HOUSE JOURNAL SEVENTY-SEVENTH LEGISLATURE, REGULAR SESSION PROCEEDINGS

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1 Tuesday, April 17, 2001 HOUSE JOURNAL 53rd Day 1131 HOUSE JOURNAL SEVENTY-SEVENTH LEGISLATURE, REGULAR SESSION PROCEEDINGS FIFTY-THIRD DAY TUESDAY, APRIL 17, 2001 The house met at 10 a.m. and was called to order by the speaker. The roll of the house was called and a quorum was announced present (Record 133). Present Mr. Speaker; Alexander; Allen; Averitt; Bailey; Berman; Bonnen; Bosse; Brimer; Brown, B.; Brown, F.; Burnam; Callegari; Capelo; Carter; Chavez; Chisum; Christian; Clark; Coleman; Cook; Corte; Counts; Crabb; Craddick; Crownover; Danburg; Davis, J.; Davis, Y.; Delisi; Denny; Deshotel; Driver; Dukes; Dunnam; Dutton; Edwards; Ehrhardt; Eiland; Elkins; Ellis; Farabee; Farrar; Flores; Gallego; Garcia; George; Geren; Giddings; Glaze; Goodman; Goolsby; Gray; Green; Grusendorf; Gutierrez; Haggerty; Hamric; Hardcastle; Hartnett; Hawley; Heflin; Hill; Hinojosa; Hochberg; Hodge; Homer; Hope; Hopson; Howard; Hunter; Hupp; Isett; Janek; Jones, D.; Jones, E.; Jones, J.; Junell; Keel; Keffer; King, P.; King, T.; Kitchen; Kolkhorst; Krusee; Kuempel; Lewis, G.; Lewis, R.; Longoria; Luna; Madden; Marchant; Martinez Fischer; Maxey; McCall; McClendon; McReynolds; Menendez; Merritt; Moreno, J.; Moreno, P.; Morrison; Mowery; Naishtat; Najera; Nixon; Noriega; Oliveira; Olivo; Pickett; Pitts; Puente; Ramsay; Rangel; Raymond; Reyna, A.; Reyna, E.; Ritter; Sadler; Salinas; Seaman; Shields; Smith; Smithee; Solis; Solomons; Swinford; Talton; Telford; Thompson; Tillery; Turner, B.; Turner, S.; Uher; Uresti; Villarreal; Walker; West; Williams; Wilson; Wise; Wohlgemuth; Wolens; Woolley; Yarbrough; Zbranek. Absent, Excused Hilbert; Hilderbran; Miller; Truitt. The invocation was offered by Reverend Terry Gayle, pastor, University Baptist Church, San Antonio, as follows: Our heavenly Father, we begin this day together by thanking you and praising you for all your blessings. We are reminded that we live from breath to breath and every breath is a gift from you. Let us not take your goodness to us for granted. You are truly our heavenly Father who is able to supply our every need. I thank you for every man and woman in this house and for their work on behalf of our great State of Texas. Because we are weak and frail, I want to lift up before you each member for your guidance, strength, and protection. Some here are going through adversity at this very time. Some have family problems; some are struggling with personal strongholds that enslave them. Some are discouraged; some are stressed over the future; some are uncertain about what decisions to make. And because you are the sovereign God, with all knowledge and power, all love, and because you care about every detail of our lives, I want to lift these here today up before your throne of grace. Make us ever aware that you are the Lord God and nothing is impossible for you. We confess that apart from you we can do nothing. Thank you for hearing our prayer. We pray in the name of Jesus. Amen.

2 th LEGISLATURE REGULAR SESSION LEAVES OF ABSENCE GRANTED The following member was granted leave of absence for today because of important business in the district: Miller on motion of Hopson. The following members were granted leave of absence for today because of illness: Hilbert on motion of Haggerty. Truitt on motion of T. King. The following member was granted leave of absence temporarily for today to attend a funeral: Hilderbran on motion of McCall. MESSAGE FROM THE SENATE A message from the senate was received at this time (see the addendum to the daily journal, Messages from the Senate, Message No. 1). CAPITOL PHYSICIAN The speaker recognized Representative Luna who presented Dr. John Whitham of Corpus Christi as the "Doctor for the Day." The house welcomed Dr. Whitham and thanked him for his participation in the Physician of the Day Program sponsored by the Texas Academy of Family Physicians. (Speaker pro tempore in the chair) INTRODUCTION OF GUESTS The chair recognized Representative Yarbrough, who introduced the Robotics Team from Booker T. Washington High School and their principal, Mr. Franklin Wesley. HR ADOPTED (by Kolkhorst) Representative Kolkhorst moved to suspend all necessary rules to take up and consider at this time HR 753. The motion prevailed without objection. The following resolution was laid before the house: HR 753, In memory of Matthew Gaines of Washington County. HR 753 was read and was unanimously adopted by a rising vote. INTRODUCTION OF GUESTS The chair recognized Representative Kolkhorst, who introduced Dr. Merline Pitrie, acting dean of Texas Southern University; Professor Richard Stadelmann of the Washington County Historical Society; and Curtis McDonald, chemistry professor at Texas Southern University.

3 Tuesday, April 17, 2001 HOUSE JOURNAL 53rd Day 1133 HR ADOPTED (by Geren, et al.) Representative Geren moved to suspend all necessary rules to take up and consider at this time HR 452. The motion prevailed without objection. The following resolution was laid before the house: HR 452, In memory of John Sullivan Justin, Jr., of Fort Worth. HR 452 was unanimously adopted by a rising vote. HR ADOPTED (by Green) Representative Green moved to suspend all necessary rules to take up and consider at this time HR 738. The motion prevailed without objection. The following resolution was laid before the house: HR 738, Congratulating James Fuschak of Wimberley on winning the National Championship Finals in the Coca-Cola Classic bowling tournament. HR 738 was read and was adopted without objection. INTRODUCTION OF GUESTS The chair recognized Representative Green, who introduced James Fuschak, his family and his coach. MESSAGE FROM THE SENATE A message from the senate was received at this time (see the addendum to the daily journal, Messages from the Senate, Message No. 2). HR ADOPTED (by Talton) Representative Talton moved to suspend all necessary rules to take up and consider at this time HR 658. The motion prevailed without objection. The following resolution was laid before the house: HR 658, Commemorating the 53rd anniversary of the naming of the battleship Texas as the flagship of the Texas Navy. HR 658 was read and was adopted without objection. HR ADOPTED (by Hill) Representative Hill moved to suspend all necessary rules to take up and consider at this time HR 737. The motion prevailed without objection.

4 th LEGISLATURE REGULAR SESSION The following resolution was laid before the house: HR 737, Honoring John Andrew Mabry of Garland on his retirement from the comptroller of public accounts. HR 737 was adopted without objection. HR ADOPTED (by Ellis) Representative Ellis moved to suspend all necessary rules to take up and consider at this time HR 699. The motion prevailed without objection. The following resolution was laid before the house: HR 699, Honoring Shannon Marie Clancy for being named Miss Tyler County HR 699 was read and was adopted without objection. INTRODUCTION OF GUESTS The chair recognized Representative Ellis, who introduced Shannon Marie Clancy, Miss Tyler County 2001, and her family. HR ADOPTED (by Goolsby) Representative Goolsby moved to suspend all necessary rules to take up and consider at this time HR 747. The motion prevailed without objection. The following resolution was laid before the house: HR 747, Congratulating Central Insurance Companies on its 125th anniversary. HR 747 was adopted without objection. (Speaker in the chair) HR ADOPTED (by Flores, Luna, Keel, and E. Jones) Representative Flores moved to suspend all necessary rules to take up and consider at this time HR 679. The motion prevailed without objection. The following resolution was laid before the house: HR 679, Congratulating The Legends for receiving the 2001 Grammy Award for Best Tejano Album for Que Es Musica Tejana? HR 679 was read and was adopted without objection. On motion of Representative Edwards, the names of all the members of the house were added to HR 679 as signers thereof.

5 Tuesday, April 17, 2001 HOUSE JOURNAL 53rd Day 1135 INTRODUCTION OF GUESTS The speaker recognized Representative Flores, who introduced The Legends, 2001 Grammy Award winners for Best Tejano Album. (McClendon in the chair) HR ADOPTED (by Hodge) Representative Hodge moved to suspend all necessary rules to take up and consider at this time HR 751. The motion prevailed without objection. The following resolution was laid before the house: HR 751, Commending Lauren Banks of Dallas as she serves as an honorary page on April 17, HR 751 was read and was adopted without objection. On motion of Representative Hochberg, the names of all the members of the house were added to HR 751 as signers thereof. INTRODUCTION OF GUESTS The chair recognized Representative Hodge, who introduced Lauren Banks and her family. INTRODUCTION OF GUESTS The chair recognized Representative Howard, who introduced Detective Elmo C. Cepeda; Assistant Chief of Police Robert Neil "Bob" Rack; and Corporal Afton Lamar Lawson, Jr. HR 323, honoring Detective Elmo C. Cepeda on his retirement from the Missouri City Police Department, having been previously adopted, was read. HR 324, honoring Assistant Chief of Police Robert Neil "Bob" Rack of Missouri City on his retirement, having been previously adopted, was read. HR 338, congratulating Corporal Afton Lamar Lawson, Jr., on his retirement from the Missouri City Police Department, having been previously adopted, was read. (Speaker in the chair) REGULAR ORDER OF BUSINESS SUSPENDED On motion of Representative Edwards and by unanimous consent, the reading and referral of bills was postponed until just prior to adjournment. PROVIDING FOR A CONGRATULATORY AND MEMORIAL CALENDAR Representative Edwards moved to set a congratulatory and memorial calendar for 10 a.m. Friday, April 20. The motion prevailed without objection.

6 th LEGISLATURE REGULAR SESSION PROVIDING FOR A LOCAL, CONSENT, AND RESOLUTIONS CALENDAR Representative Y. Davis moved to set a local, consent, and resolutions calendar for 10 a.m. Friday, April 20. The motion prevailed without objection. POSTPONED BUSINESS The following bill was laid before the house as postponed business: SB 923 ON SECOND READING (Goolsby - House Sponsor) SB 923, A bill to be entitled An Act relating to the prosecution of the offense of fraudulent destruction, removal, or concealment of a universal product code. SB 923 was considered in lieu of HB 376 SB 923 was read second time and passed to third reading. HB LAID ON THE TABLE SUBJECT TO CALL Representative Goolsby moved to lay HB 376 on the table subject to call. The motion prevailed without objection. CONSTITUTIONAL AMENDMENTS CALENDAR HOUSE JOINT RESOLUTIONS SECOND READING The following resolution was laid before the house and read second time: CSHJR 52 ON SECOND READING (by Cook) CSHJR 52, A joint resolution proposing a constitutional amendment clearing land titles by relinquishing and releasing any claim of sovereign ownership or title to an interest in certain lands in Bastrop County. A record vote was requested. CSHJR 52 was adopted by (Record 134): 140 Yeas, 1 Nay, 1 Present, not voting. Yeas Alexander; Allen; Averitt; Bailey; Berman; Bonnen; Brimer; Brown, B.; Brown, F.; Burnam; Callegari; Capelo; Carter; Chisum; Christian; Clark; Coleman; Cook; Corte; Counts; Crabb; Craddick; Crownover; Danburg; Davis, J.; Davis, Y.; Delisi; Denny; Deshotel; Driver; Dukes; Dunnam; Dutton; Edwards; Ehrhardt; Eiland; Elkins; Ellis; Farabee; Farrar; Flores; Gallego; Garcia; George; Geren; Giddings; Glaze; Goodman; Goolsby; Gray; Green; Grusendorf; Haggerty; Hamric; Hardcastle; Hartnett; Hawley; Heflin; Hill; Hinojosa; Hochberg; Hodge; Homer; Hope; Hopson; Howard; Hunter; Hupp; Isett; Janek; Jones, D.; Jones, E.; Jones, J.; Junell; Keel; Keffer; King, P.; King, T.; Kitchen; Kolkhorst; Krusee; Kuempel; Lewis, G.; Lewis, R.; Longoria; Luna; Madden; Marchant; Martinez Fischer; Maxey; McCall; McClendon;

7 Tuesday, April 17, 2001 HOUSE JOURNAL 53rd Day 1137 McReynolds; Menendez; Merritt; Moreno, J.; Moreno, P.; Morrison; Mowery; Naishtat; Najera; Nixon; Noriega; Oliveira; Olivo; Pickett; Pitts; Puente; Ramsay; Rangel; Raymond; Reyna, A.; Reyna, E.; Ritter; Sadler; Salinas; Seaman; Smith; Smithee; Solis; Solomons; Swinford; Talton; Telford; Thompson; Tillery; Turner, B.; Turner, S.; Uher; Uresti; Villarreal; Walker; West; Williams; Wilson; Wise; Wolens; Woolley; Yarbrough; Zbranek. Nay Shields. Present, not voting Mr. Speaker(C). Absent, Excused Hilbert; Hilderbran; Miller; Truitt. Absent Bosse; Chavez; Gutierrez; Wohlgemuth. GENERAL STATE CALENDAR SENATE BILLS THIRD READING The following bill was laid before the house and read third time: SB 302 ON THIRD READING (McCall - House Sponsor) SB 302, A bill to be entitled An Act relating to the continuation of the State Pension Review Board and to functions performed by the board. SB 302 was passed. GENERAL STATE CALENDAR HOUSE BILLS SECOND READING The following bills were laid before the house and read second time: CSHB 2 ON SECOND READING (by Gallego, Danburg, Madden, Swinford, Junell, et al.) CSHB 2, A bill to be entitled An Act relating to the regulation of certain political contributions, political expenditures, and political advertising; providing civil and criminal penalties. Amendment No. 1 Representative Denny offered the following amendment to CSHB 2: Amend CSHB 2 by striking all below the enacting clause and substituting the following: SECTION 1. Section , Election Code, is amended by amending Subdivisions (2) and (8) and adding Subdivisions (21) and (22) to read as follows: (2) "Contribution" means a direct or indirect transfer of money, goods, services, or any other thing of value and includes an agreement made or other obligation incurred, whether legally enforceable or not, to make a transfer. The term includes a loan or extension of credit, other than those expressly excluded by this subdivision, and a guarantee of a loan or extension of credit, including a loan described by this subdivision. The term does not include:

8 th LEGISLATURE REGULAR SESSION (A) a loan made in the due course of business by a corporation that is legally engaged in the business of lending money and that has conducted the business continuously for more than one year before the loan is made; [or] (B) an expenditure required to be reported under Section (b), Government Code; or (C) the value of services provided without compensation by any individual who volunteers on behalf of a candidate, officeholder, or political committee. (8) "Direct campaign expenditure" means an expenditure by a person for, or related to, political advertising that contains express advocacy and is not made with the cooperation of, in consultation with, in concert with, or at the request or suggestion of a candidate or officeholder or any agent or political committee controlled by the candidate or officeholder. Political advertising is made with the cooperation of, in consultation with, in concert with, or at the request or suggestion of a candidate or officeholder or any agent or political committee controlled by the candidate or officeholder only if it is a coordinated general public political communication as defined by this section [a campaign expenditure that does not constitute a campaign contribution by the person making the expenditure]. (21) "Coordinated general public political communication" means political advertising that is: (A) paid for by a person other than a candidate or officeholder or a political committee controlled by the candidate or officeholder; and (B) created, produced, or distributed: (i) at the explicit request or suggestion of the candidate or officeholder or a political committee controlled by or an authorized agent of the candidate or officeholder; (ii) after the candidate or officeholder or the candidate's agent has exercised control or decision-making authority over the content, timing, location, mode, intended audience, volume of distribution, or frequency of placement of the communication; or (iii) after substantial discussion or negotiation between the creator, producer, or distributor of the communication, or the person paying for the communication, and the candidate or officeholder or a political committee controlled by or authorized agent of the candidate or officeholder regarding the content, timing, location, mode, intended audience, volume of distribution, or frequency of placement of the communication, the result of which is substantial collaboration or agreement amounting to a partnership or joint venture between the other person and the candidate or officeholder with respect to the political communication. (22) "Express advocacy" means a communication that advocates the election or defeat of a clearly identified candidate or officeholder or measure by containing a word or phrase such as "vote for," "reelect," "support," "cast your ballot for," "(name of candidate) for legislature," "(name of candidate or measure) in 2002," "vote against," "defeat," or "reject." SECTION 2. Section , Election Code, is amended to read as follows:

9 Tuesday, April 17, 2001 HOUSE JOURNAL 53rd Day 1139 Sec ELECTRONIC FILING FOR OUT-OF-STATE COMMITTEES [EXCLUDED]. (a) An out-of-state political committee that files reports with the Federal Election Commission or with the election authority of another state is not required to file such reports with the Texas Ethics Commission if all of the committee's reports are available electronically. An out-of-state political committee that elects not to file reports with the Texas Ethics Commission shall file a one-page notice with the commission stating that: (1) the committee files reports with the Federal Election Commission or with the election authority of another state; and (2) those reports include contributions or expenditures made by the committee in connection with elections in Texas. [An out-of-state political committee is not subject to Chapter 252 or 254, except as provided by Subsection (b) or (c).] (b) A report filed with another state is not considered to be available electronically under Subsection (a) if the Texas Ethics Commission determines that the disclosure requirements of the other state are less than the disclosure requirements of this state [If an out-of-state committee decides to file a campaign treasurer appointment under Chapter 252, at the time the appointment is filed the committee becomes subject to this title to the same extent as a political committee that is not an out-of-state committee. [(c) If an out-of-state committee performs an activity that removes the committee from out-of-state status as defined by Section (15), the committee becomes subject to this title to the same extent as a political committee that is not an out-of-state committee]. SECTION 3. Subchapter A, Chapter 251, Election Code, is amended by adding Section to read as follows: Sec PROTECTION OF INFORMATION. (a) Recognizing that contributor information required to be included in reports required by Chapter 254 is proprietary information having substantial value, no information obtained from any reports required to be maintained or filed under this title may, without the express written consent of the filer, be sold or used by any person other than the filer: (1) for soliciting contributions for any purpose; or (2) for any commercial purposes. (b) The use of information that is copied or otherwise obtained from reports filed under this title in newspapers, magazines, books, or other similar communications is permissible if the principal purpose of the communication is to educate the public and not to communicate any contributor information listed on the reports for the purpose of soliciting contributions or for other commercial purposes. (c) A person required to report contributions under Chapter 254 may submit up to 10 pseudonyms on each report filed in order to protect against illegal use of names and addresses of contributors provided that the total amount of fictitious contributions does not exceed the greater of five percent of contributions reported or $2,500. If a filer uses pseudonyms, the filer shall subtract the total dollar amount of the fictitious contributions from the total of unitemized contributions required to be reported under Section (a)(6).

10 th LEGISLATURE REGULAR SESSION Any filer who uses pseudonyms shall submit a list of the pseudonyms and amounts contributed separately to the commission on or before the date on which the report containing the fictitious names is filed. The commission shall exclude the list of pseudonyms from the public records, and the list shall be kept confidential by the commission and may not be disclosed to the public for any reason without the express written consent of the filer. (d) In addition to any penalties imposed by the commission, any person found to have violated Subsection (a) or (c) shall be liable in damages to the person filing the report. In this subsection, "damages" means the fair market value of the contributor information improperly used and the reasonable attorney's fees incurred by the filer. In addition to damages, the person filing the report shall be entitled as a matter of right to an injunction prohibiting a violation of this section and an order recovering reasonable attorney's fees incurred to obtain the injunctive relief from any district court in this state. (e) A filer may not use this section for the purpose of circumventing the reporting requirements of this title by materially inflating the amount of contributions reported by the filer. SECTION 4. Subsection (a), Section , Election Code, is amended to read as follows: (a) In addition to the information required by Section , a campaign treasurer appointment by a general-purpose committee must include: (1) the full name, and any acronym of the name that will be used in the name of the committee as provided by Subsection (d), of each corporation, labor organization, or other association or legal entity that directly establishes, administers, or controls the committee, if applicable, or the name of each person who determines to whom the committee makes contributions or the name of each person who determines for what purposes the committee makes expenditures; and (2) [the full name and address of each general-purpose committee to whom the committee intends to make political contributions; and [(3)] the name of the committee and, if the name is an acronym, the words the acronym represents. SECTION 5. Subchapter A, Chapter 253, Election Code, is amended by adding Section to read as follows: Sec COERCION PROHIBITED. (a) A person, including a candidate, officeholder, or political committee, commits an offense if the person uses or threatens to use physical force, job discrimination, or financial reprisal to obtain a contribution or other thing of value to be used to influence the result of an election or to assist an officeholder. (b) A candidate, officeholder, or political committee commits an offense if the person accepts or uses money or any other thing of value that is known by the candidate or officeholder or by an officer of the political committee, or an individual who causes the political committee to accept or use the money or other thing of value, to have been obtained in violation of Subsection (a). (c) An offense under this section is a felony of the third degree. SECTION 6. Section , Election Code, is amended to read as follows: Sec CONTRIBUTION AND EXPENDITURE WITHOUT

11 Tuesday, April 17, 2001 HOUSE JOURNAL 53rd Day 1141 CAMPAIGN TREASURER PROHIBITED. (a) A candidate may not knowingly accept a campaign contribution or make or authorize a campaign expenditure at a time when a campaign treasurer appointment for the candidate is not in effect. (b) A political committee may not knowingly accept political contributions totaling more than $500 or make or authorize political expenditures totaling more than $500 at a time when a campaign treasurer appointment for the committee is not in effect. (c) A political committee that files its appointment of treasurer within 30 days before an election may not knowingly make or authorize a campaign contribution or campaign expenditure supporting or opposing a candidate for an office specified by Section (1) in a primary or general election unless the committee files within 48 hours after such appointment of treasurer a report that contains the information required by Chapter 254 covering the period through the date the committee's appointment of [campaign] treasurer was [appointment has been] filed [not later than the 30th day before the appropriate election day]. (d) This section does not apply to a political party's county executive committee that accepts political contributions or makes political expenditures, except that: (1) a county executive committee that accepts political contributions or makes political expenditures shall maintain the records required by Section ; and (2) a county executive committee that accepts political contributions or makes political expenditures that, in the aggregate, exceed $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 (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. (e) This section does not apply to an out-of-state political committee unless the committee meets the requirements of [is subject to Chapter 252 under] Section (f) A person who violates this section commits an offense. An offense under this section is a Class A misdemeanor. SECTION 7. Section , Election Code, is amended to read as follows: Sec CASH CONTRIBUTIONS EXCEEDING $100 PROHIBITED; ANONYMOUS CONTRIBUTIONS. (a) A candidate, officeholder, or specific-purpose committee may not knowingly accept from a contributor in a reporting period political contributions in cash that in the aggregate exceed $100. (b) A candidate, officeholder, or political committee that receives an anonymous cash contribution in excess of $50 shall promptly disburse the amount over $50 to one or more of the entities listed in Section (a)(1), (3), (5), or (6). Anonymous cash contributions of $50 or less may be used by the candidate, officeholder, or political committee for any lawful purpose.

12 th LEGISLATURE REGULAR SESSION (c) A person who violates this section commits an offense. An offense under this section is a Class A misdemeanor. SECTION 8. Subsections (b) and (e), Section , Election Code, are amended to read as follows: (b) A candidate or officeholder who accepts one or more political contributions in the form of loans, including an extension of credit or a guarantee of a loan or extension of credit, from one or more persons related to the candidate or officeholder within the second degree by affinity or consanguinity as determined under Chapter 573, Government Code, may not use political contributions to repay the loans in amounts that in the aggregate exceed the amount prescribed by Subsection (a). A candidate or officeholder may not use political contributions, in amounts that in the aggregate exceed the amount prescribed by Subsection (a), to repay any other loan or extension of credit for which the candidate or officeholder is personally liable or is obligated or that the candidate or officeholder guarantees. (e) This section does not prohibit the payment of interest at a commercially reasonable rate on loans covered by this section from a financial institution. A candidate or officeholder may not use political contributions to pay [at a commercially reasonable rate, except that] interest on loans from a candidate's or officeholder's personal funds or on loans from the personal funds of any person related to the candidate or officeholder within the second degree by affinity or consanguinity [is included in the amount prescribed by Subsection (a), (b), or (c)]. SECTION 9. Section , Election Code, is amended to read as follows: Sec TRAVEL EXPENSE. Unreimbursed travel expenses incurred by an individual shall not be considered a contribution or a [A] direct campaign expenditure and shall not be reportable under this subchapter or Chapter 254 [consisting of personal travel expenses incurred by an individual may be made without complying with Section (a)(1)]. SECTION 10. Section , Election Code, is amended by amending Subsection (b) and adding Subsection (c) to read as follows: (b) A corporation or labor organization may make one or more campaign expenditures from its own property for the purpose of permitting a candidate to appear and speak at a meeting of its directors, officers, stockholders, or members, as applicable, or of the families of its directors, officers, stockholders, or members. A corporation or labor organization may not make an expenditure under this subsection for transportation or lodging. (c) An expenditure under this section is not reportable under Chapter 254. SECTION 11. Subchapter D, Chapter 253, Election Code, is amended by adding Section to read as follows: Sec CONTRIBUTION BY PARTNERSHIP OR LIMITED LIABILITY COMPANY. This subchapter does not prohibit a political contribution made by a partnership or limited liability company if the contribution is not charged to the profits, interest, or capital account of a partner or member that is a corporation covered by Section SECTION 12. Section , Election Code, is amended by amending Subsections (b), (c), and (d) and adding Subsections (e) and (f) to read as follows:

13 Tuesday, April 17, 2001 HOUSE JOURNAL 53rd Day 1143 (b) A judicial candidate or officeholder may not: (1) use political contributions to repay a loan [who accepts one or more political contributions in the form of loans], including an extension of credit or a guarantee of a loan or extension of credit, from one or more persons related to the candidate or officeholder within the second degree by consanguinity, as determined under [Subchapter B,] Chapter 573, Government Code; or (2) use political contributions, in amounts that in the aggregate exceed the amount prescribed by Subsection (a), to repay any other loan or extension of credit for which the candidate or officeholder is personally liable or is obligated or that the candidate or officeholder guarantees[, may not use political contributions to repay the loans]. (c) The total amount of both reimbursements under Subsection (a) and repayments under Subsection (b)(2) made by a judicial candidate or officeholder may not exceed the amount prescribed by Subsection (a). (d) A person who is both a candidate and an officeholder may reimburse the person's personal funds or repay loans from political contributions only in one capacity. (e) This section does not prohibit the payment of interest at a commercially reasonable rate on loans covered by this section from a financial institution. A judicial candidate or officeholder may not use political contributions to pay interest on loans from a candidate's or officeholder's personal funds or on loans from the personal funds of any person related to the candidate or officeholder within the second degree by affinity or consanguinity. (f) [(d)] A person who violates this section is liable for a civil penalty not to exceed three times the amount by which the reimbursement made in violation of this section exceeds the applicable limit prescribed by Subsection (a). SECTION 13. Subsection (a), Section , Election Code, is amended to read as follows: (a) Except as otherwise provided by this chapter, each report filed under this chapter must include: (1) the amount of political contributions from each person that in the aggregate exceed $100 [$50] and that are accepted during the reporting period by the person or committee required to file a report under this chapter, the full name and address of the person making the contributions, and the dates of the contributions, and: (A) if the contribution is an in-kind contribution, a description of the property or services contributed; and (B) with respect to contributions, other than contributions subject to Section (9), made by any partnership, limited liability company, professional corporation, or professional association, the name of each partner, member, or shareholder, as applicable, whose interest in the entity's profits has been charged by the contribution; (2) for each individual from whom the person or committee required to file the report has accepted political contributions that in the aggregate exceed $500 and that are accepted during the reporting period: (A) the individual's principal occupation or job title; and (B) the full name of the individual's employer, if any;

14 th LEGISLATURE REGULAR SESSION (3) the original principal amount of loans that are made during the reporting period for campaign or officeholder purposes to the person or committee required to file the report and that in the aggregate exceed $100 [$50], the dates the loans are made, the interest rate, the maturity date, the type of collateral for the loans, if any, the full name and address of the person or financial institution making the loans, the full name and address, principal occupation, and name of the employer of each guarantor of the loans, the amount of the loans guaranteed by each guarantor, and on a separate schedule the full name and address of the person or financial institution making each loan, the date each loan was made, the original principal amount of each loan, and the [aggregate] principal amount of each [all] outstanding loan [loans] as of the last day of the reporting period; (4) [(3)] the amount of political expenditures that in the aggregate exceed $100 [$50] and that are made during the reporting period, the full name and address of the persons to whom the expenditures are made, and the dates and purposes of the expenditures; (5) [(4)] the amount of each payment made during the reporting period from a political contribution if the payment is not a political expenditure, the full name and address of the person to whom the payment is made, and the date and purpose of the payment; (6) [(5)] the total amount or a specific listing of the political contributions of $100 [$50] or less accepted and the total amount or a specific listing of the political expenditures of $100 [$50] or less made during the reporting period; (7) [(6)] the total amount of all political contributions accepted and the total amount of all political expenditures made during the reporting period; [and] (8) [(7)] the name of each candidate or officeholder who benefits from a direct campaign expenditure made during the reporting period by the person or committee required to file the report, and the office sought or held, excluding a direct campaign expenditure that is made by the principal political committee of a political party on behalf of a slate of two or more nominees of that party; and (9) the total amount of funds, including interest or other income, maintained in one or more accounts in which political contributions are deposited as of the last day of the reporting period. SECTION 14. Subchapter B, Chapter 254, Election Code, is amended by adding Sections and to read as follows: Sec BEST EFFORTS. (a) A person required to file a report under this chapter is considered to have used best efforts to obtain, maintain, and report the information required by Section (a)(2) if the person or the person's campaign treasurer complies with this section. (b) Each written solicitation for political contributions from an individual must include: (1) a request for the individual's full name and address, the individual's principal occupation or job title, and the full name of the individual's employer; and (2) a statement of state law regarding the collection and reporting of individual contributor information, such as:

15 Tuesday, April 17, 2001 HOUSE JOURNAL 53rd Day 1145 (A) "State law requires (a candidate, officeholder, or committee, as applicable) to use best efforts to request and report the full name and address, principal occupation or job title, and full name of employer of individuals whose contributions exceed $500 in a reporting period."; or (B) "To comply with state law, (a candidate, officeholder, or committee, as applicable) must use best efforts to request, maintain, and report the full name and address, principal occupation or job title, and full name of employer of individuals whose contributions exceed $500 in a reporting period." (c) For each political contribution received from an individual which, when aggregated with all other political contributions received from the individual during the reporting period, exceeds $500 and for which the information required by Section (a)(2) is not provided, the person must make at least one oral or written request for the missing information. A request under this subsection: (1) must be made not later than the 30th day after the date the contribution is received; and (2) may not be made in conjunction with a solicitation for an additional political contribution. (d) A request under Subsection (c) that is made in writing must include a clear and conspicuous statement that complies with Subsection (b)(2) and a preaddressed envelope or postcard for responding to the request. A request that is made orally must be documented in writing. (e) A person must report any information required by Section (a)(2) that is not provided by the individual making the contribution and that the person has in the person's records of political contributions or previous reports under this chapter. (f) Instead of the request and statement required by Subsection (b), a person may use any disclosure containing a similar request and statement that has been approved by the Federal Election Commission. Sec REPORTING BY OUT-OF-STATE POLITICAL COMMITTEE. Instead of the information required by Sections (a)(4), (6), and (7), each report filed under this chapter by an out-of-state political committee must include: (1) the amount of political expenditures in connection with elections in this state that in the aggregate exceed $100 and that are made during the reporting period, the full name and address of the persons to whom the expenditures are made, and the dates and purposes of the expenditures; (2) the total amount or a specific listing of the political contributions of $100 or less accepted and the total amount or a specific listing of the political expenditures in connection with elections in this state of $100 or less made during the reporting period; and (3) the total amount of all political contributions accepted and the total amount of all political expenditures in connection with elections in this state made during the reporting period. SECTION 15. Subsection (a), Section , Election Code, is amended to read as follows: (a) In addition to other reports required by this chapter, the following persons shall file additional reports during the period beginning the ninth day before election day and ending at 12 noon on the second day before election day:

16 th LEGISLATURE REGULAR SESSION (1) a candidate for statewide office who has an opponent whose name is to appear on the ballot and who accepts political contributions from a person that in the aggregate exceed $1,000 during that reporting period; (2) a candidate for state senator who has an opponent whose name is to appear on the ballot and who accepts political contributions from a person that in the aggregate exceed $1,000 during that reporting period; (3) [(2)] a candidate for state representative who has an opponent whose name is to appear on the ballot and who accepts political contributions from a person that in the aggregate exceed $200 during that reporting period; (4) a specific-purpose committee for supporting or opposing a candidate for statewide office and that accepts political contributions from a person that in the aggregate exceed $1,000 during that reporting period; (5) [(3)] a specific-purpose committee for supporting or opposing a candidate for state senator and that accepts political contributions from a person that in the aggregate exceed $1,000 during that reporting period; and (6) [(4)] a specific-purpose committee for supporting or opposing a candidate for state representative and that accepts political contributions from a person that in the aggregate exceed $200 during that reporting period. SECTION 16. Subchapter B, Chapter 254, Election Code, is amended by adding Section to read as follows: Sec TELEGRAM REPORT OF CERTAIN DIRECT CAMPAIGN EXPENDITURES. (a) In addition to other reports required by this chapter, a person or general-purpose committee that makes direct campaign expenditures that in the aggregate exceed $5,000 during the period beginning the ninth day before election day and ending at 12 noon on the second day before election day shall file a report not later than 48 hours after the expenditure is made. (b) Each report required by this section must include the amount of the expenditures, the full name and address and principal occupation of the persons to whom the expenditures are made, and the dates of the expenditures. (c) A report under this section shall be filed by telegram or telephonic facsimile machine or by hand. (d) This section does not apply to a direct campaign expenditure made by the principal political committee of a political party. (e) Section does not apply to a report required by this section. SECTION 17. Subsection (c), Section , Election Code, is amended to read as follows: (c) A violation of Subsection (a)(1) [(a)(2) by a candidate or officeholder] is a Class A misdemeanor if it is shown on the trial of the offense that the person intentionally failed to file the report on time with knowledge of the legal obligation to file the report [fails to include information required by Section (3) or Section (2), as applicable]. SECTION 18. Subsection (a), Section , Election Code, is amended to read as follows: (a) The commission shall determine from any available evidence whether a report, other than a telegram report under Section [or ], required to be filed with the commission under this chapter is late. On making that determination, the commission shall immediately mail a notice of the determination to the person required to file the report.

17 Tuesday, April 17, 2001 HOUSE JOURNAL 53rd Day 1147 SECTION 19. Section , Election Code, is amended to read as follows: Sec ADDITIONAL CONTENTS OF REPORTS. In addition to the contents required by Section , each report by a candidate must include: (1) the candidate's full name and address, the office sought, and the identity and date of the election for which the report is filed; (2) the campaign treasurer's name, residence or business street address, and telephone number; and (3) [for each political committee from which the candidate received notice under Section or : [(A) the committee's full name and address; [(B) an indication of whether the committee is a generalpurpose committee or a specific-purpose committee; and [(C) the full name and address of the committee's campaign treasurer; [(4) the full name and address of each individual acting as a campaign treasurer of a political committee under Section from whom the candidate received notice under Section or ; and [(5)] on a separate page or pages of the report, the identification of any payment from political contributions made to a business in which the candidate has a participating interest of more than 10 percent, holds a position on the governing body of the business, or serves as an officer of the business. SECTION 20. Section , Election Code, is amended to read as follows: Sec ADDITIONAL CONTENTS OF REPORTS. In addition to the contents required by Section , each report by an officeholder must include: (1) the officeholder's full name and address and the office held; and (2) [for each political committee from which the officeholder received notice under Section or : [(A) the committee's full name and address; [(B) an indication of whether the committee is a generalpurpose committee or a specific-purpose committee; and [(C) the full name and address of the committee's campaign treasurer; and [(3)] on a separate page or pages of the report, the identification of any payment from political contributions made to a business in which the officeholder has a participating interest of more than 10 percent, holds a position on the governing body of the business, or serves as an officer of the business. SECTION 21. Section , Election Code, is amended to read as follows: Sec NOTICE TO CANDIDATE AND OFFICEHOLDER OF IN- KIND CONTRIBUTIONS [AND EXPENDITURES]. (a) If a specific-purpose committee, other than a special-purpose committee established, controlled, or authorized by the candidate or officeholder, [accepts political contributions or] makes political expenditures for a candidate or officeholder that constitute

18 th LEGISLATURE REGULAR SESSION an in-kind contribution, the committee's campaign treasurer shall deliver written notice of that fact to the affected candidate or officeholder not later than the end of the period covered by the report in which the reportable activity occurs. (b) The notice must include the full name and address of the political committee and its campaign treasurer, [and] an indication that the committee is a specific-purpose committee, and the amount and nature of the contribution. (c) A campaign treasurer commits an offense if the campaign treasurer fails to comply with this section. An offense under this section is a Class A misdemeanor. SECTION 22. Section , Election Code, is amended to read as follows: Sec ADDITIONAL CONTENTS OF REPORTS. In addition to the contents required by Section , each report by a campaign treasurer of a general-purpose committee must include: (1) the committee's full name and address; (2) the full name, residence or business street address, and telephone number of the committee's campaign treasurer; (3) the identity and date of the election for which the report is filed, if applicable; (4) the name of each identified candidate or measure or classification by party of candidates supported or opposed by the committee, indicating whether the committee supports or opposes each listed candidate, measure, or classification by party of candidates; (5) the name of each identified officeholder or classification by party of officeholders assisted by the committee; (6) the principal occupation of each person from whom political contributions that in the aggregate exceed $500 [$50] are accepted during the reporting period; (7) the amount of each political expenditure in the form of a political contribution made to a candidate, officeholder, or another political committee that is returned to the committee during the reporting period, the name of the person to whom the expenditure was originally made, and the date it is returned; [and] (8) on a separate page or pages of the report, the identification of any contribution from a corporation or labor organization made and accepted under Subchapter D, Chapter 253; and (9) on a separate page or pages of the report, the identification of any contribution made to the committee that is intended by the donor to be used by the committee for administrative, overhead, or fund-raising expenses, unless the contribution is otherwise disclosed elsewhere in the report. SECTION 23. Section , Election Code, is amended to read as follows: Sec NOTICE TO CANDIDATE AND OFFICEHOLDER OF CONTRIBUTIONS AND EXPENDITURES. If a general-purpose committee other than the principal political committee of a political party or a political committee established by a political party's county executive committee [accepts political contributions or] makes direct political expenditures for a

19 Tuesday, April 17, 2001 HOUSE JOURNAL 53rd Day 1149 candidate or officeholder that constitute a contribution, notice of that fact shall be given to the affected candidate or officeholder as provided by Section for a specific-purpose committee. SECTION 24. Section , Election Code, is amended by amending Subsection (b) and adding Subsection (c) to read as follows: (b) Subject to Subsection (c), a [A] political party that accepts contributions authorized by Section shall maintain the contributions in a separate account. (c) Nothing in this title shall prohibit a political party from transferring funds held in the account required to be maintained under Subsection (b) to another account maintained by the political party under the requirements of federal law for the purpose of disbursing the political party's funds generally if the political party can reasonably demonstrate that the funds are being disbursed from the other account in compliance with applicable federal law and for permitted uses and purposes. SECTION 25. The following laws are repealed: (1) Sections and , Election Code; (2) Subsection (d), Section , Election Code; (3) Sections and , Election Code; and (4) Section , Election Code. SECTION 26. (a) The change in law made by this Act applies only to an offense committed on or after the effective date of this Act. For purposes of this section, an offense is committed before the effective date of this Act if any element of the offense occurs before the effective date. (b) An offense committed before the effective date of this Act is covered by the law in effect when the offense was committed, and the former law is continued in effect for that purpose. SECTION 27. Sections and , Election Code, as amended by this Act, apply only to repayment of a loan or extension of credit made on or after September 1, The repayment of a loan or extension of credit made before September 1, 2001, is governed by the law in effect on the date the loan or extension of credit was made, and the former law is continued in effect for that purpose. SECTION 28. This Act takes effect September 1, Representative Gallego moved to table Amendment No. 1. A record vote was requested. The motion to table prevailed by (Record 135): 74 Yeas, 69 Nays, 2 Present, not voting. Yeas Alexander; Bailey; Bosse; Burnam; Capelo; Carter; Chavez; Coleman; Cook; Counts; Danburg; Deshotel; Dukes; Dunnam; Dutton; Ehrhardt; Ellis; Farabee; Farrar; Flores; Gallego; Garcia; Giddings; Glaze; Gray; Gutierrez; Hawley; Hinojosa; Hochberg; Hodge; Homer; Hopson; Jones, J.; Junell; King, T.; Kitchen; Lewis, G.; Lewis, R.; Longoria; Luna; Martinez Fischer; Maxey; McClendon; McReynolds; Menendez; Moreno, J.; Moreno, P.; Naishtat; Najera; Noriega; Oliveira; Olivo; Pickett; Puente; Ramsay; Rangel; Raymond; Reyna, A.; Ritter; Sadler; Salinas; Solis; Telford; Thompson; Tillery; Turner, B.; Turner, S.; Uher; Uresti; Villarreal; Wise; Wolens; Yarbrough; Zbranek.

20 th LEGISLATURE REGULAR SESSION Nays Allen; Averitt; Berman; Bonnen; Brimer; Brown, B.; Brown, F.; Callegari; Chisum; Christian; Clark; Corte; Crabb; Craddick; Crownover; Davis, Y.; Delisi; Denny; Driver; Edwards; Elkins; George; Geren; Goodman; Goolsby; Green; Grusendorf; Haggerty; Hamric; Hardcastle; Hartnett; Heflin; Hill; Hope; Howard; Hunter; Hupp; Isett; Janek; Jones, D.; Jones, E.; Keel; Keffer; King, P.; Kolkhorst; Krusee; Kuempel; Madden; Marchant; McCall; Merritt; Morrison; Mowery; Nixon; Pitts; Reyna, E.; Seaman; Shields; Smith; Smithee; Solomons; Swinford; Talton; Walker; West; Williams; Wilson; Wohlgemuth; Woolley. Present, not voting -- Mr. Speaker(C); Davis, J. Absent, Excused -- Hilbert; Hilderbran; Miller; Truitt. Absent Eiland. STATEMENTS OF VOTE I was shown voting present, not voting on Record No I intended to vote no. J. Davis When Record No. 135 was taken, I was temporarily out of the house chamber, working on a worker comp bill and meeting on Medicaid reform. I would have voted yes. Eiland Amendment No. 2 Representatives Gallego and Madden offered the following amendment to CSHB 2: Amend CSHB 2 as follows: (1) On page 4, line 3, strike "the purpose of soliciting contributions or for other". (2) On page 4, line 13, strike " (6)" and substitute " (a)(5)". (3) On page 7, lines 10 and 11, strike "the committee supports or assists". (4) On page 9, line 20, strike "the committee supports or assists". (5) On page 10, line 24, following the semi-colon, insert "and". (6) On page 10, strike lines 25-27, and on page 11, strike line 1. (7) On page 11, line 2, strike "(C)" and substitute "(B)". (8) On page 13, strike lines (9) On page 14, line 11, following the semi-colon, insert "and". (10) On page 14, strike lines (11) On page 14, line 15, strike "(C)" and substitute "(B)". (12) On page 16, strike lines 8-12 and substitute the following: (i) [(h)] In this section, "legislative caucus" has the meaning assigned by Section (13) On page 29, line 16, strike "a political advertisement" and substitute "political advertising". Amendment No. 2 was adopted without objection. Amendment No. 3 Representatives Gallego and Madden offered the following amendment to CSHB 2: