81R10310 CAE-D By: Smith of Tarrant H.B. No. 2511 A BILL TO BE ENTITLED AN ACT relating to political contributions to and political expenditures made by or on behalf of candidates, officeholders, and political committees; providing a criminal penalty. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 251.001(2), Election Code, is amended to read as follows: (2) "Contribution" means a direct or indirect transfer of money, goods, services, or any other thing of value [and includes an agreement made or other obligation incurred, whether legally enforceable or not, to make a transfer]. The term includes a loan or extension of credit, other than those expressly excluded by this subdivision, and a guarantee of a loan or extension of credit, including a loan described by this subdivision. The term does not include: (A) a loan made in the due course of business by a corporation that is legally engaged in the business of lending money and that has conducted the business continuously for more than one year before the loan is made; or (B) an expenditure required to be reported under Section 305.006(b), Government Code. SECTION 2. Subchapter A, Chapter 253, Election Code, is amended by adding Section 253.006 to read as follows: Sec. 253.006. STUDY OF LIMITS ON CONTRIBUTIONS AND EXPENDITURES. The commission shall conduct a study regarding limits on political contributions to and political expenditures made by or on behalf of candidates, officeholders, and political committees in connection with legislative and executive offices. The study must include a survey of states that have such limits to determine the effect those limits have had. Recommendations under this section must be made to the legislature not later than January 1, 2011. This section expires January 15, 2011. SECTION 3. Section 253.035, Election Code, is amended by adding Subsection (j) to read as follows: (j) A person who violates this section commits an offense. An offense under this section is a Class C misdemeanor. SECTION 4. Section 253.042(g), Election Code, is amended to read as follows: (g) The commission shall study possible restrictions on amounts of reimbursements under Subsection (a) in connection with the offices of state senator and state representative and member, State Board of Education, and shall make appropriate recommendations to the legislature on those matters. Recommendations under this section must be made to the legislature not later than January 1, 2011, and may be combined with recommendations made under Section 253.006. This subsection expires January 15, 2011. SECTION 5. Section 253.061, Election Code, is amended to read as follows: Sec. 253.061. DIRECT EXPENDITURE OF $200 [$100] OR LESS. Except as otherwise provided by law, an individual not acting in concert with another person may make one or more direct campaign expenditures in an election from the individual's own property if: (1) the total expenditures on any one or more candidates or measures do not exceed $200 [$100]; and (2) the individual receives no reimbursement for the expenditures. SECTION 6. The heading to Section 253.062, Election Code, is amended to read as follows: Sec. 253.062. DIRECT EXPENDITURE EXCEEDING $200 [$100]. SECTION 7. Section 253.062(a), Election Code, is amended to read as follows: (a) Except as otherwise provided by law, an individual not acting in concert with another person may make one or more direct campaign expenditures in an election from the individual's own property that exceed $200 [$100] on any one or more candidates or measures if: (1) the individual complies with Chapter 254 as if the individual were a campaign treasurer of a political committee; and (2) the individual receives no reimbursement for the expenditures. SECTION 8. Section 254.031(a), Election Code, is amended to read as follows: (a) Except as otherwise provided by this chapter, each report filed under this chapter must include: (1) the amount of political contributions from each person that in the aggregate exceed $75 [$50] and that are accepted during the reporting period by the person or committee required to file a report under this chapter, the full name and address of the person making the contributions, and the dates of the contributions; (2) the amount of loans that are made during the reporting period for campaign or officeholder purposes to the person or committee required to file the report and that in the aggregate exceed $75 [$50], the dates the loans are made, the interest rate, the maturity date, the type of collateral for the loans, if any, the full name and address of the person or financial institution making the loans, the full name and address, principal occupation, and name of the employer of each guarantor of the loans, the amount of the loans guaranteed by each guarantor, and the aggregate principal amount of all outstanding loans as of the last day of the reporting period; (3) the amount of political expenditures that in the aggregate exceed $75 [$50] and that are made during the reporting period, the full name and address of the persons to whom the expenditures are made, and the dates and purposes of the expenditures; (4) the amount of each payment made during the reporting period from a political contribution if the payment is not a political expenditure, the full name and address of the person to whom the payment is made, and the date and purpose of the payment; (5) the total amount or a specific listing of the political contributions of $75 [$50] or less accepted and the total amount or a specific listing of the political expenditures of $75 [$50] or less made during the reporting period; (6) the total amount of all political contributions accepted and the total amount of all political expenditures made during the reporting period; (7) the name of each candidate or officeholder who benefits from a direct campaign expenditure made during the reporting period by the person or committee required to file the report, and the office sought or held, excluding a direct campaign expenditure that is made by the principal political committee of a political party on behalf of a slate of two or more nominees of that party; and (8) as of the last day of a reporting period for which the person is required to file a report, the total amount of political contributions accepted, including interest or other income on those contributions, maintained in one or more accounts in which political contributions are deposited as of the last day of the reporting period. SECTION 9. This Act applies only to a political contribution accepted or an expenditure made from political contributions on or after September 1, 2009. A political contribution accepted or an expenditure made from political contributions before September 1, 2009, is governed by the law in effect at the time the contribution was accepted or the expenditure was made. SECTION 10. This Act takes effect September 1, 2009.