By Counts H.B. No. 3049
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 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.
2-1 (b) If a corporation enters into an agreement prohibited by
2-2 Subsection (a) of this section:
2-3 (1) notwithstanding Section 4B(k) or 32 of this Act or
2-4 Section 11.11, Tax Code, property owned by the corporation is not
2-5 exempt from ad valorem taxation;
2-6 (2) notwithstanding Section 151.341, Tax Code, a
2-7 taxable item sold, leased, rented to or stored, used, or consumed
2-8 by a corporation is not exempt from sales and use taxes imposed by
2-9 Chapter 151, Tax Code; and
2-10 (3) notwithstanding Section 171.074, Tax Code, the
2-11 corporation is not exempt from the franchise tax imposed under
2-12 Chapter 171, Tax Code.
2-13 (c) A person other than a corporation who enters into an
2-14 agreement prohibited by Subsection (a) of this section commits an
2-15 offense. An offense under this section is a Class A misdemeanor.
2-16 (d) A person other than a corporation who enters into an
2-17 agreement prohibited by Subsection (a) of this section and who
2-18 makes a false representation to induce the corporation to enter
2-19 into the agreement commits an offense. An offense under this
2-20 section is a Class B misdemeanor.
2-21 (e) A person other than a corporation who enters into an
2-22 agreement prohibited by Subsection (a) of this section is liable to
2-23 the state for a civil penalty not to exceed $10,000.
2-24 (f) In this section:
2-25 (1) "Benefit" has the meaning assigned by Section
3-1 1.07, Penal Code.
3-2 (2) "Measure," "political committee," and "political
3-3 contribution" have the meanings assigned by Section 251.001,
3-4 Election Code.
3-5 SECTION 2. The Development Corporation Act of 1979 (Article
3-6 5190.6, Vernon's Texas Civil Statutes) is amended by adding Section
3-7 32B to read as follows:
3-8 (a) An individual residing within the jurisdiction of an
3-9 economic development corporation created under this Act may bring a
3-10 civil action alleging a violation of Section 32A of this Act and
3-11 seeking to:
3-12 (1) enforce the terms or requirements of this Act;
3-13 (2) enforce the terms or require compliance with the
3-14 articles of incorporation or by-laws of this Act; or
3-15 (3) declare null and void any act or agreement of the
3-16 corporation that violates this Act, or the terms of the articles of
3-17 incorporation or the by-laws of the economic development
3-18 corporation.
3-19 SECTION 3. This Act takes effect September 1, 1999.
3-20 SECTION 4. Section 32A, Development Corporation Act of 1979
3-21 (Article 5190.6, Vernon's Texas Civil Statutes), as added by this
3-22 Act, applies only to an agreement between a nonprofit corporation
3-23 organized under the Development Corporation Act of 1979 (Article
3-24 5190.6, Vernon's Texas Civil Statutes) and a person who engages in
3-25 political activities for compensation that is entered on or after
4-1 September 1, 1999.
4-2 SECTION 5. The importance of this legislation and the
4-3 crowded condition of the calendars in both houses create an
4-4 emergency and an imperative public necessity that the
4-5 constitutional rule requiring bills to be read on three several
4-6 days in each house be suspended, and this rule is hereby suspended.