By Danburg H.B. No. 1957 76R7106 ESH-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to certain agreements between economic development 1-3 corporations and persons engaged in certain political activities; 1-4 providing civil and criminal penalties. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. The Development Corporation Act of 1979 (Article 1-7 5190.6, Vernon's Texas Civil Statutes) is amended by adding Section 1-8 32A to read as follows: 1-9 Sec. 32A. (a) A corporation may not knowingly enter into an 1-10 agreement under which the corporation directly or indirectly 1-11 provides a benefit to a person who engages in political activities 1-12 for compensation, including a person who, in connection with a 1-13 campaign for elective office or on a measure, for compensation 1-14 provides: 1-15 (1) advice to candidates, political committees, or 1-16 organizations on political strategy, voter demographics, raising 1-17 political contributions, or the content or distribution of 1-18 political advertising; 1-19 (2) assistance in obtaining the endorsement or support 1-20 of an individual or organization; or 1-21 (3) polling. 1-22 (b) If a corporation enters into an agreement prohibited by 1-23 Subsection (a) of this section: 1-24 (1) notwithstanding Section 4B(k) or 32 of this Act or 2-1 Section 11.11, Tax Code, property owned by the corporation is not 2-2 exempt from ad valorem taxation; 2-3 (2) notwithstanding Section 151.341, Tax Code, a 2-4 taxable item sold, leased, rented to or stored, used, or consumed 2-5 by a corporation is not exempt from sales and use taxes imposed by 2-6 Chapter 151, Tax Code; and 2-7 (3) notwithstanding Section 171.074, Tax Code, the 2-8 corporation is not exempt from the franchise tax imposed under 2-9 Chapter 171, Tax Code. 2-10 (c) A person other than a corporation who enters into an 2-11 agreement prohibited by Subsection (a) of this section commits an 2-12 offense. An offense under this section is a Class A misdemeanor. 2-13 (d) A person other than a corporation who enters into an 2-14 agreement prohibited by Subsection (a) of this section is liable to 2-15 the state for a civil penalty not to exceed $10,000. 2-16 (e) In this section: 2-17 (1) "Benefit" has the meaning assigned by Section 2-18 1.07, Penal Code. 2-19 (2) "Measure," "political committee," and "political 2-20 contribution" have the meanings assigned by Section 251.001, 2-21 Election Code. 2-22 SECTION 2. This Act takes effect September 1, 1999. 2-23 SECTION 3. Section 32A, Development Corporation Act of 1979 2-24 (Article 5190.6, Vernon's Texas Civil Statutes), as added by this 2-25 Act, applies only to an agreement between a nonprofit corporation 2-26 organized under the Development Corporation Act of 1979 (Article 2-27 5190.6, Vernon's Texas Civil Statutes) and a person who engages in 3-1 political activities for compensation that is entered on or after 3-2 September 1, 1999. 3-3 SECTION 4. The importance of this legislation and the 3-4 crowded condition of the calendars in both houses create an 3-5 emergency and an imperative public necessity that the 3-6 constitutional rule requiring bills to be read on three several 3-7 days in each house be suspended, and this rule is hereby suspended.