Adopted Rules Title 1

TITLE 1. ADMINISTRATION

CHAPTER 18. GENERAL RULES CONCERNING REPORTS

The Texas Ethics Commission (the Commission) adopts amendments to Texas Ethics Commission Rule in Chapter 18. Specifically, the Commission adopts amendments to §18.10, regarding Guidelines for Substantial Compliance for a Corrected/Amended 8-day Pre-election Report. The amended rule is adopted without changes to the proposed text as published in the November 10, 2023, issue of the Texas Register (48 TexReg 6507). The rule will not be republished.

This adoption amends the rules used to determine whether an otherwise timely filed 8-day pre-election report will be considered late by virtue of correction. If a filer makes a correction to an 8-day pre-election report, the law requires the Commission to review the correction to see if the report substantially complied with the law as originally filed. Tex. Gov't Code § 571.0771(c). If a substantial correction is made to the report, the report is considered filed as of the day of the correction. Since 8-day reports are subject to an accruing penalty of $500 for the first day late and $100 for each additional day after that up to $10,000, a voluntary correction to an 8-day pre-election report can trigger substantial fines. The filer must also affirm that the report was filed in good faith and within 14 business days of learning of the error or omission for the correction not to trigger a late penalty.

The 8-day reports are considered "critical" reports which provide voters important information immediately before an election. The law is designed to prevent a filer from filing an incomplete or inaccurate report only to correct it later while evading any late filing penalty. However, the Commission has an interest in encouraging voluntary corrections to good-faith errors or omissions in reports. Knowing that a correction may trigger a hefty fine could dissuade some filers from correcting their reports. The adopted rule amendment attempts to strike a balance of encouraging corrections for good-faith mistakes while preventing a person from filing an inaccurate or incomplete report before an election.

The Commission currently decides whether a report substantially complied as originally filed by using TEC §18.10. If a corrected 8-day report is determined to be late by virtue of correction, a filer may request that the fine be waived or reduced. TEC §18.10 provides a special set of criteria for reductions or waivers of fines of 8-day reports that are late due to correction. The general rules for late reports, TEC §18.23 through §18.26, are also applied to 8-day reports that are considered late due to correction. The filer is given the more generous outcome.

The adopted amendment raises the monetary threshold of what would constitute a substantial correction. It also moves criteria that would qualify a corrected report or a waiver into the determination of whether the report will be considered late because of the correction. This provides a filer the waiver it would be entitled to under the current rules without having to file an affidavit of defense.

This adoption is submitted concurrently with the adopted repeal of §18.11, regarding Guidelines for Waiver or Reduction of a Late Fine for a Corrected/Amended 8-day Pre-election Report, so that waivers or reductions will be determined by the general rules for late reports. This will clear up the ambiguity as to which set of rules apply and create a simpler, more uniform set of rules for late reports.

No public comments were received on this amended rule.

The amended rule is adopted under Texas Government Code §571.062, which authorizes the Commission to adopt rules to administer Title 15 of the Election Code, and Chapter 571 of the Government Code.

The adoption affects Title 15 of the Election Code, and Chapter 571 of the Government Code.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 18, 2023.

TRD-202304879

James Tinley

General Counsel

Texas Ethics Commission

Effective date: January 7, 2024

Proposal publication date: November 10, 2023

For further information, please call: (512) 463-5800

1 TAC §18.11

The Texas Ethics Commission (the Commission) adopts a repeal in Texas Ethics Commission Rule in Chapter 18. Specifically, the Commission adopts the repeal of rule §18.11, regarding Guidelines for Waiver or Reduction of a Late Fine for a Corrected/Amended 8-day Pre-election Report. The repealed rule is adopted without changes to the proposed text as published in the November 10, 2023, issue of the Texas Register (48 TexReg 6508). The repeal will not be republished.

No public comments were received on this repealed rule.

The repealed rule is adopted under Texas Government Code §571.062, which authorizes the Commission to adopt rules to administer Title 15 of the Election Code and Chapter 571 of the Government Code.

The adopted repeal affects Title 15 of the Election Code and Chapter 571 of the Government Code.