1-1 By: Gallego, et al. (Senate Sponsor - Shapiro) H.B. No. 2
1-2 (In the Senate - Received from the House April 19, 2001;
1-3 April 20, 2001, read first time and referred to Committee on State
1-4 Affairs; May 10 2001, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 7, Nays 0; May 10, 2001,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR H.B. No. 2 By: Shapiro
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the regulation of certain political contributions,
1-11 political expenditures, and political advertising; providing civil
1-12 and criminal penalties.
1-13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14 SECTION 1. Section 251.001, Election Code, is amended by
1-15 amending Subdivisions (2) and (8) and adding Subdivisions (21) and
1-16 (22) to read as follows:
1-17 (2) "Contribution" means a direct or indirect transfer
1-18 of money, goods, services, or any other thing of value and includes
1-19 an agreement made or other obligation incurred, whether legally
1-20 enforceable or not, to make a transfer. The term includes a loan
1-21 or extension of credit, other than those expressly excluded by this
1-22 subdivision, and a guarantee of a loan or extension of credit,
1-23 including a loan described by this subdivision. The term does not
1-24 include:
1-25 (A) a loan made in the due course of business by
1-26 a corporation that is legally engaged in the business of lending
1-27 money and that has conducted the business continuously for more
1-28 than one year before the loan is made; [or]
1-29 (B) an expenditure required to be reported under
1-30 Section 305.006(b), Government Code; or
1-31 (C) the value of services provided without
1-32 compensation by any individual who volunteers on behalf of a
1-33 candidate, officeholder, or political committee.
1-34 (8) "Direct campaign expenditure" means an expenditure
1-35 by a person for, or related to, political advertising that contains
1-36 express advocacy and is not made with the cooperation of, in
1-37 consultation with, in concert with, or at the request or suggestion
1-38 of a candidate or officeholder or any agent or political committee
1-39 controlled by the candidate or officeholder. Political advertising
1-40 is made with the cooperation of, in consultation with, in concert
1-41 with, or at the request or suggestion of a candidate or
1-42 officeholder or any agent or political committee controlled by the
1-43 candidate or officeholder only if it is a coordinated general
1-44 public political communication as defined by this section [a
1-45 campaign expenditure that does not constitute a campaign
1-46 contribution by the person making the expenditure].
1-47 (21) "Coordinated general public political
1-48 communication" means political advertising that is:
1-49 (A) paid for by a person other than a candidate
1-50 or officeholder or a political committee controlled by the
1-51 candidate or officeholder; and
1-52 (B) created, produced, or distributed:
1-53 (i) at the explicit request or suggestion
1-54 of the candidate or officeholder or a political committee
1-55 controlled by or an authorized agent of the candidate or
1-56 officeholder;
1-57 (ii) after the candidate or officeholder
1-58 or the candidate's agent has exercised control or decision-making
1-59 authority over the content, timing, location, mode, intended
1-60 audience, volume of distribution, or frequency of placement of the
1-61 communication; or
1-62 (iii) after substantial discussion or
1-63 negotiation between the creator, producer, or distributor of the
1-64 communication, or the person paying for the communication, and the
2-1 candidate or officeholder or a political committee controlled by or
2-2 authorized agent of the candidate or officeholder regarding the
2-3 content, timing, location, mode, intended audience, volume of
2-4 distribution, or frequency of placement of the communication, the
2-5 result of which is substantial collaboration or agreement amounting
2-6 to a partnership or joint venture between the other person and the
2-7 candidate or officeholder with respect to the political
2-8 communication.
2-9 (22) "Express advocacy" means a communication that
2-10 advocates the election or defeat of a clearly identified candidate
2-11 or officeholder or measure by containing a word or phrase such as
2-12 "vote for," "reelect," "support," "cast your ballot for," "(name of
2-13 candidate) for legislature," "(name of candidate or measure) in
2-14 2002," "vote against," "defeat," or "reject."
2-15 SECTION 2. Section 251.005, Election Code, is amended to
2-16 read as follows:
2-17 Sec. 251.005. ELECTRONIC FILING FOR OUT-OF-STATE COMMITTEES
2-18 [EXCLUDED]. (a) An out-of-state political committee that files
2-19 reports with the Federal Election Commission or with the election
2-20 authority of another state is not required to file such reports
2-21 with the Texas Ethics Commission if all of the committee's reports
2-22 are available electronically. An out-of-state political committee
2-23 that elects not to file reports with the Texas Ethics Commission
2-24 shall file a one-page notice with the commission stating that:
2-25 (1) the committee files reports with the Federal
2-26 Election Commission or with the election authority of another
2-27 state; and
2-28 (2) those reports include contributions or
2-29 expenditures made by the committee in connection with elections in
2-30 Texas. [An out-of-state political committee is not subject to
2-31 Chapter 252 or 254, except as provided by Subsection (b) or (c).]
2-32 (b) A report filed with another state is not considered to
2-33 be available electronically under Subsection (a) if the Texas
2-34 Ethics Commission determines that the disclosure requirements of
2-35 the other state are less than the disclosure requirements of this
2-36 state [If an out-of-state committee decides to file a campaign
2-37 treasurer appointment under Chapter 252, at the time the
2-38 appointment is filed the committee becomes subject to this title to
2-39 the same extent as a political committee that is not an
2-40 out-of-state committee.]
2-41 [(c) If an out-of-state committee performs an activity that
2-42 removes the committee from out-of-state status as defined by
2-43 Section 251.001(15), the committee becomes subject to this title to
2-44 the same extent as a political committee that is not an
2-45 out-of-state committee].
2-46 SECTION 3. Subchapter A, Chapter 251, Election Code, is
2-47 amended by adding Section 251.010 to read as follows:
2-48 Sec. 251.010. PROTECTION OF INFORMATION. (a) Recognizing
2-49 that contributor information required to be included in reports
2-50 required by Chapter 254 is proprietary information having
2-51 substantial value, no information obtained from any reports
2-52 required to be maintained or filed under this title may, without
2-53 the express written consent of the filer, be sold or used by any
2-54 person other than the filer:
2-55 (1) for soliciting contributions for any purpose; or
2-56 (2) for any commercial purposes.
2-57 (b) The use of information that is copied or otherwise
2-58 obtained from reports filed under this title in newspapers,
2-59 magazines, books, or other similar communications is permissible if
2-60 the principal purpose of the communication is to educate the public
2-61 and not to communicate any contributor information listed on the
2-62 reports for the purpose of soliciting contributions or for other
2-63 commercial purposes.
2-64 (c) A person required to report contributions under Chapter
2-65 254 may submit up to 10 pseudonyms on each report filed in order to
2-66 protect against illegal use of names and addresses of contributors
2-67 provided that the total amount of fictitious contributions does not
2-68 exceed the greater of five percent of contributions reported or
2-69 $2,500. If a filer uses pseudonyms, the filer shall subtract the
3-1 total dollar amount of the fictitious contributions from the total
3-2 of unitemized contributions required to be reported under Section
3-3 254.031(a)(6). Any filer who uses pseudonyms shall submit a list
3-4 of the pseudonyms and amounts contributed separately to the
3-5 commission on or before the date on which the report containing the
3-6 fictitious names is filed. The commission shall exclude the list
3-7 of pseudonyms from the public records, and the list shall be kept
3-8 confidential by the commission and may not be disclosed to the
3-9 public for any reason without the express written consent of the
3-10 filer.
3-11 (d) In addition to any penalties imposed by the commission,
3-12 any person found to have violated Subsection (a) or (c) shall be
3-13 liable in damages to the person filing the report. In this
3-14 subsection, "damages" means the fair market value of the
3-15 contributor information improperly used and the reasonable
3-16 attorney's fees incurred by the filer. In addition to damages, the
3-17 person filing the report shall be entitled as a matter of right to
3-18 an injunction prohibiting a violation of this section and an order
3-19 recovering reasonable attorney's fees incurred to obtain the
3-20 injunctive relief from any district court in this state.
3-21 (e) A filer may not use this section for the purpose of
3-22 circumventing the reporting requirements of this title by
3-23 materially inflating the amount of contributions reported by the
3-24 filer.
3-25 SECTION 4. Subsection (a), Section 252.003, Election Code,
3-26 is amended to read as follows:
3-27 (a) In addition to the information required by Section
3-28 252.002, a campaign treasurer appointment by a general-purpose
3-29 committee must include:
3-30 (1) the full name, and any acronym of the name that
3-31 will be used in the name of the committee as provided by Subsection
3-32 (d), of each corporation, labor organization, or other association
3-33 or legal entity that directly establishes, administers, or controls
3-34 the committee, if applicable, or the name of each person who
3-35 determines to whom the committee makes contributions or the name of
3-36 each person who determines for what purposes the committee makes
3-37 expenditures; and
3-38 (2) [the full name and address of each general-purpose
3-39 committee to whom the committee intends to make political
3-40 contributions; and]
3-41 [(3)] the name of the committee and, if the name is an
3-42 acronym, the words the acronym represents.
3-43 SECTION 5. Subchapter A, Chapter 253, Election Code, is
3-44 amended by adding Section 253.006 to read as follows:
3-45 Sec. 253.006. COERCION PROHIBITED. (a) A person, including
3-46 a candidate, officeholder, or political committee, commits an
3-47 offense if the person uses or threatens to use physical force, job
3-48 discrimination, or financial reprisal to obtain a contribution or
3-49 other thing of value to be used to influence the result of an
3-50 election or to assist an officeholder.
3-51 (b) A candidate, officeholder, or political committee
3-52 commits an offense if the person accepts or uses money or any other
3-53 thing of value that is known by the candidate or officeholder or by
3-54 an officer of the political committee, or an individual who causes
3-55 the political committee to accept or use the money or other thing
3-56 of value, to have been obtained in violation of Subsection (a).
3-57 (c) An offense under this section is a felony of the third
3-58 degree.
3-59 SECTION 6. Section 253.031, Election Code, is amended to
3-60 read as follows:
3-61 Sec. 253.031. CONTRIBUTION AND EXPENDITURE WITHOUT CAMPAIGN
3-62 TREASURER PROHIBITED. (a) A candidate may not knowingly accept a
3-63 campaign contribution or make or authorize a campaign expenditure
3-64 at a time when a campaign treasurer appointment for the candidate
3-65 is not in effect.
3-66 (b) A political committee may not knowingly accept political
3-67 contributions totaling more than $500 or make or authorize
3-68 political expenditures totaling more than $500 at a time when a
3-69 campaign treasurer appointment for the committee is not in effect.
4-1 (c) A political committee that files its appointment of
4-2 treasurer within 30 days before an election may not knowingly make
4-3 or authorize a campaign contribution or campaign expenditure
4-4 supporting or opposing a candidate for an office specified by
4-5 Section 252.005(1) in a primary or general election unless the
4-6 committee files within 48 hours after such appointment of treasurer
4-7 a report that contains the information required by Chapter 254
4-8 covering the period through the date the committee's appointment of
4-9 [campaign] treasurer was [appointment has been] filed [not later
4-10 than the 30th day before the appropriate election day].
4-11 (d) This section does not apply to a political party's
4-12 county executive committee that accepts political contributions or
4-13 makes political expenditures, except that:
4-14 (1) a county executive committee that accepts
4-15 political contributions or makes political expenditures shall
4-16 maintain the records required by Section 254.001; and
4-17 (2) a county executive committee that accepts
4-18 political contributions or makes political expenditures that, in
4-19 the aggregate, exceed $5,000 in a calendar year shall file:
4-20 (A) a campaign treasurer appointment as required
4-21 by Section 252.001 not later than the 15th day after the date that
4-22 amount is exceeded; and
4-23 (B) the reports required by Subchapter F,
4-24 Chapter 254, including in the political committee's first report
4-25 all political contributions accepted and all political expenditures
4-26 made before the effective date of the campaign treasurer
4-27 appointment.
4-28 (e) This section does not apply to an out-of-state political
4-29 committee unless the committee meets the requirements of [is
4-30 subject to Chapter 252 under] Section 251.005.
4-31 (f) A person who violates this section commits an offense.
4-32 An offense under this section is a Class A misdemeanor.
4-33 SECTION 7. Section 253.033, Election Code, is amended to
4-34 read as follows:
4-35 Sec. 253.033. CASH CONTRIBUTIONS EXCEEDING $100 PROHIBITED;
4-36 ANONYMOUS CONTRIBUTIONS. (a) A candidate, officeholder, or
4-37 specific-purpose committee may not knowingly accept from a
4-38 contributor in a reporting period political contributions in cash
4-39 that in the aggregate exceed $100.
4-40 (b) A candidate, officeholder, or political committee that
4-41 receives an anonymous cash contribution in excess of $50 shall
4-42 promptly disburse the amount over $50 to one or more of the
4-43 entities listed in Section 254.204(a)(1), (3), (5), or (6).
4-44 Anonymous cash contributions of $50 or less may be used by the
4-45 candidate, officeholder, or political committee for any lawful
4-46 purpose.
4-47 (c) A person who violates this section commits an offense.
4-48 An offense under this section is a Class A misdemeanor.
4-49 SECTION 8. Subsections (b) and (e), Section 253.042,
4-50 Election Code, are amended to read as follows:
4-51 (b) A candidate or officeholder who accepts one or more
4-52 political contributions in the form of loans, including an
4-53 extension of credit or a guarantee of a loan or extension of
4-54 credit, from one or more persons related to the candidate or
4-55 officeholder within the second degree by affinity or consanguinity
4-56 as determined under Chapter 573, Government Code, may not use
4-57 political contributions to repay the loans in amounts that in the
4-58 aggregate exceed the amount prescribed by Subsection (a). A
4-59 candidate or officeholder may not use political contributions, in
4-60 amounts that in the aggregate exceed the amount prescribed by
4-61 Subsection (a), to repay any other loan or extension of credit for
4-62 which the candidate or officeholder is personally liable or is
4-63 obligated or that the candidate or officeholder guarantees.
4-64 (e) This section does not prohibit the payment of interest
4-65 at a commercially reasonable rate on loans covered by this section
4-66 from a financial institution. A candidate or officeholder may not
4-67 use political contributions to pay [at a commercially reasonable
4-68 rate, except that] interest on loans from a candidate's or
4-69 officeholder's personal funds or on loans from the personal funds
5-1 of any person related to the candidate or officeholder within the
5-2 second degree by affinity or consanguinity [is included in the
5-3 amount prescribed by Subsection (a), (b), or (c)].
5-4 SECTION 9. Section 253.063, Election Code, is amended to
5-5 read as follows:
5-6 Sec. 253.063. TRAVEL EXPENSE. Unreimbursed travel expenses
5-7 incurred by an individual shall not be considered a contribution or
5-8 a [A] direct campaign expenditure and shall not be reportable under
5-9 this subchapter or Chapter 254 [consisting of personal travel
5-10 expenses incurred by an individual may be made without complying
5-11 with Section 253.062(a)(1)].
5-12 SECTION 10. Section 253.098, Election Code, is amended by
5-13 amending Subsection (b) and adding Subsection (c) to read as
5-14 follows:
5-15 (b) A corporation or labor organization may make one or more
5-16 campaign expenditures from its own property for the purpose of
5-17 permitting a candidate to appear and speak at a meeting of its
5-18 directors, officers, stockholders, or members, as applicable, or of
5-19 the families of its directors, officers, stockholders, or members.
5-20 A corporation or labor organization may not make an expenditure
5-21 under this subsection for transportation or lodging.
5-22 (c) An expenditure under this section is not reportable
5-23 under Chapter 254.
5-24 SECTION 11. Subchapter D, Chapter 253, Election Code, is
5-25 amended by adding Section 253.105 to read as follows:
5-26 Sec. 253.105. CONTRIBUTION BY PARTNERSHIP OR LIMITED
5-27 LIABILITY COMPANY. This subchapter does not prohibit a political
5-28 contribution made by a partnership or limited liability company if
5-29 the contribution is not charged to the profits, interest, or
5-30 capital account of a partner or member that is a corporation
5-31 covered by Section 253.091.
5-32 SECTION 12. Section 253.162, Election Code, is amended by
5-33 amending Subsections (b), (c), and (d) and adding Subsections (e)
5-34 and (f) to read as follows:
5-35 (b) A judicial candidate or officeholder may not:
5-36 (1) use political contributions to repay a loan [who
5-37 accepts one or more political contributions in the form of loans],
5-38 including an extension of credit or a guarantee of a loan or
5-39 extension of credit, from one or more persons related to the
5-40 candidate or officeholder within the second degree by
5-41 consanguinity, as determined under [Subchapter B,] Chapter 573,
5-42 Government Code; or
5-43 (2) use political contributions, in amounts that in
5-44 the aggregate exceed the amount prescribed by Subsection (a), to
5-45 repay any other loan or extension of credit for which the candidate
5-46 or officeholder is personally liable or is obligated or that the
5-47 candidate or officeholder guarantees[, may not use political
5-48 contributions to repay the loans].
5-49 (c) The total amount of both reimbursements under Subsection
5-50 (a) and repayments under Subsection (b)(2) made by a judicial
5-51 candidate or officeholder may not exceed the amount prescribed by
5-52 Subsection (a).
5-53 (d) A person who is both a candidate and an officeholder may
5-54 reimburse the person's personal funds or repay loans from political
5-55 contributions only in one capacity.
5-56 (e) This section does not prohibit the payment of interest
5-57 at a commercially reasonable rate on loans covered by this section
5-58 from a financial institution. A judicial candidate or officeholder
5-59 may not use political contributions to pay interest on loans from a
5-60 candidate's or officeholder's personal funds or on loans from the
5-61 personal funds of any person related to the candidate or
5-62 officeholder within the second degree by affinity or consanguinity.
5-63 (f) [(d)] A person who violates this section is liable for a
5-64 civil penalty not to exceed three times the amount by which the
5-65 reimbursement made in violation of this section exceeds the
5-66 applicable limit prescribed by Subsection (a).
5-67 SECTION 13. Subsection (a), Section 254.031, Election Code,
5-68 is amended to read as follows:
5-69 (a) Except as otherwise provided by this chapter, each
6-1 report filed under this chapter must include:
6-2 (1) the amount of political contributions from each
6-3 person that in the aggregate exceed $100 [$50] and that are
6-4 accepted during the reporting period by the person or committee
6-5 required to file a report under this chapter, the full name and
6-6 address of the person making the contributions, and the dates of
6-7 the contributions, and:
6-8 (A) if the contribution is an in-kind
6-9 contribution, a description of the property or services
6-10 contributed; and
6-11 (B) with respect to contributions, other than
6-12 contributions subject to Section 254.151(9), made by any
6-13 partnership, limited liability company, professional corporation,
6-14 or professional association, the name of each partner, member, or
6-15 shareholder, as applicable, whose interest in the entity's profits
6-16 has been charged by the contribution;
6-17 (2) for each individual from whom the person or
6-18 committee required to file the report has accepted political
6-19 contributions that in the aggregate exceed $500 and that are
6-20 accepted during the reporting period:
6-21 (A) the individual's principal occupation or job
6-22 title; and
6-23 (B) the full name of the individual's employer,
6-24 if any;
6-25 (3) the original principal amount of loans that are
6-26 made during the reporting period for campaign or officeholder
6-27 purposes to the person or committee required to file the report and
6-28 that in the aggregate exceed $100 [$50], the dates the loans are
6-29 made, the interest rate, the maturity date, the type of collateral
6-30 for the loans, if any, the full name and address of the person or
6-31 financial institution making the loans, the full name and address,
6-32 principal occupation, and name of the employer of each guarantor of
6-33 the loans, the amount of the loans guaranteed by each guarantor,
6-34 and on a separate schedule the full name and address of the person
6-35 or financial institution making each loan, the date each loan was
6-36 made, the original principal amount of each loan, and the
6-37 [aggregate] principal amount of each [all] outstanding loan [loans]
6-38 as of the last day of the reporting period;
6-39 (4) [(3)] the amount of political expenditures that in
6-40 the aggregate exceed $100 [$50] and that are made during the
6-41 reporting period, the full name and address of the persons to whom
6-42 the expenditures are made, and the dates and purposes of the
6-43 expenditures;
6-44 (5) [(4)] the amount of each payment made during the
6-45 reporting period from a political contribution if the payment is
6-46 not a political expenditure, the full name and address of the
6-47 person to whom the payment is made, and the date and purpose of the
6-48 payment;
6-49 (6) [(5)] the total amount or a specific listing of
6-50 the political contributions of $100 [$50] or less accepted and the
6-51 total amount or a specific listing of the political expenditures of
6-52 $100 [$50] or less made during the reporting period;
6-53 (7) [(6)] the total amount of all political
6-54 contributions accepted and the total amount of all political
6-55 expenditures made during the reporting period; [and]
6-56 (8) [(7)] the name of each candidate or officeholder
6-57 who benefits from a direct campaign expenditure made during the
6-58 reporting period by the person or committee required to file the
6-59 report, and the office sought or held, excluding a direct campaign
6-60 expenditure that is made by the principal political committee of a
6-61 political party on behalf of a slate of two or more nominees of
6-62 that party; and
6-63 (9) the total amount of funds, including interest or
6-64 other income, maintained in one or more accounts in which political
6-65 contributions are deposited as of the last day of the reporting
6-66 period.
6-67 SECTION 14. Subchapter B, Chapter 254, Election Code, is
6-68 amended by adding Sections 254.0312 and 254.0313 to read as
6-69 follows:
7-1 Sec. 254.0312. BEST EFFORTS. (a) A person required to file
7-2 a report under this chapter is considered to have used best efforts
7-3 to obtain, maintain, and report the information required by Section
7-4 254.031(a)(2) if the person or the person's campaign treasurer
7-5 complies with this section.
7-6 (b) Each written solicitation for political contributions
7-7 from an individual must include:
7-8 (1) a request for the individual's full name and
7-9 address, the individual's principal occupation or job title, and
7-10 the full name of the individual's employer; and
7-11 (2) a statement of state law regarding the collection
7-12 and reporting of individual contributor information, such as:
7-13 (A) "State law requires (a candidate,
7-14 officeholder, or committee, as applicable) to use best efforts to
7-15 request and report the full name and address, principal occupation
7-16 or job title, and full name of employer of individuals whose
7-17 contributions exceed $500 in a reporting period."; or
7-18 (B) "To comply with state law, (a candidate,
7-19 officeholder, or committee, as applicable) must use best efforts to
7-20 request, maintain, and report the full name and address, principal
7-21 occupation or job title, and full name of employer of individuals
7-22 whose contributions exceed $500 in a reporting period."
7-23 (c) For each political contribution received from an
7-24 individual which, when aggregated with all other political
7-25 contributions received from the individual during the reporting
7-26 period, exceeds $500 and for which the information required by
7-27 Section 254.031(a)(2) is not provided, the person must make at
7-28 least one oral or written request for the missing information. A
7-29 request under this subsection:
7-30 (1) must be made not later than the 30th day after the
7-31 date the contribution is received; and
7-32 (2) may not be made in conjunction with a solicitation
7-33 for an additional political contribution.
7-34 (d) A request under Subsection (c) that is made in writing
7-35 must include a clear and conspicuous statement that complies with
7-36 Subsection (b)(2) and a preaddressed envelope or postcard for
7-37 responding to the request. A request that is made orally must be
7-38 documented in writing.
7-39 (e) A person must report any information required by Section
7-40 254.031(a)(2) that is not provided by the individual making the
7-41 contribution and that the person has in the person's records of
7-42 political contributions or previous reports under this chapter.
7-43 (f) Instead of the request and statement required by
7-44 Subsection (b), a person may use any disclosure containing a
7-45 similar request and statement that has been approved by the Federal
7-46 Election Commission.
7-47 Sec. 254.0313. REPORTING BY OUT-OF-STATE POLITICAL
7-48 COMMITTEE. Instead of the information required by Sections
7-49 254.031(a)(4), (6), and (7), each report filed under this chapter
7-50 by an out-of-state political committee must include:
7-51 (1) the amount of political expenditures in connection
7-52 with elections in this state that in the aggregate exceed $100 and
7-53 that are made during the reporting period, the full name and
7-54 address of the persons to whom the expenditures are made, and the
7-55 dates and purposes of the expenditures;
7-56 (2) the total amount or a specific listing of the
7-57 political contributions of $100 or less accepted and the total
7-58 amount or a specific listing of the political expenditures in
7-59 connection with elections in this state of $100 or less made during
7-60 the reporting period; and
7-61 (3) the total amount of all political contributions
7-62 accepted and the total amount of all political expenditures in
7-63 connection with elections in this state made during the reporting
7-64 period.
7-65 SECTION 15. Subsection (a), Section 254.038, Election Code,
7-66 is amended to read as follows:
7-67 (a) In addition to other reports required by this chapter,
7-68 the following persons shall file additional reports during the
7-69 period beginning the ninth day before election day and ending at 12
8-1 noon on the second day before election day:
8-2 (1) a candidate for statewide office who has an
8-3 opponent whose name is to appear on the ballot and who accepts
8-4 political contributions from a person that in the aggregate exceed
8-5 $1,000 during that reporting period;
8-6 (2) a candidate for state senator who has an opponent
8-7 whose name is to appear on the ballot and who accepts political
8-8 contributions from a person that in the aggregate exceed $1,000
8-9 during that reporting period;
8-10 (3) [(2)] a candidate for state representative who has
8-11 an opponent whose name is to appear on the ballot and who accepts
8-12 political contributions from a person that in the aggregate exceed
8-13 $200 during that reporting period;
8-14 (4) a specific-purpose committee for supporting or
8-15 opposing a candidate for statewide office and that accepts
8-16 political contributions from a person that in the aggregate exceed
8-17 $1,000 during that reporting period;
8-18 (5) [(3)] a specific-purpose committee for supporting
8-19 or opposing a candidate for state senator and that accepts
8-20 political contributions from a person that in the aggregate exceed
8-21 $1,000 during that reporting period; and
8-22 (6) [(4)] a specific-purpose committee for supporting
8-23 or opposing a candidate for state representative and that accepts
8-24 political contributions from a person that in the aggregate exceed
8-25 $200 during that reporting period.
8-26 SECTION 16. Subchapter B, Chapter 254, Election Code, is
8-27 amended by adding Section 254.0381 to read as follows:
8-28 Sec. 254.0381. TELEGRAM REPORT OF CERTAIN DIRECT CAMPAIGN
8-29 EXPENDITURES. (a) In addition to other reports required by this
8-30 chapter, a person or general-purpose committee that makes direct
8-31 campaign expenditures that in the aggregate exceed $5,000 during
8-32 the period beginning the ninth day before election day and ending
8-33 at 12 noon on the second day before election day shall file a
8-34 report not later than 48 hours after the expenditure is made.
8-35 (b) Each report required by this section must include the
8-36 amount of the expenditures, the full name and address and principal
8-37 occupation of the persons to whom the expenditures are made, and
8-38 the dates of the expenditures.
8-39 (c) A report under this section shall be filed by telegram
8-40 or telephonic facsimile machine or by hand.
8-41 (d) This section does not apply to a direct campaign
8-42 expenditure made by the principal political committee of a
8-43 political party.
8-44 (e) Section 254.036 does not apply to a report required by
8-45 this section.
8-46 SECTION 17. Subsection (c), Section 254.041, Election Code,
8-47 is amended to read as follows:
8-48 (c) A violation of Subsection (a)(1) [(a)(2) by a candidate
8-49 or officeholder] is a Class A misdemeanor if it is shown on the
8-50 trial of the offense that the person intentionally failed to file
8-51 the report on time with knowledge of the legal obligation to file
8-52 the report [fails to include information required by Section
8-53 254.061(3) or Section 254.091(2), as applicable].
8-54 SECTION 18. Subsection (a), Section 254.042, Election Code,
8-55 is amended to read as follows:
8-56 (a) The commission shall determine from any available
8-57 evidence whether a report, other than a telegram report under
8-58 Section 254.038 [or 254.039], required to be filed with the
8-59 commission under this chapter is late. On making that
8-60 determination, the commission shall immediately mail a notice of
8-61 the determination to the person required to file the report.
8-62 SECTION 19. Section 254.061, Election Code, is amended to
8-63 read as follows:
8-64 Sec. 254.061. ADDITIONAL CONTENTS OF REPORTS. In addition
8-65 to the contents required by Section 254.031, each report by a
8-66 candidate must include:
8-67 (1) the candidate's full name and address, the office
8-68 sought, and the identity and date of the election for which the
8-69 report is filed;
9-1 (2) the campaign treasurer's name, residence or
9-2 business street address, and telephone number; and
9-3 (3) [for each political committee from which the
9-4 candidate received notice under Section 254.128 or 254.161:]
9-5 [(A) the committee's full name and address;]
9-6 [(B) an indication of whether the committee is a
9-7 general-purpose committee or a specific-purpose committee; and]
9-8 [(C) the full name and address of the
9-9 committee's campaign treasurer;]
9-10 [(4) the full name and address of each individual
9-11 acting as a campaign treasurer of a political committee under
9-12 Section 253.062 from whom the candidate received notice under
9-13 Section 254.128 or 254.161; and]
9-14 [(5)] on a separate page or pages of the report, the
9-15 identification of any payment from political contributions made to
9-16 a business in which the candidate has a participating interest of
9-17 more than 10 percent, holds a position on the governing body of the
9-18 business, or serves as an officer of the business.
9-19 SECTION 20. Section 254.091, Election Code, is amended to
9-20 read as follows:
9-21 Sec. 254.091. ADDITIONAL CONTENTS OF REPORTS. In addition
9-22 to the contents required by Section 254.031, each report by an
9-23 officeholder must include:
9-24 (1) the officeholder's full name and address and the
9-25 office held; and
9-26 (2) [for each political committee from which the
9-27 officeholder received notice under Section 254.128 or 254.161:]
9-28 [(A) the committee's full name and address;]
9-29 [(B) an indication of whether the committee is a
9-30 general-purpose committee or a specific-purpose committee; and]
9-31 [(C) the full name and address of the
9-32 committee's campaign treasurer; and]
9-33 [(3)] on a separate page or pages of the report, the
9-34 identification of any payment from political contributions made to
9-35 a business in which the officeholder has a participating interest
9-36 of more than 10 percent, holds a position on the governing body of
9-37 the business, or serves as an officer of the business.
9-38 SECTION 21. Section 254.128, Election Code, is amended to
9-39 read as follows:
9-40 Sec. 254.128. NOTICE TO CANDIDATE AND OFFICEHOLDER OF
9-41 IN-KIND CONTRIBUTIONS [AND EXPENDITURES]. (a) If a
9-42 specific-purpose committee, other than a special-purpose committee
9-43 established, controlled, or authorized by the candidate or
9-44 officeholder, [accepts political contributions or] makes political
9-45 expenditures for a candidate or officeholder that constitute an
9-46 in-kind contribution, the committee's campaign treasurer shall
9-47 deliver written notice of that fact to the affected candidate or
9-48 officeholder not later than the end of the period covered by the
9-49 report in which the reportable activity occurs.
9-50 (b) The notice must include the full name and address of the
9-51 political committee and its campaign treasurer, [and] an indication
9-52 that the committee is a specific-purpose committee, and the amount
9-53 and nature of the contribution.
9-54 (c) A campaign treasurer commits an offense if the campaign
9-55 treasurer fails to comply with this section. An offense under this
9-56 section is a Class A misdemeanor.
9-57 SECTION 22. Section 254.151, Election Code, is amended to
9-58 read as follows:
9-59 Sec. 254.151. ADDITIONAL CONTENTS OF REPORTS. In addition
9-60 to the contents required by Section 254.031, each report by a
9-61 campaign treasurer of a general-purpose committee must include:
9-62 (1) the committee's full name and address;
9-63 (2) the full name, residence or business street
9-64 address, and telephone number of the committee's campaign
9-65 treasurer;
9-66 (3) the identity and date of the election for which
9-67 the report is filed, if applicable;
9-68 (4) the name of each identified candidate or measure
9-69 or classification by party of candidates supported or opposed by
10-1 the committee, indicating whether the committee supports or opposes
10-2 each listed candidate, measure, or classification by party of
10-3 candidates;
10-4 (5) the name of each identified officeholder or
10-5 classification by party of officeholders assisted by the committee;
10-6 (6) the principal occupation of each person from whom
10-7 political contributions that in the aggregate exceed $500 [$50] are
10-8 accepted during the reporting period;
10-9 (7) the amount of each political expenditure in the
10-10 form of a political contribution made to a candidate, officeholder,
10-11 or another political committee that is returned to the committee
10-12 during the reporting period, the name of the person to whom the
10-13 expenditure was originally made, and the date it is returned; [and]
10-14 (8) on a separate page or pages of the report, the
10-15 identification of any contribution from a corporation or labor
10-16 organization made and accepted under Subchapter D, Chapter 253; and
10-17 (9) on a separate page or pages of the report, the
10-18 identification of any contribution made to the committee that is
10-19 intended by the donor to be used by the committee for
10-20 administrative, overhead, or fund-raising expenses, unless the
10-21 contribution is otherwise disclosed elsewhere in the report.
10-22 SECTION 23. Section 254.161, Election Code, is amended to
10-23 read as follows:
10-24 Sec. 254.161. NOTICE TO CANDIDATE AND OFFICEHOLDER OF
10-25 CONTRIBUTIONS AND EXPENDITURES. If a general-purpose committee
10-26 other than the principal political committee of a political party
10-27 or a political committee established by a political party's county
10-28 executive committee [accepts political contributions or] makes
10-29 direct political expenditures for a candidate or officeholder that
10-30 constitute a contribution, notice of that fact shall be given to
10-31 the affected candidate or officeholder as provided by Section
10-32 254.128 for a specific-purpose committee.
10-33 SECTION 24. Section 257.002, Election Code, is amended by
10-34 amending Subsection (b) and adding Subsection (c) to read as
10-35 follows:
10-36 (b) Subject to Subsection (c), a [A] political party that
10-37 accepts contributions authorized by Section 253.104 shall maintain
10-38 the contributions in a separate account.
10-39 (c) Nothing in this title shall prohibit a political party
10-40 from transferring funds held in the account required to be
10-41 maintained under Subsection (b) to another account maintained by
10-42 the political party under the requirements of federal law for the
10-43 purpose of disbursing the political party's funds generally if the
10-44 political party can reasonably demonstrate that the funds are being
10-45 disbursed from the other account in compliance with applicable
10-46 federal law and for permitted uses and purposes.
10-47 SECTION 25. The following laws are repealed:
10-48 (1) Sections 253.032 and 253.037, Election Code;
10-49 (2) Subsection (d), Section 253.100, Election Code;
10-50 (3) Sections 254.032 and 254.033, Election Code; and
10-51 (4) Section 254.039, Election Code.
10-52 SECTION 26. (a) The change in law made by this Act applies
10-53 only to an offense committed on or after the effective date of this
10-54 Act. For purposes of this section, an offense is committed before
10-55 the effective date of this Act if any element of the offense occurs
10-56 before the effective date.
10-57 (b) An offense committed before the effective date of this
10-58 Act is covered by the law in effect when the offense was committed,
10-59 and the former law is continued in effect for that purpose.
10-60 SECTION 27. Sections 253.042 and 253.162, Election Code, as
10-61 amended by this Act, apply only to repayment of a loan or extension
10-62 of credit made on or after September 1, 2001. The repayment of a
10-63 loan or extension of credit made before September 1, 2001, is
10-64 governed by the law in effect on the date the loan or extension of
10-65 credit was made, and the former law is continued in effect for that
10-66 purpose.
10-67 SECTION 28. This Act takes effect September 1, 2001.
10-68 * * * * *