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.