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SB-1151 Political Reform Act of 1974: foreign agents.(2023-2024)

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Date Published: 06/17/2024 09:00 PM
SB1151:v98#DOCUMENT

Amended  IN  Assembly  June 17, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill
No. 1151

Introduced by Senator Hurtado

February 14, 2024

An act to amend Sections 83105 and 83115 of, and to add Article 1.5 (commencing with Section 86150) to Chapter 6 of Title 9 of, the Government Code, relating to the Political Reform Act of 1974.


LEGISLATIVE COUNSEL'S DIGEST


SB 1151, as amended, Hurtado. Political Reform Act of 1974: foreign agents.
Under existing law, an individual or entity that receives compensation to influence legislative or administrative action, as specified, is required to register as a lobbyist or lobbying firm.
This bill would require an individual who engages in certain certain individuals who engage in specified activities related to influencing legislative or administrative action to register as an agent of a foreign principal and to file periodic reports with the Secretary of State, pursuant to procedures set forth in, and subject to enforcement under, the Political Reform Act of 1974. A violation of the Political Reform Act of 1974 is punishable as a misdemeanor. By expanding the scope of existing crimes, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The Political Reform Act of 1974, an initiative measure, provides that the Legislature may amend the act to further the act’s purposes upon a 2/3 vote of each house of the Legislature and compliance with specified procedural requirements.
This bill would declare that it furthers the purposes of the act.
Vote: 2/3   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 (a) Foreign governments increasingly engage in efforts to influence our domestic and foreign policies, legislation, democratic processes, and public opinions.
(b) The disclosure and transparency of activities conducted on behalf of foreign principals is essential for maintaining and fostering public trust while safeguarding the democratic process.
(c) The Legislature has a vested interest in curtailing hidden actors who seek to affect our political debates and governmental institutions without disclosing that they are doing so on behalf of a foreign principal.
(d) Originally enacted in 1938, the federal Foreign Agents Registration Act (FARA) helps the American people and their elected officials understand who is really behind such influence.
(e) FARA is one of the most important tools the U.S. government has to combat the rising threat of foreign influence in our political and regulatory processes.
(f) The Legislature must ensure there is transparency and accountability for those who advocate in our political and regulatory processes and influence our democratic systems so we can continue to protect the vital institutions of our society.
(g) The purpose of this act is to promote transparency in political activities within the state and to protect the integrity of the state’s political and regulatory processes while also brining awareness of the federal Foreign Agents Registration Act. in a manner similar to the FARA.
(h) Accordingly, it is the intent of the Legislature in enacting this measure to codify provisions similar to certain provisions of the FARA, such that they are enforceable by the California Secretary of State with respect to state and local governments in California.

SEC. 2.

 Section 83105 of the Government Code is amended to read:

83105.
 Each member of the commission shall be an elector. A member of the commission, during the member’s tenure, shall not hold any other public office, serve as an officer of any political party or partisan organization, participate in or contribute to an election campaign, or employ or be employed as a lobbyist or agent of a foreign principal nor, during the member’s term of appointment, seek election to any other public office. Members of the commission may be removed by the Governor, with concurrence of the Senate, for substantial neglect of duty, gross misconduct in office, inability to discharge the powers and duties of office or violation of this section, after written notice and opportunity for a reply.

SEC. 3.

 Section 83115 of the Government Code is amended to read:

83115.
 Upon the sworn complaint of any person or on its own initiative, the commission shall investigate possible violations of this title relating to any agency, official, election, lobbyist, agent of a foreign principal, or legislative or administrative action. Within 14 days after receipt of a complaint under this section, the commission shall notify in writing the person who made the complaint of the action, if any, the commission has taken or plans to take on the complaint, together with the reasons for such action or nonaction. If no decision has been made within 14 days, the person who made the complaint shall be notified of the reasons for the delay and shall subsequently receive notification as provided above.

SEC. 4.

 Article 1.5 (commencing with Section 86150) is added to Chapter 6 of Title 9 of the Government Code, to read:
Article  1.5. California Foreign Agents Registration Act

86150.
 For the purposes of this article, the following definitions apply:
(a) “Agent” or “Agent of a foreign principal” means:
(1) Any person who acts as a representative, employee, or servant, or any person who acts in any other capacity at the order, request, or under the direction or control, of a foreign principal or of a person whose activities are directly or indirectly supervised, directed, controlled, financed, or subsidized in whole or in major part by a foreign principal, and who directly or through any other person does any of the following:

(i)

(A) Communicates with any elective state official, agency official, or legislative official for the purpose of influencing legislative or administrative action for or in the interests of a foreign principal.

(ii)

(B) Acts as a public-relations counsel, publicity agent, information-service employee or political consultant for or in the interests of such foreign principal for the purpose of influencing legislative or administrative action.

(iii)

(C) Solicits, collects, disburses, or dispenses contributions, loans, money, or other things of value for the purpose of influencing legislative or administrative action for or in the interest of such foreign principal; or

(iv)

(D) Represents the interests of a foreign principal before any agency or official of the state.
(2) Any person who agrees, consents, assumes, or purports to act as, or who is or holds themselves out to be, whether or not pursuant to contractual relationship, an agent of a foreign principal as defined in paragraph (1) of this subdivision.
(b) “Foreign political party” includes any organization or any other combination of individuals in a country other than the United States, or any unit or branch thereof, having for an aim or purpose, or which is engaged in any activity devoted in whole or in part to, the establishment, administration, control, or acquisition of administration or control, of a government of a foreign country or a subdivision thereof, or the furtherance or influencing of the political or public interests, policies, or relations of a government of a foreign country or a subdivision thereof.
(c) “Foreign principal” includes a government of a foreign country or any person or entity described in subdivision (c) of Section 85320. any of the following:
(1) A government of a foreign country.
(2) A foreign political party.
(3) A person outside the United States, unless either of the following is established:
(A) The person is an individual and a citizen of the United States.
(B) The person is not an individual and is organized under or created by the laws of the United States or of any state or other place subject to the jurisdiction of the United States and has its principal place of business within the United States.
(4) A partnership, association, corporation, organization, or other combination of persons organized under the laws of or having its principal place of business in a foreign country.
(5) A domestic subsidiary of a foreign corporation if the decision to contribute or expend funds is made by an officer, director, or management employee of the foreign corporation who is neither a citizen of the United States nor a lawfully admitted permanent resident of the United States.
(d) “Government of a foreign country” includes both of the following:
(1) Any person or group of persons exercising sovereign de facto or de jure political jurisdiction over any country, other than the United States, or over any part of such country, any subdivision of any such group and any group or agency to which such sovereign de facto or de jure authority or functions are directly or indirectly delegated.
(2) Any faction or body of insurgents within a country purporting to exercise governmental authority whether such faction or body of insurgents has or has not been recognized by the United States.
(e) “Information-service employee” includes any person who is engaged in furnishing, disseminating, or publishing accounts, descriptions, information, or data with respect to the political, industrial, employment, economic, social, cultural, or other benefits, advantages, facts, or conditions of any country other than the United States or of any government of a foreign country or of a foreign political party or of a partnership, association, corporation, organization, or other combination of individuals organized under the laws of, or having its principal place of business in, a foreign country.
(f) “Public-relations counsel” includes any person who engages directly or indirectly in informing, advising, or in any way representing a principal in any public relations matter pertaining to political or public interests, policies, or relations of such principal.
(g) “Publicity agent” includes any person who engages directly or indirectly in the publication or dissemination of oral, visual, graphic, written, or pictorial information or matter of any kind, including publication by means of advertising, books, periodicals, newspapers, lectures, broadcasts, motion pictures, or otherwise.

86151.
 Any (a) Any individual acting as an agent of a foreign principal must register with the Secretary of State as an agent of a foreign principal in the same manner, with the same frequency, and with the same content as are required for a lobbyist and lobbying firm under Article 1 of this chapter.

(a)

(b) In addition to the information required under Article 1 of this chapter for lobbyist and lobbying firm registration, the registration for an agent of a foreign principal shall also include disclosure of any compensation received, contracted, or otherwise promised to the agent by each foreign principal.

(b)

(c) An agent of a foreign principal that qualifies as a lobbyist or lobbying firm under this title must also register accordingly as required by this title.

(c)

(d) On the registration form for an agent of a foreign principal, the Secretary of State shall include a statement noting the existence of the United States Foreign Agent Agents Registration Act (22 U.S.C. Section 611 et seq.), and that registration with the state does not excuse an individual or entity from also registering with the federal government if their activities require such registration under federal law.

(d)

(e) Agents of a foreign principal shall be required to complete the ethic’s ethics course described in subdivision (b) of Section 8956 in the same manner required of lobbyists under this title. Agents of a foreign principal shall pay the same fee as required of lobbyists in subdivision (d) of Section 8956.
(f) (1) The registration of a foreign principal’s agent shall be filed by email with the Secretary of State and shall be signed using a secure electronic signature. The Secretary of State shall post all registration statements received pursuant to this subdivision on its internet website within five business days or, if the Secretary of State receives the registration during the 16 days before the election, within 48 hours.
(2) This subdivision shall become inoperative on the date the Secretary of State makes the registration of a foreign principal’s agent available for filing using the Secretary of State’s online filing and disclosure system described in Section 84602.
(g) (1) Within one year of the Secretary of State certifying the online filing and disclosure system pursuant to paragraph (7) of subdivision (b) of Section 84602, the Secretary of State shall make the registration of a foreign principal’s agent available for filing using that online filing and disclosure system.
(2) (A) The registration of a foreign principal’s agent shall be filed online or electronically with the Secretary of State. The Secretary of State shall make a registration statement filed pursuant to this subdivision available to the public in the online filing and disclosure system described in Section 84602.
(B) This paragraph shall become operative on the date the Secretary of State makes the registration of a foreign principal’s agent for filing using the Secretary of State’s online filing and disclosure system described in Section 84602.
(h) This section does not apply to persons specified in subdivisions (a) through (g) of Section 613 of Title 22 of the United States Code. Persons specified in subdivision (h) of Section 613 of Title 22 of the United States Code are not exempt from the requirements of this section.

86152.
 An (a) An agent of a foreign principal shall file periodic reports with the Secretary of State in the same manner, with the same frequency, and with the same content as are required of lobbyists and lobbying firms under Article 1 of this chapter.
(b) This section does not apply to persons specified in subdivisions (a) through (g) of Section 613 of Title 22 of the United States Code. Persons specified in subdivision (h) of Section 613 of Title 22 of the United States Code are not exempt from the requirements of this section.

86153.
 The provisions of this article are severable. If any provision of this article or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.

86154.
 This article shall not be applied in a manner inconsistent with any provision of any treaty between the United States and another country.

SEC. 5.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.

SEC. 6.

 The Legislature finds and declares that this bill furthers the purposes of the Political Reform Act of 1974 within the meaning of subdivision (a) of Section 81012 of the Government Code.