83R8944 CAE-F
By: Villalba H.B. No. 3258
A BILL TO BE ENTITLED
AN ACT
relating to political contributions and expenditures; providing
civil and criminal penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 251.001, Election Code, is amended by
amending Subdivisions (8), (12), and (16) and adding Subdivisions
(21), (22), (23), (24), and (25) to read as follows:
(8) "Independent [Direct campaign] expenditure" means
a campaign expenditure by a person for a communication expressly
advocating the election or defeat of a clearly identified candidate
that is not made in cooperation or consultation, or at the request
or suggestion of, a candidate, a candidate's campaign committee,
the agent of a candidate or candidate's campaign committee, a
political party committee, or the agent of a political party. An
independent expenditure [that] does not constitute a campaign
contribution by the person making the expenditure.
(12) "Political committee" means any committee, club,
association, or other combination of two or more persons, the major
purpose of which is to support or oppose one or more ballot
measures, candidates, or political parties through [a group of
persons that has as a principal purpose accepting] political
contributions or [making] political expenditures. A major purpose
includes:
(A) a committee, club, association, or other
combination of two or more persons designating itself as a
political organization in its filings with the Internal Revenue
Service or specifically identifying support or opposition to one or
more ballot measures, candidates, or political parties as its
primary objective in its organizing document, fund-raising
appeals, or public statements; or
(B) the making of a political expenditure to
support or oppose ballot measures, candidates, and political
parties constituting a majority of its total spending during any
election cycle.
(16) "Political advertising" means a communication
expressly advocating the election or defeat of a clearly identified
candidate or expressly advocating support for or opposition to a
measure by means of a broadcast, cable, or satellite communication,
newspaper, magazine, outdoor advertising facility, electronic
communication, mailing, telephone bank to the general public, text
message, or any other form of general public political advertising.
Political advertising does not include:
(A) Internet communications, except for
communications placed for a fee on another person's website; or
(B) electronic communications or text messages
of an identical or substantially similar nature sent to fewer than
25 recipients within any 30-day period [supporting or opposing a
candidate for nomination or election to a public office or office of
a political party, a political party, a public officer, or a measure
that:
[(A) in return for consideration, is published in
a newspaper, magazine, or other periodical or is broadcast by radio
or television; or
[(B) appears:
[(i) in a pamphlet, circular, flier,
billboard or other sign, bumper sticker, or similar form of written
communication; or
[(ii) on an Internet website].
(21) "Clearly identified candidate" means the
candidate's name, nickname, photograph, or drawing appears, or the
identity of the candidate is otherwise apparent through an
unambiguous reference, including a reference to the candidate's
status as a candidate.
(22) "Coordinated" means in cooperation or
consultation, or at the request or suggestion of, a candidate, a
candidate's campaign committee, the agent of the candidate or
candidate's campaign committee, a political party committee, or the
agent of a political party committee.
(23) "Coordinated expenditure" means an expenditure
by a person for a communication expressly advocating the election
or defeat of a clearly identified candidate that is coordinated
with a candidate, a candidate's campaign committee, the agent of
the candidate or candidate's campaign committee, a political party
committee, or the agent of a political party committee.
(24) "Election cycle" means the two-year period
beginning January 1 of an odd-numbered year and ending on December
31 of the subsequent even-numbered year.
(25) "Express advocacy" means any communication that
in context can have no other reasonable meaning than to urge the
election or defeat of one or more clearly identified candidates or
to urge support for or opposition to a measure.
SECTION 2. Section 251.004(a), Election Code, is amended to
read as follows:
(a) Venue for a criminal offense prescribed by this title is
in the county of residence of the defendant, unless the defendant is
not a Texas resident, in which case venue is in Travis County. The
residence of a person other than an individual is the county in
which the defendant's principal place of business is located.
SECTION 3. Section 252.001, Election Code, is amended to
read as follows:
Sec. 252.001. APPOINTMENT OF CAMPAIGN TREASURER REQUIRED.
Each candidate and each political committee shall appoint a
campaign treasurer as provided by this chapter. An individual
shall file a campaign treasurer appointment not later than the 10th
day after the date the individual becomes a candidate. A political
committee shall file a campaign treasurer appointment not later
than the 10th day after the date the committee accepts campaign
contributions in excess of $500 or makes or authorizes campaign
expenditures in excess of $500. Notwithstanding this section, an
unregistered political committee shall file a campaign treasurer
appointment not later than 24 hours after making or authorizing a
campaign expenditure that requires the committee to file a special
report as required by Section 254.039.
SECTION 4. Sections 252.003(a) and (d), Election Code, are
amended to read as follows:
(a) In addition to the information required by Section
252.002, a campaign treasurer appointment by a general-purpose
committee must include:
(1) the full name, and any acronym of the name that
will be used in the name of the committee as provided by Subsection
(d), of each corporation, labor organization, association, limited
liability company, limited liability partnership, or partnership
[or other association or legal entity] that directly establishes,
administers, or controls the committee, if applicable, or the name
of each person who determines to whom the committee makes
contributions or the name of each person who determines for what
purposes the committee makes expenditures;
(2) the full name and address of each general-purpose
committee to whom the committee intends to make political
contributions; and
(3) the name of the committee and, if the name is an
acronym, the words the acronym represents.
(d) The name of a general-purpose committee must include the
name of each corporation, labor organization, association, limited
liability company, limited liability partnership, or partnership
[or other association or legal entity other than an individual]
that directly establishes, administers, or controls the committee.
The name of an entity that is required to be included in the name of
the committee may be a commonly recognized acronym by which the
entity is known.
SECTION 5. Section 253.031, Election Code, is amended by
amending Subsections (a) and (b) and adding Subsection (c-1) to
read as follows:
(a) Once a candidate has filed a campaign treasurer
appointment, the [A] candidate may not knowingly accept a campaign
contribution or make or authorize a campaign expenditure at a time
when a campaign treasurer appointment for the candidate is not in
effect.
(b) Once a [A] political committee has filed a campaign
treasurer appointment, the political committee may not knowingly
accept a political contribution [contributions totaling more than
$500] or make or authorize a political expenditure [expenditures
totaling more than $500] at a time when a campaign treasurer
appointment for the committee is not in effect.
(c-1) Subsection (c) does not apply to a general-purpose
committee that, after knowingly making or authorizing a political
contribution or political expenditure, files a special report in
accordance with Section 254.039.
SECTION 6. Section 253.037, Election Code, is amended by
adding Subsection (a-1) to read as follows:
(a-1) Subsection (a) does not apply to a general-purpose
committee that, after knowingly making or authorizing a political
contribution or political expenditure, files a special report in
accordance with Section 254.039.
SECTION 7. Section 253.091, Election Code, is amended to
read as follows:
Sec. 253.091. CORPORATIONS AND OTHER ENTITIES COVERED.
This subchapter applies only to corporations that are governed
under Title 2, Business Organizations Code, entities that can be
characterized as corporations organized under federal law or the
law of another state, and associations, limited liability
companies, limited liability partnerships, and partnerships
[organized under the Texas Business Corporation Act, the Texas
For-Profit Corporation Law, the Texas Non-Profit Corporation Act,
the Texas Nonprofit Corporation Law, federal law, or law of another
state or nation].
SECTION 8. Sections 253.100(a), (b), and (d), Election
Code, are amended to read as follows:
(a) A corporation, association, limited liability company,
limited liability partnership, or partnership [acting alone or with
one or more other corporations,] may make one or more political
expenditures to finance the establishment or administration of a
general-purpose committee. In addition to any other expenditure
that is considered permissible under this section, a corporation,
association, limited liability company, limited liability
partnership, or partnership may make an expenditure for the
maintenance and operation of a general-purpose committee that it
establishes or administers, including an expenditure for:
(1) office space maintenance and repairs;
(2) telephone and Internet services;
(3) office equipment;
(4) utilities;
(5) general office and meeting supplies;
(6) salaries for routine clerical, data entry, and
administrative assistance necessary for the proper administrative
operation of the committee;
(7) legal and accounting fees for the committee's
compliance with this title;
(8) routine administrative expenses incurred in
establishing and administering a general-purpose political
committee;
(9) management and supervision of the committee,
including expenses incurred in holding meetings of the committee's
governing body to interview candidates and make endorsements
relating to the committee's support;
(10) the recording of committee decisions;
(11) expenses incurred in hosting candidate forums in
which all candidates for a particular office in an election are
invited to participate on the same terms; or
(12) expenses incurred in preparing and delivering
committee contributions.
(b) A corporation, association, limited liability company,
limited liability partnership, or partnership may make political
expenditures to finance the solicitation of political
contributions to a general-purpose committee assisted under
Subsection (a) from its [the] stockholders, employees, or families
of stockholders or employees [of one or more corporations].
(d) A corporation, [or] labor organization, association,
limited liability company, limited liability partnership, or
partnership may not make expenditures under this section for:
(1) political consulting to support or oppose a
candidate;
(2) telephoning or telephone banks to communicate with
the public;
(3) brochures and direct mail supporting or opposing a
candidate;
(4) partisan voter registration and get-out-the-vote
drives;
(5) political fund-raising other than from its
stockholders or members, as applicable, or the families of its
stockholders or members;
(6) voter identification efforts, voter lists, or
voter databases that include persons other than its stockholders or
members, as applicable, or the families of its stockholders or
members;
(7) polling designed to support or oppose a candidate
other than of its stockholders or members, as applicable, or the
families of its stockholders or members; or
(8) recruiting candidates.
SECTION 9. Section 253.132(a), Election Code, is amended to
read as follows:
(a) A corporation or labor organization that knowingly
makes a campaign contribution to a political committee or an
independent [a direct campaign] expenditure in violation of
Subchapter D is liable for damages as provided by this section to
each political committee of opposing interest in the election in
connection with which the contribution or expenditure is made.
SECTION 10. Section 253.157(e)(1), Election Code, is
amended to read as follows:
(1) "Law firm" means a partnership, limited liability
partnership, limited liability company, professional limited
liability company, or professional corporation organized for the
practice of law.
SECTION 11. The heading to Section 253.171, Election Code,
is amended to read as follows:
Sec. 253.171. CONTRIBUTION FROM OR INDEPENDENT [DIRECT
CAMPAIGN] EXPENDITURE BY POLITICAL PARTY.
SECTION 12. Section 253.171(a), Election Code, is amended
to read as follows:
(a) Except as provided by Subsection (b), a political
contribution to or an independent [a direct campaign] expenditure
on behalf of a complying candidate that is made by the principal
political committee of the state executive committee or a county
executive committee of a political party is considered to be a
political expenditure by the candidate for purposes of the
expenditure limits prescribed by Section 253.168.
SECTION 13. Sections 254.031(a) and (a-1), Election Code,
are 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 cash on hand at the beginning of the
reporting period;
(2) for the reporting period, the total amount of all
receipts actually received by the candidate, officeholder, or
political committee, and the total amount of all receipts actually
received by the candidate, officeholder, or political committee in
the following categories:
(A) contributions from persons;
(B) for a candidate, officeholder, or
specific-purpose committee supporting a candidate or assisting an
officeholder, loans made by or guaranteed by the candidate or
officeholder;
(C) all other loans;
(D) rebates, refunds, and other offsets to
operating expenditures; and
(E) dividends, interest, and other forms of
receipts;
(3) the identification of each:
(A) individual who makes a contribution to the
candidate, officeholder, or political committee during the
reporting period, whose contributions have an aggregate amount or
value in excess of $50 within the reporting period, or in any lesser
amount if the candidate, officeholder, or political committee
elects, together with the date and amount of the contribution;
(B) person, other than an individual, who makes a
contribution to the candidate, officeholder, or political
committee during the reporting period, together with the date and
amount of any contribution;
(C) person who makes a loan to the candidate,
officeholder, or political committee during the reporting period,
together with the identification of any endorser or guarantor of a
loan, and the date and amount of value of the loan;
(D) person who provides a rebate, refund, or
other offset to operating expenditures to the candidate,
officeholder, or political committee in an aggregate amount or
value in excess of $50 within the reporting period, together with
the date and amount of the offset; and
(E) person who provides any dividend, interest,
or other receipt to the candidate, officeholder, or political
committee in an aggregate value or amount in excess of $50 within
the reporting period, together with the date and amount of the
receipt;
(4) for the reporting period, the total amount of all
disbursements actually made by the candidate, officeholder, or
political committee, and all disbursements actually made by the
candidate, officeholder, or political committee in the following
categories:
(A) expenditures made to meet the candidate's,
officeholder's, or political committee's operating expenses;
(B) for a candidate, officeholder, or
specific-purpose committee supporting a candidate or assisting an
officeholder, the repayment of loans made by or guaranteed by the
candidate or officeholder;
(C) repayment of all other loans;
(D) contribution refunds and other offsets to
contributions;
(E) contributions made by the candidate,
officeholder, or political committee;
(F) loans made by the candidate, officeholder, or
political committee;
(G) independent expenditures made by the
candidate, officeholder, or political committee; and
(H) any other disbursements;
(5) the name and address of each:
(A) person to whom a disbursement in an aggregate
amount or value in excess of $50 within the reporting period is made
by the candidate, officeholder, or political committee, together
with the date, amount, and purpose of the disbursement;
(B) person who receives any disbursement during
the reporting period in an aggregate amount or value in excess of
$50 in connection with an independent expenditure by the candidate,
officeholder, or political committee, together with the date,
amount, and purpose of the independent expenditure, and a statement
that indicates whether the independent expenditure is in support
of, or in opposition to, a candidate, as well as the name of and
office sought by the candidate;
(C) person who has received a loan from the
candidate, officeholder, or political committee during the
reporting period, together with the date and amount of the loan;
(D) person who receives a loan repayment from the
candidate, officeholder, or political committee during the
reporting period, together with the date and amount of the loan
repayment; and
(E) person who receives a contribution refund or
other offset to contributions from the candidate, officeholder, or
political committee in which the contribution was reported under
Subdivision (3)(A), together with the date and amount of the
offset;
(6) the amount and nature of outstanding debts and
obligations owed by or to a candidate, officeholder, or political
committee, the date incurred, and if the debts and obligations are
settled for less than the reported amount or value, a statement as
to the circumstances and conditions under which the debts or
obligations were settled and the consideration for that settlement;
(7) the amount of reported cash on hand at the end of
the reporting period, as calculated by adding the reported cash on
hand at the beginning of the reporting period with total receipts
and offsets to disbursements, less disbursements and offsets to
receipts during the reporting period; and
(8) the amount of funds and assets in the candidate's,
officeholder's, or political committee's bank depositories at the
end of the reporting period [political contributions from each
person that in the aggregate exceed $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 $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 $100 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 $50 or less accepted and the total
amount or a specific listing of the political expenditures of $100
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;
[(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;
[(9) any credit, interest, rebate, refund,
reimbursement, or return of a deposit fee resulting from the use of
a political contribution or an asset purchased with a political
contribution that is received during the reporting period and the
amount of which exceeds $100;
[(10) any proceeds of the sale of an asset purchased
with a political contribution that is received during the reporting
period and the amount of which exceeds $100;
[(11) any investment purchased with a political
contribution that is received during the reporting period and the
amount of which exceeds $100;
[(12) any other gain from a political contribution
that is received during the reporting period and the amount of which
exceeds $100; and
[(13) the full name and address of each person from
whom an amount described by Subdivision (9), (10), (11), or (12) is
received, the date the amount is received, and the purpose for which
the amount is received].
(a-1) A de minimis error in calculating or reporting a cash
balance or bank depository balance under Subsection (a)(1), (7), or
(8) [(a)(8)] is not a violation of this section.
SECTION 14. The heading to Section 254.034, Election Code,
is amended to read as follows:
Sec. 254.034. TIME OF RECEIVING [ACCEPTING] CONTRIBUTION.
SECTION 15. Section 254.034, Election Code, is amended by
adding Subsection (a-1) to read as follows:
(a-1) For any political contribution that is received and
accepted by a candidate, officeholder, or political committee, the
date the political contribution was received is the date the
contributor relinquished control of the contribution, if the date
is readily determinable. If the candidate, officeholder, or
political committee is unable to readily determine the date the
contributor relinquished control of the contribution, the date the
political contribution was received is the date the contribution is
actually received by the candidate, officeholder, or political
committee.
SECTION 16. The heading to Section 254.035, Election Code,
is amended to read as follows:
Sec. 254.035. TIME OF MAKING EXPENDITURE OR INCURRING DEBT
OR OBLIGATION.
SECTION 17. Section 254.035, Election Code, is amended by
amending Subsections (a) and (b) and adding Subsection (a-1) to
read as follows:
(a) For purposes of reporting under this chapter, a
political expenditure is not considered to have been made until the
candidate, officeholder, or political committee relinquishes
control of the funds [amount is readily determinable by the person
making the expenditure, except as provided by Subsection (b)].
(a-1) For purposes of reporting under this chapter, a debt
or obligation is not considered to be owed until the amount is
readily determinable by the person that owes the debt or
obligation.
(b) If the character of a debt or obligation [an
expenditure] is such that under normal business practice the amount
is not disclosed until receipt of a periodic bill, the debt or
obligation [expenditure] is not considered owed [made] until the
date the bill is received.
SECTION 18. Section 254.038(c), Election Code, is amended
to read as follows:
(c) A report under this section shall be filed
electronically, by telegram or telephonic facsimile machine, or by
hand, in the form required by Section 254.036. The commission must
receive a report under this section filed by telegram, telephonic
facsimile machine, or hand not later than 5 p.m. of the first
business day after the date the contribution is received
[accepted]. The commission must receive a report under this
section filed electronically not later than midnight of the first
business day after the date the contribution is received
[accepted]. A report under this section is not required to be
accompanied by the affidavit required under Section 254.036(h) or
to be submitted on a form prescribed by the commission. A report
under this section that complies with Section 254.036(a) must be
accompanied by an affidavit under Section 254.036(c)(1) unless the
candidate or committee has submitted an affidavit under Section
254.036(c)(1) with another report filed in connection with the
election for which a report is required under this section.
SECTION 19. The heading to Subchapter J, Chapter 254,
Election Code, is amended to read as follows:
SUBCHAPTER J. REPORTING BY CERTAIN PERSONS MAKING INDEPENDENT
[DIRECT CAMPAIGN] EXPENDITURES
SECTION 20. The heading to Section 254.261, Election Code,
is amended to read as follows:
Sec. 254.261. INDEPENDENT [DIRECT CAMPAIGN] EXPENDITURE
EXCEEDING $100.
SECTION 21. Section 254.261, Election Code, is amended by
amending Subsection (a) and adding Subsections (e) and (f) to read
as follows:
(a) A person [not acting in concert with another person] who
makes one or more independent [direct campaign] expenditures in an
election from the person's own property shall comply with this
chapter as if the person were the campaign treasurer of a
general-purpose committee that does not file monthly reports under
Section 254.155.
(e) When evaluating a political expenditure to determine
whether the expenditure constitutes an independent expenditure or a
coordinated expenditure, there is a rebuttable presumption that a
political expenditure for political advertising is a coordinated
expenditure if:
(1) the political expenditure is made by a person in
cooperation or consultation with, at the request, suggestion, or
direction of, or pursuant to a general or particular understanding
with:
(A) a candidate or political party committee; or
(B) a consultant or other agent acting on behalf
of a candidate or political party committee;
(2) the political expenditure is made by a person for
the production, dissemination, distribution, or publication, in
whole or in substantial part, of any political advertising prepared
by:
(A) a candidate or political party committee; or
(B) a consultant or other agency acting on behalf
of a candidate or political party committee;
(3) the political expenditure is made by a person
based on nonpublic information about a candidate's or political
party committee's plans, projects, or needs that has been provided
by:
(A) a candidate or political party committee; or
(B) a consultant or other agent acting on behalf
of a candidate or political party committee, with the intent that
the expenditure be made;
(4) the political expenditure is made by, or at the
direction or advice of, an individual or vendor who, in the same
election cycle, is providing services or has provided services to
the candidate benefiting from the expenditure or a state or local
political party committee in the state in the following capacities:
(A) development of strategic content of
political advertising and media strategy, including the selection
or purchasing of advertising slots;
(B) selection of audiences;
(C) polling;
(D) fund-raising;
(E) producing a public communication;
(F) identifying voters or developing voter
lists, mailing lists, or donor lists; or
(G) selecting personnel, contractors, or
subcontractors;
(5) the political expenditure is made by a person
based on nonpublic information about a candidate's campaign plans,
projects, or needs that was directly or indirectly provided by a
candidate or political party committee, or a consultant or other
agent acting on behalf of the candidate or political party
committee, to the person making the expenditure or the person's
agent, with an express or tacit understanding that the person is
considering making the expenditure; or
(6) the person making the political expenditure
provides nonpublic information to the candidate who benefits from
the expenditure or political party committee regarding the
contents, timing, intended audience, location, or frequency of
dissemination of the political advertising.
(f) A communication disseminated to the public in which a
candidate or officeholder is clearly identified only in the
candidate's or officeholder's capacity as the owner or operator of a
business is not a coordinated communication with respect to the
clearly identified candidate if:
(1) the medium, timing, content, and geographic
distribution of the communication are consistent with similar
communications made before the candidacy or consistent with
communications made by similar businesses; and
(2) the communication does not promote, support,
attack, or oppose the candidate or another candidate who seeks the
same office as the candidate.
SECTION 22. Section 254.262, Election Code, is amended to
read as follows:
Sec. 254.262. TRAVEL EXPENSE. An independent [A direct
campaign] expenditure consisting of personal travel expenses
incurred by a person may be made without complying with Section
254.261.
SECTION 23. Sections 252.0011 and 254.035(c) and (d),
Election Code, are repealed.
SECTION 24. (a) The changes in law made by this Act apply
only to a political contribution or political expenditure made on
or after September 1, 2013. A political contribution or political
expenditure made before September 1, 2013, is governed by the law in
effect immediately before that date, and the former law is
continued in effect for that purpose.
(b) Section 254.031, Election Code, as amended by this Act,
applies only to a report under Chapter 254, Election Code, that
covers a reporting period that begins on or after January 1, 2014. A
report under Chapter 254, Election Code, that covers a reporting
period that begins before January 1, 2014, is governed by Section
254.031, Election Code, as it existed before amendment by this Act,
and the former law is continued in effect for that purpose.
(c) The change in law made by this Act applies only to an
offense committed on or after September 1, 2013. For purposes of
this section, an offense is committed before September 1, 2013, if
any element of the offense occurs before that date.
(d) An offense committed before September 1, 2013, is
covered by the law in effect when the offense was committed, and the
former law is continued in effect for that purpose.
SECTION 25. This Act takes effect September 1, 2013.