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.