Texas 2025 - 89th Regular

Texas House Bill HB1510 Compare Versions

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

Old	New	Differences
1	1	89R11916 MZM-D
2	2	By: Shaheen H.B. No. 1510
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the functions and duties of the Texas Ethics
10	10	Commission.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 254.036(b), Election Code, is amended to
13	13	read as follows:
14	14	(b) Except as provided by Subsection [(c) or] (e), each
15	15	report filed under this chapter with the commission must be filed by
16	16	computer diskette, modem, or other means of electronic transfer,
17	17	using computer software provided by the commission or computer
18	18	software that meets commission specifications for a standard file
19	19	format.
20	20	SECTION 2. Section 254.038(c), Election Code, is amended to
21	21	read as follows:
22	22	(c) A report under this section shall be filed
23	23	electronically, by telephonic facsimile machine, or by hand, in the
24	24	form required by Section 254.036. The commission must receive a
25	25	report under this section filed by telephonic facsimile machine or
26	26	hand not later than 5 p.m. of the first business day after the date
27	27	the contribution is accepted. The commission must receive a report
28	28	under this section filed electronically not later than midnight of
29	29	the first business day after the date the contribution is accepted.
30	30	A report under this section is not required to be accompanied by the
31	31	affidavit required under Section 254.036(h) or to be submitted on a
32	32	form prescribed by the commission. [A report under this section
33	33	that complies with Section 254.036(a) must be accompanied by an
34	34	affidavit under Section 254.036(c)(1) unless the candidate or
35	35	committee has submitted an affidavit under Section 254.036(c)(1)
36	36	with another report filed in connection with the election for which
37	37	a report is required under this section.]
38	38	SECTION 3. Section 254.039(a-1), Election Code, is amended
39	39	to read as follows:
40	40	(a-1) A report under this section shall be filed
41	41	electronically, by telephonic facsimile machine, or by hand, in the
42	42	form required by Section 254.036. The commission must receive a
43	43	report under this section not later than 5 p.m. of the first
44	44	business day after the date the contribution is accepted or the
45	45	expenditure is made. A report under this section is not required to
46	46	be accompanied by the affidavit required under Section 254.036(h)
47	47	or to be submitted on a form prescribed by the commission. [A
48	48	report under this section that complies with Section 254.036(a)
49	49	must be accompanied by an affidavit under Section 254.036(c)(1)
50	50	unless the committee has submitted an affidavit under Section
51	51	254.036(c)(1) with another report filed in connection with the
52	52	election for which a report is required under this section.]
53	53	SECTION 4. Sections 254.042(a) and (b), Election Code, are
54	54	amended to read as follows:
55	55	(a) The commission shall determine from any available
56	56	evidence whether a report required to be filed with the commission
57	57	under this chapter is late. On making that determination, the
58	58	commission shall immediately provide [mail a notice of the
59	59	determination] to the person required to file the report notice of
60	60	the determination.
61	61	(b) If a report other than a report under Section
62	62	254.064(c), 254.124(c), or 254.154(c) [or the first report under
63	63	Section 254.063 or 254.123] that is required to be filed following
64	64	the primary or general election is determined to be late, the person
65	65	required to file the report is liable to the state for a civil
66	66	penalty of $500. If a report under Section 254.064(c), 254.124(c),
67	67	or 254.154(c) [or the first report under Section 254.063 or
68	68	254.153] that is required to be filed following the primary or
69	69	general election is determined to be late, the person required to
70	70	file the report is liable to the state for a civil penalty of $500
71	71	for the first day the report is late and $100 for each day
72	72	thereafter that the report is late and continuing only through the
73	73	day of the election. If a report is more than 30 days late, the
74	74	commission shall issue a warning of liability [by registered mail]
75	75	to the person required to file the report. If the penalty is not
76	76	paid before the 10th day after the date on which the warning is
77	77	received, the person is liable for a civil penalty in an amount
78	78	determined by commission rule, but not to exceed $10,000.
79	79	SECTION 5. Sections 254.157 and 254.158, Election Code, are
80	80	amended to read as follows:
81	81	Sec. 254.157. MONTHLY REPORTING SCHEDULE. (a) The
82	82	campaign treasurer of a general-purpose committee filing monthly
83	83	reports shall file a report not later than the 10th [fifth] day of
84	84	the month following the period covered by the report. A report
85	85	covering the month preceding an election in which the committee is
86	86	involved must be received by the authority with whom the report is
87	87	required to be filed not later than the 10th [fifth] day of the
88	88	month following the period covered by the report.
89	89	(b) A monthly report covers the period beginning the first
90	90	[26th] day of each month and continuing through the last [25th] day
91	91	of the [following] month[, except that the period covered by the
92	92	first report begins January 1 and continues through January 25].
93	93	Sec. 254.158. EXCEPTION TO MONTHLY REPORTING SCHEDULE. If
94	94	the campaign treasurer appointment of a general-purpose committee
95	95	filing monthly reports is filed after January 1 of the year in which
96	96	monthly reports are filed, the period covered by the first monthly
97	97	report begins the day the appointment is filed and continues
98	98	through the last [25th] day of the month in which the appointment is
99	99	filed [unless the appointment is filed the 25th or a succeeding day
100	100	of the month. In that case, the period continues through the 25th
101	101	day of the month following the month in which the appointment is
102	102	filed].
103	103	SECTION 6. Sections 305.033(a) and (c), Government Code,
104	104	are amended to read as follows:
105	105	(a) The commission shall determine from any available
106	106	evidence whether a registration or report required to be filed with
107	107	the commission under this chapter is late. A registration filed
108	108	without the fee required by Section 305.005 is considered to be
109	109	late. On making a determination that a required registration or
110	110	report is late, the commission shall immediately provide [mail a
111	111	notice of the determination] to the person responsible for the
112	112	filing, [to] the commission, and [to] the appropriate attorney for
113	113	the state notice of the determination.
114	114	(c) If a registration or report is more than 30 days late,
115	115	the commission shall issue a warning of liability [by registered
116	116	mail] to the person responsible for the filing. If the penalty is
117	117	not paid before the 10th day after the date on which the warning is
118	118	received, the person is liable for a penalty in an amount determined
119	119	by commission rule, but not to exceed $10,000.
120	120	SECTION 7. Section 305.034(b), Government Code, is amended
121	121	to read as follows:
122	122	(b) If [Whenever] the commission determines that a person
123	123	has failed to file any required form, statement, or report as
124	124	required by this chapter, the commission shall provide [send a
125	125	written statement of this finding] to the person written notice of
126	126	the determination [involved]. [Notice to the person involved must
127	127	be sent by certified mail.]
128	128	SECTION 8. Section 571.022, Government Code, is amended to
129	129	read as follows:
130	130	Sec. 571.022. SUNSET PROVISION. The commission is subject
131	131	to review under Chapter 325 (Texas Sunset Act), but is not abolished
132	132	under that chapter. The commission shall be reviewed during the
133	133	periods in which state agencies abolished in 2037 [2013] and every
134	134	12th year after that year are reviewed.
135	135	SECTION 9. Section 571.0271, Government Code, is amended by
136	136	amending Subsection (b) and adding Subsection (d) to read as
137	137	follows:
138	138	(b) The training program must provide the person with
139	139	information regarding:
140	140	(1) the law governing [legislation that created the]
141	141	commission operations;
142	142	(2) the programs, functions, rules, and budget of
143	143	[operated by] the commission;
144	144	(3) the scope of and limitations on the rulemaking
145	145	authority [role and functions] of the commission;
146	146	(4) [the rules of the commission, with an emphasis on
147	147	the rules that relate to disciplinary and investigatory authority;
148	148	[(5) the current budget for the commission;
149	149	[(6)] the results of the most recent formal audit of
150	150	the commission;
151	151	(5) [(7)] the requirements of:
152	152	(A) laws relating to [the] open meetings [law],
153	153	public information, administrative procedure, and disclosing
154	154	conflicts-of-interest [Chapter 551]; and
155	155	(B) [the public information law, Chapter 552;
156	156	[(C) the administrative procedure law, Chapter
157	157	2001; and
158	158	[(D)] other laws applicable to members of a state
159	159	policy-making body in performing their duties [relating to public
160	160	officials, including conflict-of-interest laws]; and
161	161	(6) [(8)] any applicable ethics policies adopted by
162	162	the commission.
163	163	(d) The executive director of the commission shall create a
164	164	training manual that includes information required by Subsection
165	165	(b). The executive director shall distribute a copy of the training
166	166	manual annually to each member of the commission. Each member of
167	167	the commission shall sign and submit to the executive director a
168	168	statement acknowledging that the member received and has reviewed
169	169	the training manual.
170	170	SECTION 10. Subchapter B, Chapter 571, Government Code, is
171	171	amended by adding Section 571.033 to read as follows:
172	172	Sec. 571.033. METHOD OF PROVIDING NOTICE. (a) The
173	173	commission by rule shall prescribe the method by which the
174	174	commission will provide a notice required by:
175	175	(1) Chapter 305;
176	176	(2) this chapter;
177	177	(3) Chapter 572; or
178	178	(4) Title 15, Election Code.
179	179	(b) The method the commission prescribes under Subsection
180	180	(a) for providing notice may include electronic mail.
181	181	SECTION 11. Section 571.064(b), Government Code, is amended
182	182	to read as follows:
183	183	(b) If a law, other than Sections 305.005(g) and (g-1),
184	184	administered and enforced by the commission sets dollar amounts or
185	185	categories of amounts as reporting thresholds or if the commission
186	186	sets those amounts, the commission [annually] shall decennially
187	187	adjust those thresholds [upward to the nearest multiple of $10] in
188	188	accordance with the percentage increase for the previous year in
189	189	the Consumer Price Index for Urban Consumers published by the
190	190	Bureau of Labor Statistics of the United States Department of Labor
191	191	to:
192	192	(1) the nearest multiple of $10 if the amount is less
193	193	than $100;
194	194	(2) the nearest multiple of $100 if the amount is $100
195	195	or more but less than $10,000; or
196	196	(3) the nearest multiple of $1,000 if the amount is
197	197	$10,000 or more.
198	198	SECTION 12. The heading to Subchapter E, Chapter 571,
199	199	Government Code, is amended to read as follows:
200	200	SUBCHAPTER E. CATEGORIZATION OF VIOLATIONS; COMPLAINT PROCEDURES
201	201	AND HEARINGS
202	202	SECTION 13. Section 571.1211, Government Code, is amended
203	203	by amending Subdivisions (2) and (3) and adding Subdivision (4) to
204	204	read as follows:
205	205	(2) "Category One violation" means a technical,
206	206	clerical, or de minimis violation of a law within jurisdiction of
207	207	the commission [as to which it is generally not difficult to
208	208	ascertain whether the violation occurred or did not occur,
209	209	including:
210	210	[(A) the failure by a person required to file a
211	211	statement or report to:
212	212	[(i) file the required statement or report
213	213	in a manner that complies with applicable requirements; or
214	214	[(ii) timely file the required statement or
215	215	report;
216	216	[(B) a violation of Section 255.001, Election
217	217	Code;
218	218	[(C) a misrepresentation in political
219	219	advertising or a campaign communication relating to the office held
220	220	by a person in violation of Section 255.006, Election Code;
221	221	[(D) a failure to include in any written
222	222	political advertising intended to be seen from a road the
223	223	right-of-way notice in violation of Section 259.001, Election Code;
224	224	or
225	225	[(E) a failure to timely respond to a written
226	226	notice under Section 571.123(b)].
227	227	(3) "Category Two violation" means a violation of a
228	228	law within the jurisdiction of the commission that is not a Category
229	229	One violation or a Category Three violation.
230	230	(4) "Category Three violation" means a serious
231	231	violation of a law within the jurisdiction of the commission.
232	232	SECTION 14. Subchapter E, Chapter 571, Government Code, is
233	233	amended by adding Sections 571.1213, 571.1232, and 571.1233 to read
234	234	as follows:
235	235	Sec. 571.1213. CATEGORIZATION OF VIOLATIONS. (a) The
236	236	commission shall categorize each violation of law within the
237	237	commission's jurisdiction as a Category One violation, a Category
238	238	Two violation, or a Category Three violation. A violation of law
239	239	may by categorized as more than one category of violation. In
240	240	determining the category of a violation, the commission shall
241	241	consider, as applicable:
242	242	(1) the dollar amount at issue for a violation;
243	243	(2) the timing of the report relative to an election or
244	244	legislative session;
245	245	(3) the penalty of any criminal offense associated
246	246	with a violation;
247	247	(4) the potential a violation has to:
248	248	(A) conceal evidence of a person's influence over
249	249	a public official; or
250	250	(B) distort a public disclosure; and
251	251	(5) any other consideration the commission determines
252	252	necessary to prevent harm to the public.
253	253	(b) The commission shall publish on the commission's
254	254	Internet website the violation categorizations described by
255	255	Subsection (a).
256	256	(c) Before the commission adopts a new violation
257	257	categorization or changes an existing violation categorization
258	258	described by Subsection (a), the commission shall:
259	259	(1) publish the proposed violation categorization in
260	260	the Texas Register for a period determined by commission rule; and
261	261	(2) hold an open meeting to obtain public comment on
262	262	the proposed violation categorization.
263	263	Sec. 571.1232. POLICY ON PRIORITIZING COMPLAINTS. (a) The
264	264	commission shall adopt a written policy on prioritizing the
265	265	investigation of sworn complaints in accordance with this
266	266	subchapter based on the risk the commission determines the
267	267	violation alleged in the complaint poses to public disclosure
268	268	integrity.
269	269	(b) In adopting the policy, the commission shall ensure a
270	270	sworn complaint is prioritized based on:
271	271	(1) the category of the violation alleged in the
272	272	complaint;
273	273	(2) whether evidence exists demonstrating an intent in
274	274	connection with the violation alleged in the complaint to conceal a
275	275	person's influence over a public official or distort a public
276	276	disclosure;
277	277	(3) the compliance record of the respondent with laws
278	278	within the commission's jurisdiction based on:
279	279	(A) previous sworn complaints filed against the
280	280	respondent;
281	281	(B) repeat violations committed by the
282	282	respondent; and
283	283	(C) any reviews the commission conducted under
284	284	Section 571.069 of a statement or report filed by the respondent;
285	285	(4) negative media attention of the matter that is the
286	286	subject of the complaint; and
287	287	(5) any other risk-based factors the commission
288	288	identifies.
289	289	(c) The policy the commission adopts under this section must
290	290	include a process for the commission to reprioritize the
291	291	investigation of a sworn complaint as the commission determines
292	292	necessary.
293	293	(d) The commission shall:
294	294	(1) publish on the commission's Internet website the
295	295	policy the commission adopts under this section; and
296	296	(2) train commission staff on using the policy in
297	297	processing sworn complaints.
298	298	(e) Before the commission adopts or changes the policy
299	299	required by this section, the commission shall:
300	300	(1) publish the proposed policy in the Texas Register
301	301	for a period determined by commission rule; and
302	302	(2) hold an open meeting to obtain public comment on
303	303	the proposed policy.
304	304	Sec. 571.1233. DISCOVERY REQUIREMENTS. The commission
305	305	shall adopt rules that prescribe the procedure required of
306	306	commission staff and respondents to agree to a discovery control
307	307	plan to conduct discovery in connection with a sworn complaint. The
308	308	rules must:
309	309	(1) outline a period during which all discovery must
310	310	be completed and set appropriate limits to the amount of discovery
311	311	that may be requested; and
312	312	(2) comply with the Texas Rules of Civil Procedure,
313	313	except that the commission shall determine the level of discovery
314	314	under Rule 190, Texas Rules of Civil Procedure, appropriate for the
315	315	category of the violation alleged in a complaint and the policies
316	316	the commission adopts under Section 571.1232 on prioritizing the
317	317	investigation of complaints.
318	318	SECTION 15. Section 571.124(e), Government Code, is amended
319	319	to read as follows:
320	320	(e) If the executive director determines that the
321	321	commission has jurisdiction, the notice under Section 571.123(b)
322	322	must include:
323	323	(1) a statement that the commission has jurisdiction
324	324	over the violation of law alleged in the complaint;
325	325	(2) a statement of whether the complaint will be
326	326	processed as a Category One violation, [or] a Category Two
327	327	violation, or a Category Three violation [, subject to
328	328	reconsideration as provided for by Section 571.1212];
329	329	(3) the date by which the respondent is required to
330	330	respond to the notice;
331	331	(4) a copy of the complaint and the rules of procedure
332	332	of the commission;
333	333	(5) a statement of the rights of the respondent;
334	334	(6) a statement inviting the respondent to provide to
335	335	the commission any information relevant to the complaint; and
336	336	(7) a statement that a failure to timely respond to the
337	337	notice will be treated as a separate violation.
338	338	SECTION 16. Section 571.1244, Government Code, is amended
339	339	to read as follows:
340	340	Sec. 571.1244. PRELIMINARY REVIEW AND PRELIMINARY REVIEW
341	341	PROCEDURES. The commission shall adopt procedures for the conduct
342	342	of preliminary reviews and preliminary review hearings. The
343	343	procedures must include:
344	344	(1) a reasonable time for responding to questions
345	345	submitted by the commission and commission staff and subpoenas
346	346	issued by the commission; [and]
347	347	(2) the tolling or extension of otherwise applicable
348	348	deadlines where:
349	349	(A) the commission issues a subpoena and the
350	350	commission's meeting schedule makes it impossible both to provide a
351	351	reasonable time for response and to comply with the otherwise
352	352	applicable deadlines; or
353	353	(B) the commission determines that, despite
354	354	commission staff's diligence and the reasonable cooperation of the
355	355	respondent, a matter is too complex to resolve within the otherwise
356	356	applicable deadlines without compromising either the commission
357	357	staff's investigation or the rights of the respondent; and
358	358	(3) a deadline on the convening of a panel to conduct a
359	359	preliminary review hearing.
360	360	SECTION 17. Sections 571.125(a), (b), (d), and (e),
361	361	Government Code, are amended to read as follows:
362	362	(a) A panel of two [The] commission members selected in
363	363	accordance with Section 571.1251 shall conduct a preliminary review
364	364	hearing if:
365	365	(1) following the preliminary review, the [commission
366	366	and the] respondent rejects [cannot agree to] the resolution
367	367	proposed by commission staff of the complaint or motion
368	368	[disposition of the complaint or motion]; or
369	369	(2) the respondent in writing requests a hearing.
370	370	(b) The commission shall provide [written notice] to the
371	371	complainant, if any, and the respondent written notice that
372	372	includes:
373	373	(1) [of] the date, time, and place the panel
374	374	[commission] will conduct the preliminary review hearing; and
375	375	(2) a statement that if the commission orders a formal
376	376	hearing because the complaint could not be resolved and settled as a
377	377	result of the preliminary review hearing, the formal hearing may
378	378	result in a higher sanction than the one the panel proposes for the
379	379	preliminary review hearing.
380	380	(d) During a preliminary review hearing, the panel
381	381	[commission]:
382	382	(1) may consider all submitted evidence related to the
383	383	complaint or to the subject matter of a motion under Section
384	384	571.124(b);
385	385	(2) may review any documents or material related to
386	386	the complaint or to the motion; and
387	387	(3) shall determine whether there is credible evidence
388	388	that provides cause for the panel [commission] to conclude that a
389	389	violation within the jurisdiction of the commission has occurred.
390	390	(e) During a preliminary review hearing, the respondent may
391	391	appear before the panel [commission] with the assistance of
392	392	counsel, if desired by the respondent, and present any relevant
393	393	evidence, including a written statement.
394	394	SECTION 18. Subchapter E, Chapter 571, Government Code, is
395	395	amended by adding Section 571.1251 to read as follows:
396	396	Sec. 571.1251. SELECTION OF PANEL TO CONDUCT PRELIMINARY
397	397	REVIEW HEARING. The commission shall adopt rules for the selection
398	398	of commission members to serve on panels to conduct preliminary
399	399	review hearings. The rules must ensure that:
400	400	(1) a panel is composed of two commission members
401	401	selected on a rotating basis; and
402	402	(2) each member of the panel is a member of a different
403	403	political party.
404	404	SECTION 19. Section 571.126, Government Code, is amended to
405	405	read as follows:
406	406	Sec. 571.126. PRELIMINARY REVIEW HEARING: RESOLUTION. (a)
407	407	Except as provided by Subsection (e), as [As] soon as practicable
408	408	after the completion of a preliminary review hearing, the panel
409	409	[commission] by vote shall issue a decision stating:
410	410	(1) whether there is credible evidence for the panel
411	411	[commission] to determine that a violation within the jurisdiction
412	412	of the commission has occurred and whether the violation is a
413	413	Category One violation [technical or de minimis]; or
414	414	(2) that there is insufficient evidence for the panel
415	415	[commission] to determine whether a violation within the
416	416	jurisdiction of the commission has occurred.
417	417	(b) If the panel [commission] determines that there is
418	418	credible evidence for the panel [commission] to determine that a
419	419	violation within the commission's jurisdiction has occurred, the
420	420	panel [commission] shall propose to the respondent a resolution to
421	421	resolve and settle the complaint or motion to the extent possible.
422	422	If the panel [commission] successfully resolves and settles the
423	423	complaint or motion, not later than the fifth business day after the
424	424	date the respondent accepts the proposed resolution [of the final
425	425	resolution of the complaint or motion], the commission shall
426	426	provide [send] to the complainant, if any, and the respondent a copy
427	427	of the decision stating the panel's [commission's] determination
428	428	and written notice of the resolution and the terms of the
429	429	resolution. If the panel [commission] is unsuccessful in resolving
430	430	and settling the complaint or motion, the panel [commission] shall:
431	431	(1) order a formal hearing to be held in accordance
432	432	with Sections 571.127 [571.129] through 571.132; and
433	433	(2) not later than the fifth business day after the
434	434	date the panel determines that there is credible evidence to
435	435	determine that a violation has occurred or the date the respondent
436	436	rejects the panel's proposed resolution [of the decision], send to
437	437	the complainant, if any, and the respondent:
438	438	(A) a copy of the decision;
439	439	(B) written notice of the date, time, and place
440	440	of the formal hearing;
441	441	(C) a statement of the nature of the alleged
442	442	violation;
443	443	(D) a description of the evidence of the alleged
444	444	violation;
445	445	(E) a copy of the complaint or motion;
446	446	(F) a copy of the commission's rules of
447	447	procedure; and
448	448	(G) a statement of the rights of the respondent.
449	449	(c) If the panel [commission] determines that there is
450	450	credible evidence [for the commission] to determine that a
451	451	violation within the jurisdiction of the commission has not
452	452	occurred [, the commission shall]:
453	453	(1) the panel shall dismiss the complaint or motion;
454	454	and
455	455	(2) the commission shall not later than the fifth
456	456	business day after the date of the dismissal, send to the
457	457	complainant, if any, and the respondent a copy of the decision
458	458	stating the panel's [commission's] determination and written notice
459	459	of the dismissal and the grounds for dismissal.
460	460	(d) If the panel [commission] determines that there is
461	461	insufficient credible evidence [for the commission] to determine
462	462	that a violation within the jurisdiction of the commission has
463	463	occurred, the panel [commission] may dismiss the complaint or
464	464	motion or promptly order [conduct] a formal hearing to be held under
465	465	Sections 571.127 [571.129] through 571.132. Not later than the
466	466	fifth business day after the date of the panel's [commission's]
467	467	determination under this subsection, the commission shall send to
468	468	the complainant, if any, and the respondent a copy of the decision
469	469	stating the panel's [commission's] determination and written notice
470	470	of the grounds for the determination.
471	471	(e) If, because of a tie vote, the panel cannot issue a
472	472	decision under Subsection (a), the panel shall order a formal
473	473	hearing to be held under Sections 571.127 through 571.132. Not
474	474	later than the fifth business day after the date of the vote, the
475	475	commission shall notify the complainant, if any, and the respondent
476	476	of the date, time, and place of the hearing.
477	477	(f) Except as provided by other law or commission rule, if
478	478	the respondent accepts the proposed resolution under Subsection
479	479	(b), the panel shall submit the proposed resolution to the
480	480	commission for approval.
481	481	(g) A commission member that serves on a preliminary review
482	482	hearing panel is not required to be recused from a formal hearing
483	483	held under Sections 571.127 through 571.132.
484	484	SECTION 20. Subchapter E, Chapter 571, Government Code, is
485	485	amended by adding Section 571.127 to read as follows:
486	486	Sec. 571.127. FORMAL HEARING: CONDUCT. (a) The commission
487	487	may conduct a formal hearing under this subchapter or may delegate
488	488	to the State Office of Administrative Hearings the responsibility
489	489	of conducting a formal hearing under this subchapter.
490	490	(b) The commission shall adopt rules of practice regarding a
491	491	formal hearing referred to the State Office of Administrative
492	492	Hearings, including rules:
493	493	(1) on which party bears the burden of proof;
494	494	(2) on what standard of evidence is required;
495	495	(3) of evidence that may be applicable;
496	496	(4) on subpoena power; and
497	497	(5) on contempt power.
498	498	(c) Proceedings for a formal hearing conducted by the State
499	499	Office of Administrative Hearings are governed by Chapter 2001.
500	500	Notwithstanding Section 571.1233, the commission shall ensure
501	501	rules of practice the commission adopts under Section 2001.004
502	502	applicable to the proceedings for a formal hearing do not conflict
503	503	with rules the State Office of Administrative Hearings adopts.
504	504	SECTION 21. Section 571.1731, Government Code, is amended
505	505	by adding Subsection (d) to read as follows:
506	506	(d) The commission shall waive a civil penalty imposed under
507	507	Section 305.033(b) or 572.033(b) of this code or Section
508	508	254.042(a), Election Code, if the commission has no record of
509	509	providing the late filing notice required by those sections.
510	510	SECTION 22. Section 571.177, Government Code, is amended to
511	511	read as follows:
512	512	Sec. 571.177. [FACTORS CONSIDERED FOR] ASSESSMENT AND
513	513	SCHEDULE OF SANCTION OR PENALTIES. (a) The commission shall
514	514	consider the following factors in assessing a sanction or civil
515	515	penalty for a violation of a law within the commission's
516	516	jurisdiction:
517	517	(1) the seriousness of the violation, including the
518	518	nature, circumstances, consequences, extent, and gravity of the
519	519	violation;
520	520	(2) the history and extent of previous violations;
521	521	(3) the demonstrated good faith of the violator,
522	522	including actions taken to rectify the consequences of the
523	523	violation;
524	524	(4) the penalty necessary to deter future violations;
525	525	and
526	526	(5) any other matters that justice may require.
527	527	(b) The commission may assess graduated penalties against a
528	528	person who repeatedly files late statements or reports in violation
529	529	of:
530	530	(1) Chapter 305;
531	531	(2) this chapter;
532	532	(3) Chapter 572; or
533	533	(4) Title 15, Election Code.
534	534	(c) The commission shall establish and publish on the
535	535	commission's Internet website a penalty schedule that outlines the
536	536	full range and scope of penalties the commission may assess under a
537	537	law within the commission's jurisdiction. The commission shall
538	538	ensure the penalty schedule:
539	539	(1) includes the specific statutes or commission rules
540	540	under which the commission may assess a penalty; and
541	541	(2) takes into consideration aggravating and
542	542	mitigating factors related to the assessment of a penalty,
543	543	including the severity of a violation and graduated penalties for
544	544	repeat violations.
545	545	SECTION 23. The heading to Section 572.030, Government
546	546	Code, is amended to read as follows:
547	547	Sec. 572.030. PREPARATION [AND MAILING] OF FORMS; NOTICE OF
548	548	FILING REQUIREMENTS.
549	549	SECTION 24. Sections 572.030(b), (c), and (d), Government
550	550	Code, are amended to read as follows:
551	551	(b) The commission shall mail to each individual required to
552	552	file under this subchapter a notice that:
553	553	(1) states that the individual is required to file a
554	554	financial statement under this subchapter;
555	555	(2) identifies the filing dates for the financial
556	556	statement as provided by Sections 572.026 and 572.027;
557	557	(3) describes the manner in which the individual may
558	558	obtain the financial statement forms and instructions from the
559	559	commission's Internet website;
560	560	(4) states that on request of the individual, the
561	561	commission will provide [mail to] the individual with a copy of the
562	562	financial statement forms and instructions; and
563	563	(5) states, if applicable, the fee for mailing the
564	564	forms and instructions and the manner in which the individual may
565	565	pay the fee.
566	566	(c) The commission shall provide the notice required by
567	567	Subsection (b) [must be mailed]:
568	568	(1) before the 30th day before the deadline for filing
569	569	the financial statement under Section 572.026(a) or (c), except as
570	570	otherwise provided by this subsection;
571	571	(2) not later than the 15th day after the applicable
572	572	deadline for filing an application for a place on the ballot or a
573	573	declaration of write-in candidacy for candidates required to file
574	574	under Section 572.027(a), (b), or (c);
575	575	(3) not later than the seventh day after the date of
576	576	appointment for individuals required to file under Section
577	577	572.026(b), or if the legislature is in session, sooner if
578	578	possible; and
579	579	(4) not later than the fifth day after the date the
580	580	certificate of nomination is filed for candidates required to file
581	581	under Section 572.027(d) [574.027(d)].
582	582	(d) The commission shall provide [mail] a copy of the
583	583	financial statement forms and instructions to an individual on
584	584	request of the individual not later than the third business day
585	585	after the date the commission receives the individual's request for
586	586	the forms and instructions.
587	587	SECTION 25. Sections 572.033(a) and (b), Government Code,
588	588	are amended to read as follows:
589	589	(a) The commission shall determine from any available
590	590	evidence whether a statement required to be filed under this
591	591	subchapter is late. On making a determination that the statement is
592	592	late, the commission shall immediately provide [mail a notice of
593	593	the determination] to the individual responsible for filing the
594	594	statement and [to] the appropriate attorney for the state notice of
595	595	the determination.
596	596	(b) If a statement is determined to be late, the individual
597	597	responsible for filing the statement is liable to the state for a
598	598	civil penalty of $500. If a statement is more than 30 days late, the
599	599	commission shall issue a warning of liability [by registered mail]
600	600	to the individual responsible for the filing. If the penalty is not
601	601	paid before the 10th day after the date on which the warning is
602	602	received, the individual is liable for a civil penalty in an amount
603	603	determined by commission rule, but not to exceed $10,000.
604	604	SECTION 26. The following provisions are repealed:
605	605	(1) Sections 254.036(c), (c-1), and (g), Election
606	606	Code;
607	607	(2) Section 571.032, Government Code; and
608	608	(3) Section 571.1212, Government Code.
609	609	SECTION 27. Section 254.042, Election Code, as amended by
610	610	this Act, applies only to a report that is required to be filed
611	611	under Chapter 254, Election Code, on or after the effective date of
612	612	this Act. A report under that chapter that is required to be filed
613	613	before the effective date of this Act is governed by the law in
614	614	effect on the date the report was required to be filed, and the
615	615	former law is continued in effect for that purpose.
616	616	SECTION 28. (a) Except as provided by Subsection (b) of
617	617	this section, Section 571.0271, Government Code, as amended by this
618	618	Act, applies to a member of the Texas Ethics Commission appointed
619	619	before, on, or after the effective date of this Act.
620	620	(b) A member of the Texas Ethics Commission who, before the
621	621	effective date of this Act, completed the training program required
622	622	by Section 571.0271, Government Code, as that law existed before
623	623	the effective date of this Act, is only required to complete
624	624	additional training on the subjects added by this Act to the
625	625	training program required by Section 571.0271, Government Code. A
626	626	member described by this subsection may not vote, deliberate, or be
627	627	counted as a member in attendance at a meeting of the Texas Ethics
628	628	Commission held on or after December 1, 2025, until the member
629	629	completes the additional training.
630	630	SECTION 29. This Act takes effect September 1, 2025.