Bill Text: AZ HB2469 | 2018 | Fifty-third Legislature 2nd Regular | Introduced
Bill Title: Foreign agents; registration and regulation
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-03-13 - House minority caucus: Do pass [HB2469 Detail]
Download: Arizona-2018-HB2469-Introduced.html
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REFERENCE TITLE: foreign agents; registration and regulation |
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State of Arizona House of Representatives Fifty-third Legislature Second Regular Session 2018
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HB 2469 |
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Introduced by Representative Finchem
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AN ACT
amending Title 41, chapter 7, Arizona Revised Statutes, by adding article 8.2; relating to foreign agents.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 41, chapter 7, Arizona Revised Statutes, is amended by adding article 8.2, to read:
ARTICLE 8.2. REGISTRATION AND REGULATION OF FOREIGN AGENTS
41-1241. Definitions
In this ARTICLE, unless the context otherwise requires:
1. "Agent of a foreign principal":
(a) means a person who acts as an agent, representative, employee, servant or in any other capacity at the order or request or under the direction or control of a foreign principal or of a person whose activities are directly or indirectly supervised, directed, controlled, financed, or subsidized in whole or in major part by a foreign principal, and who directly or through any other person:
(i) engages in this State in political activities for or in the interests of a foreign principal.
(ii) acts in this State as a public relations counsel, publicity agent, information-service employee or political consultant for or in the interests of a foreign principal.
(iii) solicits, collects, disburses, or dispenses contributions, loans, money or other things of value in this state for or in the interest of a foreign principal.
(iv) represents the interests of a foreign principal in this state before any agency or official of the Government of this State.
(b) Includes any person who agrees, consents, assumes or purports to act as, or who holds himself out to be, an agent of a foreign principal, regardless of whether a contractual relationship exists between the person and the foreign principal.
(c) does not include any news or press service or association organized under the laws of the United States or of any State, or any newspaper, magazine, periodical, or other publication for which there is on file with the United States Postal Service information in compliance with 39 United States Code section 3685, published in the United States, solely by virtue of any bona fide news or journalistic activities, including the solicitation or acceptance of advertisements, subscriptions, or other compensation, if it is at least eighty percent beneficially owned by, and its officers and directors, if any, are citizens of the United States, and the news or press service or association, newspaper, magazine, periodical, or other publication is not owned, directed, supervised, controlled, subsidized or financed, and none of its policies are determined by, a foreign principal, or by an agent of a foreign principal required to register under this article.
2. "foreign political party" includes any organization or any other combination of individuals in a country other than the United States, or any unit or branch thereof, having for an aim or purpose, or which is engaged in any activity devoted in whole or in part to, the establishment, administration, control, or acquisition of administration or control, of a government of a foreign country or a subdivision thereof, or the furtherance or influencing of the political or public interests, policies, or relations of a government of a foreign country or a subdivision thereof.
3. "foreign principal" includes:
(a) a government of a foreign country.
(b) a foreign political party.
(c) a person outside of the United States, unless it is established that such a person is an individual and a citizen of and domiciled within the United States, or that the person is not an individual and is organized under or created by the laws of the United States or of any State and has its principal place of business within the United States.
(d) 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.
4. "government of a foreign country" includes any person or group of persons exercising sovereign de facto or de jure political jurisdiction over any country, other than the United States, or over any part of such a country, and includes any subdivision of any such group and any group or agency to which such sovereign de facto or de jure authority or functions are directly or indirectly delegated, and any faction or body of insurgents within a country assuming to exercise governmental authority, whether or not the faction or body of insurgents has been recognized by the United States.
5. "information-service employee" includes any person who is engaged in furnishing, disseminating or publishing accounts, descriptions, information or data with respect to the political, industrial, employment, economic, social, cultural or other benefits, advantages, facts or conditions of any country other than the United States or of any government of a foreign country or of a foreign political party or of a partnership, association, corporation, organization, or other combination of individuals organized under the laws of, or having its principal place of business in, a foreign country.
6. "political activities" means any activity that the person engaging in believes will, or that the person intends to, in any way influence any agency or official of this or any section of the public within this State with reference to formulating, adopting or changing the domestic or foreign policies of this State with reference to the political or public interests, policies, or relations of a government of a foreign country or a foreign political party.
7. "political consultant" means any person who engages in informing or advising any other person with reference to the domestic or foreign policies of this State or the political or public interest, policies, or relations of a foreign country or of a foreign political party.
8. "prints" means newspapers, periodicals, books, pamphlets, sheet music, visiting cards, address cards, printing proofs, engravings, photographs, pictures, drawings, plans, maps, patterns to be cut out, catalogs, prospectuses, advertisements, and printed, engraved, lithographed or autographed notices of various kinds, and includes all impressions or reproductions obtained on paper or other material assimilable to paper, on parchment or on cardboard, by means of printing, engraving, lithography, autography or any other easily recognizable mechanical process other than the copying press, stamps with movable or immovable type or the typewriter.
9. "publicity agent" includes any person who engages directly or indirectly in the publication or dissemination of oral, visual, graphic, written or pictorial information or matter of any kind, including publication by means of advertising, books, periodicals, newspapers, lectures, broadcasts or motion pictures.
10. "public-relations counsel" includes any person who engages directly or indirectly in informing, advising or in any way representing a foreign principal in any public relations matter pertaining to political or public interests, policies or relations of the foreign principal.
11. "registration statement" means the registration statement or supplements required to be filed pursuant to this article, and includes all documents and papers required to be filed with the registration statement, whether attached to the registration statement or incorporated by reference.
41-1242. Registration statement
A. A person shall not act as an agent of a foreign principal unless the person has filed with the secretary of state a true and complete registration statement and supplements to the registration statement pursuant to this section unless the person is exempt from registration pursuant to this article. Except as otherwise provided, every person who becomes an agent of a foreign principal shall, within ten days, file with the SECRETARY of state a registration statement, under oath, on a form prescribed by the secretary of state. after the tenth day of becoming an agent of a foreign principal, The obligation of the agent to file a registration statement shall continue from day to day, and termination of the agent's status shall not relieve the agent from the obligation to file a registration statement for the period during which the PERSON was an agent of the foreign principal. The registration statement shall include the following material information:
1. the Registrant’s name, principal business address and all other business addresses and all residence addresses, if any.
2. the status of the registrant. if the registrant is an individual, the individual's nationality must be reported. if the registrant is a partnership, the name, residence addresses, and nationality of each partner and a true and complete copy of its articles of partnership must be reported. if the registrant is an association, corporation, organization or any other combination of individuals, the name, residence addresses and nationality of each director and officer and of each person performing the functions of a director or officer and a true and complete copy of the charter, articles of incorporation, association, constitution and bylaws, and amendments thereto, and a copy of every other instrument or document and a statement of the terms and conditions of every oral agreement relating to its organization, powers, and purposes and a statement of its ownership and control must be reported.
3. A comprehensive statement of the nature of registrant’s business, a complete list of registrant’s employees and a statement of the nature of the work of each employee, the name and address of every foreign principal for whom the registrant is acting, assuming or purporting to act or has agreed to act, the character of the business or other activities of every such foreign principal and, if any such foreign principal is other than a natural person, a statement of the ownership and control of the foreign principal and the extent, if any, to which the foreign principal is supervised, directed, owned, controlled, financed or subsidized, in whole or in part, by any government of a foreign country or foreign political party, or by any other foreign principal.
4. Copies of each written agreement and the terms and conditions of each oral agreement, including all modifications of such agreements, or, if no contract exists, a full statement of all the circumstances by which the registrant is an agent of a foreign principal, a comprehensive statement of the nature and method of performance of each such contract and the existing and proposed activity or activities engaged in, or to be engaged in, by the registrant as agent of a foreign principal, including a detailed statement of any activity which is a political activity.
5. The nature and amount of contributions, income, money or thing of value, if any, that the registrant has received within the preceding sixty days from each foreign principal, either as compensation or for disbursement, or otherwise, and the form and time of each such payment and from whom the payment was received.
6. A detailed statement of every activity which the registrant is performing, or is assuming or purporting or has agreed to perform, for the registrant or any other person other than a foreign principal and which requires the registrant's registration, including a detailed statement of any activity which is a political activity.
7. The name, business and residence addresses, and if the registrant is an individual, the nationality, of any person other than a foreign principal for whom the registrant is acting, assuming or purporting to act or has agreed to act under circumstances that require registration, the extent to which each such person is supervised, directed, owned, controlled, financed or subsidized, in whole or in part, by any government of a foreign country or foreign political party or by any other foreign principal and the nature and amount of contributions, income, money or thing of value, if any, that the registrant has received during the preceding sixty days from each such person in connection with any of the activities referred to in paragraph 6 of this subsection, either as compensation or for disbursement or otherwise, and the form and time of each such payment and from whom the payment was received.
8. A detailed statement of the money and other things of value spent or disposed of by the registrant during the preceding sixty days in furtherance of or in connection with activities which require registration and which have been undertaken by the registrant either as an agent of a foreign principal or for the registrant or any other person or in CONNECTION with any activities relating to becoming an agent of such a principal, and a detailed statement of any contributions of money or other things of value made by the registrant during the preceding sixty days in connection with an election to any political office or in connection with any primary election, convention or caucus held to select candidates for any political office.
9. Copies of each written agreement and the terms and conditions of each oral agreement, including all modifications of such agreements, or, where no contract exists, a full statement of all the circumstances, by which the registrant is performing or assuming or purporting or has agreed to perform for the registrant or for a foreign principal or for any person other than a foreign principal any activities which require registration.
10. other statements, information or documents pertinent to the purposes of this article as the SECRETARY of state, having due regard for the security of this state and the public interest, may require.
11. further statements and further copies of documents necessary to make the statements made in the registration statement and supplements, and the copies of documents furnished with the registration statement and supplements, not misleading.
B. An agent of a foreign principal who has filed a registration statement required by this section, within thirty days after the expiration of each period of six months succeeding such a filing, shall file with the secretary of state a supplement under oath, on a form prescribed by the secretary of state, which sets forth with respect to such preceding six months’ period such facts as the secretary of state, HAVING DUE REGARD FOR THE SECURITY OF THIS STATE AND THE PUBLIC INTEREST, MAY REQUIRE to make the information required under this section accurate, complete and current with respect to such a period. For information reported under subsection A, paragraphs 3, 4, 6, and 9 of this section, the registrant shall give notice to the secretary of state of any changes within ten days after the changes occur. If the secretary of state, HAVING DUE REGARD FOR THE SECURITY OF THIS STATE AND THE PUBLIC INTEREST, determines that it is necessary, the secretary of state may require that supplements to the registration statement be filed at more frequent intervals.
C. The registration statement and supplements SHALL be executed under oath as follows:
1. If the registrant is an individual, by the REGISTRANT.
2. if the registrant is a partnership, by a majority of the members of the partnership.
3. if the registrant is a person other than an individual or a partnership, by a majority of the officers or persons performing the functions of officers or by a majority of the board of directors or persons performing the functions of directors, if any.
D. The fact that a registration statement or supplement has been filed shall not:
1. be deemed a full compliance with this article by the registrant.
2. indicate that the secretary of state has in any way passed on the merits of the registration statement or supplement.
3. preclude prosecution for:
(a) the wilful failure to file a registration statement or supplement when due.
(b) a wilful false statement of a material fact or a wilful omission of a material fact required to be stated.
(c) the wilful omission of a material fact or copy of a material document necessary to make the statements made in a registration statement and supplements, and the copies of documents furnished with the registration statement and supplements, not misleading.
E. to eliminate inappropriate duplication, the secretary of state may permit the incorporation by reference of any information or documents previously filed by the agent pursuant to 18 United states Code section 2386 in the registration statement or supplements filed pursuant to this article.
F. If the secretary of state, HAVING DUE REGARD FOR THE SECURITY OF THIS STATE AND THE PUBLIC INTEREST, determines that registration or the furnishing of information is not necessary to carry out the purposes of this article, The secretary of state may enact rules to provide for an exemption from:
1. registration, or from the requirement of furnishing any of the information required by this section, for any person who is listed as a partner, officer, director or employee in the registration statement filed by an agent of a foreign principal under this article.
2. the requirement of furnishing any of the information required by this section of any agent of a foreign principal.
G. A registration statement or supplement required to be filed pursuant to this article shall be filed in electronic form in addition to any other form that is required by the secretary of state.
41-1243. Exemptions
A. The requirements of this article shall not apply to:
1. A duly accredited diplomatic or consular officer of a foreign government who is recognized by the united states Department of State, if the officer is engaged exclusively in activities that are recognized by the united states Department of State as being within the scope of the functions of the officer.
2. Any official of a foreign government, if the foreign government is recognized by the United States, if the official is not a public‑relations counsel, publicity agent, information-service employee or a citizen of the United States and the official's name, status and character of duties as an official are of public record in the united states Department of State or if the official is engaged exclusively in activities that are recognized by the united states Department of State as being within the scope of the functions of the official.
3. Any member of the staff of, or any person employed by, a duly accredited diplomatic or consular officer of a foreign government that is recognized by the UNITED STATES Department of State, other than a public‑relations counsel, publicity agent or information-service employee, if the staff member's or employee's name, status and character of duties as a staff member or employee are of public record in the united states Department of State and the official is engaged exclusively in activities that are recognized by the united states Department of State as being within the scope of the functions of the staff member or employee.
4. A person engaging or agreeing to engage only in any of the following:
(a) private and nonpolitical activities in furtherance of the bona fide trade or commerce of a foreign principal.
(b) in other activities not serving predominantly a foreign interest.
(c) the soliciting or collecting of funds and contributions within the United States to be used only for medical aid and assistance, or for food and clothing to relieve human suffering, if the solicitation or collection of funds and contributions is in accordance with applicable federal and state laws.
5. A person engaging or agreeing to engage only in activities in furtherance of bona fide religious, scholastic, academic or scientific pursuits or of the fine arts.
6. A person, or an employee of such a person, whose foreign principal is a government of a foreign country the defense of which the President of the united states deems vital to the defense of the United States:
(a) while the person or employee engages only in activities that are in furtherance of the policies, public interest or national defense of the foreign government and of the Government of the United States, and are not intended to conflict with any of the domestic or foreign policies of the Government of the United States.
(b) if each communication or expression by such a person or employee which the person or employee intends to, or has reason to believe will, be published, disseminated or circulated among any section of the public, or portion of the public, within the United States, is a part of such activities and is believed by such a person to be truthful and accurate and the identity of the person as an agent of the foreign principal is disclosed in the expression or communication.
(c) if the government of the foreign country furnishes to the Secretary of State such information as to the identity and activities of the person or employee at such times as the secretary of state may require.
(d) except that, on notice to the Government of which the person is an agent or to the person or employee, the Secretary of State, HAVING DUE REGARD FOR THE SECURITY OF THIS STATE AND THE PUBLIC INTEREST, may terminate in whole or in part the exemption provided by this PARAGRAPH. for the person or employee.
7. A person qualified to practice law if the person engages or agrees to engage in the legal representation of a disclosed foreign principal before any court of law or any agency of the Government of the United States or this state. for the purposes of this paragraph, legal representation does not include attempts to influence or persuade agency personnel or officials other than in the course of judicial proceedings, criminal or civil law enforcement inquiries, investigations or proceedings or agency proceedings required by law to be conducted on the record.
8. An agent of a person described in section 41-1241, paragraph 3, subdivision (c) or an entity described in section 41-1241, paragraph 3, subdivision (d) if the agent has engaged in lobbying activities and has registered under article 8.1 of this chapter in connection with the agent's representation of the person or entity.
41-1244. Filing and labeling of political propaganda
A. Every person within this state who is an agent of a foreign principal and who is required to register under this article and who transmits or causes to be transmitted in the United States mail or by any means or instrumentality of interstate or foreign commerce any informational materials for, or in the interests of, the foreign principal in the form of prints, or in any other form that is reasonably adapted to being, or that the person believes will be, or that the person intends to be, disseminated or circulated among two or more persons, not later than forty-eight hours after the beginning of the transmittal, shall file with the secretary of state two copies of the prints or other informational materials.
B. a person within this state who is an agent of a foreign principal and who is required to register under this article shall not transmit or cause to be transmitted in the United States mail or by any means or instrumentality of interstate or foreign commerce any informational materials for, or in the interests of, the foreign principal without placing in the informational materials a conspicuous statement that the materials are distributed by the agent on behalf of the foreign principal, and that additional information is on file with the secretary of state. The secretary of state may adopt a rule establishing what constitutes a conspicuous statement for the purposes of this subsection.
C. a person in this state who is an agent of a foreign principal required to register under this article shall not transmit, convey or otherwise furnish to any agency or official of this state, for or in the interests of such foreign principal, any political propaganda or request from an agency or official, for or in the interests of the foreign principal, any information or advice with respect to any matter pertaining to the political or public interests, policies or relations of a foreign country or of a political party or pertaining to the foreign or domestic policies of this State unless the propaganda or the request is prefaced or accompanied by a true and accurate statement to the effect that the person is registered as an agent of the foreign principal pursuant to this article.
D. When an agent of a foreign principal required to register under this article appears before any committee of the legislature to testify for or in the interests of the foreign principal, the agent shall, at the time of such an appearance, furnish the committee with a copy of the most recent registration statement filed with the secretary of state as an agent of the foreign principal for inclusion in the record of the committee as part of the agent's testimony.
41-1245. Books and records
Every agent of a foreign principal registered under this article shall keep and preserve the books of account and other records with respect to all of the agent's activities, the disclosure of which is required under this article, in accordance with such business and accounting practices, as the secretary of state, having due regard for the security of this state and the public interest, may require as necessary or appropriate for the enforcement of the provisions of this article and shall preserve the records for a period of three years following the termination of the agent's status. every agent of a foreign principal shall keep books of account and shall preserve all written records with respect to the agent's activities. Such books and records shall be open at all reasonable times to the inspection of any official charged with the enforcement of this article. It is unlawful for any person to wilfully conceal, destroy, obliterate, mutilate or falsify, or to attempt to conceal, destroy, obliterate, mutilate or falsify, or to cause to be concealed, destroyed, obliterated, mutilated or falsified, any books or records required to be kept under the provisions of this section.
41-1246. Public examination of official records; transmittal of records and information
The registration statements, supplements, prints, informational materials and other documents required by this article are subject to disclosure pursuant to title 39, chapter 1.
41-1247. Liability of officers
A. Each officer, or person performing the functions of an officer, and each director, or person performing the functions of a director, of an agent of a foreign principal which is not an individual shall cause the agent to execute and file a registration statement and supplements as required by this article and shall also cause the agent to comply with the requirements of sections 41-1244 and 41-1245. Dissolution of any organization acting as an agent of a foreign principal shall not relieve any officer, or person performing the functions of an officer, or any director, or person performing the functions of a director, from complying with the provisions of this article. In case of failure of an agent of a foreign principal to comply with any of the requirements of this article, each of the officers, or persons performing the functions of officers, and each of the directors, or persons performing the functions of directors, shall be subject to prosecution for the failure to comply.
B. It is unlawful for any agent of a foreign principal required to register under this article to be a party to any contract, agreement or understanding, either express or implied, with the foreign principal if the amount or payment of the compensation, fee or other remuneration of the agent is contingent in whole or in part on the success of any political activities carried on by the agent.
41-1248. Enforcement and penalties
A. Any person who knowingly violates any of the provisions of this article and any person who knowingly files any document provided for in this article that contains any materially false statement or material omission or any person who knowingly fails to comply with any material requirement of this article is guilty of a class 1 misdemeanor unless another classification is specifically prescribed in this article.
B. Any alleged violation of any provisions of this article may be investigated and prosecuted by the attorney general or by the county attorney of the county in which the alleged offense was committed.
C. If the secretary of state has reasonable cause to believe that a person is violating any provision of this article, the secretary of state shall notify the attorney general and the attorney general may serve on the person an order requiring compliance with that provision. The order shall state with reasonable particularity the nature of the violation and shall require compliance within twenty days after the date of issuance of the order. The alleged violator has twenty days after the date of issuance of the order to request a hearing pursuant to chapter 6, article 10 of this title.
D. If a person does not request a hearing and fails to take corrective action within the time specified in the compliance order issued pursuant to subsection A of this section or if, after the hearing, the person fails to take corrective action in compliance with an order issued after the hearing within the time specified in the order, the attorney general shall issue an order assessing a civil penalty of not more than one thousand dollars. The person alleged to have violated the compliance order has thirty days from the date of issuance of the order assessing the civil penalty to request a hearing pursuant to chapter 6, article 10 of this title.
E. Except as provided in section 41‑1092.08, subsection H, any party aggrieved by a final order or decision of the attorney general may appeal to the superior court pursuant to title 12, chapter 7, article 6.
F. The secretary of state shall:
1. Prescribe and publish the forms and adopt rules necessary to carry out the provisions of this article.
2. Refer to the attorney general or county attorney for investigation any matter that the secretary of state has reason to believe constitutes a violation of any of the provisions of this article.
