1-1 By: Shapiro, Shapleigh S.B. No. 6
1-2 (In the Senate - Filed February 7, 2001; February 8, 2001,
1-3 read first time and referred to Committee on State Affairs;
1-4 March 6, 2001, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 6, Nays 1; March 6, 2001,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 6 By: Shapiro
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the fair conduct of elections and election campaigns;
1-11 providing penalties.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Section 251.001, Election Code, is amended by
1-14 amending Subdivisions (2) and (8) and adding Subdivisions (21) and
1-15 (22) to read as follows:
1-16 (2) "Contribution" means a direct or indirect transfer
1-17 of money, goods, services, or any other thing of value and includes
1-18 an agreement made or other obligation incurred, whether legally
1-19 enforceable or not, to make a transfer. The term includes a loan
1-20 or extension of credit, other than those expressly excluded by this
1-21 subdivision, and a guarantee of a loan or extension of credit,
1-22 including a loan described by this subdivision. The term does not
1-23 include:
1-24 (A) a loan made in the due course of business by
1-25 a corporation that is legally engaged in the business of lending
1-26 money and that has conducted the business continuously for more
1-27 than one year before the loan is made; [or]
1-28 (B) an expenditure required to be reported under
1-29 Section 305.006(b), Government Code; or
1-30 (C) the value of services provided without
1-31 compensation by any individual who volunteers on behalf of a
1-32 candidate, officeholder, or political committee.
1-33 (8) "Direct campaign expenditure" means an expenditure
1-34 by a person for, or related to, political advertising that contains
1-35 express advocacy and is not made with the cooperation of, in
1-36 consultation with, in concert with, or at the request or suggestion
1-37 of a candidate or officeholder or any agent or political committee
1-38 controlled by the candidate or officeholder. Political advertising
1-39 is made with the cooperation of, in consultation with, in concert
1-40 with, or at the request or suggestion of a candidate or
1-41 officeholder or any agent or political committee controlled by the
1-42 candidate or officeholder only if it is a coordinated general
1-43 public political communication as defined by this section [a
1-44 campaign expenditure that does not constitute a campaign
1-45 contribution by the person making the expenditure].
1-46 (21) "Coordinated general public political
1-47 communication" means political advertising that is:
1-48 (A) paid for by a person other than a candidate
1-49 or officeholder or a political committee controlled by the
1-50 candidate or officeholder; and
1-51 (B) created, produced, or distributed:
1-52 (i) at the explicit request or suggestion
1-53 of the candidate or officeholder or a political committee
1-54 controlled by or an authorized agent of the candidate or
1-55 officeholder;
1-56 (ii) after the candidate or officeholder
1-57 or the candidate's agent has exercised control or decision-making
1-58 authority over the content, timing, location, mode, intended
1-59 audience, volume of distribution, or frequency of placement of the
1-60 communication; or
1-61 (iii) after substantial discussion or
1-62 negotiation between the creator, producer, or distributor of the
1-63 communication, or the person paying for the communication, and the
1-64 candidate or officeholder or a political committee controlled by or
2-1 authorized agent of the candidate or officeholder regarding the
2-2 content, timing, location, mode, intended audience, volume of
2-3 distribution, or frequency of placement of the communication, the
2-4 result of which is substantial collaboration or agreement amounting
2-5 to a partnership or joint venture between the other person and the
2-6 candidate or officeholder with respect to the political
2-7 communication.
2-8 (22) "Express advocacy" means a communication that
2-9 advocates the election or defeat of a clearly identified candidate
2-10 or officeholder or measure by containing a word or phrase such as
2-11 "vote for," "reelect," "support," "cast your ballot for," "(name of
2-12 candidate) for legislature," "(name of candidate or measure) in
2-13 2002," "vote against," "defeat," or "reject."
2-14 SECTION 2. Section 251.005, Election Code, is amended to
2-15 read as follows:
2-16 Sec. 251.005. ELECTRONIC FILING FOR OUT-OF-STATE COMMITTEES
2-17 [EXCLUDED]. (a) An out-of-state political committee that files
2-18 reports with the Federal Election Commission or with the election
2-19 authority of another state is not required to file such reports
2-20 with the Texas Ethics Commission if all of the committee's reports
2-21 are available electronically. An out-of-state political committee
2-22 that elects not to file reports with the Texas Ethics Commission
2-23 shall file a one-page notice with the commission stating that:
2-24 (1) the committee files reports with the Federal
2-25 Election Commission or with the election authority of another
2-26 state; and
2-27 (2) those reports include contributions or
2-28 expenditures made by the committee in connection with elections in
2-29 Texas. [An out-of-state political committee is not subject to
2-30 Chapter 252 or 254, except as provided by Subsection (b) or (c).]
2-31 (b) A report filed with another state is not considered to
2-32 be available electronically under Subsection (a) if the Texas
2-33 Ethics Commission determines that the disclosure requirements of
2-34 the other state are less than the disclosure requirements of this
2-35 state [If an out-of-state committee decides to file a campaign
2-36 treasurer appointment under Chapter 252, at the time the
2-37 appointment is filed the committee becomes subject to this title to
2-38 the same extent as a political committee that is not an
2-39 out-of-state committee.]
2-40 [(c) If an out-of-state committee performs an activity that
2-41 removes the committee from out-of-state status as defined by
2-42 Section 251.001(15), the committee becomes subject to this title to
2-43 the same extent as a political committee that is not an
2-44 out-of-state committee].
2-45 SECTION 3. Subchapter A, Chapter 251, Election Code, is
2-46 amended by adding Section 251.010 to read as follows:
2-47 Sec. 251.010. PROTECTION OF INFORMATION. (a) Recognizing
2-48 that contributor information required to be included in reports
2-49 required by Chapter 254 is proprietary information having
2-50 substantial value, no information obtained from any reports
2-51 required to be maintained or filed under this title may, without
2-52 the express written consent of the filer, be sold or used by any
2-53 person other than the filer:
2-54 (1) for soliciting contributions for any purpose; or
2-55 (2) for any commercial purposes.
2-56 (b) The use of information that is copied or otherwise
2-57 obtained from reports filed under this title in newspapers,
2-58 magazines, books, or other similar communications is permissible if
2-59 the principal purpose of the communication is to educate the public
2-60 and not to communicate any contributor information listed on the
2-61 reports for the purpose of soliciting contributions or for other
2-62 commercial purposes.
2-63 (c) A person required to report contributions under Chapter
2-64 254 may submit up to 10 pseudonyms on each report filed in order to
2-65 protect against illegal use of names and addresses of contributors
2-66 provided that the total amount of fictitious contributions does not
2-67 exceed the greater of five percent of contributions reported or
2-68 $2,500. If a filer uses pseudonyms, the filer shall subtract the
2-69 total dollar amount of the fictitious contributions from the total
3-1 of unitemized contributions required to be reported under Section
3-2 254.031(6). Any filer who uses pseudonyms shall submit a list of
3-3 the pseudonyms and amounts contributed separately to the commission
3-4 on or before the date on which the report containing the fictitious
3-5 names is filed. The commission shall exclude the list of
3-6 pseudonyms from the public records, and the list shall be kept
3-7 confidential by the commission and may not be disclosed to the
3-8 public for any reason without the express written consent of the
3-9 filer.
3-10 (d) In addition to any penalties imposed by the commission,
3-11 any person found to have violated Subsection (a) or (c) shall be
3-12 liable in damages to the person filing the report. In this
3-13 subsection, "damages" means the fair market value of the
3-14 contributor information improperly used and the reasonable
3-15 attorney's fees incurred by the filer. In addition to damages, the
3-16 person filing the report shall be entitled as a matter of right to
3-17 an injunction prohibiting a violation of this section and an order
3-18 recovering reasonable attorney's fees incurred to obtain the
3-19 injunctive relief from any district court in this state.
3-20 (e) A filer may not use this section for the purpose of
3-21 circumventing the reporting requirements of this title by
3-22 materially inflating the amount of contributions reported by the
3-23 filer.
3-24 SECTION 4. Subsection (a), Section 252.003, Election Code,
3-25 is amended to read as follows:
3-26 (a) In addition to the information required by Section
3-27 252.002, a campaign treasurer appointment by a general-purpose
3-28 committee must include:
3-29 (1) the full name, and any acronym of the name that
3-30 will be used in the name of the committee as provided by Subsection
3-31 (d), of each corporation, labor organization, or other association
3-32 or legal entity that directly establishes, administers, or controls
3-33 the committee, if applicable, or the name of each person who
3-34 determines to whom the committee makes contributions or the name of
3-35 each person who determines for what purposes the committee makes
3-36 expenditures; and
3-37 (2) [the full name and address of each general-purpose
3-38 committee to whom the committee intends to make political
3-39 contributions; and]
3-40 [(3)] the name of the committee and, if the name is an
3-41 acronym, the words the acronym represents.
3-42 SECTION 5. Subchapter A, Chapter 253, Election Code, is
3-43 amended by adding Section 253.006 to read as follows:
3-44 Sec. 253.006. COERCION PROHIBITED. (a) A person, including
3-45 a candidate, officeholder, or political committee, commits an
3-46 offense if the person uses or threatens to use physical force, job
3-47 discrimination, or financial reprisal to obtain a contribution or
3-48 other thing of value to be used to influence the result of an
3-49 election or to assist an officeholder.
3-50 (b) A candidate, officeholder, or political committee
3-51 commits an offense if the person accepts or uses money or any other
3-52 thing of value that is known by the candidate or officeholder or by
3-53 an officer of the political committee, or an individual who causes
3-54 the political committee to accept or use the money or other thing
3-55 of value, to have been obtained in violation of Subsection (a).
3-56 (c) An offense under this section is a felony of the third
3-57 degree.
3-58 SECTION 6. Section 253.031, Election Code, is amended to
3-59 read as follows:
3-60 Sec. 253.031. CONTRIBUTION AND EXPENDITURE WITHOUT CAMPAIGN
3-61 TREASURER PROHIBITED. (a) A candidate may not knowingly accept a
3-62 campaign contribution or make or authorize a campaign expenditure
3-63 at a time when a campaign treasurer appointment for the candidate
3-64 is not in effect.
3-65 (b) A political committee may not knowingly accept political
3-66 contributions totaling more than $500 or make or authorize
3-67 political expenditures totaling more than $500 at a time when a
3-68 campaign treasurer appointment for the committee is not in effect.
3-69 (c) A political committee that files its appointment of
4-1 treasurer within 30 days before an election may not knowingly make
4-2 or authorize a campaign contribution or campaign expenditure
4-3 supporting or opposing a candidate for an office specified by
4-4 Section 252.005(1) in a primary or general election unless the
4-5 committee files within 48 hours after such appointment of treasurer
4-6 a report that contains the information required by Chapter 254
4-7 covering the period through the date the committee's appointment of
4-8 [campaign] treasurer was [appointment has been] filed [not later
4-9 than the 30th day before the appropriate election day].
4-10 (d) This section does not apply to a political party's
4-11 county executive committee that accepts political contributions or
4-12 makes political expenditures, except that:
4-13 (1) a county executive committee that accepts
4-14 political contributions or makes political expenditures shall
4-15 maintain the records required by Section 254.001; and
4-16 (2) a county executive committee that accepts
4-17 political contributions or makes political expenditures that, in
4-18 the aggregate, exceed $5,000 in a calendar year shall file:
4-19 (A) a campaign treasurer appointment as required
4-20 by Section 252.001 not later than the 15th day after the date that
4-21 amount is exceeded; and
4-22 (B) the reports required by Subchapter F,
4-23 Chapter 254, including in the political committee's first report
4-24 all political contributions accepted and all political expenditures
4-25 made before the effective date of the campaign treasurer
4-26 appointment.
4-27 (e) This section does not apply to an out-of-state political
4-28 committee unless the committee meets the requirements of [is
4-29 subject to Chapter 252 under] Section 251.005.
4-30 (f) A person who violates this section commits an offense.
4-31 An offense under this section is a Class A misdemeanor.
4-32 SECTION 7. Section 253.033, Election Code, is amended to
4-33 read as follows:
4-34 Sec. 253.033. CASH CONTRIBUTIONS EXCEEDING $100 PROHIBITED;
4-35 ANONYMOUS CONTRIBUTIONS. (a) A candidate, officeholder, or
4-36 specific-purpose committee may not knowingly accept from a
4-37 contributor in a reporting period political contributions in cash
4-38 that in the aggregate exceed $100.
4-39 (b) A candidate, officeholder, or political committee that
4-40 receives an anonymous cash contribution in excess of $50 shall
4-41 promptly disburse the amount over $50 to one or more of the
4-42 entities listed in Section 254.204(a)(1), (3), (5), or (6).
4-43 Anonymous cash contributions of $50 or less may be used by the
4-44 candidate, officeholder, or political committee for any lawful
4-45 purpose.
4-46 (c) A person who violates this section commits an offense.
4-47 An offense under this section is a Class A misdemeanor.
4-48 SECTION 8. Subsections (b) and (e), Section 253.042,
4-49 Election Code, are amended to read as follows:
4-50 (b) A candidate or officeholder who accepts one or more
4-51 political contributions in the form of loans, including an
4-52 extension of credit or a guarantee of a loan or extension of
4-53 credit, from one or more persons related to the candidate or
4-54 officeholder within the second degree by affinity or consanguinity
4-55 as determined under Chapter 573, Government Code, may not use
4-56 political contributions to repay the loans in amounts that in the
4-57 aggregate exceed the amount prescribed by Subsection (a). A
4-58 candidate or officeholder may not use political contributions, in
4-59 amounts that in the aggregate exceed the amount prescribed by
4-60 Subsection (a), to repay any other loan or extension of credit for
4-61 which the candidate or officeholder is personally liable or is
4-62 obligated or that the candidate or officeholder guarantees.
4-63 (e) This section does not prohibit the payment of interest
4-64 at a commercially reasonable rate on loans covered by this section
4-65 from a financial institution. A candidate or officeholder may not
4-66 use political contributions to pay [at a commercially reasonable
4-67 rate, except that] interest on loans from a candidate's or
4-68 officeholder's personal funds or on loans from the personal funds
4-69 of any person related to the candidate or officeholder within the
5-1 second degree by affinity or consanguinity [is included in the
5-2 amount prescribed by Subsection (a), (b), or (c)].
5-3 SECTION 9. Section 253.063, Election Code, is amended to
5-4 read as follows:
5-5 Sec. 253.063. TRAVEL EXPENSE. Unreimbursed travel expenses
5-6 incurred by an individual shall not be considered a contribution or
5-7 a [A] direct campaign expenditure and shall not be reportable under
5-8 this subchapter or Chapter 254 [consisting of personal travel
5-9 expenses incurred by an individual may be made without complying
5-10 with Section 253.062(a)(1)].
5-11 SECTION 10. Subchapter D, Chapter 253, Election Code, is
5-12 amended by adding Section 253.105 to read as follows:
5-13 Sec. 253.105. CONTRIBUTION BY PARTNERSHIP OR LIMITED
5-14 LIABILITY COMPANY. This subchapter does not prohibit a political
5-15 contribution made by a partnership or limited liability company if
5-16 the contribution is not charged to the profits, interest, or
5-17 capital account of a partner or member that is a corporation
5-18 covered by Section 253.091.
5-19 SECTION 11. Section 253.162, Election Code, is amended by
5-20 amending Subsections (b), (c), and (d) and adding Subsections (e)
5-21 and (f) to read as follows:
5-22 (b) A judicial candidate or officeholder may not:
5-23 (1) use political contributions to repay a loan [who
5-24 accepts one or more political contributions in the form of loans],
5-25 including an extension of credit or a guarantee of a loan or
5-26 extension of credit, from one or more persons related to the
5-27 candidate or officeholder within the second degree by
5-28 consanguinity, as determined under [Subchapter B,] Chapter 573,
5-29 Government Code; or
5-30 (2) use political contributions, in amounts that in
5-31 the aggregate exceed the amount prescribed by Subsection (a), to
5-32 repay any other loan or extension of credit for which the candidate
5-33 or officeholder is personally liable or is obligated or that the
5-34 candidate or officeholder guarantees[, may not use political
5-35 contributions to repay the loans].
5-36 (c) The total amount of both reimbursements under Subsection
5-37 (a) and repayments under Subsection (b)(2) made by a judicial
5-38 candidate or officeholder may not exceed the amount prescribed by
5-39 Subsection (a).
5-40 (d) A person who is both a candidate and an officeholder may
5-41 reimburse the person's personal funds or repay loans from political
5-42 contributions only in one capacity.
5-43 (e) This section does not prohibit the payment of interest
5-44 at a commercially reasonable rate on loans covered by this section
5-45 from a financial institution. A judicial candidate or officeholder
5-46 may not use political contributions to pay interest on loans from a
5-47 candidate's or officeholder's personal funds or on loans from the
5-48 personal funds of any person related to the candidate or
5-49 officeholder within the second degree by affinity or consanguinity.
5-50 (f) [(d)] A person who violates this section is liable for a
5-51 civil penalty not to exceed three times the amount by which the
5-52 reimbursement made in violation of this section exceeds the
5-53 applicable limit prescribed by Subsection (a).
5-54 SECTION 12. Subsection (a), Section 254.031, Election Code,
5-55 is amended to read as follows:
5-56 (a) Except as otherwise provided by this chapter, each
5-57 report filed under this chapter must include:
5-58 (1) the amount of political contributions from each
5-59 person that in the aggregate exceed $100 [$50] and that are
5-60 accepted during the reporting period by the person or committee
5-61 required to file a report under this chapter, the full name and
5-62 address of the person making the contributions, and the dates of
5-63 the contributions, and:
5-64 (A) if the contribution is an in-kind
5-65 contribution, a description of the property or services
5-66 contributed; and
5-67 (B) with respect to contributions, other than
5-68 contributions subject to Section 254.151(9), made by any
5-69 partnership, limited liability company, professional corporation,
6-1 or professional association, the name of each partner, member, or
6-2 shareholder, as applicable, whose interest in the entity's profits
6-3 has been charged by the contribution;
6-4 (2) for each individual from whom the person or
6-5 committee required to file the report has accepted political
6-6 contributions that in the aggregate exceed $500 and that are
6-7 accepted during the reporting period:
6-8 (A) the individual's principal occupation or job
6-9 title; and
6-10 (B) the full name of the individual's employer,
6-11 if any;
6-12 (3) the original principal amount of loans that are
6-13 made during the reporting period for campaign or officeholder
6-14 purposes to the person or committee required to file the report and
6-15 that in the aggregate exceed $100 [$50], the dates the loans are
6-16 made, the interest rate, the maturity date, the type of collateral
6-17 for the loans, if any, the full name and address of the person or
6-18 financial institution making the loans, the full name and address,
6-19 principal occupation, and name of the employer of each guarantor of
6-20 the loans, the amount of the loans guaranteed by each guarantor,
6-21 and on a separate schedule the full name and address of the person
6-22 or financial institution making each loan, the date each loan was
6-23 made, the original principal amount of each loan, and the
6-24 [aggregate] principal amount of each [all] outstanding loan [loans]
6-25 as of the last day of the reporting period;
6-26 (4) [(3)] the amount of political expenditures that in
6-27 the aggregate exceed $100 [$50] and that are made during the
6-28 reporting period, the full name and address of the persons to whom
6-29 the expenditures are made, and the dates and purposes of the
6-30 expenditures;
6-31 (5) [(4)] the amount of each payment made during the
6-32 reporting period from a political contribution if the payment is
6-33 not a political expenditure, the full name and address of the
6-34 person to whom the payment is made, and the date and purpose of the
6-35 payment;
6-36 (6) [(5)] the total amount or a specific listing of
6-37 the political contributions of $100 [$50] or less accepted and the
6-38 total amount or a specific listing of the political expenditures of
6-39 $100 [$50] or less made during the reporting period;
6-40 (7) [(6)] the total amount of all political
6-41 contributions accepted and the total amount of all political
6-42 expenditures made during the reporting period; [and]
6-43 (8) [(7)] the name of each candidate or officeholder
6-44 who benefits from a direct campaign expenditure made during the
6-45 reporting period by the person or committee required to file the
6-46 report, and the office sought or held, excluding a direct campaign
6-47 expenditure that is made by the principal political committee of a
6-48 political party on behalf of a slate of two or more nominees of
6-49 that party; and
6-50 (9) the total amount of funds, including interest or
6-51 other income, maintained in one or more accounts in which political
6-52 contributions are deposited as of the last day of the reporting
6-53 period.
6-54 SECTION 13. Subchapter B, Chapter 254, Election Code, is
6-55 amended by adding Sections 254.0312 and 254.0313 to read as
6-56 follows:
6-57 Sec. 254.0312. BEST EFFORTS. (a) A person required to file
6-58 a report under this chapter is considered to have used best efforts
6-59 to obtain, maintain, and report the information required by Section
6-60 254.031(a)(2) if the person or the person's campaign treasurer
6-61 complies with this section.
6-62 (b) Each written solicitation for political contributions
6-63 from an individual must include:
6-64 (1) a request for the individual's full name and
6-65 address, the individual's principal occupation or job title, and
6-66 the full name of the individual's employer; and
6-67 (2) a statement of state law regarding the collection
6-68 and reporting of individual contributor information, such as:
6-69 (A) "State law requires (a candidate,
7-1 officeholder, or committee, as applicable) to use best efforts to
7-2 request and report the full name and address, principal occupation
7-3 or job title, and full name of employer of individuals whose
7-4 contributions exceed $500 in a reporting period."; or
7-5 (B) "To comply with state law, (a candidate,
7-6 officeholder, or committee, as applicable) must use best efforts to
7-7 request, maintain, and report the full name and address, principal
7-8 occupation or job title, and full name of employer of individuals
7-9 whose contributions exceed $500 in a reporting period."
7-10 (c) For each political contribution received from an
7-11 individual which, when aggregated with all other political
7-12 contributions received from the individual during the reporting
7-13 period, exceeds $500 and for which the information required by
7-14 Section 254.031(a)(2) is not provided, the person must make at
7-15 least one oral or written request for the missing information. A
7-16 request under this subsection:
7-17 (1) must be made not later than the 30th day after the
7-18 date the contribution is received; and
7-19 (2) may not be made in conjunction with a solicitation
7-20 for an additional political contribution.
7-21 (d) A request under Subsection (c) that is made in writing
7-22 must include a clear and conspicuous statement that complies with
7-23 Subsection (b)(2) and a preaddressed envelope or postcard for
7-24 responding to the request. A request that is made orally must be
7-25 documented in writing.
7-26 (e) A person must report any information required by Section
7-27 254.031(a)(2) that is not provided by the individual making the
7-28 contribution and that the person has in the person's records of
7-29 political contributions or previous reports under this chapter.
7-30 (f) Instead of the request and statement required by
7-31 Subsection (b), a person may use any disclosure containing a
7-32 similar request and statement that has been approved by the Federal
7-33 Election Commission.
7-34 Sec. 254.0313. REPORTING BY OUT-OF-STATE POLITICAL
7-35 COMMITTEE. Instead of the information required by Sections
7-36 254.031(a)(4), (6), and (7), each report filed under this chapter
7-37 by an out-of-state political committee must include:
7-38 (1) the amount of political expenditures in connection
7-39 with elections in this state that in the aggregate exceed $100 and
7-40 that are made during the reporting period, the full name and
7-41 address of the persons to whom the expenditures are made, and the
7-42 dates and purposes of the expenditures;
7-43 (2) the total amount or a specific listing of the
7-44 political contributions of $100 or less accepted and the total
7-45 amount or a specific listing of the political expenditures in
7-46 connection with elections in this state of $100 or less made during
7-47 the reporting period; and
7-48 (3) the total amount of all political contributions
7-49 accepted and the total amount of all political expenditures in
7-50 connection with elections in this state made during the reporting
7-51 period.
7-52 SECTION 14. Subsection (a), Section 254.038, Election Code,
7-53 is amended to read as follows:
7-54 (a) In addition to other reports required by this chapter,
7-55 the following persons shall file additional reports during the
7-56 period beginning the ninth day before election day and ending at 12
7-57 noon on the second day before election day:
7-58 (1) a candidate for statewide office who has an
7-59 opponent whose name is to appear on the ballot and who accepts
7-60 political contributions from a person that in the aggregate exceed
7-61 $1,000 during that reporting period;
7-62 (2) a candidate for state senator who has an opponent
7-63 whose name is to appear on the ballot and who accepts political
7-64 contributions from a person that in the aggregate exceed $1,000
7-65 during that reporting period;
7-66 (3) [(2)] a candidate for state representative who has
7-67 an opponent whose name is to appear on the ballot and who accepts
7-68 political contributions from a person that in the aggregate exceed
7-69 $200 during that reporting period;
8-1 (4) a specific-purpose committee for supporting or
8-2 opposing a candidate for statewide office and that accepts
8-3 political contributions from a person that in the aggregate exceed
8-4 $1,000 during that reporting period;
8-5 (5) [(3)] a specific-purpose committee for supporting
8-6 or opposing a candidate for state senator and that accepts
8-7 political contributions from a person that in the aggregate exceed
8-8 $1,000 during that reporting period; and
8-9 (6) [(4)] a specific-purpose committee for supporting
8-10 or opposing a candidate for state representative and that accepts
8-11 political contributions from a person that in the aggregate exceed
8-12 $200 during that reporting period.
8-13 SECTION 15. Subchapter B, Chapter 254, Election Code, is
8-14 amended by adding Section 254.0381 to read as follows:
8-15 Sec. 254.0381. TELEGRAM REPORT OF CERTAIN DIRECT CAMPAIGN
8-16 EXPENDITURES. (a) In addition to other reports required by this
8-17 chapter, a person or general-purpose committee that makes direct
8-18 campaign expenditures that in the aggregate exceed $5,000 during
8-19 the period beginning the ninth day before election day and ending
8-20 at 12 noon on the second day before election day shall file a
8-21 report not later than 48 hours after the expenditure is made.
8-22 (b) Each report required by this section must include the
8-23 amount of the expenditures, the full name and address and principal
8-24 occupation of the persons to whom the expenditures are made, and
8-25 the dates of the expenditures.
8-26 (c) A report under this section shall be filed by telegram
8-27 or telephonic facsimile machine or by hand.
8-28 (d) This section does not apply to a direct campaign
8-29 expenditure made by the principal political committee of a
8-30 political party.
8-31 (e) Section 254.036 does not apply to a report required by
8-32 this section.
8-33 SECTION 16. Subsection (c), Section 254.041, Election Code,
8-34 is amended to read as follows:
8-35 (c) A violation of Subsection (a)(1) [(a)(2) by a candidate
8-36 or officeholder] is a Class A misdemeanor if it is shown on the
8-37 trial of the offense that the person intentionally failed to file
8-38 the report on time with knowledge of the legal obligation to file
8-39 the report [fails to include information required by Section
8-40 254.061(3) or Section 254.091(2), as applicable].
8-41 SECTION 17. Subsection (a), Section 254.042, Election Code,
8-42 is amended to read as follows:
8-43 (a) The commission shall determine from any available
8-44 evidence whether a report, other than a telegram report under
8-45 Section 254.038 [or 254.039], required to be filed with the
8-46 commission under this chapter is late. On making that
8-47 determination, the commission shall immediately mail a notice of
8-48 the determination to the person required to file the report.
8-49 SECTION 18. Section 254.061, Election Code, is amended to
8-50 read as follows:
8-51 Sec. 254.061. ADDITIONAL CONTENTS OF REPORTS. In addition
8-52 to the contents required by Section 254.031, each report by a
8-53 candidate must include:
8-54 (1) the candidate's full name and address, the office
8-55 sought, and the identity and date of the election for which the
8-56 report is filed;
8-57 (2) the campaign treasurer's name, residence or
8-58 business street address, and telephone number; and
8-59 (3) [for each political committee from which the
8-60 candidate received notice under Section 254.128 or 254.161:]
8-61 [(A) the committee's full name and address;]
8-62 [(B) an indication of whether the committee is a
8-63 general-purpose committee or a specific-purpose committee; and]
8-64 [(C) the full name and address of the
8-65 committee's campaign treasurer;]
8-66 [(4) the full name and address of each individual
8-67 acting as a campaign treasurer of a political committee under
8-68 Section 253.062 from whom the candidate received notice under
8-69 Section 254.128 or 254.161; and]
9-1 [(5)] on a separate page or pages of the report, the
9-2 identification of any payment from political contributions made to
9-3 a business in which the candidate has a participating interest of
9-4 more than 10 percent, holds a position on the governing body of the
9-5 business, or serves as an officer of the business.
9-6 SECTION 19. Section 254.091, Election Code, is amended to
9-7 read as follows:
9-8 Sec. 254.091. ADDITIONAL CONTENTS OF REPORTS. In addition
9-9 to the contents required by Section 254.031, each report by an
9-10 officeholder must include:
9-11 (1) the officeholder's full name and address and the
9-12 office held; and
9-13 (2) [for each political committee from which the
9-14 officeholder received notice under Section 254.128 or 254.161:]
9-15 [(A) the committee's full name and address;]
9-16 [(B) an indication of whether the committee is a
9-17 general-purpose committee or a specific-purpose committee; and]
9-18 [(C) the full name and address of the
9-19 committee's campaign treasurer; and]
9-20 [(3)] on a separate page or pages of the report, the
9-21 identification of any payment from political contributions made to
9-22 a business in which the officeholder has a participating interest
9-23 of more than 10 percent, holds a position on the governing body of
9-24 the business, or serves as an officer of the business.
9-25 SECTION 20. Section 254.128, Election Code, is amended to
9-26 read as follows:
9-27 Sec. 254.128. NOTICE TO CANDIDATE AND OFFICEHOLDER OF
9-28 IN-KIND CONTRIBUTIONS [AND EXPENDITURES]. (a) If a
9-29 specific-purpose committee, other than a special-purpose committee
9-30 established, controlled, or authorized by the candidate or
9-31 officeholder, [accepts political contributions or] makes political
9-32 expenditures for a candidate or officeholder that constitute an
9-33 in-kind contribution, the committee's campaign treasurer shall
9-34 deliver written notice of that fact to the affected candidate or
9-35 officeholder not later than the end of the period covered by the
9-36 report in which the reportable activity occurs.
9-37 (b) The notice must include the full name and address of the
9-38 political committee and its campaign treasurer, [and] an indication
9-39 that the committee is a specific-purpose committee, and the amount
9-40 and nature of the contribution.
9-41 (c) A campaign treasurer commits an offense if the campaign
9-42 treasurer fails to comply with this section. An offense under this
9-43 section is a Class A misdemeanor.
9-44 SECTION 21. Section 254.151, Election Code, is amended to
9-45 read as follows:
9-46 Sec. 254.151. ADDITIONAL CONTENTS OF REPORTS. In addition
9-47 to the contents required by Section 254.031, each report by a
9-48 campaign treasurer of a general-purpose committee must include:
9-49 (1) the committee's full name and address;
9-50 (2) the full name, residence or business street
9-51 address, and telephone number of the committee's campaign
9-52 treasurer;
9-53 (3) the identity and date of the election for which
9-54 the report is filed, if applicable;
9-55 (4) the name of each identified candidate or measure
9-56 or classification by party of candidates supported or opposed by
9-57 the committee, indicating whether the committee supports or opposes
9-58 each listed candidate, measure, or classification by party of
9-59 candidates;
9-60 (5) the name of each identified officeholder or
9-61 classification by party of officeholders assisted by the committee;
9-62 (6) the principal occupation of each person from whom
9-63 political contributions that in the aggregate exceed $500 [$50] are
9-64 accepted during the reporting period;
9-65 (7) the amount of each political expenditure in the
9-66 form of a political contribution made to a candidate, officeholder,
9-67 or another political committee that is returned to the committee
9-68 during the reporting period, the name of the person to whom the
9-69 expenditure was originally made, and the date it is returned; [and]
10-1 (8) on a separate page or pages of the report, the
10-2 identification of any contribution from a corporation or labor
10-3 organization made and accepted under Subchapter D, Chapter 253; and
10-4 (9) on a separate page or pages of the report, the
10-5 identification of any contribution made to the committee that is
10-6 intended by the donor to be used by the committee for
10-7 administrative, overhead, or fund-raising expenses, unless the
10-8 contribution is otherwise disclosed elsewhere in the report.
10-9 SECTION 22. Section 254.161, Election Code, is amended to
10-10 read as follows:
10-11 Sec. 254.161. NOTICE TO CANDIDATE AND OFFICEHOLDER OF
10-12 CONTRIBUTIONS AND EXPENDITURES. If a general-purpose committee
10-13 other than the principal political committee of a political party
10-14 or a political committee established by a political party's county
10-15 executive committee [accepts political contributions or] makes
10-16 direct political expenditures for a candidate or officeholder that
10-17 constitute a contribution, notice of that fact shall be given to
10-18 the affected candidate or officeholder as provided by Section
10-19 254.128 for a specific-purpose committee.
10-20 SECTION 23. Section 257.002, Election Code, is amended by
10-21 amending Subsection (b) and adding Subsection (c) to read as
10-22 follows:
10-23 (b) Subject to Subsection (c), a [A] political party that
10-24 accepts contributions authorized by Section 253.104 shall maintain
10-25 the contributions in a separate account.
10-26 (c) Nothing in this title shall prohibit a political party
10-27 from transferring funds held in the account required to be
10-28 maintained under Subsection (b) to another account maintained by
10-29 the political party under the requirements of federal law for the
10-30 purpose of disbursing the political party's funds generally if the
10-31 political party can reasonably demonstrate that the funds are being
10-32 disbursed from the other account in compliance with applicable
10-33 federal law and for permitted uses and purposes.
10-34 SECTION 24. The following laws are repealed:
10-35 (1) Sections 253.032 and 253.037, Election Code;
10-36 (2) Subsection (d), Section 253.100, Election Code;
10-37 (3) Sections 254.032 and 254.033, Election Code; and
10-38 (4) Section 254.039, Election Code.
10-39 SECTION 25. (a) The change in law made by this Act applies
10-40 only to an offense committed on or after the effective date of this
10-41 Act. For purposes of this section, an offense is committed before
10-42 the effective date of this Act if any element of the offense occurs
10-43 before the effective date.
10-44 (b) An offense committed before the effective date of this
10-45 Act is covered by the law in effect when the offense was committed,
10-46 and the former law is continued in effect for that purpose.
10-47 SECTION 26. Sections 253.042 and 253.162, Election Code, as
10-48 amended by this Act, apply only to repayment of a loan or extension
10-49 of credit made on or after September 1, 2001. The repayment of a
10-50 loan or extension of credit made before September 1, 2001, is
10-51 governed by the law in effect on the date the loan or extension of
10-52 credit was made, and the former law is continued in effect for that
10-53 purpose.
10-54 SECTION 27. This Act takes effect September 1, 2001.
10-55 * * * * *