SENATE DOCKET, NO. 928        FILED ON: 1/16/2019

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 393

The Commonwealth of Massachusetts

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PRESENTED BY:

Joanne M. Comerford

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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act limiting political spending by foreign-influenced corporations.

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PETITION OF:

SENATE DOCKET, NO. 928        FILED ON: 1/16/2019

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 393

The Commonwealth of Massachusetts

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In the One Hundred and Ninety-First General Court
(2019-2020)

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An Act limiting political spending by foreign-influenced corporations.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

SECTION 1. Section 1 of chapter 55 of the General Laws is hereby amended by inserting the following definitions:--

“Chief executive officer”, the highest-ranking officer or decision-making individual with authority over the corporation’s affairs.

“Corporation”, a corporation, company, limited liability company, limited partnership, business trust, business association, or other similar entity.

“Foreign-influenced corporation”, a corporation for which at least one of the following conditions is met: (1) a single foreign owner holds, owns, controls, or otherwise has direct or indirect beneficial ownership of one percent or more of the total equity, outstanding voting shares, membership units, or other applicable ownership interests of the corporation; (2) two or more foreign owners, in aggregate, hold, own, control, or otherwise have direct or indirect beneficial ownership of five percent or more of the total equity, outstanding voting shares, membership units, or other applicable ownership interests of the corporation; or (3) a foreign owner participates directly or indirectly in the corporation’s decision-making process with respect to the corporation’s political activities in the United States.

“Foreign investor”, a person or entity that (1) holds, owns, controls, or otherwise has direct or indirect beneficial ownership of equity, outstanding voting shares, membership units, or other applicable ownership interests of a corporation, and (2) is a government of a foreign country, or a foreign political party, or 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, or an individual who is not a citizen of the United States or a national of the United States and who is not lawfully admitted for permanent residence.

“Foreign owner”, (1) a foreign investor or (2) a corporation wherein a foreign investor holds, owns, controls, or otherwise has directly or indirectly acquired a beneficial ownership of equity or voting shares in an amount that is equal to or greater than 50 percent of the total equity or outstanding voting shares.

SECTION 2. Section 8 of said chapter 55 is hereby amended by inserting after the second paragraph the following paragraphs:--

No foreign-influenced corporation shall make an independent expenditure, or an electioneering communication expenditure, or a contribution to an independent expenditure PAC as defined in section 18A.

Any corporation that makes an independent expenditure, or an electioneering communication expenditure, or a contribution to an independent expenditure PAC as defined in section 18A, shall, within 7 business days after making such expenditure or contribution, file with the director, a statement of certification, signed by the chief executive officer under penalty of perjury, avowing that, after due inquiry, the corporation was not a foreign-influenced corporation on the date such expenditure or contribution was made.

SECTION 3. Section 18G of said chapter 55, as most recently amended by chapter 207 of the acts of 2016, is hereby further amended by inserting after the second sentence of the second paragraph the following sentences:-  Unless the individual, corporation, group, association, labor union or other entity making the independent expenditure or electioneering communication has received a statement of certification from each person or entity required to be listed in the top contributors, avowing under penalty of perjury that none of the funds used to make each such person or entity’s contribution were derived from foreign-influenced corporations, the advertisement or communication shall also include the statement: “Some of the funds used to pay for this message may have been provided by foreign-influenced corporations.” The individual, corporation, group, association, labor union or other entity making the independent expenditure or electioneering communication shall be entitled to rely on such a statement of certification provided by the contributor, unless the individual, corporation, group, association, labor union or other entity has actual knowledge that such certification is false.