The Office of the Secretary of State (SOS) proposes amendments to Chapter 81, Subchapter F, Primary Elections. The amendments concern the financing of the 2020 primary elections with state funds, including the determination of necessary and appropriate expenses relating to the proper conduct of primary elections by party officials, county election officers, and voting system vendors and the procedures for requesting reimbursement by the parties, counties, and voting system vendors for such expenses. In addition, these amendments incorporate changes mandated by the 86th Texas Legislature.

Section 81.101 is being amended to make it permissive for voting system vendors to submit primary and runoff estimate costs. The proposed amendments also remove references to spreadsheets and incorporate references to electronic submissions, which may include spreadsheets or other electronic formats prescribed by the SOS. In addition, the proposed amendments add language allowing the state chair to act as a fiscal agent of the county chair pursuant to H.B. 2640, 86th Texas Legislature.

Section 81.104 is being amended to remove county chair signature requirements for checks drawn against the primary bank account for certain expenditures.

Section 81.107 is being amended to add a reference to §81.119 regarding county chair compensation forfeiture.

Section 81.112 is being amended to clarify references to county and state chair where the language is clearly intended to refer to one or the other. The proposed amendments also add language to make it clear that changes to the electronic system prescribed by the SOS after certain deadlines must be reported to the state chair and to the SOS. Additional clarifying language states that candidate statuses will be updated automatically after the canvass results are recorded in the electronic system prescribed by the SOS, and that the chair can update statuses manually after the canvass. The rule regarding extended filing deadlines is amended to distinguish between state chair and county chair responsibilities and to accommodate notification requirements, including web postings, pursuant to H.B. 2640, 86th Texas Legislature. Lastly, the proposed amendments add a paragraph regarding county executive committee vacancies pursuant to H.B. 2640, 86th Texas Legislature.

Section 81.120 is being amended to accommodate an increase to election worker pay and delivery fees.

Section 81.123 is being amended to clarify a heading in the graphic.

Section 81.130 is being amended to include a specific reference to non-county-owned equipment and to reflect that primary funds cannot be used for the leasing of non-county-owned equipment to conduct non-joint primaries, in accordance with the General Appropriations Act, 86th Texas Legislature.

The proposed amendments are necessary for the proper and efficient conduct of the 2020 primary elections. It is in the public interest to establish adequate procedures to ensure the most efficient use of state funding.

Keith Ingram, Director of Elections, has determined that, for the first five-year period the proposed amendments are in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the proposed rules and no anticipated effect on a local economy.

Mr. Ingram has also determined that, for each year of the first five years the proposed amended rules are in effect, the public benefit anticipated as a result of enforcing or administering the sections will be the proper conduct of the 2020 primary elections by party officials with the aid of state money appropriated for that purpose. There will be no adverse economic effect on small businesses, micro-businesses, or rural communities; therefore, no economic impact statement or regulatory flexibility analysis is required under Texas Government Code §2006.002. There will be no anticipated economic cost to the state and county chairs of the Democratic and Republican parties.

In addition, the SOS has determined that Texas Government Code §2001.0045(b) is not applicable. The proposed amendments to Chapter 81, Subchapter F do not impose costs on any regulated persons. As a result, the SOS is not required to take any additional action under Texas Government Code §2001.0045.

Furthermore, Mr. Ingram has determined that for each year of the first five years the proposed amendments are in effect, the rules will have the following impact on government growth. The proposed rules will not create or eliminate any government programs and will not create or eliminate any employee positions. Additionally, the proposed rules will not have an effect on appropriations to the agency or result in an increase or decrease in fees paid to the SOS. The proposed rules do not create new regulations; rather, they clarify and expand upon existing rules, as summarized in this preamble. The proposed rules neither increase nor decrease the number of individuals subject to the applicability of the rules. Finally, the proposed rules are not anticipated to have a significant effect on the state's economy.

Written comments on the proposal may be submitted to the Office of the Secretary of State, Keith Ingram, Director of Elections, P.O. Box 12060, Austin, Texas 78711. Comments may also be sent via e-mail to elections@sos.texas.gov. For comments submitted electronically, please include "Proposed 2020 Primary Rules" in the subject line. Comments must be received no later than twenty (20) days from the date of publication of the proposal in the Texas Register. Comments should be organized in a manner consistent with the organization of the proposed rules. Questions concerning the proposed rules may be directed to Elections Division, Office of the Secretary of State, at (512) 463-5650.

The amendments are proposed under Texas Election Code §31.003, which provides the SOS with the authority to obtain and maintain uniformity in the application, operation, and interpretation of provisions in the Texas Election Code and other election laws. Texas Election Code §31.003 also allows the SOS, in performing such duties, to prepare detailed and comprehensive written directives and instructions relating to and based on such laws. The rule changes are also proposed under Texas Election Code §173.006, which authorizes the SOS to adopt rules consistent with the Texas Election Code that facilitate the holding of primary elections within the amount appropriated by the legislature for that purpose. In addition, other sections within Chapters 172 and 173 of the Texas Election Code, including §§172.029, 172.117, and 172.122, provide the SOS with rulemaking authority by their terms.

No other sections are affected by the proposed rules.