80R9122 DLF/ESH-F

By: Geren H.B. No. 3691

A BILL TO BE ENTITLED

AN ACT

relating to the ethics of public servants.

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

SECTION 1. Section 253.034, Election Code, is amended by adding Subsections (a-1), (a-2), (b-1), and (c-1) and amending Subsections (b) and (c) to read as follows:

(a-1) During the period beginning on the date the governor calls a special legislative session and continuing through the date of final adjournment, a person may not knowingly make a political contribution to:

(1) a statewide officeholder;

(2) a member of the legislature; or

(3) a specific-purpose committee for supporting, opposing, or assisting a statewide officeholder or member of the legislature.

(a-2) For purposes of Subsection (a-1), the date the governor calls a special legislative session is the earlier of:

(1) the date the governor signs the proclamation calling the special legislative session; or

(2) the date the governor publicly announces the date on which the special legislative session will convene.

(b) A statewide officeholder, a member of the legislature, or a specific-purpose committee for supporting, opposing, or assisting a statewide officeholder or member of the legislature may not knowingly accept a political contribution, and shall refuse a political contribution that is received, during the period prescribed by Subsection (a) or (a-1). A political contribution that is received and refused during that period shall be returned to the contributor not later than the 30th day after the date of receipt.

(b-1) A contribution made by mail is not considered received during the [that] period prescribed by Subsection (a) or (a-1) if it was placed with postage prepaid and properly addressed in the United States mail before the beginning of the period. The date indicated by the post office cancellation mark is considered to be the date the contribution was placed in the mail unless proven otherwise.

(c) Subsections (a) and (a-1) do [This section does] not apply to a political contribution that was made and accepted with the intent that it be used:

(1) in an election held or ordered during the period prescribed by Subsection (a) or (a-1) in which the person accepting the contribution is a candidate if the contribution was made after the person appointed a campaign treasurer with the appropriate authority and before the person was sworn in for that office; or

(2) to defray expenses incurred in connection with an election contest.

(c-1) Subsection (a) does not apply to a political contribution that was made and accepted with the intent that it be used by:

(1) [; or

[(3)by] a person who holds a state office or a member of the legislature if the person or member was defeated at the general election held immediately before the session is convened; or

(2) [by] a specific-purpose political committee that supports or assists only a [that] person or member described by Subdivision (1).

SECTION 2. The heading to Section 253.034, Election Code, is amended to read as follows:

Sec. 253.034. RESTRICTIONS ON CONTRIBUTIONS BEFORE, DURING, AND FOLLOWING [REGULAR] LEGISLATIVE SESSION.

SECTION 3. Section 254.031, Election Code, is amended by adding Subsections (a-2) and (a-3) to read as follows:

(a-2) Each report filed under this chapter by a candidate for or holder of an office specified by Section 252.005(1)(A), (D), (E), or (F), a specific-purpose committee for supporting or assisting a candidate for such an office or assisting such an officeholder, or a general-purpose committee must include, for each person who provides campaign consulting or campaign management services to the candidate, officeholder, or committee:

(1) an indication that the person provides campaign consulting or campaign management services, as appropriate;

(2) if the person is not an individual, the full name of each individual employed by the person to provide campaign consulting or campaign management services to the candidate, officeholder, or committee; and

(3) if the person or a business associate of the person is required to register under Chapter 305, Government Code, the category of the amount of each fee the person or business associate receives for activities requiring registration under that chapter.

(a-3) For purposes of Subsection (a-2)(3), a business associate of a person includes an employee of the person or a partner or other person professionally associated with the person through a common business entity, other than a client, who reimburses, retains, or employs the person required to register under Chapter 305, Government Code.

SECTION 4. Chapter 301, Government Code, is amended by adding Subchapter F to read as follows: SUBCHAPTER F. FILING OF LEGISLATION

Sec. 301.101. FILING OF LEGISLATION BEFORE REGULAR SESSION CONVENES. Beginning on the 30th day before the date a regular legislative session convenes, a person who will be a member of the legislature during that legislative session may file with the chief clerk of the house of representatives or the secretary of the senate, as appropriate, bills and resolutions for introduction in that session.

SECTION 5. Section 305.003, Government Code, is amended by adding Subsections (b-3), (d), and (e) to read as follows:

(b-3) Subsection (a)(2) does not require a person to register if the person spends not more than five percent of the time for which the person is compensated or reimbursed during the calendar quarter engaging in activity to communicate directly with a member of the legislative or executive branch to influence legislation or administrative action.

(d) A corporation, association, firm, partnership, committee, club, organization, or other group of persons is not required to register under this section if the expenditures made on behalf of the entity, and compensation paid by the entity, to communicate directly with a member of the legislative or executive branch to influence legislation or administrative action are reported by an individual who is a registrant in accordance with this chapter and rules of the commission.

(e) An expenditure made by a member of the judicial, legislative, or executive branch acting in the member's official capacity is not included for purposes of determining whether a person is required to register in accordance with Subsection (a)(1).

SECTION 6. Section 305.004, Government Code, is amended to read as follows:

Sec. 305.004. EXCEPTIONS. The following persons are not required to register under this chapter in accordance with Section 305.003(a)(2):

(1) a person who owns, publishes, or is employed by a newspaper, any other regularly published periodical, a radio station, a television station, a wire service, or any other bona fide news medium that in the ordinary course of business disseminates news, letters to the editors, editorial or other comment, or paid advertisements that directly or indirectly oppose or promote legislation or administrative action, if the person does not engage in further or other activities that require registration under this chapter and does not represent another person in connection with influencing legislation or administrative action;

(2) a person whose only direct communication with a member of the legislative or executive branch to influence legislation or administrative action is to:

(A) provide oral or written comments to one or more members of the executive branch in connection with a rulemaking process; or

(B) appear before, or make another type of communication [is an appearance before or testimony] to, one or more members of the legislative or executive branch in connection with a hearing conducted by or on behalf of either the legislative or the executive branch [and who does not receive special or extra compensation for the appearance other than actual expenses incurred in attending the hearing];

(3) a person whose only activity is to encourage or solicit members, employees, or stockholders of an entity by whom the person is reimbursed, employed, or retained to communicate directly with members of the legislative or executive branch to influence legislation or administrative action;

(4) a person whose only activity to influence legislation or administrative action is to compensate or reimburse an individual registrant to act in the person's behalf to communicate directly with a member of the legislative or executive branch to influence legislation or administrative action;

(5) a person whose only activity to influence legislation or administrative action is attendance at a meeting or entertainment event attended by a member of the legislative or executive branch if the total cost of the meeting or entertainment event is paid by a business entity, union, or association;

(6) a person whose only compensation subject to Section 305.003(a)(2) consists of reimbursement for any wages not earned due to attendance at a meeting or entertainment event, travel to and from the meeting or entertainment event, admission to the meeting or entertainment event, and any food and beverage consumed at the meeting or entertainment event if the meeting or entertainment event is attended by a member of the legislative or executive branch and if the total cost of the meeting or entertainment event is paid by a business entity, union, or association; [and]

(7) a person who communicates directly with a member of the legislative or executive branch on behalf of a political party concerning legislation or administrative action, and whose expenditures and compensation, as described in Section 305.003, combined do not exceed $5,000 a calendar year;

(8) a person who is requesting a written opinion that interprets a law, regulation, rule, policy, practice, or procedure administered by a state agency, if the person does not engage in further or other activities that require registration under Section 305.003;

(9) a person who does not engage in further or other activities that require registration under Section 305.003 and who, in preparing or submitting an application or other written document, merely provides information that:

(A) is required by law, order, or subpoena; or

(B) responds to a document prepared by a state agency;

(10) a person who is communicating merely for the purpose of demonstrating compliance with an audit, inspection, examination of a financial institution, or government investigation to interpret and determine compliance with existing laws, policies, and procedures;

(11) a person who is communicating to achieve compliance with existing laws, rules, policies, and procedures, including communicating to show qualification for an exception of general applicability that is available under existing laws, rules, policies, and procedures;

(12) a person who is communicating as a member of an advisory committee or task force and who is appointed to serve in that capacity by a member of the legislative or executive branch;

(13) a person who is communicating to respond to a specific request for information from a member of the legislative or executive branch, if the request was not solicited by or on behalf of the person providing the information;

(14) a person who is communicating to legal counsel of a state agency, an administrative law judge, or a hearings examiner concerning:

(A) litigation or adjudicative proceedings to which the agency is a party; or

(B) adjudicative proceedings of that agency;

(15) a person who is communicating to provide testimony, make an appearance, or make any other type of communication documented as part of a public record in a proceeding of an adjudicative nature of the type authorized by or subject to Chapter 2001, without regard to whether that proceeding is subject to Chapter 551;

(16) a person who is providing only clerical assistance to another in connection with the other person's activities that require registration under this chapter, such as a person who merely types or delivers another person's letter to a member of the legislative or executive branch, if the person does not engage in further or other activities that require registration under Section 305.003; or

(17) a person who is communicating as an employee or contractor of a vendor of a product or service to a member of the executive branch concerning a purchasing decision of a state agency if the purchasing decision is not required to be competitively bid.

SECTION 7. Section 305.005, Government Code, is amended by amending Subsections (f), (j), and (k) and adding Subsections (l) and (m) to read as follows:

(f) The registration must be written and verified and must contain:

(1) the registrant's full name and address;

(2) the registrant's normal business, business phone number, and business address;

(3) the full name and address of each person:

(A) who reimburses, retains, or employs the registrant to communicate directly with a member of the legislative or executive branch to influence legislation or administrative action; and

(B) on whose behalf the registrant has communicated directly with a member of the legislative or executive branch to influence legislation or administrative action;

(4) the subject matter of the legislation or of the administrative action that is the subject of the registrant's direct communication with a member of the legislative or executive branch and, if applicable, the docket number or other administrative designation of the administrative action;

(5) for each person employed or retained by the registrant or by the person described by Subdivision (3) for the purpose of assisting the registrant in direct communication with a member of the legislative or executive branch to influence legislation or administrative action:

(A) the full name, business address, and occupation of the person; and

(B) the subject matter of the legislation or of the administrative action to which the person's activities reportable under this section were related and, if applicable, the docket number or other administrative designation of the administrative action; [and]

(6) the amount of compensation or reimbursement paid by each person who reimburses, retains, or employs the registrant for the purpose of communicating directly with a member of the legislative or executive branch or on whose behalf the registrant communicates directly with a member of the legislative or executive branch; and

(7) a statement as to whether the registrant provides campaign consulting or campaign management services reported under Section 254.031(a-2), Election Code, as paid or retained by a candidate, officeholder, or political committee.

(j) If the person described by Subsection (f)(3) is a business entity engaged in the representation of clients for the purpose of influencing legislation or administrative action, the registrant shall give the information required by that subdivision for each client on whose behalf the registrant, or a person employed or retained to assist the registrant as described by Subsection (f)(5), communicated directly with a member of the legislative or executive branch.

(k) Except as provided by Subsection (l), if [If] there is a change in the information required to be reported by a registrant under this section, other than Subsection (h) or (i), and that changed information is not timely reported on a report due under Section 305.007, the registrant shall file an amended statement reflecting the change with the commission not later than the date on which the next report is due under Section 305.007.

(l) A registrant shall file an amended statement described by Subsection (k) not later than the fifth business day after the date the registrant first makes a communication that is subject to registration under this chapter and that is made after the change in information becomes effective if:

(1) the change in the information occurs during a regular or special legislative session; or

(2) the change in the information occurs during the pendency of a state agency purchasing decision with respect to which the registrant is communicating with, or has communicated with, a member of the executive branch.

(m) A registrant is not required, under Subsection (f)(5) or (j), to include information concerning another person in a registration if:

(1) the other person is also a registrant; and

(2) any client required to be included for the other person in the registrant's registration under Subsection (f)(3) or (j) is included in the other person's registration.

SECTION 8. Subchapter A, Chapter 305, Government Code, is amended by adding Section 305.012 to read as follows:

Sec. 305.012. SEARCHABLE DATABASE. The commission shall maintain and make available through the Internet a searchable database that includes, for each registrant:

(1) the name of each person employed or retained to assist the registrant as described by Section 305.005(f)(5);

(2) each client on behalf of whom the person described by Subdivision (1) communicated directly with a member of the legislative or executive branch to influence legislation or administrative action; and

(3) whether the registrant provides campaign consulting or management services described by Section 305.005(f)(7).

SECTION 9. Section 571.073, Government Code, is amended to read as follows:

Sec. 571.073. REPORT. On or before December 31 of each even-numbered year, the commission shall report to the governor and legislature. The report must include:

(1) each advisory opinion issued by the commission under Subchapter D in the preceding two years;

(2) a summary of commission activities in the preceding two years, including:

(A) the number of sworn complaints filed with the commission;

(B) the number of sworn complaints dismissed for noncompliance with statutory form requirements;

(C) the number of sworn complaints dismissed for lack of jurisdiction;

(D) the number of sworn complaints dismissed after a finding of no credible evidence of a violation;

(E) the number of sworn complaints dismissed after a finding of a lack of sufficient evidence to determine whether a violation within the jurisdiction of the commission has occurred;

(F) the number of sworn complaints resolved by the commission through an agreed order;

(G) the number of sworn complaints in which the commission issued an order finding a violation and the resulting penalties, if any; and

(H) the number and amount of civil penalties imposed for failure to timely file a statement or report, the number and amount of those civil penalties fully paid, the number and amount of those civil penalties partially paid, and the number and amount of those civil penalties no part of which has been paid, for each of the following category of statements and reports, listed separately:

(i) financial statements required to be filed under Chapter 572;

(ii) political contribution and expenditure reports required to be filed under Section 254.063, 254.093, 254.123, 254.153, or 254.157, Election Code;

(iii) political contribution and expenditure reports required to be filed under Section 254.064(b), 254.124(b), or 254.154(b), Election Code;

(iv) political contribution and expenditure reports required to be filed under Section 254.064(c), 254.124(c), or 254.154(c), Election Code; and

(v) political contribution and expenditure reports required to be filed under Section 254.038 or 254.039, Election Code; and

[(vi) political contribution and expenditure reports required to be filed under Section 254.0391, Election Code; and]

(3) recommendations for any necessary statutory changes.

SECTION 10. Section 254.0391, Election Code, is repealed.

SECTION 11. (a) Section 253.034, Election Code, as amended by this Act, applies only to a political contribution made on or after the effective date of this Act. A political contribution made before the effective date of this Act is governed by the law in effect on the date the contribution is made, and the former law is continued in effect for that purpose.

(b) Section 254.031, Election Code, as amended by this Act, applies only to a report of political contributions and expenditures under Chapter 254, Election Code, that is required to be filed on or after September 1, 2007. A report of political contributions and expenditures under Chapter 254, Election Code, that is required to be filed before September 1, 2007, is governed by the law in effect on the date the report is required to be filed, and the former law is continued in effect for that purpose.

(c) The repeal of Section 254.0391, Election Code, by this Act, applies only to the reporting of a political contribution accepted on or after the effective date of this Act. The reporting of a political contribution accepted before the effective date of this Act is governed by the law in effect on the date the contribution is accepted, and the former law is continued in effect for that purpose.

SECTION 12. Section 305.005, Government Code, as amended by this Act, applies only to a registration, registration renewal, or amended registration statement required to be filed under Chapter 305, Government Code, on or after September 1, 2007. A registration, registration renewal, or amended registration statement required to be filed under Chapter 305, Government Code, before September 1, 2007, is governed by the law as it existed immediately before September 1, 2007, and that law is continued in effect for that purpose.

SECTION 13. The Texas Ethics Commission shall establish the searchable database required by Section 305.012, Government Code, as added by this Act, not later than January 1, 2008.

SECTION 14. This Act takes effect September 1, 2007.