By Mowery                                              H.B. No. 552
         77R206 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 criminal
 1-5     penalties.
 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-7           SECTION 1.   Chapter 253, Election Code, is amended by adding
 1-8     Subchapter G to read as follows:
 1-9                     SUBCHAPTER G.  CONTRIBUTION LIMITS
1-10           Sec. 253.201.  CONTRIBUTION LIMITS.   (a)  Except as provided
1-11     by Subsection (d), a person may not knowingly make or authorize
1-12     political contributions to a candidate or officeholder that in the
1-13     aggregate exceed the limit prescribed by Subsection (b) with
1-14     respect to an election cycle in which the candidate or officeholder
1-15     is involved.
1-16           (b)  The contribution limits are:
1-17                 (1)  for the office of state senator, $10,000; or
1-18                 (2)  for any other office, $5,000.
1-19           (c)  A person may not knowingly accept a political
1-20     contribution, and shall refuse a political contribution that is
1-21     received, in  violation of Subsection (a).
1-22           (d)  This section does not apply to a political contribution
1-23     in connection with:
1-24                 (1)  a statewide office;
 2-1                 (2)  the office of member, State Board of Education; or
 2-2                 (3)  an office covered by Subchapter F.
 2-3           (e)  A person who violates this section commits an offense.
 2-4     An offense under this section is a Class A misdemeanor.
 2-5           (f)  In this section:
 2-6                 (1)  "Election cycle" means:
 2-7                       (A)  the general primary election, runoff primary
 2-8     election, if any, and general election for an office for which a
 2-9     primary  election is held;
2-10                       (B)  the general election and runoff election, if
2-11     any, for an office for which a primary election is not held; or
2-12                       (C)  a special election and runoff election, if
2-13     any.
2-14                 (2)  "With respect to an election cycle" means:
2-15                       (A)  with regard to a political contribution that
2-16     is designated in writing for a particular election, the election
2-17     cycle that includes the  election designated; or
2-18                       (B)  with regard to a political contribution that
2-19     is not designated in writing for a particular election or that is
2-20     designated as an  officeholder contribution, the election cycle
2-21     that includes the next election for that office occurring after the
2-22     contribution is made.
2-23           Sec. 253.202.  CONTRIBUTION TO CERTAIN COMMITTEES CONSIDERED
2-24     CONTRIBUTION TO CANDIDATE OR OFFICEHOLDER.  For purposes of Section
2-25     253.201, a political contribution to a specific-purpose committee
2-26     for the purpose of supporting a candidate, opposing the candidate's
2-27     opponent, or assisting the candidate as an officeholder is
 3-1     considered to be a contribution to the candidate or officeholder.
 3-2           Sec. 253.203.  CERTAIN DIRECT CAMPAIGN EXPENDITURES
 3-3     CONSIDERED CONTRIBUTION TO CANDIDATE.  For purposes of Section
 3-4     253.201, a direct campaign expenditure is considered to be a
 3-5     campaign contribution to a candidate if it is made with the
 3-6     cooperation or prior consent of, in consultation with, or at the
 3-7     suggestion of:
 3-8                 (1)  the candidate;
 3-9                 (2)  a specific-purpose committee for supporting the
3-10     candidate or opposing the candidate's opponent; or
3-11                 (3)  a person acting with the candidate's knowledge and
3-12     consent.
3-13           Sec. 253.204.  NOTICE TO CERTAIN CANDIDATES OR OFFICEHOLDERS
3-14     OF INTENT TO ACCEPT CONTRIBUTIONS OR MAKE EXPENDITURES.  (a)  The
3-15     campaign treasurer of a specific-purpose committee that intends to
3-16     accept political contributions or make political expenditures for
3-17     the purpose of supporting a candidate for an office to which
3-18     Section 253.201 applies, opposing such a candidate's opponent, or
3-19     assisting such a candidate as an officeholder shall deliver written
3-20     notice of the committee's intent to the candidate or officeholder. 
3-21           (b)  The notice must include the full name and address of the
3-22     specific-purpose committee and of its campaign treasurer.
3-23           (c)  The notice must be delivered not later than the later
3-24     of:
3-25                 (1)  the date the committee files its campaign
3-26     treasurer appointment; or
3-27                 (2)  the third day after the date the committee
 4-1     determines it intends to accept political contributions or make
 4-2     political expenditures for which notice under this section is
 4-3     required.
 4-4           (d)  A campaign treasurer who violates this section commits
 4-5     an offense.  An offense under this section is a Class A
 4-6     misdemeanor.
 4-7           Sec. 253.205.  NOTICE TO CANDIDATE, OFFICEHOLDER, OR
 4-8     COMMITTEE OF RECEIPT OF CONTRIBUTION.  (a)  The campaign treasurer
 4-9     of a specific-purpose committee that receives a political
4-10     contribution or makes a direct campaign expenditure that is
4-11     considered under Section 253.202 or 253.203 to be a contribution to
4-12     a candidate or officeholder shall, not later than the fifth day
4-13     after the date the contribution is received or the expenditure is
4-14     made, deliver written notice of that fact to the affected candidate
4-15     or officeholder.
4-16           (b)  A candidate or officeholder who receives a political
4-17     contribution covered by Section 253.201 shall, not later than the
4-18     fifth day after the date the contribution is received, deliver
4-19     written notice of that fact to the campaign treasurer of each
4-20     specific-purpose committee that notifies the candidate or
4-21     officeholder under Section 253.204 that the committee intends to
4-22     accept political contributions or make political expenditures on
4-23     the candidate's or officeholder's behalf.
4-24           (c)  A notice under this section must include:
4-25                 (1)  the full name and address of the person receiving
4-26     the political contribution and of the person's campaign treasurer,
4-27     if any;
 5-1                 (2)  the full name and address of the person making the
 5-2     contribution;
 5-3                 (3)  the date the contribution is received; and
 5-4                 (4)  the amount of the contribution.
 5-5           (d)  A person who violates this section commits an offense.
 5-6     An offense under this section is a Class A misdemeanor.
 5-7           Sec. 253.206.  RETURN OF EXCESS CONTRIBUTION.  (a)  A person
 5-8     who receives a political contribution the acceptance of which would
 5-9     violate Section 253.201 shall return the contribution to the
5-10     contributor not later than the 10th day after the date the
5-11     contribution is received.
5-12           (b)  A political contribution that is not returned as
5-13     required by this section is considered to be accepted.
5-14           SECTION 2.   Section 254.034, Election Code, is amended by
5-15     amending Subsection (e) and adding Subsection (f) to read as
5-16     follows:
5-17           (e)  This section applies to a political contribution covered
5-18     by Subchapter G, Chapter 253, except as provided by Section
5-19     253.206.
5-20           (f)  An offense under this section is a Class A misdemeanor.
5-21           SECTION 3.   Subchapter C, Chapter 254, Election Code, is
5-22     amended by adding Section 254.0612 to read as follows:
5-23           Sec. 254.0612.  ADDITIONAL CONTENTS OF REPORTS BY CERTAIN
5-24     CANDIDATES.  In addition to the contents required by Sections
5-25     254.031 and 254.061, each report by a candidate for an office to
5-26     which Section 253.201 applies must include for each political
5-27     contribution of which the candidate receives notice under Section
 6-1     253.205:
 6-2                 (1)  the full name and address of the committee
 6-3     receiving the contribution;
 6-4                 (2)  the full name and address of the committee's
 6-5     campaign treasurer;
 6-6                 (3)  the full name and address of the person making the
 6-7     contribution;
 6-8                 (4)  the date the contribution is received;
 6-9                 (5)  the amount of the contribution; and
6-10                 (6)  an indication of whether the committee accepted or
6-11     refused the contribution.
6-12           SECTION 4.   Subchapter D, Chapter 254, Election Code, is
6-13     amended by adding Section 254.0912 to read as follows:
6-14           Sec. 254.0912.  ADDITIONAL CONTENTS OF REPORTS BY CERTAIN
6-15     OFFICEHOLDERS.  In addition to the contents required by Sections
6-16     254.031 and 254.091, each report by the holder of an office to
6-17     which Section 253.201 applies must include the contents prescribed
6-18     by Section 254.0612.
6-19           SECTION 5.   Subchapter E, Chapter 254, Election Code, is
6-20     amended by adding Section 254.1212 to read as follows:
6-21           Sec. 254.1212.  ADDITIONAL CONTENTS OF REPORTS OF CERTAIN
6-22     COMMITTEES.  In addition to the contents required by Sections
6-23     254.031 and 254.121, each report by a specific-purpose committee
6-24     for supporting or opposing a candidate for or assisting a holder of
6-25     an office to which Section 253.201 applies must include the
6-26     contents prescribed by Section 254.0612.
6-27           SECTION 6.   (a)  This Act takes effect September 1, 2001.
 7-1           (b)  Subchapter G, Chapter 253, Election Code, as added by
 7-2     this Act, applies only to a political contribution accepted or a
 7-3     political expenditure made on or after September 1, 2001.  A
 7-4     political contribution accepted or a political expenditure made
 7-5     before September 1, 2001, is governed by the law in effect at the
 7-6     time the contribution was accepted or the expenditure was made and
 7-7     is not aggregated with political contributions accepted or
 7-8     political contributions made on or after that date.
 7-9           (c)  Sections 254.0612, 254.0912, and 254.1212, Election
7-10     Code, as added by this Act, apply to the reporting of a political
7-11     contribution accepted or political expenditure made on or after
7-12     September 1, 2001.  The reporting of a political contribution
7-13     accepted or political expenditure made before September 1, 2001, is
7-14     governed by the law in effect at the time the contribution was
7-15     accepted.