By Naishtat                                           H.B. No. 1835
         76R1363 ESH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to restrictions on payment of certain loans with political
 1-3     contributions.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 253.042(b), Election Code, is amended to
 1-6     read as follows:
 1-7           (b)  A candidate or officeholder who accepts one or more
 1-8     political contributions in the form of loans, including an
 1-9     extension of credit or a guarantee of a loan or extension of
1-10     credit, from one or more persons related to the candidate or
1-11     officeholder within the second degree by affinity or consanguinity
1-12     may not use political contributions to repay the loans in amounts
1-13     that in the aggregate exceed the amount prescribed by Subsection
1-14     (a).  A candidate or officeholder may not use political
1-15     contributions, in amounts that in the aggregate exceed the amount
1-16     prescribed by Subsection (a), to repay any other loan or extension
1-17     of credit for which the candidate or officeholder is personally
1-18     liable.
1-19           SECTION 2.  Section 253.162, Election Code, is amended to
1-20     read as follows:
1-21           Sec. 253.162.  RESTRICTIONS ON REIMBURSEMENT OF PERSONAL
1-22     FUNDS AND PAYMENTS ON CERTAIN LOANS.  (a)  A judicial candidate  or
1-23     officeholder who makes political expenditures from the person's
1-24     personal funds may not reimburse the personal funds from political
 2-1     contributions in amounts that in the aggregate exceed, for each
 2-2     election in which the person's name appears on the ballot:
 2-3                 (1)  for a statewide judicial office, $100,000; or
 2-4                 (2)  for an office other than a statewide judicial
 2-5     office, five times the applicable contribution limit under Section
 2-6     253.155.
 2-7           (b)  A judicial candidate or officeholder may not:
 2-8                 (1)  use political contributions to repay a loan [who
 2-9     accepts one or more political contributions in the form of loans],
2-10     including an extension of credit or a guarantee of a loan or
2-11     extension of credit, from one or more persons related to the
2-12     candidate or officeholder within the second degree by
2-13     consanguinity, as determined under Subchapter B, Chapter 573,
2-14     Government Code; or
2-15                 (2)  use political contributions, in amounts that in
2-16     the aggregate exceed the amount prescribed by Subsection (a), to
2-17     repay any other loan or extension of credit for which the candidate
2-18     or officeholder is personally liable[, may not use political
2-19     contributions to repay the loans].
2-20           (c)  The total amount of both reimbursements under Subsection
2-21     (a) and repayments under Subsection (b)(2) made by a candidate or
2-22     officeholder may not exceed the amount prescribed by Subsection
2-23     (a).
2-24           (d)  A person who is both a candidate and an officeholder may
2-25     reimburse the person's personal funds or repay loans from political
2-26     contributions only in one capacity.
2-27           (e) [(d)]  A person who violates this section is liable for a
 3-1     civil penalty not to exceed three times the amount by which the
 3-2     reimbursement made in violation of this section exceeds the
 3-3     applicable limit prescribed by Subsection (a).
 3-4           SECTION 3.  (a)  This Act takes effect September 1, 1999.
 3-5           (b)  Sections 253.042(b) and 253.162, Election Code, as
 3-6     amended by this Act, apply only to repayment of a loan or extension
 3-7     of credit made on or after September 1, 1999.  The repayment of a
 3-8     loan or extension of credit made before September 1, 1999, is
 3-9     governed by the law in effect on the date the loan or extension of
3-10     credit is made, and the former law is continued in effect for that
3-11     purpose.
3-12           SECTION 4.  The importance of this legislation and the
3-13     crowded condition of the calendars in both houses create an
3-14     emergency and an imperative public necessity that the
3-15     constitutional rule requiring bills to be read on three several
3-16     days in each house be suspended, and this rule is hereby suspended.