HB2506 - 562R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 41, chapter 1, article 5, Arizona Revised Statutes, is amended by adding section 41-197, to read:

START_STATUTE41-197. Foreign principal; country of concern; registration; attorney general; exemption; violation; classification; definitions

A. Notwithstanding any other law, a person may not act as an agent of a foreign principal from a country of concern unless the person has filed a registration statement with the attorney general's office. A person that becomes an agent of a foreign principal from a country of concern within ten days of becoming an agent of a foreign principal shall file a registration statement with the attorney general's office, under oath, on a form prescribed by the attorney general's office. The registration statement shall include all of the following:

1. The registrant's name.

2. The registrant's address.

3. The foreign principal's business address and all other associated business addresses in the United States or outside of the United States.

4. The status of the registrant and any associated information based on the following:

(a) If the registrant is an individual, the individual's nationality and addresses.

(b) If the registrant is a partnership, the names, addresses and nationalities of each partner and a copy of the partnership's articles of incorporation.

(i) The names, addresses and nationalities of each director and officer and of each person performing the functions of a director or officer.

(ii) A copy of the charter, articles of incorporation or bylaws.

(iii) A copy of a statement of the terms and conditions of every agreement relating to the association, corporation or organization, including powers and purposes and a statement of ownership and control.

5. A comprehensive statement of the nature of the registrant's business.

6. A complete list of the registrant's employees and a statement of the nature of the work in which each employee is involved.

7. The names and addresses of every foreign principal from a country of concern on whose behalf the registrant is acting.

8. The extent, if any, to which the foreign principal from a country of concern 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 from a country of concern.

9. Copies of each written agreement and the terms and conditions of each oral agreement, including all modifications or, if no agreements exist, a comprehensive statement of all the circumstances in which the registrant is an agent of a foreign principal from a country of concern.

10. A comprehensive statement of the nature and method of performance of any agreement and the existing and proposed activities engaged in by the registrant as an agent of a foreign principal from a country of concern, including any political activities.

11. The amount of any monies that the registrant has received from the foreign principal from a country of concern, either as compensation or disbursement, the form and time of each payment and from whom the registrant received the payment.

12. A comprehensive statement of every activity that the registrant is performing or has agreed to perform for any other person other than a foreign principal from a country of concern and that requires the registrant's registration pursuant to this section, including a detailed statement of any activity that is a political activity.

B. The registration statement and any other supplemental information shall be executed by the individual registrant unless any of the following applies:

1. If the registrant is in a partnership, the registration statement and any other supplemental information shall be executed by the majority of the members.

2. In any instance not involving an individual or partnership, the registration statement and any other supplemental information shall be executed 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.

C. If the attorney general's office determines that a registration statement filed pursuant to subsection a of this section is deficient in any way, the attorney general's office shall notify the registrant in writing of any deficiencies. Within ten days after receiving the notice of deficiency, the registrant shall amend the registration statement and cure all deficiencies.

D. If a registrant that files a registration statement pursuant to subsection a of this section receives any additional information that the registrant is required to report, the registrant shall update the registration statement within ten days after receiving the additional information.

E. The attorney general's office shall retain a copy of all registration statements and each registration statement shall be open for public inspection at any reasonable time. A person may obtain copies of the registration statements open for public inspection on request and the attorney general may establish a fee in rule for providing the copies.

F. This section does not apply to any of the following:

1. An accredited diplomatic or consular officer of a foreign government that is recognized by the United States department of state, while 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, or the staff or employee of the officer.

2. If the foreign government is recognized by the United States, any official of the foreign government who is not any of the following:

(a) A public relations counsel.

(b) A publicity agent.

3. Any person qualified to practice law in this state, if the person engages or agrees to engage in the legal representation of a foreign principal from a country of concern before any court in this state. For the purposes of this paragraph, legal representation does not include any of the following:

(a) Attempts to influence or persuade agency personnel or officials other than in the course of judicial proceedings.

(b) Criminal or civil law enforcement inquiries, investigations or proceedings.

G. A person in this state that is an agent of a foreign principal from a country of concern may not do any of the following:

1. Transmit through the United States mail, or by any other means or instrumentality of interstate or foreign commerce, any informational materials for or in the interests of a foreign principal from a country of concern without including a conspicuous statement within the materials that the materials are being distributed by the agent on behalf of a foreign principal.

2. Transmit or convey to any agency or public official in this state any political propaganda in support of a country of concern unless the propaganda is accompanied by a true and accurate statement that the person is registered as an agent of a foreign principal pursuant to this section.

3. Request any information or advice regarding the political or public interests, policies or relations of a country of concern.

H. If an agent of a foreign principal from a country of concern that has filed a registration statement pursuant to subsection A of this section appears before any committee of the state legislature to testify for or in the interest of the foreign principal from a country of concern, the agent of a foreign principal at the time of the appearance shall provide the committee with a copy of the registration statement filed with the attorney general's office.

I. It is unlawful for an agent of a foreign principal from a country of concern to be a party to any contract or agreement, either express or implied, with a foreign principal from a country of concern where the amount of compensation is contingent, in whole or in part, on the success of any political activities carried out by the agent of a foreign principal. A person that violates this subsection is guilty of a class 6 felony and, notwithstanding section 13-801, shall be sentenced to a fine of $50,000 per violation.

J. Any person that knowingly or wilfully violates this section or wilfully makes any false statement of material fact when filing a registration statement pursuant to subsection A of this section is guilty of a class 4 felony and, notwithstanding section 13-801, shall be sentenced to a fine of $100,000 per violation.

K. Any person who is a student, faculty member, researcher or adjunct professor or who is otherwise employed or associated with a university in this state and who wilfully violates this section, makes a false statement of material fact or wilfully omits any material fact required to be stated in any registration statement or supplement pursuant to this section or in any other document filed with the attorney general's office shall be expelled or dismissed from any role with the institution of higher education in this state and shall be prohibited from entering any institution of higher education's campus in this state. Each institution of higher education in this state shall adopt a policy for the expulsion or dismissal of any individual who has violated this subsection.

L. Any alien who violates this section or is found to be in a conspiracy to violate this section is subject to referral to the United States department of justice pursuant to the immigration and nationality act (8 United States Code chapter 12).

M. The attorney general may adopt rules necessary to implement this section.

N. For the purposes of this section:

1. "Agent of a foreign principal":

(a) Means any of the following:

(i) A person that acts as a representative or employee of a foreign principal.

(ii) A person that acts in any capacity at the order or request or under the direction or control of a foreign principal.

(iii) A person whose activities are directly or indirectly supervised, directed, controlled, financed or subsidized, in whole or in part, by a foreign principal and that directly or through any other person engages in political activities for or in the interests of a foreign principal in this state.

(iv) A person that acts as a public relations counsel, publicity agent, information service employee or political consultant for or in the interests of a foreign principal in this state.

(v) A person that solicits, collects, disburses or dispenses contributions, loans, monies or other things of value for or in the interests of a foreign principal in this state.

(vi) A person that represents the interests of a foreign principal before an agency or public official in this state.

(b) Includes any person that agrees, consents, assumes or holds the person out to be an agent of a foreign principal.

(i) Any news, press service or association organized under the laws of the United States or any state or other area subject to the jurisdiction of the United States.

(ii) Any newspaper, magazine, periodical or publication.

2. "Country of concern" includes:

(a) China, including the Hong Kong special administrative region.

(b) Cuba.

(d) North Korea.

(e) Russia.

(f) Saudi Arabia.

(g) Venezuela.

3. "Foreign political party" means any of the following:

(a) An organization, including any unit or branch of an organization, or combination of individuals in a country other than the United States that is engaged in activities devoted to the establishment or control of a government of a foreign country.

(b) A subdivision of an organization in a country other than the United States that furthers or influences the political or public interests, policies or relations of a government of a foreign country.

4. "Foreign principal" means any of the following:

(a) The government of a foreign country or a foreign political party.

(b) 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.

(c) A partnership, association, corporation, organization or other combination of persons that is at least twenty percent owned by 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.

5. "Government of a foreign country":

(a) Means any person or group exercising sovereign political jurisdiction over any country, other than the United States, or over any part of a country.

(b) Includes any of the following:

(i) A subdivision of any group and any group or agency where a sovereign's authority or functions are directly or indirectly delegated.

(ii) A faction or body of insurgents within a country assuming to exercise governmental authority regardless of whether the faction or body of insurgents has or has not been recognized by the United States.

6. "Information service employee" means any person that 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, 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.

7. "Person" means an individual, partnership, association, corporation, organization or other combination of individuals.

8. "Publicity agent" means any person that engages directly or indirectly in the publication or dissemination of oral, visual, graphic, written or pictorial information of any kind, including publication by means of advertising, books, periodicals, newspapers, lectures, broadcasts or motion pictures.

9. "Public relations counsel" means any person that engages directly or indirectly in informing, advising or representing a foreign principal from a country of concern in any public relations matter pertaining to the political or public interests, policies or relations of the foreign principal. END_STATUTE

Sec. 2. Retroactivity

This act applies retroactively to from and after December 31, 2013.