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A BILL TO BE ENTITLED
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AN ACT
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relating to the election of the commissioner of insurance and |
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qualifications of the commissioner and certain employees of the |
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Texas Department of Insurance; providing civil penalties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 31.022, Insurance Code, is amended to |
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read as follows: |
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Sec. 31.022. ELECTION [APPOINTMENT; TERM]. The |
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commissioner is elected by the qualified voters at the general |
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election for state and county officers for a term of four years. |
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[(a)
The governor, with the advice and consent of the senate,
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shall appoint the commissioner.
The commissioner serves a two-year
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term that expires on February 1 of each odd-numbered year.
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[(b)
The governor shall appoint the commissioner without
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regard to the race, color, disability, sex, religion, age, or
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national origin of the appointee.] |
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SECTION 2. Section 31.023, Insurance Code, is amended to |
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read as follows: |
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Sec. 31.023. QUALIFICATIONS. The commissioner must: |
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(1) be a competent and experienced administrator; |
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(2) be well informed and qualified in the field of |
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insurance and insurance regulation; and |
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(3) have at least 10 [five] years of experience as an |
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executive in the administration of business or government or as a |
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practicing attorney or certified public accountant, with at least |
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five years of that experience in the field of insurance or insurance |
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regulation. |
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SECTION 3. Section 31.024, Insurance Code, is amended to |
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read as follows: |
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Sec. 31.024. INELIGIBILITY FOR OTHER PUBLIC OFFICE. The |
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commissioner is ineligible to be a candidate for another [a] public |
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elective office in this state, unless the commissioner has resigned |
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and the governor has accepted the resignation. |
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SECTION 4. Section 31.027(a), Insurance Code, is amended to |
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read as follows: |
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(a) It is a ground for removal from office if the |
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commissioner: |
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(1) does not have at the time of taking office |
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[appointment] the qualifications required by Section 31.023; |
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(2) does not maintain during service as commissioner |
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the qualifications required by Section 31.023; |
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(3) violates a prohibition established by Section |
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33.001, 33.002 [33.003], 33.004, or 33.005; or |
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(4) cannot, because of illness or disability, |
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discharge the commissioner's duties for a substantial part of the |
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commissioner's term. |
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SECTION 5. Section 33.002, Insurance Code, is amended to |
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read as follows: |
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Sec. 33.002. INSURANCE BUSINESS INTEREST; SERVICE AS |
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COMMISSIONER. (a) A person is not eligible to serve [for
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appointment] as commissioner if the person, the person's spouse, or |
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any other person who resides in the same household as the person: |
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(1) is registered, certified, or licensed by the |
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department; |
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(2) is employed by or participates in the management |
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of a business entity or other organization regulated by or |
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receiving funds from the department; |
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(3) owns or controls, directly or indirectly, more |
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than a 10 percent interest in a business entity or other |
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organization regulated by or receiving funds from the department; |
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or |
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(4) uses or receives a substantial amount of tangible |
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goods, services, or funds from the department, other than |
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compensation or reimbursement authorized by law. |
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(b) In addition to the restriction imposed by Subsection |
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(a), a [A] person is not eligible to serve [for appointment] as |
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commissioner if the person: |
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(1) is a stockholder, director, officer, attorney, |
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agent, or employee of an insurance company, insurance agent, |
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insurance broker, or insurance adjuster or any other business |
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entity or other organization regulated by or receiving funds from |
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the department; or |
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(2) is directly or indirectly interested in a business |
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described by Subdivision (1). |
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(c) Subsection (b) does not apply to: |
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(1) a person solely because the person is insured by an |
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insurer or is the beneficiary of insurance; or |
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(2) a person who: |
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(A) is appointed as a receiver, liquidator, |
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supervisor, or conservator of an insurer; or |
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(B) is an employee of a receiver, liquidator, |
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supervisor, or conservator of an insurer with respect to duties |
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under that employment. |
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(d) In addition to the restrictions imposed by Subsection |
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(a), a person is not eligible to serve as commissioner if the person |
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is related within the third degree of consanguinity or affinity, as |
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determined under Chapter 573, Government Code, to a person who is an |
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officer, managerial employee, or paid consultant in the insurance |
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industry. |
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SECTION 6. Section 33.003, Insurance Code, is amended by |
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amending Subsection (b) and adding Subsection (c) to read as |
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follows: |
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(b) A person who is related within the third degree of |
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consanguinity or affinity, as determined under Chapter 573, |
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Government Code, to [resides in the same household as] a person who |
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is an officer, managerial employee, or paid consultant in the |
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insurance industry may not be employed by the department in a "bona |
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fide executive, administrative, or professional capacity," as that |
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phrase is used for purposes of establishing an exemption to the |
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overtime provisions of the federal Fair Labor Standards Act of 1938 |
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(29 U.S.C. Section 201 et seq.) [an exempt salary position as
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defined by the General Appropriations Act]. |
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(c) A person who owns stock in an insurer or other entity |
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regulated under this code may not be employed by the department in a |
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"bona fide executive, administrative, or professional capacity," |
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as that phrase is used for purposes of establishing an exemption to |
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the overtime provisions of the federal Fair Labor Standards Act of |
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1938 (29 U.S.C. Section 201 et seq.). |
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SECTION 7. Sections 33.004(a) and (b), Insurance Code, are |
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amended to read as follows: |
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(a) A person who is an officer, employee, or paid consultant |
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|
of a trade association in the field of insurance may not be: |
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(1) the commissioner; or |
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(2) an employee of the department in a "bona fide |
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executive, administrative, or professional capacity," as that |
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phrase is used for purposes of establishing an exemption to the |
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overtime provisions of the federal Fair Labor Standards Act of 1938 |
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(29 U.S.C. Section 201 et seq.) [who is exempt from the state's
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position classification plan or is compensated at or above the
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amount prescribed by the General Appropriations Act for step 1,
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salary group A17, of the position classification salary schedule]. |
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(b) A person who is related within the third degree of |
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consanguinity or affinity, as determined under Chapter 573, |
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Government Code, to [the spouse of] an officer, manager, or paid |
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consultant of a trade association in the field of insurance may not |
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be: |
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(1) the commissioner; or |
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(2) an employee of the department in a "bona fide |
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|
executive, administrative, or professional capacity," as that |
|
|
phrase is used for purposes of establishing an exemption to the |
|
|
overtime provisions of the federal Fair Labor Standards Act of 1938 |
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|
(29 U.S.C. Section 201 et seq.) [who is exempt from the state's
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position classification plan or is compensated at or above the
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amount prescribed by the General Appropriations Act for step 1,
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salary group A17, of the position classification salary schedule]. |
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SECTION 8. Section 52.092(c), Election Code, is amended to |
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|
read as follows: |
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(c) Statewide offices of the state government shall be |
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|
listed in the following order: |
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(1) governor; |
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(2) lieutenant governor; |
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|
(3) attorney general; |
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(4) comptroller of public accounts; |
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(5) commissioner of the General Land Office; |
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(6) commissioner of agriculture; |
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(7) commissioner of insurance; |
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(8) railroad commissioner; |
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(9) [(8)] chief justice, supreme court; |
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(10) [(9)] justice, supreme court; |
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(11) [(10)] presiding judge, court of criminal |
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appeals; |
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(12) [(11)] judge, court of criminal appeals. |
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SECTION 9. Chapter 253, Election Code, is amended by adding |
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Subchapter H to read as follows: |
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SUBCHAPTER H. INSURANCE COMMISSIONER CAMPAIGN FAIRNESS ACT |
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Sec. 253.251. APPLICABILITY OF SUBCHAPTER. This subchapter |
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applies only to a political contribution or political expenditure |
|
|
in connection with the office of commissioner of insurance. |
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Sec. 253.252. DEFINITIONS. In this subchapter: |
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(1) "Complying candidate" or "complying officeholder" |
|
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means a candidate who files a declaration of compliance under |
|
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Section 253.261(a)(1). |
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(2) "In connection with an election" means: |
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|
(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 |
|
|
the office of commissioner of insurance occurring after the |
|
|
contribution is made. |
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(3) "Noncomplying candidate" means a candidate who: |
|
|
(A) files a declaration of intent to exceed the |
|
|
limit on expenditures or the use of personal funds under Section |
|
|
253.261(a)(2); |
|
|
(B) files a declaration of compliance under |
|
|
Section 253.261(a)(1) but later exceeds the limit on expenditures |
|
|
or the use of personal funds; |
|
|
(C) fails to file a declaration of compliance |
|
|
under Section 253.261(a)(1) or a declaration of intent under |
|
|
Section 253.261(a)(2); or |
|
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(D) violates Section 253.269 or 253.270. |
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Sec. 253.253. CONTRIBUTION LIMIT. (a) Subject to Section |
|
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253.259, the commissioner of insurance or a candidate for the |
|
|
office of commissioner of insurance may not, except as provided by |
|
|
Subsection (b), knowingly accept political contributions from a |
|
|
person that in the aggregate exceed $5,000 in connection with each |
|
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election in which the person is involved. |
|
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(b) This section does not apply to a political contribution |
|
|
made by an out-of-state political committee. |
|
|
(c) Notwithstanding Section 254.034, a person who receives |
|
|
a political contribution that violates Subsection (a) shall return |
|
|
the contribution to the contributor not later than the later of: |
|
|
(1) the last day of the reporting period in which the |
|
|
contribution is received; or |
|
|
(2) the fifth day after the date the contribution is |
|
|
received. |
|
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(d) A person who violates this section is liable for a civil |
|
|
penalty not to exceed three times the amount of the political |
|
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contributions accepted in violation of this section. |
|
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Sec. 253.254. LIMIT ON CONTRIBUTIONS FROM REGULATED |
|
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INDUSTRY. (a) Subject to Section 253.259, the commissioner of |
|
|
insurance or a candidate for the office of commissioner of |
|
|
insurance may not accept a political contribution in excess of $50 |
|
|
from a person if: |
|
|
(1) the person is: |
|
|
(A) an insurer, an insurance agent, an insurance |
|
|
broker, an insurance adjuster, or any other person regulated by or |
|
|
receiving funds from the Texas Department of Insurance; |
|
|
(B) an employee of a person regulated by or |
|
|
receiving funds from the department; or |
|
|
(C) a general-purpose committee established or |
|
|
controlled by a person regulated by or receiving funds from the |
|
|
department or a trade association in the field of insurance; or |
|
|
(2) the contribution when aggregated with all |
|
|
political contributions accepted by the candidate or officeholder |
|
|
from the person regulated by or receiving funds from the |
|
|
department, the person's employees, or a general-purpose committee |
|
|
established or controlled by the person in connection with the |
|
|
election would exceed six times the applicable contribution limit |
|
|
in Section 253.253. |
|
|
(b) A person who receives a political contribution that |
|
|
violates Subsection (a) shall return the contribution to the |
|
|
contributor not later than the later of: |
|
|
(1) the last day of the reporting period in which the |
|
|
contribution is received; or |
|
|
(2) the fifth day after the date the contribution is |
|
|
received. |
|
|
(c) A person who fails to return a political contribution as |
|
|
required by Subsection (b) is liable for a civil penalty not to |
|
|
exceed three times the total amount of political contributions |
|
|
accepted from the insurer, insurance agent, insurance broker, |
|
|
insurance adjuster, or other person regulated by or receiving funds |
|
|
from the Texas Department of Insurance, an employee of that person, |
|
|
or general-purpose committees established or controlled by the |
|
|
person. |
|
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(d) For the purposes of this section, a general-purpose |
|
|
committee is established or controlled by a person if the committee |
|
|
is established or controlled by persons employed by the person. |
|
|
Sec. 253.255. CONTRIBUTION BY SPOUSE OR CHILD CONSIDERED TO |
|
|
BE CONTRIBUTION BY INDIVIDUAL. (a) For purposes of Sections |
|
|
253.253 and 253.254, a contribution by the spouse or child of an |
|
|
individual is considered to be a contribution by the individual. |
|
|
(b) In this section, "child" means a person under 18 years |
|
|
of age who is not and has not been married or who has not had the |
|
|
disabilities of minority removed for general purposes. |
|
|
Sec. 253.256. EXCEPTION TO CONTRIBUTION LIMITS. Sections |
|
|
253.253 and 253.254 do not apply to an individual who is related to |
|
|
the candidate or officeholder within the second degree by |
|
|
consanguinity, as determined under Subchapter B, Chapter 573, |
|
|
Government Code. |
|
|
Sec. 253.257. AGGREGATE LIMIT ON CONTRIBUTIONS FROM AND |
|
|
DIRECT CAMPAIGN EXPENDITURES BY GENERAL-PURPOSE COMMITTEE. (a) |
|
|
Subject to Section 253.259, a candidate for the office of |
|
|
commissioner of insurance may not knowingly accept a political |
|
|
contribution from a general-purpose committee that, when |
|
|
aggregated with each other political contribution from a |
|
|
general-purpose committee in connection with the election, exceeds |
|
|
$300,000. |
|
|
(b) A person who receives a political contribution that |
|
|
violates Subsection (a) shall return the contribution to the |
|
|
contributor not later than the later of: |
|
|
(1) the last day of the reporting period in which the |
|
|
contribution is received; or |
|
|
(2) the fifth day after the date the contribution is |
|
|
received. |
|
|
(c) For purposes of this section, an expenditure by a |
|
|
general-purpose committee for the purpose of supporting a |
|
|
candidate, for opposing the candidate's opponent, or for assisting |
|
|
the candidate as an officeholder is considered to be a contribution |
|
|
to the candidate unless the campaign treasurer of the |
|
|
general-purpose committee, in an affidavit filed with the authority |
|
|
with whom the candidate's campaign treasurer appointment is |
|
|
required to be filed, states that the committee has not directly or |
|
|
indirectly communicated with the candidate's campaign, including |
|
|
the candidate, an aide to the candidate, a campaign officer, or a |
|
|
campaign consultant, or a specific-purpose committee in regard to a |
|
|
strategic matter, including polling data, advertising, or voter |
|
|
demographics, in connection with the candidate's campaign. |
|
|
(d) This section does not apply to a political expenditure |
|
|
by the principal political committee of the state executive |
|
|
committee or a county executive committee of a political party that |
|
|
complies with Section 253.267(b). |
|
|
(e) A person who violates this section is liable for a civil |
|
|
penalty not to exceed three times the amount by which the political |
|
|
contributions accepted in violation of this section exceed the |
|
|
applicable limit prescribed by Subsection (a). |
|
|
Sec. 253.258. CONTRIBUTION TO CERTAIN COMMITTEES |
|
|
CONSIDERED CONTRIBUTION TO CANDIDATE. For purposes of Sections |
|
|
253.253, 253.254, and 253.257, a contribution to a specific-purpose |
|
|
committee for the purpose of supporting a candidate for the office |
|
|
of commissioner of insurance, opposing the candidate's opponent, or |
|
|
assisting the candidate as an officeholder is considered to be a |
|
|
contribution to the candidate. |
|
|
Sec. 253.259. APPLICATION OF CONTRIBUTION LIMITS TO CERTAIN |
|
|
CANDIDATES. (a) For purposes of a contribution limit prescribed |
|
|
by Section 253.253, 253.254, or 253.257, the general primary |
|
|
election and general election for state and county officers are |
|
|
considered to be a single election in which a candidate for the |
|
|
office of commissioner of insurance is involved if the candidate: |
|
|
(1) is unopposed in the primary election; or |
|
|
(2) does not have an opponent in the general election |
|
|
whose name is to appear on the ballot. |
|
|
(b) For a candidate to whom Subsection (a) applies, each |
|
|
applicable contribution limit prescribed by Section 253.253, |
|
|
253.254, or 253.257 is increased by 25 percent. A candidate who |
|
|
accepts political contributions from a person that in the aggregate |
|
|
exceed the applicable contribution limit prescribed by Section |
|
|
253.253, 253.254, or 253.257 but that do not exceed the adjusted |
|
|
limit as determined under this subsection may use the amount of |
|
|
those contributions that exceeds the limit prescribed by Section |
|
|
253.253, 253.254, or 253.257 only for making an officeholder |
|
|
expenditure. |
|
|
Sec. 253.260. NOTICE REQUIRED FOR CERTAIN POLITICAL |
|
|
EXPENDITURES. (a) A person other than a candidate for the office |
|
|
of commissioner of insurance or the principal political committee |
|
|
of the state executive committee or a county executive committee of |
|
|
a political party may not make political expenditures that in the |
|
|
aggregate exceed the limit prescribed by Section 253.266 for the |
|
|
purpose of supporting or opposing a candidate for the office of |
|
|
commissioner of insurance or assisting a candidate as an |
|
|
officeholder unless the person files with the commission a written |
|
|
declaration of the person's intent to make expenditures that exceed |
|
|
the limit prescribed by Section 253.266. |
|
|
(b) A declaration under Subsection (a) must be filed not |
|
|
later than the earlier of: |
|
|
(1) the date the person makes the political |
|
|
expenditure that causes the person to exceed the limit prescribed |
|
|
by Section 253.266; or |
|
|
(2) the 60th day before the date of the election in |
|
|
connection with which the political expenditures are intended to be |
|
|
made. |
|
|
(c) The commission shall file a declaration received under |
|
|
Subsection (a) with the records of each candidate or officeholder |
|
|
on whose behalf the person filing the declaration intends to make |
|
|
political expenditures. If the person intends to make only |
|
|
political expenditures opposing a candidate, the commission shall |
|
|
file the declaration with the records of each candidate for the |
|
|
office. |
|
|
(d) An expenditure made by a political committee or other |
|
|
association that consists only of costs incurred in contacting the |
|
|
committee's or association's membership may be made without the |
|
|
declaration required by Subsection (a). |
|
|
(e) A person who violates this section is liable for a civil |
|
|
penalty not to exceed three times the amount of the political |
|
|
expenditures made in violation of this section. |
|
|
Sec. 253.261. VOLUNTARY COMPLIANCE. (a) When a person |
|
|
becomes a candidate for the office of commissioner of insurance, |
|
|
the person shall file with the commission: |
|
|
(1) a sworn declaration of compliance stating that the |
|
|
person voluntarily agrees to comply with the limit on expenditures |
|
|
prescribed by this subchapter; or |
|
|
(2) a written declaration of the person's intent to |
|
|
make expenditures that exceed the limit prescribed by this |
|
|
subchapter. |
|
|
(b) The limits on contributions prescribed by this |
|
|
subchapter apply to complying candidates unless suspended as |
|
|
provided by Section 253.262 or 253.266. The limits on |
|
|
contributions prescribed by this subchapter apply to noncomplying |
|
|
candidates regardless of whether the limits on contributions and |
|
|
expenditures are suspended for complying candidates. |
|
|
(c) A candidate may not knowingly accept a campaign |
|
|
contribution or make or authorize a campaign expenditure before the |
|
|
candidate files a declaration under Subsection (a). |
|
|
(d) A person who violates Subsection (c) is liable for a |
|
|
civil penalty not to exceed three times the amount of the political |
|
|
contributions or political expenditures made in violation of this |
|
|
section. |
|
|
Sec. 253.262. EFFECT OF NONCOMPLYING CANDIDATE. (a) A |
|
|
complying candidate or a specific-purpose committee for supporting |
|
|
a complying candidate is not required to comply with the limits on |
|
|
contributions and expenditures prescribed by this subchapter if |
|
|
another person becomes a candidate for the office of commissioner |
|
|
of insurance and: |
|
|
(1) files a declaration of intent to exceed the limit |
|
|
on expenditures under Section 253.261(a)(2); |
|
|
(2) fails to file a declaration of compliance under |
|
|
Section 253.261(a)(1) or a declaration of intent under Section |
|
|
253.261(a)(2); |
|
|
(3) files a declaration of compliance under Section |
|
|
253.261(a)(1) but later exceeds the limit on expenditures; or |
|
|
(4) violates Section 253.269 or 253.270. |
|
|
(b) The executive director of the commission shall issue an |
|
|
order suspending the limits on contributions and expenditures for |
|
|
the office of commissioner of insurance not later than the fifth day |
|
|
after the date the executive director determines that: |
|
|
(1) a person has become a candidate for that office |
|
|
and: |
|
|
(A) has filed a declaration of intent to exceed |
|
|
the limits on expenditures under Section 253.261(a)(2); or |
|
|
(B) has failed to file a declaration of |
|
|
compliance under Section 253.261(a)(1) or a declaration of intent |
|
|
under Section 253.261(a)(2); |
|
|
(2) a complying candidate for that office has exceeded |
|
|
the applicable limit on expenditures prescribed by this subchapter; |
|
|
or |
|
|
(3) a candidate for that office has violated Section |
|
|
253.269 or 253.270. |
|
|
Sec. 253.263. BENEFIT TO COMPLYING CANDIDATE. (a) A |
|
|
complying candidate is entitled to state on political advertising |
|
|
as provided by Section 255.009 that the candidate complies with the |
|
|
Insurance Commissioner Campaign Fairness Act, regardless of |
|
|
whether the limits on contributions and expenditures are later |
|
|
suspended. |
|
|
(b) A noncomplying candidate is not entitled to the benefit |
|
|
provided by this section. |
|
|
Sec. 253.264. EXPENDITURE LIMIT. (a) For each election |
|
|
in which the candidate is involved, a complying candidate may not |
|
|
knowingly make or authorize political expenditures that in the |
|
|
aggregate exceed $2 million. |
|
|
(b) A person who violates this section is liable for a civil |
|
|
penalty not to exceed three times the amount by which the political |
|
|
expenditures made in violation of this section exceed the |
|
|
applicable limit prescribed by Subsection (a). |
|
|
Sec. 253.265. EXPENDITURE BY CERTAIN COMMITTEES CONSIDERED |
|
|
EXPENDITURE BY CANDIDATE. (a) For purposes of Section 253.264, |
|
|
an expenditure by a specific-purpose committee for the purpose of |
|
|
supporting a candidate for the office of commissioner of insurance, |
|
|
opposing the candidate's opponent, or assisting the candidate as an |
|
|
officeholder is considered to be an expenditure by the candidate |
|
|
unless the candidate, in an affidavit filed with the commission, |
|
|
states that the candidate's campaign, including the candidate, an |
|
|
aide to the candidate, a campaign officer, or a campaign consultant |
|
|
of the candidate, has not directly or indirectly communicated with |
|
|
the committee in regard to a strategic matter, including polling |
|
|
data, advertising, or voter demographics, in connection with the |
|
|
candidate's campaign. |
|
|
(b) This section applies only to an expenditure of which the |
|
|
candidate or officeholder has notice. |
|
|
(c) An affidavit under this section shall be filed with the |
|
|
next report the candidate or officeholder is required to file under |
|
|
Chapter 254 following the receipt of notice of the expenditure. |
|
|
Sec. 253.266. EFFECT OF CERTAIN POLITICAL EXPENDITURES. (a) |
|
|
A complying candidate or a specific-purpose committee for |
|
|
supporting a complying candidate is not required to comply with the |
|
|
applicable limits on contributions and expenditures prescribed by |
|
|
this subchapter if a person makes political expenditures supporting |
|
|
the candidate's opponent, assisting the candidate's opponent as an |
|
|
officeholder, or opposing the candidate that in the aggregate |
|
|
exceed $25,000. |
|
|
(b) The executive director of the commission shall issue an |
|
|
order suspending the limits on contributions and expenditures for |
|
|
the office of commissioner of insurance not later than the fifth day |
|
|
after the date the executive director determines that: |
|
|
(1) a declaration of intent to make expenditures that |
|
|
exceed the limit prescribed by Subsection (a) is filed in |
|
|
connection with the office as provided by Section 253.260; or |
|
|
(2) a political expenditure that exceeds the limit |
|
|
prescribed by Subsection (a) has been made. |
|
|
(c) The limit prescribed by Subsection (a) does not apply |
|
|
to: |
|
|
(1) an expenditure made by the complying candidate's |
|
|
opponent; |
|
|
(2) an expenditure made by the principal political |
|
|
committee of the state executive committee or a county executive |
|
|
committee of a political party; or |
|
|
(3) an expenditure made by a political committee or |
|
|
other association that consists only of costs incurred in |
|
|
contacting the committee's or association's membership. |
|
|
Sec. 253.267. CONTRIBUTION FROM OR DIRECT CAMPAIGN |
|
|
EXPENDITURE BY POLITICAL PARTY. (a) Except as provided by |
|
|
Subsection (b), a political contribution to or a direct campaign |
|
|
expenditure on behalf of a complying candidate that is made by the |
|
|
principal political committee of the state executive committee or a |
|
|
county executive committee of a political party is considered to be |
|
|
a political expenditure by the candidate for purposes of the |
|
|
expenditure limits prescribed by Section 253.264. |
|
|
(b) Subsection (a) does not apply to a political expenditure |
|
|
for a generic get-out-the-vote campaign or for a written list of two |
|
|
or more candidates that: |
|
|
(1) identifies the party's candidates by name and |
|
|
office sought, office held, or photograph; |
|
|
(2) does not include any reference to the political |
|
|
philosophy or positions on issues of the party's candidates; and |
|
|
(3) is not broadcast, cablecast, published in a |
|
|
newspaper or magazine, or placed on a billboard. |
|
|
Sec. 253.268. RESTRICTION ON EXCEEDING EXPENDITURE |
|
|
LIMITS. (a) A candidate who files a declaration of compliance |
|
|
under Section 253.261(a)(1) and who later files a declaration of |
|
|
intent to exceed the limit on expenditures under Section |
|
|
253.261(a)(2) or a specific-purpose committee for supporting such a |
|
|
candidate may not make a political expenditure that causes the |
|
|
person to exceed the limit on expenditures prescribed by Section |
|
|
253.264 before the 60th day after the date the candidate files the |
|
|
declaration of intent to exceed the limit on expenditures. |
|
|
(b) A person who violates this section is liable for a civil |
|
|
penalty not to exceed three times the amount of political |
|
|
expenditures made in violation of this section. |
|
|
Sec. 253.269. AGREEMENT TO EVADE LIMITS PROHIBITED. (a) A |
|
|
complying candidate may not: |
|
|
(1) solicit a person to campaign as a noncomplying |
|
|
candidate opposing the complying candidate; or |
|
|
(2) enter into an agreement under which a person |
|
|
campaigns as a noncomplying candidate opposing the complying |
|
|
candidate. |
|
|
(b) A candidate who violates this section is considered to |
|
|
be a noncomplying candidate. |
|
|
Sec. 253.270. MISREPRESENTATION OF OPPONENT'S COMPLIANCE |
|
|
WITH OR VIOLATION OF SUBCHAPTER PROHIBITED. (a) A candidate may |
|
|
not knowingly misrepresent that an opponent of the candidate: |
|
|
(1) is a noncomplying candidate; or |
|
|
(2) has violated this subchapter. |
|
|
(b) A candidate who violates this section is considered to |
|
|
be a noncomplying candidate. |
|
|
Sec. 253.271. CIVIL PENALTY. (a) The commission may |
|
|
impose a civil penalty under this subchapter against a person as |
|
|
provided by Subchapter E, Chapter 571, Government Code. |
|
|
(b) The commission shall base the amount of the penalty on: |
|
|
(1) the seriousness of the violation; |
|
|
(2) the history of previous violations; |
|
|
(3) the amount necessary to deter future violations; |
|
|
and |
|
|
(4) any other matter that justice may require. |
|
|
(c) A penalty paid under this subchapter shall be deposited |
|
|
in the general revenue fund to the credit of the commission. The |
|
|
commission may use amounts representing penalties paid under this |
|
|
subchapter only for purposes of enforcing this subchapter. |
|
|
SECTION 10. Chapter 255, Election Code, is amended by |
|
|
adding Section 255.009 to read as follows: |
|
|
Sec. 255.009. DISCLOSURE ON POLITICAL ADVERTISING FOR |
|
|
OFFICE OF COMMISSIONER OF INSURANCE. (a) This section applies |
|
|
only to a candidate or political committee covered by Subchapter H, |
|
|
Chapter 253. |
|
|
(b) Political advertising by a candidate for the office of |
|
|
commissioner of insurance who files a declaration of intent to |
|
|
comply with the limit on expenditures under Subchapter H, Chapter |
|
|
253, or a specific-purpose committee for supporting such a |
|
|
candidate may include the following statement: "Political |
|
|
advertising paid for by (name of candidate or committee) in |
|
|
compliance with the voluntary expenditure limit of the Insurance |
|
|
Commissioner Campaign Fairness Act." |
|
|
(c) Political advertising by a candidate who files a |
|
|
declaration of intent to comply with the limit on expenditures |
|
|
under Subchapter H, Chapter 253, or a specific-purpose committee |
|
|
for supporting such a candidate that does not contain the statement |
|
|
prescribed by Subsection (b) must comply with Section 255.001. |
|
|
(d) Political advertising by a candidate who files a |
|
|
declaration of intent to exceed the limit on expenditures under |
|
|
Subchapter H, Chapter 253, or a specific-purpose committee for |
|
|
supporting such a candidate must include the following statement: |
|
|
"Political advertising paid for by (name of candidate or |
|
|
committee), (who or which) has rejected the voluntary expenditure |
|
|
limit of the Insurance Commissioner Campaign Fairness Act." |
|
|
(e) The commission shall adopt rules providing for: |
|
|
(1) the minimum size of the disclosure required by |
|
|
this section in political advertising that appears on television or |
|
|
in writing; and |
|
|
(2) the minimum duration of the disclosure required by |
|
|
this section in political advertising that appears on television or |
|
|
radio. |
|
|
(f) A person who violates this section or a rule adopted |
|
|
under this section is liable for a civil penalty not to exceed |
|
|
$15,000. |
|
|
(g) Section 253.271 applies to the imposition and |
|
|
disposition of a civil penalty under this section. |
|
|
SECTION 11. Section 504.401(d), Transportation Code, is |
|
|
amended to read as follows: |
|
|
(d) In this section, "state official" means: |
|
|
(1) a member of the legislature; |
|
|
(2) the governor; |
|
|
(3) the lieutenant governor; |
|
|
(4) a justice of the supreme court; |
|
|
(5) a judge of the court of criminal appeals; |
|
|
(6) the attorney general; |
|
|
(7) the commissioner of the General Land Office; |
|
|
(8) the comptroller; |
|
|
(9) a member of the Railroad Commission of Texas; |
|
|
(10) the commissioner of agriculture; |
|
|
(11) the commissioner of insurance; |
|
|
(12) the secretary of state; or |
|
|
(13) [(12)] a member of the State Board of Education. |
|
|
SECTION 12. (a) The first general election for |
|
|
commissioner of insurance shall be held November 2, 2010, for a |
|
|
two-year term beginning on January 1, 2011. Thereafter, the |
|
|
commissioner of insurance shall be elected to serve a four-year |
|
|
term. |
|
|
(b) Until the first commissioner of insurance elected under |
|
|
this Act takes office, the commissioner serving on the effective |
|
|
date of this Act shall, unless otherwise removed as provided by law, |
|
|
continue in office under the prior law that governed the office, and |
|
|
that prior law is continued in effect for that purpose. If on |
|
|
January 1, 2011, there is a vacancy in the office of commissioner of |
|
|
insurance created under this Act because the first |
|
|
commissioner-elect has died or refuses or is permanently unable to |
|
|
serve, the commissioner serving on that date shall, unless |
|
|
otherwise removed as provided by law, continue in office under the |
|
|
prior law that governed the office until the governor fills the |
|
|
vacancy by appointment in the manner provided by law. The prior law |
|
|
that governed the office of the commissioner of insurance is |
|
|
continued in effect for that purpose. |
|
|
SECTION 13. Subchapter H, Chapter 253, Election Code, as |
|
|
added by this Act, applies only to a political contribution |
|
|
accepted or political expenditure made on or after the effective |
|
|
date of this Act. A political contribution accepted or political |
|
|
expenditure made before the effective date of this Act is governed |
|
|
by the law in effect on the date the contribution was accepted or |
|
|
the expenditure was made and is not aggregated with political |
|
|
contributions accepted or political expenditures made on or after |
|
|
the effective date of this Act. |
|
|
SECTION 14. (a) Except as provided by Subsection (b) of |
|
|
this section, this Act takes effect January 1, 2011. |
|
|
(b) Sections 1, 8, 9, and 13 of this Act take effect |
|
|
September 1, 2009. |