By Shields                                             H.B. No. 705
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the creation of the offenses of and providing for
 1-3     recovery of reasonable attorney's fees for falsely identifying a
 1-4     tax-exempt organization with political activity or endangering the
 1-5     tax-exempt status of an organization by unauthorized engaging in
 1-6     political activity in the name of the organization, and creating a
 1-7     private cause of action.
 1-8           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-9           SECTION 1.  Section 255.004 Election Code, is amended to read
1-10     as follows:
1-11           (c)  A person commits an offense if, with intent to injure a
1-12     candidate or influence the result of an election, the person
1-13     knowingly represents in a campaign communication that:
1-14                 (1)  a communication is from a tax-exempt organization,
1-15     when the written permission of that tax-exempt organization has not
1-16     been obtained; or
1-17                 (2)  a tax-exempt organization supports or opposes a
1-18     candidate or party, when the written authority of that tax-exempt
1-19     organization has not been obtained; or
1-20                 (3)  a communication is from a current or former
1-21     officer, member, or employee of a tax-exempt organization, when the
 2-1     written permission of that person has not been obtained; or
 2-2                 (4)  a current or former officer, member or employee of
 2-3     a tax-exempt organization supports or opposes a candidate or party,
 2-4     when the written permission of that person has not been obtained.
 2-5           (d)  A person commits an offense if, with intent to injure a
 2-6     candidate or influence the result of an election, the person
 2-7     knowingly makes any misrepresentation or failure to disclose facts,
 2-8     which misrepresentation or failure to disclose endangers the
 2-9     tax-exempt status of an organization under the Internal Revenue
2-10     Code or rule promulgated by the Internal Revenue Service, or under
2-11     the Texas Tax Code or rule promulgated by the Texas Comptroller.
2-12           (e)  An offense under this section is a Class A misdemeanor
2-13     and creates a private cause of action under Chapter 73 of the Civil
2-14     Practices and Remedy Code.
2-15           SECTION 3.  Section 38.001, Civil Practice and Remedies Code,
2-16     is amended to add the following:
2-17                 (9)  a recovery under Section 255.004 (c) of the
2-18     Election Code.
2-19           SECTION 4.  This Act takes effect September 31, 1999.
2-20           SECTION 5.   The importance of this legislation and the
2-21     crowded condition of the calendars in both houses create an
2-22     emergency and an imperative public necessity that the
2-23     constitutional rule requiring bills to be read on three several
2-24     days in each house be suspended, and this rule is hereby suspended,
2-25     and that this Act take effect and be in force from and after its
 3-1     passage, and it is so enacted.