BILL ANALYSIS

Senate Research Center	S.B. 2781
89R16987 CJD-D	By: Birdwell
	State Affairs
	4/24/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

In 2019, the legislature passed H.B. 2677 which restricted former members of the legislature from engaging in activities that require them to register as lobbyists if they have made a political contribution using campaign funds in the past two years. The law is meant to prevent a situation where, for example, a lawmaker spreads campaign contributions around to colleagues, steps down or loses reelection�and then goes to lobby those same colleagues a short time later.

In 2023, the Texas Ethics Commission (TEC) issued an opinion that a former member registered to lobby could face fines of $5,000 or triple "the amount at issue" for a violation of the law. The TEC left "the amount at issue" undefined at the time of the opinion, but left it to their own discretion, which could result in exorbitant fines.

S.B. 2781 codifies in statute a maximum threshold on the civil penalty to twice the amount of the contribution or expenditure if a former member utilizes their campaign account for political donations during the two-year moratorium.  

As proposed, S.B. 2781 amends current law relating to the imposition of civil penalties for certain violations with respect to political contributions and expenditures made by certain persons who engage in lobbying activities.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 253.006, Election Code, as follows:

Sec. 253.006. CERTAIN CONTRIBUTIONS AND EXPENDITURES BY LOBBYISTS RESTRICTED. (a) Creates this subsection from existing text and makes no further changes.

(b) Provides that a person who violates this section is subject to a civil penalty in an amount not to exceed twice the amount of the political contribution or political expenditure made or authorized in violation of this section.

SECTION 2. Amends Section 253.007, Election Code, by adding Subsection (d), as follows:

(d) Provides that a person who violates Section 253.007 (Prohibition on Lobbying by Person Making or Authorizing Certain Political Contributions and Direct Campaign Expenditures) is subject to a civil penalty in an amount not to exceed twice the amount of all political contributions or political expenditures described by Subsection (b) (relating to prohibiting a person who knowingly makes or authorizes certain political contributions from engaging in any activities that require the person to register under Chapter 305 (Registration of Lobbyists), Government Code, during the two-year period after the date the person makes or authorizes the political contribution) made or authorized by the person in the two years preceding the date on which the activities in violation of this section occurred.

SECTION 3. Makes application of this Act prospective.

SECTION 4. Effective date: September 1, 2025.