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.