HB119 - Relating to the registration as a lobbyist of persons who engage in certain lobbying activities on behalf of a foreign adversary and to prohibitions on the receipt of compensation related to those lobbying activities; providing a civil penalty.

      H.B. No. 119         AN ACT   relating to the registration as a lobbyist of persons who engage in   certain lobbying activities on behalf of a foreign adversary and to   prohibitions on the receipt of compensation related to those   lobbying activities; providing a civil penalty.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 305.003(a), Government Code, is amended   to read as follows:          (a)  A person must register with the commission under this   chapter if the person:                (1)  makes a total expenditure of an amount determined   by commission rule but not less than $200 in a calendar quarter, not   including the person's own travel, food, or lodging expenses or the   person's own membership dues, on activities described in Section   305.006(b) to communicate directly with one or more members of the   legislative or executive branch to influence legislation or   administrative action; [ or ]                (2)  receives, or is entitled to receive under an   agreement under which the person is retained or employed,   compensation or reimbursement, not including reimbursement for the   person's own travel, food, or lodging expenses or the person's own   membership dues, of more than an amount determined by commission   rule but not less than $200 in a calendar quarter from another   person to communicate directly with a member of the legislative or   executive branch to influence legislation or administrative   action ; or                 (3)     communicates directly with one or more members of   the legislative or executive branch to influence legislation or   administrative action on behalf of a foreign adversary, a foreign   adversary client, or a foreign adversary political party, as those   terms are defined by Section 305.030 .          SECTION 2.  Subchapter B, Chapter 305, Government Code, is   amended by adding Section 305.030 to read as follows:           Sec.   305.030.     COMPENSATION FROM FOREIGN ADVERSARY AND   RELATED PERSONS PROHIBITED; CIVIL ENFORCEMENT. (a) In this   section:                 (1)     "Control" means the direct or indirect power to   determine, direct, dictate, or decide important matters affecting   an entity, including through:                       (A)     the ownership of at least 20 percent of the   total outstanding voting interest in an entity;                       (B)  board representation;                       (C)     the ability to appoint or discharge a board   member, officer, director, employee, or contractor;                       (D)     proxy voting, a special share, a contractual   arrangement, a legal obligation, or a formal or informal   arrangement to act in concert; or                       (E)  another means of exercising power.                 (2)  "Foreign adversary" means:                       (A)     a foreign government or foreign   nongovernment person designated as a foreign adversary by the   United States secretary of commerce under 15 C.F.R. Section 791.4;                       (B)     an agency or entity under the control of a   country described by Paragraph (A);                       (C)     a person wholly or partly owned or operated   by or subject to the control of a country described by Paragraph   (A);                       (D)     a subsidiary or parent of a person described   by Paragraph (C);                       (E)     a person organized under the laws of or that   has its principal place of business in a country described by   Paragraph (A); and                       (F)     a subsidiary of a person described by   Paragraph (E).                 (3)  "Foreign adversary client" means:                       (A)  a current or former:                             (i)     official in the executive, legislative,   administrative, military, or judicial branch of a foreign   adversary;                             (ii)     official of a foreign adversary   political party; or                             (iii)     executive or officer of a foreign   adversary;                       (B)     a corporation, business, or other entity that   has been formed by, or for the benefit of, a person described by   Paragraph (A); and                       (C)     an immediate family member of a person   described by Paragraph (A), including the person's spouse, parent,   sibling, and child and a parent or sibling of the person's spouse.                 (4)     "Foreign adversary political party" means an   organization or a combination of individuals in the jurisdictional   limits of a foreign adversary, including a unit or branch of a   foreign adversary's government, that is engaged in an activity   wholly or partly devoted to or whose aim or purpose is to:                       (A)     establish, administer, control, or acquire   the administration or control of a foreign adversary or a   subdivision of a foreign adversary; or                       (B)     further or influence the political or public   interests, policies, or relations of a foreign adversary or a   subdivision of a foreign adversary.                 (5)  "Wholly or partly owned or operated" means:                       (A)     for a person that is a publicly traded   company, that a foreign adversary has:                             (i)     the ability to exercise control over   the company;                             (ii)     access to any material, nonpublic, and   technical information in the company's possession; or                             (iii)     other rights or involvement in   controlling or participating in the decision-making of the company   beyond those available to a retail investor holding an equivalent   share of ownership; and                       (B)     for a person that is a privately held   company, that a foreign adversary has any share of ownership of the   company.           (b)     A registrant who is required to register under Section   305.003(a)(3) may not receive or agree to receive direct or   indirect compensation, including intangible or in-kind   compensation, from a foreign adversary, a foreign adversary client,   or a foreign adversary political party on whose behalf the   registrant communicates directly with one or more members of the   legislative or executive branch to influence legislation or   administrative action.           (c)     The attorney general may bring an action for injunctive   relief against a registrant who violates this section or is   threatening to violate this section. In an injunction issued under   this section, a court may include reasonable requirements to   prevent further violations of this section.           (d)     In addition to injunctive relief under Subsection (c),   the attorney general may bring an action for civil penalties   against a registrant who violates this section. A civil penalty   assessed under this section must be in an amount not to exceed:                 (1)  $10,000 for each violation; and                 (2)     the amount of any compensation the registrant   received in violation of this section.           (e)     The attorney general may recover reasonable expenses   incurred in bringing an action under this section, including court   costs, reasonable attorney's fees, investigative costs, witness   fees, and deposition costs.          SECTION 3.  The changes in law made by this Act apply only to   conduct requiring a person to register as a lobbyist or to   compensation received by a person required to register as a   lobbyist under Chapter 305, Government Code, that occurs or is   received on or after the effective date of this Act. Conduct that   occurs or compensation received before the effective date of this   Act is governed by the law in effect on the date the conduct   occurred or compensation was received, and the former law is   continued in effect for that purpose.          SECTION 4.  This Act takes effect September 1, 2025.       ______________________________ ______________________________      President of the Senate Speaker of the House                   I certify that H.B. No. 119 was passed by the House on April   30, 2025, by the following vote:  Yeas 132, Nays 8, 2 present, not   voting; that the House refused to concur in Senate amendments to   H.B. No. 119 on May 30, 2025, and requested the appointment of a   conference committee to consider the differences between the two   houses; and that the House adopted the conference committee report   on H.B. No. 119 on June 1, 2025, by the following vote:  Yeas 101,   Nays 36, 1 present, not voting.     ______________________________   Chief Clerk of the House               I certify that H.B. No. 119 was passed by the Senate, with   amendments, on May 28, 2025, by the following vote:  Yeas 30, Nays   1; at the request of the House, the Senate appointed a conference   committee to consider the differences between the two houses; and   that the Senate adopted the conference committee report on H.B. No.   119 on June 1, 2025, by the following vote:  Yeas 30, Nays 1.     ______________________________   Secretary of the Senate      APPROVED: __________________                   Date                       __________________                 Governor