Rules

ADOPTED RULES

At its December 2, 2020, meeting, the Texas Ethics Commission voted to adopt the following amended rules: §§18.23 and 18.24. The text of the amended rules is located below.

§18.23. Administrative Waiver of Fine.
(effective 1-1-21)
Text of Adopted Rule

§18.24. General Guidelines for Other Administrative Waiver or Reduction of Fine.
(effective 1-1-21)
Text of Adopted Rule

§18.23. Administrative Waiver of Fine.
(effective 1-1-21)
Text of Adopted Rule

The adopted new language is indicated by underlined text.
The deleted text is indicated by [strikethrough] text.

Chapter 18. GENERAL RULES CONCERNING REPORTS

§18.23. Administrative Waiver of Fine.

(a) A filer may request the executive director to waive a late fine by submitting an affidavit to the executive director that states facts that establish that:

(1) - (5) – (No change.)

(6) the filer of the campaign finance report:

(A) had filed all previous reports by the applicable deadline;

(B) had no new contributions, expenditures, or loans to report during the filing period; and

(C) filed the report no later than 30 days after the filer first learned [was notified] that the report was[appeared to be] late;

(7) the filer reasonably relied on incorrect information given to the filer by the agency; or

(8) other administrative error by the agency.

(b) (No change.)

§18.24. General Guidelines for Other Administrative Waiver of Reduction of Fine.
(effective 1-1-21)
Text of Adopted Rule

The adopted new language is indicated by underlined text.
The deleted text is indicated by [strikethrough] text.

Chapter 18. GENERAL RULES CONCERNING REPORTS

§18.24. General Guidelines for Other Administrative Waiver or Reduction of Fine.

(a) No change.

(b) For purposes of determining a waiver or reduction of a late fine under §18.25 and §18.26 of this title (relating to Administrative Waiver or Reduction of Fine: Report Type I or Administrative Waiver or Reduction of Fine: Report Type II, respectively), a late report will be classified by report type, as follows:

(1) Any report that is not a critical report as defined under paragraph (2) of this subsection will be classified as Report Type I and considered under §18.25 of this title.

(2) A critical report will be classified as Report Type II and considered under §18.26 of this title. A "critical report" is:

(A) a campaign finance pre-election report due 30 days before an election;

(B) a campaign finance pre-election report due 8 days before an election;

(C) a runoff report;

(D) a daily special pre-election report required under §254.038 or §254.039, Election Code; or

(E) a semiannual report subject to the higher statutory fine under §254.042, Election Code.[; or]

[(F) a personal financial statement required under §572.027, Government Code, if the filer is a candidate with an opponent on the ballot in a primary election.]

(c) For purposes of determining a waiver or reduction of a late fine under §18.25 and §18.26 of this title, a filer requesting a waiver or reduction of a late fine will be categorized by filer type, as follows:

(1) Category A includes candidates for and officeholders of the following offices and specific-purpose committees supporting candidates for and officeholders of the following offices:

(A) statewide office;

(B) legislative office;

(C) district judge;

(D) state appellate court justice;

(E) State Board of Education member; and

(F) Secretary of State.

(2) Category B includes all filers not categorized in Category A, as defined by paragraph (1) of this subsection, or Category C, as defined by paragraph (3) of this subsection. Examples of Category B filers include the following filer types:

(A) lobbyists;

(B) salaried non-elected officials;

(C) candidates for and officeholders of district attorney;

(D) candidates for and officeholders of political party chair; [and]

(E) political committees with $3,000 or more in annual activity in the calendar year in which the late report was due.; and

(F) a legislative caucus.

(3) Category C includes:

(A) unsalaried appointed board members and officials; and

(B) political committees with less than $3,000 in annual activity in the calendar year in which the late report was due.

(d) For purposes of a reduction of a late fine under §18.25 and §18.26 of this title, [the following explanations will be accepted as showing] good cause includes, but is not limited to, the following:

(1) The report was filed no later than three days after the date it was due[more than one date late].

(2) The filer filed the report within five days after first learning the report was late from a late notice sent by the commission. [The report was filed within seven days of receipt of a late notice.]

(3) The report was not a critical report and was prepared and placed in the mail on time but not postmarked by the deadline.

(4) The filer had technical difficulties after regular business hours, but the report was filed no later than[on] the next business day after[that] the commission's technical support staff fixed the technical difficulty[was at work].

[(5) The filer's address changed and the filer did not receive notice of the filing deadline.]

(5)[(6)] There are no funds in the filer's campaign or officeholder account and the filer is unemployed.

(6)[(7)] A first-time filer that is required to file campaign finance reports with a county filing authority and personal financial statements with the commission, who mistakenly files the personal financial statement with the county on the filing deadline and then correctly files with the commission within seven days of realizing the mistake.

(e) For purposes of determining whether a filer is eligible for a waiver or reduction of a late fine under § 18.25 or § 18.26 of this title, a prior offense is any prior late report in which a late-filing penalty was assessed except:

(1) the late-filing penalty for that prior late report was waived under Sections 18.23(a)(1)-(3) of this title; or

(2) no late notices were sent for that prior late report and the filer did not file a request that the late-filing penalty be waived or reduced for the prior late report.

[(e) For purposes of a reduction of a late fine under § 18.25 and §18.26 of this title, the following explanations will not be accepted as showing good cause:

(1) The filer did not know the report was due.

(2) The filer forgot or the person assigned by the filer to prepare the report forgot.

(3) The campaign was very time-consuming.

(4) The filer's job was very time-consuming.

(5) The filer was too overwhelmed by responsibilities to file the report on time.

(6) The filer was a candidate who lost an election and did not know to terminate his or her campaign treasurer appointment and file a final report.

(7) The filer left his or her position and did not know he or she was still required to file a report.]

(f) A late fine that is reduced under §18.25 or §18.26 of this title will revert to the full amount originally assessed if the reduced fine is not paid within thirty (30) calendar days from the date of the letter informing the filer of the reduction.

(g) A filer may appeal a determination made under §18.25 or §18.26 of this title by submitting a request in writing to the commission.

(1) The request for appeal should state the filer's reasons for requesting an appeal, provide any additional information needed to support the request, and state whether the filer would like the opportunity to appear before the commission and offer testimony regarding the appeal.

(2) The Executive Director may review the appeal and reconsider the determination made under §18.25 or §18.26 of this title or set the appeal for a hearing before the commission.

(3)[(2)] After hearing a request for appeal, the commission may affirm the determination made under §18.25 or §18.26 of this title or make a new determination based on facts presented in the appeal.