[ Report Home | Previous Page | Next Page ] Luddite PACs & Candidates: Texas Political Funds that Dodge the Internet   VIII. Recommendations

Except for some weak limits in judicial elections, Texas candidates and PACs have no limit on the amount of money that they can raise and spend. Some wealthy individual donors make more than $1 million in state political contributions in a singe election cycle. In this virtually unlimited system, it is imperative that Texas provide state-of-the-art disclosure of campaign finances. Instead, even before the final five months of the campaign—when the political money really begins to fly—Texas candidates and PACs have failed to electronically disclose $7.8 million in campaign contributions. Texas should close most of the loopholes that made this possible and force all major PACs and candidates to disclose their campaign finances electronically. The only defensible loophole is to exclude modest campaigns and PACs that raise and spend less than $20,000 a year. Any entity that exceeds these limits should have to file electronically—and face serious penalties for failing to do so.

Close the “Luddite loophole”
Computers are as ubiquitous as they are inexpensive in the 21st century. Any candidate or PAC that exceeds the $20,000 exemption can afford computer access. A 2001 “Sunset Review” of the Texas Ethics Commission (TEC) recommended granting the TEC authority to limit the use of this Luddite loophole. It would be far better for the Texas Legislature to eliminate it altogether.

Close the “District Judge Loophole”
Many district judge candidates run modest political campaigns that will easily qualify for the existing exemption for campaigns that raise or spend less than $20,000 a year. Other candidates for this office raise more than $200,000 for their campaigns. The public has the same right to know who foots these political bills as it does for any other politician. The Texas Legislature should act on the 2001 Sunset Review recommendation to close this loophole and a similar one for district attorney candidates.

TEC’s “Party-PAC Loophole”
The plain language of the Texas Election Code indicates that the Texas Legislature never intended for political party organizations to receive special exemptions from electronic-filing requirements. The fact that some of these party PACs accept direct corporate and labor union contributions suggests that these entities should be held to higher disclosure standards—not lower ones. Texas Ethics Commissioners and the Texas Legislature should close this unofficial loophole that apparently has been created in the minds of Texas Ethics Commission staff.