Bill Text: TX HB1877 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to the ethics of public servants, including regulations relating to certain contributions, expenditures, and reports, and certain authority and duties of the Texas Ethics Commission; creating a criminal offense.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2019-03-20 - Left pending in committee [HB1877 Detail]
Download: Texas-2019-HB1877-Introduced.html
86R8693 JG-D | ||
By: Davis of Harris | H.B. No. 1877 |
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relating to the ethics of public servants, including regulations | ||
relating to certain contributions, expenditures, and reports, and | ||
certain authority and duties of the Texas Ethics Commission; | ||
creating a criminal offense. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 251.005(d), Election Code, is amended to | ||
read as follows: | ||
(d) An out-of-state political committee that does not file a | ||
campaign treasurer appointment shall comply with Sections | ||
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SECTION 2. Subchapter A, Chapter 253, Election Code, is | ||
amended by adding Section 253.006 to read as follows: | ||
Sec. 253.006. UNLAWFUL USE OF PUBLIC FUNDS FOR | ||
CONTRIBUTIONS OR EXPENDITURES. (a) An officer or employee of a | ||
political subdivision may not spend or authorize the spending of | ||
public funds to make a political contribution or a political | ||
expenditure. | ||
(b) An officer or employee of a political subdivision may | ||
not directly or indirectly employ a person to use public funds to | ||
make an unlawful political contribution or political expenditure. | ||
(c) A person who violates Subsection (a) or (b) commits an | ||
offense. An offense under this section is a Class A misdemeanor. | ||
SECTION 3. Subchapter D, Chapter 253, Election Code, is | ||
amended by adding Section 253.105 to read as follows: | ||
Sec. 253.105. CONTRIBUTIONS TO DIRECT EXPENDITURE ONLY | ||
COMMITTEES. A corporation or labor organization may make a | ||
political contribution from its own property to a political | ||
committee that: | ||
(1) is not established or controlled by a candidate or | ||
an officeholder; | ||
(2) makes or intends to make direct campaign | ||
expenditures; | ||
(3) does not make or intend to make political | ||
contributions to: | ||
(A) a candidate; | ||
(B) an officeholder; | ||
(C) a specific-purpose committee established or | ||
controlled by a candidate or an officeholder; or | ||
(D) a political committee that makes or intends | ||
to make political contributions to a candidate, an officeholder, or | ||
a specific-purpose committee established or controlled by a | ||
candidate or an officeholder; and | ||
(4) has filed an affidavit with the commission stating | ||
the committee's intention to operate as described by Subdivisions | ||
(2) and (3). | ||
SECTION 4. Section 254.161, Election Code, is amended to | ||
read as follows: | ||
Sec. 254.161. NOTICE TO CANDIDATE AND OFFICEHOLDER OF | ||
CONTRIBUTIONS AND EXPENDITURES. If a general-purpose committee | ||
other than the principal political committee of a political party | ||
or a political committee established by a political party's county | ||
executive committee accepts political contributions or makes | ||
political expenditures for a candidate or officeholder, notice of | ||
that fact shall be given to the affected candidate or officeholder | ||
as provided by Section 254.128 for a specific-purpose committee. | ||
An out-of-state political committee that is required to comply with | ||
this section shall designate an officer of the committee to provide | ||
the notice. | ||
SECTION 5. Section 254.261, Election Code, is amended by | ||
adding Subsection (e) to read as follows: | ||
(e) This section applies to an out-of-state political | ||
committee that does not file a campaign treasurer appointment. | ||
SECTION 6. Section 302.021(a), Government Code, is amended | ||
to read as follows: | ||
(a) A speaker candidate or former speaker candidate commits | ||
an offense if the person: | ||
(1) knowingly fails to file the declaration of | ||
candidacy required by Section 302.0121; | ||
(2) knowingly fails to file the statement required by | ||
Section 302.013; | ||
(3) knowingly accepts a contribution, loan, or promise | ||
of a contribution or loan in violation of Section 302.0121(c); | ||
(4) [ |
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who uses political contributions, interest earned on political | ||
contributions, or an asset purchased with political contributions | ||
to make the contribution in violation of Section 302.0191; | ||
(5) [ |
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than those enumerated in Section 302.020; | ||
(6) [ |
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purchased with contributions, or interest or other income earned on | ||
contributions in violation of Section 302.0201(b); or | ||
(7) [ |
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unexpended campaign funds as required by Section 302.0201(d). | ||
SECTION 7. Subchapter B, Chapter 571, Government Code, is | ||
amended by adding Section 571.033 to read as follows: | ||
Sec. 571.033. NOTIFICATION PROCEDURES. (a) Except as | ||
provided by Subsection (b), the commission may adopt rules | ||
prescribing how the commission will notify any person or provide | ||
any notice required by this subtitle, Chapter 305 of this code, or | ||
Title 15, Election Code. | ||
(b) Subsection (a) does not authorize the commission to | ||
adopt rules prescribing how the commission will notify any person | ||
or provide any notice required by Subchapter E or F of this chapter | ||
or how the commission will issue a warning of liability under | ||
Section 254.042(b), Election Code. | ||
SECTION 8. Section 571.071, Government Code, is amended by | ||
amending Subsection (c) and adding Subsection (d) to read as | ||
follows: | ||
(c) The commission may provide a seminar for persons | ||
required to register under Chapter 305 that addresses issues | ||
involving lobbying, political contributions and expenditures, and | ||
other issues as determined by the commission. The commission may | ||
charge a fee for attending the seminar in an amount necessary to | ||
cover the costs associated with the seminar, including the cost of | ||
providing food or nonalcoholic beverages to attendees. | ||
(d) The commission may provide a seminar that addresses the | ||
laws administered and enforced by the commission and any other | ||
relevant laws, as determined by the commission. The commission may | ||
charge a fee for attending the seminar in an amount necessary to | ||
cover the costs associated with the seminar, including the cost of | ||
providing food or nonalcoholic beverages to attendees. | ||
SECTION 9. Section 572.023(b), Government Code, is amended | ||
to read as follows: | ||
(b) The account of financial activity consists of: | ||
(1) a list of all sources of occupational income, | ||
identified by employer, or if self-employed, by the nature of the | ||
occupation, including identification of a person or other | ||
organization from which the individual or a business in which the | ||
individual has a substantial interest received a fee as a retainer | ||
for a claim on future services in case of need, as distinguished | ||
from a fee for services on a matter specified at the time of | ||
contracting for or receiving the fee, if professional or | ||
occupational services are not actually performed during the | ||
reporting period equal to or in excess of the amount of the | ||
retainer, and the category of the amount of the fee; | ||
(2) identification by name and the category of the | ||
greatest number of shares of stock of any nonpublicly traded | ||
business entity held or acquired, and if sold, the category of the | ||
amount of net gain or loss realized from the sale; | ||
(2-a) identification by stock symbol and the category | ||
of the number of shares of stock of any publicly traded corporation | ||
held; | ||
(3) a list of all bonds, notes, and other commercial | ||
paper held or acquired, and if sold, the category of the amount of | ||
net gain or loss realized from the sale; | ||
(4) identification of each source and the category of | ||
the amount of income in excess of $500 derived from each source from | ||
interest, dividends, royalties, and rents; | ||
(5) identification of each guarantor of a loan and | ||
identification of each person or financial institution to whom a | ||
personal note or notes or lease agreement for a total financial | ||
liability in excess of $1,000 existed at any time during the year | ||
and the category of the amount of the liability; | ||
(6) identification by description of all beneficial | ||
interests in real property and business entities held or acquired, | ||
and if sold, the category of the amount of the net gain or loss | ||
realized from the sale; | ||
(7) identification of a person or other organization | ||
from which the individual or the individual's spouse or dependent | ||
children received a gift of anything of value in excess of $250 and | ||
a description of each gift, except: | ||
(A) a gift received from an individual related to | ||
the individual at any time within the second degree by | ||
consanguinity or affinity, as determined under Subchapter B, | ||
Chapter 573; | ||
(B) a political contribution that was reported as | ||
required by Chapter 254, Election Code; and | ||
(C) an expenditure required to be reported by a | ||
person required to be registered under Chapter 305; | ||
(8) identification of the source and the category of | ||
the amount of all income received as beneficiary of a trust, other | ||
than a blind trust that complies with Subsection (c), and | ||
identification of each trust asset, if known to the beneficiary, | ||
from which income was received by the beneficiary in excess of $500; | ||
(9) identification: | ||
(A) by description of a corporation, firm, | ||
partnership, limited partnership, limited liability partnership, | ||
professional corporation, professional association, joint venture, | ||
or other business association in which five percent or more of the | ||
outstanding ownership was held, acquired, or sold; and | ||
(B) by description and the category of the amount | ||
of all assets and liabilities of a corporation, firm, partnership, | ||
limited partnership, limited liability partnership, professional | ||
corporation, professional association, joint venture, or other | ||
business association in which 50 percent or more of the outstanding | ||
ownership was held, acquired, or sold; | ||
(10) a list of all boards of directors of which the | ||
individual is a member and executive positions that the individual | ||
holds in corporations, firms, partnerships, limited partnerships, | ||
limited liability partnerships, professional corporations, | ||
professional associations, joint ventures, or other business | ||
associations or proprietorships, stating the name of each | ||
corporation, firm, partnership, limited partnership, limited | ||
liability partnership, professional corporation, professional | ||
association, joint venture, or other business association or | ||
proprietorship and the position held; | ||
(11) identification of any person providing | ||
transportation, meals, or lodging expenses permitted under Section | ||
36.07(b), Penal Code, and the amount of those expenses, other than | ||
expenditures required to be reported under Chapter 305; | ||
(12) any corporation, firm, partnership, limited | ||
partnership, limited liability partnership, professional | ||
corporation, professional association, joint venture, or other | ||
business association, excluding a publicly held corporation, in | ||
which both the individual and a person registered under Chapter 305 | ||
have an interest; | ||
(13) identification by name and the category of the | ||
number of shares of any mutual fund held or acquired, and if sold, | ||
the category of the amount of net gain or loss realized from the | ||
sale; | ||
(14) identification of each blind trust that complies | ||
with Subsection (c), including: | ||
(A) the category of the fair market value of the | ||
trust; | ||
(B) the date the trust was created; | ||
(C) the name and address of the trustee; and | ||
(D) a statement signed by the trustee, under | ||
penalty of perjury, stating that: | ||
(i) the trustee has not revealed any | ||
information to the individual, except information that may be | ||
disclosed under Subdivision (8); and | ||
(ii) to the best of the trustee's knowledge, | ||
the trust complies with this section; | ||
(15) if the aggregate cost of goods or services sold | ||
under one or more written contracts described by this subdivision | ||
exceeds $10,000 in the year covered by the report, identification | ||
of each written contract, including the name of each party to the | ||
contract: | ||
(A) for the sale of goods or services in the | ||
amount of $2,500 or more; | ||
(B) to which the individual, the individual's | ||
spouse, the individual's dependent child, or any business entity of | ||
which the individual, the individual's spouse, or the individual's | ||
dependent child, independently or in conjunction with one or more | ||
persons described by this subsection, has at least a 50 percent | ||
ownership interest is a party; and | ||
(C) with: | ||
(i) a governmental entity; or | ||
(ii) a person who contracts with a | ||
governmental entity, if the individual or entity described by | ||
Paragraph (B) performs work arising out of the contract, | ||
subcontract, or agreement between the person and the governmental | ||
entity for a fee; and | ||
(16) if the individual is a member of the legislature | ||
and provides bond counsel services to an issuer, as defined by | ||
Section 1201.002(1), identification of the following for each | ||
issuance for which the individual served as bond counsel: | ||
(A) the amount of the issuance; | ||
(B) the name of the issuer; | ||
(C) the date of the issuance; | ||
(D) the amount of fees paid to the individual, | ||
and whether the amount is: | ||
(i) less than $5,000; | ||
(ii) at least $5,000 but less than $10,000; | ||
(iii) at least $10,000 but less than | ||
$25,000; or | ||
(iv) $25,000 or more; and | ||
(E) the amount of fees paid to the individual's | ||
firm, if applicable, and whether the amount is: | ||
(i) less than $5,000; | ||
(ii) at least $5,000 but less than $10,000; | ||
(iii) at least $10,000 but less than | ||
$25,000; or | ||
(iv) $25,000 or more. | ||
SECTION 10. Subchapter B, Chapter 572, Government Code, is | ||
amended by adding Section 572.0292 to read as follows: | ||
Sec. 572.0292. RECORDKEEPING REQUIRED. (a) Each | ||
individual who files with the commission a financial statement | ||
required by this subchapter shall maintain a record of the | ||
information that is necessary for filing the financial statement. | ||
(b) An individual required to maintain a record under this | ||
section shall preserve the record for at least three years | ||
beginning on the filing deadline for the financial statement | ||
containing the information in the record. | ||
SECTION 11. The heading to Section 572.030, Government | ||
Code, is amended to read as follows: | ||
Sec. 572.030. PREPARATION [ |
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FILING REQUIREMENTS. | ||
SECTION 12. Sections 572.030(b), (c), and (d), Government | ||
Code, are amended to read as follows: | ||
(b) The commission shall notify [ |
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required to file under this subchapter of [ |
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(1) the requirement [ |
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(2) [ |
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statement as provided by Sections 572.026 and 572.027; and | ||
(3) [ |
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electronically file the financial statement and access | ||
instructions for filing financial statements on [ |
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Internet website[ |
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(c) Except as provided by commission rule, the notification | ||
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(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) [ |
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(d) Except as provided by commission rule, the [ |
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commission shall mail a copy of the financial statement forms and | ||
instructions to an individual not later than the third business day | ||
after the date the commission receives the individual's request for | ||
the forms and instructions. | ||
SECTION 13. Section 572.032, Government Code, is amended by | ||
amending Subsection (a) and adding Subsection (d) to read as | ||
follows: | ||
(a) Financial statements filed under this subchapter are | ||
public records. The commission shall maintain the statements in | ||
separate alphabetical files and in a manner that is accessible to | ||
the public during regular office hours and make the statements | ||
available to the public on the commission's Internet website not | ||
later than the 15th day after the date the statement is required to | ||
be filed or is actually filed, whichever is later. | ||
(d) The commission is not required to continue to make | ||
available on its Internet website a financial statement that may be | ||
destroyed under Subsection (c). The commission may not make | ||
available on its Internet website a financial statement that the | ||
commission is required to destroy under Subsection (c). | ||
SECTION 14. Section 572.032(a-1), Government Code, as | ||
amended by Chapters 34 (S.B. 1576) and 983 (H.B. 776), Acts of the | ||
85th Legislature, Regular Session, 2017, is reenacted and amended | ||
to read as follows: | ||
(a-1) The commission shall remove the home address, the | ||
telephone number, and the names of the dependent children of an | ||
individual from a financial statement filed by the individual under | ||
this subchapter before: | ||
(1) permitting a member of the public to view the | ||
statement; | ||
(2) providing a copy of the statement to a member of | ||
the public; or | ||
(3) making the statement available to the public on | ||
the commission's Internet website[ |
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SECTION 15. The following laws are repealed: | ||
(1) Section 253.037, Election Code; and | ||
(2) Sections 302.017, 302.019, and 572.032(b), | ||
Government Code. | ||
SECTION 16. Section 253.006, Election Code, as added by | ||
this Act, applies only to a political contribution or a political | ||
expenditure made on or after the effective date of this Act. | ||
SECTION 17. The changes in law made by this Act apply only | ||
to a political contribution made on or after the effective date of | ||
this Act. A political contribution made before the effective date | ||
of this Act is governed by the law in effect on the date the | ||
contribution was made, and the former law is continued in effect for | ||
that purpose. | ||
SECTION 18. The changes in law made by this Act to Chapter | ||
572, Government Code, apply only to a financial statement due on or | ||
after the effective date of this Act. A financial statement due | ||
before the effective date of this Act is governed by the law in | ||
effect on the date the financial statement was due, and the former | ||
law is continued in effect for that purpose. | ||
SECTION 19. This Act takes effect immediately if it | ||
receives a vote of two-thirds of all the members elected to each | ||
house, as provided by Section 39, Article III, Texas Constitution. | ||
If this Act does not receive the vote necessary for immediate | ||
effect, this Act takes effect September 1, 2019. |