By: Dunnam H.B. No. 4419
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to money contributed to the secretary of state for
  officeholder purposes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 251.002(a), Government Code, is amended
  to read as follows:
         Sec. 251.002.  OFFICEHOLDERS COVERED.  (a)  The provisions
  of this title applicable to an officeholder apply only to a person
  who holds an elective public office [and to the secretary of state].
         SECTION 2.  Section 405.005, Government Code, is amended to
  read as follows:
         Sec. 405.005.  ACCEPTANCE OF GIFTS, GRANTS, AND DONATIONS;  
  REPORTING;  AUDIT.  (a)  The secretary of state may accept or
  solicit gifts, grants, and donations of money or property from
  private persons, foundations, or organizations.  Property provided
  by those entities and money donated to the secretary of state become
  the property of the state and are under the control of the secretary
  of state.
         (a-1)  The secretary of state shall use gifts of money made
  to the secretary of state for the purpose specified by the grantor,
  if any.  All donations accepted shall be used [on behalf of the
  state] for any lawful public purpose related to the office or duties
  of the secretary of state, including an officeholder expenditure.  
  As used in this section, "officeholder expenditure" has the meaning
  assigned by Section 251.001(9), Election Code.
         (b)  The secretary of state shall adopt rules to govern the
  secretary's acceptance of private gifts, grants, and donations to
  ensure that the use of the money or property supports the secretary
  of state's primary functions.  The secretary of state may decline to
  accept a gift, grant, or donation that is made for a specific
  purpose if the secretary of state determines the gift may not be
  used reasonably or economically for the designated purpose.
         (c)  Money and securities donated to the secretary of state
  shall be held in trust outside the treasury by the comptroller in a
  special fund to be known as the secretary of state extraordinary
  fund.  The comptroller shall manage and invest the fund on behalf of
  the secretary of state as directed or agreed to by the secretary of
  state.
         (d)  Interest, dividends, and other income of the fund shall
  be credited to the fund.
         (e)  The secretary of state by rule shall establish an
  acquisition policy for accepting property and art objects.
         (f)  Notwithstanding any other provision of law, the
  financial transactions of the secretary of state made out of the
  fund are subject to annual audit by the state auditor.
         (g)  The secretary of state shall prepare annually a complete
  and detailed written report accounting for the fund showing all
  money received and disbursed by the secretary of state during the
  preceding fiscal year.  The annual report must meet the reporting
  requirements applicable to financial reporting provided in the
  General Appropriations Act.
         SECTION 3.  If, on the effective date of this Act, the
  secretary of state has an officeholder account established under
  Title 15, Election Code, the secretary of state shall terminate the
  account on the effective date of the Act and remit any unexpended
  contributions in that account to one or more of the following:
               (1)  the comptroller for deposit to the credit of the
  secretary of state extraordinary fund established by this Act;
               (2)  one or more persons from whom political
  contributions were received, in accordance with Section
  254.204(d), Election Code.
         SECTION 4.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2009.