Rules
Adopted
ADOPTED RULES
At its June 2023, meeting, the Texas Ethics Commission voted to adopt the following repeals and new and amended rules: §§ 18.21, 18.23, 18.24, 18.25, and 18.26. The text of the adopted repeals and new and amended rules are located below.
§18.21. Jurisdiction to Consider Waiver Request.
(Effective January 1, 2024)
Text of Adopted Rule
§18.23. Administrative Waiver of Statutory Civil Penalties.
(Effective January 1, 2024)
Text of Adopted Rule
§18.24. General Guidelines for Other Administrative Waiver or Reduction of Statutory Civil Penalties.
(Effective January 1, 2024)
Text of Adopted Rule
§18.25. Administrative Waiver or Reduction of Certain Statutory Civil Penalties.
(Effective January 1, 2024)
Text of Adopted Rule
§18.26. Administrative Waiver or Reduction of Other Statutory Civil Penalties in Excess of $500.
(Effective January 1, 2024)
Text of Adopted Rule
§18.21. Jurisdiction to Consider Waiver Request.
Text of Adopted New Rule
The deleted language is indicated by [strikethrough] text.
Chapter 18. GENERAL RULES CONCERNING REPORTS.
§18.21. Jurisdiction to Consider Waiver Request.
[(a) A filer must file a complete report before the executive director or commission will consider a request to waive or reduce a fine assessed for failure to file a timely report.
(b) A request to waive or reduce a fine assessed for failure to file a timely report or for filing a correction to a report will not be considered after an action to collect the fine is filed in court.]
§18.21. Jurisdiction to Consider Waiver Request.
Text of Adopted Repeal
The adopted new language is indicated by underlined text
Chapter 18. GENERAL RULES CONCERNING REPORTS.
§18.21. Jurisdiction to Consider Waiver Request.
(a) A filer may ask the commission to waive or reduce a civil penalty determined by §§ 305.033(b) or 572.033(b) of the Government Code, or §254.042(b) of the Election Code by submitting a written request to the Commission.
(b) The commission will not consider a request under subsection (a) unless the filer, not later than 60 days after the report or statement was due:
1) submits the request in the manner prescribed by subsection (a);
2) files all reports owed to the commission; and
3) pays all outstanding civil penalties owed to the commission that are not subject to a pending request for waiver or appeal.
(c) Upon a showing of good cause, the executive director may extend the deadline in subsection (b).
§18.23. Administrative Waiver of Statutory Civil Penalties.
Text of Adopted Rule
The deleted language 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 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):
(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) 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) 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) 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;]
§18.24. General Guidelines for Other Administrative Waiver or Reduction of Statutory Civil Penalties.
Text of Adopted Repeal
The deleted language 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.
[(a) A filer who does not qualify for a waiver under §18.23 of this title (relating to Administrative Waiver of Statutory Civil Penalties) 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 by submitting an affidavit to the executive director. The executive director may waive or reduce a civil penalty if the filer meets the criteria and the late report meets the qualifications set out in §18.25 of this title (relating to Administrative Waiver or Reduction of Certain Statutory Civil Penalties) and §18.26 of this title (relating to Administrative Waiver or Reduction of Other Statutory Civil Penalties in Excess of $500).
(b) For purposes of determining a waiver or reduction of a civil penalty under §18.25 and §18.26 of this title, a filer requesting a waiver or reduction will be categorized 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) For purposes of a reduction of a civil penalty 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) For purposes of determining whether a filer is eligible for a waiver or reduction of a civil penalty under §18.25 or §18.26 of this title, a prior offense is any prior late report in which a civil penalty was assessed except:
(1) the civil penalty for that prior late report was waived under Sections 18.23(b) 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 penalty be waived or reduced for the prior late report.
(e) A civil penalty 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 is not paid within thirty (30) calendar days from the date of the letter informing the filer of the reduction.
(f) 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.]
§18.24. General Guidelines for Other Administrative Waiver or Reduction of Statutory Civil Penalties.
Text of Adopted New Rule
The adopted new language is indicated by underlined text.
Chapter 18. GENERAL RULES CONCERNING REPORTS.
§18.24. General Guidelines for Administrative Waiver or Reduction of Statutory Civil Penalties.
(a) For purposes of determining whether a filer is eligible for a waiver or reduction of a civil penalty under §§18.25 or 18.26 of this title, a “prior late offense” is any report for which a civil penalty for late filing was assessed, regardless of whether the civil penalty was waived or reduced. The term does not include:
(1) reports for which no late notices were sent and the filer did not file a request that the civil penalty be waived or reduced for the prior late report; and
(2) reports determined by the executive director to be not required.
(b) A civil penalty 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 is not paid within thirty (30) calendar days from the date of the letter informing the filer of the reduction.
(c) A filer may appeal a determination made under §§18.25 or 18.26 of this title by submitting a request for appeal 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 Certain Statutory Civil Penalties.
Text of Adopted Repeal
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.
[(a) The executive director shall apply this section to:
(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 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 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.
(c) The executive director shall use the following chart to determine the level of waiver or reduction of a civil penalty under this section:
*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) of this title.]
§18.25. Administrative Waiver or Reduction of Certain Statutory Civil Penalties.
Text of Adopted New Rule
The adopted new language is indicated by underlined text.
Chapter 18. GENERAL RULES CONCERNING REPORTS.
§18.25. Administrative Waiver or Reduction of Certain Statutory Civil Penalties.
(a) The executive director shall apply this section to a late report subject to a statutory civil penalty of not more than $500.
(b) The executive director shall use the following chart to determine the level of waiver or reduction of a civil penalty under this section:
| # OF PRIOR LATE OFFENSES IN PAST 5 YEARS | ADJUSTED FINE |
|---|---|
| 0 | Waiver |
| 1 | $100 |
| 2 | $250 |
| 3 or more | No reduction or waiver |
§18.26. Administrative Waiver or Reduction of Other Statutory Civil Penalties in Excess of $500.
Text of Adopted Repeal
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.
[[(a) The executive director shall apply 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.
(b) In order to qualify for a waiver or reduction of a civil penalty 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 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.
(c) The executive director shall use the following chart to determine the level of waiver or reduction of a civil penalty under this section:
Category A
up to $10,000 |
|
Starting Penalty = $400 (1 or 2 priors) |
|
up to $10,000 |
Category B
up to $5,000 |
|
Starting Penalty = $300 (1 or 2 priors) |
|
up to $5,000 |
Category C
up to $5,000 |
|
Starting Penalty = $150 (1 or 2 priors) |
|
up to $5,000 |
§18.26. Administrative Waiver or Reduction of [Other] Statutory Civil Penalties in Excess of $500.
Text of Adopted New Rule
The adopted new language is indicated by underlined text.
Chapter 18. GENERAL RULES CONCERNING REPORTS.
§18.26. Administrative Waiver or Reduction of [Other] Statutory Civil Penalties in Excess of $500.
(a) The executive director shall apply this section to a late report subject to a statutory civil penalty in excess of $500.
(b) The executive director shall use the following chart to determine the level of waiver or reduction of a civil penalty under this section:
| Prior Late Offenses | Total Political Expenditures or Contributions in Reporting Period | |||||||||
| <$5k | <$10k | <$20k | <$30k | <$40k | <$50k | <$60k | <$70k | <$80k | <$90k | |
| 0 | $0 | 90% | 80% | 70% | 60% | 50% | 40% | 30% | 20% | 10% |
| 1 | $100 | 70% | 60% | 50% | 40% | 30% | 20% | 10% | 0% | 0% |
| 2 | $250 | 50% | 40% | 30% | 20% | 10% | 0% | 0% | 0% | 0% |
(c) For purposes of using the chart in subsection (b):
(1) where the chart identifies a dollar amount, that is the amount of the reduced or waived penalty;
(2) where the chart identifies a percentage, that is the percentage by which the penalty is reduced.