By Shields H.B. No. 408
77R22 ESH-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to misrepresentation concerning political activity of a
1-3 tax-exempt organization; providing a criminal penalty.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 255, Election Code, is amended by adding
1-6 Section 255.009 to read as follows:
1-7 Sec. 255.009. MISREPRESENTATION OF POLITICAL ACTIVITY OF
1-8 TAX-EXEMPT ORGANIZATION. (a) In this section, "tax-exempt
1-9 organization" includes a parent organization of a tax-exempt
1-10 organization.
1-11 (b) A person commits an offense if, with intent to injure a
1-12 candidate or influence the result of an election and without the
1-13 written permission of the organization, the person knowingly
1-14 represents in a campaign communication that:
1-15 (1) the communication is from a tax-exempt
1-16 organization; or
1-17 (2) a tax-exempt organization supports or opposes a
1-18 candidate or political party.
1-19 (c) A person commits an offense if, with intent to injure a
1-20 candidate or influence the result of an election and without the
1-21 written permission of the officer, member, or employee, as
1-22 appropriate, the person knowingly represents in a campaign
1-23 communication that:
1-24 (1) the communication is from a former or current
2-1 officer, member, or employee of a tax-exempt organization; or
2-2 (2) a former or current officer, member, or employee
2-3 of a tax-exempt organization supports or opposes a candidate or
2-4 political party.
2-5 (d) A person commits an offense if:
2-6 (1) with intent to injure a candidate or influence the
2-7 result of an election, the person knowingly makes a
2-8 misrepresentation or fails to disclose facts relating to an
2-9 activity of a tax-exempt organization or a current or former
2-10 officer, member, or employee of a tax-exempt organization; and
2-11 (2) the misrepresentation or failure to disclose
2-12 endangers the tax-exempt status of the organization under:
2-13 (A) the Internal Revenue Code or regulations
2-14 adopted by the Internal Revenue Service; or
2-15 (B) the Tax Code or rules adopted by the
2-16 comptroller.
2-17 (e) An offense under this section is a Class A misdemeanor.
2-18 (f) A person injured by a violation of this section has a
2-19 cause of action under Chapter 73, Civil Practice and Remedies Code.
2-20 (g) A person is entitled to recover reasonable attorney's
2-21 fees if the person prevails in:
2-22 (1) an action under Chapter 73, Civil Practice and
2-23 Remedies Code, that arises from a violation of this section; or
2-24 (2) a judicial or administrative proceeding that
2-25 relates to the tax-exempt status of an organization and that arises
2-26 from a violation of Subsection (d).
2-27 SECTION 2. This Act takes effect September 1, 2001.
3-1 SECTION 3. Section 255.009, Election Code, as added by this
3-2 Act, applies only to a campaign communication, as defined by
3-3 Section 251.001, Election Code, that is first distributed on or
3-4 after September 1, 2001.