SRC-SEW C.S.S.B. 6 77(R) BILL ANALYSIS
Senate Research Center C.S.S.B. 6
2001S0688/1By: Shapiro
State Affairs
3/6/2001
Committee Report (Substituted)
DIGEST AND PURPOSE
Currently, campaign financing is a weighty issue and will continue to be
one in the years to come. Dealing with campaign finance laws means walking
the tightrope between providing public disclosure of the financial
interests involved and keeping the campaign finance laws simple enough so
that citizens are not reluctant to get involved with campaigns or run for
political office. As proposed, C.S.S.B. 6 provides for reasonable campaign
finance disclosure in Texas by: requiring the reporting of more and better
detailed information regarding campaign finances and cash-on-hand reserves;
raising the minimum level of contributions and expenditures required to be
reported; changing time limits on reports; changing some penalties
regarding reports; exempting certain non-reportable contributions and
travel expenses from being considered reportable contributions; removing
certain unconstitutional waiting period requirements; requiring
out-of-state political committees to file certain notices under certain
conditions; allowing special partnerships to contribute to campaigns under
certain conditions; codifying the transfer of administrative funds between
state and federal accounts by political parties; providing protection from
the misappropriation of contributor lists from reports; and clarifying when
certain expenditures fall under Texas disclosure laws.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 251.001, Election Code, by amending Subdivisions
(2) and (8) and adding Subdivisions (21) and (22), as follows:
(2) Redefines "contribution."
(8) Redefines "direct campaign expenditure."
(21) Defines "coordinated general public political communication."
(22) Defines "express advocacy."
SECTION 2. Amends Section 251.005, Election Code, as follows:
Sec. 251.005. New heading: ELECTRONIC FILING FOR OUT-OF-STATE COMMITTEES.
(a) Provides that an out-of-state political committee that files reports
with the Federal Election Commission or with the election authority of
another state is not required to file such reports with the Texas Ethics
Commission (commission) if all of the committee's reports are available
electronically. Requires an out-of-state political committee that elects
not to file reports with the commission to file a one-page notice with the
commission stating that the committee files reports with the Federal
Election Commission (FEC) or with the election authority of another state
and those reports include contributions or expenditures made by the
committee in connection with elections in Texas. Deletes text regarding
Chapter 252 (Campaign Treasurer) and 254 (Political Reporting).
(b) Provides that a report filed with another state is not considered to be
available electronically under Subsection (a) if the commission determines
that the disclosure requirements of the other state are less than the
disclosure requirements of this state. Deletes text regarding out-of-state
committees filing a campaign treasurer appointment.
Deletes existing Subsection (c).
SECTION 3. Amends Chapter 251A, Election Code, by adding Section 251.010,
as follows:
Sec. 251.010. PROTECTION OF INFORMATION. (a) Prohibits information
obtained from any reports required to be maintained or filed under Chapter
254 from being sold or used by any person other than the filer for certain
stated purposes without the express written consent of the filer.
(b) Provides that the use of information from reports filed under Chapter
254 that is copied or obtained from certain stated sources is permissible
under certain circumstances.
(c) Authorizes a person required to report contributions under Chapter 254
to use up to 10 pseudonyms on each report filed for certain purposes and
under certain conditions. Sets forth guidelines concerning the list of
pseudonyms.
(d) Requires that, in addition to any penalties imposed by the commission,
any person found to have violated Subsection (a) or (c) be liable in
damages to the person filing the report. Defines the term "damages."
Requires the person filing the report to be entitled to, in addition to
damages, certain stated injunctions and orders.
(e) Prohibits a filer from using this section for the purpose of
circumventing the reporting requirements of this title by materially
inflating the amount of contributions reported by the filer.
SECTION 4. Amends Section 252.003(a), Election Code, to delete text
regarding a campaign treasurer appointment by a general-purpose committee
being required to include the full name and address of each general purpose
committee to whom the committee intends to make political contributions.
SECTION 5. Amends Amends Chapter 253A, Election Code, by adding Section
253.006, as follows:
Sec. 253.006. COERCION PROHIBITED. Provides that a person, including a
candidate, officeholder, or political committee, commits an offense if the
person uses or threatens to use physical force, job discrimination, or
financial reprisal to obtain a contribution or other thing of value to be
used to influence the result of an election or to assist an officeholder.
Provides that such a person commits an offence if the person accepts or
uses money or any other thing of value that is known by the candidate or
officeholder or by an officer of the political committee or an individual
who causes the political committee to accept or use the money or other
thing of value to have been obtained in violation of this section.
Provides that an offense under this section is a third-degree felony.
SECTION 6. Amends Section 253.031, Election Code, by prohibiting a
political committee that files its appointment of treasurer within 30 days
before an election from knowingly making or authorizing certain campaign
contributions or expenditures except under certain conditions. Provides
that this section does not apply to an out-of-state political committee
unless the committee meets the requirements of Section 251.005. Deletes
text regarding Chapter 252.
SECTION 7. Amends Section 253.033, Election Code, as follows:
Sec. 253.033. New heading: CASH CONTRIBUTIONS EXCEEDING $100 PROHIBITED;
ANONYMOUS CONTRIBUTIONS. Requires a candidate, officeholder, or political
committee that receives an anonymous cash contribution in excess of $50 to
promptly disburse the amount over $50 to one or more of the entities listed
in Section 254.204(a)(1), (3), (5), or (6). Authorizes anonymous cash
contributions of $50 or less to be used by the candidate, officeholder, or
political committee for any lawful purpose.
SECTION 8. Amends Sections 253.042(b) and (e), Election Code, as follows:
(b) Prohibits a candidate or officeholder who accepts one or more political
contributions in the form of loans, including an extension of credit or a
guarantee of a loan or extension of credit, from one or more persons
related to the candidate or officeholder within the second degree by
affinity or consanguinity as determined under Chapter 573 (Degrees of
Relationship; Nepotism Prohibitions), Government Code, from using political
contributions to repay certain loans. Prohibits a candidate or
officeholder from using political contributions, in certain amounts, to
repay any other loan or extension of credit for which the candidate or
officeholder is personally liable or is obligated or guarantees.
(e) Provides that this section does not prohibit the payment of interest at
a commercially reasonable rate on loans covered by this section from a
financial institution. Prohibits a candidate or officeholder from using
political contributions to pay interest on certain types of loans.
SECTION 9. Amends Section 253.063, Election Code, to prohibit unreimbursed
travel expenses incurred by an individual from being considered a
contribution or a direct campaign expenditure and prohibits such expenses
from being reportable under this subchapter or Chapter 254. Deletes text
regarding a direct campaign expenditure consisting of personal travel
expenses incurred by an individual being authorized to be made without
complying with Section 253.062(a)(1).
SECTION 10. Amends Chapter 253D, Election Code, by adding Section 253.105,
as follows:
Sec. 253.105. CONTRIBUTION BY PARTNERSHIP OR LIMITED LIABILITY COMPANY.
Provides that this subchapter does not prohibit a political contribution
made by a partnership or limited liability company if the contribution is
not charged to the profits, interest, or capital account of a partner or
member that is a corporation covered by Section 253.091.
SECTION 11. Amends Section 253.162, Election Code, by amending Subsections
(b), (c), and (d) and adding Subsection (e), as follows:
(b) Prohibits a judicial candidate or office holder from using political
contributions to repay certain loans.
(c) Prohibits the total amount of both reimbursements under Subsection (a)
and repayments under Subsection (b)(2) made by a judicial candidate or
officeholder from exceeding the amount prescribed by Subsection (a).
(d) Authorizes a person who is both a candidate and an officeholder to
reimburse the person's personal funds or repay loans from political
contributions only in one capacity.
(e) Provides that this section does not prohibit the payment of interest
at a commercially reasonable rate on certain loans but does prohibit a
judicial candidate or officeholder from using political contributions to
pay interest on certain loans.
SECTION 12. Amends Section 254.031(a), Election Code, to require, except
as otherwise provided by this chapter, each report filed under this chapter
to include certain stated factors including information regarding political
contributions and persons making such contributions, loans, political
expenditures, candidates or officeholders benefitting from direct campaign
expenditures, and the funds maintained in accounts in which political
contributions are deposited.
SECTION 13. Amends Chapter 254B, Election Code, by adding Sections
254.0312 and 254.0313, as follows:
Sec. 254.0312. BEST EFFORTS. (a) Provides that a person required to file
a report under this chapter is considered to have used best efforts to
obtain, maintain, and report the information required by Section
254.031(a)(2) if the person or the person's campaign treasurer complies
with this section.
(b) Sets forth guidelines concerning information required in each written
solicitation for political contributions from an individual.
(c) Requires the person, for each political contribution received from an
individual which, when aggregated with all other political contributions
received from the individual during the reporting period, exceeds $500 and
for which the information required by Section 254.031(a)(2) is not
provided, to make at least one oral or written request for the missing
information. Sets forth guidelines regarding requirements for and
prohibitions on such requests.
(d) Requires a request under Subsection (c) that is made in writing to
include a clear and conspicuous statement that complies with
Subsection(b)(2) and a preaddressed envelope or postcard for responding to
the request. Requires a request that is made orally to be documented in
writing.
(e) Requires a person to report any information required by Section
254.031(a)(2) that is not provided by the individual making the political
contribution and that the person has in the person's records of political
contributions or previous reports under this chapter.
(f) Authorizes a person, instead of the request and statement required by
Subsection (b), to use any disclosure containing a similar request and
statement that has been approved by the Federal Election Commission.
Sec. 254.0313. REPORTING BY OUT-OF-STATE POLITICAL COMMITTEE. Requires
each report filed under this chapter by an out-of-state political committee
to include certain stated information instead of the information required
by Sections 254.031(a)(4), (6), and (7).
SECTION 14. Amends Section 254.038(a), Election Code, to require certain
candidates and specific-purpose committees to file additional reports (in
addition to other reports required by this chapter) during the period
beginning the ninth day before election day and ending at 12 noon on the
second day before election day.
SECTION 15. Amends Chapter 254B, Election Code, by adding Section
254.0381, as follows:
Sec. 254.0381. TELEGRAM REPORT OF CERTAIN DIRECT CAMPAIGN EXPENDITURES.
Requires a person or general purpose committee that makes direct campaign
expenditures that in the aggregate exceed $5,000 during the period
beginning the ninth day before election day and ending at 12 noon on the
second day before election day to file a report (in addition to other
reports required by this chapter) not later than 48 hours after the
expenditure is made. Requires each report required by this section to
include the amount of the expenditures, the full name and address and
principal occupation of the persons to whom the expenditures are made, and
the dates of the expenditures. Requires a report under this section to be
filed by telegram or telephonic facsimile machine or by hand. Provides
that this section does not apply to a direct campaign expenditure made by
the principal political committee of a political party. Provides that
Section 254.036 does not apply to a report required by this section.
SECTION 16. Amends Section 254.041(c), Election Code, to provide that a
violation of Subsection (a)(1) is a Class A misdemeanor if it is shown on
the trial of the offense that the person intentionally failed to file the
report on time with knowledge of the legal obligation to file the report.
Deletes text referencing Section 254.061(3) and Section 254.091(2).
SECTION 17. Amends Section 254.042(a), Election Code, to make a conforming
change by deleting text regarding Section 254.039.
SECTION 18. Amends Section 254.061, Election Code, to delete text
regarding additional information to be included in reports by candidates.
SECTION 19. Amends Section 254.091, Election Code, to delete text
regarding additional information to be included in reports by
officeholders.
SECTION 20. Amends Section 254.128, Election Code, as follows:
Sec. 254.128. New heading: NOTICE TO CANDIDATE AND OFFICEHOLDER OF INKIND
CONTRIBUTIONS. Requires that, if a specific-purpose committee, other than
a special-purpose committee established, controlled, or authorized by the
candidate or officeholder, makes political expenditures for a candidate or
officeholder that constitute an inkind contribution, the committee's
campaign treasurer deliver written notice of that fact to the affected
candidate or officeholder not later than the end of the period covered by
the report in which the reportable activity occurs. Sets forth guidelines
for information to be included in the notice.
SECTION 21. Amends Section 254.151, Election Code, to require, in addition
to the contents required by Section 254.031, each report by a campaign
treasurer of a general-purpose committee to include on a separate page or
pages of the report, the identification of any contribution made to the
committee that is intended by the donor to be used by the committee for
certain purposes, unless the contribution is otherwise disclosed elsewhere
in the report.
SECTION 22. Amends Section 254.161, Election Code, to require that, if a
general-purpose committee other than the principal political committee of a
political party or a political committee established by a political party's
county executive committee makes direct political expenditures for a
candidate or officeholder that constitute a contribution, notice of that
fact be given to the affected candidate or officeholder as provided by
Section 254.128 for a specific-purpose committee. Deletes reference to a
committee accepting political contributions.
SECTION 23. Amends Section 257.002, Election Code, by amending Subsection
(b) and adding Subsection (c), as follows:
(b) Makes a conforming change.
(c) Requires that nothing in this title prohibit a political party from
transferring funds held in the account required to be maintained under
Subsection (b) to another account maintained by the political party under
the requirements of federal law for the disbursing of the political party's
funds generally if the political party can reasonably demonstrate that the
funds are being disbursed from the other account in compliance with
applicable federal law and for permitted uses and purposes.
SECTION 24. Repealers:Sections 253.032 (Limitation on Contribution by
Out-of-State Committee) and 253.037 (Restrictions on Contribution or
Expenditure by General-Purpose Committee), Election Code;
Section 253.100(d) (regarding expenditures for a general-purpose
committee), Election Code;
Sections 254.032 (Nonreportable Personal Travel Expense) and 254.033
(Nonreportable Personal Service), Election Code; and
Section 254.039 (Telegram Report by Certain General-Purpose Committees),
Election Code.
SECTION 25. Makes application of this Act prospective regarding offenses
or elements of offenses committed before the effective date of this act.
SECTION 26. Provides that Sections 253.042 and 253.162, Election Code, as
amended by this Act, apply only to repayment of a loan or extension of
credit made on or after September 1, 2001. Provides that the repayment of
such a loan or extension made before that date is governed by the law in
effect on the date the loan or extension of credit was made, and the former
law is continued in effect for that purpose.
SECTION 27. Effective date: September 1, 2001.
SUMMARY OF COMMITTEE CHANGES
Amends As Filed S.B. 6 by omitting text in original SECTIONS 1 - 36
regarding election and recounting procedures.
SECTION 1. Designated in original As Filed S.B. 6 as SECTION 37. Amends
As Filed S.B. 6, Section 251.001, Election Code, to amend Subdivision (8)
and add Subdivisions (21) and (22).
SECTION 2. Designated in original As Filed S.B. 6 as SECTION 38. Amends
As Filed S.B. 6, Section 251.005, Election Code, to delete text in existing
Subsection (a) regarding Chapter 252 (Campaign Treasurer) or 254 (Political
Reporting) and redesignate new text formerly in Subsection (d) under
Subsection (a). Deletes text in existing Subsection (b) and provides in
new text under Subsection (b) that a report filed with another state is not
considered to be available electronically under Subsection (a) if the
commission determines that the disclosure requirements of the other state
are less than the disclosure requirements of this state. Deletes existing
Subsection (c).
SECTION 3. Amends As Filed S.B. 6 to amend Chapter 251A, Election Code, by
adding Section 251.010, as follows:
Sec. 251.010. PROTECTION OF INFORMATION. (a) Prohibits information
obtained from any reports required to be maintained or filed under Chapter
254 from being sold or used by any person other than the filer for certain
stated purposes without the express written consent of the filer.
(b) Provides that the use of information from reports filed under Chapter
254 that is copied or obtained from certain stated sources is permissible
under certain circumstances.
(c) Authorizes a person required to report contributions under Chapter 254
to use up to 10 pseudonyms on each report filed for certain purposes and
under certain conditions. Sets forth guidelines concerning the list of
pseudonyms.
(d) Requires that, in addition to any penalties imposed by the commission,
any person found to have violated Subsection (a) or (c) be liable in
damages to the person filing the report. Defines the term "damages."
Requires the person filing the report to be entitled to, in addition to
damages, certain stated injunctions and orders.
(e) Prohibits a filer from using this section for the purpose of
circumventing the reporting requirements of this title by materially
inflating the amount of contributions reported by the filer.
SECTION 4. Designated in original As Filed S.B. 6 as SECTION 39. No
changes in text.
SECTION 5. Designated in original As Filed S.B. 6 as SECTION 40. Amends
As Filed S.B. 6, Section 253.006, Election Code, to provide that a person,
including a candidate, officeholder, or political committee, commits an
offense if the person accepts or uses money or any other thing of value
that is known by the candidate or officeholder or by an officer of the
political committee or an individual who causes the political committee to
accept or use the money or other thing of value to have been obtained in
violation of this section.
SECTION 6. Designated in original As Filed S.B. 6 as SECTION 41. Amends
As Filed S.B. 6, Section 253.031, Election Code, to prohibit a political
committee that files its appointment of treasurer within 30 days before an
election from knowingly making or authorizing certain campaign
contributions or expenditures except under certain conditions. Provides
that this section does not apply to an out-ofstate political committee
unless the committee meets the requirements of Section 251.005. Deletes
text regarding Chapter 252.
SECTION 7. Designated in original As Filed S.B. 6 as SECTION 42. No
changes in text.
SECTION 8. Amends As Filed S.B. 6 to amend Sections 253.042(b) and (e),
Election Code, as follows:
(b) Prohibits a candidate or officeholder who accepts one or more political
contributions in the form of loans, including an extension of credit or a
guarantee of a loan or extension of credit, from one or more persons
related to the candidate or officeholder within the second degree by
affinity or consanguinity as determined under Chapter 573 (Degrees of
Relationship; Nepotism Prohibitions), Government Code, from using political
contributions to repay certain loans. Prohibits a candidate or
officeholder from using political contributions, in certain amounts, to
repay any other loan or extension of credit for which the candidate or
officeholder is personally liable or is obligated or guarantees.
(e) Provides that this section does not prohibit the payment of interest at
a commercially reasonable rate on loans covered by this section from a
financial institution. Prohibits a candidate or officeholder from using
political contributions to pay interest on certain types of loans.
SECTION 9. Designated in original As Filed S.B. 6 as SECTION 43. No
changes in text.
SECTION 10. Amends As Filed S.B. 6 to amend Chapter 253D, Election Code,
by adding Section 253.105, as follows:
Sec. 253.105. CONTRIBUTION BY PARTNERSHIP OR LIMITED LIABILITY COMPANY.
Provides that this subchapter does not prohibit a political contribution
made by a partnership or limited liability company if the contribution is
not charged to the profits, interest, or capital account of a partner or
member that is a corporation covered by Section 253.091.
SECTION 11. Amends As Filed S.B. 6 to amend Section 253.162, Election
Code, by amending Subsections (b), (c), and (d) and adding Subsection (e),
as follows:
(b) Prohibits a judicial candidate or office holder from using political
contributions to repay certain loans.
(c) Prohibits the total amount of both reimbursements under Subsection (a)
and repayments under Subsection (b)(2) made by a judicial candidate or
officeholder from exceeding the amount prescribed by Subsection (a).
(d) Authorizes a person who is both a candidate and an officeholder to
reimburse the person's personal funds or repay loans from political
contributions only in one capacity.
(e) Provides that this section does not prohibit the payment of interest at
a commercially reasonable rate on certain loans but does prohibit a
judicial candidate or officeholder from using political contributions to
pay interest on certain loans.
SECTION 12. Designated in original As Filed S.B. 6 as SECTION 45. Amends
As Filed S.B. 6, Section 245.031(a), Election Code, to require, except as
otherwise provided by this chapter, each report filed under this chapter to
include certain stated factors including information regarding political
contributions and persons making such contributions, loans, political
expenditures, candidates or officeholders benefitting from direct campaign
expenditures, and the funds maintained in accounts in which political
contributions are deposited. Omits text in original referring to certain
loans anc cash on hand.
SECTION 13. Designated in original As Filed S.B. 6 as SECTION 46. Amends
As Filed S.B. 6, Chapter 254B, Election Code, by amending Section 254.0312,
which is a new section proposed in the As Filed version, to authorize a
person, instead of the request and statement required by Subsection (b), to
use any disclosure containing a similar request and statement that has been
approved by the Federal Election Commission. Amends As Filed S.B. 6,
Chapter 254B, Election Code, by adding Section 254.0313, as follows:
Sec. 254.0313. REPORTING BY OUT-OF-STATE POLITICAL COMMITTEE. Requires
each report filed under this chapter by an out-of-state political committee
to include certain stated information instead of the information required
by Sections 254.031(a)(4), (6), and (7).
SECTION 14. Designated in original As Filed S.B. 6 as SECTION 47. No
changes in text.
SECTION 15. Designated in original As Filed S.B. 6 as SECTION 48. Amends
As Filed Chapter 254B, Election Code, in the proposed new Section
254.0381(a), Election Code, to require a person or general purpose
committee that makes direct campaign expenditures that in the aggregate
exceed $5,000 during the period beginning the ninth day before election day
and ending at 12 noon on the second day before election day to file a
report (in addition to other reports required by this chapter) not later
than 48 hours after the expenditure is made.
SECTION 16. Designated in original As Filed S.B. 6 as SECTION 49. No
changes in text.
SECTION 17. Amends As Filed S.B. 6 to amend Section 254.042(a), Election
Code, to make a conforming change by deleting text regarding Section
254.039.
SECTION 18. Amends As Filed S.B. 6 to amend Section 254.061, Election
Code, to delete text regarding additional information to be included in
reports by candidates.
SECTION 19. Amends As Filed S.B. 6 to amend Section 254.091, Election
Code, to delete text regarding additional information to be included in
reports by officeholders.
SECTION 20. Amends As Filed S.B. 6 to amend Section 254.128, Election
Code, as follows:
Sec. 254.128. New heading: NOTICE TO CANDIDATE AND OFFICEHOLDER OF INKIND
CONTRIBUTIONS. Requires that, if a specific-purpose committee, other than
a special-purpose committee established, controlled, or authorized by the
candidate or officeholder, makes political expenditures for a candidate or
officeholder that constitute an inkind contribution, the committee's
campaign treasurer deliver written notice of that fact to the affected
candidate or officeholder not later than the end of the period covered by
the report in which the reportable activity occurs. Sets forth guidelines
for information to be included in the notice.
SECTION 21. Designated in original As Filed S.B. 6 as SECTION 50. Amends
As Filed S.B. 6, Section 254.151, Election Code, to omit a reference in the
original version to reporting committee expenditures.
SECTION 22. Amends As Filed S.B. 6 to amend Section 254.161, Election
Code, to require that, if a general-purpose committee other than the
principal political committee of a political party or a political committee
established by a political party's county executive committee makes direct
political expenditures for a candidate or officeholder that constitute a
contribution, notice of that fact be given to the affected candidate or
officeholder as provided by Section 254.128 for a specific-purpose
committee. Deletes reference to a committee accepting political
contributions.
SECTION 23. Designated in original As Filed S.B. 6 as SECTION 51. No
changes in text.
SECTION 24. Amends As Filed S.B. 6 by repealing:
Section 253.032 (Limitation on Contribution by Out-of-State Committee),
Election Code;
Section 253.100(d) (regarding expenditures for a general-purpose
committee), Election Code;
Sections 254.032 (Nonreportable Personal Travel Expense) and 254.033
(Nonreportable Personal Service), Election Code; and
Section 254.039 (Telegram Report by Certain General-Purpose Committees),
Election Code.
Omits repealers in original As Filed S.B. 6 repealing the following
sections of the Election Code: Section 124.061 (Form of Punch-Card Ballot
Label); Section 127.130 (Manual Counting) (d) and (e); and Chapter 127G
(Preservation of Punch-Card Voting Aids).
SECTION 25. Amends As Filed S.B. 6 by making the application of this Act
prospective regarding offenses or elements of offenses committed before the
effective date of this act.
SECTION 26. Amends As Filed S.B. 6 by providing that Sections 253.042 and
253.162, Election Code, as amended by this Act, apply only to repayment of
a loan or extension or credit made on or after September 1, 2001. Provides
that the repayment of such a loan or extension made before that date is
governed by the law in effect on the date the loan or extension of credit
was made, and the former law is continued in effect for that purpose.
SECTION 27. Designated in original As Filed S.B. 6 as SECTION 55. No
change.