bill barring candidates with unpaid ethics fines

The text as introduced · 1,546 words

By: Zwiener
H.B. No. 5182

A BILL TO BE ENTITLED

AN ACT

relating to civil penalties imposed by the Texas Ethics Commission,

including the collection of and eligibility for public elective

office of persons liable for those penalties.

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

SECTION 1. Section 141.001(a), Election Code, is amended to

read as follows:

(a) To be eligible to be a candidate for, or elected or

appointed to, a public elective office in this state, a person must:

(1) be a United States citizen;

(2) be 18 years of age or older on the first day of the

term to be filled at the election or on the date of appointment, as

applicable;

(3) have not been determined by a final judgment of a

court exercising probate jurisdiction to be:

(A) totally mentally incapacitated; or

(B) partially mentally incapacitated without the

right to vote;

(4) have not been finally convicted of a felony from

which the person has not been pardoned or otherwise released from

the resulting disabilities;

(5) have resided continuously in the state for 12

months and in the territory from which the office is elected for six

months immediately preceding the following date:

(A) for a candidate whose name is to appear on a

general primary election ballot, the date of the regular filing

deadline for a candidate's application for a place on the ballot;

(B) for an independent candidate, the date of the

regular filing deadline for a candidate's application for a place

on the ballot;

(C) for a write-in candidate, the date of the

election at which the candidate's name is written in;

(D) for a party nominee who is nominated by any

method other than by primary election, the date the nomination is

made; and

(E) for an appointee to an office, the date the

appointment is made;

(6) on the date described by Subdivision (5), be

registered to vote in the territory from which the office is

elected; [ and ]

(7) satisfy any other eligibility requirements

prescribed by law for the office ; and

(8) have paid in full any civil penalty or fine the

Texas Ethics Commission has imposed:

(A) prior to the first date of the regular filing

period for a candidate's application for a place on the ballot if

the office is to be filled by an election; or

(B) prior to the date of appointment if the

office is to be filled by an appointment.

SECTION 2. Section 253.035, Election Code, is amended by

adding Subsection (c-1) to read as follows:

(c-1) The prohibitions prescribed by Subsections (a) and

(b) include the personal use of a political contribution to pay a

civil penalty or fine the commission imposes.

SECTION 3. Section 254.042(b), Election Code, is amended to

read as follows:

(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 $1,001 [ $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 $1,001

[ $500 ] for the first day the report is late and $100 for each day

thereafter that the report is late. 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 4. Section 402.0212, Government Code, is amended by

adding Subsection (g) to read as follows:

(g) This section does not apply to the Texas Ethics

Commission.

SECTION 5. Subchapter C, Chapter 571, Government Code, is

amended by adding Sections 571.080 and 571.081 to read as follows:

Sec. 571.080. USE OF APPROPRIATED MONEY TO RETAIN OUTSIDE

COUNSEL. Notwithstanding any other law, the commission:

(1) may use appropriated money to contract with

outside legal counsel for the purpose of collecting a civil penalty

the commission imposes; and

(2) is not required to request or obtain approval from

the attorney general before contracting with outside legal counsel

under Subdivision (1).

Sec. 571.081. DEPOSIT OF CIVIL PENALTIES TO GENERAL REVENUE

FUND. (a) The comptroller shall deposit to the credit of the

general revenue fund the proceeds from a civil penalty collected

for a violation of a law the commission administers and enforces and

that is not paid voluntarily.

(b) Money the comptroller deposits to the credit of the

general revenue fund under this section may only be appropriated to

the commission for the purpose of collecting civil penalties for a

violation of a law the commission administers and enforces.

SECTION 6. Section 2107.003, Government Code, is amended by

amending Subsections (a), (d), (e), (g), (h), and (i) and adding

Subsections (k) and (l) to read as follows:

(a) Except as provided by Subsection (c) , [ or ] (c-1), (k),

or (l), a state agency shall refer an uncollected and delinquent

obligation that meets the referral guidelines established by the

attorney general to the attorney general for further collection

efforts. The state agency must refer the obligation on or before the

90th day after the date the obligation becomes past due or

delinquent.

(d) The agency contracting under Subsection (b) , [ or ] (c) ,

(k), or (l) is entitled to recover from the obligor, in addition to

the amount of the obligation, reasonable costs incurred in

undertaking the collection, including the costs of a contract under

this section, in an amount not to exceed 30 percent of the total

amount of the obligation.

(e) A person awarded a contract under Subsection (b), (c),

[ or ] (c-1) , (k), or (l) may not file suit or otherwise pursue

judicial action to collect the obligation owed in a court of this

state or another state on behalf of the contracting state agency.

(g) The contracting state agency may provide a person

contracting under Subsection (b), (c), [ or ] (c-1) , (k), or (l) any

information, including confidential information, that the agency

is not prohibited from sharing with another state or with the United

States and that is:

(1) in the custody of the agency owed the obligation;

and

(2) necessary to the collection of the obligation.

(h) A person acting under a contract formed under Subsection

(b), (c), [ or ] (c-1) , (k), or (l) and each employee or agent of that

person is subject to all statutory prohibitions against the

wrongful disclosure of confidential information that the

contracting state agency and its employees are subject to. A

contractor's employee is subject to the same penalties for wrongful

disclosure of confidential information as would apply to the

employees of the contracting agency.

(i) The contracting agency shall require a person who

contracts under Subsection (b), (c), [ or ] (c-1) , (k), or (l) to

obtain and maintain insurance adequate to provide reasonable

coverage for damages negligently, recklessly, or intentionally

caused by the contractor or the contractor's employee or agent in

the course of collecting an obligation under the contract.

(k) The Texas Ethics Commission may employ, retain, or

contract with a person other than a full-time state employee to

collect delinquent obligations owed to the commission in the

commission's official capacity. The commission may use money

appropriated to the commission for the purpose of enforcing laws

administered and enforced by the commission to employ, retain, or

contract with a person under this subsection. A person contracted

under this subsection is entitled to a collection fee, as provided

under the contract, in an amount not to exceed 30 percent of the

full amount of the obligation collected.

(l) The Texas Ethics Commission may contract with one or

more persons to collect delinquent obligations that have been

referred to the attorney general if the attorney general has

returned the matter to the commission after exhausting all

reasonable efforts or has not taken action to collect the

obligation before the sixth month after the date the attorney

general received the referral. A person contracted under this

subsection is entitled to a collection fee equal to 30 percent of

the full amount of the obligation collected.

SECTION 7. 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 8. This Act takes effect September 1, 2025.