79R7318 ATP-F
By: Strama H.B. No. 3291
A BILL TO BE ENTITLED
AN ACT
relating to political contributions and expenditures; providing
civil and criminal penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 251.001, Election Code, is amended by
adding Subdivisions (21)-(27) to read as follows:
(21) "Membership organization" means a trade
association, cooperative, or corporation without capital stock or a
local, national, or international labor organization that:
(A) is composed of members, some or all of whom
are vested with the authority to operate or administer the
organization according to the organization's articles, bylaws,
constitution, or other formal organizational documents;
(B) expressly states the qualifications and
requirements for membership in its articles, bylaws, constitution,
or other formal organizational documents;
(C) makes its articles, bylaws, constitution, or
other formal organizational documents available to its members upon
request;
(D) expressly solicits persons to become
members;
(E) expressly acknowledges the acceptance of
membership by sending a membership card, including the member's
name on a membership newsletter list, or using another means; and
(F) is not organized primarily for the purpose of
influencing the nomination for election, or election, of an
individual to public office.
(22) "Member" means a person who:
(A) satisfies the requirements for membership in
a membership organization;
(B) affirmatively accepts the membership
organization's invitation to become a member;
(C) has a significant financial attachment to,
including a significant investment or ownership interest in, the
membership organization or pays membership dues, other than
payments to a separate segregated fund, at least annually to the
organization in a specific amount as determined by the
organization;
(D) has a significant organizational attachment
to the membership organization that includes affirmation of
membership on at least an annual basis; and
(E) has an opportunity to participate in any part
of the organization's decision-making.
(23) "Connected organization" means a corporation
with or without capital stock, labor organization, membership
organization, or cooperative or trade association, other than a
political committee, that directly or indirectly establishes or
administers a separate segregated fund.
(24) "Establishment or administration expense" means
an expenditure incurred in the normal course of business by an
organization, regardless of whether the organization engages in
political activity. An expenditure is an establishment or
administration expense if the expenditure:
(A) is for:
(i) office space;
(ii) phones;
(iii) salaries for routine clerical and
administrative assistance;
(iv) utilities;
(v) general office supplies;
(vi) the organization's legal and
accounting fees for compliance with this title;
(vii) office equipment; or
(viii) routine administrative expenses
incurred in setting up and administering a separate segregated
fund; and
(B) is not for political activity, including:
(i) political consulting;
(ii) telephone banks;
(iii) issue advocacy;
(iv) electioneering brochures and direct
mail;
(v) voter registration and
get-out-the-vote drives;
(vi) broadcast issue advertising or
electioneering communications;
(vii) other political advertising;
(viii) political fund-raising;
(ix) voter identification, lists, or
databases; or
(x) any other expenditure directly or
indirectly connected with an election or campaign for public
office.
(25) "Restricted class" means the group of individuals
who:
(A) for a corporation, are the stockholders,
employees, and families of the stockholders and employees of the
corporation or the corporation's subsidiaries, branches,
divisions, affiliates, or departments;
(B) for a labor organization, are the members,
employees, and families of the members and employees of the labor
organization; or
(C) for a membership organization:
(i) are the members, employees, and
families of employees of the organization; or
(ii) with respect to a solicitation for a
campaign contribution, are the stockholders, employees, and
families of stockholders and employees of a corporate member of a
membership organization that separately and specifically approves
the solicitation and does not approve a solicitation by any other
membership organization for the same calendar year.
(26) "Executive or administrative personnel" means
individuals employed by a corporation, labor organization, or
membership organization who are paid on a salary rather than hourly
basis and who have policymaking, managerial, professional, or
supervisory responsibilities. The term:
(A) includes:
(i) individuals who administer the entity's
business, including officers, other executives, and managers of a
plant, division, or section of the corporation or organization;
(ii) individuals practicing recognized
professions, including lawyers and engineers; and
(iii) individuals who are paid on a
commission basis, have policymaking, managerial, professional, or
supervisory responsibility and are employees for the purpose of
income withholding tax on employee wages under the Internal Revenue
Code; and
(B) does not include:
(i) professionals who are represented by a
labor organization;
(ii) salaried foremen or supervisors having
direct supervision over hourly employees;
(iii) former or retired personnel who are
not stockholders; or
(iv) individuals who may be paid by the
entity, including consultants, but who are not employees for the
purpose of income withholding tax on employee wages under the
Internal Revenue Code.
(27) "Separate segregated fund" means a fund
established under Section 253.1001.
SECTION 2. Section 251.006(a), Election Code, is amended to
read as follows:
(a) Except as provided by Subsection (b), this title does
not apply to a candidate for an office of the federal government.
This title does not apply to a political contribution accepted or
political expenditure made by a political committee in connection
with a campaign for federal office.
SECTION 3. The heading to Section 253.098, Election Code,
is amended to read as follows:
Sec. 253.098. COMMUNICATION WITH RESTRICTED CLASS
[STOCKHOLDERS OR MEMBERS].
SECTION 4. Section 253.098(a), Election Code, is amended to
read as follows:
(a) A corporation, [or] labor organization, or membership
organization may make [one or more] direct campaign expenditures
from its own property for the purpose of communicating directly
with its restricted class [stockholders or members, as applicable,
or with the families of its stockholders or members].
SECTION 5. Section 253.099(a), Election Code, is amended to
read as follows:
(a) A corporation, [or] labor organization, or membership
organization may make [one or more] expenditures from its own
property to finance nonpartisan voter registration and
get-out-the-vote campaigns aimed at its restricted class
[stockholders or members, as applicable, or at the families of its
stockholders or members].
SECTION 6. Subchapter D, Chapter 253, Election Code, is
amended by adding Sections 253.1001 and 253.1002 to read as
follows:
Sec. 253.1001. EXPENDITURES FOR SEPARATE SEGREGATED FUND.
(a) A corporation, labor organization, or membership organization,
other than a political committee, may make political expenditures
from its own treasury funds and property to finance the
establishment or administration expenses of not more than one
separate segregated fund.
(b) For purposes of this section, all parents,
subsidiaries, branches, divisions, and affiliates of a
corporation, labor organization, or membership organization count
as a single entity.
(c) A corporation or labor organization may make a political
expenditure from its own treasury funds or property for
establishment or administration expenses of one membership
organization of which it is a member.
(d) An entity that is a member of a connected organization
is not considered to have directly or indirectly established or
administered the separate segregated fund established or
administered by the connected organization of which the entity is a
member.
(e) Money in a separate segregated fund from corporate,
labor organization, or membership organization treasury funds
shall be kept in a separate account and may not be commingled with
any other funds. A person who knowingly violates this subsection
commits an offense. An offense under this subsection is a Class A
misdemeanor.
(f) A separate segregated fund shall be treated as a
general-purpose committee and shall comply with the provisions of
this title applicable to a general-purpose committee as if the
separate segregated fund were a general-purpose committee.
Sec. 253.1002. SOLICITATION FOR SEPARATE SEGREGATED FUNDS.
(a) Subject to Subsection (c), a connected organization may make a
political expenditure from its own treasury funds for expenses to
solicit or facilitate political contributions from its restricted
class for the organization's separate segregated fund.
(b) A connected organization may facilitate a political
contribution from its restricted class under Subsection (a) by
enabling a contribution to be made by a payroll deduction, checking
a form to indicate a contribution is authorized, instituting a
periodic payment plan, or enclosing a return envelope in a
solicitation request. A connected organization may solicit a
voluntary political contribution from its restricted class under
Subsection (a) by mailings, oral requests, pamphlets, and other
means.
(c) A corporation or labor organization may not make more
than two written solicitations for contributions to the separate
segregated fund in a calendar year to employees who are not
stockholders, executive or administrative personnel, or the
families of stockholders or executive or administrative personnel.
SECTION 7. The heading to Section 253.101, Election Code,
is amended to read as follows:
Sec. 253.101. UNLAWFUL CONTRIBUTION OR EXPENDITURE [BY
COMMITTEE].
SECTION 8. Section 253.101(a), Election Code, is amended to
read as follows:
(a) A person, including a connected [political committee
assisted by a corporation or labor] organization, [under Section
253.100] may not make a political contribution or political
expenditure in whole or part from money that is known by the person
or a member or officer of the person [political committee] to be
dues, fees, or other money required as a condition of employment or
condition of membership in a labor organization.
SECTION 9. Sections 253.102(a) and (b), Election Code, are
amended to read as follows:
(a) A corporation, [or] labor organization, membership
organization, or other person [or a political committee assisted by
a corporation or labor organization under Section 253.100] commits
an offense if the person [it] uses or threatens to use physical
force, job discrimination, or financial reprisal to obtain money or
any other thing of value to be used to influence the result of an
election or to assist an officeholder.
(b) A political committee assisted by a corporation or labor
organization [under Section 253.100] commits an offense if it
accepts or uses money or any other thing of value that is known by a
member or officer of the political committee to have been obtained
in violation of Subsection (a).
SECTION 10. Section 254.151, Election Code, is amended to
read as follows:
Sec. 254.151. ADDITIONAL CONTENTS OF REPORTS. In addition
to the contents required by Section 254.031, each report by a
campaign treasurer of a general-purpose committee must include:
(1) the committee's full name and address;
(2) the full name, residence or business street
address, and telephone number of the committee's campaign
treasurer;
(3) the identity and date of the election for which the
report is filed, if applicable;
(4) the name of each identified candidate or measure
or classification by party of candidates supported or opposed by
the committee, indicating whether the committee supports or opposes
each listed candidate, measure, or classification by party of
candidates;
(5) the name of each identified officeholder or
classification by party of officeholders assisted by the committee;
(6) the principal occupation of each person from whom
political contributions that in the aggregate exceed $50 are
accepted during the reporting period;
(7) the amount of each political expenditure in the
form of a political contribution made to a candidate, officeholder,
or another political committee that is returned to the committee
during the reporting period, the name of the person to whom the
expenditure was originally made, and the date it is returned;
(8) on a separate page or pages of the report, the
identification of any contribution from a corporation or labor
organization made and accepted under Subchapter D, Chapter 253; and
(9) on a separate page or pages of the report, the
identification of the name of the donor, the amount, and the date of
any expenditure made by a corporation or labor organization to:
(A) establish or administer the political
committee; or
(B) finance the solicitation of political
contributions to the committee [under Section 253.100].
SECTION 11. Subchapter F, Chapter 254, Election Code, is
amended by adding Section 254.1511 to read as follows:
Sec. 254.1511. REPORTING OF EXPENDITURES BY SEPARATE
SEGREGATED FUND. A separate segregated fund shall report
expenditures made under Sections 253.098, 253.099, 253.1001, and
253.1002 on a separate schedule.
SECTION 12. Sections 253.098(b), 253.099(b), and 253.100,
Election Code, are repealed.
SECTION 13. The changes in law made by this Act apply only
to a contribution or expenditure made on or after September 1, 2005.
A contribution or expenditure made before September 1, 2005, is
governed by the law in effect immediately before that date, and the
former law is continued in effect for that purpose.
SECTION 14. This Act takes effect September 1, 2005.