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 the contributions exceed specified limits: $5,000 for statewide offices, $2,500 for district offices, and $1,000 for county offices. Additionally, political committees are restricted from contributing to candidates if more than 50% of their contributions in the preceding reporting period came from out-of-state sources.

Violations of these new provisions can result in civil penalties up to three times the amount of the contributions made in violation. The bill mandates that the Texas commission will hold a formal hearing before imposing any penalties and requires the commission to adopt necessary rules for implementation. 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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