78R1770 ATP-D
By: Villarreal H.B. No. 310
A BILL TO BE ENTITLED
AN ACT
relating to the financing of campaigns for certain local government
offices; providing criminal penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 15, Election Code, is amended by adding
Chapter 259 to read as follows:
CHAPTER 259. CONTRIBUTION LIMITS AND REPORTING REQUIREMENTS IN
CONNECTION WITH CERTAIN LOCAL CAMPAIGNS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 259.001. APPLICABILITY OF CHAPTER. This chapter
applies only to an election for an office of:
(1) a county with a population of more than one million
and less than 1.4 million; or
(2) a political subdivision other than a county, any
part of which is located in a county described by Subdivision (1).
Sec. 259.002. DEFINITIONS. In this chapter:
(1) "In connection with an election" means:
(A) with regard to a contribution that is
designated in writing for a particular election, the election
designated; or
(B) with regard to a contribution that is not
designated in writing for a particular election or that is
designated as an officeholder contribution, the next election for
that office occurring after the contribution is made.
(2) "Office voted on citywide" means an office of a
municipality for which every qualified voter of the municipality
may vote.
(3) "Office voted on countywide" means an office of a
county for which every qualified voter of the county may vote.
[Sections 259.003-259.050 reserved for expansion]
SUBCHAPTER B. CONTRIBUTION LIMITS
Sec. 259.051. CONTRIBUTION LIMITS. (a) An individual or a
political committee may not knowingly make or authorize political
contributions to a candidate or officeholder in connection with an
election that in the aggregate exceed:
(1) for an office voted on citywide or countywide,
$2,500; or
(2) for an office other than an office voted on
citywide or countywide, $1,000.
(b) A person may not knowingly accept a political
contribution, and shall refuse a political contribution that is
received, in violation of Subsection (a).
(c) A person who violates this section is liable for a civil
penalty not to exceed three times the amount of the political
contributions made or accepted in violation of this section.
Sec. 259.052. CONTRIBUTION TO CERTAIN COMMITTEES
CONSIDERED CONTRIBUTION TO CANDIDATE OR OFFICEHOLDER. For purposes
of this chapter, a political contribution to a specific-purpose
committee for the purpose of supporting a candidate, opposing the
candidate's opponent, or assisting the candidate as an officeholder
is considered to be a contribution to the candidate or
officeholder.
Sec. 259.053. CERTAIN DIRECT CAMPAIGN EXPENDITURES
CONSIDERED CONTRIBUTION TO CANDIDATE. For purposes of this
chapter, a direct campaign expenditure is considered to be a
campaign contribution to a candidate if it is made with the
cooperation or prior consent of, in consultation with, or at the
suggestion of:
(1) the candidate;
(2) a specific-purpose committee for supporting the
candidate or opposing the candidate's opponent; or
(3) a person acting with the candidate's knowledge and
consent.
Sec. 259.054. NOTICE TO CERTAIN CANDIDATES OR OFFICEHOLDERS
OF INTENT TO ACCEPT CONTRIBUTIONS OR MAKE EXPENDITURES. (a) The
campaign treasurer of a specific-purpose committee that intends to
accept political contributions or make political expenditures for
the purpose of supporting a candidate for an office to which this
chapter applies, opposing such a candidate's opponent, or assisting
such a candidate as an officeholder shall deliver written notice of
the committee's intent to the candidate or officeholder.
(b) The notice must include the full name and address of the
specific-purpose committee and of its campaign treasurer.
(c) The notice must be delivered not later than the later
of:
(1) the date the committee files its campaign
treasurer appointment; or
(2) the third day after the date the committee
determines it intends to accept political contributions or make
political expenditures for which notice under this section is
required.
(d) A campaign treasurer who violates this section commits
an offense. An offense under this section is a Class A misdemeanor.
Sec. 259.055. NOTICE TO CANDIDATE, OFFICEHOLDER, OR
COMMITTEE OF RECEIPT OF CONTRIBUTION. (a) The campaign treasurer
of a specific-purpose committee that receives a political
contribution or makes a direct campaign expenditure that is
considered under Section 259.052 or 259.053 to be a contribution to
a candidate or officeholder shall, not later than the fifth day
after the date the contribution is received or the expenditure is
made, deliver written notice of that fact to the affected candidate
or officeholder.
(b) A candidate or officeholder who receives a political
contribution covered by this subchapter shall, not later than the
fifth day after the date the contribution is received, deliver
written notice of that fact to the campaign treasurer of each
specific-purpose committee that notifies the candidate or
officeholder under Section 259.054 that the committee intends to
accept political contributions or make political expenditures on
the candidate's or officeholder's behalf.
(c) A notice under this section must include:
(1) the full name and address of the person receiving
the political contribution and of the person's campaign treasurer,
if any;
(2) the full name and address of the person making the
contribution;
(3) the date the contribution is received; and
(4) the amount of the contribution.
(d) A person who violates this section commits an offense.
An offense under this section is a Class A misdemeanor.
Sec. 259.056. RETURN OF EXCESS CONTRIBUTION. (a) A person
who receives a political contribution the acceptance of which would
violate Section 259.051 shall return the contribution to the
contributor not later than the 10th day after the date the
contribution is received.
(b) A political contribution that is not returned as
required by this section is considered to be accepted.
[Sections 259.057-259.100 reserved for expansion]
SUBCHAPTER C. FUND-RAISING PERIOD
Sec. 259.101. APPLICABILITY. This subchapter applies to:
(1) a candidate for or holder of an office to which
this chapter applies; or
(2) a specific-purpose committee for supporting or
opposing a candidate for or assisting a holder of an office to which
this chapter applies.
Sec. 259.102. CONTRIBUTION AND SOLICITATION PROHIBITED
EXCEPT DURING ELECTION PERIOD. A candidate, officeholder, or
specific-purpose committee may not solicit or knowingly accept a
political contribution except during the period:
(1) beginning on the earlier of:
(A) the 120th day before the date of the primary
election, if any candidate for the office is nominated by primary
election; or
(B) the 120th day before the date of the general
election; and
(2) ending on the later of:
(A) the date of the general election; or
(B) the date of the runoff election, if the
candidate or officeholder is a candidate in the runoff election or
the specific-purpose committee supports or opposes a candidate in
the runoff election.
[Sections 259.103-259.150 reserved for expansion]
SUBCHAPTER D. GRASSROOTS CAMPAIGN
Sec. 259.151. GRASSROOTS CAMPAIGN DESIGNATION;
CONTRIBUTION LIMITS. (a) A candidate is designated as a grassroots
campaign candidate if the candidate does not accept political
contributions from a person in connection with an election that in
the aggregate exceed:
(1) for an office voted on citywide or countywide,
$1,250; or
(2) for an office other than an office voted on
citywide or countywide, $500.
(b) Sections 259.052-259.056 apply to the contribution
limits prescribed by Subsection (a).
Sec. 259.152. CONTRIBUTION MATCHING. (a) A political
subdivision shall match each political contribution not exceeding
$50 made to a candidate for an office of that political subdivision
who complies with the contribution limits prescribed by Section
259.151.
(b) A political subdivision may not pay more than $10,000 in
connection with an election to a candidate under this section.
(c) Money accepted by a candidate under this section is
considered to be a campaign contribution to the candidate. Except
as otherwise provided by this chapter, the provisions of this title
regulating the use of political contributions apply to money
accepted by a candidate under this section.
(d) A candidate may use money accepted under this section
only for expenses related to the candidate's campaign for election.
A candidate may not use money accepted under this section to make a
political contribution to another candidate or a political
committee.
(e) A candidate who accepts money from a political
subdivision under this section and who, after accepting the money,
receives a political contribution that exceeds the limits
prescribed by Section 259.151 shall:
(1) return the contribution as provided by Section
259.056; or
(2) return to the political subdivision any money paid
to the candidate by the political subdivision under this section.
Sec. 259.153. REFUND OF UNEXPENDED AMOUNTS. (a) A
candidate shall, within the period prescribed by Subsection (b),
refund amounts accepted under Section 259.152 that have not been
expended or contractually obligated.
(b) A candidate shall make a refund under this section to
the political subdivision not later than the 30th day after the date
of:
(1) the runoff election, if the candidate is a
candidate in the runoff election;
(2) the general election, if the candidate is a
candidate in the general election and there is no runoff election or
the candidate does not receive enough votes to be a candidate in the
runoff election;
(3) the runoff primary election, if the candidate is a
candidate in the runoff primary election and does not receive the
political party's nomination;
(4) the general primary election, if the candidate is
a candidate in the general primary election and does not receive the
political party's nomination or become a candidate in the runoff
primary election; or
(5) the nominating convention as to which the
candidate filed an application for nomination, if the candidate
does not receive the political party's nomination.
(c) The political subdivision shall deposit refunds
received under this section to the credit of the grassroots
candidate contribution matching fund.
(d) A person who violates this section is liable for a civil
penalty not to exceed three times the amount of money required to be
refunded that was not refunded as required by this section.
Sec. 259.154. WITHDRAWAL OR INELIGIBILITY OF CANDIDATE.
(a) A candidate who withdraws from an election or is declared
ineligible shall refund amounts accepted under Section 259.152 that
have not been expended or contractually obligated. The candidate
shall refund those amounts to the political subdivision not later
than the 10th day after the date the candidate withdraws or is
declared ineligible. The political subdivision shall deposit
refunds received under this section to the credit of the grassroots
candidate contribution matching fund.
(b) A person who violates this section is liable for a civil
penalty not to exceed three times the amount of money required to be
refunded that was not refunded as required by this section.
Sec. 259.155. GRASSROOTS CANDIDATE CONTRIBUTION MATCHING
FUND. (a) A political subdivision shall establish a grassroots
candidate contribution matching fund.
(b) The political subdivision may use money from the fund
only to match campaign contributions as provided by Section
259.152.
(c) The fund consists of amounts collected by the political
subdivision under Section 259.156 or refunded under Section 259.153
or 259.154.
Sec. 259.156. REGISTRATION OF LOCAL LOBBYIST; FEE. (a) A
person must register with a political subdivision under this
section if, to communicate directly with an officer or employee of
the political subdivision to influence legislative or
administrative actions of the political subdivision, the person:
(1) makes a total expenditure of $200 or more in a
calendar quarter, not including the person's own travel, food, or
lodging expenses or the person's own membership dues, on the
following activities:
(A) transportation and lodging;
(B) food and beverages;
(C) entertainment;
(D) gifts, awards, and mementos; and
(E) expenditures made for the attendance of
officers or employees of the political subdivision at political
fund-raisers or charity events; or
(2) receives compensation or reimbursement, not
including reimbursement for the person's own travel, food, or
lodging expenses or the person's own membership dues, of $200 or
more in a calendar quarter from another person.
(b) Subsection (a)(2) requires a person to register if the
person, as part of the person's regular employment, has
communicated directly with an officer or employee of the political
subdivision to influence legislative or administrative actions of
the political subdivision on behalf of another person by whom the
person is compensated or reimbursed, whether or not the person
receives any compensation for the communication in addition to the
salary for that regular employment. However, Subsection (a)(2)
does not require a member of the judicial, legislative, or
executive branch of state government or an officer or employee of a
political subdivision of the state to register under this section.
(c) A person described by Section 305.004, Government Code,
is not required to register with a political subdivision under this
section.
(d) The political subdivision shall require a person who
registers under this section to pay a fee.
(e) The governing body of the political subdivision shall:
(1) set the fee in an amount the governing body
considers necessary to generate sufficient money to match campaign
contributions under Section 259.152; and
(2) establish deadlines for registration under this
section.
SECTION 2. Subchapter B, Chapter 254, Election Code, is
amended by adding Section 254.0403 to read as follows:
Sec. 254.0403. INTERNET POSTING OF REPORTS RELATING TO
CERTAIN LOCAL CANDIDATES. (a) This section applies to a candidate
for or holder of an office covered by Chapter 259 or a
specific-purpose committee for supporting or opposing a candidate
for or assisting a holder of such an office.
(b) The authority with whom a candidate, officeholder, or
specific-purpose committee files a report under this chapter shall
submit a copy of each report to the commission.
(c) The commission shall make the information submitted
under Subsection (b) available to the public on the Internet.
SECTION 3. Subchapter C, Chapter 254, Election Code, is
amended by adding Section 254.0612 to read as follows:
Sec. 254.0612. ADDITIONAL CONTENTS OF REPORTS BY CERTAIN
LOCAL CANDIDATES. In addition to the contents required by Sections
254.031 and 254.061, each report by a candidate for an office
covered by Chapter 259 must include, for each person from whom the
candidate filing the report has accepted political contributions
that in the aggregate exceed $500 and that are accepted during the
reporting period:
(1) the person's principal occupation or job title;
(2) the full name of the person's employer, if any;
(3) a statement as to whether the contributor is
engaged in business with the state or the political subdivision
served by the office the candidate seeks; and
(4) a statement as to whether the contributor has a bid
for a contract being considered by the state or the political
subdivision served by the office the candidate seeks.
SECTION 4. Subchapter D, Chapter 254, Election Code, is
amended by adding Section 254.0912 to read as follows:
Sec. 254.0912. ADDITIONAL CONTENTS OF REPORTS BY CERTAIN
LOCAL OFFICEHOLDERS. In addition to the contents required by
Sections 254.031 and 254.091, each report by a holder of an office
covered by Chapter 259 must include, for each person from whom the
officeholder filing the report has accepted political
contributions that in the aggregate exceed $500 and that are
accepted during the reporting period:
(1) the person's principal occupation or job title;
(2) the full name of the person's employer, if any;
(3) a statement as to whether the contributor is
engaged in business with the state or the political subdivision
served by the office the officeholder holds; and
(4) a statement as to whether the contributor has a bid
for a contract being considered by the state or the political
subdivision served by the office the officeholder holds.
SECTION 5. Subchapter E, Chapter 254, Election Code, is
amended by adding Section 254.1212 to read as follows:
Sec. 254.1212. ADDITIONAL CONTENTS OF REPORTS BY CERTAIN
LOCAL COMMITTEES. In addition to the contents required by Sections
254.031 and 254.121, each report by a specific-purpose committee
for supporting or opposing a candidate for or assisting a holder of
an office covered by Chapter 259 must include, for each person from
whom the committee filing the report has accepted political
contributions that in the aggregate exceed $500 and that are
accepted during the reporting period:
(1) the person's principal occupation or job title;
(2) the full name of the person's employer, if any;
(3) a statement as to whether the contributor is
engaged in business with the state or the political subdivision
served by the office that is sought by the candidate supported or
opposed by the committee or that is held by the officeholder
assisted by the committee; and
(4) a statement as to whether the contributor has a bid
for a contract being considered by the state or the political
subdivision served by the office that is sought by the candidate
supported or opposed by the committee or that is held by the
officeholder assisted by the committee.
SECTION 6. (a) Chapter 259, Election Code, as added by this
Act, applies only to a political contribution accepted on or after
September 1, 2003. A political contribution accepted before
September 1, 2003, is governed by the law in effect at the time the
contribution was accepted and is not aggregated with political
contributions accepted on or after that date.
(b) A person is required to register with a political
subdivision under Section 259.156, Election Code, as added by this
Act, only for expenditures made or reimbursement or compensation
received on or after September 1, 2003.
(c) Sections 254.0403, 254.0612, 254.0912, and 254.1212,
Election Code, as added by this Act, apply only to the reporting of
a political contribution accepted on or after September 1, 2003.
The reporting of a political contribution accepted before September
1, 2003, is governed by the law in effect at the time the
contribution was accepted.
SECTION 7. This Act takes effect September 1, 2003.