O

RDER AND

A

GREED

R 

ESOLUTION

 P

AGE

1

 OF

12

T

EXAS

E

THICS

C

OMMISSION

 

IN THE MATTER OF § BEFORE THE

 

§ ISMAEL “KINO” FLORES, § TEXAS ETHICS COMMISSION

 

§ RESPONDENT § SC-31005137

 

ORDER and AGREED RESOLUTION

 

I. Recitals

 The Texas Ethics Commission (the commission) met on April 21, 2011, to consider sworn complaint SC-31005137. A quorum of the commission was present. The commission determined that there is credible evidence of violations of sections 253.032, 254.031, and 254.0612 of the Election Code and section 20.29 of the Ethics Commission Rules, laws administered and enforced by the commission. To resolve and settle this complaint without further proceedings, the commission proposed this resolution to the respondent.

II. Allegations

 The complaint alleged that the respondent: 1) did not properly report political contributions,  political expenditures, and loans on multiple campaign finance reports, 2) accepted political contributions from a corporation or labor organization, 3) did not include on campaign finance reports the principal occupation or job title and the full name of the employer for individuals who contributed $500 or more during a reporting period, and 4) did not disclose on campaign finance reports information related to political contributions from out-of-state political committees.

III. Facts Supported by Credible Evidence

 Credible evidence available to the commission supports the following findings of fact: 1.

 

The respondent was an unopposed incumbent candidate for state representative in the  November 4, 2008, general election, and had a campaign treasurer appointment in effect during the period at issue. 2.

 

The allegations were based on the respondent’s July 2008, January 2009, July 2009, and January 2010 semiannual campaign finance reports. 3.

 

On October 9, 2008, the respondent filed a correction to the July 2008 semiannual report. In the correction affidavit, the respondent swore that he filed the corrected report not later than the 14th business day after the date he learned that the report as originally filed was

 

T

EXAS

E

THICS

C

OMMISSION

 SC-31005137 O

RDER AND

A

GREED

R 

ESOLUTION

 P

AGE

2

 OF

12 inaccurate or incomplete and that any error or omission in the report as originally filed was made in good faith. The respondent has not filed corrections in response to the complaint. 4.

 

The respondent’s July 2008 semiannual report disclosed the following:



 

$176.37 in total political contributions of $50 or less, unless itemized



 

$210,644.18 in total political contributions



 

$866.62 in total political expenditures of $50 or less, unless itemized



 

$227,092.78 in total political expenditures



 

$13,120.83 in total political contributions maintained as of the last day of the reporting period



 

$0 in outstanding loans 5.

 

The respondent’s January 2009 semiannual report disclosed the following:



 

$58.02 in total political contributions of $50 or less, unless itemized



 

$88,098.32 in total political contributions



 

$601.27 in total political expenditures of $50 or less, unless itemized



 

$63,808.52 in total political expenditures



 

$40,182.44 in total political contributions maintained as of the last day of the reporting period



 

$0 in outstanding loans 6.

 

The respondent’s July 2009 semiannual report disclosed the following:



 

$0 in total political contributions of $50 or less, unless itemized



 

$0 in total political contributions



 

$923.16 in total political expenditures of $50 or less, unless itemized



 

$27,979.87 in total political expenditures



 

$14,640.28 in total political contributions maintained as of the last day of the reporting period



 

$0 in outstanding loans 7.

 

The respondent’s January 2010 semiannual report disclosed the following:



 

$0 in total political contributions of $50 or less, unless itemized



 

$56,550 in total political contributions



 

$210 in total political expenditures of $50 or less, unless itemized



 

$71,021.75 in total political expenditures



 

$56.75 in total political contributions maintained as of the last day of the reporting period



 

$0 in outstanding loans

 

T

EXAS

E

THICS

C

OMMISSION

 SC-31005137 O

RDER AND

A

GREED

R 

ESOLUTION

 P

AGE

3

 OF

12

Total Political Contributions Maintained

 8.

 

The complaint alleged that the respondent disclosed an incorrect amount for the total  political contributions maintained as of the last day of the reporting period in all four of the semiannual reports at issue. The evidence did not establish that the amounts disclosed were incorrect.

Total Outstanding Loans

 9.

 

The complaint alleged that the respondent failed to disclose the total principal amount of all outstanding loans as of the last day of the reporting period in all four of the semiannual reports at issue. The respondent disclosed “0.00” in the field for total outstanding loans in the totals section on the cover sheet in each report at issue. 10.

 

In the reports at issue, the respondent disclosed on Schedule F 11 expenditures totaling approximately $9,780 to financial institutions for loan payments. Ethics Commission records show that the respondent disclosed a $10,000 loan from First National Bank on December 21, 2007, and a $10,000 loan from Texas State Bank on December 3, 2007, in his January 2008 semiannual report (immediately preceding the reporting periods at issue).

Political Contributions from Out-of-State Political Committees

 11.

 

The complaint alleged that the respondent failed to disclose information related to political contributions from out-of-state political committees in the July 2008 and January 2009 semiannual reports. July 2008 Semiannual Report 12.

 

Out of 138 total political contributions itemized in the July 2008 semiannual report, the complaint alleged that a $1,000 political contribution on June 30, 2008, from Wal Pac of Bentonville AR, was contributed by an out-of-state political committee and did not include the identification number that the Federal Election Commission (FEC) assigns to registered  political committees or any additional information regarding the committee. 13.

 

FEC records show that the committee (Wal-Mart Stores Inc. PAC For Responsible Government of Bentonville AR) is registered with the FEC. During the general time period at issue, the committee made a political contribution to the respondent in the amount disclosed in the respondent’s report.