Texas 2019 - 86th Regular

Texas House Bill HB1877 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R8693 JG-D
2	2	By: Davis of Harris H.B. No. 1877
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 regulations
8	8	relating to certain contributions, expenditures, and reports, and
9	9	certain authority and duties of the Texas Ethics Commission;
10	10	creating a criminal offense.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 251.005(d), Election Code, is amended to
13	13	read as follows:
14	14	(d) An out-of-state political committee that does not file a
15	15	campaign treasurer appointment shall comply with Sections
16	16	[Section] 254.1581, 254.161, and 254.261.
17	17	SECTION 2. Subchapter A, Chapter 253, Election Code, is
18	18	amended by adding Section 253.006 to read as follows:
19	19	Sec. 253.006. UNLAWFUL USE OF PUBLIC FUNDS FOR
20	20	CONTRIBUTIONS OR EXPENDITURES. (a) An officer or employee of a
21	21	political subdivision may not spend or authorize the spending of
22	22	public funds to make a political contribution or a political
23	23	expenditure.
24	24	(b) An officer or employee of a political subdivision may
25	25	not directly or indirectly employ a person to use public funds to
26	26	make an unlawful political contribution or political expenditure.
27	27	(c) A person who violates Subsection (a) or (b) commits an
28	28	offense. An offense under this section is a Class A misdemeanor.
29	29	SECTION 3. Subchapter D, Chapter 253, Election Code, is
30	30	amended by adding Section 253.105 to read as follows:
31	31	Sec. 253.105. CONTRIBUTIONS TO DIRECT EXPENDITURE ONLY
32	32	COMMITTEES. A corporation or labor organization may make a
33	33	political contribution from its own property to a political
34	34	committee that:
35	35	(1) is not established or controlled by a candidate or
36	36	an officeholder;
37	37	(2) makes or intends to make direct campaign
38	38	expenditures;
39	39	(3) does not make or intend to make political
40	40	contributions to:
41	41	(A) a candidate;
42	42	(B) an officeholder;
43	43	(C) a specific-purpose committee established or
44	44	controlled by a candidate or an officeholder; or
45	45	(D) a political committee that makes or intends
46	46	to make political contributions to a candidate, an officeholder, or
47	47	a specific-purpose committee established or controlled by a
48	48	candidate or an officeholder; and
49	49	(4) has filed an affidavit with the commission stating
50	50	the committee's intention to operate as described by Subdivisions
51	51	(2) and (3).
52	52	SECTION 4. Section 254.161, Election Code, is amended to
53	53	read as follows:
54	54	Sec. 254.161. NOTICE TO CANDIDATE AND OFFICEHOLDER OF
55	55	CONTRIBUTIONS AND EXPENDITURES. If a general-purpose committee
56	56	other than the principal political committee of a political party
57	57	or a political committee established by a political party's county
58	58	executive committee accepts political contributions or makes
59	59	political expenditures for a candidate or officeholder, notice of
60	60	that fact shall be given to the affected candidate or officeholder
61	61	as provided by Section 254.128 for a specific-purpose committee.
62	62	An out-of-state political committee that is required to comply with
63	63	this section shall designate an officer of the committee to provide
64	64	the notice.
65	65	SECTION 5. Section 254.261, Election Code, is amended by
66	66	adding Subsection (e) to read as follows:
67	67	(e) This section applies to an out-of-state political
68	68	committee that does not file a campaign treasurer appointment.
69	69	SECTION 6. Section 302.021(a), Government Code, is amended
70	70	to read as follows:
71	71	(a) A speaker candidate or former speaker candidate commits
72	72	an offense if the person:
73	73	(1) knowingly fails to file the declaration of
74	74	candidacy required by Section 302.0121;
75	75	(2) knowingly fails to file the statement required by
76	76	Section 302.013;
77	77	(3) knowingly accepts a contribution, loan, or promise
78	78	of a contribution or loan in violation of Section 302.0121(c);
79	79	(4) [knowingly accepts a contribution, loan, or
80	80	promise of a contribution or loan prohibited by Section 302.017
81	81	from a corporation, partnership, association, firm, union,
82	82	foundation, committee, club, or other organization or group of
83	83	persons;
84	84	[(5)] knowingly accepts a contribution from a person
85	85	who uses political contributions, interest earned on political
86	86	contributions, or an asset purchased with political contributions
87	87	to make the contribution in violation of Section 302.0191;
88	88	(5) [(6)] expends campaign funds for any purpose other
89	89	than those enumerated in Section 302.020;
90	90	(6) [(7)] knowingly retains contributions, assets
91	91	purchased with contributions, or interest or other income earned on
92	92	contributions in violation of Section 302.0201(b); or
93	93	(7) [(8)] knowingly fails to file the report of
94	94	unexpended campaign funds as required by Section 302.0201(d).
95	95	SECTION 7. Subchapter B, Chapter 571, Government Code, is
96	96	amended by adding Section 571.033 to read as follows:
97	97	Sec. 571.033. NOTIFICATION PROCEDURES. (a) Except as
98	98	provided by Subsection (b), the commission may adopt rules
99	99	prescribing how the commission will notify any person or provide
100	100	any notice required by this subtitle, Chapter 305 of this code, or
101	101	Title 15, Election Code.
102	102	(b) Subsection (a) does not authorize the commission to
103	103	adopt rules prescribing how the commission will notify any person
104	104	or provide any notice required by Subchapter E or F of this chapter
105	105	or how the commission will issue a warning of liability under
106	106	Section 254.042(b), Election Code.
107	107	SECTION 8. Section 571.071, Government Code, is amended by
108	108	amending Subsection (c) and adding Subsection (d) to read as
109	109	follows:
110	110	(c) The commission may provide a seminar for persons
111	111	required to register under Chapter 305 that addresses issues
112	112	involving lobbying, political contributions and expenditures, and
113	113	other issues as determined by the commission. The commission may
114	114	charge a fee for attending the seminar in an amount necessary to
115	115	cover the costs associated with the seminar, including the cost of
116	116	providing food or nonalcoholic beverages to attendees.
117	117	(d) The commission may provide a seminar that addresses the
118	118	laws administered and enforced by the commission and any other
119	119	relevant laws, as determined by the commission. The commission may
120	120	charge a fee for attending the seminar in an amount necessary to
121	121	cover the costs associated with the seminar, including the cost of
122	122	providing food or nonalcoholic beverages to attendees.
123	123	SECTION 9. Section 572.023(b), Government Code, is amended
124	124	to read as follows:
125	125	(b) The account of financial activity consists of:
126	126	(1) a list of all sources of occupational income,
127	127	identified by employer, or if self-employed, by the nature of the
128	128	occupation, including identification of a person or other
129	129	organization from which the individual or a business in which the
130	130	individual has a substantial interest received a fee as a retainer
131	131	for a claim on future services in case of need, as distinguished
132	132	from a fee for services on a matter specified at the time of
133	133	contracting for or receiving the fee, if professional or
134	134	occupational services are not actually performed during the
135	135	reporting period equal to or in excess of the amount of the
136	136	retainer, and the category of the amount of the fee;
137	137	(2) identification by name and the category of the
138	138	greatest number of shares of stock of any nonpublicly traded
139	139	business entity held or acquired, and if sold, the category of the
140	140	amount of net gain or loss realized from the sale;
141	141	(2-a) identification by stock symbol and the category
142	142	of the number of shares of stock of any publicly traded corporation
143	143	held;
144	144	(3) a list of all bonds, notes, and other commercial
145	145	paper held or acquired, and if sold, the category of the amount of
146	146	net gain or loss realized from the sale;
147	147	(4) identification of each source and the category of
148	148	the amount of income in excess of $500 derived from each source from
149	149	interest, dividends, royalties, and rents;
150	150	(5) identification of each guarantor of a loan and
151	151	identification of each person or financial institution to whom a
152	152	personal note or notes or lease agreement for a total financial
153	153	liability in excess of $1,000 existed at any time during the year
154	154	and the category of the amount of the liability;
155	155	(6) identification by description of all beneficial
156	156	interests in real property and business entities held or acquired,
157	157	and if sold, the category of the amount of the net gain or loss
158	158	realized from the sale;
159	159	(7) identification of a person or other organization
160	160	from which the individual or the individual's spouse or dependent
161	161	children received a gift of anything of value in excess of $250 and
162	162	a description of each gift, except:
163	163	(A) a gift received from an individual related to
164	164	the individual at any time within the second degree by
165	165	consanguinity or affinity, as determined under Subchapter B,
166	166	Chapter 573;
167	167	(B) a political contribution that was reported as
168	168	required by Chapter 254, Election Code; and
169	169	(C) an expenditure required to be reported by a
170	170	person required to be registered under Chapter 305;
171	171	(8) identification of the source and the category of
172	172	the amount of all income received as beneficiary of a trust, other
173	173	than a blind trust that complies with Subsection (c), and
174	174	identification of each trust asset, if known to the beneficiary,
175	175	from which income was received by the beneficiary in excess of $500;
176	176	(9) identification:
177	177	(A) by description of a corporation, firm,
178	178	partnership, limited partnership, limited liability partnership,
179	179	professional corporation, professional association, joint venture,
180	180	or other business association in which five percent or more of the
181	181	outstanding ownership was held, acquired, or sold; and
182	182	(B) by description and the category of the amount
183	183	of all assets and liabilities of a corporation, firm, partnership,
184	184	limited partnership, limited liability partnership, professional
185	185	corporation, professional association, joint venture, or other
186	186	business association in which 50 percent or more of the outstanding
187	187	ownership was held, acquired, or sold;
188	188	(10) a list of all boards of directors of which the
189	189	individual is a member and executive positions that the individual
190	190	holds in corporations, firms, partnerships, limited partnerships,
191	191	limited liability partnerships, professional corporations,
192	192	professional associations, joint ventures, or other business
193	193	associations or proprietorships, stating the name of each
194	194	corporation, firm, partnership, limited partnership, limited
195	195	liability partnership, professional corporation, professional
196	196	association, joint venture, or other business association or
197	197	proprietorship and the position held;
198	198	(11) identification of any person providing
199	199	transportation, meals, or lodging expenses permitted under Section
200	200	36.07(b), Penal Code, and the amount of those expenses, other than
201	201	expenditures required to be reported under Chapter 305;
202	202	(12) any corporation, firm, partnership, limited
203	203	partnership, limited liability partnership, professional
204	204	corporation, professional association, joint venture, or other
205	205	business association, excluding a publicly held corporation, in
206	206	which both the individual and a person registered under Chapter 305
207	207	have an interest;
208	208	(13) identification by name and the category of the
209	209	number of shares of any mutual fund held or acquired, and if sold,
210	210	the category of the amount of net gain or loss realized from the
211	211	sale;
212	212	(14) identification of each blind trust that complies
213	213	with Subsection (c), including:
214	214	(A) the category of the fair market value of the
215	215	trust;
216	216	(B) the date the trust was created;
217	217	(C) the name and address of the trustee; and
218	218	(D) a statement signed by the trustee, under
219	219	penalty of perjury, stating that:
220	220	(i) the trustee has not revealed any
221	221	information to the individual, except information that may be
222	222	disclosed under Subdivision (8); and
223	223	(ii) to the best of the trustee's knowledge,
224	224	the trust complies with this section;
225	225	(15) if the aggregate cost of goods or services sold
226	226	under one or more written contracts described by this subdivision
227	227	exceeds $10,000 in the year covered by the report, identification
228	228	of each written contract, including the name of each party to the
229	229	contract:
230	230	(A) for the sale of goods or services in the
231	231	amount of $2,500 or more;
232	232	(B) to which the individual, the individual's
233	233	spouse, the individual's dependent child, or any business entity of
234	234	which the individual, the individual's spouse, or the individual's
235	235	dependent child, independently or in conjunction with one or more
236	236	persons described by this subsection, has at least a 50 percent
237	237	ownership interest is a party; and
238	238	(C) with:
239	239	(i) a governmental entity; or
240	240	(ii) a person who contracts with a
241	241	governmental entity, if the individual or entity described by
242	242	Paragraph (B) performs work arising out of the contract,
243	243	subcontract, or agreement between the person and the governmental
244	244	entity for a fee; and
245	245	(16) if the individual is a member of the legislature
246	246	and provides bond counsel services to an issuer, as defined by
247	247	Section 1201.002(1), identification of the following for each
248	248	issuance for which the individual served as bond counsel:
249	249	(A) the amount of the issuance;
250	250	(B) the name of the issuer;
251	251	(C) the date of the issuance;
252	252	(D) the amount of fees paid to the individual,
253	253	and whether the amount is:
254	254	(i) less than $5,000;
255	255	(ii) at least $5,000 but less than $10,000;
256	256	(iii) at least $10,000 but less than
257	257	$25,000; or
258	258	(iv) $25,000 or more; and
259	259	(E) the amount of fees paid to the individual's
260	260	firm, if applicable, and whether the amount is:
261	261	(i) less than $5,000;
262	262	(ii) at least $5,000 but less than $10,000;
263	263	(iii) at least $10,000 but less than
264	264	$25,000; or
265	265	(iv) $25,000 or more.
266	266	SECTION 10. Subchapter B, Chapter 572, Government Code, is
267	267	amended by adding Section 572.0292 to read as follows:
268	268	Sec. 572.0292. RECORDKEEPING REQUIRED. (a) Each
269	269	individual who files with the commission a financial statement
270	270	required by this subchapter shall maintain a record of the
271	271	information that is necessary for filing the financial statement.
272	272	(b) An individual required to maintain a record under this
273	273	section shall preserve the record for at least three years
274	274	beginning on the filing deadline for the financial statement
275	275	containing the information in the record.
276	276	SECTION 11. The heading to Section 572.030, Government
277	277	Code, is amended to read as follows:
278	278	Sec. 572.030. PREPARATION [AND MAILING] OF FORMS; NOTICE OF
279	279	FILING REQUIREMENTS.
280	280	SECTION 12. Sections 572.030(b), (c), and (d), Government
281	281	Code, are amended to read as follows:
282	282	(b) The commission shall notify [mail to] each individual
283	283	required to file under this subchapter of [a notice that]:
284	284	(1) the requirement [states] that the individual [is
285	285	required to] file a financial statement under this subchapter;
286	286	(2) [identifies] the filing dates for the financial
287	287	statement as provided by Sections 572.026 and 572.027; and
288	288	(3) [describes] the manner in which the individual may
289	289	electronically file the financial statement and access
290	290	instructions for filing financial statements on [obtain the
291	291	financial statement forms and instructions from] the commission's
292	292	Internet website[;
293	293	[(4) states that on request of the individual, the
294	294	commission will mail to the individual a copy of the financial
295	295	statement forms and instructions; and
296	296	[(5) states, if applicable, the fee for mailing the
297	297	forms and instructions and the manner in which the individual may
298	298	pay the fee].
299	299	(c) Except as provided by commission rule, the notification
300	300	[The notice] required by Subsection (b) must be provided [mailed]:
301	301	(1) before the 30th day before the deadline for filing
302	302	the financial statement under Section 572.026(a) or (c), except as
303	303	otherwise provided by this subsection;
304	304	(2) not later than the 15th day after the applicable
305	305	deadline for filing an application for a place on the ballot or a
306	306	declaration of write-in candidacy for candidates required to file
307	307	under Section 572.027(a), (b), or (c);
308	308	(3) not later than the seventh day after the date of
309	309	appointment for individuals required to file under Section
310	310	572.026(b), or if the legislature is in session, sooner if
311	311	possible; and
312	312	(4) not later than the fifth day after the date the
313	313	certificate of nomination is filed for candidates required to file
314	314	under Section 572.027(d) [574.027(d)].
315	315	(d) Except as provided by commission rule, the [The]
316	316	commission shall mail a copy of the financial statement forms and
317	317	instructions to an individual not later than the third business day
318	318	after the date the commission receives the individual's request for
319	319	the forms and instructions.
320	320	SECTION 13. Section 572.032, Government Code, is amended by
321	321	amending Subsection (a) and adding Subsection (d) to read as
322	322	follows:
323	323	(a) Financial statements filed under this subchapter are
324	324	public records. The commission shall maintain the statements in
325	325	separate alphabetical files and in a manner that is accessible to
326	326	the public during regular office hours and make the statements
327	327	available to the public on the commission's Internet website not
328	328	later than the 15th day after the date the statement is required to
329	329	be filed or is actually filed, whichever is later.
330	330	(d) The commission is not required to continue to make
331	331	available on its Internet website a financial statement that may be
332	332	destroyed under Subsection (c). The commission may not make
333	333	available on its Internet website a financial statement that the
334	334	commission is required to destroy under Subsection (c).
335	335	SECTION 14. Section 572.032(a-1), Government Code, as
336	336	amended by Chapters 34 (S.B. 1576) and 983 (H.B. 776), Acts of the
337	337	85th Legislature, Regular Session, 2017, is reenacted and amended
338	338	to read as follows:
339	339	(a-1) The commission shall remove the home address, the
340	340	telephone number, and the names of the dependent children of an
341	341	individual from a financial statement filed by the individual under
342	342	this subchapter before:
343	343	(1) permitting a member of the public to view the
344	344	statement;
345	345	(2) providing a copy of the statement to a member of
346	346	the public; or
347	347	(3) making the statement available to the public on
348	348	the commission's Internet website[, if the commission makes
349	349	statements filed under this subchapter available on its website].
350	350	SECTION 15. The following laws are repealed:
351	351	(1) Section 253.037, Election Code; and
352	352	(2) Sections 302.017, 302.019, and 572.032(b),
353	353	Government Code.
354	354	SECTION 16. Section 253.006, Election Code, as added by
355	355	this Act, applies only to a political contribution or a political
356	356	expenditure made on or after the effective date of this Act.
357	357	SECTION 17. The changes in law made by this Act apply only
358	358	to a political contribution made on or after the effective date of
359	359	this Act. A political contribution made before the effective date
360	360	of this Act is governed by the law in effect on the date the
361	361	contribution was made, and the former law is continued in effect for
362	362	that purpose.
363	363	SECTION 18. The changes in law made by this Act to Chapter
364	364	572, Government Code, apply only to a financial statement due on or
365	365	after the effective date of this Act. A financial statement due
366	366	before the effective date of this Act is governed by the law in
367	367	effect on the date the financial statement was due, and the former
368	368	law is continued in effect for that purpose.
369	369	SECTION 19. This Act takes effect immediately if it
370	370	receives a vote of two-thirds of all the members elected to each
371	371	house, as provided by Section 39, Article III, Texas Constitution.
372	372	If this Act does not receive the vote necessary for immediate
373	373	effect, this Act takes effect September 1, 2019.