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«TEXAS ETHICS COMMISSION P.O. Box 12070, Austin, Texas 78711-2070 (512) 463-5800 Wilhelmina Delco Chase Untermeyer, Chair Paul W. Hobby Tom Harrison, ...»

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TEXAS ETHICS COMMISSION

P.O. Box 12070, Austin, Texas 78711-2070

(512) 463-5800

Wilhelmina Delco

Chase Untermeyer, Chair

Paul W. Hobby

Tom Harrison, Vice Chair

Bob Long

Hugh C. Akin

Tom Ramsay

Jim Clancy

AGENDA

8:30 a.m., Monday, August 15, 2016

Date and Time:

Room El.014, Capitol Extension, Austin, Texas

Location:

1. Call to order; roll call.

2. Executive session pursuant to Section 551.071, Government Code, Consultation Discussion of pending litigation to seek legal with Attorneys; Closed Meeting.

advice relating to the following:

A. Cause No. 14-06508-16; Texas Ethics Commission v. Michael Quinn Sullivan; in the 1581h District Court of Denton County, Texas; and related cases, Cause No. 02- 15-00103-CV, Texas Ethics Commission v. Michael Quinn Sullivan, in the Second Court of Appeals, Fort Worth, Texas; and Cause No. 15-09170, Michael Quinn Sullivan v. Texas Ethics Commission, in the Supreme Court of Texas.

B. Cause No. D-1-GN-14-002665; Michael Quinn Sullivan v. Jim Clancy, Paul W Hobby, Hugh C. Akin, Wilhelmina Delco, Tom Harrison, Bob Long, Tom Ramsay, and Chase Untermeyer, in their official capacities as Commissioners of the Texas Ethics Commission, and the Texas Ethics Commission, by and through its Executive Director, Natalia Luna Ashley, in her official capacity,- in the 345th Judicial District Court of Travis County, Texas.

C. Cause No. D-1-GN-14-001252; Empower Texans, Inc. and Michael Quinn Sullivan v. The State of Texas Ethics Commission, Natalia Luna Ashley, in her capacity as Executive Director of the Texas Ethics Com,mission, Tom Ramsay, individually and in his capacity as Commissioner, Paul Hobby, individually and in his capacity as Commissioner, Hugh C. Akin, individually and in his capacity as Commissioner, James T Clancy, individually and in ·his capacity as Commissioner, Wilhelmina R. Delco, individually and in her capacity as Commissioner, Warren T Harrison, individually and in his capacity as Commissioner, Robert K. Long, individually and in his capacity as Commissioner, and Charles G. Untermeyer, individually and in his capacity as Commissioner,· in the 53rd Judicial District Court of Travis County, Texas; and related case, Cause For more information, contact Natalia Luna Ashley, Executive Director, at (512) 463-5800,

–  –  –

No. 03-16-00019-CV; Empower Texans, Inc. and Michael Quinn Sullivan v. The State of Texas Ethics Commission, Natalia Luna Ashley, in her capacity as Executive Director of the Texas Ethics Commission, Tom Ramsay, individually and in his capacity as Commissioner, Paul Hobby, individually and in his capacity as Commissioner, Hugh C. Akin, individually and in his capacity as Commissioner, James T Clancy, individually and in his capacity as Commissioner, Wilhelmina R. Delco, individually and in her capacity as Commissioner, Warren T Harrison, individually and in his capacity as Commissioner, Robert K. Long, individually and in his capacity as Commissioner, and Charles G. Untermeyer, individually and in his capacity as Commissioner, in the Third Court of Appeals, Austin, Texas.

D. Cause No. D-1-GN-15-004455 ; Texas Ethics Commission v. Empower Texans and Michael Quinn Sullivan; in the 345th Judicial District Court of Travis County, Texas.

E. Civil Action No. 5:14-cv-00133-C; Texas Home School Coalition Association, Inc. v. Matthew D. Powell, in his official capacity as District Attorney of Lubbock County, et al.; in the United States District Court for the Northern District of Texas, Lubbock Division.

F. Cause No. D-1-GN-16-000149, Texas Home School Coalition Association, Inc. v.

Texas Ethics Commission; in the 261 st Judicial District Court of Travis County, Texas; and related case, Cause No. 03-16-00139-CV, Texas Home School Coalition Association, Inc. v. Texas Ethics Commission, in the Third Court of Appeals, Austin, Texas.

G. Civil Action No. 1:13-cv-00916; Mike Barnes v. Texas Ethics Commission; in the United States District Court for the Western District of Texas, Austin Division;

and related case, Cause No. D-1-GN-15-003454; Mike Barnes v. Texas Ethics Commission, in the 201 st Judicial District Court of Travis County, Texas.

H. Cause No. 2016-27417; Briscoe Cain v. Charles G. Untermeyer, in his Official Capacity as Chairman and Commissioner of the Texas Ethics Commission and Natalia Luna Ashley, in her Official Capacity as Executive Director of the Texas Ethics Commission; in the 270th Judicial District Court of Harris County, Texas.

3. Reconvene in open session.

4. Adjourn.

For more information, contact Natalia Luna Ashley, Executive Director, at (512) 463-5800.

–  –  –

CERTIFICATION: I certify that I have reviewed this document and that it confonns to

all applicable Texas Register filing requirements. Certifying Official & Agency Liaison:

Natalia Luna Ashley, Executive Director NOTICE: Under the Americans with Disabilities Act, an individual with a disability must have an equal opportunity for effective communication and participation in public meetings. Upon request, the Texas Ethics Commission will provide auxiliary aids and services, such as interpreters for the deaf and hearing impaired, readers, and large print or Braille documents. In determining the type of auxiliary aid or service, the Commission will give primary consideration to the individual's request. Those requesting auxiliary aids or services should notify Margie Castellanos at (512) 463-5800 or RELAY Texas at (800) 735-2989 two days before this meeting so that appropriate arrangements can be made. Please also contact Ms. Castellanos if you need assistance in having English translated into Spanish.





For more information, contact Natalia Luna Ashley, Executive Director, at (512) 463-5800.

–  –  –

1. Call to order; roll call.

2. Communication to the Commission from the public.

3. Comments by the Executive Director.

4. Comments by the Commissioners.

5. Approve minutes for the following meetings:

o Executive Session (discussion of pending litigation)-June 1, 2016; and o Public Meeting- June 1, 2016.

–  –  –

6. Discussion of Advisory Opinion Request No. 613: Whether a political advertising disclosure statement is required to be included in political advertising broadcast by radio.

This opinion request construes § 255.001 of the Election Code and Ethics Commission Rules § 26.1.

–  –  –

7. Public discussion and possible action on the proposal and publication in the Texas Register of an amendment to Ethics Commission Rules § 26.1 (Disclosure Statement), to clarify how a political advertising disclosure statement must be included in political advertising in audio fonn, including broadcasts by radio.

8. Public discussion and possible action on the proposal and publication in the Texas Register of a new Ethics Commission Rules § 20.60 (Reporting Political For more information, contact Natalia Luna Ashley, Executive Director, at (5 I 2) 463-5800.

–  –  –

Expenditures for Processing Fees), regarding the disclosure of multiple payments in a reporting period to a single person for fees to process political contributions.

Public discussion and possible action on the proposal and publication in the Texas 9.

Register of a new Ethics Commission Rules § 20.56 (Expenditures Involving Consultants) and an amendment to Ethics Commission Rules § 20.61 (Purpose of Expenditure), regarding the disclosure of political expenditures made to consultants.

10. Public discussion and possible action on the requirement that a campaign finance report include the total amount of political contributions maintained at the end of the reporting period under § 254.03 l(a)(8) of the Election Code and Ethics Commission Rules§ 20.50.

11. Public discussion and possible action on the proposal and publication in the Texas Register of the repeal of Ethics Commission Rules § 34.43(b) (Compensation and Reimbursement Threshold), regarding an exception to the lobby registration requirement for compensation if no more than 5% of a person' s compensated time during a calendar quarter is spent engaging in lobby activity.

12. Public discussion and possible action on the adoption or proposal and publication in the Texas Register of a new Ethics Commission Rules § 40.11 (Publicly Traded Corporation as Source of Income over $500), regarding the identification on a personal financial statement of a publicly traded corporation from which income in excess of $500 is derived.

–  –  –

13. Briefing, discussion, and possible action to waive or reduce certain penalties assessed for campaign finance reports and personal financial statements filed late due to issues with the new electronic filing application for the following individuals and political committee.

Campaign Finance Reports Adolfo D. Lopez (00080091) William R. Bates, Jr. (00066504) Philip M. Gommels (00080199) J.M. ' Chuy ' Alvarez (00051932) Frank J. Corte, Jr. (00020036) Glenn A. Johnson, Treasurer, PGISD Better Education (00080531) For more information, contact Natalia Luna Ashley, Executive Director, at (512) 463-5800.

–  –  –

Andrea G. Martin Edmondson (00069228) Eric D. Mahroum (00069162) Personal Financial Statements Lance N. Christian (00080484) Kelli Johnson (00080581) Edward Pollard (00080307) Jeffrey A. 'Jeff Lane (00080152) Wesley Lloyd (0006404 7) Rodolfo G. Ramos, Jr. (00065625) Michael Louis Vickers (00059909) Julie Oakley (00066853) James Oakley (00066593) Scott A. McDonald (00067414) George F. Francis, IV (00067524)

14. Briefing, discussion, and possible action on appeals of detenninations made under Ethics Commission Rules §§ 18.25 and 18.26 relating to administrative waiver or

reduction of a fine, for the following individuals:

Sergio Mufioz, Jr. (00065967) Patrick 0. Eronini, Sr. (00080390)

15. Briefing, discussion, and possible action to waive or reduce the late-filing penalty in connection with a corrected report or to detennine whether the corrected report as originally filed substantially complied with the applicable law for the following

political committee:

Shane Smith, Treasurer, Citizens for Cooper (00080854)

16. Discussion and possible action regarding the termination of a campaign treasurer

appointment for the following inactive individuals and political committees:

–  –  –

Marilynn S. Mayse (00080059) Richard J. Phillips (00057527) For more information, contact Natalia Luna Ashley, Executive Director, at (512) 463-5800.

–  –  –

Del Rio Police Officers' Association Political Action Committee (00063507) Texas Card Players Association Political Action Committee (00065814) Geo-PAC (00068242) Second Chance Democrats (00070398) Black Firefighters United PAC (00080045)

17. Reports more than 30 days late: Discussion and possible action regarding the

imposition of an additional fine on the following filers:

Candidates/Officeholders Veronica Aleman (00080612) Dane A.N. Eyerly (00080231)

–  –  –

Lamontry Lott, Sr., Treasurer, Black Firefighters United PAC (00080045) Sean M. McDonald, Treasurer, Second Chance Democrats (PAC) (00070398) Personal Financial Statement

–  –  –

18. Discussion on the Texas Ethics Commission Legislative Appropriation Request for Fiscal Years 2018 and 2019.

19. Report by subcommittee of Commissioners regarding recommendations for statutory changes to the 85th Legislature as required by section 571.073 of the Government Code and discussion about other recommendations Commissioners may want to consider.

20. Adjourn.

CERTIFICATION: I certify that I have reviewed this document and that it conforms to all applicable Texas Register filing requirements.

For more information, contact Natalia Luna Ashley, Executive Director, at (512) 463-5800.

–  –  –

NOTICE: Under the Americans with Disabilities Act, an individual with a disability must have an equal opportunity for effective communication and participation in public meetings. Upon request, the Texas Ethics Commission will provide auxiliary aids and services, such as interpreters for the deaf and hearing impaired, readers, and large print or Braille documents. In determining the type of auxiliary aid or service, the Commission will give primary consideration to the individual's request. Those requesting auxiliary aids or services should notify Margie Castellanos at (512) 463-5800 or RELAY Texas at (800) 735-2989 two days before this meeting so that appropriate arrangements can be made. Please also contact Ms. Castellanos if you need assistance in having English translated into Spanish.

For more information, contact Natalia Luna Ashley, Executive Director, at (512) 463-5800.

–  –  –

Whether a political advertising disclosure statement is required to be included in political advertising broadcast by radio. (AOR-613) The Texas Ethics Commission ("commission") has been asked whether a political advertising disclosure statement is required to be included in a particular communication broadcast by radio.

According to the facts presented by the requestor of this opinion, a non-profit corporation seeks to contract, in return for valuable consideration, for the broadcast of advertisements by radio in certain legislative districts to influence the outcome of elections in Texas. The advertisements would be intended to inform voters of positions taken by certain members of the Texas House of Representatives. The advertisements would state in pertinent part "Don't trnst to protect you if you're sick," and "Protect your loved ones and vote for." The advertisements would also state the date of the election and the dates for early voting.



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