Bill Summary – FastDemocracy

FIRST REGULAR SESSION
                       HOUSE BILL NO. 1341
                              103RD GENERAL ASSEMBLY


                              INTRODUCED BY REPRESENTATIVE BYRNES.

    2870H.01I                                                                    JOSEPH ENGLER, Chief Clerk


                                               AN ACT
    To repeal sections 27.040 and 173.275, RSMo, and to enact in lieu thereof six new sections
           relating to activities by foreign entities, with penalty provisions.


    Be it enacted by the General Assembly of the state of Missouri, as follows:

            Section A. Sections 27.040 and 173.275, RSMo, are repealed and six new sections
 enacted in lieu thereof, to be known as sections 27.040, 105.1301, 105.1306, 105.1311,
 105.1316, and 105.1321, to read as follows:
            27.040. 1. When required, [he] the attorney general shall give [his] an opinion, in
 writing, without fee, to the general assembly, or to either house, and to the governor, secretary
 of state, auditor, treasurer, commissioner of education, grain warehouse commissioner,
 director of the department of commerce and insurance, the director of the division of finance,
 and the head of any state department, or any circuit or prosecuting attorney upon any question
 of law relative to their respective offices or the discharge of their duties.
         2. The attorney general shall give a written opinion upon questions relating to
 gifts and contracts as provided in sections 105.1301 to 105.1321 and rules promulgated
 under such sections. The attorney general shall not charge a fee for such opinion.
            105.1301. 1. Sections 105.1301 to 105.1321 shall be known and may be cited as
 the "Research, Education, and Government Operations Protection Act of 2025".
         2. As used in sections 105.1301 to 105.1321, the following terms mean:
         (1) "Affiliate organization", an entity under the control of or established for the
 benefit of a direct-support organization or any other organization required to report
 under sections 105.1301 to 105.1321;


    EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
    intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language.
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         (2) "Agreement", a written or spoken statement of mutual interest in cultural
 exchange or academic or research collaboration;
         (3) "Contract", an agreement for the acquisition of property or services by
 purchase, lease, or barter for the direct benefit or use of any party to the agreement;
         (4) "Country of concern", the following entities:
         (a) The People's Republic of China;
         (b) The Russian Federation;
         (c) The Islamic Republic of Iran;
         (d) The Democratic People's Republic of Korea;
         (e) The Republic of Cuba;
         (f) The Venezuelan regime of Nicolas Maduro;
         (g) The Syrian Arab Republic;
         (h) A foreign terrorist organization, as designated by the United States Secretary
 of State in accordance with Section 219 of the federal Immigration and Naturalization
 Act, as amended;
         (i) An agent or entity under the significant control of a country of concern; or
         (j) Any other entity deemed to be a country of concern by the governor in
 consultation with the attorney general;
         (5) "Direct-support organization", an organization that is organized and
 operated to receive, hold, invest, and administer property and to make expenditures to
 or for the benefit of a postsecondary educational institution or for the benefit of a
 research and development park or research and development authority affiliated with a
 postsecondary educational institution;
         (6) "Foreign agent", any officer, employee, proxy, servant, delegate, or
 representative of a foreign government;
         (7) "Foreign government", the government or agent of any country, nation, or
 group of nations, or any agent, province, or other political subdivision of any country or
 nation, other than the government of the United States;
         (8) "Foreign instrumentality", any agency, bureau, ministry, component,
 institution, association, or any legal, commercial, or business organization, corporation,
 firm, or entity that is substantially owned, controlled, sponsored, commanded, managed,
 or dominated by a foreign government;
         (9) "Foreign source", any of the following:
         (a) A foreign government or an agency of a foreign government;
         (b) A legal entity, governmental or otherwise, created solely under the laws of a
 foreign state or states;
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         (c) An individual who is not a citizen or a national of the United States or a
 territory or protectorate of the United States;
         (d) A partnership, association, corporation, organization, or any other
 combination of persons organized under the laws of, or having its principal place of
 business in, a country of concern or subsidiary of such entity;
         (e) An agent acting on behalf of a foreign source including, but not limited to, a
 subsidiary or an affiliate of a foreign legal entity; or
         (f) A political party or member of a political party. As used in this paragraph,
 "political party" means an organization or combination of individuals whose aim or
 purpose is, or who 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 country of concern or a subdivision thereof, or the furtherance or
 influencing of the political or public interest, policies, or relations of a government of a
 country of concern or a subdivision thereof;
         (10) "Gift", any gift, grant, endowment, award, or donation of moneys or
 property of any kind, or any combination thereof including, but not limited to, a
 conditional or unconditional pledge of such gift, endowment, award, or donation. As
 used in this paragraph, "pledge" means a promise, an agreement, or an expressed
 intention to give a gift, and "grant" means a transfer of moneys for a specified purpose
 including, but not limited to, a conditional gift;
         (11) "Interest", when referring to interest in an entity, any direct or indirect
 investment in or loan to the entity valued at five percent or more of the entity's net
 worth, or any form of direct or indirect control exerting similar or greater influence on
 the governance of the entity;
         (12) "Municipality", any city, village, or town incorporated under state law;
         (13) "Obtain or use", any manner of:
         (a) Taking or exercising control over property;
         (b) Making any unauthorized use, disposition, or transfer of property;
         (c) Obtaining property by fraud, willful misrepresentation of a future act, or
 false promise; or
         (d) Conduct previously known as stealing; larceny; purloining; abstracting;
 embezzlement; misapplication; misappropriation; conversion; or obtaining money or
 property by false pretenses, fraud, or deception; or other conduct similar in nature;
         (14) "Partnership", a faculty or student exchange program, a study abroad
 program, a matriculation program, a recruiting program, or a dual-degree program;
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          (15) "Person", any natural person, corporation, business trust, estate, trust,
 partnership, association, joint venture, government, governmental subdivision or
 agency, or any other legal or commercial entity;
          (16) "Political subdivision", a county, municipality, public school, school district,
 postsecondary educational institution, state department, or an entity created by state
 law and authorized to levy taxes or empowered to cause taxes to be levied;
          (17) "Postsecondary educational institution", an entity that meets the definition
 of approved public institution under section 173.1102 and that is required to report
 foreign gifts or contracts under 20 U.S.C. Section 1011f, as amended, or an affiliate
 organization of such postsecondary educational institution;
          (18) "Public school", the same definition as in section 160.011;
          (19) "School district", a school district described in section 160.011 that is
 established under state law;
          (20) "State department", each department, office, board, bureau, commission,
 or other unit of the executive, legislative, or judicial branch of state government;
          (21) "Trade secret" includes, but is not limited to, the following:
          (a) The whole or any portion or phase of any formula, pattern, device,
 combination of devices, or compilation of information that is for use, or is used, in the
 operation of a business and that provides the business an advantage, or an opportunity
 to obtain an advantage, over those who do not know or use it;
          (b) Any scientific, technical, or commercial information including, but not
 limited to, financial information; and
          (c) Any design, process, procedure, list of suppliers, list of customers, business
 code, or improvement thereof, whether tangible or intangible, and regardless of whether
 or how it is stored, compiled, or memorialized physically, electronically, graphically,
 photographically, or in writing;
          (22) "Traffic", to sell, transfer, distribute, dispense, or otherwise dispose of
 property; or to buy, receive, possess, obtain control of, or use property with the intent to
 sell, transfer, distribute, dispense, or otherwise dispose of such property.
          3. (1) For purposes of the definition of "trade secret" under sections 105.1301 to
 105.1321, regardless of novelty, invention, patentability, the state of the prior art, and
 the level of skill in the business, art, or field to which the subject matter pertains, when
 the owner of a trade secret takes measures to prevent the secret from becoming
 available to persons other than those selected by the owner to have access thereto for
 limited purposes, a "trade secret" is considered to be:
          (a) Secret;
          (b) Of value;
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         (c) For use or in use by a business; and
         (d) Of advantage to the business, or providing an opportunity to obtain an
 advantage, over those who do not know or use it.
         (2) Information reported under section 105.1306 is not confidential or exempt
 from disclosure, except as protected under state law as a trade secret or as otherwise
 provided under state law.
         4. (1) The following officials or entities may promulgate all necessary rules and
 regulations for the administration of sections 105.1301 to 105.1321, as applicable:
         (a) The attorney general;
         (b) The state auditor;
         (c) The state treasurer;
         (d) The coordinating board for higher education; and
         (e) The state board of education.
         (2) Any rule or portion of a rule, as that term is defined in section 536.010, that is
 created under the authority delegated in sections 105.1301 to 105.1321 shall become
 effective only if it complies with and is subject to all of the provisions of chapter 536 and,
 if applicable, section 536.028. Sections 105.1301 to 105.1321 and chapter 536 are
 nonseverable and if any of the powers vested with the general assembly pursuant to
 chapter 536 to review, to delay the effective date, or to disapprove and annul a rule are
 subsequently held unconstitutional, then the grant of rulemaking authority and any rule
 proposed or adopted after the effective date of this section shall be invalid and void.
              105.1306. 1. (1) A political subdivision shall disclose the following to the
 attorney general:
         (a) A gift of any value that is directly or indirectly offered from a foreign source
 from a country of concern; and
         (b) A contract proposed by the political subdivision to, or directly or indirectly
 offered to the political subdivision from, a foreign source from a country of concern.
         (2) For purposes of sections 105.1301 to 105.1321, a gift received or a contract
 proposed from a foreign source through an intermediary or affiliate organization shall
 be considered an indirect gift to, or indirect contract with, the political subdivision and
 is subject to the disclosure process in sections 105.1301 to 105.1321.
         (3) For purposes of sections 105.1301 to 105.1321, all gifts and contracts
 described in subdivisions (1) and (2) of this subsection that were offered, received,
 proposed, or entered into on or after January 1, 2016, shall be subject to disclosure
 under sections 105.1301 to 105.1321. Once such gifts or contracts have been disclosed as
 required in sections 105.1301 to 105.1321, such gifts and contracts need not be disclosed
 in subsequent disclosures required under sections 105.1301 to 105.1321.
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         (4) (a) All gifts and contracts subject to disclosure that were offered, received,
 proposed, or entered into on or after January 1, 2016, but before the effective date of
 sections 105.1301 to 105.1321 shall be disclosed within sixty days after the effective date
 of sections 105.1301 to 105.1321.
         (b) All gifts and contracts subject to disclosure that are offered, received,
 proposed, or entered into on or after the effective date of sections 105.1301 to 105.1321
 shall be disclosed on the timeline provided in sections 105.1301 to 105.1321.
         2. No political subdivision shall accept such gift until after the attorney general
 issues an attorney general's opinion describing whether and under what conditions the
 political subdivision is authorized to accept the gift. A gift or contract that was offered,
 received, proposed, or entered into before the effective date of this section shall be
 disposed of as determined by the attorney general under sections 105.1301 to 105.1321.
         3. The attorney general shall develop policies and procedures for determining
 whether a political subdivision is authorized to accept a gift under sections 105.1301 to
 105.1321. Such policies and procedures shall address at least the following:
         (1) Disclosure forms to be used for disclosing gifts under sections 105.1301 to
 105.1321;
         (2) Unless otherwise prohibited or deemed confidential under state or federal
 law, the contents of a disclosure made by a political subdivision, which shall include, but
 not be limited to, the following:
         (a) The date the gift was offered;
         (b) The value of the gift;
         (c) The purpose of the gift;
         (d) The identification of the individuals or persons the gift is explicitly intended
 to benefit;
         (e) Any applicable conditions, requirements, restrictions, or terms made part of
 the gift;
         (f) The name and country of residence or domicile of the foreign source;
         (g) The name and mailing address of the disclosing entity; and
         (h) If applicable, the date of termination of the gift;
         (3) The procedure for issuing a final decision about the gift, which shall address
 at least the following:
         (a) Within thirty calendar days of receiving a disclosure of a proposed gift, the
 attorney general shall issue a final decision in the form of a written attorney general's
 opinion to the political subdivision that disclosed the gift; and
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        (b) The opinion shall indicate whether the political subdivision may accept the
 gift and, if so, the conditions under which the political subdivision may accept the gift;
 and
        (4) A web portal to assist with transparency about foreign gifts, which shall
 require the attorney general to maintain a public web portal to:
        (a) Disclose information on proposed gifts from countries of concern;
        (b) Display final decisions on whether a political subdivision may accept a gift;
 and
        (c) Disclose information on accepted gifts.
        4. The attorney general shall develop policies and procedures for determining
 whether a political subdivision is authorized to enter a contract under sections 105.1301
 to 105.1321. Such policies and procedures shall address at least the following:
        (1) Disclosure forms to be used for disclosing contracts under sections 105.1301
 to 105.1321;
        (2) Unless otherwise prohibited or deemed confidential under state or federal
 law, the contents of a disclosure made by a political subdivision, which shall include, but
 not be limited to, the following:
        (a) The date of the contract;
        (b) The amount of the contract;
        (c) The purpose of the contract;
        (d) The identification of the individuals or persons the contract is explicitly
 intended to benefit;
        (e) Any applicable conditions, requirements, restrictions, or terms made part of
 the contract;
        (f) A copy of the contract;
        (g) The name and country of residence or domicile of the foreign source;
        (h) The name and mailing address of the disclosing entity; and
        (i) If applicable, the date of termination of the contract;
        (3) The procedure for issuing a final decision about the contract, which shall
 address at least the following:
        (a) Within thirty calendar days of receiving a disclosure of a proposed contract,
 the attorney general shall issue a final decision in the form of a written attorney
 general's opinion to the political subdivision that disclosed the contract; and
        (b) The opinion shall indicate whether the political subdivision may enter the
 contract and, if so, the conditions under which the political subdivision may enter the
 contract; and
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         (4) A web portal to assist with transparency about foreign contracts, which shall
 require the attorney general to maintain a public web portal to:
         (a) Disclose information on proposed contracts from countries of concern;
         (b) Display final decisions on whether a political subdivision may enter a
 contract; and
         (c) Disclose information on contracts entered into by a political subdivision.
         5. Upon receiving a request from the governor, the speaker of the house of
 representatives, or the president pro tempore of the senate, the state auditor shall
 inspect or audit a gift, gift agreement, or proposed contract offered from a country of
 concern.
         6. A political subdivision shall disclose a contract proposed by a foreign source
 99