By Uher H.B. No. 1353
77R4979 ESH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of political contributions and political
1-3 expenditures for legislative office.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 253, Election Code, is amended by adding
1-6 Subchapter G to read as follows:
1-7 SUBCHAPTER G. CONTRIBUTIONS AND EXPENDITURES FOR
1-8 LEGISLATIVE OFFICE
1-9 Sec. 253.201. APPLICABILITY OF SUBCHAPTER. This subchapter
1-10 applies only to a political contribution or political expenditure
1-11 in connection with the office of state senator or state
1-12 representative.
1-13 Sec. 253.202. DEFINITIONS. In this subchapter:
1-14 (1) "Authorized committee" means a specific-purpose
1-15 committee for supporting only one candidate or assisting only one
1-16 candidate as an officeholder that is established or directed by the
1-17 candidate.
1-18 (2) "Coordinated contribution" means a political
1-19 contribution that is provided in coordination with a candidate.
1-20 (3) "Election cycle" means:
1-21 (A) the general primary election, runoff primary
1-22 election, if any, and general election for state and county
1-23 officers; or
1-24 (B) a special election and runoff election, if
2-1 any.
2-2 (4) "Express advocacy" means a communication that
2-3 advocates the election or defeat of a candidate by:
2-4 (A) containing a word or phrase such as "vote
2-5 for," "re-elect," "support," "cast your ballot for," "(name of
2-6 candidate) for legislature," "(name of candidate) in 2002," "vote
2-7 against," "defeat," "reject," or a campaign slogan or words that in
2-8 context can have no reasonable meaning other than to advocate the
2-9 election or defeat of one or more clearly identified candidates;
2-10 (B) referring to one or more clearly identified
2-11 candidates or officeholders in a paid advertisement that is
2-12 broadcast by a radio or television broadcast station after the 60th
2-13 day before the date of an election in which the person identified
2-14 is a candidate; or
2-15 (C) expressing unmistakable and unambiguous
2-16 support for or opposition to one or more clearly identified
2-17 candidates or officeholders when taken as a whole and with limited
2-18 reference to external events, such as proximity to an election.
2-19 (5) "Independent campaign expenditure" means an
2-20 expenditure by a person:
2-21 (A) for a communication that is express
2-22 advocacy; and
2-23 (B) that is not provided in coordination with a
2-24 candidate or a candidate's agent or a person who is coordinating
2-25 with a candidate or a candidate's agent.
2-26 (6) "Provided in coordination with a candidate"
2-27 includes:
3-1 (A) the making of a payment by a person in
3-2 cooperation, consultation, or concert with, at the request or
3-3 suggestion of, or pursuant to any general or particular
3-4 understanding with a candidate, a candidate's authorized committee,
3-5 or an agent acting on behalf of a candidate or authorized
3-6 committee;
3-7 (B) the making of a payment by a person for the
3-8 production, dissemination, distribution, or publication of any
3-9 broadcast or any written, graphic, or other form of political
3-10 advertising or campaign communication prepared by a candidate, a
3-11 candidate's authorized committee, or an agent of a candidate or
3-12 authorized committee;
3-13 (C) the making of a payment by a person based on
3-14 information that the candidate or the candidate's agent, with the
3-15 intent that the payment be made, provides about a candidate's
3-16 plans, projects, or needs to the person making the payment;
3-17 (D) the making of a payment by a person who, in
3-18 the same election cycle as that in which the payment is made, is
3-19 serving or has served as a member, employee, fund-raiser, or agent
3-20 of the candidate's authorized committee in an executive or
3-21 policymaking position;
3-22 (E) the making of a payment by a person who, in
3-23 the same election cycle as that in which the payment is made, has
3-24 served in any formal policymaking or advisory position with the
3-25 candidate's campaign or has participated in formal strategic or
3-26 formal policymaking discussions with the candidate's campaign
3-27 relating to the candidate's pursuit of nomination or election to a
4-1 legislative office;
4-2 (F) the making of a payment by a person who, in
4-3 the same election cycle as that in which the payment is made,
4-4 retains the professional services of any person who has provided
4-5 or is providing campaign-related services in that election cycle to
4-6 a candidate in connection with the candidate's pursuit of
4-7 nomination or election to a legislative office, including services
4-8 relating to the candidate's decision to seek the office if the
4-9 person providing those services is retained to work on activities
4-10 relating to the candidate's campaign;
4-11 (G) the making of a payment by a person who has
4-12 engaged in a coordinated activity with a candidate described by
4-13 Paragraphs (A)-(F) for a communication that clearly refers to the
4-14 candidate and is for the purpose of influencing an election,
4-15 regardless of whether the communication is express advocacy;
4-16 (H) direct participation by a person in
4-17 fund-raising activities with the candidate or in the solicitation
4-18 or receipt of political contributions on behalf of the candidate;
4-19 (I) communication by a person with a candidate
4-20 or, if the communication is made after the candidate has declared
4-21 the candidate's candidacy, with an agent of the candidate,
4-22 including a pollster, media consultant, vendor, advisor, or staff
4-23 member, acting on behalf of the candidate, about an advertising
4-24 message, allocation of resources, fund-raising, or other campaign
4-25 matters related to the candidate's campaign, including campaign
4-26 operations, staffing, tactics, or strategy; or
4-27 (J) provision by a person of in-kind
5-1 professional political services, such as polling, media advice,
5-2 direct mailing, fund-raising, or campaign research, to the
5-3 candidate or candidate's agent.
5-4 (7) "With respect to an election cycle" means:
5-5 (A) with regard to a political contribution that
5-6 is designated in writing for a particular election, the election
5-7 cycle that includes the election designated; or
5-8 (B) with regard to a political contribution that
5-9 is not designated in writing for a particular election or that is
5-10 designated as an officeholder contribution, the election cycle
5-11 that includes the next election for that office occurring after the
5-12 contribution is made.
5-13 Sec. 253.203. LIMITS ON CONTRIBUTIONS TO CANDIDATES AND
5-14 OFFICEHOLDERS. (a) Except as provided by Subsection (d), a person
5-15 may not knowingly make or authorize political contributions to a
5-16 candidate or officeholder that in the aggregate exceed the limit
5-17 prescribed by Subsection (b) with respect to an election cycle in
5-18 which the candidate or officeholder is involved.
5-19 (b) The contribution limits are:
5-20 (1) for the office of state senator, $2,000; or
5-21 (2) for the office of state representative, $1,000.
5-22 (c) A person may not knowingly accept a political
5-23 contribution, and shall refuse a political contribution that is
5-24 received, in violation of Subsection (a).
5-25 (d) Subsection (a) does not apply to:
5-26 (1) a political contribution made by a candidate to
5-27 the candidate's own campaign; or
6-1 (2) a political contribution made by a political
6-2 party committee or legislative caucus committee to a candidate.
6-3 Sec. 253.204. LIMITS ON CONTRIBUTIONS TO POLITICAL
6-4 COMMITTEES. (a) A person may not knowingly make or authorize
6-5 political contributions that in the aggregate exceed the limit
6-6 prescribed by Subsection (b) with respect to an election cycle.
6-7 (b) The contribution limits are:
6-8 (1) for contributions to a political committee other
6-9 than a political committee established by a political party or a
6-10 legislative caucus committee, $1,000; or
6-11 (2) for contributions to a political committee
6-12 established by a political party or a legislative caucus committee,
6-13 $5,000.
6-14 Sec. 253.205. AGGREGATE CONTRIBUTION LIMITS. (a) A person
6-15 other than a political committee may not knowingly make or
6-16 authorize political contributions to candidates, officeholders, and
6-17 specific-purpose committees for supporting or opposing candidates
6-18 or assisting officeholders that in the aggregate exceed $25,000
6-19 with respect to an election cycle.
6-20 (b) A political committee may not knowingly make or
6-21 authorize political contributions to candidates, officeholders, and
6-22 specific-purpose committees for supporting or opposing candidates
6-23 or assisting officeholders that in the aggregate exceed $200,000
6-24 with respect to an election cycle.
6-25 Sec. 253.206. AGGREGATION OF CONTRIBUTIONS BY POLITICAL
6-26 COMMITTEES. For purposes of Sections 253.203, 253.204, and
6-27 253.205:
7-1 (1) all political contributions made by a political
7-2 committee whose political activity is financed, maintained, or
7-3 controlled by a corporation, labor organization, association, or
7-4 political party are aggregated with political contributions made by
7-5 a political committee whose political activity is financed,
7-6 maintained, or controlled by a parent, subsidiary, branch,
7-7 division, department, or local unit of the corporation, labor
7-8 organization, association, or political party;
7-9 (2) two or more entities are treated as a single
7-10 entity if the entities:
7-11 (A) share the majority of members of their
7-12 boards of directors;
7-13 (B) share two or more officers;
7-14 (C) are owned or controlled by the same majority
7-15 shareholder or shareholders;
7-16 (D) are in a parent-subsidiary relationship;
7-17 (E) are in a principal-agent relationship; or
7-18 (F) have by-laws stating that the entities have
7-19 a parent-subsidiary relationship; and
7-20 (3) each specific-purpose committee for supporting a
7-21 candidate or opposing the candidate's opponent is treated as a
7-22 single committee if each committee includes the candidate or a
7-23 member of the candidate's immediate family.
7-24 Sec. 253.207. ATTRIBUTION OF CONTRIBUTIONS MADE BY MINORS.
7-25 (a) For purposes of Section 253.203, a political contribution by a
7-26 person younger than 18 years of age is considered to be a political
7-27 contribution by the person's parents and attributed proportionately
8-1 to each parent. Fifty percent of the political contribution is
8-2 attributed to each parent, or in the case of a single custodial
8-3 parent, the total amount is attributed to the parent.
8-4 (b) Subsection (a) does not apply to a political
8-5 contribution by a person younger than 18 years of age who has had
8-6 the disabilities of minority removed for general purposes.
8-7 Sec. 253.208. COORDINATED CONTRIBUTION CONSIDERED
8-8 CONTRIBUTION TO CANDIDATE OR OFFICEHOLDER. For purposes of
8-9 Sections 253.203, 253.204, and 253.205, a political contribution
8-10 that is a coordinated contribution to a specific-purpose committee
8-11 for supporting a candidate, opposing the candidate's opponent, or
8-12 assisting the candidate as an officeholder is considered to be a
8-13 political contribution to the candidate or officeholder.
8-14 Sec. 253.209. AFFIDAVIT REQUIRED IN CONNECTION WITH
8-15 INDEPENDENT CAMPAIGN EXPENDITURE. (a) A person who makes an
8-16 independent campaign expenditure in connection with a campaign for
8-17 legislative office must file an affidavit with the commission
8-18 stating that the expenditure was not provided in coordination with
8-19 a candidate or a candidate's agent or a person who is coordinating
8-20 with a candidate or a candidate's agent.
8-21 (b) An affidavit under Subsection (a) must be filed with
8-22 the report under Chapter 254 in which the independent campaign
8-23 expenditure is required to be reported.
8-24 Sec. 253.210. RETURN OF EXCESS CONTRIBUTION. (a) A person
8-25 who receives a political contribution, the acceptance of which
8-26 would violate Section 253.203 or 253.204, shall return the
8-27 contribution to the contributor not later than the 10th day after
9-1 the date the contribution is received.
9-2 (b) A political contribution that is not returned as
9-3 required by this section is considered to be accepted.
9-4 Sec. 253.211. NOTICE OF COORDINATED CONTRIBUTION OR
9-5 INDEPENDENT EXPENDITURE BY POLITICAL COMMITTEE. (a) Not later
9-6 than the second day after the date a political committee makes a
9-7 coordinated contribution to a specific-purpose committee or an
9-8 independent campaign expenditure supporting or opposing a
9-9 candidate, the campaign treasurer of the committee shall notify
9-10 each candidate in the race and the commission of the coordinated
9-11 contribution or independent campaign expenditure.
9-12 (b) A notice under this section must include the amount of
9-13 the coordinated contribution or independent campaign expenditure,
9-14 the full name and address of the person to whom the coordinated
9-15 contribution or independent campaign expenditure is made, the date
9-16 and purpose of the coordinated contribution or independent campaign
9-17 expenditure, and the name of each candidate supported or opposed.
9-18 SECTION 2. Section 253.003(c), Election Code, is amended to
9-19 read as follows:
9-20 (c) This section does not apply to a political contribution
9-21 made or accepted in violation of Subchapter F or G.
9-22 SECTION 3. Section 253.004(b), Election Code, is amended to
9-23 read as follows:
9-24 (b) This section does not apply to a political expenditure
9-25 made or authorized in violation of Subchapter F or G.
9-26 SECTION 4. Section 253.005(b), Election Code, is amended to
9-27 read as follows:
10-1 (b) This section does not apply to a political expenditure
10-2 that is:
10-3 (1) prohibited by Section 253.101; or
10-4 (2) made from a political contribution made in
10-5 violation of Subchapter F or G.
10-6 SECTION 5. Section 253.132, Election Code, is amended to
10-7 read as follows:
10-8 Sec. 253.132. LIABILITY TO POLITICAL COMMITTEES. (a) A
10-9 corporation or labor organization that knowingly makes a campaign
10-10 contribution to a political committee or a direct campaign
10-11 expenditure in violation of Subchapter D is liable for damages as
10-12 provided by this section to each political committee of opposing
10-13 interest in the election in connection with which the contribution
10-14 or expenditure is made.
10-15 (b) A person who knowingly makes a political contribution to
10-16 a political committee in violation of Section 253.204 is liable for
10-17 damages as provided by this section to each political committee of
10-18 opposing interest in the election in connection with which the
10-19 contribution is made.
10-20 (c) In this section, "damages" means:
10-21 (1) twice the value of the unlawful political
10-22 contribution or political expenditure; and
10-23 (2) reasonable attorney's fees incurred in the suit.
10-24 (d) [(c)] Reasonable attorney's fees incurred in the suit
10-25 may be awarded to the defendant if judgment is rendered in the
10-26 defendant's favor.
10-27 SECTION 6. Section 254.034, Election Code, is amended by
11-1 adding Subsection (f) to read as follows:
11-2 (f) This section applies to a political contribution covered
11-3 by Subchapter G, Chapter 253, except as provided by Section
11-4 253.210.
11-5 SECTION 7. Subchapter C, Chapter 254, Election Code, is
11-6 amended by adding Section 254.0612 to read as follows:
11-7 Sec. 254.0612. ADDITIONAL CONTENTS OF REPORTS BY CANDIDATES
11-8 FOR LEGISLATIVE OFFICE. In addition to the contents required by
11-9 Sections 254.031 and 254.061, each report by a candidate for a
11-10 legislative office must include:
11-11 (1) for each coordinated contribution supporting the
11-12 candidate or opposing the candidate's opponent of which the
11-13 candidate receives notice under Section 253.211:
11-14 (A) the full name and address of the political
11-15 committee receiving the contribution;
11-16 (B) the full name and address of the committee's
11-17 campaign treasurer;
11-18 (C) the full name and address of the person
11-19 making the contribution;
11-20 (D) the date the contribution is received;
11-21 (E) the amount of the contribution; and
11-22 (F) an indication of whether the committee
11-23 accepted or refused the contribution; and
11-24 (2) for each independent campaign expenditure
11-25 supporting the candidate or opposing the candidate's opponent of
11-26 which the candidate receives notice under Section 253.211:
11-27 (A) the full name and address of the person
12-1 making the expenditure;
12-2 (B) the full name and address of the person's
12-3 campaign treasurer, if any;
12-4 (C) the date the expenditure is made; and
12-5 (D) the amount of the expenditure.
12-6 SECTION 8. Subchapter D, Chapter 254, Election Code, is
12-7 amended by adding Section 254.0912 to read as follows:
12-8 Sec. 254.0912. ADDITIONAL CONTENTS OF REPORTS BY LEGISLATIVE
12-9 OFFICEHOLDERS. In addition to the contents required by Sections
12-10 254.031 and 254.091, each report by a legislative officeholder must
12-11 include, for each coordinated contribution of which the
12-12 officeholder receives notice under Section 253.211:
12-13 (1) the full name and address of the political
12-14 committee receiving the contribution;
12-15 (2) the full name and address of the committee's
12-16 campaign treasurer;
12-17 (3) the full name and address of the person making the
12-18 contribution;
12-19 (4) the date the contribution is received;
12-20 (5) the amount of the contribution; and
12-21 (6) an indication of whether the committee accepted or
12-22 refused the contribution.
12-23 SECTION 9. Subchapter E, Chapter 254, Election Code, is
12-24 amended by adding Section 254.1212 to read as follows:
12-25 Sec. 254.1212. ADDITIONAL CONTENTS OF REPORTS OF CERTAIN
12-26 COMMITTEES. In addition to the contents required by Sections
12-27 254.031 and 254.121, each report by a political committee for
13-1 supporting or opposing a candidate for or assisting a holder of a
13-2 legislative office must include, for each coordinated contribution
13-3 of which the committee is required to give notice under Section
13-4 253.211:
13-5 (1) the full name and address of the candidate or
13-6 officeholder receiving the contribution;
13-7 (2) the full name and address of the candidate's or
13-8 officeholder's campaign treasurer, if any;
13-9 (3) the full name and address of the person making the
13-10 contribution;
13-11 (4) the date the contribution is received;
13-12 (5) the amount of the contribution; and
13-13 (6) an indication of whether the candidate or
13-14 officeholder accepted or refused the contribution.
13-15 SECTION 10. Subchapter F, Chapter 254, Election Code, is
13-16 amended by adding Section 254.1541 to read as follows:
13-17 Sec. 254.1541. ADDITIONAL REPORTS OF EXPENDITURES IN
13-18 CONNECTION WITH CAMPAIGNS FOR LEGISLATIVE OFFICE. (a) Not later
13-19 than 48 hours after a political committee makes a political
13-20 expenditure supporting or opposing a candidate for a legislative
13-21 office, the committee's campaign treasurer shall file a report with
13-22 the commission.
13-23 (b) Each report required by this section must include the
13-24 amount of the political expenditure, the full name and address of
13-25 the person to whom the expenditure is made, the date and purpose of
13-26 the expenditure, and the name of each candidate supported or
13-27 opposed.
14-1 SECTION 11. (a) Subchapter G, Chapter 253, Election Code,
14-2 as added by this Act, applies only to a political contribution
14-3 accepted or a political expenditure made on or after September 1,
14-4 2001. A political contribution accepted or a political expenditure
14-5 made before that date is governed by the law in effect at the time
14-6 the contribution was accepted or the expenditure was made and is
14-7 not aggregated with political contributions accepted or political
14-8 expenditures made on or after that date.
14-9 (b) Sections 254.0612, 254.0912, 254.1212, and 254.1541,
14-10 Election Code, as added by this Act, apply only to the reporting of
14-11 a political contribution accepted or political expenditure made on
14-12 or after September 1, 2001. The reporting of a political
14-13 contribution accepted or political expenditure made before that
14-14 date is governed by the law in effect at the time the contribution
14-15 was accepted or the expenditure was made, and the former law is
14-16 continued in effect for that purpose.
14-17 SECTION 12. This Act takes effect September 1, 2001.