89R5816 MZM-F By: Tepper H.B. No. 1804 A BILL TO BE ENTITLED AN ACT relating to compliance with the filing requirements of certain reports of political contributions and expenditures, including as a qualification for public elective office; providing an administrative penalty. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter A, Chapter 141, Election Code, is amended by adding Section 141.005 to read as follows: Sec. 141.005. FAILURE TO FILE CERTAIN FINANCIAL REPORTS: INELIGIBILITY AS CANDIDATE OR OFFICEHOLDER. (a) This section applies only to a report that is required to be filed under: (1) Chapter 254; (2) Subchapter B, Chapter 572, Government Code; (3) Chapter 145, Local Government Code; or (4) Chapter 159, Local Government Code. (b) A person is ineligible to be a candidate for or to hold a public office if the person fails to file a report to which this section applies before the 14th day after the date the report is due. (c) If a person fails to file a report to which this section applies by the date the report is due, the authority with whom the report is required to be filed may provide to the person written notice of: (1) the person's failure to file the report; and (2) the date by which the person must file the report before the person is declared ineligible as provided by Section 145.003 to be a candidate for or to hold a public office. (d) An authority with whom a report to which this section applies is required to be filed shall provide written notice of each person who fails to file the report before the 14th day after the date the report is due to the appropriate authority under Section 145.003 or, if a certificate of election has been issued, to the appropriate authority for acting on a resignation or declination relating to the office to which the person sought election. The notice must be delivered not later than the 20th day after the date the report is due. On receipt of the notice, the appropriate authority shall declare the person ineligible. SECTION 2. Subchapter B, Chapter 254, Election Code, is amended by adding Section 254.04015 to read as follows: Sec. 254.04015. MONITORING AVAILABILITY OF CERTAIN REPORTS ON INTERNET; ADMINISTRATIVE PENALTY. (a) The commission shall develop procedures for monitoring the Internet websites of each political subdivision that is required to make a report available on the political subdivision's Internet website under Section 254.0401(b) to ensure the political subdivision is in substantial compliance with that requirement. (b) The commission may assess an administrative penalty in an amount not to exceed $5,000 against a political subdivision that is not in substantial compliance with the requirement described by Subsection (a). Each day a political subdivision is not in substantial compliance with that requirement constitutes a separate violation for purposes of imposing an administrative penalty under this subsection. (c) The commission shall adopt rules as necessary to implement this section, including rules defining the meaning of substantial compliance for purposes of this section. SECTION 3. Subtitle C, Title 5, Local Government Code, is amended by adding Chapter 181 to read as follows: CHAPTER 181. JUDICIAL REMOVAL OF CERTAIN PUBLIC OFFICERS Sec. 181.001. APPLICABILITY. This chapter applies only to a public officer who is required to file a report under: (1) Chapter 254, Election Code; (2) Subchapter B, Chapter 572, Government Code; (3) Chapter 145; or (4) Chapter 159. Sec. 181.002. GROUNDS FOR REMOVAL. In addition to any other law under which the officer may be removed, a public officer to whom this chapter applies may be removed from office if the officer is ineligible to hold the office under Section 141.005, Election Code. Sec. 181.003. PROCEDURES FOR REMOVAL. A public officer to whom this chapter applies may be removed from office under this chapter using the same procedures for removing a county officer under Subchapter B, Chapter 87. SECTION 4. Section 141.005, Election Code, as added by this Act, applies only to the eligibility of a person to be a candidate for an office for which an application for a place on the ballot is required to be filed on or after January 1, 2026. SECTION 5. The changes in law made by this Act apply only to a report under Chapter 254, Election Code, that is required to be filed on or after the effective date of this Act. A report under that chapter that is required to be filed before the effective date of this Act is governed by the law in effect on the date the report is required to be filed, and the former law is continued in effect for that purpose. SECTION 6. (a) Not later than December 1, 2025, the Texas Ethics Commission shall adopt rules as required by Section 254.04015, Election Code, as added by this Act. (b) Notwithstanding Section 254.04015, Election Code, as added by this Act, a political subdivision is not subject to an administrative penalty under that section before January 1, 2026. SECTION 7. This Act takes effect September 1, 2025.