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An Ethics Update - Campaign Finance

Election Law Seminar for County ChairsElection Law Seminar for County Chairs

October 15, 2005October 15, 2005

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Texas Ethics Commission201 E. 14th Street

Sam Houston Building-10th FloorAustin, Texas 78701

(512) 463-5800(800) 325-8506

www.ethics.state.tx.us

David A. Reisman, Executive Director

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NEW LAWS RE: CAMPAIGN FINANCE

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HB 1647 – County Executive Committees

Increases the threshold from $5,000 to Increases the threshold from $5,000 to $25,000 requiring county executive $25,000 requiring county executive committees to file a campaign treasurer committees to file a campaign treasurer appointment and campaign finance reports.appointment and campaign finance reports.

Amends: Election Code Amends: Election Code § 253.031(d)§ 253.031(d)

Effective: 06/18/05Effective: 06/18/05

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Election Code § 253.031(d) SECTION 1. Section 253.031(d), Election Code, is SECTION 1. Section 253.031(d), Election Code, is

amended to read as follows: . . . (2) a county amended to read as follows: . . . (2) a county executive committee that accepts political executive committee that accepts political contributions or makes political expenditures that, in contributions or makes political expenditures that, in the aggregate, exceed the aggregate, exceed $25,000$25,000 [$5,000] in a [$5,000] in a calendar year shall file:calendar year shall file:

(A) a campaign treasurer appointment as required (A) a campaign treasurer appointment as required by Section 252.001 not later than the 15th day after by Section 252.001 not later than the 15th day after the date that amount is exceeded; andthe date that amount is exceeded; and

(B) the reports required by Subchapter F, Chapter (B) the reports required by Subchapter F, Chapter 254, including in the political committee's first report 254, including in the political committee's first report all political contributions accepted and all political all political contributions accepted and all political expenditures made before the effective date of the expenditures made before the effective date of the campaign treasurer appointment.campaign treasurer appointment.

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HB 1664 – General Purpose Committees

Provides an alternate reporting requirement Provides an alternate reporting requirement for a general-purpose committee with less for a general-purpose committee with less than $20,000 in total contributions than $20,000 in total contributions maintained on the last day of the preceding maintained on the last day of the preceding reporting period.reporting period.

A committee may itemize political A committee may itemize political contributions that in the aggregate exceed contributions that in the aggregate exceed $100, rather than $50, for a reporting $100, rather than $50, for a reporting period. period.

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HB 1664 – General Purpose Committees continued . . .

Committee may report political Committee may report political contributions of $100 or less as a total contributions of $100 or less as a total amount or an itemized listing.amount or an itemized listing.

Threshold for itemized contributions Threshold for itemized contributions increased from $10 to $20 (monthly filers).increased from $10 to $20 (monthly filers).

Adds: Election Code Adds: Election Code § 254.1541§ 254.1541

Amends: Election Code § 254.156Amends: Election Code § 254.156

Effective: 09/01/05Effective: 09/01/05

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HB 350 – Telegram Reports

Changes the name of a “telegram report” to Changes the name of a “telegram report” to “special report near election.”“special report near election.”

Requires the special report to be filed Requires the special report to be filed electronically, unless eligible for exemption electronically, unless eligible for exemption and exemption affidavit has been filed.and exemption affidavit has been filed.

Amends: Election Code: Amends: Election Code: §§ 254.038(c)&(d); 254.038(c)&(d); § 259.039(a)&(c).§ 259.039(a)&(c).

Effective: 10/01/05Effective: 10/01/05

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HB 1800 – Corrected Reports

Substantial compliance: A report, other than Substantial compliance: A report, other than a special report near an election or report a special report near an election or report due eight days before an election, does not due eight days before an election, does not substantially comply if it contains an error substantially comply if it contains an error other than one listed.other than one listed.

Effective: 09/01/05Effective: 09/01/05

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Filing an Appointment of Campaign Treasurer

A political committee A political committee mustmust have a have a campaign treasurer appointment on file campaign treasurer appointment on file before it may engage in certain activity.before it may engage in certain activity.

$500 Thresholds for filing a CTA$500 Thresholds for filing a CTA

- $500 threshold on accepting contributions- $500 threshold on accepting contributions

- $500 threshold on knowingly making- $500 threshold on knowingly making

political expenditures.political expenditures.

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Where to File an Appointment of Campaign Treasurer

General Purpose Committee/ CEC’sGeneral Purpose Committee/ CEC’s

All general-purpose committees/ CEC’s file All general-purpose committees/ CEC’s file with the Texas Ethics Commission.with the Texas Ethics Commission.

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Where to File an Appointment of Campaign Treasurer

File with the Texas Ethics Commission if a File with the Texas Ethics Commission if a Candidate/Specific-Purpose Committee Candidate/Specific-Purpose Committee Supports or Opposes a Candidate for:Supports or Opposes a Candidate for:

- Statewide Office;- Statewide Office;

- Member of the State Legislature;- Member of the State Legislature;

- District Judge;- District Judge;

- District Office Filled by Voters of More- District Office Filled by Voters of More

Than One County.Than One County.

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Where to File an Appointment of Campaign Treasurer

File with County Filing Authority if the File with County Filing Authority if the Candidate/Specific-Purpose Committee Candidate/Specific-Purpose Committee Supports or Opposes a Candidate for:Supports or Opposes a Candidate for:

- County office;- County office;

- Precinct Office;- Precinct Office;

- District Office Not Filled by Voters of- District Office Not Filled by Voters of

More Than One County.More Than One County.

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Where to File an Appointment of Campaign Treasurer

If the Specific-Purpose Committee Supports If the Specific-Purpose Committee Supports or Opposes a Measure:or Opposes a Measure:- File with Texas Ethic Commission if the- File with Texas Ethic Commission if the

measure is to be submitted to the voters ofmeasure is to be submitted to the voters of the entire state.the entire state.

- File with the County if the measure is to- File with the County if the measure is to be submitted to the voters of a single be submitted to the voters of a single county in an election ordered by a countycounty in an election ordered by a county authority. authority.

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Form PTY-CORP Report must be filed regardless of the $25,000 Report must be filed regardless of the $25,000

threshold and until the political party no longer threshold and until the political party no longer retains corp. or labor org. contributions. retains corp. or labor org. contributions.

Separate Account is required for contributions Separate Account is required for contributions from a corporation or labor organization.from a corporation or labor organization.

Report must be filed by the County Chair Report must be filed by the County Chair notnot the PAC treasurer.the PAC treasurer.

Report must be filed electronically unless Report must be filed electronically unless exempt.exempt.

Chair must file semi-annual, 8Chair must file semi-annual, 8 thth day before a day before a primary election, and 50primary election, and 50 thth day before general day before general election reports.election reports.

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Political Advertising

Is a Disclosure Statement Required?Is a Disclosure Statement Required? Is a Right of Way Notice Required?Is a Right of Way Notice Required? Is the Advertising or Communication Is the Advertising or Communication

Misrepresenting a Person’s Identity or Misrepresenting a Person’s Identity or Official Title, or the True Source of the Official Title, or the True Source of the Advertising or Communication?Advertising or Communication?

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Disclosure Statement

Required any time a candidate, a Required any time a candidate, a candidate’s agent, or a political committee candidate’s agent, or a political committee authorizes political advertising.authorizes political advertising.

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Disclosure StatementMust include the following:Must include the following:1. The words “political advertising;” and1. The words “political advertising;” and2. The full name of 2. The full name of oneone of the following: of the following:

(a) the person who paid for the advertising;(a) the person who paid for the advertising; (b) the political committee authorizing the(b) the political committee authorizing the political advertising; orpolitical advertising; or (c) the candidate or specific-purpose(c) the candidate or specific-purpose committee supporting the candidate, if thecommittee supporting the candidate, if the political advertising is authorized by thepolitical advertising is authorized by the candidate.candidate.

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Disclosure StatementExceptions:Exceptions:1. T-shirts, balloons, buttons, hats, lapel 1. T-shirts, balloons, buttons, hats, lapel

stickers pencils, pens, and similar materials;stickers pencils, pens, and similar materials;2. Invitations or tickets to fundraising events;2. Invitations or tickets to fundraising events;3. An envelope used to transmit political 3. An envelope used to transmit political

advertisement;advertisement;4. Circulars or fliers less than $500 to print and 4. Circulars or fliers less than $500 to print and

distribute; anddistribute; and5. Political advertising printed on stationary, 5. Political advertising printed on stationary,

but must include name of person who paid, but must include name of person who paid, authorizing political comm.; the candidate or authorizing political comm.; the candidate or SPAC supporting the candidate. SPAC supporting the candidate.

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Right of Way Notice

Political advertising meant to be seen Political advertising meant to be seen from the road must include a right of way from the road must include a right of way notice when:notice when:

1. You contract or make an agreement to 1. You contract or make an agreement to print or make political advertising meant print or make political advertising meant to be seen from the road; orto be seen from the road; or

2. You instruct another person to place the 2. You instruct another person to place the written political advertising meant to be written political advertising meant to be seen from the road.seen from the road.

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Right of Way Notice

Election Code Election Code § 255.007 prescribes the § 255.007 prescribes the exact language of the notice:exact language of the notice:

NOTICE: IT IS A VIOLATION OF NOTICE: IT IS A VIOLATION OF STATE LAW (CHAPTERS 392 AND 393, STATE LAW (CHAPTERS 392 AND 393, TRANSPORTATION CODE) TO PLACE TRANSPORTATION CODE) TO PLACE THIS SIGN IN THE RIGHT-OF-WAY OF THIS SIGN IN THE RIGHT-OF-WAY OF A HIGHWAY.A HIGHWAY.

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Filing Schedules

Filing deadlines for semiannual reports and Filing deadlines for semiannual reports and pre-election reports for primary and general pre-election reports for primary and general elections are available on the Ethics elections are available on the Ethics Commission website:Commission website:

http://www.ethics.state.tx.ushttp://www.ethics.state.tx.us

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QUESTIONS?

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Texas Ethics Commission201 E. 14th Street

Sam Houston Building-10th FloorAustin, Texas 78701

(512) 463-5800(800) 325-8506

www.ethics.state.tx.us