Texas 2009 - 81st Regular

Texas Senate Bill SB613 Compare Versions

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11 81R2358 CAE-D
22 By: Shapleigh S.B. No. 613
33
44
55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to political contributions and expenditures; providing
88 civil and criminal penalties.
99 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1010 SECTION 1. Section 251.001, Election Code, is amended by
1111 amending Subdivisions (2) and (8) and adding Subdivisions (21)
1212 through (33) to read as follows:
1313 (2) "Contribution" means a direct or indirect transfer
1414 of money, goods, services, or any other thing of value and includes
1515 an agreement made or other obligation incurred, whether legally
1616 enforceable or not, to make a transfer. The term:
1717 (A) includes:
1818 (i) a loan or extension of credit, other
1919 than those expressly excluded by this subdivision;
2020 (ii) [, and] a guarantee of a loan or
2121 extension of credit, including a loan described by Subparagraph
2222 (i);
2323 (iii) a coordinated expenditure; or
2424 (iv) the provision of in-kind professional
2525 political services, including legal advice, polling, media
2626 consulting, direct mailing, and fund-raising to a candidate,
2727 officeholder, political party, or political committee; and
2828 (B) [this subdivision. The term] does not
2929 include:
3030 (i) [(A)] a loan made in the due course of
3131 business by a corporation that is legally engaged in the business of
3232 lending money and that has conducted the business continuously for
3333 more than one year before the loan is made; or
3434 (ii) [(B)] an expenditure required to be
3535 reported under Section 305.006(b), Government Code.
3636 (8) "Direct campaign expenditure" means an [a
3737 campaign] expenditure by a person for a communication that is
3838 express advocacy or an electioneering communication and that is not
3939 a coordinated expenditure with a candidate, officeholder,
4040 political committee, or agent of a candidate, officeholder, or
4141 political committee [that does not constitute a campaign
4242 contribution by the person making the expenditure].
4343 (21) "Membership organization" means a trade
4444 association, cooperative, or corporation without capital stock
4545 that:
4646 (A) is composed of members, some or all of whom
4747 are vested with the authority to operate or administer the
4848 organization according to the organization's articles, bylaws,
4949 constitution, or other formal organizational documents;
5050 (B) expressly states the qualifications and
5151 requirements for membership in its articles, bylaws, constitution,
5252 or other formal organizational documents;
5353 (C) makes its articles, bylaws, constitution, or
5454 other formal organizational documents available to its members upon
5555 request;
5656 (D) solicits persons to become members;
5757 (E) expressly acknowledges the acceptance of
5858 membership by sending a membership card, including the member's
5959 name on a membership newsletter list, or using another means; and
6060 (F) is not organized primarily for the purpose of
6161 influencing the nomination for election, or election, of an
6262 individual to public office.
6363 (22) "Member" means a person who:
6464 (A) satisfies the requirements for membership in
6565 a membership organization;
6666 (B) affirmatively accepts the membership
6767 organization's invitation to become a member;
6868 (C) has a significant financial attachment to,
6969 including a significant investment or ownership interest in, the
7070 membership organization or pays membership dues, other than
7171 payments to a separate segregated fund, at least annually to the
7272 organization;
7373 (D) has a significant organizational attachment
7474 to the membership organization that includes affirmation of
7575 membership on at least an annual basis; and
7676 (E) has an opportunity to participate in any part
7777 of the organization's decision-making.
7878 (23) "Connected organization" means a corporation,
7979 labor organization, or membership organization other than a
8080 political committee, that directly or indirectly establishes or
8181 administers a separate segregated fund.
8282 (24) "Establishment or administration expense" means
8383 an expenditure incurred in the normal course of business by an
8484 organization, regardless of whether the organization engages in
8585 political activity. An expenditure is an establishment or
8686 administration expense if the expenditure:
8787 (A) is for:
8888 (i) office space;
8989 (ii) phones;
9090 (iii) salaries for routine clerical and
9191 administrative assistance;
9292 (iv) utilities;
9393 (v) general office supplies;
9494 (vi) legal and accounting fees for the
9595 organization's compliance with this title;
9696 (vii) office equipment; or
9797 (viii) routine administrative expenses
9898 incurred in setting up and administering a separate segregated
9999 fund; and
100100 (B) is not for political activity, including:
101101 (i) political consulting;
102102 (ii) telephone banks;
103103 (iii) issue advocacy;
104104 (iv) electioneering brochures and direct
105105 mail;
106106 (v) voter registration and
107107 get-out-the-vote drives;
108108 (vi) broadcast issue advertising or
109109 electioneering communications;
110110 (vii) other political advertising;
111111 (viii) political fund-raising;
112112 (ix) voter identification, lists, or
113113 databases; and
114114 (x) any other expenditure directly or
115115 indirectly connected with an election or campaign for public
116116 office.
117117 (25) "Restricted class" means the group of individuals
118118 who:
119119 (A) for a corporation, are the stockholders,
120120 employees, and families of the stockholders and employees of the
121121 corporation or the corporation's subsidiaries, branches,
122122 divisions, affiliates, or departments;
123123 (B) for a labor organization, are the members,
124124 employees, and families of the members and employees of the labor
125125 organization; or
126126 (C) for a membership organization:
127127 (i) are the members, employees, and
128128 families of employees of the organization; or
129129 (ii) with respect to a solicitation for a
130130 campaign contribution, are the stockholders, employees, and
131131 families of stockholders and employees of a corporate member of a
132132 membership organization that separately and specifically approves
133133 the solicitation and does not approve a solicitation by any other
134134 membership organization for the same calendar year.
135135 (26) "Executive or administrative personnel" means
136136 individuals employed by a corporation, labor organization, or
137137 membership organization who are paid on a salary or commission
138138 basis and who have policymaking, managerial, professional, or
139139 supervisory responsibilities. The term includes officers,
140140 executives, managers of a plant, division, or section of the
141141 corporation or organization, lawyers, and engineers. The term does
142142 not include professionals who are represented by a labor
143143 organization, salaried foremen or supervisors having direct
144144 supervision over hourly employees, former or retired personnel who
145145 are not stockholders, or individuals who are not employees for the
146146 purpose of income withholding tax on employee wages under the
147147 Internal Revenue Code.
148148 (27) "Separate segregated fund" means a fund
149149 established under Section 253.1001.
150150 (28) "Coordinated expenditure" means an expenditure
151151 described by Section 251.010.
152152 (29) "Electioneering communication" means a
153153 communication that:
154154 (A) is disseminated by a broadcast, cable, or
155155 satellite communication, a mass mailing, or a telephone bank;
156156 (B) refers to a clearly identified candidate;
157157 (C) is publicly distributed:
158158 (i) on or after the 60th day before a
159159 general, special, or runoff election for the identified candidate;
160160 or
161161 (ii) on or after the 30th day before a
162162 primary election;
163163 (D) is targeted to the identified candidate's
164164 relevant electorate; and
165165 (E) is not:
166166 (i) a public communication that refers to a
167167 clearly identified candidate appearing in a news story, commentary,
168168 editorial, or work intended for entertainment distributed through
169169 the facilities of a bona fide broadcasting station, newspaper,
170170 magazine, or other publication, unless such facilities are owned or
171171 controlled by a political party, political committee, or candidate;
172172 or
173173 (ii) a communication to the restricted
174174 class of the person making the communication.
175175 (30) A communication is "targeted to the relevant
176176 electorate" if it can be received by at least the lesser of 50,000
177177 people or two percent of those eligible to vote for the candidate,
178178 as specified by the secretary of state. Notwithstanding this
179179 subdivision, a communication is not "targeted to the relevant
180180 electorate" if it can only be received by fewer than 500 people.
181181 (31) "Mass mailing" means the mailing or facsimile
182182 transmission of more than 500 identical or substantially similar
183183 documents within a 30-day period.
184184 (32) A communication is made by a "telephone bank" if
185185 more than 500 telephone calls with an identical or substantially
186186 similar message are made within a 30-day period.
187187 (33) "Express advocacy" means a communication that
188188 refers to a clearly identified candidate and that expressly
189189 advocates for or against the candidate, regardless of the words
190190 contained in the communication. The term "express advocacy" does
191191 not include:
192192 (A) a communication that refers to a clearly
193193 identified candidate appearing in a news story, commentary,
194194 editorial, or work intended for entertainment distributed through
195195 the facilities of a bona fide broadcasting station, newspaper,
196196 magazine, or other publication, unless such facilities are owned or
197197 controlled by a political party, political committee, or candidate;
198198 or
199199 (B) a communication to the restricted class of
200200 the person making the communication.
201201 SECTION 2. Subchapter A, Chapter 251, Election Code, is
202202 amended by adding Section 251.010 to read as follows:
203203 Sec. 251.010. COORDINATED EXPENDITURES. An expenditure is
204204 coordinated with a candidate, officeholder, political party, or
205205 political committee if the expenditure is made:
206206 (1) in cooperation, consultation, or concert with, at
207207 the request or suggestion of, or under an understanding with the
208208 candidate, officeholder, political party, or political committee
209209 or an agent acting on behalf of the candidate, officeholder, party,
210210 or committee;
211211 (2) wholly or partly for the production,
212212 dissemination, distribution, or publication of political
213213 advertising or a campaign communication prepared by the candidate,
214214 officeholder, or political committee or an agent acting on behalf
215215 of the candidate, officeholder, or committee;
216216 (3) by a person based on information that the
217217 candidate, officeholder, or political committee or an agent acting
218218 on behalf of the candidate, officeholder, or committee provides to
219219 the person about a candidate's, officeholder's, or committee's
220220 plans, projects, or needs to the person making the expenditure with
221221 the intent that the expenditure be made;
222222 (4) by a person who, in the same semiannual reporting
223223 period as that in which the expenditure is made, is serving or has
224224 served in an executive or policymaking position as a member,
225225 employee, fund-raiser, or agent of the candidate, officeholder, or
226226 political committee or an agent acting on behalf of the candidate,
227227 officeholder, or committee;
228228 (5) by a person who retains the professional advisory
229229 or consulting services of another person who has provided or is
230230 providing campaign-related services in the same semiannual
231231 reporting period as that in which the expenditure is made to the
232232 candidate or officeholder, including services relating to the
233233 candidate's or officeholder's decision to seek the office;
234234 (6) for fund-raising activities with or for the
235235 candidate, officeholder, or political committee or an agent acting
236236 on behalf of the candidate, officeholder, or committee, or for the
237237 solicitation or receipt of political contributions on behalf of the
238238 candidate, officeholder, or political committee or an agent acting
239239 on behalf of the candidate, officeholder, or committee; or
240240 (7) for a communication that clearly identifies a
241241 candidate if the person making the expenditure informs the
242242 candidate, officeholder, or political committee or an agent acting
243243 on behalf of the candidate, officeholder, or committee about the
244244 communication's contents, intended audience, timing, location,
245245 mode, or frequency of dissemination, and the candidate,
246246 officeholder, committee, or agent approves the communication.
247247 SECTION 3. Section 253.002(a), Election Code, is amended to
248248 read as follows:
249249 (a) A person may not knowingly make, [or] authorize, or aid
250250 the making of a direct campaign expenditure.
251251 SECTION 4. Section 253.061, Election Code, is amended to
252252 read as follows:
253253 Sec. 253.061. DIRECT EXPENDITURE OF $1,000 [$100] OR LESS.
254254 Except as otherwise provided by law, an individual not acting in
255255 concert with another person may make one or more direct campaign
256256 expenditures in an election from the individual's own property if:
257257 (1) the total expenditures on any one or more
258258 candidates or measures do not exceed $1,000 [$100]; and
259259 (2) the individual receives no reimbursement for the
260260 expenditures.
261261 SECTION 5. The heading to Section 253.062, Election Code,
262262 is amended to read as follows:
263263 Sec. 253.062. DIRECT EXPENDITURE EXCEEDING $1,000 [$100].
264264 SECTION 6. Section 253.062(a), Election Code, is amended to
265265 read as follows:
266266 (a) Except as otherwise provided by law, an individual not
267267 acting in concert with another person may make one or more direct
268268 campaign expenditures in an election from the individual's own
269269 property that exceed $1,000 [$100] on any one or more candidates or
270270 measures if:
271271 (1) the individual complies with Chapter 254 as if the
272272 individual were a campaign treasurer of a political committee; and
273273 (2) the individual receives no reimbursement for the
274274 expenditures.
275275 SECTION 7. The heading to Subchapter D, Chapter 253,
276276 Election Code, is amended to read as follows:
277277 SUBCHAPTER D. CORPORATIONS, [AND] LABOR ORGANIZATIONS, AND
278278 MEMBERSHIP ORGANIZATIONS
279279 SECTION 8. Section 253.091, Election Code, is amended to
280280 read as follows:
281281 Sec. 253.091. CORPORATIONS COVERED. This subchapter
282282 applies only to:
283283 (1) corporations that are organized under the Texas
284284 Business Corporation Act, the Texas For-Profit Corporation Law, the
285285 Texas Non-Profit Corporation Act, the Texas Nonprofit Corporation
286286 Law, federal law, or law of another state or nation; and
287287 (2) an entity with a parent, subsidiary, division, or
288288 affiliate described by Subdivision (1).
289289 SECTION 9. Section 253.095, Election Code, is amended to
290290 read as follows:
291291 Sec. 253.095. PUNISHMENT OF AGENT. An officer, director,
292292 representative, or other agent of or a person who aids a corporation
293293 or labor organization that [who] commits an offense under this
294294 subchapter is punishable for the grade of offense applicable to the
295295 corporation or labor organization.
296296 SECTION 10. The heading to Section 253.098, Election Code,
297297 is amended to read as follows:
298298 Sec. 253.098. COMMUNICATION WITH RESTRICTED CLASS
299299 [STOCKHOLDERS OR MEMBERS].
300300 SECTION 11. Section 253.098(a), Election Code, is amended
301301 to read as follows:
302302 (a) A corporation, [or] labor organization, or membership
303303 organization may make one or more direct campaign expenditures from
304304 its own property for the purpose of communicating directly with its
305305 restricted class [stockholders or members, as applicable, or with
306306 the families of its stockholders or members].
307307 SECTION 12. Section 253.099(a), Election Code, is amended
308308 to read as follows:
309309 (a) A corporation, [or] labor organization, or membership
310310 organization may make one or more expenditures from its own
311311 property to finance nonpartisan voter registration and
312312 get-out-the-vote campaigns aimed at its restricted class
313313 [stockholders or members, as applicable, or at the families of its
314314 stockholders or members].
315315 SECTION 13. Subchapter D, Chapter 253, Election Code, is
316316 amended by adding Sections 253.1001 and 253.1002 to read as
317317 follows:
318318 Sec. 253.1001. EXPENDITURES FOR SEPARATE SEGREGATED FUND.
319319 (a) A corporation, labor organization, or membership organization,
320320 other than a political committee, may make political expenditures
321321 from its own treasury funds and property to finance the
322322 establishment or administration expenses of not more than one
323323 separate segregated fund.
324324 (b) For purposes of this section, all parents,
325325 subsidiaries, branches, divisions, and affiliates of a corporation
326326 or membership organization count as a single entity.
327327 (c) A corporation or labor organization may make a political
328328 expenditure from its own treasury funds or property for
329329 establishment or administration expenses of one membership
330330 organization of which it is a member.
331331 (d) Money in a separate segregated fund from corporate,
332332 labor organization, or membership organization treasury funds
333333 shall be kept in a separate account and may not be commingled with
334334 any other funds. A person who knowingly violates this subsection
335335 commits an offense. An offense under this subsection is a Class A
336336 misdemeanor.
337337 (e) A separate segregated fund shall be treated as a
338338 general-purpose committee and shall comply with the provisions of
339339 this title applicable to a general-purpose committee as if the
340340 separate segregated fund were a general-purpose committee.
341341 Sec. 253.1002. SOLICITATION FOR SEPARATE SEGREGATED FUNDS.
342342 (a) Subject to Subsection (c), a connected organization may make a
343343 political expenditure from its own treasury funds for expenses to
344344 solicit or facilitate political contributions from its restricted
345345 class for the organization's separate segregated fund.
346346 (b) A connected organization may facilitate a political
347347 contribution from its restricted class under Subsection (a) by
348348 enabling a contribution to be made by a payroll deduction, checking
349349 a form to indicate a contribution is authorized, instituting a
350350 periodic payment plan, or enclosing a return envelope in a
351351 solicitation request. A connected organization may solicit a
352352 voluntary political contribution from its restricted class under
353353 Subsection (a) by mailings, oral requests, pamphlets, and other
354354 means.
355355 (c) A corporation or labor organization may not make more
356356 than two written solicitations for contributions to the separate
357357 segregated fund in a calendar year to employees who are not
358358 stockholders, executive or administrative personnel, or the
359359 families of stockholders or executive or administrative personnel.
360360 SECTION 14. The heading to Section 253.101, Election Code,
361361 is amended to read as follows:
362362 Sec. 253.101. UNLAWFUL CONTRIBUTION OR EXPENDITURE [BY
363363 COMMITTEE].
364364 SECTION 15. Section 253.101, Election Code, is amended by
365365 amending Subsection (a) and adding Subsections (a-1) and (a-2) to
366366 read as follows:
367367 (a) A person, including a connected [political committee
368368 assisted by a corporation or labor] organization, [under Section
369369 253.100] may not make a political contribution or political
370370 expenditure in whole or part from money that is known by the person
371371 or a member or officer of the person [political committee] to be
372372 dues, fees, or other money required as a condition of employment or
373373 promotion or condition of membership in a labor organization.
374374 (a-1) A person, including a connected organization, may not
375375 use the establishment, administration, and solicitation process as
376376 a means of exchanging treasury money for voluntary contributions.
377377 (a-2) A person, including a connected organization, may
378378 not, through a bonus, expense account, or another form of direct or
379379 indirect compensation or reimbursement, pay another person for
380380 making a political contribution.
381381 SECTION 16. Sections 253.102(a) and (b), Election Code, are
382382 amended to read as follows:
383383 (a) A stockholder's, employee's or labor organization
384384 member's contribution must be voluntary. A corporation, [or] labor
385385 organization, membership organization, or other person [or a
386386 political committee assisted by a corporation or labor organization
387387 under Section 253.100] commits an offense if the person [it] uses or
388388 threatens to use physical force, job discrimination, or financial
389389 reprisal or gain against an employee or labor organization member
390390 to obtain money or any other thing of value to benefit a candidate,
391391 officeholder, political committee, or separate segregated fund or
392392 to be used to influence the result of an election or to assist an
393393 officeholder.
394394 (b) A political committee assisted by a corporation or labor
395395 organization [under Section 253.100] commits an offense if it
396396 accepts or uses money or any other thing of value that is known by a
397397 member or officer of the political committee to have been obtained
398398 in violation of Subsection (a).
399399 SECTION 17. Section 253.104(b), Election Code, is amended
400400 to read as follows:
401401 (b) A corporation or labor organization may not knowingly
402402 make a contribution authorized by Subsection (a) during a period
403403 beginning on the 60th day before the date of a general election for
404404 state and county officers or a primary election and continuing
405405 through the day of the election.
406406 SECTION 18. Section 254.031(a), Election Code, is amended
407407 to read as follows:
408408 (a) Except as otherwise provided by this chapter, each
409409 report filed under this chapter must include:
410410 (1) the amount of political contributions from each
411411 person that in the aggregate equal or exceed $100 [$50] and that are
412412 accepted during the reporting period by the person or committee
413413 required to file a report under this chapter, the full name and
414414 address of the person making the contributions, and the dates of the
415415 contributions;
416416 (2) the amount of loans that are made during the
417417 reporting period for campaign or officeholder purposes to the
418418 person or committee required to file the report and that in the
419419 aggregate equal or exceed $100 [$50], the dates the loans are made,
420420 the interest rate, the maturity date, the type of collateral for the
421421 loans, if any, the full name and address of the person or financial
422422 institution making the loans, the full name and address, principal
423423 occupation, and name of the employer of each guarantor of the loans,
424424 the amount of the loans guaranteed by each guarantor, and the
425425 aggregate principal amount of all outstanding loans as of the last
426426 day of the reporting period;
427427 (3) the amount of political expenditures that in the
428428 aggregate equal or exceed $100 [$50] and that are made during the
429429 reporting period, the full name and address of the persons to whom
430430 the expenditures are made, and the dates and purposes of the
431431 expenditures;
432432 (4) the amount of each payment made during the
433433 reporting period from a political contribution if the payment is
434434 not a political expenditure, the full name and address of the person
435435 to whom the payment is made, and the date and purpose of the
436436 payment;
437437 (5) the total amount or a specific listing of the
438438 political contributions of [$50 or] less than $100 accepted and the
439439 total amount or a specific listing of the political expenditures of
440440 [$50 or] less than $100 made during the reporting period;
441441 (6) the total amount of all political contributions
442442 accepted and the total amount of all political expenditures made
443443 during the reporting period;
444444 (7) the name of each candidate or officeholder who
445445 benefits from a direct campaign expenditure made during the
446446 reporting period by the person or committee required to file the
447447 report, and the office sought or held, excluding a direct campaign
448448 expenditure that is made by the principal political committee of a
449449 political party on behalf of a slate of two or more nominees of that
450450 party; and
451451 (8) as of the last day of a reporting period for which
452452 the person is required to file a report, the total amount of
453453 political contributions accepted, including interest or other
454454 income on those contributions, maintained in one or more accounts
455455 in which political contributions are deposited as of the last day of
456456 the reporting period.
457457 SECTION 19. Section 254.151, Election Code, is amended to
458458 read as follows:
459459 Sec. 254.151. ADDITIONAL CONTENTS OF REPORTS. In addition
460460 to the contents required by Section 254.031, each report by a
461461 campaign treasurer of a general-purpose committee must include:
462462 (1) the committee's full name and address;
463463 (2) the full name, residence or business street
464464 address, and telephone number of the committee's campaign
465465 treasurer;
466466 (3) the identity and date of the election for which the
467467 report is filed, if applicable;
468468 (4) the name of each identified candidate or measure
469469 or classification by party of candidates supported or opposed by
470470 the committee, indicating whether the committee supports or opposes
471471 each listed candidate, measure, or classification by party of
472472 candidates;
473473 (5) the name of each identified officeholder or
474474 classification by party of officeholders assisted by the committee;
475475 (6) the principal occupation of each person from whom
476476 political contributions that in the aggregate equal or exceed $100
477477 [$50] are accepted during the reporting period;
478478 (7) the amount of each political expenditure in the
479479 form of a political contribution made to a candidate, officeholder,
480480 or another political committee that is returned to the committee
481481 during the reporting period, the name of the person to whom the
482482 expenditure was originally made, and the date it is returned;
483483 (8) on a separate page or pages of the report, the
484484 identification of any contribution from a corporation or labor
485485 organization made and accepted under Subchapter D, Chapter 253; and
486486 (9) on a separate page or pages of the report, the
487487 identification of the name of the donor, the amount, and the date of
488488 any expenditure made by a corporation or labor organization to:
489489 (A) establish or administer the political
490490 committee; or
491491 (B) finance the solicitation of political
492492 contributions to the committee [under Section 253.100].
493493 SECTION 20. Subchapter F, Chapter 254, Election Code, is
494494 amended by adding Section 254.1511 to read as follows:
495495 Sec. 254.1511. REPORTING OF EXPENDITURES BY SEPARATE
496496 SEGREGATED FUND. A separate segregated fund shall report
497497 expenditures made under Sections 253.098, 253.099, 253.1001, and
498498 253.1002 on a separate schedule.
499499 SECTION 21. Section 254.156, Election Code, is amended to
500500 read as follows:
501501 Sec. 254.156. CONTENTS OF MONTHLY REPORTS. Each monthly
502502 report filed under this subchapter must comply with Sections
503503 254.031 and 254.151 except that the maximum amount of a political
504504 contribution, expenditure, or loan that is not required to be
505505 individually reported is[:
506506 [(1) $10 in the aggregate; or
507507 [(2)] $20 in the aggregate [for a contribution
508508 accepted by a general-purpose committee to which Section 254.1541
509509 applies].
510510 SECTION 22. Section 257.001, Election Code, is amended to
511511 read as follows:
512512 Sec. 257.001. PRINCIPAL POLITICAL COMMITTEE OF POLITICAL
513513 PARTY. The state or county executive committee of a political party
514514 may designate not more than one [a] general-purpose committee as
515515 the principal political committee for that party in the state or
516516 county, as applicable.
517517 SECTION 23. Section 257.002, Election Code, is amended to
518518 read as follows:
519519 Sec. 257.002. REQUIREMENTS RELATING TO CORPORATE OR LABOR
520520 UNION CONTRIBUTIONS. (a) A political party that accepts a
521521 contribution authorized by Section 253.104 may use the contribution
522522 only [to]:
523523 (1) for its own establishment or administrative
524524 expenses [defray normal overhead and administrative or operating
525525 costs incurred by the party]; [or]
526526 (2) to administer a primary election;
527527 (3) for the establishment or administrative expenses
528528 of a [or] convention held by the party; or
529529 (4) for expenses related to redistricting.
530530 (b) A political party that accepts contributions authorized
531531 by Section 253.104 shall maintain the contributions in a separate
532532 account and shall pay all allowable expenditures under Subsection
533533 (a) owed to a third-party vendor or contractor directly from the
534534 separate account. A political party may not transfer a contribution
535535 authorized by Section 253.104 to a political committee or another
536536 entity directly or indirectly under the party's direction or
537537 control.
538538 SECTION 24. Section 257.003, Election Code, is amended by
539539 adding Subsection (e) to read as follows:
540540 (e) Sections 254.153 and 254.154 govern the reporting
541541 schedule for a report required by this section.
542542 SECTION 25. Section 257.004, Election Code, is amended by
543543 amending Subsection (a) and adding Subsection (c) to read as
544544 follows:
545545 (a) Beginning on the 60th day before the date of the general
546546 election for state and county officers and continuing through the
547547 day of the election, a political party may not knowingly accept a
548548 contribution authorized by Section 253.104 or make an expenditure
549549 from the account required by Section 257.002. Beginning on the 60th
550550 day before the date of a primary election, a political party may not
551551 knowingly accept a contribution authorized by Section 253.104.
552552 (c) A contribution is accepted under this section when it is
553553 received by or on behalf of the party, unless the contribution is
554554 returned to the contributor not later than the fifth day after the
555555 date the contribution is received. An expenditure is made from the
556556 account established under Section 257.002 when any funds are
557557 expended or obligated, whichever is earlier.
558558 SECTION 26. Section 257.007, Election Code, is amended to
559559 read as follows:
560560 Sec. 257.007. RULES. The commission shall adopt rules to
561561 implement this chapter and ensure that corporate or labor
562562 organization funds are not used for political activity in
563563 circumvention of this chapter.
564564 SECTION 27. Sections 253.098(b), 253.099(b), 253.100, and
565565 257.003(d), Election Code, are repealed.
566566 SECTION 28. The changes in law made by this Act apply only
567567 to a contribution or expenditure made on or after September 1, 2009.
568568 A contribution or expenditure made before September 1, 2009, is
569569 governed by the law in effect immediately before that date, and the
570570 former law is continued in effect for that purpose.
571571 SECTION 29. The amendment by this Act of Subdivision (2),
572572 Section 251.001, Election Code, by the addition of Paragraph
573573 (A)(iv) to that subdivision is intended to clarify rather than
574574 change existing law.
575575 SECTION 30. This Act takes effect September 1, 2009.