1 | 1 | | 85R2285 EES-D |
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2 | 2 | | By: Cook H.J.R. No. 112 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | A JOINT RESOLUTION |
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6 | 6 | | proposing a constitutional amendment requiring certain persons or |
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7 | 7 | | groups to report certain contributions and political expenditures. |
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8 | 8 | | BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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9 | 9 | | SECTION 1. Article XVI, Texas Constitution, is amended by |
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10 | 10 | | adding Section 75 to read as follows: |
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11 | 11 | | Sec. 75. (a) In this section: |
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12 | 12 | | (1) "Campaign contribution" means a contribution to a |
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13 | 13 | | candidate or political committee that is offered or given with the |
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14 | 14 | | intent that it be used in connection with a campaign for elective |
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15 | 15 | | office or on a measure. Whether a contribution is made before, |
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16 | 16 | | during, or after an election does not affect its status as a |
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17 | 17 | | campaign contribution. |
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18 | 18 | | (2) "Campaign expenditure" means an expenditure made |
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19 | 19 | | by any person in connection with a campaign for an elective office |
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20 | 20 | | or on a measure. Whether an expenditure is made before, during, or |
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21 | 21 | | after an election does not affect its status as a campaign |
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22 | 22 | | expenditure. |
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23 | 23 | | (3) "Candidate" means a person who knowingly and |
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24 | 24 | | willingly takes affirmative action for the purpose of gaining |
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25 | 25 | | nomination or election to public office or for the purpose of |
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26 | 26 | | satisfying financial obligations incurred by the person in |
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27 | 27 | | connection with the campaign for nomination or election. Examples |
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28 | 28 | | of affirmative action include: |
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29 | 29 | | (A) the filing of a campaign treasurer |
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30 | 30 | | appointment, except that the filing does not constitute candidacy |
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31 | 31 | | or an announcement of candidacy for purposes of the automatic |
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32 | 32 | | resignation provisions of Section 65 of this article or Section 11, |
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33 | 33 | | Article XI; |
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34 | 34 | | (B) the filing of an application for a place on a |
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35 | 35 | | ballot; |
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36 | 36 | | (C) the filing of an application for nomination |
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37 | 37 | | by convention; |
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38 | 38 | | (D) the filing of a declaration of intent to |
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39 | 39 | | become an independent candidate or a declaration of write-in |
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40 | 40 | | candidacy; |
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41 | 41 | | (E) the making of a public announcement of a |
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42 | 42 | | definite intent to run for public office in a particular election, |
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43 | 43 | | regardless of whether the specific office is mentioned in the |
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44 | 44 | | announcement; |
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45 | 45 | | (F) before a public announcement of intent, the |
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46 | 46 | | making of a statement of definite intent to run for public office |
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47 | 47 | | and the soliciting of support by letter or other mode of |
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48 | 48 | | communication; |
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49 | 49 | | (G) the soliciting or accepting of a campaign |
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50 | 50 | | contribution or the making of a campaign expenditure; and |
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51 | 51 | | (H) the seeking of the nomination of an executive |
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52 | 52 | | committee of a political party to fill a vacancy. |
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53 | 53 | | (4) "Commission" means the Texas Ethics Commission. |
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54 | 54 | | (5) "Contribution" means a direct or indirect transfer |
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55 | 55 | | of money, goods, services, or any other thing of value and includes |
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56 | 56 | | an agreement made or other obligation incurred, whether legally |
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57 | 57 | | enforceable or not, to make a transfer. The term includes a loan or |
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58 | 58 | | extension of credit, other than those expressly excluded by this |
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59 | 59 | | subdivision, and a guarantee of a loan or extension of credit, |
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60 | 60 | | including a loan described by this subdivision. The term also |
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61 | 61 | | includes dues and gifts. The term does not include: |
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62 | 62 | | (A) a loan made in the due course of business by a |
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63 | 63 | | corporation that is legally engaged in the business of lending |
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64 | 64 | | money and that has conducted the business continuously for more |
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65 | 65 | | than one year before the loan is made; |
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66 | 66 | | (B) a commercial transaction involving the |
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67 | 67 | | transfer for consideration of anything of value pursuant to a |
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68 | 68 | | contract or agreement that reflects the usual and normal business |
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69 | 69 | | practice of an industry; or |
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70 | 70 | | (C) an expenditure required to be reported in a |
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71 | 71 | | lobbying activities report filed with the commission. |
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72 | 72 | | (6) "Contribution in connection with campaign |
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73 | 73 | | activity" means a contribution from a donor to a person or group |
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74 | 74 | | that, at the time that the donor makes the contribution, the donor |
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75 | 75 | | knows or has reason to know may be used to make a political |
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76 | 76 | | contribution or political expenditure or may be commingled with |
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77 | 77 | | other funds used to make a political contribution or political |
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78 | 78 | | expenditure. A donor who signs a statement indicating that the |
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79 | 79 | | donor's contribution to the person or group may not be used to make |
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80 | 80 | | a political contribution or political expenditure does not have |
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81 | 81 | | reason to know that the donor's contribution may be used to make a |
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82 | 82 | | political contribution or political expenditure. |
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83 | 83 | | (7) "Direct campaign expenditure" means a campaign |
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84 | 84 | | expenditure that does not constitute a campaign contribution by the |
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85 | 85 | | person making the expenditure. |
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86 | 86 | | (8) "Donor" means a person who makes a contribution to |
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87 | 87 | | a person or group to whom this section applies, regardless of |
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88 | 88 | | whether the person making the contribution is a member of the person |
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89 | 89 | | or group that accepts the contribution. |
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90 | 90 | | (9) "Expenditure" means a payment of money or any |
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91 | 91 | | other thing of value and includes an agreement made or other |
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92 | 92 | | obligation incurred, whether legally enforceable or not, to make a |
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93 | 93 | | payment. |
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94 | 94 | | (10) "General-purpose committee" means a political |
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95 | 95 | | committee that has among its principal purposes: |
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96 | 96 | | (A) supporting or opposing: |
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97 | 97 | | (i) two or more candidates who are |
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98 | 98 | | unidentified or are seeking offices that are unknown; or |
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99 | 99 | | (ii) one or more measures that are |
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100 | 100 | | unidentified; or |
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101 | 101 | | (B) assisting two or more officeholders who are |
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102 | 102 | | unidentified. |
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103 | 103 | | (11) "Labor organization" means an agency, committee, |
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104 | 104 | | or any other organization in which employees participate that |
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105 | 105 | | exists for the purpose, in whole or in part, of dealing with |
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106 | 106 | | employers concerning grievances, labor disputes, wages, rates of |
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107 | 107 | | pay, hours of employment, or conditions of work. |
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108 | 108 | | (12) "Measure" means a question or proposal submitted |
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109 | 109 | | in an election for an expression of the voters' will and includes |
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110 | 110 | | the circulation and submission of a petition to determine whether a |
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111 | 111 | | question or proposal is required to be submitted in an election for |
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112 | 112 | | an expression of the voters' will. |
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113 | 113 | | (13) "Officeholder contribution" means a contribution |
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114 | 114 | | to an officeholder or political committee that is offered or given |
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115 | 115 | | with the intent that it be used to defray expenses that: |
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116 | 116 | | (A) are incurred by the officeholder in |
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117 | 117 | | performing a duty or engaging in an activity in connection with the |
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118 | 118 | | office; and |
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119 | 119 | | (B) are not reimbursable with public money. |
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120 | 120 | | (14) "Officeholder expenditure" means an expenditure |
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121 | 121 | | made by any person to defray expenses that: |
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122 | 122 | | (A) are incurred by an officeholder in performing |
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123 | 123 | | a duty or engaging in an activity in connection with the office; and |
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124 | 124 | | (B) are not reimbursable with public money. |
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125 | 125 | | (15) "Political committee" means a group of persons |
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126 | 126 | | that has as a principal purpose accepting political contributions |
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127 | 127 | | or making political expenditures. |
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128 | 128 | | (16) "Political contribution" means a campaign |
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129 | 129 | | contribution or an officeholder contribution. |
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130 | 130 | | (17) "Political expenditure" means a campaign |
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131 | 131 | | expenditure or an officeholder expenditure. |
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132 | 132 | | (18) "Reportable activity" means a political |
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133 | 133 | | contribution, political expenditure, or other activity required to |
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134 | 134 | | be reported under state law regulating political funds and |
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135 | 135 | | campaigns. |
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136 | 136 | | (b) This section applies only to a person or group that: |
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137 | 137 | | (1) is not a political committee; |
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138 | 138 | | (2) accepts one or more contributions in connection |
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139 | 139 | | with campaign activity from a person that in the aggregate exceed |
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140 | 140 | | $2,000 during a reporting period; and |
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141 | 141 | | (3) makes one or more political expenditures that in |
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142 | 142 | | the aggregate exceed $25,000 during a calendar year, excluding: |
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143 | 143 | | (A) a direct campaign expenditure that a |
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144 | 144 | | corporation or labor organization makes from its own property for |
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145 | 145 | | the purpose of communicating directly with its stockholders or |
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146 | 146 | | members, as applicable, or with the families of its stockholders or |
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147 | 147 | | members; |
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148 | 148 | | (B) an expenditure that a corporation or labor |
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149 | 149 | | organization makes to finance nonpartisan voter registration and |
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150 | 150 | | get-out-the-vote campaigns aimed at its stockholders or members, as |
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151 | 151 | | applicable, or at the families of its stockholders or members; |
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152 | 152 | | (C) a political expenditure that a corporation or |
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153 | 153 | | labor organization, acting alone or with one or more other |
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154 | 154 | | corporations or labor organizations, as applicable, makes to |
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155 | 155 | | finance the establishment or administration of a general-purpose |
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156 | 156 | | committee; |
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157 | 157 | | (D) a political expenditure that a corporation or |
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158 | 158 | | labor organization makes to finance the solicitation of political |
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159 | 159 | | contributions from the stockholders, members, or employees, or |
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160 | 160 | | families of stockholders, members, or employees of one or more |
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161 | 161 | | corporations or labor organizations, as applicable to a |
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162 | 162 | | general-purpose committee described by Paragraph (C) of this |
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163 | 163 | | subdivision; and |
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164 | 164 | | (E) a contribution made by a corporation or labor |
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165 | 165 | | organization from its own property to a political party to be used |
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166 | 166 | | by the political party only to: |
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167 | 167 | | (i) defray normal overhead and |
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168 | 168 | | administrative or operating costs incurred by the party; or |
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169 | 169 | | (ii) administer a primary election or |
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170 | 170 | | convention held by the party. |
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171 | 171 | | (c) Except as otherwise provided by this section, a person |
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172 | 172 | | or group shall comply with the requirements and procedures for |
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173 | 173 | | reporting political contributions and political expenditures |
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174 | 174 | | established by the legislature as if the person or group were the |
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175 | 175 | | campaign treasurer of a general-purpose committee that does not |
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176 | 176 | | file monthly reports. |
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177 | 177 | | (d) A person or group is not required to file a campaign |
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178 | 178 | | treasurer appointment for accepting contributions or making |
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179 | 179 | | political expenditures for which reporting is required under this |
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180 | 180 | | section, unless the person or group is otherwise required to file a |
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181 | 181 | | campaign treasurer appointment under state law. |
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182 | 182 | | (e) A person or group is not required to file a report under |
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183 | 183 | | this section if: |
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184 | 184 | | (1) the person or group is required to disclose the |
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185 | 185 | | contributions and political expenditures in another report of |
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186 | 186 | | political contributions and political expenditures required by |
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187 | 187 | | state law within the time applicable under this section for |
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188 | 188 | | reporting the contributions and political expenditures; or |
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189 | 189 | | (2) no reportable activity occurs during the reporting |
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190 | 190 | | period. |
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191 | 191 | | (f) Disclosure of a contribution in the manner provided by |
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192 | 192 | | the legislature for reports of political contributions and |
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193 | 193 | | political expenditures by general-purpose committees is required |
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194 | 194 | | in a report under this section only if: |
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195 | 195 | | (1) the contribution is a contribution in connection |
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196 | 196 | | with campaign activity; and |
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197 | 197 | | (2) the aggregate amount of contributions in |
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198 | 198 | | connection with campaign activity accepted from a person exceeds |
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199 | 199 | | $2,000 during the reporting period. |
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200 | 200 | | (g) A report required under this section is not required to |
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201 | 201 | | include: |
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202 | 202 | | (1) any contributions accepted by the person or group |
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203 | 203 | | that are not contributions in connection with campaign activity; |
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204 | 204 | | (2) the total amount of unitemized political |
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205 | 205 | | contributions accepted by the person or group; |
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206 | 206 | | (3) the total amount of political contributions |
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207 | 207 | | maintained by the person or group; |
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208 | 208 | | (4) any expenditures made by the person or group that |
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209 | 209 | | are not political expenditures; |
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210 | 210 | | (5) the total amount of unitemized political |
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211 | 211 | | expenditures made by the person or group; or |
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212 | 212 | | (6) the principal amount of all of the person's or |
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213 | 213 | | group's outstanding loans. |
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214 | 214 | | (h) The first report required to be filed in a calendar year |
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215 | 215 | | in which the $2,000 or $25,000 threshold under Subsection (b) of |
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216 | 216 | | this section is exceeded must include all contributions in |
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217 | 217 | | connection with campaign activity accepted from a person that in |
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218 | 218 | | the aggregate exceed $2,000 and all political expenditures made in |
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219 | 219 | | the 12 months immediately preceding the acceptance of the |
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220 | 220 | | contribution in connection with campaign activity or the making of |
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221 | 221 | | the political expenditure that triggers the reporting requirements |
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222 | 222 | | of this section and not previously reported as required under this |
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223 | 223 | | section. |
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224 | 224 | | (i) A contribution consisting of personal travel expense |
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225 | 225 | | incurred by an individual is not required to be reported under this |
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226 | 226 | | section if the individual receives no reimbursement for the |
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227 | 227 | | expense. |
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228 | 228 | | (j) A contribution consisting of an individual's personal |
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229 | 229 | | service is not required to be reported under this section if the |
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230 | 230 | | individual receives no compensation for the service. |
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231 | 231 | | (k) A person to whom this section applies and who, not |
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232 | 232 | | acting in concert with another person, makes one or more direct |
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233 | 233 | | campaign expenditures in an election from the person's own property |
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234 | 234 | | is not required to comply with any requirements or procedures |
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235 | 235 | | established by the legislature for separately reporting the direct |
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236 | 236 | | campaign expenditures. |
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237 | 237 | | (l) Any state law generally applicable to reports of |
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238 | 238 | | political contributions and political expenditures filed with the |
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239 | 239 | | commission, including any penalty provision for untimely or |
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240 | 240 | | incomplete reports, is applicable to a report filed under this |
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241 | 241 | | section. |
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242 | 242 | | SECTION 2. The following temporary provision is added to |
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243 | 243 | | the Texas Constitution: |
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244 | 244 | | TEMPORARY PROVISION. (a) This temporary provision applies |
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245 | 245 | | to the constitutional amendment proposed by the 85th Legislature, |
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246 | 246 | | Regular Session, 2017, requiring certain persons or groups who are |
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247 | 247 | | not political committees to report certain contributions and |
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248 | 248 | | political expenditures. |
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249 | 249 | | (b) The constitutional amendment takes effect January 1, |
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250 | 250 | | 2018. |
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251 | 251 | | (c) The change in law made by this amendment applies only to |
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252 | 252 | | the reporting of a contribution in connection with campaign |
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253 | 253 | | activity or political expenditure made on or after the effective |
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254 | 254 | | date of the amendment. A contribution or expenditure made before |
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255 | 255 | | the effective date of the amendment is governed by the law in effect |
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256 | 256 | | when the contribution or expenditure was made, and the former law is |
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257 | 257 | | continued in effect for that purpose. |
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258 | 258 | | (d) This temporary provision expires January 1, 2019. |
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259 | 259 | | SECTION 3. This proposed constitutional amendment shall be |
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260 | 260 | | submitted to the voters at an election to be held November 7, 2017. |
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261 | 261 | | The ballot shall be printed to provide for voting for or against the |
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262 | 262 | | proposition: "The constitutional amendment requiring certain |
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263 | 263 | | persons or groups to report certain contributions and political |
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264 | 264 | | expenditures." |
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