TITLE 1. ADMINISTRATION

PART 2. TEXAS ETHICS COMMISSION

CHAPTER 20. REPORTING POLITICAL CONTRIBUTIONS AND EXPENDITURES

SUBCHAPTER I. RULES APPLICABLE TO A POLITICAL PARTY'S COUNTY EXECUTIVE COMMITTEE

1 TAC §20.555

The Texas Ethics Commission (the commission) proposes an amendment to §20.555, relating to filing requirements for county executive committees.

Section 20.555 sets out campaign finance reporting requirements for a county executive committee (CEC) that accepts contributions or makes expenditures that exceed $25,000. The proposed amendment to §20.555 relates to the period during which a CEC's general-purpose committee may file a final report to terminate its filing obligations. The proposed amendment to §20.555 also includes non-substantive updates.

The CEC of a political party may designate a general-purpose committee as the principal political committee for that party in the county by filing a campaign treasurer appointment with the commission. A CEC of a political party is required to appoint a treasurer only if it accepts more than $25,000 in political contributions or makes more than $25,000 in political expenditures in a calendar year. A CEC may appoint a treasurer even if it is not required to do so. Once a CEC files an appointment of campaign treasurer, the treasurer is required to file campaign finance reports.

As required by law, the commission adopted a rule setting the reporting requirements for CECs. Under existing §20.555, a CEC that files an appointment of campaign treasurer may file its final report to terminate its filing obligations only in January. The proposed amendment to §20.555 would allow a CEC that has not exceeded one of the $25,000 thresholds to file a final report at any time.

David A. Reisman, Executive Director, has determined that for each year of the first five years that 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 rule as proposed. Mr. Reisman has also determined that the rule will have no local employment impact.

Mr. Reisman has also determined that for each year of the first five years the rule is in effect, the anticipated public benefit will be clarity in what is required by the law.

Mr. Reisman has also determined there will be no direct adverse effect on small businesses or micro-businesses because the rule does not apply to single businesses.

Mr. Reisman has further determined that there are no economic costs to persons required to comply with the rule.

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 Natalia Luna Ashley, 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 rule. Information concerning the date, time, and location of commission meetings is available by telephoning (512) 463-5800.

The amendment to §20.555 is proposed under Government Code, Chapter 571, §571.062, which authorizes the commission to adopt rules concerning the laws administered and enforced by the commission, and Election Code, Chapter 257, §257.007, which requires the commission to adopt rules to implement Election Code, Chapter 257.

The amendment affects Title 15 of the Election Code.

§20.555.County Executive Committee Accepting Contributions or Making Expenditures That Exceed $25,000.

(a) A county executive committee described by subsection (b) of this section is subject to the requirements of Subchapter F of this chapter (relating to Reporting Requirements for a General-Purpose Committee), except where those rules conflict with this subchapter. In the case of conflict, this subchapter prevails over Subchapter F of this chapter.

(b) A county executive committee that accepts political contributions or that makes political expenditures that, in the aggregate, exceed $25,000 in a calendar year shall file:

(1) a campaign treasurer appointment with the commission no later than the 15th day after the date that amount is exceeded; and

(2) the reports required by Subchapter F of this chapter (relating to Reporting Requirements for a General-Purpose Committee). The first report filed must include all political contributions accepted and all political expenditures made before the county executive committee filed its campaign treasurer appointment.

(c) Contributions accepted from corporations and labor organizations under §253.104 of the Election Code [§24.19 of this title (relating to Contributions to a Political Party)] and reported under Subchapter H of this chapter (relating to Accepting and Reporting Contributions from Corporations and Labor Organizations) do not count against the $25,000 thresholds described in subsection (b) of this section.

(d) A county executive committee that filed a campaign treasurer appointment [and reports of contributions and expenditures ] may file a [the report due by January 15 as its] final report, which[. Filing such a report] will notify the commission [the filing authority] that the county executive committee does not intend to file future report s[in the next calendar year ] unless it exceeds one of the $25,000 thresholds. The final report may be filed:

(1) beginning on January 1 and by the January 15 filing deadline if the committee has exceeded one of the $25,000 thresholds in the previous calendar year; or

(2) at any time if the committee has not exceeded one of the $25,000 thresholds in the calendar year.

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 September 6, 2012.

TRD-201204644

Natalia Luna Ashley

Special Counsel

Texas Ethics Commission

Earliest possible date of adoption: October 21, 2012

For further information, please call: (512) 463-5800