The bill, S.B. No. 1695, amends the Local Government Code by transferring and redesignating Section 89.002 to Section 556.0056 in the Government Code. It establishes regulations regarding the use of public funds by political subdivisions, including regional mobility authorities, toll road authorities, and transit authorities, specifically prohibiting them from spending public money or providing compensation to influence legislation. The bill allows certain exceptions, such as providing information to legislative members or advocating for legislation without requiring lobbyist registration, as long as these actions do not involve direct attempts to influence legislative outcomes.

Additionally, the bill outlines conditions under which political subdivisions may contribute to associations or organizations, including the requirement for a majority vote from the governing body and stipulations that the organization must not be affiliated with labor groups or engage in influencing legislation. It also provides legal recourse for taxpayers or residents if a political subdivision engages in prohibited activities, allowing them to seek injunctive relief and recover attorney's fees if they prevail in such actions. The provisions of this bill will take effect for expenditures made on or after September 1, 2025.