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.