| 1 | 1 | | 89R3770 MZM-F |
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| 2 | 2 | | By: Middleton S.B. No. 405 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to restrictions on political contributions by |
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| 10 | 10 | | out-of-state contributors; providing a civil penalty. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Subchapter B, Chapter 253, Election Code, is |
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| 13 | 13 | | amended by adding Section 253.044 to read as follows: |
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| 14 | 14 | | Sec. 253.044. POLITICAL CONTRIBUTION LIMITS RELATED TO |
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| 15 | 15 | | OUT-OF-STATE CONTRIBUTORS. (a) A candidate or an officeholder may |
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| 16 | 16 | | not knowingly accept, for an election in which the candidate's or |
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| 17 | 17 | | officeholder's name appears on the ballot, political contributions |
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| 18 | 18 | | that: |
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| 19 | 19 | | (1) are made by a person with a principal address that |
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| 20 | 20 | | is located outside this state; and |
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| 21 | 21 | | (2) in the aggregate exceed: |
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| 22 | 22 | | (A) $5,000 if the election is for a statewide |
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| 23 | 23 | | office; |
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| 24 | 24 | | (B) $2,500 if the election is for a district |
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| 25 | 25 | | office; or |
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| 26 | 26 | | (C) $1,000 if the election is for a county |
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| 27 | 27 | | office. |
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| 28 | 28 | | (b) A candidate or an officeholder who accepts a political |
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| 29 | 29 | | contribution in violation of Subsection (a) shall return the |
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| 30 | 30 | | contribution to the contributor not later than the later of: |
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| 31 | 31 | | (1) the last day of the reporting period under Chapter |
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| 32 | 32 | | 254 during which the contribution was accepted; or |
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| 33 | 33 | | (2) the fifth day after the date the contribution was |
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| 34 | 34 | | accepted. |
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| 35 | 35 | | (c) A political committee may not make a political |
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| 36 | 36 | | contribution to a candidate or an officeholder for an election in |
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| 37 | 37 | | which the candidate's or officeholder's name appears on the ballot |
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| 38 | 38 | | if, during the preceding reporting period under Chapter 254, more |
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| 39 | 39 | | than 50 percent of the political contributions accepted by the |
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| 40 | 40 | | committee were made by persons with a principal address that is |
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| 41 | 41 | | located outside this state. |
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| 42 | 42 | | (d) A person who violates this section is liable for a civil |
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| 43 | 43 | | penalty not to exceed three times the amount of the political |
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| 44 | 44 | | contributions accepted or made in violation of this section. The |
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| 45 | 45 | | commission may impose a civil penalty against a person under this |
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| 46 | 46 | | subsection only after a formal hearing is held as provided by |
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| 47 | 47 | | Subchapter E, Chapter 571, Government Code. |
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| 48 | 48 | | (e) The commission shall adopt rules as necessary to |
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| 49 | 49 | | implement this section. |
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| 50 | 50 | | SECTION 2. Section 253.044, Election Code, as added by this |
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| 51 | 51 | | Act, applies only to a political contribution made on or after the |
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| 52 | 52 | | effective date of this Act. A contribution made before the |
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| 53 | 53 | | effective date of this Act is governed by the law in effect on the |
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| 54 | 54 | | date the contribution was made and is not aggregated with |
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| 55 | 55 | | contributions made on or after that date. |
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| 56 | 56 | | SECTION 3. This Act takes effect September 1, 2025. |
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