Bill
HD 984
Prohibits political spending by foreign-influenced Massachusetts corporations, with 7-day post-expenditure certifications and ad disclosures revealing potential foreign influence.
Overview
- Purpose: Proposes to restrict political spending by corporations identified as “foreign-influenced” in Massachusetts campaign finance laws.
- Introduced: January 14, 2025 (House Docket No. 984; accompanying House Bill No. 875). Status not specified in the provided material.
- Scope: Applies to for-profit corporations and similar entities operating in Massachusetts, with specific definitions and disclosure requirements tied to political activities.
What the bill would do
- Prohibit political spending by foreign-influenced corporations, including:
- Independent expenditures
- Electioneering communications
- Contributions to independent-expenditure PACs (as defined in Section 18A)
- Contributions to ballot question committees
- Expenditures to promote or oppose charter changes, referendum questions, constitutional amendments, or other voter-initiated questions
- Require post-expenditure certifications:
- Within 7 business days of making any prohibited expenditure or contribution, the corporation must file a certification with the state director, signed by the chief executive officer under penalty of perjury, confirming the corporation was not foreign-influenced on the date of the expenditure or contribution.
Key definitions (Section 1)
- Foreign-influenced corporation: A for-profit entity meeting any of these conditions:
1) A single foreign owner holds at least 1% of total equity/voting interests.
2) Two or more foreign owners collectively hold 5% or more of total equity/voting interests.
3) A foreign owner participates directly/indirectly in the corporation’s political activities in the United States.
- Foreign investor: An entity or person from a foreign country or outside the U.S. that meets ownership criteria.
- Foreign owner: A foreign investor or any entity in which a foreign investor holds at least 50% of total equity or voting shares.
- Chief executive officer: The highest-ranking officer with decision-making authority over the corporation.
Advertising disclosures (Section 3)
- If an ad funded by an independent expenditure or electioneering communication is not supported by top-contributor certifications, the ad must include:
- A disclaimer stating: “Some of the funds used to pay for this message may have been provided by foreign-influenced corporations.”
- Emitter may rely on contributor certifications (where provided) unless they have actual knowledge that the certification is false.
Impact considerations
- Targeted entities: For-profit corporations with foreign influence per the defined thresholds.
- Compliance burden: New definitions, mandatory 7-day certifications, and post-expenditure disclosures add reporting requirements.
- Transparency: Adds disclosures and disclaimers to help voters understand potential foreign influence in political spending.
- Potential issues: Effectiveness against complex corporate structures, potential legal challenges on definitions, and administrative costs to implement enforcement.
Status and next steps
- Based on the provided text, the bill’s status is not stated beyond its introduction. If enacted, agencies would implement new definitions and reporting rules within Massachusetts campaign finance law (Chapter 55).
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
