Texas 2019 - 86th Regular

Texas House Bill HB779 Compare Versions

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1	1	86R974 ATP-D
2	2	By: Davis of Harris H.B. No. 779
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, is amended
125	125	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:
178	178	(A) by description 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 five percent or more of the
182	182	outstanding ownership was held, acquired, or sold; and
183	183	(B) by description and the category of the amount
184	184	of all assets and liabilities of a corporation, firm, partnership,
185	185	limited partnership, limited liability partnership, professional
186	186	corporation, professional association, joint venture, or other
187	187	business association in which 50 percent or more of the outstanding
188	188	ownership was held, acquired, or sold;
189	189	(10) a list of all boards of directors of which the
190	190	individual is a member and executive positions that the individual
191	191	holds in corporations, firms, partnerships, limited partnerships,
192	192	limited liability partnerships, professional corporations,
193	193	professional associations, joint ventures, or other business
194	194	associations or proprietorships, stating the name of each
195	195	corporation, firm, partnership, limited partnership, limited
196	196	liability partnership, professional corporation, professional
197	197	association, joint venture, or other business association or
198	198	proprietorship and the position held;
199	199	(11) identification of any person providing
200	200	transportation, meals, or lodging expenses permitted under Section
201	201	36.07(b), Penal Code, and the amount of those expenses, other than
202	202	expenditures required to be reported under Chapter 305;
203	203	(12) any corporation, firm, partnership, limited
204	204	partnership, limited liability partnership, professional
205	205	corporation, professional association, joint venture, or other
206	206	business association, excluding a publicly held corporation, in
207	207	which both the individual and a person registered under Chapter 305
208	208	have an interest;
209	209	(13) identification by name and the category of the
210	210	number of shares of any mutual fund held or acquired, and if sold,
211	211	the category of the amount of net gain or loss realized from the
212	212	sale;
213	213	(14) identification of each blind trust that complies
214	214	with Subsection (c), including:
215	215	(A) the category of the fair market value of the
216	216	trust;
217	217	(B) the date the trust was created;
218	218	(C) the name and address of the trustee; and
219	219	(D) a statement signed by the trustee, under
220	220	penalty of perjury, stating that:
221	221	(i) the trustee has not revealed any
222	222	information to the individual, except information that may be
223	223	disclosed under Subdivision (8); and
224	224	(ii) to the best of the trustee's knowledge,
225	225	the trust complies with this section;
226	226	(15) if the aggregate cost of goods or services sold
227	227	under one or more written contracts described by this subdivision
228	228	exceeds $10,000 in the year covered by the report, identification
229	229	of each written contract, including the name of each party to the
230	230	contract:
231	231	(A) for the sale of goods or services in the
232	232	amount of $2,500 or more;
233	233	(B) to which the individual, the individual's
234	234	spouse, the individual's dependent child, or any business entity of
235	235	which the individual, the individual's spouse, or the individual's
236	236	dependent child, independently or in conjunction with one or more
237	237	persons described by this subsection, has at least a 50 percent
238	238	ownership interest is a party; and
239	239	(C) with:
240	240	(i) a governmental entity; or
241	241	(ii) a person who contracts with a
242	242	governmental entity, if the individual or entity described by
243	243	Paragraph (B) performs work arising out of the contract,
244	244	subcontract, or agreement between the person and the governmental
245	245	entity for a fee; and
246	246	(16) if the individual is a member of the legislature
247	247	and provides bond counsel services to an issuer, as defined by
248	248	Section 1201.002(1), identification of the following for each
249	249	issuance for which the individual served as bond counsel:
250	250	(A) the amount of the issuance;
251	251	(B) the name of the issuer;
252	252	(C) the date of the issuance;
253	253	(D) the amount of fees paid to the individual,
254	254	and whether the amount is:
255	255	(i) less than $5,000;
256	256	(ii) at least $5,000 but less than $10,000;
257	257	(iii) at least $10,000 but less than
258	258	$25,000; or
259	259	(iv) $25,000 or more; and
260	260	(E) the amount of fees paid to the individual's
261	261	firm, if applicable, and whether the amount is:
262	262	(i) less than $5,000;
263	263	(ii) at least $5,000 but less than $10,000;
264	264	(iii) at least $10,000 but less than
265	265	$25,000; or
266	266	(iv) $25,000 or more.
267	267	SECTION 10. Subchapter B, Chapter 572, Government Code, is
268	268	amended by adding Section 572.0292 to read as follows:
269	269	Sec. 572.0292. RECORDKEEPING REQUIRED. (a) Each
270	270	individual who files with the commission a financial statement
271	271	required by this subchapter shall maintain a record of the
272	272	information that is necessary for filing the financial statement.
273	273	(b) An individual required to maintain a record under this
274	274	section shall preserve the record for at least three years
275	275	beginning on the filing deadline for the financial statement
276	276	containing the information in the record.
277	277	SECTION 11. The heading to Section 572.030, Government
278	278	Code, is amended to read as follows:
279	279	Sec. 572.030. PREPARATION [AND MAILING] OF FORMS; NOTICE OF
280	280	FILING REQUIREMENTS.
281	281	SECTION 12. Sections 572.030(b), (c), and (d), Government
282	282	Code, are amended to read as follows:
283	283	(b) The commission shall notify [mail to] each individual
284	284	required to file under this subchapter of [a notice that]:
285	285	(1) the requirement [states] that the individual [is
286	286	required to] file a financial statement under this subchapter;
287	287	(2) [identifies] the filing dates for the financial
288	288	statement as provided by Sections 572.026 and 572.027; and
289	289	(3) [describes] the manner in which the individual may
290	290	electronically file the financial statement and access
291	291	instructions for filing financial statements on [obtain the
292	292	financial statement forms and instructions from] the commission's
293	293	Internet website[;
294	294	[(4) states that on request of the individual, the
295	295	commission will mail to the individual a copy of the financial
296	296	statement forms and instructions; and
297	297	[(5) states, if applicable, the fee for mailing the
298	298	forms and instructions and the manner in which the individual may
299	299	pay the fee].
300	300	(c) Except as provided by commission rule, the notification
301	301	[The notice] required by Subsection (b) must be provided [mailed]:
302	302	(1) before the 30th day before the deadline for filing
303	303	the financial statement under Section 572.026(a) or (c), except as
304	304	otherwise provided by this subsection;
305	305	(2) not later than the 15th day after the applicable
306	306	deadline for filing an application for a place on the ballot or a
307	307	declaration of write-in candidacy for candidates required to file
308	308	under Section 572.027(a), (b), or (c);
309	309	(3) not later than the seventh day after the date of
310	310	appointment for individuals required to file under Section
311	311	572.026(b), or if the legislature is in session, sooner if
312	312	possible; and
313	313	(4) not later than the fifth day after the date the
314	314	certificate of nomination is filed for candidates required to file
315	315	under Section 572.027(d) [574.027(d)].
316	316	(d) Except as provided by commission rule, the [The]
317	317	commission shall mail a copy of the financial statement forms and
318	318	instructions to an individual not later than the third business day
319	319	after the date the commission receives the individual's request for
320	320	the forms and instructions.
321	321	SECTION 13. Section 572.032, Government Code, is amended by
322	322	amending Subsection (a) and adding Subsection (d) to read as
323	323	follows:
324	324	(a) Financial statements filed under this subchapter are
325	325	public records. The commission shall maintain the statements in
326	326	separate alphabetical files and in a manner that is accessible to
327	327	the public during regular office hours and make the statements
328	328	available to the public on the commission's Internet website not
329	329	later than the 15th day after the date the statement is required to
330	330	be filed or is actually filed, whichever is later.
331	331	(d) The commission is not required to continue to make
332	332	available on its Internet website a financial statement that may be
333	333	destroyed under Subsection (c). The commission may not make
334	334	available on its Internet website a financial statement that the
335	335	commission is required to destroy under Subsection (c).
336	336	SECTION 14. Section 572.032(a-1), Government Code, as
337	337	amended by Chapters 34 (S.B. 1576) and 983 (H.B. 776), Acts of the
338	338	85th Legislature, Regular Session, 2017, is reenacted and amended
339	339	to read as follows:
340	340	(a-1) The commission shall remove the home address, the
341	341	telephone number, and the names of the dependent children of an
342	342	individual from a financial statement filed by the individual under
343	343	this subchapter before:
344	344	(1) permitting a member of the public to view the
345	345	statement;
346	346	(2) providing a copy of the statement to a member of
347	347	the public; or
348	348	(3) making the statement available to the public on
349	349	the commission's Internet website[, if the commission makes
350	350	statements filed under this subchapter available on its website].
351	351	SECTION 15. The following provisions are repealed:
352	352	(1) Section 253.037, Election Code; and
353	353	(2) Sections 302.017, 302.019, and 572.032(b),
354	354	Government Code.
355	355	SECTION 16. Section 253.006, Election Code, as added by
356	356	this Act, applies only to a political contribution or a political
357	357	expenditure made on or after the effective date of this Act.
358	358	SECTION 17. The changes in law made by this Act to Chapter
359	359	572, Government Code, apply only to a financial statement due on or
360	360	after the effective date of this Act. A financial statement due
361	361	before the effective date of this Act is governed by the law in
362	362	effect on the date the financial statement was due, and the former
363	363	law is continued in effect for that purpose.
364	364	SECTION 18. This Act takes effect September 1, 2019.