By: Huffman S.B. No. 1969
 
 
 
   
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to ethics of public servants, including the functions and
  duties of the Texas Ethics Commission; the regulation of political
  contributions, political advertising, lobbying, and conduct of
  public servants; and the reporting of political contributions and
  expenditures and personal financial information; providing civil
  and criminal penalties.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1. GENERAL PROCEDURES OF TEXAS ETHICS COMMISSION
         SECTION 1.01.  Subchapter B, Chapter 571, Government Code,
  is amended by adding Section 571.033 to read as follows:
         Sec. 571.033.  NOTIFICATION PROCEDURES. The commission
  shall adopt rules prescribing how the commission will notify any
  person or provide any notice required by this subtitle, Chapter
  305, or Title 15, Election Code.
         SECTION 1.02.  Section 571.0671, Government Code, is amended
  by adding Subsection (d) to read as follows:
         (d)  Electronic report data saved in a commission temporary
  storage location for later retrieval and editing before the report
  is filed is confidential and may not be disclosed. After the report
  is filed, the information disclosed in the report is subject to the
  law requiring the filing of the report.
  ARTICLE 2. PERSONAL FINANCIAL STATEMENTS
         SECTION 2.01.  Section 571.0671, Government Code, is amended
  to read as follows:
         Sec. 571.0671.  REQUIREMENTS FOR ELECTRONIC FILING
  SOFTWARE. (a)  Computer software provided or approved by the
  commission for use under Section 254.036(b), Election Code, or
  Section 302.013, [or] 305.0064, or 572.0291 must:
               (1)  use a standardized format for the entry of names,
  addresses, and zip codes;
               (2)  provide for secure and encoded transmission of
  data from the computer of a person filing a report to the computers
  used by the commission;
               (3)  be capable of being used by a person with basic
  computing skills;
               (4)  provide confirmation to a person filing a report
  that the report was properly received; and
               (5)  permit a person using a computer to prepare a
  report or to retrieve information from a report to import
  information to the report from a variety of computer software
  applications that meet commission specifications for a standard
  file format or export information from the report to a variety of
  computer software applications that meet commission specifications
  for a standard file format without the need to reenter information.
         (b)  Before determining the specifications for computer
  software developed, purchased, or licensed for use under Section
  254.036, Election Code, or Section 302.013, [or] 305.0064, or
  572.0291, the commission shall conduct at least one public hearing
  to discuss the specifications. For at least 10 days following the
  hearing, the commission shall accept public comments concerning the
  software specifications.
         (c)  The commission may provide software for use under
  Section 254.036(b), Election Code, or Section 302.013, [or]
  305.0064, or 572.0291 by making the software available on the
  Internet. If the commission makes the software available on the
  Internet, the commission is not required to provide the software on
  computer diskettes, CD-ROMs, or other storage media without charge
  to persons required to file reports under that section, but may
  charge a fee for providing the software on storage media. A fee
  under this subsection may not exceed the cost to the commission of
  providing the software.
         SECTION 2.02.  Subchapter B, Chapter 572, Government Code,
  is amended by adding Section 572.0291 to read as follows:
         Sec. 572.0291.  ELECTRONIC FILING REQUIRED. A financial
  statement filed with the commission must be filed by computer
  diskette, modem, or other means of electronic transfer, using
  computer software provided by the commission or computer software
  that meets commission specifications for a standard file format.
         SECTION 2.03.  Subchapter B, Chapter 572, Government Code,
  is amended by adding Section 572.0292 to read as follows:
         Sec. 572.0292.  PREPARATION OF FORMS. The commission shall
  design forms that may be used for filing a financial statement with
  an authority other than the commission.
         SECTION 2.04.  The heading to Section 572.030, Government
  Code, is amended to read as follows:
         Sec. 572.030.  NOTIFICATION OF FILING REQUIREMENT
  [PREPARATION AND MAILING OF FORMS].
         SECTION 2.05.  Subsections (b) and (c), Section 572.030,
  Government Code, are amended to read as follows:
         (b)  The commission shall notify [mail to] each individual
  required to file under this subchapter of [a notice that]:
               (1)  the requirement [states] that the individual [is
  required to] file a financial statement under this subchapter;
               (2)  [identifies] the filing dates for the financial
  statement as provided by Sections 572.026 and 572.027; and
               (3)  [describes] the manner in which the individual may
  electronically file the financial statement and access
  instructions for filing financial statements on [obtain the
  financial statement forms and instructions from] the commission's
  Internet website[;
               [(4)     states that on request of the individual, the
  commission will mail to the individual a copy of the financial
  statement forms and instructions; and
               [(5)     states, if applicable, the fee for mailing the
  forms and instructions and the manner in which the individual may
  pay the fee].
         (c)  The notification [notice] required by Subsection (b)
  must be provided [mailed]:
               (1)  before the 30th day before the deadline for filing
  the financial statement under Section 572.026(a) or (c), except as
  otherwise provided by this subsection;
               (2)  not later than the 15th day after the applicable
  deadline for filing an application for a place on the ballot or a
  declaration of write-in candidacy for candidates required to file
  under Section 572.027(a), (b), or (c);
               (3)  not later than the seventh day after the date of
  appointment for individuals required to file under Section
  572.026(b), or if the legislature is in session, sooner if
  possible; and
               (4)  not later than the fifth day after the date the
  certificate of nomination is filed for candidates required to file
  under Section 572.027(d) [574.027(d)].
         SECTION 2.06.  Subsection (b), Section 572.031, Government
  Code, is amended to read as follows:
         (b)  If the commission determines that an individual has
  failed to file the statement in compliance with this subchapter,
  the commission shall notify [send a written statement of the
  determination to] the appropriate prosecuting attorney for
  [attorneys of] the state of the determination.
         SECTION 2.07.  Section 572.032, Government Code, is amended
  by amending Subsection (a-1) and adding Subsection (a-2) to read as
  follows:
         (a-1)  The commission shall remove the home address of a
  judge, [or] justice, or district attorney from a financial
  statement filed under this subchapter before:
               (1)  permitting a member of the public to view the
  statement; or
               (2)  providing a copy of the statement to a member of
  the public.
         (a-2)  The commission shall remove the home address of an
  individual from a financial statement filed by the individual under
  this subchapter before:
               (1)  permitting a member of the public to view the
  statement; or
               (2)  providing a copy of the statement to a member of
  the public.
         SECTION 2.08.  Subsections (a) and (b), Section 572.033,
  Government Code, are amended to read as follows:
         (a)  The commission shall determine from any available
  evidence whether a statement required to be filed under this
  subchapter is late. On making a determination that the statement is
  late, the commission shall notify [immediately mail a notice of the
  determination to] the individual responsible for filing the
  statement and [to] the appropriate prosecuting attorney for the
  state of the determination.
         (b)  If a statement is determined to be late, the individual
  responsible for filing the statement is liable to the state for a
  civil penalty of $500. If a statement is more than 30 days late, the
  commission shall issue a warning of liability [by registered mail]
  to the individual responsible for the filing. If the penalty is not
  paid before the 10th day after the date on which the warning is
  received, the individual is liable for a civil penalty in an amount
  determined by commission rule, but not to exceed $10,000.
         SECTION 2.09.  Section 145.003, Local Government Code, is
  amended by adding Subsection (c) to read as follows:
         (c)  The statement may be filed with the clerk or secretary
  by electronic mail. The clerk or secretary may prescribe
  guidelines for filing by electronic mail.
         SECTION 2.10.  Subsection (d), Section 145.004, Local
  Government Code, is amended to read as follows:
         (d)  The timeliness of the filing is governed by Section
  572.029, Government Code. In addition, a financial statement that
  is not filed by electronic mail is timely filed if it is properly
  addressed and placed in the United States post office or in the
  hands of a common or contract carrier not later than the last day
  for filing the financial statement. The post office cancellation
  mark or the receipt mark of a common or contract carrier is prima
  facie evidence of the date the statement was deposited with the post
  office or carrier. The individual filing the statement may show by
  competent evidence that the actual date of posting was different
  from that shown by the mark.
         SECTION 2.11.  Section 159.003, Local Government Code, is
  amended by adding Subsection (c) to read as follows:
         (c)  The statement may be filed with the county clerk by
  electronic mail. The county clerk may prescribe guidelines for
  filing by electronic mail.
         SECTION 2.12.  Subsection (b), Section 159.004, Local
  Government Code, is amended to read as follows:
         (b)  The timeliness of the filing is governed by Section
  572.029, Government Code. In addition, a financial statement that
  is not filed by electronic mail is timely filed if it is properly
  addressed and placed in the United States post office or in the
  hands of a common or contract carrier not later than the last day
  for filing the financial statement. The post office cancellation
  mark or the receipt mark of a common or contract carrier is prima
  facie evidence of the date the statement was deposited with the post
  office or carrier. The individual filing the statement may show by
  competent evidence that the actual date of posting was different
  from that shown by the mark.
         SECTION 2.13.  Section 159.034, Local Government Code, is
  amended by adding Subsection (d) to read as follows:
         (d)  A report filed under this subchapter may be filed by
  electronic mail. The authority with whom the report is filed may
  prescribe guidelines for filing by electronic mail.
         SECTION 2.14.  Section 159.052, Local Government Code, is
  amended by adding Subsection (c) to read as follows:
         (c)  A financial statement filed with the county clerk may be
  filed by electronic mail. The county clerk may prescribe
  guidelines for filing by electronic mail under this subsection.
         SECTION 2.15.  Subsection (b), Section 159.053, Local
  Government Code, is amended to read as follows:
         (b)  The timeliness of the filing is governed by Section
  572.029, Government Code. In addition, a financial statement that
  is not filed by electronic mail is timely filed if it is properly
  addressed and placed in the United States post office or in the
  hands of a common or contract carrier not later than the last day
  for filing the financial statement. The post office cancellation
  mark or the receipt mark of a common or contract carrier is prima
  facie evidence of the date the statement was deposited with the post
  office or carrier. The individual filing the statement may show by
  competent evidence that the actual date of posting was different
  from that shown by the mark.
         SECTION 2.16.  Subsection (a-1), Section 572.032,
  Government Code, as amended by this Act, applies to any financial
  statement filed under Subchapter B, Chapter 572, Government Code,
  that the Texas Ethics Commission maintains on file and that is
  accessible to the public on or after the effective date of this Act.
         SECTION 2.17.  Subsection (a-2), Section 572.032,
  Government Code, as added by this Act, applies only to a financial
  statement filed under Subchapter B, Chapter 572, Government Code,
  on or after the date the Texas Ethics Commission determines that the
  computer software that a person is required to use to
  electronically file a financial statement includes features that
  allow the commission to easily and quickly redact information in
  the statement. A financial statement filed before that date is
  governed by the law in effect on the date of filing, and the former
  law is continued in effect for that purpose.
  ARTICLE 3. CAMPAIGN FINANCE
         SECTION 3.01.  Subdivision (16), Section 251.001, Election
  Code, is amended to read as follows:
               (16)  "Political advertising" means a communication
  supporting or opposing a candidate for nomination or election to a
  public office or office of a political party, a political party, a
  public officer, or a measure that:
                     (A)  in return for consideration, is published in
  a newspaper, magazine, or other periodical or is broadcast by radio
  or television; [or]
                     (B)  is transmitted by an automated dial
  announcing device, as defined by Section 55.121, Utilities Code; or
                     (C)  appears:
                           (i)  in a pamphlet, circular, flier,
  billboard or other sign, bumper sticker, or similar form of written
  communication; or
                           (ii)  on an Internet website.
         SECTION 3.02.  Section 251.003, Election Code, is amended to
  read as follows:
         Sec. 251.003.  [PROHIBITION OF] DOCUMENT FILING FEE. (a)  A
  candidate, an officeholder other than the secretary of state, and a
  political committee shall pay an annual fee for each year in which
  the candidate, officeholder, or political committee files [A charge
  may not be made for filing] a document required to be filed under
  this title.
         (b)  This section does not apply to:
               (1)  a candidate, officeholder, or specific-purpose
  committee who files reports under this title with an authority
  other than the commission;
               (2)  a candidate who filed a petition in lieu of the
  filing fee with the candidate's application for a place on the
  ballot; or
               (3)  an officeholder who filed a petition in lieu of the
  filing fee with the application for a place on the ballot as a
  candidate for the office held by the officeholder.
         (c)  The commission shall by rule determine the amount of the
  annual fee under this section in an amount, not to exceed $100, that
  the commission determines necessary for the administration of this
  title.
         (d)  The commission shall adopt rules to implement this
  section.
         SECTION 3.03.  The heading to Chapter 252, Election Code, is
  amended to read as follows:
  CHAPTER 252. CAMPAIGN TREASURER, AND PRINCIPAL POLITICAL COMMITTEE
         SECTION 3.04.  Chapter 252, Election Code, is amended by
  designating Sections 252.001 through 252.015 as Subchapter A and
  adding a subchapter heading to read as follows:
  SUBCHAPTER A. CAMPAIGN TREASURER
         SECTION 3.05.  Section 252.001, Election Code, is amended to
  read as follows:
         Sec. 252.001.  APPOINTMENT OF CAMPAIGN TREASURER REQUIRED.
  Except as provided in Subchapter C, each [Each] candidate and each
  political committee shall appoint a campaign treasurer as provided
  by this subchapter [chapter].
         SECTION 3.06.  Subchapter A, Chapter 252, Election Code, is
  amended by adding Section 252.00311 to read as follows:
         Sec. 252.00311.  CERTAIN USE OF CANDIDATE'S NAME BY
  POLITICAL COMMITTEE PROHIBITED. (a)  Notwithstanding Section
  252.0031(b), the name of a political committee may not include the
  name of any candidate that the committee supports if the candidate
  has not previously consented to and approved of the committee's
  formation.
         (b)  A violation of this section is a deceptive trade
  practice under Subchapter E, Chapter 17, Business & Commerce Code,
  and is actionable under that subchapter.
         SECTION 3.07.  Chapter 252, Election Code, is amended by
  adding Subchapter B to read as follows:
  SUBCHAPTER B. PRINCIPAL POLITICAL COMMITTEE
         Sec. 252.101.  DESIGNATION OF PRINCIPAL POLITICAL
  COMMITTEE. (a)  A candidate required to file a campaign treasurer
  appointment with the commission or an officeholder of an office for
  which a candidate is required to file a campaign treasurer
  appointment with the commission may designate a specific-purpose
  committee as the principal political committee for the candidate or
  officeholder with the responsibility of reporting any activity of
  the candidate or officeholder for which the candidate or
  officeholder would otherwise be required to file a report under
  Chapter 254.
         (b)  A candidate who designates a principal political
  committee under this subchapter is not required to appoint a
  campaign treasurer under Subchapter A.
         (c)  A designation of a principal political committee must be
  in writing and filed with the commission.
         Sec. 252.102.  LIMITATION ON DESIGNATION OF AND AS PRINCIPAL
  POLITICAL COMMITTEE. (a)  A candidate or officeholder may
  designate only one specific-purpose committee as the candidate's or
  officeholder's principal political committee.
         (b)  A specific-purpose committee may be designated as the
  principal political committee for only one candidate or
  officeholder.
         SECTION 3.08.  Subchapter A, Chapter 253, Election Code, is
  amended by adding Section 253.006 to read as follows:
         Sec. 253.006.  CERTAIN CONTRIBUTIONS AND EXPENDITURES BY
  LOBBYISTS RESTRICTED. (a)  In this section, "administrative
  action," "communicates directly with," "legislation," "member of
  the executive branch," and "member of the legislative branch" have
  the meanings assigned by Section 305.002, Government Code.
         (b)  Notwithstanding any other provision of law and except as
  provided by Subsection (c), a person required to register under
  Chapter 305, Government Code, may not, before the second
  anniversary of the date the last term for which the person was
  elected ends, knowingly make or authorize a political contribution
  or political expenditure from political contributions accepted by
  the person as a candidate or officeholder.
         (c)  Subsection (b) does not apply to a person who:
               (1)  communicates directly with a member of the
  legislative or executive branch only to influence legislation or
  administrative action on behalf of:
                     (A)  a nonprofit organization exempt from federal
  income taxation under Section 501(a), Internal Revenue Code of
  1986, as an organization described by Section 501(c)(3) of that
  code;
                     (B)  a group of low-income individuals; or
                     (C)  a group of individuals with disabilities;
  and
               (2)  does not receive compensation other than
  reimbursement for actual expenses for engaging in communication
  described by Subdivision (1).
         (d)  A person who violates this section commits an offense.
  An offense under this section is a Class A misdemeanor.
         SECTION 3.09.  Subsection (a), Section 253.158, Election
  Code, is amended to read as follows:
         (a)  For purposes of Sections 253.155 and 253.157, a
  contribution by the [spouse or] child of an individual is
  considered to be a contribution by the individual.
         SECTION 3.10.  Section 254.036, Election Code, is amended by
  amending Subsections (c) and (c-1) and adding Subsections (d) and
  (d-1) to read as follows:
         (c)  A candidate, officeholder, or political committee that
  is required to file reports with the commission may file reports
  that comply with Subsection (a) if:
               (1)  the candidate, officeholder, or campaign
  treasurer of the committee files with the commission an affidavit
  stating that the candidate, officeholder, or committee, an agent of
  the candidate, officeholder, or committee, or a person with whom
  the candidate, officeholder, or committee contracts does not use
  computer equipment to keep the current records of political
  contributions, political expenditures, or persons making political
  contributions to the candidate, officeholder, or committee; and
               (2)  the candidate, officeholder, or committee has
  never [does not], in a calendar year, accepted [accept] political
  contributions that in the aggregate exceeded [exceed] $20,000 or
  made [make] political expenditures that in the aggregate exceeded
  [exceed] $20,000.
         (c-1)  An affidavit under Subsection (c) must be filed with
  each report filed under Subsection (a). The affidavit must include
  a statement that the candidate, officeholder, or political
  committee understands that the candidate, officeholder, or
  committee shall file reports as required by Subsection (b) if:
               (1)  the candidate, officeholder, or committee, a
  consultant of the candidate, officeholder, or committee, or a
  person with whom the candidate, officeholder, or committee
  contracts uses computer equipment for a purpose described by
  Subsection (c); or
               (2)  the candidate, officeholder, or committee ever
  exceeds $20,000 in political contributions or political
  expenditures in a calendar year.
         (d)  A legislative caucus may file reports that comply with
  Subsection (a) if:
               (1)  the legislative caucus chair files with the
  commission an affidavit stating that the caucus, an agent of the
  caucus, or a person with whom the caucus contracts does not use
  computer equipment to keep the current records of contributions,
  expenditures, or persons making contributions to the caucus; and
               (2)  the caucus has never, in a calendar year, accepted
  contributions that in the aggregate exceeded $20,000 or made
  expenditures that in the aggregate exceeded $20,000.
         (d-1)  An affidavit under Subsection (d) must be filed with
  each report filed under Subsection (a). The affidavit must include
  a statement that the legislative caucus understands that the caucus
  shall file reports as required by Subsection (b) if:
               (1)  the caucus, a consultant of the caucus, or a person
  with whom the caucus contracts uses computer equipment for a
  purpose described by Subsection (d); or
               (2)  the caucus ever exceeds $20,000 in contributions
  or expenditures in a calendar year.
         SECTION 3.11.  Subsections (a) and (b), Section 254.042,
  Election Code, are amended to read as follows:
         (a)  The commission shall determine from any available
  evidence whether a report required to be filed with the commission
  under this chapter is late. On making that determination, the
  commission shall immediately notify [mail a notice of the
  determination to] the person required to file the report of the
  determination.
         (b)  If a report other than a report under Section
  254.064(c), 254.124(c), or 254.154(c) or the first report under
  Section 254.063 or 254.123 that is required to be filed following
  the primary or general election is determined to be late, the person
  required to file the report is liable to the state for a civil
  penalty of $500. If a report under Section 254.064(c), 254.124(c),
  or 254.154(c) or the first report under Section 254.063 or 254.153
  that is required to be filed following the primary or general
  election is determined to be late, the person required to file the
  report is liable to the state for a civil penalty of $500 for the
  first day the report is late and $100 for each day thereafter that
  the report is late. If a report is more than 30 days late, the
  commission shall issue a warning of liability [by registered mail]
  to the person required to file the report. If the penalty is not
  paid before the 10th day after the date on which the warning is
  received, the person is liable for a civil penalty in an amount
  determined by commission rule, but not to exceed $10,000.
         SECTION 3.12.  Subchapter C, Chapter 254, Election Code, is
  amended by adding Section 254.067 to read as follows:
         Sec. 254.067.  REPORT NOT REQUIRED. If during any reporting
  period prescribed by this subchapter a candidate designates a
  specific-purpose committee as the candidate's principal political
  committee as provided by Section 252.101, the candidate is not
  required to file a report covering that period if the candidate's
  principal political committee reports all of the activity that
  would otherwise be required to be included in the report,
  including:
               (1)  the amount of any political contribution,
  including any loan, made by the candidate to the principal
  political committee; and
               (2)  the amount of any political expenditure made by
  the candidate from personal funds and whether the candidate intends
  to seek reimbursement of the expenditure from the principal
  political committee.
         SECTION 3.13.  Section 254.095, Election Code, is amended to
  read as follows:
         Sec. 254.095.  REPORT NOT REQUIRED. (a)  If at the end of
  any reporting period prescribed by this subchapter an officeholder
  who is required to file a report with an authority other than the
  commission has not accepted political contributions that in the
  aggregate exceed $500 or made political expenditures that in the
  aggregate exceed $500, the officeholder is not required to file a
  report covering that period.
         (b)  If during any reporting period prescribed by this
  subchapter an officeholder designates a specific-purpose committee
  as the officeholder's principal political committee as provided by
  Section 252.101, the officeholder is not required to file a report
  covering that period if the officeholder's principal political
  committee reports all of the activity that would otherwise be
  required to be included in the report, including:
               (1)  the amount of any political contribution,
  including any loan, made by the officeholder to the principal
  political committee; and
               (2)  the amount of any political expenditure made by
  the officeholder from personal funds and whether the officeholder
  intends to seek reimbursement of the expenditure from the principal
  political committee.
         SECTION 3.14.  Section 254.157, Election Code, is amended to
  read as follows:
         Sec. 254.157.  MONTHLY REPORTING SCHEDULE. (a)  The
  campaign treasurer of a general-purpose committee filing monthly
  reports shall file a report not later than the 10th [fifth] day of
  the month following the period covered by the report. A report
  covering the month preceding an election in which the committee is
  involved must be received by the commission [authority with whom
  the report is required to be filed] not later than the 10th [fifth]
  day of the month following the period covered by the report.
         (b)  A monthly report covers the period beginning the first
  calendar [26th] day of each month and continuing through the last
  calendar [25th] day of that [the following] month[, except that the
  period covered by the first report begins January 1 and continues
  through January 25].
         SECTION 3.15.  Section 254.158, Election Code, is amended to
  read as follows:
         Sec. 254.158.  EXCEPTION TO MONTHLY REPORTING SCHEDULE. If
  the campaign treasurer appointment of a general-purpose committee
  filing monthly reports is filed after January 1 of the year in which
  monthly reports are filed, the period covered by the first monthly
  report begins the day the appointment is filed and continues
  through the last calendar [25th] day of the month in which the
  appointment is filed unless the appointment is filed the last
  calendar [25th or a succeeding] day of the month. In that case, the
  period continues through the last calendar [25th] day of the month
  following the month in which the appointment is filed.
         SECTION 3.16.  Subchapter J, Chapter 254, Election Code, is
  amended by adding Section 254.2611 to read as follows:
         Sec. 254.2611.  CERTAIN NONPROFIT MEMBERSHIP ASSOCIATIONS
  NOT ACTING IN CONCERT. For purposes of Section 254.261, a person is
  not considered to be acting in concert with another person if the
  person:
               (1)  is a nonprofit membership association subject to
  Subchapter D, Chapter 253;
               (2)  is part of a multi-tiered local, state, and
  national nonprofit membership association structure; and
               (3)  communicates with any entity within the
  multi-tiered association structure to make a direct campaign
  expenditure in this state.
         SECTION 3.17.  Subchapter J, Chapter 254, Election Code, is
  amended by adding Section 254.263 to read as follows:
         Sec. 254.263.  APPLICABILITY OF PRIVILEGE TO CERTAIN PERSONS
  MAKING DIRECT CAMPAIGN EXPENDITURES. The privilege established
  under Subchapter C, Chapter 22, Civil Practice and Remedies Code,
  does not apply to:
               (1)  a person who is required to file a report under
  Section 254.261, who controls a political committee, or who makes a
  political expenditure described by Section 253.100(a);
               (2)  a person who is required to be disclosed on federal
  Internal Revenue Service Form 990 as an entity related to a person
  described by Subdivision (1); or
               (3)  a person who is an employee or contractor of, who
  acts under the control of, or who acts on behalf of a person
  described by Subdivision (1) or (2).
         SECTION 3.18.  Section 255.001, Election Code, is amended by
  amending Subsections (a) and (d) and adding Subsections (a-1) and
  (a-2) to read as follows:
         (a)  A person may not knowingly cause to be published,
  distributed, or broadcast political advertising containing express
  advocacy that does not include [indicate] in the advertising:
               (1)  an indication that it is political advertising;
  [and]
               (2)  the full name of:
                     (A)  the person who paid for the political
  advertising;
                     (B)  the political committee authorizing the
  political advertising; or
                     (C)  the candidate or specific-purpose committee
  supporting the candidate, if the political advertising is
  authorized by the candidate;
               (3)  if the political advertising is authorized by the
  candidate:
                     (A)  for advertising transmitted through radio,
  an audio statement made by the candidate that identifies the
  candidate and states that the candidate has approved the
  communication; and
                     (B)  for advertising transmitted through
  television:
                           (i)  a clearly identifiable photographic or
  similar image of the candidate; and
                           (ii)  a statement in writing identifying the
  candidate and stating that the candidate has approved the
  communication that appears:
                                 (a)  at the end of the communication
  for not less than four seconds; and
                                 (b)  in letters that are at least four
  percent of the vertical screen height; and
               (4)  if the political advertising is not authorized by
  the candidate:
                     (A)  for advertising transmitted through radio,
  an audio statement of the name of the person who paid for the
  advertising, made by an individual named in the statement or by a
  representative of a person named in the statement who is not an
  individual; and
                     (B)  for advertising transmitted through
  television, a written statement that contains the name of the
  person who paid for the advertising and that appears:
                           (i)  at the end of the communication for not
  less than four seconds; and
                           (ii)  in letters that are at least four
  percent of the vertical screen height.
         (a-1)  An Internet website containing political advertising
  must contain the disclosure required by this section on each page of
  the website containing the political advertising. The disclosure
  must appear:
               (1)  in a printed box set apart from the rest of the
  contents of the page;
               (2)  in a font size that is at least 12 pixels; and
               (3)  in black text on a white background or in a text
  color so that the degree of contrast between the background color
  and the disclosure text color is at least as great as the degree of
  contrast between the background color and the color of the largest
  text on the page.
         (a-2)  If political advertising appears on a social media
  website, a disclosure that complies with Subsection (a-1) must
  appear on the appropriate social media profile page. If political
  advertising on an Internet website, including a social media
  profile page, is too small to include the disclosure in a manner
  that complies with Subsection (a-1), the disclosure satisfies the
  requirements of Subsection (a-1) if the disclosure links to another
  Internet website page that displays the full disclosure and is
  operational and freely accessible during the time the advertisement
  is visible. Internet advertising that is too small to include a
  disclosure complying with Subsection (a-1) includes an
  advertisement classified as a micro bar or button according to
  applicable advertising standards, an advertisement that has 200 or
  fewer characters, and a graphic or picture link in which including
  the disclosure is not reasonably practical because of the size of
  the graphic or picture link.
         (d)  This section does not apply to:
               (1)  tickets or invitations to political fund-raising
  events;
               (2)  campaign buttons, pins, hats, or similar campaign
  materials; [or]
               (3)  circulars or flyers that cost in the aggregate
  less than $500 to publish and distribute; or
               (4)  political advertising distributed by sending a
  text message using a mobile communications service.
         SECTION 3.19.  Section 257.003, Election Code, is amended by
  amending Subsection (a) and adding Subsection (e) to read as
  follows:
         (a)  A political party that accepts contributions authorized
  by Section 253.104 shall report all contributions and expenditures
  made to and from the account required by Section 257.002, except as
  provided by Subsection (e).
         (e)  A county executive committee of a political party is not
  required to file a report under this section if the committee:
               (1)  has less than $250 in one or more accounts
  maintained by the committee in which contributions authorized by
  Section 253.104 are deposited, as of the last day of the preceding
  reporting period;
               (2)  has not accepted any contributions authorized by
  Section 253.104 during the reporting period to be covered by the
  report; and
               (3)  has not made an expenditure from contributions
  authorized by Section 253.104 during the reporting period to be
  covered by the report.
         SECTION 3.20.  Subchapter B, Chapter 305, Government Code,
  is amended by adding Section 305.030 to read as follows:
         Sec. 305.030.  EXPENDITURES FROM POLITICAL CONTRIBUTIONS
  RESTRICTED. (a)  In this section, "political contribution" has the
  meaning assigned by Section 251.001, Election Code.
         (b)  Notwithstanding any other provision of law and except as
  provided by Subsection (c), a person required to register under
  this chapter may not, before the second anniversary of the date the
  last term for which the person was elected ends, knowingly make or
  authorize an expenditure under this chapter from political
  contributions accepted by the person as a candidate or
  officeholder.
         (c)  Subsection (b) does not apply to a person who:
               (1)  communicates directly with a member of the
  legislative or executive branch only to influence legislation or
  administrative action on behalf of:
                     (A)  a nonprofit organization exempt from federal
  income taxation under Section 501(a), Internal Revenue Code of
  1986, as an organization described by Section 501(c)(3) of that
  code;
                     (B)  a group of low-income individuals; or
                     (C)  a group of individuals with disabilities; and
               (2)  does not receive compensation other than
  reimbursement for actual expenses for engaging in communication
  described by Subdivision (1).
         SECTION 3.21.  Section 253.006, Election Code, as added by
  this article, and Section 305.030, Government Code, as added by
  this article, apply to a political contribution, political
  expenditure, or lobbying expenditure made on or after September 1,
  2013, from funds accepted as a political contribution, regardless
  of the date the funds were accepted.
         SECTION 3.22.  Section 253.158, Election Code, as amended by
  this Act, applies only to a political contribution accepted on or
  after the effective date of this Act. A contribution accepted
  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 the former law is continued in effect for that
  purpose.
         SECTION 3.23.  The changes in law made by this article apply
  only to a report required to be filed under Chapter 254, Election
  Code, on or after the effective date of this Act. A report required
  to be filed under Chapter 254, Election Code, before the effective
  date of this Act is governed by the law in effect on the date the
  report is due, and the former law is continued in effect for that
  purpose.
         SECTION 3.24.  (a)  Not later than September 15, 2015, each
  legislative caucus in existence on September 1, 2015, shall appoint
  a caucus chair and file a caucus chair appointment with the Texas
  Ethics Commission as required by Subchapter B, Chapter 252,
  Election Code, as added by this Act. Notwithstanding Section
  254.0311, Election Code, as amended by this Act:
               (1)  not later than October 1, 2015, a legislative
  caucus shall file a report under Section 254.0311, Election Code,
  as that section existed before amendment by this Act, that covers
  the period beginning July 1, 2015, or the day the caucus is
  organized, as applicable, and continuing through September 15,
  2015; and
               (2)  not later than January 15, 2016, a legislative
  caucus chair appointed under this subsection shall file a report
  under Section 254.0311, Election Code, as amended by this Act, that
  covers the period beginning September 15, 2015, and continuing
  through December 31, 2015.
         (b)  A legislative caucus chair appointed under Subsection
  (a) of this section is not responsible for:
               (1)  reporting caucus activity that occurs before
  September 15, 2013; or
               (2)  maintaining records of caucus activity that occurs
  before September 15, 2015.
  ARTICLE 4. EFFECTIVE DATE
         SECTION 4.01.  This Act takes effect September 1, 2015.