HBA-NMO H.B. 2436 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2436 By: Uher Elections 3/28/99 Introduced BACKGROUND AND PURPOSE Current law requires certain political candidates, officeholders, and committees to file contribution and expenditure reports with the Texas Ethics Commission (commission), located in Austin. The law provides that the reports must be filed on a form prescribed by the commission in black ink or type. However, most people in this state live hundreds of miles from the commission in Austin, making the current paper disclosure system difficult for those people to access. H.B. 2436 requires certain political candidates, officeholders, and committees, with exception, to file disclosure reports with the commission in an electronic format. This bill also requires the commission to make information from such reports available for public inspection by electronic means. 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 Subchapter B, Chapter 251, Election Code, by adding Section 251.031, as follows: Sec. 251.031. INDEX OF REPORTS; PUBLICATIONS. Requires the Texas Ethics Commission (commission) to maintain separate indexes of reports filed with the commission by candidates, officeholders, and political committees under this title, publish the indexes regularly, and make the indexes available for purchase. Requires the commission to produce and distribute a general index explaining the types and location of records under this title (Regulating Political Funds and Campaigns) that are available for public use. Requires the commission to make information from the indexes available by electronic means. Requires the commission to periodically publish a list of candidates, officeholders, and political committees required to file reports with the commission under this title that have failed to do so. Requires the commission to annually publish a report summarizing information contained in reports filed with the commission under this title. SECTION 2. Amends Section 254.036, Election Code, to provide that each report filed under this chapter with the commission must be filed by computer diskette, modem, or other means of electronic transfer, using computer software provided by the commission or computer software that meets commission specifications for a standard file format. Authorizes that a written or printed report be filed under this chapter with an authority other than the commission by a candidate or officeholder who does not accept political contributions or make political expenditures that in the aggregate exceed $50,000; or by a candidate, officeholder, or political committee that does not use computer equipment to keep records, and file an affidavit with each report filed. Makes conforming and nonsubstantive changes. SECTION 3. Amends Subchapter B, Chapter 254, Election Code, by adding Sections 254.0401 and 254.0402, as follows: Sec. 254.0401. PUBLIC INSPECTION OF REPORTS. (a) Requires that a report filed under this chapter be made available for public inspection at the office of the authority with whom the report is filed not later than the second business day after the date the report is received. Prohibits the authority with whom a report is filed under this chapter from requiring a person examining the report to provide any information or identification. Requires the commission to make information from reports filed with the commission under this chapter available by electronic means, including providing access to computer terminals at the commission's office, providing information on computer diskette for purchase at a reasonable cost, and providing modem or other electronic access to the information. Sec. 254.0402. RESTRICTION ON USE, SALE, OR DISTRIBUTION OF CONTRIBUTOR INFORMATION. (a) Defines "contributor information" as the name, address, and telephone number of a person listed in a report filed under this chapter as having made a political contribution. (b) Prohibits a person from knowingly using, selling, or distributing contributor information copied or otherwise obtained from a report filed under this chapter for the purpose of soliciting political contributions or charitable contributions or for a commercial purpose. (c) Authorizes a person to solicit political contributions from a political committee whose contributor information the person obtains from a report filed under this chapter. (d) Authorizes a person to use contributor information copied or otherwise obtained from a report filed under this chapter in a newspaper, magazine, book, or similar communication if the principal purpose of the communication is not to communicate any contributor information for the purposes of soliciting political contributions or charitable contributions or for a commercial purpose (e) Provides that a person who violates this section is civilly liable to the state for an amount not to exceed the greater of $5,000, or the amount of any contribution received as a result of the violation. SECTION 4. Effective date: September 1, 1999. SECTION 5. Makes application of this Act prospective. SECTION 6. Emergency clause.