SB177: SB177 Government Transparency and Campaign Finance; transparency in foreign funded political activities within the state; provide

LC 47 4227S The House Committee on Rules offers the following substitute to SB 177: A BILL TO BE ENTITLED AN ACT To amend Chapter 5 of Title 21 of the Official Code of Georgia Annotated, relating to1 government transparency and campaign finance, so as to provide for transparency in foreign2 funded political activities within the state; to require agents of hostile foreign principals and3 foreign supported political organizations to register with the State Ethics Commission; to4 provide for registration requirements; to provide for definitio ns; to provide legislative5 findings; to provide for civil penalties; to authorize the Atto rney General to bring civil6 actions or criminal investigations for violations; to provide for applicability; to provide for7 related matters; to repeal conflicting laws; and for other purposes.8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9 SECTION 1.10 Chapter 5 of Title 21 of the Official Code of Georgia Annotated , relating to government11 transparency and campaign finance, is amended by adding a new article to read as follows:12 - 1 - LC 47 4227S "ARTICLE 513 21-5-90.14 The General Assembly finds:15 (1) That the voters, citizens, and policymakers of Georgia are entitled to transparency in16 the political and propaganda activities of organizations that may be controlled by or under17 the influence of foreign countries hostile to the interests of the United States and the State18 of Georgia;19 (2) That, in an increasingly globalized world, determining whe ther an organization's20 political and propaganda activities are funded by hostile forei gn interests is often21 difficult; and22 (3) That legislation is needed to ensure the transparency nece ssary to allow voters,23 citizens, and policymakers to evaluate whether political and pr opaganda activities are24 funded by potentially hostile foreign actors.25 21-5-91.26 As used in this article, the term:27 (1) 'Agent of a hostile foreign principal' means any person wh o acts as an agent,28 employee, representative, or servant, or otherwise acts at the order, request, or under the29 direction or control of a hostile foreign principal:30 (A) Whose actions are financed in whole or in part by a hostile foreign principal; and31 (B) Who engages in political activity.32 (2) 'Control' means the power, direct or indirect, whether or not exercised, to determine,33 direct, dictate, or decide important matters affecting an entit y, including but without34 limitation, through:35 (A) The ownership of at least 20 percent of the total outstanding voting interest in an36 entity;37 - 2 - LC 47 4227S (B) Board representation;38 (C) The ability to appoint or discharge any board members, off icers, directors,39 employees, or contractors;40 (D) Proxy voting, a special share, contractual arrangements, l egal obligations, or41 formal or informal arrangements to act in concert; or42 (E) Other means, including but not limited to golden shares, classes or shares of stock43 or equity that grant the holder superior authority to direct th e company's affairs or44 increased voting rights over other shareholders, operating agre ements, bylaws, and45 customary or written law, whether disclosed or undisclosed.46 (3) 'Foreign supported political organization' means a politic al organization or47 partnership, committee, association, corporation, limited liabi lity company, limited48 liability partnership, trust, professional corporation, or any other combination of persons49 that has, within the past five calendar years, received a contribution or donation of money50 or other thing of value from a hostile foreign principal or an agent of a hostile foreign51 principal and which engages in political activity; provided, however, notwithstanding any52 other provision of this article to the contrary, the following shall not be deemed to be a53 foreign supported political organization:54 (A) An industry, trade, or other professional association that exists to promote the55 interests of its members, or any affiliated organization; or56 (B) A membership organization formed on or before January 1, 1950, that advocates57 on behalf of the common goals or interests of its members on matters of public policy,58 or any affiliated organization.59 (4) 'Hostile foreign country' means a country whose government is designated as a60 foreign adversary by the United States Secretary of Commerce pu rsuant to 15 C.F.R.61 Section 7.4.62 (5) 'Hostile foreign principal' means:63 - 3 - LC 47 4227S (A) A government of a hostile foreign country, a political par ty of a hostile foreign64 country, or any member of a political party, body, or organization of a hostile foreign65 country;66 (B) A nonresident alien of a hostile foreign country;67 (C) A partnership, committee, association, corporation, limite d liability company,68 limited liability partnership, trust, professional corporation, or any other combination69 of persons organized under the law of or having its principal p lace of business in a70 hostile foreign country; or71 (D) A partnership, committee, association, corporation, limite d liability company,72 limited liability partnership, trust, professional corporation, or any other combination73 of persons that is subject to the control of a hostile foreign government, a nonresident74 alien of a hostile foreign country, or an entity organized under the laws of or having its75 principal place of business in a hostile foreign country.76 (6) 'Political activity' means any activity that is performed to influence any agency or77 public official of the State of Georgia, any local government entity within the state, or to78 influence the public within the state, with reference to formulating, adopting, or changing79 the policies or laws of the state or electing or opposing a can didate for local or state80 public office.81 21-5-92.82 (a) No person shall act as an agent of a hostile foreign principal unless he or she has filed83 with the commission a true and complete registration statement and supplements thereto84 as required by this Code section or unless he or she is exempt from registration under the85 provisions of this Code section. Except as hereinafter provided, every person who becomes86 an agent of a hostile foreign principal shall, within ten days thereafter, file with the87 commission a registration statement, under oath, on a form prescribed by the commission. 88 The obligation of an agent of a hostile foreign principal to fi le a registration statement89 - 4 - LC 47 4227S shall, after the tenth day of his or her becoming such agent, continue from day to day, and90 termination of such status shall not relieve such agent from his or her obligation to file a91 registration statement for the period during which he or she wa s an agent of a hostile92 foreign principal. The registration statement shall include th e following, which shall be93 regarded as material for the purposes of this Code section:94 (1) Registrant's name, principal business address, and all other business addresses in the95 United States or elsewhere, and all residence addresses, if any;96 (2) Status of the registrant:97 (A) If an individual, his or her nationality;98 (B) If a partnership, the name, residence addresses, and nationality of each partner, as99 well as a true and complete copy of its articles of copartnership; and100 (C) If an association, corporation, organization, or any other combination of101 individuals or entities, the name, residence addresses, and nationality of each director102 and officer and of each person performing the functions of a director or officer and a103 true and complete copy of its charter, articles of incorporation, association, constitution,104 and bylaws and amendments thereto; a copy of every other instrument or document and105 a statement of the terms and c onditions of every o ral agreement relating to its106 organization, powers, and purposes, and a statement of its ownership and control;107 (3) A comprehensive statement of the nature of the registrant' s business, including a108 complete list of the registrant's employees;109 (4) A statement of the nature of the work of each hostile foreign principal for whom the110 registrant is acting, assuming or purporting to act, or has agreed to act, and the character111 of the business or other activities of every such hostile forei gn principal. If any such112 hostile foreign principal is an entity other than a natural person, such statement shall also113 detail the ownership and control to which each such hostile for eign principal is114 supervised, directed, owned, controlled, financed, or subsidized, in whole or in part, by115 - 5 - LC 47 4227S any government of a foreign country or foreign political party, or by any other hostile116 foreign principal;117 (5) The nature and amount of contributions, income, money, or thing of value, if any,118 that the registrant has received within the preceding 60 days f rom each such hostile119 foreign principal, either as compensation or for disbursement or otherwise, and the form120 and time of each such payment and from whom received;121 (6) A detailed statement of every activity which the registran t is performing or is122 assuming or purporting or has agreed to perform for himself or herself or any other123 person other than a hostile foreign principal and which require s his registration124 hereunder;125 (7) The name, business, and residence addresses, and if an individual, the nationality, of126 any person other than a hostile foreign principal for whom the registrant is acting,127 assuming or purporting to act, or has agreed to act under such circumstances as require128 his or her registration hereunder;129 (8) The nature and amount of contributions, income, money, or thing of value, if any,130 that the registrant has received during the preceding 60 days f rom each such person in131 connection with any of the activities referred to in paragraph (6) of this subsection;132 (9) A detailed statement of the money or other things of value spent or disposed of by133 the registrant during the preceding 60 days in furtherance of o r in connection with134 activities which require the registrant's registration hereunde r and which have been135 undertaken by the registrant either as an agent of a hostile foreign principal or for himself136 or herself or any other person or in connection with any activities relating to the registrant137 becoming an agent of such principal;138 (10) A detailed statement of any contributions of money or other things of value made139 by the registrant during the preceding 60 days to bring about the nomination or election140 of a candidate for any office, to bring about the recall of a public officer holding elective141 office, to oppose the recall of a public officer holding elective office, to bring about the142 - 6 - LC 47 4227S approval or rejection by the voters of any proposed constitutio nal amendment, a143 state-wide referendum, or a proposed question which is to appea r on the ballot in this144 state or in a county or a municipal election in this state; and145 (11) Such other statements, information, or documents pertinent to the purposes of this146 Code section as the commission may from time to time require.147 (b) Every agent of a hostile foreign principal who has filed a registration statement148 required by subsection (a) of this Code section shall file with the commission by149 January 31, April 30, July 31, and October 20 of each calendar year a supplement thereto,150 under oath, on a form prescribed by the commission, which shall set forth with respect to151 such preceding reporting period such facts as the commission may deem necessary to make152 the information required under subsection (a) of this Code section accurate, complete, and153 current with respect to such period.154 (c) An agent of a hostile foreign principal shall update the i nformation required by155 subsection (b) of this Code section with the commission by January 31, April 30, July 31,156 and October 20 of each calendar year.157 (d) The registration statement shall be executed under oath as follows:158 (1) If the registrant is an individual, by him or her;159 (2) If the registrant is a partnership, by the majority of the members thereof; and160 (3) If the registrant is a person other than an individual or a partnership, by a majority161 of the officers thereof or persons performing the functions of officers or by a majority of162 the board of directors thereof or persons performing the functions of directors, if any.163 (e) A registration statement or supplement required to be file d under this Code section164 shall be filed in electronic form, in addition to any other form that may be required by the165 commission.166 - 7 - LC 47 4227S 21-5-93.167 (a) No later than December 31 of each year, each foreign supported political organization168 operating within the state shall register with the commission a nd provide the following169 information:170 (1) The name of the organization, its business address, and th e names, titles, and171 addresses of all officers and directors of the organization;172 (2) If the organization is affiliated with or a chapter of a national organization, the name173 of the national organization, its address, and the names and addresses of its officers and174 directors;175 (3) A detailed statement of the money and other things of value spent or disposed of by176 the foreign supported political organization during the precedi ng calendar year in177 furtherance of or in connection with activities to influence any agency or public official,178 local government entity, or the public of or within the State of Georgia, including, but not179 limited to, activities related to formulating, adopting, or changing the policies or laws of180 this state or electing a candidate to local or state public office;181 (4) A detailed statement of any expenditures of money or other things of value made by182 the organization within the prior calendar year; and183 (5) A detailed statement of all money or other things of value received by the184 organization from a hostile foreign principal or an agent of a hostile foreign principal185 during the preceding calendar year.186 (b) A registered foreign supported political organization shal l update the information187 required by subsection (a) of this Code section with the commis sion by January 31,188 April 30, July 31, and October 20 of each calendar year.189 21-5-94.190 (a) Upon receipt of a complaint that an agent of a hostile for eign principal or a foreign191 supported political organization has failed to comply with the registration and reporting192 - 8 - LC 47 4227S requirements of this article, or upon its own determination, th e commission shall have193 authority to investigate and to assess penalties for the violation of this article.194 (b) The commission may assess civil penalties of up to $10,000.00 for each violation of195 this article; provided, however, that, if the commission finds that any such violation was196 willful or a repeat violation of this article, such civil penal ties shall be not less197 than $10,000.00 nor more than $200,000.00 per such violation.198 (c) Upon complaint by the commission, or upon the Attorney Gen eral's own initiative,199 after examination of the complaint and evidence, if the Attorne y General believes a200 violation of any provision of this article has occurred, the Attorney General shall:201 (1) Bring an action in the superior court in the name of the commission for a temporary202 restraining order or other injunctive relief or for civil penalties; or203 (2) Initiate a criminal investigation.204 21-5-95.205 This article shall not apply to any entities that are the subject of, or covered by, a qualified206 divestiture under the federal Protecting Americans from Foreign Adversary Controlled207 Applications Act, Public Law 118-50, 138 Stat. 955, including but not limited to any entity208 referenced in Executive Order 14352 that was proclaimed by the President of the United209 States on September 25, 2025."210 SECTION 2.211 All laws and parts of laws in conflict with this Act are repealed.212 - 9 -