81R10837 CAE-F

By: Smith of Tarrant H.B. No. 2525

A BILL TO BE ENTITLED

AN ACT

relating to political expenditures made by a corporation or labor organization to finance the establishment and administration of a political committee.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 253.100, Election Code, is amended by amending Subsections (a) and (c) and adding Subsections (d) and (e) to read as follows:

(a) A corporation, acting alone or with one or more other corporations, may make one or more political expenditures to finance the establishment or administration of a general-purpose committee. In addition to any other expenditure that is considered permissible under this section, a corporation may make an expenditure for the maintenance and operation of a general-purpose committee, including an expenditure for:

(1) office space;

(2) telephones;

(3) office equipment;

(4) utilities;

(5) general office and meeting supplies;

(6) salaries for clerical and administrative assistance;

(7) legal and accounting fees for the committee's compliance with this title;

(8) routine administrative expenses incurred in establishing and administering a general-purpose political committee;

(9) meetings of the committee's governing body to interview candidates and make endorsements relating to the committee's support;

(10) the recording of committee decisions; or

(11) expenses incurred in preparing and delivering committee contributions.

(c) A labor organization may engage in activity authorized for a corporation by this section [Subsections (a) and (b)]. For purposes of this section, the members of a labor organization are considered to be corporate stockholders.

(d) A corporation or labor organization may not make expenditures under this section for:

(1) political consulting to support or oppose a candidate;

(2) telephone banks to communicate with voters to support or oppose a candidate;

(3) brochures and direct mail supporting or opposing a candidate;

(4) partisan voter registration and get-out-the-vote drives;

(5) political fund-raising;

(6) voter identification, lists, or databases;

(7) polling designed to support or oppose a candidate; or

(8) recruiting candidates.

(e) Subsection (d) does not apply to a corporation or labor organization making an expenditure to communicate with its stockholders or members, as applicable, or with the families of its stockholders or members as provided by Section 253.098.

SECTION 2. Subchapter D, Chapter 571, Government Code, is amended by adding Section 571.0941 to read as follows:

Sec. 571.0941. OPINION REGARDING CORPORATE OR LABOR ORGANIZATION EXPENDITURE FOR GENERAL-PURPOSE COMMITTEE. In issuing an advisory opinion determining whether a political expenditure by a corporation or labor organization is for the establishment or administration of a general-purpose committee as required by Section 253.100, Election Code, the commission may consider relevant federal election laws and opinions for guidance.

SECTION 3. The change in law made by this Act applies only to a political expenditure made under Section 253.100, Election Code, as amended by this Act, on or after the effective date of this Act. A political expenditure made under Section 253.100, Election Code, before the effective date of this Act is governed by the law in effect at the time the expenditure is made, and the former law is continued in effect for that purpose.

SECTION 4. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2009.