1-1 By: Moncrief S.B. No. 418
1-2 (In the Senate - Filed February 5, 1999; February 8, 1999,
1-3 read first time and referred to Committee on State Affairs;
1-4 April 20, 1999, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 7, Nays 1; April 20, 1999,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 418 By: Shapleigh
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to procedures for and access to reports of political
1-11 contributions and expenditures; providing a civil penalty.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Subchapter B, Chapter 251, Election Code, is
1-14 amended by adding Section 251.031 to read as follows:
1-15 Sec. 251.031. INDEX OF REPORTS; PUBLICATIONS. (a) The
1-16 commission shall:
1-17 (1) maintain separate indexes of reports filed with
1-18 the commission by candidates, officeholders, and political
1-19 committees under this title, publish the indexes regularly, and
1-20 make the indexes available for purchase; and
1-21 (2) produce and distribute a general index explaining
1-22 the types and location of records under this title that are
1-23 available for public use.
1-24 (b) The commission shall make information from the indexes
1-25 available by electronic means as provided for reports under Section
1-26 254.0401.
1-27 (c) The commission shall periodically publish a list of
1-28 candidates, officeholders, and political committees required to
1-29 file reports with the commission under this title that have failed
1-30 to do so.
1-31 (d) The commission shall annually publish a report
1-32 summarizing information contained in reports filed with the
1-33 commission under this title.
1-34 SECTION 2. Subchapter B, Chapter 254, Election Code, is
1-35 amended by adding Section 254.0312 to read as follows:
1-36 Sec. 254.0312. USE OF FICTITIOUS CONTRIBUTORS.
1-37 (a) Notwithstanding any other provision of this chapter and as
1-38 provided by this section, a candidate, officeholder, or political
1-39 committee may report political contributions as received from
1-40 fictitious contributors to permit the person to determine whether
1-41 information regarding the person's contributors is being used in
1-42 violation of Section 254.0402.
1-43 (b) A candidate, officeholder, or political committee may,
1-44 on each report filed, list not more than 10 fictitious names that
1-45 do not represent the names of actual contributors to the person.
1-46 (c) A candidate, officeholder, or political committee that
1-47 uses fictitious names shall subtract the total dollar amount of the
1-48 fictitious political contributions from the total amount of
1-49 contributions listed under Section 254.031(a)(5).
1-50 (d) A candidate, officeholder, or specific-purpose committee
1-51 may not attribute more than $1,000 in political contributions to
1-52 the same fictitious contributor in any calendar year. A
1-53 general-purpose committee may not attribute more than $5,000 in
1-54 political contributions to the same fictitious contributor in any
1-55 calendar year.
1-56 (e) A candidate, officeholder, or political committee that
1-57 uses fictitious contributors shall send a list of the fictitious
1-58 contributors under separate cover directly to the authority with
1-59 whom the person's campaign treasurer appointment is required to be
1-60 filed, on or before the date any report containing those fictitious
1-61 contributors is filed. The authority shall maintain the list but
1-62 shall exclude it from the public record. A list submitted under
1-63 this section is excepted from the requirements of Section 552.021,
1-64 Government Code.
2-1 (f) A candidate, officeholder, or political committee may
2-2 not use fictitious contributors to circumvent a reporting
2-3 requirement or a limitation or prohibition prescribed by this
2-4 title.
2-5 SECTION 3. Section 254.036, Election Code, is amended to
2-6 read as follows:
2-7 Sec. 254.036. FORM OF REPORT; AFFIDAVIT; MAILING OF FORMS.
2-8 (a) Each report filed under this chapter with an authority other
2-9 than the commission must be on a form prescribed by the commission
2-10 and must be written in black ink or typed with black typewriter
2-11 ribbon unless the report is a computer printout. If the report is
2-12 a computer printout, the printout must conform to the same format
2-13 and paper size as the form prescribed by the commission.
2-14 (b) Except as provided by Subsection (c), (d), (e), or (f),
2-15 each report filed with the commission under this chapter must be
2-16 filed by direct electronic transfer through the Internet to the
2-17 commission, using computer software provided by the commission.
2-18 (c) A candidate, officeholder, or political committee that
2-19 is required to file reports with the commission under this chapter
2-20 may file reports that comply with Subsection (a) if the candidate,
2-21 officeholder, or committee does not intend to accept political
2-22 contributions that in the aggregate exceed $15,000 or to make
2-23 political expenditures that in the aggregate exceed $15,000 in a
2-24 calendar year. The amount of a filing fee paid by a candidate is
2-25 excluded from the $15,000 maximum expenditure permitted under this
2-26 subsection. A candidate, officeholder, or political committee that
2-27 exceeds $15,000 in political contributions or political
2-28 expenditures in a calendar year shall file reports as required by
2-29 Subsection (b). To be entitled to file reports under this
2-30 subsection, a candidate or political committee must file with the
2-31 campaign treasurer appointment a written declaration of intent not
2-32 to exceed $15,000 in political contributions or political
2-33 expenditures in a calendar year. To be entitled to file reports
2-34 under this subsection, an officeholder must file with the
2-35 commission a written declaration of intent not to exceed $15,000 in
2-36 political contributions or political expenditures in a calendar
2-37 year. The declaration of intent must be filed not later than
2-38 January 1 of the calendar year to which it is intended to apply or
2-39 the 30th day after the date the officeholder becomes subject to
2-40 this chapter, if the officeholder was not subject to this chapter
2-41 on January 1. A declaration of intent under this subsection must
2-42 contain a statement that the candidate, officeholder, or committee
2-43 understands that if the $15,000 maximum for political contributions
2-44 or political expenditures is exceeded, the candidate, officeholder,
2-45 or committee is required to file reports under Subsection (b).
2-46 (d) A candidate, officeholder, or political committee that
2-47 is required to file reports with the commission under this chapter
2-48 may file reports that comply with Subsection (a) if the candidate,
2-49 officeholder, or campaign treasurer of the committee files with the
2-50 commission an affidavit stating that the candidate, officeholder,
2-51 or committee or an agent of the candidate, officeholder, or
2-52 committee does not use computer equipment to keep records of
2-53 political contributions, political expenditures, or persons making
2-54 political contributions to the candidate, officeholder, or
2-55 committee or that the candidate, officeholder, or political
2-56 committee or an agent of the candidate, officeholder, or committee
2-57 uses computer equipment that does not have access to the Internet.
2-58 An affidavit under this subsection must be filed with each report
2-59 filed under Subsection (a). The affidavit must include a statement
2-60 that the candidate, officeholder, or political committee
2-61 understands that if the candidate, officeholder, or committee or an
2-62 agent of the candidate, officeholder, or committee uses computer
2-63 equipment for a purpose described by this subsection or obtains
2-64 Internet access, the candidate, officeholder, or committee is
2-65 required to file reports under Subsection (b).
2-66 (e) A candidate for an office described by Section
2-67 252.005(5) or a specific-purpose committee for supporting or
2-68 opposing only candidates for an office described by Section
2-69 252.005(5) or a measure described by Section 252.007(5) may file
3-1 reports that comply with Subsection (a).
3-2 (f) An individual required to file a report with the
3-3 commission in connection with a direct campaign expenditure to
3-4 which Section 253.062 applies may file a report that complies with
3-5 Subsection (a).
3-6 (g) Each report filed under this chapter that is not filed
3-7 by direct electronic transfer through the Internet must be
3-8 accompanied by an affidavit executed by the person required to file
3-9 the report. The affidavit must contain the statement: "I swear,
3-10 or affirm, under penalty of perjury, that the accompanying report
3-11 is true and correct and includes all information required to be
3-12 reported by me under Title 15, Election Code." Each report filed
3-13 under this chapter by direct electronic transfer must be under oath
3-14 by the person required to file the report and must contain, in
3-15 compliance with commission specifications, the digitized signature
3-16 of the person required to file the report. A report filed under
3-17 this chapter is considered to be under oath by the person required
3-18 to file the report, and the person is subject to prosecution under
3-19 Chapter 37, Penal Code, regardless of the absence of or a defect in
3-20 the affidavit.
3-21 (h) [(c)] As part of the notification required by Section
3-22 251.033, the commission shall mail the appropriate forms to each
3-23 person required to file a report with the commission during that
3-24 reporting period.
3-25 (i) [(d)] The commission shall prescribe forms for purposes
3-26 of legislative caucus reports under Section 254.0311 that are
3-27 separate and distinct from forms for other reports under this
3-28 chapter.
3-29 (j) [(e) A report filed under this chapter is considered to
3-30 be under oath by the person required to file the report regardless
3-31 of the absence of or defect in the affidavit of verification,
3-32 including a signature.]
3-33 [(f) A person required to file a report under this chapter
3-34 is subject to prosecution under Chapter 37, Penal Code, regardless
3-35 of the absence of or defect in the affidavit of verification.]
3-36 [(g)] This section applies to a report that is filed
3-37 electronically or otherwise.
3-38 (k) Notwithstanding Subsection (b), a candidate,
3-39 officeholder, or political committee that is required to file
3-40 reports with the commission under this chapter may file reports
3-41 that comply with Subsection (a) if the commission has not provided
3-42 computer software to enable the candidate, officeholder, or
3-43 committee to file reports under Subsection (b) before the 30th day
3-44 before the last day of the reporting period for which the report is
3-45 required. This subsection expires September 1, 2001.
3-46 SECTION 4. Subchapter B, Chapter 254, Election Code, is amended
3-47 by adding Sections 254.0401 and 254.0402 to read as follows:
3-48 Sec. 254.0401. PUBLIC INSPECTION OF REPORTS. (a) A report
3-49 filed under this chapter shall be made available for public
3-50 inspection at the office of the authority with whom the report is
3-51 filed not later than the second business day after the date the
3-52 report is received.
3-53 (b) Notwithstanding Section 552.222(a), Government Code, the
3-54 authority with whom a report is filed under this chapter may not
3-55 require a person examining the report to provide any information or
3-56 identification.
3-57 (c) The commission shall make information from reports filed
3-58 with the commission under this chapter available by electronic
3-59 means, including:
3-60 (1) providing access to computer terminals at the
3-61 commission's office;
3-62 (2) providing information on computer diskette for
3-63 purchase at a reasonable cost; and
3-64 (3) providing modem or other electronic access to the
3-65 information.
3-66 Sec. 254.0402. RESTRICTION ON USE, SALE, OR DISTRIBUTION OF
3-67 CONTRIBUTOR INFORMATION. (a) In this section, "contributor
3-68 information" means the name, address, and telephone number of a
3-69 person listed in a report filed under this chapter as having made a
4-1 political contribution.
4-2 (b) A person may not knowingly use, sell, or distribute
4-3 contributor information copied or otherwise obtained from a report
4-4 filed under this chapter for the purpose of soliciting for a
4-5 commercial purpose.
4-6 (c) A person may solicit political contributions from a
4-7 political committee whose contributor information the person
4-8 obtains from a report filed under this chapter.
4-9 (d) A person may use contributor information copied or
4-10 otherwise obtained from a report filed under this chapter in a
4-11 newspaper, magazine, book, or similar communication if the
4-12 principal purpose of the communication is not to communicate any
4-13 contributor information for the purpose of soliciting for a
4-14 commercial purpose.
4-15 (e) A person who violates this section is civilly liable to
4-16 the state for an amount not to exceed the greater of:
4-17 (1) $5,000; or
4-18 (2) the amount of any contribution received as a
4-19 result of the violation.
4-20 SECTION 5. Subsection (b), Section 254.040, Election Code,
4-21 is repealed.
4-22 SECTION 6. This Act takes effect July 1, 2000.
4-23 SECTION 7. Section 254.036, Election Code, as amended by
4-24 this Act, applies only to a report required to be filed under
4-25 Chapter 254, Election Code, on or after July 1, 2000. A report
4-26 required to be filed under Chapter 254, Election Code, before July
4-27 1, 2000, may be filed in compliance with Section 254.036, Election
4-28 Code, as that section existed before amendment by this Act, and the
4-29 former law is continued in effect for that purpose.
4-30 SECTION 8. The importance of this legislation and the
4-31 crowded condition of the calendars in both houses create an
4-32 emergency and an imperative public necessity that the
4-33 constitutional rule requiring bills to be read on three several
4-34 days in each house be suspended, and this rule is hereby suspended.
4-35 * * * * *