89th Legislature

HB 366

Overall Vote Recommendation
No
Principle Criteria
Free Enterprise
Property Rights
Personal Responsibility
Limited Government
Individual Liberty
Digest

HB 366 proposes to amend Chapter 255 of the Texas Election Code to require clear disclosures on political advertising that includes altered media depictions of candidates or officeholders. The bill specifically addresses content that uses generative artificial intelligence (AI) or other editing methods to fabricate a person’s appearance, speech, or conduct in ways that did not actually occur. If such altered media is used with the intent to influence an election, the advertising must contain a conspicuous disclosure, the formatting of which (such as font size, color, and placement) will be determined by the Texas Ethics Commission.

The legislation applies to candidates, officeholders, political committees, and others who spend more than $100 during a reporting period on political advertising. Those who knowingly publish altered media without the required disclosure commit a Class A misdemeanor, carrying significant criminal penalties. However, HB 366 exempts platforms like internet service providers, broadcasters, and billboard operators from liability if they are not the creators of the content.

By addressing the potential for AI-generated misinformation in elections, HB 366 aims to maintain the integrity of political discourse while balancing the need for free expression.

The originally filed version of HB 366 created a new section in the Texas Election Code prohibiting any person from publishing, distributing, or broadcasting political advertising that includes altered images, audio, or video recordings of a candidate or officeholder without a disclosure indicating that the depicted event did not occur in reality. The original version applied broadly to any "person," without distinguishing between political actors and third-party platforms​.

The Committee Substitute adds important clarifications and limitations to the scope of the bill. First, it specifies that the law applies only to individuals who are officeholders, candidates, political committees, or persons who make political expenditures over $100 during a reporting period (excluding basic costs like hardware and software). It also includes those who publish political advertising for consideration. These refinements narrow the bill’s focus to intentional political actors rather than casual users or media platforms.

Additionally, the substitute introduces explicit exemptions for internet service providers, broadcasters, telecommunications networks, cloud service providers, cybersecurity providers, and sign owners. These entities are shielded from liability for disseminating third-party political advertising they did not create, a protection absent from the original bill.

Substantively, both versions maintain the core prohibition against distributing deceptive AI-altered political media without disclosure and establish the violation as a Class A misdemeanor. However, the Committee Substitute is more carefully tailored to avoid unintended consequences for neutral platforms and to focus enforcement on actors with a clear intent to influence elections.

Author
Dade Phelan
Fiscal Notes

According to the Legislative Budget Board (LBB), HB 366 is not expected to have a significant fiscal impact on the State of Texas. The Texas Ethics Commission, which would be responsible for adopting rules regarding the format and presentation of the required disclosures on political advertisements, anticipates that any administrative costs associated with implementing the bill could be absorbed within its existing resources.

Similarly, the Office of Court Administration reported that while the number of potential defendants who might be prosecuted under the bill cannot be precisely estimated, any resulting caseload impacts on the court system would likely be manageable with current resources. Moreover, it is assumed that the bill would not cause a significant increase in demands on the state’s correctional facilities, meaning no major costs related to incarceration are expected.

At the local government level, the LBB also concluded that any fiscal impact on counties or municipalities—whether related to enforcement, prosecution, supervision, or confinement of offenders—would be minor and could be absorbed within existing budgets.

In summary, the bill is expected to have minimal fiscal consequences for both the state and local governments, with existing structures and resources deemed sufficient to manage any additional workload or regulatory duties created by the new disclosure requirement.

Vote Recommendation Notes

HB 366, while aimed at regulating the use of altered media in political advertising, presents major constitutional, political, and practical problems that cannot be fixed by minor amendments. The bill is fundamentally flawed because it undermines First Amendment free speech protections, imposes criminal penalties on political activism, risks selective enforcement, and unnecessarily expands the regulatory reach of government into citizen communication. Because of these deep flaws, Texas Policy Research recommends that lawmakers vote NO on HB 366.

First and most importantly, the bill violates the core protections of political free speech. Under both the U.S. and Texas Constitutions, political satire, parody, humor, memes, and criticism of public officials are among the most protected forms of expression. HB 366 criminalizes political advertising that uses altered images, audio, or video without a specific government-mandated disclosure. However, nowhere does the bill include any exemption for satire or parody. Without such protections, the bill creates a chilling effect: ordinary Texans could face serious criminal penalties simply for posting a humorous or critical meme about a politician. This is a direct assault on political free speech.

Second, the punishment established by the bill is shockingly disproportionate. HB 366 creates a Class A misdemeanor, which can result in up to one year in jail and a $4,000 fine. This penalty is harsher than what Texas imposes for many more serious offenses, including certain unlawful immigration offenses and theft. Criminalizing a disclosure violation — especially when it involves subjective judgment about political content — is excessive and a dangerous precedent. It threatens to criminalize good-faith political activism, jokes, and legitimate dissent.

Third, the bill invites selective enforcement. Without clear statutory protections for satire and commentary, enforcement would be left to political judgment. Officials or prosecutors could target their critics while ignoring similar violations by political allies. History shows that wherever governments are given vague authority to regulate speech, selective application inevitably follows. Laws regulating political speech must be especially clear, neutral, and protective of dissent, and HB 366 fails that test badly.

Fourth, while the fiscal note indicates no major new taxpayer burden, the bill still expands government power in an unacceptable way. It grants new rulemaking and enforcement authority to the Texas Ethics Commission over a broad swath of political speech. Even if the fiscal cost is low, the constitutional cost is high: citizens should not need to fear bureaucratic enforcement simply for criticizing their elected officials online.

Fifth, HB 366 particularly harms grassroots activists. Large, well-funded campaigns can afford lawyers to comply with disclosure regulations. But individual Texans, small grassroots organizations, and everyday social media users cannot. These groups rely heavily on memes, humor, and provocative messaging to participate in government. By threatening their right to engage in that speech, the bill protects incumbents and insiders while punishing the very citizens that the government is supposed to empower.

Finally, there is no true necessity for this bill. If someone creates a malicious, defamatory "deepfake," Texas law already provides remedies through civil defamation lawsuits, fraud statutes, and deceptive trade practices enforcement. There is no justification for expanding criminal law into the arena of political communication, where the danger of government abuse is greatest.

HB 366 cannot be amended into an acceptable form because its fundamental design — regulating and criminalizing political speech — is fatally flawed. It suppresses free speech and grassroots activism. It imposes unjust criminal penalties. It enables selective political enforcement. It grows government regulatory power unnecessarily. It damages Texas's longstanding commitment to individual liberty and limited government. Lawmakers who stand for free speech, grassroots activism, limited government, and constitutional rights must oppose this bill without hesitation.

  • Individual Liberty: The bill directly harms individual liberty by criminalizing core political speech, including memes, satire, parody, and criticism of elected officials. Free expression is vital to holding government accountable, yet this bill imposes serious criminal penalties for political communication without proper disclosure. It creates a chilling effect where citizens may self-censor to avoid prosecution, undermining the very heart of liberty in a free society.
  • Personal Responsibility: The bill erodes personal responsibility by assuming that voters cannot distinguish between satire, commentary, and deception without government intervention. Rather than trusting individuals to think critically and evaluate political content, the bill shifts responsibility to the state to police and regulate political messages, infantilizing the public and diminishing the individual's role in a healthy democracy.
  • Free Enterprise: The bill modestly harms free enterprise by increasing the regulatory burden on political consultants, small advertising firms, and grassroots media creators. Although large internet platforms are exempt, businesses engaged in political advocacy will face new compliance hurdles and potential criminal exposure, stifling innovation, free exchange of ideas, and entrepreneurship in the political marketplace.
  • Private Property Rights: While the bill has minimal direct effect on tangible private property, it indirectly impacts the property right of individuals to control and use their own creative content freely. By regulating political media and mandating disclosures, the government intrudes into how citizens can use and share their intellectual property, even when that property takes the form of political satire or commentary.
  • Limited Government: The bill severely harms the principle of limited government by expanding the regulatory and enforcement authority of the Texas Ethics Commission over speech and communication. It creates broad new criminal penalties that could be selectively enforced, giving government actors dangerous new tools to police citizen dissent. Even with minimal fiscal cost, the expansion of control over political speech represents a major threat to limited, accountable government.
View Bill Text and Status