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8 | 4 | | |
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9 | 5 | | |
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10 | 6 | | |
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11 | 7 | | A BILL TO BE ENTITLED |
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12 | 8 | | AN ACT |
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13 | 9 | | relating to the registration as a lobbyist of persons who engage in |
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14 | 10 | | certain lobbying activities on behalf of a foreign adversary and to |
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15 | 11 | | prohibitions on the receipt of compensation related to those |
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16 | 12 | | lobbying activities; providing a civil penalty. |
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17 | 13 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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18 | 14 | | SECTION 1. Section 305.003(a), Government Code, is amended |
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19 | 15 | | to read as follows: |
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20 | 16 | | (a) A person must register with the commission under this |
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21 | 17 | | chapter if the person: |
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22 | 18 | | (1) makes a total expenditure of an amount determined |
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23 | 19 | | by commission rule but not less than $200 in a calendar quarter, not |
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24 | 20 | | including the person's own travel, food, or lodging expenses or the |
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25 | 21 | | person's own membership dues, on activities described in Section |
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26 | 22 | | 305.006(b) to communicate directly with one or more members of the |
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27 | 23 | | legislative or executive branch to influence legislation or |
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28 | 24 | | administrative action; [or] |
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29 | 25 | | (2) receives, or is entitled to receive under an |
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30 | 26 | | agreement under which the person is retained or employed, |
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31 | 27 | | compensation or reimbursement, not including reimbursement for the |
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32 | 28 | | person's own travel, food, or lodging expenses or the person's own |
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33 | 29 | | membership dues, of more than an amount determined by commission |
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34 | 30 | | rule but not less than $200 in a calendar quarter from another |
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35 | 31 | | person to communicate directly with a member of the legislative or |
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36 | 32 | | executive branch to influence legislation or administrative |
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37 | 33 | | action; or |
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38 | 34 | | (3) communicates directly with one or more members of |
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39 | 35 | | the legislative or executive branch to influence legislation or |
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40 | 36 | | administrative action on behalf of a foreign adversary, a foreign |
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41 | 37 | | adversary client, or a foreign adversary political party, as those |
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42 | 38 | | terms are defined by Section 305.030. |
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43 | 39 | | SECTION 2. Subchapter B, Chapter 305, Government Code, is |
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44 | 40 | | amended by adding Section 305.030 to read as follows: |
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45 | 41 | | Sec. 305.030. COMPENSATION FROM FOREIGN ADVERSARY AND |
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46 | 42 | | RELATED PERSONS PROHIBITED; CIVIL ENFORCEMENT. (a) In this |
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47 | 43 | | section: |
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48 | 44 | | (1) "Control" means the direct or indirect power to |
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49 | 45 | | determine, direct, dictate, or decide important matters affecting |
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50 | 46 | | an entity, including through: |
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51 | 47 | | (A) the ownership of at least 20 percent of the |
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52 | 48 | | total outstanding voting interest in an entity; |
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53 | 49 | | (B) board representation; |
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54 | 50 | | (C) the ability to appoint or discharge a board |
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55 | 51 | | member, officer, director, employee, or contractor; |
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56 | 52 | | (D) proxy voting, a special share, a contractual |
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57 | 53 | | arrangement, a legal obligation, or a formal or informal |
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58 | 54 | | arrangement to act in concert; or |
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59 | 55 | | (E) another means of exercising power. |
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60 | 56 | | (2) "Foreign adversary" means: |
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61 | 57 | | (A) a foreign government or foreign |
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62 | 58 | | nongovernment person designated as a foreign adversary by the |
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63 | 59 | | United States secretary of commerce under 15 C.F.R. Section 791.4; |
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64 | 60 | | (B) an agency or entity under the control of a |
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65 | 61 | | country described by Paragraph (A); |
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66 | 62 | | (C) a person wholly or partly owned or operated |
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67 | 63 | | by or subject to the control of a country described by Paragraph |
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68 | 64 | | (A); |
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69 | 65 | | (D) a subsidiary or parent of a person described |
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70 | 66 | | by Paragraph (C); |
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71 | 67 | | (E) a person organized under the laws of or that |
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72 | 68 | | has its principal place of business in a country described by |
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73 | 69 | | Paragraph (A); and |
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74 | 70 | | (F) a subsidiary of a person described by |
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75 | 71 | | Paragraph (E). |
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76 | 72 | | (3) "Foreign adversary client" means: |
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77 | 73 | | (A) a current or former: |
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78 | 74 | | (i) official in the executive, legislative, |
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79 | 75 | | administrative, military, or judicial branch of a foreign |
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80 | 76 | | adversary; |
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81 | 77 | | (ii) official of a foreign adversary |
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82 | 78 | | political party; or |
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83 | 79 | | (iii) executive or officer of a foreign |
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84 | 80 | | adversary; |
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85 | 81 | | (B) a corporation, business, or other entity that |
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86 | 82 | | has been formed by, or for the benefit of, a person described by |
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87 | 83 | | Paragraph (A); and |
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88 | 84 | | (C) an immediate family member of a person |
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89 | 85 | | described by Paragraph (A), including the person's spouse, parent, |
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90 | 86 | | sibling, and child and a parent or sibling of the person's spouse. |
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91 | 87 | | (4) "Foreign adversary political party" means an |
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92 | 88 | | organization or a combination of individuals in the jurisdictional |
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93 | 89 | | limits of a foreign adversary, including a unit or branch of a |
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94 | 90 | | foreign adversary's government, that is engaged in an activity |
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95 | 91 | | wholly or partly devoted to or whose aim or purpose is to: |
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96 | 92 | | (A) establish, administer, control, or acquire |
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97 | 93 | | the administration or control of a foreign adversary or a |
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98 | 94 | | subdivision of a foreign adversary; or |
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99 | 95 | | (B) further or influence the political or public |
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100 | 96 | | interests, policies, or relations of a foreign adversary or a |
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101 | 97 | | subdivision of a foreign adversary. |
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102 | 98 | | (5) "Wholly or partly owned or operated" means: |
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103 | 99 | | (A) for a person that is a publicly traded |
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104 | 100 | | company, that a foreign adversary has: |
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105 | 101 | | (i) the ability to exercise control over |
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106 | 102 | | the company; |
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107 | 103 | | (ii) access to any material, nonpublic, and |
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108 | 104 | | technical information in the company's possession; or |
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109 | 105 | | (iii) other rights or involvement in |
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110 | 106 | | controlling or participating in the decision-making of the company |
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111 | 107 | | beyond those available to a retail investor holding an equivalent |
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112 | 108 | | share of ownership; and |
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113 | 109 | | (B) for a person that is a privately held |
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114 | 110 | | company, that a foreign adversary has any share of ownership of the |
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115 | 111 | | company. |
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116 | 112 | | (b) A registrant who is required to register under Section |
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117 | 113 | | 305.003(a)(3) may not receive or agree to receive direct or |
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118 | 114 | | indirect compensation, including intangible or in-kind |
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119 | 115 | | compensation, from a foreign adversary, a foreign adversary client, |
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120 | 116 | | or a foreign adversary political party on whose behalf the |
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121 | 117 | | registrant communicates directly with one or more members of the |
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122 | 118 | | legislative or executive branch to influence legislation or |
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123 | 119 | | administrative action. |
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124 | 120 | | (c) The attorney general may bring an action for injunctive |
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125 | 121 | | relief against a registrant who violates this section or is |
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126 | 122 | | threatening to violate this section. In an injunction issued under |
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127 | 123 | | this section, a court may include reasonable requirements to |
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128 | 124 | | prevent further violations of this section. |
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129 | 125 | | (d) In addition to injunctive relief under Subsection (c), |
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130 | 126 | | the attorney general may bring an action for civil penalties |
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131 | 127 | | against a registrant who violates this section. A civil penalty |
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132 | 128 | | assessed under this section must be in an amount not to exceed: |
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133 | 129 | | (1) $10,000 for each violation; and |
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134 | 130 | | (2) the amount of any compensation the registrant |
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135 | 131 | | received in violation of this section. |
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136 | 132 | | (e) The attorney general may recover reasonable expenses |
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137 | 133 | | incurred in bringing an action under this section, including court |
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138 | 134 | | costs, reasonable attorney's fees, investigative costs, witness |
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139 | 135 | | fees, and deposition costs. |
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140 | 136 | | SECTION 3. The changes in law made by this Act apply only to |
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141 | 137 | | conduct requiring a person to register as a lobbyist or to |
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142 | 138 | | compensation received by a person required to register as a |
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143 | 139 | | lobbyist under Chapter 305, Government Code, that occurs or is |
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144 | 140 | | received on or after the effective date of this Act. Conduct that |
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145 | 141 | | occurs or compensation received before the effective date of this |
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146 | 142 | | Act is governed by the law in effect on the date the conduct |
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147 | 143 | | occurred or compensation was received, and the former law is |
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148 | 144 | | continued in effect for that purpose. |
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149 | 145 | | SECTION 4. This Act takes effect September 1, 2025. |
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