80R860 ESH-D

By: Ellis S.B. No. 921

A BILL TO BE ENTITLED

AN ACT

relating to public financing of campaigns for legislative or executive office and to limits on political contributions to and direct campaign expenditures made on behalf of candidates, officeholders, and political committees in connection with legislative or executive offices; providing civil 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. PUBLIC FINANCING OF CAMPAIGNS FOR LEGISLATIVE OR EXECUTIVE OFFICE SUBCHAPTER A. GENERAL PROVISIONS

Sec. 259.001. APPLICABILITY OF CHAPTER. This chapter applies only to:

(1) a statewide office in the executive branch;

(2) the office of state senator;

(3) the office of state representative; or

(4) the office of member, State Board of Education.

Sec. 259.002. DEFINITIONS. In this chapter:

(1) "Election cycle" means:

(A) the general primary election, runoff primary election, if any, and general election for state and county officers; or

(B) a special election and runoff election, if any.

(2) "Fund" means the campaign financing fund established under Subchapter C.

Sec. 259.003. EFFECT OF ACCEPTING PUBLIC MONEY. By accepting money from the fund, a candidate agrees to not accept political contributions not authorized by this chapter.

Sec. 259.004. SPECIAL ELECTION TO FILL VACANCY IN LEGISLATURE. (a) The commission shall adopt rules prescribing the applicability of this chapter to a special election to fill a vacancy in the legislature. The rules must:

(1) address:

(A) petition requirements under Sections 259.013-259.016;

(B) the total amount of required campaign contributions under Section 259.017, the maximum amount of an individual contribution that may be accepted, and the time in which those contributions may be accepted; and

(C) the amount and timing of distributions from the fund for eligible candidates in the special election;

(2) provide greater funding for candidates for state senate than for candidates for state representative; and

(3) differentiate between a special election ordered for the same date as an election to fill that office for a full term and a special election ordered for another date.

(b) In adopting rules under this section, the commission shall balance the following interests:

(1) the state's interest in ensuring that public financing is provided under this chapter only to a candidate who can demonstrate at least a minimum level of support for the person's candidacy; and

(2) the interest of candidates in having sufficient funding to run a credible campaign under the time constraints of a special election. [Sections 259.005-259.010 reserved for expansion] SUBCHAPTER B. ELIGIBILITY FOR PUBLIC FINANCING

Sec. 259.011. REQUIREMENTS FOR ELIGIBILITY GENERALLY. To be eligible to receive public financing under this chapter, a candidate must:

(1) file with the commission a petition that satisfies the applicable requirements prescribed by:

(A) Subchapter C, Chapter 141, as if the petition were a petition filed in connection with a candidate's application for a place on the ballot; and

(B) Sections 259.013-259.016; and

(2) receive political contributions in the applicable amount and within the applicable period prescribed by Section 259.017.

Sec. 259.012. CERTIFICATION OF CANDIDATE AS CONDITIONALLY ELIGIBLE. (a) Not later than the 15th day after the date an application for a place on the ballot is required to be filed, the secretary of state shall certify in writing to the commission each person who is a candidate for an office covered by this chapter as conditionally eligible for public financing.

(b) Not later than the fifth day after the date the secretary of state certifies a candidate for placement on the list of write-in candidates as a candidate for an office covered by this chapter, the secretary shall certify the candidate in writing to the commission as conditionally eligible for public financing.

(c) The secretary of state shall deliver a copy of a certification under this section to the affected candidate.

Sec. 259.013. PETITION: CIRCULATION PERIOD; HEADING AND STATEMENT. (a) A petition under this subchapter may not be circulated before the beginning of the applicable period prescribed by Section 259.017(a).

(b) Each page of a petition under this subchapter must:

(1) be headed "Petition for Public Campaign Financing for (Name of Candidate), a Candidate for (Name of Office Sought and District Number, if Applicable)."; and

(2) contain a statement just ahead of the signatures of the petitioners, as follows: "I know that the purpose of this petition is to enable (name of candidate) to receive public financing in connection with (his or her) campaign for (name of office sought and district number, if applicable)."

(c) The circulation of a petition to be filed under this subchapter does not constitute candidacy or an announcement of candidacy for purposes of the automatic resignation provisions of Section 11, Article XI, or Section 65, Article XVI, Texas Constitution.

Sec. 259.014. PETITION: REQUIRED SIGNATURES. (a) A candidate's petition under this subchapter must be signed by:

(1) at least 1,000 registered voters, if the candidate seeks a statewide office;

(2) at least 750 registered voters, if the candidate seeks the office of state senator or member, State Board of Education; or

(3) at least 500 registered voters, if the candidate seeks the office of state representative.

(b) Not more than 20 percent of the required number of signers may be residents of:

(1) the same county, if the candidate seeks a statewide office;

(2) the same commissioners court precinct, if the candidate seeks a district office filled by voters of more than one county; or

(3) the same election precinct, if the candidate seeks a district office filled by voters of one county.

(c) A petition that violates Subsection (b) is not invalid if the petition would otherwise be valid if the signatures of residents of the same county or precinct, as applicable, in excess of the applicable number specified by Subsection (b) were disregarded.

(d) A person may not sign a petition under this subchapter for more than one candidate for the same office.

Sec. 259.015. REQUIRED POLITICAL CONTRIBUTIONS FROM PETITION SIGNERS. (a) A person who signs a petition under this subchapter must, at the time of signing, make a political contribution to the candidate in the form of cash or a check of at least $5 and not more than:

(1) $200, if the candidate seeks a statewide office;

(2) $150, if the candidate seeks the office of state senator; or

(3) $75, if the candidate seeks the office of state representative or member, State Board of Education.

(b) A political contribution accepted under this section is counted for purposes of Section 259.017.

Sec. 259.016. FILING OF PETITION. A candidate requesting public financing under this chapter must file the petition with the commission not later than the applicable deadline for filing an application for a place on the ballot or a declaration of write-in candidacy.

Sec. 259.017. REQUIRED CAMPAIGN CONTRIBUTIONS. (a) A candidate seeking public financing under this chapter must accept and receive at least the amount specified by Subsection (b) in political contributions during the period:

(1) beginning on the 120th day before the date an application for a place on the ballot or a declaration of write-in candidacy, as applicable, is required to be filed; and

(2) ending on the fifth day before the date an application for a place on the ballot or a declaration of write-in candidacy, as applicable, is required to be filed.

(b) The amount of required campaign contributions is:

(1) $30,000, if the candidate seeks the office of governor;

(2) $25,000, if the candidate seeks a statewide office other than governor;

(3) $20,000, if the candidate seeks the office of state senator; or

(4) $10,000, if the candidate seeks the office of state representative or member, State Board of Education.

(c) A candidate seeking public financing under this chapter may not accept a political contribution from a person during the applicable period prescribed by Subsection (a) that, when aggregated with all political contributions accepted by the candidate from the person during that period, would exceed:

(1) $200, if the candidate seeks a statewide office;

(2) $150, if the candidate seeks the office of state senator; or

(3) $75, if the candidate seeks the office of state representative or member, State Board of Education.

(d) A political contribution accepted under this section must be in the form of cash or a check. A candidate who receives a political contribution that would, if accepted, violate Subsection (c) shall return the contribution not later than the fifth day after the date the contribution is received.

(e) Not later than the fifth day after the date the commission certifies a candidate as eligible for public financing under Section 259.018, a candidate who received more in political contributions under this section than the applicable amount under Subsection (b) shall deliver to the commission an amount equal to the difference between the amount of political contributions received and the applicable amount under Subsection (b). The commission shall deliver money received under this subsection to the comptroller for deposit in the fund. A candidate who is not certified as eligible for public financing is not required to deliver excess political contributions to the commission under this subsection.

(f) Notwithstanding Section 254.034, a candidate who is requesting public financing and who accepts a political contribution under this section but who does not receive the contribution until after the applicable date prescribed by Subsection (a)(2) shall return the contribution to the contributor not later than the fifth day after the date the candidate receives the contribution.

Sec. 259.018. CERTIFICATION OF CANDIDATE AS ELIGIBLE. (a) Not later than the fifth day after the date the commission determines a candidate is eligible, the commission shall certify to the comptroller as eligible for public financing each candidate who:

(1) meets the requirements prescribed by Section 259.011; and

(2) is certified to the commission as conditionally eligible under Section 259.012.

(b) A determination as to whether a candidate meets the requirements prescribed by Section 259.017 must be based on reports of political contributions and expenditures filed under Chapter 254. The commission is not required to make a determination as to whether a candidate is eligible until the candidate makes a written request for a determination. The commission shall make a determination not later than the 15th day after the later of:

(1) the date the commission receives the request for a determination; or

(2) the date the candidate files a report under Chapter 254 covering the period prescribed by Section 259.017.

(c) The commission shall deliver a copy of a certification under this section to:

(1) the affected candidate; and

(2) each opponent of the affected candidate.

Sec. 259.019. VERIFICATION OF PETITION. (a) The commission is not required to verify a petition filed under this subchapter unless, not later than the 10th day after the date a petition is required to be filed under Section 259.016, a person alleges to the commission in writing that the petition does not meet the requirements prescribed by Subchapter C, Chapter 141, and Sections 259.013-259.016.

(b) The commission shall verify a petition as promptly as possible after receiving an allegation under Subsection (a). Pending verification, the commission may not certify the candidate to the comptroller as eligible for public financing.

(c) On request of the commission, a voter registrar shall verify the voter registration status of a signer of a petition filed with the commission who the petition indicates is registered or has been approved for registration in the county served by the registrar.

(d) If the commission verifies that the petition meets the requirements prescribed by Subchapter C, Chapter 141, and Sections 259.013-259.016:

(1) the commission shall certify the candidate to the comptroller as eligible for public financing; and

(2) the comptroller shall distribute to the candidate from the fund any money to which the candidate would have been entitled if the candidate had been eligible during the period in which the verification was pending. [Sections 259.020-259.050 reserved for expansion] SUBCHAPTER C. CAMPAIGN FINANCING FUND

Sec. 259.051. CAMPAIGN FINANCING FUND. (a) The campaign financing fund is in the state treasury.

(b) The fund consists of:

(1) amounts transferred to the fund under Subsection (c);

(2) amounts refunded to the fund under Section 259.055 or 259.056;

(3) amounts delivered to the commission under Section 259.017(e);

(4) amounts appropriated to the fund;

(5) amounts received by the commission or comptroller as a gift or grant to the fund; and

(6) civil penalties collected by the commission for a violation of this chapter or Subchapter G, Chapter 253.

(c) Each even-numbered calendar year, the comptroller shall transfer to the fund from the general revenue fund amounts that in the aggregate equal _____ percent of the sales and use taxes, not including penalties or interest, collected under Chapter 151, Tax Code, in that calendar year and the preceding calendar year. The comptroller shall make the transfers as necessary to permit the comptroller to make the distributions required by Section 259.053.

(d) For a person to be eligible to receive public financing, the commission must certify to the comptroller that the person is eligible as provided by Section 259.018.

(e) Money remaining in the fund at the end of an election cycle is retained in the fund for the next election cycle. The comptroller shall credit interest on money in the fund to the fund. Money in the fund may be appropriated only for purposes of this chapter.

Sec. 259.052. FUNDS FOR ELIGIBLE CANDIDATES. (a) In connection with each general election for state and county officers, the commission shall, not later than the 130th day before the date an application for a place on the primary election ballot is required to be filed, adopt rules prescribing the total amount of public financing to which a candidate for an office covered by this chapter whose name will appear on the ballot is entitled. The commission shall determine the amount under this subsection based on:

(1) the allocations prescribed by Subsections (b)-(d);

(2) the comptroller's certified estimation as to the amount that will be available in the fund for the calendar year in which the election occurs; and

(3) the secretary of state's estimation, based on previous elections, of the number of candidates in each office covered by this chapter who will be on the primary election ballot or the general election ballot for that election.

(b) Except as provided by Subsection (c), the commission shall prescribe amounts under Subsection (a) using the following allocations:

(1) in gubernatorial election years:

(A) 10 percent of the amount that will be available in the fund is allocated for candidates for governor;

(B) 20 percent of the amount that will be available in the fund is allocated for statewide candidates other than governor;

(C) 20 percent of the amount that will be available in the fund is allocated for candidates for state senate;

(D) 40 percent of the amount that will be available in the fund is allocated for candidates for state representative; and

(E) 10 percent of the amount that will be available in the fund is allocated for candidates for State Board of Education; and

(2) in non-gubernatorial election years:

(A) 30 percent of the amount that will be available in the fund is allocated for candidates for state senate;

(B) 50 percent of the amount that will be available in the fund is allocated for candidates for state representative;

(C) 10 percent of the amount that will be available in the fund is allocated for candidates for State Board of Education; and

(D) 20 percent of the amount that will be available in the fund is reserved for use in the next election cycle.

(c) The allocations prescribed by Subsection (b) apply only in an election year that does not follow a reapportionment of state senatorial districts or State Board of Education districts. In an election year that follows a reapportionment of state senatorial districts or State Board of Education districts, the allocations prescribed by Subsection (b) for candidates for state senate or State Board of Education are multiplied by 1.75 and the allocations for candidates in each other category and for reservation for the next election cycle are reduced by equal proportions as necessary.

(d) In any election year in which an office is on the ballot solely because an unexpired term must be filled, the allocation prescribed by Subsection (b) for that category of offices is increased by an amount determined in accordance with commission rules consistent with this section.

(e) The rules adopted under Subsection (a) must specify the amount of each monthly distribution from the fund. The amount of a monthly distribution made for January, February, or March must be substantially greater than the amount of a monthly distribution made for any other month.

Sec. 259.053. DISTRIBUTIONS FROM FUND. (a) A certified candidate is entitled to a distribution from the fund for each month that begins or ends during the period:

(1) beginning on the date an application for a place on the ballot or a declaration of write-in candidacy, as applicable, is required to be filed; and

(2) except as provided by Subsection (b), ending on the 30th day after:

(A) the date an application for a place on the ballot is required to be filed, if the candidate will not have an opponent in the primary election or general election;

(B) the date of the primary election, if the candidate has an opponent in the primary election and:

(i) will not have an opponent in the general election; or

(ii) is not a candidate in the runoff primary election or the general election;

(C) the date of the runoff primary election, if the candidate is a candidate in that election and:

(i) will not have an opponent in the general election; or

(ii) is not a candidate in the general election; or

(D) the date of the general election.

(b) Notwithstanding Subsection (a)(2), after a person files a declaration of write-in candidacy opposing a certified candidate who would otherwise not have an opponent in the general election:

(1) the certified candidate is entitled to an amount equal to 50 percent of each distribution from the fund scheduled to be made after the date the candidate's opponent files the declaration of write-in candidacy; and

(2) if the write-in candidate is certified as eligible under Section 259.018, the write-in candidate is entitled to an amount equal to 50 percent of each distribution from the fund scheduled to be made after the date the candidate files the declaration of write-in candidacy.

(c) The comptroller shall distribute money to certified candidates as directed by the commission. If the amount in the fund is insufficient to provide the amounts specified by rules adopted under Section 259.052, the comptroller shall determine the amount of available money and shall distribute the amount on a pro rata basis.

Sec. 259.054. RESTRICTIONS ON USE OF MONEY FROM FUND. (a) Money accepted by a candidate from the fund 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 from the fund.

(b) A candidate may use money accepted from the fund only for expenses related to the candidate's campaign for election. A candidate may not use money accepted from the fund to make:

(1) a political contribution to another candidate, an officeholder, or a political committee;

(2) a campaign expenditure in connection with an office other than the office as to which the candidate accepted the money; or

(3) an officeholder expenditure.

(c) A candidate who uses money from the fund in violation of Subsection (b):

(1) is not eligible for any additional money from the fund; and

(2) is liable for a civil penalty not to exceed three times the amount of the money used in violation of Subsection (b).

Sec. 259.055. REFUND OF UNEXPENDED AMOUNTS. (a) Following the candidate's last election during the election cycle for which public financing is accepted, a candidate shall refund to the comptroller amounts accepted from the fund that have not been expended or contractually obligated.

(b) A refund under this section must be made not later than the 30th day after the date of:

(1) the primary election, if the candidate is not a candidate in the runoff primary election or the general election;

(2) the runoff primary election, if the candidate is a candidate in that election and is not a candidate in the general election; or

(3) the general election.

(c) The comptroller shall deposit refunds received under this section to the credit of the 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. 259.056. WITHDRAWAL, INELIGIBILITY, OR DEATH OF CANDIDATE. (a) A candidate who withdraws from an election or is declared ineligible shall refund to the comptroller amounts accepted from the fund that have not been expended or contractually obligated. The candidate shall refund those amounts not later than the 10th day after the date the candidate withdraws or is declared ineligible.

(b) The campaign treasurer of a candidate who dies shall refund to the comptroller amounts accepted from the fund that have not been expended or contractually obligated. The campaign treasurer shall refund those amounts not later than the 30th day after the date the candidate dies.

(c) The comptroller shall deposit refunds received under this section to the credit of the 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. 259.057. DEPOSIT OF CIVIL PENALTIES. The comptroller shall deposit a civil penalty collected by the commission for a violation of this subchapter to the credit of the fund. [Sections 259.058-259.100 reserved for expansion] SUBCHAPTER D. RESTRICTIONS ON ACCEPTANCE AND USE OF POLITICAL CONTRIBUTIONS

Sec. 259.101. ACCEPTANCE OF CONTRIBUTIONS PROHIBITED. (a) Except as provided by Section 259.015, 259.017, or 259.103, a candidate or officeholder who accepts public financing or a specific-purpose committee for supporting or opposing such a candidate or assisting such an officeholder may not accept a political contribution in connection with the office for which the candidate or officeholder accepted public financing.

(b) A person who violates this section is liable for a civil penalty not to exceed three times the amount of political contributions used in violation of this section.

Sec. 259.102. USE OF CONTRIBUTION FROM OTHER OFFICE PROHIBITED. (a) Except as provided by Section 259.103, a candidate or officeholder who accepts public financing or a specific-purpose committee for supporting such a candidate, opposing such a candidate's opponent, or assisting such an officeholder may not use a political contribution to make a campaign expenditure for the office for which the candidate or officeholder accepted public financing or to make an officeholder expenditure in connection with that office if the contribution was accepted while the candidate or officeholder:

(1) was a candidate for an office other than the office for which the candidate or officeholder accepted public financing; or

(2) held an office other than the office for which the candidate or officeholder accepted public financing, unless the person had become a candidate for that office and the contribution was accepted under Section 259.017.

(b) A person who violates this section is liable for a civil penalty not to exceed three times the amount of political contributions used in violation of this section.

Sec. 259.103. RESTRICTIONS NOT APPLICABLE TO CERTAIN OFFICEHOLDERS. (a) Sections 259.101 and 259.102 do not apply to an officeholder who accepted public financing and who seeks reelection to the office for which the officeholder accepted public financing or election to another office covered by this chapter if the officeholder files a written statement with the commission that the officeholder will not request public financing for the reelection or election.

(b) An officeholder who files a statement under Subsection (a) is not eligible for public financing for the reelection or election to which the statement relates.

(c) An officeholder who accepted public financing or a specific-purpose committee for assisting such an officeholder or for supporting such an officeholder as a candidate may not accept a political contribution before the officeholder files a statement under Subsection (a).

(d) A person who violates Subsection (c) is liable for a civil penalty not to exceed three times the amount of political contributions used in violation of Subsection (c).

Sec. 259.104. RETENTION OF CONTRIBUTIONS FOR OFFICEHOLDER PURPOSES. An officeholder who accepted public financing may retain and use for officeholder purposes the unexpended amount, if any, of political contributions accepted under Section 259.015 or 259.017.

Sec. 259.105. CERTAIN DIRECT CAMPAIGN EXPENDITURES CONSIDERED CONTRIBUTION TO CANDIDATE. For purposes of Section 259.101, a direct campaign expenditure is considered to be a campaign contribution to a candidate if the expenditure 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. [Sections 259.106-259.130 reserved for expansion] SUBCHAPTER E. VOTER INFORMATION PAMPHLET

Sec. 259.131. APPLICABILITY OF SUBCHAPTER. This subchapter applies to each candidate certified as eligible for public financing.

Sec. 259.132. STATEMENT FILED BY CANDIDATE. Not later than the 80th day before the date of the general election, a candidate for an office covered by this subchapter may file with the secretary of state an informational statement, on a form prescribed by the secretary, to be included in a voter information pamphlet for that election.

Sec. 259.133. STATEMENT REQUIREMENTS. (a) A candidate's statement must include a summary of the following information:

(1) current occupation;

(2) educational and occupational background;

(3) biographical information; and

(4) any previous experience serving in government.

(b) The secretary of state shall prescribe the format and length of the candidate's statement.

Sec. 259.134. REVIEW BY SECRETARY OF STATE. (a) Not later than the fifth day after the date the candidate's statement is received, the secretary of state shall review the statement to determine whether it complies with Section 259.133.

(b) If the secretary of state determines that the statement does not comply with Section 259.133, the secretary shall reject the statement and deliver written notice of the reason for the rejection to the candidate not later than the second day after the date of rejection.

(c) A candidate whose statement is rejected may resubmit the statement subject to the prescribed deadline.

Sec. 259.135. PREPARATION OF PAMPHLET. (a) The secretary of state shall contract for the preparation and printing of one or more voter information pamphlets after soliciting bids for that work. The secretary may prepare separate pamphlets for different regions of the state, including in each pamphlet only statewide offices and the district offices for districts included in the region if the secretary determines that distributing multiple pamphlets is more economical than distributing a single pamphlet for statewide use. The secretary may prepare or print the pamphlets if the secretary determines that the costs of that preparation or printing are less than or equal to the most reasonable bid submitted.

(b) On the request of the secretary of state, the commission shall direct the comptroller to transfer from the fund to the secretary the money necessary for preparation of the pamphlets.

(c) Each pamphlet must include each statement that complies with Sections 259.132 and 259.133 and is filed by a candidate for an office included in the pamphlet whom the commission has certified as eligible for public financing. Candidates whose names will appear on the ballot and write-in candidates must be shown in separate groups. The order of the candidates' names within the groups is determined by a drawing conducted by the secretary of state. Candidates whose names will appear on the ballot must be identified by party or as an independent candidate, as applicable.

(d) Each pamphlet must name each candidate for an office covered by this chapter and included in the pamphlet whom the commission has not certified as eligible for public financing and must identify each such candidate by party or as an independent or write-in candidate, as applicable. The pamphlet may not contain any other information about a candidate to whom this subsection applies.

(e) The secretary of state shall prescribe appropriate explanatory material to be included in each pamphlet to assist the voters, including:

(1) a statement that the pamphlet may be used at the polls to assist the voters in marking their ballots; and

(2) a statement that candidates who are not eligible for public financing are not entitled to submit a candidate's statement for inclusion in the pamphlet.

Sec. 259.136. DISTRIBUTION OF PAMPHLET. Not later than the 45th day before the date of each general election, the secretary of state shall mail the appropriate voter information pamphlet to each household in this state in which a registered voter resides.

Sec. 259.137. ADDITIONAL PROCEDURES. The secretary of state shall prescribe any additional procedures necessary to implement this subchapter.

SECTION 2. Chapter 253, Election Code, is amended by adding Subchapter G to read as follows: SUBCHAPTER G. CONTRIBUTION LIMITS FOR LEGISLATIVE OR EXECUTIVE OFFICE

Sec. 253.201. APPLICABILITY OF SUBCHAPTER. This subchapter applies only to a political contribution or direct campaign expenditure in connection with:

(1) a statewide office in the executive branch;

(2) the office of state senator;

(3) the office of state representative; or

(4) the office of member, State Board of Education.

Sec. 253.202. CONTRIBUTION LIMITS. (a) Except as provided by Subsection (c), a person may not knowingly make or authorize political contributions to a candidate or officeholder that in the aggregate exceed the following limits in a calendar year:

(1) for a statewide office, $25,000;

(2) for the office of state senator, $10,000;

(3) for the office of state representative, $5,000; or

(4) for the office of member, State Board of Education, $10,000.

(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) This section does not apply to a political contribution made by the principal political committee of the state executive committee of a political party.

(d) 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. 253.203. CONTRIBUTION TO CERTAIN COMMITTEES CONSIDERED CONTRIBUTION TO CANDIDATE OR OFFICEHOLDER. For purposes of Section 253.202, 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. 253.204. CERTAIN DIRECT CAMPAIGN EXPENDITURES CONSIDERED CONTRIBUTION TO CANDIDATE. For purposes of Section 253.202, a direct campaign expenditure is considered to be a campaign contribution to a candidate if the expenditure 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. 253.205. 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 subchapter 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 affected 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 that 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 is liable for a civil penalty in an amount not to exceed three times the political contributions accepted or political expenditures made for a purpose described by Subsection (a) before notice is delivered to the affected candidate or officeholder.

Sec. 253.206. 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 253.203 or 253.204 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 Section 253.202 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 253.205 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 is liable for a civil penalty in an amount not to exceed three times the amount of political contributions for which notice was not provided.

Sec. 253.207. RETURN OF EXCESS CONTRIBUTION. (a) A person who receives a political contribution the acceptance of which would violate Section 253.202 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.

Sec. 253.208. DEPOSIT OF CIVIL PENALTIES. The comptroller shall deposit a civil penalty collected by the commission for a violation of this subchapter to the credit of the campaign financing fund established under Subchapter C, Chapter 259.

SECTION 3. Section 253.003(c), Election Code, is amended to read as follows:

(c) This section does not apply to a political contribution made or accepted in violation of Subchapter F or G.

SECTION 4. Section 253.004(b), Election Code, is amended to read as follows:

(b) This section does not apply to a political expenditure made or authorized in violation of Subchapter F or G.

SECTION 5. Section 253.005(b), Election Code, is amended to read as follows:

(b) This section does not apply to a political expenditure that is:

(1) prohibited by Section 253.101; or

(2) made from a political contribution made in violation of Subchapter F or G.

SECTION 6. Section 254.034, Election Code, is amended by adding Subsection (d-1) to read as follows:

(d-1) This section applies to a political contribution covered by Subchapter G, Chapter 253, except as provided by Section 253.207.

SECTION 7. Subchapter C, Chapter 254, Election Code, is amended by adding Section 254.0613 to read as follows:

Sec. 254.0613. ADDITIONAL CONTENTS OF REPORTS BY CERTAIN CANDIDATES. In addition to the contents required by Sections 254.031, 254.061, and 254.0612, each report by a candidate for an office to which Subchapter G, Chapter 253, applies must include:

(1) for each political contribution or direct campaign expenditure of which the candidate receives notice under Section 253.206:

(A) the full name and address of the committee receiving the contribution or making the expenditure;

(B) the full name and address of the committee's campaign treasurer;

(C) the full name and address of the person making the contribution, if applicable;

(D) the date the contribution is received or expenditure is made;

(E) the amount of the contribution or expenditure; and

(F) an indication of whether the committee accepted or refused the contribution; and

(2) for each person from whom, in the calendar year containing the period covered by the report, the candidate has accepted a political contribution or a specific-purpose committee has accepted a political contribution of which the candidate received notice under Section 253.206 or who has made a direct campaign expenditure considered under Section 253.204 to be a campaign contribution to the candidate, the aggregate total for that calendar year of:

(A) political contributions accepted by the candidate and by the committee from the person; and

(B) direct campaign expenditures made by the person.

SECTION 8. Subchapter D, Chapter 254, Election Code, is amended by adding Section 254.0913 to read as follows:

Sec. 254.0913. ADDITIONAL CONTENTS OF REPORTS BY CERTAIN OFFICEHOLDERS. In addition to the contents required by Sections 254.031, 254.091, and 254.0912, each report by the holder of an office to which Subchapter G, Chapter 253, applies must include the contents prescribed by Section 254.0613.

SECTION 9. Subchapter E, Chapter 254, Election Code, is amended by adding Section 254.1213 to read as follows:

Sec. 254.1213. ADDITIONAL CONTENTS OF REPORTS OF CERTAIN COMMITTEES. In addition to the contents required by Sections 254.031, 254.121, and 254.1212, each report by a specific-purpose committee for supporting or opposing a candidate for or assisting a holder of an office to which Subchapter G, Chapter 253, applies must include the contents prescribed by Section 254.0613.

SECTION 10. (a) Subchapter G, Chapter 253, Election Code, as added by this Act, applies only to a political contribution accepted or a political expenditure made on or after September 1, 2007. A political contribution accepted or a political expenditure made before September 1, 2007, is governed by the law in effect at the time the contribution was accepted or the expenditure was made and is not aggregated with political contributions accepted or political expenditures made on or after that date.

(b) Sections 254.0613, 254.0913, and 254.1213, Election Code, as added by this Act, apply to the reporting of a political contribution accepted or political expenditure made on or after September 1, 2007. The reporting of a political contribution accepted or political expenditure made before September 1, 2007, is governed by the law in effect at the time the contribution was accepted or the expenditure was made.

(c) Notwithstanding Chapter 259, Election Code, as added by this Act, a person who on September 1, 2007, held an office covered by that chapter and who had unexpended political contributions may use those contributions to make political expenditures for campaign or officeholder purposes.

SECTION 11. This Act takes effect September 1, 2007.