By: Creighton S.B. No. 3014

(In the Senate - Filed March 14, 2025; April 7, 2025, read first time and referred to Committee on State Affairs; April 16, 2025, reported adversely, with favorable Committee Substitute by the following vote: Yeas 8, Nays 1; April 16, 2025, sent to printer.) Click here to see the committee vote

COMMITTEE SUBSTITUTE FOR S.B. No. 3014 By: Hall

A BILL TO BE ENTITLED

AN ACT

relating to the regulation of technical and clerical errors contained in registrations and reports filed with the Texas Ethics Commission and the commission's authority regarding the imposition of certain penalties.

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

SECTION 1. Section 571.0631, Government Code, is amended to read as follows:

Sec. 571.0631. RULES CONCERNING TECHNICAL AND CLERICAL ERRORS [VIOLATIONS]. (a) The commission shall adopt rules prescribing procedures for [investigating and] resolving technical and clerical errors contained in [violations of laws within the commission's jurisdiction. For] registrations and reports filed under laws within the commission's jurisdiction [Chapter 305, the commission shall consider clerical violations to include obvious typographical errors]. The rules must clearly outline:

(1) the types of errors that constitute a technical or clerical error; and

(2) the time and manner for correcting a technical or clerical error.

(b) A registrant filing a registration or report shall [under Chapter 305 may] correct obvious typographical errors [without penalty] by filing either a corrected registration or report or an updated or amended registration or report.

(c) Notwithstanding any other law, the commission may not assess a penalty or fine against a person who files a registration or report that contains a technical or clerical error based solely on the error.

SECTION 2. Section 571.173, Government Code, is amended to read as follows:

Sec. 571.173. CIVIL PENALTY FOR DELAY OR VIOLATION. (a) The commission may impose a civil penalty of not more than $5,000 or triple the amount at issue under a law administered and enforced by the commission, whichever amount is more, for a delay in complying with a commission order or for a violation of a law administered and enforced by the commission.

(b) Notwithstanding any other law, the commission may only impose a civil penalty for a violation of a law administered and enforced by the commission if the violation is committed knowingly. For purposes of this subsection, a violation is presumed to have not been committed knowingly if the amount at issue is less than $500.

SECTION 3. The heading to Section 571.1731, Government Code, is amended to read as follows:

Sec. 571.1731. WAIVER OR REDUCTION OF [LATE FILING] PENALTY.

SECTION 4. Section 571.1731(a), Government Code, is amended to read as follows:

(a) A person may request the waiver or reduction of a civil penalty [under Section 305.033(b) or 572.033(b) of this code or Section 254.042(b), Election Code,] by submitting an affidavit to the executive director that states the filer's reasons for requesting a waiver or reduction.

SECTION 5. Sections 572.033(a) and (b), 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 immediately mail a notice of the determination to the individual responsible for filing the statement [and to the appropriate attorney for the state].

(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 6. Section 572.034(a), Government Code, is amended to read as follows:

(a) An individual commits an offense if the individual is a state officer or candidate or state party chair and knowingly and wilfully fails to file a financial statement as required by this subchapter on three separate occasions.

SECTION 7. The following provisions of the Government Code are repealed:

(1) Section 571.079;

(2) Section 572.007; and

(3) Section 572.033(c).

SECTION 8. The changes in law made by this Act apply only to a registration, report, or statement that is required to be filed with the Texas Ethics Commission on or after the effective date of this Act. A registration, report, or statement that is required to be filed before the effective date of this Act is governed by the law in effect on the date the registration, report, or statement is required to be filed, and the former law is continued in effect for that purpose.

SECTION 9. The changes in law made by this Act apply only to conduct constituting a violation of a law administered and enforced by the Texas Ethics Commission that occurs on or after the effective date of this Act. Conduct constituting a violation of a law administered and enforced by the commission that occurs before the effective date of this Act is governed by the law in effect on the date the conduct occurs, and the former law is continued in effect for that purpose.

SECTION 10. This Act takes effect September 1, 2025.

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