Relating to the imposition of civil penalties for certain violations with respect to political contributions and expenditures made by certain persons who engage in lobbying activities.

Contracts

• Lobbying Engagement Letters: Must be amended to include indemnification clauses. External lobbyists must warrant compliance with Election Code Sec. 253.006 and 253.007; if their personal campaign finance violations trigger a probe or penalty against your association, they must bear the cost.
• Employment Agreements: For in-house Government Affairs Directors who also hold public office, define a violation of SB2781 as "Cause" for termination to protect the organization from reputational and financial fallout.

Hiring/Training

• "Revolving Door" Screening: HR and Legal must implement a mandatory 2-year contribution history audit for all new lobbyist hires. If a candidate has made restricted contributions in the last 24 months, they are statutorily barred from lobbying; hiring them exposes the firm to penalties based on their past financial activity.
• Firewall Training: Mandatory training for any staffer with a Campaign Treasurer Appointment. They must understand that funds cannot move from their personal campaign account to *any* other political entity while they are registered lobbyists.

Reporting & Record-Keeping

• Pre-Expenditure Authorization Log: Implement a "Stop-Check" workflow. No registered lobbyist may authorize a check from their personal campaign account without a documented compliance review confirming the recipient is not a restricted candidate or committee.
• 24-Month Lookback Ledger: Maintain a rolling log of all political contributions made by your lobbyists. This data is required to calculate potential liability exposure under Sec. 253.007.

Fees & Costs

• No New Filing Fees: There are no new administrative fees for registration.
• Penalty Exposure: The cost impact is punitive. Penalties are uncapped in total dollar amount, calculated as 200% of the prohibited transaction or 200% of *all* contributions made in the preceding two years, depending on the violation.