Texas 2025 - 89th Regular

Texas Senate Bill SB1845 Compare Versions

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1-By: Hughes, Campbell S.B. No. 1845
2- (In the Senate - Filed March 4, 2025; March 13, 2025, read
3- first time and referred to Committee on State Affairs;
4- April 14, 2025, reported favorably by the following vote: Yeas 9,
5- Nays 0; April 14, 2025, sent to printer.)
6-Click here to see the committee vote
1+89R14789 CJD-F
2+ By: Hughes S.B. No. 1845
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117 A BILL TO BE ENTITLED
128 AN ACT
139 relating to the registration as a lobbyist of persons who engage in
1410 certain lobbying activities on behalf of a foreign adversary and to
1511 prohibitions on the receipt of compensation related to those
1612 lobbying activities; providing a civil penalty.
1713 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1814 SECTION 1. Section 305.003(a), Government Code, is amended
1915 to read as follows:
2016 (a) A person must register with the commission under this
2117 chapter if the person:
2218 (1) makes a total expenditure of an amount determined
2319 by commission rule but not less than $200 in a calendar quarter, not
2420 including the person's own travel, food, or lodging expenses or the
2521 person's own membership dues, on activities described in Section
2622 305.006(b) to communicate directly with one or more members of the
2723 legislative or executive branch to influence legislation or
2824 administrative action; [or]
2925 (2) receives, or is entitled to receive under an
3026 agreement under which the person is retained or employed,
3127 compensation or reimbursement, not including reimbursement for the
3228 person's own travel, food, or lodging expenses or the person's own
3329 membership dues, of more than an amount determined by commission
3430 rule but not less than $200 in a calendar quarter from another
3531 person to communicate directly with a member of the legislative or
3632 executive branch to influence legislation or administrative
3733 action; or
3834 (3) communicates directly with one or more members of
3935 the legislative or executive branch to influence legislation or
4036 administrative action on behalf of a foreign adversary, a foreign
4137 adversary client, or a foreign adversary political party, as those
4238 terms are defined by Section 305.030.
4339 SECTION 2. Subchapter B, Chapter 305, Government Code, is
4440 amended by adding Section 305.030 to read as follows:
4541 Sec. 305.030. COMPENSATION FROM FOREIGN ADVERSARY AND
4642 RELATED PERSONS PROHIBITED; CIVIL ENFORCEMENT. (a) In this
4743 section:
4844 (1) "Control" means the direct or indirect power to
4945 determine, direct, dictate, or decide important matters affecting
5046 an entity, including through:
5147 (A) the ownership of at least 20 percent of the
5248 total outstanding voting interest in an entity;
5349 (B) board representation;
5450 (C) the ability to appoint or discharge a board
5551 member, officer, director, employee, or contractor;
5652 (D) proxy voting, a special share, a contractual
5753 arrangement, a legal obligation, or a formal or informal
5854 arrangement to act in concert; or
5955 (E) another means of exercising power.
6056 (2) "Foreign adversary" means:
6157 (A) a foreign government or foreign
6258 nongovernment person designated as a foreign adversary by the
6359 United States secretary of commerce under 15 C.F.R. Section 791.4;
6460 (B) an agency or entity under the control of a
6561 country described by Paragraph (A);
6662 (C) a person wholly or partly owned or operated
6763 by or subject to the control of a country described by Paragraph
6864 (A);
6965 (D) a subsidiary or parent of a person described
7066 by Paragraph (C);
7167 (E) a person organized under the laws of or that
7268 has its principal place of business in a country described by
7369 Paragraph (A); and
7470 (F) a subsidiary of a person described by
7571 Paragraph (E).
7672 (3) "Foreign adversary client" means:
7773 (A) a current or former:
7874 (i) official in the executive, legislative,
7975 administrative, military, or judicial branch of a foreign
8076 adversary;
8177 (ii) official of a foreign adversary
8278 political party; or
8379 (iii) executive or officer of a foreign
8480 adversary;
8581 (B) a corporation, business, or other entity that
8682 has been formed by, or for the benefit of, a person described by
8783 Paragraph (A); and
8884 (C) an immediate family member of a person
8985 described by Paragraph (A), including the person's spouse, parent,
9086 sibling, and child and a parent or sibling of the person's spouse.
9187 (4) "Foreign adversary political party" means an
9288 organization or a combination of individuals in the jurisdictional
9389 limits of a foreign adversary, including a unit or branch of a
9490 foreign adversary's government, that is engaged in an activity
9591 wholly or partly devoted to or whose aim or purpose is to:
9692 (A) establish, administer, control, or acquire
9793 the administration or control of a foreign adversary or a
9894 subdivision of a foreign adversary; or
9995 (B) further or influence the political or public
10096 interests, policies, or relations of a foreign adversary or a
10197 subdivision of a foreign adversary.
10298 (5) "Wholly or partly owned or operated" means:
10399 (A) for a person that is a publicly traded
104100 company, that a foreign adversary has:
105101 (i) the ability to exercise control over
106102 the company;
107103 (ii) access to any material, nonpublic, and
108104 technical information in the company's possession; or
109105 (iii) other rights or involvement in
110106 controlling or participating in the decision-making of the company
111107 beyond those available to a retail investor holding an equivalent
112108 share of ownership; and
113109 (B) for a person that is a privately held
114110 company, that a foreign adversary has any share of ownership of the
115111 company.
116112 (b) A registrant who is required to register under Section
117113 305.003(a)(3) may not receive or agree to receive direct or
118114 indirect compensation, including intangible or in-kind
119115 compensation, from a foreign adversary, a foreign adversary client,
120116 or a foreign adversary political party on whose behalf the
121117 registrant communicates directly with one or more members of the
122118 legislative or executive branch to influence legislation or
123119 administrative action.
124120 (c) The attorney general may bring an action for injunctive
125121 relief against a registrant who violates this section or is
126122 threatening to violate this section. In an injunction issued under
127123 this section, a court may include reasonable requirements to
128124 prevent further violations of this section.
129125 (d) In addition to injunctive relief under Subsection (c),
130126 the attorney general may bring an action for civil penalties
131127 against a registrant who violates this section. A civil penalty
132128 assessed under this section must be in an amount not to exceed:
133129 (1) $10,000 for each violation; and
134130 (2) the amount of any compensation the registrant
135131 received in violation of this section.
136132 (e) The attorney general may recover reasonable expenses
137133 incurred in bringing an action under this section, including court
138134 costs, reasonable attorney's fees, investigative costs, witness
139135 fees, and deposition costs.
140136 SECTION 3. The changes in law made by this Act apply only to
141137 conduct requiring a person to register as a lobbyist or to
142138 compensation received by a person required to register as a
143139 lobbyist under Chapter 305, Government Code, that occurs or is
144140 received on or after the effective date of this Act. Conduct that
145141 occurs or compensation received before the effective date of this
146142 Act is governed by the law in effect on the date the conduct
147143 occurred or compensation was received, and the former law is
148144 continued in effect for that purpose.
149145 SECTION 4. This Act takes effect September 1, 2025.
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