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| 2 | 2 | | HOUSE DOCKET, NO. 984 FILED ON: 1/14/2025 |
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| 3 | 3 | | HOUSE . . . . . . . . . . . . . . . No. 875 |
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| 4 | 4 | | The Commonwealth of Massachusetts |
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| 5 | 5 | | _________________ |
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| 6 | 6 | | PRESENTED BY: |
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| 7 | 7 | | Erika Uyterhoeven |
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| 8 | 8 | | _________________ |
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| 9 | 9 | | To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General |
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| 10 | 10 | | Court assembled: |
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| 11 | 11 | | The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: |
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| 12 | 12 | | An Act to limit political spending by foreign-influenced corporations. |
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| 13 | 13 | | _______________ |
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| 14 | 14 | | PETITION OF: |
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| 15 | 15 | | NAME:DISTRICT/ADDRESS :DATE ADDED:Erika Uyterhoeven27th Middlesex1/14/2025Lindsay N. Sabadosa1st Hampshire2/19/2025 1 of 3 |
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| 16 | 16 | | HOUSE DOCKET, NO. 984 FILED ON: 1/14/2025 |
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| 17 | 17 | | HOUSE . . . . . . . . . . . . . . . No. 875 |
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| 18 | 18 | | By Representative Uyterhoeven of Somerville, a petition (accompanied by bill, House, No. 875) |
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| 19 | 19 | | of Erika Uyterhoeven and Lindsay N. Sabadosa relative to limiting political spending by foreign- |
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| 20 | 20 | | influenced corporations. Election Laws. |
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| 21 | 21 | | The Commonwealth of Massachusetts |
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| 22 | 22 | | _______________ |
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| 23 | 23 | | In the One Hundred and Ninety-Fourth General Court |
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| 24 | 24 | | (2025-2026) |
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| 25 | 25 | | _______________ |
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| 26 | 26 | | An Act to limit political spending by foreign-influenced corporations. |
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| 27 | 27 | | Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority |
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| 28 | 28 | | of the same, as follows: |
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| 29 | 29 | | 1 SECTION 1. Section 1 of Chapter 55 of the General Laws is hereby amended by |
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| 30 | 30 | | 2inserting the following definitions:-- |
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| 31 | 31 | | 3 “Chief executive officer”, the highest-ranking officer or decision-making individual with |
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| 32 | 32 | | 4authority over the corporation’s affairs. |
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| 33 | 33 | | 5 “Corporation”, a for-profit corporation, company, limited liability company, limited |
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| 34 | 34 | | 6partnership, business trust, business association, or other similar for-profit entity. |
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| 35 | 35 | | 7 “Foreign-influenced corporation”, a corporation for which at least one of the following |
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| 36 | 36 | | 8conditions is met: (1) a single foreign owner holds, owns, controls, or otherwise has direct or |
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| 37 | 37 | | 9indirect beneficial ownership of one percent or more of the total equity, outstanding voting |
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| 38 | 38 | | 10shares, membership units, or other applicable ownership interests of the corporation; (2) two or |
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| 39 | 39 | | 11more foreign owners, in aggregate, hold, own, control, or otherwise have direct or indirect |
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| 40 | 40 | | 12beneficial ownership of five percent or more of the total equity, outstanding voting shares, 2 of 3 |
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| 41 | 41 | | 13membership units, or other applicable ownership interests of the corporation; or (3) a foreign |
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| 42 | 42 | | 14owner participates directly or indirectly in the corporation’s decision-making process with |
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| 43 | 43 | | 15respect to the corporation’s political activities in the United States. |
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| 44 | 44 | | 16 “Foreign investor”, a person or entity that (1) holds, owns, controls, or otherwise has |
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| 45 | 45 | | 17direct or indirect beneficial ownership of equity, outstanding voting shares, membership units, or |
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| 46 | 46 | | 18other applicable ownership interests of a corporation, and (2) is a government of a foreign |
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| 47 | 47 | | 19country, or a foreign political party, or a partnership, association, corporation, organization, or |
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| 48 | 48 | | 20other combination of persons organized under the laws of or having its principal place of |
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| 49 | 49 | | 21business in a foreign country, or an individual outside the United States who is not a citizen of |
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| 50 | 50 | | 22the United States or a national of the United States and who is not lawfully admitted for |
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| 51 | 51 | | 23permanent residence. |
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| 52 | 52 | | 24 “Foreign owner”, (1) a foreign investor or (2) a corporation wherein a foreign investor |
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| 53 | 53 | | 25holds, owns, controls, or otherwise has directly or indirectly acquired a beneficial ownership of |
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| 54 | 54 | | 26equity or voting shares in an amount that is equal to or greater than 50 percent of the total equity |
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| 55 | 55 | | 27or outstanding voting shares. |
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| 56 | 56 | | 28 SECTION 2. Section 8 of said Chapter 55 is hereby amended by inserting after the |
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| 57 | 57 | | 29second paragraph the following new paragraphs:-- |
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| 58 | 58 | | 30 No foreign-influenced corporation shall make an independent expenditure, or an |
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| 59 | 59 | | 31electioneering communication expenditure, or a contribution to an independent expenditure PAC |
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| 60 | 60 | | 32as defined in Section 18A, or a contribution to a ballot question committee, or an expenditure for |
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| 61 | 61 | | 33the purpose of promoting or opposing a charter change, referendum question, constitutional |
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| 62 | 62 | | 34amendment, or other question submitted to the voters. 3 of 3 |
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| 63 | 63 | | 35 Any corporation that makes an independent expenditure, or an electioneering |
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| 64 | 64 | | 36communication expenditure, or a contribution to an independent expenditure PAC as defined in |
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| 65 | 65 | | 37section 18A, or a contribution to a ballot question committee, or an expenditure for the purpose |
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| 66 | 66 | | 38of promoting or opposing a charter change, referendum question, constitutional amendment, or |
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| 67 | 67 | | 39other question submitted to the voters shall, within 7 business days after making such |
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| 68 | 68 | | 40expenditure or contribution, file with the director, a statement of certification, signed by the chief |
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| 69 | 69 | | 41executive officer under penalty of perjury, avowing that, after due inquiry, the corporation was |
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| 70 | 70 | | 42not a foreign-influenced corporation on the date such expenditure or contribution was made. |
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| 71 | 71 | | 43 SECTION 3. Section 18G of Chapter 55 is further amended by inserting after the second |
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| 72 | 72 | | 44sentence of paragraph two the following:-- |
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| 73 | 73 | | 45 Unless the individual, corporation, group, association, labor union or other entity making |
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| 74 | 74 | | 46the independent expenditure or electioneering communication has received a statement of |
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| 75 | 75 | | 47certification from each person or entity required to be listed in the top contributors, avowing |
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| 76 | 76 | | 48under penalty of perjury that none of the funds used to make each such person or entity’s |
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| 77 | 77 | | 49contribution were derived from foreign-influenced corporations, the advertisement or |
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| 78 | 78 | | 50communication shall also include the statement: “Some of the funds used to pay for this message |
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| 79 | 79 | | 51may have been provided by foreign-influenced corporations.” The individual, corporation, group, |
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| 80 | 80 | | 52association, labor union or other entity making the independent expenditure or electioneering |
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| 81 | 81 | | 53communication shall be entitled to rely on such a statement of certification provided by the |
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| 82 | 82 | | 54contributor, unless the individual, corporation, group, association, labor union or other entity has |
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| 83 | 83 | | 55actual knowledge that such certification is false. |
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