Bill Text: TX HB3258 | 2013-2014 | 83rd Legislature | Introduced
Bill Title: Relating to political contributions and expenditures; providing civil and criminal penalties.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-03-19 - Referred to Elections [HB3258 Detail]
Download: Texas-2013-HB3258-Introduced.html
83R8944 CAE-F | ||
By: Villalba | H.B. No. 3258 |
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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 | ||
amending Subdivisions (8), (12), and (16) and adding Subdivisions | ||
(21), (22), (23), (24), and (25) to read as follows: | ||
(8) "Independent [ |
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a campaign expenditure by a person for a communication expressly | ||
advocating the election or defeat of a clearly identified candidate | ||
that is not made in cooperation or consultation, or at the request | ||
or suggestion of, a candidate, a candidate's campaign committee, | ||
the agent of a candidate or candidate's campaign committee, a | ||
political party committee, or the agent of a political party. An | ||
independent expenditure [ |
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contribution by the person making the expenditure. | ||
(12) "Political committee" means any committee, club, | ||
association, or other combination of two or more persons, the major | ||
purpose of which is to support or oppose one or more ballot | ||
measures, candidates, or political parties through [ |
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contributions or [ |
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includes: | ||
(A) a committee, club, association, or other | ||
combination of two or more persons designating itself as a | ||
political organization in its filings with the Internal Revenue | ||
Service or specifically identifying support or opposition to one or | ||
more ballot measures, candidates, or political parties as its | ||
primary objective in its organizing document, fund-raising | ||
appeals, or public statements; or | ||
(B) the making of a political expenditure to | ||
support or oppose ballot measures, candidates, and political | ||
parties constituting a majority of its total spending during any | ||
election cycle. | ||
(16) "Political advertising" means a communication | ||
expressly advocating the election or defeat of a clearly identified | ||
candidate or expressly advocating support for or opposition to a | ||
measure by means of a broadcast, cable, or satellite communication, | ||
newspaper, magazine, outdoor advertising facility, electronic | ||
communication, mailing, telephone bank to the general public, text | ||
message, or any other form of general public political advertising. | ||
Political advertising does not include: | ||
(A) Internet communications, except for | ||
communications placed for a fee on another person's website; or | ||
(B) electronic communications or text messages | ||
of an identical or substantially similar nature sent to fewer than | ||
25 recipients within any 30-day period [ |
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(21) "Clearly identified candidate" means the | ||
candidate's name, nickname, photograph, or drawing appears, or the | ||
identity of the candidate is otherwise apparent through an | ||
unambiguous reference, including a reference to the candidate's | ||
status as a candidate. | ||
(22) "Coordinated" means in cooperation or | ||
consultation, or at the request or suggestion of, a candidate, a | ||
candidate's campaign committee, the agent of the candidate or | ||
candidate's campaign committee, a political party committee, or the | ||
agent of a political party committee. | ||
(23) "Coordinated expenditure" means an expenditure | ||
by a person for a communication expressly advocating the election | ||
or defeat of a clearly identified candidate that is coordinated | ||
with a candidate, a candidate's campaign committee, the agent of | ||
the candidate or candidate's campaign committee, a political party | ||
committee, or the agent of a political party committee. | ||
(24) "Election cycle" means the two-year period | ||
beginning January 1 of an odd-numbered year and ending on December | ||
31 of the subsequent even-numbered year. | ||
(25) "Express advocacy" means any communication that | ||
in context can have no other reasonable meaning than to urge the | ||
election or defeat of one or more clearly identified candidates or | ||
to urge support for or opposition to a measure. | ||
SECTION 2. Section 251.004(a), Election Code, is amended to | ||
read as follows: | ||
(a) Venue for a criminal offense prescribed by this title is | ||
in the county of residence of the defendant, unless the defendant is | ||
not a Texas resident, in which case venue is in Travis County. The | ||
residence of a person other than an individual is the county in | ||
which the defendant's principal place of business is located. | ||
SECTION 3. Section 252.001, Election Code, is amended to | ||
read as follows: | ||
Sec. 252.001. APPOINTMENT OF CAMPAIGN TREASURER REQUIRED. | ||
Each candidate and each political committee shall appoint a | ||
campaign treasurer as provided by this chapter. An individual | ||
shall file a campaign treasurer appointment not later than the 10th | ||
day after the date the individual becomes a candidate. A political | ||
committee shall file a campaign treasurer appointment not later | ||
than the 10th day after the date the committee accepts campaign | ||
contributions in excess of $500 or makes or authorizes campaign | ||
expenditures in excess of $500. Notwithstanding this section, an | ||
unregistered political committee shall file a campaign treasurer | ||
appointment not later than 24 hours after making or authorizing a | ||
campaign expenditure that requires the committee to file a special | ||
report as required by Section 254.039. | ||
SECTION 4. Sections 252.003(a) and (d), Election Code, are | ||
amended to read as follows: | ||
(a) In addition to the information required by Section | ||
252.002, a campaign treasurer appointment by a general-purpose | ||
committee must include: | ||
(1) the full name, and any acronym of the name that | ||
will be used in the name of the committee as provided by Subsection | ||
(d), of each corporation, labor organization, association, limited | ||
liability company, limited liability partnership, or partnership | ||
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administers, or controls the committee, if applicable, or the name | ||
of each person who determines to whom the committee makes | ||
contributions or the name of each person who determines for what | ||
purposes the committee makes expenditures; | ||
(2) the full name and address of each general-purpose | ||
committee to whom the committee intends to make political | ||
contributions; and | ||
(3) the name of the committee and, if the name is an | ||
acronym, the words the acronym represents. | ||
(d) The name of a general-purpose committee must include the | ||
name of each corporation, labor organization, association, limited | ||
liability company, limited liability partnership, or partnership | ||
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that directly establishes, administers, or controls the committee. | ||
The name of an entity that is required to be included in the name of | ||
the committee may be a commonly recognized acronym by which the | ||
entity is known. | ||
SECTION 5. Section 253.031, Election Code, is amended by | ||
amending Subsections (a) and (b) and adding Subsection (c-1) to | ||
read as follows: | ||
(a) Once a candidate has filed a campaign treasurer | ||
appointment, the [ |
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contribution or make or authorize a campaign expenditure at a time | ||
when a campaign treasurer appointment for the candidate is not in | ||
effect. | ||
(b) Once a [ |
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treasurer appointment, the political committee may not knowingly | ||
accept a political contribution [ |
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appointment for the committee is not in effect. | ||
(c-1) Subsection (c) does not apply to a general-purpose | ||
committee that, after knowingly making or authorizing a political | ||
contribution or political expenditure, files a special report in | ||
accordance with Section 254.039. | ||
SECTION 6. Section 253.037, Election Code, is amended by | ||
adding Subsection (a-1) to read as follows: | ||
(a-1) Subsection (a) does not apply to a general-purpose | ||
committee that, after knowingly making or authorizing a political | ||
contribution or political expenditure, files a special report in | ||
accordance with Section 254.039. | ||
SECTION 7. Section 253.091, Election Code, is amended to | ||
read as follows: | ||
Sec. 253.091. CORPORATIONS AND OTHER ENTITIES COVERED. | ||
This subchapter applies only to corporations that are governed | ||
under Title 2, Business Organizations Code, entities that can be | ||
characterized as corporations organized under federal law or the | ||
law of another state, and associations, limited liability | ||
companies, limited liability partnerships, and partnerships | ||
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SECTION 8. Sections 253.100(a), (b), and (d), Election | ||
Code, are amended to read as follows: | ||
(a) A corporation, association, limited liability company, | ||
limited liability partnership, or partnership [ |
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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, | ||
association, limited liability company, limited liability | ||
partnership, or partnership may make an expenditure for the | ||
maintenance and operation of a general-purpose committee that it | ||
establishes or administers, including an expenditure for: | ||
(1) office space maintenance and repairs; | ||
(2) telephone and Internet services; | ||
(3) office equipment; | ||
(4) utilities; | ||
(5) general office and meeting supplies; | ||
(6) salaries for routine clerical, data entry, and | ||
administrative assistance necessary for the proper administrative | ||
operation of the committee; | ||
(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) management and supervision of the committee, | ||
including expenses incurred in holding 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; | ||
(11) expenses incurred in hosting candidate forums in | ||
which all candidates for a particular office in an election are | ||
invited to participate on the same terms; or | ||
(12) expenses incurred in preparing and delivering | ||
committee contributions. | ||
(b) A corporation, association, limited liability company, | ||
limited liability partnership, or partnership may make political | ||
expenditures to finance the solicitation of political | ||
contributions to a general-purpose committee assisted under | ||
Subsection (a) from its [ |
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of stockholders or employees [ |
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(d) A corporation, [ |
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limited liability company, limited liability partnership, or | ||
partnership may not make expenditures under this section for: | ||
(1) political consulting to support or oppose a | ||
candidate; | ||
(2) telephoning or telephone banks to communicate with | ||
the public; | ||
(3) brochures and direct mail supporting or opposing a | ||
candidate; | ||
(4) partisan voter registration and get-out-the-vote | ||
drives; | ||
(5) political fund-raising other than from its | ||
stockholders or members, as applicable, or the families of its | ||
stockholders or members; | ||
(6) voter identification efforts, voter lists, or | ||
voter databases that include persons other than its stockholders or | ||
members, as applicable, or the families of its stockholders or | ||
members; | ||
(7) polling designed to support or oppose a candidate | ||
other than of its stockholders or members, as applicable, or the | ||
families of its stockholders or members; or | ||
(8) recruiting candidates. | ||
SECTION 9. Section 253.132(a), Election Code, is amended to | ||
read as follows: | ||
(a) A corporation or labor organization that knowingly | ||
makes a campaign contribution to a political committee or an | ||
independent [ |
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Subchapter D is liable for damages as provided by this section to | ||
each political committee of opposing interest in the election in | ||
connection with which the contribution or expenditure is made. | ||
SECTION 10. Section 253.157(e)(1), Election Code, is | ||
amended to read as follows: | ||
(1) "Law firm" means a partnership, limited liability | ||
partnership, limited liability company, professional limited | ||
liability company, or professional corporation organized for the | ||
practice of law. | ||
SECTION 11. The heading to Section 253.171, Election Code, | ||
is amended to read as follows: | ||
Sec. 253.171. CONTRIBUTION FROM OR INDEPENDENT [ |
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SECTION 12. Section 253.171(a), Election Code, is amended | ||
to read as follows: | ||
(a) Except as provided by Subsection (b), a political | ||
contribution to or an independent [ |
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on behalf of a complying candidate that is made by the principal | ||
political committee of the state executive committee or a county | ||
executive committee of a political party is considered to be a | ||
political expenditure by the candidate for purposes of the | ||
expenditure limits prescribed by Section 253.168. | ||
SECTION 13. Sections 254.031(a) and (a-1), Election Code, | ||
are amended to read as follows: | ||
(a) Except as otherwise provided by this chapter, each | ||
report filed under this chapter must include: | ||
(1) the amount of cash on hand at the beginning of the | ||
reporting period; | ||
(2) for the reporting period, the total amount of all | ||
receipts actually received by the candidate, officeholder, or | ||
political committee, and the total amount of all receipts actually | ||
received by the candidate, officeholder, or political committee in | ||
the following categories: | ||
(A) contributions from persons; | ||
(B) for a candidate, officeholder, or | ||
specific-purpose committee supporting a candidate or assisting an | ||
officeholder, loans made by or guaranteed by the candidate or | ||
officeholder; | ||
(C) all other loans; | ||
(D) rebates, refunds, and other offsets to | ||
operating expenditures; and | ||
(E) dividends, interest, and other forms of | ||
receipts; | ||
(3) the identification of each: | ||
(A) individual who makes a contribution to the | ||
candidate, officeholder, or political committee during the | ||
reporting period, whose contributions have an aggregate amount or | ||
value in excess of $50 within the reporting period, or in any lesser | ||
amount if the candidate, officeholder, or political committee | ||
elects, together with the date and amount of the contribution; | ||
(B) person, other than an individual, who makes a | ||
contribution to the candidate, officeholder, or political | ||
committee during the reporting period, together with the date and | ||
amount of any contribution; | ||
(C) person who makes a loan to the candidate, | ||
officeholder, or political committee during the reporting period, | ||
together with the identification of any endorser or guarantor of a | ||
loan, and the date and amount of value of the loan; | ||
(D) person who provides a rebate, refund, or | ||
other offset to operating expenditures to the candidate, | ||
officeholder, or political committee in an aggregate amount or | ||
value in excess of $50 within the reporting period, together with | ||
the date and amount of the offset; and | ||
(E) person who provides any dividend, interest, | ||
or other receipt to the candidate, officeholder, or political | ||
committee in an aggregate value or amount in excess of $50 within | ||
the reporting period, together with the date and amount of the | ||
receipt; | ||
(4) for the reporting period, the total amount of all | ||
disbursements actually made by the candidate, officeholder, or | ||
political committee, and all disbursements actually made by the | ||
candidate, officeholder, or political committee in the following | ||
categories: | ||
(A) expenditures made to meet the candidate's, | ||
officeholder's, or political committee's operating expenses; | ||
(B) for a candidate, officeholder, or | ||
specific-purpose committee supporting a candidate or assisting an | ||
officeholder, the repayment of loans made by or guaranteed by the | ||
candidate or officeholder; | ||
(C) repayment of all other loans; | ||
(D) contribution refunds and other offsets to | ||
contributions; | ||
(E) contributions made by the candidate, | ||
officeholder, or political committee; | ||
(F) loans made by the candidate, officeholder, or | ||
political committee; | ||
(G) independent expenditures made by the | ||
candidate, officeholder, or political committee; and | ||
(H) any other disbursements; | ||
(5) the name and address of each: | ||
(A) person to whom a disbursement in an aggregate | ||
amount or value in excess of $50 within the reporting period is made | ||
by the candidate, officeholder, or political committee, together | ||
with the date, amount, and purpose of the disbursement; | ||
(B) person who receives any disbursement during | ||
the reporting period in an aggregate amount or value in excess of | ||
$50 in connection with an independent expenditure by the candidate, | ||
officeholder, or political committee, together with the date, | ||
amount, and purpose of the independent expenditure, and a statement | ||
that indicates whether the independent expenditure is in support | ||
of, or in opposition to, a candidate, as well as the name of and | ||
office sought by the candidate; | ||
(C) person who has received a loan from the | ||
candidate, officeholder, or political committee during the | ||
reporting period, together with the date and amount of the loan; | ||
(D) person who receives a loan repayment from the | ||
candidate, officeholder, or political committee during the | ||
reporting period, together with the date and amount of the loan | ||
repayment; and | ||
(E) person who receives a contribution refund or | ||
other offset to contributions from the candidate, officeholder, or | ||
political committee in which the contribution was reported under | ||
Subdivision (3)(A), together with the date and amount of the | ||
offset; | ||
(6) the amount and nature of outstanding debts and | ||
obligations owed by or to a candidate, officeholder, or political | ||
committee, the date incurred, and if the debts and obligations are | ||
settled for less than the reported amount or value, a statement as | ||
to the circumstances and conditions under which the debts or | ||
obligations were settled and the consideration for that settlement; | ||
(7) the amount of reported cash on hand at the end of | ||
the reporting period, as calculated by adding the reported cash on | ||
hand at the beginning of the reporting period with total receipts | ||
and offsets to disbursements, less disbursements and offsets to | ||
receipts during the reporting period; and | ||
(8) the amount of funds and assets in the candidate's, | ||
officeholder's, or political committee's bank depositories at the | ||
end of the reporting period [ |
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(a-1) A de minimis error in calculating or reporting a cash | ||
balance or bank depository balance under Subsection (a)(1), (7), or | ||
(8) [ |
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SECTION 14. The heading to Section 254.034, Election Code, | ||
is amended to read as follows: | ||
Sec. 254.034. TIME OF RECEIVING [ |
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SECTION 15. Section 254.034, Election Code, is amended by | ||
adding Subsection (a-1) to read as follows: | ||
(a-1) For any political contribution that is received and | ||
accepted by a candidate, officeholder, or political committee, the | ||
date the political contribution was received is the date the | ||
contributor relinquished control of the contribution, if the date | ||
is readily determinable. If the candidate, officeholder, or | ||
political committee is unable to readily determine the date the | ||
contributor relinquished control of the contribution, the date the | ||
political contribution was received is the date the contribution is | ||
actually received by the candidate, officeholder, or political | ||
committee. | ||
SECTION 16. The heading to Section 254.035, Election Code, | ||
is amended to read as follows: | ||
Sec. 254.035. TIME OF MAKING EXPENDITURE OR INCURRING DEBT | ||
OR OBLIGATION. | ||
SECTION 17. Section 254.035, Election Code, is amended by | ||
amending Subsections (a) and (b) and adding Subsection (a-1) to | ||
read as follows: | ||
(a) For purposes of reporting under this chapter, a | ||
political expenditure is not considered to have been made until the | ||
candidate, officeholder, or political committee relinquishes | ||
control of the funds [ |
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(a-1) For purposes of reporting under this chapter, a debt | ||
or obligation is not considered to be owed until the amount is | ||
readily determinable by the person that owes the debt or | ||
obligation. | ||
(b) If the character of a debt or obligation [ |
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is not disclosed until receipt of a periodic bill, the debt or | ||
obligation [ |
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date the bill is received. | ||
SECTION 18. Section 254.038(c), Election Code, is amended | ||
to read as follows: | ||
(c) A report under this section shall be filed | ||
electronically, by telegram or telephonic facsimile machine, or by | ||
hand, in the form required by Section 254.036. The commission must | ||
receive a report under this section filed by telegram, telephonic | ||
facsimile machine, or hand not later than 5 p.m. of the first | ||
business day after the date the contribution is received | ||
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section filed electronically not later than midnight of the first | ||
business day after the date the contribution is received | ||
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accompanied by the affidavit required under Section 254.036(h) or | ||
to be submitted on a form prescribed by the commission. A report | ||
under this section that complies with Section 254.036(a) must be | ||
accompanied by an affidavit under Section 254.036(c)(1) unless the | ||
candidate or committee has submitted an affidavit under Section | ||
254.036(c)(1) with another report filed in connection with the | ||
election for which a report is required under this section. | ||
SECTION 19. The heading to Subchapter J, Chapter 254, | ||
Election Code, is amended to read as follows: | ||
SUBCHAPTER J. REPORTING BY CERTAIN PERSONS MAKING INDEPENDENT | ||
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SECTION 20. The heading to Section 254.261, Election Code, | ||
is amended to read as follows: | ||
Sec. 254.261. INDEPENDENT [ |
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EXCEEDING $100. | ||
SECTION 21. Section 254.261, Election Code, is amended by | ||
amending Subsection (a) and adding Subsections (e) and (f) to read | ||
as follows: | ||
(a) A person [ |
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makes one or more independent [ |
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election from the person's own property shall comply with this | ||
chapter as if the person were the campaign treasurer of a | ||
general-purpose committee that does not file monthly reports under | ||
Section 254.155. | ||
(e) When evaluating a political expenditure to determine | ||
whether the expenditure constitutes an independent expenditure or a | ||
coordinated expenditure, there is a rebuttable presumption that a | ||
political expenditure for political advertising is a coordinated | ||
expenditure if: | ||
(1) the political expenditure is made by a person in | ||
cooperation or consultation with, at the request, suggestion, or | ||
direction of, or pursuant to a general or particular understanding | ||
with: | ||
(A) a candidate or political party committee; or | ||
(B) a consultant or other agent acting on behalf | ||
of a candidate or political party committee; | ||
(2) the political expenditure is made by a person for | ||
the production, dissemination, distribution, or publication, in | ||
whole or in substantial part, of any political advertising prepared | ||
by: | ||
(A) a candidate or political party committee; or | ||
(B) a consultant or other agency acting on behalf | ||
of a candidate or political party committee; | ||
(3) the political expenditure is made by a person | ||
based on nonpublic information about a candidate's or political | ||
party committee's plans, projects, or needs that has been provided | ||
by: | ||
(A) a candidate or political party committee; or | ||
(B) a consultant or other agent acting on behalf | ||
of a candidate or political party committee, with the intent that | ||
the expenditure be made; | ||
(4) the political expenditure is made by, or at the | ||
direction or advice of, an individual or vendor who, in the same | ||
election cycle, is providing services or has provided services to | ||
the candidate benefiting from the expenditure or a state or local | ||
political party committee in the state in the following capacities: | ||
(A) development of strategic content of | ||
political advertising and media strategy, including the selection | ||
or purchasing of advertising slots; | ||
(B) selection of audiences; | ||
(C) polling; | ||
(D) fund-raising; | ||
(E) producing a public communication; | ||
(F) identifying voters or developing voter | ||
lists, mailing lists, or donor lists; or | ||
(G) selecting personnel, contractors, or | ||
subcontractors; | ||
(5) the political expenditure is made by a person | ||
based on nonpublic information about a candidate's campaign plans, | ||
projects, or needs that was directly or indirectly provided by a | ||
candidate or political party committee, or a consultant or other | ||
agent acting on behalf of the candidate or political party | ||
committee, to the person making the expenditure or the person's | ||
agent, with an express or tacit understanding that the person is | ||
considering making the expenditure; or | ||
(6) the person making the political expenditure | ||
provides nonpublic information to the candidate who benefits from | ||
the expenditure or political party committee regarding the | ||
contents, timing, intended audience, location, or frequency of | ||
dissemination of the political advertising. | ||
(f) A communication disseminated to the public in which a | ||
candidate or officeholder is clearly identified only in the | ||
candidate's or officeholder's capacity as the owner or operator of a | ||
business is not a coordinated communication with respect to the | ||
clearly identified candidate if: | ||
(1) the medium, timing, content, and geographic | ||
distribution of the communication are consistent with similar | ||
communications made before the candidacy or consistent with | ||
communications made by similar businesses; and | ||
(2) the communication does not promote, support, | ||
attack, or oppose the candidate or another candidate who seeks the | ||
same office as the candidate. | ||
SECTION 22. Section 254.262, Election Code, is amended to | ||
read as follows: | ||
Sec. 254.262. TRAVEL EXPENSE. An independent [ |
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incurred by a person may be made without complying with Section | ||
254.261. | ||
SECTION 23. Sections 252.0011 and 254.035(c) and (d), | ||
Election Code, are repealed. | ||
SECTION 24. (a) The changes in law made by this Act apply | ||
only to a political contribution or political expenditure made on | ||
or after September 1, 2013. A political contribution or political | ||
expenditure made before September 1, 2013, is governed by the law in | ||
effect immediately before that date, and the former law is | ||
continued in effect for that purpose. | ||
(b) Section 254.031, Election Code, as amended by this Act, | ||
applies only to a report under Chapter 254, Election Code, that | ||
covers a reporting period that begins on or after January 1, 2014. A | ||
report under Chapter 254, Election Code, that covers a reporting | ||
period that begins before January 1, 2014, is governed by Section | ||
254.031, Election Code, as it existed before amendment by this Act, | ||
and the former law is continued in effect for that purpose. | ||
(c) The change in law made by this Act applies only to an | ||
offense committed on or after September 1, 2013. For purposes of | ||
this section, an offense is committed before September 1, 2013, if | ||
any element of the offense occurs before that date. | ||
(d) An offense committed before September 1, 2013, is | ||
covered by the law in effect when the offense was committed, and the | ||
former law is continued in effect for that purpose. | ||
SECTION 25. This Act takes effect September 1, 2013. |