Amend the Wolens amendment to CSHB 1606 as follows:                          
	(1)  Between pages 30 and 31, insert the following:                            
	SECTION 2.08.  Subchapter D, Chapter 253, Election Code, is 
amended by adding Section 253.105 to read as follows:
	Sec. 253.105.  EXPENDITURES FOR CERTAIN TARGETED 
ADVERTISING PROHIBITED.  (a)  In this section:
		(1)  "Advertising" means:                                              
			(A)  a broadcast, cable, or satellite 
communication via television or radio that is a paid advertisement 
or purchased program time; or
			(B)  a paid message delivered through direct 
mailing.               
		(2)  "Covered preelection period," with respect to a 
person, means the period:
			(A)  beginning on:                                                    
				(i)  the 60th day before the date of a 
general or special election in which the person is a candidate; or
				(ii)  the 30th day before the date of a 
primary election in which the person is a candidate; and
			(B)  ending on election day.                                          
		(3)  Advertising is "targeted" in connection with an 
election if the advertisement is:
			(A)  a broadcast, cable, or satellite 
communication distributed to reach 10,000 or more persons eligible 
to vote for the candidate; or
			(B)  a message delivered through direct mailing 
distributed to reach 2,500 or more persons eligible to vote for the 
candidate.
	(b)  For purposes of this section, advertising clearly 
identifies a candidate if the candidate's name or likeness appears 
in the advertising or the identity of the candidate is apparent by 
unambiguous reference.
	(c)  This section applies only to expenditures  made for 
advertising that clearly identifies a candidate for an office of 
the state government or an office of a county or municipal 
government.
	(d)  Except as provided by Subsection (e), in a covered 
preelection period, a corporation or labor organization may not 
knowingly make an expenditure from its own property for targeted 
advertising that clearly identifies a candidate.
	(e)  This section does not apply to:                                    
		(1)  a reference to a clearly identified candidate in a 
news story, commentary, editorial, or work intended for 
entertainment distributed through the facilities of a broadcasting 
station, newspaper, magazine, or other publication, unless the 
facilities are owned or controlled by a political party, political 
committee, or candidate;
		(2)  nonpartisan activity designed to encourage 
persons to vote or to register to vote; or
		(3)  a communication by the labor organization or 
corporation to its members, stockholders, or executive or 
administrative personnel, if the labor organization or corporation 
is not organized primarily for the purpose of influencing the 
election of a person to public office.
	(f)  A person who violates this section commits an offense.  
An offense under this section is a felony of the third degree.
	(2)  On page 35, between lines 15 and 16, insert the 
following new section, appropriately numbered:
	SECTION 2.___.  Subchapter B, Chapter 254, Election Code, is 
amended by adding Section 254.0392 to read as follows:
	Sec. 254.0392.  REPORTS CONCERNING CERTAIN TARGETED 
ADVERTISING.  (a)  In this section, "advertising," "covered 
preelection period," and "targeted" have the meanings assigned by 
Section 253.105.
	(b)  For purposes of this section, advertising clearly 
identifies a candidate if the candidate's name or likeness appears 
in the advertising or the identity of the candidate is apparent by 
unambiguous reference.
	(c)  This section applies only to expenditures made for 
advertising that clearly identifies a candidate for an office of 
the state government or an office of a county or municipal 
government.
	(d)  Except as provided by Subsection (h) or (i), a person 
who makes or enters into contracts to make expenditures in a covered 
preelection period that in the aggregate exceed $2,500 in a 
calendar year for targeted advertising that clearly identifies a 
candidate shall file a report of contributions and expenditures as 
provided by this section.
	(e)  A person to whom this section applies shall file two 
reports for each year.  The first report shall be filed not later 
than July 15 and covers the period beginning January 1 and 
continuing through June 30.  The second report shall be filed not 
later than January 15 and covers the period beginning July 1 and 
continuing through December 31.  If a person exceeds the limit 
prescribed by Subsection (d) after the filing deadline for the 
first report required under this section, the person shall file a 
report not later than the fifth day after the date the limit is 
exceeded.
	(f)  Each report under this section must include:                       
		(1)  the full name and address of:                                     
			(A)  the person filing the report;                                    
			(B)  any person sharing or exercising control over 
the activities of the person filing the report; and
			(C)  the custodian of the books and accounts of 
the person filing the report;
		(2)  the principal place of business of the person 
filing  the report, if the person is not an individual;
		(3)  the amount of each expenditure in a covered 
preelection period for targeted advertising that clearly 
identifies a candidate, that exceeds $50, and that is made during 
the reporting period, and the full name and address of the persons 
to whom the expenditures are made;
		(4)  the election to which each targeted advertisement 
that clearly identifies a candidate and that is made during the 
reporting period relates, and the name of each candidate clearly 
identified by the advertising; and
		(5)  the amount of contributions from each person that 
in the aggregate exceed $250 and that are accepted during the 
reporting period by the person filing the report, and the full name 
and address of the person making the contributions.
	(g)  Targeted advertising that clearly identifies a 
candidate and that is made in a covered preelection period with the 
cooperation or prior consent of, in consultation with, or at the 
suggestion of the candidate or a person acting with the candidate's 
knowledge and consent is considered:
		(1)  a campaign contribution to the candidate from the 
person making the expenditure for the advertising; and
		(2)  a campaign expenditure by the candidate.                          
	(h)  This section does not apply to:                                    
		(1)  a reference to a clearly identified candidate in a 
news story, commentary, editorial, or work intended for 
entertainment distributed through the facilities of a broadcasting 
station, newspaper, magazine, or other publication, unless the 
facilities are owned or controlled by a political party, political 
committee, or candidate;
		(2)  nonpartisan activity designed to encourage 
persons to vote or to register to vote; or
		(3)  a communication by any membership organization or 
corporation to its members, stockholders, or executive or 
administrative personnel, if the membership organization or 
corporation is not organized primarily for the purpose of 
influencing the election of a person to public office.
	(i)  A person is not required to file a report of 
contributions and expenditures under this section if the 
expenditures are disclosed in a report filed with the Federal 
Election Commission.
	(3)  On page 40, between lines 24 and 25, insert the 
following new section, appropriately numbered:
	SECTION ____.  (a)  Section 253.105, Election Code, as added 
by this Act, applies only to an expenditure for advertising that is 
made on or after September 1, 2003.  An expenditure for advertising 
that is made before September 1, 2003, is governed by the law in 
effect at the time the expenditure was made.
	(4)  On page 40, line 25, strike "SECTION 2.24. (a)" and 
substitute "(b)".   
	(5)  On page 41, between lines 3 and 4, insert the following 
new subsection, appropriately lettered:
	(  )  Section 254.0392, Election Code, as added by this Act, 
applies only to the reporting of an expenditure for advertising 
that is made on or after September 1, 2003.  An expenditure for 
advertising that is made before September 1, 2003, is governed by 
the law in effect at the time the expenditure was made and is not 
aggregated with expenditures made on or after September 1, 2003.
	(6)  Reletter the existing subsections of Section 2.24 of the 
bill accordingly.
	(7)  Renumber the existing sections of Article 2 of the bill 
accordingly.