83R3049 EES-D
By: Bonnen of Brazoria H.B. No. 2737
A BILL TO BE ENTITLED
AN ACT
relating to ethics of public servants, including the functions and
duties of the Texas Ethics Commission; the regulation of political
contributions, political advertising, lobbying, and conduct of
public servants; and the reporting of political contributions and
expenditures and personal financial information; providing civil
and criminal penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. NOTIFICATION PROCEDURES OF TEXAS ETHICS COMMISSION
SECTION 1.01. Subchapter A, Chapter 571, Government Code,
is amended by adding Section 571.033 to read as follows:
Sec. 571.033. NOTIFICATION PROCEDURES. The commission
shall adopt rules prescribing how the commission will notify any
person or provide any notice required by this subtitle, Chapter
305, or Title 15, Election Code.
ARTICLE 2. INQUIRY PROCEDURES AND HEARINGS AND ENFORCEMENT
ACTIVITIES OF TEXAS ETHICS COMMISSION
SECTION 2.01. Section 571.002(2), Government Code, is
amended to read as follows:
(2) "Complainant" means an individual who files an
inquiry [a sworn complaint] with the commission.
SECTION 2.02. Section 571.027(a), Government Code, is
amended to read as follows:
(a) A member of the commission may not participate in a
commission proceeding relating to any of the following actions if
the member is the subject of the action:
(1) a formal investigation by the commission;
(2) an inquiry [a sworn complaint] filed with the
commission; or
(3) a motion adopted by vote of at least six members of
the commission.
SECTION 2.03. Sections 571.069(b) and (f), Government Code,
are amended to read as follows:
(b) The commission may by a vote of at least six commission
members undertake [initiate] a preliminary review as provided by
Section 571.124 or perform a complete audit of a statement or
report:
(1) if, before the 31st day after the date the
statement or report was originally due, the executive director does
not obtain from the person information that permits the executive
director to determine that the statement or report complies with
law;
(2) if a statement or report returned for resubmission
is not resubmitted within the time prescribed by Subsection (a); or
(3) on an affirmative vote of at least six commission
members that a statement or report resubmitted under Subsection
(a), together with any corrections or additional documentation,
does not, in the opinion of the commission, comply with the law
requiring the statement or report.
(f) This section may not be construed as limiting or
affecting the commission's authority to, on the filing of a motion
or receipt of an inquiry [a sworn complaint], review or investigate
the sufficiency of a statement or report.
SECTION 2.04. Section 571.073, Government Code, is amended
to read as follows:
Sec. 571.073. REPORT. On or before December 31 of each
even-numbered year, the commission shall report to the governor and
legislature. The report must include:
(1) each advisory opinion issued by the commission
under Subchapter D in the preceding two years;
(2) a summary of commission activities in the
preceding two years, including:
(A) the number of inquiries [sworn complaints]
filed with the commission;
(B) the number of inquiries [sworn complaints]
dismissed for noncompliance with statutory form requirements;
(C) the number of inquiries [sworn complaints]
dismissed for lack of jurisdiction;
(D) the number of inquiries [sworn complaints]
dismissed after a finding of no credible evidence of a violation;
(E) the number of inquiries [sworn complaints]
dismissed after a finding of a lack of sufficient evidence to
determine whether a violation within the jurisdiction of the
commission has occurred;
(F) the number of inquiries [sworn complaints]
resolved by the commission through an agreed decision [order];
(G) the number of inquiries [sworn complaints] in
which the commission issued a decision [an order] finding a
violation and the resulting penalties, if any; and
(H) the number and amount of civil penalties
imposed for failure to timely file a statement or report, the number
and amount of those civil penalties fully paid, the number and
amount of those civil penalties partially paid, and the number and
amount of those civil penalties no part of which has been paid, for
each of the following category of statements and reports, listed
separately:
(i) financial statements required to be
filed under Chapter 572;
(ii) political contribution and
expenditure reports required to be filed under Section 254.063,
254.093, 254.123, 254.153, or 254.157, Election Code;
(iii) political contribution and
expenditure reports required to be filed under Section 254.064(b),
254.124(b), or 254.154(b), Election Code;
(iv) political contribution and
expenditure reports required to be filed under Section 254.064(c),
254.124(c), or 254.154(c), Election Code;
(v) political contribution and expenditure
reports required to be filed under Section 254.038 or 254.039,
Election Code; and
(vi) political contribution and
expenditure reports required to be filed under Section 254.0391,
Election Code; and
(3) recommendations for any necessary statutory
changes.
SECTION 2.05. Section 571.076, Government Code, is amended
to read as follows:
Sec. 571.076. CONTRACT FOR ADMINISTRATION. The commission
may contract with persons to administer and carry out this chapter
and rules, standards, [and] orders, and decisions adopted under
this chapter, excluding any enforcement authority.
SECTION 2.06. The heading to Subchapter E, Chapter 571,
Government Code, is amended to read as follows:
SUBCHAPTER E. INQUIRY [COMPLAINT] PROCEDURES AND HEARINGS
SECTION 2.07. Section 571.121, Government Code, is amended
to read as follows:
Sec. 571.121. GENERAL POWERS. (a) The commission may:
(1) hold hearings, on its own motion adopted by an
affirmative vote of at least six commission members or on an inquiry
[a sworn complaint], and render decisions on inquiries [complaints]
or reports of violations as provided by this chapter; and
(2) agree to the settlement of issues.
(b) The commission may not consider an inquiry [a complaint]
or vote to investigate a matter outside the commission's
jurisdiction.
SECTION 2.08. Section 571.1211, Government Code, is amended
to read as follows:
Sec. 571.1211. DEFINITIONS. In this subchapter, "campaign
[:
[(1) "Campaign] communication" and "political
advertising" have the meanings assigned by Section 251.001,
Election Code.
[(2) "Category One violation" means a violation of a
law within jurisdiction of the commission as to which it is
generally not difficult to ascertain whether the violation occurred
or did not occur, including:
[(A) the failure by a person required to file a
statement or report to:
[(i) file the required statement or report
in a manner that complies with applicable requirements; or
[(ii) timely file the required statement or
report;
[(B) a violation of Section 255.001, Election
Code;
[(C) a misrepresentation in political
advertising or a campaign communication relating to the office held
by a person in violation of Section 255.006, Election Code;
[(D) a failure to include in any written
political advertising intended to be seen from a road the
right-of-way notice in violation of Section 255.007, Election Code;
or
[(E) a failure to timely respond to a written
notice under Section 571.123(b).
[(3) "Category Two violation" means a violation of a
law within the jurisdiction of the commission that is not a Category
One violation.]
SECTION 2.09. Subchapter E, Chapter 571, Government Code,
is amended by adding Section 571.1213 to read as follows:
Sec. 571.1213. CATEGORIZATION OF VIOLATIONS. (a) The
commission staff shall categorize, in ascending order of
seriousness, each violation of law alleged in an inquiry or on a
motion of the commission as:
(1) a technical, clerical, or de minimis violation;
(2) an administrative or filing violation; or
(3) a more serious violation.
(b) The commission shall adopt rules defining what
violations of law are included in each category of violation.
SECTION 2.10. Subchapter E, Chapter 571, Government Code,
is amended by adding Section 571.1214 to read as follows:
Sec. 571.1214. RESOLUTION OF VIOLATIONS. (a) The
commission staff and the commission shall resolve an inquiry or
motion in the form corresponding to the most serious category of
violation alleged in the inquiry or motion as provided in this
section.
(b) An inquiry or motion alleging a technical, clerical, or
de minimis violation must be resolved in a letter of
acknowledgment.
(c) An inquiry or motion alleging an administrative or
filing violation must be resolved in a notice of administrative or
filing error.
(d) An inquiry or motion alleging a more serious violation
must be resolved in a notice of violation.
SECTION 2.11. Section 571.122, Government Code, as amended
by Chapters 604 (H.B. 677) and 1166 (H.B. 3218), Acts of the 81st
Legislature, Regular Session, 2009, is amended to read as follows:
Sec. 571.122. FILING OF INQUIRY [COMPLAINT]; CONTENTS.
(a) An individual may file with the commission an inquiry [a sworn
complaint] alleging that a person subject to a law administered and
enforced by the commission has violated a rule adopted by or a law
administered and enforced by the commission. An inquiry [A sworn
complaint] must be filed on a form prescribed by the
commission. The commission shall make the inquiry [complaint]
form available on the Internet. The form prescribed by the
commission must require the complainant to provide the following
information for both the complainant and the respondent:
(1) the person's name;
(2) the person's telephone number;
(3) the person's electronic mail address, if known;
and
(4) the physical address of the person's home or
business.
(b) An inquiry [A complaint] filed under this section must
be in writing and under oath and must set forth in simple, concise,
and direct statements:
(1) the name of the complainant;
(2) the street or mailing address of the complainant;
(3) the name of each respondent;
(4) the position or title of each respondent;
(5) the nature of the alleged violation, including if
possible the specific rule or provision of law alleged to have been
violated;
(6) a statement of the facts constituting the alleged
violation and the dates on which or period of time in which the
alleged violation occurred; and
(7) all documents or other material available to the
complainant that are relevant to the allegation, a list of all
documents or other material within the knowledge of the complainant
and available to the complainant that are relevant to the
allegation but that are not in the possession of the complainant,
including the location of the documents, if known, and a list of all
documents or other material within the knowledge of the complainant
that are unavailable to the complainant and that are relevant to the
inquiry [complaint], including the location of the documents, if
known.
(b-1) An individual must be a resident of this state to be
eligible to file an inquiry [a sworn complaint] with the
commission. A copy of one of the following documents must be
attached to the inquiry [complaint]:
(1) the complainant's driver's license or personal
identification certificate issued under Chapter 521,
Transportation Code, or commercial driver's license issued under
Chapter 522, Transportation Code; or
(2) a utility bill, bank statement, government check,
paycheck, or other government document that:
(A) shows the name and address of the
complainant; and
(B) is dated not more than 30 days before the date
on which the inquiry [complaint] is filed.
(b-2) [(b-1)] To be eligible to file an inquiry [a sworn
complaint] with the commission, an individual must be a resident of
this state or must own real property in this state. A copy of one
of the following documents must be attached to the inquiry
[complaint]:
(1) the complainant's driver's license or personal
identification certificate issued under Chapter 521,
Transportation Code, or commercial driver's license issued under
Chapter 522, Transportation Code;
(2) a utility bill, bank statement, government check,
paycheck, or other government document that:
(A) shows the name and address of the
complainant; and
(B) is dated not more than 30 days before the date
on which the inquiry [complaint] is filed; or
(3) a property tax bill, notice of appraised value, or
other government document that:
(A) shows the name of the complainant;
(B) shows the address of real property in this
state; and
(C) identifies the complainant as the owner of
the real property.
(c) The inquiry [complaint] must be accompanied by an
affidavit stating that the information contained in the inquiry
[complaint] is either correct or that the complainant has good
reason to believe and does believe that the violation occurred. If
the inquiry [complaint] is based on information and belief, the
inquiry [complaint] shall state the source and basis of the
information and belief. The complainant may swear to the facts by
oath before a notary public or other authorized official.
(d) The inquiry [complaint] must state on its face an
allegation that, if true, constitutes a violation of a rule adopted
by or a law administered and enforced by the commission.
(e) It is not a valid basis of an inquiry [a complaint] to
allege that a report required under Chapter 254, Election Code,
contains the improper name or address of a person from whom a
political contribution was received if the name or address in the
report is the same as the name or address that appears on the check
for the political contribution.
SECTION 2.12. Section 571.1221, Government Code, is amended
to read as follows:
Sec. 571.1221. DISMISSAL OF INQUIRY [COMPLAINT] FILED AT
DIRECTION OR URGING OF NONRESIDENT. At any stage of a proceeding
under this subchapter, the commission shall dismiss the inquiry
[complaint] if the commission determines that the inquiry
[complaint] was filed at the direction or urging of a person who is
not a resident of this state.
SECTION 2.13. Section 571.1222, Government Code, is amended
to read as follows:
Sec. 571.1222. DISMISSAL OF INQUIRY [COMPLAINT]
CHALLENGING CERTAIN INFORMATION IN POLITICAL REPORT. At any stage
of a proceeding under this subchapter, the commission shall dismiss
an inquiry [a complaint] to the extent the inquiry [complaint]
alleges that a report required under Chapter 254, Election Code,
contains the improper name or address of a person from whom a
political contribution was received if the name or address in the
report is the same as the name or address that appears on the check
for the political contribution.
SECTION 2.14. Section 571.123, Government Code, is amended
to read as follows:
Sec. 571.123. PROCESSING OF INQUIRY [COMPLAINT]. (a) The
commission shall determine whether an inquiry [a sworn complaint]
filed with the commission complies with the form requirements of
Section 571.122.
(a-1) [(b)] After an inquiry [a complaint] is filed, the
commission shall immediately attempt to contact and notify the
respondent of the inquiry [complaint by telephone or electronic
mail].
(b) Not later than the fifth business day after the date an
inquiry [a complaint] is filed, the commission shall notify [send
written notice to] the complainant and the respondent as to [. The
written notice to the complainant and the respondent must]:
(1) [state] whether the inquiry [complaint] complies
with the form requirements of Section 571.122; and
(2) if the respondent is a candidate or officeholder,
[state] the procedure by which the respondent may designate an
agent with whom commission staff may discuss the inquiry
[complaint; and
[(3) if applicable, include the information required
by Section 571.124(e)].
(c) If the commission determines that the inquiry
[complaint] does not comply with the form requirements, the
commission shall return [send] the inquiry [complaint] to the
complainant with [the written notice,] a statement explaining how
the inquiry [complaint] fails to comply[,] and a copy of the rules
for filing inquiries [sworn complaints]. The commission shall
provide [send] a copy of the rejected inquiry [complaint] to the
respondent with [the written notice and] the statement explaining
how the inquiry [complaint] fails to comply. The complainant may
resubmit the inquiry [complaint] not later than the 21st day after
the date the complainant is notified [notice] under Subsection (b)
[is mailed]. If the commission determines that the inquiry
[complaint] is not resubmitted within the 21-day period, the
commission shall:
(1) dismiss the inquiry [complaint]; and
(2) not later than the fifth business day after the
date of the dismissal, notify [send written notice to] the
complainant and the respondent of the dismissal and the grounds for
dismissal.
(d) If the commission determines that an inquiry [a
complaint] is resubmitted under Subsection (c) within the 21-day
period but is not in proper form, the commission shall return the
inquiry to the complainant as provided in [send the notice required
under] Subsection (c), and the complainant may resubmit the inquiry
[complaint] under that subsection.
(e) If the commission determines that an inquiry [a
complaint] returned to the complainant under Subsection (c) or (d)
is resubmitted within the 21-day period and that the inquiry
[complaint] complies with the form requirements, the commission
shall notify the complainant and respondent [send the written
notice] under Subsection (b).
SECTION 2.15. Section 571.1231(b), Government Code, is
amended to read as follows:
(b) A respondent to an inquiry [a complaint] filed against
the respondent may by writing submitted to the commission designate
an agent with whom the commission staff may communicate regarding
the inquiry [complaint].
SECTION 2.16. Section 571.124, Government Code, is amended
to read as follows:
Sec. 571.124. PRELIMINARY REVIEW: INITIATION. (a) The
commission staff shall promptly conduct a preliminary review on
receipt of a written inquiry [complaint] that is in compliance with
the form requirements of Section 571.122.
(b) On a motion adopted by an affirmative vote of at least
six commission members, the commission staff, without an inquiry [a
sworn complaint], may undertake [initiate] a preliminary review of
the matter that is the subject of the motion.
(c) The executive director shall determine in writing
whether the commission has jurisdiction over the violation of law
alleged in an inquiry [a sworn complaint] processed under Section
571.123.
(e) If the executive director determines that the
commission has jurisdiction, the notification [notice] under
Section 571.123(b) must include:
(1) a statement that the commission has jurisdiction
over the violation of law alleged in the inquiry [complaint];
(2) a statement of whether the inquiry [complaint]
will be processed as a technical, clerical, or de minimis
violation, an administrative or filing violation, or a more serious
violation [Category One violation or a Category Two violation,
subject to reconsideration as provided for by Section 571.1212];
(3) the date by which the respondent is required to
respond to the notification [notice];
(4) a copy of the inquiry [complaint] and the rules of
procedure of the commission;
(5) a statement of the rights of the respondent;
(6) a statement inviting the respondent to provide to
the commission any information relevant to the inquiry [complaint];
and
(7) a statement that a failure to timely respond to the
notification [notice] will be treated as a separate violation.
(f) If the executive director determines that the
commission does not have jurisdiction over the violation alleged in
the inquiry [complaint], the executive director shall:
(1) dismiss the inquiry [complaint]; and
(2) not later than the fifth business day after the
date of the dismissal, notify [send to] the complainant and the
respondent [written notice] of the dismissal and the grounds for
the dismissal.
SECTION 2.17. Sections 571.1241(a) and (c), Government
Code, are amended to read as follows:
(a) If the executive director determines that the
commission does not have jurisdiction over the violation alleged in
the inquiry [complaint], the complainant may request that the
commission review the determination. A request for review under
this section must be filed not later than the 30th day after the
date the complainant receives the executive director's
determination.
(c) Not later than the fifth business day after the date of
the commission's determination under this section, the commission
shall notify [send written notice to] the complainant and the
respondent as to [stating] whether the commission has jurisdiction
over the violation alleged in the inquiry [complaint]. If the
commission determines that the commission has jurisdiction, the
notification [notice] must include the items listed in Section
571.124(e).
SECTION 2.18. Section 571.1242, Government Code, is amended
to read as follows:
Sec. 571.1242. PRELIMINARY REVIEW: RESPONSE BY RESPONDENT.
(a) If the alleged violation is a technical, clerical, or de
minimis [Category One] violation:
(1) the respondent must respond to the notification
[notice] required by Section 571.123(b) not later than the 10th
business day after the date the respondent is notified [receives
the notice]; and
(2) if the matter is not resolved by agreement between
the commission and the respondent before the 30th business day
after the date the respondent is notified [receives the notice]
under Section 571.123(b), the commission shall set the matter for a
preliminary review hearing [to be held at the next commission
meeting for which notice has not yet been posted].
(b) If the alleged violation is an administrative or filing
violation or a more serious [a Category Two] violation:
(1) the respondent must respond to the notification
[notice] required by Section 571.123(b) not later than the 25th
business day after the date the respondent is notified [receives
the notice] under Section 571.123(b); and
(2) if the matter is not resolved by agreement between
the commission and the respondent before the 75th business day
after the date the respondent is notified [receives the notice]
under Section 571.123(b), the commission shall set the matter for a
preliminary review hearing [to be held at the next commission
meeting for which notice has not yet been posted].
(c) A respondent's failure to timely respond as required by
Subsection (a)(1) or (b)(1) is a [Category One] violation.
(d) The response required to the notification under Section
571.123(b) [by Subsection (a) or (b)] must include any challenge
the respondent seeks to raise to the commission's exercise of
jurisdiction. In addition, the respondent may:
(1) acknowledge the occurrence or commission of a
violation;
(2) deny the allegations contained in the inquiry
[complaint] and provide evidence supporting the denial; or
(3) agree to enter into a letter of acknowledgment [an
assurance of voluntary compliance] or other agreed decision
[order], which may include an agreement to immediately cease and
desist.
[(e) If the commission sets the matter for a preliminary
review hearing, the commission shall promptly send to the
complainant and the respondent written notice of the date, time,
and place of the preliminary review hearing.]
SECTION 2.19. Subchapter E, Chapter 571, Government Code,
is amended by adding Section 571.12421 to read as follows:
Sec. 571.12421. PRELIMINARY REVIEW: PROCEDURE. (a) The
commission shall adopt procedures by rule for the conduct of:
(1) a preliminary review of an inquiry or motion that
alleges a technical, clerical, or de minimis violation;
(2) a preliminary review of an inquiry or motion that
alleges an administrative or filing violation; and
(3) a preliminary review of an inquiry or motion that
alleges a more serious violation.
(b) If an inquiry or motion alleges violations of different
categories, the commission staff shall conduct a preliminary review
of the inquiry or motion according to the procedure for the most
serious category of violation alleged in the inquiry or motion.
(c) If, in the course of conducting a preliminary review,
the commission staff determines that the violation alleged in the
inquiry or motion was initially categorized incorrectly, the
commission staff shall continue conducting the preliminary review
according to the procedure for the correct category of violation.
(d) If an inquiry or motion alleges more than one violation,
the commission staff may conduct a single preliminary review of the
alleged violations or conduct a separate preliminary review for
each violation.
SECTION 2.20. Subchapter E, Chapter 571, Government Code,
is amended by adding Section 571.12431 to read as follows:
Sec. 571.12431. PRELIMINARY REVIEW: RESOLUTION. (a) After
conducting a preliminary review of an inquiry or motion, the
commission staff shall propose a resolution of the inquiry or
motion to the respondent in the form corresponding to the category
of violation alleged in the inquiry or motion or, if the inquiry or
motion alleges multiple violations, in the form corresponding to
the most serious category of violation.
(b) Except as provided by other law or commission rule, if
the respondent accepts the resolution, the commission staff shall
submit to the commission for approval the letter of acknowledgment,
notice of administrative or filing error, or notice of violation in
which the resolution was proposed to the respondent.
(c) If the respondent rejects the resolution, the
commission shall set the inquiry or motion for a preliminary review
hearing.
SECTION 2.21. Section 571.1244, Government Code, is amended
to read as follows:
Sec. 571.1244. PRELIMINARY REVIEW AND PRELIMINARY REVIEW
HEARING PROCEDURES. (a) The commission shall adopt procedures for
the conduct of preliminary reviews and preliminary review hearings.
The procedures must include:
(1) a reasonable time for responding to questions
submitted by the commission and commission staff and subpoenas
issued by the commission; and
(2) the tolling or extension of otherwise applicable
deadlines where:
(A) the commission issues a subpoena and the
commission's meeting schedule makes it impossible both to provide a
reasonable time for response and to comply with the otherwise
applicable deadlines; or
(B) the commission determines that, despite
commission staff's diligence and the reasonable cooperation of the
respondent, a matter is too complex to resolve within the otherwise
applicable deadlines without compromising either the commission
staff's investigation or the rights of the respondent.
(b) The commission by rule shall adopt procedures for the
commission's review of a letter of acknowledgment, a notice of
administrative or filing error, or a notice of violation submitted
to the commission under Section 571.12431(b) or 571.126(f).
(c) The commission by rule shall adopt procedures for the
disposition of an inquiry or motion if the respondent does not
respond to a resolution of the inquiry or motion proposed to the
respondent under Section 571.12431 or 571.126.
SECTION 2.22. Section 571.125, Government Code, is amended
to read as follows:
Sec. 571.125. PRELIMINARY REVIEW HEARING: PROCEDURE. (a)
A panel of two members of the [The] commission shall conduct a
preliminary review hearing if:
(1) following the preliminary review, the [commission
and the] respondent does not [cannot] agree to the resolution of the
inquiry or motion proposed by the commission staff [disposition of
the complaint or motion]; or
(2) the respondent in writing requests a hearing.
(b) The commission shall notify [provide written notice to]
the complainant, if any, and the respondent of the date, time, and
place the panel [commission] will conduct the preliminary review
hearing.
(c) At or after the time the commission notifies the
complainant, if any, and the respondent [provides notice] of a
preliminary review hearing, the commission may submit to the
complainant and the respondent written questions and require those
questions to be answered under oath within a reasonable time.
(d) During a preliminary review hearing, the panel
[commission]:
(1) may consider all submitted evidence related to the
inquiry [complaint] or to the subject matter of a motion under
Section 571.124(b);
(2) may review any documents or material related to
the inquiry [complaint] or to the motion; and
(3) shall determine whether there is credible evidence
that provides cause for the panel [commission] to conclude that a
violation within the jurisdiction of the commission has occurred.
(e) During a preliminary review hearing, the respondent may
appear before the panel [commission] with the assistance of
counsel, if desired by the respondent, and present any relevant
evidence, including a written statement.
SECTION 2.23. Subchapter E, Chapter 571, Government Code,
is amended by adding Section 571.1251 to read as follows:
Sec. 571.1251. SELECTION OF PANEL TO CONDUCT PRELIMINARY
REVIEW HEARING. The commission shall adopt rules for the selection
of members of the commission to serve on panels to conduct
preliminary review hearings. The rules shall ensure that:
(1) a panel is composed of two members of the
commission; and
(2) each member of the panel is a member of a different
political party.
SECTION 2.24. Section 571.126, Government Code, is amended
to read as follows:
Sec. 571.126. PRELIMINARY REVIEW HEARING: RESOLUTION. (a)
Except as provided in Subsection (e), as [As] soon as practicable
after the completion of a preliminary review hearing, the panel
[commission] by vote shall issue a decision stating:
(1) whether there is credible evidence for the panel
[commission] to determine that a violation within the jurisdiction
of the commission has occurred and whether the violation is a
technical, clerical, or de minimis violation, an administrative or
filing violation, or a more serious violation; or
(2) that there is insufficient evidence for the panel
[commission] to determine whether a violation within the
jurisdiction of the commission has occurred.
(b) If the panel [commission] determines that there is
credible evidence for the panel [commission] to determine that a
violation within the jurisdiction of the commission has occurred,
the panel [commission] shall prepare a resolution of the inquiry or
motion to propose to the respondent [resolve and settle the
complaint or motion] to the extent possible. If the panel
[commission] successfully prepares a resolution [resolves and
settles the complaint or motion], not later than the fifth business
day after the date the panel prepares the resolution [of the final
resolution of the complaint or motion], the commission shall
provide [send to] the complainant, if any, and the respondent a copy
of the decision stating the panel's [commission's] determination
and the panel's proposed resolution of the inquiry or motion in the
appropriate form [written notice of the resolution and the terms of
the resolution]. If the panel [commission] is unsuccessful in
preparing a resolution or the respondent rejects the resolution
[resolving and settling the complaint or motion], the panel
[commission] shall:
(1) order a formal hearing to be held in accordance
with Sections 571.127 [571.129] through 571.132; and
(2) not later than the fifth business day after, as
applicable, the date the panel determines that there is credible
evidence to determine that a violation has occurred or the date the
respondent rejects a resolution prepared by the panel, provide [of
the decision, send to] the complainant, if any, and the respondent
with:
(A) a copy of the decision;
(B) [written] notice of the date, time, and place
of the formal hearing;
(C) a statement of the nature of the alleged
violation;
(D) a description of the evidence of the alleged
violation;
(E) a copy of the inquiry [complaint] or motion;
(F) a copy of the commission's rules of
procedure; and
(G) a statement of the rights of the respondent.
(c) If the panel [commission] determines that there is
credible evidence for the panel [commission] to determine that a
violation within the jurisdiction of the commission has not
occurred[, the commission shall]:
(1) the panel shall dismiss the inquiry [complaint] or
motion; and
(2) the commission shall, not later than the fifth
business day after the date of the dismissal, provide [send to] the
complainant, if any, and the respondent with a copy of the decision
stating the panel's [commission's] determination and [written]
notice of the dismissal and the grounds for dismissal.
(d) If the panel [commission] determines that there is
insufficient credible evidence for the panel [commission] to
determine that a violation within the jurisdiction of the
commission has occurred, the panel [commission] may dismiss the
inquiry [complaint] or motion or promptly order [conduct] a formal
hearing to be held under Sections 571.127 [571.129] through
571.132. Not later than the fifth business day after the date of
the panel's [commission's] determination under this subsection, the
commission shall provide [send to] the complainant, if any, and the
respondent with a copy of the decision stating the panel's
[commission's] determination and [written] notice of the grounds
for the determination.
(e) If, because of a tie vote, the panel cannot issue a
decision under Subsection (a), the panel shall order a formal
hearing to be held under Sections 571.127 through 571.132. Not
later than the fifth business day after the date of the vote, the
commission shall notify the complainant, if any, and the respondent
of the date, time, and place of the hearing.
(f) Except as provided by other law or commission rule, if
the respondent accepts the resolution in Subsection (b), the panel
shall submit to the commission for approval the letter of
acknowledgment, notice of administrative or filing error, or notice
of violation in which the resolution was proposed to the
respondent.
SECTION 2.25. Subchapter E, Chapter 571, Government Code,
is amended by adding Section 571.127 to read as follows:
Sec. 571.127. FORMAL HEARING: CONDUCT. The commission may
conduct a formal hearing under this subchapter or may delegate to
the State Office of Administrative Hearings the responsibility of
conducting a formal hearing under this subchapter.
SECTION 2.26. Sections 571.132(a) and (c), Government Code,
are amended to read as follows:
(a) Not later than the 30th business day after the date the
State Office of Administrative Hearings issues a proposal for
decision, the commission shall convene a meeting and by motion
shall issue:
(1) a final decision stating the resolution of the
formal hearing in the form corresponding to the category of
violation alleged in the inquiry or motion that was the subject of
the hearing; and
(2) a written report stating in detail the
commission's findings of fact, conclusions of law, and
recommendation of criminal referral or imposition of a civil
penalty, if any.
(c) Not later than the fifth business day after the date the
commission issues the final decision and written report, the
commission shall:
(1) provide [send] a copy of the decision and report to
the complainant, if any, and to the respondent; and
(2) make a copy of the decision and report available to
the public during reasonable business hours.
SECTION 2.27. Section 571.133, Government Code, is amended
to read as follows:
Sec. 571.133. APPEAL OF FINAL DECISION. (a) A respondent
who has exhausted all administrative remedies under this subchapter
and who is aggrieved by a final decision of the commission may seek
judicial review of the decision by pursuing an appeal.
(b) To appeal a final decision of the commission, the
respondent or the respondent's agent may file a petition in a
district court in Travis County or in the county in which the
respondent resides.
(c) [(b)] The petition must be filed not later than the 30th
business day after the date the respondent received the decision.
(d) [(c)] Not later than the 30th day after the date on
which the petition is filed, the respondent may request that the
appeal be transferred to a district court in Travis County or in the
county in which the respondent resides, as appropriate. The court
in which the appeal is originally filed shall transfer the appeal to
a district court in the other county on receipt of the request.
(e) Judicial review under this section shall be conducted in
the manner provided for judicial review of a contested case under
Chapter 2001, Government Code, and is governed by the substantial
evidence rule.
[(d) An appeal brought under this section is not limited to
questions of law, and the substantial evidence rule does not apply.
The action shall be determined by trial de novo. The reviewing
court shall try all issues of fact and law in the manner applicable
to other civil suits in this state but may not admit in evidence the
fact of prior action by the commission or the nature of that action,
except to the limited extent necessary to show compliance with
statutory provisions that vest jurisdiction in the court. A party
is entitled, on demand, to a jury determination of any issue of fact
on which a jury determination is available in other civil suits in
this state.]
SECTION 2.28. Section 571.134, Government Code, is amended
to read as follows:
Sec. 571.134. DELAY OF REFERRAL. If an alleged violation
involves an election in which the alleged violator is a candidate, a
candidate's campaign treasurer, or the campaign treasurer of a
political committee supporting or opposing a candidate and the
inquiry [complaint] is filed within 60 days before the date of the
election, the commission shall delay referral until:
(1) the day after election day;
(2) the day after runoff election day if an ensuing
runoff involving the alleged violator is held; or
(3) the day after general election day if the election
involved in the violation is a primary election and the alleged
violator is involved in the succeeding general election.
SECTION 2.29. Section 571.135(b), Government Code, is
amended to read as follows:
(b) The materials must include:
(1) a description of:
(A) the commission's responsibilities;
(B) the types of conduct that constitute a
violation of a law within the jurisdiction of the commission;
(C) the types of sanctions the commission may
impose;
(D) the commission's policies and procedures
relating to inquiry [complaint] investigation and resolution; and
(E) the duties of a person filing an inquiry [a
complaint] with the commission; and
(2) a diagram showing the basic steps in the
commission's procedures relating to inquiry [complaint]
investigation and resolution.
SECTION 2.30. Section 571.1351, Government Code, is amended
to read as follows:
Sec. 571.1351. STATUS OF INQUIRY [COMPLAINT]. (a) The
commission shall keep an information file about each inquiry [sworn
or other complaint] filed with the commission. The file must
include:
(1) the name of the person who filed the inquiry
[complaint];
(2) the date the inquiry [complaint] is received by
the commission;
(3) the subject matter of the inquiry [complaint];
(4) the name of each person contacted in relation to
the inquiry [complaint];
(5) a summary of the results of the review or
investigation of the inquiry [complaint]; and
(6) an explanation of the reason the file was closed,
if the commission closed the file without taking action other than
to investigate the inquiry [complaint].
(b) The commission shall provide to the person filing the
inquiry [complaint] and to each person who is a subject of the
inquiry [complaint] a copy of the commission's policies and
procedures relating to inquiry [complaint] investigation and
resolution.
(c) In addition to the notice required by Sections 571.123
through 571.132, the commission, at least quarterly until final
disposition of an inquiry [a complaint], shall notify the person
who filed the inquiry [complaint] and each person who is a subject
of the inquiry [complaint], if any, of the status of the inquiry
[sworn or other complaint].
SECTION 2.31. Section 571.136, Government Code, is amended
to read as follows:
Sec. 571.136. EXTENSION OF DEADLINE. The commission may,
on its own motion or on the reasonable request of a respondent,
extend any deadline for action relating to an inquiry [a sworn
complaint], motion, preliminary review hearing, or formal hearing.
SECTION 2.32. Section 571.137(a), Government Code, is
amended to read as follows:
(a) In connection with a formal hearing, the commission, as
authorized by this chapter, may subpoena and examine witnesses and
documents that directly relate to an inquiry [a sworn complaint].
SECTION 2.33. Section 571.139, Government Code, is amended
to read as follows:
Sec. 571.139. APPLICABILITY OF OTHER ACTS. (a) Except as
provided by Section 571.140(b), Chapter 552 does not apply to
documents or any additional evidence relating to the processing,
preliminary review, preliminary review hearing, or resolution of an
inquiry [a sworn complaint] or motion.
(b) Chapter 551 does not apply to the processing,
preliminary review, preliminary review hearing, or resolution of an
inquiry [a sworn complaint] or motion, but does apply to a formal
hearing held under Sections 571.127 [571.129] through 571.131.
(c) Subchapters C through H, Chapter 2001, apply only to a
formal hearing under this subchapter, the resolution of a formal
hearing, and the appeal of a final decision [order] of the
commission, and only to the extent consistent with this chapter.
SECTION 2.34. Sections 571.140(a), (b), and (b-1),
Government Code, are amended to read as follows:
(a) Except as provided by Subsection (b) or (b-1) or by
Section 571.171, proceedings at a preliminary review hearing
performed by a panel of members of the commission, an inquiry [a
sworn complaint], and documents and any additional evidence
relating to the processing, preliminary review, preliminary review
hearing, or resolution of an inquiry [a sworn complaint] or motion
are confidential and may not be disclosed unless entered into the
record of a formal hearing or a judicial proceeding, except that a
document or statement that was previously public information
remains public information.
(b) A notice of administrative or filing error or a notice
of violation approved [An order issued] by the commission under
Section 571.12431(b) or 571.126(f) after the completion of a
preliminary review or hearing [determining that a violation other
than a technical or de minimis violation has occurred] is not
confidential. A letter of acknowledgment approved by the
commission under Section 571.12431(b) or 571.126(f) after the
completion of a preliminary review or hearing is confidential.
(b-1) A commission employee may, for the purpose of
investigating an inquiry [a sworn complaint] or motion, disclose to
the complainant, the respondent, or a witness information that is
otherwise confidential and relates to the inquiry [sworn complaint]
if:
(1) the employee makes a good faith determination that
the disclosure is necessary to conduct the investigation;
(2) the employee's determination under Subdivision (1)
is objectively reasonable;
(3) the executive director authorizes the disclosure;
and
(4) the employee discloses only the information
necessary to conduct the investigation.
SECTION 2.35. Section 571.141, Government Code, is amended
to read as follows:
Sec. 571.141. AVAILABILITY OF NOTICES OF ADMINISTRATIVE OR
FILING ERROR AND NOTICES OF VIOLATION [COMMISSION ORDERS] ON
INTERNET. (a) As soon as practicable following a preliminary
review, preliminary review hearing, or formal hearing at which the
commission staff, a panel of members of the commission, or the
commission determines that a person has committed a violation
within the commission's jurisdiction, the commission shall make
available on the Internet:
(1) a copy of the notice of administrative or filing
error or notice of violation approved or issued by the commission
[commission's order stating the determination]; or
(2) a summary of the notice [commission's order].
(b) This section does not apply to a letter of
acknowledgment [determination of a violation that is technical or
de minimis].
SECTION 2.36. Section 571.142, Government Code, is amended
to read as follows:
Sec. 571.142. LIABILITY FOR RESPONDENT'S COSTS. (a) This
section applies only to an inquiry [a sworn complaint] if:
(1) the inquiry [complaint] was filed after the 30th
day before the date of an election;
(2) the respondent is a candidate in the election; and
(3) the inquiry [complaint] alleges an administrative
or filing [a] violation or a more serious violation [other than a
technical or clerical violation].
(b) If, in disposing of an inquiry [a sworn complaint] to
which this section applies, the commission determines that a
violation within the commission's jurisdiction has not occurred,
the complainant is liable for the respondent's reasonable and
necessary attorney's fees and other costs incurred in defending
against the inquiry [complaint].
(c) This section does not apply to an inquiry [a sworn
complaint] regarding a reporting omission required by law.
SECTION 2.37. Section 571.171(b), Government Code, is
amended to read as follows:
(b) On receipt of an inquiry [a sworn complaint], if the
executive director reasonably believes that the person who is the
subject of the inquiry [complaint] has violated Chapter 36 or 39,
Penal Code, the executive director may refer the matter to the
appropriate prosecuting attorney for criminal prosecution.
SECTION 2.38. Section 571.173, Government Code, is amended
to read as follows:
Sec. 571.173. CIVIL PENALTY FOR DELAY OR VIOLATION. (a)
The commission and the commission staff 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 decision
or for a violation of a law administered and enforced by the
commission.
(b) The commission shall adopt guidelines for the
commission and the commission staff to follow when imposing a civil
penalty under this section. The guidelines must direct the
commission or the commission staff to consider the factors
described by Section 571.177.
(c) The commission or the commission staff shall impose a
civil penalty on a respondent who accepts or is issued a notice of
administrative or filing error or a notice of violation under this
chapter.
(d) When imposing a civil penalty under Subsection (c), the
commission is not required to consider any penalties previously
proposed to the respondent at an earlier stage of review.
(e) The commission or the commission staff may not impose a
civil penalty on a respondent who accepts or is issued a letter of
acknowledgment under this chapter.
SECTION 2.39. Section 571.176, Government Code, is amended
to read as follows:
Sec. 571.176. CIVIL PENALTY FOR FRIVOLOUS OR BAD-FAITH
INQUIRY [COMPLAINT]. (a) The commission may impose a civil penalty
of not more than $10,000 for the filing of a frivolous or bad-faith
inquiry [complaint]. In this subsection, "frivolous inquiry
[complaint]" means an inquiry [a complaint] that is groundless and
brought in bad faith or is groundless and brought for the purpose of
harassment.
(b) In addition to other penalties, a person who files a
frivolous inquiry [complaint] is civilly liable to the respondent
in an amount equal to the greater of $10,000 or the amount of actual
damages incurred by the respondent, including court costs and
attorney fees.
(c) A person may file an inquiry [a sworn complaint] with
the commission, in accordance with Section 571.122, alleging that
an inquiry [a complaint] relating to that person filed with the
commission is frivolous or brought in bad faith. An inquiry [A
complaint] may be filed under this subsection without regard to
whether the inquiry [complaint] alleged to be frivolous or brought
in bad faith is pending before the commission or has been resolved.
The commission shall act on an inquiry [a complaint] made under this
subsection as provided by Subchapter E.
SECTION 2.40. Section 571.177, Government Code, is amended
to read as follows:
Sec. 571.177. FACTORS CONSIDERED FOR ASSESSMENT OF
SANCTION. The commission or the commission staff shall consider
the following factors in assessing a sanction:
(1) the seriousness of the violation, including the
nature, circumstances, consequences, extent, and gravity of the
violation;
(2) the history and extent of previous violations;
(3) the demonstrated good faith of the violator,
including actions taken to rectify the consequences of the
violation;
(4) the penalty necessary to deter future violations;
and
(5) any other matters that justice may require.
SECTION 2.41. (a) Not later than December 1, 2013, the
Texas Ethics Commission shall adopt any rules necessary to
implement the changes in law made by this article.
(b) The changes in law made by this article apply only to an
inquiry filed with the Texas Ethics Commission under Section
571.122, Government Code, or a motion adopted by the commission
under Section 571.124(b), Government Code, on or after December 1,
2013. A sworn complaint filed with the Texas Ethics Commission
under Section 571.122, Government Code, or a motion adopted by the
commission under Section 571.124(b), Government Code, before that
date is governed by the law in effect on the date the complaint is
filed or the motion is adopted, and the former law is continued in
effect for that purpose.
ARTICLE 3. PERSONAL FINANCIAL STATEMENTS
SECTION 3.01. Section 571.0671, Government Code, is amended
to read as follows:
Sec. 571.0671. REQUIREMENTS FOR ELECTRONIC FILING
SOFTWARE. (a) Computer software provided or approved by the
commission for use under Section 254.036(b), Election Code, or
Section 302.013, [or] 305.0064, or 572.0291 must:
(1) use a standardized format for the entry of names,
addresses, and zip codes;
(2) provide for secure and encoded transmission of
data from the computer of a person filing a report to the computers
used by the commission;
(3) be capable of being used by a person with basic
computing skills;
(4) provide confirmation to a person filing a report
that the report was properly received; and
(5) permit a person using a computer to prepare a
report or to retrieve information from a report to import
information to the report from a variety of computer software
applications that meet commission specifications for a standard
file format or export information from the report to a variety of
computer software applications that meet commission specifications
for a standard file format without the need to reenter information.
(b) Before determining the specifications for computer
software developed, purchased, or licensed for use under Section
254.036, Election Code, or Section 302.013, [or] 305.0064, or
572.0291, the commission shall conduct at least one public hearing
to discuss the specifications. For at least 10 days following the
hearing, the commission shall accept public comments concerning the
software specifications.
(c) The commission may provide software for use under
Section 254.036(b), Election Code, or Section 302.013, [or]
305.0064, or 572.0291 by making the software available on the
Internet. If the commission makes the software available on the
Internet, the commission is not required to provide the software on
computer diskettes, CD-ROMs, or other storage media without charge
to persons required to file reports under that section, but may
charge a fee for providing the software on storage media. A fee
under this subsection may not exceed the cost to the commission of
providing the software.
SECTION 3.02. Subchapter B, Chapter 572, Government Code,
is amended by adding Section 572.0291 to read as follows:
Sec. 572.0291. ELECTRONIC FILING REQUIRED. A financial
statement filed with the commission must be filed by computer
diskette, modem, or other means of electronic transfer, using
computer software provided by the commission or computer software
that meets commission specifications for a standard file format.
SECTION 3.03. Subchapter B, Chapter 572, Government Code,
is amended by adding Section 572.0292 to read as follows:
Sec. 572.0292. PREPARATION OF FORMS. The commission shall
design forms that may be used for filing a financial statement with
an authority other than the commission.
SECTION 3.04. The heading to Section 572.030, Government
Code, is amended to read as follows:
Sec. 572.030. NOTIFICATION OF FILING REQUIREMENT
[PREPARATION AND MAILING OF FORMS].
SECTION 3.05. Sections 572.030(b) and (c), Government Code,
are amended to read as follows:
(b) The commission shall notify [mail to] each individual
required to file under this subchapter of [a notice that]:
(1) the requirement [states] that the individual [is
required to] file a financial statement under this subchapter;
(2) [identifies] the filing dates for the financial
statement as provided by Sections 572.026 and 572.027; and
(3) [describes] the manner in which the individual may
electronically file the financial statement and access
instructions for filing financial statements on [obtain the
financial statement forms and instructions from] the commission's
Internet website[;
[(4) states that on request of the individual, the
commission will mail to the individual a copy of the financial
statement forms and instructions; and
[(5) states, if applicable, the fee for mailing the
forms and instructions and the manner in which the individual may
pay the fee].
(c) The notification [notice] required by Subsection (b)
must be provided [mailed]:
(1) before the 30th day before the deadline for filing
the financial statement under Section 572.026(a) or (c), except as
otherwise provided by this subsection;
(2) not later than the 15th day after the applicable
deadline for filing an application for a place on the ballot or a
declaration of write-in candidacy for candidates required to file
under Section 572.027(a), (b), or (c);
(3) not later than the seventh day after the date of
appointment for individuals required to file under Section
572.026(b), or if the legislature is in session, sooner if
possible; and
(4) not later than the fifth day after the date the
certificate of nomination is filed for candidates required to file
under Section 572.027(d) [574.027(d)].
SECTION 3.06. Section 572.031(b), Government Code, is
amended to read as follows:
(b) If the commission determines that an individual has
failed to file the statement in compliance with this subchapter,
the commission shall notify [send a written statement of the
determination to] the appropriate prosecuting attorney for
[attorneys of] the state of the determination.
SECTION 3.07. 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 notify [immediately mail a notice of the
determination to] the individual responsible for filing the
statement and [to] the appropriate prosecuting attorney for the
state of the determination.
(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 3.08. Section 145.004(d), Local Government Code, is
amended to read as follows:
(d) The timeliness of the filing is governed by Section
572.029, Government Code. In addition, a financial statement is
timely filed if it is properly addressed and placed in the United
States Post Office or in the hands of a common or contract carrier
not later than the last day for filing the financial statement. The
post office cancellation mark or the receipt mark of a common or
contract carrier is prima facie evidence of the date the statement
was deposited with the post office or carrier. The individual
filing the statement may show by competent evidence that the actual
date of posting was different from that shown by the mark.
SECTION 3.09. Section 159.004(b), Local Government Code, is
amended to read as follows:
(b) The timeliness of the filing is governed by Section
572.029, Government Code. In addition, a financial statement is
timely filed if it is properly addressed and placed in the United
States Post Office or in the hands of a common or contract carrier
not later than the last day for filing the financial statement. The
post office cancellation mark or the receipt mark of a common or
contract carrier is prima facie evidence of the date the statement
was deposited with the post office or carrier. The individual
filing the statement may show by competent evidence that the actual
date of posting was different from that shown by the mark.
SECTION 3.10. Section 159.053(b), Local Government Code, is
amended to read as follows:
(b) The timeliness of the filing is governed by Section
572.029, Government Code. In addition, a financial statement is
timely filed if it is properly addressed and placed in the United
States Post Office or in the hands of a common or contract carrier
not later than the last day for filing the financial statement. The
post office cancellation mark or the receipt mark of a common or
contract carrier is prima facie evidence of the date the statement
was deposited with the post office or carrier. The individual
filing the statement may show by competent evidence that the actual
date of posting was different from that shown by the mark.
SECTION 3.11. As soon as practicable after the effective
date of this Act, the Texas Ethics Commission shall develop or
approve the computer software that a person may use to
electronically file a financial statement under Chapter 572,
Government Code, as provided by the changes in law made by this
article.
ARTICLE 4. CAMPAIGN FINANCE
SECTION 4.01. The heading to Chapter 252, Election Code, is
amended to read as follows:
CHAPTER 252. CAMPAIGN TREASURER, LEGISLATIVE CAUCUS CHAIR, AND
PRINCIPAL POLITICAL COMMITTEE
SECTION 4.02. Chapter 252, Election Code, is amended by
designating Sections 252.001 through 252.015 as Subchapter A and
adding a subchapter heading to read as follows:
SUBCHAPTER A. CAMPAIGN TREASURER
SECTION 4.03. Section 252.001, Election Code, is amended to
read as follows:
Sec. 252.001. APPOINTMENT OF CAMPAIGN TREASURER REQUIRED.
Except as provided in Subchapter C, each [Each] candidate and each
political committee shall appoint a campaign treasurer as provided
by this subchapter [chapter].
SECTION 4.04. Chapter 252, Election Code, is amended by
adding Subchapters B and C to read as follows:
SUBCHAPTER B. LEGISLATIVE CAUCUS CHAIR
Sec. 252.051. APPOINTMENT OF LEGISLATIVE CAUCUS CHAIR
REQUIRED. Each legislative caucus, as defined by Section 253.0341,
shall appoint a caucus chair as required by this subchapter.
Sec. 252.052. CONTENTS OF APPOINTMENT; AUTHORITY WITH WHOM
FILED. (a) A legislative caucus chair appointment must be in
writing and must include:
(1) the caucus's full name;
(2) the caucus chair's name;
(3) the caucus's mailing address;
(4) the caucus's telephone number; and
(5) the name of the person making the appointment.
(b) A legislative caucus must file its caucus chair
appointment with the commission.
(c) A legislative caucus must notify the commission in
writing of any change in the caucus's mailing address not later than
the 10th day after the date on which the change occurs.
SUBCHAPTER C. PRINCIPAL POLITICAL COMMITTEE
Sec. 252.101. DESIGNATION OF PRINCIPAL POLITICAL
COMMITTEE. (a) A candidate required to file a campaign treasurer
appointment with the commission or an officeholder of an office for
which a candidate is required to file a campaign treasurer
appointment with the commission may designate a specific-purpose
committee as the principal political committee for the candidate or
officeholder with the responsibility of reporting any activity of
the candidate or officeholder for which the candidate or
officeholder would otherwise be required to file a report under
Chapter 254.
(b) A candidate who designates a principal political
committee under this subchapter is not required to appoint a
campaign treasurer under Subchapter A.
(c) A designation of a principal political committee must be
in writing and filed with the commission.
Sec. 252.102. LIMITATION ON DESIGNATION OF AND AS PRINCIPAL
POLITICAL COMMITTEE. (a) A candidate or officeholder may
designate only one specific-purpose committee as the candidate's or
officeholder's principal political committee.
(b) A specific-purpose committee may be designated as the
principal political committee for only one candidate or
officeholder.
SECTION 4.05. Sections 254.0311(a), (c), (d), and (g),
Election Code, are amended to read as follows:
(a) A legislative caucus's caucus chair shall file a report
of contributions and expenditures as required by this section.
(c) If no reportable activity occurs during a reporting
period, the legislative caucus chair shall indicate that fact in
the report.
(d) A legislative caucus's caucus chair shall file with the
commission two reports for each year.
(g) A legislative caucus's caucus chair shall maintain a
record of all reportable activity under this section and shall
preserve the record for at least two years beginning on the filing
deadline for the report containing the information in the record.
SECTION 4.06. Sections 254.034(a) and (b), Election Code,
are amended to read as follows:
(a) A determination to accept or refuse a political
contribution that is received by a candidate, officeholder, or
political committee shall be made not later than the date the
candidate, officeholder, or political committee files a report
under this chapter for the reporting period during which the
contribution is received or the deadline for filing a report for
[end of] the reporting period during which the contribution is
received, whichever occurs first.
(b) If the determination to accept or refuse a political
contribution is not made before the time required by Subsection
(a), for purposes of this chapter, the contribution is considered
to have been accepted on the date the candidate, officeholder, or
political committee files a report under this chapter for the
reporting period during which the contribution is received or the
deadline for filing a report for the reporting period during which
the contribution is received, whichever occurs first [last day of
that reporting period].
SECTION 4.07. Section 254.036, Election Code, is amended by
amending Subsections (c) and (c-1) and adding Subsections (d) and
(d-1) to read as follows:
(c) A candidate, officeholder, or political committee that
is required to file reports with the commission may file reports
that comply with Subsection (a) if:
(1) the candidate, officeholder, or campaign
treasurer of the committee files with the commission an affidavit
stating that the candidate, officeholder, or committee, an agent of
the candidate, officeholder, or committee, or a person with whom
the candidate, officeholder, or committee contracts does not use
computer equipment to keep the current records of political
contributions, political expenditures, or persons making political
contributions to the candidate, officeholder, or committee; and
(2) the candidate, officeholder, or committee has
never [does not], in a calendar year, accepted [accept] political
contributions that in the aggregate exceeded [exceed] $20,000 or
made [make] political expenditures that in the aggregate exceeded
[exceed] $20,000.
(c-1) An affidavit under Subsection (c) must be filed with
each report filed under Subsection (a). The affidavit must include
a statement that the candidate, officeholder, or political
committee understands that the candidate, officeholder, or
committee shall file reports as required by Subsection (b) if:
(1) the candidate, officeholder, or committee, a
consultant of the candidate, officeholder, or committee, or a
person with whom the candidate, officeholder, or committee
contracts uses computer equipment for a purpose described by
Subsection (c); or
(2) the candidate, officeholder, or committee ever
exceeds $20,000 in political contributions or political
expenditures in a calendar year.
(d) A legislative caucus may file reports that comply with
Subsection (a) if:
(1) the legislative caucus chair files with the
commission an affidavit stating that the caucus, an agent of the
caucus, or a person with whom the caucus contracts does not use
computer equipment to keep the current records of contributions,
expenditures, or persons making contributions to the caucus; and
(2) the caucus has never, in a calendar year, accepted
contributions that in the aggregate exceeded $20,000 or made
expenditures that in the aggregate exceeded $20,000.
(d-1) An affidavit under Subsection (d) must be filed with
each report filed under Subsection (a). The affidavit must include
a statement that the legislative caucus understands that the caucus
shall file reports as required by Subsection (b) if:
(1) the caucus, a consultant of the caucus, or a person
with whom the caucus contracts uses computer equipment for a
purpose described by Subsection (d); or
(2) the caucus ever exceeds $20,000 in contributions
or expenditures in a calendar year.
SECTION 4.08. Section 254.0405(c), Election Code, is
amended to read as follows:
(c) A semiannual report that is amended on or after the
eighth day after the original report was filed is considered to have
been filed on the date on which the original report was filed if:
(1) the amendment is made before any inquiry
[complaint] is filed with regard to the subject of the amendment;
and
(2) the original report was made in good faith and
without an intent to mislead or to misrepresent the information
contained in the report.
SECTION 4.09. Sections 254.042(a) and (b), Election Code,
are amended to read as follows:
(a) The commission shall determine from any available
evidence whether a report required to be filed with the commission
under this chapter is late. On making that determination, the
commission shall immediately notify [mail a notice of the
determination to] the person required to file the report of the
determination.
(b) If a report other than a report under Section
254.064(c), 254.124(c), or 254.154(c) or the first report under
Section 254.063 or 254.123 that is required to be filed following
the primary or general election is determined to be late, the person
required to file the report is liable to the state for a civil
penalty of $500. If a report under Section 254.064(c), 254.124(c),
or 254.154(c) or the first report under Section 254.063 or 254.153
that is required to be filed following the primary or general
election is determined to be late, the person required to file the
report is liable to the state for a civil penalty of $500 for the
first day the report is late and $100 for each day thereafter that
the report is late. If a report is more than 30 days late, the
commission shall issue a warning of liability [by registered mail]
to the person required to file the report. If the penalty is not
paid before the 10th day after the date on which the warning is
received, the person is liable for a civil penalty in an amount
determined by commission rule, but not to exceed $10,000.
SECTION 4.10. Subchapter C, Chapter 254, Election Code, is
amended by adding Section 254.067 to read as follows:
Sec. 254.067. REPORT NOT REQUIRED. If during any reporting
period prescribed by this subchapter a candidate designates a
specific-purpose committee as the candidate's principal political
committee as provided by Section 252.101, the candidate is not
required to file a report covering that period if the candidate's
principal political committee reports all of the activity that
would otherwise be required to be included in the report,
including:
(1) the amount of any political contribution,
including any loan, made by the candidate to the principal
political committee; and
(2) the amount of any political expenditure made by
the candidate from personal funds and whether the candidate intends
to seek reimbursement of the expenditure from the principal
political committee.
SECTION 4.11. Section 254.095, Election Code, is amended to
read as follows:
Sec. 254.095. REPORT NOT REQUIRED. (a) If at the end of any
reporting period prescribed by this subchapter an officeholder who
is required to file a report with an authority other than the
commission has not accepted political contributions that in the
aggregate exceed $500 or made political expenditures that in the
aggregate exceed $500, the officeholder is not required to file a
report covering that period.
(b) If during any reporting period prescribed by this
subchapter an officeholder designates a specific-purpose committee
as the officeholder's principal political committee as provided by
Section 252.101, the officeholder is not required to file a report
covering that period if the officeholder's principal political
committee reports all of the activity that would otherwise be
required to be included in the report, including:
(1) the amount of any political contribution,
including any loan, made by the officeholder to the principal
political committee; and
(2) the amount of any political expenditure made by
the officeholder from personal funds and whether the officeholder
intends to seek reimbursement of the expenditure from the principal
political committee.
SECTION 4.12. Section 254.157(b), Election Code, is amended
to read as follows:
(b) A monthly report covers the period beginning the first
calendar [26th] day of each month and continuing through the last
calendar [25th] day of that [the following] month[, except that the
period covered by the first report begins January 1 and continues
through January 25].
SECTION 4.13. Section 254.158, Election Code, is amended to
read as follows:
Sec. 254.158. EXCEPTION TO MONTHLY REPORTING SCHEDULE. If
the campaign treasurer appointment of a general-purpose committee
filing monthly reports is filed after January 1 of the year in which
monthly reports are filed, the period covered by the first monthly
report begins the day the appointment is filed and continues
through the last calendar [25th] day of the month in which the
appointment is filed unless the appointment is filed the last
calendar [25th or a succeeding] day of the month. In that case, the
period continues through the last calendar [25th] day of the month
following the month in which the appointment is filed.
SECTION 4.14. The changes in law made by this article apply
only to a report required to be filed under Chapter 254, Election
Code, on or after the effective date of this Act. A report required
to be filed under Chapter 254, Election Code, before the effective
date of this Act is governed by the law in effect on the date the
report is due, and the former law is continued in effect for that
purpose.
SECTION 4.15. (a) Not later than September 15, 2013, each
legislative caucus in existence on September 1, 2013, shall appoint
a caucus chair and file a caucus chair appointment with the Texas
Ethics Commission as required by Subchapter B, Chapter 252,
Election Code, as added by this Act. Notwithstanding Section
254.0311, Election Code, as amended by this Act:
(1) not later than October 1, 2013, a legislative
caucus shall file a report under Section 254.0311, Election Code,
as that section existed before amendment by this Act, that covers
the period beginning July 1, 2013, or the day the caucus is
organized, as applicable, and continuing through September 15,
2013; and
(2) not later than January 15, 2014, a legislative
caucus chair appointed under this subsection shall file a report
under Section 254.0311, Election Code, as amended by this Act, that
covers the period beginning September 15, 2013, and continuing
through December 31, 2013.
(b) A legislative caucus chair appointed under Subsection
(a) of this section is not responsible for:
(1) reporting caucus activity that occurs before
September 15, 2013; or
(2) maintaining records of caucus activity that occurs
before September 15, 2013.
ARTICLE 5. LOBBYING
SECTION 5.01. Section 305.002, Government Code, is amended
by adding Subdivision (2-a) to read as follows:
(2-a) "Communicates directly with a member of the
legislative or executive branch to influence legislation or
administrative action" or any variation of the phrase includes
establishing goodwill with the member for the purpose of later
communicating with the member to influence legislation or
administrative action.
SECTION 5.02. Section 305.0021(b), Government Code, is
amended to read as follows:
(b) For purposes of Section 36.02 or 36.10, Penal Code, a
person described by Subsection (a)(2)(A) is not considered to have
made an expenditure [the amount of a joint expenditure that is
attributed to a person who is not a registrant is not an expenditure
made and reported] in accordance with this chapter.
SECTION 5.03. Section 305.003, Government Code, is amended
by adding Subsections (b-3) and (b-4) to read as follows:
(b-3) Subsection (a)(2) does not require a person to
register if the person spends not more than 26 hours for which the
person is compensated or reimbursed during the calendar quarter
engaging in activity to communicate directly with a member of the
legislative or executive branch to influence legislation or
administrative action.
(b-4) If a person spends more than eight hours in a single
day engaging in activity to communicate directly with a member of
the legislative or executive branch to influence legislation or
administrative action, the person is only considered to have
engaged in the activity for eight hours during that day for purposes
of Subsection (b-3).
SECTION 5.04. Section 305.0062(a), Government Code, is
amended to read as follows:
(a) The report filed under Section 305.006 must also contain
the total expenditures described by Section 305.006(b) that are
directly attributable to members of the legislative or executive
branch. The expenditures must be stated in only one of the
following categories:
(1) state senators;
(2) state representatives;
(3) elected or appointed state officers, other than
those described by Subdivision (1) or (2);
(4) legislative agency employees;
(5) executive agency employees;
(6) the immediate family of a member of the
legislative or executive branch;
(7) guests, when invited by an individual described by
Subdivision (1), (2), (3), (4), or (5); [and]
(8) events to which all legislators are invited;
(9) events to which a legislative committee and the
staff of the legislative committee are invited;
(10) state senators and the staff of state senators;
(11) state representatives and the staff of state
representatives; and
(12) all invited legislative staff.
SECTION 5.05. Section 305.0064, Government Code, is amended
by adding Subsection (c) to read as follows:
(c) The rules adopted by the commission under Subsection (b)
may not allow a registrant to file a paper registration or report if
the registrant has ever used the electronic filing system under
Subsection (a).
SECTION 5.06. Section 305.027, Government Code, is amended
by adding Subsection (f) to read as follows:
(f) In this section, "legislative advertising" does not
include material that is printed or published by a member of the
legislative branch and that is only disseminated by a member of the
legislature on the floor of either house of the legislature.
SECTION 5.07. Section 305.028(g), Government Code, is
amended to read as follows:
(g) The commission may receive inquiries [complaints]
regarding a violation of this section. If the commission
determines a violation of this section has occurred, the
commission, after notice and hearing:
(1) shall impose a civil penalty in an amount not to
exceed $2,000; and
(2) may rescind the person's registration and may
prohibit the person from registering with the commission for a
period not to exceed two years from the date of the rescission of
the person's registration.
SECTION 5.08. Sections 305.033(a) and (c), Government Code,
are amended to read as follows:
(a) The commission shall determine from any available
evidence whether a registration or report required to be filed with
the commission under this chapter is late. A registration filed
without the fee required by Section 305.005 is considered to be
late. On making a determination that a required registration or
report is late, the commission shall immediately notify [mail a
notice of the determination to] the person responsible for the
filing[, to the commission,] and [to] the appropriate attorney for
the state of the determination.
(c) If a registration or report is more than 30 days late,
the commission shall issue a warning of liability [by registered
mail] to the person responsible for the filing. If the penalty is
not paid before the 10th day after the date on which the warning is
received, the person is liable for a penalty in an amount determined
by commission rule, but not to exceed $10,000.
SECTION 5.09. Section 305.034(b), Government Code, is
amended to read as follows:
(b) Whenever the commission determines that a person has
failed to file any required form, statement, or report as required
by this chapter, the commission shall notify the person involved
[send a written statement] of this finding [to the person involved.
Notice to the person involved must be sent by certified mail].
SECTION 5.10. The amendment by this article to Section
305.0021(b), Government Code, is intended to clarify rather than
change existing law.
SECTION 5.11. Section 305.003, Government Code, as amended
by this article, applies only to a registration or registration
renewal required to be filed under Chapter 305, Government Code, on
or after the effective date of this Act. A registration or
registration renewal required to be filed under Chapter 305,
Government Code, before the effective date of this Act is governed
by the law in effect on the date the registration or registration
renewal is due, and the former law is continued in effect for that
purpose.
SECTION 5.12. Section 305.0062, Government Code, as amended
by this article, applies only to a report required to be filed under
Section 305.006, Government Code, on or after the effective date of
this Act. A report required to be filed under Section 305.006,
Government Code, before the effective date of this Act is governed
by the law in effect on the date the report is due, and the former
law is continued in effect for that purpose.
ARTICLE 6. REPEALER
SECTION 6.01. (a) The following provisions are repealed:
(1) Section 254.036(j), Election Code;
(2) Sections 254.0401(b) and (f), Election Code;
(3) Section 571.032, Government Code;
(4) Section 571.1212, Government Code;
(5) Section 572.029(c), Government Code;
(6) Sections 572.030(a), (d), and (e), Government
Code; and
(7) Section 572.034(c), Government Code.
(b) The repeal of Section 572.034(c), Government Code,
applies only to an offense committed on or after the effective date
of this Act. An offense committed before the effective date of this
Act is governed by the law in effect on the date the offense was
committed, and the former law is continued in effect for that
purpose. For purposes of this subsection, an offense was committed
before the effective date of this Act if any element of the offense
occurred before that date.
ARTICLE 7. EFFECTIVE DATE
SECTION 7.01. This Act takes effect September 1, 2013.