Tennessee 2025-2026 Regular Session

Tennessee Senate Bill SB1060 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
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2	2	HOUSE BILL 888
3	3	By Todd
4	4
5	5	SENATE BILL 1060
6	6	By Lowe
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8	8
9	9	SB1060
10	10	001075
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13	13	AN ACT to amend Tennessee Code Annotated, Title 2,
14	14	Chapter 10, relative to certain political campaign
15	15	committees.
16	16
17	17	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
18	18	SECTION 1. Tennessee Code Annotated, Title 2, Chapter 10, is amended by adding
19	19	the following as a new part:
20	20	2-10-501.
21	21	As used in this part:
22	22	(1) "Directly or indirectly" means acting either alone or jointly with,
23	23	through, or on behalf of a political campaign committee, organization, person, or
24	24	other entity;
25	25	(2) "Foreign national" means:
26	26	(A) An individual who is not a citizen or lawful permanent resident
27	27	of the United States;
28	28	(B) A government, or subdivision, of a foreign country or
29	29	municipality thereof;
30	30	(C) A foreign political party;
31	31	(D) An entity, such as a partnership, association, corporation,
32	32	organization, or other combination of persons, that is organized under the
33	33	laws of, or has its principal place of business in, a foreign country; or
34	34	(E) A United States entity, such as a partnership, association,
35	35	corporation, or organization that is wholly or majority owned by a foreign
36	36	national, unless:
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41	41	(i) Any contribution or expenditure it makes is derived
42	42	entirely from funds generated by the United States entity's
43	43	operations in this country; and
44	44	(ii) All decisions concerning the contribution or expenditure
45	45	are made by individuals who are United States citizens or
46	46	permanent residents, except for setting overall budget amounts;
47	47	(3) "Independent expenditure" means an expenditure by a person for a
48	48	communication expressly advocating in support or opposition of a measure that
49	49	is not made with the cooperation or with the prior consent of, or in consultation
50	50	with, or at the request of, or suggestion of, a political campaign committee
51	51	created to support or oppose a measure;
52	52	(4) "Preliminary activity" includes, but is not limited to, conducting a poll,
53	53	drafting ballot measure language, utilizing a focus group, telephone calls, and
54	54	travel;
55	55	(5) "Prohibited sources" include contributions from or expenditures by a
56	56	foreign national; and
57	57	(6) "Tax-exempt organization":
58	58	(A) Means an organization that is described in section 501(c) of
59	59	the Internal Revenue Code of 1986 (26 U.S.C. § 501(c)) and is exempt
60	60	from taxation under section 501(a) of such code (26 U.S.C. § 501(a)); and
61	61	(B) Does not include political organization under section 527 of
62	62	Internal Revenue Code of 1986 (26 U.S.C. § 527).
63	63	2-10-502.
64	64	(a) When a political campaign committee is created to support or oppose a
65	65	measure, the treasurer of the committee shall file with the registry of election finance an
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70	70	accompanying certification that no preliminary activity was funded by prohibited sources,
71	71	whether directly or indirectly.
72	72	(b) After a political campaign committee is created to support or oppose a
73	73	measure, the committee shall not knowingly or willfully receive, solicit, or accept
74	74	contributions or expenditures from a prohibited source, whether directly or indirectly.
75	75	(c) A political campaign committee created to support or oppose a measure, and
76	76	a person who makes an independent expenditure in support of or in opposition to a
77	77	political campaign committee created to support or oppose a measure, shall keep
78	78	records of any contribution or expenditure and retain such records for at least two (2)
79	79	years after the date of the election to which the records refer.
80	80	2-10-503.
81	81	(a) When a political campaign committee created to support or oppose a
82	82	measure receives a contribution, the treasurer shall obtain from the donor an affirmation
83	83	that the donor is not a foreign national and has not knowingly or willfully accepted funds
84	84	aggregating in excess of one hundred thousand dollars ($100,000) from prohibited
85	85	sources within the four-year period immediately preceding the date the contribution is
86	86	made.
87	87	(b) Within forty-eight (48) hours of making an independent expenditure
88	88	supporting or opposing a measure, the person making the expenditure must certify to
89	89	the registry of election finance that the person has not knowingly or willfully accepted
90	90	funds aggregating in excess of one hundred thousand dollars ($100,000) from prohibited
91	91	sources within the four-year period immediately preceding the date the expenditure is
92	92	made and that it will not do so through the remainder of the calendar year in which the
93	93	measure will appear on the ballot.
94	94	2-10-504.
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99	99	(a) A foreign national shall not direct, dictate, control, or directly or indirectly
100	100	participate in the decision-making process of any person with regard to that person's
101	101	activities to influence a measure, such as decisions concerning the making of
102	102	contributions or expenditures to influence a measure.
103	103	(b) A foreign national shall not solicit, directly or indirectly, the making of a
104	104	donation, contribution, or expenditure by another person to influence a measure.
105	105	2-10-505.
106	106	(a) The registry of election finance may bring a civil action to enforce this part.
107	107	(b) In all actions brought pursuant to subsection (a), the burden of proof is on the
108	108	registry of election finance.
109	109	(c) Prior to discovery, the court shall set a hearing to determine if there is
110	110	probable cause to believe that a political campaign committee or person has violated this
111	111	part.
112	112	(d) If, after the hearing pursuant to subsection (c), the court determines:
113	113	(1) That no probable cause exists to believe that a violation of this part
114	114	has occurred, the court shall enter an order of dismissal with prejudice; or
115	115	(2) That probable cause exists to believe that a violation of this part has
116	116	occurred, the court shall enter an order to that effect and the case should
117	117	proceed to trial on an expedited basis.
118	118	(e) Subject to § 2-10-506, the person alleged to have violated this part may, at a
119	119	time to be determined by the court prior to the scheduling of trial, present evidence
120	120	sufficient to rebut the probable cause finding by making an ex parte presentation of
121	121	records to the court for an in camera review.
122	122	(f) A losing party under subdivision (d)(2) has the right to:
123	123	(1) An interlocutory expedited appeal; and
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128	128	(2) A stay of proceedings in the trial court.
129	129	(g)
130	130	(1) Within thirty (30) days of a finding that a political campaign committee
131	131	has violated this part, the committee shall refund the contribution to the original
132	132	contributor. If the finding is appealed, the contribution must be placed in escrow,
133	133	after which the funds must be disbursed in accordance with the final order.
134	134	(2) If the political campaign committee is unable to return the funds, the
135	135	directors, officers, or executive members of the committee are liable in their
136	136	personal capacity, jointly and severally, for the refund of said funds.
137	137	(h)
138	138	(1) Within thirty (30) days of a finding that a person making an
139	139	independent expenditure has violated this part, the entity making the
140	140	independent expenditure shall disgorge to the registry of election finance funds in
141	141	an amount equal to the reported cost of the independent expenditure.
142	142	(2) If the person is unable to disgorge the requisite funds, the person, or
143	143	the directors, officers, or executive members of the person if the person is an
144	144	entity, are liable in their personal capacities, jointly and severally, for the payment
145	145	of the amount due. If the finding is appealed, the funds subject to disgorgement
146	146	must be placed in escrow, after which they must be disbursed in accordance with
147	147	the final order.
148	148	(i) If the registry of election finance prevails in an action brought under
149	149	subsection (a), the court shall award:
150	150	(1) Injunctive relief sufficient to prevent the political campaign committee
151	151	or person from violating this part or engaging in acts that aid or abet violations of
152	152	this part; and
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157	157	(2) Statutory damages up to twice the amount of the prohibited
158	158	contribution or expenditure.
159	159	(j) In addition to the penalties in subsection (i) and any other remedies provided
160	160	by law, if the court finds a knowing or willful violation of this part, the court may assess a
161	161	penalty of up to three (3) times the statutory damages.
162	162	2-10-506.
163	163	(a) Lawful donors to a tax-exempt organization possess a right of privacy in their
164	164	donations. An investigation of an alleged violation of this part or a lawful court order in
165	165	an action brought under § 2-10-505 must occur in a manner that shields the identity of
166	166	lawful donors. A state or local governmental entity, court, or officer of the court shall not
167	167	collect or require the submission of information on the identity of any donor to a tax-
168	168	exempt organization other than those directly related to an alleged violation of this part.
169	169	(b) A state or local governmental entity, court, or officer of the court shall not
170	170	disclose to the public, or another government official not directly involved in the
171	171	investigation, information revealing the identity of any donor to a tax-exempt
172	172	organization, unless the information is regarding the identity of a donor that engaged in
173	173	conduct prohibited by this part after a final determination has been made that the donor
174	174	violated this part. Knowing or willful violations of this subsection (b) are punishable as a
175	175	Class A misdemeanor.
176	176	SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.