The bill, S.B. No. 405, introduces new restrictions on political contributions from out-of-state contributors in Texas. It adds Section 253.044 to the Election Code, which prohibits candidates or officeholders from knowingly accepting political contributions from individuals whose principal address is outside Texas if those contributions exceed specified limits: $5,000 for statewide offices, $2,500 for district offices, and $1,000 for county offices. Additionally, if a candidate or officeholder accepts a contribution in violation of this section, they are required to return the contribution within a specified timeframe. Political committees are also restricted from contributing to candidates if more than 50% of their contributions in the preceding reporting period came from out-of-state contributors.

The bill establishes civil penalties for violations, allowing for fines up to three times the amount of the contributions accepted or made in violation of the new rules. The Texas commission is tasked with enforcing these provisions and must conduct a formal hearing before imposing any penalties. The new regulations will apply only to contributions made on or after the effective date of the Act, which is set for September 1, 2025.

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