BILL ANALYSIS Senate Research Center C.S.S.B. 3014 89R23583 MZM-F By: Creighton State Affairs 4/10/2025 Committee Report (Substituted) AUTHOR'S / SPONSOR'S STATEMENT OF INTENT S.B. 3014 makes changes to the scope of the penalties that the Texas Ethics Commission (TEC) is able to assess on campaign filers. The bill aims to create a fairer system that distinguishes between intentional misconduct and simple mistakes in campaign filings. This bill does the following key things: Technical Errors Requires that TEC adopt rules clearly outlining the types of technical and clerical errors and the time and matter for correcting such errors. Prohibits TEC from assessing penalties for technical or clerical errors. Civil Penalties Requires a violation to be "knowing" for a civil penalty to be assessed. Presumes that an error is not knowing if the amount at issue is less than $500. Limits the civil penalty for a late filing to $500. Criminal Penalties Requires the failure to file a financial statement on three separate occasions before it becomes a criminal offense. Strikes the requirement that TEC refer a late filing to the state prosecuting attorney. (Original Author's/Sponsor's Statement of Intent) C.S.S.B. 3014 amends current law relating to the regulation of technical and clerical errors contained in registrations and reports filed with the Texas Ethics Commission and the commission's authority regarding the imposition of certain penalties. RULEMAKING AUTHORITY Rulemaking authority previously granted to the Texas Ethics Commission is modified in SECTION 1 (Section 571.0631, Government Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 571.0631, Government Code, as follows: Sec. 571.0631. New heading: RULES CONCERNING TECHNICAL AND CLERICAL ERRORS. (a) Creates this subsection from existing text. Requires the Texas Ethics Commission (TEC) to adopt rules prescribing procedures for resolving technical and clerical errors contained in registrations and reports filed under laws within TEC's jurisdiction. Requires that the rules clearly outline certain items. Deletes existing text requiring TEC to adopt rules prescribing procedures for investigating technical and clerical violations of laws within TEC's jurisdiction. Deletes existing text requiring TEC, for registrations and reports filed under Chapter 305 (Registration of Lobbyists), to consider clerical violations to include obvious typographical errors. (b) Requires a registrant filing a registration or report, rather than authorizes a registrant filing a registration or report under Chapter 305, to correct obvious typographical errors, rather than to correct obvious typographical errors without penalty, by filing either a corrected registration or report or an updated or amended registration or report. (c) Prohibits TEC, notwithstanding any other law, from assessing a penalty or fine against a person who files a registration or report that contains a technical or clerical error based solely on the error. SECTION 2. Amends Section 571.173, Government Code, as follows: Sec. 571.173. CIVIL PENALTY FOR DELAY OR VIOLATION. (a) Creates this subsection from existing text and makes no further changes. (b) Provides that TEC, notwithstanding any other law, is authorized only to impose a civil penalty for a violation of a law administered and enforced by TEC if the violation is committed knowingly. Provides that, for purposes of this subsection, a violation is presumed to have not been committed knowingly if the amount at issue is less than $500. SECTION 3. Amends the heading to Section 571.1731, Government Code, to read as follows: Sec. 571.1731. WAIVER OR REDUCTION OF PENALTY. SECTION 4. Amends Section 571.1731(a), to delete existing text authorizing a person to request the waiver or reduction of a civil penalty under Section 305.033(b) (relating to if a registration or report is determined to be late) or 572.033(b) (relating to if a statement is determined to be late) of this code or Section 254.042(b) (relating to if a report other than a report under certain sections that is required to be filed following the primary or general election is determined to be late), Election Code, by submitting an affidavit to the executive director that states the filer's reasons for requesting a waiver or reduction. SECTION 5. Amends Sections 572.033(a) and (b), Government Code, as follows: (a) Deletes existing text requiring TEC, on making a determination that the statement is late, to immediately mail a notice of the determination to the appropriate attorney for the state. (b) Deletes existing text requiring TEC, if a statement is more than 30 days late, to issue a warning of liability by registered mail to the individual responsible for the filing. Deletes existing text providing that, 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 TEC rule, but not to exceed $10,000. SECTION 6. Amends Section 572.034(a), Government Code, as follows: (a) Provides that an individual commits an offense if the individual is a state officer or candidate or state party chair and knowingly and wilfully fails to file a financial statement as required by Subchapter B (Personal Financial Statement) on three separate occasions. SECTION 7. Repealers: Sections 571.079 (Posting Information Relating to Unpaid Penalties on Website) and 572.007 (Penalties Imposed by Commission), Government Code. Repealer: Section 572.033(c) (relating to providing that Section 572.033 (Civil Penalty) is cumulative of any other available sanction for a late filing of a sworn statement), Government Code. SECTION 8. Provides that the changes in law made by this Act apply only to a registration, report, or statement that is required to be filed with TEC on or after the effective date of this Act. Provides that a registration, report, or statement that is required to be filed before the effective date of this Act is governed by the law in effect on the date the registration, report, or statement is required to be filed, and the former law is continued in effect for that purpose. SECTION 9. Provides that the changes in law made by this Act apply only to conduct constituting a violation of a law administered and enforced by TEC that occurs on or after the effective date of this Act. Provides that a registration, report, or statement that is required to be filed before the effective date of this Act is governed by the law in effect on the date the registration, report, or statement is required to be filed, and the former law is continued in effect for that purpose. SECTION 10. Effective date: September 1, 2025.
BILL ANALYSIS
Senate Research Center C.S.S.B. 3014
89R23583 MZM-F By: Creighton
State Affairs
4/10/2025
Committee Report (Substituted)
Senate Research Center
C.S.S.B. 3014
89R23583 MZM-F
By: Creighton
State Affairs
4/10/2025
Committee Report (Substituted)
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
S.B. 3014 makes changes to the scope of the penalties that the Texas Ethics Commission (TEC) is able to assess on campaign filers. The bill aims to create a fairer system that distinguishes between intentional misconduct and simple mistakes in campaign filings.
This bill does the following key things:
Technical Errors
Requires that TEC adopt rules clearly outlining the types of technical and clerical errors and the time and matter for correcting such errors.
Prohibits TEC from assessing penalties for technical or clerical errors.
Civil Penalties
Requires a violation to be "knowing" for a civil penalty to be assessed.
Presumes that an error is not knowing if the amount at issue is less than $500.
Limits the civil penalty for a late filing to $500.
Criminal Penalties
Requires the failure to file a financial statement on three separate occasions before it becomes a criminal offense.
Strikes the requirement that TEC refer a late filing to the state prosecuting attorney.
(Original Author's/Sponsor's Statement of Intent)
C.S.S.B. 3014 amends current law relating to the regulation of technical and clerical errors contained in registrations and reports filed with the Texas Ethics Commission and the commission's authority regarding the imposition of certain penalties.
RULEMAKING AUTHORITY
Rulemaking authority previously granted to the Texas Ethics Commission is modified in SECTION 1 (Section 571.0631, Government Code) of this bill.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 571.0631, Government Code, as follows:
Sec. 571.0631. New heading: RULES CONCERNING TECHNICAL AND CLERICAL ERRORS. (a) Creates this subsection from existing text. Requires the Texas Ethics Commission (TEC) to adopt rules prescribing procedures for resolving technical and clerical errors contained in registrations and reports filed under laws within TEC's jurisdiction. Requires that the rules clearly outline certain items.
Deletes existing text requiring TEC to adopt rules prescribing procedures for investigating technical and clerical violations of laws within TEC's jurisdiction. Deletes existing text requiring TEC, for registrations and reports filed under Chapter 305 (Registration of Lobbyists), to consider clerical violations to include obvious typographical errors.
(b) Requires a registrant filing a registration or report, rather than authorizes a registrant filing a registration or report under Chapter 305, to correct obvious typographical errors, rather than to correct obvious typographical errors without penalty, by filing either a corrected registration or report or an updated or amended registration or report.
(c) Prohibits TEC, notwithstanding any other law, from assessing a penalty or fine against a person who files a registration or report that contains a technical or clerical error based solely on the error.
SECTION 2. Amends Section 571.173, Government Code, as follows:
Sec. 571.173. CIVIL PENALTY FOR DELAY OR VIOLATION. (a) Creates this subsection from existing text and makes no further changes.
(b) Provides that TEC, notwithstanding any other law, is authorized only to impose a civil penalty for a violation of a law administered and enforced by TEC if the violation is committed knowingly. Provides that, for purposes of this subsection, a violation is presumed to have not been committed knowingly if the amount at issue is less than $500.
SECTION 3. Amends the heading to Section 571.1731, Government Code, to read as follows:
Sec. 571.1731. WAIVER OR REDUCTION OF PENALTY.
SECTION 4. Amends Section 571.1731(a), to delete existing text authorizing a person to request the waiver or reduction of a civil penalty under Section 305.033(b) (relating to if a registration or report is determined to be late) or 572.033(b) (relating to if a statement is determined to be late) of this code or Section 254.042(b) (relating to if a report other than a report under certain sections that is required to be filed following the primary or general election is determined to be late), Election Code, by submitting an affidavit to the executive director that states the filer's reasons for requesting a waiver or reduction.
SECTION 5. Amends Sections 572.033(a) and (b), Government Code, as follows:
(a) Deletes existing text requiring TEC, on making a determination that the statement is late, to immediately mail a notice of the determination to the appropriate attorney for the state.
(b) Deletes existing text requiring TEC, if a statement is more than 30 days late, to issue a warning of liability by registered mail to the individual responsible for the filing. Deletes existing text providing that, 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 TEC rule, but not to exceed $10,000.
SECTION 6. Amends Section 572.034(a), Government Code, as follows:
(a) Provides that an individual commits an offense if the individual is a state officer or candidate or state party chair and knowingly and wilfully fails to file a financial statement as required by Subchapter B (Personal Financial Statement) on three separate occasions.
SECTION 7. Repealers: Sections 571.079 (Posting Information Relating to Unpaid Penalties on Website) and 572.007 (Penalties Imposed by Commission), Government Code.
Repealer: Section 572.033(c) (relating to providing that Section 572.033 (Civil Penalty) is cumulative of any other available sanction for a late filing of a sworn statement), Government Code.
SECTION 8. Provides that the changes in law made by this Act apply only to a registration, report, or statement that is required to be filed with TEC on or after the effective date of this Act. Provides that a registration, report, or statement that is required to be filed before the effective date of this Act is governed by the law in effect on the date the registration, report, or statement is required to be filed, and the former law is continued in effect for that purpose.
SECTION 9. Provides that the changes in law made by this Act apply only to conduct constituting a violation of a law administered and enforced by TEC that occurs on or after the effective date of this Act. Provides that a registration, report, or statement that is required to be filed before the effective date of this Act is governed by the law in effect on the date the registration, report, or statement is required to be filed, and the former law is continued in effect for that purpose.
SECTION 10. Effective date: September 1, 2025.