Texas 2009 - 81st Regular

Texas House Bill HB1941 Compare Versions

Only one version of the bill is available at this time.

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1	1	81R8143 AJA-D
2	2	By: Herrero H.B. No. 1941
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the election of the commissioner of insurance and
8	8	qualifications of the commissioner and certain employees of the
9	9	Texas Department of Insurance; providing civil penalties.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 31.022, Insurance Code, is amended to
12	12	read as follows:
13	13	Sec. 31.022. ELECTION [APPOINTMENT; TERM]. The
14	14	commissioner is elected by the qualified voters at the general
15	15	election for state and county officers for a term of four years.
16	16	[(a) The governor, with the advice and consent of the senate,
17	17	shall appoint the commissioner. The commissioner serves a two-year
18	18	term that expires on February 1 of each odd-numbered year.
19	19	[(b) The governor shall appoint the commissioner without
20	20	regard to the race, color, disability, sex, religion, age, or
21	21	national origin of the appointee.]
22	22	SECTION 2. Section 31.023, Insurance Code, is amended to
23	23	read as follows:
24	24	Sec. 31.023. QUALIFICATIONS. The commissioner must:
25	25	(1) be a competent and experienced administrator;
26	26	(2) be well informed and qualified in the field of
27	27	insurance and insurance regulation; and
28	28	(3) have at least 10 [five] years of experience as an
29	29	executive in the administration of business or government or as a
30	30	practicing attorney or certified public accountant, with at least
31	31	five years of that experience in the field of insurance or insurance
32	32	regulation.
33	33	SECTION 3. Section 31.024, Insurance Code, is amended to
34	34	read as follows:
35	35	Sec. 31.024. INELIGIBILITY FOR OTHER PUBLIC OFFICE. The
36	36	commissioner is ineligible to be a candidate for another [a] public
37	37	elective office in this state, unless the commissioner has resigned
38	38	and the governor has accepted the resignation.
39	39	SECTION 4. Section 31.027(a), Insurance Code, is amended to
40	40	read as follows:
41	41	(a) It is a ground for removal from office if the
42	42	commissioner:
43	43	(1) does not have at the time of taking office
44	44	[appointment] the qualifications required by Section 31.023;
45	45	(2) does not maintain during service as commissioner
46	46	the qualifications required by Section 31.023;
47	47	(3) violates a prohibition established by Section
48	48	33.001, 33.002 [33.003], 33.004, or 33.005; or
49	49	(4) cannot, because of illness or disability,
50	50	discharge the commissioner's duties for a substantial part of the
51	51	commissioner's term.
52	52	SECTION 5. Section 33.002, Insurance Code, is amended to
53	53	read as follows:
54	54	Sec. 33.002. INSURANCE BUSINESS INTEREST; SERVICE AS
55	55	COMMISSIONER. (a) A person is not eligible to serve [for
56	56	appointment] as commissioner if the person, the person's spouse, or
57	57	any other person who resides in the same household as the person:
58	58	(1) is registered, certified, or licensed by the
59	59	department;
60	60	(2) is employed by or participates in the management
61	61	of a business entity or other organization regulated by or
62	62	receiving funds from the department;
63	63	(3) owns or controls, directly or indirectly, more
64	64	than a 10 percent interest in a business entity or other
65	65	organization regulated by or receiving funds from the department;
66	66	or
67	67	(4) uses or receives a substantial amount of tangible
68	68	goods, services, or funds from the department, other than
69	69	compensation or reimbursement authorized by law.
70	70	(b) In addition to the restriction imposed by Subsection
71	71	(a), a [A] person is not eligible to serve [for appointment] as
72	72	commissioner if the person:
73	73	(1) is a stockholder, director, officer, attorney,
74	74	agent, or employee of an insurance company, insurance agent,
75	75	insurance broker, or insurance adjuster or any other business
76	76	entity or other organization regulated by or receiving funds from
77	77	the department; or
78	78	(2) is directly or indirectly interested in a business
79	79	described by Subdivision (1).
80	80	(c) Subsection (b) does not apply to:
81	81	(1) a person solely because the person is insured by an
82	82	insurer or is the beneficiary of insurance; or
83	83	(2) a person who:
84	84	(A) is appointed as a receiver, liquidator,
85	85	supervisor, or conservator of an insurer; or
86	86	(B) is an employee of a receiver, liquidator,
87	87	supervisor, or conservator of an insurer with respect to duties
88	88	under that employment.
89	89	(d) In addition to the restrictions imposed by Subsection
90	90	(a), a person is not eligible to serve as commissioner if the person
91	91	is related within the third degree of consanguinity or affinity, as
92	92	determined under Chapter 573, Government Code, to a person who is an
93	93	officer, managerial employee, or paid consultant in the insurance
94	94	industry.
95	95	SECTION 6. Section 33.003, Insurance Code, is amended by
96	96	amending Subsection (b) and adding Subsection (c) to read as
97	97	follows:
98	98	(b) A person who is related within the third degree of
99	99	consanguinity or affinity, as determined under Chapter 573,
100	100	Government Code, to [resides in the same household as] a person who
101	101	is an officer, managerial employee, or paid consultant in the
102	102	insurance industry may not be employed by the department in a "bona
103	103	fide executive, administrative, or professional capacity," as that
104	104	phrase is used for purposes of establishing an exemption to the
105	105	overtime provisions of the federal Fair Labor Standards Act of 1938
106	106	(29 U.S.C. Section 201 et seq.) [an exempt salary position as
107	107	defined by the General Appropriations Act].
108	108	(c) A person who owns stock in an insurer or other entity
109	109	regulated under this code may not be employed by the department in a
110	110	"bona fide executive, administrative, or professional capacity,"
111	111	as that phrase is used for purposes of establishing an exemption to
112	112	the overtime provisions of the federal Fair Labor Standards Act of
113	113	1938 (29 U.S.C. Section 201 et seq.).
114	114	SECTION 7. Sections 33.004(a) and (b), Insurance Code, are
115	115	amended to read as follows:
116	116	(a) A person who is an officer, employee, or paid consultant
117	117	of a trade association in the field of insurance may not be:
118	118	(1) the commissioner; or
119	119	(2) an employee of the department in a "bona fide
120	120	executive, administrative, or professional capacity," as that
121	121	phrase is used for purposes of establishing an exemption to the
122	122	overtime provisions of the federal Fair Labor Standards Act of 1938
123	123	(29 U.S.C. Section 201 et seq.) [who is exempt from the state's
124	124	position classification plan or is compensated at or above the
125	125	amount prescribed by the General Appropriations Act for step 1,
126	126	salary group A17, of the position classification salary schedule].
127	127	(b) A person who is related within the third degree of
128	128	consanguinity or affinity, as determined under Chapter 573,
129	129	Government Code, to [the spouse of] an officer, manager, or paid
130	130	consultant of a trade association in the field of insurance may not
131	131	be:
132	132	(1) the commissioner; or
133	133	(2) an employee of the department in a "bona fide
134	134	executive, administrative, or professional capacity," as that
135	135	phrase is used for purposes of establishing an exemption to the
136	136	overtime provisions of the federal Fair Labor Standards Act of 1938
137	137	(29 U.S.C. Section 201 et seq.) [who is exempt from the state's
138	138	position classification plan or is compensated at or above the
139	139	amount prescribed by the General Appropriations Act for step 1,
140	140	salary group A17, of the position classification salary schedule].
141	141	SECTION 8. Section 52.092(c), Election Code, is amended to
142	142	read as follows:
143	143	(c) Statewide offices of the state government shall be
144	144	listed in the following order:
145	145	(1) governor;
146	146	(2) lieutenant governor;
147	147	(3) attorney general;
148	148	(4) comptroller of public accounts;
149	149	(5) commissioner of the General Land Office;
150	150	(6) commissioner of agriculture;
151	151	(7) commissioner of insurance;
152	152	(8) railroad commissioner;
153	153	(9) [(8)] chief justice, supreme court;
154	154	(10) [(9)] justice, supreme court;
155	155	(11) [(10)] presiding judge, court of criminal
156	156	appeals;
157	157	(12) [(11)] judge, court of criminal appeals.
158	158	SECTION 9. Chapter 253, Election Code, is amended by adding
159	159	Subchapter H to read as follows:
160	160	SUBCHAPTER H. INSURANCE COMMISSIONER CAMPAIGN FAIRNESS ACT
161	161	Sec. 253.251. APPLICABILITY OF SUBCHAPTER. This subchapter
162	162	applies only to a political contribution or political expenditure
163	163	in connection with the office of commissioner of insurance.
164	164	Sec. 253.252. DEFINITIONS. In this subchapter:
165	165	(1) "Complying candidate" or "complying officeholder"
166	166	means a candidate who files a declaration of compliance under
167	167	Section 253.261(a)(1).
168	168	(2) "In connection with an election" means:
169	169	(A) with regard to a contribution that is
170	170	designated in writing for a particular election, the election
171	171	designated; or
172	172	(B) with regard to a contribution that is not
173	173	designated in writing for a particular election or that is
174	174	designated as an officeholder contribution, the next election for
175	175	the office of commissioner of insurance occurring after the
176	176	contribution is made.
177	177	(3) "Noncomplying candidate" means a candidate who:
178	178	(A) files a declaration of intent to exceed the
179	179	limit on expenditures or the use of personal funds under Section
180	180	253.261(a)(2);
181	181	(B) files a declaration of compliance under
182	182	Section 253.261(a)(1) but later exceeds the limit on expenditures
183	183	or the use of personal funds;
184	184	(C) fails to file a declaration of compliance
185	185	under Section 253.261(a)(1) or a declaration of intent under
186	186	Section 253.261(a)(2); or
187	187	(D) violates Section 253.269 or 253.270.
188	188	Sec. 253.253. CONTRIBUTION LIMIT. (a) Subject to Section
189	189	253.259, the commissioner of insurance or a candidate for the
190	190	office of commissioner of insurance may not, except as provided by
191	191	Subsection (b), knowingly accept political contributions from a
192	192	person that in the aggregate exceed $5,000 in connection with each
193	193	election in which the person is involved.
194	194	(b) This section does not apply to a political contribution
195	195	made by an out-of-state political committee.
196	196	(c) Notwithstanding Section 254.034, a person who receives
197	197	a political contribution that violates Subsection (a) shall return
198	198	the contribution to the contributor not later than the later of:
199	199	(1) the last day of the reporting period in which the
200	200	contribution is received; or
201	201	(2) the fifth day after the date the contribution is
202	202	received.
203	203	(d) A person who violates this section is liable for a civil
204	204	penalty not to exceed three times the amount of the political
205	205	contributions accepted in violation of this section.
206	206	Sec. 253.254. LIMIT ON CONTRIBUTIONS FROM REGULATED
207	207	INDUSTRY. (a) Subject to Section 253.259, the commissioner of
208	208	insurance or a candidate for the office of commissioner of
209	209	insurance may not accept a political contribution in excess of $50
210	210	from a person if:
211	211	(1) the person is:
212	212	(A) an insurer, an insurance agent, an insurance
213	213	broker, an insurance adjuster, or any other person regulated by or
214	214	receiving funds from the Texas Department of Insurance;
215	215	(B) an employee of a person regulated by or
216	216	receiving funds from the department; or
217	217	(C) a general-purpose committee established or
218	218	controlled by a person regulated by or receiving funds from the
219	219	department or a trade association in the field of insurance; or
220	220	(2) the contribution when aggregated with all
221	221	political contributions accepted by the candidate or officeholder
222	222	from the person regulated by or receiving funds from the
223	223	department, the person's employees, or a general-purpose committee
224	224	established or controlled by the person in connection with the
225	225	election would exceed six times the applicable contribution limit
226	226	in Section 253.253.
227	227	(b) A person who receives a political contribution that
228	228	violates Subsection (a) shall return the contribution to the
229	229	contributor not later than the later of:
230	230	(1) the last day of the reporting period in which the
231	231	contribution is received; or
232	232	(2) the fifth day after the date the contribution is
233	233	received.
234	234	(c) A person who fails to return a political contribution as
235	235	required by Subsection (b) is liable for a civil penalty not to
236	236	exceed three times the total amount of political contributions
237	237	accepted from the insurer, insurance agent, insurance broker,
238	238	insurance adjuster, or other person regulated by or receiving funds
239	239	from the Texas Department of Insurance, an employee of that person,
240	240	or general-purpose committees established or controlled by the
241	241	person.
242	242	(d) For the purposes of this section, a general-purpose
243	243	committee is established or controlled by a person if the committee
244	244	is established or controlled by persons employed by the person.
245	245	Sec. 253.255. CONTRIBUTION BY SPOUSE OR CHILD CONSIDERED TO
246	246	BE CONTRIBUTION BY INDIVIDUAL. (a) For purposes of Sections
247	247	253.253 and 253.254, a contribution by the spouse or child of an
248	248	individual is considered to be a contribution by the individual.
249	249	(b) In this section, "child" means a person under 18 years
250	250	of age who is not and has not been married or who has not had the
251	251	disabilities of minority removed for general purposes.
252	252	Sec. 253.256. EXCEPTION TO CONTRIBUTION LIMITS. Sections
253	253	253.253 and 253.254 do not apply to an individual who is related to
254	254	the candidate or officeholder within the second degree by
255	255	consanguinity, as determined under Subchapter B, Chapter 573,
256	256	Government Code.
257	257	Sec. 253.257. AGGREGATE LIMIT ON CONTRIBUTIONS FROM AND
258	258	DIRECT CAMPAIGN EXPENDITURES BY GENERAL-PURPOSE COMMITTEE. (a)
259	259	Subject to Section 253.259, a candidate for the office of
260	260	commissioner of insurance may not knowingly accept a political
261	261	contribution from a general-purpose committee that, when
262	262	aggregated with each other political contribution from a
263	263	general-purpose committee in connection with the election, exceeds
264	264	$300,000.
265	265	(b) A person who receives a political contribution that
266	266	violates Subsection (a) shall return the contribution to the
267	267	contributor not later than the later of:
268	268	(1) the last day of the reporting period in which the
269	269	contribution is received; or
270	270	(2) the fifth day after the date the contribution is
271	271	received.
272	272	(c) For purposes of this section, an expenditure by a
273	273	general-purpose committee for the purpose of supporting a
274	274	candidate, for opposing the candidate's opponent, or for assisting
275	275	the candidate as an officeholder is considered to be a contribution
276	276	to the candidate unless the campaign treasurer of the
277	277	general-purpose committee, in an affidavit filed with the authority
278	278	with whom the candidate's campaign treasurer appointment is
279	279	required to be filed, states that the committee has not directly or
280	280	indirectly communicated with the candidate's campaign, including
281	281	the candidate, an aide to the candidate, a campaign officer, or a
282	282	campaign consultant, or a specific-purpose committee in regard to a
283	283	strategic matter, including polling data, advertising, or voter
284	284	demographics, in connection with the candidate's campaign.
285	285	(d) This section does not apply to a political expenditure
286	286	by the principal political committee of the state executive
287	287	committee or a county executive committee of a political party that
288	288	complies with Section 253.267(b).
289	289	(e) A person who violates this section is liable for a civil
290	290	penalty not to exceed three times the amount by which the political
291	291	contributions accepted in violation of this section exceed the
292	292	applicable limit prescribed by Subsection (a).
293	293	Sec. 253.258. CONTRIBUTION TO CERTAIN COMMITTEES
294	294	CONSIDERED CONTRIBUTION TO CANDIDATE. For purposes of Sections
295	295	253.253, 253.254, and 253.257, a contribution to a specific-purpose
296	296	committee for the purpose of supporting a candidate for the office
297	297	of commissioner of insurance, opposing the candidate's opponent, or
298	298	assisting the candidate as an officeholder is considered to be a
299	299	contribution to the candidate.
300	300	Sec. 253.259. APPLICATION OF CONTRIBUTION LIMITS TO CERTAIN
301	301	CANDIDATES. (a) For purposes of a contribution limit prescribed
302	302	by Section 253.253, 253.254, or 253.257, the general primary
303	303	election and general election for state and county officers are
304	304	considered to be a single election in which a candidate for the
305	305	office of commissioner of insurance is involved if the candidate:
306	306	(1) is unopposed in the primary election; or
307	307	(2) does not have an opponent in the general election
308	308	whose name is to appear on the ballot.
309	309	(b) For a candidate to whom Subsection (a) applies, each
310	310	applicable contribution limit prescribed by Section 253.253,
311	311	253.254, or 253.257 is increased by 25 percent. A candidate who
312	312	accepts political contributions from a person that in the aggregate
313	313	exceed the applicable contribution limit prescribed by Section
314	314	253.253, 253.254, or 253.257 but that do not exceed the adjusted
315	315	limit as determined under this subsection may use the amount of
316	316	those contributions that exceeds the limit prescribed by Section
317	317	253.253, 253.254, or 253.257 only for making an officeholder
318	318	expenditure.
319	319	Sec. 253.260. NOTICE REQUIRED FOR CERTAIN POLITICAL
320	320	EXPENDITURES. (a) A person other than a candidate for the office
321	321	of commissioner of insurance or the principal political committee
322	322	of the state executive committee or a county executive committee of
323	323	a political party may not make political expenditures that in the
324	324	aggregate exceed the limit prescribed by Section 253.266 for the
325	325	purpose of supporting or opposing a candidate for the office of
326	326	commissioner of insurance or assisting a candidate as an
327	327	officeholder unless the person files with the commission a written
328	328	declaration of the person's intent to make expenditures that exceed
329	329	the limit prescribed by Section 253.266.
330	330	(b) A declaration under Subsection (a) must be filed not
331	331	later than the earlier of:
332	332	(1) the date the person makes the political
333	333	expenditure that causes the person to exceed the limit prescribed
334	334	by Section 253.266; or
335	335	(2) the 60th day before the date of the election in
336	336	connection with which the political expenditures are intended to be
337	337	made.
338	338	(c) The commission shall file a declaration received under
339	339	Subsection (a) with the records of each candidate or officeholder
340	340	on whose behalf the person filing the declaration intends to make
341	341	political expenditures. If the person intends to make only
342	342	political expenditures opposing a candidate, the commission shall
343	343	file the declaration with the records of each candidate for the
344	344	office.
345	345	(d) An expenditure made by a political committee or other
346	346	association that consists only of costs incurred in contacting the
347	347	committee's or association's membership may be made without the
348	348	declaration required by Subsection (a).
349	349	(e) A person who violates this section is liable for a civil
350	350	penalty not to exceed three times the amount of the political
351	351	expenditures made in violation of this section.
352	352	Sec. 253.261. VOLUNTARY COMPLIANCE. (a) When a person
353	353	becomes a candidate for the office of commissioner of insurance,
354	354	the person shall file with the commission:
355	355	(1) a sworn declaration of compliance stating that the
356	356	person voluntarily agrees to comply with the limit on expenditures
357	357	prescribed by this subchapter; or
358	358	(2) a written declaration of the person's intent to
359	359	make expenditures that exceed the limit prescribed by this
360	360	subchapter.
361	361	(b) The limits on contributions prescribed by this
362	362	subchapter apply to complying candidates unless suspended as
363	363	provided by Section 253.262 or 253.266. The limits on
364	364	contributions prescribed by this subchapter apply to noncomplying
365	365	candidates regardless of whether the limits on contributions and
366	366	expenditures are suspended for complying candidates.
367	367	(c) A candidate may not knowingly accept a campaign
368	368	contribution or make or authorize a campaign expenditure before the
369	369	candidate files a declaration under Subsection (a).
370	370	(d) A person who violates Subsection (c) is liable for a
371	371	civil penalty not to exceed three times the amount of the political
372	372	contributions or political expenditures made in violation of this
373	373	section.
374	374	Sec. 253.262. EFFECT OF NONCOMPLYING CANDIDATE. (a) A
375	375	complying candidate or a specific-purpose committee for supporting
376	376	a complying candidate is not required to comply with the limits on
377	377	contributions and expenditures prescribed by this subchapter if
378	378	another person becomes a candidate for the office of commissioner
379	379	of insurance and:
380	380	(1) files a declaration of intent to exceed the limit
381	381	on expenditures under Section 253.261(a)(2);
382	382	(2) fails to file a declaration of compliance under
383	383	Section 253.261(a)(1) or a declaration of intent under Section
384	384	253.261(a)(2);
385	385	(3) files a declaration of compliance under Section
386	386	253.261(a)(1) but later exceeds the limit on expenditures; or
387	387	(4) violates Section 253.269 or 253.270.
388	388	(b) The executive director of the commission shall issue an
389	389	order suspending the limits on contributions and expenditures for
390	390	the office of commissioner of insurance not later than the fifth day
391	391	after the date the executive director determines that:
392	392	(1) a person has become a candidate for that office
393	393	and:
394	394	(A) has filed a declaration of intent to exceed
395	395	the limits on expenditures under Section 253.261(a)(2); or
396	396	(B) has failed to file a declaration of
397	397	compliance under Section 253.261(a)(1) or a declaration of intent
398	398	under Section 253.261(a)(2);
399	399	(2) a complying candidate for that office has exceeded
400	400	the applicable limit on expenditures prescribed by this subchapter;
401	401	or
402	402	(3) a candidate for that office has violated Section
403	403	253.269 or 253.270.
404	404	Sec. 253.263. BENEFIT TO COMPLYING CANDIDATE. (a) A
405	405	complying candidate is entitled to state on political advertising
406	406	as provided by Section 255.009 that the candidate complies with the
407	407	Insurance Commissioner Campaign Fairness Act, regardless of
408	408	whether the limits on contributions and expenditures are later
409	409	suspended.
410	410	(b) A noncomplying candidate is not entitled to the benefit
411	411	provided by this section.
412	412	Sec. 253.264. EXPENDITURE LIMIT. (a) For each election
413	413	in which the candidate is involved, a complying candidate may not
414	414	knowingly make or authorize political expenditures that in the
415	415	aggregate exceed $2 million.
416	416	(b) A person who violates this section is liable for a civil
417	417	penalty not to exceed three times the amount by which the political
418	418	expenditures made in violation of this section exceed the
419	419	applicable limit prescribed by Subsection (a).
420	420	Sec. 253.265. EXPENDITURE BY CERTAIN COMMITTEES CONSIDERED
421	421	EXPENDITURE BY CANDIDATE. (a) For purposes of Section 253.264,
422	422	an expenditure by a specific-purpose committee for the purpose of
423	423	supporting a candidate for the office of commissioner of insurance,
424	424	opposing the candidate's opponent, or assisting the candidate as an
425	425	officeholder is considered to be an expenditure by the candidate
426	426	unless the candidate, in an affidavit filed with the commission,
427	427	states that the candidate's campaign, including the candidate, an
428	428	aide to the candidate, a campaign officer, or a campaign consultant
429	429	of the candidate, has not directly or indirectly communicated with
430	430	the committee in regard to a strategic matter, including polling
431	431	data, advertising, or voter demographics, in connection with the
432	432	candidate's campaign.
433	433	(b) This section applies only to an expenditure of which the
434	434	candidate or officeholder has notice.
435	435	(c) An affidavit under this section shall be filed with the
436	436	next report the candidate or officeholder is required to file under
437	437	Chapter 254 following the receipt of notice of the expenditure.
438	438	Sec. 253.266. EFFECT OF CERTAIN POLITICAL EXPENDITURES. (a)
439	439	A complying candidate or a specific-purpose committee for
440	440	supporting a complying candidate is not required to comply with the
441	441	applicable limits on contributions and expenditures prescribed by
442	442	this subchapter if a person makes political expenditures supporting
443	443	the candidate's opponent, assisting the candidate's opponent as an
444	444	officeholder, or opposing the candidate that in the aggregate
445	445	exceed $25,000.
446	446	(b) The executive director of the commission shall issue an
447	447	order suspending the limits on contributions and expenditures for
448	448	the office of commissioner of insurance not later than the fifth day
449	449	after the date the executive director determines that:
450	450	(1) a declaration of intent to make expenditures that
451	451	exceed the limit prescribed by Subsection (a) is filed in
452	452	connection with the office as provided by Section 253.260; or
453	453	(2) a political expenditure that exceeds the limit
454	454	prescribed by Subsection (a) has been made.
455	455	(c) The limit prescribed by Subsection (a) does not apply
456	456	to:
457	457	(1) an expenditure made by the complying candidate's
458	458	opponent;
459	459	(2) an expenditure made by the principal political
460	460	committee of the state executive committee or a county executive
461	461	committee of a political party; or
462	462	(3) an expenditure made by a political committee or
463	463	other association that consists only of costs incurred in
464	464	contacting the committee's or association's membership.
465	465	Sec. 253.267. CONTRIBUTION FROM OR DIRECT CAMPAIGN
466	466	EXPENDITURE BY POLITICAL PARTY. (a) Except as provided by
467	467	Subsection (b), a political contribution to or a direct campaign
468	468	expenditure on behalf of a complying candidate that is made by the
469	469	principal political committee of the state executive committee or a
470	470	county executive committee of a political party is considered to be
471	471	a political expenditure by the candidate for purposes of the
472	472	expenditure limits prescribed by Section 253.264.
473	473	(b) Subsection (a) does not apply to a political expenditure
474	474	for a generic get-out-the-vote campaign or for a written list of two
475	475	or more candidates that:
476	476	(1) identifies the party's candidates by name and
477	477	office sought, office held, or photograph;
478	478	(2) does not include any reference to the political
479	479	philosophy or positions on issues of the party's candidates; and
480	480	(3) is not broadcast, cablecast, published in a
481	481	newspaper or magazine, or placed on a billboard.
482	482	Sec. 253.268. RESTRICTION ON EXCEEDING EXPENDITURE
483	483	LIMITS. (a) A candidate who files a declaration of compliance
484	484	under Section 253.261(a)(1) and who later files a declaration of
485	485	intent to exceed the limit on expenditures under Section
486	486	253.261(a)(2) or a specific-purpose committee for supporting such a
487	487	candidate may not make a political expenditure that causes the
488	488	person to exceed the limit on expenditures prescribed by Section
489	489	253.264 before the 60th day after the date the candidate files the
490	490	declaration of intent to exceed the limit on expenditures.
491	491	(b) A person who violates this section is liable for a civil
492	492	penalty not to exceed three times the amount of political
493	493	expenditures made in violation of this section.
494	494	Sec. 253.269. AGREEMENT TO EVADE LIMITS PROHIBITED. (a) A
495	495	complying candidate may not:
496	496	(1) solicit a person to campaign as a noncomplying
497	497	candidate opposing the complying candidate; or
498	498	(2) enter into an agreement under which a person
499	499	campaigns as a noncomplying candidate opposing the complying
500	500	candidate.
501	501	(b) A candidate who violates this section is considered to
502	502	be a noncomplying candidate.
503	503	Sec. 253.270. MISREPRESENTATION OF OPPONENT'S COMPLIANCE
504	504	WITH OR VIOLATION OF SUBCHAPTER PROHIBITED. (a) A candidate may
505	505	not knowingly misrepresent that an opponent of the candidate:
506	506	(1) is a noncomplying candidate; or
507	507	(2) has violated this subchapter.
508	508	(b) A candidate who violates this section is considered to
509	509	be a noncomplying candidate.
510	510	Sec. 253.271. CIVIL PENALTY. (a) The commission may
511	511	impose a civil penalty under this subchapter against a person as
512	512	provided by Subchapter E, Chapter 571, Government Code.
513	513	(b) The commission shall base the amount of the penalty on:
514	514	(1) the seriousness of the violation;
515	515	(2) the history of previous violations;
516	516	(3) the amount necessary to deter future violations;
517	517	and
518	518	(4) any other matter that justice may require.
519	519	(c) A penalty paid under this subchapter shall be deposited
520	520	in the general revenue fund to the credit of the commission. The
521	521	commission may use amounts representing penalties paid under this
522	522	subchapter only for purposes of enforcing this subchapter.
523	523	SECTION 10. Chapter 255, Election Code, is amended by
524	524	adding Section 255.009 to read as follows:
525	525	Sec. 255.009. DISCLOSURE ON POLITICAL ADVERTISING FOR
526	526	OFFICE OF COMMISSIONER OF INSURANCE. (a) This section applies
527	527	only to a candidate or political committee covered by Subchapter H,
528	528	Chapter 253.
529	529	(b) Political advertising by a candidate for the office of
530	530	commissioner of insurance who files a declaration of intent to
531	531	comply with the limit on expenditures under Subchapter H, Chapter
532	532	253, or a specific-purpose committee for supporting such a
533	533	candidate may include the following statement: "Political
534	534	advertising paid for by (name of candidate or committee) in
535	535	compliance with the voluntary expenditure limit of the Insurance
536	536	Commissioner Campaign Fairness Act."
537	537	(c) Political advertising by a candidate who files a
538	538	declaration of intent to comply with the limit on expenditures
539	539	under Subchapter H, Chapter 253, or a specific-purpose committee
540	540	for supporting such a candidate that does not contain the statement
541	541	prescribed by Subsection (b) must comply with Section 255.001.
542	542	(d) Political advertising by a candidate who files a
543	543	declaration of intent to exceed the limit on expenditures under
544	544	Subchapter H, Chapter 253, or a specific-purpose committee for
545	545	supporting such a candidate must include the following statement:
546	546	"Political advertising paid for by (name of candidate or
547	547	committee), (who or which) has rejected the voluntary expenditure
548	548	limit of the Insurance Commissioner Campaign Fairness Act."
549	549	(e) The commission shall adopt rules providing for:
550	550	(1) the minimum size of the disclosure required by
551	551	this section in political advertising that appears on television or
552	552	in writing; and
553	553	(2) the minimum duration of the disclosure required by
554	554	this section in political advertising that appears on television or
555	555	radio.
556	556	(f) A person who violates this section or a rule adopted
557	557	under this section is liable for a civil penalty not to exceed
558	558	$15,000.
559	559	(g) Section 253.271 applies to the imposition and
560	560	disposition of a civil penalty under this section.
561	561	SECTION 11. Section 504.401(d), Transportation Code, is
562	562	amended to read as follows:
563	563	(d) In this section, "state official" means:
564	564	(1) a member of the legislature;
565	565	(2) the governor;
566	566	(3) the lieutenant governor;
567	567	(4) a justice of the supreme court;
568	568	(5) a judge of the court of criminal appeals;
569	569	(6) the attorney general;
570	570	(7) the commissioner of the General Land Office;
571	571	(8) the comptroller;
572	572	(9) a member of the Railroad Commission of Texas;
573	573	(10) the commissioner of agriculture;
574	574	(11) the commissioner of insurance;
575	575	(12) the secretary of state; or
576	576	(13) [(12)] a member of the State Board of Education.
577	577	SECTION 12. (a) The first general election for
578	578	commissioner of insurance shall be held November 2, 2010, for a
579	579	two-year term beginning on January 1, 2011. Thereafter, the
580	580	commissioner of insurance shall be elected to serve a four-year
581	581	term.
582	582	(b) Until the first commissioner of insurance elected under
583	583	this Act takes office, the commissioner serving on the effective
584	584	date of this Act shall, unless otherwise removed as provided by law,
585	585	continue in office under the prior law that governed the office, and
586	586	that prior law is continued in effect for that purpose. If on
587	587	January 1, 2011, there is a vacancy in the office of commissioner of
588	588	insurance created under this Act because the first
589	589	commissioner-elect has died or refuses or is permanently unable to
590	590	serve, the commissioner serving on that date shall, unless
591	591	otherwise removed as provided by law, continue in office under the
592	592	prior law that governed the office until the governor fills the
593	593	vacancy by appointment in the manner provided by law. The prior law
594	594	that governed the office of the commissioner of insurance is
595	595	continued in effect for that purpose.
596	596	SECTION 13. Subchapter H, Chapter 253, Election Code, as
597	597	added by this Act, applies only to a political contribution
598	598	accepted or political expenditure made on or after the effective
599	599	date of this Act. A political contribution accepted or political
600	600	expenditure made before the effective date of this Act is governed
601	601	by the law in effect on the date the contribution was accepted or
602	602	the expenditure was made and is not aggregated with political
603	603	contributions accepted or political expenditures made on or after
604	604	the effective date of this Act.
605	605	SECTION 14. (a) Except as provided by Subsection (b) of
606	606	this section, this Act takes effect January 1, 2011.
607	607	(b) Sections 1, 8, 9, and 13 of this Act take effect
608	608	September 1, 2009.