HBA-RBT, MAJ H.B. 705 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 705
By: Shields
Elections
4/8/1999
Introduced



BACKGROUND AND PURPOSE 

If a person were to make a misrepresentation in an election campaign
communication that the communication was from a tax-exempt organization, or
someone currently or formerly associated with a tax-exempt organization,
the organization could lose its tax-exempt status.  H.B. 705 establishes
that it is a Class A misdemeanor to attempt to injure a candidate or
influence the result of an election by knowingly misrepresenting certain
information in a campaign communication or engaging in conduct which
endangers the tax-exempt status of an organization. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 255.004, Election Code, as follows:

(c)  Provides that a person commits a Class A misdemeanor if the person,
with the intent to injure a candidate or influence the result of an
election, knowingly represents in a campaign communication that: 

(1)  the communication is from a tax-exempt organization when the written
permission of that tax-exempt organization has not been obtained; or 
(2)  a tax-exempt organization supports or opposes a candidate or party
when the written authority of that tax-exempt organization has not been
obtained; or 
(3) the communication is from a current or former officer, member, or
employee of a taxexempt organization when the written permission of that
person has not been obtained; or 
(4) a current or former officer, member, or employee of a tax-exempt
organization supports or opposes a candidate or party when the written
permission of that person has not been obtained. 

(d)   Provides that a person commits a Class A misdemeanor if with intent
to injure a candidate or influence the result of an election, the person
knowingly makes any misrepresentation or fails to disclose facts and in so
doing endangers the tax-exempt status of an organization under the Internal
Revenue Code, a rule promulgated by the Internal Revenue Service, a rule
under the Texas Tax Code, or a rule promulgated by the Texas Comptroller.  

(e)   Creates this subdivision from existing text as well as new language
which provides that an offense under this section creates a private cause
of action under Chapter 73, Civil Practice and Remedies Code (Libel). 

SECTION 2.  [Bill contains no Section Two.]

SECTION 3.  Amends Section 38.001, Civil Practice and Remedies Code, by
adding a claim for recovery under Section 255.004(c), Election Code (True
Source of Communication), to the list of claims for which an individual or
corporation may recover attorney's fees. 
 
SECTION 4.  Effective date: September 1, 1999.

SECTION 5.  Emergency clause.