PAAT Legislative Update
We wanted to make sure you are aware of several issues - in which PAAT was involved - that passed during the legislative session(s). Some of them are major in their implications, and others are just great to know since most other people will never figure them out. All have an impact, either for you, your clients or your association or company.
Details are below, but the short bullets are:
- Sunset Review for the Texas Ethics Commission is next session. Everything is potentially on the table. Are you (we) ready?
- Registration period for new clients taken during the regular session was significantly shortened.
- Commission staff’s resistance to allowing spousal and family travel (and staff in some instances) in connection with a conference or fact finding trip has been statutorily overridden.
- Legality of an incorporated entity in providing of meals, transportation or lodging for any elected official addressing an audience was clarified to remove any lingering questions related to the issues raised by Commission Opinion 484.
- Authorization for a “frequent visitor pass” to by-pass metal detectors in the Capitol was enacted.
- Lobby registration fees for contract lobbyists of other than non-profits was increased to $750 from $500. For associations and other organizations that are (c)(3)s or (c)(4)s, the fee was raised to $150; but for (c)(6)s, the lobby fee was actually reduced from $500 to $150. You may need a roadmap on this one.
- Under a Comptroller interpretation, PACs were required to file a franchise (margin) tax return, but language in the special session has now clarified that they are exempted.
There were also several issues that never made it to the governor in which we were involved, and for the most part the fact they didn’t pass was a good thing. Be glad to share most of these if you have an interest.
Here are links to legislation of interest that did pass:
- HB 3409 by Kolkhorst: Required persons already registered to file an amended lobby registration adding a new client "not later than the fifth day after the date on which the registrant makes the first direct communication with a member of the legislative or executive branch." It only applies during regular legislative sessions. Currently, if you add a client during the month, you have until the 10th of the next month to add the client to your registration. “First time” registrants still have the five day requirement to initially register for their first client. This bill was amended in the senate to clarify the law by removing the question of whether the transportation and lodging for a spouse or family member or staffer could be paid for when attending a fact finding opportunity or conference that related to the duties of a member.
- HB 2131 by Geren: Established a frequent visitor pass for Capitol access - similar to what PAAT has been advocating since last spring. We have talked to DPS about the process for implementing the pass and they said that once they complete a review of the statute they will begin developing a basic platform of rules and regulations that can be implemented in a similar fashion to the established CHL program. Upon completion of the infrastructure, the Department will have to take the newly developed rules before the DPS Commission for approval. Once approved, the Department will then have to post the new rules in the Texas Register for public comment. So needless to say there is a lot of red tape involved in this process. PAAT will continue to work with DPS and the Preservation Board and keep you posted.
- SB 1269 by Wentworth: Addressed the problems that the (now withdrawn) Commission Opinion 484 created for elected officials speaking to corporate paid events in their official capacity. We have no idea what the impact of the withdrawal is, much less what the Commission would do if a complaint were filed, so this is an answer to the puzzle. Your corporate or association client or boss will need this legislation to clarify that it is legal to invite any elected official (local or state) to address an audience at corporate expense.
- SB 1 (Fiscal Matters - Special Session): Raised the current lobby registration fee for most lobbyists from $500.00 to $750.00. As discussed in previous e-mails, PAAT was active on this issue, testifying as to why raising the registration fee is not a good idea, and distributing an op-ed opposing raising the registration fee which was published by the Quorum Report. While lobby fees went up to $750 for most filers, the initial recommendation by the legislature was that the fee increase to $1000. For those who are or who represent 501(c)(3), 501(c)(4) and/or 501(c)(6) organizations exclusively, the registration fee goes from $100 to $150. For those who are registering as an independent contractor for purchasing decisions, the registration fee goes from $50 to $75. So the end result is a 50% increase for all three types of filers, but what is in effect a decrease for (c)(6) filers from $500 to $150.
- PAC and Taxable Entities (SB 1 - Special Session): In May we alerted our members that the Comptroller was taking a firm stand that PACs had to file franchise (margin tax) tax returns, although the issue had previously resulted in conflicting advice from that agency. Language in SB 1811 in the regular session fixed this problem by clarifying that unincorporated PACs were exempt from this requirement, but this legislation died. The legislature ultimately passed this clarification again in SB 1 during the special.
Other News
- The Sunset Commission “safety net bill” moved several dates around, including moving the date for Ethics Commission Sunset review from 2015 to 2013. The review process will be underway by this fall and PAAT is putting together a committee to examine Sunset opportunities and exposures. If you are interested in working with us on this let us know. More information to follow.
If you have any questions about these bills or others please let us know.
|
|
