Untitled Texas Attorney General Opinion ( 1978 )

The Attorney General of Texas
June 6, 1978
JOHN L. HILL
Attorney General
Honorable Henry Wade Opinion 50. H- 117 5
Criminal District Attorney
Dallas County Courthouse Re: Whether a corporation may
Dallas, Texas 75202 make contributions and expen-
ditures for the purpose of aiding
or defeating the passage of R
municipal bond issue.
Dear Mr. Wade:
You ask:
May a corporation make contributions and expen-
ditures for the purpose of aiding or defeating the
passage of a municipal bond issue?
Article 14.06 of the Texas Election Code provides, in part:
(A) Except to the extent permitted in [article
15.171, Texas Election Code, hit is unlawful for any
corporation, as defined in this Act, to make a
contribution or expenditure, as defined in [article
14.011 of this code, or any labor organization to make a
contribution or expenditure, or for any candidate,
office holder, political committee, or other person to
knowingly accept any contribution prohibited by this
Article except as herein expressly provided.
. . . .
(C) As used in this section, the phrase “contribution
or expenditure” shall also include giving, lending, or
paying any money or other thing of value, directly or
indirectly, to nny candidste, or political committee,
campaign treasurer, assistant campaign treasurer, or
any other person, for the purpose of aiding or
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Honorable Henry Wade - Page 2 (H-1175)
defeating the nomination or election of any candidate or of
aiding or defeating the approval of any measure submitted
to a vote of the people of this state or any subdivision
thereof. . . .
(D) . . . The corporation or labor organization shall be
civilly liable to the State of Texas for an amount equal to
triple the amount or value of any unlawful gift, loan, or
payment to any candidate, office-holder, political com-
mittee, campaign treasurer, or assistant campaign treasurer.
(E) Any corporation or labor organization that violates
Subsection (A), (B), or (C) of this section shall be guilty of a
felony of the third degree.
(F) Every officer or director of any corporation or labor
organization who shall consent to any such unlawful gift,
loan, or payment of such unlawful promise to give, lend, or
pay by the corporation or labor organization shall be guilty
of a felony of the third degree.
(G) Any candidate, office-holder, political committee,
campaign treasurer, or assistant campaign treasurer who
knowingly accepts such unlawful gift, loan, or payment from
a corporation or labor organization shall be guilty of a
felony of the third degree.
The United States Supreme Court recently construed -a very similar
Massachusetts’ statute in First National Bank of Boston v. Bellotti, 46 U.S.L.W.
4371 (Aoril 26. 1978). Since no comoelline state interest was found. the Suoreme
Court held that the Massachusetts staiute violated the first and fourteenth
amendment guarantees of freedom of expression insofar as it prohibited corpora-
tions from making contributions or expenditures to influence elections on measures
presented for a vote of the people. In light of this decision, we believe it is clear
that the provisions of article 14.06 which prohibit corporate contributions “for the
purpose of aiding or defeating the approval of any measures submitted to a vote of
the people of this state or any subdivision thereof” are unconstitutional. We
caution, however, that this determination “implies no comparable right in the quite
different context of participation in a political campaign for election to public
office.” First National Bank, e, at 4377, n. 26.
SUMMARY
Insofar as article 14.06, Texas Election Code, prohibits
corporations from making contributions and expenditures
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Honorable Henry Wade - Page 3 (H-11751
“for the purpose of aiding or defeating the approval of any
measures submitted to a vote of the people of this state or
any subdivision thereof,” it is unconstitutional. The pro-
hibition against corporate contributions to candidates m a
campaign for political office has not been overturned by the
Supreme Court.
Attorney General of Texas
DAVID M. KENDALL, First Assistant
C. ROBERT KEITH, Chairman
Opinion Committee
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