Rules
Adopted
ADOPTED RULES
At its October 3, 2018, meeting, the Texas Ethics Commission voted to adopt the following new or amended rules: §§16.1, 16.2, 16.3, 16.4, 16.5, 16.6, 16.7, 16.8, 16.9, 16.10, 16.11 and 18.7. The newly adopted rules §§16.1 – 16.11 create new Chapter 16, entitled Facial Compliance Reviews and Audits. The text of the new and amended rules is located below.
§16.1. Definitions.
(effective November 11, 2018)
Text of Adopted Rule
§16.2. Random Selection.
(effective November 11, 2018)
Text of Adopted Rule
§16.3. Corrected or Amended Report Filed During a Facial Compliance Review;
Late Fines.
(effective November 11, 2018)
Text of Adopted Rule
§16.4. Additional Documents and Information Submitted in Response to a Facial Compliance Review;
Timeliness.
(effective November 11, 2018)
Text of Repealed Rule
§16.5. Commission Initiated Preliminary Review or Audit Resulting from a Facial Compliance Review.
(effective November 11, 2018)
Text of Adopted Rule
§16.6. Notice of Audit of Report.
(effective November 11, 2018)
Text of Adopted Rule
§16.7. Supporting Documentation in Response to Audit; Timeliness.
(effective November 11, 2018)
Text of Adopted Rule
§16.8. Complete Audit Report.
(effective November 11, 2018)
Text of Adopted Rule
§16.9. Representation by Attorney.
(effective November 11, 2018)
Text of Adopted Rule
§16.10. Extension of Deadlines.
(effective November 11, 2018)
Text of Adopted Rule
§16.11. Waiver of Delivery by Certified Mail.
(effective November 11, 2018)
Text of Adopted Rule
§18.7. Timely Reports and Complete Reports.
(effective November 11, 2018)
Text of Adopted Rule
§16.1. Definitions.
Text of Adopted Rule
The new language is indicated by underlined text.
Chapter 16. FACIAL COMPLIANCE REVIEWS AND AUDITS
§16.1. Definitions.
The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.
(1) Deficiency—An error, omission, inaccuracy, or violation of a law or rule administered and enforced by the commission that is apparent on the face of a statement or report filed with the commission.
(2) Compliance review report—A report sent to a filer detailing deficiencies in a report that is the subject of a facial compliance review.
(3) Facial compliance review—A review conducted under section 571.069 of the Government Code of the information disclosed on a report, randomly selected in accordance with §16.15, filed with the commission for facial completeness, accuracy, reliability, and compliance with the law.
(4) Report—A personal financial statement, lobby registration, lobby activities report, or campaign finance report filed with the commission.
§16.2. Random Selection.
Text of Adopted Rule
The new language is indicated by underlined text.
Chapter 16. FACIAL COMPLIANCE REVIEWS AND AUDITS.
§16.2. Random Selection.
The report subject to a facial compliance review must be randomly selected from a list of all reports filed by a particular filer type for a specific filing deadline.
§16.3. Corrected or Amended Report Filed During a Facial Compliance Review;
Late Fines.
Text of Adopted Rule
The new language is indicated by underlined text.
Chapter 16. FACIAL COMPLIANCE REVIEWS AND AUDITS
§16.3. Corrected or Amended Report Filed During a Facial Compliance Review; Late Fines.
(a) A correction filed for the report that is subject to the facial compliance review will not be subject to a late fine if:
(1) The correction is filed not later than the 30th day after the date the filer receives the compliance review report;
(2) The corrected information complies with the law; and
(3) The original report was filed in good faith and without an intent to mislead or misrepresent the information contained in the report.
(b) A late fine will not be assessed for corrections filed to correct reporting errors made in any report filed prior to the report that is subject to the facial compliance review if:
(1) The filer learned of the errors through the facial compliance review;
(2) The correction is filed not later than the 30th day after the date the filer receives the compliance review report;
(3) The corrections comply with the law; and
(4) The original report was filed in good faith and without an intent to mislead or misrepresent the information contained in the report.
(c) A correction filed in accordance with this section will not be considered a prior late offense for purposes of determining the waiver or reduction of a fine under chapter 18 of this title.
§16.4. Additional Documents and Information Submitted in Response to a Facial Compliance Review; Timeliness.
Text of Repealed Rule
The new language is indicated by underlined text.
Chapter 16. FACIAL COMPLIANCE REVIEWS AND AUDITS.
§16.4. Additional Documents and Information Submitted in Response to a Facial Compliance Review; Timeliness.
(a) The commission may request from a filer documentation and other information used by the filer to compile a report that is subject to a facial compliance review.
(b) Documentation and other information requested by the commission is timely submitted if received by the commission not later than the 30th day after the date the filer receives the request for additional documentation.
§16.5. Commission Initiated Preliminary Review or Audit Resulting from a Facial Compliance Review.
Text of Adopted Rule
The adopted new language is indicated by underlined text.
Chapter 16. FACIAL COMPLIANCE REVIEWS AND AUDITS.
§16.5. Commission Initiated Preliminary Review or Audit Resulting from a Facial Compliance Review.
(a) The commission may initiate a preliminary review as authorized by §571.124 of the Government Code or perform a complete audit of a report that is subject to a facial compliance review under §571.069 of the Government Code if:
(1) a correction is not resubmitted to the commission in accordance with §16.2;
(2) documentation or other information requested by the commission during a facial compliance review is not submitted to the commission in accordance with §16.3; or
(3) the commission has determined by a vote of at least six commission members that the correction filed in response to a compliance review report, does not comply with the law.
§16.6. Notice of Audit of Report.
Text of Adopted Rule
The adopted new language is indicated by underlined text.
Chapter 16. FACIAL COMPLIANCE REVIEWS AND AUDITS.
§16.6. Notice of Audit of Report.
The proceedings of a formal hearing shall be conducted in accordance with this subchapter, Chapter 571 of the Government Code, and Subchapters C-H, Chapter 2001, of the Government Code (the Administrative Procedure Act) only to the extent they are consistent with Chapter 571. In the event of a conflict, Chapter 571 controls.
§16.7. Supporting Documentation in Response to Audit; Timeliness.
Text of Adopted Rule
The adopted new language is indicated by underlined text.
Chapter 16. FACIAL COMPLIANCE REVIEWS AND AUDITS.
§16.7. Supporting Documentation in Response to Audit; Timeliness.
(a) A filer must submit to the commission, upon request and where applicable, supporting documentation in the possession, custody, or control of the filer or filer’s agents that contains information necessary for filing the report that is subject to the audit, such as:
(1) Bank statements;
(2) Cancelled checks;
(3) Receipts;
(4) Credit card statements;
(5) Invoices;
(6) Loan documents;
(7) Books or ledgers;
(8) Employee timesheets and payroll records;
(9) Certificates of formation or other business documents; and
(10) Real property records.
(b) A filer must submit to the commission the supporting documentation in response to an audit not later than the 30th business day from the date the filer receives notice of the audit.
§16.8. Complete Audit Report.
Text of Adopted Rule
The adopted new language is indicated by underlined text.
Chapter 16. FACIAL COMPLIANCE REVIEWS AND AUDITS.
§16.8. Complete Audit Report.
(a) Commission staff must complete a draft audit report not later than the 30th day after the commission receives from the filer the documentation requested under §16.6.
(b) The filer must have an opportunity to confer and object in writing to any findings in the draft audit report before it is submitted to the commission for approval.
(c) Commission staff must consider the filer’s objections before submitting the draft audit report to the commission for approval.
(d) Upon approval of an audit, the commission shall send to the filer a final audit report that includes:
(1) a notification that the commission has determined the report that was subject to the audit complies with the law; or
(2) required corrective actions that the filer must take to cure any deficiency found in the report that is subject to the audit.
(e) A filer must correct or amend a report to correct all deficiencies identified in a complete audit report not later than the 30th day from the date the filer receives the complete audit report.
§16.9. Representation by Attorney.
Text of Adopted Rule
The adopted new language is indicated by underlined text.
Chapter 16. FACIAL COMPLIANCE REVIEWS AND AUDITS.
§16.9. Representation by Attorney.
(a) A filer has the right to be represented by an attorney retained by the filer during a facial compliance review or an audit initiated by the commission as a result of a facial compliance review.
(b) A letter of representation must be submitted to the commission if the filer is represented by an attorney.
§16.10. Extension of Deadlines.
Text of Adopted Rule
The adopted new language is indicated by underlined text.
Chapter 16. FACIAL COMPLIANCE REVIEWS AND AUDITS
§16.10. Extension of Deadlines.
The executive director may extend all deadlines related to this chapter except as provided by §571.069(a) of the Government Code (relating to when a corrected or amended report is considered filed as of the date the report was originally filed).
§16.11. Waiver of Delivery by Certified Mail.
Text of Adopted Rule
The adopted new language is indicated by underlined text.
Chapter 16. FACIAL COMPLIANCE REVIEWS AND AUDITS.
§16.11. Waiver of Delivery by Certified Mail.
A filer may waive the right under §571.032 of the Government Code to receive written notices related to a facial compliance review or audit by registered or certified mail, restricted delivery, return receipt requested, and may agree to receive written notices by first class mail, electronic mail, or other means.
§18.7. Timely Reports and Complete Reports.
Text of Adopted Rule
The adopted new language is indicated by underlined text.
Chapter 18. GENERAL RULES CONCERNING REPORTS.
§18.7. Timely Reports and Complete Reports.
(a) A report is timely if it is complete and is filed by the applicable deadline using the reporting method required by law.
(b) The deadline for any report filed electronically with the commission is midnight Central Time Zone on the last day for filing the report under the law requiring the filing of the report.
(c) A report is late if it is:
(1) incomplete;
(2) not filed by the applicable deadline; or
(3) not filed by computer diskette, modem, or other means of electronic transfer and the filer is required by law to file using one of these methods.
(d) A report filed electronically is not late if:
(1) the commission’s office is closed on the deadline and the report is filed by midnight, Central Time Zone, on the next regular business day, excluding a legal holiday, when the commission’s office is open; or
(2) the commission cannot accept reports on the deadline because the agency filing system is not accessible or the agency network is inoperable, and the report is filed by midnight, Central Time Zone, on the next regular business day, excluding a legal holiday, that the commission is able to accept reports.