Rules
ADOPTED RULES
At its June 2021, meeting, the Texas Ethics Commission voted to adopt the following amended rules: §§18.23, 18.24, 18.25, 18.26 and 20.1. The text of the adopted amended rules is located below.
§18.23. Administrative Waiver of Fine
(Effective July 6,2021)
Text of Proposed Rule
§18.24. General Guidelines for Other Administrative Waiver or Reduction of Fine
(Effective July 6,2021)
Text of Proposed Rule
§18.25. Administrative Waiver or Reduction of Fine: Report Type I
(Effective July 6,2021)
Text of Proposed Rule
§18.26. Administrative Waiver or Reduction of Fine: Report Type II
(Effective July 6,2021)
Text of Proposed Rule
§20.1. Definitions
(Effective July 6,2021)
Text of Proposed Rule
§18.23. Administrative Waiver of Fine
Text of Proposed Rule
The proposed 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 Statutory Civil Penalties
(a) A filer may request the executive director to waive a civil penalty determined by §§305.033(b) or 572.033(b) of the Government Code or §254.042(b) of the Election Code [late fine] by submitting an affidavit to the executive director.
(b) If, in the executive director’s discretion, the affidavit establishes any of the following grounds for a waiver, the executive director shall waive the civil penalty, and the penalty waived is not a prior offense for purposes of §18.25 of this title (relating to Administrative Waiver or Reduction of Certain Statutory Civil Penalties) or §18.26 of this title (relating to Administrative Waiver or Reduction of Other Statutory Civil Penalties in Excess of $500): [that states facts that establish that:]
(1) the report was filed late because of an unforeseen serious medical emergency or condition or a death that involved the filer, a family member or relative of the filer, a member of the filer's household, or a person whose usual job duties include preparation of the report;
(2) the report was filed late as a result of verifiable severe weather at the filer's location that prevented the filer from filing the report by the applicable deadline and the report was filed within a reasonable time after the deadline;
(3) the report was filed late because the filer was a first responder, as defined in §6.1 of this title (relating to Definitions), deployed to an emergency situation at the time of the filing deadline or a member of the military deployed on active duty at the time of the filing deadline and the report was filed within a reasonable time after the deadline;
(4) the filer filed a timely report but accidentally selected the incorrect filing year or filing period in the agency’s electronic filing system, and:
(A) the filer filed a corrected report amending the filing year or filing period no later than 30 days after the individual was notified that the report appeared to be late; and
(B) the corrected report is substantively identical to the originally-filed report;
(5) the filer reasonably relied on incorrect information given to the filer by the agency; or
(6) the report was filed late because of other administrative error by the agency.
(c) If, in the executive director’s discretion, the affidavit establishes any of the following grounds for a waiver, the executive director shall waive the civil penalty, but the penalty waived is a prior offense for purposes of §18.25 or §18.26:
(1) [(4)] the filer of the personal financial disclosure report is not an elected official, a candidate for election, or a salaried public servant, and the late report:
(A) was the first personal financial disclosure report filed late by the filer under Government Code chapter 572; and
(B) was filed no later than 30 days after the individual was notified that the report appeared to be late;
(2) [(5)] the filer of the personal financial disclosure report was an unopposed candidate in a primary election, and the late report:
(A) was the first personal financial disclosure report filed late by the filer under Government Code chapter 572; and
(B) was filed before the primary election.
(3) [(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 that the report was 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) If, in the executive director's discretion, the affidavit establishes grounds for a waiver under this section, the executive director shall waive the fine.]
§18.24. General Guidelines for Other Administrative Waiver or Reduction of Fine
Text of Proposed Rule
The proposed 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 Statutory Civil Penalties [Fine]
(a) A filer who does not qualify for a waiver under §18.23 of this title (relating to Administrative Waiver of Statutory Civil Penalties [Fine]) may request the executive director to waive a civil penalty determined by §§305.033(b) and 572.033(b) of the Government Code or §254.042(b) of the Election Code [late fine] by submitting an affidavit to the executive director. The executive director may waive or reduce a civil penalty [the late fine] if the filer meets the criteria and the late report meets the qualifications [under the guidelines] set out in §18.25 of this title (relating to Other Administrative Waiver or Reduction of Statutory Civil Penalties [Fine: Report Type I]) and §18.26 of this title (relating to Administrative Waiver or Reduction of Other Statutory Civil Penalties in Excess of $500 [Fine: Report Type II]).
[(b) For purposes of determining a waiver or reduction of a late fine under §18.25 and §18.26 of this title, 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.]
[ ](b) [(c)] For purposes of determining a waiver or reduction of a civil penalty [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;
(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.
(c) [(d)] For purposes of a reduction of a civil penalty [late fine] under §[ ]18.25 and §18.26 of this title, 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.
(2) The filer filed the report within five days after first learning the report was late from a late notice sent by the commission.
(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 the next business day after the commission's technical support staff fixed the technical difficulty.
(5) There are no funds in the filer's campaign or officeholder account and the filer is unemployed.
(6) 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.
(d) [late fine] under §[ ]18.25 or §[ ]18.26 of this title, a prior offense is any prior late report in which a civil [late-filing] penalty was assessed except:
(1) the civil [late-filing] penalty for that prior late report was waived under §18.23(b) [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 civil [late-filing] penalty be waived or reduced for the prior late report.
(e) [(f)] A civil penalty [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 civil penalty [fine] is not paid within thirty (30) calendar days from the date of the letter informing the filer of the reduction.
(f) [(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) 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.
§18.25. Administrative Waiver or Reduction of Fine: Report Type I
Text of Proposed Rule
The proposed new language is indicated by underlined text.
The deleted text is indicated by [strikethrough] text.
Chapter 18. GENERAL RULES CONCERNING REPORTS
§18.25. Administrative Waiver or Reduction of Certain Statutory Civil Penalties [Fine: Report Type I].
(a) The executive director shall apply [the guidelines set out in] this section to: [a late report classified as Report Type I under §18.24(b) of this title (relating to General Guidelines for Other Administrative Waiver or Reduction of Fine).]
(1) a late report subject to a statutory civil penalty of not more than $500; or
(2) a late report that:
(A) is subject to a statutory civil penalty in excess of $500; and
(B) discloses less than $3,000 in total political contributions and less than $3,000 in total political expenditures for the reporting period.
(b) In order to qualify for a waiver or reduction of a civil penalty [late fine] under this section, a filer must meet all of the following criteria:
(1) The filer has no more than two prior late offenses in the five (5) years preceding the filing deadline of the late report at issue;
(2) The filer filed the report within thirty (30) days of learning the report was late;
(3) The civil penalty [filer has not had the late fine] for the report at issue has not been increased by the commission at a public meeting pursuant to §254.042(b), Election Code, or §305.033(c) or §572.033(b), Government Code; and
(4) The filer does not have an outstanding civil penalty for a prior late report [late fine].
(c) The executive director shall use the following [levels] chart to determine the level of waiver or reduction of a civil penalty [late fine] under this section:
Report Type I Levels Chart
(For All Reports Other Than Critical Reports)
| LEVEL | # OF PRIORS IN LAST 5 YEARS | CATEGORY A | CATEGORY B | CATEGORY C | EXPLANATORY NOTE |
|---|---|---|---|---|---|
| 1 | 0 | Waiver | Waiver | Waiver | |
| 1.5 | 1 | $150 | $100 | $50 | Level 2 violation with good cause shown* |
| 2 | 1 | $300 | $200 | $100 | |
| 2.5 | 2 | $400 | $300 | $150 | Level 3 violation with good cause shown* |
| 3 | 2 | $500 | $500 | $250 |
*The categorization shifts one-half level (from Level 2 to 1.5; from Level 3 to 2.5) if the filer's explanation qualifies as good cause under section 18.24(c) [(d)]) of this title.
§18.26. Administrative Waiver or Reduction of Fine: Report Type II
Text of Proposed Rule
The proposed new language is indicated by underlined text.
The deleted text is indicated by [strikethrough] text.
Chapter 18. GENERAL RULES CONCERNING REPORTS
§18.26. Administrative Waiver or Reduction of Other Statutory Civil Penalties in Excess of $500 [Fine: Report Type II].
(a) The executive director shall apply [the guidelines set out in] this section to a late report that discloses more than $3,000 in total political contributions or more than $3,000 in total political expenditures during the reporting period and that is subject to a civil penalty in excess of $500 [classified as Report Type II under §18.24(b) of this title (relating to General Guidelines for Other Administrative Waiver of Reduction of Fine)].
(b) In order to qualify for a waiver or reduction of a civil penalty [late fine] under this section, a filer must meet all of the following criteria:
(1) The filer has no more than two prior late offenses in the five (5) years preceding the filing deadline of the late report at issue;
(2) The civil penalty [filer has not had the late fine] for the report at issue has not been increased by the commission at a public meeting pursuant to §254.042(b), Election Code, or §305.033(c) or §572.033(b), Government Code; and
(3) The filer does not have an outstanding civil penalty for a prior late report [late fine].
[(c) The executive director shall use the following levels chart to determine the level of waiver or reduction of a late fine under this section if:]
[(1) The late report at issue discloses less than $3,000 in total contributions and less than $3,000 in expenditures for the reporting period;]
[(2) The late report at issue was filed no more than thirty (30) days after the filer learned that the report was late; and]
[(3) The filer has no prior late offenses or only one prior late offense in the five (5) years preceding the filing deadline of the late report at issue.]
Report Type II Levels Chart
(For Critical Reports under section 18.26(c))
[*The categorization shifts one-half level (from Level 2 to 1.5; from Level 3 to 2.5) if the filer's explanation qualifies as good cause under section 18.24(d) of this title.]
(c) [(d)]) The executive director shall use the following chart [formulas chart] to determine the level of waiver or reduction of a civil penalty [late fine] under this section [ if]:
[(1) The late report at issue discloses either $3,000 or more in total contributions or $3,000 or more in expenditures for the reporting period;]
[(2) The late report at issue was filed over thirty (30) days after the filer learned that the report was late; or]
[(3) The filer has two (2) prior late offenses in the five (5) years preceding the filing deadline of the late report at issue.]
Report Type II Formulas Chart ]
(For Critical Reports under section 18.26(d))
| NO GOOD CAUSE | EXPLANATORY NOTES |
|---|---|
| Starting Penalty[ |
1st day late |
| + $100 a day, up to $1,000 | 2nd – 11th days late |
| + $500 for every full 30 days thereafter, up to $10,000 | 12th day late – Filed Date: Take # of days divided by 30; drop remainder days that do not make a full 30-day segment |
| GOOD CAUSE SHOWN | EXPLANATORY NOTES |
| Starting Penalty[ Starting Penalty[ |
1st day late |
| + $100 a day, up to $1,000 | 2nd – 11th days late |
| + $500 every full 30 days thereafter, up to $10,000 | 12th day late – Filed Date: Take # of days divided by 30; drop remainder days that do not make a full 30-day segment |
Category B
| NO GOOD CAUSE | EXPLANATORY NOTES |
|---|---|
| Starting Penalty[ |
1st day late |
| + $100 a day, up to $500 | 2nd – 6th days late |
| + $250 every full 30 days thereafter, up to $5,000 | 7th day late – Filed Date: Take # of days divided by 30; drop remainder days that do not make a full 30-day segment |
| GOOD CAUSE SHOWN | EXPLANATORY NOTES |
| Starting Penalty [ Starting Penalty [ |
1st day late |
| + $100 a day, up to $500 | 2nd – 6th days late |
| + $250 every full 30 days thereafter, up to $5,000 | 7th day late – Filed Date: Take # of days divided by 30; drop remainder days that do not make a full 30-day segment |
Category C
| NO GOOD CAUSE | EXPLANATORY NOTES |
|---|---|
| Starting Penalty[ |
1st day late |
| + $100 a day, up to $500 | 2nd – 6th days late |
| + $250 every full 30 days thereafter, up to $5,000 | 7th day late – Filed Date: Take # of days divided by 30; drop remainder days that do not make a full 30-day segment |
| GOOD CAUSE SHOWN | EXPLANATORY NOTES |
| Starting Penalty [ Starting Penalty [ |
1st day late |
| + $100 a day, up to $500 | 2nd – 6th days late |
| + $250 every full 30 days thereafter, up to $5,000 | 7th day late – Filed Date: Take # of days divided by 30; drop remainder days that do not make a full 30-day segment |
[(e) Comments, Report Type II Formulas Chart Examples:]
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§20.1. Definitions
Text of Proposed Rule
The proposed new language is indicated by underlined text.
The deleted text is indicated by [strikethrough] text.
Chapter 20. REPORTING POLITICAL CONTRIBUTIONS AND EXPENDITURE
Subchapter A. GENERAL RULES
§20.1. Definitions
(1) – (10) – (No change.)
(11) Political advertising:
(A) A communication that supports or opposes a political party, a public officer, a measure, or a candidate for nomination or election to a public office or office of a political party, and:
(i) is published in a newspaper, magazine, or other periodical in return for consideration;
(ii) is broadcast by radio or television in return for consideration;
(iii) appears in a pamphlet, circular, flier, billboard, or other sign, bumper sticker, or similar form of written communication; or
(iv) appears on an Internet website.
(B) The term does not include an individual communication made by e-mail or text message but does include mass e-mails and text messages involving an expenditure of funds beyond the basic cost of hardware messaging software and bandwidth.
(12) – (23) – (No change.)