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.