulting runoff election
1-28 on the same application. The timeliness of the application for
1-29 both elections is determined in relation to the main election.
1-30 However, if the application is not timely for the main election,
1-31 the timeliness of the application for the runoff election is
1-32 determined in relation to that election.
1-33 (f) [(e)] A person who has not made an application as
1-34 provided by this title is not entitled to receive an early voting
1-35 ballot to be voted by mail.
1-36 SECTION 2. Section 251.001, Election Code, is amended by
1-37 amending Subdivisions (2), (3), (4), and (14) and adding
1-38 Subdivisions (21) and (22) to read as follows:
1-39 (2) "Contribution" means a direct or indirect transfer
1-40 of money, goods, services, or any other thing of value [and
1-41 includes an agreement made or other obligation incurred, whether
1-42 legally enforceable or not, to make a transfer]. The term includes
1-43 a loan or extension of credit, other than those expressly excluded
1-44 by this subdivision, and a guarantee of a loan or extension of
1-45 credit, including a loan described by this subdivision. The term
1-46 does not include:
1-47 (A) a loan made in the due course of business by
1-48 a corporation that is legally engaged in the business of lending
1-49 money and that has conducted the business continuously for more
1-50 than one year before the loan is made; [or]
1-51 (B) an expenditure required to be reported under
1-52 Section 305.006(b), Government Code; or
1-53 (C) the value of services provided without
1-54 compensation by an individual who volunteers on behalf of a
1-55 candidate, officeholder, or political committee.
1-56 (3) "Campaign contribution" means a contribution to a
1-57 candidate or political committee that is [offered or] given with
1-58 the intent that it be used in connection with a campaign for
1-59 elective office or on a measure. Whether a contribution is made
1-60 before, during, or after an election does not affect its status as
1-61 a campaign contribution.
1-62 (4) "Officeholder contribution" means a contribution
1-63 to an officeholder or political committee that is [offered or]
1-64 given with the intent that it be used to defray expenses that:
2-1 (A) are incurred by the officeholder in
2-2 performing a duty or engaging in an activity in connection with the
2-3 office; and
2-4 (B) are not reimbursable with public money.
2-5 (14) "General-purpose committee" means a political
2-6 committee that has among its principal purposes:
2-7 (A) supporting or opposing:
2-8 (i) two or more candidates who are
2-9 unidentified or are seeking offices that are unknown; or
2-10 (ii) one or more unidentified measures
2-11 [that are unidentified]; or
2-12 (B) assisting two or more officeholders who are
2-13 unidentified.
2-14 (21) "Unidentified measure" means a question or
2-15 proposal that is intended to be submitted in an election for an
2-16 expression of the voters' will and that is not yet legally required
2-17 to be submitted in an election. The term does not include the
2-18 circulation or submission of a petition to determine whether a
2-19 question or proposal is required to be submitted in an election for
2-20 an expression of the voters' will.
2-21 (22) "Principal political committee of a candidate or
2-22 officeholder" means a political committee established under Section
2-23 251.010 for supporting a candidate or assisting an officeholder.
2-24 SECTION 3. Subchapter A, Chapter 251, Election Code, is
2-25 amended by adding Sections 251.010 and 251.011 to read as follows:
2-26 Sec. 251.010. PRINCIPAL POLITICAL COMMITTEE. (a) This
2-27 section applies only to:
2-28 (1) a statewide office;
2-29 (2) the office of state senator;
2-30 (3) the office of state representative;
2-31 (4) the office of member, State Board of Education; or
2-32 (5) the office of chief justice or justice, court of
2-33 appeals.
2-34 (b) A candidate or officeholder shall designate in writing a
2-35 political committee to serve as the person's principal political
2-36 committee.
2-37 (c) A designation under Subsection (b) must be:
2-38 (1) made not later than the 15th day after the date
2-39 the person becomes a candidate or officeholder; and
2-40 (2) filed with the commission.
2-41 (d) Except as provided by Subsection (e), a candidate or
2-42 officeholder may not have more than one principal political
2-43 committee at a time, and a person who is both a candidate and an
2-44 officeholder may not have more than one principal political
2-45 committee. A candidate who becomes an officeholder is not required
2-46 to designate a new principal political committee.
2-47 (e) An officeholder other than a judicial officeholder who
2-48 becomes a candidate for a judicial office may designate a second
2-49 principal political committee in connection with that candidacy. A
2-50 judicial officeholder who becomes a candidate for a nonjudicial
2-51 office may designate a second principal political committee in
2-52 connection with that candidacy.
2-53 (f) A prohibition or restriction imposed by this title on a
2-54 candidate or officeholder applies to the principal political
2-55 committee of a candidate or officeholder.
2-56 (g) This section does not require a candidate for or holder
2-57 of an office other than an office listed in Subsection (a) to
2-58 designate a principal political committee.
2-59 Sec. 251.011. LIABILITY OF CANDIDATE OR OFFICEHOLDER FOR ACT
2-60 OR OMISSION OF PRINCIPAL POLITICAL COMMITTEE. (a) A candidate or
2-61 officeholder is civilly liable for an act or omission by the
2-62 person's principal political committee in connection with a
2-63 requirement or prohibition prescribed by this title only if the
2-64 person authorized, requested, commanded, performed, or recklessly
2-65 or negligently tolerated the act or omission.
2-66 (b) This section does not prohibit the imposition of other
2-67 civil penalties or criminal penalties against a candidate,
2-68 officeholder, political committee, or an agent of a candidate,
2-69 officeholder, or political committee.
3-1 (c) If the commission imposes a civil penalty under Section
3-2 571.173, Government Code, for a violation of this title and the
3-3 penalty is not paid before the 120th day after the date it is
3-4 imposed:
3-5 (1) the commission, subject to approval of the
3-6 attorney general, may contract with a nongovernmental entity to
3-7 collect the penalty;
3-8 (2) the amount of the penalty is trebled, but not to
3-9 exceed the maximum penalty provided by commission rule; and
3-10 (3) the person against whom the penalty is imposed is
3-11 liable for prejudgment and postjudgment interest, private
3-12 attorney's fees, costs incurred by the attorney general, and costs
3-13 of court.
3-14 SECTION 4. Chapter 252, Election Code, is amended by adding
3-15 Section 252.0033 to read as follows:
3-16 Sec. 252.0033. CONTENTS OF APPOINTMENT BY PRINCIPAL
3-17 POLITICAL COMMITTEE. (a) In addition to the information required
3-18 by Section 252.002, a campaign treasurer appointment by a principal
3-19 political committee of a candidate or officeholder must include:
3-20 (1) the candidate's or officeholder's telephone
3-21 number; and
3-22 (2) a statement, signed by the candidate or
3-23 officeholder, that the candidate or officeholder is aware of the
3-24 nepotism law, Chapter 573, Government Code.
3-25 (b) A campaign treasurer appointment that is filed in a
3-26 manner other than by use of an officially prescribed form is not
3-27 invalid because it fails to comply with Subsection (a)(2).
3-28 SECTION 5. Section 253.031, Election Code, is amended to
3-29 read as follows:
3-30 Sec. 253.031. CONTRIBUTION AND EXPENDITURE WITHOUT CAMPAIGN
3-31 TREASURER PROHIBITED. (a) A candidate for an office other than an
3-32 office covered by Section 251.010 may not knowingly accept a
3-33 campaign contribution or make or authorize a campaign expenditure
3-34 at a time when a campaign treasurer appointment for the candidate
3-35 is not in effect.
3-36 (b) A candidate for or holder of an office covered by
3-37 Section 251.010 may not knowingly accept a political contribution
3-38 as authorized by Section 253.0311 or make or authorize a political
3-39 expenditure as authorized by Section 253.0312 at a time when a
3-40 campaign treasurer appointment for the principal political
3-41 committee of the candidate or officeholder is not in effect.
3-42 (c) A political committee may not knowingly accept political
3-43 contributions totaling more than $500 or make or authorize
3-44 political expenditures totaling more than $500 at a time when a
3-45 campaign treasurer appointment for the committee is not in effect.
3-46 (d) [(c)] A political committee may not knowingly make or
3-47 authorize a campaign contribution or campaign expenditure
3-48 supporting or opposing a candidate for an office specified by
3-49 Section 252.005(1) in a primary or general election unless the
3-50 committee's campaign treasurer appointment has been filed not later
3-51 than the 30th day before the appropriate election day.
3-52 (e) [(d)] This section does not apply to a political party's
3-53 county executive committee that accepts political contributions or
3-54 makes political expenditures, except that:
3-55 (1) a county executive committee that accepts
3-56 political contributions or makes political expenditures shall
3-57 maintain the records required by Section 254.001; and
3-58 (2) a county executive committee that accepts
3-59 political contributions or makes political expenditures that, in
3-60 the aggregate, exceed $5,000 in a calendar year shall file:
3-61 (A) a campaign treasurer appointment as required
3-62 by Section 252.001 not later than the 15th day after the date that
3-63 amount is exceeded; and
3-64 (B) the reports required by Subchapter F,
3-65 Chapter 254, including in the political committee's first report
3-66 all political contributions accepted and all political expenditures
3-67 made before the effective date of the campaign treasurer
3-68 appointment.
3-69 (f) [(e)] This section does not apply to an out-of-state
4-1 political committee unless the committee is subject to Chapter 252
4-2 under Section 251.005.
4-3 (g) [(f)] A person who violates this section commits an
4-4 offense. An offense under this section is a Class A misdemeanor.
4-5 SECTION 6. Subchapter B, Chapter 253, Election Code, is
4-6 amended by adding Sections 253.0311 and 253.0312 to read as
4-7 follows:
4-8 Sec. 253.0311. ACCEPTANCE OF POLITICAL CONTRIBUTIONS BY
4-9 CERTAIN CANDIDATES AND OFFICEHOLDERS. (a) Except as provided by
4-10 Subsection (b), a candidate or officeholder who is required to
4-11 designate a principal political committee may not knowingly accept
4-12 a political contribution in connection with the person's own
4-13 candidacy or office.
4-14 (b) A candidate or officeholder who is required to designate
4-15 a principal political committee may accept a political contribution
4-16 on behalf of the person's principal political committee unless the
4-17 committee itself would be prohibited from accepting the
4-18 contribution.
4-19 (c) A person who violates this section is liable for a civil
4-20 penalty not to exceed $4,000.
4-21 Sec. 253.0312. CONTRIBUTIONS OR EXPENDITURES BY CERTAIN
4-22 CANDIDATES AND OFFICEHOLDERS FROM PERSONAL FUNDS. (a) Except as
4-23 provided by Subsection (b) or (c), a candidate or officeholder who
4-24 is required to designate a principal political committee may not
4-25 knowingly make a political contribution or political expenditure
4-26 from the person's personal funds in connection with the person's
4-27 own candidacy or office.
4-28 (b) A candidate or officeholder who is required to designate
4-29 a principal political committee may make a political expenditure
4-30 from the person's personal funds if the person reports the
4-31 expenditure as an expenditure that may, but is not required to, be
4-32 reported as provided by Section 253.035(h) or as a loan as provided
4-33 by Section 253.0351.
4-34 (c) A candidate or officeholder who is required to designate
4-35 a principal political committee may make a political contribution
4-36 from the person's personal funds to the person's principal
4-37 political committee.
4-38 (d) A person who violates this section is liable for a civil
4-39 penalty not to exceed $4,000.
4-40 SECTION 7. Sections 253.034(a)-(c), Election Code, are
4-41 amended to read as follows:
4-42 (a) During the period beginning on the 30th day before the
4-43 date a regular legislative session convenes and continuing through
4-44 the day of final adjournment, a person may not knowingly make a
4-45 political contribution to:
4-46 (1) the principal political committee of a statewide
4-47 officeholder;
4-48 (2) the principal political committee of a member of
4-49 the legislature; or
4-50 (3) a specific-purpose committee for supporting,
4-51 opposing, or assisting a statewide officeholder or member of the
4-52 legislature.
4-53 (b) The principal political committee of a [A] statewide
4-54 officeholder or of[,] a member of the legislature[,] or a
4-55 specific-purpose committee for supporting, opposing, or assisting a
4-56 statewide officeholder or member of the legislature may not
4-57 knowingly accept a political contribution, and shall refuse a
4-58 political contribution that is received, during the period
4-59 prescribed by Subsection (a). A political contribution that is
4-60 received and refused during that period shall be returned to the
4-61 contributor not later than the 30th day after the date of receipt.
4-62 A contribution made by mail is not considered received during that
4-63 period if it was placed with postage prepaid and properly addressed
4-64 in the United States mail before the beginning of the period. The
4-65 date indicated by the post office cancellation mark is considered
4-66 to be the date the contribution was placed in the mail unless
4-67 proven otherwise.
4-68 (c) This section does not apply to a political contribution
4-69 that was made and accepted with the intent that it be used:
5-1 (1) in an election held or ordered during the period
5-2 prescribed by Subsection (a) in which the person on whose behalf
5-3 [accepting] the contribution is accepted is a candidate if the
5-4 contribution was made after the person's principal political
5-5 committee filed [person appointed] a campaign treasurer appointment
5-6 [with the appropriate authority] and before the person was sworn in
5-7 for that office;
5-8 (2) to defray expenses incurred in connection with an
5-9 election contest; or
5-10 (3) by the principal political committee of a person
5-11 who holds a statewide [state] office or of a member of the
5-12 legislature if the person or member was defeated at the general
5-13 election held immediately before the session is convened [or by a
5-14 specific-purpose political committee that supports or assists only
5-15 that person or member].
5-16 SECTION 8. Section 253.035(h), Election Code, is amended to
5-17 read as follows:
5-18 (h) Except as provided by Section 253.0351, [or] 253.042, or
5-19 253.162, a candidate or officeholder who makes political
5-20 expenditures from the candidate's or officeholder's personal funds
5-21 may reimburse those personal funds from political contributions in
5-22 the amount of those expenditures only if:
5-23 (1) the expenditures from personal funds were fully
5-24 reported as political expenditures, including the payees, dates,
5-25 purposes, and amounts of the expenditures, in the report required
5-26 to be filed under this title that covers the period in which the
5-27 expenditures from personal funds were made; and
5-28 (2) the report on which the expenditures from personal
5-29 funds are disclosed clearly designates those expenditures as having
5-30 been made from the person's personal funds and that the
5-31 expenditures are subject to reimbursement.
5-32 SECTION 9. Section 253.037(c), Election Code, is amended to
5-33 read as follows:
5-34 (c) Subsection (a) does not apply to a political party's
5-35 county executive committee that is complying with Section 253.031
5-36 or to a general-purpose committee that accepts contributions from a
5-37 multicandidate political committee, [(]as defined by 2 U.S.C.
5-38 Section 441a and its subsequent amendments, [the Federal Election
5-39 Campaign Act)] that is registered with the Federal Election
5-40 Commission, provided that the general-purpose committee is in
5-41 compliance with Section 253.032.
5-42 SECTION 10. Section 253.038(a), Election Code, is amended to
5-43 read as follows:
5-44 (a) A candidate or officeholder, the principal political
5-45 committee of a candidate or officeholder, or a specific-purpose
5-46 committee for supporting, opposing, or assisting the candidate or
5-47 officeholder may not knowingly make or authorize a payment from a
5-48 political contribution to purchase real property or to pay the
5-49 interest on or principal of a note for the purchase of real
5-50 property.
5-51 SECTION 11. Section 253.041(a), Election Code, is amended to
5-52 read as follows:
5-53 (a) A candidate or officeholder, the principal political
5-54 committee of the candidate or officeholder, or a specific-purpose
5-55 committee for supporting, opposing, or assisting the candidate or
5-56 officeholder may not knowingly make or authorize a payment from a
5-57 political contribution if the payment is made for personal services
5-58 rendered by the candidate or officeholder or by the spouse or
5-59 dependent child of the candidate or officeholder to:
5-60 (1) a business in which the candidate or officeholder
5-61 has a participating interest of more than 10 percent, holds a
5-62 position on the governing body of the business, or serves as an
5-63 officer of the business; or
5-64 (2) the candidate or officeholder or the spouse or
5-65 dependent child of the candidate or officeholder.
5-66 SECTION 12. The heading to Subchapter A, Chapter 254,
5-67 Election Code, is amended to read as follows:
5-68 SUBCHAPTER A. RECORDKEEPING; GENERAL PROVISIONS
5-69 SECTION 13. Subchapter A, Chapter 254, Election Code, is
6-1 amended by adding Section 254.002 to read as follows:
6-2 Sec. 254.002. PRESUMPTION OF BEST EFFORTS. (a) If a
6-3 provision of this chapter requires a person to use the person's
6-4 best efforts to obtain information to be included in a report under
6-5 this chapter concerning a person making a political contribution,
6-6 the person is presumed to have used the person's best efforts if
6-7 the person can show that the person requested the required
6-8 information at the time the contribution was solicited or accepted.
6-9 (b) A person who receives an unsolicited political
6-10 contribution shall, not later than the 30th day after the date the
6-11 contribution is received, request in writing that the person making
6-12 the contribution provide any information required by Section
6-13 254.031 that was not provided with the contribution. A request is
6-14 not necessary if the person making the contribution provides all
6-15 required information with the contribution.
6-16 SECTION 14. Section 254.031, Election Code, is amended to
6-17 read as follows:
6-18 Sec. 254.031. GENERAL CONTENTS OF REPORTS. (a) Except as
6-19 otherwise provided by this chapter, each report filed under this
6-20 chapter must include:
6-21 (1) the amount of political contributions from each
6-22 person that in the aggregate exceed $100 [$50] and that are
6-23 accepted during the reporting period by the person or committee
6-24 required to file a report under this chapter, the full name and
6-25 address of the person making the contributions, [and] the dates of
6-26 the contributions, and:
6-27 (A) if the person making the contribution is an
6-28 individual, the individual's principal occupation or job title and
6-29 the full name of the individual's employer, if any; and
6-30 (B) if the contribution is an in-kind
6-31 contribution, a description of the property or services
6-32 contributed;
6-33 (2) the amount of loans that are made during the
6-34 reporting period for campaign or officeholder purposes to the
6-35 person or committee required to file the report and that in the
6-36 aggregate exceed $100 [$50], the dates the loans are made, the
6-37 interest rate, the maturity date, the type of collateral for the
6-38 loans, if any, the full name and address of the person or financial
6-39 institution making the loans, the full name and address, principal
6-40 occupation, and name of the employer of each guarantor of the
6-41 loans, the amount of the loans guaranteed by each guarantor, and
6-42 the aggregate principal amount of all outstanding loans as of the
6-43 last day of the reporting period;
6-44 (3) the amount of political expenditures that in the
6-45 aggregate exceed $100 [$50] and that are made during the reporting
6-46 period, the full name and address of the persons to whom the
6-47 expenditures are made, [and] the dates and purposes of the
6-48 expenditures and, if the expenditure is in the form of an in-kind
6-49 contribution, a description of the property or services
6-50 contributed;
6-51 (4) the amount of each payment made during the
6-52 reporting period from a political contribution if the payment is
6-53 not a political expenditure, the full name and address of the
6-54 person to whom the payment is made, and the date and purpose of the
6-55 payment;
6-56 (5) the total amount or a specific listing of the
6-57 political contributions of $100 [$50] or less accepted and the
6-58 total amount or a specific listing of the political expenditures of
6-59 $100 [$50] or less made during the reporting period;
6-60 (6) the total amount of all political contributions
6-61 accepted and the total amount of all political expenditures made
6-62 during the reporting period; [and]
6-63 (7) the name of each candidate or officeholder who
6-64 benefits from a direct campaign expenditure made during the
6-65 reporting period by the person or committee required to file the
6-66 report, and the office sought or held, excluding a direct campaign
6-67 expenditure that is made by the principal political committee of a
6-68 political party on behalf of a slate of two or more nominees of
6-69 that party; and
7-1 (8) for each loan that exceeds $100 and is outstanding
7-2 as of the last day of the reporting period, other than a loan
7-3 reported under Subdivision (2):
7-4 (A) the full name and address of the person or
7-5 financial institution making the loan;
7-6 (B) the date the loan was made;
7-7 (C) the original principal amount of the loan;
7-8 and
7-9 (D) the outstanding principal balance of the
7-10 loan.
7-11 (b) A person is considered to be in compliance with
7-12 Subsection (a)(1) if the person or the person's campaign treasurer
7-13 shows that best efforts have been used to obtain and report the
7-14 principal occupation or job title of a person making a political
7-15 contribution.
7-16 (c) A person required to file a report shall report an
7-17 accepted in-kind political contribution as both a political
7-18 contribution accepted and a political expenditure made.
7-19 (d) If no reportable activity occurs during a reporting
7-20 period, the person required to file a report shall indicate that
7-21 fact in the report.
7-22 SECTION 15. Section 254.036, Election Code, is amended by
7-23 amending Subsection (a) and adding Subsection (h) to read as
7-24 follows:
7-25 (a) Each report filed under this chapter must be on a form
7-26 prescribed by the commission and must be written in black ink or
7-27 typed with black typewriter ribbon unless the report is a computer
7-28 printout. If the report is a computer printout, the printout must
7-29 conform to the same format and paper size as the form prescribed by
7-30 the commission. A report filed under this chapter must be:
7-31 (1) hand-delivered to the authority with whom it is
7-32 required to be filed; or
7-33 (2) mailed from and postmarked in:
7-34 (A) if the person filing the report is a
7-35 candidate or officeholder, the principal political committee of a
7-36 candidate or officeholder, or a specific-purpose committee for
7-37 supporting or opposing a candidate or assisting an officeholder,
7-38 the city in which the candidate or officeholder resides, the city
7-39 in which the candidate's, officeholder's, or committee's campaign
7-40 headquarters are located, or the city in which the office the
7-41 candidate or officeholder seeks or holds is located; or
7-42 (B) if the person filing the report is a
7-43 political committee other than a political committee described by
7-44 Paragraph (A), any city.
7-45 (h) A report filed in a manner other than the manner
7-46 prescribed by Subsection (a)(1) or (2) is not considered to have
7-47 been filed in violation of Subsections (a)(1) and (2) if the report
7-48 is received by the authority with whom it is required to be filed
7-49 before the applicable deadline.
7-50 SECTION 16. Section 254.038, Election Code, is amended to
7-51 read as follows:
7-52 Sec. 254.038. ADDITIONAL REPORTS [TELEGRAM REPORT] BY
7-53 CERTAIN [CANDIDATES AND] POLITICAL COMMITTEES. (a) In addition to
7-54 other reports required by this chapter, the following persons shall
7-55 file additional reports during the period beginning the ninth day
7-56 before election day and ending at 12 noon on the second day before
7-57 election day:
7-58 (1) the principal political committee of a candidate
7-59 for statewide office who has an opponent whose name is to appear on
7-60 the ballot and who accepts political contributions from a person
7-61 that in the aggregate exceed $1,000 during that reporting period;
7-62 (2) the principal political committee of a candidate
7-63 for state senator who has an opponent whose name is to appear on
7-64 the ballot and who accepts political contributions from a person
7-65 that in the aggregate exceed $1,000 during that reporting period;
7-66 (3) the principal political committee of [(2)] a
7-67 candidate for state representative who has an opponent whose name
7-68 is to appear on the ballot and who accepts political contributions
7-69 from a person that in the aggregate exceed $200 during that
8-1 reporting period;
8-2 (4) a general-purpose committee that accepts political
8-3 contributions from a person that in the aggregate exceed $5,000
8-4 during the reporting period; and
8-5 (5) a principal political committee of a candidate or
8-6 officeholder or a specific-purpose committee that is required to
8-7 file reports with the commission under this chapter and that
8-8 accepts political contributions from a person that in the aggregate
8-9 exceed $5,000 during that reporting period, other than:
8-10 (A) a political committee listed in Subdivisions
8-11 (1)-(3);
8-12 (B) a principal political committee required to
8-13 file reports with the commission in connection with an office
8-14 described by Section 252.005(5); or
8-15 (C) a specific-purpose committee required to
8-16 file reports with the commission in connection with a measure
8-17 described by Section 252.007(5) [(3) a specific-purpose committee
8-18 for supporting or opposing a candidate for state senator and that
8-19 accepts political contributions from a person that in the aggregate
8-20 exceed $1,000 during that reporting period; and]
8-21 [(4) a specific-purpose committee for supporting or
8-22 opposing a candidate for state representative and that accepts
8-23 political contributions from a person that in the aggregate exceed
8-24 $200 during that reporting period].
8-25 (b) Each report required by this section must include the
8-26 amount of the political contributions specified by Subsection (a),
8-27 the full name and address of the person making the contributions,
8-28 and the dates of the contributions.
8-29 (c) A report under this section shall be filed by telegram
8-30 or telephonic facsimile machine or by hand with the commission not
8-31 later than 48 hours after the contribution is accepted.
8-32 (d) Section 254.036 does not apply to a report required by
8-33 this section.
8-34 SECTION 17. Subchapter B, Chapter 254, Election Code, is
8-35 amended by adding Section 254.0381 to read as follows:
8-36 Sec. 254.0381. ADDITIONAL REPORTS OF CERTAIN DIRECT CAMPAIGN
8-37 EXPENDITURES. (a) In addition to other reports required by this
8-38 chapter, a person other than the principal political committee of
8-39 the state executive committee or a county executive committee of a
8-40 political party that makes direct campaign expenditures that in the
8-41 aggregate exceed $5,000 for the purpose of supporting or opposing
8-42 one or more candidates covered by Section 251.010 during the period
8-43 beginning the ninth day before election day and ending at 12 noon
8-44 on the second day before election day shall file a report.
8-45 (b) Each report required by this section must include the
8-46 amount and purpose of the direct campaign expenditure, the full
8-47 name, address, and principal occupation of the person making the
8-48 expenditure, the full name and address of the person to whom the
8-49 expenditure is made, the name of each candidate whom the
8-50 expenditure supports or opposes and, as to each candidate, an
8-51 indication of whether the expenditure supports or opposes the
8-52 candidate, and the date of the expenditure.
8-53 (c) A report filed under this section shall be filed
8-54 electronically or by telephonic facsimile machine or overnight mail
8-55 not later than 24 hours after the expenditure is made.
8-56 (d) A direct campaign expenditure made by a political
8-57 committee or other association that consists only of costs incurred
8-58 in contacting the committee's or association's dues-paying
8-59 membership may be made without the report required by Subsection
8-60 (a).
8-61 (e) This section does not apply to a political expenditure
8-62 made by a candidate's principal political committee in connection
8-63 with the candidate's campaign.
8-64 (f) Section 254.036 does not apply to a report required by
8-65 this section.
8-66 SECTION 18. Section 254.039, Election Code, is amended by
8-67 amending Subsection (c) and adding Subsection (d) to read as
8-68 follows:
8-69 (c) A general-purpose committee that is required to file a
9-1 report under Section 254.0381 is not required to file a report
9-2 under this section.
9-3 (d) Section 254.036 does not apply to a report required by
9-4 this section.
9-5 SECTION 19. Section 254.0391(a), Election Code, is amended
9-6 to read as follows:
9-7 (a) The principal political committee of a [A] statewide
9-8 officeholder, a member of the legislature, [or a specific-purpose
9-9 committee for supporting, opposing, or assisting a statewide
9-10 officeholder or member of the legislature,] or a candidate for
9-11 statewide office or the legislature or a specific-purpose committee
9-12 for supporting or opposing a candidate for statewide office or the
9-13 legislature or for assisting a statewide officeholder or a member
9-14 of the legislature [the candidate,] that accepts a political
9-15 contribution during the period beginning on the date the governor
9-16 signs the proclamation calling a special legislative session and
9-17 continuing through the date of final adjournment shall report the
9-18 contribution to the commission not later than the 30th day after
9-19 the date of final adjournment.
9-20 SECTION 20. Section 254.042(a), Election Code, is amended to
9-21 read as follows:
9-22 (a) The commission shall determine from any available
9-23 evidence whether a report, other than a [telegram] report under
9-24 Section 254.038 [or 254.039], required to be filed with the
9-25 commission under this chapter is late. On making that
9-26 determination, the commission shall immediately mail a notice of
9-27 the determination to the person required to file the report.
9-28 SECTION 21. Subchapter C, Chapter 254, Election Code, is
9-29 amended to read as follows:
9-30 SUBCHAPTER C. REPORTING BY CANDIDATE OR OFFICEHOLDER
9-31 Sec. 254.061. ADDITIONAL CONTENTS OF REPORTS. (a) In
9-32 addition to the contents required by Section 254.031, each report
9-33 by a candidate or officeholder must include:
9-34 (1) the candidate's or officeholder's full name and
9-35 address, the office sought or held, and the identity and date of
9-36 the election for which the report is filed, if applicable;
9-37 (2) the campaign treasurer's name, residence or
9-38 business street address, and telephone number;
9-39 (3) for each political committee from which the
9-40 candidate or officeholder received notice under Section 254.128 or
9-41 254.161:
9-42 (A) the committee's full name and address;
9-43 (B) an indication of whether the committee is a
9-44 general-purpose committee or a specific-purpose committee; [and]
9-45 (C) the full name and address of the committee's
9-46 campaign treasurer; and
9-47 (D) if applicable, a notation that the candidate
9-48 or officeholder or an agent of the candidate or officeholder did
9-49 not solicit the political contribution or political expenditure
9-50 from the committee;
9-51 (4) the full name and address of each individual
9-52 acting as a campaign treasurer of a political committee under
9-53 Section 253.062 from whom the candidate or officeholder received
9-54 notice under Section 254.128 or 254.161; [and]
9-55 (5) on a separate page or pages of the report, the
9-56 identification of any payment from political contributions made to
9-57 a business in which the candidate or officeholder has a
9-58 participating interest of more than 10 percent, holds a position on
9-59 the governing body of the business, or serves as an officer of the
9-60 business; and
9-61 (6) the name of any person who made an offer of money
9-62 to the candidate or officeholder during the reporting period with
9-63 the intent that it be used in connection with the candidate's
9-64 campaign or to defray officeholder expenses that are not
9-65 reimbursable with public money if the offer was accepted and:
9-66 (A) the offer is for $1,000 or more;
9-67 (B) the candidate or officeholder has reason to
9-68 believe the offer is for $1,000 or more; or
9-69 (C) the offer is to cover 10 percent or more of
10-1 the total anticipated costs of the candidate's campaign.
10-2 (b) The report filed not later than January 15 of each
10-3 odd-numbered year must also include the name of each person who
10-4 made an offer of money to the candidate or officeholder with the
10-5 intent that it be used in connection with the candidate's campaign
10-6 or to defray officeholder expenses that are not reimbursable with
10-7 public money, if the offer was accepted and the offered money was
10-8 not received by the candidate or officeholder, and the amount of
10-9 the offer. The information required by this subsection is for the
10-10 period beginning January 1 of the preceding odd-numbered year or
10-11 the date the candidate's campaign treasurer appointment is filed,
10-12 as applicable, and continuing through December 31 of the preceding
10-13 even-numbered year.
10-14 Sec. 254.0611. ADDITIONAL CONTENTS OF REPORTS BY CERTAIN
10-15 JUDICIAL CANDIDATES AND OFFICEHOLDERS. (a) In addition to the
10-16 contents required by Sections 254.031 and 254.061, each report by a
10-17 candidate for or holder of a judicial office covered by Subchapter
10-18 F, Chapter 253, must include:
10-19 (1) the total amount of political contributions,
10-20 including interest or other income, maintained in one or more
10-21 accounts in which political contributions are deposited as of the
10-22 last day of the reporting period;
10-23 (2) for each individual from whom the person filing
10-24 the report has accepted political contributions that in the
10-25 aggregate exceed $50 and that are accepted during the reporting
10-26 period:
10-27 (A) the principal occupation and job title of
10-28 the individual and the full name of the employer of the individual
10-29 or of the law firm of which the individual or the individual's
10-30 spouse is a member, if any; or
10-31 (B) if the individual is a child, the full name
10-32 of the law firm of which either of the individual's parents is a
10-33 member, if any;
10-34 (3) a specific listing of each asset valued at $500 or
10-35 more that was purchased with political contributions and on hand as
10-36 of the last day of the reporting period;
10-37 (4) for each political contribution accepted by the
10-38 person filing the report but not received as of the last day of the
10-39 reporting period:
10-40 (A) the full name and address of the person
10-41 making the contribution;
10-42 (B) the amount of the contribution; and
10-43 (C) the date of the contribution; and
10-44 (5) for each outstanding loan to the person filing the
10-45 report as of the last day of the reporting period:
10-46 (A) the full name and address of the person or
10-47 financial institution making the loan; and
10-48 (B) the full name and address of each guarantor
10-49 of the loan other than the candidate or officeholder.
10-50 (b) In this section:
10-51 (1) "Child" has the meaning assigned by Section
10-52 253.158.
10-53 (2) "Law firm" and "member" have the meanings assigned
10-54 by Section 253.157.
10-55 Sec. 254.062. REPORTS BY PRINCIPAL POLITICAL COMMITTEE OF
10-56 EXECUTIVE OR LEGISLATIVE CANDIDATE; ADDITIONAL CONTENTS. (a) The
10-57 principal political committee of a candidate for an office covered
10-58 by Section 251.010 shall comply with this chapter as if the
10-59 committee were a candidate or officeholder, and the candidate or
10-60 officeholder is not required to file separate reports.
10-61 (b) In addition to the contents required by Sections 254.031
10-62 and 254.061, each report by the principal political committee of a
10-63 candidate for an office covered by Section 251.010 must include for
10-64 each political expenditure made by the candidate from the
10-65 candidate's personal funds or other assets, the information
10-66 required by Section 254.031(a)(3).
10-67 (c) In this section, "principal political committee of a
10-68 candidate" means a specific-purpose committee established under
10-69 Section 251.010 for supporting a candidate. [CERTAIN OFFICEHOLDER
11-1 ACTIVITY INCLUDED. If an officeholder who becomes a candidate has
11-2 reportable activity that is not reported under Subchapter D before
11-3 the end of the period covered by the first report the candidate is
11-4 required to file under this subchapter, the reportable activity
11-5 shall be included in the first report filed under this subchapter
11-6 instead of in a report filed under Subchapter D.]
11-7 Sec. 254.063. SEMIANNUAL REPORTING SCHEDULE FOR CANDIDATE OR
11-8 OFFICEHOLDER. (a) A candidate or officeholder shall file two
11-9 reports for each year as provided by this section.
11-10 (b) The first report shall be filed not later than July 15.
11-11 The report covers the period beginning January 1, the day the
11-12 person's [candidate's] campaign treasurer appointment is filed, or
11-13 the first day after the period covered by the last report required
11-14 to be filed under this subchapter, as applicable, and continuing
11-15 through June 30.
11-16 (c) The second report shall be filed not later than January
11-17 15. The report covers the period beginning July 1, the day the
11-18 person's [candidate's] campaign treasurer appointment is filed, or
11-19 the first day after the period covered by the last report required
11-20 to be filed under this subchapter, as applicable, and continuing
11-21 through December 31.
11-22 Sec. 254.064. ADDITIONAL REPORTS OF OPPOSED CANDIDATE. (a)
11-23 In addition to other required reports, for each election in which a
11-24 person is a candidate and has an opponent whose name is to appear
11-25 on the ballot, the person shall file two reports.
11-26 (b) The first report shall be filed not later than the 30th
11-27 day before election day. The report covers the period beginning
11-28 the day the candidate's campaign treasurer appointment is filed or
11-29 the first day after the period covered by the last report required
11-30 to be filed under this chapter, as applicable, and continuing
11-31 through the 40th day before election day.
11-32 (c) The second report shall be filed not later than the
11-33 eighth day before election day. The report covers the period
11-34 beginning the 39th day before election day and continuing through
11-35 the 10th day before election day.
11-36 (d) If a person becomes an opposed candidate after a
11-37 reporting period prescribed by Subsection (b) or (c), the person
11-38 shall file the person's first report not later than the regular
11-39 deadline for the report covering the period during which the person
11-40 becomes an opposed candidate. The period covered by the first
11-41 report begins the day the candidate's campaign treasurer
11-42 appointment is filed.
11-43 (e) In addition to other required reports, an opposed
11-44 candidate in a runoff election shall file one report for that
11-45 election. The runoff election report shall be filed not later than
11-46 the eighth day before runoff election day. The report covers the
11-47 period beginning the ninth day before the date of the main election
11-48 and continuing through the 10th day before runoff election day.
11-49 Sec. 254.065. FINAL REPORT. (a) If a candidate or
11-50 officeholder expects no reportable activity in connection with the
11-51 candidacy or office to occur after the period covered by a report
11-52 filed under this subchapter, the person [candidate] may designate
11-53 the report as a "final" report.
11-54 (b) The designation of a report as a final report:
11-55 (1) relieves the person [candidate] of the duty to
11-56 file additional reports under this subchapter, except as provided
11-57 by Subsection (c); and
11-58 (2) terminates the person's [candidate's] campaign
11-59 treasurer appointment.
11-60 (c) If, after a candidate's or officeholder's final report
11-61 is filed, reportable activity with respect to the candidacy or
11-62 office occurs, the person [candidate] shall file the appropriate
11-63 reports under this subchapter and is otherwise subject to the
11-64 provisions of this title applicable to candidates and
11-65 officeholders. A report filed under this subsection may be
11-66 designated as a final report.
11-67 Sec. 254.066. AUTHORITY WITH WHOM REPORTS FILED. Reports
11-68 under this subchapter shall be filed with the authority with whom
11-69 the person's [candidate's] campaign treasurer appointment is
12-1 required to be filed.
12-2 SECTION 22. Section 254.121, Election Code, is amended to
12-3 read as follows:
12-4 Sec. 254.121. ADDITIONAL CONTENTS OF REPORTS. (a) In
12-5 addition to the contents required by Section 254.031, each report
12-6 by a campaign treasurer of a specific-purpose committee must
12-7 include:
12-8 (1) the committee's full name and address;
12-9 (2) the full name, residence or business street
12-10 address, and telephone number of the committee's campaign
12-11 treasurer;
12-12 (3) the identity and date of the election for which
12-13 the report is filed, if applicable;
12-14 (4) the name of each candidate and each measure
12-15 supported or opposed by the committee, indicating for each whether
12-16 the committee supports or opposes;
12-17 (5) the name of each officeholder assisted by the
12-18 committee;
12-19 (6) the amount of each political expenditure in the
12-20 form of a political contribution that is made to a candidate,
12-21 officeholder, or another political committee and that is returned
12-22 to the committee during the reporting period, the name of the
12-23 person to whom the expenditure was originally made, and the date it
12-24 is returned;
12-25 (7) on a separate page or pages of the report, the
12-26 identification of any payment from political contributions made to
12-27 a business in which the candidate or officeholder has a
12-28 participating interest of more than 10 percent, holds a position on
12-29 the governing body of the business, or serves as an officer of the
12-30 business; [and]
12-31 (8) on a separate page or pages of the report, the
12-32 identification of any contribution from a corporation or labor
12-33 organization made and accepted under Subchapter D, Chapter 253; and
12-34 (9) the name of any person who made an offer of money
12-35 to the committee during the reporting period with the intent that
12-36 it be used in connection with a campaign for elective office or on
12-37 a measure, or to defray officeholder expenses that are not
12-38 reimbursable with public money, if the offer was accepted and:
12-39 (A) the offer is for $1,000 or more;
12-40 (B) the campaign treasurer has reason to believe
12-41 the offer is for $1,000 or more; or
12-42 (C) the offer is to cover 10 percent or more of
12-43 the total anticipated costs of the campaign:
12-44 (i) of a specific candidate supported by
12-45 the committee; or
12-46 (ii) concerning a specific measure
12-47 supported or opposed by the committee.
12-48 (b) The report filed not later than January 15 of each
12-49 odd-numbered year must also include the name of each person who
12-50 made an offer of money to the committee with the intent that it be
12-51 used in connection with a campaign for elective office or on a
12-52 measure, or to defray officeholder expenses that are not
12-53 reimbursable with public money, if the offer was accepted and the
12-54 offered money was not received by the committee, and the amount of
12-55 the offer. The information required by this subsection is for the
12-56 period beginning January 1 of the preceding odd-numbered year or
12-57 the date the committee's campaign treasurer appointment is filed,
12-58 as applicable, and continuing through December 31 of the preceding
12-59 even-numbered year.
12-60 SECTION 23. Section 254.126(a), Election Code, is amended to
12-61 read as follows:
12-62 (a) If a specific-purpose committee for assisting only
12-63 officeholders [an officeholder] expects no reportable activity to
12-64 occur after the period covered by a report filed under this
12-65 subchapter, the committee's campaign treasurer may designate the
12-66 report as a "dissolution" report.
12-67 SECTION 24. Subchapter E, Chapter 254, Election Code, is
12-68 amended by adding Section 254.1281 to read as follows:
12-69 Sec. 254.1281. NOTICE TO CANDIDATE AND OFFICEHOLDER RELATING
13-1 TO IN-KIND CONTRIBUTION. (a) If a specific-purpose committee
13-2 makes an in-kind political contribution to a candidate or
13-3 officeholder, the committee's campaign treasurer shall deliver
13-4 written notice of the amount of the contribution to the affected
13-5 candidate or officeholder not later than the end of the period
13-6 covered by the report in which the reportable activity occurs.
13-7 (b) The notice must include the full name and address of the
13-8 political committee and its campaign treasurer and an indication
13-9 that the committee is a specific-purpose committee.
13-10 SECTION 25. Section 254.151, Election Code, is amended to
13-11 read as follows:
13-12 Sec. 254.151. ADDITIONAL CONTENTS OF REPORTS. In addition
13-13 to the contents required by Section 254.031, each report by a
13-14 campaign treasurer of a general-purpose committee must include:
13-15 (1) the committee's full name and address;
13-16 (2) the full name, residence or business street
13-17 address, and telephone number of the committee's campaign
13-18 treasurer;
13-19 (3) the identity and date of the election for which
13-20 the report is filed, if applicable;
13-21 (4) the name of each identified candidate or measure
13-22 or classification by party of candidates supported or opposed by
13-23 the committee, indicating whether the committee supports or opposes
13-24 each listed candidate, measure, or classification by party of
13-25 candidates;
13-26 (5) the name of each identified officeholder or
13-27 classification by party of officeholders assisted by the committee;
13-28 (6) [the principal occupation of each person from whom
13-29 political contributions that in the aggregate exceed $50 are
13-30 accepted during the reporting period;]
13-31 [(7)] the amount of each political expenditure in the
13-32 form of a political contribution made to [a candidate,
13-33 officeholder, or] another political committee that is returned to
13-34 the committee during the reporting period, the name of the
13-35 committee [person] to whom the expenditure was originally made, and
13-36 the date it is returned;
13-37 (7) the amount of expenditures by a corporation or
13-38 labor organization under Section 253.100 that in the aggregate
13-39 exceed $100 and that are made to the committee during the reporting
13-40 period by the committee, the full name and address of the
13-41 corporation or labor organization making the expenditures, and the
13-42 dates of the expenditures; and
13-43 (8) on a separate page or pages of the report, the
13-44 identification of any contribution from a corporation or labor
13-45 organization made and accepted under Subchapter D, Chapter 253,
13-46 other than a contribution in the form of an expenditure reported
13-47 under Subdivision (7).
13-48 SECTION 26. Subchapter F, Chapter 254, Election Code, is
13-49 amended by adding Section 254.1611 to read as follows:
13-50 Sec. 254.1611. NOTICE TO CANDIDATE AND OFFICEHOLDER RELATING
13-51 TO IN-KIND CONTRIBUTION. If a general-purpose committee makes an
13-52 in-kind political contribution to a candidate or officeholder,
13-53 notice of the amount of the contribution shall be delivered to the
13-54 affected candidate or officeholder as provided by Section 254.1281
13-55 for a specific-purpose committee.
13-56 SECTION 27. Section 254.201, Election Code, is amended to
13-57 read as follows:
13-58 Sec. 254.201. ANNUAL REPORT OF UNEXPENDED CONTRIBUTIONS. A
13-59 [(a) This section applies to:]
13-60 [(1) a] former officeholder or a person who was an
13-61 unsuccessful candidate who has unexpended political contributions
13-62 after filing the last report required to be filed by Subchapter C
13-63 [D; or]
13-64 [(2) a person who was an unsuccessful candidate who
13-65 has unexpended political contributions after filing the last report
13-66 required to be filed by Subchapter C.]
13-67 [(b) A person covered by this section] shall file an annual
13-68 report for each year in which the person retains unexpended
13-69 contributions.
14-1 SECTION 28. Section 254.203(a), Election Code, is amended to
14-2 read as follows:
14-3 (a) A person may not retain political contributions covered
14-4 by this title, assets purchased with the contributions, or interest
14-5 and other income earned on the contributions for more than six
14-6 years after the date the person either ceases to be an officeholder
14-7 or candidate or the person's principal political committee files a
14-8 final report under this chapter, whichever is later.
14-9 SECTION 29. Section 254.204(a), Election Code, is amended to
14-10 read as follows:
14-11 (a) At the end of the six-year period prescribed by Section
14-12 254.203, the former officeholder or candidate shall remit any
14-13 unexpended political contributions to one or more of the following:
14-14 (1) the political party with which the person was
14-15 affiliated or aligned when the person's name last appeared on a
14-16 ballot;
14-17 (2) a candidate or political committee;
14-18 (3) the comptroller [of public accounts] for deposit
14-19 in the state treasury [State Treasury];
14-20 (4) one or more persons from whom political
14-21 contributions were received, in accordance with Subsection (d);
14-22 (5) a recognized tax-exempt, charitable organization
14-23 formed for educational, religious, or scientific purposes; or
14-24 (6) a public or private postsecondary educational
14-25 institution or an institution of higher education as defined by
14-26 Section 61.003(8), Education Code, solely for the purpose of
14-27 assisting or creating a scholarship program.
14-28 SECTION 30. Section 255.001(b), Election Code, is amended to
14-29 read as follows:
14-30 (b) This section does not apply to:
14-31 (1) tickets or invitations to political fund-raising
14-32 events;
14-33 (2) [or to] campaign buttons, pins, hats, or similar
14-34 campaign materials; or
14-35 (3) a political site on the Internet that is
14-36 maintained by a political party, if each page that is part of the
14-37 site contains a statement that:
14-38 (A) indicates that the site is political
14-39 advertising;
14-40 (B) contains the party's name and address; and
14-41 (C) contains the name of a person at the party
14-42 who can be contacted for information.
14-43 SECTION 31. The following provisions of the Election Code
14-44 are repealed:
14-45 (1) Sections 253.036 and 253.100(d); and
14-46 (2) Subchapter D, Chapter 254.
14-47 SECTION 32. This Act takes effect January 1, 2000.
14-48 SECTION 33. (a) Not later than January 15, 2000, each
14-49 person who on January 1, 2000, is a candidate, as that term is
14-50 defined by Section 251.001, Election Code, or an officeholder
14-51 covered by Section 251.010, Election Code, as added by this Act,
14-52 shall designate a principal political committee as required by
14-53 Section 251.010, Election Code, as added by this Act.
14-54 (b) Not later than the 15th day after the date a candidate
14-55 or officeholder designates a principal political committee as
14-56 required by Subsection (a) of this section, the person shall
14-57 transfer to the committee each asset that the person holds in the
14-58 person's capacity as a candidate or officeholder.
14-59 (c) Not later than the 15th day after the date a candidate
14-60 or officeholder designates a principal political committee as
14-61 required by Subsection (a) of this section, the committee shall
14-62 assume each liability of the person in the person's capacity as a
14-63 candidate or officeholder.
14-64 SECTION 34. Chapter 254, Election Code, as amended by this
14-65 Act, applies only to a report under that chapter that covers a
14-66 reporting period beginning on or after January 1, 2000. A report
14-67 under Chapter 254, Election Code, that covers a reporting period
14-68 that begins before January 1, 2000, is covered by the law in
14-69 existence on the date the reporting period began, and the former
15-1 law is continued in effect for that purpose.
15-2 SECTION 35. The importance of this legislation and the
15-3 crowded condition of the calendars in both houses create an
15-4 emergency and an imperative public necessity that the
15-5 constitutional rule requiring bills to be read on three several
15-6 days in each house be suspended, and this rule is hereby suspended.
15-7 * * * * *