1 TAC §20.31
The Texas Ethics Commission proposes new 1 T.A.C. Chapter
20, Subchapter A, §20.31, concerning the use of political contributions
to make a contribution to a speaker candidate. The proposed rule clarifies
Ethics Advisory Opinion No. 436 (2001), in which the Ethics Commission determined
that a member of the Texas Legislature may not use political contributions
to contribute to a speaker candidate unless the member is able to demonstrate
that the member obtained the funds from a source that is permitted to make
contributions to a speaker candidate. Impermissible sources include political
committees and elected officers and employees of the executive or judicial
branch of state government. The proposed rule would require an individual
who wishes to use political contributions to make a speaker candidate contribution
to set up an account in a financial institution and to notify the Ethics Commission
of that account. The account may not contain contributions from sources that
are prohibited from contributing to a speaker candidate. Furthermore, any
contribution to a speaker candidate from political funds must be made from
that account. Finally, the contribution to the speaker candidate must be reported
on the campaign finance report covering the period in which the contribution
is made and must specify that the purpose is to make a contribution for an
identified speaker candidate's campaign.
Karen Lundquist, General Counsel, has determined that for each year of
the first five years the rule is in effect there will be no fiscal implication
for the state and no fiscal implication for local government as a result of
enforcing or administering the new rule as proposed.
Ms. Lundquist also has determined that for each year of the first five
years the rule is in effect, the anticipated public benefit will be clarification
of the law regulating contributions to speaker candidates in instances in
which the contribution is made from political contributions.
Ms. Lundquist has also determined there will be no direct adverse effect
on small businesses or micro-businesses because this rule does not apply to
single businesses.
Ms. Lundquist has further determined that the economic costs to individuals
required to comply with this rule will be those costs associated with establishing
and maintaining an account in a financial institution.
The Texas Ethics Commission invites comments on the proposed rule from
any member of the public. A written statement should be mailed or delivered
to Karen Lundquist, Texas Ethics Commission, P.O. Box 12070, Austin, Texas
78711-2070, or by facsimile (FAX) to (512) 463-5777. A person who wants to
offer spoken comments to the commission concerning the proposed rule may do
so at any commission meeting during the agenda item "Communication to the
Commission from the Public" and during the public comment period at a commission
meeting when the commission considers final adoption of the proposed rules.
Information concerning the date, time, and location of commission meetings
is available by telephoning (512) 463-5800 or, toll free, (800) 325-8506.
The new rule is proposed under Government Code, Chapter 571,
Section 571.062, which provides authorization for the commission to adopt
rules concerning the laws administered and enforced by the commission.
The proposed new rule, §20.31, affects Subchapter B. Candidate for
Speaker: Campaign Finance, Chapter 302, Government Code, and Chapter 254,
Election Code.
§20.31.Use of Political Contributions for Contributions to Speaker Candidate.
(a)
An individual who has accepted political contributions
may not use political contributions to make a contribution to a speaker candidate
for use in the speaker candidate's campaign unless:
(1)
the political contributions from which the speaker candidate
contribution will be made have been deposited in an account in a financial
institution and the speaker candidate contribution is made from funds in that
account;
(2)
the account was opened in the name of the individual who
accepted the political contributions and who will be making the contribution
to the speaker candidate;
(3)
the account contains no funds obtained from a source that
is prohibited from making a contribution to a speaker candidate under Chapter
302, Government Code; and
(4)
the individual has filed an affidavit as described by subsection
(b) before the contribution to the speaker candidate is made.
(b)
The affidavit required by subsection (a) must be filed
with the commission on a form prescribed by the commission and must provide
the individual's name, address, and telephone number, and the name and address
of the financial institution and the number of the account in which the political
contributions have been deposited.
(c)
An individual who uses political contributions to make
a contribution to a speaker candidate for use in the speaker candidate's campaign
must specify on the campaign finance report filed under Title 15, Election
Code, that the purpose of the expenditure is to make a contribution for an
identified speaker candidate's campaign. The expenditure must be reported
on the campaign finance report covering the period during which the expenditure
was made. An individual's failure to comply with this subsection may not be
cured by filing a corrected report after the report deadline has passed.
(d)
In this section:
(1)
"Financial institution" means a bank, savings and loan
association, savings bank, or credit union.
(2)
"Speaker candidate" has the meaning assigned by Section
302.011, Government Code.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of the
Secretary of State on February 15, 2002.
TRD-200200989
Tom Harrison
Executive Director
Texas Ethics Commission
Earliest possible date of adoption: March 31, 2002
For further information, please call: (512) 463-5787