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A BILL TO BE ENTITLED
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AN ACT
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relating to political contributions and expenditures; providing |
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criminal penalties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 251.001, Election Code, is amended by |
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amending Subdivisions (2) and (8) and adding Subdivisions (21) |
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through (28) to read as follows: |
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(2) "Contribution" means a direct or indirect transfer |
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of money, goods, services, or any other thing of value and includes |
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an agreement made or other obligation incurred, whether legally |
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enforceable or not, to make a transfer. The term: |
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(A) includes: |
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(i) a loan or extension of credit, other |
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than those expressly excluded by this subdivision; |
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(ii) [, and] a guarantee of a loan or |
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extension of credit, including a loan described by Subparagraph |
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(i); or |
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(iii) an in-kind contribution; and |
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(B) [this subdivision. The term] does not |
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include: |
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(i) [(A)] a loan made in the due course of |
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business by a corporation that is legally engaged in the business of |
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lending money and that has conducted the business continuously for |
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more than one year before the loan is made; or |
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(ii) [(B)] an expenditure required to be |
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reported under Section 305.006(b), Government Code. |
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(8) "Direct campaign expenditure" means a campaign |
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expenditure that is not an in-kind contribution, and includes |
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expenditures for communications that are express advocacy or an |
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electioneering communication [that does not constitute a campaign
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contribution by the person making the expenditure]. |
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(21) "Administrative expense" means an expenditure |
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for a separate segregated fund or political party incurred in the |
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normal course of business by an organization, regardless of whether |
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the organization engages in political activity. An expenditure is: |
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(A) an administrative expense if the expenditure |
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facilitates the decision-making process, endorsement or |
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contribution determination, and delivery process of the separate |
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segregated fund, including expenditures for: |
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(i) office space maintenance and repairs; |
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(ii) telephone and Internet services; |
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(iii) office equipment; |
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(iv) utilities; |
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(v) general office and meeting supplies; |
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(vi) salaries for routine clerical, data |
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entry, and administrative assistance necessary for the proper |
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administrative operation of the separate segregated fund; |
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(vii) legal and accounting fees for |
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compliance with this title; |
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(viii) routine administrative expenses |
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incurred in establishing and administering a separate segregated |
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fund; |
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(ix) management and supervision of the |
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separate segregated fund, including expenses in holding meetings of |
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the fund's governing body to interview candidates and make |
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endorsements relating to its support; |
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(x) candidate forums in which all |
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candidates for a particular office in an election are invited to |
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participate on the same terms; |
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(xi) the recording of separate segregated |
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fund decisions; |
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(xii) expenses incurred in preparing and |
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delivering contributions; or |
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(xiii) soliciting funds from the restricted |
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class; and |
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(B) not an administrative expense if the |
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expenditure is for: |
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(i) political consulting to support or |
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oppose a candidate; |
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(ii) telephoning to communicate with the |
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public; |
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(iii) brochures and direct mail to persons |
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not in the restricted class; |
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(iv) issue advocacy or electioneering |
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communications; |
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(v) political fund-raising; |
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(vi) voter identification, voter lists, or |
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voter databases other than those related to a restricted class; |
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(vii) polling of persons not in the |
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restricted class; or |
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(viii) recruiting candidates. |
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(22) "In-kind contribution" means: |
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(A) a contribution of goods, services, or any |
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other thing of value, except money, and includes an agreement made |
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or other obligation incurred, whether legally enforceable or not, |
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to make a contribution; or |
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(B) a third-party expenditure by a person that |
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is: |
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(i) made with the prior consent or approval |
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of the candidate, political committee, or political party, or an |
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agent or representative of the candidate, committee, or party; or |
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(ii) created, produced, or distributed at |
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the request or suggestion of: |
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(a) a candidate, political committee, |
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or political party, or the agent or representative of the |
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candidate, committee, or party; or |
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(b) a third party who is paying for |
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the expenditure and the candidate, political committee, or |
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political party, or the agent or representative of the candidate, |
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committee, or party assents to the request or suggestion. |
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(23) "Electioneering communication" means a |
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communication that if taken as a whole and with limited reference to |
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external events, such as the proximity to the election, could only |
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be interpreted by a reasonable person as containing advocacy of the |
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election or defeat of one or more clearly identified candidates or |
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ballot measures. |
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(24) "Express advocacy" means a communication that |
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refers to a clearly identified candidate or ballot measure, |
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utilizing phrases such as "Vote for X," "Re-elect your Legislator," |
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"Support the Democratic Nominee," "Cast your Ballot Against (or |
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for) the Republican Challenger," or "Defeat the Incumbent." The |
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term "express advocacy" does not include: |
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(A) a communication that refers to a clearly |
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identified candidate or ballot measure appearing in a news story, |
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commentary, editorial, or work intended for entertainment |
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distributed through the facilities of a bona fide broadcasting |
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station, newspaper, magazine, or other publication, unless such |
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facilities are owned or controlled by a political party, political |
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committee, or candidate; or |
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(B) a communication to the restricted class of |
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the person making the communication as provided by Section 253.098. |
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(25) "Clearly identified" means, as to a candidate: |
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(A) the use of the candidate's name, nickname, |
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photograph, or picture; or |
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(B) an unambiguous reference that makes the |
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identity of the candidate apparent, such as a reference to the |
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office held, incumbency, district or area represented, or the |
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candidate's status as a candidate for a political party. |
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(26) "Membership organization" means a trade |
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association, cooperative, or corporation without capital stock |
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that: |
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(A) is composed of members, some or all of whom |
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are vested with the authority to operate or administer the |
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organization according to the organization's articles, bylaws, |
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constitution, or other formal organizational documents; |
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(B) expressly states the qualifications and |
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requirements for membership in its articles, bylaws, constitution, |
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or other formal organizational documents; |
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(C) makes its articles, bylaws, constitution, or |
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other formal organizational documents available to its members upon |
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request; |
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(D) solicits persons to become members; |
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(E) expressly acknowledges the acceptance of |
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membership by sending a membership card, including the member's |
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name on a membership newsletter list, or using another means; and |
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(F) is not organized for the principal purpose of |
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influencing the nomination for election, or election, of an |
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individual to public office. |
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(27) "Member" means a person who: |
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(A) currently satisfies the requirements for |
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membership in a membership organization; |
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(B) affirmatively accepts the membership |
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organization's invitation to become a member; and |
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(C) either: |
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(i) has a significant financial attachment |
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to, including a significant investment or ownership interest in, |
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the membership organization or pays membership dues, other than |
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payments to a separate segregated fund, predetermined by the |
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organization; or |
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(ii) has a significant organizational |
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attachment to the membership organization that includes |
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affirmation of membership on at least an annual basis and has an |
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opportunity to participate in the organization's governance. |
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(28) "Restricted class" means the group of individuals |
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who: |
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(A) for a corporation, are the stockholders, |
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employees, and families of the stockholders and employees of the |
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corporation or the corporation's subsidiaries, branches, |
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divisions, affiliates, or departments; |
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(B) for a labor organization, are the members, |
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employees, and families of the members and employees of the labor |
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organization; or |
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(C) for a membership organization, are the |
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members, employees, and families of employees of the organization. |
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SECTION 2. Subchapter D, Chapter 253, Election Code, is |
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amended by adding Section 253.1001 to read as follows: |
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Sec. 253.1001. EXPENDITURES FOR SEPARATE SEGREGATED FUND. |
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(a) A corporation, labor organization, or membership organization, |
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other than a political committee, may make political expenditures |
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from its own treasury funds and property to finance the |
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establishment or administration expenses of its own separate |
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segregated fund. |
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(b) Money in a separate segregated fund from corporate, |
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labor organization, or membership organization treasury funds |
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shall be kept in a separate account and may not be commingled with |
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any other funds. A person who knowingly violates this subsection |
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commits an offense. An offense under this subsection is a Class A |
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misdemeanor. |
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(c) A separate segregated fund shall be treated as a |
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general-purpose committee and shall comply with the provisions of |
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this title applicable to a general-purpose committee as if the |
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separate segregated fund were a general-purpose committee. |
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SECTION 3. Section 253.061, Election Code is amended to |
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read as follows: |
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Sec. 253.061. DIRECT EXPENDITURE OF $500 [$100] OR LESS. |
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Except as otherwise provided by law, an individual not acting in |
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concert with another person may make one or more direct campaign |
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expenditures in an election from the individual's own property if: |
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(1) the total expenditures on any one or more |
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candidates or measures do not exceed $500 [$100]; and |
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(2) the individual receives no reimbursement for the |
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expenditures. |
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SECTION 4. The heading to Section 253.062, Election Code, |
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is amended to read as follows: |
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Sec. 253.062. DIRECT EXPENDITURE EXCEEDING $500 [$100]. |
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SECTION 5. Section 253.062(a), Election Code, is amended to |
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read as follows: |
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(a) Except as otherwise provided by law, an individual not |
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acting in concert with another person may make one or more direct |
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campaign expenditures in an election from the individual's own |
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property that exceed $500 [$100] on any one or more candidates or |
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measures if: |
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(1) the individual complies with Chapter 254 as if the |
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individual were a campaign treasurer of a political committee; and |
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(2) the individual receives no reimbursement for the |
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expenditures. |
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SECTION 6. Section 253.098(a), Election Code, is amended to |
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read as follows: |
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(a) A corporation, [or] labor organization, or membership |
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organization may make communications on any subject, including |
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communications containing express advocacy or electioneering |
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communications, to its restricted class or any part of that class |
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[one or more direct campaign expenditures from its own property for
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the purpose of communicating directly with its stockholders or
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members, as applicable, or with the families of its stockholders or
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members]. |
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SECTION 7. Section 257.002(a), Election Code, is amended to |
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read as follows: |
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(a) A political party that accepts a contribution authorized |
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by Section 253.104 may use the contribution only [to]: |
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(1) for its own administrative expenses [defray normal
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overhead and administrative or operating costs incurred by the
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party]; or |
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(2) to administer a primary election or convention |
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held by the party. |
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SECTION 8. Section 253.100, Election Code, is repealed. |
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SECTION 9. The changes in law made by this Act apply only to |
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a contribution or expenditure made on or after September 1, 2009. A |
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contribution or expenditure made before September 1, 2009, is |
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governed by the law in effect immediately before that date, and the |
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former law is continued in effect for that purpose. |
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SECTION 10. The legislative history and text of this Act may |
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not be construed or used to interpret the meaning of the provisions |
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of the Election Code as they existed before amendment by this Act |
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and may not be construed or used in any manner, directly or |
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indirectly, to interpret the prior law, or its meaning, |
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constitutionality, legality, or clarity, in any pending civil or |
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criminal case. |
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SECTION 11. This Act takes effect September 1, 2009. |