By Counts H.B. No. 3049
76R14450 PAM-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to prohibiting certain agreements between economic
1-3 development corporations and persons engaged in certain political
1-4 activities; 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) In this section:
1-10 (1) "Benefit" has the meaning assigned by Section
1-11 1.07, Penal Code.
1-12 (2) "Measure," "political committee," "political
1-13 contribution," and "political advertising" have the meanings
1-14 assigned by Section 251.001, Election Code.
1-15 (b) A corporation may not knowingly enter into an agreement
1-16 under which the corporation directly or indirectly provides a
1-17 benefit to a person who engages in political activities for
1-18 compensation, including a person who, in connection with a campaign
1-19 for elective office or on a measure, for compensation provides:
1-20 (1) advice to a candidate, political committee, or
1-21 other organization on political strategy, voter demographics,
1-22 raising political contributions, or the content or distribution of
1-23 political advertising;
1-24 (2) assistance in obtaining the endorsement or support
2-1 of an individual or entity; or
2-2 (3) services related to conducting a political poll or
2-3 analyzing information received from a political poll.
2-4 (c) If a corporation enters into an agreement prohibited by
2-5 Subsection (b) of this section:
2-6 (1) notwithstanding Section 4B(k) or 32 of this Act or
2-7 Section 11.11, Tax Code, property owned by the corporation is not
2-8 exempt from ad valorem taxation;
2-9 (2) notwithstanding Section 151.341, Tax Code, a
2-10 taxable item sold, leased, or rented to or stored, used, or
2-11 consumed by a corporation is not exempt from sales and use taxes
2-12 imposed by Chapter 151, Tax Code; and
2-13 (3) notwithstanding Section 171.074, Tax Code, the
2-14 corporation is not exempt from the franchise tax imposed by Chapter
2-15 171, Tax Code.
2-16 (d) A person other than a corporation who enters into an
2-17 agreement prohibited by Subsection (b) of this section commits an
2-18 offense. An offense under this subsection is a Class A
2-19 misdemeanor.
2-20 (e) A person other than a corporation who enters into an
2-21 agreement prohibited by Subsection (b) of this section and who
2-22 makes a false representation to induce the corporation to enter
2-23 into the agreement commits an offense. An offense under this
2-24 subsection is a Class B misdemeanor.
2-25 (f) A person other than a corporation who enters into an
2-26 agreement prohibited by Subsection (b) of this section is liable to
2-27 the state for a civil penalty not to exceed $10,000.
3-1 (g) An individual who resides in the jurisdiction of a
3-2 corporation may bring a civil action alleging a violation of this
3-3 section and seeking to:
3-4 (1) enforce the terms of this Act;
3-5 (2) enforce the terms of the articles of incorporation
3-6 or bylaws of the corporation adopted as provided by this Act; or
3-7 (3) void an act or agreement of the corporation that
3-8 violates this Act or the terms of the articles of incorporation or
3-9 the bylaws of the corporation.
3-10 SECTION 2. This Act takes effect September 1, 1999.
3-11 SECTION 3. Section 32A, Development Corporation Act of 1979
3-12 (Article 5190.6, Vernon's Texas Civil Statutes), as added by this
3-13 Act, applies only to an agreement between a nonprofit corporation
3-14 organized under the Development Corporation Act of 1979 (Article
3-15 5190.6, Vernon's Texas Civil Statutes) and a person who engages in
3-16 political activities for compensation that is entered on or after
3-17 September 1, 1999.
3-18 SECTION 4. The importance of this legislation and the
3-19 crowded condition of the calendars in both houses create an
3-20 emergency and an imperative public necessity that the
3-21 constitutional rule requiring bills to be read on three several
3-22 days in each house be suspended, and this rule is hereby suspended.