By Thompson                                           H.B. No. 3496
         77R8838 ESH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to political contributions to candidates for and members
 1-3     of the State Board of Education; providing a criminal penalty.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 7.108, Education Code, is amended to read
 1-6     as follows:
 1-7           Sec. 7.108.  RESTRICTIONS [PROHIBITION] ON POLITICAL
 1-8     CONTRIBUTIONS AND [CONTRIBUTION OR] ACTIVITY. (a)  A person
 1-9     [interested in selling bonds of any type or a person engaged in
1-10     manufacturing, shipping, selling, or advertising textbooks or
1-11     otherwise connected with the textbook business] commits an offense
1-12     if:
1-13                 (1)  the person knowingly makes or authorizes a
1-14     political contribution to or takes part in, directly or indirectly,
1-15     the campaign of a candidate for or member of [any person seeking
1-16     election to or serving on] the board; and
1-17                 (2)  the person is:
1-18                       (A)  engaged in manufacturing, shipping, selling,
1-19     or advertising textbooks or otherwise connected with the textbook
1-20     business;
1-21                       (B)  a securities broker, investment consultant,
1-22     financial advisor, or other person who:
1-23                             (i)  has a direct or indirect interest in
1-24     the investment or management of the permanent school fund; or
 2-1                             (ii)  seeks or intends to seek a direct or
 2-2     indirect interest in the investment or management of the permanent
 2-3     school fund; or
 2-4                       (C)  a party to an executory contract with the
 2-5     board.
 2-6           (b)  A candidate for or member of the board commits an
 2-7     offense if the person knowingly accepts a political contribution
 2-8     from a person described by Subsection (a)(2).
 2-9           (c)  A candidate for, member of, former candidate for, or
2-10     former member of the board may not knowingly use a political
2-11     contribution to make a campaign expenditure for an office other
2-12     than the office of member of the board or to make an officeholder
2-13     expenditure in connection with an office other than the office of
2-14     member of the board if the contribution was accepted while the
2-15     candidate or officeholder:
2-16                 (1)  was a candidate for the board; or
2-17                 (2)  held the office of member of the board.
2-18           (d)  For purposes of this section, a political contribution
2-19     to or political expenditure by a specific-purpose committee for the
2-20     purpose of supporting a candidate for member of the board, opposing
2-21     the candidate's opponent, or assisting the candidate as an
2-22     officeholder is considered to be a contribution to or expenditure
2-23     by the candidate.
2-24           (e)  An offense under this section [Subsection (a)] is a
2-25     Class A [B] misdemeanor.
2-26           (f) [(c)]  In this section:
2-27                 (1)  "Campaign expenditure," "candidate," "officeholder
 3-1     expenditure," "political ["Political] contribution," "political
 3-2     expenditure," and "specific-purpose committee" have the meanings
 3-3     [has the meaning] assigned by Section 251.001, Election Code.
 3-4                 (2)  "Textbook" has the meaning assigned by Section
 3-5     31.002.
 3-6           SECTION 2.  (a)  The change in law made by this Act applies
 3-7     only to an offense under Section 7.108, Education Code, that is
 3-8     committed on or after September 1, 2001.  For the purposes of this
 3-9     section, an offense is committed before September 1, 2001, if any
3-10     element of the offense occurs before that date.
3-11           (b)  An offense under Section 7.108, Education Code, that is
3-12     committed before September 1, 2001, is covered by the law in effect
3-13     when the offense was committed, and the former law is continued in
3-14     effect for that purpose.
3-15           SECTION 3.  This Act takes effect September 1, 2001.