80R1571 ESH-D

By: Villarreal H.B. No. 111

A BILL TO BE ENTITLED

AN ACT

relating to limits on political contributions and direct campaign expenditures by individuals, partnerships, partners, and limited liability companies; providing civil and criminal penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. This Act may be cited as the "Clean Elections Act."

SECTION 2. Chapter 253, Election Code, is amended by adding Subchapter G to read as follows: SUBCHAPTER G. AGGREGATE LIMIT ON CONTRIBUTIONS BY INDIVIDUAL, PARTNERSHIP, PARTNER, OR LIMITED LIABILITY COMPANY

Sec. 253.201. APPLICABILITY OF SUBCHAPTER. This subchapter applies only to:

(1) a political contribution to a political committee established by a political party;

(2) a political contribution to a candidate for or holder of one of the following offices:

(A) a statewide office;

(B) the office of state senator;

(C) the office of state representative;

(D) the office of member, State Board of Education;

(E) the office of justice or chief justice, court of appeals; or

(F) the office of district judge;

(3) a political contribution to a specific-purpose committee for supporting or opposing a candidate for an office described by Subdivision (2) or assisting a holder of such an office; and

(4) as provided by Section 253.206, a direct campaign expenditure in connection with an office described by Subdivision (2).

Sec. 253.202. DEFINITION. In this subchapter, "election cycle" means the period beginning on January 1 of an odd-numbered year and ending on December 31 of the following even-numbered year.

Sec. 253.203. CONTRIBUTION LIMITS. (a) An individual may not knowingly make or authorize political contributions to which this subchapter applies that in the aggregate exceed $100,000 in an election cycle.

(b) Notwithstanding Subsection (a), an individual who is younger than 18 years of age and who has not had the disabilities of minority removed for general purposes may not knowingly make or authorize political contributions to which this subchapter applies that in the aggregate exceed $5,000 in an election cycle.

(c) A candidate, officeholder, or political committee may not knowingly accept a political contribution that the person knows to have been made or authorized in violation of Subsection (a) or (b). A candidate, officeholder, or political committee that receives a political contribution made in violation of Subsection (a) or (b) shall return the contribution to the individual making the contribution not later than the 10th day after the date on which the person determines the contribution has been made in violation of Subsection (a) or (b).

(d) A person may not knowingly aid or abet the making of a political contribution in violation of Subsection (a) or (b).

(e) A person who violates this section commits an offense. An offense under this subsection is a felony of the third degree.

Sec. 253.204. RECEIPT OF CONTRIBUTION INTENDED FOR ANOTHER. For purposes of Section 253.203, a political contribution is considered to be a contribution to a candidate, officeholder, or political committee if the person making the contribution in any way indicates to the person receiving the contribution that the contribution is intended for the candidate, officeholder, or committee. A person that receives a political contribution to which this section applies shall:

(1) report the contribution under Chapter 254 as if the person were a general-purpose committee;

(2) notify in writing the candidate, officeholder, or political committee for whom the contribution is intended of the amount of the contribution, the date it was made, and the name and address of the person making the contribution; and

(3) not later than the 14th business day after the date on which the person receives the contribution, deliver the contribution to the candidate, officeholder, or political committee for whom the contribution is intended.

Sec. 253.205. CONTRIBUTIONS BY PARTNERSHIPS, PARTNERS, AND LIMITED LIABILITY COMPANIES. (a) A general or limited partnership may not knowingly make or authorize political contributions to which this subchapter applies that in the aggregate exceed $100,000 in an election cycle.

(b) A political contribution by a general or limited partnership shall be attributed to the partnership and, as follows, to each partner for purposes of the aggregate limit prescribed by Section 253.203:

(1) in direct proportion to the partner's share of the partnership profits, according to instructions provided by the partnership to the candidate, officeholder, or political committee; or

(2) by agreement of the partners, but only if:

(A) only a partner to whom the contribution is attributed has the partner's profits reduced or losses increased; and

(B) a partner's profits are reduced or losses are increased in proportion to the amount of the contribution attributed to the partner.

(c) No portion of a political contribution may be made from the profits of a partner that is a corporation to which Subchapter D applies.

(d) A political contribution by a limited liability company that elects to be treated as a partnership by the Internal Revenue Service, or that does not elect to be treated as a partnership or corporation, is considered a contribution subject to Subsections (a) and (b).

(e) A political contribution by a limited liability company that elects to be treated as a corporation by the Internal Revenue Service is considered a contribution by a corporation to which Subchapter D applies.

Sec. 253.206. CERTAIN DIRECT CAMPAIGN EXPENDITURES CONSIDERED CONTRIBUTION TO CANDIDATE. For purposes of Section 253.203, 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. 253.207. REVIEW OF CONTRIBUTIONS BY COMMISSION. Not later than March 1 of each odd-numbered year, the commission shall:

(1) conduct a comprehensive computer review of the commission's records of political contributions made by individuals during the preceding election cycle to determine if any individual exceeded the limit prescribed by Section 253.203; and

(2) make the results of the review available to the public.

SECTION 3. Section 254.034, Election Code, is amended by adding Subsection (f) to read as follows:

(f) This section applies to a political contribution covered by Subchapter G, Chapter 253, except as provided by Section 253.203.

SECTION 4. Subchapter G, Chapter 253, Election Code, as added by this Act, applies only to a political contribution or direct campaign expenditure made on or after September 1, 2007. A political contribution or direct campaign expenditure made before September 1, 2007, is governed by the law in effect at the time the contribution or expenditure was made and is not aggregated with political contributions or direct campaign expenditures made on or after that date.

SECTION 5. This Act takes effect September 1, 2007.