Stricken language would be deleted from and underlined language would be added to present law. Act 998 of the Regular Session *SSS067* 04-08-2025 16:49:13 SSS067 State of Arkansas As Engrossed: H4/1/25 S4/8/25 1 95th General Assembly A Bill 2 Regular Session, 2025 HOUSE BILL 1800 3 4 By: Representative McAlindon 5 By: Senator M. McKee 6 7 For An Act To Be Entitled 8 AN ACT TO AMEND THE LAW CONCERNING DISCLOSURE FOR 9 CAMPAIGN FINANCE; TO REQUIRE DISCLOSURE BY A 10 REPRESENTATIVE OF A HOSTILE FOREIGN PRINCIPAL; TO 11 AMEND PORTIONS OF THE ARKANSAS CODE THAT RESULTED 12 FROM INITIATED ACT 1 OF 1990; AND FOR OTHER PURPOSES. 13 14 15 Subtitle 16 TO AMEND THE LAW CONCERNING DISCLOSURE 17 FOR CAMPAIGN FINANCE; TO REQUIRE 18 DISCLOSURE BY A REPRESENTATIVE OF A 19 HOSTILE FOREIGN PRINCIPAL; AND TO AMEND 20 PORTIONS OF THE ARKANSAS CODE THAT 21 RESULTED FROM INITIATED ACT 1 OF 1990. 22 23 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24 25 SECTION 1. Arkansas Code § 7 -6-217(g)(1) - (3), concerning the 26 creation of the Arkansas Ethics Commission and resulting from Initiated Act 1 27 of 1990, is amended to read as follows: 28 (g) The commission shall have the authority to: 29 (1) Under the Arkansas Administrative Procedure Act, § 25 -15-201 30 et seq., promulgate reasonable rules to implement and administer the 31 requirements of this subchapter, as well as § 7 -1-114 [repealed]; the 32 Disclosure Act for Public Initiatives, Referenda, and Measures Referred to 33 Voters, § 7-9-401 et seq.; § 19-11-718; § 21-8-301 et seq.; the Disclosure 34 Act for Lobbyists and State and Local Officials, § 21 -8-401 et seq., § 21-8-35 601 et seq., § 21-8-701 et seq., and § 21 -8-801 et seq.; § 21-8-901 et seq.; 36 As Engrossed: H4/1/25 S4/8/25 HB1800 2 04-08-2025 16:49:13 SSS067 § 21-8-1001 et seq.; § 21-8-1101 et seq.; § 25-1-125; and Arkansas 1 Constitution, Article 19, §§ 28 -30; and to govern procedures before the 2 commission, matters of commission operations, and all investigative and 3 disciplinary procedures and proceedings; 4 (2) Issue advisory opinions and guidelines on the requirements 5 of § 6-24-101 et seq.; § 7-1-103(a)(1)-(4), (6), and (7); § 7 -1-114 6 [repealed]; this subchapter; the Disclosure Act for Public Initiatives, 7 Referenda, and Measures Referred to Voters, § 7 -9-401 et seq.; § 19-11-718; § 8 21-8-301 et seq.; the Disclosure Act for Lobbyists and State and Local 9 Officials, § 21-8-401 et seq., § 21-8-601 et seq., § 21-8-701 et seq., and § 10 21-8-801 et seq.; § 21-8-901 et seq.; § 21-8-1001 et seq.; § 21-8-1101 et 11 seq.; § 25-1-125; and Arkansas Constitution, Article 19, §§ 28 -30; 12 (3) After a citizen complaint has been submitted to the 13 commission, investigate alleged violations of § 6 -24-101 et seq.; § 7-1-14 103(a)(1)-(4), (6), and (7); § 7 -1-114 [repealed]; this subchapter; the 15 Disclosure Act for Public Initiatives, Referenda, and Measures Referred to 16 Voters, § 7-9-401 et seq.; § 19-11-718; § 21-1-401 et seq.; § 21-8-301 et 17 seq.; the Disclosure Act for Lobbyists and State and Local Officials, § 21 -8-18 401 et seq., § 21-8-601 et seq., § 21-8-701 et seq., and § 21 -8-801 et seq.; 19 § 21-8-901 et seq.; § 21-8-1001 et seq.; § 21-8-1101 et seq.; § 25-1-125; and 20 Arkansas Constitution, Article 19, §§ 28 -30; and render findings and 21 disciplinary action thereon; 22 23 SECTION 2. Arkansas Code § 7 -6-218(a)(1), concerning citizen 24 complaints filed with the Arkansas Ethics Commission and resulting from 25 Initiated Act 1 of 1990, is amended to read as follows: 26 (a)(1) Any citizen may file a complaint with the Arkansas Ethics 27 Commission against a person covered by this subchapter, by § 6 -24-101 et 28 seq.; § 7-1-103(a)(1)-(4), (6), or (7); § 7 -1-114 [repealed]; the Disclosure 29 Act for Public Initiatives, Referenda, and Measures Referred to Voters, § 7 -30 9-401 et seq.; § 21-1-401 et seq.; § 21-8-301 et seq.; the Disclosure Act for 31 Lobbyists and State and Local Officials, § 21 -8-401 et seq., § 21-8-601 et 32 seq., § 21-8-701 et seq., and § 21 -8-801 et seq.; § 21-8-901 et seq.; § 21-8-33 1001 et seq.; § 21-8-1101 et seq.; § 25-1-125; and Arkansas Constitution, 34 Article 19, §§ 28-30, for an alleged violation of the subchapters or 35 sections. For purposes of this subdivision (a)(1), the Arkansas Ethics 36 As Engrossed: H4/1/25 S4/8/25 HB1800 3 04-08-2025 16:49:13 SSS067 Commission shall be considered a citizen. 1 2 SECTION 3. Arkansas Code § 7 -6-218(b)(1)(A), concerning citizen 3 complaints filed with the Arkansas Ethics Commission and resulting from 4 Initiated Act 1 of 1990, is amended to read as follows: 5 (b)(1)(A) Upon a complaint stating facts constituting an alleged 6 violation signed under penalty of perjury by any person, the Arkansas Ethics 7 Commission shall investigate the alleged violation of this subchapter or § 6 -8 24-101 et seq.; § 7-1-103(a)(1)-(4), (6), or (7); § 7 -1-114 [repealed]; the 9 Disclosure Act for Public Initiatives, Referenda, and Measures Referred to 10 Voters, § 7-9-401 et seq.; § 21-1-401 et seq.; § 21-8-301 et seq.; the 11 Disclosure Act for Lobbyists and State and Local Officials, § 21 -8-401 et 12 seq., § 21-8-601 et seq., § 21-8-701 et seq., and § 21 -8-801 et seq.; § 21-8-13 901 et seq.; § 21-8-1001 et seq.; § 21-8-1101 et seq.; § 25-1-125; and 14 Arkansas Constitution, Article 19, §§ 28 -30. 15 16 SECTION 4. Arkansas Code § 7 -6-218(b)(4), concerning citizen 17 complaints filed with the Arkansas Ethics Commission and resulting from 18 Initiated Act 1 of 1990, is amended to read as follows: 19 (4) If the Arkansas Ethics Commission finds a violation of this 20 subchapter; § 6-24-101 et seq.; § 7-1-103(a)(1)-(4), (6), or (7); § 7 -1-114 21 [repealed]; § 21-1-401 et seq.; § 21-8-301 et seq.; the Disclosure Act for 22 Lobbyists and State and Local Officials, § 21 -8-401 et seq., § 21-8-601 et 23 seq., § 21-8-701 et seq., and § 21 -8-801 et seq.; § 21-8-901 et seq.; § 21-8-24 1001 et seq.; § 21-8-1101 et seq.; § 25-1-125; or Arkansas Constitution, 25 Article 19, §§ 28-30, then the Arkansas Ethics Commission shall do one (1) or 26 more of the following, unless good cause be shown for the violation: 27 (A) Issue a public letter of caution or warning or 28 reprimand; 29 (B)(i) Notwithstanding the provisions of §§ 7 -6-202, 7-9-30 409, 21-8-403, and 21-8-903, and 21-8-1105, impose a fine of not less than 31 fifty dollars ($50.00) nor more than three thousand five hundred dollars 32 ($3,500) for negligent or intentional violation of this subchapter; § 6 -24-33 101 et seq.; § 7-1-114 [repealed]; the Disclosure Act for Public Initiatives, 34 Referenda, and Measures Referred to Voters, § 7 -9-401 et seq.; § 21-8-301 et 35 seq.; the Disclosure Act for Lobbyists and State and Local Officials, § 21 -8-36 As Engrossed: H4/1/25 S4/8/25 HB1800 4 04-08-2025 16:49:13 SSS067 401 et seq., § 21-8-601 et seq., § 21-8-701 et seq., and § 21 -8-801 et seq.; 1 § 21-8-901 et seq.; § 21-8-1001 et seq.; § 21-8-1101 et seq.; § 25-1-125; or 2 Arkansas Constitution, Article 19, §§ 28 -30. 3 (ii) A fine for violating § 7 -1-114 [repealed]; 4 shall not exceed one hundred fifty dollars ($150). 5 (iii) The Arkansas Ethics Commission shall adopt 6 rules governing the imposition of such fines in accordance with the 7 provisions of the Arkansas Administrative Procedure Act, § 25 -15-201 et seq. 8 (iv) All moneys received by the Arkansas Ethics 9 Commission in payment of fines shall be deposited into the State Treasury as 10 general revenues; 11 (C) Order the respondent to file or amend a statutorily 12 required disclosure form; or 13 (D)(i) Report its finding, along with such information and 14 documents as it deems appropriate, and make recommendations to the proper law 15 enforcement authorities. 16 (ii) When exercising the authority provided in this 17 subdivision (b)(4), the Arkansas Ethics Commission is not required to make a 18 finding of a violation of the laws under its jurisdiction. 19 20 Subchapter 11 —— Disclosure by Representatives of a Hostile Foreign 21 Principal 22 23 21-8-1101. Legislative findings. 24 The General Assembly finds that: 25 (1) The voters, citizens, and policymakers of this state are 26 entitled to transparency in the political and propaganda activities of 27 organizations that may be controlled by or under the influence of foreign 28 countries hostile to the interests of this state and of the United States; 29 (2) In an increasingly globalized world, determining whether an 30 organization’s political and propaganda activities are funded by hostile 31 foreign interests is often difficult; and 32 (3) Legislation is needed to ensure the transparency necessary 33 to allow voters, citizens, and policymakers to evaluate whether political and 34 propaganda activities are funded by potentially hostile foreign actors. 35 36 As Engrossed: H4/1/25 S4/8/25 HB1800 5 04-08-2025 16:49:13 SSS067 21-8-1102. Definitions. 1 As used in this subchapter: 2 (1) “Foreign-supported political organization” means a political 3 party or a domestic partnership, association, corporation, organization, or 4 any other combination of persons that has, within the past five (5) calendar 5 years, received money or other things of value from a hostile foreign 6 principal or a representative of a hostile foreign principal and that engages 7 in political activity; 8 (2) “Hostile foreign nation” means the: 9 (A) People’s Republic of China; 10 (B) Russian Federation; 11 (C) Democratic People’s Republic of Korea; or 12 (D) Islamic Republic of Iran; 13 (3) “Hostile foreign principal” means: 14 (A) A government of a hostile foreign nation, a political 15 party of a hostile foreign nation, or any member of a political party of a 16 hostile foreign nation; 17 (B) A nonresident alien of a hostile foreign nation; or 18 (C) A partnership, association, corporation, organization, 19 or other combination of persons organized under the law of or having its 20 principal place of business in a hostile foreign nation; 21 (4) “Political activity” means an activity that is performed to 22 influence an agency or public official of this state, a local government 23 entity within this state, or the public within this state, with reference to: 24 (A) Formulating, adopting, or changing the policies or 25 laws of this state; or 26 (B) Electing or opposing a candidate for local or state 27 public office, not including campaign donations; and 28 (5) “Representative of a hostile foreign principal” means a 29 person: 30 (A) Who acts as an agent, employee, representative, or 31 servant, or otherwise acts at the order, request, or under the direction or 32 control of a hostile foreign principal; 33 (B) Whose actions are financed in whole or in part by a 34 hostile foreign principal; and 35 (C) Who engages in political activity. 36 As Engrossed: H4/1/25 S4/8/25 HB1800 6 04-08-2025 16:49:13 SSS067 1 21-8-1103. Transparency in representation of hostile foreign 2 principals. 3 (a)(1) Except as otherwise provided in this subchapter, a person shall 4 not act as a representative of a hostile foreign principal unless the person 5 has filed a true and complete registration statement with the Secretary of 6 State as required by this subchapter. 7 (2) Except as otherwise provided in this section, a person who 8 becomes a representative of a hostile foreign principal shall file a 9 registration statement under oath with the Secretary of State within ten (10) 10 days of the person's becoming a representative of a hostile foreign 11 principal. 12 (3) The obligation of a representative of a hostile foreign 13 principal to file a registration statement, after the tenth day of becoming a 14 representative of a hostile foreign principal, shall continue from day to 15 day, and termination of status as a representative of a hostile foreign 16 principal shall not relieve the representative of a hostile foreign principal 17 from the obligation to file a registration statement for the period during 18 which he or she was a representative of a hostile foreign principal. 19 (b) The registration statement required under this section shall 20 include the following: 21 (1) The registrant's: 22 (A) Name; 23 (B) Principal business address; 24 (C) Other business addresses in the United States or 25 elsewhere; and 26 (D) Residence addresses, if any; and 27 (2) A comprehensive statement of the nature of the registrant's 28 business. 29 (c) A registered representative of a hostile foreign principal under 30 this subchapter shall update the registration statement required under this 31 section no less frequently than quarterly. 32 33 21-8-1104. Transparency in foreign -supported political organizations. 34 (a) No later than January 31, 2026, and each following year, each 35 foreign-supported political organization shall register with the Secretary of 36 As Engrossed: H4/1/25 S4/8/25 HB1800 7 04-08-2025 16:49:13 SSS067 State and provide the following information: 1 (1) The name of the foreign -supported political organization, 2 its business address, and upon request the names, titles, and addresses of 3 all officers and directors of the foreign -supported political organization; 4 (2) If the foreign-supported political organization is 5 affiliated with or a chapter of a national organization, the name of the 6 national organization, its address, and the names and addresses of its 7 officers and directors; 8 (3) A detailed statement of any expenditures of money or other 9 things of value made by the foreign -supported political organization within 10 the prior calendar year to influence an agency or public official of this 11 state, a local government entity within this state, or the public within this 12 state, with reference to formulating, adopting, or changing the policies or 13 laws of this state or electing a candidate to local or state public office; 14 and 15 (4) A detailed statement of all money or other thing of value 16 received by the foreign -supported political organization from a hostile 17 foreign principal or a representative of a hostile foreign principal during 18 the prior calendar year. 19 (b) A foreign-supported political organization under this subchapter 20 shall update the registration statement required under this section no less 21 frequently than annually. 22 23 21-8-1105. Penalties for violation. 24 (a) Upon receipt of a complaint that a representative of a hostile 25 foreign principal or a foreign -supported political organization has failed to 26 comply with the registration and reporting requirements of this subchapter, 27 or upon his or her own determination, the Secretary of State may investigate 28 and assess penalties for the violation of this subchapter. 29 (b) The Secretary of State may assess the following civil penalties: 30 (1) For any violation of this subchapter, up to five hundred 31 dollars ($500) per violation; and 32 (2) For willful or repeated violations of this subchapter, up to 33 two thousand dollars ($2,000) per violation. 34 35 21-8-1106. Rules. 36 As Engrossed: H4/1/25 S4/8/25 HB1800 8 04-08-2025 16:49:13 SSS067 The Secretary of State shall promulgate rules to: 1 (1) Create and maintain registration statement forms as 2 described under this subchapter; and 3 (2) Implement this subchapter. 4 5 /s/McAlindon 6 7 8 APPROVED: 4/22/25 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36