Relating to the functions and duties of the Texas Ethics Commission.

89(R) SB 2403 - House Committee Report version - Bill Text

By: Middleton, et al.

S.B. No. 2403

(Shaheen)

A BILL TO BE ENTITLED

AN ACT

relating to the functions and duties of the Texas Ethics

Commission.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 254.036(b), Election Code, is amended to

read as follows:

(b) Except as provided by Subsection [
(c) or
] (e), 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.

SECTION 2. Section 254.038(c), Election Code, is amended to

read as follows:

(c) A report under this section shall be filed

electronically, by telephonic facsimile machine, or by hand, in the

form required by Section 254.036. The commission must receive a

report under this section filed by telephonic facsimile machine or

hand not later than 5 p.m. of the first business day after the date

the contribution is accepted. The commission must receive a report

under this section filed electronically not later than midnight of

the first business day after the date the contribution is accepted.

A report under this section is not required to be accompanied by the

affidavit required under Section 254.036(h) or to be submitted on a

form prescribed by the commission. [
A report under this section

that complies with Section 254.036(a) must be accompanied by an

affidavit under Section 254.036(c)(1) unless the candidate or

committee has submitted an affidavit under Section 254.036(c)(1)

with another report filed in connection with the election for which

a report is required under this section.
]

SECTION 3. Section 254.039(a-1), Election Code, is amended

to read as follows:

(a-1) A report under this section shall be filed

electronically, by telephonic facsimile machine, or by hand, in the

form required by Section 254.036. The commission must receive a

report under this section not later than 5 p.m. of the first

business day after the date the contribution is accepted or the

expenditure is made. A report under this section is not required to

be accompanied by the affidavit required under Section 254.036(h)

or to be submitted on a form prescribed by the commission. [
A

report under this section that complies with Section 254.036(a)

must be accompanied by an affidavit under Section 254.036(c)(1)

unless the committee has submitted an affidavit under Section

254.036(c)(1) with another report filed in connection with the

election for which a report is required under this section.
]

SECTION 4. Sections 254.042(a) and (b), Election Code, are

amended to read as follows:

(a) The commission shall determine from any available

evidence whether a report required to be filed with the commission

under this chapter is late. On making that determination, the

commission shall immediately
provide
[
mail a notice of the

determination
] to the person required to file the report
notice of

the determination
.

(b) If a report other than a report under Section

254.064(c), 254.124(c), or 254.154(c) [
or the first report under

Section 254.063 or 254.123 that is required to be filed following

the primary or general election
] is determined to be late, the

person required to file the report is liable to the state for a

civil penalty of $500. If a report under Section 254.064(c),

254.124(c), or 254.154(c) [
or the first report under Section

254.063 or 254.153 that is required to be filed following the

primary or general election
] is determined to be late, the person

required to file the report is liable to the state for a civil

penalty of $500 for the first day the report is late and $100 for

each day thereafter that the report is late
and continuing only

through the day of the election
. If a report is more than 30 days

late, the commission shall issue a warning of liability [
by

registered mail
] to the person required to file the report. If the

penalty is not paid before the 10th day after the date on which the

warning is received, the person is liable for a civil penalty in an

amount determined by commission rule, but not to exceed $10,000.

SECTION 5. Sections 254.157 and 254.158, Election Code, are

amended to read as follows:

Sec. 254.157. MONTHLY REPORTING SCHEDULE. (a) The

campaign treasurer of a general-purpose committee filing monthly

reports shall file a report not later than the
10th
[
fifth
] day of

the month following the period covered by the report. A report

covering the month preceding an election in which the committee is

involved must be received by the authority with whom the report is

required to be filed not later than the
10th
[
fifth
] day of the

month following the period covered by the report.

(b) A monthly report covers the period beginning the
first

[
26th
] day of each month and continuing through the
last
[
25th
] day

of the [
following
] month[
, except that the period covered by the

first report begins January 1 and continues through January 25
].

Sec. 254.158. EXCEPTION TO MONTHLY REPORTING SCHEDULE. If

the campaign treasurer appointment of a general-purpose committee

filing monthly reports is filed after January 1 of the year in which

monthly reports are filed, the period covered by the first monthly

report begins the day the appointment is filed and continues

through the
last
[
25th
] day of the month in which the appointment is

filed [
unless the appointment is filed the 25th or a succeeding day

of the month.

In that case, the period continues through the 25th

day of the month following the month in which the appointment is

filed
].

SECTION 6. Sections 305.033(a) and (c), Government Code,

are amended to read as follows:

(a) The commission shall determine from any available

evidence whether a registration or report required to be filed with

the commission under this chapter is late. A registration filed

without the fee required by Section 305.005 is considered to be

late. On making a determination that a required registration or

report is late, the commission shall immediately
provide
[
mail a

notice of the determination
] to the person responsible for the

filing, [
to
] the commission, and [
to
] the appropriate attorney for

the state
notice of the determination
.

(c) If a registration or report is more than 30 days late,

the commission shall issue a warning of liability [
by registered

mail
] to the person responsible for the filing. If the penalty is

not paid before the 10th day after the date on which the warning is

received, the person is liable for a penalty in an amount determined

by commission rule, but not to exceed $10,000.

SECTION 7. Section 305.034(b), Government Code, is amended

to read as follows:

(b)
If
[
Whenever
] the commission determines that a person

has failed to file any required form, statement, or report as

required by this chapter, the commission shall
provide
[
send a

written statement of this finding
] to the person
written notice of

the determination
[
involved
]. [
Notice to the person involved must

be sent by certified mail.
]

SECTION 8. Section 571.022, Government Code, is amended to

read as follows:

Sec. 571.022. SUNSET PROVISION. The commission is subject

to review under Chapter 325 (Texas Sunset Act), but is not abolished

under that chapter. The commission shall be reviewed during the

periods in which state agencies abolished in
2037
[
2013
] and every

12th year after that year are reviewed.

SECTION 9. Section 571.0271, Government Code, is amended by

amending Subsection (b) and adding Subsection (d) to read as

follows:

(b) The training program must provide the person with

information regarding:

(1) the
law governing
[
legislation that created the
]

commission
operations
;

(2) the programs
, functions, rules, and budget of

[
operated by
] the commission;

(3) the
scope of and limitations on the rulemaking

authority
[
role and functions
] of the commission;

(4) [
the rules of the commission, with an emphasis on

the rules that relate to disciplinary and investigatory authority;

[
(5) the current budget for the commission;

[
(6)
] the results of the most recent formal audit of

the commission;

(5)
[
(7)
] the requirements of:

(A)
laws relating to
[
the
] open meetings [
law
],

public information, administrative procedure, and disclosing

conflicts-of-interest
[
Chapter 551
];
and

(B) [
the public information law, Chapter 552;

[
(C)

the administrative procedure law, Chapter

2001; and

[
(D)
] other laws
applicable to members of a state

policy-making body in performing their duties
[
relating to public

officials, including conflict-of-interest laws
]; and

(6)
[
(8)
] any applicable ethics policies adopted by

the commission.

(d)

The executive director of the commission shall create a

training manual that includes information required by Subsection

(b). The executive director shall distribute a copy of the training

manual annually to each member of the commission. Each member of

the commission shall sign and submit to the executive director a

statement acknowledging that the member received and has reviewed

the training manual.

SECTION 10. Subchapter B, Chapter 571, Government Code, is

amended by adding Section 571.033 to read as follows:

Sec.

571.033.

METHOD OF PROVIDING NOTICE. (a)

The

commission by rule shall prescribe the method by which the

commission will provide a notice required by:

(1) Chapter 305;

(2) this chapter;

(3) Chapter 572; or

(4) Title 15, Election Code.

(b)

The method the commission prescribes under Subsection

(a) for providing notice may include electronic mail.

SECTION 11. Section 571.064(b), Government Code, is amended

to read as follows:

(b) If a law
, other than Sections 305.005(g) and (g-1),

administered and enforced by the commission sets dollar amounts or

categories of amounts as reporting thresholds or if the commission

sets those amounts, the commission [
annually
] shall
decennially

adjust those thresholds [
upward to the nearest multiple of $10
] in

accordance with the percentage increase for the previous year in

the Consumer Price Index for Urban Consumers published by the

Bureau of Labor Statistics of the United States Department of Labor

to:

(1)

the nearest multiple of $10 if the amount is less

than $100;

(2)

the nearest multiple of $100 if the amount is $100

or more but less than $10,000; or

(3)

the nearest multiple of $1,000 if the amount is

$10,000 or more
.

SECTION 12. The heading to Subchapter E, Chapter 571,

Government Code, is amended to read as follows:

SUBCHAPTER E.
CATEGORIZATION OF VIOLATIONS;
COMPLAINT PROCEDURES

AND HEARINGS

SECTION 13. Section 571.1211, Government Code, is amended

by amending Subdivisions (2) and (3) and adding Subdivision (4) to

read as follows:

(2) "Category One violation" means a
technical,

clerical, or de minimis
violation of a law within jurisdiction of

the commission [
as to which it is generally not difficult to

ascertain whether the violation occurred or did not occur,

including:

[
(A)

the failure by a person required to file a

statement or report to:

[
(i)

file the required statement or report

in a manner that complies with applicable requirements; or

[
(ii)

timely file the required statement or

report;

[
(B)

a violation of Section 255.001, Election

Code;

[
(C)

a misrepresentation in political

advertising or a campaign communication relating to the office held

by a person in violation of Section 255.006, Election Code;

[
(D)

a failure to include in any written

political advertising intended to be seen from a road the

right-of-way notice in violation of Section 259.001, Election Code;

or

[
(E)

a failure to timely respond to a written

notice under Section 571.123(b)
].

(3) "Category Two violation" means a violation of a

law within the jurisdiction of the commission that is not a Category

One
violation or a Category Three
violation.

(4)

"Category Three violation" means a serious

violation of a law within the jurisdiction of the commission.

SECTION 14. Subchapter E, Chapter 571, Government Code, is

amended by adding Sections 571.1213, 571.1224, 571.1232, and

571.1233 to read as follows:

Sec.

571.1213.

CATEGORIZATION OF VIOLATIONS.

(a) The

commission shall categorize each violation of law within the

commission's jurisdiction as a Category One violation, a Category

Two violation, or a Category Three violation. A violation of law

may be categorized as more than one category of violation.

In

determining the category of a violation, the commission shall

consider, as applicable:

(1) the dollar amount at issue for a violation;

(2)

the timing of the report relative to an election or

legislative session;

(3)

the penalty of any criminal offense associated

with a violation;

(4) the potential a violation has to:

(A)

conceal evidence of a person's influence over

a public official; or

(B) distort a public disclosure; and

(5)

any other consideration the commission determines

necessary to prevent harm to the public.

(b)

The commission shall publish on the commission's

Internet website the violation categorizations described by

Subsection (a).

(c)

Before the commission adopts a new violation

categorization or changes an existing violation categorization

described by Subsection (a), the commission shall:

(1)

publish the proposed violation categorization in

the Texas Register for a period determined by commission rule; and

(2)

hold an open meeting to obtain public comment on

the proposed violation categorization.

Sec.

571.1224.

DISMISSAL OF CERTAIN COMPLAINTS ALLEGING

CATEGORY ONE VIOLATION. (a) Except as provided by Subsection (b),

at any stage of a proceeding under this subchapter, the commission

may dismiss a complaint that alleges a Category One violation if the

commission determines that the seriousness of the violation does

not justify further use of commission resources.

(b)

At any stage of a proceeding under this subchapter, the

commission shall dismiss a complaint that alleges a Category One

violation if:

(1)

the commission determines that the seriousness of

the violation does not justify further use of commission resources;

and

(2)

the respondent against whom the complaint is filed

has been the subject of not more than two prior sworn complaints.

(c)

If the commission dismisses a complaint under this

section, the commission shall provide to the respondent written

notice of the dismissal not later than the fifth day after the date

of the dismissal. The notice must:

(1)

be written in plain language designed to be easily

understood;

(2)

identify the alleged violation and include the

relevant laws and requirements applicable to the alleged violation;

(3) include a statement informing the respondent that:

(A)

the respondent may be subject to an

investigation of the alleged violation if the commission receives

additional complaints against the respondent; and

(B)

the investigation may be prioritized as a

result of the alleged repeated violations; and

(4) remain confidential.

(d)

If the commission dismisses a complaint under this

section, the commission shall provide to the complainant written

notice of the dismissal not later than the fifth day after the date

of the dismissal.

Sec.

571.1232.

POLICY ON PRIORITIZING COMPLAINTS. (a) The

commission shall adopt a written policy on prioritizing the

investigation of sworn complaints in accordance with this

subchapter based on the risk the commission determines the

violation alleged in the complaint poses to public disclosure

integrity.

(b)

In adopting the policy, the commission shall ensure a

sworn complaint is prioritized based on:

(1)

the category of the violation alleged in the

complaint;

(2)

whether evidence exists demonstrating an intent in

connection with the violation alleged in the complaint to conceal a

person's influence over a public official or distort a public

disclosure;

(3)

the compliance record of the respondent with laws

within the commission's jurisdiction based on:

(A)

previous sworn complaints filed against the

respondent;

(B)

repeat violations committed by the

respondent; and

(C)

any reviews the commission conducted under

Section 571.069 of a statement or report filed by the respondent;

(4)

negative media attention of the matter that is the

subject of the complaint; and

(5)

any other risk-based factors the commission

identifies.

(c)

The policy the commission adopts under this section must

include a process for the commission to reprioritize the

investigation of a sworn complaint as the commission determines

necessary.

(d) The commission shall:

(1)

publish on the commission's Internet website the

policy the commission adopts under this section; and

(2)

train commission staff on using the policy in

processing sworn complaints.

(e)

Before the commission adopts or changes the policy

required by this section, the commission shall:

(1)

publish the proposed policy in the Texas Register

for a period determined by commission rule; and

(2)

hold an open meeting to obtain public comment on

the proposed policy.

Sec.

571.1233.

DISCOVERY REQUIREMENTS. The commission

shall adopt rules that prescribe the procedure required of

commission staff and respondents to agree to a discovery control

plan to conduct discovery in connection with a sworn complaint. The

rules must:

(1)

outline a period during which all discovery must

be completed and set appropriate limits to the amount of discovery

that may be requested; and

(2)

comply with the Texas Rules of Civil Procedure,

except that the commission shall determine the level of discovery

under Rule 190, Texas Rules of Civil Procedure, appropriate for the

category of the violation alleged in a complaint and the policies

the commission adopts under Section 571.1232 on prioritizing the

investigation of complaints.

SECTION 15. Section 571.124(e), Government Code, is amended

to read as follows:

(e) If the executive director determines that the

commission has jurisdiction, the notice under Section 571.123(b)

must include:

(1) a statement that the commission has jurisdiction

over the violation of law alleged in the complaint;

(2) a statement of whether the complaint will be

processed as a Category One violation
,
[
or
] a Category Two

violation, or a Category Three
violation[
, subject to

reconsideration as provided for by Section 571.1212
];

(3) the date by which the respondent is required to

respond to the notice;

(4) a copy of the complaint and the rules of procedure

of the commission;

(5) a statement of the rights of the respondent;

(6) a statement inviting the respondent to provide to

the commission any information relevant to the complaint; and

(7) a statement that a failure to timely respond to the

notice will be treated as a separate violation.

SECTION 16. Section 571.1242(a), Government Code, is

amended to read as follows:

(a)
A
[
If the alleged violation is a Category One violation,

the
] respondent must respond to the notice required by Section

571.123(b) not later than the
30th
[
10th business
] day after the

date the respondent receives the notice.

SECTION 17. Section 571.1244, Government Code, is amended

to read as follows:

Sec. 571.1244. PRELIMINARY REVIEW AND PRELIMINARY REVIEW

PROCEDURES. The commission shall adopt procedures for the conduct

of preliminary reviews and preliminary review hearings. The

procedures must include:

(1) a reasonable time for responding to questions

submitted by the commission and commission staff and subpoenas

issued by the commission; [
and
]

(2) the tolling or extension of otherwise applicable

deadlines where:

(A) the commission issues a subpoena and the

commission's meeting schedule makes it impossible both to provide a

reasonable time for response and to comply with the otherwise

applicable deadlines; or

(B) the commission determines that, despite

commission staff's diligence and the reasonable cooperation of the

respondent, a matter is too complex to resolve within the otherwise

applicable deadlines without compromising either the commission

staff's investigation or the rights of the respondent
; and

(3)

a deadline on the convening of a panel to conduct a

preliminary review hearing
.

SECTION 18. Sections 571.125(a), (b), (d), and (e),

Government Code, are amended to read as follows:

(a)
A panel of two
[
The
] commission
members selected in

accordance with Section 571.1251
shall conduct a preliminary review

hearing if:

(1) following the preliminary review, the [
commission

and the
] respondent
rejects
[
cannot agree to
] the
resolution

proposed by commission staff of the complaint or motion

[
disposition of the complaint or motion
]; or

(2) the respondent in writing requests a hearing.

(b) The commission shall provide [
written notice
] to the

complainant, if any, and the respondent
written notice that

includes:

(1)
[
of
] the date, time, and place the
panel

[
commission
] will conduct the preliminary review hearing
; and

(2)

a statement that if the commission orders a formal

hearing because the complaint could not be resolved and settled as a

result of the preliminary review hearing, the formal hearing may

result in a higher sanction than the one the panel proposes for the

preliminary review hearing
.

(d) During a preliminary review hearing, the
panel

[
commission
]:

(1) may consider all submitted evidence related to the

complaint or to the subject matter of a motion under Section

571.124(b);

(2) may review any documents or material related to

the complaint or to the motion; and

(3) shall determine whether there is credible evidence

that provides cause for the
panel
[
commission
] to conclude that a

violation within the jurisdiction of the commission has occurred.

(e) During a preliminary review hearing, the respondent may

appear before the
panel
[
commission
] with the assistance of

counsel, if desired by the respondent, and present any relevant

evidence, including a written statement.

SECTION 19. Subchapter E, Chapter 571, Government Code, is

amended by adding Section 571.1251 to read as follows:

Sec.

571.1251.

SELECTION OF PANEL TO CONDUCT PRELIMINARY

REVIEW HEARING.

The commission shall adopt rules for the selection

of commission members to serve on panels to conduct preliminary

review hearings.

The rules must ensure that:

(1)

a panel is composed of two commission members

selected on a rotating basis; and

(2)

each member of the panel is a member of a different

political party.

SECTION 20. Section 571.126, Government Code, is amended to

read as follows:

Sec. 571.126. PRELIMINARY REVIEW HEARING: RESOLUTION. (a)

Except as provided by Subsection (e), as
[
As
] soon as practicable

after the completion of a preliminary review hearing, the
panel

[
commission
] by vote shall issue a decision stating:

(1) whether there is credible evidence for the
panel

[
commission
] to determine that a violation within the jurisdiction

of the commission has occurred and whether the violation is
a

Category One violation
[
technical or de minimis
]; or

(2) that there is insufficient evidence for the
panel

[
commission
] to determine whether a violation within the

jurisdiction of the commission has occurred.

(b) If the
panel
[
commission
] determines that there is

credible evidence for the
panel
[
commission
] to determine that a

violation
within the commission's jurisdiction
has occurred, the

panel
[
commission
] shall
propose to the respondent a resolution to

resolve and settle the complaint or motion to the extent possible.

If the
panel
[
commission
] successfully resolves and settles the

complaint or motion, not later than the fifth business day after the

date
the respondent accepts the proposed resolution
[
of the final

resolution of the complaint or motion
], the commission shall

provide
[
send
] to the complainant, if any, and the respondent a copy

of the decision stating the
panel's
[
commission's
] determination

and written notice of the resolution and the terms of the

resolution. If the
panel
[
commission
] is unsuccessful in resolving

and settling the complaint or motion, the
panel
[
commission
] shall:

(1) order a formal hearing to be held in accordance

with Sections
571.127
[
571.129
] through 571.132; and

(2) not later than the fifth business day after the

date
the panel determines that there is credible evidence to

determine that a violation has occurred or the date the respondent

rejects the panel's proposed resolution
[
of the decision
], send to

the complainant, if any, and the respondent:

(A) a copy of the decision;

(B) written notice of the date, time, and place

of the formal hearing;

(C) a statement of the nature of the alleged

violation;

(D) a description of the evidence of the alleged

violation;

(E) a copy of the complaint or motion;

(F) a copy of the commission's rules of

procedure; and

(G) a statement of the rights of the respondent.

(c) If the
panel
[
commission
] determines that there is

credible evidence [
for the commission
] to determine that a

violation within the jurisdiction of the commission has not

occurred[
, the commission shall
]:

(1)
the panel shall
dismiss the complaint or motion;

and

(2)
the commission shall
not later than the fifth

business day after the date of the dismissal, send to the

complainant, if any, and the respondent a copy of the decision

stating the
panel's
[
commission's
] determination and written notice

of the dismissal and the grounds for dismissal.

(d) If the
panel
[
commission
] determines that there is

insufficient credible evidence [
for the commission
] to determine

that a violation within the jurisdiction of the commission has

occurred, the
panel
[
commission
] may dismiss the complaint or

motion or promptly
order
[
conduct
] a formal hearing
to be held
under

Sections
571.127
[
571.129
] through 571.132. Not later than the

fifth business day after the date of the
panel's
[
commission's
]

determination under this subsection, the commission shall send to

the complainant, if any, and the respondent a copy of the decision

stating the
panel's
[
commission's
] determination and written notice

of the grounds for the determination.

(e)

If, because of a tie vote, the panel cannot issue a

decision under Subsection (a), the panel shall order a formal

hearing to be held under Sections 571.127 through 571.132. Not

later than the fifth business day after the date of the vote, the

commission shall notify the complainant, if any, and the respondent

of the date, time, and place of the hearing.

(f)

Except as provided by other law or commission rule, if

the respondent accepts the proposed resolution under Subsection

(b), the panel shall submit the proposed resolution to the

commission for approval.

(g)

A commission member that serves on a preliminary review

hearing panel is not required to be recused from a formal hearing

held under Sections 571.127 through 571.132.

SECTION 21. Subchapter E, Chapter 571, Government Code, is

amended by adding Section 571.127 to read as follows:

Sec.

571.127.

FORMAL HEARING: CONDUCT. (a) Except as

provided by Subsection (a-1), the commission may conduct a formal

hearing under this subchapter or may delegate to the State Office of

Administrative Hearings the responsibility of conducting a formal

hearing under this subchapter.

The commission shall provide notice

to each respondent informing the respondent that:

(1)

the respondent may submit a request under

Subsection (a-1) for the State Office of Administrative Hearings to

conduct a formal hearing on the complaint; and

(2)

if the respondent requests the office to conduct

the hearing, the respondent shall pay the costs associated with

conducting the hearing in accordance with Subsection (a-2).

(a-1)

The commission shall refer to the State Office of

Administrative Hearings the responsibility of conducting a formal

hearing under this subchapter if the respondent submits to the

commission a request for the office to conduct the hearing.

(a-2)

Notwithstanding any other law, including Section

2003.024, a respondent who submits a request under Subsection (a-1)

for the State Office of Administrative Hearings to conduct a formal

hearing of a complaint must pay the costs associated with

conducting the hearing in an amount the administrative law judge

sets for the hearing. The administrative law judge shall ensure the

costs are set in an amount that:

(1)

allows the office to recover all or a substantial

part of its costs in holding the hearing; and

(2)

does not exceed the maximum billing rate permitted

under law for hearings conducted by the office, including the

General Appropriations Act.

(b)

The commission shall adopt rules of practice regarding a

formal hearing referred to the State Office of Administrative

Hearings, including rules:

(1) on which party bears the burden of proof;

(2) on what standard of evidence is required;

(3) of evidence that may be applicable;

(4) on subpoena power; and

(5) on contempt power.

(c)

Proceedings for a formal hearing conducted by the State

Office of Administrative Hearings are governed by Chapter 2001.

Notwithstanding Section 571.1233, the commission shall ensure

rules of practice the commission adopts under Section 2001.004

applicable to the proceedings for a formal hearing do not conflict

with rules the State Office of Administrative Hearings adopts.

SECTION 22. Section 571.1731, Government Code, is amended

by adding Subsection (d) to read as follows:

(d)

The commission shall waive a civil penalty imposed under

Section 305.033(b) or 572.033(b) of this code or Section

254.042(b), Election Code, if the commission has no record of

providing the late filing notice required by those sections.

SECTION 23. Section 571.177, Government Code, is amended to

read as follows:

Sec. 571.177. [
FACTORS CONSIDERED FOR
] ASSESSMENT
AND

SCHEDULE
OF SANCTION
OR PENALTIES
.
(a)
The commission shall

consider the following factors in assessing a sanction
or civil

penalty for a violation of a law within the commission's

jurisdiction
:

(1) the seriousness of the violation, including the

nature, circumstances, consequences, extent, and gravity of the

violation;

(2) the history and extent of previous violations;

(3) the demonstrated good faith of the violator,

including actions taken to rectify the consequences of the

violation;

(4) the penalty necessary to deter future violations;

and

(5) any other matters that justice may require.

(b)

The commission may assess graduated penalties against a

person who repeatedly files late statements or reports in violation

of:

(1) Chapter 305;

(2) this chapter;

(3) Chapter 572; or

(4) Title 15, Election Code.

(c)

The commission shall establish and publish on the

commission's Internet website a penalty schedule that outlines the

full range and scope of penalties the commission may assess under a

law within the commission's jurisdiction. The commission shall

ensure the penalty schedule:

(1)

includes the specific statutes or commission rules

under which the commission may assess a penalty; and

(2)

takes into consideration aggravating and

mitigating factors related to the assessment of a penalty,

including the severity of a violation and graduated penalties for

repeat violations.

SECTION 24. The heading to Section 572.030, Government

Code, is amended to read as follows:

Sec. 572.030. PREPARATION [
AND MAILING
] OF FORMS
; NOTICE OF

FILING REQUIREMENTS
.

SECTION 25. Sections 572.030(b), (c), and (d), Government

Code, are amended to read as follows:

(b) The commission shall mail to each individual required to

file under this subchapter a notice that:

(1) states that the individual is required to file a

financial statement under this subchapter;

(2) identifies the filing dates for the financial

statement as provided by Sections 572.026 and 572.027;

(3) describes the manner in which the individual may

obtain the financial statement forms and instructions from the

commission's Internet website;

(4) states that on request of the individual, the

commission will
provide
[
mail to
] the individual
with
a copy of the

financial statement forms and instructions; and

(5) states, if applicable, the fee for mailing the

forms and instructions and the manner in which the individual may

pay the fee.

(c) The
commission shall provide the
notice required by

Subsection (b) [
must be mailed
]:

(1) before the 30th day before the deadline for filing

the financial statement under Section 572.026(a) or (c), except as

otherwise provided by this subsection;

(2) not later than the 15th day after the applicable

deadline for filing an application for a place on the ballot or a

declaration of write-in candidacy for candidates required to file

under Section 572.027(a), (b), or (c);

(3) not later than the seventh day after the date of

appointment for individuals required to file under Section

572.026(b), or if the legislature is in session, sooner if

possible; and

(4) not later than the fifth day after the date the

certificate of nomination is filed for candidates required to file

under Section
572.027(d)
[
574.027(d)
].

(d) The commission shall
provide
[
mail
] a copy of the

financial statement forms and instructions to an individual
on

request of the individual
not later than the third business day

after the date the commission receives the individual's request for

the forms and instructions.

SECTION 26. Sections 572.033(a) and (b), Government Code,

are amended to read as follows:

(a) The commission shall determine from any available

evidence whether a statement required to be filed under this

subchapter is late. On making a determination that the statement is

late, the commission shall immediately
provide
[
mail a notice of

the determination
] to the individual responsible for filing the

statement and [
to
] the appropriate attorney for the state
notice of

the determination
.

(b) If a statement is determined to be late, the individual

responsible for filing the statement is liable to the state for a

civil penalty of $500. If a statement is more than 30 days late, the

commission shall issue a warning of liability [
by registered mail
]

to the individual responsible for the filing. If the penalty is not

paid before the 10th day after the date on which the warning is

received, the individual is liable for a civil penalty in an amount

determined by commission rule, but not to exceed $10,000.

SECTION 27. The following provisions are repealed:

(1) Sections 254.036(c), (c-1), and (g), Election

Code;

(2) Section 571.032, Government Code;

(3) Section 571.1212, Government Code; and

(4) Section 571.1242(b), Government Code.

SECTION 28. Section 254.042, Election Code, as amended by

this Act, applies only to a report that is required to be filed

under Chapter 254, Election Code, on or after the effective date of

this Act. A report under that chapter that is required to be filed

before the effective date of this Act is governed by the law in

effect on the date the report was required to be filed, and the

former law is continued in effect for that purpose.

SECTION 29. (a) Except as provided by Subsection (b) of

this section, Section 571.0271, Government Code, as amended by this

Act, applies to a member of the Texas Ethics Commission appointed

before, on, or after the effective date of this Act.

(b) A member of the Texas Ethics Commission who, before the

effective date of this Act, completed the training program required

by Section 571.0271, Government Code, as that law existed before

the effective date of this Act, is only required to complete

additional training on the subjects added by this Act to the

training program required by Section 571.0271, Government Code. A

member described by this subsection may not vote, deliberate, or be

counted as a member in attendance at a meeting of the Texas Ethics

Commission held on or after December 1, 2025, until the member

completes the additional training.

SECTION 30. This Act takes effect September 1, 2025.