Relating to the contents of a campaign treasurer appointment and report of political contributions and expenditures by a political committee that supports or opposes a ballot measure and prohibitions applicable to those political committees, certain foreign nationals, and persons associated with foreign nationals on making or receiving contributions or expenditures and engaging in certain related activities; creating a criminal offense; providing a civil penalty.

The text as introduced · 2,621 words

90R2748 CJD-F

By: Shaheen
H.B. No. 1038

A BILL TO BE ENTITLED

AN ACT

relating to the contents of a campaign treasurer appointment and

report of political contributions and expenditures by a political

committee that supports or opposes a ballot measure and

prohibitions applicable to those political committees, certain

foreign nationals, and persons associated with foreign nationals on

making or receiving contributions or expenditures and engaging in

certain related activities; 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, a county court at law, a statutory probate court, a

county court, or the business 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);

(17) grants or denies a motion for summary judgment

filed by a contractor based on Section 97.002; [ or ]

(18) grants or denies a motion filed under Section

402.103(d), Government Code ; or

(19) 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 POLITICAL

COMMITTEE THAT SUPPORTS OR OPPOSES BALLOT MEASURE. (a) In addition

to the information required by Section 252.002, a campaign

treasurer appointment by a political committee that supports or

opposes a ballot measure must include an affidavit certifying that

the committee, acting alone or jointly with, through, or on behalf

of another person, did not receive direct or indirect funding from a

foreign national, as defined by Section 253.201, for a preliminary

activity in connection with the ballot measure.

(b) For purposes of this section, a preliminary activity in

connection with a ballot measure includes:

(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) incurring travel expenses 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 POLITICAL COMMITTEES THAT SUPPORT OR

OPPOSE 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 organized under the laws of the

United States, including the laws of each state of the United

States, that is wholly or mostly owned by a person described by

Paragraph (A), (B), (C), or (D).

(3) "Revenue" means:

(A) employment income, including any salary,

wages, allowances, overtime pay, pension, annuity, bonuses, or any

other monetary income a person receives as compensation for

employment or the provision of services;

(B) a gift; and

(C) an inheritance.

Sec. 253.202. APPLICABILITY. (a) A reference in this

subchapter to a political committee means a political committee

that supports or opposes a ballot measure.

(b) For purposes of this subchapter, a prohibition under

this chapter related to contributions from and expenditures by a

foreign national that is a person described by Section

253.201(2)(E) does not apply if:

(1) the contribution or expenditure is derived

entirely from money generated by the person's operations in the

United States; and

(2) all decisions related to the contribution or

expenditure are made by individuals who are United States citizens

or nationals, except for decisions on setting overall budget

amounts.

Sec. 253.203. PROHIBITED CONTRIBUTIONS AND EXPENDITURES;

AFFIRMATION REQUIRED. (a) A political 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, directly or indirectly and other

than revenue, 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 political 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 other than

revenue from one or more foreign nationals that in the aggregate

exceeds $100,000.

(c) For purposes of this section, a political committee that

solicits or accepts a contribution from a foreign national and has

accepted contributions from one or more foreign nationals that in

the aggregate exceed $100,000 during the preceding four-year period

is presumed to have knowingly solicited or accepted the

contribution in violation of Subsection (a).

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. CERTIFICATION REQUIREMENTS RELATED TO

CERTAIN CONTRIBUTIONS AND EXPENDITURES; CRIMINAL OFFENSE. (a) On

the filing of a report required by Chapter 254 by a political

committee or by a person that has made a direct campaign expenditure

to support or oppose a ballot measure, the committee or the person

shall certify to the commission, in the form and manner the

commission requires, that the committee or person:

(1) has not in the four years preceding the date on

which the expenditure was made knowingly accepted money other than

revenue from one or more 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

other than revenue from one or more foreign nationals that in the

aggregate exceeds $100,000.

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

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

(c) In addition to the penalty under Subsection (b), a

person who violates this section is liable for a civil penalty in an

amount not to exceed twice the amount of the contribution or

expenditure for which the person failed to make a certification as

required by this section.

Sec. 253.206. ENFORCEMENT. (a) The attorney general may

bring a civil action to enforce this subchapter. In an action

brought under this section, the burden of proof is on the state.

(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 political 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) 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.

(g) If a political committee that was determined to have

accepted a contribution in violation of this subchapter is

financially unable to return all or part of the contribution as

required by Subsection (e) or pay a civil penalty imposed under

Subsection (f), the committee's directors, officers, and executive

members are jointly and severally liable for returning the

remaining part of the contribution or paying the civil penalty.

(h) In addition to the penalty under Subsection (f), the

court shall issue injunctive relief to prevent a person that

violates this subchapter from committing further violations of this

subchapter or from aiding and abetting a violation of this

subchapter. The attorney general 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) of that code.

(2) "Public servant" has the meaning assigned by

Section 1.07, 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 attorney general 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 person commits an offense if the person is a public

servant and the person violates this section. An offense under this

section is a Class A misdemeanor.

(e) For the purposes of this section, a person is determined

to have violated this subchapter if a court has entered an order

finding that the person has violated this subchapter.

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 POLITICAL

COMMITTEES THAT SUPPORT OR OPPOSE BALLOT MEASURE. (a) In this

section, "directly or indirectly," "foreign national," and

"revenue" have the meanings assigned by Section 253.201.

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

the campaign treasurer of a political committee that supports or

opposes a ballot measure must include an affirmation that:

(1) the committee did not knowingly and 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 money,

directly or indirectly and other than revenue, 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, 2027.