§ 2-2-34. REPORTING OF COVERED TRANSFERS.

(A)

In this section, "covered transfer" means any contribution by a person to another person if the first person:

(1)

designates, requests, or suggests that the contribution be used for:

(a)

direct campaign expenditures; or

(b)

making a transfer to another person for the purpose of making or paying for direct campaign expenditures;

(2)

made the contribution in response to a solicitation or other request for a contribution for:

(a)

the making of or paying for direct campaign expenditures; or

(b)

making a contribution to another person for the purpose of making or paying for direct campaign expenditures; or

(3)

engaged in discussions with the recipient of the contribution regarding:

(a)

the making of or paying for direct campaign expenditures; or

(b)

making a contribution to another person for the purpose of making or paying for direct campaign expenditures.

(B)

The term "covered transfer" does not mean:

(1)

a contribution made by a person if that person prohibited, in writing, the use of that contribution for political contributions, direct campaign expenditures, or covered transfers, and if the person receiving the contribution did not use the contribution for political contributions, direct campaign expenditures, or covered transfers;

(2)

a contribution made by a person in a commercial transaction in the ordinary course of any trade or business conducted by that person;

(3)

a contribution made by a person in the form of an investment made by that person; or

(4)

a contribution made by a person who has not received a contribution from another person during the current election reporting cycle.

(C)

A person who makes one or more covered transfers in a City election that in the aggregate meet or exceed $500 shall report:

(1)

the full name and address of the person who makes the transfer;

(2)

if the person who makes the transfer is an individual, the individual's occupation and employer;

(3)

the full name and address of the person to whom each transfer is made;

(4)

the date and amount of each transfer;

(5)

the purpose and description of each transfer;

(6)

in the case of a transfer made for a direct campaign expenditure for express advocacy, if known at the time that the transfer is reported, the name of each candidate, including the office held and office sought as applicable, whose election or defeat the expenditure advocates, or each ballot measure the passage or defeat of which the expenditure advocates;

(7)

in the case of a transfer made for an electioneering communication, if known at the time that the transfer is reported, the name of each candidate, including the office held and office sought as applicable, to whom the communication refers or each ballot measure to which the communication refers; and

(8)

except as provided in subsection (C)(8)(c), when the person making the transfer has accepted a contribution from another person during the current election reporting cycle:

(a)

in the case of a transfer exclusively paid for by funds contained in a segregated bank account, for each contributor to the account who made contributions in an aggregate amount of $500 or more during the current election reporting cycle that have not previously been reported under this subsection:

(i)

the full name and address of the contributor;

(ii)

if the contributor is an individual, the individual's occupation and employer; and

(iii)

the date and amount of each contribution received; or

(b)

in the case of a transfer paid for by funds other than funds contained in a segregated bank account, for each contributor who made contributions in an aggregate amount of $500 or more during the current election reporting cycle that have not previously been reported under this subsection:

(i)

the full name and address of the contributor;

(ii)

if the contributor is an individual, the individual's occupation and employer; and

(iii)

the date and amount of each contribution received.

(c)

A person is not required to report a contribution under subsections (C)(8)(a) or (C)(8)(b) if:

(i)

the contributor specified in writing that the contribution was not to be used for political contributions, direct campaign expenditures, or covered transfers at the time that the contribution was made to the person making the transfer, and the person making the transfer did not use the contribution for political contributions, direct campaign expenditures, or covered transfers;

(ii)

the person making the transfer received the contribution in a commercial transaction in the ordinary course of any trade or business conducted by the person; or

(iii)

the person making the transfer received the contribution from investments made by the person.

(D)

The report required by subsection (C) shall be made:

(1)

if the transfer is made before the 60th day before the date of the election, no later than the fifth business day after the date of the transfer;

(2)

if the transfer is made on or after the 60th day before the date of the election and before the ninth day before the date of the election, no later than the second business day after the date of the transfer; or

(3)

if the transfer is made on or after the ninth day before the date of the election, no later than 5 p.m. on the first business day after the date of the transfer.

(E)

A person making a report required by subsection (C) shall, in addition to the required report, also provide to the city clerk a structured data file containing the contents of the report. The data file must be provided to the city clerk no later than the date that the associated report must be filed.

(F)

The data file must comply with specifications and be on media determined by the city clerk. A filer who provides a non-compliant data file to the clerk shall resubmit the data in the required format. A data file that must be resubmitted is timely filed if resubmitted no later than the next business day after the date that the clerk notifies the filer that the data file is non-compliant.

(G)

Information reported under this section by a political committee or a person subject to Section 254.261 ( Direct campaign expenditure exceeding $100 ) of the Texas Election Code must also be reported on the political committee's or person's next campaign finance report, if required by state law.

(H)

It is an affirmative defense to prosecution pursuant to section 2-2-34(C) that the person who makes the transfer:

(1)

prohibits, in writing, the use of that transfer for political contributions, direct campaign expenditures, or covered transfers if the person receiving the contribution did not use the contribution for political contributions, direct campaign expenditures, or covered transfers;

(2)

makes the transfer in a commercial transaction in the ordinary course of any trade or business conducted by that person;

(3)

is making an investment; or

(4)

has not received a contribution from another person during the current election reporting cycle.

Source: Ord. No. 20160623-020, Pt. 6, 2-1-17 .

Editor's note

This section is effective February 1, 2017. Part 7 of Ordinance No. 20160623-020 states, "A person who makes one more transfers that are reportable under Section 2-2-34 (Reporting of Covered Transfers) must only report covered transfers made and contributions received after January 31, 2017.