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A BILL TO BE ENTITLED
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AN ACT
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relating to the ethics of public servants, including the authority |
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and duties of the Texas Ethics Commission, the regulation of |
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certain contributions and expenditures, and the reporting of |
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political contributions and political expenditures and personal |
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financial information; creating a criminal offense. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 251.005(d), Election Code, is amended to |
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read as follows: |
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(d) An out-of-state political committee that does not file a |
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campaign treasurer appointment shall comply with Sections |
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[Section] 254.1581, 254.161, and 254.261. |
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SECTION 2. Subchapter A, Chapter 253, Election Code, is |
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amended by adding Section 253.006 to read as follows: |
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Sec. 253.006. UNLAWFUL USE OF PUBLIC FUNDS FOR |
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CONTRIBUTIONS OR EXPENDITURES. (a) An officer or employee of a |
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political subdivision may not spend or authorize the spending of |
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public funds to make a political contribution or a political |
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expenditure. |
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(b) An officer or employee of a political subdivision may |
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not directly or indirectly employ a person to use public funds to |
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make an unlawful political contribution or political expenditure. |
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(c) A person who violates Subsection (a) or (b) commits an |
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offense. An offense under this section is a Class A misdemeanor. |
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SECTION 3. Subchapter D, Chapter 253, Election Code, is |
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amended by adding Section 253.105 to read as follows: |
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Sec. 253.105. CONTRIBUTIONS TO DIRECT EXPENDITURE ONLY |
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COMMITTEES. A corporation or labor organization may make a |
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political contribution from its own property to a political |
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committee that: |
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(1) is not established or controlled by a candidate or |
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an officeholder; |
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(2) makes or intends to make direct campaign |
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expenditures; |
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(3) does not make or intend to make political |
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contributions to: |
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(A) a candidate; |
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(B) an officeholder; |
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(C) a specific-purpose committee established or |
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controlled by a candidate or an officeholder; or |
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(D) a political committee that makes or intends |
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to make political contributions to a candidate, an officeholder, or |
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a specific-purpose committee established or controlled by a |
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candidate or an officeholder; and |
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(4) has filed an affidavit with the commission stating |
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the committee's intention to operate as described by Subdivisions |
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(2) and (3). |
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SECTION 4. Section 254.161, Election Code, is amended to |
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read as follows: |
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Sec. 254.161. NOTICE TO CANDIDATE AND OFFICEHOLDER OF |
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CONTRIBUTIONS AND EXPENDITURES. If a general-purpose committee |
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other than the principal political committee of a political party |
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or a political committee established by a political party's county |
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executive committee accepts political contributions or makes |
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political expenditures for a candidate or officeholder, notice of |
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that fact shall be given to the affected candidate or officeholder |
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as provided by Section 254.128 for a specific-purpose committee. |
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An out-of-state political committee that is required to comply with |
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this section shall designate an officer of the committee to provide |
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the notice. |
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SECTION 5. Section 254.261, Election Code, is amended by |
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adding Subsection (e) to read as follows: |
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(e) This section applies to an out-of-state political |
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committee that does not file a campaign treasurer appointment. |
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SECTION 6. Section 302.021(a), Government Code, is amended |
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to read as follows: |
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(a) A speaker candidate or former speaker candidate commits |
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an offense if the person: |
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(1) knowingly fails to file the declaration of |
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candidacy required by Section 302.0121; |
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(2) knowingly fails to file the statement required by |
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Section 302.013; |
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(3) knowingly accepts a contribution, loan, or promise |
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of a contribution or loan in violation of Section 302.0121(c); |
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(4) [knowingly accepts a contribution, loan, or
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promise of a contribution or loan prohibited by Section 302.017
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from a corporation, partnership, association, firm, union,
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foundation, committee, club, or other organization or group of
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persons;
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[(5)] knowingly accepts a contribution from a person |
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who uses political contributions, interest earned on political |
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contributions, or an asset purchased with political contributions |
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to make the contribution in violation of Section 302.0191; |
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(5) [(6)] expends campaign funds for any purpose other |
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than those enumerated in Section 302.020; |
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(6) [(7)] knowingly retains contributions, assets |
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purchased with contributions, or interest or other income earned on |
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contributions in violation of Section 302.0201(b); or |
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(7) [(8)] knowingly fails to file the report of |
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unexpended campaign funds as required by Section 302.0201(d). |
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SECTION 7. Subchapter B, Chapter 571, Government Code, is |
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amended by adding Section 571.033 to read as follows: |
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Sec. 571.033. NOTIFICATION PROCEDURES. (a) Except as |
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provided by Subsection (b), the commission may adopt rules |
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prescribing how the commission will notify any person or provide |
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any notice required by this subtitle, Chapter 305, or Title 15, |
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Election Code. |
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(b) Subsection (a) does not authorize the commission to |
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adopt rules prescribing how the commission will notify any person |
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or provide any notice required by Subchapter E or F of this chapter |
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or how the commission will issue a warning of liability under |
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Section 254.042(b), Election Code. |
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SECTION 8. Section 571.071, Government Code, is amended by |
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amending Subsection (c) and adding Subsection (d) to read as |
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follows: |
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(c) The commission may provide a seminar for persons |
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required to register under Chapter 305 that addresses issues |
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involving lobbying, political contributions and expenditures, and |
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other issues as determined by the commission. The commission may |
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charge a fee for attending the seminar in an amount necessary to |
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cover the costs associated with the seminar, including the cost of |
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providing food or nonalcoholic beverages to attendees. |
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(d) The commission may provide a seminar that addresses the |
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laws administered and enforced by the commission and any other |
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relevant laws, as determined by the commission. The commission may |
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charge a fee for attending the seminar in an amount necessary to |
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cover the costs associated with the seminar, including the cost of |
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providing food or nonalcoholic beverages to attendees. |
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SECTION 9. Section 572.023(b), Government Code, as |
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effective until January 8, 2019, is amended to read as follows: |
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(b) The account of financial activity consists of: |
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(1) a list of all sources of occupational income, |
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identified by employer, or if self-employed, by the nature of the |
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occupation, including identification of a person or other |
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|
organization from which the individual or a business in which the |
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individual has a substantial interest received a fee as a retainer |
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for a claim on future services in case of need, as distinguished |
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from a fee for services on a matter specified at the time of |
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contracting for or receiving the fee, if professional or |
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occupational services are not actually performed during the |
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reporting period equal to or in excess of the amount of the |
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retainer, and the category of the amount of the fee; |
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(2) identification by name and the category of the |
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greatest number of shares of stock of any nonpublicly traded |
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business entity held or acquired, and if sold, the category of the |
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amount of net gain or loss realized from the sale; |
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(2-a) identification by stock symbol and the category |
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of the number of shares of stock of any publicly traded corporation |
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held; |
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(3) a list of all bonds, notes, and other commercial |
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paper held or acquired, and if sold, the category of the amount of |
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net gain or loss realized from the sale; |
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(4) identification of each source and the category of |
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the amount of income in excess of $500 derived from each source from |
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interest, dividends, royalties, and rents; |
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(5) identification of each guarantor of a loan and |
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identification of each person or financial institution to whom a |
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personal note or notes or lease agreement for a total financial |
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|
liability in excess of $1,000 existed at any time during the year |
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and the category of the amount of the liability; |
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(6) identification by description of all beneficial |
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|
interests in real property and business entities held or acquired, |
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and if sold, the category of the amount of the net gain or loss |
|
|
realized from the sale; |
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(7) identification of a person or other organization |
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from which the individual or the individual's spouse or dependent |
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|
children received a gift of anything of value in excess of $250 and |
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|
a description of each gift, except: |
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|
(A) a gift received from an individual related to |
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the individual at any time within the second degree by |
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|
consanguinity or affinity, as determined under Subchapter B, |
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Chapter 573; |
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(B) a political contribution that was reported as |
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|
required by Chapter 254, Election Code; and |
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(C) an expenditure required to be reported by a |
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person required to be registered under Chapter 305; |
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(8) identification of the source and the category of |
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|
the amount of all income received as beneficiary of a trust, other |
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than a blind trust that complies with Subsection (c), and |
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identification of each trust asset, if known to the beneficiary, |
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from which income was received by the beneficiary in excess of $500; |
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(9) identification by description and the category of |
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the amount of all assets and liabilities of a corporation, firm, |
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partnership, limited partnership, limited liability partnership, |
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professional corporation, professional association, joint venture, |
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or other business association in which 50 percent or more of the |
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outstanding ownership was held, acquired, or sold; |
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(10) a list of all boards of directors of which the |
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individual is a member and executive positions that the individual |
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holds in corporations, firms, partnerships, limited partnerships, |
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limited liability partnerships, professional corporations, |
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professional associations, joint ventures, or other business |
|
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associations or proprietorships, stating the name of each |
|
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corporation, firm, partnership, limited partnership, limited |
|
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liability partnership, professional corporation, professional |
|
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association, joint venture, or other business association or |
|
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proprietorship and the position held; |
|
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(11) identification of any person providing |
|
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transportation, meals, or lodging expenses permitted under Section |
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36.07(b), Penal Code, and the amount of those expenses, other than |
|
|
expenditures required to be reported under Chapter 305; |
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(12) any corporation, firm, partnership, limited |
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partnership, limited liability partnership, professional |
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corporation, professional association, joint venture, or other |
|
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business association, excluding a publicly held corporation, in |
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|
which both the individual and a person registered under Chapter 305 |
|
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have an interest; |
|
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(13) identification by name and the category of the |
|
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number of shares of any mutual fund held or acquired, and if sold, |
|
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the category of the amount of net gain or loss realized from the |
|
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sale; and |
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(14) identification of each blind trust that complies |
|
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with Subsection (c), including: |
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(A) the category of the fair market value of the |
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trust; |
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(B) the date the trust was created; |
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(C) the name and address of the trustee; and |
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(D) a statement signed by the trustee, under |
|
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penalty of perjury, stating that: |
|
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(i) the trustee has not revealed any |
|
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information to the individual, except information that may be |
|
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disclosed under Subdivision (8); and |
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(ii) to the best of the trustee's knowledge, |
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the trust complies with this section. |
|
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SECTION 10. Section 572.023(b), Government Code, as |
|
|
effective January 8, 2019, is amended to read as follows: |
|
|
(b) The account of financial activity consists of: |
|
|
(1) a list of all sources of occupational income, |
|
|
identified by employer, or if self-employed, by the nature of the |
|
|
occupation, including identification of a person or other |
|
|
organization from which the individual or a business in which the |
|
|
individual has a substantial interest received a fee as a retainer |
|
|
for a claim on future services in case of need, as distinguished |
|
|
from a fee for services on a matter specified at the time of |
|
|
contracting for or receiving the fee, if professional or |
|
|
occupational services are not actually performed during the |
|
|
reporting period equal to or in excess of the amount of the |
|
|
retainer, and the category of the amount of the fee; |
|
|
(2) identification by name and the category of the |
|
|
greatest number of shares of stock of any nonpublicly traded |
|
|
business entity held or acquired, and if sold, the category of the |
|
|
amount of net gain or loss realized from the sale; |
|
|
(2-a) identification by stock symbol and the category |
|
|
of the number of shares of stock of any publicly traded corporation |
|
|
held; |
|
|
(3) a list of all bonds, notes, and other commercial |
|
|
paper held or acquired, and if sold, the category of the amount of |
|
|
net gain or loss realized from the sale; |
|
|
(4) identification of each source and the category of |
|
|
the amount of income in excess of $500 derived from each source from |
|
|
interest, dividends, royalties, and rents; |
|
|
(5) identification of each guarantor of a loan and |
|
|
identification of each person or financial institution to whom a |
|
|
personal note or notes or lease agreement for a total financial |
|
|
liability in excess of $1,000 existed at any time during the year |
|
|
and the category of the amount of the liability; |
|
|
(6) identification by description of all beneficial |
|
|
interests in real property and business entities held or acquired, |
|
|
and if sold, the category of the amount of the net gain or loss |
|
|
realized from the sale; |
|
|
(7) identification of a person or other organization |
|
|
from which the individual or the individual's spouse or dependent |
|
|
children received a gift of anything of value in excess of $250 and |
|
|
a description of each gift, except: |
|
|
(A) a gift received from an individual related to |
|
|
the individual at any time within the second degree by |
|
|
consanguinity or affinity, as determined under Subchapter B, |
|
|
Chapter 573; |
|
|
(B) a political contribution that was reported as |
|
|
required by Chapter 254, Election Code; and |
|
|
(C) an expenditure required to be reported by a |
|
|
person required to be registered under Chapter 305; |
|
|
(8) identification of the source and the category of |
|
|
the amount of all income received as beneficiary of a trust, other |
|
|
than a blind trust that complies with Subsection (c), and |
|
|
identification of each trust asset, if known to the beneficiary, |
|
|
from which income was received by the beneficiary in excess of $500; |
|
|
(9) identification: |
|
|
(A) by description of a corporation, firm, |
|
|
partnership, limited partnership, limited liability partnership, |
|
|
professional corporation, professional association, joint venture, |
|
|
or other business association in which five percent or more of the |
|
|
outstanding ownership was held, acquired, or sold; and |
|
|
(B) by description and the category of the amount |
|
|
of all assets and liabilities of a corporation, firm, partnership, |
|
|
limited partnership, limited liability partnership, professional |
|
|
corporation, professional association, joint venture, or other |
|
|
business association in which 50 percent or more of the outstanding |
|
|
ownership was held, acquired, or sold; |
|
|
(10) a list of all boards of directors of which the |
|
|
individual is a member and executive positions that the individual |
|
|
holds in corporations, firms, partnerships, limited partnerships, |
|
|
limited liability partnerships, professional corporations, |
|
|
professional associations, joint ventures, or other business |
|
|
associations or proprietorships, stating the name of each |
|
|
corporation, firm, partnership, limited partnership, limited |
|
|
liability partnership, professional corporation, professional |
|
|
association, joint venture, or other business association or |
|
|
proprietorship and the position held; |
|
|
(11) identification of any person providing |
|
|
transportation, meals, or lodging expenses permitted under Section |
|
|
36.07(b), Penal Code, and the amount of those expenses, other than |
|
|
expenditures required to be reported under Chapter 305; |
|
|
(12) any corporation, firm, partnership, limited |
|
|
partnership, limited liability partnership, professional |
|
|
corporation, professional association, joint venture, or other |
|
|
business association, excluding a publicly held corporation, in |
|
|
which both the individual and a person registered under Chapter 305 |
|
|
have an interest; |
|
|
(13) identification by name and the category of the |
|
|
number of shares of any mutual fund held or acquired, and if sold, |
|
|
the category of the amount of net gain or loss realized from the |
|
|
sale; |
|
|
(14) identification of each blind trust that complies |
|
|
with Subsection (c), including: |
|
|
(A) the category of the fair market value of the |
|
|
trust; |
|
|
(B) the date the trust was created; |
|
|
(C) the name and address of the trustee; and |
|
|
(D) a statement signed by the trustee, under |
|
|
penalty of perjury, stating that: |
|
|
(i) the trustee has not revealed any |
|
|
information to the individual, except information that may be |
|
|
disclosed under Subdivision (8); and |
|
|
(ii) to the best of the trustee's knowledge, |
|
|
the trust complies with this section; |
|
|
(15) if the aggregate cost of goods or services sold |
|
|
under one or more written contracts described by this subdivision |
|
|
exceeds $10,000 in the year covered by the report, identification |
|
|
of each written contract, including the name of each party to the |
|
|
contract: |
|
|
(A) for the sale of goods or services in the |
|
|
amount of $2,500 or more; |
|
|
(B) to which the individual, the individual's |
|
|
spouse, the individual's dependent child, or any business entity of |
|
|
which the individual, the individual's spouse, or the individual's |
|
|
dependent child, independently or in conjunction with one or more |
|
|
persons described by this subsection, has at least a 50 percent |
|
|
ownership interest is a party; and |
|
|
(C) with: |
|
|
(i) a governmental entity; or |
|
|
(ii) a person who contracts with a |
|
|
governmental entity, if the individual or entity described by |
|
|
Paragraph (B) performs work arising out of the contract, |
|
|
subcontract, or agreement between the person and the governmental |
|
|
entity for a fee; and |
|
|
(16) if the individual is a member of the legislature |
|
|
and provides bond counsel services to an issuer, as defined by |
|
|
Section 1201.002(1), identification of the following for each |
|
|
issuance for which the individual served as bond counsel: |
|
|
(A) the amount of the issuance; |
|
|
(B) the name of the issuer; |
|
|
(C) the date of the issuance; |
|
|
(D) the amount of fees paid to the individual, |
|
|
and whether the amount is: |
|
|
(i) less than $5,000; |
|
|
(ii) at least $5,000 but less than $10,000; |
|
|
(iii) at least $10,000 but less than |
|
|
$25,000; or |
|
|
(iv) $25,000 or more; and |
|
|
(E) the amount of fees paid to the individual's |
|
|
firm, if applicable, and whether the amount is: |
|
|
(i) less than $5,000; |
|
|
(ii) at least $5,000 but less than $10,000; |
|
|
(iii) at least $10,000 but less than |
|
|
$25,000; or |
|
|
(iv) $25,000 or more. |
|
|
SECTION 11. Subchapter B, Chapter 572, Government Code, is |
|
|
amended by adding Section 572.0292 to read as follows: |
|
|
Sec. 572.0292. RECORDKEEPING REQUIRED. (a) Each |
|
|
individual who files with the commission a financial statement |
|
|
required by this subchapter shall maintain a record of the |
|
|
information that is necessary for filing the financial statement. |
|
|
(b) An individual required to maintain a record under this |
|
|
section shall preserve the record for at least three years |
|
|
beginning on the filing deadline for the financial statement |
|
|
containing the information in the record. |
|
|
SECTION 12. The heading to Section 572.030, Government |
|
|
Code, is amended to read as follows: |
|
|
Sec. 572.030. PREPARATION [AND MAILING] OF FORMS; NOTICE OF |
|
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FILING REQUIREMENTS. |
|
|
SECTION 13. Sections 572.030(b), (c), and (d), 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
|
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|
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
|
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|
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) Except as provided by commission rule, the notification |
|
|
[The 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 |
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under Section 572.027(d) [574.027(d)]. |
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(d) Except as provided by commission rule, the [The] |
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commission shall mail a copy of the financial statement forms and |
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instructions to an individual not later than the third business day |
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after the date the commission receives the individual's request for |
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the forms and instructions. |
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SECTION 14. Section 572.032, Government Code, is amended by |
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amending Subsection (a) and adding Subsection (d) to read as |
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follows: |
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(a) Financial statements filed under this subchapter are |
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public records. The commission shall maintain the statements in |
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separate alphabetical files and in a manner that is accessible to |
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|
the public during regular office hours and make the statements |
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|
available to the public on the commission's website not later than |
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the 15th day after the date the statement is required to be filed or |
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is actually filed, whichever is later. |
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(d) The commission is not required to continue to make |
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available on its website a financial statement that may be |
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|
destroyed under Subsection (c). The commission may not make |
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|
available on its website a financial statement that the commission |
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|
is required to destroy under Subsection (c). |
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SECTION 15. Section 572.032(a-1), Government Code, as |
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amended by H.B. 776 and S.B. 1576, Acts of the 85th Legislature, |
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|
Regular Session, 2017, is reenacted and amended to read as follows: |
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(a-1) The commission shall remove the home address, the |
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|
telephone number, and the names of the dependent children of an |
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|
individual from a financial statement filed by the individual under |
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|
this subchapter before: |
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(1) permitting a member of the public to view the |
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|
statement; |
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(2) providing a copy of the statement to a member of |
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|
the public; or |
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|
(3) making the statement available to the public on |
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|
the commission's Internet website[, if the commission makes
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|
statements filed under this subchapter available on its website]. |
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SECTION 16. The following provisions are repealed: |
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|
(1) Section 253.037, Election Code; and |
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|
(2) Sections 302.017, 302.019, and 572.032(b), |
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Government Code. |
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|
SECTION 17. Section 253.006, Election Code, as added by |
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|
this Act, applies only to a political contribution or a political |
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|
expenditure made on or after the effective date of this Act. |
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|
SECTION 18. The changes in law made by this Act to Chapter |
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|
572, Government Code, apply only to a financial statement due on or |
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|
after the effective date of this Act. A financial statement due |
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|
before the effective date of this Act is governed by the law in |
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|
effect on the date the financial statement was due, and the former |
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law is continued in effect for that purpose. |
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SECTION 19. This Act takes effect December 1, 2017. |