Reporting Staff Reimbursement

At its October 2007 meeting, the Ethics Commission adopted a change to rule § 20.62. Reporting Staff Reimbursement.  The rule initially became effective February 2007 and allows for a simplified method for reporting the use of political funds to reimburse a staff member for political expenditures made from personal funds.  (Previously reported pursuant to Ethics Advisory Opinion No. 450 (2003).

The October change allows more filers to qualify for the simplified method of reporting by increasing the reporting threshold from $500 to $5,000.  For details, please refer to the following text of the rule.

§ 20.62.  Reporting Staff Reimbursement

(a) Political expenditures made out of personal funds by a staff member of an officeholder, a candidate, or a political committee with the intent to seek reimbursement from the officeholder, candidate, or political committee that in the aggregate do not exceed $5000 during the reporting period may be reported as follows IF the reimbursement occurs during the same reporting period that the initial expenditure was made:

(1) the amount of political expenditures that in the aggregate exceed $50 and that are made during the reporting period, the full name and address of the persons to whom the expenditures are made and the dates and purposes of the expenditures; and

(2) included with the total amount or a specific listing of the political expenditures of $50 or less made during the reporting period. 

(b) Except as provided by subsection (a) of this section, a political expenditure made out of personal funds by a staff member of an officeholder, a candidate, or a political committee with the intent to seek reimbursement from the officeholder, candidate, or political committee must be reported as follows:

(1) the aggregate amount of the expenditures made by the staff member as of the last day of the reporting period is reported as a loan to the officeholder, candidate, or political committee;

(2) the expenditure made by the staff member is reported as a political expenditure by the officeholder, candidate, or political committee; and

(3) the reimbursement to the staff member to repay the loan is reported as a political expenditure by the officeholder, candidate, or political committee.

If you have any questions regarding your reporting requirements, please contact the Texas Ethics Commission legal department at 512-463-5800.