By Harris                                             S.B. No. 1865
         76R11394 ESH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to regulating and reporting certain political
 1-3     contributions and political expenditures; providing a criminal
 1-4     penalty.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 251.001(15), Election Code, is amended to
 1-7     read as follows:
 1-8                 (15)  "Out-of-state political committee" means a
 1-9     political committee that:
1-10                       (A)  makes political expenditures outside this
1-11     state; and
1-12                       (B)  in the 12 months immediately preceding the
1-13     making of a political expenditure by the committee inside this
1-14     state (other than an expenditure made in connection with a campaign
1-15     for a federal office or made for a federal officeholder), makes 90
1-16     [80] percent or more of the committee's total political
1-17     expenditures in any combination of elections outside this state and
1-18     federal offices not voted on in this state.
1-19           SECTION 2.  Chapter 253, Election Code, is amended by adding
1-20     Subchapter G to read as follows:
1-21         SUBCHAPTER G.  RESTRICTIONS ON POLITICAL CONTRIBUTIONS AND
1-22      EXPENDITURES IN CONNECTION WITH EXECUTIVE AND LEGISLATIVE OFFICES
1-23           Sec. 253.201.  APPLICABILITY OF SUBCHAPTER.  This subchapter
1-24     applies only to a political contribution or political expenditure
 2-1     in connection with:
 2-2                 (1)  a statewide office other than a judicial office;
 2-3                 (2)  the office of state senator;
 2-4                 (3)  the office of state representative; or
 2-5                 (4)  the office of member, State Board of Education.
 2-6           Sec. 253.202.  LIMIT ON CONTRIBUTION BY CHILD.  (a)  A child
 2-7     may not knowingly make or authorize political contributions to a
 2-8     candidate or officeholder that, in connection with each election in
 2-9     which the candidate or officeholder is involved, in the aggregate
2-10     exceed $100.
2-11           (b)  A person may not knowingly accept a political
2-12     contribution, and shall refuse a political contribution that is
2-13     received, in violation of Subsection (a).
2-14           (c)  In this section, "child" means a person under 18 years
2-15     of age who is not and has not been married or who has not had the
2-16     disabilities of minority removed for general purposes.
2-17           Sec. 253.203.  NOTICE REQUIRED FOR CERTAIN CONTRIBUTIONS AND
2-18     EXPENDITURES.  (a)  A person other than the principal political
2-19     committee of the state executive committee or a county executive
2-20     committee of a political party may not make a political
2-21     contribution that exceeds $5,000 or a direct campaign expenditure
2-22     for the purpose of supporting or opposing one or more candidates
2-23     that exceeds $5,000 unless the person files with the commission
2-24     and, if applicable, each candidate whom the expenditure benefits a
2-25     written declaration of the person's intent to make the contribution
2-26     or expenditure before the contribution or expenditure is made.  The
2-27     declaration must include the amount of the contribution or
 3-1     expenditure.
 3-2           (b)  The commission shall file a declaration received under
 3-3     Subsection (a) with the records of the candidate to whom the
 3-4     political contribution is made or each candidate whom the direct
 3-5     campaign expenditure benefits.  Not later than 24 hours after
 3-6     receiving a declaration under Subsection (a), the commission shall:
 3-7                 (1)  make the information contained in the declaration
 3-8     easily accessible on the commission's Internet site; or
 3-9                 (2)  deliver a copy of the declaration by telephonic
3-10     facsimile machine or overnight mail to each candidate who opposes
3-11     the candidate to whom the contribution is made or whom the
3-12     expenditure benefits.
3-13           (c)  For purposes of this section, a direct campaign
3-14     expenditure that opposes a candidate is considered to benefit each
3-15     candidate for the office other than the opposed candidate.
3-16           (d)  A political expenditure made by a political committee or
3-17     other association that consists only of costs incurred in
3-18     contacting the committee's or association's dues-paying membership
3-19     may be made without the declaration required by Subsection (a).
3-20           SECTION 3.  Subchapter C, Chapter 254, Election Code, is
3-21     amended by adding Section 254.0612 to read as follows:
3-22           Sec. 254.0612.  ADDITIONAL CONTENTS OF REPORTS BY CANDIDATES
3-23     FILING WITH COMMISSION.  (a)  In addition to the contents required
3-24     by Sections 254.031, 254.061, and, if applicable, 254.0611, each
3-25     report by a candidate who is required to file reports with the
3-26     commission must include, for each political committee from which
3-27     the candidate accepts a political contribution and receives notice
 4-1     under Section 254.1281 or 254.1611, the full name, address,
 4-2     principal occupation, and employer of each person who, since the
 4-3     January 1 preceding the most recent general election for state and
 4-4     county officers, has made political contributions to that committee
 4-5     that in the aggregate exceed $5,000 in any 12-month period.
 4-6           (b)  If a person making political contributions described by
 4-7     Subsection (a) is a political committee, the candidate's report
 4-8     must include, if applicable, the information required by Subsection
 4-9     (a)  as to political contributions to that committee.
4-10           SECTION 4.  Subchapter D, Chapter 254, Election Code, is
4-11     amended by adding Section 254.0912 to read as follows:
4-12           Sec. 254.0912.  ADDITIONAL CONTENTS OF REPORTS BY
4-13     OFFICEHOLDERS FILING WITH COMMISSION.  (a)  In addition to the
4-14     contents required by Sections 254.031, 254.091, and, if applicable,
4-15     254.0911, each report by an officeholder who is required to file
4-16     reports with the commission must include, for each political
4-17     committee from which the officeholder accepts a political
4-18     contribution and receives notice under Section 254.1281 or
4-19     254.1611, the full name, address, principal occupation, and
4-20     employer of each person who, since the January 1 preceding the most
4-21     recent general election for state and county officers, has made
4-22     political contributions to that committee that in the aggregate
4-23     exceed $5,000 in any 12-month period.
4-24           (b)  If a person making political contributions described by
4-25     Subsection (a) is a political committee, the officeholder's report
4-26     must include, if applicable, the information required by Subsection
4-27     (a) as to political contributions to that committee.
 5-1           SECTION 5.  Subchapter E, Chapter 254, Election Code, is
 5-2     amended by adding Section 254.1281 to read as follows:
 5-3           Sec. 254.1281.  NOTICE TO CERTAIN CANDIDATES AND
 5-4     OFFICEHOLDERS OF CONTRIBUTIONS.  (a)  If a specific-purpose
 5-5     committee makes a  political contribution to a candidate or
 5-6     officeholder who is required to file reports with the commission,
 5-7     the committee's campaign treasurer shall deliver written notice to
 5-8     the affected candidate or officeholder that includes the full name,
 5-9     address, principal occupation, and employer of each person who,
5-10     since the January 1 preceding the most recent general election for
5-11     state and county officers, has made political contributions to the
5-12     committee that in the aggregate exceed $5,000 in any 12-month
5-13     period.
5-14           (b)  The notice must be delivered with the political
5-15     contribution.
5-16           (c)  If no person has made political contributions described
5-17     by Subsection (a) to the political committee since the January 1
5-18     preceding the most recent general election for state and county
5-19     officers, the campaign treasurer shall indicate that fact in the
5-20     notice.
5-21           (d)  The notice must include the full name and address of the
5-22     political committee and its campaign treasurer and an indication
5-23     that the committee is a specific-purpose committee.
5-24           (e)  A campaign treasurer commits an offense if the campaign
5-25     treasurer fails to comply with this section.  An offense under this
5-26     section is a Class C misdemeanor.
5-27           SECTION 6.  Subchapter F, Chapter 254, Election Code, is
 6-1     amended by adding Section 254.1611 to read as follows:
 6-2           Sec. 254.1611.  NOTICE TO CERTAIN CANDIDATES AND
 6-3     OFFICEHOLDERS OF CONTRIBUTIONS.   If a general-purpose committee
 6-4     other than the principal political committee of the state executive
 6-5     committee or a county executive committee of a political party
 6-6     makes a political contribution to a candidate or officeholder who
 6-7     is required to file reports with the commission, the committee's
 6-8     campaign treasurer shall deliver written notice to the affected
 6-9     candidate or officeholder as provided by Section 254.1281 for a
6-10     specific-purpose committee.
6-11           SECTION 7.  This Act takes effect September 1, 1999.
6-12           SECTION 8.  (a)  Subchapter G, Chapter 253, Election Code, as
6-13     added by this Act, applies only to a political contribution
6-14     accepted or a political expenditure made on or after September 1,
6-15     1999. A political contribution accepted or a political expenditure
6-16     made before that date is governed by the law in effect at the time
6-17     the contribution was accepted or the expenditure was made.
6-18           (b)  Sections 254.0612, 254.0912, 254.1281, and 254.1611,
6-19     Election Code, as added by this Act, apply only to the reporting of
6-20     a political contribution made on or after September 1, 1999.  The
6-21     reporting of a political contribution made before September 1,
6-22     1999, is governed by the law in effect at the time the contribution
6-23     was made, and the former law is continued in effect for that
6-24     purpose.
6-25           SECTION 9.  The importance of this legislation and the
6-26     crowded condition of the calendars in both houses create an
6-27     emergency and an imperative public necessity that the
 7-1     constitutional rule requiring bills to be read on three several
 7-2     days in each house be suspended, and this rule is hereby suspended.