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A BILL TO BE ENTITLED
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AN ACT
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relating to a prohibition on engaging in lobbying activities on |
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behalf of a foreign adversary; providing a civil penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 305, Government Code, is |
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amended by adding Section 305.030 to read as follows: |
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Sec. 305.030. LOBBYING ON BEHALF OF FOREIGN ADVERSARY AND |
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RELATED PERSONS PROHIBITED; CIVIL ENFORCEMENT. (a) In this |
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section: |
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(1) "Control" means the direct or indirect power to |
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determine, direct, dictate, or decide important matters affecting |
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an entity, including through: |
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(A) the ownership of at least 20 percent of the |
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total outstanding voting interest in an entity; |
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(B) board representation; |
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(C) the ability to appoint or discharge a board |
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member, officer, director, employee, or contractor; |
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(D) proxy voting, a special share, a contractual |
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arrangement, a legal obligation, or a formal or informal |
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arrangement to act in concert; or |
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(E) another means of exercising power. |
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(2) "Foreign adversary" means: |
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(A) the People's Republic of China; |
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(B) the Russian Federation; |
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(C) the Islamic Republic of Iran; |
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(D) the Democratic People's Republic of Korea; |
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(E) the Republic of Cuba; |
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(F) the Venezuelan regime under Nicolás Maduro; |
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(G) the Syrian Arab Republic; |
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(H) an agency or entity under the control of a |
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country described by Paragraphs (A) through (G); |
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(I) a person wholly or partly owned or operated |
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by or subject to the control of a country described by Paragraphs |
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(A) through (G); |
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(J) a subsidiary or parent of a person described |
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by Paragraph (I); |
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(K) a person organized under the laws of or that |
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has its principal place of business in a country described by |
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Paragraphs (A) through (G); and |
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(L) a subsidiary of a person described by |
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Paragraph (K). |
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(3) "Foreign adversary client" means: |
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(A) a current or former: |
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(i) official in the executive, legislative, |
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administrative, military, or judicial branch of a foreign |
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adversary; |
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(ii) official of a foreign adversary |
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political party; or |
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(iii) executive or officer of a foreign |
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adversary; |
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(B) a corporation, business, or other entity that |
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has been formed by, or for the benefit of, a person described by |
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Paragraph (A); and |
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(C) an immediate family member of a person |
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described by Paragraph (A), including the person's spouse, parent, |
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sibling, and child and a parent or sibling of the person's spouse. |
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(4) "Foreign adversary political party" means an |
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organization or a combination of individuals in the jurisdictional |
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limits of a foreign adversary, including a unit or branch of a |
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foreign adversary's government, that is engaged in an activity |
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wholly or partly devoted to or whose aim or purpose is to: |
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(A) establish, administer, control, or acquire |
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the administration or control of a foreign adversary or a |
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subdivision of a foreign adversary; or |
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(B) further or influence the political or public |
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interests, policies, or relations of a foreign adversary or a |
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subdivision of a foreign adversary. |
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(5) "Wholly or partly owned or operated" means: |
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(A) for a person that is a publicly traded |
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company, that a foreign adversary has: |
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(i) the ability to exercise control over |
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the company; |
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(ii) access to any material, nonpublic, and |
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technical information in the company's possession; or |
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(iii) other rights or involvement in |
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controlling or participating in the decision-making of the company |
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beyond those available to a retail investor holding an equivalent |
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share of ownership; and |
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(B) for a person that is a privately held |
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company, that a foreign adversary has any share of ownership of the |
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company. |
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(b) A registrant may not communicate directly with one or |
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more members of the legislative or executive branch to influence |
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legislation or administrative action on behalf of a foreign |
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adversary, a foreign adversary client, or a foreign adversary |
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political party. |
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(c) The attorney general may bring an action for injunctive |
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relief against a registrant who violates this section or is |
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threatening to violate this section. In an injunction issued under |
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this section, a court may include reasonable requirements to |
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prevent further violations of this section. |
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(d) In addition to injunctive relief under Subsection (c), |
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the attorney general may bring an action for civil penalties |
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against a registrant who violates this section. A civil penalty |
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assessed under this section must be in an amount not to exceed |
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$50,000 for each violation. |
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(e) The attorney general may recover reasonable expenses |
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incurred in bringing an action under this section, including court |
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costs, reasonable attorney's fees, investigative costs, witness |
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fees, and deposition costs. |
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SECTION 2. This Act takes effect September 1, 2025. |