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.