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.