1 An Ethics Update - Campaign Finance Election Law Seminar for County Chairs October 15, 2005

2 Texas Ethics Commission 201 E. 14 th Street Sam Houston Building-10 th Floor Austin, Texas (512) (800) David A. Reisman, Executive Director

3 NEW LAWS RE: CAMPAIGN FINANCE

4 HB 1647 – County Executive Committees Increases the threshold from $5,000 to $25,000 requiring county executive committees to file a campaign treasurer appointment and campaign finance reports. Increases the threshold from $5,000 to $25,000 requiring county executive committees to file a campaign treasurer appointment and campaign finance reports. Amends: Election Code § (d) Amends: Election Code § (d) Effective: 06/18/05

5 Election Code § (d) SECTION 1. Section (d), Election Code, is amended to read as follows:... (2) a county executive committee that accepts political contributions or makes political expenditures that, in the aggregate, exceed $25,000 [$5,000] in a calendar year shall file: SECTION 1. Section (d), Election Code, is amended to read as follows:... (2) a county executive committee that accepts political contributions or makes political expenditures that, in the aggregate, exceed $25,000 [$5,000] in a calendar year shall file: (A) a campaign treasurer appointment as required by Section not later than the 15th day after the date that amount is exceeded; and (A) a campaign treasurer appointment as required by Section not later than the 15th day after the date that amount is exceeded; and (B) the reports required by Subchapter F, Chapter 254, including in the political committee's first report all political contributions accepted and all political expenditures made before the effective date of the campaign treasurer appointment. (B) the reports required by Subchapter F, Chapter 254, including in the political committee's first report all political contributions accepted and all political expenditures made before the effective date of the campaign treasurer appointment.

6 HB 1664 – General Purpose Committees Provides an alternate reporting requirement for a general-purpose committee with less than $20,000 in total contributions maintained on the last day of the preceding reporting period. Provides an alternate reporting requirement for a general-purpose committee with less than $20,000 in total contributions maintained on the last day of the preceding reporting period. A committee may itemize political contributions that in the aggregate exceed $100, rather than $50, for a reporting period. A committee may itemize political contributions that in the aggregate exceed $100, rather than $50, for a reporting period.

7 HB 1664 – General Purpose Committees continued... Committee may report political contributions of $100 or less as a total amount or an itemized listing. Committee may report political contributions of $100 or less as a total amount or an itemized listing. Threshold for itemized contributions increased from $10 to $20 (monthly filers). Threshold for itemized contributions increased from $10 to $20 (monthly filers). Adds: Election Code § Adds: Election Code § Amends: Election Code § Amends: Election Code § Effective: 09/01/05 Effective: 09/01/05

8 HB 350 – Telegram Reports Changes the name of a “telegram report” to “special report near election.” Changes the name of a “telegram report” to “special report near election.” Requires the special report to be filed electronically, unless eligible for exemption and exemption affidavit has been filed. Requires the special report to be filed electronically, unless eligible for exemption and exemption affidavit has been filed. Amends: Election Code: § (c)&(d); Amends: Election Code: § (c)&(d); § (a)&(c). § (a)&(c). Effective: 10/01/05 Effective: 10/01/05

9 HB 1800 – Corrected Reports Substantial compliance: A report, other than a special report near an election or report due eight days before an election, does not substantially comply if it contains an error other than one listed. Substantial compliance: A report, other than a special report near an election or report due eight days before an election, does not substantially comply if it contains an error other than one listed. Effective: 09/01/05

10 Filing an Appointment of Campaign Treasurer A political committee must have a campaign treasurer appointment on file before it may engage in certain activity. A political committee must have a campaign treasurer appointment on file 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 knowingly making political expenditures. political expenditures.

11 Where to File an Appointment of Campaign Treasurer General Purpose Committee/ CEC’s General Purpose Committee/ CEC’s All general-purpose committees/ CEC’s file with the Texas Ethics Commission.

12 Where to File an Appointment of Campaign Treasurer File with the Texas Ethics Commission if a Candidate/Specific-Purpose Committee Supports or Opposes a Candidate for: File with the Texas Ethics Commission if a Candidate/Specific-Purpose Committee Supports or Opposes a Candidate for: - Statewide Office; - Member of the State Legislature; - District Judge; - District Office Filled by Voters of More Than One County. Than One County.

13 Where to File an Appointment of Campaign Treasurer File with County Filing Authority if the Candidate/Specific-Purpose Committee Supports or Opposes a Candidate for: File with County Filing Authority if the Candidate/Specific-Purpose Committee Supports or Opposes a Candidate for: - County office; - Precinct Office; - District Office Not Filled by Voters of More Than One County. More Than One County.

14 Where to File an Appointment of Campaign Treasurer If the Specific-Purpose Committee Supports or Opposes a Measure: If the Specific-Purpose Committee Supports or Opposes a Measure: - File with Texas Ethic Commission if the measure is to be submitted to the voters of measure is to be submitted to the voters of the entire state. the entire state. - 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 county county in an election ordered by a county authority. authority.

15 Form PTY-CORP Report must be filed regardless of the $25,000 threshold and until the political party no longer retains corp. or labor org. contributions. Report must be filed regardless of the $25,000 threshold and until the political party no longer retains corp. or labor org. contributions. Separate Account is required for contributions from a corporation or labor organization. Separate Account is required for contributions from a corporation or labor organization. Report must be filed by the County Chair not the PAC treasurer. Report must be filed by the County Chair not the PAC treasurer. Report must be filed electronically unless exempt. Report must be filed electronically unless exempt. Chair must file semi-annual, 8 th day before a primary election, and 50 th day before general election reports. Chair must file semi-annual, 8 th day before a primary election, and 50 th day before general election reports.

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

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

18 Disclosure Statement Must include the following: 1. The words “political advertising;” and 2. The full name of one of the following: (a) the person who paid for the advertising; (b) the political committee authorizing the (b) the political committee authorizing the political advertising; or political advertising; or (c) the candidate or specific-purpose (c) the candidate or specific-purpose committee supporting the candidate, if the committee supporting the candidate, if the political advertising is authorized by the political advertising is authorized by the candidate. candidate.

19 Disclosure StatementExceptions: 1. T-shirts, balloons, buttons, hats, lapel stickers pencils, pens, and similar materials; 2. Invitations or tickets to fundraising events; 3. An envelope used to transmit political advertisement; 4. Circulars or fliers less than $500 to print and distribute; and 5. Political advertising printed on stationary, but must include name of person who paid, authorizing political comm.; the candidate or SPAC supporting the candidate.

20 Right of Way Notice Political advertising meant to be seen from the road must include a right of way notice when: Political advertising meant to be seen from the road must include a right of way notice when: 1. You contract or make an agreement to print or make political advertising meant to be seen from the road; or 2. You instruct another person to place the written political advertising meant to be seen from the road.

21 Right of Way Notice Election Code § prescribes the exact language of the notice: Election Code § prescribes the exact language of the notice: NOTICE: IT IS A VIOLATION OF STATE LAW (CHAPTERS 392 AND 393, TRANSPORTATION CODE) TO PLACE THIS SIGN IN THE RIGHT-OF-WAY OF A HIGHWAY. NOTICE: IT IS A VIOLATION OF STATE LAW (CHAPTERS 392 AND 393, TRANSPORTATION CODE) TO PLACE THIS SIGN IN THE RIGHT-OF-WAY OF A HIGHWAY.

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

23 QUESTIONS?

24 Texas Ethics Commission 201 E. 14 th Street Sam Houston Building-10 th Floor Austin, Texas (512) (800)