2025S0180-1 03/06/25
By: Hughes, BettencourtKing S.B. No. 2035
A BILL TO BE ENTITLED
AN ACT
relating to contributions, expenditures, and related activities
for supporting or opposing a ballot measure; creating criminal
offenses; providing a civil penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 51.014(a), Civil Practice and Remedies
Code, is amended to read as follows:
(a) A person may appeal from an interlocutory order of a
district court, county court at law, statutory probate court, or
county court that:
(1) appoints a receiver or trustee;
(2) overrules a motion to vacate an order that
appoints a receiver or trustee;
(3) certifies or refuses to certify a class in a suit
brought under Rule 42 of the Texas Rules of Civil Procedure;
(4) grants or refuses a temporary injunction or grants
or overrules a motion to dissolve a temporary injunction as
provided by Chapter 65;
(5) denies a motion for summary judgment that is based
on an assertion of immunity by an individual who is an officer or
employee of the state or a political subdivision of the state;
(6) denies a motion for summary judgment that is based
in whole or in part upon a claim against or defense by a member of
the electronic or print media, acting in such capacity, or a person
whose communication appears in or is published by the electronic or
print media, arising under the free speech or free press clause of
the First Amendment to the United States Constitution, or Article
I, Section 8, of the Texas Constitution, or Chapter 73;
(7) grants or denies the special appearance of a
defendant under Rule 120a, Texas Rules of Civil Procedure, except
in a suit brought under the Family Code;
(8) grants or denies a plea to the jurisdiction by a
governmental unit as that term is defined in Section 101.001;
(9) denies all or part of the relief sought by a motion
under Section 74.351(b), except that an appeal may not be taken from
an order granting an extension under Section 74.351;
(10) grants relief sought by a motion under Section
74.351(l);
(11) denies a motion to dismiss filed under Section
90.007;
(12) denies a motion to dismiss filed under Section
27.003;
(13) denies a motion for summary judgment filed by an
electric utility regarding liability in a suit subject to Section
75.0022;
(14) denies a motion filed by a municipality with a
population of 500,000 or more in an action filed under Section
54.012(6) or 214.0012, Local Government Code;
(15) makes a preliminary determination on a claim
under Section 74.353;
(16) overrules an objection filed under Section
148.003(d) or denies all or part of the relief sought by a motion
under Section 148.003(f); [or]
(17) grants or denies a motion for summary judgment
filed by a contractor based on Section 97.002; or
(18) makes a determination of probable cause under
Section 253.206(b), Election Code.
SECTION 2. Chapter 252, Election Code, is amended by adding
Sections 252.0012, 252.0033, and 252.0034 to read as follows:
Sec. 252.0012. DEFINITIONS. In this chapter:
(1) "Direct or indirect" means, with respect to an act
by a person, the person acting alone or jointly with, through, or on
behalf of another person.
(2) "Preliminary activity" includes conducting a poll
or focus group on the ballot measure, drafting sample ballot
measure language, making telephone calls in relation to the ballot
measure, or incurring travel expenses in relation to the ballot
measure.
Sec. 252.0033. CONTENTS OF APPOINTMENT BY SPECIFIC-PURPOSE
COMMITTEE FOR SUPPORTING OR OPPOSING BALLOT MEASURE. In addition
to the information required by Section 252.002, a campaign
treasurer appointment by a specific-purpose committee for
supporting or opposing a ballot measure must include an affidavit
certifying that the committee did not receive direct or indirect
funding from a foreign national, as defined by Section 253.201, for
preliminary activity regarding the ballot measure.
Sec. 252.0034. CONTENTS OF APPOINTMENT BY GENERAL-PURPOSE
COMMITTEE THAT SUPPORTS OR OPPOSES BALLOT MEASURE. In addition to
the information required by Section 252.002, a campaign treasurer
appointment by a general-purpose committee that supports or opposes
a ballot measure must include an affidavit certifying that the
committee did not receive direct or indirect funding from a foreign
national, as defined by Section 253.201, for preliminary activity
regarding the ballot measure.
SECTION 3. Chapter 253, Election Code, is amended by adding
Subchapter G to read as follows:
SUBCHAPTER G. RESTRICTIONS ON CONTRIBUTIONS, EXPENDITURES, AND
RELATED ACTIVITIES INVOLVING GENERAL-PURPOSE OR SPECIFIC-PURPOSE
COMMITTEE SUPPORTING OR OPPOSING BALLOT MEASURE
Sec. 253.201. DEFINITIONS. In this subchapter:
(1) "Directly or indirectly" means, with respect to an
act by a person, the person acting alone or jointly with, through,
or on behalf of another person.
(2) "Foreign national" means:
(A) an individual who is not a United States
citizen or national;
(B) a government of a foreign country or of a
political subdivision of a foreign country;
(C) a foreign political party;
(D) a person that is organized under the law of or
has the person's principal place of business in a foreign country;
or
(E) a person that is wholly or primarily owned by
a person described by Paragraph (A), (B), (C), or (D).
Sec. 253.202. APPLICABILITY. (a) This subchapter applies
only to a general-purpose committee or specific-purpose committee
that supports or opposes a ballot measure.
(b) For purposes of this subchapter, a prohibition under
this chapter related to contributions and expenditures by a foreign
national that is a person wholly or primarily owned by a person
described by Section 253.201(2)(A), (B), (C), or (D) does not apply
if:
(1) the contribution or expenditure is derived
entirely from money generated in the United States; and
(2) each decision related to the contribution or
expenditure, other than a decision on setting overall contribution
or expenditure budget amounts, is made by an individual who is a
United States citizen or national.
Sec. 253.203. PROHIBITED CONTRIBUTIONS AND EXPENDITURES;
AFFIRMATION REQUIRED. (a) A general-purpose committee or
specific-purpose committee may not knowingly and directly or
indirectly:
(1) solicit or accept a contribution from a foreign
national;
(2) solicit or accept a contribution from a person
that in the four years preceding the date on which the contribution
is made knowingly accepted, directly or indirectly, money from one
or more foreign nationals that in the aggregate exceeds $100,000;
or
(3) solicit a foreign national to make an expenditure
on the committee's behalf.
(b) On receipt of a contribution by a general-purpose
committee or specific-purpose committee, the committee shall
obtain from the person making the contribution a written
affirmation that the person:
(1) is not a foreign national; and
(2) has not, in the four years preceding the date on
which the contribution is made, knowingly accepted money from one
or more foreign nationals that in the aggregate exceeds $100,000.
Sec. 253.204. PROHIBITED CONDUCT BY FOREIGN NATIONALS
RELATED TO CONTRIBUTIONS AND EXPENDITURES. (a) A foreign national
may not direct, dictate, control, or directly or indirectly
participate in a person's decision-making process with regard to
influencing a ballot measure, including the person's decision to
make a contribution or expenditure to influence a ballot measure.
(b) A foreign national may not directly or indirectly
solicit the making by a person of a donation, contribution, or
expenditure to influence a ballot measure.
Sec. 253.205. RECORDKEEPING AND CERTIFICATION REQUIREMENTS
RELATED TO CERTAIN CONTRIBUTIONS AND EXPENDITURES; PRESUMPTION OF
VIOLATION; CRIMINAL OFFENSE. (a) A general-purpose committee or
specific-purpose committee that makes a contribution or an
expenditure to support or oppose a ballot measure, or a person who
makes a direct campaign expenditure to support or oppose a ballot
measure, shall maintain a record of the contribution, expenditure,
or direct campaign expenditure until the second anniversary of the
date the contribution, expenditure, or direct campaign expenditure
is made.
(b) Not later than 48 hours after a person makes a direct
campaign expenditure to support or oppose a ballot measure, the
person shall certify to the commission, in the form and manner the
commission requires, that the person:
(1) has not in the four years preceding the date on
which the expenditure is made knowingly accepted money from foreign
nationals that in the aggregate exceeds $100,000; and
(2) will not for the remainder of the year during which
the ballot measure will appear on the ballot knowingly accept money
from foreign nationals that in the aggregate exceeds $100,000.
(c) An individual commits an offense if the individual
knowingly:
(1) fails to maintain a record described by Subsection
(a); or
(2) fails to submit the certification required by
Subsection (b).
(d) An offense under this section is a Class B misdemeanor.
(e) Any determination that a general-purpose committee,
specific-purpose committee, or person who made a contribution or
direct campaign expenditure to support or oppose a ballot measure
has accepted funds in the aggregate that exceed $100,000 from one or
more foreign nationals in the four years preceding the contribution
or direct campaign expenditure at issue shall create a presumption
that the committee or person has violated this section.
Sec. 253.206. ENFORCEMENT. (a) The commission may bring a
civil action to enforce this subchapter. In all actions brought
pursuant to this section, the burden of proof shall be on the
commission.
(b) Before discovery in an action brought under this
section, the court must hold a hearing to determine whether there is
probable cause to believe that a person has violated this
subchapter.
(c) If, after the hearing required by Subsection (b), the
court determines that:
(1) probable cause does not exist to believe that a
violation of this subchapter occurred, the court shall dismiss the
action with prejudice; or
(2) probable cause exists to believe that a violation
of this subchapter occurred, the court shall:
(A) enter an order stating the court's findings;
(B) resume the action; and
(C) cause the action to be expedited.
(d) After an affirmative finding under Subsection (c), a
defendant may, at a time determined by the court and before the
scheduling of a trial date, present evidence sufficient to rebut
the probable cause finding by making an ex parte presentation of
records to the court for in camera review.
(e) If the court determines that a general-purpose
committee or specific-purpose committee has accepted a
contribution in violation of this subchapter, the committee shall,
not later than the 30th day after the date of the court's
determination, return to the person who made the contribution the
contribution accepted in violation of this subchapter. If either
party appeals the court's determination, the court shall order the
contribution at issue to be placed in escrow pending the outcome of
the appeal.
(f) If a general-purpose committee or specific-purpose
committee that was determined to have accepted a contribution in
violation of this subchapter is unable to return all or part of the
contribution as required by Subsection (e), the committee's
directors, officers, and executive members are jointly and
severally liable for returning the remaining part of the
contribution.
(g) If the court determines that a person who made a direct
campaign expenditure to support or oppose a ballot measure has
violated this subchapter, the person shall, not later than the 30th
day after the date of the court's determination, disgorge to the
commission funds in an amount equal to the reported cost of the
direct campaign expenditure. If a person who is not an individual is
unable to disgorge the requisite funds under this subsection, its
directors, officers, or executive members shall be liable in their
personal capacities, jointly and severally, for the payment of the
amount due. In the event of an appeal, the court shall order the
funds subject to disgorgement to be placed in escrow pending the
outcome of the appeal.
(h) A person who violates this subchapter is liable for a
civil penalty in an amount not to exceed three times the amount of
the contribution accepted or expenditure made in violation of this
subchapter.
(i) If the commission prevails in an action brought under
Subsection (a), the court shall award:
(1) injunctive relief sufficient to prevent the
defendant from violating this subchapter or engaging in acts that
aid or abet violations of this subchapter; and
(2) statutory damages up to twice the amount of the
prohibited contribution or expenditure.
(j) The commission may bring an action to enjoin a person
who violates this subchapter from engaging in activities that would
require registration as a lobbyist under Chapter 305, Government
Code, for a period to be determined by the court. In determining
the period to prohibit a person from engaging in those activities,
the court shall consider:
(1) the seriousness of the violation, including the
nature, circumstances, extent, and gravity of the violation;
(2) whether the person acted in bad faith when
engaging in conduct constituting a violation of this subchapter;
(3) whether the person has previously violated this
subchapter; and
(4) the duration of an injunction necessary to deter
future violations.
Sec. 253.207. PROHIBITED DISCLOSURE OF CERTAIN DONORS;
CRIMINAL OFFENSE. (a) In this section:
(1) "Nonprofit organization" means an organization
exempt from federal income taxation under Section 501(a), Internal
Revenue Code of 1986, as an organization described by Section
501(c)(3) of that code.
(2) "Public servant" has the meaning assigned by
Section 1.07(41), Penal Code.
(b) An investigation of an alleged violation of this
subchapter must be conducted in a manner to ensure that the identity
of a person who makes a lawful donation to a nonprofit organization
is kept confidential. The commission or a court may not compel the
disclosure of the identity of a person who makes a lawful donation
to a nonprofit organization unless the disclosure is directly
related to an alleged violation of this subchapter.
(c) A public servant may not disclose to the public the
identity of a person who makes a lawful donation to a nonprofit
organization unless the person is determined to have violated this
subchapter.
(d) A public servant commits an offense if the individual
knowingly discloses or reveals to the public the identity of a
person who makes a lawful donation to a nonprofit organization,
unless the person has been determined to have violated this
subchapter by a court.
(e) For purposes of this section, a person has been
determined to have violated this subchapter by a court after an
order has been entered by the court to that effect.
(f) An offense under this section is a Class A misdemeanor.
SECTION 4. Subchapter E, Chapter 254, Election Code, is
amended by adding Section 254.131 to read as follows:
Sec. 254.131. ADDITIONAL CONTENTS OF REPORTS OF COMMITTEES
SUPPORTING OR OPPOSING BALLOT MEASURE. (a) In this section:
(1) "Foreign national" has the meaning assigned by
Section 253.201.
(2) "Directly or indirectly" means, with respect to an
act by a person, the person acting alone or jointly with, through,
or on behalf of another person.
(b) In addition to the contents required by Section 254.031,
the campaign treasurer of a general-purpose committee or
specific-purpose committee that supports or opposes a ballot
measure must include an affirmation that:
(1) the committee did not knowingly, whether directly
or indirectly:
(A) solicit or accept a contribution from a
foreign national; or
(B) solicit a foreign national to make an
expenditure on the committee's behalf; and
(2) no contribution included in the report was made
by:
(A) a foreign national; or
(B) a person that in the four years preceding the
date on which the contribution is made knowingly accepted, whether
directly or indirectly, money from one or more foreign nationals
that in the aggregate exceeds $100,000.
SECTION 5. The changes in law made by this Act to Chapters
252 and 254, Election Code, apply only to a campaign treasurer
appointment required to be filed under Chapter 252 or a report
required to be filed under Chapter 254 on or after the effective
date of this Act. A campaign treasurer appointment or report
required to be filed before the effective date of this Act is
governed by the law in effect at the time the appointment or report
was filed, and the former law is continued in effect for that
purpose.
SECTION 6. Subchapter G, Chapter 253, Election Code, as
added by this Act, applies only to a contribution or expenditure
made or an activity related to the making of a contribution or
expenditure that occurs on or after the effective date of this Act.
A contribution or expenditure made or a related activity that
occurs before the effective date of this Act is governed by the law
in effect at the time the contribution or expenditure was made or
the activity occurred, and the former law is continued in effect for
that purpose.
SECTION 7. This Act takes effect September 1, 2025.