78R4177 ATP-D
By: Ellis S.B. No. 1616
A BILL TO BE ENTITLED
AN ACT
relating to expenditures for certain advertising that identifies a
candidate; providing a criminal penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. 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.
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.
SECTION 3. (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.
(b) 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.
SECTION 4. This Act takes effect September 1, 2003.