S.B. No. 510 amends the Election Code of Texas by transferring and redesignating Section 16.039 to Section 12.007. The bill establishes that the Secretary of State may withhold funds from a voter registrar if they fail to timely perform specific duties related to voter registration, such as approving, changing, or canceling a voter's registration, scheduling hearings, determining challenges, or delivering notices. The registrar will receive written notice of the alleged violation and a reasonable opportunity to correct it before funds are withheld.

Additionally, the bill stipulates that if the registrar fulfills their duties within 30 days after the funds are withheld, the Secretary of State must distribute the funds. The Secretary is also tasked with prescribing rules for the administration of this section. The act is set to take effect on September 1, 2025.