By Gallego                                             H.B. No. 218
         76R553 ESH-D                           
                                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 criminal 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
1-22     candidate for or holder of an office covered by this subchapter
1-23     shall designate in writing a specific-purpose committee to serve as
1-24     the person's principal political committee.
 2-1           (b)  A designation under Subsection (a) must be:
 2-2                 (1)  made not later than the 15th day after the date
 2-3     the person becomes a candidate or officeholder; and
 2-4                 (2)  filed with the commission.
 2-5           (c)  The name of a principal political committee must include
 2-6     the candidate's or officeholder's name.
 2-7           (d)  A candidate or officeholder may not have more than one
 2-8     principal political committee at a time.  A person who is both a
 2-9     candidate and an officeholder may not have more than one principal
2-10     political committee.  A candidate who becomes an officeholder is
2-11     not required to designate a new principal political committee.
2-12           (e)  A prohibition or restriction imposed by this title on a
2-13     candidate or officeholder applies to the principal political
2-14     committee of a candidate or officeholder.
2-15           (f)  Except as provided by this section, a person may not
2-16     establish a specific-purpose committee for supporting or opposing a
2-17     candidate for or assisting a holder of an office covered by this
2-18     subchapter.
2-19           Sec. 253.204.  LIABILITY OF CANDIDATE OR OFFICEHOLDER FOR ACT
2-20     OR OMISSION OF PRINCIPAL POLITICAL COMMITTEE.  A candidate or
2-21     officeholder is civilly liable for an act or omission by the
2-22     person's principal political committee in connection with a
2-23     requirement or prohibition prescribed by this title only if the
2-24     person authorized, requested, commanded, performed, or recklessly
2-25     or negligently tolerated the act or omission.
2-26           Sec. 253.205.  ACCEPTANCE OF POLITICAL CONTRIBUTION BY
2-27     CANDIDATE OR OFFICEHOLDER.  (a)  Except as provided by Subsection
 3-1     (b), a candidate or officeholder may not knowingly accept a
 3-2     political contribution in connection with the person's own
 3-3     candidacy or office.
 3-4           (b)  A candidate or officeholder may accept a political
 3-5     contribution on behalf of the person's principal political
 3-6     committee unless the committee itself would be prohibited from
 3-7     accepting the contribution.
 3-8           Sec. 253.206.  LIMIT ON CONTRIBUTION BY CHILD.  (a)  A child
 3-9     may not knowingly make or authorize political contributions to the
3-10     principal political committee of a candidate or officeholder that,
3-11     in connection with each election in which the candidate or
3-12     officeholder is involved, in the aggregate exceed $50.
3-13           (b)  A person may not knowingly accept a political
3-14     contribution, and shall refuse a political contribution that is
3-15     received, in violation of Subsection (a).
3-16           (c)  In this section, "child" means a person under 18 years
3-17     of age who is not and has not been married or who has not had the
3-18     disabilities of minority removed for general purposes.
3-19           Sec. 253.207.  NOTICE REQUIRED FOR CERTAIN DIRECT CAMPAIGN
3-20     EXPENDITURES.  (a)  A person other than the principal political
3-21     committee of the state executive committee or a county executive
3-22     committee of a political party may not make a direct campaign
3-23     expenditure for the purpose of supporting or opposing one or more
3-24     candidates unless the person files with the commission and the
3-25     principal political committee of each candidate whom the
3-26     expenditure benefits a written declaration of the person's intent
3-27     to make the expenditure not later than 72 hours before the
 4-1     expenditure is made.  The declaration must include the amount of
 4-2     the expenditure.
 4-3           (b)  The commission shall file a declaration received under
 4-4     Subsection (a) with the records of the principal political
 4-5     committee of each candidate whom the political expenditure
 4-6     benefits.  Not later than 24 hours after receiving a declaration
 4-7     under Subsection (a), the commission shall deliver a copy of the
 4-8     declaration by telephonic facsimile machine or overnight mail to
 4-9     the principal political committee of each candidate who opposes the
4-10     candidate whom the expenditure benefits.  For purposes of this
4-11     section, a political expenditure that opposes a candidate is
4-12     considered to benefit each candidate for the office other than the
4-13     opposed candidate.
4-14           (c)  A political expenditure made by a political committee or
4-15     other association that consists only of costs incurred in
4-16     contacting the committee's or association's dues-paying membership
4-17     may be made without the declaration required by Subsection (a).
4-18           (d)  This section does not apply to a political expenditure
4-19     by a candidate's principal political committee in connection with
4-20     the candidate's election.
4-21           Sec. 253.208.  FAIR CAMPAIGN SPENDING FUND.  (a)  The fair
4-22     campaign spending fund is a special account in the general revenue
4-23     fund.
4-24           (b)  The fair campaign spending fund consists of:
4-25                 (1)  damages recovered under Section 253.133 for
4-26     violations of this subchapter;
4-27                 (2)  civil penalties imposed under Section 571.173,
 5-1     Government Code, for violations of this subchapter; and
 5-2                 (3)  any gifts or grants received by the commission
 5-3     under Subsection (f).
 5-4           (c)  The fair campaign spending fund may be used only for:
 5-5                 (1)  voter education projects that relate to campaigns
 5-6     for offices covered by this subchapter; and
 5-7                 (2)  payment of costs incurred in imposing civil
 5-8     penalties for violations of this subchapter.
 5-9           (d)  To the extent practicable, the fund shall be permitted
5-10     to accumulate until the balance is sufficient to permit the
5-11     publication of a voter's guide as provided by Section 253.209.
5-12           (e)  The commission may use money in the fair campaign
5-13     spending fund to produce public service announcements to educate
5-14     voters about this subchapter.
5-15           (f)  The commission may accept gifts and grants for the
5-16     purposes described by Subsections (c)(1), (d), and (e).  Funds
5-17     received under this subsection shall be deposited to the credit of
5-18     the fair campaign spending fund.
5-19           (g)  The fair campaign spending fund is exempt from Section
5-20     403.095, Government Code.
5-21           Sec. 253.209.  VOTER'S GUIDE.  (a)  If the necessary money is
5-22     available under Section 253.208, the commission may publish a
5-23     voter's guide listing candidates for offices covered by this
5-24     subchapter, their backgrounds, and similar information.
5-25           (b)  The commission shall adopt rules under which a candidate
5-26     must provide information to the commission for inclusion in the
5-27     voter's guide.  The rules may not restrict the content of a
 6-1     candidate's information by any means other than prescribing a
 6-2     maximum length.
 6-3           (c)  Not later than the seventh day before the date early
 6-4     voting by mail begins, the commission shall:
 6-5                 (1)  make the voter's guide available for publication
 6-6     by newspapers in each part of the state;
 6-7                 (2)  make the voter's guide available through the
 6-8     Internet; and
 6-9                 (3)  make the voter's guide available through the
6-10     comptroller's state government electronic billboard.
6-11           (d)  In this section, "Internet" means the largest
6-12     nonproprietary nonprofit cooperative public computer network,
6-13     popularly known as the Internet.
6-14           SECTION 2.  Section 84.001, Election Code, is amended to read
6-15     as follows:
6-16           Sec. 84.001.  APPLICATION REQUIRED.  (a)  To be entitled to
6-17     vote an early voting ballot by mail, a person who is eligible for
6-18     early voting must make an application for an early voting ballot to
6-19     be voted by mail as provided by this title.
6-20           (b)  An application must be in writing and signed by the
6-21     applicant.
6-22           (c)  An applicant is not required to use an official
6-23     application form.
6-24           (d)  An applicant may not use an application form that is
6-25     part of or is included with a campaign communication or political
6-26     advertising, as defined by Section 251.001, unless the application
6-27     form and campaign communication or political advertising are
 7-1     provided to the applicant by:
 7-2                 (1)  an individual, candidate, or officeholder not
 7-3     working in concert with another person; or
 7-4                 (2)  the principal political committee of the state
 7-5     executive committee or a county executive committee of a political
 7-6     party.
 7-7           (e)  An applicant for a ballot to be voted by mail may apply
 7-8     for ballots for the main election and any resulting runoff election
 7-9     on the same application.  The timeliness of the application for
7-10     both elections is determined in relation to the main election.
7-11     However, if the application is not timely for the main election,
7-12     the timeliness of the application for the runoff election is
7-13     determined in relation to that election.
7-14           (f) [(e)]  A person who has not made an application as
7-15     provided by this title is not entitled to receive an early voting
7-16     ballot to be voted by mail.
7-17           SECTION 3.  Section 251.001, Election Code, is amended by
7-18     amending Subdivisions (14) and (16) and adding Subdivision (21) to
7-19     read as follows:
7-20                 (14)  "General-purpose committee" means a political
7-21     committee that has among its principal purposes:
7-22                       (A)  supporting or opposing:
7-23                             (i)  two or more candidates who are
7-24     unidentified or are seeking offices that are unknown; or
7-25                             (ii)  one or more unidentified measures
7-26     [that are unidentified]; or
7-27                       (B)  assisting two or more officeholders who are
 8-1     unidentified.
 8-2                 (16)  "Political advertising" means a communication
 8-3     supporting or opposing a candidate for nomination or election to a
 8-4     public office or office of a political party, a political party, a
 8-5     public officer, or a measure that:
 8-6                       (A)  in return for consideration[,] is:
 8-7                             (i)  published in a newspaper, magazine, or
 8-8     other periodical;
 8-9                             (ii)  [or is] broadcast by radio or
8-10     television; or
8-11                             (iii)  delivered through the use of an
8-12     automated dial announcing device, as defined by Section 55.121,
8-13     Utility Code; or
8-14                       (B)  appears in a pamphlet, circular, flier,
8-15     billboard or other sign, bumper sticker, or similar form of written
8-16     communication.
8-17                 (21)  "Unidentified measure" means a question or
8-18     proposal that is intended to be submitted in an election for an
8-19     expression of the voters' will and that is not yet legally required
8-20     to be submitted in an election.  The term does not include the
8-21     circulation or submission of a petition to determine whether a
8-22     question or proposal is required to be submitted in an election for
8-23     an expression of the voters' will.
8-24           SECTION 4.  Section 253.003(c), Election Code, is amended to
8-25     read as follows:
8-26           (c)  This section does not apply to a political contribution
8-27     made or accepted in violation of Subchapter F or G.
 9-1           SECTION 5.  Section 253.004(b), Election Code, is amended to
 9-2     read as follows:
 9-3           (b)  This section does not apply to a political expenditure
 9-4     made or authorized in violation of Subchapter F or G.
 9-5           SECTION 6.  Section 253.134, Election Code, is amended to
 9-6     read as follows:
 9-7           Sec. 253.134.  Civil Penalties Imposed by Commission.  (a)
 9-8     This title does not prohibit the imposition of civil penalties by
 9-9     the commission in addition to criminal penalties or other sanctions
9-10     imposed by law.
9-11           (b)  The commission, subject to approval of the attorney
9-12     general, may contract with a nongovernmental entity to collect a
9-13     civil penalty imposed under Section 571.173, Government Code, for a
9-14     violation of this chapter that is not paid before the 120th day
9-15     after the date it is imposed.
9-16           SECTION 7.  Section 254.031, Election Code, is amended to
9-17     read as follows:
9-18           Sec. 254.031.  General Contents of Reports.  (a)  Except as
9-19     otherwise provided by this chapter, each report filed under this
9-20     chapter must include:
9-21                 (1)  the amount of political contributions from each
9-22     person that in the aggregate exceed $50 and that are accepted
9-23     during the reporting period by the person or committee required to
9-24     file a report under this chapter, the full name and address of the
9-25     person making the contributions, and the dates of the
9-26     contributions;
9-27                 (2)  for each individual from whom the person or
 10-1    committee required to file the report has accepted political
 10-2    contributions that in the aggregate exceed $100 and that are
 10-3    accepted during the reporting period:
 10-4                      (A)  the individual's principal occupation or job
 10-5    title;
 10-6                      (B)  the full name of the individual's employer,
 10-7    if any; and
 10-8                      (C)  if the person required to file the report is
 10-9    a candidate or officeholder, the aggregate total of political
10-10    contributions accepted from the individual since the date of the
10-11    last general election for the office sought by the candidate or
10-12    held by the officeholder, other than a contribution designated in
10-13    writing for that general election;
10-14                (3)  the amount of loans that are made during the
10-15    reporting period for campaign or officeholder purposes to the
10-16    person or committee required to file the report and that in the
10-17    aggregate exceed $50, the dates the loans are made, the interest
10-18    rate, the maturity date, the type of collateral for the loans, if
10-19    any, the full name and address of the person or financial
10-20    institution making the loans, the full name and address, principal
10-21    occupation, and name of the employer of each guarantor of the
10-22    loans, the amount of the loans guaranteed by each guarantor, and
10-23    the aggregate principal amount of all outstanding loans as of the
10-24    last day of the reporting period;
10-25                (4) [(3)]  the amount of political expenditures that in
10-26    the aggregate exceed $50 and that are made during the reporting
10-27    period, the full name and address of the persons to whom the
 11-1    expenditures are made, and the dates and purposes of the
 11-2    expenditures;
 11-3                (5) [(4)]  the amount of each payment made during the
 11-4    reporting period from a political contribution if the payment is
 11-5    not a political expenditure, the full name and address of the
 11-6    person to whom the payment is made, and the date and purpose of the
 11-7    payment;
 11-8                (6) [(5)]  the total amount or a specific listing of
 11-9    the political contributions of $50 or less accepted and the total
11-10    amount or a specific listing of the political expenditures of $50
11-11    or less made during the reporting period;
11-12                (7) [(6)]  the total amount of all political
11-13    contributions accepted and the total amount of all political
11-14    expenditures made during the reporting period; and
11-15                (8) [(7)]  the name of each candidate or officeholder
11-16    who benefits from a direct campaign expenditure made during the
11-17    reporting period by the person or committee required to file the
11-18    report, and the office sought or held, excluding a direct campaign
11-19    expenditure that is made by the principal political committee of a
11-20    political party on behalf of a slate of two or more nominees of
11-21    that party.
11-22          (b)  A person is considered to be in compliance with
11-23    Subsection (a)(2) if the person or the person's campaign treasurer
11-24    shows that best efforts have been used to obtain, maintain, and
11-25    report the information required by that subsection.
11-26          (c)  If no reportable activity occurs during a reporting
11-27    period, the person required to file a report shall indicate that
 12-1    fact in the report.
 12-2          SECTION 8.  Section 254.061, Election Code, is amended to
 12-3    read as follows:
 12-4          Sec. 254.061.  Additional Contents of Reports.  In addition
 12-5    to the contents required by Section 254.031, each report by a
 12-6    candidate must include:
 12-7                (1)  the candidate's full name and address, the office
 12-8    sought, and the identity and date of the election for which the
 12-9    report is filed;
12-10                (2)  the campaign treasurer's name, residence or
12-11    business street address, and telephone number;
12-12                (3)  for each political committee from which the
12-13    candidate received notice under Section 254.128 or 254.161:
12-14                      (A)  the committee's full name and address;
12-15                      (B)  an indication of whether the committee is a
12-16    general-purpose committee or a specific-purpose committee; [and]
12-17                      (C)  the full name and address of the committee's
12-18    campaign treasurer; and
12-19                      (D)  the amount of each political contribution or
12-20    political expenditure;
12-21                (4)  the full name and address of each individual
12-22    acting as a campaign treasurer of a political committee under
12-23    Section 253.062 from whom the candidate received notice under
12-24    Section 254.128 or 254.161; and
12-25                (5)  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 has a participating interest of
 13-1    more than 10 percent, holds a position on the governing body of the
 13-2    business, or serves as an officer of the business.
 13-3          SECTION 9.  Subchapter C, Chapter 254, Election Code, is
 13-4    amended by adding Section 254.0612 to read as follows:
 13-5          Sec. 254.0612.  REPORTS BY PRINCIPAL POLITICAL COMMITTEE OF
 13-6    EXECUTIVE OR LEGISLATIVE CANDIDATE; ADDITIONAL CONTENTS.  (a)  The
 13-7    principal political committee of a candidate for an office covered
 13-8    by Subchapter G, Chapter 253, shall comply with this chapter as if
 13-9    the committee were a candidate.
13-10          (b)  In addition to the contents required by Sections 254.031
13-11    and 254.061, each report by the principal political committee of a
13-12    candidate for an office covered by Subchapter G, Chapter 253, must
13-13    include for each political expenditure made by the candidate from
13-14    the candidate's personal funds or other assets, the information
13-15    required by Section 254.031(a)(4).
13-16          (c)  In this section, "principal political committee of a
13-17    candidate" means a specific-purpose committee established under
13-18    Section 253.203 for supporting a candidate.
13-19          SECTION 10.  Section 254.091, Election Code, is amended to
13-20    read as follows:
13-21          Sec. 254.091.  Additional Contents of Reports.  In addition
13-22    to the contents required by Section 254.031, each report by an
13-23    officeholder must include:
13-24                (1)  the officeholder's full name and address and the
13-25    office held;
13-26                (2)  for each political committee from which the
13-27    officeholder received notice under Section 254.128 or 254.161:
 14-1                      (A)  the committee's full name and address;
 14-2                      (B)  an indication of whether the committee is a
 14-3    general-purpose committee or a specific-purpose committee; [and]
 14-4                      (C)  the full name and address of the committee's
 14-5    campaign treasurer; and
 14-6                      (D)  the amount of each political contribution or
 14-7    political expenditure; and
 14-8                (3)  on a separate page or pages of the report, the
 14-9    identification of any payment from political contributions made to
14-10    a business in which the officeholder has a participating interest
14-11    of more than 10 percent, holds a position on the governing body of
14-12    the business, or serves as an officer of the business.
14-13          SECTION 11.  Subchapter D, Chapter 254, Election Code, is
14-14    amended by adding Section 254.0912 to read as follows:
14-15          Sec. 254.0912.  REPORTS BY PRINCIPAL POLITICAL COMMITTEE OF
14-16    EXECUTIVE OR LEGISLATIVE OFFICEHOLDER; ADDITIONAL CONTENTS.  (a)
14-17    The principal political committee of an officeholder covered by
14-18    Subchapter G, Chapter 253, shall comply with this chapter as if the
14-19    committee were an officeholder.
14-20          (b)  In addition to the contents required by Sections 254.031
14-21    and 254.091, each report by the principal political committee of an
14-22    officeholder covered by Subchapter G, Chapter 253, must include the
14-23    contents prescribed by Section 254.0612.
14-24          (c)  In this section, "principal political committee of an
14-25    officeholder" means a specific-purpose committee established under
14-26    Section 253.203 for assisting an officeholder.
14-27          SECTION 12.  Section 254.128, Election Code, is amended to
 15-1    read as follows:
 15-2          Sec. 254.128.  Notice to Candidate and Officeholder of
 15-3    Contributions and Expenditures.  (a)  If a specific-purpose
 15-4    committee accepts political contributions or makes political
 15-5    expenditures for a candidate or officeholder, the committee's
 15-6    campaign treasurer shall deliver written notice of that fact to the
 15-7    affected candidate or officeholder not later than the end of the
 15-8    period covered by the report in which the reportable activity
 15-9    occurs.
15-10          (b)  The notice must include:
15-11                (1)  the full name and address of the political
15-12    committee and its campaign treasurer;
15-13                (2)  [and] an indication that the committee is a
15-14    specific-purpose committee; and
15-15                (3)  the amount of each political contribution accepted
15-16    or political expenditure made.
15-17          (c)  For purposes of this section, a specific-purpose
15-18    committee that makes a political expenditure that benefits more
15-19    than one candidate or officeholder shall, in compliance with rules
15-20    adopted by the commission, allocate a portion of the expenditure to
15-21    each candidate or officeholder whom the expenditure benefits in
15-22    proportion to the benefit received by the candidate or
15-23    officeholder.  For purposes of this subsection:
15-24                (1)  a political expenditure for supporting a candidate
15-25    or assisting an officeholder benefits each candidate or
15-26    officeholder supported or assisted; and
15-27                (2)  a political expenditure for opposing a candidate
 16-1    benefits each opponent of the candidate.
 16-2          (d)  A campaign treasurer commits an offense if the campaign
 16-3    treasurer fails to comply with this section.  An offense under this
 16-4    section is a Class A misdemeanor.
 16-5          SECTION 13.  Subchapter F, Chapter 254, Election Code, is
 16-6    amended by adding Sections 254.1511 and 254.1512 to read as
 16-7    follows:
 16-8          Sec. 254.1511.  REPORTS BY PRINCIPAL POLITICAL COMMITTEE OF
 16-9    POLITICAL PARTY; ADDITIONAL CONTENTS.  (a)  Each report by the
16-10    principal political committee of the state executive committee of a
16-11    political party must list the political contributions and political
16-12    expenditures made in connection with each candidate or officeholder
16-13    on a separate schedule.
16-14          (b)  In addition to the contents required by Sections 254.031
16-15    and 254.151, each report by the principal political committee of
16-16    the state executive committee of a political party must include,
16-17    for each candidate for or holder of an office covered by Subchapter
16-18    G, Chapter 253, for whose benefit the committee makes a political
16-19    contribution or political expenditure in the calendar year:
16-20                (1)  the total amount of political contributions made
16-21    during the calendar year to the principal political committee of
16-22    the candidate or officeholder; and
16-23                (2)  the total amount of political expenditures made
16-24    during the calendar year for the benefit of the candidate or
16-25    officeholder.
16-26          (c)  In this section, "principal political committee of a
16-27    candidate or officeholder" has the meaning assigned by Section
 17-1    253.202.
 17-2          Sec. 254.1512.  CONTENTS OF REPORTS OF FEDERALLY REGISTERED
 17-3    COMMITTEE.  (a)  This section applies only to a general-purpose
 17-4    committee that is registered under Subchapter I, Chapter 14, Title
 17-5    2, United States Code.
 17-6          (b)  Each report by the campaign treasurer of a
 17-7    general-purpose committee to which this section applies must
 17-8    include the contents required by Sections 254.031 and 254.151,
 17-9    except as provided by this section.
17-10          (c)  Instead of the information required by Sections
17-11    254.031(a)(1)-(4) and (6), the committee's report must include:
17-12                (1)  for each political contribution accepted during
17-13    the reporting period by the committee that, when aggregated with
17-14    each other political contribution accepted by the committee during
17-15    the calendar year from the person making the contribution, exceeds
17-16    $200:
17-17                      (A)  the amount of the contribution;
17-18                      (B)  the full name and address and principal
17-19    occupation of the person making the contribution; and
17-20                      (C)  the date of the contribution;
17-21                (2)  for each loan made during the reporting period to
17-22    the committee for campaign purposes that, when aggregated with each
17-23    other loan made to the committee during the calendar year by the
17-24    person making the loan, exceeds $200:
17-25                      (A)  the amount of the loan;
17-26                      (B)  the full name and address of the person or
17-27    financial institution making the loan;
 18-1                      (C)  the date of the loan;
 18-2                      (D)  the interest rate;
 18-3                      (E)  the maturity date;
 18-4                      (F)  the type of collateral for the loan, if any;
 18-5                      (G)  the full name and address, principal
 18-6    occupation, and name of the employer of each guarantor of the loan;
 18-7    and
 18-8                      (H)  the amount of the loan guaranteed by each
 18-9    guarantor;
18-10                (3)  for each political expenditure made during the
18-11    reporting period by the committee that, when aggregated with each
18-12    other political expenditure made by the committee during the
18-13    calendar year to the person, exceeds $200:
18-14                      (A)  the amount of the expenditure;
18-15                      (B)  the full name and address of the person to
18-16    whom the expenditure is made; and
18-17                      (C)  the date of the expenditure;
18-18                (4)  the total amount or a specific listing of the
18-19    political contributions of $200 or less accepted and the total
18-20    amount of political expenditures of $200 or less made during the
18-21    reporting period; and
18-22                (5)  the aggregate principal amount of all outstanding
18-23    loans as of the last day of the reporting period.
18-24          (d)  The committee's report need not include the amount of a
18-25    payment that is reported as a contribution under Subchapter I,
18-26    Chapter 14, Title 2, United States Code.
18-27          (e)  Section 254.156 does not apply to a committee to which
 19-1    this section applies.
 19-2          (f)  Notwithstanding Section 571.065, Government Code, a
 19-3    committee to which this section applies may report the information
 19-4    required by Subsection (c) on a form adopted or accepted by the
 19-5    Federal Elections Commission.
 19-6          SECTION 14.  Section 254.203(a), Election Code, is amended to
 19-7    read as follows:
 19-8          (a)  A person may not retain political contributions covered
 19-9    by this title, assets purchased with the contributions, or interest
19-10    and other income earned on the contributions for more than six
19-11    years after the later of:
19-12                (1)  the date the person [either] ceases to be an
19-13    officeholder; or
19-14                (2)  the date of the most recent election in which the
19-15    person was a candidate [or files a final report under this chapter,
19-16    whichever is later].
19-17          SECTION 15.  Section 254.204(a), Election Code, is amended to
19-18    read as follows:
19-19          (a)  At the end of the six-year period prescribed by Section
19-20    254.203, the former officeholder or candidate shall remit any
19-21    unexpended political contributions to one or more of the following:
19-22                (1)  the political party with which the person was
19-23    affiliated or aligned when the person's name last appeared on a
19-24    ballot;
19-25                (2)  a candidate or political committee;
19-26                (3)  the comptroller [of public accounts] for deposit
19-27    in the state treasury [State Treasury];
 20-1                (4)  one or more persons from whom political
 20-2    contributions were received, in accordance with Subsection (d);
 20-3                (5)  a recognized tax-exempt, charitable organization
 20-4    formed for educational, religious, or scientific purposes; [or]
 20-5                (6)  a public or private postsecondary educational
 20-6    institution or an institution of higher education as defined by
 20-7    Section 61.003[(8)], Education Code, solely for the purpose of
 20-8    assisting or creating a scholarship program; or
 20-9                (7)  the commission for deposit in the fair campaign
20-10    spending fund under Section 253.208.
20-11          SECTION 16.  Section 255.001(a), Election Code, is amended to
20-12    read as follows:
20-13          (a)  A person may not knowingly enter into a contract or
20-14    other agreement to print, copy, publish, or broadcast political
20-15    advertising that does not indicate in the advertising:
20-16                (1)  that it is political advertising; and
20-17                (2)  the full name and address of:
20-18                      (A)  [either] the individual who caused the
20-19    advertising to be printed, copied, published, or broadcast;
20-20                      (B)  the campaign treasurer of the candidate,
20-21    officeholder, or political committee on whose behalf the
20-22    advertising is printed, copied, published, or broadcast; or
20-23                      (C)  the candidate, officeholder, or political
20-24    committee on whose behalf the advertising is printed, copied,
20-25    published, or broadcast [personally entered into the contract or
20-26    agreement with the printer, publisher, or broadcaster or the person
20-27    that individual represents; and]
 21-1                [(3)  in the case of advertising that is printed or
 21-2    published, the address of either the individual who personally
 21-3    entered into the agreement with the printer or publisher or the
 21-4    person that individual represents].
 21-5          SECTION 17.  Chapter 255, Election Code, is amended by adding
 21-6    Section 255.009 to read as follows:
 21-7          Sec. 255.009.  DISCLOSURE ON POLITICAL ADVERTISING CONCERNING
 21-8    CERTAIN UNPAID CIVIL PENALTIES.  (a)  Political advertising by a
 21-9    person who fails to pay a civil penalty imposed by the commission
21-10    for a violation of this title must, in addition to any other
21-11    disclosure required under this chapter, include the following
21-12    statement:  "(Name of candidate or committee) has failed to pay a
21-13    civil penalty imposed by the Texas Ethics Commission for a
21-14    violation of Title 15, Election Code."
21-15          (b)  The commission shall adopt rules providing for:
21-16                (1)  the minimum size of the disclosure required by
21-17    this section in political advertising that appears on television or
21-18    in writing; and
21-19                (2)  the minimum duration of the disclosure required by
21-20    this section in political advertising that appears on television or
21-21    radio.
21-22          (c)  Subsection (a) does not apply to a civil penalty imposed
21-23    by the commission that is the subject of an appeal under Section
21-24    571.133, Government Code.
21-25          (d)  A person who violates this section commits an offense.
21-26    An offense under this section is a Class A misdemeanor.
21-27          SECTION 18.  Title 15, Election Code, is amended by adding
 22-1    Chapter 256 to read as follows:
 22-2                   CHAPTER 256.  POLITICAL CONSULTANTS 
 22-3          Sec. 256.001.  DEFINITIONS.  In this chapter:
 22-4                (1)  "Political consultant" means a person required to
 22-5    register under Section 256.002.
 22-6                (2)  "Political services" includes:
 22-7                      (A)  providing advice on political strategy,
 22-8    voter demographics, or the content or distribution of political
 22-9    advertising;
22-10                      (B)  seeking the endorsement of an individual or
22-11    organization; and
22-12                      (C)  polling.
22-13          Sec. 256.002.  PERSONS REQUIRED TO REGISTER.  (a)  A person
22-14    shall register with the commission under this chapter if the person
22-15    receives or agrees to receive compensation of more than an amount
22-16    determined by commission rule but not less than $200 in a calendar
22-17    quarter from a candidate, officeholder, political committee, or
22-18    political party to provide political services in connection with a
22-19    statewide or district office or a statewide measure.
22-20          (b)  A person is not required to register under this chapter
22-21    if the person receives compensation for providing political
22-22    services only as an employee of a candidate, officeholder,
22-23    political committee, or political party.
22-24          (c)  A person who knowingly fails to register as required by
22-25    this chapter commits an offense.  An offense under this section is
22-26    a Class A misdemeanor.
22-27          Sec. 256.003.  REGISTRATION.  (a)  Each person required to
 23-1    register under this chapter shall file with the commission a
 23-2    written registration accompanied by a registration fee.
 23-3          (b)  A registration filed under this chapter expires January
 23-4    1 of each year unless the political consultant files with the
 23-5    commission a written renewal of registration accompanied by a
 23-6    renewal fee.  The political consultant may file the registration
 23-7    renewal at any time in December preceding the expiration of the
 23-8    registration.
 23-9          (c)  The registration fee and registration renewal fee are
23-10    $300.
23-11          (d)  A person required to register under this chapter who has
23-12    not registered or whose registration has expired:
23-13                (1)  shall file the registration and fee not later than
23-14    the fifth day after the date the person first provides political
23-15    services to a candidate, officeholder, political committee, or
23-16    political party; and
23-17                (2)  may not accept compensation before the person
23-18    files the registration.
23-19          (e)  The registration must contain:
23-20                (1)  the person's full name and address; and
23-21                (2)  the person's business telephone number and
23-22    business address.
23-23          (f)  If a change occurs in the information required to be
23-24    reported by a person under this section and that changed
23-25    information is not timely reported on a report due under Section
23-26    256.004, the person shall file an amended statement reflecting the
23-27    change with the commission not later than the date the next report
 24-1    is due under Section 256.004.
 24-2          Sec. 256.004.  ACTIVITIES REPORT.  (a)  Each political
 24-3    consultant shall file with the commission a report concerning the
 24-4    activities described by this section.
 24-5          (b)  The report must contain, for each candidate,
 24-6    officeholder, political committee, or political party to whom the
 24-7    political consultant provides political services in the reporting
 24-8    period:
 24-9                (1)  the name and address of the candidate,
24-10    officeholder, political committee, or political party;
24-11                (2)  a description of the political services provided;
24-12    and
24-13                (3)  the amount of compensation received in the
24-14    reporting period for the political services.
24-15          Sec. 256.005.  REPORTING SCHEDULE.  (a)  A political
24-16    consultant shall file two reports for each year as provided by this
24-17    section.
24-18          (b)  The first report shall be filed not later than July 15.
24-19    The report covers the period beginning January 1, the day the
24-20    political consultant's registration is filed, or the first day
24-21    after the period covered by the last report required to be filed
24-22    under this chapter, as applicable, and continuing through June 30.
24-23          (c)  The second report shall be filed not later than January
24-24    15.  The report covers the period beginning July 1, the day the
24-25    political consultant's registration is filed, or the first day
24-26    after the period covered by the last report required to be filed
24-27    under this chapter, as applicable, and continuing through December
 25-1    31.
 25-2          Sec. 256.006.  APPLICABILITY OF CHAPTER 254.  Subchapters A
 25-3    and B, Chapter 254, apply to registrations, reportable activity,
 25-4    and reports filed under this chapter, except to the extent
 25-5    inconsistent with this chapter.
 25-6          SECTION 19.  (a)  This Act takes effect September 1, 1999.
 25-7          (b)  Not later than September 15, 1999, each candidate for or
 25-8    holder of an office covered by Subchapter G, Chapter 253, Election
 25-9    Code, as added by this Act, shall file with the Texas Ethics
25-10    Commission a designation of the person's principal political
25-11    committee as required by Section 253.203, Election Code, as added
25-12    by this Act.
25-13          (c)  Subchapter G, Chapter 253, Election Code, as added by
25-14    this Act, applies only to a political contribution accepted or a
25-15    political expenditure made on or after September 1, 1999.  A
25-16    political contribution accepted or a political expenditure made
25-17    before that date is governed by the law in effect at the time the
25-18    contribution was accepted or the expenditure was made.
25-19          (d)  The change in law made to Sections 254.128 and 255.001,
25-20    Election Code, by this Act applies only to an offense committed on
25-21    or after September 1, 1999.  For the purposes of this section, an
25-22    offense is committed before September 1, 1999, if any element of
25-23    the offense occurs before that date.
25-24          (e)  An offense under Section 254.128 or 255.001, Election
25-25    Code, that is committed before September 1, 1999, is covered by the
25-26    law in effect when the offense was committed, and the former law is
25-27    continued in effect for this purpose.
 26-1          (f)  Sections 254.061, 254.091, and 254.128, Election Code,
 26-2    as amended by this Act, and Sections 254.0612, 254.0912, 254.1511,
 26-3    and 254.1512, Election Code, as added by this Act, apply to the
 26-4    reporting of a political contribution accepted or political
 26-5    expenditure made on or after September 1, 1999.  The reporting of a
 26-6    political contribution accepted or a political expenditure made
 26-7    before that date is governed by the law in effect at the time the
 26-8    contribution or expenditure was accepted or made, and the former
 26-9    law is continued in effect for that purpose.
26-10          (g)  Notwithstanding Section 254.203, Election Code, as that
26-11    section existed before amendment by this Act, a person who ceased
26-12    to be an officeholder or who was last a candidate in an election
26-13    before September 1, 1993, shall, not later than January 1, 2000,
26-14    dispose of unexpended political contributions, assets purchased
26-15    with political contributions, and interest or other income earned
26-16    on political contributions in compliance with Section 254.203,
26-17    Election Code, as amended by this Act.  A person who ceased to be
26-18    an officeholder or candidate on or after September 1, 1993, shall
26-19    dispose of unexpended political contributions, assets purchased
26-20    with political contributions, and interest or other income earned
26-21    on political contributions in compliance with Section 254.203,
26-22    Election Code, as amended by this Act, regardless of whether the
26-23    person has filed a final report under Chapter 254, Election Code.
26-24          SECTION 20.  The importance of this legislation and the
26-25    crowded condition of the calendars in both houses create an
26-26    emergency and an imperative public necessity that the
26-27    constitutional rule requiring bills to be read on three several
 27-1    days in each house be suspended, and this rule is hereby suspended.