Foreign adversary registration bill clears first round
A measure that would establish registration and reporting requirements for certain foreign entities in Nebraska advanced from general file May 8.
LB644, introduced by Lincoln Sen. Eliot Bostar at the request of Gov. Jim Pillen, would create two new acts in state law: the Foreign Adversary and Terrorist Agent Registration Act and the Crush Transnational Repression in Nebraska Act.
A Government, Military and Veterans Affairs Committee amendment, adopted 31-1, replaced the bill with an amended version. Under the amendment, agents of foreign principals from adversary nations or terrorist organizations would be required to file a detailed registration statement with the Nebraska Attorney General’s Office, including the nature of all activities, agreements and financial transactions.
Bostar said the measure would combat foreign influence and manipulation of Nebraska state and local government officials and residents. The People’s Republic of China has stepped up efforts to cultivate state and local leaders to pursue their agenda, he said, which they see as easier than attempting to exert influence at the national level.
Under the bill, foreign principals are defined as foreign governments, political parties, entities organized under foreign laws, foreign terrorist organizations and entities with at least 20% foreign ownership. Agents of a foreign principal are individuals engaging in covered activities, excluding media entities with at least 80% U.S. ownership and no foreign control.
The amendment would regulate dissemination of informational material by registered agents, who would be required to file copies with the attorney general within 48 hours of transmission. Agents would be required to maintain detailed records of their activities for three years, open to inspection, with civil penalties of up to $50,000 per violation, per year.
Agents also could face expulsion or dismissal from Nebraska postsecondary institutions for violations of the act.
State employees who currently are required to file financial interest statements would be required to submit an affidavit denying foreign agent status and businesses and nonprofits would be required to attest to compliance with the act in biennial reports to the Nebraska secretary of state.
The attorney general would have authority to issue civil investigative demands of potential violations of the act.
The amendment also would establish the Crush Transnational Repression in Nebraska Act. Bostar said the intent of the act is to counter transnational repression and foreign government harassment of dissidents within Nebraska.
The provisions would enhance penalties to the next higher classification for certain offenses — including assault, terroristic threats and stalking — if committed by an agent of a foreign principal with the intent to:
• coerce action on behalf of a foreign principal;
• force an individual to leave the U.S.;
• suppress protected conduct, such as free speech or the free exercise of religion; or
• retaliate for protected conduct.
Bostar said many individuals who have fled repressive regimes continue to face dangers from agents of foreign principals, even on U.S. soil.
“We cannot allow foreign authoritarian governments to intimidate, harass or coerce those seeking freedom within our state,” he said.
The amendment would authorize the Nebraska State Patrol to prepare a report on transnational repression threats and permit them to develop training for law enforcement on identifying and responding to transnational repression.
It also would add requirements for lobbyists and consultants working for Chinese military companies to acknowledge that they are acting as agents of a foreign adversary, with a civil penalty of $100,000 per violation for noncompliance. Informants whose information leads to a violation finding under this provision would be paid $50,000 from the Nebraska Accountability and Disclosure Cash Fund.
The amendment also would prohibit research facilities from using genetic sequencers or software produced by foreign adversaries, their state-owned enterprises or businesses domiciled or affiliated with them.
Finally, the amendment would require companies bidding on public contracts to certify that they are not “scrutinized companies” under federal law and do not subcontract with such companies or provide products originating from them. Exceptions are provided for certain electrical suppliers and when no other reasonable option exists.
Sen. Kathleen Kauth of Omaha supported the proposal, which she said would keep foreign adversaries from taking advantage of tax credits or other programs that Nebraska taxpayers fund.
“Our complacency makes us easy targets,” Kauth said.
Omaha Sen. Terrell McKinney offered an unsuccessful motion to indefinitely postpone LB644, which he described as “largely performative.” He expressed concern that the bill would have unintended consequences for Nebraska businesses and residents, and that the measure would delegate broad powers to the attorney general’s office.
Also raising concerns about the proposal was Sen. George Dungan of Lincoln. He said the measure could “add fuel to the flame” of individuals being accused of being adversaries of the U.S. because of their race or ethnicity.
Dungan said it can be easy to go from concern about foreign influence to enabling government repression of those who are viewed as “other.”
“My overarching issue with these kinds of bills is if you don’t narrowly tailor them enough, you end up with this sort of McCarthy-esque, Red Scare attitude running rampant,” he said.
Dungan offered an amendment to strike provisions that would require postsecondary educational institutions to expel any student or fire any individual “employed by or associated with” the institution if found to be in violation of the bill. He said Nebraska court precedent clearly prohibits the Legislature from dictating policy to the university.
The Dungan amendment failed on a vote of 9-30.
Lincoln Sen. Danielle Conrad offered an amendment that also would remove those provisions, along with approximately 20 other sections of LB644. She said her streamlined version of the proposal would achieve the bill’s original objectives by relying on existing state and federal penalties and without placing “undue” reporting and registration burdens on Nebraska businesses and officials.
Her amendment failed 10-27.
A Bostar amendment, adopted 32-1, would make a series of changes to the proposal that he said reflected feedback from fellow senators. Among other changes, the amendment would specify that an attestation for businesses, state employees and officeholders that they are not foreign agents would be accomplished by checking a box, rather than submitting an affidavit.
Following adoption of the Bostar amendment, lawmakers advanced LB644 to select file on a vote of 30-2.
