1-1                                   AN ACT
 1-2     relating to electronic reporting of certain political contributions
 1-3     and political expenditures.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 254.036, Election Code, is amended to
 1-6     read as follows:
 1-7           Sec. 254.036.  FORM OF REPORT; AFFIDAVIT; MAILING OF FORMS.
 1-8     (a)  Each report filed under this chapter with an authority other
 1-9     than the commission must be on a form prescribed by the commission
1-10     and must be written in black ink or typed with black typewriter
1-11     ribbon unless the report is a computer printout.  If the report is
1-12     a computer printout, the printout must conform to the same format
1-13     and paper size as the form prescribed by the commission.
1-14           (b)  Except as provided by Subsection (c), (d), (e), (f), or
1-15     (g), each report filed under this chapter with the commission must
1-16     be filed by computer diskette, modem, or other means of electronic
1-17     transfer, using computer software provided by the commission or
1-18     computer software that meets commission specifications for a
1-19     standard file format.
1-20           (c)  A candidate, officeholder, or political committee that
1-21     is required to file reports with the commission may file reports
1-22     that comply with Subsection (a) if the candidate, officeholder, or
1-23     campaign treasurer of the committee files with the commission an
1-24     affidavit stating that the candidate, officeholder, or committee,
 2-1     an agent of the candidate, officeholder, or committee, or a person
 2-2     with whom the candidate, officeholder, or committee contracts does
 2-3     not use computer equipment to keep the current records of political
 2-4     contributions, political expenditures, or persons making political
 2-5     contributions to the candidate, officeholder, or committee.  An
 2-6     affidavit under this subsection must be filed with each report
 2-7     filed under Subsection (a).  The affidavit must include a statement
 2-8     that the candidate, officeholder, or political committee
 2-9     understands that if the candidate, officeholder, or committee, a
2-10     consultant of the candidate, officeholder, or committee, or a
2-11     person with whom the candidate, officeholder, or committee
2-12     contracts uses computer equipment for a purpose described by this
2-13     subsection, the candidate, officeholder, or committee is required
2-14     to file reports under Subsection (b).
2-15           (d)  A candidate, officeholder, or political committee that
2-16     is required to file reports with the commission, other than a
2-17     candidate for or holder of a statewide office or a specific-purpose
2-18     committee for supporting or opposing such a candidate or assisting
2-19     such an officeholder, may file reports that comply with Subsection
2-20     (a) if the candidate or committee does not accept political
2-21     contributions that in the aggregate exceed $20,000 or make
2-22     political expenditures that in the aggregate exceed $20,000 in a
2-23     calendar year.  A candidate, officeholder, or political committee
2-24     that exceeds $20,000 in political contributions or political
2-25     expenditures in a calendar year shall file reports as required by
2-26     Subsection (b) for:
2-27                 (1)  any reporting period during the calendar year in
 3-1     which the limit prescribed by this subsection is exceeded, other
 3-2     than a reporting period that has ended on the date the limit is
 3-3     exceeded; and
 3-4                 (2)  each reporting period during a calendar year
 3-5     subsequent to the calendar year in which the limit is exceeded.
 3-6           (e)  A candidate for an office described by Section
 3-7     252.005(5) or a specific-purpose committee for supporting or
 3-8     opposing only candidates for an office described by Section
 3-9     252.005(5) or a measure described by Section 252.007(5) may file
3-10     reports that comply with Subsection (a).
3-11           (f)  An individual required to file a report with the
3-12     commission in connection with a direct campaign expenditure to
3-13     which Section 253.062 applies may file a report that complies with
3-14     Subsection (a).
3-15           (g)  A person required to file a report with the commission
3-16     in  connection with the office of district judge, district
3-17     attorney, or judge of a multicounty statutory county court may file
3-18     reports that comply with Subsection (a).
3-19           (h)  Each report filed under this chapter that is not filed
3-20     by electronic transfer must be accompanied by an affidavit executed
3-21     by the person required to file the report.  The affidavit must
3-22     contain the statement:  "I swear, or affirm, under penalty of
3-23     perjury, that the accompanying report is true and correct and
3-24     includes all information required to be reported by me under Title
3-25     15, Election Code."  Each report filed under this chapter by
3-26     electronic transfer must be under oath by the person required to
3-27     file the report and must contain, in compliance with commission
 4-1     specifications, the digitized signature of the person required to
 4-2     file the report.  A report filed under this chapter is considered
 4-3     to be under oath by the person required to file the report, and the
 4-4     person is subject to prosecution under Chapter 37, Penal Code,
 4-5     regardless of the absence of or a defect in the affidavit.
 4-6           (i)  Each person required to file reports with the commission
 4-7     that comply with Subsection (b) shall file with the commission a
 4-8     written statement providing the manner of electronic transfer that
 4-9     the person will use to file the report.  A statement under this
4-10     subsection must be filed not later than the 30th day before the
4-11     filing deadline for the first report a person is required to file
4-12     under Subsection (b).  A person who intends to change the manner of
4-13     filing described by the person's most recent statement shall notify
4-14     the commission of the change not later than the 30th day before the
4-15     filing deadline for the report to which the change applies.  If a
4-16     person does not file a statement under this subsection, the
4-17     commission may accept as authentic a report filed in any manner
4-18     that complies with Subsection (b).  If the commission receives a
4-19     report that is not filed in the manner described by the person's
4-20     most recent statement under this subsection, the commission shall
4-21     promptly notify the person in writing that the commission has
4-22     received a report filed in a different manner than expected.
4-23           (j) [(c)]  As part of the notification required by Section
4-24     251.033, the commission shall mail the appropriate forms to each
4-25     person required to file a report with the commission during that
4-26     reporting period.
4-27           (k) [(d)]  The commission shall prescribe forms for purposes
 5-1     of legislative caucus reports under Section 254.0311 that are
 5-2     separate and distinct from forms for other reports under this
 5-3     chapter.
 5-4           (l) [(e)  A report filed under this chapter is considered to
 5-5     be under oath by the person required to file the report regardless
 5-6     of the absence of or defect in the affidavit of verification,
 5-7     including a signature.]
 5-8           [(f)  A person required to file a report under this chapter
 5-9     is subject to prosecution under Chapter 37, Penal  Code, regardless
5-10     of the absence of or defect in the affidavit of verification.]
5-11           [(g)]  This section applies to a report that is filed
5-12     electronically or otherwise.
5-13           SECTION 2.  Subchapter B, Chapter 254, Election Code, is
5-14     amended by adding Sections 254.0361 and 254.0362 to read as
5-15     follows:
5-16           Sec. 254.0361.  REQUIREMENTS FOR ELECTRONIC FILING SOFTWARE.
5-17     (a)  Computer software provided or approved by the commission for
5-18     use under Section 254.036(b) must:
5-19                 (1)  use a standardized format for the entry of names,
5-20     addresses, and zip codes;
5-21                 (2)  provide for secure and encoded transmission of
5-22     data from the computer of a person filing a report to the computers
5-23     used by the commission;
5-24                 (3)  be capable of being used by a person with basic
5-25     computing skills who uses a computer that uses a Windows operating
5-26     system, Macintosh operating system, or another operating system
5-27     that the commission determines is as popular as those systems for
 6-1     use with personal computers; and
 6-2                 (4)  permit a person using a computer to prepare a
 6-3     report or to retrieve information from a report to import
 6-4     information to the report from a variety of computer software
 6-5     applications that meet commission specifications for a standard
 6-6     file format or export information from the report to a variety of
 6-7     computer software applications that meet commission specifications
 6-8     for a standard file format without the need to reenter information.
 6-9           (b)  Before determining the specifications for computer
6-10     software developed, purchased, or licensed for use under Section
6-11     254.036, the commission shall conduct at least one public hearing
6-12     to discuss the specifications.  For at least 10 days following the
6-13     hearing, the commission shall accept public comments concerning the
6-14     software specifications.
6-15           Sec. 254.0362.  USE OF PUBLICLY ACCESSIBLE COMPUTER TERMINAL
6-16     FOR PREPARATION OF REPORTS.  (a)  Except as provided by Subsection
6-17     (d), a person who is required to file reports under this chapter
6-18     may use a publicly accessible computer terminal that has Internet
6-19     access and web browser software to prepare the reports.
6-20           (b)  A public entity may prescribe reasonable restrictions on
6-21     the use of a publicly accessible computer terminal for preparation
6-22     of reports under this chapter, except that a public entity may not
6-23     prohibit a person from using a computer terminal for preparation of
6-24     reports during the public entity's regular business hours if the
6-25     person requests to use the computer terminal less than 48 hours
6-26     before a reporting deadline to which the person is subject.
6-27           (c)  This section does not require a public entity to provide
 7-1     a person with consumable materials, including paper and computer
 7-2     diskettes, in conjunction with the use of a publicly accessible
 7-3     computer terminal.
 7-4           (d)  An officeholder may not use a computer issued to the
 7-5     officeholder for official use to prepare a report under this title.
 7-6           (e)  In this section:
 7-7                 (1)  "Public entity" means a state agency, city,
 7-8     county, or independent school district.
 7-9                 (2)  "Publicly accessible computer terminal" means a
7-10     computer terminal that is normally available for use by members of
7-11     the public and that is owned by a state agency, an independent
7-12     school district, or a public library operated by a city or county.
7-13           SECTION 3.  Subchapter B, Chapter 254, Election Code, is
7-14     amended by adding Sections 254.0401 and 254.0402 to read as
7-15     follows:
7-16           Sec. 254.0401.  AVAILABILITY OF ELECTRONIC REPORTS ON
7-17     INTERNET.  (a)  Except as provided by Subsection (b), the
7-18     commission shall make each report filed with the commission under
7-19     Section 254.036(b) available to the public on the Internet not
7-20     later than the second business day after the date the report is
7-21     filed.
7-22           (b)  Except as otherwise provided by this subsection, the
7-23     commission may not make a report filed with the commission under
7-24     Section 254.036(b) for a reporting deadline by any candidate for a
7-25     particular office or by a specific-purpose committee for supporting
7-26     or opposing only one candidate for a particular office available to
7-27     the public on the Internet until each candidate for that office and
 8-1     each specific-purpose committee for supporting or opposing only one
 8-2     candidate for that office, other than a candidate or committee to
 8-3     which Section 254.036(c) or (d) applies, has filed a report for
 8-4     that reporting deadline.  Regardless of whether each candidate for
 8-5     a particular office and each specific-purpose committee for
 8-6     supporting or opposing only one candidate for that office has filed
 8-7     a report for a filing deadline, the commission shall make each
 8-8     report in connection with that office available on the Internet and
 8-9     by any other electronic means on:
8-10                 (1)  the 21st day after the date of the filing
8-11     deadline, for a report other than a report required to be filed
8-12     under Section 254.064(c); or
8-13                 (2)  the fourth day after the date of the filing
8-14     deadline, for a report required to be filed under Section
8-15     254.064(c).
8-16           (c)  Subsection (b) does not apply to a report filed under
8-17     Section 254.038.
8-18           (d)  The access allowed by this section to reports is in
8-19     addition to the public's access to the information through other
8-20     electronic or print distribution of the information.
8-21           (e)  Before making a report filed under Section 254.036(b)
8-22     available on the Internet, the commission shall remove each
8-23     portion, other than city, state, and zip code, of the address of a
8-24     person listed as having made a political contribution to the person
8-25     filing the report.  The address information removed must remain
8-26     available on the report maintained in the commission's office but
8-27     may not be available electronically at that office.
 9-1           Sec. 254.0402.  PUBLIC INSPECTION OF REPORTS.  (a)
 9-2     Notwithstanding Section 552.222(a), Government Code, the authority
 9-3     with whom a report is filed under this chapter may not require a
 9-4     person examining the report to provide any information or
 9-5     identification.
 9-6           (b)  The commission shall make information from reports filed
 9-7     with the commission under Section 254.036(b) available by
 9-8     electronic means, including:
 9-9                 (1)  providing access to computer terminals at the
9-10     commission's office;
9-11                 (2)  providing information on computer diskette for
9-12     purchase at a reasonable cost; and
9-13                 (3)  providing modem or other electronic access to the
9-14     information.
9-15           SECTION 4.  Section 254.041(a), Election Code, is amended to
9-16     read as follows:
9-17           (a)  A person who is required by this chapter to file a
9-18     report commits an offense if the person knowingly fails:
9-19                 (1)  to file the report on time; [or]
9-20                 (2)  to file a report by computer diskette, modem, or
9-21     other means of electronic transfer, if the person is required to
9-22     file reports that comply with Section 254.036(b); or
9-23                 (3)  to include in the report information that is
9-24     required by this title to be included.
9-25           SECTION 5.  This Act takes effect September 1, 1999.
9-26           SECTION 6.  (a)  Section 254.036, Election Code, as amended
9-27     by this Act, applies only to a report required to be filed under
 10-1    Chapter 254, Election Code, on or after January 1, 2000.  A report
 10-2    required to be filed under Chapter 254, Election Code, before
 10-3    January 1, 2000, may be filed in compliance with Section 254.036,
 10-4    Election Code, as that section existed before amendment by this
 10-5    Act, and the former law is continued in effect for that purpose.
 10-6          (b)  Notwithstanding Section 254.036, Election Code, as
 10-7    amended by this Act, a person required to file a report under
 10-8    Chapter 254, Election Code, that complies with Section 254.036(b),
 10-9    Election Code, as amended by this Act, and that is required to be
10-10    filed on or after January 1, 2000, and before July 1, 2000, may
10-11    file a report that complies with Section 254.036(a), Election Code,
10-12    as amended by this Act, unless, not later than January 1, 2000:
10-13                (1)  the Texas Ethics Commission has developed,
10-14    purchased, or obtained a license to use computer software that
10-15    complies with Section 254.0361, Election Code, as added by this
10-16    Act, and that permits a person to electronically file a report
10-17    under Chapter 254, Election Code, as required by Section 254.036,
10-18    Election Code, as amended by this Act, by using a publicly
10-19    accessible computer terminal, as defined by Section 254.0362,
10-20    Election Code, as added by this Act; and
10-21                (2)  the commission has determined that the computer
10-22    software has been sufficiently tested and demonstrated to be
10-23    reliable when used with a publicly accessible computer terminal.
10-24          (c)  Notwithstanding Section 254.036, Election Code, as
10-25    amended by this Act, a person required to file a report under
10-26    Chapter 254, Election Code, that complies with Section 254.036(b),
10-27    Election Code, as amended by this Act, and that is required to be
 11-1    filed on or after July 1, 2000, and before January 1, 2001,  may
 11-2    file reports that comply with Section 254.036(a), Election Code, as
 11-3    amended by this Act, unless, not later than July 1, 2000:
 11-4                (1)  the Texas Ethics Commission has developed,
 11-5    purchased, or obtained a license to use computer software that
 11-6    complies with Section 254.0361, Election Code, as added by this
 11-7    Act, and that permits a person to electronically file a report
 11-8    under Chapter 254, Election Code, as required by Section 254.036,
 11-9    Election Code, as amended by this Act, by using a publicly
11-10    accessible computer terminal, as defined by Section 254.0362,
11-11    Election Code, as added by this Act; and
11-12                (2)  the commission has determined that the computer
11-13    software has been sufficiently tested and demonstrated to be
11-14    reliable when used with a publicly accessible computer terminal.
11-15          (d)  If, under Subsection (b) or (c) of this section, a
11-16    person is not required to file a report that complies with Section
11-17    254.036(b), Election Code, as amended by this Act, the person shall
11-18    either file a report that complies with Section 254.036(a),
11-19    Election Code, or Section 254.036(b), Election Code, as amended by
11-20    this Act.
11-21          SECTION 7.  The importance of this legislation and the
11-22    crowded condition of the calendars in both houses create an
11-23    emergency and an imperative public necessity that the
11-24    constitutional rule requiring bills to be read on three several
11-25    days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2611 was passed by the House on May
         4, 1999, by a non-record vote; that the House refused to concur in
         Senate amendments to H.B. No. 2611 on May 26, 1999, and requested
         the appointment of a conference committee to consider the
         differences between the two houses; and that the House adopted the
         conference committee report on H.B. No. 2611 on May 29, 1999, by a
         non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2611 was passed by the Senate, with
         amendments, on May 21, 1999, by a viva-voce vote; at the request of
         the House, the Senate appointed a conference committee to consider
         the differences between the two houses; and that the Senate adopted
         the conference committee report on H.B. No. 2611 on May 30, 1999,
         by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor