Texas 2015 - 84th Regular

Texas Senate Bill SB1969 Latest Draft

Bill / Introduced Version Filed 03/13/2015

Download
.pdf .doc .html
                            By: Huffman S.B. No. 1969


 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. GENERAL PROCEDURES OF TEXAS ETHICS COMMISSION
 SECTION 1.01.  Subchapter B, 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.
 SECTION 1.02.  Section 571.0671, Government Code, is amended
 by adding Subsection (d) to read as follows:
 (d)  Electronic report data saved in a commission temporary
 storage location for later retrieval and editing before the report
 is filed is confidential and may not be disclosed. After the report
 is filed, the information disclosed in the report is subject to the
 law requiring the filing of the report.
 ARTICLE 2. PERSONAL FINANCIAL STATEMENTS
 SECTION 2.01.  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 2.02.  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 2.03.  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 2.04.  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 2.05.  Subsections (b) and (c), Section 572.030,
 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 2.06.  Subsection (b), Section 572.031, 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 2.07.  Section 572.032, Government Code, is amended
 by amending Subsection (a-1) and adding Subsection (a-2) to read as
 follows:
 (a-1)  The commission shall remove the home address of a
 judge, [or] justice, or district attorney from a financial
 statement filed under this subchapter before:
 (1)  permitting a member of the public to view the
 statement; or
 (2)  providing a copy of the statement to a member of
 the public.
 (a-2)  The commission shall remove the home address of an
 individual from a financial statement filed by the individual under
 this subchapter before:
 (1)  permitting a member of the public to view the
 statement; or
 (2)  providing a copy of the statement to a member of
 the public.
 SECTION 2.08.  Subsections (a) and (b), Section 572.033,
 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 2.09.  Section 145.003, Local Government Code, is
 amended by adding Subsection (c) to read as follows:
 (c)  The statement may be filed with the clerk or secretary
 by electronic mail. The clerk or secretary may prescribe
 guidelines for filing by electronic mail.
 SECTION 2.10.  Subsection (d), Section 145.004, 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 that
 is not filed by electronic mail 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 2.11.  Section 159.003, Local Government Code, is
 amended by adding Subsection (c) to read as follows:
 (c)  The statement may be filed with the county clerk by
 electronic mail. The county clerk may prescribe guidelines for
 filing by electronic mail.
 SECTION 2.12.  Subsection (b), Section 159.004, 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 that
 is not filed by electronic mail 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 2.13.  Section 159.034, Local Government Code, is
 amended by adding Subsection (d) to read as follows:
 (d)  A report filed under this subchapter may be filed by
 electronic mail. The authority with whom the report is filed may
 prescribe guidelines for filing by electronic mail.
 SECTION 2.14.  Section 159.052, Local Government Code, is
 amended by adding Subsection (c) to read as follows:
 (c)  A financial statement filed with the county clerk may be
 filed by electronic mail. The county clerk may prescribe
 guidelines for filing by electronic mail under this subsection.
 SECTION 2.15.  Subsection (b), Section 159.053, 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 that
 is not filed by electronic mail 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 2.16.  Subsection (a-1), Section 572.032,
 Government Code, as amended by this Act, applies to any financial
 statement filed under Subchapter B, Chapter 572, Government Code,
 that the Texas Ethics Commission maintains on file and that is
 accessible to the public on or after the effective date of this Act.
 SECTION 2.17.  Subsection (a-2), Section 572.032,
 Government Code, as added by this Act, applies only to a financial
 statement filed under Subchapter B, Chapter 572, Government Code,
 on or after the date the Texas Ethics Commission determines that the
 computer software that a person is required to use to
 electronically file a financial statement includes features that
 allow the commission to easily and quickly redact information in
 the statement. A financial statement filed before that date is
 governed by the law in effect on the date of filing, and the former
 law is continued in effect for that purpose.
 ARTICLE 3. CAMPAIGN FINANCE
 SECTION 3.01.  Subdivision (16), Section 251.001, Election
 Code, is amended to read as follows:
 (16)  "Political advertising" means a communication
 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)  is transmitted by an automated dial
 announcing device, as defined by Section 55.121, Utilities Code; or
 (C)  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.
 SECTION 3.02.  Section 251.003, Election Code, is amended to
 read as follows:
 Sec. 251.003.  [PROHIBITION OF] DOCUMENT FILING FEE. (a)  A
 candidate, an officeholder other than the secretary of state, and a
 political committee shall pay an annual fee for each year in which
 the candidate, officeholder, or political committee files [A charge
 may not be made for filing] a document required to be filed under
 this title.
 (b)  This section does not apply to:
 (1)  a candidate, officeholder, or specific-purpose
 committee who files reports under this title with an authority
 other than the commission;
 (2)  a candidate who filed a petition in lieu of the
 filing fee with the candidate's application for a place on the
 ballot; or
 (3)  an officeholder who filed a petition in lieu of the
 filing fee with the application for a place on the ballot as a
 candidate for the office held by the officeholder.
 (c)  The commission shall by rule determine the amount of the
 annual fee under this section in an amount, not to exceed $100, that
 the commission determines necessary for the administration of this
 title.
 (d)  The commission shall adopt rules to implement this
 section.
 SECTION 3.03.  The heading to Chapter 252, Election Code, is
 amended to read as follows:
 CHAPTER 252. CAMPAIGN TREASURER, AND PRINCIPAL POLITICAL COMMITTEE
 SECTION 3.04.  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 3.05.  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 3.06.  Subchapter A, Chapter 252, Election Code, is
 amended by adding Section 252.00311 to read as follows:
 Sec. 252.00311.  CERTAIN USE OF CANDIDATE'S NAME BY
 POLITICAL COMMITTEE PROHIBITED. (a)  Notwithstanding Section
 252.0031(b), the name of a political committee may not include the
 name of any candidate that the committee supports if the candidate
 has not previously consented to and approved of the committee's
 formation.
 (b)  A violation of this section is a deceptive trade
 practice under Subchapter E, Chapter 17, Business & Commerce Code,
 and is actionable under that subchapter.
 SECTION 3.07.  Chapter 252, Election Code, is amended by
 adding Subchapter B to read as follows:
 SUBCHAPTER B. 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 3.08.  Subchapter A, Chapter 253, Election Code, is
 amended by adding Section 253.006 to read as follows:
 Sec. 253.006.  CERTAIN CONTRIBUTIONS AND EXPENDITURES BY
 LOBBYISTS RESTRICTED. (a)  In this section, "administrative
 action," "communicates directly with," "legislation," "member of
 the executive branch," and "member of the legislative branch" have
 the meanings assigned by Section 305.002, Government Code.
 (b)  Notwithstanding any other provision of law and except as
 provided by Subsection (c), a person required to register under
 Chapter 305, Government Code, may not, before the second
 anniversary of the date the last term for which the person was
 elected ends, knowingly make or authorize a political contribution
 or political expenditure from political contributions accepted by
 the person as a candidate or officeholder.
 (c)  Subsection (b) does not apply to a person who:
 (1)  communicates directly with a member of the
 legislative or executive branch only to influence legislation or
 administrative action on behalf of:
 (A)  a nonprofit organization exempt from federal
 income taxation under Section 501(a), Internal Revenue Code of
 1986, as an organization described by Section 501(c)(3) of that
 code;
 (B)  a group of low-income individuals; or
 (C)  a group of individuals with disabilities;
 and
 (2)  does not receive compensation other than
 reimbursement for actual expenses for engaging in communication
 described by Subdivision (1).
 (d)  A person who violates this section commits an offense.
 An offense under this section is a Class A misdemeanor.
 SECTION 3.09.  Subsection (a), Section 253.158, Election
 Code, is amended to read as follows:
 (a)  For purposes of Sections 253.155 and 253.157, a
 contribution by the [spouse or] child of an individual is
 considered to be a contribution by the individual.
 SECTION 3.10.  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 3.11.  Subsections (a) and (b), Section 254.042,
 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 3.12.  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 3.13.  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 3.14.  Section 254.157, Election Code, is amended to
 read as follows:
 Sec. 254.157.  MONTHLY REPORTING SCHEDULE. (a)  The
 campaign treasurer of a general-purpose committee filing monthly
 reports shall file a report not later than the 10th [fifth] day of
 the month following the period covered by the report. A report
 covering the month preceding an election in which the committee is
 involved must be received by the commission [authority with whom
 the report is required to be filed] not later than the 10th [fifth]
 day of the month following the period covered by the report.
 (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 3.15.  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 3.16.  Subchapter J, Chapter 254, Election Code, is
 amended by adding Section 254.2611 to read as follows:
 Sec. 254.2611.  CERTAIN NONPROFIT MEMBERSHIP ASSOCIATIONS
 NOT ACTING IN CONCERT. For purposes of Section 254.261, a person is
 not considered to be acting in concert with another person if the
 person:
 (1)  is a nonprofit membership association subject to
 Subchapter D, Chapter 253;
 (2)  is part of a multi-tiered local, state, and
 national nonprofit membership association structure; and
 (3)  communicates with any entity within the
 multi-tiered association structure to make a direct campaign
 expenditure in this state.
 SECTION 3.17.  Subchapter J, Chapter 254, Election Code, is
 amended by adding Section 254.263 to read as follows:
 Sec. 254.263.  APPLICABILITY OF PRIVILEGE TO CERTAIN PERSONS
 MAKING DIRECT CAMPAIGN EXPENDITURES. The privilege established
 under Subchapter C, Chapter 22, Civil Practice and Remedies Code,
 does not apply to:
 (1)  a person who is required to file a report under
 Section 254.261, who controls a political committee, or who makes a
 political expenditure described by Section 253.100(a);
 (2)  a person who is required to be disclosed on federal
 Internal Revenue Service Form 990 as an entity related to a person
 described by Subdivision (1); or
 (3)  a person who is an employee or contractor of, who
 acts under the control of, or who acts on behalf of a person
 described by Subdivision (1) or (2).
 SECTION 3.18.  Section 255.001, Election Code, is amended by
 amending Subsections (a) and (d) and adding Subsections (a-1) and
 (a-2) to read as follows:
 (a)  A person may not knowingly cause to be published,
 distributed, or broadcast political advertising containing express
 advocacy that does not include [indicate] in the advertising:
 (1)  an indication that it is political advertising;
 [and]
 (2)  the full name of:
 (A)  the person who paid for the political
 advertising;
 (B)  the political committee authorizing the
 political advertising; or
 (C)  the candidate or specific-purpose committee
 supporting the candidate, if the political advertising is
 authorized by the candidate;
 (3)  if the political advertising is authorized by the
 candidate:
 (A)  for advertising transmitted through radio,
 an audio statement made by the candidate that identifies the
 candidate and states that the candidate has approved the
 communication; and
 (B)  for advertising transmitted through
 television:
 (i)  a clearly identifiable photographic or
 similar image of the candidate; and
 (ii)  a statement in writing identifying the
 candidate and stating that the candidate has approved the
 communication that appears:
 (a)  at the end of the communication
 for not less than four seconds; and
 (b)  in letters that are at least four
 percent of the vertical screen height; and
 (4)  if the political advertising is not authorized by
 the candidate:
 (A)  for advertising transmitted through radio,
 an audio statement of the name of the person who paid for the
 advertising, made by an individual named in the statement or by a
 representative of a person named in the statement who is not an
 individual; and
 (B)  for advertising transmitted through
 television, a written statement that contains the name of the
 person who paid for the advertising and that appears:
 (i)  at the end of the communication for not
 less than four seconds; and
 (ii)  in letters that are at least four
 percent of the vertical screen height.
 (a-1)  An Internet website containing political advertising
 must contain the disclosure required by this section on each page of
 the website containing the political advertising. The disclosure
 must appear:
 (1)  in a printed box set apart from the rest of the
 contents of the page;
 (2)  in a font size that is at least 12 pixels; and
 (3)  in black text on a white background or in a text
 color so that the degree of contrast between the background color
 and the disclosure text color is at least as great as the degree of
 contrast between the background color and the color of the largest
 text on the page.
 (a-2)  If political advertising appears on a social media
 website, a disclosure that complies with Subsection (a-1) must
 appear on the appropriate social media profile page. If political
 advertising on an Internet website, including a social media
 profile page, is too small to include the disclosure in a manner
 that complies with Subsection (a-1), the disclosure satisfies the
 requirements of Subsection (a-1) if the disclosure links to another
 Internet website page that displays the full disclosure and is
 operational and freely accessible during the time the advertisement
 is visible. Internet advertising that is too small to include a
 disclosure complying with Subsection (a-1) includes an
 advertisement classified as a micro bar or button according to
 applicable advertising standards, an advertisement that has 200 or
 fewer characters, and a graphic or picture link in which including
 the disclosure is not reasonably practical because of the size of
 the graphic or picture link.
 (d)  This section does not apply to:
 (1)  tickets or invitations to political fund-raising
 events;
 (2)  campaign buttons, pins, hats, or similar campaign
 materials; [or]
 (3)  circulars or flyers that cost in the aggregate
 less than $500 to publish and distribute; or
 (4)  political advertising distributed by sending a
 text message using a mobile communications service.
 SECTION 3.19.  Section 257.003, Election Code, is amended by
 amending Subsection (a) and adding Subsection (e) to read as
 follows:
 (a)  A political party that accepts contributions authorized
 by Section 253.104 shall report all contributions and expenditures
 made to and from the account required by Section 257.002, except as
 provided by Subsection (e).
 (e)  A county executive committee of a political party is not
 required to file a report under this section if the committee:
 (1)  has less than $250 in one or more accounts
 maintained by the committee in which contributions authorized by
 Section 253.104 are deposited, as of the last day of the preceding
 reporting period;
 (2)  has not accepted any contributions authorized by
 Section 253.104 during the reporting period to be covered by the
 report; and
 (3)  has not made an expenditure from contributions
 authorized by Section 253.104 during the reporting period to be
 covered by the report.
 SECTION 3.20.  Subchapter B, Chapter 305, Government Code,
 is amended by adding Section 305.030 to read as follows:
 Sec. 305.030.  EXPENDITURES FROM POLITICAL CONTRIBUTIONS
 RESTRICTED. (a)  In this section, "political contribution" has the
 meaning assigned by Section 251.001, Election Code.
 (b)  Notwithstanding any other provision of law and except as
 provided by Subsection (c), a person required to register under
 this chapter may not, before the second anniversary of the date the
 last term for which the person was elected ends, knowingly make or
 authorize an expenditure under this chapter from political
 contributions accepted by the person as a candidate or
 officeholder.
 (c)  Subsection (b) does not apply to a person who:
 (1)  communicates directly with a member of the
 legislative or executive branch only to influence legislation or
 administrative action on behalf of:
 (A)  a nonprofit organization exempt from federal
 income taxation under Section 501(a), Internal Revenue Code of
 1986, as an organization described by Section 501(c)(3) of that
 code;
 (B)  a group of low-income individuals; or
 (C)  a group of individuals with disabilities; and
 (2)  does not receive compensation other than
 reimbursement for actual expenses for engaging in communication
 described by Subdivision (1).
 SECTION 3.21.  Section 253.006, Election Code, as added by
 this article, and Section 305.030, Government Code, as added by
 this article, apply to a political contribution, political
 expenditure, or lobbying expenditure made on or after September 1,
 2013, from funds accepted as a political contribution, regardless
 of the date the funds were accepted.
 SECTION 3.22.  Section 253.158, Election Code, as amended by
 this Act, applies only to a political contribution accepted on or
 after the effective date of this Act. A contribution accepted
 before the effective date of this Act is governed by the law in
 effect on the date the contribution was accepted or the expenditure
 was made, and the former law is continued in effect for that
 purpose.
 SECTION 3.23.  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 3.24.  (a)  Not later than September 15, 2015, each
 legislative caucus in existence on September 1, 2015, 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, 2015, 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, 2015, or the day the caucus is
 organized, as applicable, and continuing through September 15,
 2015; and
 (2)  not later than January 15, 2016, 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, 2015, and continuing
 through December 31, 2015.
 (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, 2015.
 ARTICLE 4. EFFECTIVE DATE
 SECTION 4.01.  This Act takes effect September 1, 2015.