1. Texas Secretary of State Elections Division133rd SOS Election Law Seminar Election Funds Management Texas Secretary of State Primary Financing

2. Primary Finance Overview State primary funds are issued to County Chairs overseeing the conduct of primary elections every two years, in accordance with Chapter 173 of the Texas Election Code. 33rd SOS Election Law SeminarTexas Secretary of State Elections Division 2

3. Primary Finance Overview The primary election funds include: – Local and state-level filing fees – State primary funds – Miscellaneous contributions 33rd SOS Election Law SeminarTexas Secretary of State Elections Division 3

4. Primary Finance Overview The state funds between 75 and 80 percent of the primary election costs (approximately $12MM is the typical state contribution). 33rd SOS Election Law SeminarTexas Secretary of State Elections Division 4

5. Primary Finance Overview The Secretary of State initially distributes funding to the County Chairs based on estimated costs. Seventy-five (75%) of the approved estimated cost is advanced to the chair. After the primary and runoff, chairs remit a final cost report of actual expenses which decides whether additional funds are either due to the chair or surplus funds are returned to the state. 33rd SOS Election Law SeminarTexas Secretary of State Elections Division 5

6. Primary Finance Overview Most county parties contract with the county to lease voting equipment as well as other election services. 33rd SOS Election Law SeminarTexas Secretary of State Elections Division 6

7. Legislative, Rule, and Funding Changes SB 1073, 84 th Tx Leg, requires the chairs to electronically submit to the SOS a list of all candidates that file to be on primary ballot and include a status for each candidate. SB 1448, 84 th Tx Leg, requires the county election officer to contract with the state chair if requested in a county without county party leadership. 33rd SOS Election Law SeminarTexas Secretary of State Elections Division 7

8. Legal References Texas Election Code: Chapter 31, Subchapter D (election service contract provisions) Chapter 51, Subchapter B (election equipment and supplies regarding primaries) Chapter 123, Subchapter B (election equipment leases for primaries) Chapter 173 (primary finance provisions) Texas Administrative Code: Title I, Chapter 81, Subchapters F and G (SOS primary finance rules) 33rd SOS Election Law SeminarTexas Secretary of State Elections Division 8

9. Early Voting The only reimbursable costs for early voting are ballot costs and expenses related to the early voting ballot board. The county pays all other costs associated with early voting (early voting election kits, workers, voting by mail, postage, etc.). 33rd SOS Election Law SeminarTexas Secretary of State Elections Division 9

10. Allowable Costs The county may only charge for actual costs necessary and directly related to the primary. Examples of actual expenses: transporting, preparing, programming, and testing the necessary equipment, as well as for staffing the central counting station outside of normal work hours. 33rd SOS Election Law SeminarTexas Secretary of State Elections Division 10

11. A county may charge $5 for each unit of tabulating equipment or electronic voting system equipment installed at the polling location. If a joint primary is held, then only $2.50 will be reimbursed to each party per unit. 33rd SOS Election Law SeminarTexas Secretary of State Elections Division 11 Allowable Costs

12. No charge may be made for a public building used as a polling place or central counting station if the building is normally open for business on election day. 33rd SOS Election Law SeminarTexas Secretary of State Elections Division 12 Allowable Costs

13. Reimbursement for precinct workers on election day, early voting ballot board, and provisional/late ballot board may not exceed $8 per hour. However, the county may choose to pay the workers market rate and absorb the difference. Technical personnel, including central count, may be paid more than $8 per hour, but may not exceed the market rate. – e.g., If county personnel is used outside of normal work hours, the compensation may not exceed the rate of pay to county staff for comparable work. 33rd SOS Election Law SeminarTexas Secretary of State Elections Division 13

14. Election judge or clerk who delivers and picks up the election records and supplies may be paid $15 per polling location. Election judges and clerks my only be compensated for actual time spent at the polling location. 33rd SOS Election Law SeminarTexas Secretary of State Elections Division 14 Allowable Costs

15. Unallowable Costs Election worker compensation to attend training Costs for training material available through the SOS Salaries of county personnel during regular business hours Duties the Election Officer is statutorily required to perform Costs associated with voter-registration drives or get-out-the-vote campaigns, including mass mail- outs and phone banks 33rd SOS Election Law SeminarTexas Secretary of State Elections Division 15

16. Unallowable Costs Election notices, except for L&A testing announcements Voting by mail kits and postage related to mail ballots Purchases of MBB’s/PEB’s or other voting system components transferable to other elections Voting booths and ballot boxes owned by the county Any food or drink items 33rd SOS Election Law SeminarTexas Secretary of State Elections Division 16

17. Election Services Contract Fund The following county Election Officer duties are required by statute and may not be included for compensation in an election services contract: – The filing of Title 15 reports – Custodian of election records – Conducting early voting (ballots, including programming, and early voting ballot board expenses are payable from the primary fund) 33rd SOS Election Law SeminarTexas Secretary of State Elections Division 17

18. Election Services Contract Fund SOS supplies a “Model Contract” that must be signed by the chair and the county election official. An itemized list of estimated costs must be provided. 33rd SOS Election Law SeminarTexas Secretary of State Elections Division 18 SOS supplies a “Model Invoice” for counties to use. If the county chooses to use their own invoice, be sure to include the elements listed in the SOS Invoice.

19. 33rd SOS Election Law SeminarTexas Secretary of State Elections Division 19 Election Services Contract Fund

20. Commissioners Court: – Expenditures from the fund do not require budgeting or appropriation – May not consider the availability of the election services contract fund in adopting the county budget for the election office Claims against the fund shall be audited and approved in the same manner as other claims against the county. 33rd SOS Election Law SeminarTexas Secretary of State Elections Division 20

21. Joint Primary Joint primaries are strongly encouraged Election Officer supervises the election A joint resolution must be signed by both parties, a majority of the commissioners court, and the county election officer Sharing polling locations and equipment without a joint resolution does NOT qualify as a joint primary Election costs are split between each party 33rd SOS Election Law SeminarTexas Secretary of State Elections Division 21

22. 2016 Primary Finance Online System Cost estimates and final cost reports are submitted via an electronic tool prescribed by SOS. Supporting documentation for final cost reports need to be submitted in hardcopy format or scanned electronic files: – Uploaded directly to the PriFi system – Submitted via email: efmadmin@sos.texas.govefmadmin@sos.texas.gov – Faxed to 512-463-7552 – Mail 33rd SOS Election Law SeminarTexas Secretary of State Elections Division 22

23. 2016 Primary Finance Online System Only county chairs will submit information using the electronic system prescribed by SOS. Chairs will be able to submit cost data and supporting documents immediately after the primary and runoff elections, if applicable. – Allows SOS to approve costs as they are incurred – Relieves bottleneck of final cost reports – Payment will not be issued until all costs are submitted and marked as final 33rd SOS Election Law SeminarTexas Secretary of State Elections Division 23

24. Payment State funds are paid directly from SOS – Counties must seek reimbursement from the chair Candidate filing fees are received directly by county chairs Direct deposit of funds available for counties over 100k population 33rd SOS Election Law SeminarTexas Secretary of State Elections Division 24

25. Statistics Election Officer should be aware of the data to record and report to SOS. Data varies greatly from county to county based on population and level of party activity. 33rd SOS Election Law SeminarTexas Secretary of State Elections Division 25

26. Our target dates: – Estimates will be accepted in October – Funds will be made available November 1st – Final Cost Reports are due 30 days after the primary or runoff, as applicable – Party chairs are required to have the primary finance account reconciled and all surplus funds returned to the state no later than July 1 of they year the primary was conducted 33rd SOS Election Law SeminarTexas Secretary of State Elections Division 26 2016 Primary Finance Dates

27. Election Funds Management Team 1-800-252-2216 (Opt 3) 512-463-5966 (Direct) http://www.sos.state.tx.us/elections/funds/index.shtml Dan Glotzer Mary Eliasen Amanda Grossman 33rd SOS Election Law SeminarTexas Secretary of State Elections Division 27