84R23659 EES-D

By: Cook, Geren, Harless H.B. No. 37

Substitute the following for H.B. No. 37:

By: Harless C.S.H.B. No. 37

A BILL TO BE ENTITLED

AN ACT

relating to the reporting of certain contributions and political expenditures by certain persons; adding provisions subject to a criminal penalty.

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

SECTION 1. Section 254.261, Election Code, is amended by adding Subsection (e) to read as follows:

(e) This section does not apply to a person to whom Subchapter K applies.

SECTION 2. Chapter 254, Election Code, is amended by adding Subchapter K to read as follows:

SUBCHAPTER K. REPORTING BY CERTAIN PERSONS WHO ARE NOT POLITICAL

COMMITTEES

Sec. 254.281. DEFINITIONS. In this subchapter:

(1) "Contribution" has the meaning assigned by Section 251.001 and includes dues and gifts, except that the term does not include a commercial transaction involving the transfer for consideration of anything of value pursuant to a contract or agreement that reflects the usual and normal business practice of an industry.

(2) "Contribution in connection with campaign activity" means a contribution from a donor to a person or group that, at the time that the donor makes the contribution, the donor knows or has reason to know may be used to make a political contribution or political expenditure or may be commingled with other funds used to make a political contribution or political expenditure. A donor who signs a statement indicating that the donor's contribution to the person or group may not be used to make a political contribution or political expenditure does not have reason to know that the donor's contribution may be used to make a political contribution or political expenditure.

(3) "Donor" means a person who makes a contribution to a person or group to whom this subchapter applies, regardless of whether the person making the contribution is a member of the person or group that accepts the contribution.

Sec. 254.282. APPLICABILITY OF SUBCHAPTER. This subchapter applies only to a person or group that:

(1) is not a political committee;

(2) accepts one or more contributions in connection with campaign activity from a person that in the aggregate exceed $2,000 during a reporting period; and

(3) makes one or more political expenditures, excluding expenditures authorized by Sections 253.098, 253.099, 253.100, and 253.104, that in the aggregate exceed $25,000 during a calendar year.

Sec. 254.283. REPORTING REQUIREMENTS. (a) Except as otherwise provided by this subchapter, a person or group shall comply with this chapter as if the person or group were the campaign treasurer of a general-purpose committee that does not file monthly reports under Section 254.155.

(b) A person or group is not required to file a campaign treasurer appointment for accepting contributions or making political expenditures for which reporting is required under this subchapter, unless the person or group is otherwise required to file a campaign treasurer appointment under this title.

(c) A person or group is not required to file a report under this subchapter if:

(1) the person or group is required to disclose the contributions and political expenditures in another report required under this title within the time applicable under this subchapter for reporting the contributions and political expenditures; or

(2) no reportable activity occurs during the reporting period.

Sec. 254.284. CONTENTS OF REPORT. (a) Disclosure of a contribution as provided by Sections 254.031 and 254.151 is required in a report under this subchapter only if:

(1) the contribution is a contribution in connection with campaign activity; and

(2) the aggregate amount of contributions in connection with campaign activity accepted from a person exceeds $2,000 during the reporting period.

(b) A report required under this subchapter is not required to include:

(1) any contributions accepted by the person or group that are not contributions in connection with campaign activity;

(2) the total amount of unitemized political contributions accepted by the person or group;

(3) the total amount of political contributions maintained by the person or group;

(4) any expenditures made by the person or group that are not political expenditures;

(5) the total amount of unitemized political expenditures made by the person or group; or

(6) the principal amount of all of the person's or group's outstanding loans.

(c) The first report required to be filed in a calendar year in which the $2,000 or $25,000 threshold under Section 254.282 is exceeded must include all contributions in connection with campaign activity accepted from a person that in the aggregate exceed $2,000 and all political expenditures made in the 12 months immediately preceding the acceptance of the contribution in connection with campaign activity or the making of the political expenditure that triggers the reporting requirements of this subchapter and not previously reported as required under this subchapter.

Sec. 254.285. NONREPORTABLE PERSONAL TRAVEL EXPENSE. A contribution consisting of personal travel expense incurred by an individual is not required to be reported under this subchapter if the individual receives no reimbursement for the expense.

Sec. 254.286. NONREPORTABLE PERSONAL SERVICE. A contribution consisting of an individual's personal service is not required to be reported under this subchapter if the individual receives no compensation for the service.

SECTION 3. Subchapter K, Chapter 254, Election Code, as added by this Act, applies only to the reporting of a contribution in connection with campaign activity or political expenditure made on or after the effective date of this Act. A contribution or expenditure made before the effective date of this Act is governed by the law in effect when the contribution or expenditure was made, and the former law is continued in effect for that purpose.

SECTION 4. This Act takes effect September 1, 2015.