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.