81R26237 CAE-F
By: Smith of Tarrant H.B. No. 2511
Substitute the following for H.B. No. 2511:
By: Brown of Kaufman C.S.H.B. No. 2511
A BILL TO BE ENTITLED
AN ACT
relating to political contributions and expenditures; providing
criminal penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 251.001, Election Code, is amended by
amending Subdivisions (2) and (8) and adding Subdivisions (21)
through (28) to read as follows:
(2) "Contribution" means a direct or indirect transfer
of money, goods, services, or any other thing of value and includes
an agreement made or other obligation incurred, whether legally
enforceable or not, to make a transfer. The term:
(A) includes:
(i) a loan or extension of credit, other
than those expressly excluded by this subdivision;
(ii) [, and] a guarantee of a loan or
extension of credit, including a loan described by Subparagraph
(i); or
(iii) an in-kind contribution; and
(B) [this subdivision. The term] does not
include:
(i) [(A)] a loan made in the due course of
business by a corporation that is legally engaged in the business of
lending money and that has conducted the business continuously for
more than one year before the loan is made; or
(ii) [(B)] an expenditure required to be
reported under Section 305.006(b), Government Code.
(8) "Direct campaign expenditure" means a campaign
expenditure that is not an in-kind contribution, and includes
expenditures for communications that are express advocacy or an
electioneering communication [that does not constitute a campaign
contribution by the person making the expenditure].
(21) "Administrative expense" means an expenditure
for a separate segregated fund or political party incurred in the
normal course of business by an organization, regardless of whether
the organization engages in political activity. An expenditure is:
(A) an administrative expense if the expenditure
facilitates the decision-making process, endorsement or
contribution determination, and delivery process of the separate
segregated fund, including expenditures for:
(i) office space maintenance and repairs;
(ii) telephone and Internet services;
(iii) office equipment;
(iv) utilities;
(v) general office and meeting supplies;
(vi) salaries for routine clerical, data
entry, and administrative assistance necessary for the proper
administrative operation of the separate segregated fund;
(vii) legal and accounting fees for
compliance with this title;
(viii) routine administrative expenses
incurred in establishing and administering a separate segregated
fund;
(ix) management and supervision of the
separate segregated fund, including expenses in holding meetings of
the fund's governing body to interview candidates and make
endorsements relating to its support;
(x) candidate forums in which all
candidates for a particular office in an election are invited to
participate on the same terms;
(xi) the recording of separate segregated
fund decisions;
(xii) expenses incurred in preparing and
delivering contributions; or
(xiii) soliciting funds from the restricted
class; and
(B) not an administrative expense if the
expenditure is for:
(i) political consulting to support or
oppose a candidate;
(ii) telephoning to communicate with the
public;
(iii) brochures and direct mail to persons
not in the restricted class;
(iv) issue advocacy or electioneering
communications;
(v) political fund-raising;
(vi) voter identification, voter lists, or
voter databases other than those related to a restricted class;
(vii) polling of persons not in the
restricted class; or
(viii) recruiting candidates.
(22) "In-kind contribution" means:
(A) a contribution of goods, services, or any
other thing of value, except money, and includes an agreement made
or other obligation incurred, whether legally enforceable or not,
to make a contribution; or
(B) a third-party expenditure by a person that
is:
(i) made with the prior consent or approval
of the candidate, political committee, or political party, or an
agent or representative of the candidate, committee, or party; or
(ii) created, produced, or distributed at
the request or suggestion of:
(a) a candidate, political committee,
or political party, or the agent or representative of the
candidate, committee, or party; or
(b) a third party who is paying for
the expenditure and the candidate, political committee, or
political party, or the agent or representative of the candidate,
committee, or party assents to the request or suggestion.
(23) "Electioneering communication" means a
communication that if taken as a whole and with limited reference to
external events, such as the proximity to the election, could only
be interpreted by a reasonable person as containing advocacy of the
election or defeat of one or more clearly identified candidates or
ballot measures.
(24) "Express advocacy" means a communication that
refers to a clearly identified candidate or ballot measure,
utilizing phrases such as "Vote for X," "Re-elect your Legislator,"
"Support the Democratic Nominee," "Cast your Ballot Against (or
for) the Republican Challenger," or "Defeat the Incumbent." The
term "express advocacy" does not include:
(A) a communication that refers to a clearly
identified candidate or ballot measure appearing in a news story,
commentary, editorial, or work intended for entertainment
distributed through the facilities of a bona fide broadcasting
station, newspaper, magazine, or other publication, unless such
facilities are owned or controlled by a political party, political
committee, or candidate; or
(B) a communication to the restricted class of
the person making the communication as provided by Section 253.098.
(25) "Clearly identified" means, as to a candidate:
(A) the use of the candidate's name, nickname,
photograph, or picture; or
(B) an unambiguous reference that makes the
identity of the candidate apparent, such as a reference to the
office held, incumbency, district or area represented, or the
candidate's status as a candidate for a political party.
(26) "Membership organization" means a trade
association, cooperative, or corporation without capital stock
that:
(A) is composed of members, some or all of whom
are vested with the authority to operate or administer the
organization according to the organization's articles, bylaws,
constitution, or other formal organizational documents;
(B) expressly states the qualifications and
requirements for membership in its articles, bylaws, constitution,
or other formal organizational documents;
(C) makes its articles, bylaws, constitution, or
other formal organizational documents available to its members upon
request;
(D) solicits persons to become members;
(E) expressly acknowledges the acceptance of
membership by sending a membership card, including the member's
name on a membership newsletter list, or using another means; and
(F) is not organized for the principal purpose of
influencing the nomination for election, or election, of an
individual to public office.
(27) "Member" means a person who:
(A) currently satisfies the requirements for
membership in a membership organization;
(B) affirmatively accepts the membership
organization's invitation to become a member; and
(C) either:
(i) has a significant financial attachment
to, including a significant investment or ownership interest in,
the membership organization or pays membership dues, other than
payments to a separate segregated fund, predetermined by the
organization; or
(ii) has a significant organizational
attachment to the membership organization that includes
affirmation of membership on at least an annual basis and has an
opportunity to participate in the organization's governance.
(28) "Restricted class" means the group of individuals
who:
(A) for a corporation, are the stockholders,
employees, and families of the stockholders and employees of the
corporation or the corporation's subsidiaries, branches,
divisions, affiliates, or departments;
(B) for a labor organization, are the members,
employees, and families of the members and employees of the labor
organization; or
(C) for a membership organization, are the
members, employees, and families of employees of the organization.
SECTION 2. Subchapter D, Chapter 253, Election Code, is
amended by adding Section 253.1001 to read as follows:
Sec. 253.1001. EXPENDITURES FOR SEPARATE SEGREGATED FUND.
(a) A corporation, labor organization, or membership organization,
other than a political committee, may make political expenditures
from its own treasury funds and property to finance the
establishment or administration expenses of its own separate
segregated fund.
(b) Money in a separate segregated fund from corporate,
labor organization, or membership organization treasury funds
shall be kept in a separate account and may not be commingled with
any other funds. A person who knowingly violates this subsection
commits an offense. An offense under this subsection is a Class A
misdemeanor.
(c) A separate segregated fund shall be treated as a
general-purpose committee and shall comply with the provisions of
this title applicable to a general-purpose committee as if the
separate segregated fund were a general-purpose committee.
SECTION 3. Section 253.061, Election Code is amended to
read as follows:
Sec. 253.061. DIRECT EXPENDITURE OF $500 [$100] OR LESS.
Except as otherwise provided by law, an individual not acting in
concert with another person may make one or more direct campaign
expenditures in an election from the individual's own property if:
(1) the total expenditures on any one or more
candidates or measures do not exceed $500 [$100]; and
(2) the individual receives no reimbursement for the
expenditures.
SECTION 4. The heading to Section 253.062, Election Code,
is amended to read as follows:
Sec. 253.062. DIRECT EXPENDITURE EXCEEDING $500 [$100].
SECTION 5. Section 253.062(a), Election Code, is amended to
read as follows:
(a) Except as otherwise provided by law, an individual not
acting in concert with another person may make one or more direct
campaign expenditures in an election from the individual's own
property that exceed $500 [$100] on any one or more candidates or
measures if:
(1) the individual complies with Chapter 254 as if the
individual were a campaign treasurer of a political committee; and
(2) the individual receives no reimbursement for the
expenditures.
SECTION 6. Section 253.098(a), Election Code, is amended to
read as follows:
(a) A corporation, [or] labor organization, or membership
organization may make communications on any subject, including
communications containing express advocacy or electioneering
communications, to its restricted class or any part of that class
[one or more direct campaign expenditures from its own property for
the purpose of communicating directly with its stockholders or
members, as applicable, or with the families of its stockholders or
members].
SECTION 7. Section 257.002(a), Election Code, is amended to
read as follows:
(a) A political party that accepts a contribution authorized
by Section 253.104 may use the contribution only [to]:
(1) for its own administrative expenses [defray normal
overhead and administrative or operating costs incurred by the
party]; or
(2) to administer a primary election or convention
held by the party.
SECTION 8. Section 253.100, Election Code, is repealed.
SECTION 9. The changes in law made by this Act apply only to
a contribution or expenditure made on or after September 1, 2009. A
contribution or expenditure made before September 1, 2009, is
governed by the law in effect immediately before that date, and the
former law is continued in effect for that purpose.
SECTION 10. The legislative history and text of this Act may
not be construed or used to interpret the meaning of the provisions
of the Election Code as they existed before amendment by this Act
and may not be construed or used in any manner, directly or
indirectly, to interpret the prior law, or its meaning,
constitutionality, legality, or clarity, in any pending civil or
criminal case.
SECTION 11. This Act takes effect September 1, 2009.