BILL NUMBER: AB 746	CHAPTERED  09/08/00

	CHAPTER   349
	FILED WITH SECRETARY OF STATE   SEPTEMBER 8, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 7, 2000
	PASSED THE ASSEMBLY   AUGUST 10, 2000
	PASSED THE SENATE   JUNE 29, 2000
	AMENDED IN SENATE   MAY 1, 2000
	AMENDED IN SENATE   FEBRUARY 17, 2000
	AMENDED IN ASSEMBLY   JUNE 2, 1999
	AMENDED IN ASSEMBLY   APRIL 7, 1999

INTRODUCED BY   Assembly Member Papan

                        FEBRUARY 24, 1999

   An act to amend Section 85320 of the Government Code, relating to
the Political Reform Act of 1974.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 746, Papan.  Political Reform Act of 1974.
   (1) Existing provisions of the Political Reform Act of 1974, with
certain exceptions, forbid any foreign government or foreign
principal from making any contribution, expenditure, or independent
expenditure in connection with the qualification or support of, or
opposition to, any state or local ballot measure.  This provision
defines foreign principal as a foreign government or foreign
political party, a person outside of the United States, except as
specified, or a foreign partnership, association, corporation,
organization, or other combination of persons.
   This bill would revise that definition to include (a) a foreign
political party, (b) a foreign company, as specified, (c) a person
outside the United States, unless the person is either an American
citizen or an American entity, as specified, and (d) a domestic
subsidiary or a foreign corporation if the decision to contribute is
made by a specified officer or employee of the corporation who is not
a United States citizen or permanent resident.  The bill would
delete an exception in current law for this last category.  The bill
would also specify that this provision shall not prohibit a
contribution, expenditure, or independent expenditure by a lawfully
admitted permanent resident.
   (2) The Political Reform Act of 1974, an initiative measure,
provides that the Legislature may amend the act to further the act's
purposes with a 2/3 vote of each house and compliance with specified
procedural requirements.
   This bill would declare that it furthers the purposes of the act.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 85320 of the Government Code is amended to
read:
   85320.  (a) No foreign government or foreign principal shall make,
directly or through any other person, any contribution, expenditure,
or independent expenditure in connection with the qualification or
support of, or opposition to, any state or local ballot measure.
   (b) No person and no committee shall solicit or accept a
contribution from a foreign government or foreign principal in
connection with the qualification or support of, or opposition to,
any state or local  ballot measure.
   (c) For the purposes of this section, a "foreign principal"
includes the following:
   (1) A foreign political party.
   (2) A person outside the United States, unless either of the
following is established:
   (A) The person is an individual and a citizen of the United
States.
   (B) The person is not an individual and is organized under or
created by the laws of the United States or of any state or other
place subject to the jurisdiction of the United States and has its
principal place of business within the United States.
   (3) 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) A domestic subsidiary of a foreign corporation if the decision
to contribute or expend funds is made by an officer, director, or
management employee of the foreign corporation who is neither a
citizen of the United States nor a lawfully admitted permanent
resident of the United States.
   (d) This section shall not prohibit a contribution, expenditure,
or independent expenditure made by a lawfully admitted permanent
resident.
   (e) Any person who violates this section shall be guilty of a
misdemeanor and shall be fined an amount equal to the amount
contributed or expended.
  SEC. 2.  The Legislature finds and declares that the provisions of
this act further the purposes of the Political Reform Act of 1974
within the meaning of subdivision (a) of Section 81012 of the
Government Code.