89R22485 MZM-D     By: Tepper H.B. No. 1804     Substitute the following for H.B. No. 1804:     By:  Phelan C.S.H.B. No. 1804       A BILL TO BE ENTITLED   AN ACT   relating to compliance with the filing requirements of certain   reports of political contributions and expenditures and financial   statements, including as a qualification for public elective   office; providing an administrative penalty.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter A, Chapter 141, Election Code, is   amended by adding Section 141.005 to read as follows:          Sec. 141.005.  FAILURE TO FILE CERTAIN FINANCIAL REPORTS AND   STATEMENTS: INELIGIBILITY AS CANDIDATE OR OFFICEHOLDER.  (a)  This   section:                (1)  applies only to a report or financial statement   that is required to be filed under:                      (A)  Chapter 254 by a candidate or officeholder;                      (B)  Subchapter B, Chapter 572, Government Code;                      (C)  Chapter 145, Local Government Code; or                      (D)  Chapter 159, Local Government Code; and                (2)  does not apply to a corrected or amended report or   statement that is considered to be late under Section 571.0771,   Government Code, for purposes of any applicable civil penalty for   late filing of the report or statement.          (b)  Unless the candidate or officeholder is granted a 30-day   extension in accordance with Subsection (e), a candidate or   officeholder who fails to file a report or statement to which this   section applies before the 30th day after the date the report or   statement is due is ineligible to be a candidate for or to hold the   public office for which the report or statement is required until   the succeeding election for that office after the date the   candidate or officeholder becomes ineligible under this   subsection.          (c)  If a candidate or officeholder fails to file a report or   statement to which this section applies by the date the report or   statement is due, the authority with whom the report or statement is   required to be filed may provide to the candidate or officeholder   written notice of:                (1)  the candidate's or officeholder's failure to file   the report or statement; and                (2)  the date by which the candidate or officeholder   must file the report or statement before the candidate or   officeholder becomes ineligible under Subsection (b) to be a   candidate for or to hold the public office for which the report or   statement is required.          (d)  Unless the candidate or officeholder who is the subject   of the late report or statement is granted a 30-day extension in   accordance with Subsection (e), an authority with whom a report or   statement to which this section applies is required to be filed   shall provide written notice of each candidate or officeholder who   fails to file the report or statement before the 30th day after the   date the report or statement is due to the appropriate authority   under Section 145.003 or, if a certificate of election has been   issued, to the appropriate authority for acting on a resignation or   declination relating to the office for which the report or   statement is required. The notice must be delivered not later than   the 14th day after the date the candidate or officeholder becomes   ineligible. On receipt of the notice, the appropriate authority   shall declare the candidate or officeholder ineligible.          (e)  An authority with whom a report or statement to which   this section applies is required to be filed may grant a candidate   or officeholder a 30-day extension based on an extraordinary   circumstance in accordance with rules the commission adopts.          SECTION 2.  Subchapter B, Chapter 254, Election Code, is   amended by adding Section 254.04015 to read as follows:          Sec. 254.04015.  MONITORING AVAILABILITY OF CERTAIN REPORTS   ON INTERNET; ADMINISTRATIVE PENALTY. (a) The commission shall   develop procedures for monitoring the Internet websites of each   political subdivision that is required to make a report available   on the political subdivision's Internet website under Section   254.0401(b) to ensure the political subdivision is in substantial   compliance with that requirement.          (b)  The commission may assess an administrative penalty in   an amount not to exceed $5,000 against a political subdivision that   is not in substantial compliance with the requirement described by   Subsection (a). Each day a political subdivision is not in   substantial compliance with that requirement constitutes a   separate violation for purposes of imposing an administrative   penalty under this subsection.          (c)  The commission shall adopt rules as necessary to   implement this section, including rules defining the meaning of   substantial compliance for purposes of this section.          SECTION 3.  Subtitle C, Title 5, Local Government Code, is   amended by adding Chapter 181 to read as follows:   CHAPTER 181. JUDICIAL REMOVAL OF CERTAIN PUBLIC OFFICERS          Sec. 181.001.  APPLICABILITY.  This chapter applies only to   a public officer who is required to file a report or financial   statement under:                (1)  Chapter 254, Election Code;                (2)  Subchapter B, Chapter 572, Government Code;                (3)  Chapter 145; or                (4)  Chapter 159.          Sec. 181.002.  GROUNDS FOR REMOVAL. In addition to any other   law under which the officer may be removed, a public officer to whom   this chapter applies may be removed from office if the officer is   ineligible to hold the office under Section 141.005, Election Code.          Sec. 181.003.  PROCEDURES FOR REMOVAL. A public officer to   whom this chapter applies may be removed from office under this   chapter using the same procedures for removing a county officer   under Subchapter B, Chapter 87.          SECTION 4.  Section 141.005, Election Code, as added by this   Act, applies only to the eligibility of a person to be a candidate   for an office for which an application for a place on the ballot is   required to be filed on or after January 1, 2026.          SECTION 5.  The changes in law made by this Act apply only to   a report under Chapter 254, Election Code, that is required to be   filed 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   is required to be filed, and the former law is continued in effect   for that purpose.          SECTION 6.  (a) Not later than December 1, 2025, the Texas   Ethics Commission shall adopt rules as required by Section   254.04015, Election Code, as added by this Act.          (b)  Notwithstanding Section 254.04015, Election Code, as   added by this Act, a political subdivision is not subject to an   administrative penalty under that section before January 1, 2026.          SECTION 7.  This Act takes effect September 1, 2025.