84R17886 EES-F

By: Davis of Harris H.B. No. 24

Substitute the following for H.B. No. 24:

By: Cook C.S.H.B. No. 24

A BILL TO BE ENTITLED

AN ACT

relating to political contributions and political expenditures; amending provisions subject to a civil penalty; creating criminal offenses.

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

SECTION 1. Section 251.005(d), Election Code, is amended to read as follows:

(d) An out-of-state political committee that does not file a campaign treasurer appointment shall comply with Sections [Section] 254.1581, 254.161, and 254.261.

SECTION 2. Section 253.031, Election Code, is amended by amending Subsection (b) and adding Subsection (b-1) to read as follows:

(b) A general-purpose [political] committee may not knowingly accept political contributions totaling more than $3,000 [$500] or make or authorize political expenditures totaling more than $3,000 in a calendar year [$500] at a time when a campaign treasurer appointment for the committee is not in effect.

(b-1) A specific-purpose committee may not knowingly accept political contributions totaling more than $1,000 or make or authorize political expenditures totaling more than $1,000 in a calendar year at a time when a campaign treasurer appointment for the committee is not in effect.

SECTION 3. The heading to Section 253.037, Election Code, is amended to read as follows:

Sec. 253.037. RESTRICTION [RESTRICTIONS] ON CONTRIBUTION [OR EXPENDITURE] BY GENERAL-PURPOSE COMMITTEE.

SECTION 4. Section 253.040, Election Code, is amended to read as follows:

Sec. 253.040. SEPARATE ACCOUNTS FOR CANDIDATES AND OFFICEHOLDERS. (a) Except as provided by Subsection (b) or Section 253.0351(c), each candidate or officeholder shall deposit all of [keep] the person's campaign and officeholder contributions in one or more accounts that are separate from any other account maintained by the person, not later than the fifth day after the date the candidate or officeholder accepts the contribution.

(b) A candidate or officeholder who does not accept political contributions that in the aggregate exceed $3,000 in a calendar year is not required to deposit political contributions in a separate account. Once the $3,000 threshold is exceeded, the candidate or officeholder is required to comply with Subsection (a) until all of the political contributions are expended.

(c) A person who violates this section commits an offense. An offense under this section is a Class B misdemeanor.

SECTION 5. Subchapter B, Chapter 253, Election Code, is amended by adding Section 253.0401 to read as follows:

Sec. 253.0401. SEPARATE ACCOUNTS FOR POLITICAL COMMITTEES. (a) Except as provided by Subsection (b), a political committee shall deposit all of the committee's political contributions in one or more accounts that are separate from any other account maintained by the political committee, not later than the fifth day after the date the committee accepts the contribution.

(b) A political committee that does not accept political contributions that in the aggregate exceed $3,000 in a calendar year is not required to deposit political contributions in a separate account. Once the $3,000 threshold is exceeded, the committee is required to comply with Subsection (a) until all of the political contributions are expended.

(c) A person who violates this section commits an offense. An offense under this section is a Class B misdemeanor.

SECTION 6. Section 254.001(d), Election Code, is amended to read as follows:

(d) A person required to maintain a record under this section shall preserve the record for at least four [two] years beginning on the filing deadline for the report containing the information in the record.

SECTION 7. Section 254.031(a), Election Code, is amended to read as follows:

(a) Except as otherwise provided by this chapter, each report filed under this chapter must include:

(1) the amount of political contributions from each person that in the aggregate exceed $100 [$50] and that are accepted during the reporting period by the person or committee required to file a report under this chapter, the full name and address of the person making the contributions, and the dates of the contributions;

(2) the amount of loans that are made during the reporting period for campaign or officeholder purposes to the person or committee required to file the report and that in the aggregate exceed $100 [$50], the dates the loans are made, the interest rate, the maturity date, the type of collateral for the loans, if any, the full name and address of the person or financial institution making the loans, the full name and address, principal occupation, and name of the employer of each guarantor of the loans, the amount of the loans guaranteed by each guarantor, and the aggregate principal amount of all outstanding loans as of the last day of the reporting period;

(3) the amount of political expenditures that in the aggregate exceed $100 and that are made during the reporting period, the full name and address of the persons to whom the expenditures are made, and the dates and purposes of the expenditures;

(4) the amount of each payment made during the reporting period from a political contribution if the payment is not a political expenditure, the full name and address of the person to whom the payment is made, and the date and purpose of the payment;

(5) the total amount or a specific listing of the political contributions of $100 [$50] or less accepted and the total amount or a specific listing of the political expenditures of $100 or less made during the reporting period;

(6) the total amount of all political contributions accepted and the total amount of all political expenditures made during the reporting period;

(7) the name of each candidate or officeholder who benefits from a direct campaign expenditure made during the reporting period by the person or committee required to file the report, and the office sought or held, excluding a direct campaign expenditure that is made by the principal political committee of a political party on behalf of a slate of two or more nominees of that party;

(8) as of the last day of a reporting period for which the person is required to file a report, the total amount of political contributions accepted, including interest or other income on those contributions, maintained in one or more accounts in which political contributions are deposited as of the last day of the reporting period;

(9) any credit, interest, rebate, refund, reimbursement, or return of a deposit fee resulting from the use of a political contribution or an asset purchased with a political contribution that is received during the reporting period and the amount of which exceeds $100;

(10) any proceeds of the sale of an asset purchased with a political contribution that is received during the reporting period and the amount of which exceeds $100;

(11) any investment purchased with a political contribution that is received during the reporting period and the amount of which exceeds $100;

(12) any other gain from a political contribution that is received during the reporting period and the amount of which exceeds $100; and

(13) the full name and address of each person from whom an amount described by Subdivision (9), (10), (11), or (12) is received, the date the amount is received, and the purpose for which the amount is received.

SECTION 8. Section 254.0311(b), Election Code, is amended to read as follows:

(b) A report filed under this section must include:

(1) the amount of contributions from each person, other than a caucus member, that in the aggregate exceed $100 [$50] and that are accepted during the reporting period by the legislative caucus, the full name and address of the person making the contributions, and the dates of the contributions;

(2) the amount of loans that are made during the reporting period to the legislative caucus and that in the aggregate exceed $100 [$50], the dates the loans are made, the interest rate, the maturity date, the type of collateral for the loans, if any, the full name and address of the person or financial institution making the loans, the full name and address, principal occupation, and name of the employer of each guarantor of the loans, the amount of the loans guaranteed by each guarantor, and the aggregate principal amount of all outstanding loans as of the last day of the reporting period;

(3) the amount of expenditures that in the aggregate exceed $100 [$50] and that are made during the reporting period, the full name and address of the persons to whom the expenditures are made, and the dates and purposes of the expenditures;

(4) the total amount or a specific listing of contributions of $100 [$50] or less accepted from persons other than caucus members and the total amount or a specific listing of expenditures of $100 [$50] or less made during the reporting period; and

(5) the total amount of all contributions accepted, including total contributions from caucus members, and the total amount of all expenditures made during the reporting period.

SECTION 9. Section 254.036, Election Code, is amended by adding Subsections (f-1) and (h-1) to read as follows:

(f-1) A report filed under this chapter with an authority other than the commission may be filed electronically by using computer software developed by the commission, if the software has the capability of being used for filing reports with other entities and the authority with whom the report is required to be filed has adopted rules and procedures to provide for the filing of the report using the software.

(h-1) An authority other than the commission with whom a report is required to be filed under this chapter may not require that a report filed by means of electronic transfer, including by the use of computer software developed by the commission, be accompanied by a notarized affidavit containing the statement in Subsection (h), provided that the report is filed in accordance with the rules and procedures adopted by the authority.

SECTION 10. Section 254.0611(a), Election Code, is amended to read as follows:

(a) In addition to the contents required by Sections 254.031 and 254.061, each report by a candidate for a judicial office covered by Subchapter F, Chapter 253, must include:

(1) the total amount of political contributions, including interest or other income, maintained in one or more accounts in which political contributions are deposited as of the last day of the reporting period;

(2) for each individual from whom the person filing the report has accepted political contributions that in the aggregate exceed $100 [$50] and that are accepted during the reporting period:

(A) the principal occupation and job title of the individual and the full name of the employer of the individual or of the law firm of which the individual or the individual's spouse is a member, if any; or

(B) if the individual is a child, the full name of the law firm of which either of the individual's parents is a member, if any;

(3) a specific listing of each asset valued at $500 or more that was purchased with political contributions and on hand as of the last day of the reporting period;

(4) for each political contribution accepted by the person filing the report but not received as of the last day of the reporting period:

(A) the full name and address of the person making the contribution;

(B) the amount of the contribution; and

(C) the date of the contribution; and

(5) for each outstanding loan to the person filing the report as of the last day of the reporting period:

(A) the full name and address of the person or financial institution making the loan; and

(B) the full name and address of each guarantor of the loan other than the candidate.

SECTION 11. Section 254.151, Election Code, is amended to read as follows:

Sec. 254.151. ADDITIONAL CONTENTS OF REPORTS. In addition to the contents required by Section 254.031, each report by a campaign treasurer of a general-purpose committee must include:

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

(2) the full name, residence or business street address, and telephone number of the committee's campaign treasurer;

(3) the identity and date of the election for which the report is filed, if applicable;

(4) the name of each identified candidate or measure or classification by party of candidates supported or opposed by the committee, indicating whether the committee supports or opposes each listed candidate, measure, or classification by party of candidates;

(5) the name of each identified officeholder or classification by party of officeholders assisted by the committee;

(6) the principal occupation of each person from whom political contributions that in the aggregate exceed $100 [$50] are accepted during the reporting period;

(7) the amount of each political expenditure in the form of a political contribution made to a candidate, officeholder, or another political committee that is returned to the committee during the reporting period, the name of the person to whom the expenditure was originally made, and the date it is returned;

(8) on a separate page or pages of the report, the identification of any contribution from a corporation or labor organization made and accepted under Subchapter D, Chapter 253; and

(9) on a separate page or pages of the report, the identification of the name of the donor, the amount, and the date of any expenditure made by a corporation or labor organization to:

(A) establish or administer the political committee; or

(B) finance the solicitation of political contributions to the committee under Section 253.100.

SECTION 12. Section 254.161, Election Code, is amended to read as follows:

Sec. 254.161. NOTICE TO CANDIDATE AND OFFICEHOLDER OF CONTRIBUTIONS AND EXPENDITURES. If a general-purpose committee other than the principal political committee of a political party or a political committee established by a political party's county executive committee accepts political contributions or makes political expenditures for a candidate or officeholder, notice of that fact shall be given to the affected candidate or officeholder as provided by Section 254.128 for a specific-purpose committee. An out-of-state political committee that is required to comply with this section shall designate an officer of the committee to provide the notice.

SECTION 13. Section 254.261, Election Code, is amended by adding Subsection (e) to read as follows:

(e) This section applies to an out-of-state political committee that does not file a campaign treasurer appointment.

SECTION 14. Sections 253.037(a) and (c), Election Code, are repealed.

SECTION 15. The amendment by this Act of Section 254.001(d), Election Code, applies to any record that contains information necessary for filing a report under Chapter 254, Election Code, for which the filing deadline was on or after September 1, 2013.

SECTION 16. Sections 254.031(a), 254.0311(b), 254.0611(a), and 254.151, Election Code, as amended by this Act, apply only to a report under Chapter 254, Election Code, that is required to be filed on or after the effective date of this Act. A report under Chapter 254, Election Code, that is required to be filed before the effective date of this Act 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.

SECTION 17. This Act takes effect September 1, 2015.