89R22485 MZM-D
 
  By: Tepper H.B. No. 1804
 
  Substitute the following for H.B. No. 1804:
 
  By:  Phelan C.S.H.B. No. 1804
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to compliance with the filing requirements of certain
  reports of political contributions and expenditures and financial
  statements, including as a qualification for public elective
  office; providing an administrative penalty.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter A, Chapter 141, Election Code, is
  amended by adding Section 141.005 to read as follows:
         Sec. 141.005.  FAILURE TO FILE CERTAIN FINANCIAL REPORTS AND
  STATEMENTS: INELIGIBILITY AS CANDIDATE OR OFFICEHOLDER.  (a)  This
  section:
               (1)  applies only to a report or financial statement
  that is required to be filed under:
                     (A)  Chapter 254 by a candidate or officeholder;
                     (B)  Subchapter B, Chapter 572, Government Code;
                     (C)  Chapter 145, Local Government Code; or
                     (D)  Chapter 159, Local Government Code; and
               (2)  does not apply to a corrected or amended report or
  statement that is considered to be late under Section 571.0771,
  Government Code, for purposes of any applicable civil penalty for
  late filing of the report or statement.
         (b)  Unless the candidate or officeholder is granted a 30-day
  extension in accordance with Subsection (e), a candidate or
  officeholder who fails to file a report or statement to which this
  section applies before the 30th day after the date the report or
  statement is due is ineligible to be a candidate for or to hold the
  public office for which the report or statement is required until
  the succeeding election for that office after the date the
  candidate or officeholder becomes ineligible under this
  subsection.
         (c)  If a candidate or officeholder fails to file a report or
  statement to which this section applies by the date the report or
  statement is due, the authority with whom the report or statement is
  required to be filed may provide to the candidate or officeholder
  written notice of:
               (1)  the candidate's or officeholder's failure to file
  the report or statement; and
               (2)  the date by which the candidate or officeholder
  must file the report or statement before the candidate or
  officeholder becomes ineligible under Subsection (b) to be a
  candidate for or to hold the public office for which the report or
  statement is required.
         (d)  Unless the candidate or officeholder who is the subject
  of the late report or statement is granted a 30-day extension in
  accordance with Subsection (e), an authority with whom a report or
  statement to which this section applies is required to be filed
  shall provide written notice of each candidate or officeholder who
  fails to file the report or statement before the 30th day after the
  date the report or statement is due to the appropriate authority
  under Section 145.003 or, if a certificate of election has been
  issued, to the appropriate authority for acting on a resignation or
  declination relating to the office for which the report or
  statement is required. The notice must be delivered not later than
  the 14th day after the date the candidate or officeholder becomes
  ineligible. On receipt of the notice, the appropriate authority
  shall declare the candidate or officeholder ineligible.
         (e)  An authority with whom a report or statement to which
  this section applies is required to be filed may grant a candidate
  or officeholder a 30-day extension based on an extraordinary
  circumstance in accordance with rules the commission adopts.
         SECTION 2.  Subchapter B, Chapter 254, Election Code, is
  amended by adding Section 254.04015 to read as follows:
         Sec. 254.04015.  MONITORING AVAILABILITY OF CERTAIN REPORTS
  ON INTERNET; ADMINISTRATIVE PENALTY. (a) The commission shall
  develop procedures for monitoring the Internet websites of each
  political subdivision that is required to make a report available
  on the political subdivision's Internet website under Section
  254.0401(b) to ensure the political subdivision is in substantial
  compliance with that requirement.
         (b)  The commission may assess an administrative penalty in
  an amount not to exceed $5,000 against a political subdivision that
  is not in substantial compliance with the requirement described by
  Subsection (a). Each day a political subdivision is not in
  substantial compliance with that requirement constitutes a
  separate violation for purposes of imposing an administrative
  penalty under this subsection.
         (c)  The commission shall adopt rules as necessary to
  implement this section, including rules defining the meaning of
  substantial compliance for purposes of this section.
         SECTION 3.  Subtitle C, Title 5, Local Government Code, is
  amended by adding Chapter 181 to read as follows:
  CHAPTER 181. JUDICIAL REMOVAL OF CERTAIN PUBLIC OFFICERS
         Sec. 181.001.  APPLICABILITY.  This chapter applies only to
  a public officer who is required to file a report or financial
  statement under:
               (1)  Chapter 254, Election Code;
               (2)  Subchapter B, Chapter 572, Government Code;
               (3)  Chapter 145; or
               (4)  Chapter 159.
         Sec. 181.002.  GROUNDS FOR REMOVAL. In addition to any other
  law under which the officer may be removed, a public officer to whom
  this chapter applies may be removed from office if the officer is
  ineligible to hold the office under Section 141.005, Election Code.
         Sec. 181.003.  PROCEDURES FOR REMOVAL. A public officer to
  whom this chapter applies may be removed from office under this
  chapter using the same procedures for removing a county officer
  under Subchapter B, Chapter 87.
         SECTION 4.  Section 141.005, Election Code, as added by this
  Act, applies only to the eligibility of a person to be a candidate
  for an office for which an application for a place on the ballot is
  required to be filed on or after January 1, 2026.
         SECTION 5.  The changes in law made 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
  that chapter 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 6.  (a) Not later than December 1, 2025, the Texas
  Ethics Commission shall adopt rules as required by Section
  254.04015, Election Code, as added by this Act.
         (b)  Notwithstanding Section 254.04015, Election Code, as
  added by this Act, a political subdivision is not subject to an
  administrative penalty under that section before January 1, 2026.
         SECTION 7.  This Act takes effect September 1, 2025.