89R3770 MZM-F By: Middleton S.B. No. 405 A BILL TO BE ENTITLED AN ACT relating to restrictions on political contributions by out-of-state contributors; providing a civil penalty. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter B, Chapter 253, Election Code, is amended by adding Section 253.044 to read as follows: Sec. 253.044. POLITICAL CONTRIBUTION LIMITS RELATED TO OUT-OF-STATE CONTRIBUTORS. (a) A candidate or an officeholder may not knowingly accept, for an election in which the candidate's or officeholder's name appears on the ballot, political contributions that: (1) are made by a person with a principal address that is located outside this state; and (2) in the aggregate exceed: (A) $5,000 if the election is for a statewide office; (B) $2,500 if the election is for a district office; or (C) $1,000 if the election is for a county office. (b) A candidate or an officeholder who accepts a political contribution in violation of Subsection (a) shall return the contribution to the contributor not later than the later of: (1) the last day of the reporting period under Chapter 254 during which the contribution was accepted; or (2) the fifth day after the date the contribution was accepted. (c) A political committee may not make a political contribution to a candidate or an officeholder for an election in which the candidate's or officeholder's name appears on the ballot if, during the preceding reporting period under Chapter 254, more than 50 percent of the political contributions accepted by the committee were made by persons with a principal address that is located outside this state. (d) A person who violates this section is liable for a civil penalty not to exceed three times the amount of the political contributions accepted or made in violation of this section. The commission may impose a civil penalty against a person under this subsection only after a formal hearing is held as provided by Subchapter E, Chapter 571, Government Code. (e) The commission shall adopt rules as necessary to implement this section. SECTION 2. Section 253.044, Election Code, as added by this Act, applies only to a political contribution made on or after the effective date of this Act. A contribution made before the effective date of this Act is governed by the law in effect on the date the contribution was made and is not aggregated with contributions made on or after that date. SECTION 3. This Act takes effect September 1, 2025.