By Ogden                                               S.B. No. 895
         76R7594 ESH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to reporting of political contributions and expenditures
 1-3     and to civil penalties for late reports.
 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), or (f),
1-15     each report filed with the commission under this chapter must be
1-16     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 or political committee that is required to
1-21     file reports with the commission under this chapter may file
1-22     reports that comply with Subsection (a) if the candidate or
1-23     committee does not intend to accept political contributions that in
1-24     the aggregate exceed $10,000 or to make political expenditures that
 2-1     in the aggregate exceed $10,000 in connection with the election.
 2-2     The amount of a filing fee paid by a candidate is excluded from the
 2-3     $10,000 maximum expenditure permitted under this subsection.  A
 2-4     candidate or political committee that exceeds $10,000 in political
 2-5     contributions or political expenditures in connection with the
 2-6     election shall file reports as required by Subsection (b).  To be
 2-7     entitled to file reports under this subsection, a candidate or
 2-8     political committee must file with the campaign treasurer
 2-9     appointment a written declaration of intent not to exceed $10,000
2-10     in political contributions or political expenditures in connection
2-11     with the election.  The declaration of intent must contain a
2-12     statement that the political committee understands that if the
2-13     $10,000 maximum for political contributions or political
2-14     expenditures is exceeded, the committee is required to file reports
2-15     under Subsection (b).
2-16           (d)  An officeholder or a specific-purpose committee for
2-17     assisting an officeholder that is required to file reports with the
2-18     commission under this chapter may file reports that comply with
2-19     Subsection (a) if the officeholder or committee does not intend to
2-20     accept political contributions that in the aggregate exceed $10,000
2-21     or to make political expenditures that in the aggregate exceed
2-22     $10,000 in a reporting period under Section 254.093 or 254.123.  An
2-23     officeholder or committee that exceeds $10,000 in political
2-24     contributions or political expenditures in a reporting period shall
2-25     file reports as required by Subsection (a).  To be entitled to file
2-26     reports under this subsection, an officeholder or the campaign
2-27     treasurer of a committee must file with the commission a written
 3-1     declaration of intent not to exceed $10,000 in political
 3-2     contributions or political expenditures in a reporting period.  The
 3-3     declaration of intent must be filed not later than the first day of
 3-4     the first reporting period to which it is intended to apply and
 3-5     must contain a statement that the officeholder or committee
 3-6     understands that if the $10,000 maximum for political contributions
 3-7     or political expenditures is exceeded, the officeholder or
 3-8     committee is required to file reports under Subsection (b).
 3-9           (e)  A candidate for an office described by Section
3-10     252.005(5) or a specific-purpose committee for supporting or
3-11     opposing only candidates for an office described by Section
3-12     252.005(5) or a measure described by Section 252.007(5) may file
3-13     reports that comply with Subsection (a).
3-14           (f)  An individual required to file a report with the
3-15     commission in connection with a direct campaign expenditure to
3-16     which Section 253.062 applies may file a report that complies with
3-17     Subsection (a).
3-18           (g)  Each report filed under this chapter must be accompanied
3-19     by an affidavit executed by the person required to file the report.
3-20     The affidavit must contain the statement:  "I swear, or affirm,
3-21     under penalty of perjury, that the accompanying report is true and
3-22     correct and includes all information required to be reported by me
3-23     under Title 15, Election Code."  A report filed under this chapter
3-24     is considered to be under oath by the person required to file the
3-25     report, and the person is subject to prosecution under Chapter 37,
3-26     Penal Code, regardless of the absence of or a defect in the
3-27     affidavit.
 4-1           (h) [(c)]  As part of the notification required by Section
 4-2     251.033, the commission shall mail the appropriate forms to each
 4-3     person required to file a report with the commission during that
 4-4     reporting period.
 4-5           (i) [(d)]  The commission shall prescribe forms for purposes
 4-6     of legislative caucus reports under Section 254.0311 that are
 4-7     separate and distinct from forms for other reports under this
 4-8     chapter.
 4-9           (j) [(e)  A report filed under this chapter is considered to
4-10     be under oath by the person required to file the report regardless
4-11     of the absence of or defect in the affidavit of verification,
4-12     including a signature.]
4-13           [(f)  A person required to file a report under this chapter
4-14     is subject to prosecution under Chapter 37, Penal  Code, regardless
4-15     of the absence of or defect in the affidavit of verification.]
4-16           [(g)]  This section applies to a report that is filed
4-17     electronically or otherwise.
4-18           SECTION 2.  Section 254.038, Election Code, is amended by
4-19     amending the heading and Subsection (c) to read as follows:
4-20           Sec. 254.038.  ADDITIONAL REPORTS [TELEGRAM REPORT] BY
4-21     CERTAIN CANDIDATES AND POLITICAL COMMITTEES.
4-22           (c)  A report under this section by a candidate or political
4-23     committee permitted to file reports under this chapter that comply
4-24     with Section 254.036(a) shall be filed by telegram or telephonic
4-25     facsimile machine or by hand with the commission not later than 48
4-26     hours after the contribution is accepted.
4-27           SECTION 3.  Section 254.039, Election Code, is amended by
 5-1     amending the heading and Subsections (a)  and (c) to read as
 5-2     follows:
 5-3           Sec. 254.039.  ADDITIONAL REPORTS [TELEGRAM REPORT] BY
 5-4     CERTAIN GENERAL-PURPOSE COMMITTEES.  (a)  In addition to  other
 5-5     reports required by this chapter, a general-purpose committee that
 5-6     makes direct campaign expenditures supporting or opposing either a
 5-7     single candidate that in the aggregate exceed $1,000 or a group of
 5-8     candidates that in the aggregate exceed $15,000 during the period
 5-9     beginning the ninth day before election day and ending at 12 noon
5-10     on the second day before election day shall file a report [by
5-11     telegram or telephonic facsimile machine or by hand with the
5-12     commission not later than 48 hours after the expenditure is made].
5-13           (c)  A report under this section by a political committee
5-14     permitted to file reports under this chapter that comply with
5-15     Section 254.036(a) shall be filed by telegram or telephonic
5-16     facsimile machine or by hand with the commission not later than 48
5-17     hours after the contribution is accepted [Section 254.036 does not
5-18     apply to a report required by this section].
5-19           SECTION 4.  Section 254.042(a), Election Code, is amended to
5-20     read as follows:
5-21           (a)  The commission shall determine from any available
5-22     evidence whether a report[, other than a telegram report under
5-23     Section 254.038 or 254.039,] required to be filed with the
5-24     commission under this chapter is late.  On making that
5-25     determination as to a report other than a report under Section
5-26     254.038 or 254.039, the commission shall immediately mail a notice
5-27     of the determination to the person required to file the report.
 6-1           SECTION 5.  Section 254.064, Election Code, is amended to
 6-2     read as follows:
 6-3           Sec. 254.064.  ADDITIONAL REPORTS OF OPPOSED CANDIDATE.
 6-4     (a)  In addition to other required reports, for each election in
 6-5     which a person is a candidate and has an opponent whose name is to
 6-6     appear on the ballot, the person shall file four [two] reports.
 6-7           (b)  The first report shall be filed not later than the 30th
 6-8     day before election day.  The report covers the period beginning
 6-9     the day the candidate's campaign treasurer appointment is filed or
6-10     the first day after the period covered by the last report required
6-11     to be filed under this chapter, as applicable, and continuing
6-12     through the 40th day before election day.
6-13           (c)  The second report shall be filed not later than the 18th
6-14     day before election day.  The report covers the period beginning
6-15     the 39th day before election day and continuing through the 21st
6-16     day before election day.
6-17           (d)  The third report shall be filed not later than the 11th
6-18     day before election day.  The report covers the period beginning
6-19     the 20th day before election day and continuing through the 14th
6-20     day before election day.
6-21           (e)  The fourth report shall be filed not later than the
6-22     fourth [eighth] day before election day.  The report covers the
6-23     period beginning the 13th [39th] day before election day and
6-24     continuing through the 7th [10th] day before election day.
6-25           (f) [(d)]  If a person becomes an opposed candidate after a
6-26     reporting period prescribed by Subsection (b), [or] (c), (d), or
6-27     (e), the person shall file the person's first report not later than
 7-1     the regular deadline for the report covering the period during
 7-2     which the person becomes an opposed candidate.  The period covered
 7-3     by the first report begins the day the candidate's campaign
 7-4     treasurer appointment is filed.
 7-5           (g) [(e)]  In addition to other required reports, an opposed
 7-6     candidate in a runoff election shall file one report for that
 7-7     election.  The runoff election report shall be filed not later than
 7-8     the eighth day before runoff election day.  The report covers the
 7-9     period beginning the sixth [ninth] day before the date of the main
7-10     election and continuing through the 10th day before runoff election
7-11     day.
7-12           SECTION 6.  Section 254.038(d), Election Code, is repealed.
7-13           SECTION 7.  This Act takes effect September 1, 1999.
7-14           SECTION 8.  (a)  Sections 254.036, 254.038, 254.039, and
7-15     254.064, Election Code, as amended by this Act, apply only to a
7-16     report required to be filed under Chapter 254, Election Code, on or
7-17     after January 1, 2000.  A report required to be filed under Chapter
7-18     254, Election Code, before January 1, 2000, may be filed in
7-19     compliance with Sections 254.036, 254.038, 254.039, and 254.064,
7-20     Election Code, as those sections existed before amendment by this
7-21     Act, and the former law is continued in effect for that purpose.
7-22           (b)  Section 254.042, Election Code, as amended by this Act,
7-23     applies only to a report required to be filed under Chapter 254,
7-24     Election Code, on or after September 1, 1999.  A report required to
7-25     be filed under Chapter 254, Election Code, before September 1,
7-26     1999, is governed by Section 254.042, Election Code, as that
7-27     section existed before amendment by this Act, and the former law is
 8-1     continued in effect for that purpose.
 8-2           SECTION 9.  The importance of this legislation and the
 8-3     crowded condition of the calendars in both houses create an
 8-4     emergency and an imperative public necessity that the
 8-5     constitutional rule requiring bills to be read on three several
 8-6     days in each house be suspended, and this rule is hereby suspended.