Foreign Money Ban Exempts Foreign-Owned Firms With U.S. Earnings

The text as introduced · 2,240 words

89R8217 CJD-D

By: Leo Wilson
H.B. No. 2981

A BILL TO BE ENTITLED

AN ACT

relating to prohibiting contributions, expenditures, and related

activities involving a specific-purpose committee for supporting

or opposing a ballot measure; creating a criminal offense;

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

Section 252.0033 to read as follows:

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:

(1) conducting a poll or focus group on the ballot

measure;

(2) drafting sample ballot measure language;

(3) making telephone calls in relation to the ballot

measure; or

(4) travel expenses incurred in relation to 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 SPECIFIC-PURPOSE COMMITTEE FOR

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;

and

(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 specific-purpose committee for supporting or opposing 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 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 money from foreign nationals for a

political purpose that in the aggregate exceeds $100,000;

(3) make an expenditure to a foreign national; or

(4) solicit a foreign national to make an expenditure

on the committee's behalf.

(b) On receipt of a contribution by a 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

foreign nationals for a political purpose 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 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; CRIMINAL

OFFENSE. (a) A person that makes a contribution or an expenditure

to support or oppose a specific-purpose committee shall maintain a

record of the contribution or expenditure until the second

anniversary of the date the contribution or expenditure is made.

(b) Not later than 48 hours after a person makes an

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 for a political purpose 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 for a political purpose that in the

aggregate exceeds $100,000.

(c) A person commits an offense if the person violates this

section. An offense under this section is a Class B misdemeanor.

Sec. 253.206. ENFORCEMENT. (a) The commission may bring a

civil action to enforce this subchapter.

(b) Before discovery in an action brought under this

section, the court must hold a hearing to determine if 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 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 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) A person who violates this subchapter is liable for a

civil penalty in an amount not to exceed twice the amount of the

contribution accepted or expenditure made in violation of this

subchapter.

Sec. 253.207. PROHIBITED DISCLOSURE OF CERTAIN DONORS;

CRIMINAL OFFENSE. (a) In this section, "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.

(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 government official may not disclose 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 person commits an offense if the person violates this

section. An offense under this section is a Class B misdemeanor.

Sec. 253.208. EFFECT OF VIOLATION ON PERSONS ENGAGED IN

LOBBYING. (a) A person who is determined to have violated this

subchapter may not engage in activities that would require

registration as a lobbyist under Chapter 305, Government Code, for

two years from the date of the determination.

(b) A person who is determined to have violated this

subchapter and who on the date of the determination is registered as

a lobbyist under Chapter 305, Government Code, may not engage in

activities for two years from the date of the expiration of the

person's registration under that chapter.

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,

"foreign national" has the meaning assigned by Section 253.201.

(b) In addition to the contents required by Section 254.031,

the campaign treasurer of a specific-purpose committee for

supporting or opposing a ballot measure must include an affirmation

that:

(1) the committee did not knowingly:

(A) solicit or accept a contribution from a

foreign national;

(B) make an expenditure to a foreign national; or

(C) 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 money

from foreign nationals for a political purpose 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.