78R13620 ESH-D


By:  Naishtat                                                     H.B. No. 266

Substitute the following for H.B. No. 266:                                    

By:  Denny                                                    C.S.H.B. No. 266



A BILL TO BE ENTITLED

AN ACT

relating to restrictions on payment of certain loans with political 
contributions.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.   Section 253.042(b), Election Code, is amended 
to read as follows:
	(b)  A candidate or officeholder who accepts one or more 
political contributions in the form of loans, including an 
extension of credit or a guarantee of a loan or extension of credit, 
from one or more persons related to the candidate or officeholder 
within the second degree by affinity or consanguinity may not use 
political contributions to repay the loans in amounts that in the 
aggregate exceed the amount prescribed by Subsection (a).  A 
candidate or officeholder may not use political contributions, in 
amounts that in the aggregate exceed the amount prescribed by 
Subsection (a), to repay any other loan or extension of credit that 
the candidate or officeholder guarantees.
	SECTION 2.   Section 253.162, Election Code, is amended by 
amending Subsections (b) and (c) and adding Subsection (b-1) to 
read as follows:
	(b)  A judicial candidate or officeholder may not:                      
		(1)  use political contributions to repay a loan [who 
accepts one or more political contributions in the form of loans], 
including an extension of credit or a guarantee of a loan or 
extension of credit, from one or more persons related to the 
candidate or officeholder within the second degree by 
consanguinity, as determined under [Subchapter B,] Chapter 573, 
Government Code; or
		(2)  use political contributions, in amounts that in 
the aggregate exceed the amount prescribed by Subsection (a), to 
repay any other loan or extension of credit that the candidate or 
officeholder guarantees[, may not use political contributions to 
repay the loans].
	(b-1)  The total amount of both reimbursements under 
Subsection (a) and repayments under Subsection (b)(2) made by a 
candidate or officeholder may not exceed the amount prescribed by 
Subsection (a).
	(c)  A person who is both a candidate and an officeholder may 
reimburse the person's personal funds or repay loans from political 
contributions only in one capacity.
	SECTION 3.   Sections 253.042(b) and 253.162, Election Code, 
as amended by this Act, apply only to repayment of a loan or 
extension of credit made on or after September 1, 2003.  The 
repayment of a loan or extension of credit made before September 1, 
2003, is governed by the law in effect on the date the loan or 
extension of credit is made, and the former law is continued in 
effect for that purpose.
	SECTION 4.   This Act takes effect September 1, 2003.