Rules
PROPOSED RULES
At its June 11, 2015, meeting, the Texas Ethics Commission voted to propose an amendment to the following rule. The Ethics Commission invites public comment on the proposals. A written statement should be mailed or delivered to Natalia Luna Ashley, Texas Ethics Commission, P.O. Box 12070, Austin, Texas 78711-2070, or by facsimile (FAX) to (512) 463-5777. A person who wants to offer spoken comments to the commission concerning the proposed rule may do so during the public comment period at any commission meeting when the commission considers the proposed rule. Information concerning the time and location of commission meetings is available at http://www.ethics.state.tx./meetings/ or by telephoning (512) 463-5800.
§ 20.1. Meaning of “In Connection with a Campaign”
Text of Proposed Rule
§ 20.1. Meaning of “Principal Purpose”
Text of Proposed Rule
The proposed new language is indicated by underlined text.
The deleted language is indicated by [strikethrough] text.
Chapter 20. REPORTING POLITICAL CONTRIBUTIONS AND EXPENDITURES
Subchapter A. GENERAL RULES
20.1. Definitions
(20) Principal purpose--A group has as a principal purpose of accepting political contributions or making political expenditures, including direct campaign expenditures, when that activity is an important or a main function of the group.
(A) A group may have more than one principal purpose.
(B) A group has as a principal purpose accepting political contributions if the proportion of the political contributions to the total contributions to the group is more than 25 percent within a calendar year. Whether the contributor intends to make a political contribution is determined by the reasonable expectation of the contributor as to how the contribution will be used and includes an analysis of:
(i) the content of the group’s public statements regarding its fundraising efforts, goals, or support of or opposition to candidates, officeholders, or measures;
(ii) the group’s government filings and organizational documents, including mission statements; and
(iii) the group’s other activities that are unrelated to accepting political contributions or making political expenditures.
(C) A group has as a principal purpose making political expenditures, including direct expenditures, if the group expends more than 25 percent of its annual expenses [and other resources] to make political expenditures within a calendar year. The following shall be included for purposes of calculating the threshold:
(i) the amount of money paid in compensation and benefits to [value of the time spent by] the group’s employees for work [or volunteers on activities] related to making political expenditures [compared to other activities]; [and]
(ii) the amount of money [and in-kind donations] spent on political expenditures; and [compared to other expenditures.]
(iii) the amount of money attributable to [For the proportion in paragraph (ii),] the proportional share of administrative expenses related [attributable] to political expenditures [should be included]. The proportional share of administrative expenses is calculated by comparing the political expenditures in clause (ii) with nonpolitical expenditures. (For example, if the group sends three mailings a year and each costs $10,000, if the first two are issue based newsletters and the third is a direct advocacy sample ballot, and there were no other outside expenditures, then the proportion of the administrative expenses attributable to political expenditures would be 33%.) Administrative expenses include [but are not limited to]:
I. fees for services to non-employees [employee compensation and benefits];
II. advertising and promotion [contractor payments];
III.office expenses; [rent;]
IV. information technology [office expenses]; and
V. occupancy, travel expenses, interest, and insurance [computer equipment and services].
(D) The group may maintain specific evidence of administrative expenses related only to political expenditures or only to nonpolitical expenditures. Specifically identified administrative expenses shall not be included in the proportion established by clause (C)(iii) but allocated by the actual amount of the expense.
(E) In this section, the term “political expenditure” includes direct campaign expenditures.
§ 20.1. Meaning of “In Connection with a Campaign”
Text of Proposed Rule
The proposed new language is indicated by underlined text.
Chapter 20. REPORTING POLITICAL CONTRIBUTIONS AND EXPENDITURES
Subchapter A. GENERAL RULES
20.1. Definitions
(21) In connection with a campaign:
(A) An expenditure is made in connection with a campaign for an elective office if it is:
(i) made for a communication that expressly advocates the election or defeat of a clearly identified candidate by:
(I) using such words as “vote for,” “elect,” “support,” “vote against,” “defeat,” “reject,” “cast your ballot for,” or “Smith for city council;” or
(II) using such phrases as “elect the incumbent” or “reject the challenger,” or such phrases as “vote pro-life” or “vote pro-choice” accompanied by a listing of candidates described as “pro-life” or “pro-choice;”
(ii) made for a communication broadcast by radio, television, cable, or satellite or distributed by print or electronic media, including any print publication, mailing, Internet website, electronic mail, or automated phone bank, that:
(I) refers to a clearly identified candidate;
(II) is distributed within 30 days before a contested election for the office sought by the candidate;
(III) targets a mass audience or group in the geographical area the candidate seeks to represent; and
(IV) includes images, sounds, or words that, without consideration of the intent of the person making the communication, are susceptible of no other reasonable interpretation than to urge the election or defeat of the candidate;
(iii) made by a candidate or political committee to support or oppose a candidate; or
(iv) a campaign contribution to:
(I) a candidate; or
(II) a group that, at the time of the contribution, already qualifies as a political committee.
(B) An expenditure is made in connection with a campaign on a measure if it is:
(i) made for a communication that expressly advocates the passage or defeat of a clearly identified measure by using such words as “vote for,” “support,” “vote against,” “defeat,” “reject,” or “cast your ballot for;”
(ii) made for a communication broadcast by radio, television, cable, or satellite or distributed by print or electronic media, including any print publication, mailing, Internet website, electronic mail, or automated phone bank, that:
(I) refers to a clearly identified measure;
(II) is distributed within 30 days before the election in which the measure is to appear on the ballot;
(III) targets a mass audience or group in the geographical area in which the measure is to appear on the ballot; and
(IV) includes images, sounds, or words that, without consideration of the intent of the person making the communication, are susceptible of no other reasonable interpretation than to urge the passage or defeat of the measure;
(iii) made by a political committee to support or oppose a measure; or
(iv) a campaign contribution to a group that, at the time of the contribution, already qualifies as a political committee.
(C) Any cost incurred for covering or carrying a news story, commentary, or editorial by a broadcasting station or cable television operator, Internet website, or newspaper, magazine, or other periodical publication, including an Internet or other electronic publication, is not a campaign expenditure if the cost for the news story, commentary, or editorial is not paid for by, and the medium is not owned or controlled by, a candidate or political committee.
(D) For purposes of this section:
(i) a candidate is clearly identified by a communication that includes the candidate’s name, office sought, office held, likeness, photograph, or other apparent and unambiguous reference; and
(ii) a measure is clearly identified by a communication that includes the measure’s name or ballot designation (such as “Proposition 1”), purposes, election date, or other apparent and unambiguous reference.