Texas 2017 - 85th Regular

Texas House Bill HJR112 Compare Versions

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11 85R2285 EES-D
22 By: Cook H.J.R. No. 112
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55 A JOINT RESOLUTION
66 proposing a constitutional amendment requiring certain persons or
77 groups to report certain contributions and political expenditures.
88 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
99 SECTION 1. Article XVI, Texas Constitution, is amended by
1010 adding Section 75 to read as follows:
1111 Sec. 75. (a) In this section:
1212 (1) "Campaign contribution" means a contribution to a
1313 candidate or political committee that is offered or given with the
1414 intent that it be used in connection with a campaign for elective
1515 office or on a measure. Whether a contribution is made before,
1616 during, or after an election does not affect its status as a
1717 campaign contribution.
1818 (2) "Campaign expenditure" means an expenditure made
1919 by any person in connection with a campaign for an elective office
2020 or on a measure. Whether an expenditure is made before, during, or
2121 after an election does not affect its status as a campaign
2222 expenditure.
2323 (3) "Candidate" means a person who knowingly and
2424 willingly takes affirmative action for the purpose of gaining
2525 nomination or election to public office or for the purpose of
2626 satisfying financial obligations incurred by the person in
2727 connection with the campaign for nomination or election. Examples
2828 of affirmative action include:
2929 (A) the filing of a campaign treasurer
3030 appointment, except that the filing does not constitute candidacy
3131 or an announcement of candidacy for purposes of the automatic
3232 resignation provisions of Section 65 of this article or Section 11,
3333 Article XI;
3434 (B) the filing of an application for a place on a
3535 ballot;
3636 (C) the filing of an application for nomination
3737 by convention;
3838 (D) the filing of a declaration of intent to
3939 become an independent candidate or a declaration of write-in
4040 candidacy;
4141 (E) the making of a public announcement of a
4242 definite intent to run for public office in a particular election,
4343 regardless of whether the specific office is mentioned in the
4444 announcement;
4545 (F) before a public announcement of intent, the
4646 making of a statement of definite intent to run for public office
4747 and the soliciting of support by letter or other mode of
4848 communication;
4949 (G) the soliciting or accepting of a campaign
5050 contribution or the making of a campaign expenditure; and
5151 (H) the seeking of the nomination of an executive
5252 committee of a political party to fill a vacancy.
5353 (4) "Commission" means the Texas Ethics Commission.
5454 (5) "Contribution" means a direct or indirect transfer
5555 of money, goods, services, or any other thing of value and includes
5656 an agreement made or other obligation incurred, whether legally
5757 enforceable or not, to make a transfer. The term includes a loan or
5858 extension of credit, other than those expressly excluded by this
5959 subdivision, and a guarantee of a loan or extension of credit,
6060 including a loan described by this subdivision. The term also
6161 includes dues and gifts. The term does not include:
6262 (A) a loan made in the due course of business by a
6363 corporation that is legally engaged in the business of lending
6464 money and that has conducted the business continuously for more
6565 than one year before the loan is made;
6666 (B) a commercial transaction involving the
6767 transfer for consideration of anything of value pursuant to a
6868 contract or agreement that reflects the usual and normal business
6969 practice of an industry; or
7070 (C) an expenditure required to be reported in a
7171 lobbying activities report filed with the commission.
7272 (6) "Contribution in connection with campaign
7373 activity" means a contribution from a donor to a person or group
7474 that, at the time that the donor makes the contribution, the donor
7575 knows or has reason to know may be used to make a political
7676 contribution or political expenditure or may be commingled with
7777 other funds used to make a political contribution or political
7878 expenditure. A donor who signs a statement indicating that the
7979 donor's contribution to the person or group may not be used to make
8080 a political contribution or political expenditure does not have
8181 reason to know that the donor's contribution may be used to make a
8282 political contribution or political expenditure.
8383 (7) "Direct campaign expenditure" means a campaign
8484 expenditure that does not constitute a campaign contribution by the
8585 person making the expenditure.
8686 (8) "Donor" means a person who makes a contribution to
8787 a person or group to whom this section applies, regardless of
8888 whether the person making the contribution is a member of the person
8989 or group that accepts the contribution.
9090 (9) "Expenditure" means a payment of money or any
9191 other thing of value and includes an agreement made or other
9292 obligation incurred, whether legally enforceable or not, to make a
9393 payment.
9494 (10) "General-purpose committee" means a political
9595 committee that has among its principal purposes:
9696 (A) supporting or opposing:
9797 (i) two or more candidates who are
9898 unidentified or are seeking offices that are unknown; or
9999 (ii) one or more measures that are
100100 unidentified; or
101101 (B) assisting two or more officeholders who are
102102 unidentified.
103103 (11) "Labor organization" means an agency, committee,
104104 or any other organization in which employees participate that
105105 exists for the purpose, in whole or in part, of dealing with
106106 employers concerning grievances, labor disputes, wages, rates of
107107 pay, hours of employment, or conditions of work.
108108 (12) "Measure" means a question or proposal submitted
109109 in an election for an expression of the voters' will and includes
110110 the circulation and submission of a petition to determine whether a
111111 question or proposal is required to be submitted in an election for
112112 an expression of the voters' will.
113113 (13) "Officeholder contribution" means a contribution
114114 to an officeholder or political committee that is offered or given
115115 with the intent that it be used to defray expenses that:
116116 (A) are incurred by the officeholder in
117117 performing a duty or engaging in an activity in connection with the
118118 office; and
119119 (B) are not reimbursable with public money.
120120 (14) "Officeholder expenditure" means an expenditure
121121 made by any person to defray expenses that:
122122 (A) are incurred by an officeholder in performing
123123 a duty or engaging in an activity in connection with the office; and
124124 (B) are not reimbursable with public money.
125125 (15) "Political committee" means a group of persons
126126 that has as a principal purpose accepting political contributions
127127 or making political expenditures.
128128 (16) "Political contribution" means a campaign
129129 contribution or an officeholder contribution.
130130 (17) "Political expenditure" means a campaign
131131 expenditure or an officeholder expenditure.
132132 (18) "Reportable activity" means a political
133133 contribution, political expenditure, or other activity required to
134134 be reported under state law regulating political funds and
135135 campaigns.
136136 (b) This section applies only to a person or group that:
137137 (1) is not a political committee;
138138 (2) accepts one or more contributions in connection
139139 with campaign activity from a person that in the aggregate exceed
140140 $2,000 during a reporting period; and
141141 (3) makes one or more political expenditures that in
142142 the aggregate exceed $25,000 during a calendar year, excluding:
143143 (A) a direct campaign expenditure that a
144144 corporation or labor organization makes from its own property for
145145 the purpose of communicating directly with its stockholders or
146146 members, as applicable, or with the families of its stockholders or
147147 members;
148148 (B) an expenditure that a corporation or labor
149149 organization makes to finance nonpartisan voter registration and
150150 get-out-the-vote campaigns aimed at its stockholders or members, as
151151 applicable, or at the families of its stockholders or members;
152152 (C) a political expenditure that a corporation or
153153 labor organization, acting alone or with one or more other
154154 corporations or labor organizations, as applicable, makes to
155155 finance the establishment or administration of a general-purpose
156156 committee;
157157 (D) a political expenditure that a corporation or
158158 labor organization makes to finance the solicitation of political
159159 contributions from the stockholders, members, or employees, or
160160 families of stockholders, members, or employees of one or more
161161 corporations or labor organizations, as applicable to a
162162 general-purpose committee described by Paragraph (C) of this
163163 subdivision; and
164164 (E) a contribution made by a corporation or labor
165165 organization from its own property to a political party to be used
166166 by the political party only to:
167167 (i) defray normal overhead and
168168 administrative or operating costs incurred by the party; or
169169 (ii) administer a primary election or
170170 convention held by the party.
171171 (c) Except as otherwise provided by this section, a person
172172 or group shall comply with the requirements and procedures for
173173 reporting political contributions and political expenditures
174174 established by the legislature as if the person or group were the
175175 campaign treasurer of a general-purpose committee that does not
176176 file monthly reports.
177177 (d) A person or group is not required to file a campaign
178178 treasurer appointment for accepting contributions or making
179179 political expenditures for which reporting is required under this
180180 section, unless the person or group is otherwise required to file a
181181 campaign treasurer appointment under state law.
182182 (e) A person or group is not required to file a report under
183183 this section if:
184184 (1) the person or group is required to disclose the
185185 contributions and political expenditures in another report of
186186 political contributions and political expenditures required by
187187 state law within the time applicable under this section for
188188 reporting the contributions and political expenditures; or
189189 (2) no reportable activity occurs during the reporting
190190 period.
191191 (f) Disclosure of a contribution in the manner provided by
192192 the legislature for reports of political contributions and
193193 political expenditures by general-purpose committees is required
194194 in a report under this section only if:
195195 (1) the contribution is a contribution in connection
196196 with campaign activity; and
197197 (2) the aggregate amount of contributions in
198198 connection with campaign activity accepted from a person exceeds
199199 $2,000 during the reporting period.
200200 (g) A report required under this section is not required to
201201 include:
202202 (1) any contributions accepted by the person or group
203203 that are not contributions in connection with campaign activity;
204204 (2) the total amount of unitemized political
205205 contributions accepted by the person or group;
206206 (3) the total amount of political contributions
207207 maintained by the person or group;
208208 (4) any expenditures made by the person or group that
209209 are not political expenditures;
210210 (5) the total amount of unitemized political
211211 expenditures made by the person or group; or
212212 (6) the principal amount of all of the person's or
213213 group's outstanding loans.
214214 (h) The first report required to be filed in a calendar year
215215 in which the $2,000 or $25,000 threshold under Subsection (b) of
216216 this section is exceeded must include all contributions in
217217 connection with campaign activity accepted from a person that in
218218 the aggregate exceed $2,000 and all political expenditures made in
219219 the 12 months immediately preceding the acceptance of the
220220 contribution in connection with campaign activity or the making of
221221 the political expenditure that triggers the reporting requirements
222222 of this section and not previously reported as required under this
223223 section.
224224 (i) A contribution consisting of personal travel expense
225225 incurred by an individual is not required to be reported under this
226226 section if the individual receives no reimbursement for the
227227 expense.
228228 (j) A contribution consisting of an individual's personal
229229 service is not required to be reported under this section if the
230230 individual receives no compensation for the service.
231231 (k) A person to whom this section applies and who, not
232232 acting in concert with another person, makes one or more direct
233233 campaign expenditures in an election from the person's own property
234234 is not required to comply with any requirements or procedures
235235 established by the legislature for separately reporting the direct
236236 campaign expenditures.
237237 (l) Any state law generally applicable to reports of
238238 political contributions and political expenditures filed with the
239239 commission, including any penalty provision for untimely or
240240 incomplete reports, is applicable to a report filed under this
241241 section.
242242 SECTION 2. The following temporary provision is added to
243243 the Texas Constitution:
244244 TEMPORARY PROVISION. (a) This temporary provision applies
245245 to the constitutional amendment proposed by the 85th Legislature,
246246 Regular Session, 2017, requiring certain persons or groups who are
247247 not political committees to report certain contributions and
248248 political expenditures.
249249 (b) The constitutional amendment takes effect January 1,
250250 2018.
251251 (c) The change in law made by this amendment applies only to
252252 the reporting of a contribution in connection with campaign
253253 activity or political expenditure made on or after the effective
254254 date of the amendment. A contribution or expenditure made before
255255 the effective date of the amendment is governed by the law in effect
256256 when the contribution or expenditure was made, and the former law is
257257 continued in effect for that purpose.
258258 (d) This temporary provision expires January 1, 2019.
259259 SECTION 3. This proposed constitutional amendment shall be
260260 submitted to the voters at an election to be held November 7, 2017.
261261 The ballot shall be printed to provide for voting for or against the
262262 proposition: "The constitutional amendment requiring certain
263263 persons or groups to report certain contributions and political
264264 expenditures."