HBA-RBT H.B. 2225 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2225
By: Uher
Elections
3/14/1999
Introduced



BACKGROUND AND PURPOSE 

The cost of running a political campaign in Texas has increased in recent
years. The Election Code contains provisions that limit cash contributions
to candidates and officeholders, but contributions by check are unlimited.
There is a perception in the media, the public, and elsewhere that a few
wealthy interests are funding most of the costly political campaigns in
Texas.  Special interest groups make single contributions to a single
candidate that exceed the average Texan's yearly income. Businesses and
Political Action Committees (PACs) directly contributed 62 percent ($9
million) of all the itemized contributions that house members received in
the last election.  

H.B. 2225 places limits on campaign contributions to candidates, PACs, and
political parties that can influence state legislative races in Texas.
This bill places both individual and aggregate limits on how much
individuals and PACs can spend.  This bill has provisions that treat
multiple entities as a single entity in certain situations, and places
additional reporting requirements on candidates and officeholders. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 253, Election Code, by adding Subchapter G, as
follows: 

SUBCHAPTER G.  CONTRIBUTIONS AND EXPENDITURES 
FOR LEGISLATIVE OFFICE

Sec.  253.201.  APPLICABILITY OF SUBCHAPTER.  Provides that this subchapter
applies only to a political contribution or political expenditure in
connection with the office of state senator or state representative. 

Sec.  253.202.  DEFINITIONS.  Defines "authorized committee," "coordinated
contribution," "election cycle," "express advocacy," "independent campaign
expenditure," "provided in coordination with a candidate," and "with
respect to an election cycle." 

Sec.  253.203.  LIMITS ON CONTRIBUTIONS TO CANDIDATES AND OFFICEHOLDERS.
Prohibits a person from knowingly making or authorizing political
contributions to a candidate or officeholder that in the aggregate exceed
$2,000 for the office of state senator or $1,000 for state representative
in an election cycle.  Prohibits a person from knowingly accepting a
political contribution, and requires a person to refuse a political
contribution that is received in excess of those limits.  Provides that the
limits do not apply to contributions made by a candidate to the candidate's
own campaign nor to a contribution made by a political party committee or
legislative caucus committee to a candidate. 

Sec.  253.204.  LIMITS ON CONTRIBUTIONS TO POLITICAL COMMITTEES. Prohibits
a person from knowingly making or authorizing political contributions that
in the aggregate exceed $5,000 to a political committee established by a
apolitical party or a  legislative caucus committee and $1,000 to any other
political committee in an election cycle.. 

Sec.  253.205.  AGGREGATE CONTRIBUTION LIMITS.  Prohibits a person other
than a political committee from knowingly making or authorizing political
contributions to candidates, officeholders, and specific-purpose committees
for supporting or opposing candidates or assisting officeholders that in
the aggregate exceed $25,000 in an election cycle.  Prohibits a political
committee from knowingly making or authorizing political contributions to
candidates, officeholders, and specific-purpose committees for supporting
or opposing candidates or assisting officeholders that in the aggregate
exceed $200,000 in an election cycle. 

Sec.  253.206.  AGGREGATION OF CONTRIBUTIONS BY POLITICAL COMMITTEES.
Provides that for the purposes of Sections 253.203, 253.204, and 253.205,
all political contributions made by a political committee whose political
activity is financed, maintained, or controlled by a corporation, labor
organization, association, or political party are aggregated with political
contributions made by a political committee whose political activity is
financed, maintained, or controlled by a parent, subsidiary, branch,
division, department, or local unit of the corporation, labor organization,
association, or political party.  Sets forth the factors which determine
whether two or more entities are treated as a single entity. Provides that
each specific-purpose committee for supporting a candidate or opposing the
candidate's opponent is treated as a single committee if each committee
includes the candidate or a member of the candidate's immediate family. 

Sec.  253.207.  ATTRIBUTION OF CONTRIBUTIONS MADE BY MINORS.  Provides that
a political contribution by a person under 18 years of age who has not had
the disabilities of minority removed is considered to be a contribution by
the person's parents.  Attributes 50 percent to each parent, unless there
is only one custodial parent, in which case the contribution is attributed
100 percent to that parent.   

Sec.  253.208.  COORDINATED CONTRIBUTION CONSIDERED CONTRIBUTION TO
CANDIDATE OR OFFICEHOLDER.  Provides that for purposes of Sections 253.203,
253.204, and 253.205, a political contribution that is a coordinated
contribution to a specificpurpose committee for supporting a candidate,
opposing the candidate's opponent, or assisting the candidate as an
officeholder is considered to be a political contribution to the candidate
or officeholder. 

Sec.  253.209.  AFFIDAVIT REQUIRED IN CONNECTION WITH INDEPENDENT CAMPAIGN
EXPENDITURE.  Provides that a person who makes an independent campaign
expenditure in connection with a campaign for legislative office must file
an affidavit with the commission stating that the expenditure was not
provided in coordination with a candidate or a candidate's agent or a
person who is coordinating with a candidate or a candidate's agent.
Provides that the affidavit must be filed with the report under Chapter 254
in which the independent campaign expenditure is required to be reported. 

Sec.  253.210.  RETURN OF EXCESS CONTRIBUTION.  Requires a person who
receives a political contribution, the acceptance of which would violate
Section 253.203 or 253.204, to return the contribution to the contributor
within 10 days of receipt.  Provides that if the contribution is not
returned within 10 days, it is considered to be accepted. 

Sec.  253.211.  NOTICE OF COORDINATED CONTRIBUTION OR INDEPENDENT
EXPENDITURE BY POLITICAL COMMITTEE.  Requires the campaign treasurer of a
political committee to notify each candidate in the race and the Texas
Ethics Commission (commission) of a coordinated contribution or independent
campaign expenditure supporting or opposing a candidate within two days.
Sets forth the required contents of the notice. 

SECTION 2.  Amends Section 253.003(c), Election Code, to exempt Subchapter
G from the provisions of this section. 

 SECTION 3.  Amends Section 253.004(b), Election Code, to exempt Subchapter
G from the provisions of this section. 

SECTION 4.  Amends Section 253.132, Election Code, to provide that a person
who knowingly makes a political contribution to a political committee in
violation of Section 253.204 is liable for damages as provided by this
section to each political committee of opposing interest in the election in
connection with which the contribution is made.  Redefines "damages."
Redesignates Subsection (c) to (d). 

SECTION 5.  Amends Section 254.034, Election Code, by adding Subsection
(f), which provides that this section applies to a political contribution
covered by Subchapter G, Chapter 253, except as provided by Section
253.210. 

SECTION 6.  Amends Subchapter C, Chapter 254, Election Code, by adding
Section 254.0612, as follows: 

Sec.  254.0612.  ADDITIONAL CONTENTS OF REPORTS BY CANDIDATES FOR
LEGISLATIVE OFFICE.  Sets forth additional information which must be
included in reports by candidates for offices covered by Subchapter G,
Chapter 253. 

SECTION 7.  Amends Subchapter D, Chapter 254, Election Code, by adding
Section 254.0912, as follows:  

Sec.  254.0912.  ADDITIONAL CONTENTS OF REPORTS BY LEGISLATIVE
OFFICEHOLDERS.  Sets forth additional information which must be included in
reports by officeholders of offices covered by Subchapter G, Chapter 253
for each coordinated contribution of which the officeholder receives notice
under Section 253.211. 

SECTION 8.  Amends Subchapter E, Chapter r254, Election Code, by adding
Section 254.1212, as follows: 

Sec.  254.1212.  ADDITIONAL CONTENTS OF REPORTS OF CERTAIN COMMITTEES.
Sets forth additional information which must be included in reports by a
political committee for supporting or opposing a candidate for or assisting
a holder of an office covered by Subchapter G, Chapter 253, for each
coordinated contribution of which the committee is required to give notice
under Section 253.211. 

SECTION 9.  Amends Subchapter F, Chapter 254, Election Code, by adding
Section 254.1541, as follows: 

Sec.  254.1541.  ADDITIONAL REPORTS OF EXPENDITURES IN CONNECTION WITH
CAMPAIGNS FOR LEGISLATIVE OFFICE.  Requires a political committee which
makes a political expenditure supporting or opposing a candidate for a
legislative office to file a report with the commission within 48 hours of
making the expenditure.  Sets forth the contents which must be included in
the report. 

SECTION 10.  Effective date: September 1, 1999.
   Makes application of this Act prospective.

SECTION 11.  Emergency clause.