According to the Legislative Budget Board (LBB), SB 2781 is not expected to have a significant fiscal impact on the State of Texas. According to the Legislative Budget Board’s fiscal note, agencies such as the Texas Ethics Commission and the Office of Court Administration do not anticipate meaningful costs associated with implementing the bill. The Texas Ethics Commission, which would likely oversee enforcement of the new civil penalties, indicated that existing resources are sufficient to absorb any additional responsibilities created by the legislation.

Additionally, the Office of Court Administration noted that while the bill may result in a modest increase in civil case filings due to enforcement of the new restrictions and penalties, this increased docket load is expected to be manageable within current operational and budgetary capacities. The bill does not require the creation of new administrative structures or the expansion of personnel, which contributes to its minimal fiscal footprint.

At the local level, the legislation similarly carries no significant fiscal implications. Local governmental units are not expected to be burdened with enforcement or administrative duties under the provisions of SB 2781, as the regulatory framework remains primarily with state-level entities such as the Ethics Commission and courts. Overall, SB 2781 is fiscally neutral while still offering substantive reforms to campaign finance enforcement in Texas.

SB 2781 represents a focused and practical enhancement to Texas campaign finance law, specifically targeting the intersection of lobbying activity and the use of political contributions. The bill builds upon existing ethics reforms, such as the 2019 passage of HB 2677, and seeks to close remaining loopholes that allow former lawmakers or other registrants under Chapter 305 of the Government Code to exert undue influence by distributing campaign funds shortly before transitioning into lobbying roles. By codifying a clear and proportional penalty structure for violations, SB 2781 adds clarity, consistency, and fairness to enforcement procedures.

From a liberty principles perspective, the bill strongly supports individual liberty by helping ensure fair and transparent governance, preventing undue influence in the political process. It reinforces personal responsibility by holding former lawmakers and lobbyists accountable for their use of campaign funds. While it introduces penalties, it does so in a measured way that respects limited government—there are no new enforcement bodies or mandates, and the law relies on existing state structures. Civil penalties are capped at twice the amount of the illegal contribution or expenditure, balancing deterrence with predictability and fairness.

The fiscal note confirms that SB 2781 is not expected to produce significant costs to the state or local governments. Both the Texas Ethics Commission and the Office of Court Administration have affirmed that any new responsibilities or case volume can be managed within current resources, underscoring the bill’s efficiency and minimal administrative burden.

Overall, SB 2781 addresses a targeted but important issue in campaign ethics with precision and balance. It is a thoughtful extension of past reforms, and as such, Texas Policy Research recommends that lawmakers vote YES on SB 2781 based on its alignment with liberty principles and sound policy design.

• Individual Liberty: The bill promotes a political environment where voters and candidates can engage more freely and fairly. By limiting how former politicians-turned-lobbyists can use campaign funds, it helps prevent behind-the-scenes influence and protects the public’s right to an honest and transparent democratic process. It ensures that no one has an unfair advantage simply because they have leftover campaign money to spend on building influence.
• Personal Responsibility: The bill holds lobbyists personally accountable for how they use political contributions. If they misuse campaign funds in a way that violates the law, they face financial penalties. This reinforces the principle that individuals should bear the consequences of their actions, especially in public or quasi-public roles like lobbying.
• Free Enterprise: The bill doesn’t restrict businesses or individuals from engaging in political activity generally. It only targets the use of specific funds (campaign contributions) by a specific group (registered lobbyists). Businesses can still contribute, advocate, or lobby—this bill simply ensures that political donations aren’t being recycled inappropriately to gain influence.
• Private Property Rights: There is no intrusion on private property or personal assets. The bill only regulates how leftover political funds can be used—funds that were given for public campaign purposes, not private use. Therefore, private property rights remain unaffected.
• Limited Government: Although the bill imposes penalties, it does so using existing enforcement mechanisms like the Texas Ethics Commission and civil courts. It doesn’t create new agencies or broaden state control. In fact, clarifying rules and setting clear limits on fines prevent overreach by bureaucracies that might otherwise issue arbitrary or excessive penalties, as mentioned in past concerns with the Ethics Commission’s discretion.