76R13253 ESH-D                           
         By Greenberg, Gallego, Madden, Uher,                  H.B. No. 2611
            Danburg
         Substitute the following for H.B. No. 2611:
         By Danburg                                        C.S.H.B. No. 2611
                                A BILL TO BE ENTITLED
 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 solicit or acknowledge political
 2-4     contributions or to keep records of political contributions,
 2-5     political expenditures, or persons making political contributions
 2-6     to the candidate, officeholder, or committee.  An affidavit under
 2-7     this subsection must be filed with each report filed under
 2-8     Subsection (a).  The affidavit must include a statement that the
 2-9     candidate, officeholder, or political committee understands that if
2-10     the candidate, officeholder, or committee, a consultant of the
2-11     candidate, officeholder, or committee, or a person with whom the
2-12     candidate, officeholder, or committee contracts uses computer
2-13     equipment for a purpose described by this subsection, the
2-14     candidate, officeholder, or committee is required to file reports
2-15     under Subsection (b).
2-16           (d)  A candidate, officeholder, or political committee that
2-17     is required to file reports with the commission, other than a
2-18     candidate for or holder of a statewide office or a specific-purpose
2-19     committee for supporting or opposing such a candidate or assisting
2-20     such an officeholder, may file reports that comply with Subsection
2-21     (a) if the candidate or committee does not accept political
2-22     contributions that in the aggregate exceed $20,000 or make
2-23     political expenditures that in the aggregate exceed $20,000 in a
2-24     calendar year.  A candidate, officeholder, or political committee
2-25     that exceeds $20,000 in political contributions or political
2-26     expenditures in a calendar year shall file reports as required by
2-27     Subsection (b) for:
 3-1                 (1)  any reporting period during the calendar year in
 3-2     which the limit prescribed by this subsection is exceeded, other
 3-3     than a reporting period that has ended on the date the limit is
 3-4     exceeded; and
 3-5                 (2)  each reporting period during a calendar year
 3-6     subsequent to the calendar year in which the limit is exceeded.
 3-7           (e)  A candidate for an office described by Section
 3-8     252.005(5) or a specific-purpose committee for supporting or
 3-9     opposing only candidates for an office described by Section
3-10     252.005(5) or a measure described by Section 252.007(5) may file
3-11     reports that comply with Subsection (a).
3-12           (f)  An individual required to file a report with the
3-13     commission in connection with a direct campaign expenditure to
3-14     which Section 253.062 applies may file a report that complies with
3-15     Subsection (a).
3-16           (g)  A person required to file a report with the commission
3-17     in  connection with the office of district judge, district
3-18     attorney, or judge of a multicounty statutory county court may file
3-19     reports that comply with Subsection (a).
3-20           (h)  Each report filed under this chapter must be accompanied
3-21     by an affidavit executed by the person required to file the report.
3-22     The affidavit must contain the statement:  "I swear, or affirm,
3-23     under penalty of perjury, that the accompanying report is true and
3-24     correct and includes all information required to be reported by me
3-25     under Title 15, Election Code."  A report filed under this chapter
3-26     is considered to be under oath by the person required to file the
3-27     report, and the person is subject to prosecution under Chapter 37,
 4-1     Penal Code, regardless of the absence of or a defect in the
 4-2     affidavit.
 4-3           (i) [(c)]  As part of the notification required by Section
 4-4     251.033, the commission shall mail the appropriate forms to each
 4-5     person required to file a report with the commission during that
 4-6     reporting period.
 4-7           (j) [(d)]  The commission shall prescribe forms for purposes
 4-8     of legislative caucus reports under Section 254.0311 that are
 4-9     separate and distinct from forms for other reports under this
4-10     chapter.
4-11           (k) [(e)  A report filed under this chapter is considered to
4-12     be under oath by the person required to file the report regardless
4-13     of the absence of or defect in the affidavit of verification,
4-14     including a signature.]
4-15           [(f)  A person required to file a report under this chapter
4-16     is subject to prosecution under Chapter 37, Penal  Code, regardless
4-17     of the absence of or defect in the affidavit of verification.]
4-18           [(g)]  This section applies to a report that is filed
4-19     electronically or otherwise.
4-20           SECTION 2.  Subchapter B, Chapter 254, Election Code, is
4-21     amended by adding Sections 254.0361 and 254.0362 to read as
4-22     follows:
4-23           Sec. 254.0361.  REQUIREMENTS FOR ELECTRONIC FILING SOFTWARE.
4-24     (a)  Computer software provided or approved by the commission for
4-25     use under Section 254.036(b) must:
4-26                 (1)  use a standardized format for the entry of names,
4-27     addresses, and zip codes;
 5-1                 (2)  provide for secure and encoded transmission of
 5-2     data from the computer of a person filing a report to the computers
 5-3     used by the commission;
 5-4                 (3)  be capable of being used by a person with basic
 5-5     computing skills who uses a computer that uses a Windows operating
 5-6     system, Macintosh operating system, or another operating system
 5-7     that the commission determines is as popular as those systems for
 5-8     use with personal computers; and
 5-9                 (4)  permit a person using a computer to prepare a
5-10     report or to retrieve information from a report to import
5-11     information to the report from a variety of computer software
5-12     applications or export information from the report to a variety of
5-13     computer software applications without the need to reenter
5-14     information.
5-15           (b)  Before determining the specifications for computer
5-16     software developed, purchased, or licensed for use under Section
5-17     254.036, the commission shall conduct at least one public hearing
5-18     to discuss the specifications.  For at least 10 days following the
5-19     hearing, the commission shall accept public comments concerning the
5-20     software specifications.
5-21           Sec. 254.0362.  USE OF PUBLICLY ACCESSIBLE COMPUTER TERMINAL
5-22     FOR PREPARATION OF REPORTS.  (a)  Except as provided by Subsection
5-23     (d), a person who is required to file reports under this chapter
5-24     may use a publicly accessible computer terminal to prepare the
5-25     reports.
5-26           (b)  A public entity may prescribe reasonable restrictions on
5-27     the use of a publicly accessible computer terminal for preparation
 6-1     of reports under this chapter, except that a public entity may not
 6-2     prohibit a person from using a computer terminal for preparation of
 6-3     reports during the public entity's regular business hours if the
 6-4     person requests to use the computer terminal less than 48 hours
 6-5     before a reporting deadline to which the person is subject.
 6-6           (c)  This section does not require a public entity to provide
 6-7     a person with consumable materials, including paper and computer
 6-8     diskettes, in conjunction with the use of a publicly accessible
 6-9     computer terminal.
6-10           (d)  An officeholder may not use a computer issued to the
6-11     officeholder for official use to prepare a report under this title.
6-12           (e)  In this section:
6-13                 (1)  "Public entity" means a state agency, city,
6-14     county, or independent school district.
6-15                 (2)  "Publicly accessible computer terminal" means a
6-16     computer terminal owned by a state agency, an independent school
6-17     district, or a public library operated by a city or county.
6-18           SECTION 3.  Subchapter B, Chapter 254, Election Code, is
6-19     amended by adding Sections 254.0401 and 254.0402 to read as
6-20     follows:
6-21           Sec. 254.0401.  AVAILABILITY OF ELECTRONIC REPORTS ON
6-22     INTERNET.  (a)  The commission shall make each report filed with
6-23     the commission under Section 254.036(b) available to the public on
6-24     the Internet not later than the second business day after the date
6-25     the report is filed.
6-26           (b)  The access allowed by this section to reports is in
6-27     addition to the public's access to the information through other
 7-1     electronic or print distribution of the information.
 7-2           (c)  Before making a report filed under this chapter
 7-3     available on the Internet, the commission shall remove each
 7-4     portion, other than city, state, and zip code, of the address of a
 7-5     person listed as having made a political contribution to the person
 7-6     filing the report.  The address information removed must remain
 7-7     available on the report maintained in the commission's office but
 7-8     may not be available electronically at that office.
 7-9           Sec. 254.0402.  PUBLIC INSPECTION OF REPORTS.  (a)
7-10     Notwithstanding Section 552.222(a), Government Code, the authority
7-11     with whom a report is filed under this chapter may not require a
7-12     person examining the report to provide any information or
7-13     identification.
7-14           (b)  The commission shall make information from reports filed
7-15     with the commission under this chapter available by electronic
7-16     means, including:
7-17                 (1)  providing access to computer terminals at the
7-18     commission's office;
7-19                 (2)  providing information on computer diskette for
7-20     purchase at a reasonable cost; and
7-21                 (3)  providing modem or other electronic access to the
7-22     information.
7-23           SECTION 4.  This Act takes effect September 1, 1999.
7-24           SECTION 5.  (a)  Section 254.036, Election Code, as amended
7-25     by this Act, applies only to a report required to be filed under
7-26     Chapter 254, Election Code, on or after January 1, 2000.  A report
7-27     required to be filed under Chapter 254, Election Code, before
 8-1     January 1, 2000, may be filed in compliance with Section 254.036,
 8-2     Election Code, as that section existed before amendment by this
 8-3     Act, and the former law is continued in effect for that purpose.
 8-4           (b)  Notwithstanding Section 254.036, Election Code, as
 8-5     amended by this Act, a person required to file a report under
 8-6     Chapter 254, Election Code, that complies with Section 254.036(b),
 8-7     Election Code, as amended by this Act, and that is required to be
 8-8     filed on or after January 1, 2000, and before July 1, 2000, may
 8-9     file a report that complies with Section 254.036(a), Election Code,
8-10     as amended by this Act, unless, not later than January 1, 2000:
8-11                 (1)  the Texas Ethics Commission has developed,
8-12     purchased, or obtained a license to use computer software that
8-13     complies with Section 254.0361, Election Code, as added by this
8-14     Act, and that permits a person to electronically file a report
8-15     under Chapter 254, Election Code, as required by Section 254.036,
8-16     Election Code, as amended by this Act, by using a publicly
8-17     accessible computer terminal, as defined by Section 254.0362,
8-18     Election Code, as added by this Act; and
8-19                 (2)  the commission has determined that the computer
8-20     software has been sufficiently tested and demonstrated to be
8-21     reliable when used with a publicly accessible computer terminal.
8-22           (c)  Notwithstanding Section 254.036, Election Code, as
8-23     amended by this Act, a person required to file a report under
8-24     Chapter 254, Election Code, that complies with Section 254.036(b),
8-25     Election Code, as amended by this Act, and that is required to be
8-26     filed on or after July 1, 2000, and before January 1, 2001,  may
8-27     file reports that comply with Section 254.036(a), Election Code, as
 9-1     amended by this Act, unless, not later than July 1, 2000:
 9-2                 (1)  the Texas Ethics Commission has developed,
 9-3     purchased, or obtained a license to use computer software that
 9-4     complies with Section 254.0361, Election Code, as added by this
 9-5     Act, and that permits a person to electronically file a report
 9-6     under Chapter 254, Election Code, as required by Section 254.036,
 9-7     Election Code, as amended by this Act, by using a publicly
 9-8     accessible computer terminal, as defined by Section 254.0362,
 9-9     Election Code, as added by this Act; and
9-10                 (2)  the commission has determined that the computer
9-11     software has been sufficiently tested and demonstrated to be
9-12     reliable when used with a publicly accessible computer terminal.
9-13           (d)  If, under Subsection (b) or (c) of this section, a
9-14     person is not required to file a report that complies with Section
9-15     254.036(b), Election Code, as amended by this Act, the person shall
9-16     either file a report that complies with Section 254.036(a),
9-17     Election Code, or Section 254.036(b), Election Code, as amended by
9-18     this Act.
9-19           SECTION 6.  The importance of this legislation and the
9-20     crowded condition of the calendars in both houses create an
9-21     emergency and an imperative public necessity that the
9-22     constitutional rule requiring bills to be read on three several
9-23     days in each house be suspended, and this rule is hereby suspended.