Texas 2017 - 85th 1st C.S.

Texas House Bill HB16 Compare Versions

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1	1	85S11084 EES-D
2	2	By: Davis of Harris H.B. No. 16
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the ethics of public servants, including the authority
8	8	and duties of the Texas Ethics Commission, the regulation of
9	9	certain contributions and expenditures, and the reporting of
10	10	political contributions and political expenditures and personal
11	11	financial information; creating a criminal offense.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Section 251.005(d), Election Code, is amended to
14	14	read as follows:
15	15	(d) An out-of-state political committee that does not file a
16	16	campaign treasurer appointment shall comply with Sections
17	17	[Section] 254.1581, 254.161, and 254.261.
18	18	SECTION 2. Subchapter A, Chapter 253, Election Code, is
19	19	amended by adding Section 253.006 to read as follows:
20	20	Sec. 253.006. UNLAWFUL USE OF PUBLIC FUNDS FOR
21	21	CONTRIBUTIONS OR EXPENDITURES. (a) An officer or employee of a
22	22	political subdivision may not spend or authorize the spending of
23	23	public funds to make a political contribution or a political
24	24	expenditure.
25	25	(b) An officer or employee of a political subdivision may
26	26	not directly or indirectly employ a person to use public funds to
27	27	make an unlawful political contribution or political expenditure.
28	28	(c) A person who violates Subsection (a) or (b) commits an
29	29	offense. An offense under this section is a Class A misdemeanor.
30	30	SECTION 3. Subchapter D, Chapter 253, Election Code, is
31	31	amended by adding Section 253.105 to read as follows:
32	32	Sec. 253.105. CONTRIBUTIONS TO DIRECT EXPENDITURE ONLY
33	33	COMMITTEES. A corporation or labor organization may make a
34	34	political contribution from its own property to a political
35	35	committee that:
36	36	(1) is not established or controlled by a candidate or
37	37	an officeholder;
38	38	(2) makes or intends to make direct campaign
39	39	expenditures;
40	40	(3) does not make or intend to make political
41	41	contributions to:
42	42	(A) a candidate;
43	43	(B) an officeholder;
44	44	(C) a specific-purpose committee established or
45	45	controlled by a candidate or an officeholder; or
46	46	(D) a political committee that makes or intends
47	47	to make political contributions to a candidate, an officeholder, or
48	48	a specific-purpose committee established or controlled by a
49	49	candidate or an officeholder; and
50	50	(4) has filed an affidavit with the commission stating
51	51	the committee's intention to operate as described by Subdivisions
52	52	(2) and (3).
53	53	SECTION 4. Section 254.161, Election Code, is amended to
54	54	read as follows:
55	55	Sec. 254.161. NOTICE TO CANDIDATE AND OFFICEHOLDER OF
56	56	CONTRIBUTIONS AND EXPENDITURES. If a general-purpose committee
57	57	other than the principal political committee of a political party
58	58	or a political committee established by a political party's county
59	59	executive committee accepts political contributions or makes
60	60	political expenditures for a candidate or officeholder, notice of
61	61	that fact shall be given to the affected candidate or officeholder
62	62	as provided by Section 254.128 for a specific-purpose committee.
63	63	An out-of-state political committee that is required to comply with
64	64	this section shall designate an officer of the committee to provide
65	65	the notice.
66	66	SECTION 5. Section 254.261, Election Code, is amended by
67	67	adding Subsection (e) to read as follows:
68	68	(e) This section applies to an out-of-state political
69	69	committee that does not file a campaign treasurer appointment.
70	70	SECTION 6. Section 302.021(a), Government Code, is amended
71	71	to read as follows:
72	72	(a) A speaker candidate or former speaker candidate commits
73	73	an offense if the person:
74	74	(1) knowingly fails to file the declaration of
75	75	candidacy required by Section 302.0121;
76	76	(2) knowingly fails to file the statement required by
77	77	Section 302.013;
78	78	(3) knowingly accepts a contribution, loan, or promise
79	79	of a contribution or loan in violation of Section 302.0121(c);
80	80	(4) [knowingly accepts a contribution, loan, or
81	81	promise of a contribution or loan prohibited by Section 302.017
82	82	from a corporation, partnership, association, firm, union,
83	83	foundation, committee, club, or other organization or group of
84	84	persons;
85	85	[(5)] knowingly accepts a contribution from a person
86	86	who uses political contributions, interest earned on political
87	87	contributions, or an asset purchased with political contributions
88	88	to make the contribution in violation of Section 302.0191;
89	89	(5) [(6)] expends campaign funds for any purpose other
90	90	than those enumerated in Section 302.020;
91	91	(6) [(7)] knowingly retains contributions, assets
92	92	purchased with contributions, or interest or other income earned on
93	93	contributions in violation of Section 302.0201(b); or
94	94	(7) [(8)] knowingly fails to file the report of
95	95	unexpended campaign funds as required by Section 302.0201(d).
96	96	SECTION 7. Subchapter B, Chapter 571, Government Code, is
97	97	amended by adding Section 571.033 to read as follows:
98	98	Sec. 571.033. NOTIFICATION PROCEDURES. (a) Except as
99	99	provided by Subsection (b), the commission may adopt rules
100	100	prescribing how the commission will notify any person or provide
101	101	any notice required by this subtitle, Chapter 305, or Title 15,
102	102	Election Code.
103	103	(b) Subsection (a) does not authorize the commission to
104	104	adopt rules prescribing how the commission will notify any person
105	105	or provide any notice required by Subchapter E or F of this chapter
106	106	or how the commission will issue a warning of liability under
107	107	Section 254.042(b), Election Code.
108	108	SECTION 8. Section 571.071, Government Code, is amended by
109	109	amending Subsection (c) and adding Subsection (d) to read as
110	110	follows:
111	111	(c) The commission may provide a seminar for persons
112	112	required to register under Chapter 305 that addresses issues
113	113	involving lobbying, political contributions and expenditures, and
114	114	other issues as determined by the commission. The commission may
115	115	charge a fee for attending the seminar in an amount necessary to
116	116	cover the costs associated with the seminar, including the cost of
117	117	providing food or nonalcoholic beverages to attendees.
118	118	(d) The commission may provide a seminar that addresses the
119	119	laws administered and enforced by the commission and any other
120	120	relevant laws, as determined by the commission. The commission may
121	121	charge a fee for attending the seminar in an amount necessary to
122	122	cover the costs associated with the seminar, including the cost of
123	123	providing food or nonalcoholic beverages to attendees.
124	124	SECTION 9. Section 572.023(b), Government Code, as
125	125	effective until January 8, 2019, is amended to read as follows:
126	126	(b) The account of financial activity consists of:
127	127	(1) a list of all sources of occupational income,
128	128	identified by employer, or if self-employed, by the nature of the
129	129	occupation, including identification of a person or other
130	130	organization from which the individual or a business in which the
131	131	individual has a substantial interest received a fee as a retainer
132	132	for a claim on future services in case of need, as distinguished
133	133	from a fee for services on a matter specified at the time of
134	134	contracting for or receiving the fee, if professional or
135	135	occupational services are not actually performed during the
136	136	reporting period equal to or in excess of the amount of the
137	137	retainer, and the category of the amount of the fee;
138	138	(2) identification by name and the category of the
139	139	greatest number of shares of stock of any nonpublicly traded
140	140	business entity held or acquired, and if sold, the category of the
141	141	amount of net gain or loss realized from the sale;
142	142	(2-a) identification by stock symbol and the category
143	143	of the number of shares of stock of any publicly traded corporation
144	144	held;
145	145	(3) a list of all bonds, notes, and other commercial
146	146	paper held or acquired, and if sold, the category of the amount of
147	147	net gain or loss realized from the sale;
148	148	(4) identification of each source and the category of
149	149	the amount of income in excess of $500 derived from each source from
150	150	interest, dividends, royalties, and rents;
151	151	(5) identification of each guarantor of a loan and
152	152	identification of each person or financial institution to whom a
153	153	personal note or notes or lease agreement for a total financial
154	154	liability in excess of $1,000 existed at any time during the year
155	155	and the category of the amount of the liability;
156	156	(6) identification by description of all beneficial
157	157	interests in real property and business entities held or acquired,
158	158	and if sold, the category of the amount of the net gain or loss
159	159	realized from the sale;
160	160	(7) identification of a person or other organization
161	161	from which the individual or the individual's spouse or dependent
162	162	children received a gift of anything of value in excess of $250 and
163	163	a description of each gift, except:
164	164	(A) a gift received from an individual related to
165	165	the individual at any time within the second degree by
166	166	consanguinity or affinity, as determined under Subchapter B,
167	167	Chapter 573;
168	168	(B) a political contribution that was reported as
169	169	required by Chapter 254, Election Code; and
170	170	(C) an expenditure required to be reported by a
171	171	person required to be registered under Chapter 305;
172	172	(8) identification of the source and the category of
173	173	the amount of all income received as beneficiary of a trust, other
174	174	than a blind trust that complies with Subsection (c), and
175	175	identification of each trust asset, if known to the beneficiary,
176	176	from which income was received by the beneficiary in excess of $500;
177	177	(9) identification by description and the category of
178	178	the amount of all assets and liabilities of a corporation, firm,
179	179	partnership, limited partnership, limited liability partnership,
180	180	professional corporation, professional association, joint venture,
181	181	or other business association in which 50 percent or more of the
182	182	outstanding ownership was held, acquired, or sold;
183	183	(10) a list of all boards of directors of which the
184	184	individual is a member and executive positions that the individual
185	185	holds in corporations, firms, partnerships, limited partnerships,
186	186	limited liability partnerships, professional corporations,
187	187	professional associations, joint ventures, or other business
188	188	associations or proprietorships, stating the name of each
189	189	corporation, firm, partnership, limited partnership, limited
190	190	liability partnership, professional corporation, professional
191	191	association, joint venture, or other business association or
192	192	proprietorship and the position held;
193	193	(11) identification of any person providing
194	194	transportation, meals, or lodging expenses permitted under Section
195	195	36.07(b), Penal Code, and the amount of those expenses, other than
196	196	expenditures required to be reported under Chapter 305;
197	197	(12) any corporation, firm, partnership, limited
198	198	partnership, limited liability partnership, professional
199	199	corporation, professional association, joint venture, or other
200	200	business association, excluding a publicly held corporation, in
201	201	which both the individual and a person registered under Chapter 305
202	202	have an interest;
203	203	(13) identification by name and the category of the
204	204	number of shares of any mutual fund held or acquired, and if sold,
205	205	the category of the amount of net gain or loss realized from the
206	206	sale; and
207	207	(14) identification of each blind trust that complies
208	208	with Subsection (c), including:
209	209	(A) the category of the fair market value of the
210	210	trust;
211	211	(B) the date the trust was created;
212	212	(C) the name and address of the trustee; and
213	213	(D) a statement signed by the trustee, under
214	214	penalty of perjury, stating that:
215	215	(i) the trustee has not revealed any
216	216	information to the individual, except information that may be
217	217	disclosed under Subdivision (8); and
218	218	(ii) to the best of the trustee's knowledge,
219	219	the trust complies with this section.
220	220	SECTION 10. Section 572.023(b), Government Code, as
221	221	effective January 8, 2019, is amended to read as follows:
222	222	(b) The account of financial activity consists of:
223	223	(1) a list of all sources of occupational income,
224	224	identified by employer, or if self-employed, by the nature of the
225	225	occupation, including identification of a person or other
226	226	organization from which the individual or a business in which the
227	227	individual has a substantial interest received a fee as a retainer
228	228	for a claim on future services in case of need, as distinguished
229	229	from a fee for services on a matter specified at the time of
230	230	contracting for or receiving the fee, if professional or
231	231	occupational services are not actually performed during the
232	232	reporting period equal to or in excess of the amount of the
233	233	retainer, and the category of the amount of the fee;
234	234	(2) identification by name and the category of the
235	235	greatest number of shares of stock of any nonpublicly traded
236	236	business entity held or acquired, and if sold, the category of the
237	237	amount of net gain or loss realized from the sale;
238	238	(2-a) identification by stock symbol and the category
239	239	of the number of shares of stock of any publicly traded corporation
240	240	held;
241	241	(3) a list of all bonds, notes, and other commercial
242	242	paper held or acquired, and if sold, the category of the amount of
243	243	net gain or loss realized from the sale;
244	244	(4) identification of each source and the category of
245	245	the amount of income in excess of $500 derived from each source from
246	246	interest, dividends, royalties, and rents;
247	247	(5) identification of each guarantor of a loan and
248	248	identification of each person or financial institution to whom a
249	249	personal note or notes or lease agreement for a total financial
250	250	liability in excess of $1,000 existed at any time during the year
251	251	and the category of the amount of the liability;
252	252	(6) identification by description of all beneficial
253	253	interests in real property and business entities held or acquired,
254	254	and if sold, the category of the amount of the net gain or loss
255	255	realized from the sale;
256	256	(7) identification of a person or other organization
257	257	from which the individual or the individual's spouse or dependent
258	258	children received a gift of anything of value in excess of $250 and
259	259	a description of each gift, except:
260	260	(A) a gift received from an individual related to
261	261	the individual at any time within the second degree by
262	262	consanguinity or affinity, as determined under Subchapter B,
263	263	Chapter 573;
264	264	(B) a political contribution that was reported as
265	265	required by Chapter 254, Election Code; and
266	266	(C) an expenditure required to be reported by a
267	267	person required to be registered under Chapter 305;
268	268	(8) identification of the source and the category of
269	269	the amount of all income received as beneficiary of a trust, other
270	270	than a blind trust that complies with Subsection (c), and
271	271	identification of each trust asset, if known to the beneficiary,
272	272	from which income was received by the beneficiary in excess of $500;
273	273	(9) identification:
274	274	(A) by description of a corporation, firm,
275	275	partnership, limited partnership, limited liability partnership,
276	276	professional corporation, professional association, joint venture,
277	277	or other business association in which five percent or more of the
278	278	outstanding ownership was held, acquired, or sold; and
279	279	(B) by description and the category of the amount
280	280	of all assets and liabilities of a corporation, firm, partnership,
281	281	limited partnership, limited liability partnership, professional
282	282	corporation, professional association, joint venture, or other
283	283	business association in which 50 percent or more of the outstanding
284	284	ownership was held, acquired, or sold;
285	285	(10) a list of all boards of directors of which the
286	286	individual is a member and executive positions that the individual
287	287	holds in corporations, firms, partnerships, limited partnerships,
288	288	limited liability partnerships, professional corporations,
289	289	professional associations, joint ventures, or other business
290	290	associations or proprietorships, stating the name of each
291	291	corporation, firm, partnership, limited partnership, limited
292	292	liability partnership, professional corporation, professional
293	293	association, joint venture, or other business association or
294	294	proprietorship and the position held;
295	295	(11) identification of any person providing
296	296	transportation, meals, or lodging expenses permitted under Section
297	297	36.07(b), Penal Code, and the amount of those expenses, other than
298	298	expenditures required to be reported under Chapter 305;
299	299	(12) any corporation, firm, partnership, limited
300	300	partnership, limited liability partnership, professional
301	301	corporation, professional association, joint venture, or other
302	302	business association, excluding a publicly held corporation, in
303	303	which both the individual and a person registered under Chapter 305
304	304	have an interest;
305	305	(13) identification by name and the category of the
306	306	number of shares of any mutual fund held or acquired, and if sold,
307	307	the category of the amount of net gain or loss realized from the
308	308	sale;
309	309	(14) identification of each blind trust that complies
310	310	with Subsection (c), including:
311	311	(A) the category of the fair market value of the
312	312	trust;
313	313	(B) the date the trust was created;
314	314	(C) the name and address of the trustee; and
315	315	(D) a statement signed by the trustee, under
316	316	penalty of perjury, stating that:
317	317	(i) the trustee has not revealed any
318	318	information to the individual, except information that may be
319	319	disclosed under Subdivision (8); and
320	320	(ii) to the best of the trustee's knowledge,
321	321	the trust complies with this section;
322	322	(15) if the aggregate cost of goods or services sold
323	323	under one or more written contracts described by this subdivision
324	324	exceeds $10,000 in the year covered by the report, identification
325	325	of each written contract, including the name of each party to the
326	326	contract:
327	327	(A) for the sale of goods or services in the
328	328	amount of $2,500 or more;
329	329	(B) to which the individual, the individual's
330	330	spouse, the individual's dependent child, or any business entity of
331	331	which the individual, the individual's spouse, or the individual's
332	332	dependent child, independently or in conjunction with one or more
333	333	persons described by this subsection, has at least a 50 percent
334	334	ownership interest is a party; and
335	335	(C) with:
336	336	(i) a governmental entity; or
337	337	(ii) a person who contracts with a
338	338	governmental entity, if the individual or entity described by
339	339	Paragraph (B) performs work arising out of the contract,
340	340	subcontract, or agreement between the person and the governmental
341	341	entity for a fee; and
342	342	(16) if the individual is a member of the legislature
343	343	and provides bond counsel services to an issuer, as defined by
344	344	Section 1201.002(1), identification of the following for each
345	345	issuance for which the individual served as bond counsel:
346	346	(A) the amount of the issuance;
347	347	(B) the name of the issuer;
348	348	(C) the date of the issuance;
349	349	(D) the amount of fees paid to the individual,
350	350	and whether the amount is:
351	351	(i) less than $5,000;
352	352	(ii) at least $5,000 but less than $10,000;
353	353	(iii) at least $10,000 but less than
354	354	$25,000; or
355	355	(iv) $25,000 or more; and
356	356	(E) the amount of fees paid to the individual's
357	357	firm, if applicable, and whether the amount is:
358	358	(i) less than $5,000;
359	359	(ii) at least $5,000 but less than $10,000;
360	360	(iii) at least $10,000 but less than
361	361	$25,000; or
362	362	(iv) $25,000 or more.
363	363	SECTION 11. Subchapter B, Chapter 572, Government Code, is
364	364	amended by adding Section 572.0292 to read as follows:
365	365	Sec. 572.0292. RECORDKEEPING REQUIRED. (a) Each
366	366	individual who files with the commission a financial statement
367	367	required by this subchapter shall maintain a record of the
368	368	information that is necessary for filing the financial statement.
369	369	(b) An individual required to maintain a record under this
370	370	section shall preserve the record for at least three years
371	371	beginning on the filing deadline for the financial statement
372	372	containing the information in the record.
373	373	SECTION 12. The heading to Section 572.030, Government
374	374	Code, is amended to read as follows:
375	375	Sec. 572.030. PREPARATION [AND MAILING] OF FORMS; NOTICE OF
376	376	FILING REQUIREMENTS.
377	377	SECTION 13. Sections 572.030(b), (c), and (d), Government
378	378	Code, are amended to read as follows:
379	379	(b) The commission shall notify [mail to] each individual
380	380	required to file under this subchapter of [a notice that]:
381	381	(1) the requirement [states] that the individual [is
382	382	required to] file a financial statement under this subchapter;
383	383	(2) [identifies] the filing dates for the financial
384	384	statement as provided by Sections 572.026 and 572.027; and
385	385	(3) [describes] the manner in which the individual may
386	386	electronically file the financial statement and access
387	387	instructions for filing financial statements on [obtain the
388	388	financial statement forms and instructions from] the commission's
389	389	Internet website[;
390	390	[(4) states that on request of the individual, the
391	391	commission will mail to the individual a copy of the financial
392	392	statement forms and instructions; and
393	393	[(5) states, if applicable, the fee for mailing the
394	394	forms and instructions and the manner in which the individual may
395	395	pay the fee].
396	396	(c) Except as provided by commission rule, the notification
397	397	[The notice] required by Subsection (b) must be provided [mailed]:
398	398	(1) before the 30th day before the deadline for filing
399	399	the financial statement under Section 572.026(a) or (c), except as
400	400	otherwise provided by this subsection;
401	401	(2) not later than the 15th day after the applicable
402	402	deadline for filing an application for a place on the ballot or a
403	403	declaration of write-in candidacy for candidates required to file
404	404	under Section 572.027(a), (b), or (c);
405	405	(3) not later than the seventh day after the date of
406	406	appointment for individuals required to file under Section
407	407	572.026(b), or if the legislature is in session, sooner if
408	408	possible; and
409	409	(4) not later than the fifth day after the date the
410	410	certificate of nomination is filed for candidates required to file
411	411	under Section 572.027(d) [574.027(d)].
412	412	(d) Except as provided by commission rule, the [The]
413	413	commission shall mail a copy of the financial statement forms and
414	414	instructions to an individual not later than the third business day
415	415	after the date the commission receives the individual's request for
416	416	the forms and instructions.
417	417	SECTION 14. Section 572.032, Government Code, is amended by
418	418	amending Subsection (a) and adding Subsection (d) to read as
419	419	follows:
420	420	(a) Financial statements filed under this subchapter are
421	421	public records. The commission shall maintain the statements in
422	422	separate alphabetical files and in a manner that is accessible to
423	423	the public during regular office hours and make the statements
424	424	available to the public on the commission's website not later than
425	425	the 15th day after the date the statement is required to be filed or
426	426	is actually filed, whichever is later.
427	427	(d) The commission is not required to continue to make
428	428	available on its website a financial statement that may be
429	429	destroyed under Subsection (c). The commission may not make
430	430	available on its website a financial statement that the commission
431	431	is required to destroy under Subsection (c).
432	432	SECTION 15. Section 572.032(a-1), Government Code, as
433	433	amended by H.B. 776 and S.B. 1576, Acts of the 85th Legislature,
434	434	Regular Session, 2017, is reenacted and amended to read as follows:
435	435	(a-1) The commission shall remove the home address, the
436	436	telephone number, and the names of the dependent children of an
437	437	individual from a financial statement filed by the individual under
438	438	this subchapter before:
439	439	(1) permitting a member of the public to view the
440	440	statement;
441	441	(2) providing a copy of the statement to a member of
442	442	the public; or
443	443	(3) making the statement available to the public on
444	444	the commission's Internet website[, if the commission makes
445	445	statements filed under this subchapter available on its website].
446	446	SECTION 16. The following provisions are repealed:
447	447	(1) Section 253.037, Election Code; and
448	448	(2) Sections 302.017, 302.019, and 572.032(b),
449	449	Government Code.
450	450	SECTION 17. Section 253.006, Election Code, as added by
451	451	this Act, applies only to a political contribution or a political
452	452	expenditure made on or after the effective date of this Act.
453	453	SECTION 18. The changes in law made by this Act to Chapter
454	454	572, Government Code, apply only to a financial statement due on or
455	455	after the effective date of this Act. A financial statement due
456	456	before the effective date of this Act is governed by the law in
457	457	effect on the date the financial statement was due, and the former
458	458	law is continued in effect for that purpose.
459	459	SECTION 19. This Act takes effect December 1, 2017.