HBA-JEK H.B. 1353 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1353 By: Uher Elections 2/25/2001 Introduced BACKGROUND AND PURPOSE The cost of running a political campaign, including a state legislative campaign, has increased in recent years. It has been argued that large contributions by special interest groups have a greater impact on the political process than small contributions from individuals, and that contribution reports filed with the Texas Ethics Commission do not always match the self-reported totals filed by candidates. House Bill 1353 provides stricter reporting requirements and limits on campaign contributions to candidates for state legislative office. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 1353 amends the Election Code to set forth provisions regarding political contributions or political expenditures made in connection with the office of state senator or state representative (Sec. 253.201). The bill prohibits a person from knowingly making, authorizing, or accepting political contributions made to a candidate or officeholder that in the aggregate exceed $2,000 for the office of state senator or $1,000 for the office of state representative during an election cycle in which the candidate or officeholder is involved. The bill specifies that this provision does not apply to a political contribution made by a candidate to the candidate's own campaign or a political contribution made by a political party committee or legislative caucus committee (Sec. 253.203). The bill provides that a contribution by a person younger than 18 is considered a contribution by, and attributed proportionately to, the person's parents (Sec. 253.207). H.B. 1353 prohibits a person from knowingly making or authorizing political contributions that in the aggregate exceed $1,000 in an election cycle to a political committee other than a political committee established by a political party or a legislative caucus committee. The bill also prohibits a person from knowingly making or authorizing political contributions that in the aggregate exceed $5,000 in an election cycle to a political committee established by a political party or a legislative caucus committee (Sec. 253.204). The bill sets forth that a person who knowingly makes a contribution to a political committee in violation of this provision is liable for damages to each political committee of opposing interest in the election (Sec. 253.132). The bill requires a person who receives a political contribution that violates these provisions to return the contribution to the contributor no later than the 10th day after the date the contribution is received, and specifies that a political contribution that is not returned as required is considered to be accepted (Sec. 253.210). H.B. 1353 prohibits a person from knowingly making or authorizing political contributions to candidates, officeholders, and certain specific-purpose committees that in the aggregate exceed $25,000 in an election cycle. The bill prohibits a political committee from knowingly making or authorizing political contributions to those persons or committees if the contributions in the aggregate exceed $200,000 in an election cycle (Sec. 253.205). H.B. 1353 provides that, in the above provisions, all political contributions made by a political committee whose political activity is financed, maintained, or controlled by certain types of entities are aggregated with contributions made by a committee whose activity is financed, maintained, or controlled by a related entity. The bill provides that two or more entities are treated as a single entity in certain circumstances as described in the bill. The bill also provides that each specific-purpose committee for supporting a candidate or opposing the candidate's opponent is treated as a single committee if each committee includes the candidate or a member of the candidate's immediate family (Sec. 253.206). H.B. 1353 also provides that, under each of the above provisions, political contributions that are coordinated contributions to certain specific-purpose committees are considered to be a political contribution to the candidate or officeholder (Sec. 253.208). The bill provides that a person who makes an independent campaign expenditure in connection with a campaign for legislative office must file an affidavit with the Texas Ethics Commission (TEC) stating that the expenditure was not provided in coordination with a candidate, a candidate's agent, or a person who is coordinating with a candidate or a candidate's agent (Sec. 253.209). H.B. 1353 requires a campaign treasurer of a committee that makes a coordinated contribution to a specific-purpose committee or an independent campaign expenditure supporting or opposing a candidate to provide notice, as prescribed in the bill, to TEC and each candidate in the race of the contribution or expenditure no later than the second day after the contribution or expenditure is made (Sec. 253.211). H.B. 1353 specifies that the general restrictions on contributions and expenditures do not apply to a political contribution or expenditure made in violation of a provision of this bill (Secs. 253.003, 253.004, and 253.005). H.B. 1353 specifies the content of reports filed by a candidate for legislative office, a legislative officeholder or committee, and a campaign treasurer (Secs. 254.0612, 254.0912, 254.1212, and 254.1541). EFFECTIVE DATE September 1, 2001.