77R8749 E
By Gallego, Danburg, Madden, Swinford, H.B. No. 2
Junell, et al.
Substitute the following for H.B. No. 2:
By Danburg C.S.H.B. No. 2
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of certain political contributions,
1-3 political expenditures, and political advertising; providing civil
1-4 and criminal penalties.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 251.001, Election Code, is amended by
1-7 amending Subdivisions (14) and (16) and adding Subdivisions (21)
1-8 and (22) to read as follows:
1-9 (14) "General-purpose committee" means a political
1-10 committee that has among its principal purposes:
1-11 (A) supporting or opposing:
1-12 (i) two or more candidates who are
1-13 unidentified or are seeking offices that are unknown; or
1-14 (ii) one or more measures or prospective
1-15 measures that are unidentified; or
1-16 (B) assisting two or more officeholders who are
1-17 unidentified.
1-18 (16) "Political advertising" means a communication,
1-19 including a communication that contains express advocacy, that
1-20 supports or opposes [supporting or opposing] a candidate for
1-21 nomination or election to a public office or office of a political
1-22 party or a public officer or supporting or opposing[,] a political
1-23 party[, a public officer,] or a measure or prospective measure
1-24 that:
2-1 (A) in return for consideration, is published in
2-2 a newspaper, magazine, or other periodical or is broadcast by radio
2-3 or television; or
2-4 (B) appears in:
2-5 (i) a pamphlet, circular, flier,
2-6 telephonic facsimile, billboard or other sign, bumper sticker, or
2-7 similar form of written communication; or
2-8 (ii) electronic mail or an Internet
2-9 website.
2-10 (21) "Prospective measure" means a question or
2-11 proposal that is intended to be submitted in an election for an
2-12 expression of the voters' will and that is not yet legally required
2-13 to be submitted in an election. The term does not include the
2-14 circulation or submission of a petition to determine whether a
2-15 question or proposal is required to be submitted in an election for
2-16 an expression of the voters' will.
2-17 (22) "Express advocacy" means a communication, other
2-18 than a communication appearing in a news story, commentary, or
2-19 editorial distributed through the facilities of a broadcast station
2-20 that is not owned or controlled by a political party, political
2-21 committee, or candidate, that advocates the election or defeat of a
2-22 candidate by:
2-23 (A) containing the name of the candidate or a
2-24 word or phrase such as "vote for," "reelect," "support," "cast your
2-25 ballot for," "(name of candidate) for (name of office)," "(name of
2-26 candidate) in 2002," "vote against," "defeat," or "reject" or a
2-27 campaign slogan or words that in context can have no reasonable
3-1 meaning other than to advocate the election or defeat of one or
3-2 more clearly identified candidates; or
3-3 (B) referring to one or more clearly identified
3-4 candidates or officeholders in a paid advertisement that:
3-5 (i) is distributed by broadcast, cable, or
3-6 satellite television or radio, published in a newspaper, magazine,
3-7 or other periodical, appears on a billboard or other sign, or is
3-8 delivered through the mail;
3-9 (ii) is distributed, published, or
3-10 delivered to an audience that includes persons residing in an area
3-11 that is included in the territory from which the candidate or
3-12 officeholder seeks to be or is elected; and
3-13 (iii) is distributed, published, or
3-14 delivered at any time during the 60 days before the date of an
3-15 election in which the person identified is a candidate.
3-16 SECTION 2. Subchapter A, Chapter 251, Election Code, is
3-17 amended by adding Section 251.010 to read as follows:
3-18 Sec. 251.010. PROTECTION OF INFORMATION. (a) Recognizing
3-19 that contributor information required to be included in reports
3-20 required by Chapter 254 is proprietary information having
3-21 substantial value, no information obtained from any reports
3-22 required to be maintained or filed under this title may, without
3-23 the express written consent of the filer, be sold or used by any
3-24 person other than the filer for any commercial purposes.
3-25 (b) The use of information that is copied or otherwise
3-26 obtained from reports filed under this title in newspapers,
3-27 magazines, books, or other similar communications is permissible if
4-1 the principal purpose of the communication is to educate the public
4-2 and not to communicate any contributor information listed on the
4-3 reports for the purpose of soliciting contributions or for other
4-4 commercial purposes.
4-5 (c) A person required to report contributions under Chapter
4-6 254 may submit up to 10 pseudonyms on each report filed in order to
4-7 protect against illegal use of names and addresses of contributors
4-8 provided that the total amount of fictitious contributions does not
4-9 exceed the greater of five percent of contributions reported or
4-10 $2,500. If a filer uses pseudonyms, the filer shall subtract the
4-11 total dollar amount of the fictitious contributions from the total
4-12 of unitemized contributions required to be reported under Section
4-13 254.031(6). Any filer who uses pseudonyms shall submit a list of
4-14 the pseudonyms and amounts contributed separately to the commission
4-15 on or before the date on which the report containing the fictitious
4-16 names is filed. The commission shall exclude the list of
4-17 pseudonyms from the public records, and the list shall be kept
4-18 confidential by the commission and may not be disclosed to the
4-19 public for any reason without the express written consent of the
4-20 filer.
4-21 (d) In addition to any penalties imposed by the commission,
4-22 any person found to have violated Subsection (a) or (c) shall be
4-23 liable in damages to the person filing the report. In this
4-24 subsection, "damages" means the fair market value of the
4-25 contributor information improperly used and the reasonable
4-26 attorney's fees incurred by the filer. In addition to damages, the
4-27 person filing the report shall be entitled as a matter of right to
5-1 an injunction prohibiting a violation of this section and an order
5-2 recovering reasonable attorney's fees incurred to obtain the
5-3 injunctive relief from any district court in this state.
5-4 (e) A filer may not use this section for the purpose of
5-5 circumventing the reporting requirements of this title by
5-6 materially inflating the amount of contributions reported by the
5-7 filer.
5-8 SECTION 3. Subchapter A, Chapter 253, Election Code, is
5-9 amended by adding Section 253.006 to read as follows:
5-10 Sec. 253.006. COERCION PROHIBITED. (a) A person, including
5-11 a candidate, officerholder, or political committee, commits an
5-12 offense if the person uses or threatens to use physical force, job
5-13 discrimination, or financial reprisal to obtain a contribution or
5-14 other thing of value to be used to influence the result of an
5-15 election or to assist an officeholder.
5-16 (b) A candidate, officeholder, or political committee
5-17 commits an offense if the person accepts or uses money or any other
5-18 thing of value that is known by the candidate or officeholder or by
5-19 an officer of the political committee, or an individual who causes
5-20 the political committee to accept or use the money or other thing
5-21 of value, to have been obtained in violation of Subsection (a).
5-22 SECTION 4. Chapter 252, Election Code, is amended by adding
5-23 Section 252.0011 to read as follows:
5-24 Sec. 252.0011. INELIGIBILITY FOR APPOINTMENT AS CAMPAIGN
5-25 TREASURER. A person is ineligible for appointment as a campaign
5-26 treasurer if the person is the campaign treasurer of a political
5-27 committee that does not file a report required by Chapter 254.
6-1 SECTION 5. Sections 253.031(e) and (f), Election Code, are
6-2 amended to read as follows:
6-3 (e) [This section does not apply to an out-of-state
6-4 political committee unless the committee is subject to Chapter 252
6-5 under Section 251.005.]
6-6 [(f)] A person who violates this section commits an offense.
6-7 An offense under this section is a Class A misdemeanor.
6-8 SECTION 6. Sections 253.042(a), (b), and (e), Election Code,
6-9 are amended to read as follows:
6-10 (a) A candidate or officeholder who makes political
6-11 expenditures from the candidate's or officeholder's personal funds
6-12 may not reimburse those personal funds from political contributions
6-13 in amounts that in the aggregate exceed the following amounts for
6-14 each election in which the person's name appears on the ballot:
6-15 (1) for governor, $100,000;
6-16 (2) for a statewide office other than governor,
6-17 $50,000;
6-18 (3) for state senator, $25,000;
6-19 (4) for state representative, $25,000;
6-20 (5) for the office of member, State Board of
6-21 Education, $25,000; or
6-22 (6) for an office other than an office described by
6-23 Subdivisions (1)-(5) or to which Subchapter F applies, $10,000 [a
6-24 statewide office other than governor, $250,000; and]
6-25 [(2) for governor, $500,000].
6-26 (b) A candidate or officeholder who accepts one or more
6-27 political contributions in the form of loans, including an
7-1 extension of credit or a guarantee of a loan or extension of
7-2 credit, from one or more persons related to the candidate or
7-3 officeholder within the second degree by affinity or consanguinity
7-4 as determined under Chapter 573, Government Code, may not use
7-5 political contributions to repay the loans in amounts that in the
7-6 aggregate exceed the amount prescribed by Subsection (a). A
7-7 candidate or officeholder may not use political contributions, in
7-8 amounts that in the aggregate exceed the amount prescribed by
7-9 Subsection (a), to repay any other loan or extension of credit for
7-10 which the candidate or officeholder the committee supports or
7-11 assists is personally liable.
7-12 (e) A candidate or officeholder may not pay [This section
7-13 does not prohibit the payment of] interest on a loan [loans covered
7-14 by this section at a commercially reasonable rate, except that
7-15 interest on loans] from the [a] candidate's or officeholder's
7-16 personal funds or on a loan [loans] from the personal funds of any
7-17 person related to the candidate or officeholder within the second
7-18 degree by affinity or consanguinity, as determined under Chapter
7-19 573, Government Code [is included in the amount prescribed by
7-20 Subsection (a), (b), or (c)].
7-21 SECTION 7. Section 253.096, Election Code, is amended to
7-22 read as follows:
7-23 Sec. 253.096. CONTRIBUTION ON MEASURE. A corporation or
7-24 labor organization may make campaign contributions from its own
7-25 property in connection with an election on a measure only to a
7-26 political committee for supporting or opposing measures exclusively
7-27 and only if the election occurs on a uniform election date.
8-1 SECTION 8. Section 253.097, Election Code, is amended to
8-2 read as follows:
8-3 Sec. 253.097. DIRECT EXPENDITURE ON MEASURE. A corporation
8-4 or labor organization not acting in concert with another person may
8-5 make one or more direct campaign expenditures from its own property
8-6 in connection with an election on a measure if the corporation or
8-7 labor organization makes the expenditures in accordance with
8-8 Section 253.061 or 253.062 as if the corporation or labor
8-9 organization were an individual and the election occurs on a
8-10 uniform election date.
8-11 SECTION 9. Section 253.098, Election Code, is amended by
8-12 amending Subsection (b) and adding Subsection (c) to read as
8-13 follows:
8-14 (b) A corporation or labor organization may make one or more
8-15 campaign expenditures from its own property for the purpose of
8-16 permitting a candidate to appear at and speak to a meeting of its
8-17 stockholders or members, as applicable, or of the families of its
8-18 stockholders or members. A corporation or labor organization may
8-19 not make an expenditure under this subsection for transportation or
8-20 lodging.
8-21 (c) An expenditure under this section is not reportable
8-22 under Chapter 254.
8-23 SECTION 10. Section 253.162, Election Code, is amended to
8-24 read as follows:
8-25 Sec. 253.162. RESTRICTIONS ON REIMBURSEMENT OF PERSONAL
8-26 FUNDS AND PAYMENTS ON CERTAIN LOANS. (a) A judicial candidate or
8-27 officeholder who makes political expenditures from the person's
9-1 personal funds may not reimburse the personal funds from political
9-2 contributions in amounts that in the aggregate exceed, for each
9-3 election in which the person's name appears on the ballot:
9-4 (1) for a statewide judicial office, $50,000
9-5 [$100,000]; or
9-6 (2) for an office other than a statewide judicial
9-7 office, five times the applicable contribution limit under Section
9-8 253.155.
9-9 (b) A judicial candidate or officeholder may not:
9-10 (1) use political contributions to repay a loan [who
9-11 accepts one or more political contributions in the form of loans],
9-12 including an extension of credit or a guarantee of a loan or
9-13 extension of credit, from one or more persons related to the
9-14 candidate or officeholder within the second degree by
9-15 consanguinity, as determined under [Subchapter B,] Chapter 573,
9-16 Government Code; or
9-17 (2) use political contributions, in amounts that in
9-18 the aggregate exceed the amount prescribed by Subsection (a), to
9-19 repay any other loan or extension of credit for which the candidate
9-20 or officeholder the committee supports or assists is personally
9-21 liable[, may not use political contributions to repay the loans].
9-22 (c) The total amount of both reimbursements under Subsection
9-23 (a) and repayments under Subsection (b)(2) made by a candidate or
9-24 officeholder may not exceed the amount prescribed by Subsection
9-25 (a).
9-26 (d) A person who is both a candidate and an officeholder may
9-27 reimburse the person's personal funds or repay loans from political
10-1 contributions only in one capacity.
10-2 (e) A judicial candidate or officeholder may not pay
10-3 interest on a loan from the candidate's or officeholder's personal
10-4 funds or on a loan from the personal funds of any person related to
10-5 the candidate or officeholder within the second degree by affinity
10-6 or consanguinity, as determined under Chapter 573, Government Code.
10-7 (f) [(d)] A person who violates this section is liable for a
10-8 civil penalty not to exceed three times the amount by which the
10-9 reimbursement or repayment made in violation of this section
10-10 exceeds the applicable limit prescribed by Subsection (a).
10-11 SECTION 11. Section 254.031, Election Code, is amended to
10-12 read as follows:
10-13 Sec. 254.031. GENERAL CONTENTS OF REPORTS. (a) Except as
10-14 otherwise provided by this chapter, each report filed under this
10-15 chapter must include:
10-16 (1) the amount of political contributions from each
10-17 person that in the aggregate exceed $200 [$50] and that are
10-18 accepted during the reporting period by the person or committee
10-19 required to file a report under this chapter, the full name and
10-20 address of the person making the contributions, and the dates of
10-21 the contributions, and:
10-22 (A) if the person making the contributions is an
10-23 individual, the individual's principal occupation or job title and
10-24 the full name of the individual's employer, if any;
10-25 (B) if the person making the contributions is a
10-26 child, the full name and address of each of the person's parents,
10-27 guardians, or other persons standing in parental relation to the
11-1 person; and
11-2 (C) if the contributions are in-kind
11-3 contributions, a description of the property or services
11-4 contributed;
11-5 (2) the amount of loans that are made during the
11-6 reporting period for campaign or officeholder purposes to the
11-7 person or committee required to file the report [and that in the
11-8 aggregate exceed $50], the dates the loans are made, the interest
11-9 rate, the maturity date, the type of collateral for the loans, if
11-10 any, the full name and address of the person or financial
11-11 institution making the loans, the full name and address, principal
11-12 occupation, and name of the employer of each guarantor of the
11-13 loans, the amount of the loans guaranteed by each guarantor, and
11-14 the aggregate principal amount of each [all] outstanding loan
11-15 [loans] as of the last day of the reporting period;
11-16 (3) the amount of political expenditures that in the
11-17 aggregate exceed $200 [$50] and that are made during the reporting
11-18 period, the full name and address of the persons to whom the
11-19 expenditures are made, and the dates and purposes of the
11-20 expenditures, and, if the expenditures are in the form of in-kind
11-21 contributions, a description of the property or services
11-22 contributed;
11-23 (4) the amount of each payment made during the
11-24 reporting period from a political contribution if the payment is
11-25 not a political expenditure, the full name and address of the
11-26 person to whom the payment is made, and the date and purpose of the
11-27 payment;
12-1 (5) the total amount or a specific listing of the
12-2 political contributions of $200 [$50] or less accepted and the
12-3 total amount or a specific listing of the political expenditures of
12-4 $200 [$50] or less made during the reporting period;
12-5 (6) the total amount of all political contributions
12-6 accepted and the total amount of all political expenditures made
12-7 during the reporting period; and
12-8 (7) the name of each candidate or officeholder who
12-9 benefits from a direct campaign expenditure made during the
12-10 reporting period by the person or committee required to file the
12-11 report, and the office sought or held, excluding a direct campaign
12-12 expenditure that is made by the principal political committee of a
12-13 political party on behalf of a slate of two or more nominees of
12-14 that party.
12-15 (b) Instead of the information required by Subsections
12-16 (a)(3), (5), and (6), each report filed under this chapter by an
12-17 out-of-state political committee must include:
12-18 (1) the amount of political expenditures in connection
12-19 with elections in this state that in the aggregate exceed $200 and
12-20 that are made during the reporting period, the full name and
12-21 address of the persons to whom the expenditures are made, and the
12-22 dates and purposes of the expenditures;
12-23 (2) the total amount or a specific listing of the
12-24 political contributions of $200 or less accepted during the
12-25 reporting period;
12-26 (3) the total amount or a specific listing of the
12-27 political expenditures in connection with elections in this state
13-1 of $200 or less made during the reporting period;
13-2 (4) the total amount of all political contributions
13-3 accepted during the reporting period; and
13-4 (5) the total amount of all political expenditures in
13-5 connection with elections in this state made during the reporting
13-6 period.
13-7 (c) This section does not require an out-of-state political
13-8 committee that is established by a state political party as the
13-9 party's primary political committee for making political
13-10 contributions and political expenditures to report a contribution
13-11 to a similar political committee established by a different state
13-12 political party.
13-13 (d) A report under this chapter is considered to be in
13-14 compliance with Paragraph (A) of Subsection (a)(1) if the person
13-15 required to file the report or the person's campaign treasurer
13-16 shows that the person has used best efforts, as provided by Section
13-17 254.0312, to request, maintain, and report the information required
13-18 by that paragraph.
13-19 (e) If no reportable activity occurs during a reporting
13-20 period, the person required to file a report shall indicate that
13-21 fact in the report.
13-22 (f) In this section, "child" means a person under 18 years
13-23 of age who:
13-24 (1) is not and has not been married; and
13-25 (2) has not had the disabilities of minority removed
13-26 for general purposes.
13-27 SECTION 12. Section 254.0311, Election Code, is amended by
14-1 amending Subsections (b)-(h) and adding Subsection (i) to read as
14-2 follows:
14-3 (b) A report filed under this section must include:
14-4 (1) the amount of contributions from each person,
14-5 other than a caucus member, that in the aggregate exceed $200 [$50]
14-6 and that are accepted during the reporting period by the
14-7 legislative caucus, the full name and address of the person making
14-8 the contributions, and the dates of the contributions and:
14-9 (A) if the person making the contributions is an
14-10 individual, the individual's principal occupation or job title and
14-11 the full name of the individual's employer, if any;
14-12 (B) if the person making the contributions is a
14-13 child, the full name and address of each of the person's parents;
14-14 and
14-15 (C) if the contributions are in-kind
14-16 contributions, a description of the property or services
14-17 contributed;
14-18 (2) the amount of loans that are made during the
14-19 reporting period to the legislative caucus [and that in the
14-20 aggregate exceed $50], the dates the loans are made, the interest
14-21 rate, the maturity date, the type of collateral for the loans, if
14-22 any, the full name and address of the person or financial
14-23 institution making the loans, the full name and address, principal
14-24 occupation, and name of the employer of each guarantor of the
14-25 loans, the amount of the loans guaranteed by each guarantor, and
14-26 the aggregate principal amount of all outstanding loans as of the
14-27 last day of the reporting period;
15-1 (3) the amount of expenditures that in the aggregate
15-2 exceed $200 [$50] and that are made during the reporting period,
15-3 the full name and address of the persons to whom the expenditures
15-4 are made, and the dates and purposes of the expenditures;
15-5 (4) the total amount or a specific listing of
15-6 contributions of $200 [$50] or less accepted from persons other
15-7 than caucus members and the total amount or a specific listing of
15-8 expenditures of $200 [$50] or less made during the reporting
15-9 period; and
15-10 (5) the total amount of all contributions accepted,
15-11 including total contributions from caucus members, and the total
15-12 amount of all expenditures made during the reporting period.
15-13 (c) A report under this section is considered to be in
15-14 compliance with Paragraph (A) of Subsection (b)(1) if the
15-15 legislative caucus shows that the caucus has used best efforts, as
15-16 provided by Section 254.0312, to request, maintain, and report the
15-17 information required by that paragraph.
15-18 (d) If no reportable activity occurs during a reporting
15-19 period, the legislative caucus shall indicate that fact in the
15-20 report.
15-21 (e) [(d)] A legislative caucus shall file with the
15-22 commission two reports for each year.
15-23 (f) [(e)] The first report shall be filed not later than
15-24 July 15. The report covers the period beginning January 1 or the
15-25 day the legislative caucus is organized, as applicable, and
15-26 continuing through June 30.
15-27 (g) [(f)] The second report shall be filed not later than
16-1 January 15. The report covers the period beginning July 1 or the
16-2 day the legislative caucus is organized, as applicable, and
16-3 continuing through December 31.
16-4 (h) [(g)] A legislative caucus shall maintain a record of
16-5 all reportable activity under this section and shall preserve the
16-6 record for at least two years beginning on the filing deadline for
16-7 the report containing the information in the record.
16-8 (i) [(h)] In this section:
16-9 (1) "Child" has the meaning assigned by Section
16-10 254.031.
16-11 (2) "Legislative [, "legislative] caucus" has the
16-12 meaning assigned by Section 253.0341.
16-13 SECTION 13. Subchapter B, Chapter 254, Election Code, is
16-14 amended by adding Sections 254.0312 and 254.0313 to read as
16-15 follows:
16-16 Sec. 254.0312. BEST EFFORTS. (a) A person required to file
16-17 a report under this chapter is considered to have used best efforts
16-18 to request, maintain, and report the information required by
16-19 Paragraph (A) of Section 254.031(a)(1) or Paragraph (A) of Section
16-20 254.0311(b)(1) if the person or the person's campaign treasurer
16-21 complies with this section.
16-22 (b) Each written solicitation for political contributions or
16-23 contributions to a legislative caucus from an individual must
16-24 include:
16-25 (1) a clear request for the individual's full name and
16-26 address, the individual's principal occupation or job title, and
16-27 the full name of the individual's employer; and
17-1 (2) an accurate statement of state law regarding the
17-2 collection and reporting of individual contributor information,
17-3 such as:
17-4 (A) "State law requires (a candidate,
17-5 officeholder, political committee, or legislative caucus, as
17-6 applicable) to use best efforts to request and report the full name
17-7 and address, principal occupation or job title, and full name of
17-8 employer of individuals whose contributions exceed $200 in a
17-9 reporting period."; or
17-10 (B) "To comply with state law, (a candidate,
17-11 officeholder, political committee, or legislative caucus, as
17-12 applicable) must use best efforts to request, maintain, and report
17-13 the full name and address, principal occupation or job title, and
17-14 full name of employer of individuals whose contributions exceed
17-15 $200 in a reporting period."
17-16 (c) Instead of the request and statement required by
17-17 Subsection (b), a person may use any disclosure containing a
17-18 similar request and statement that has been approved by the Federal
17-19 Election Commission.
17-20 (d) For each political contribution or contribution to a
17-21 legislative caucus received from an individual that, when
17-22 aggregated with all other such contributions received from the
17-23 individual during the reporting period, exceeds $200 and for which
17-24 the information required by Paragraph (A) of Section 254.031(a)(1)
17-25 or Paragraph (A) of Section 254.0311(b)(1) is not provided, the
17-26 person must make at least one oral or written request for the
17-27 missing information. A request under this subsection:
18-1 (1) must be made not later than the 30th day after the
18-2 date the contribution is received;
18-3 (2) must include a clear and conspicuous statement
18-4 that complies with Subsection (b) or (c);
18-5 (3) if made orally, must be documented in writing; and
18-6 (4) may not be made in conjunction with a solicitation
18-7 for an additional contribution.
18-8 (e) A person who receives information required by Paragraph
18-9 (A) of Section 254.031(a)(1) or Paragraph (A) of Section
18-10 254.0311(b)(1) after the filing deadline for the report on which
18-11 the contribution is reported must include the missing information
18-12 on the next report the person is required to file under this
18-13 chapter.
18-14 Sec. 254.0313. REPORTING BY OUT-OF-STATE POLITICAL
18-15 COMMITTEE. (a) An out-of-state political committee that files
18-16 reports with the Federal Election Commission is not required to
18-17 file reports under this chapter. Not later than the last day
18-18 prescribed by this chapter for filing a report that an out-of-state
18-19 committee covered by this subsection is required to file, the
18-20 committee shall provide to the Texas Ethics Commission information
18-21 necessary to locate the committee's report covering that reporting
18-22 period on the Federal Election Commission's Internet website. The
18-23 Texas Ethics Commission shall promptly place on the commission's
18-24 Internet website a link to that report.
18-25 (b) An out-of-state political committee that does not file
18-26 reports with the Federal Election Commission shall comply with this
18-27 chapter in the same manner as any other political committee.
19-1 SECTION 14. Sections 254.038(a)-(c), Election Code, are
19-2 amended to read as follows:
19-3 (a) In addition to other reports required by this chapter,
19-4 the following persons shall file additional reports during the
19-5 period beginning the ninth day before election day and ending at 5
19-6 p.m. [12 noon] on the [second] day before election day:
19-7 (1) a candidate for statewide office, state senator,
19-8 state representative, or member, State Board of Education, who has
19-9 an opponent whose name is to appear on the ballot and who accepts
19-10 political contributions from a person that in the aggregate exceed
19-11 $1,000 during that reporting period; and
19-12 (2) [a candidate for state representative who has an
19-13 opponent whose name is to appear on the ballot and who accepts
19-14 political contributions from a person that in the aggregate exceed
19-15 $200 during that reporting period;]
19-16 [(3)] a specific-purpose committee for supporting or
19-17 opposing a candidate for an office covered by Subdivision (1)
19-18 [state senator] and that accepts political contributions from a
19-19 person that in the aggregate exceed $1,000 during that reporting
19-20 period[; and]
19-21 [(4) a specific-purpose committee for supporting or
19-22 opposing a candidate for state representative and that accepts
19-23 political contributions from a person that in the aggregate exceed
19-24 $200 during that reporting period].
19-25 (b) Each report required by this section must include the
19-26 amount of the political contributions specified by Subsection (a),
19-27 the full name and address of the person making the contributions,
20-1 and the dates of the contributions.
20-2 (c) A report under this section shall be filed by telegram
20-3 or telephonic facsimile machine, [or] by hand, or electronically
20-4 with the commission not later than 24 [48] hours after the
20-5 contribution is accepted.
20-6 SECTION 15. Section 254.039(a), Election Code, is amended to
20-7 read as follows:
20-8 (a) In addition to other reports required by this chapter, a
20-9 general-purpose committee that makes direct campaign expenditures
20-10 supporting or opposing either a single candidate that in the
20-11 aggregate exceed $1,000 or a group of candidates that in the
20-12 aggregate exceed $15,000 during the period beginning the ninth day
20-13 before election day and ending at 5 p.m. [12 noon] on the [second]
20-14 day before election day shall file a report by telegram or
20-15 telephonic facsimile machine, [or] by hand, or electronically with
20-16 the commission not later than 24 [48] hours after the expenditure
20-17 is made.
20-18 SECTION 16. Section 254.0401, Election Code, is amended to
20-19 read as follows:
20-20 Sec. 254.0401. AVAILABILITY OF ELECTRONIC REPORTS ON
20-21 INTERNET. (a) The [Except as provided by Subsection (b), the]
20-22 commission shall make each report filed with the commission under
20-23 Section 254.036(b) available to the public on the Internet not
20-24 later than the second business day after the date the report is
20-25 filed.
20-26 (b) [Except as otherwise provided by this subsection, the
20-27 commission may not make a report filed with the commission under
21-1 Section 254.036(b) for a reporting deadline by any candidate for a
21-2 particular office or by a specific-purpose committee for supporting
21-3 or opposing only one candidate for a particular office available to
21-4 the public on the Internet until each candidate for that office and
21-5 each specific-purpose committee for supporting or opposing only one
21-6 candidate for that office, other than a candidate or committee to
21-7 which Section 254.036(c) or (d) applies, has filed a report for
21-8 that reporting deadline. Regardless of whether each candidate for
21-9 a particular office and each specific-purpose committee for
21-10 supporting or opposing only one candidate for that office has filed
21-11 a report for a filing deadline, the commission shall make each
21-12 report in connection with that office available on the Internet and
21-13 by any other electronic means on:]
21-14 [(1) the 21st day after the date of the filing
21-15 deadline, for a report other than a report required to be filed
21-16 under Section 254.064(c); or]
21-17 [(2) the fourth day after the date of the filing
21-18 deadline, for a report required to be filed under Section
21-19 254.064(c).]
21-20 [(c) Subsection (b) does not apply to a report filed under
21-21 Section 254.038.]
21-22 [(d)] The access allowed by this section to reports is in
21-23 addition to the public's access to the information through other
21-24 electronic or print distribution of the information.
21-25 (c) [(e)] Before making a report filed under Section
21-26 254.036(b) available on the Internet, the commission shall remove
21-27 each portion, other than street name, city, state, and zip code, of
22-1 the address of a person listed as having made a political
22-2 contribution to the person filing the report. The address
22-3 information removed must remain available on the report maintained
22-4 in the commission's office but may not be available electronically
22-5 at that office.
22-6 SECTION 17. Subchapter B, Chapter 254, Election Code, is
22-7 amended by adding Section 254.0403 to read as follows:
22-8 Sec. 254.0403. INDEX OF CONTRIBUTOR INFORMATION. (a) The
22-9 commission shall compile and maintain an index of information about
22-10 persons making political contributions.
22-11 (b) The commission shall compile the index from reports
22-12 filed with the commission under this chapter. The index must
22-13 include, for each person who makes a political contribution to a
22-14 candidate, officeholder, or political committee required to file
22-15 reports under this chapter with the commission:
22-16 (1) the person's full name;
22-17 (2) the street name, city, state, and zip code
22-18 portions of the person's address; and
22-19 (3) for each political contribution made by the
22-20 person, the date and amount of the contribution and the name of the
22-21 candidate, officeholder, or political committee to whom the
22-22 contribution was made.
22-23 (c) The commission shall make the index available on the
22-24 Internet.
22-25 SECTION 18. Section 254.041, Election Code, is amended by
22-26 amending Subsections (b) and (c) and adding Subsection (d) to read
22-27 as follows:
23-1 (b) Except as provided by Subsection (c) or (d), an offense
23-2 under this section is a Class C misdemeanor.
23-3 (c) A violation of Subsection (a)(1) or (a)(3) by a person
23-4 who is the campaign treasurer of a political committee is a Class B
23-5 misdemeanor if the person, with knowledge of the committee's legal
23-6 obligation to file, intentionally fails:
23-7 (1) to file the report on time; or
23-8 (2) to include in the report information that:
23-9 (A) is required by this title to be included;
23-10 and
23-11 (B) is substantial and material to a complete
23-12 understanding of the committee's reportable activity under this
23-13 title.
23-14 (d) A violation of Subsection (a)(3) [(a)(2)] by a candidate
23-15 or officeholder is a Class A misdemeanor if the report fails to
23-16 include information required by Section 254.061(3) or Section
23-17 254.091(2), as applicable.
23-18 SECTION 19. Subchapter B, Chapter 254, Election Code, is
23-19 amended by adding Section 254.043 to read as follows:
23-20 Sec. 254.043. CONTRIBUTION OR EXPENDITURE PROHIBITED WHEN
23-21 REPORT OUTSTANDING. (a) A person who does not file a report
23-22 required under this chapter may not knowingly accept a political
23-23 contribution or knowingly make a political expenditure during the
23-24 period:
23-25 (1) beginning on the day after the date on which the
23-26 report is required to be filed; and
23-27 (2) ending on the date the report is filed.
24-1 (b) A political committee whose campaign treasurer is also
24-2 the campaign treasurer of a political committee that does not file
24-3 a report required under this chapter may not knowingly accept a
24-4 political contribution or knowingly make a political expenditure
24-5 during the period prescribed by Subsection (a).
24-6 (c) A candidate who violates this section is liable for a
24-7 civil penalty of $100 for each day during the period prescribed by
24-8 Subsection (a).
24-9 (d) The campaign treasurer of a political committee that
24-10 violates this section is liable for a civil penalty of $500 for
24-11 each day during the period prescribed by Subsection (a).
24-12 (e) A person who violates this section commits an offense.
24-13 An offense under this section is a Class B misdemeanor.
24-14 SECTION 20. Section 254.121, Election Code, is amended to
24-15 read as follows:
24-16 Sec. 254.121. ADDITIONAL CONTENTS OF REPORTS. In addition
24-17 to the contents required by Section 254.031, each report by a
24-18 campaign treasurer of a specific-purpose committee must include:
24-19 (1) the committee's full name and address;
24-20 (2) the full name, residence or business street
24-21 address, and telephone number of the committee's campaign
24-22 treasurer;
24-23 (3) the identity and date of the election for which
24-24 the report is filed, if applicable;
24-25 (4) the name of each candidate and each measure
24-26 supported or opposed by the committee, indicating for each whether
24-27 the committee supports or opposes;
25-1 (5) the name of each officeholder assisted by the
25-2 committee;
25-3 (6) the amount of each political expenditure in the
25-4 form of a political contribution that is made to a candidate,
25-5 officeholder, or another political committee and that is returned
25-6 to the committee during the reporting period, the name of the
25-7 person to whom the expenditure was originally made, and the date it
25-8 is returned;
25-9 (7) on a separate page or pages of the report, the
25-10 identification of any payment from political contributions made to
25-11 a business in which a [the] candidate or officeholder supported or
25-12 assisted by the committee has a participating interest of more than
25-13 10 percent, holds a position on the governing body of the business,
25-14 or serves as an officer of the business; and
25-15 (8) on a separate page or pages of the report, the
25-16 identification of any contribution from a corporation or labor
25-17 organization made and accepted under Subchapter D, Chapter 253.
25-18 SECTION 21. Section 254.151, Election Code, is amended to
25-19 read as follows:
25-20 Sec. 254.151. ADDITIONAL CONTENTS OF REPORTS. In addition
25-21 to the contents required by Section 254.031, each report by a
25-22 campaign treasurer of a general-purpose committee must include:
25-23 (1) the committee's full name and address;
25-24 (2) the full name, residence or business street
25-25 address, and telephone number of the committee's campaign
25-26 treasurer;
25-27 (3) the identity and date of the election for which
26-1 the report is filed, if applicable;
26-2 (4) the name of each identified candidate or measure
26-3 or classification by party of candidates supported or opposed by
26-4 the committee, indicating whether the committee supports or opposes
26-5 each listed candidate, measure, or classification by party of
26-6 candidates;
26-7 (5) the name of each identified officeholder or
26-8 classification by party of officeholders assisted by the committee;
26-9 (6) [the principal occupation of each person from whom
26-10 political contributions that in the aggregate exceed $50 are
26-11 accepted during the reporting period;]
26-12 [(7)] the amount of each political expenditure in the
26-13 form of a political contribution made to a candidate, officeholder,
26-14 or another political committee that is returned to the committee
26-15 during the reporting period, the name of the person to whom the
26-16 expenditure was originally made, and the date it is returned; [and]
26-17 (7) [(8)] on a separate page or pages of the report,
26-18 the identification of any contribution from a corporation or labor
26-19 organization made and accepted under Subchapter D, Chapter 253; and
26-20 (8) on a separate page or pages of the report, the
26-21 identification of any political contribution accepted by the
26-22 committee that is intended by the person making the contribution to
26-23 be used by the committee for administrative, overhead, or
26-24 fund-raising expenses, unless the contribution is disclosed
26-25 elsewhere in the report.
26-26 SECTION 22. Section 254.156, Election Code, is amended to
26-27 read as follows:
27-1 Sec. 254.156. CONTENTS OF MONTHLY REPORTS. Each monthly
27-2 report filed under this subchapter must comply with Sections
27-3 254.031, 254.0312, and 254.151, except that the maximum amount of a
27-4 political contribution, expenditure, or loan that is not required
27-5 to be individually reported is $30 [$10] in the aggregate.
27-6 SECTION 23. Section 254.203(a), Election Code, is amended to
27-7 read as follows:
27-8 (a) A person may not retain political contributions covered
27-9 by this title, assets purchased with the contributions, or interest
27-10 and other income earned on the contributions for more than six
27-11 years after the later of:
27-12 (1) the date the person [either] ceases to be an
27-13 officeholder; or
27-14 (2) the date of the most recent election in which the
27-15 person was a candidate [or files a final report under this chapter,
27-16 whichever is later].
27-17 SECTION 24. Section 254.204(a), Election Code, is amended to
27-18 read as follows:
27-19 (a) At the end of the [six-year] period prescribed by
27-20 Section 254.203, the former officeholder or candidate shall remit
27-21 any unexpended political contributions to one or more of the
27-22 following:
27-23 (1) the political party with which the person was
27-24 affiliated when the person's name last appeared on a ballot;
27-25 (2) a candidate or political committee;
27-26 (3) the comptroller [of public accounts] for deposit
27-27 in the state treasury [State Treasury];
28-1 (4) one or more persons from whom political
28-2 contributions were received, in accordance with Subsection (d);
28-3 (5) a recognized tax-exempt, charitable organization
28-4 formed for educational, religious, or scientific purposes; or
28-5 (6) a public or private postsecondary educational
28-6 institution or an institution of higher education as defined by
28-7 Section 61.003 [61.003(8)], Education Code, solely for the purpose
28-8 of assisting or creating a scholarship program.
28-9 SECTION 25. Section 254.205(a), Election Code, is amended to
28-10 read as follows:
28-11 (a) Not later than the 30th day after the date the
28-12 [six-year] period prescribed by Section 254.203 ends, the person
28-13 required to dispose of unexpended political contributions shall
28-14 file a report of the disposition.
28-15 SECTION 26. Section 255.001, Election Code, is amended by
28-16 amending Subsections (a) and (c) and adding Subsection (d) to read
28-17 as follows:
28-18 (a) A person may not knowingly enter into a contract or
28-19 other agreement to print, copy, publish, or broadcast political
28-20 advertising that does not indicate in the advertising:
28-21 (1) that it is political advertising; and
28-22 (2) except as provided by Subsection (c), [the full
28-23 name of] either:
28-24 (A) the full name of the candidate,
28-25 officeholder, or political committee on whose behalf the
28-26 advertising is printed, copied, published, or broadcast and the
28-27 full name and address of the person's campaign treasurer, or, if
29-1 the person is an officeholder who does not have a campaign
29-2 treasurer appointment on file, the full address of the
29-3 officeholder; or
29-4 (B) the full name and address of the candidate,
29-5 officeholder, or political committee on whose behalf the
29-6 advertising is printed, copied, published, or broadcast [the
29-7 individual who personally entered into the contract or agreement
29-8 with the printer, publisher, or broadcaster or the person that
29-9 individual represents; and]
29-10 [(3) in the case of advertising that is printed or
29-11 published, the address of either the individual who personally
29-12 entered into the agreement with the printer or publisher or the
29-13 person that individual represents].
29-14 (c) A person is not required to state the address of a
29-15 campaign treasurer, candidate, officeholder, or political committee
29-16 in a political advertisement broadcast on radio.
29-17 (d) A person who violates this section commits an offense.
29-18 An offense under this section is a Class A misdemeanor.
29-19 SECTION 27. Chapter 255, Election Code, is amended by adding
29-20 Section 255.009 to read as follows:
29-21 Sec. 255.009. EXPENDITURES FOR EXPRESS ADVOCACY.
29-22 (a) Advertising that contains express advocacy is presumed to be
29-23 political advertising made for the purpose of influencing the
29-24 election of a candidate.
29-25 (b) A person who makes or authorizes an expenditure for
29-26 advertising that is presumed under Subsection (a) to be political
29-27 advertising may file with the commission a signed affidavit stating
30-1 that the expenditure was not made or authorized with intent to
30-2 influence the election of a candidate.
30-3 (c) The commission shall:
30-4 (1) determine by a preponderance of the evidence
30-5 whether an expenditure as to which the commission receives an
30-6 affidavit under Subsection (b) was made or authorized with the
30-7 intent to influence the election of a candidate; and
30-8 (2) notify the person submitting the affidavit of the
30-9 commission's determination.
30-10 SECTION 28. Sections 251.005, 253.032, 253.042(g), and
30-11 253.100(d), Election Code, are repealed.
30-12 SECTION 29. (a) Section 253.031, Election Code, as amended
30-13 by this Act, applies only to a political contribution accepted or
30-14 political expenditure made by an out-of-state political committee,
30-15 as that term is defined by Section 251.001, Election Code, on or
30-16 after September 1, 2001. A political contribution accepted or a
30-17 political expenditure made by an out-of-state political committee
30-18 before September 1, 2001, is governed by the law in effect at the
30-19 time the contribution was accepted or expenditure was made, and the
30-20 former law is continued in effect for that purpose.
30-21 (b) Sections 253.042 and 253.162, Election Code, as amended
30-22 by this Act, apply only to repayment of a loan or extension of
30-23 credit that is made on or after September 1, 2001. The repayment
30-24 of a loan or extension of credit that was made before September 1,
30-25 2001, is governed by the law in effect on the date the loan or
30-26 extension of credit was made, and the former law is continued in
30-27 effect for that purpose.
31-1 (c) Section 253.098, Election Code, as amended by this Act,
31-2 applies only to the appearance of a candidate at a meeting of the
31-3 stockholders or members of a corporation or labor organization or
31-4 of the families of stockholders or members of a corporation or
31-5 labor organization that is made on or after September 1, 2001. The
31-6 appearance of a candidate at a meeting of the stockholders or
31-7 members of a corporation or labor organization or of the families
31-8 of stockholders or members of a corporation or labor organization
31-9 that is made before September 1, 2001, is governed by the law in
31-10 effect at the time the appearance was made, and the former law is
31-11 continued in effect for that purpose.
31-12 (d) Chapter 254, Election Code, as amended by this Act,
31-13 applies only to the reporting of a political contribution accepted
31-14 or political expenditure made on or after September 1, 2001. The
31-15 reporting of a political contribution accepted or a political
31-16 expenditure made before that date is governed by the law in effect
31-17 at the time the contribution or expenditure was accepted or made,
31-18 and the former law is continued in effect for that purpose.
31-19 (e) Subchapter H, Chapter 254, Election Code, as amended by
31-20 this Act, applies only to a person who is a candidate, as that term
31-21 is defined by Section 251.001, Election Code, or an officeholder
31-22 subject to Title 15, Election Code, on September 1, 2001. A person
31-23 who is a former candidate or former officeholder on September 1,
31-24 2001, is subject to Subchapter H, Chapter 254, Election Code, as
31-25 that subchapter existed immediately before amendment by this Act,
31-26 and the former law is continued in effect for that purpose.
31-27 (f) Notwithstanding Section 254.203, Election Code, as that
32-1 section existed before amendment by this Act, a person who ceased
32-2 to be an officeholder or who was last a candidate in an election
32-3 before September 1, 1995, shall, not later than January 1, 2002,
32-4 dispose of unexpended political contributions, assets purchased
32-5 with political contributions, and interest or other income earned
32-6 on political contributions in compliance with Section 254.203,
32-7 Election Code, as amended by this Act. A person who ceased to be
32-8 an officeholder or candidate on or after September 1, 1995, shall
32-9 dispose of unexpended political contributions, assets purchased
32-10 with political contributions, and interest or other income earned
32-11 on political contributions in compliance with Section 254.203,
32-12 Election Code, as amended by this Act, regardless of whether the
32-13 person has filed a final report under Chapter 254, Election Code.
32-14 (g) The changes in law made to Section 255.001, Election
32-15 Code, by this Act apply only to an offense committed on or after
32-16 September 1, 2001. For the purposes of this section, an offense is
32-17 committed before September 1, 2001, if any element of the offense
32-18 occurs before that date.
32-19 (h) An offense under Section 255.001, Election Code, that is
32-20 committed before September 1, 2001, is covered by the law in effect
32-21 when the offense was committed, and the former law is continued in
32-22 effect for that purpose.
32-23 SECTION 30. This Act takes effect September 1, 2001.