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.