Foreign Money Ban Leaves Gifts Out Of The $100,000 Count

The text as introduced · 2,791 words

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.