85R2285 EES-D     By: Cook H.J.R. No. 112       A JOINT RESOLUTION   proposing a constitutional amendment requiring certain persons or   groups to report certain contributions and political expenditures.          BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Article XVI, Texas Constitution, is amended by   adding Section 75 to read as follows:          Sec. 75.  (a)  In this section:                (1)  "Campaign contribution" means a contribution to a   candidate or political committee that is offered or given with the   intent that it be used in connection with a campaign for elective   office or on a measure. Whether a contribution is made before,   during, or after an election does not affect its status as a   campaign contribution.                (2)  "Campaign expenditure" means an expenditure made   by any person in connection with a campaign for an elective office   or on a measure. Whether an expenditure is made before, during, or   after an election does not affect its status as a campaign   expenditure.                (3)  "Candidate" means a person who knowingly and   willingly takes affirmative action for the purpose of gaining   nomination or election to public office or for the purpose of   satisfying financial obligations incurred by the person in   connection with the campaign for nomination or election. Examples   of affirmative action include:                      (A)  the filing of a campaign treasurer   appointment, except that the filing does not constitute candidacy   or an announcement of candidacy for purposes of the automatic   resignation provisions of Section 65 of this article or Section 11,   Article XI;                      (B)  the filing of an application for a place on a   ballot;                      (C)  the filing of an application for nomination   by convention;                      (D)  the filing of a declaration of intent to   become an independent candidate or a declaration of write-in   candidacy;                      (E)  the making of a public announcement of a   definite intent to run for public office in a particular election,   regardless of whether the specific office is mentioned in the   announcement;                      (F)  before a public announcement of intent, the   making of a statement of definite intent to run for public office   and the soliciting of support by letter or other mode of   communication;                      (G)  the soliciting or accepting of a campaign   contribution or the making of a campaign expenditure; and                      (H)  the seeking of the nomination of an executive   committee of a political party to fill a vacancy.                (4)  "Commission" means the Texas Ethics Commission.                (5)  "Contribution" means a direct or indirect transfer   of money, goods, services, or any other thing of value and includes   an agreement made or other obligation incurred, whether legally   enforceable or not, to make a transfer. The term includes a loan or   extension of credit, other than those expressly excluded by this   subdivision, and a guarantee of a loan or extension of credit,   including a loan described by this subdivision. The term also   includes dues and gifts. The term does not include:                      (A)  a loan made in the due course of business by a   corporation that is legally engaged in the business of lending   money and that has conducted the business continuously for more   than one year before the loan is made;                      (B)  a commercial transaction involving the   transfer for consideration of anything of value pursuant to a   contract or agreement that reflects the usual and normal business   practice of an industry; or                      (C)  an expenditure required to be reported in a   lobbying activities report filed with the commission.                (6)  "Contribution in connection with campaign   activity" means a contribution from a donor to a person or group   that, at the time that the donor makes the contribution, the donor   knows or has reason to know may be used to make a political   contribution or political expenditure or may be commingled with   other funds used to make a political contribution or political   expenditure. A donor who signs a statement indicating that the   donor's contribution to the person or group may not be used to make   a political contribution or political expenditure does not have   reason to know that the donor's contribution may be used to make a   political contribution or political expenditure.                (7)  "Direct campaign expenditure" means a campaign   expenditure that does not constitute a campaign contribution by the   person making the expenditure.                (8)  "Donor" means a person who makes a contribution to   a person or group to whom this section applies, regardless of   whether the person making the contribution is a member of the person   or group that accepts the contribution.                (9)  "Expenditure" means a payment of money or any   other thing of value and includes an agreement made or other   obligation incurred, whether legally enforceable or not, to make a   payment.                (10)  "General-purpose committee" means a political   committee that has among its principal purposes:                      (A)  supporting or opposing:                            (i)  two or more candidates who are   unidentified or are seeking offices that are unknown; or                            (ii)  one or more measures that are   unidentified; or                      (B)  assisting two or more officeholders who are   unidentified.                (11)  "Labor organization" means an agency, committee,   or any other organization in which employees participate that   exists for the purpose, in whole or in part, of dealing with   employers concerning grievances, labor disputes, wages, rates of   pay, hours of employment, or conditions of work.                (12)  "Measure" means a question or proposal submitted   in an election for an expression of the voters' will and includes   the circulation and submission of a petition to determine whether a   question or proposal is required to be submitted in an election for   an expression of the voters' will.                (13)  "Officeholder contribution" means a contribution   to an officeholder or political committee that is offered or given   with the intent that it be used to defray expenses that:                      (A)  are incurred by the officeholder in   performing a duty or engaging in an activity in connection with the   office; and                      (B)  are not reimbursable with public money.                (14)  "Officeholder expenditure" means an expenditure   made by any person to defray expenses that:                      (A)  are incurred by an officeholder in performing   a duty or engaging in an activity in connection with the office; and                      (B)  are not reimbursable with public money.                (15)  "Political committee" means a group of persons   that has as a principal purpose accepting political contributions   or making political expenditures.                (16)  "Political contribution" means a campaign   contribution or an officeholder contribution.                (17)  "Political expenditure" means a campaign   expenditure or an officeholder expenditure.                (18)  "Reportable activity" means a political   contribution, political expenditure, or other activity required to   be reported under state law regulating political funds and   campaigns.          (b)  This section applies only to a person or group that:                (1)  is not a political committee;                (2)  accepts one or more contributions in connection   with campaign activity from a person that in the aggregate exceed   $2,000 during a reporting period; and                (3)  makes one or more political expenditures that in   the aggregate exceed $25,000 during a calendar year, excluding:                      (A)  a direct campaign expenditure that a   corporation or labor organization makes from its own property for   the purpose of communicating directly with its stockholders or   members, as applicable, or with the families of its stockholders or   members;                      (B)  an expenditure that a corporation or labor   organization makes to finance nonpartisan voter registration and   get-out-the-vote campaigns aimed at its stockholders or members, as   applicable, or at the families of its stockholders or members;                      (C)  a political expenditure that a corporation or   labor organization, acting alone or with one or more other   corporations or labor organizations, as applicable, makes to   finance the establishment or administration of a general-purpose   committee;                      (D)  a political expenditure that a corporation or   labor organization makes to finance the solicitation of political   contributions from the stockholders, members, or employees, or   families of stockholders, members, or employees of one or more   corporations or labor organizations, as applicable to a   general-purpose committee described by Paragraph (C) of this   subdivision; and                      (E)  a contribution made by a corporation or labor   organization from its own property to a political party to be used   by the political party only to:                            (i)  defray normal overhead and   administrative or operating costs incurred by the party; or                            (ii)  administer a primary election or   convention held by the party.          (c)  Except as otherwise provided by this section, a person   or group shall comply with the requirements and procedures for   reporting political contributions and political expenditures   established by the legislature as if the person or group were the   campaign treasurer of a general-purpose committee that does not   file monthly reports.          (d)  A person or group is not required to file a campaign   treasurer appointment for accepting contributions or making   political expenditures for which reporting is required under this   section, unless the person or group is otherwise required to file a   campaign treasurer appointment under state law.          (e)  A person or group is not required to file a report under   this section if:                (1)  the person or group is required to disclose the   contributions and political expenditures in another report of   political contributions and political expenditures required by   state law within the time applicable under this section for   reporting the contributions and political expenditures; or                (2)  no reportable activity occurs during the reporting   period.          (f)  Disclosure of a contribution in the manner provided by   the legislature for reports of political contributions and   political expenditures by general-purpose committees is required   in a report under this section only if:                (1)  the contribution is a contribution in connection   with campaign activity; and                (2)  the aggregate amount of contributions in   connection with campaign activity accepted from a person exceeds   $2,000 during the reporting period.          (g)  A report required under this section is not required to   include:                (1)  any contributions accepted by the person or group   that are not contributions in connection with campaign activity;                (2)  the total amount of unitemized political   contributions accepted by the person or group;                (3)  the total amount of political contributions   maintained by the person or group;                (4)  any expenditures made by the person or group that   are not political expenditures;                (5)  the total amount of unitemized political   expenditures made by the person or group; or                (6)  the principal amount of all of the person's or   group's outstanding loans.          (h)  The first report required to be filed in a calendar year   in which the $2,000 or $25,000 threshold under Subsection (b) of   this section is exceeded must include all contributions in   connection with campaign activity accepted from a person that in   the aggregate exceed $2,000 and all political expenditures made in   the 12 months immediately preceding the acceptance of the   contribution in connection with campaign activity or the making of   the political expenditure that triggers the reporting requirements   of this section and not previously reported as required under this   section.          (i)  A contribution consisting of personal travel expense   incurred by an individual is not required to be reported under this   section if the individual receives no reimbursement for the   expense.          (j)  A contribution consisting of an individual's personal   service is not required to be reported under this section if the   individual receives no compensation for the service.          (k)  A person to whom this section applies and who, not   acting in concert with another person, makes one or more direct   campaign expenditures in an election from the person's own property   is not required to comply with any requirements or procedures   established by the legislature for separately reporting the direct   campaign expenditures.          (l)  Any state law generally applicable to reports of   political contributions and political expenditures filed with the   commission, including any penalty provision for untimely or   incomplete reports, is applicable to a report filed under this   section.          SECTION 2.  The following temporary provision is added to   the Texas Constitution:          TEMPORARY PROVISION. (a) This temporary provision applies   to the constitutional amendment proposed by the 85th Legislature,   Regular Session, 2017, requiring certain persons or groups who are   not political committees to report certain contributions and   political expenditures.          (b)  The constitutional amendment takes effect January 1,   2018.          (c)  The change in law made by this amendment applies only to   the reporting of a contribution in connection with campaign   activity or political expenditure made on or after the effective   date of the amendment. A contribution or expenditure made before   the effective date of the amendment is governed by the law in effect   when the contribution or expenditure was made, and the former law is   continued in effect for that purpose.          (d)  This temporary provision expires January 1, 2019.          SECTION 3.  This proposed constitutional amendment shall be   submitted to the voters at an election to be held November 7, 2017.   The ballot shall be printed to provide for voting for or against the   proposition: "The constitutional amendment requiring certain   persons or groups to report certain contributions and political   expenditures."