By Madden                                             H.B. No. 2433
         77R2054 ESH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to reporting of legislative advertising; providing
 1-3     criminal and civil penalties.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  The heading to Chapter 305, Government Code, is
 1-6     amended to read as follows:
 1-7      CHAPTER 305.  REGISTRATION OF LOBBYISTS; LEGISLATIVE ADVERTISING
 1-8           SECTION 2. Section 305.002, Government Code, is amended by
 1-9     adding Subdivision (12) to read as follows:
1-10                 (12)  "Legislative advertising" means a communication
1-11     that supports, opposes, or proposes legislation and that:
1-12                       (A)  in return for consideration, is published in
1-13     a newspaper, magazine, or other periodical or is broadcast by radio
1-14     or television; or
1-15                       (B)  appears in a pamphlet, circular, flier,
1-16     billboard or other sign, bumper sticker, button, or similar form of
1-17     written communication.
1-18           SECTION 3. The heading to Subchapter B, Chapter 305,
1-19     Government Code, is amended to read as follows:
1-20                    SUBCHAPTER B.  PROHIBITED ACTIVITIES;
1-21                           LEGISLATIVE ADVERTISING
1-22           SECTION 4. Subchapter B, Chapter 305, Government Code, is
1-23     amended by adding Section 305.028 to read as follows:
1-24           Sec. 305.028.  REPORTS CONCERNING LEGISLATIVE ADVERTISING.
 2-1     (a)  In this section, "contribution" means a direct or indirect
 2-2     transfer of money, goods, services, or any other thing of value
 2-3     made with the intent that it be used in connection with political
 2-4     activities, including influencing legislation or publishing,
 2-5     broadcasting, or distributing legislative advertising.  The term
 2-6     includes an agreement made or other obligation incurred, whether
 2-7     legally enforceable or not, to make a transfer.  The term also
 2-8     includes a loan or extension of credit and a guarantee of a loan or
 2-9     extension of credit, other than a loan made in the due course of
2-10     business by a corporation that is legally engaged in the business
2-11     of lending money and that  has conducted the business continuously
2-12     for more than one year before the loan is made.
2-13           (b)  A person who sponsors legislative advertising during the
2-14     period beginning January 1 of a year and continuing through June 30
2-15     of that year  shall file with the commission a written report
2-16     covering that period not later than July 15 of that year.  A person
2-17     who sponsors legislative advertising during the period beginning
2-18     July 1 of a year and continuing through December 31 of that year
2-19     shall file with the commission a written report covering that
2-20     period not later than January 15 of the following year.  For
2-21     purposes of this subsection, legislative advertising is sponsored
2-22     on the first date in a reporting period that:
2-23                 (1)  the advertisement is published or broadcast, in
2-24     the case of legislative advertising that is published or broadcast;
2-25     or
2-26                 (2)  the advertisement is distributed, in the case of
2-27     legislative advertising that appears in a pamphlet, circular,
 3-1     flier, billboard or other sign, bumper sticker, button, or similar
 3-2     form of written communication.
 3-3           (c)  Each report filed under this section must include:
 3-4                 (1)  the name, address, and telephone number of the
 3-5     person making the report;
 3-6                 (2)  the name, address, and telephone number of the
 3-7     individual signing the report and that individual's relationship to
 3-8     the person making the  report;
 3-9                 (3)  a complete description of each piece of
3-10     legislative advertising sponsored by the person making the report,
3-11     including the dates on which the legislative advertising was
3-12     published, broadcast, or distributed;
3-13                 (4)  the amount of expenditures for legislative
3-14     advertising that in the aggregate exceed $100 and that are made
3-15     during the reporting period, the full name and address of the
3-16     persons to whom the expenditures are made, and the dates and
3-17     purposes of the expenditures;
3-18                 (5)  the total amount or a specific listing of the
3-19     expenditures for legislative advertising of $100 or less made
3-20     during the reporting period;
3-21                 (6)  the total amount of all expenditures for
3-22     legislative advertising made during the reporting period;
3-23                 (7)  the amount of contributions from each person that
3-24     in the aggregate exceed $100 and that are accepted during the
3-25     reporting period by the person required to file the report, the
3-26     full name, full address, and principal occupation of the person
3-27     making the contributions, and the dates of the contributions;
 4-1                 (8)  the amount of contributions from each person that
 4-2     in the aggregate exceed $100 and that were accepted during a
 4-3     previous reporting period for which the person was not required to
 4-4     file a report, the full name, full address, and principal
 4-5     occupation of the person making the contributions, and the dates of
 4-6     the contributions;
 4-7                 (9)  the total amount or a specific listing of the
 4-8     contributions of $100 or less accepted during the reporting period;
 4-9                 (10)  the total amount or a specific listing of the
4-10     contributions of $100 or less accepted during a previous reporting
4-11     period for which the person was not required to file a report;
4-12                 (11)  the total amount of all contributions accepted
4-13     during the reporting period;
4-14                 (12)  the total amount or a specific listing of the
4-15     contributions of $100 or less accepted during a previous reporting
4-16     period for which the person was not required to file a report; and
4-17                 (13)  the total amount of all contributions accepted
4-18     during the reporting period or during a previous reporting period
4-19     for which the person was not required to file a report.
4-20           (d)  A report under this section must be signed by an
4-21     individual authorized to file the report on behalf of the person
4-22     responsible for making the report.
4-23           (e)  Each person required to file a report under this section
4-24     shall maintain a record of all reportable activity for at least two
4-25     years beginning on the filing deadline for the report containing
4-26     the information in the record.
4-27           (f)  This section does not apply to an individual who, not
 5-1     acting in concert with another person, sponsors legislative
 5-2     advertising.
 5-3           SECTION 5.  Section 305.027(e), Government Code, is repealed.
 5-4           SECTION 6.  Section 305.028, Government Code, as added by
 5-5     this Act, applies only to:
 5-6                 (1)  legislative advertising, as defined by Section
 5-7     305.002(12), Government Code, as added by this Act, that is
 5-8     printed, published, or broadcast on or after January 1, 2002; and
 5-9                 (2)  a contribution received on or after January 1,
5-10     2002, by a person who sponsors legislative advertising.
5-11           SECTION 7.  This Act takes effect January 1, 2002.