SB 899

Current law provides that no person may make or accept a contribution, make a disbursement, make an expenditure, or incur an obligation in violation of the federal law that prohibits a foreign national from making a contribution in connection with any federal, state, or local election. A decision by the Federal Elections Commission in 2024 allowed a foreign national to make a contribution to a ballot initiative committee because the FEC determined that a ballot initiative is not an “election” for purposes of the federal law prohibiting contributions from foreign nationals.

This bill provides that no foreign national may, directly or indirectly, make a contribution to a referendum committee and no referendum committee may, directly or indirectly, receive, solicit or accept a contribution from a foreign national. In addition, no foreign national may direct, dictate, control, or directly or indirectly participate in the decision-making process of any person regarding the person’s activities to support or oppose a referendum or to influence a particular vote at a referendum.

The bill requires each referendum committee and independent expenditure committee, and its sponsoring organization, to obtain from a person making a contribution to the committee, or providing funds to the sponsoring organization, a written affirmation that the person is not a foreign national and has not intentionally accepted funds aggregating in excess of $100,000 from one or more foreign nationals during the four-year period immediately preceding the date of the contribution to the committee or the provision of funds to the sponsoring organization. The referendum committee must attest in each report submitted to the Ethics Commission that it has obtained the affirmations required under the bill. In addition, each independent expenditure committee that makes a disbursement, expenditure, or contribution to support or defeat a referendum, or to influence a particular vote at a referendum, must attest in each report submitted to the commission that it has obtained the affirmations required under the bill.

Finally, each referendum committee must include in its registration statement an affirmation that none of the referendum committee’s preliminary activity was funded, directly or indirectly, by a foreign national. The bill defines “preliminary activity” as activity occurring prior to filing a registration statement and includes preparing and analyzing referendum language and ballot questions, conducting a poll, survey, or focus group, making communications, and travel.