By Gallego H.B. No. 3 77R5260 ESH-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to limits on political contributions to and direct 1-3 campaign expenditures made on behalf of certain candidates, 1-4 officeholders, and political committees; providing civil penalties. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Chapter 253, Election Code, is amended by adding 1-7 Subchapter G to read as follows: 1-8 SUBCHAPTER G. CONTRIBUTION LIMITS FOR 1-9 LEGISLATIVE OR EXECUTIVE OFFICE 1-10 Sec. 253.201. APPLICABILITY OF SUBCHAPTER. This subchapter 1-11 applies only to a political contribution or direct campaign 1-12 expenditure in connection with: 1-13 (1) a statewide office in the executive branch; 1-14 (2) the office of state senator; 1-15 (3) the office of state representative; or 1-16 (4) the office of member, State Board of Education. 1-17 Sec. 253.202. CONTRIBUTION LIMITS. (a) Except as provided 1-18 by Subsection (c), a person may not knowingly make or authorize 1-19 political contributions to a candidate or officeholder that in the 1-20 aggregate exceed the following limits in a calendar year: 1-21 (1) for a statewide office, $25,000; 1-22 (2) for the office of state senator, $10,000; 1-23 (3) for the office of state representative, $5,000; or 1-24 (4) for the office of member, State Board of 2-1 Education, $10,000. 2-2 (b) A person may not knowingly accept a political 2-3 contribution, and shall refuse a political contribution that is 2-4 received, in violation of Subsection (a). 2-5 (c) This section does not apply to a political contribution 2-6 made by the principal political committee of the state executive 2-7 committee of a political party. 2-8 (d) A person who violates this section is liable for a civil 2-9 penalty not to exceed three times the amount of the political 2-10 contributions made or accepted in violation of this section. 2-11 Sec. 253.203. CONTRIBUTION TO CERTAIN COMMITTEES CONSIDERED 2-12 CONTRIBUTION TO CANDIDATE OR OFFICEHOLDER. For purposes of Section 2-13 253.202, a political contribution to a specific-purpose committee 2-14 for the purpose of supporting a candidate, opposing the candidate's 2-15 opponent, or assisting the candidate as an officeholder is 2-16 considered to be a contribution to the candidate or officeholder. 2-17 Sec. 253.204. CERTAIN DIRECT CAMPAIGN EXPENDITURES 2-18 CONSIDERED CONTRIBUTION TO CANDIDATE. For purposes of Section 2-19 253.202, a direct campaign expenditure is considered to be a 2-20 campaign contribution to a candidate if it is made with the 2-21 cooperation or prior consent of, in consultation with, or at the 2-22 suggestion of: 2-23 (1) the candidate; 2-24 (2) a specific-purpose committee for supporting the 2-25 candidate or opposing the candidate's opponent; or 2-26 (3) a person acting with the candidate's knowledge and 2-27 consent. 3-1 Sec. 253.205. NOTICE TO CERTAIN CANDIDATES OR OFFICEHOLDERS 3-2 OF INTENT TO ACCEPT CONTRIBUTIONS OR MAKE EXPENDITURES. (a) The 3-3 campaign treasurer of a specific-purpose committee that intends to 3-4 accept political contributions or make political expenditures for 3-5 the purpose of supporting a candidate for an office to which this 3-6 subchapter applies, opposing such a candidate's opponent, or 3-7 assisting such a candidate as an officeholder shall deliver written 3-8 notice of the committee's intent to the affected candidate or 3-9 officeholder. 3-10 (b) The notice must include the full name and address of the 3-11 specific-purpose committee and of its campaign treasurer. 3-12 (c) The notice must be delivered not later than the later 3-13 of: 3-14 (1) the date the committee files its campaign 3-15 treasurer appointment; or 3-16 (2) the third day after the date the committee 3-17 determines that it intends to accept political contributions or 3-18 make political expenditures for which notice under this section is 3-19 required. 3-20 (d) A campaign treasurer who violates this section is liable 3-21 for a civil penalty in an amount not to exceed three times the 3-22 political contributions accepted or political expenditures made for 3-23 a purpose described by Subsection (a) before notice is delivered 3-24 to the affected candidate or officeholder. 3-25 Sec. 253.206. NOTICE TO CANDIDATE, OFFICEHOLDER, OR 3-26 COMMITTEE OF RECEIPT OF CONTRIBUTION. (a) The campaign treasurer 3-27 of a specific-purpose committee that receives a political 4-1 contribution or makes a direct campaign expenditure that is 4-2 considered under Section 253.203 or 253.204 to be a contribution to 4-3 a candidate or officeholder shall, not later than the fifth day 4-4 after the date the contribution is received or the expenditure is 4-5 made, deliver written notice of that fact to the affected candidate 4-6 or officeholder. 4-7 (b) A candidate or officeholder who receives a political 4-8 contribution covered by Section 253.202 shall, not later than the 4-9 fifth day after the date the contribution is received, deliver 4-10 written notice of that fact to the campaign treasurer of each 4-11 specific-purpose committee that notifies the candidate or 4-12 officeholder under Section 253.205 that the committee intends to 4-13 accept political contributions or make political expenditures on 4-14 the candidate's or officeholder's behalf. 4-15 (c) A notice under this section must include: 4-16 (1) the full name and address of the person receiving 4-17 the political contribution and of the person's campaign treasurer, 4-18 if any; 4-19 (2) the full name and address of the person making the 4-20 contribution; 4-21 (3) the date the contribution is received; and 4-22 (4) the amount of the contribution. 4-23 (d) A person who violates this section is liable for a civil 4-24 penalty in an amount not to exceed three times the amount of 4-25 political contributions for which notice was not provided. 4-26 Sec. 253.207. RETURN OF EXCESS CONTRIBUTION. (a) A person 4-27 who receives a political contribution the acceptance of which would 5-1 violate Section 253.202 shall return the contribution to the 5-2 contributor not later than the 10th day after the date the 5-3 contribution is received. 5-4 (b) A political contribution that is not returned as 5-5 required by this section is considered to be accepted. 5-6 SECTION 2. Section 253.003(c), Election Code, is amended to 5-7 read as follows: 5-8 (c) This section does not apply to a political contribution 5-9 made or accepted in violation of Subchapter F or G. 5-10 SECTION 3. Section 253.004(b), Election Code, is amended to 5-11 read as follows: 5-12 (b) This section does not apply to a political expenditure 5-13 made or authorized in violation of Subchapter F or G. 5-14 SECTION 4. Section 253.005(b), Election Code, is amended to 5-15 read as follows: 5-16 (b) This section does not apply to a political expenditure 5-17 that is: 5-18 (1) prohibited by Section 253.101; or 5-19 (2) made from a political contribution made in 5-20 violation of Subchapter F or G. 5-21 SECTION 5. Section 254.034, Election Code, is amended by 5-22 amending Subsection (e) and adding Subsection (f) to read as 5-23 follows: 5-24 (e) This section applies to a political contribution covered 5-25 by Subchapter G, Chapter 253, except as provided by Section 5-26 253.207. 5-27 (f) An offense under this section is a Class A misdemeanor. 6-1 SECTION 6. Subchapter C, Chapter 254, Election Code, is 6-2 amended by adding Section 254.0612 to read as follows: 6-3 Sec. 254.0612. ADDITIONAL CONTENTS OF REPORTS BY CERTAIN 6-4 CANDIDATES. In addition to the contents required by Sections 6-5 254.031 and 254.061, each report by a candidate for an office to 6-6 which Subchapter G applies must include: 6-7 (1) for each political contribution of which the 6-8 candidate receives notice under Section 253.206: 6-9 (A) the full name and address of the committee 6-10 receiving the contribution; 6-11 (B) the full name and address of the committee's 6-12 campaign treasurer; 6-13 (C) the full name and address of the person 6-14 making the contribution; 6-15 (D) the date the contribution is received; 6-16 (E) the amount of the contribution; and 6-17 (F) an indication of whether the committee 6-18 accepted or refused the contribution; and 6-19 (2) for each person from whom, in the calendar year 6-20 containing the period covered by the report, the candidate has 6-21 accepted a political contribution or a specific-purpose committee 6-22 has accepted a political contribution of which the candidate 6-23 received notice under Section 253.206, the aggregate total of 6-24 political contributions accepted by the candidate and by the 6-25 committee from the person during that calendar year. 6-26 SECTION 7. Subchapter D, Chapter 254, Election Code, is 6-27 amended by adding Section 254.0912 to read as follows: 7-1 Sec. 254.0912. ADDITIONAL CONTENTS OF REPORTS BY CERTAIN 7-2 OFFICEHOLDERS. In addition to the contents required by Sections 7-3 254.031 and 254.091, each report by the holder of an office to 7-4 which Subchapter G applies must include the contents prescribed by 7-5 Section 254.0612. 7-6 SECTION 8. Subchapter E, Chapter 254, Election Code, is 7-7 amended by adding Section 254.1212 to read as follows: 7-8 Sec. 254.1212. ADDITIONAL CONTENTS OF REPORTS OF CERTAIN 7-9 COMMITTEES. In addition to the contents required by Sections 7-10 254.031 and 254.121, each report by a specific-purpose committee 7-11 for supporting or opposing a candidate for or assisting a holder of 7-12 an office to which Subchapter G applies must include the contents 7-13 prescribed by Section 254.0612. 7-14 SECTION 9. (a) Subchapter G, Chapter 253, Election Code, as 7-15 added by this Act, applies only to a political contribution 7-16 accepted or a political expenditure made on or after September 1, 7-17 2001. A political contribution accepted or a political expenditure 7-18 made before September 1, 2001, is governed by the law in effect at 7-19 the time the contribution was accepted or the expenditure was made 7-20 and is not aggregated with political contributions accepted or 7-21 political expenditures made on or after that date. 7-22 (b) Sections 254.0612, 254.0912, and 254.1212, Election 7-23 Code, as added by this Act, apply to the reporting of a political 7-24 contribution accepted or political expenditure made on or after 7-25 September 1, 2001. The reporting of a political contribution 7-26 accepted or political expenditure made before September 1, 2001, is 7-27 governed by the law in effect at the time the contribution was 8-1 accepted or the expenditure was made. 8-2 SECTION 10. This Act takes effect September 1, 2001.