The following proposed rule changes by the Texas Ethics Commission have been highlighted from the most recent version of the Texas Register.
Texas Ethics Commission Proposals
The Texas Ethics Commission (the Commission) proposes amendments to Texas Ethics Commission rules in Chapter 18. Specifically, the Commission proposes amendments to §18.15, regarding Additional Fine. The amendments to §18.15 clear the way for the Commission to once again exercise its express statutory authority to issue additional fines against delinquent filers who refuse to pay their fines. For a filer to be subject to the additional penalty, two conditions must be met: (1) the filer must fail to file a required report within 30 days of the deadline, and (2) the filer must fail to pay the statutory penalty within 10 days of receiving a warning letter from the Commission. Existing §18.15 has two problems. The most critical problem is that it draws the boundaries of eligibility too broadly, stating that an additional fine may be imposed if either of two conditions are met and it fails to set a specific amount. The statutes require “an amount determined by commission rule.” Commission staff has proposed that the amount be set at $2,500, which is the Office of the Attorney General’s (“OAG’s”) threshold for filing a lawsuit. The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency’s legal authority to adopt. Earliest possible date of adoption is March 7, 2021, filed with the Office of the Secretary of State on January 22, 2021.
Changes in statute are in quotes:
- Commission may vote to impose a fine “of $2,500” against a filer whose report is more than 30 days late “and [or]” who has not paid “the penalty related to that report [an assessed fine]” within 10 days after receiving the commission notice of lateness “[, subject to the statutory limit].”
The Texas Ethics Commission (the Commission) proposes amendments to Texas Ethics Commission rules in Chapter 20. Specifically, the Commission proposes amendments to §20.434, regarding Alternate Reporting Requirements for General-Purpose Committees. The Commission needs to correct some outdated cross-references in 20.434. Specifically, Rule 20.434 references Rule 20.433(a)(11) and 20.433(a)(20)(B), but those references have been out of date since 2012, when Rule 20.433 was amended. To reflect those 2012 changes, the cross-references in Rule 20.434 should be amended to 20.433(11) and 20.433(25)(B). J.R. Johnson, General Counsel, has determined that for the first five-year period the proposed amended rule is in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the proposed rule. The General Counsel has also determined that for each year of the first five years the proposed amended rule is in effect, the public benefit will be correction of obsolete references in the Commission’s rules, not in effect on small businesses and rural communities. Also while proposed rule is in effect, it will not: create or eliminate a government program or require many increases/decreases of employee positions, legislative appropriations, fees, and regulations within them. The proposed amended rule affects Title 15 of the Election Code. The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency’s legal authority to adopt. Earliest possible date of adoption is March 7, 2021, filed with the Office of the Secretary of State on January 22, 2021.
Changes in the statute are in quotes:
- 20.434. Alternate Reporting Requirements for General-Purpose Committees (c) – Campaign treasurer may choose a threshold reporting amount for political contributions of $190 instead of the threshold reporting amount of $90 set out in “§20.433(11) and (25)(B) [§20.433(a)(11) and (a)(20)(B)]” of this title.
- 20.434. Alternate Reporting Requirements for General-Purpose Committees (d) – campaign treasurer may choose a threshold reporting amount for political contributions of $40 instead of the threshold reporting amount of $20 set out in “§20.433(11) and (25)(B) [§20.433(a)(11) and (a)(20)(B)]” of this title.