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