By Mowery                                             H.B. No. 1158
         76R4182 ESH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to limits on political contributions to and direct
 1-3     campaign expenditures made on behalf of certain candidates,
 1-4     officeholders, and political committees; providing criminal
 1-5     penalties.
 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-7           SECTION 1.  Chapter 253, Election Code, is amended by adding
 1-8     Subchapter G to read as follows:
 1-9                     SUBCHAPTER G.  CONTRIBUTION LIMITS
1-10           Sec. 253.201.  CONTRIBUTION LIMITS.  (a)  Except as provided
1-11     by Subsection (d), a person may not knowingly make or authorize
1-12     political contributions to a candidate or officeholder that in the
1-13     aggregate exceed the limit prescribed by Subsection (b) with
1-14     respect to an election cycle in which the candidate or officeholder
1-15     is involved.
1-16           (b)  The contribution limits are:
1-17                 (1)  for the office of state senator, $10,000; or
1-18                 (2)  for any other office, $5,000.
1-19           (c)  A person may not knowingly accept a political
1-20     contribution, and shall refuse a political contribution that is
1-21     received, in  violation of Subsection (a).
1-22           (d)  This section does not apply to a political contribution
1-23     in connection with:
1-24                 (1)  a statewide office; or
 2-1                 (2)  the office of member, State Board of Education.
 2-2           (e)  A person who violates this section commits an offense.
 2-3     An offense under this section is a Class A misdemeanor.
 2-4           (f)  In this section:
 2-5                 (1)  "Election cycle" means:
 2-6                       (A)  the general primary election, runoff primary
 2-7     election, if any, and general election for an office for which a
 2-8     primary  election is held;
 2-9                       (B)  the general election and runoff election, if
2-10     any, for an office for which a primary election is not held; or
2-11                       (C)  a special election and runoff election, if
2-12     any.
2-13                 (2)  "With respect to an election cycle" means:
2-14                       (A)  with regard to a political contribution that
2-15     is designated in writing for a particular election, the election
2-16     cycle that includes the  election designated; or
2-17                       (B)  with regard to a political contribution that
2-18     is not designated in writing for a particular election or that is
2-19     designated as an  officeholder contribution, the election cycle
2-20     that includes the next election for that office occurring after the
2-21     contribution is made.
2-22           Sec. 253.202.  CONTRIBUTION TO CERTAIN COMMITTEES CONSIDERED
2-23     CONTRIBUTION TO CANDIDATE OR OFFICEHOLDER.  For purposes of Section
2-24     253.201, a political contribution to a specific-purpose committee
2-25     for the purpose of supporting a candidate, opposing the candidate's
2-26     opponent, or assisting the candidate as an officeholder is
2-27     considered to be a contribution to the candidate or officeholder.
 3-1           Sec. 253.203.  CERTAIN DIRECT CAMPAIGN EXPENDITURES
 3-2     CONSIDERED CONTRIBUTION TO CANDIDATE.  For purposes of Section
 3-3     253.201, a direct campaign expenditure is considered to be a
 3-4     campaign contribution to a candidate if it is made with the
 3-5     cooperation or prior consent of, in consultation with, or at the
 3-6     suggestion of:
 3-7                 (1)  the candidate;
 3-8                 (2)  a specific-purpose committee for supporting the
 3-9     candidate or opposing the candidate's opponent; or
3-10                 (3)  a person acting with the candidate's knowledge and
3-11     consent.
3-12           Sec. 253.204.  NOTICE TO CERTAIN CANDIDATES OR OFFICEHOLDERS
3-13     OF INTENT TO ACCEPT CONTRIBUTIONS OR MAKE EXPENDITURES.  (a)  The
3-14     campaign treasurer of a specific-purpose committee that intends to
3-15     accept political contributions or make political expenditures for
3-16     the purpose of supporting a candidate for an office to which
3-17     Section 253.201 applies, opposing such a candidate's opponent, or
3-18     assisting such a candidate as an officeholder shall deliver written
3-19     notice of the committee's intent to the candidate or officeholder.
3-20           (b)  The notice must include the full name and address of the
3-21     specific-purpose committee and of its campaign treasurer.
3-22           (c)  The notice must be delivered not later than the later
3-23     of:
3-24                 (1)  the date the committee files its campaign
3-25     treasurer appointment; or
3-26                 (2)  the third day after the date the committee
3-27     determines it intends to accept political contributions or make
 4-1     political expenditures for which notice under this section is
 4-2     required.
 4-3           (d)  A campaign treasurer who violates this section commits
 4-4     an offense.  An offense under this section is a Class A
 4-5     misdemeanor.
 4-6           Sec. 253.205.  NOTICE TO CANDIDATE, OFFICEHOLDER, OR
 4-7     COMMITTEE OF RECEIPT OF CONTRIBUTION.  (a)  The campaign treasurer
 4-8     of a specific-purpose committee that receives a political
 4-9     contribution or makes a direct campaign expenditure that is
4-10     considered under Section 253.202 or 253.203 to be a contribution to
4-11     a candidate or officeholder shall, not later than the fifth day
4-12     after the date the contribution is received or the expenditure is
4-13     made, deliver written notice of that fact to the affected candidate
4-14     or officeholder.
4-15           (b)  A candidate or officeholder who receives a political
4-16     contribution covered by Section 253.201 shall, not later than the
4-17     fifth day after the date the contribution is received, deliver
4-18     written notice of that fact to the campaign treasurer of each
4-19     specific-purpose committee that notifies the candidate or
4-20     officeholder under Section 253.204 that the committee intends to
4-21     accept political contributions or make political expenditures on
4-22     the candidate's or officeholder's behalf.
4-23           (c)  A notice under this section must include:
4-24                 (1)  the full name and address of the person receiving
4-25     the political contribution and of the person's campaign treasurer,
4-26     if any;
4-27                 (2)  the full name and address of the person making the
 5-1     contribution;
 5-2                 (3)  the date the contribution is received; and
 5-3                 (4)  the amount of the contribution.
 5-4           (d)  A person who violates this section commits an offense.
 5-5     An offense under this section is a Class A misdemeanor.
 5-6           Sec. 253.206.  RETURN OF EXCESS CONTRIBUTION.  (a)  A person
 5-7     who receives a political contribution the acceptance of which would
 5-8     violate Section 253.201 shall return the contribution to the
 5-9     contributor not later than the 10th day after the date the
5-10     contribution is received.
5-11           (b)  A political contribution that is not returned as
5-12     required by this section is considered to be accepted.
5-13           SECTION 2.  Section 254.034, Election Code, is amended by
5-14     adding Subsection (f) to read as follows:
5-15           (f)  This section applies to a political contribution covered
5-16     by Subchapter G, Chapter 253, except as provided by Section
5-17     253.206.
5-18           SECTION 3.  Subchapter C, Chapter 254, Election Code, is
5-19     amended by adding Section 254.0612 to read as follows:
5-20           Sec. 254.0612.  ADDITIONAL CONTENTS OF REPORTS BY CERTAIN
5-21     CANDIDATES.  In addition to the contents required by Sections
5-22     254.031 and 254.061, each report by a candidate for an office to
5-23     which Section 253.201 applies must include for each political
5-24     contribution of which the candidate receives notice under Section
5-25     253.205:
5-26                 (1)  the full name and address of the committee
5-27     receiving the contribution;
 6-1                 (2)  the full name and address of the committee's
 6-2     campaign treasurer;
 6-3                 (3)  the full name and address of the person making the
 6-4     contribution;
 6-5                 (4)  the date the contribution is received;
 6-6                 (5)  the amount of the contribution; and
 6-7                 (6)  an indication of whether the committee accepted or
 6-8     refused the contribution.
 6-9           SECTION 4.  Subchapter D, Chapter 254, Election Code, is
6-10     amended by adding Section 254.0912 to read as follows:
6-11           Sec. 254.0912.  ADDITIONAL CONTENTS OF REPORTS BY CERTAIN
6-12     OFFICEHOLDERS.  In addition to the contents required by Sections
6-13     254.031 and 254.091, each report by the holder of an office to
6-14     which Section 253.201 applies must include the contents prescribed
6-15     by Section 254.0612.
6-16           SECTION 5.  Subchapter E, Chapter 254, Election Code, is
6-17     amended by adding Section 254.1212 to read as follows:
6-18           Sec. 254.1212.  ADDITIONAL CONTENTS OF REPORTS OF CERTAIN
6-19     COMMITTEES.  In addition to the contents required by Sections
6-20     254.031 and 254.121, each report by a specific-purpose committee
6-21     for supporting or opposing a candidate for or assisting a holder of
6-22     an office to which Section 253.201 applies must include the
6-23     contents prescribed by Section 254.0612.
6-24           SECTION 6.  (a)  This Act takes effect September 1, 1999.
6-25           (b)  Subchapter G, Chapter 253, Election Code, as added by
6-26     this Act, applies only to a political contribution accepted or a
6-27     political expenditure made on or after September 1, 1999.  A
 7-1     political contribution accepted or a political expenditure made
 7-2     before September 1, 1999, is governed by the law in effect at the
 7-3     time the contribution was accepted or the expenditure was made and
 7-4     is not aggregated with political contributions accepted or
 7-5     political contributions made on or after that date.
 7-6           (c)  Sections 254.0612, 254.0912, and 254.1212, Election
 7-7     Code, as added by this Act, apply to the reporting of a political
 7-8     contribution accepted on or after September 1, 1999.  The reporting
 7-9     of a political contribution accepted before September 1, 1999, is
7-10     governed by the law in effect at the time the contribution was
7-11     accepted.
7-12           SECTION 7.  The importance of this legislation and the
7-13     crowded condition of the calendars in both houses create an
7-14     emergency and an imperative public necessity that the
7-15     constitutional rule requiring bills to be read on three several
7-16     days in each house be suspended, and this rule is hereby suspended.