81R977 ESH-D
By: Shapleigh S.B. No. 246
A BILL TO BE ENTITLED
AN ACT
relating to limits on political contributions and direct campaign
expenditures by individuals, partnerships, partners, and limited
liability companies; providing civil and criminal penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. This Act may be cited as the "Clean Elections
Act."
SECTION 2. Chapter 253, Election Code, is amended by adding
Subchapter G to read as follows:
SUBCHAPTER G. AGGREGATE LIMIT ON CONTRIBUTIONS
BY INDIVIDUAL, PARTNERSHIP, PARTNER, OR
LIMITED LIABILITY COMPANY
Sec. 253.201. APPLICABILITY OF SUBCHAPTER. This subchapter
applies only to:
(1) a political contribution to a general-purpose
committee;
(2) a political contribution to a candidate for or
holder of one of the following offices:
(A) a statewide office;
(B) the office of state senator;
(C) the office of state representative;
(D) the office of member, State Board of
Education;
(E) the office of justice or chief justice, court
of appeals; or
(F) the office of district judge;
(3) a political contribution to a specific-purpose
committee for supporting or opposing a candidate for an office
described by Subdivision (2) or assisting a holder of such an
office; and
(4) as provided by Section 253.206, a direct campaign
expenditure in connection with an office described by Subdivision
(2).
Sec. 253.202. DEFINITION. In this subchapter, "election
cycle" means the period beginning on January 1 of an odd-numbered
year and ending on December 31 of the following even-numbered year.
Sec. 253.203. CONTRIBUTION LIMITS. (a) An individual may
not knowingly make or authorize political contributions to which
this subchapter applies that in the aggregate exceed $100,000 in an
election cycle.
(b) Notwithstanding Subsection (a), an individual who is
younger than 18 years of age and who has not had the disabilities of
minority removed for general purposes may not knowingly make or
authorize political contributions to which this subchapter applies
that in the aggregate exceed $5,000 in an election cycle.
(c) A candidate, officeholder, or political committee may
not knowingly accept a political contribution that the person knows
to have been made or authorized in violation of Subsection (a) or
(b). A candidate, officeholder, or political committee that
receives a political contribution made in violation of Subsection
(a) or (b) shall return the contribution to the individual making
the contribution not later than the 10th day after the date on which
the person determines the contribution has been made in violation
of Subsection (a) or (b).
(d) A person may not knowingly aid or abet the making of a
political contribution in violation of Subsection (a) or (b).
(e) A person who violates this section commits an offense.
An offense under this subsection is a felony of the third degree.
Sec. 253.204. RECEIPT OF CONTRIBUTION INTENDED FOR ANOTHER.
For purposes of Section 253.203, a political contribution is
considered to be a contribution to a candidate, officeholder, or
political committee if the person making the contribution in any
way indicates to the person receiving the contribution that the
contribution is intended for the candidate, officeholder, or
committee. A person that receives a political contribution to which
this section applies shall:
(1) report the contribution under Chapter 254 as if
the person were a general-purpose committee;
(2) notify in writing the candidate, officeholder, or
political committee for whom the contribution is intended of the
amount of the contribution, the date it was made, and the name and
address of the person making the contribution; and
(3) not later than the 14th business day after the date
on which the person receives the contribution, deliver the
contribution to the candidate, officeholder, or political
committee for whom the contribution is intended.
Sec. 253.205. CONTRIBUTIONS BY PARTNERSHIPS, PARTNERS, AND
LIMITED LIABILITY COMPANIES. (a) A general or limited partnership
may not knowingly make or authorize political contributions to
which this subchapter applies that in the aggregate exceed $100,000
in an election cycle.
(b) A political contribution by a general or limited
partnership shall be attributed to the partnership and, as follows,
to each partner for purposes of the aggregate limit prescribed by
Section 253.203:
(1) in direct proportion to the partner's share of the
partnership profits, according to instructions provided by the
partnership to the candidate, officeholder, or political
committee; or
(2) by agreement of the partners, but only if:
(A) only a partner to whom the contribution is
attributed has the partner's profits reduced or losses increased;
and
(B) a partner's profits are reduced or losses are
increased in proportion to the amount of the contribution
attributed to the partner.
(c) No portion of a political contribution may be made from
the profits of a partner that is a corporation to which Subchapter D
applies.
(d) A political contribution by a limited liability company
that elects to be treated as a partnership by the Internal Revenue
Service, or that does not elect to be treated as a partnership or
corporation, is considered a contribution subject to Subsections
(a) and (b).
(e) A political contribution by a limited liability company
that elects to be treated as a corporation by the Internal Revenue
Service is considered a contribution by a corporation to which
Subchapter D applies.
Sec. 253.206. CERTAIN DIRECT CAMPAIGN EXPENDITURES
CONSIDERED CONTRIBUTION TO CANDIDATE. For purposes of Section
253.203, a direct campaign expenditure is considered to be a
campaign contribution to a candidate if it is made with the
cooperation or prior consent of, in consultation with, or at the
suggestion of:
(1) the candidate;
(2) a specific-purpose committee for supporting the
candidate or opposing the candidate's opponent; or
(3) a person acting with the candidate's knowledge and
consent.
Sec. 253.207. REVIEW OF CONTRIBUTIONS BY COMMISSION. Not
later than March 1 of each odd-numbered year, the commission shall:
(1) conduct a comprehensive computer review of the
commission's records of political contributions made by
individuals during the preceding election cycle to determine if any
individual exceeded the limit prescribed by Section 253.203; and
(2) make the results of the review available to the
public.
SECTION 3. Section 254.034, Election Code, is amended by
adding Subsection (f) to read as follows:
(f) This section applies to a political contribution
covered by Subchapter G, Chapter 253, except as provided by Section
253.203.
SECTION 4. Subchapter G, Chapter 253, Election Code, as
added by this Act, applies only to a political contribution or
direct campaign expenditure made on or after September 1, 2009. A
political contribution or direct campaign expenditure made before
September 1, 2009, is governed by the law in effect at the time the
contribution or expenditure was made and is not aggregated with
political contributions or direct campaign expenditures made on or
after that date.
SECTION 5. This Act takes effect September 1, 2009.