Texas 2025 - 89th Regular

Texas Senate Bill SB2403 Latest Draft

Bill / Introduced Version Filed 03/12/2025

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                            89R11916 MZM-D
 By: Middleton, et al. S.B. No. 2403




 A BILL TO BE ENTITLED
 AN ACT
 relating to the functions and duties of the Texas Ethics
 Commission.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Section 254.036(b), Election Code, is amended to
 read as follows:
 (b)  Except as provided by Subsection [(c) or] (e), each
 report filed under this chapter with the commission must be filed by
 computer diskette, modem, or other means of electronic transfer,
 using computer software provided by the commission or computer
 software that meets commission specifications for a standard file
 format.
 SECTION 2.  Section 254.038(c), Election Code, is amended to
 read as follows:
 (c)  A report under this section shall be filed
 electronically, by telephonic facsimile machine, or by hand, in the
 form required by Section 254.036.  The commission must receive a
 report under this section filed by telephonic facsimile machine or
 hand not later than 5 p.m. of the first business day after the date
 the contribution is accepted.  The commission must receive a report
 under this section filed electronically not later than midnight of
 the first business day after the date the contribution is accepted.
 A report under this section is not required to be accompanied by the
 affidavit required under Section 254.036(h) or to be submitted on a
 form prescribed by the commission.  [A report under this section
 that complies with Section 254.036(a) must be accompanied by an
 affidavit under Section 254.036(c)(1) unless the candidate or
 committee has submitted an affidavit under Section 254.036(c)(1)
 with another report filed in connection with the election for which
 a report is required under this section.]
 SECTION 3.  Section 254.039(a-1), Election Code, is amended
 to read as follows:
 (a-1)  A report under this section shall be filed
 electronically, by telephonic facsimile machine, or by hand, in the
 form required by Section 254.036.  The commission must receive a
 report under this section not later than 5 p.m. of the first
 business day after the date the contribution is accepted or the
 expenditure is made.  A report under this section is not required to
 be accompanied by the affidavit required under Section 254.036(h)
 or to be submitted on a form prescribed by the commission.  [A
 report under this section that complies with Section 254.036(a)
 must be accompanied by an affidavit under Section 254.036(c)(1)
 unless the committee has submitted an affidavit under Section
 254.036(c)(1) with another report filed in connection with the
 election for which a report is required under this section.]
 SECTION 4.  Sections 254.042(a) and (b), Election Code, are
 amended to read as follows:
 (a)  The commission shall determine from any available
 evidence whether a report required to be filed with the commission
 under this chapter is late.  On making that determination, the
 commission shall immediately provide [mail a notice of the
 determination] to the person required to file the report notice of
 the determination.
 (b)  If a report other than a report under Section
 254.064(c), 254.124(c), or 254.154(c) [or the first report under
 Section 254.063 or 254.123] that is required to be filed following
 the primary or general election is determined to be late, the person
 required to file the report is liable to the state for a civil
 penalty of $500.  If a report under Section 254.064(c), 254.124(c),
 or 254.154(c) [or the first report under Section 254.063 or
 254.153] that is required to be filed following the primary or
 general election is determined to be late, the person required to
 file the report is liable to the state for a civil penalty of $500
 for the first day the report is late and $100 for each day
 thereafter that the report is late and continuing only through the
 day of the election.  If a report is more than 30 days late, the
 commission shall issue a warning of liability [by registered mail]
 to the person required to file the report.  If the penalty is not
 paid before the 10th day after the date on which the warning is
 received, the person is liable for a civil penalty in an amount
 determined by commission rule, but not to exceed $10,000.
 SECTION 5.  Sections 254.157 and 254.158, Election Code, are
 amended to read as follows:
 Sec. 254.157.  MONTHLY REPORTING SCHEDULE. (a)  The
 campaign treasurer of a general-purpose committee filing monthly
 reports shall file a report not later than the 10th [fifth] day of
 the month following the period covered by the report.  A report
 covering the month preceding an election in which the committee is
 involved must be received by the authority with whom the report is
 required to be filed not later than the 10th [fifth] day of the
 month following the period covered by the report.
 (b)  A monthly report covers the period beginning the first
 [26th] day of each month and continuing through the last [25th] day
 of the [following] month[, except that the period covered by the
 first report begins January 1 and continues through January 25].
 Sec. 254.158.  EXCEPTION TO MONTHLY REPORTING SCHEDULE.  If
 the campaign treasurer appointment of a general-purpose committee
 filing monthly reports is filed after January 1 of the year in which
 monthly reports are filed, the period covered by the first monthly
 report begins the day the appointment is filed and continues
 through the last [25th] day of the month in which the appointment is
 filed [unless the appointment is filed the 25th or a succeeding day
 of the month.  In that case, the period continues through the 25th
 day of the month following the month in which the appointment is
 filed].
 SECTION 6.  Sections 305.033(a) and (c), Government Code,
 are amended to read as follows:
 (a)  The commission shall determine from any available
 evidence whether a registration or report required to be filed with
 the commission under this chapter is late.  A registration filed
 without the fee required by Section 305.005 is considered to be
 late.  On making a determination that a required registration or
 report is late, the commission shall immediately provide [mail a
 notice of the determination] to the person responsible for the
 filing, [to] the commission, and [to] the appropriate attorney for
 the state notice of the determination.
 (c)  If a registration or report is more than 30 days late,
 the commission shall issue a warning of liability [by registered
 mail] to the person responsible for the filing.  If the penalty is
 not paid before the 10th day after the date on which the warning is
 received, the person is liable for a penalty in an amount determined
 by commission rule, but not to exceed $10,000.
 SECTION 7.  Section 305.034(b), Government Code, is amended
 to read as follows:
 (b)  If [Whenever] the commission determines that a person
 has failed to file any required form, statement, or report as
 required by this chapter, the commission shall provide [send a
 written statement of this finding] to the person written notice of
 the determination [involved].  [Notice to the person involved must
 be sent by certified mail.]
 SECTION 8.  Section 571.022, Government Code, is amended to
 read as follows:
 Sec. 571.022.  SUNSET PROVISION.  The commission is subject
 to review under Chapter 325 (Texas Sunset Act), but is not abolished
 under that chapter.  The commission shall be reviewed during the
 periods in which state agencies abolished in 2037 [2013] and every
 12th year after that year are reviewed.
 SECTION 9.  Section 571.0271, Government Code, is amended by
 amending Subsection (b) and adding Subsection (d) to read as
 follows:
 (b)  The training program must provide the person with
 information regarding:
 (1)  the law governing [legislation that created the]
 commission operations;
 (2)  the programs, functions, rules, and budget of
 [operated by] the commission;
 (3)  the scope of and limitations on the rulemaking
 authority [role and functions] of the commission;
 (4)  [the rules of the commission, with an emphasis on
 the rules that relate to disciplinary and investigatory authority;
 [(5)  the current budget for the commission;
 [(6)]  the results of the most recent formal audit of
 the commission;
 (5) [(7)]  the requirements of:
 (A)  laws relating to [the] open meetings [law],
 public information, administrative procedure, and disclosing
 conflicts-of-interest [Chapter 551]; and
 (B)  [the public information law, Chapter 552;
 [(C)  the administrative procedure law, Chapter
 2001; and
 [(D)]  other laws applicable to members of a state
 policy-making body in performing their duties [relating to public
 officials, including conflict-of-interest laws]; and
 (6) [(8)]  any applicable ethics policies adopted by
 the commission.
 (d)  The executive director of the commission shall create a
 training manual that includes information required by Subsection
 (b). The executive director shall distribute a copy of the training
 manual annually to each member of the commission. Each member of
 the commission shall sign and submit to the executive director a
 statement acknowledging that the member received and has reviewed
 the training manual.
 SECTION 10.  Subchapter B, Chapter 571, Government Code, is
 amended by adding Section 571.033 to read as follows:
 Sec. 571.033.  METHOD OF PROVIDING NOTICE. (a)  The
 commission by rule shall prescribe the method by which the
 commission will provide a notice required by:
 (1)  Chapter 305;
 (2)  this chapter;
 (3)  Chapter 572; or
 (4)  Title 15, Election Code.
 (b)  The method the commission prescribes under Subsection
 (a) for providing notice may include electronic mail.
 SECTION 11.  Section 571.064(b), Government Code, is amended
 to read as follows:
 (b)  If a law, other than Sections 305.005(g) and (g-1),
 administered and enforced by the commission sets dollar amounts or
 categories of amounts as reporting thresholds or if the commission
 sets those amounts, the commission [annually] shall decennially
 adjust those thresholds [upward to the nearest multiple of $10] in
 accordance with the percentage increase for the previous year in
 the Consumer Price Index for Urban Consumers published by the
 Bureau of Labor Statistics of the United States Department of Labor
 to:
 (1)  the nearest multiple of $10 if the amount is less
 than $100;
 (2)  the nearest multiple of $100 if the amount is $100
 or more but less than $10,000; or
 (3)  the nearest multiple of $1,000 if the amount is
 $10,000 or more.
 SECTION 12.  The heading to Subchapter E, Chapter 571,
 Government Code, is amended to read as follows:
 SUBCHAPTER E. CATEGORIZATION OF VIOLATIONS; COMPLAINT PROCEDURES
 AND HEARINGS
 SECTION 13.  Section 571.1211, Government Code, is amended
 by amending Subdivisions (2) and (3) and adding Subdivision (4) to
 read as follows:
 (2)  "Category One violation" means a technical,
 clerical, or de minimis violation of a law within jurisdiction of
 the commission [as to which it is generally not difficult to
 ascertain whether the violation occurred or did not occur,
 including:
 [(A)  the failure by a person required to file a
 statement or report to:
 [(i)  file the required statement or report
 in a manner that complies with applicable requirements; or
 [(ii)  timely file the required statement or
 report;
 [(B)  a violation of Section 255.001, Election
 Code;
 [(C)  a misrepresentation in political
 advertising or a campaign communication relating to the office held
 by a person in violation of Section 255.006, Election Code;
 [(D)  a failure to include in any written
 political advertising intended to be seen from a road the
 right-of-way notice in violation of Section 259.001, Election Code;
 or
 [(E)  a failure to timely respond to a written
 notice under Section 571.123(b)].
 (3)  "Category Two violation" means a violation of a
 law within the jurisdiction of the commission that is not a Category
 One violation or a Category Three violation.
 (4)  "Category Three violation" means a serious
 violation of a law within the jurisdiction of the commission.
 SECTION 14.  Subchapter E, Chapter 571, Government Code, is
 amended by adding Sections 571.1213, 571.1232, and 571.1233 to read
 as follows:
 Sec. 571.1213.  CATEGORIZATION OF VIOLATIONS.  (a) The
 commission shall categorize each violation of law within the
 commission's jurisdiction as a Category One violation, a Category
 Two violation, or a Category Three violation. A violation of law
 may by categorized as more than one category of violation.  In
 determining the category of a violation, the commission shall
 consider, as applicable:
 (1)  the dollar amount at issue for a violation;
 (2)  the timing of the report relative to an election or
 legislative session;
 (3)  the penalty of any criminal offense associated
 with a violation;
 (4)  the potential a violation has to:
 (A)  conceal evidence of a person's influence over
 a public official; or
 (B)  distort a public disclosure; and
 (5)  any other consideration the commission determines
 necessary to prevent harm to the public.
 (b)  The commission shall publish on the commission's
 Internet website the violation categorizations described by
 Subsection (a).
 (c)  Before the commission adopts a new violation
 categorization or changes an existing violation categorization
 described by Subsection (a), the commission shall:
 (1)  publish the proposed violation categorization in
 the Texas Register for a period determined by commission rule; and
 (2)  hold an open meeting to obtain public comment on
 the proposed violation categorization.
 Sec. 571.1232.  POLICY ON PRIORITIZING COMPLAINTS. (a) The
 commission shall adopt a written policy on prioritizing the
 investigation of sworn complaints in accordance with this
 subchapter based on the risk the commission determines the
 violation alleged in the complaint poses to public disclosure
 integrity.
 (b)  In adopting the policy, the commission shall ensure a
 sworn complaint is prioritized based on:
 (1)  the category of the violation alleged in the
 complaint;
 (2)  whether evidence exists demonstrating an intent in
 connection with the violation alleged in the complaint to conceal a
 person's influence over a public official or distort a public
 disclosure;
 (3)  the compliance record of the respondent with laws
 within the commission's jurisdiction based on:
 (A)  previous sworn complaints filed against the
 respondent;
 (B)  repeat violations committed by the
 respondent; and
 (C)  any reviews the commission conducted under
 Section 571.069 of a statement or report filed by the respondent;
 (4)  negative media attention of the matter that is the
 subject of the complaint; and
 (5)  any other risk-based factors the commission
 identifies.
 (c)  The policy the commission adopts under this section must
 include a process for the commission to reprioritize the
 investigation of a sworn complaint as the commission determines
 necessary.
 (d)  The commission shall:
 (1)  publish on the commission's Internet website the
 policy the commission adopts under this section; and
 (2)  train commission staff on using the policy in
 processing sworn complaints.
 (e)  Before the commission adopts or changes the policy
 required by this section, the commission shall:
 (1)  publish the proposed policy in the Texas Register
 for a period determined by commission rule; and
 (2)  hold an open meeting to obtain public comment on
 the proposed policy.
 Sec. 571.1233.  DISCOVERY REQUIREMENTS. The commission
 shall adopt rules that prescribe the procedure required of
 commission staff and respondents to agree to a discovery control
 plan to conduct discovery in connection with a sworn complaint. The
 rules must:
 (1)  outline a period during which all discovery must
 be completed and set appropriate limits to the amount of discovery
 that may be requested; and
 (2)  comply with the Texas Rules of Civil Procedure,
 except that the commission shall determine the level of discovery
 under Rule 190, Texas Rules of Civil Procedure, appropriate for the
 category of the violation alleged in a complaint and the policies
 the commission adopts under Section 571.1232 on prioritizing the
 investigation of complaints.
 SECTION 15.  Section 571.124(e), Government Code, is amended
 to read as follows:
 (e)  If the executive director determines that the
 commission has jurisdiction, the notice under Section 571.123(b)
 must include:
 (1)  a statement that the commission has jurisdiction
 over the violation of law alleged in the complaint;
 (2)  a statement of whether the complaint will be
 processed as a Category One violation, [or] a Category Two
 violation, or a Category Three violation [, subject to
 reconsideration as provided for by Section 571.1212];
 (3)  the date by which the respondent is required to
 respond to the notice;
 (4)  a copy of the complaint and the rules of procedure
 of the commission;
 (5)  a statement of the rights of the respondent;
 (6)  a statement inviting the respondent to provide to
 the commission any information relevant to the complaint; and
 (7)  a statement that a failure to timely respond to the
 notice will be treated as a separate violation.
 SECTION 16.  Section 571.1244, Government Code, is amended
 to read as follows:
 Sec. 571.1244.  PRELIMINARY REVIEW AND PRELIMINARY REVIEW
 PROCEDURES.  The commission shall adopt procedures for the conduct
 of preliminary reviews and preliminary review hearings.  The
 procedures must include:
 (1)  a reasonable time for responding to questions
 submitted by the commission and commission staff and subpoenas
 issued by the commission; [and]
 (2)  the tolling or extension of otherwise applicable
 deadlines where:
 (A)  the commission issues a subpoena and the
 commission's meeting schedule makes it impossible both to provide a
 reasonable time for response and to comply with the otherwise
 applicable deadlines; or
 (B)  the commission determines that, despite
 commission staff's diligence and the reasonable cooperation of the
 respondent, a matter is too complex to resolve within the otherwise
 applicable deadlines without compromising either the commission
 staff's investigation or the rights of the respondent; and
 (3)  a deadline on the convening of a panel to conduct a
 preliminary review hearing.
 SECTION 17.  Sections 571.125(a), (b), (d), and (e),
 Government Code, are amended to read as follows:
 (a)  A panel of two [The] commission members selected in
 accordance with Section 571.1251 shall conduct a preliminary review
 hearing if:
 (1)  following the preliminary review, the [commission
 and the] respondent rejects [cannot agree to] the resolution
 proposed by commission staff of the complaint or motion
 [disposition of the complaint or motion]; or
 (2)  the respondent in writing requests a hearing.
 (b)  The commission shall provide [written notice] to the
 complainant, if any, and the respondent written notice that
 includes:
 (1)  [of] the date, time, and place the panel
 [commission] will conduct the preliminary review hearing; and
 (2)  a statement that if the commission orders a formal
 hearing because the complaint could not be resolved and settled as a
 result of the preliminary review hearing, the formal hearing may
 result in a higher sanction than the one the panel proposes for the
 preliminary review hearing.
 (d)  During a preliminary review hearing, the panel
 [commission]:
 (1)  may consider all submitted evidence related to the
 complaint or to the subject matter of a motion under Section
 571.124(b);
 (2)  may review any documents or material related to
 the complaint or to the motion; and
 (3)  shall determine whether there is credible evidence
 that provides cause for the panel [commission] to conclude that a
 violation within the jurisdiction of the commission has occurred.
 (e)  During a preliminary review hearing, the respondent may
 appear before the panel [commission] with the assistance of
 counsel, if desired by the respondent, and present any relevant
 evidence, including a written statement.
 SECTION 18.  Subchapter E, Chapter 571, Government Code, is
 amended by adding Section 571.1251 to read as follows:
 Sec. 571.1251.  SELECTION OF PANEL TO CONDUCT PRELIMINARY
 REVIEW HEARING.  The commission shall adopt rules for the selection
 of commission members to serve on panels to conduct preliminary
 review hearings.  The rules must ensure that:
 (1)  a panel is composed of two commission members
 selected on a rotating basis; and
 (2)  each member of the panel is a member of a different
 political party.
 SECTION 19.  Section 571.126, Government Code, is amended to
 read as follows:
 Sec. 571.126.  PRELIMINARY REVIEW HEARING: RESOLUTION. (a)
 Except as provided by Subsection (e), as [As] soon as practicable
 after the completion of a preliminary review hearing, the panel
 [commission] by vote shall issue a decision stating:
 (1)  whether there is credible evidence for the panel
 [commission] to determine that a violation within the jurisdiction
 of the commission has occurred and whether the violation is a
 Category One violation [technical or de minimis]; or
 (2)  that there is insufficient evidence for the panel
 [commission] to determine whether a violation within the
 jurisdiction of the commission has occurred.
 (b)  If the panel [commission] determines that there is
 credible evidence for the panel [commission] to determine that a
 violation within the commission's jurisdiction has occurred, the
 panel [commission] shall propose to the respondent a resolution to
 resolve and settle the complaint or motion to the extent possible.
 If the panel [commission] successfully resolves and settles the
 complaint or motion, not later than the fifth business day after the
 date the respondent accepts the proposed resolution [of the final
 resolution of the complaint or motion], the commission shall
 provide [send] to the complainant, if any, and the respondent a copy
 of the decision stating the panel's [commission's] determination
 and written notice of the resolution and the terms of the
 resolution.  If the panel [commission] is unsuccessful in resolving
 and settling the complaint or motion, the panel [commission] shall:
 (1)  order a formal hearing to be held in accordance
 with Sections 571.127 [571.129] through 571.132; and
 (2)  not later than the fifth business day after the
 date the panel determines that there is credible evidence to
 determine that a violation has occurred or the date the respondent
 rejects the panel's proposed resolution [of the decision], send to
 the complainant, if any, and the respondent:
 (A)  a copy of the decision;
 (B)  written notice of the date, time, and place
 of the formal hearing;
 (C)  a statement of the nature of the alleged
 violation;
 (D)  a description of the evidence of the alleged
 violation;
 (E)  a copy of the complaint or motion;
 (F)  a copy of the commission's rules of
 procedure; and
 (G)  a statement of the rights of the respondent.
 (c)  If the panel [commission] determines that there is
 credible evidence [for the commission] to determine that a
 violation within the jurisdiction of the commission has not
 occurred [, the commission shall]:
 (1)  the panel shall dismiss the complaint or motion;
 and
 (2)  the commission shall not later than the fifth
 business day after the date of the dismissal, send to the
 complainant, if any, and the respondent a copy of the decision
 stating the panel's [commission's] determination and written notice
 of the dismissal and the grounds for dismissal.
 (d)  If the panel [commission] determines that there is
 insufficient credible evidence [for the commission] to determine
 that a violation within the jurisdiction of the commission has
 occurred, the panel [commission] may dismiss the complaint or
 motion or promptly order [conduct] a formal hearing to be held under
 Sections 571.127 [571.129] through 571.132.  Not later than the
 fifth business day after the date of the panel's [commission's]
 determination under this subsection, the commission shall send to
 the complainant, if any, and the respondent a copy of the decision
 stating the panel's [commission's] determination and written notice
 of the grounds for the determination.
 (e)  If, because of a tie vote, the panel cannot issue a
 decision under Subsection (a), the panel shall order a formal
 hearing to be held under Sections 571.127 through 571.132. Not
 later than the fifth business day after the date of the vote, the
 commission shall notify the complainant, if any, and the respondent
 of the date, time, and place of the hearing.
 (f)  Except as provided by other law or commission rule, if
 the respondent accepts the proposed resolution under Subsection
 (b), the panel shall submit the proposed resolution to the
 commission for approval.
 (g)  A commission member that serves on a preliminary review
 hearing panel is not required to be recused from a formal hearing
 held under Sections 571.127 through 571.132.
 SECTION 20.  Subchapter E, Chapter 571, Government Code, is
 amended by adding Section 571.127 to read as follows:
 Sec. 571.127.  FORMAL HEARING: CONDUCT. (a) The commission
 may conduct a formal hearing under this subchapter or may delegate
 to the State Office of Administrative Hearings the responsibility
 of conducting a formal hearing under this subchapter.
 (b)  The commission shall adopt rules of practice regarding a
 formal hearing referred to the State Office of Administrative
 Hearings, including rules:
 (1)  on which party bears the burden of proof;
 (2)  on what standard of evidence is required;
 (3)  of evidence that may be applicable;
 (4)  on subpoena power; and
 (5)  on contempt power.
 (c)  Proceedings for a formal hearing conducted by the State
 Office of Administrative Hearings are governed by Chapter 2001.
 Notwithstanding Section 571.1233, the commission shall ensure
 rules of practice the commission adopts under Section 2001.004
 applicable to the proceedings for a formal hearing do not conflict
 with rules the State Office of Administrative Hearings adopts.
 SECTION 21.  Section 571.1731, Government Code, is amended
 by adding Subsection (d) to read as follows:
 (d)  The commission shall waive a civil penalty imposed under
 Section 305.033(b) or 572.033(b) of this code or Section
 254.042(a), Election Code, if the commission has no record of
 providing the late filing notice required by those sections.
 SECTION 22.  Section 571.177, Government Code, is amended to
 read as follows:
 Sec. 571.177.  [FACTORS CONSIDERED FOR] ASSESSMENT AND
 SCHEDULE OF SANCTION OR PENALTIES.  (a) The commission shall
 consider the following factors in assessing a sanction or civil
 penalty for a violation of a law within the commission's
 jurisdiction:
 (1)  the seriousness of the violation, including the
 nature, circumstances, consequences, extent, and gravity of the
 violation;
 (2)  the history and extent of previous violations;
 (3)  the demonstrated good faith of the violator,
 including actions taken to rectify the consequences of the
 violation;
 (4)  the penalty necessary to deter future violations;
 and
 (5)  any other matters that justice may require.
 (b)  The commission may assess graduated penalties against a
 person who repeatedly files late statements or reports in violation
 of:
 (1)  Chapter 305;
 (2)  this chapter;
 (3)  Chapter 572; or
 (4)  Title 15, Election Code.
 (c)  The commission shall establish and publish on the
 commission's Internet website a penalty schedule that outlines the
 full range and scope of penalties the commission may assess under a
 law within the commission's jurisdiction. The commission shall
 ensure the penalty schedule:
 (1)  includes the specific statutes or commission rules
 under which the commission may assess a penalty; and
 (2)  takes into consideration aggravating and
 mitigating factors related to the assessment of a penalty,
 including the severity of a violation and graduated penalties for
 repeat violations.
 SECTION 23.  The heading to Section 572.030, Government
 Code, is amended to read as follows:
 Sec. 572.030.  PREPARATION [AND MAILING] OF FORMS; NOTICE OF
 FILING REQUIREMENTS.
 SECTION 24.  Sections 572.030(b), (c), and (d), Government
 Code, are amended to read as follows:
 (b)  The commission shall mail to each individual required to
 file under this subchapter a notice that:
 (1)  states that the individual is required to file a
 financial statement under this subchapter;
 (2)  identifies the filing dates for the financial
 statement as provided by Sections 572.026 and 572.027;
 (3)  describes the manner in which the individual may
 obtain the financial statement forms and instructions from the
 commission's Internet website;
 (4)  states that on request of the individual, the
 commission will provide [mail to] the individual with a copy of the
 financial statement forms and instructions; and
 (5)  states, if applicable, the fee for mailing the
 forms and instructions and the manner in which the individual may
 pay the fee.
 (c)  The commission shall provide the notice required by
 Subsection (b) [must be mailed]:
 (1)  before the 30th day before the deadline for filing
 the financial statement under Section 572.026(a) or (c), except as
 otherwise provided by this subsection;
 (2)  not later than the 15th day after the applicable
 deadline for filing an application for a place on the ballot or a
 declaration of write-in candidacy for candidates required to file
 under Section 572.027(a), (b), or (c);
 (3)  not later than the seventh day after the date of
 appointment for individuals required to file under Section
 572.026(b), or if the legislature is in session, sooner if
 possible; and
 (4)  not later than the fifth day after the date the
 certificate of nomination is filed for candidates required to file
 under Section 572.027(d) [574.027(d)].
 (d)  The commission shall provide [mail] a copy of the
 financial statement forms and instructions to an individual on
 request of the individual not later than the third business day
 after the date the commission receives the individual's request for
 the forms and instructions.
 SECTION 25.  Sections 572.033(a) and (b), Government Code,
 are amended to read as follows:
 (a)  The commission shall determine from any available
 evidence whether a statement required to be filed under this
 subchapter is late.  On making a determination that the statement is
 late, the commission shall immediately provide [mail a notice of
 the determination] to the individual responsible for filing the
 statement and [to] the appropriate attorney for the state notice of
 the determination.
 (b)  If a statement is determined to be late, the individual
 responsible for filing the statement is liable to the state for a
 civil penalty of $500. If a statement is more than 30 days late, the
 commission shall issue a warning of liability [by registered mail]
 to the individual responsible for the filing.  If the penalty is not
 paid before the 10th day after the date on which the warning is
 received, the individual is liable for a civil penalty in an amount
 determined by commission rule, but not to exceed $10,000.
 SECTION 26.  The following provisions are repealed:
 (1)  Sections 254.036(c), (c-1), and (g), Election
 Code;
 (2)  Section 571.032, Government Code; and
 (3)  Section 571.1212, Government Code.
 SECTION 27.  Section 254.042, Election Code, as amended by
 this Act, applies only to a report that is required to be filed
 under Chapter 254, Election Code, 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 was required to be filed, and the
 former law is continued in effect for that purpose.
 SECTION 28.  (a) Except as provided by Subsection (b) of
 this section, Section 571.0271, Government Code, as amended by this
 Act, applies to a member of the Texas Ethics Commission appointed
 before, on, or after the effective date of this Act.
 (b)  A member of the Texas Ethics Commission who, before the
 effective date of this Act, completed the training program required
 by Section 571.0271, Government Code, as that law existed before
 the effective date of this Act, is only required to complete
 additional training on the subjects added by this Act to the
 training program required by Section 571.0271, Government Code. A
 member described by this subsection may not vote, deliberate, or be
 counted as a member in attendance at a meeting of the Texas Ethics
 Commission held on or after December 1, 2025, until the member
 completes the additional training.
 SECTION 29.  This Act takes effect September 1, 2025.