BILL ANALYSIS H.B. 4406 By: Phelan State Affairs Committee Report (Unamended) BACKGROUND AND PURPOSE The bill author has informed the committee that there is a need for increased transparency and accountability in reporting political contributions and expenditures. The bill author has also informed the committee that enhancing reporting requirements and providing clearer and more comprehensive financial disclosures would ensure that voters and stakeholders can better understand the financial activities behind political campaigns. H.B. 4406 seeks to address this issue by requiring more detailed reporting of political contributions and expenditures. CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS H.B. 4406 amends the Election Code to replace the requirement for the campaign finance report filed by a candidate, officeholder, or political committee to include the name of each candidate or officeholder who benefits from a direct campaign expenditure made during the reporting period by the person or committee with a requirement for the report to include instead the name of each candidate or officeholder for whom a direct campaign expenditure was made to support or oppose during the reporting period by the person or committee. The bill applies only to a report that is required to be filed on or after the bill's effective date. A report that is required to be filed before the bill's effective date is governed by the law in effect on the date the report is required to be filed, and the former law is continued in effect for that purpose. EFFECTIVE DATE September 1, 2025. BILL ANALYSIS # BILL ANALYSIS H.B. 4406 By: Phelan State Affairs Committee Report (Unamended) H.B. 4406 By: Phelan State Affairs Committee Report (Unamended) BACKGROUND AND PURPOSE The bill author has informed the committee that there is a need for increased transparency and accountability in reporting political contributions and expenditures. The bill author has also informed the committee that enhancing reporting requirements and providing clearer and more comprehensive financial disclosures would ensure that voters and stakeholders can better understand the financial activities behind political campaigns. H.B. 4406 seeks to address this issue by requiring more detailed reporting of political contributions and expenditures. CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS H.B. 4406 amends the Election Code to replace the requirement for the campaign finance report filed by a candidate, officeholder, or political committee to include the name of each candidate or officeholder who benefits from a direct campaign expenditure made during the reporting period by the person or committee with a requirement for the report to include instead the name of each candidate or officeholder for whom a direct campaign expenditure was made to support or oppose during the reporting period by the person or committee. The bill applies only to a report that is required to be filed on or after the bill's effective date. A report that is required to be filed before the bill's effective date is governed by the law in effect on the date the report is required to be filed, and the former law is continued in effect for that purpose. EFFECTIVE DATE September 1, 2025. BACKGROUND AND PURPOSE The bill author has informed the committee that there is a need for increased transparency and accountability in reporting political contributions and expenditures. The bill author has also informed the committee that enhancing reporting requirements and providing clearer and more comprehensive financial disclosures would ensure that voters and stakeholders can better understand the financial activities behind political campaigns. H.B. 4406 seeks to address this issue by requiring more detailed reporting of political contributions and expenditures. CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS H.B. 4406 amends the Election Code to replace the requirement for the campaign finance report filed by a candidate, officeholder, or political committee to include the name of each candidate or officeholder who benefits from a direct campaign expenditure made during the reporting period by the person or committee with a requirement for the report to include instead the name of each candidate or officeholder for whom a direct campaign expenditure was made to support or oppose during the reporting period by the person or committee. The bill applies only to a report that is required to be filed on or after the bill's effective date. A report that is required to be filed before the bill's effective date is governed by the law in effect on the date the report is required to be filed, and the former law is continued in effect for that purpose. EFFECTIVE DATE September 1, 2025.