HB2912 - Relating to a prohibition on engaging in lobbying activities on behalf of a foreign adversary; providing a civil penalty.

  89R10582 CJD-F     By: Cain H.B. No. 2912       A BILL TO BE ENTITLED   AN ACT   relating to a prohibition on engaging in lobbying activities on   behalf of a foreign adversary; providing a civil penalty.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter B, Chapter 305, Government Code, is   amended by adding Section 305.030 to read as follows:           Sec.   305.030.     LOBBYING ON BEHALF OF 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)  the People's Republic of China;                       (B)  the Russian Federation;                       (C)  the Islamic Republic of Iran;                       (D)  the Democratic People's Republic of Korea;                       (E)  the Republic of Cuba;                       (F)  the Venezuelan regime under Nicolás Maduro;                       (G)  the Syrian Arab Republic;                       (H)     an agency or entity under the control of a   country described by Paragraphs (A) through (G);                       (I)     a person wholly or partly owned or operated   by or subject to the control of a country described by Paragraphs   (A) through (G);                       (J)     a subsidiary or parent of a person described   by Paragraph (I);                       (K)     a person organized under the laws of or that   has its principal place of business in a country described by   Paragraphs (A) through (G); and                       (L)     a subsidiary of a person described by   Paragraph (K).                 (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 may not communicate 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.           (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   $50,000 for each violation.           (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 2.  This Act takes effect September 1, 2025.