SB 405

relating to restrictions on political contributions by
out-of-state contributors; providing a civil penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subchapter B, Chapter 253, Election Code, is
amended by adding Section 253.044 to read as follows:
Sec. 253.044.  POLITICAL CONTRIBUTION LIMITS RELATED TO
OUT-OF-STATE CONTRIBUTORS.  (a)  A candidate or an officeholder may
not knowingly accept, for an election in which the candidate's or
officeholder's name appears on the ballot, political contributions
(1)  are made by a person with a principal address that
is located outside this state; and
(A)  $5,000 if the election is for a statewide
(B)  $2,500 if the election is for a district
(C)  $1,000 if the election is for a county
(b)  A candidate or an officeholder who accepts a political
contribution in violation of Subsection (a) shall return the
contribution to the contributor not later than the later of:
(1)  the last day of the reporting period under Chapter
254 during which the contribution was accepted; or
(2)  the fifth day after the date the contribution was
(c)  A political committee may not make a political
contribution to a candidate or an officeholder for an election in
which the candidate's or officeholder's name appears on the ballot
if, during the preceding reporting period under Chapter 254, more
than 50 percent of the political contributions accepted by the
committee were made by persons with a principal address that is
(d)  A person who violates this section is liable for a civil
penalty not to exceed three times the amount of the political
contributions accepted or made in violation of this section.  The
commission may impose a civil penalty against a person under this
subsection only after a formal hearing is held as provided by
Subchapter E, Chapter 571, Government Code.
(e)  The commission shall adopt rules as necessary to
SECTION 2.  Section 253.044, Election Code, as added by this
Act, applies only to a political contribution made on or after the
effective date of this Act.  A contribution made before the
effective date of this Act is governed by the law in effect on the
date the contribution was made and is not aggregated with
contributions made on or after that date.
SECTION 3.  This Act takes effect September 1, 2025.