Texas 2015 - 84th Regular

Texas Senate Bill SB1969 Compare Versions

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1	1	By: Huffman S.B. No. 1969
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to ethics of public servants, including the functions and
7	7	duties of the Texas Ethics Commission; the regulation of political
8	8	contributions, political advertising, lobbying, and conduct of
9	9	public servants; and the reporting of political contributions and
10	10	expenditures and personal financial information; providing civil
11	11	and criminal penalties.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	ARTICLE 1. GENERAL PROCEDURES OF TEXAS ETHICS COMMISSION
14	14	SECTION 1.01. Subchapter B, Chapter 571, Government Code,
15	15	is amended by adding Section 571.033 to read as follows:
16	16	Sec. 571.033. NOTIFICATION PROCEDURES. The commission
17	17	shall adopt rules prescribing how the commission will notify any
18	18	person or provide any notice required by this subtitle, Chapter
19	19	305, or Title 15, Election Code.
20	20	SECTION 1.02. Section 571.0671, Government Code, is amended
21	21	by adding Subsection (d) to read as follows:
22	22	(d) Electronic report data saved in a commission temporary
23	23	storage location for later retrieval and editing before the report
24	24	is filed is confidential and may not be disclosed. After the report
25	25	is filed, the information disclosed in the report is subject to the
26	26	law requiring the filing of the report.
27	27	ARTICLE 2. PERSONAL FINANCIAL STATEMENTS
28	28	SECTION 2.01. Section 571.0671, Government Code, is amended
29	29	to read as follows:
30	30	Sec. 571.0671. REQUIREMENTS FOR ELECTRONIC FILING
31	31	SOFTWARE. (a) Computer software provided or approved by the
32	32	commission for use under Section 254.036(b), Election Code, or
33	33	Section 302.013, [or] 305.0064, or 572.0291 must:
34	34	(1) use a standardized format for the entry of names,
35	35	addresses, and zip codes;
36	36	(2) provide for secure and encoded transmission of
37	37	data from the computer of a person filing a report to the computers
38	38	used by the commission;
39	39	(3) be capable of being used by a person with basic
40	40	computing skills;
41	41	(4) provide confirmation to a person filing a report
42	42	that the report was properly received; and
43	43	(5) permit a person using a computer to prepare a
44	44	report or to retrieve information from a report to import
45	45	information to the report from a variety of computer software
46	46	applications that meet commission specifications for a standard
47	47	file format or export information from the report to a variety of
48	48	computer software applications that meet commission specifications
49	49	for a standard file format without the need to reenter information.
50	50	(b) Before determining the specifications for computer
51	51	software developed, purchased, or licensed for use under Section
52	52	254.036, Election Code, or Section 302.013, [or] 305.0064, or
53	53	572.0291, the commission shall conduct at least one public hearing
54	54	to discuss the specifications. For at least 10 days following the
55	55	hearing, the commission shall accept public comments concerning the
56	56	software specifications.
57	57	(c) The commission may provide software for use under
58	58	Section 254.036(b), Election Code, or Section 302.013, [or]
59	59	305.0064, or 572.0291 by making the software available on the
60	60	Internet. If the commission makes the software available on the
61	61	Internet, the commission is not required to provide the software on
62	62	computer diskettes, CD-ROMs, or other storage media without charge
63	63	to persons required to file reports under that section, but may
64	64	charge a fee for providing the software on storage media. A fee
65	65	under this subsection may not exceed the cost to the commission of
66	66	providing the software.
67	67	SECTION 2.02. Subchapter B, Chapter 572, Government Code,
68	68	is amended by adding Section 572.0291 to read as follows:
69	69	Sec. 572.0291. ELECTRONIC FILING REQUIRED. A financial
70	70	statement filed with the commission must be filed by computer
71	71	diskette, modem, or other means of electronic transfer, using
72	72	computer software provided by the commission or computer software
73	73	that meets commission specifications for a standard file format.
74	74	SECTION 2.03. Subchapter B, Chapter 572, Government Code,
75	75	is amended by adding Section 572.0292 to read as follows:
76	76	Sec. 572.0292. PREPARATION OF FORMS. The commission shall
77	77	design forms that may be used for filing a financial statement with
78	78	an authority other than the commission.
79	79	SECTION 2.04. The heading to Section 572.030, Government
80	80	Code, is amended to read as follows:
81	81	Sec. 572.030. NOTIFICATION OF FILING REQUIREMENT
82	82	[PREPARATION AND MAILING OF FORMS].
83	83	SECTION 2.05. Subsections (b) and (c), Section 572.030,
84	84	Government Code, are amended to read as follows:
85	85	(b) The commission shall notify [mail to] each individual
86	86	required to file under this subchapter of [a notice that]:
87	87	(1) the requirement [states] that the individual [is
88	88	required to] file a financial statement under this subchapter;
89	89	(2) [identifies] the filing dates for the financial
90	90	statement as provided by Sections 572.026 and 572.027; and
91	91	(3) [describes] the manner in which the individual may
92	92	electronically file the financial statement and access
93	93	instructions for filing financial statements on [obtain the
94	94	financial statement forms and instructions from] the commission's
95	95	Internet website[;
96	96	[(4) states that on request of the individual, the
97	97	commission will mail to the individual a copy of the financial
98	98	statement forms and instructions; and
99	99	[(5) states, if applicable, the fee for mailing the
100	100	forms and instructions and the manner in which the individual may
101	101	pay the fee].
102	102	(c) The notification [notice] required by Subsection (b)
103	103	must be provided [mailed]:
104	104	(1) before the 30th day before the deadline for filing
105	105	the financial statement under Section 572.026(a) or (c), except as
106	106	otherwise provided by this subsection;
107	107	(2) not later than the 15th day after the applicable
108	108	deadline for filing an application for a place on the ballot or a
109	109	declaration of write-in candidacy for candidates required to file
110	110	under Section 572.027(a), (b), or (c);
111	111	(3) not later than the seventh day after the date of
112	112	appointment for individuals required to file under Section
113	113	572.026(b), or if the legislature is in session, sooner if
114	114	possible; and
115	115	(4) not later than the fifth day after the date the
116	116	certificate of nomination is filed for candidates required to file
117	117	under Section 572.027(d) [574.027(d)].
118	118	SECTION 2.06. Subsection (b), Section 572.031, Government
119	119	Code, is amended to read as follows:
120	120	(b) If the commission determines that an individual has
121	121	failed to file the statement in compliance with this subchapter,
122	122	the commission shall notify [send a written statement of the
123	123	determination to] the appropriate prosecuting attorney for
124	124	[attorneys of] the state of the determination.
125	125	SECTION 2.07. Section 572.032, Government Code, is amended
126	126	by amending Subsection (a-1) and adding Subsection (a-2) to read as
127	127	follows:
128	128	(a-1) The commission shall remove the home address of a
129	129	judge, [or] justice, or district attorney from a financial
130	130	statement filed under this subchapter before:
131	131	(1) permitting a member of the public to view the
132	132	statement; or
133	133	(2) providing a copy of the statement to a member of
134	134	the public.
135	135	(a-2) The commission shall remove the home address of an
136	136	individual from a financial statement filed by the individual under
137	137	this subchapter before:
138	138	(1) permitting a member of the public to view the
139	139	statement; or
140	140	(2) providing a copy of the statement to a member of
141	141	the public.
142	142	SECTION 2.08. Subsections (a) and (b), Section 572.033,
143	143	Government Code, are amended to read as follows:
144	144	(a) The commission shall determine from any available
145	145	evidence whether a statement required to be filed under this
146	146	subchapter is late. On making a determination that the statement is
147	147	late, the commission shall notify [immediately mail a notice of the
148	148	determination to] the individual responsible for filing the
149	149	statement and [to] the appropriate prosecuting attorney for the
150	150	state of the determination.
151	151	(b) If a statement is determined to be late, the individual
152	152	responsible for filing the statement is liable to the state for a
153	153	civil penalty of $500. If a statement is more than 30 days late, the
154	154	commission shall issue a warning of liability [by registered mail]
155	155	to the individual responsible for the filing. If the penalty is not
156	156	paid before the 10th day after the date on which the warning is
157	157	received, the individual is liable for a civil penalty in an amount
158	158	determined by commission rule, but not to exceed $10,000.
159	159	SECTION 2.09. Section 145.003, Local Government Code, is
160	160	amended by adding Subsection (c) to read as follows:
161	161	(c) The statement may be filed with the clerk or secretary
162	162	by electronic mail. The clerk or secretary may prescribe
163	163	guidelines for filing by electronic mail.
164	164	SECTION 2.10. Subsection (d), Section 145.004, Local
165	165	Government Code, is amended to read as follows:
166	166	(d) The timeliness of the filing is governed by Section
167	167	572.029, Government Code. In addition, a financial statement that
168	168	is not filed by electronic mail is timely filed if it is properly
169	169	addressed and placed in the United States post office or in the
170	170	hands of a common or contract carrier not later than the last day
171	171	for filing the financial statement. The post office cancellation
172	172	mark or the receipt mark of a common or contract carrier is prima
173	173	facie evidence of the date the statement was deposited with the post
174	174	office or carrier. The individual filing the statement may show by
175	175	competent evidence that the actual date of posting was different
176	176	from that shown by the mark.
177	177	SECTION 2.11. Section 159.003, Local Government Code, is
178	178	amended by adding Subsection (c) to read as follows:
179	179	(c) The statement may be filed with the county clerk by
180	180	electronic mail. The county clerk may prescribe guidelines for
181	181	filing by electronic mail.
182	182	SECTION 2.12. Subsection (b), Section 159.004, Local
183	183	Government Code, is amended to read as follows:
184	184	(b) The timeliness of the filing is governed by Section
185	185	572.029, Government Code. In addition, a financial statement that
186	186	is not filed by electronic mail is timely filed if it is properly
187	187	addressed and placed in the United States post office or in the
188	188	hands of a common or contract carrier not later than the last day
189	189	for filing the financial statement. The post office cancellation
190	190	mark or the receipt mark of a common or contract carrier is prima
191	191	facie evidence of the date the statement was deposited with the post
192	192	office or carrier. The individual filing the statement may show by
193	193	competent evidence that the actual date of posting was different
194	194	from that shown by the mark.
195	195	SECTION 2.13. Section 159.034, Local Government Code, is
196	196	amended by adding Subsection (d) to read as follows:
197	197	(d) A report filed under this subchapter may be filed by
198	198	electronic mail. The authority with whom the report is filed may
199	199	prescribe guidelines for filing by electronic mail.
200	200	SECTION 2.14. Section 159.052, Local Government Code, is
201	201	amended by adding Subsection (c) to read as follows:
202	202	(c) A financial statement filed with the county clerk may be
203	203	filed by electronic mail. The county clerk may prescribe
204	204	guidelines for filing by electronic mail under this subsection.
205	205	SECTION 2.15. Subsection (b), Section 159.053, Local
206	206	Government Code, is amended to read as follows:
207	207	(b) The timeliness of the filing is governed by Section
208	208	572.029, Government Code. In addition, a financial statement that
209	209	is not filed by electronic mail is timely filed if it is properly
210	210	addressed and placed in the United States post office or in the
211	211	hands of a common or contract carrier not later than the last day
212	212	for filing the financial statement. The post office cancellation
213	213	mark or the receipt mark of a common or contract carrier is prima
214	214	facie evidence of the date the statement was deposited with the post
215	215	office or carrier. The individual filing the statement may show by
216	216	competent evidence that the actual date of posting was different
217	217	from that shown by the mark.
218	218	SECTION 2.16. Subsection (a-1), Section 572.032,
219	219	Government Code, as amended by this Act, applies to any financial
220	220	statement filed under Subchapter B, Chapter 572, Government Code,
221	221	that the Texas Ethics Commission maintains on file and that is
222	222	accessible to the public on or after the effective date of this Act.
223	223	SECTION 2.17. Subsection (a-2), Section 572.032,
224	224	Government Code, as added by this Act, applies only to a financial
225	225	statement filed under Subchapter B, Chapter 572, Government Code,
226	226	on or after the date the Texas Ethics Commission determines that the
227	227	computer software that a person is required to use to
228	228	electronically file a financial statement includes features that
229	229	allow the commission to easily and quickly redact information in
230	230	the statement. A financial statement filed before that date is
231	231	governed by the law in effect on the date of filing, and the former
232	232	law is continued in effect for that purpose.
233	233	ARTICLE 3. CAMPAIGN FINANCE
234	234	SECTION 3.01. Subdivision (16), Section 251.001, Election
235	235	Code, is amended to read as follows:
236	236	(16) "Political advertising" means a communication
237	237	supporting or opposing a candidate for nomination or election to a
238	238	public office or office of a political party, a political party, a
239	239	public officer, or a measure that:
240	240	(A) in return for consideration, is published in
241	241	a newspaper, magazine, or other periodical or is broadcast by radio
242	242	or television; [or]
243	243	(B) is transmitted by an automated dial
244	244	announcing device, as defined by Section 55.121, Utilities Code; or
245	245	(C) appears:
246	246	(i) in a pamphlet, circular, flier,
247	247	billboard or other sign, bumper sticker, or similar form of written
248	248	communication; or
249	249	(ii) on an Internet website.
250	250	SECTION 3.02. Section 251.003, Election Code, is amended to
251	251	read as follows:
252	252	Sec. 251.003. [PROHIBITION OF] DOCUMENT FILING FEE. (a) A
253	253	candidate, an officeholder other than the secretary of state, and a
254	254	political committee shall pay an annual fee for each year in which
255	255	the candidate, officeholder, or political committee files [A charge
256	256	may not be made for filing] a document required to be filed under
257	257	this title.
258	258	(b) This section does not apply to:
259	259	(1) a candidate, officeholder, or specific-purpose
260	260	committee who files reports under this title with an authority
261	261	other than the commission;
262	262	(2) a candidate who filed a petition in lieu of the
263	263	filing fee with the candidate's application for a place on the
264	264	ballot; or
265	265	(3) an officeholder who filed a petition in lieu of the
266	266	filing fee with the application for a place on the ballot as a
267	267	candidate for the office held by the officeholder.
268	268	(c) The commission shall by rule determine the amount of the
269	269	annual fee under this section in an amount, not to exceed $100, that
270	270	the commission determines necessary for the administration of this
271	271	title.
272	272	(d) The commission shall adopt rules to implement this
273	273	section.
274	274	SECTION 3.03. The heading to Chapter 252, Election Code, is
275	275	amended to read as follows:
276	276	CHAPTER 252. CAMPAIGN TREASURER, AND PRINCIPAL POLITICAL COMMITTEE
277	277	SECTION 3.04. Chapter 252, Election Code, is amended by
278	278	designating Sections 252.001 through 252.015 as Subchapter A and
279	279	adding a subchapter heading to read as follows:
280	280	SUBCHAPTER A. CAMPAIGN TREASURER
281	281	SECTION 3.05. Section 252.001, Election Code, is amended to
282	282	read as follows:
283	283	Sec. 252.001. APPOINTMENT OF CAMPAIGN TREASURER REQUIRED.
284	284	Except as provided in Subchapter C, each [Each] candidate and each
285	285	political committee shall appoint a campaign treasurer as provided
286	286	by this subchapter [chapter].
287	287	SECTION 3.06. Subchapter A, Chapter 252, Election Code, is
288	288	amended by adding Section 252.00311 to read as follows:
289	289	Sec. 252.00311. CERTAIN USE OF CANDIDATE'S NAME BY
290	290	POLITICAL COMMITTEE PROHIBITED. (a) Notwithstanding Section
291	291	252.0031(b), the name of a political committee may not include the
292	292	name of any candidate that the committee supports if the candidate
293	293	has not previously consented to and approved of the committee's
294	294	formation.
295	295	(b) A violation of this section is a deceptive trade
296	296	practice under Subchapter E, Chapter 17, Business & Commerce Code,
297	297	and is actionable under that subchapter.
298	298	SECTION 3.07. Chapter 252, Election Code, is amended by
299	299	adding Subchapter B to read as follows:
300	300	SUBCHAPTER B. PRINCIPAL POLITICAL COMMITTEE
301	301	Sec. 252.101. DESIGNATION OF PRINCIPAL POLITICAL
302	302	COMMITTEE. (a) A candidate required to file a campaign treasurer
303	303	appointment with the commission or an officeholder of an office for
304	304	which a candidate is required to file a campaign treasurer
305	305	appointment with the commission may designate a specific-purpose
306	306	committee as the principal political committee for the candidate or
307	307	officeholder with the responsibility of reporting any activity of
308	308	the candidate or officeholder for which the candidate or
309	309	officeholder would otherwise be required to file a report under
310	310	Chapter 254.
311	311	(b) A candidate who designates a principal political
312	312	committee under this subchapter is not required to appoint a
313	313	campaign treasurer under Subchapter A.
314	314	(c) A designation of a principal political committee must be
315	315	in writing and filed with the commission.
316	316	Sec. 252.102. LIMITATION ON DESIGNATION OF AND AS PRINCIPAL
317	317	POLITICAL COMMITTEE. (a) A candidate or officeholder may
318	318	designate only one specific-purpose committee as the candidate's or
319	319	officeholder's principal political committee.
320	320	(b) A specific-purpose committee may be designated as the
321	321	principal political committee for only one candidate or
322	322	officeholder.
323	323	SECTION 3.08. Subchapter A, Chapter 253, Election Code, is
324	324	amended by adding Section 253.006 to read as follows:
325	325	Sec. 253.006. CERTAIN CONTRIBUTIONS AND EXPENDITURES BY
326	326	LOBBYISTS RESTRICTED. (a) In this section, "administrative
327	327	action," "communicates directly with," "legislation," "member of
328	328	the executive branch," and "member of the legislative branch" have
329	329	the meanings assigned by Section 305.002, Government Code.
330	330	(b) Notwithstanding any other provision of law and except as
331	331	provided by Subsection (c), a person required to register under
332	332	Chapter 305, Government Code, may not, before the second
333	333	anniversary of the date the last term for which the person was
334	334	elected ends, knowingly make or authorize a political contribution
335	335	or political expenditure from political contributions accepted by
336	336	the person as a candidate or officeholder.
337	337	(c) Subsection (b) does not apply to a person who:
338	338	(1) communicates directly with a member of the
339	339	legislative or executive branch only to influence legislation or
340	340	administrative action on behalf of:
341	341	(A) a nonprofit organization exempt from federal
342	342	income taxation under Section 501(a), Internal Revenue Code of
343	343	1986, as an organization described by Section 501(c)(3) of that
344	344	code;
345	345	(B) a group of low-income individuals; or
346	346	(C) a group of individuals with disabilities;
347	347	and
348	348	(2) does not receive compensation other than
349	349	reimbursement for actual expenses for engaging in communication
350	350	described by Subdivision (1).
351	351	(d) A person who violates this section commits an offense.
352	352	An offense under this section is a Class A misdemeanor.
353	353	SECTION 3.09. Subsection (a), Section 253.158, Election
354	354	Code, is amended to read as follows:
355	355	(a) For purposes of Sections 253.155 and 253.157, a
356	356	contribution by the [spouse or] child of an individual is
357	357	considered to be a contribution by the individual.
358	358	SECTION 3.10. Section 254.036, Election Code, is amended by
359	359	amending Subsections (c) and (c-1) and adding Subsections (d) and
360	360	(d-1) to read as follows:
361	361	(c) A candidate, officeholder, or political committee that
362	362	is required to file reports with the commission may file reports
363	363	that comply with Subsection (a) if:
364	364	(1) the candidate, officeholder, or campaign
365	365	treasurer of the committee files with the commission an affidavit
366	366	stating that the candidate, officeholder, or committee, an agent of
367	367	the candidate, officeholder, or committee, or a person with whom
368	368	the candidate, officeholder, or committee contracts does not use
369	369	computer equipment to keep the current records of political
370	370	contributions, political expenditures, or persons making political
371	371	contributions to the candidate, officeholder, or committee; and
372	372	(2) the candidate, officeholder, or committee has
373	373	never [does not], in a calendar year, accepted [accept] political
374	374	contributions that in the aggregate exceeded [exceed] $20,000 or
375	375	made [make] political expenditures that in the aggregate exceeded
376	376	[exceed] $20,000.
377	377	(c-1) An affidavit under Subsection (c) must be filed with
378	378	each report filed under Subsection (a). The affidavit must include
379	379	a statement that the candidate, officeholder, or political
380	380	committee understands that the candidate, officeholder, or
381	381	committee shall file reports as required by Subsection (b) if:
382	382	(1) the candidate, officeholder, or committee, a
383	383	consultant of the candidate, officeholder, or committee, or a
384	384	person with whom the candidate, officeholder, or committee
385	385	contracts uses computer equipment for a purpose described by
386	386	Subsection (c); or
387	387	(2) the candidate, officeholder, or committee ever
388	388	exceeds $20,000 in political contributions or political
389	389	expenditures in a calendar year.
390	390	(d) A legislative caucus may file reports that comply with
391	391	Subsection (a) if:
392	392	(1) the legislative caucus chair files with the
393	393	commission an affidavit stating that the caucus, an agent of the
394	394	caucus, or a person with whom the caucus contracts does not use
395	395	computer equipment to keep the current records of contributions,
396	396	expenditures, or persons making contributions to the caucus; and
397	397	(2) the caucus has never, in a calendar year, accepted
398	398	contributions that in the aggregate exceeded $20,000 or made
399	399	expenditures that in the aggregate exceeded $20,000.
400	400	(d-1) An affidavit under Subsection (d) must be filed with
401	401	each report filed under Subsection (a). The affidavit must include
402	402	a statement that the legislative caucus understands that the caucus
403	403	shall file reports as required by Subsection (b) if:
404	404	(1) the caucus, a consultant of the caucus, or a person
405	405	with whom the caucus contracts uses computer equipment for a
406	406	purpose described by Subsection (d); or
407	407	(2) the caucus ever exceeds $20,000 in contributions
408	408	or expenditures in a calendar year.
409	409	SECTION 3.11. Subsections (a) and (b), Section 254.042,
410	410	Election Code, are amended to read as follows:
411	411	(a) The commission shall determine from any available
412	412	evidence whether a report required to be filed with the commission
413	413	under this chapter is late. On making that determination, the
414	414	commission shall immediately notify [mail a notice of the
415	415	determination to] the person required to file the report of the
416	416	determination.
417	417	(b) If a report other than a report under Section
418	418	254.064(c), 254.124(c), or 254.154(c) or the first report under
419	419	Section 254.063 or 254.123 that is required to be filed following
420	420	the primary or general election is determined to be late, the person
421	421	required to file the report is liable to the state for a civil
422	422	penalty of $500. If a report under Section 254.064(c), 254.124(c),
423	423	or 254.154(c) or the first report under Section 254.063 or 254.153
424	424	that is required to be filed following the primary or general
425	425	election is determined to be late, the person required to file the
426	426	report is liable to the state for a civil penalty of $500 for the
427	427	first day the report is late and $100 for each day thereafter that
428	428	the report is late. If a report is more than 30 days late, the
429	429	commission shall issue a warning of liability [by registered mail]
430	430	to the person required to file the report. If the penalty is not
431	431	paid before the 10th day after the date on which the warning is
432	432	received, the person is liable for a civil penalty in an amount
433	433	determined by commission rule, but not to exceed $10,000.
434	434	SECTION 3.12. Subchapter C, Chapter 254, Election Code, is
435	435	amended by adding Section 254.067 to read as follows:
436	436	Sec. 254.067. REPORT NOT REQUIRED. If during any reporting
437	437	period prescribed by this subchapter a candidate designates a
438	438	specific-purpose committee as the candidate's principal political
439	439	committee as provided by Section 252.101, the candidate is not
440	440	required to file a report covering that period if the candidate's
441	441	principal political committee reports all of the activity that
442	442	would otherwise be required to be included in the report,
443	443	including:
444	444	(1) the amount of any political contribution,
445	445	including any loan, made by the candidate to the principal
446	446	political committee; and
447	447	(2) the amount of any political expenditure made by
448	448	the candidate from personal funds and whether the candidate intends
449	449	to seek reimbursement of the expenditure from the principal
450	450	political committee.
451	451	SECTION 3.13. Section 254.095, Election Code, is amended to
452	452	read as follows:
453	453	Sec. 254.095. REPORT NOT REQUIRED. (a) If at the end of
454	454	any reporting period prescribed by this subchapter an officeholder
455	455	who is required to file a report with an authority other than the
456	456	commission has not accepted political contributions that in the
457	457	aggregate exceed $500 or made political expenditures that in the
458	458	aggregate exceed $500, the officeholder is not required to file a
459	459	report covering that period.
460	460	(b) If during any reporting period prescribed by this
461	461	subchapter an officeholder designates a specific-purpose committee
462	462	as the officeholder's principal political committee as provided by
463	463	Section 252.101, the officeholder is not required to file a report
464	464	covering that period if the officeholder's principal political
465	465	committee reports all of the activity that would otherwise be
466	466	required to be included in the report, including:
467	467	(1) the amount of any political contribution,
468	468	including any loan, made by the officeholder to the principal
469	469	political committee; and
470	470	(2) the amount of any political expenditure made by
471	471	the officeholder from personal funds and whether the officeholder
472	472	intends to seek reimbursement of the expenditure from the principal
473	473	political committee.
474	474	SECTION 3.14. Section 254.157, Election Code, is amended to
475	475	read as follows:
476	476	Sec. 254.157. MONTHLY REPORTING SCHEDULE. (a) The
477	477	campaign treasurer of a general-purpose committee filing monthly
478	478	reports shall file a report not later than the 10th [fifth] day of
479	479	the month following the period covered by the report. A report
480	480	covering the month preceding an election in which the committee is
481	481	involved must be received by the commission [authority with whom
482	482	the report is required to be filed] not later than the 10th [fifth]
483	483	day of the month following the period covered by the report.
484	484	(b) A monthly report covers the period beginning the first
485	485	calendar [26th] day of each month and continuing through the last
486	486	calendar [25th] day of that [the following] month[, except that the
487	487	period covered by the first report begins January 1 and continues
488	488	through January 25].
489	489	SECTION 3.15. Section 254.158, Election Code, is amended to
490	490	read as follows:
491	491	Sec. 254.158. EXCEPTION TO MONTHLY REPORTING SCHEDULE. If
492	492	the campaign treasurer appointment of a general-purpose committee
493	493	filing monthly reports is filed after January 1 of the year in which
494	494	monthly reports are filed, the period covered by the first monthly
495	495	report begins the day the appointment is filed and continues
496	496	through the last calendar [25th] day of the month in which the
497	497	appointment is filed unless the appointment is filed the last
498	498	calendar [25th or a succeeding] day of the month. In that case, the
499	499	period continues through the last calendar [25th] day of the month
500	500	following the month in which the appointment is filed.
501	501	SECTION 3.16. Subchapter J, Chapter 254, Election Code, is
502	502	amended by adding Section 254.2611 to read as follows:
503	503	Sec. 254.2611. CERTAIN NONPROFIT MEMBERSHIP ASSOCIATIONS
504	504	NOT ACTING IN CONCERT. For purposes of Section 254.261, a person is
505	505	not considered to be acting in concert with another person if the
506	506	person:
507	507	(1) is a nonprofit membership association subject to
508	508	Subchapter D, Chapter 253;
509	509	(2) is part of a multi-tiered local, state, and
510	510	national nonprofit membership association structure; and
511	511	(3) communicates with any entity within the
512	512	multi-tiered association structure to make a direct campaign
513	513	expenditure in this state.
514	514	SECTION 3.17. Subchapter J, Chapter 254, Election Code, is
515	515	amended by adding Section 254.263 to read as follows:
516	516	Sec. 254.263. APPLICABILITY OF PRIVILEGE TO CERTAIN PERSONS
517	517	MAKING DIRECT CAMPAIGN EXPENDITURES. The privilege established
518	518	under Subchapter C, Chapter 22, Civil Practice and Remedies Code,
519	519	does not apply to:
520	520	(1) a person who is required to file a report under
521	521	Section 254.261, who controls a political committee, or who makes a
522	522	political expenditure described by Section 253.100(a);
523	523	(2) a person who is required to be disclosed on federal
524	524	Internal Revenue Service Form 990 as an entity related to a person
525	525	described by Subdivision (1); or
526	526	(3) a person who is an employee or contractor of, who
527	527	acts under the control of, or who acts on behalf of a person
528	528	described by Subdivision (1) or (2).
529	529	SECTION 3.18. Section 255.001, Election Code, is amended by
530	530	amending Subsections (a) and (d) and adding Subsections (a-1) and
531	531	(a-2) to read as follows:
532	532	(a) A person may not knowingly cause to be published,
533	533	distributed, or broadcast political advertising containing express
534	534	advocacy that does not include [indicate] in the advertising:
535	535	(1) an indication that it is political advertising;
536	536	[and]
537	537	(2) the full name of:
538	538	(A) the person who paid for the political
539	539	advertising;
540	540	(B) the political committee authorizing the
541	541	political advertising; or
542	542	(C) the candidate or specific-purpose committee
543	543	supporting the candidate, if the political advertising is
544	544	authorized by the candidate;
545	545	(3) if the political advertising is authorized by the
546	546	candidate:
547	547	(A) for advertising transmitted through radio,
548	548	an audio statement made by the candidate that identifies the
549	549	candidate and states that the candidate has approved the
550	550	communication; and
551	551	(B) for advertising transmitted through
552	552	television:
553	553	(i) a clearly identifiable photographic or
554	554	similar image of the candidate; and
555	555	(ii) a statement in writing identifying the
556	556	candidate and stating that the candidate has approved the
557	557	communication that appears:
558	558	(a) at the end of the communication
559	559	for not less than four seconds; and
560	560	(b) in letters that are at least four
561	561	percent of the vertical screen height; and
562	562	(4) if the political advertising is not authorized by
563	563	the candidate:
564	564	(A) for advertising transmitted through radio,
565	565	an audio statement of the name of the person who paid for the
566	566	advertising, made by an individual named in the statement or by a
567	567	representative of a person named in the statement who is not an
568	568	individual; and
569	569	(B) for advertising transmitted through
570	570	television, a written statement that contains the name of the
571	571	person who paid for the advertising and that appears:
572	572	(i) at the end of the communication for not
573	573	less than four seconds; and
574	574	(ii) in letters that are at least four
575	575	percent of the vertical screen height.
576	576	(a-1) An Internet website containing political advertising
577	577	must contain the disclosure required by this section on each page of
578	578	the website containing the political advertising. The disclosure
579	579	must appear:
580	580	(1) in a printed box set apart from the rest of the
581	581	contents of the page;
582	582	(2) in a font size that is at least 12 pixels; and
583	583	(3) in black text on a white background or in a text
584	584	color so that the degree of contrast between the background color
585	585	and the disclosure text color is at least as great as the degree of
586	586	contrast between the background color and the color of the largest
587	587	text on the page.
588	588	(a-2) If political advertising appears on a social media
589	589	website, a disclosure that complies with Subsection (a-1) must
590	590	appear on the appropriate social media profile page. If political
591	591	advertising on an Internet website, including a social media
592	592	profile page, is too small to include the disclosure in a manner
593	593	that complies with Subsection (a-1), the disclosure satisfies the
594	594	requirements of Subsection (a-1) if the disclosure links to another
595	595	Internet website page that displays the full disclosure and is
596	596	operational and freely accessible during the time the advertisement
597	597	is visible. Internet advertising that is too small to include a
598	598	disclosure complying with Subsection (a-1) includes an
599	599	advertisement classified as a micro bar or button according to
600	600	applicable advertising standards, an advertisement that has 200 or
601	601	fewer characters, and a graphic or picture link in which including
602	602	the disclosure is not reasonably practical because of the size of
603	603	the graphic or picture link.
604	604	(d) This section does not apply to:
605	605	(1) tickets or invitations to political fund-raising
606	606	events;
607	607	(2) campaign buttons, pins, hats, or similar campaign
608	608	materials; [or]
609	609	(3) circulars or flyers that cost in the aggregate
610	610	less than $500 to publish and distribute; or
611	611	(4) political advertising distributed by sending a
612	612	text message using a mobile communications service.
613	613	SECTION 3.19. Section 257.003, Election Code, is amended by
614	614	amending Subsection (a) and adding Subsection (e) to read as
615	615	follows:
616	616	(a) A political party that accepts contributions authorized
617	617	by Section 253.104 shall report all contributions and expenditures
618	618	made to and from the account required by Section 257.002, except as
619	619	provided by Subsection (e).
620	620	(e) A county executive committee of a political party is not
621	621	required to file a report under this section if the committee:
622	622	(1) has less than $250 in one or more accounts
623	623	maintained by the committee in which contributions authorized by
624	624	Section 253.104 are deposited, as of the last day of the preceding
625	625	reporting period;
626	626	(2) has not accepted any contributions authorized by
627	627	Section 253.104 during the reporting period to be covered by the
628	628	report; and
629	629	(3) has not made an expenditure from contributions
630	630	authorized by Section 253.104 during the reporting period to be
631	631	covered by the report.
632	632	SECTION 3.20. Subchapter B, Chapter 305, Government Code,
633	633	is amended by adding Section 305.030 to read as follows:
634	634	Sec. 305.030. EXPENDITURES FROM POLITICAL CONTRIBUTIONS
635	635	RESTRICTED. (a) In this section, "political contribution" has the
636	636	meaning assigned by Section 251.001, Election Code.
637	637	(b) Notwithstanding any other provision of law and except as
638	638	provided by Subsection (c), a person required to register under
639	639	this chapter may not, before the second anniversary of the date the
640	640	last term for which the person was elected ends, knowingly make or
641	641	authorize an expenditure under this chapter from political
642	642	contributions accepted by the person as a candidate or
643	643	officeholder.
644	644	(c) Subsection (b) does not apply to a person who:
645	645	(1) communicates directly with a member of the
646	646	legislative or executive branch only to influence legislation or
647	647	administrative action on behalf of:
648	648	(A) a nonprofit organization exempt from federal
649	649	income taxation under Section 501(a), Internal Revenue Code of
650	650	1986, as an organization described by Section 501(c)(3) of that
651	651	code;
652	652	(B) a group of low-income individuals; or
653	653	(C) a group of individuals with disabilities; and
654	654	(2) does not receive compensation other than
655	655	reimbursement for actual expenses for engaging in communication
656	656	described by Subdivision (1).
657	657	SECTION 3.21. Section 253.006, Election Code, as added by
658	658	this article, and Section 305.030, Government Code, as added by
659	659	this article, apply to a political contribution, political
660	660	expenditure, or lobbying expenditure made on or after September 1,
661	661	2013, from funds accepted as a political contribution, regardless
662	662	of the date the funds were accepted.
663	663	SECTION 3.22. Section 253.158, Election Code, as amended by
664	664	this Act, applies only to a political contribution accepted on or
665	665	after the effective date of this Act. A contribution accepted
666	666	before the effective date of this Act is governed by the law in
667	667	effect on the date the contribution was accepted or the expenditure
668	668	was made, and the former law is continued in effect for that
669	669	purpose.
670	670	SECTION 3.23. The changes in law made by this article apply
671	671	only to a report required to be filed under Chapter 254, Election
672	672	Code, on or after the effective date of this Act. A report required
673	673	to be filed under Chapter 254, Election Code, before the effective
674	674	date of this Act is governed by the law in effect on the date the
675	675	report is due, and the former law is continued in effect for that
676	676	purpose.
677	677	SECTION 3.24. (a) Not later than September 15, 2015, each
678	678	legislative caucus in existence on September 1, 2015, shall appoint
679	679	a caucus chair and file a caucus chair appointment with the Texas
680	680	Ethics Commission as required by Subchapter B, Chapter 252,
681	681	Election Code, as added by this Act. Notwithstanding Section
682	682	254.0311, Election Code, as amended by this Act:
683	683	(1) not later than October 1, 2015, a legislative
684	684	caucus shall file a report under Section 254.0311, Election Code,
685	685	as that section existed before amendment by this Act, that covers
686	686	the period beginning July 1, 2015, or the day the caucus is
687	687	organized, as applicable, and continuing through September 15,
688	688	2015; and
689	689	(2) not later than January 15, 2016, a legislative
690	690	caucus chair appointed under this subsection shall file a report
691	691	under Section 254.0311, Election Code, as amended by this Act, that
692	692	covers the period beginning September 15, 2015, and continuing
693	693	through December 31, 2015.
694	694	(b) A legislative caucus chair appointed under Subsection
695	695	(a) of this section is not responsible for:
696	696	(1) reporting caucus activity that occurs before
697	697	September 15, 2013; or
698	698	(2) maintaining records of caucus activity that occurs
699	699	before September 15, 2015.
700	700	ARTICLE 4. EFFECTIVE DATE
701	701	SECTION 4.01. This Act takes effect September 1, 2015.