Political Reform Act of 1974: contributions and expenditures by foreign nationals.

Pacheco and Alanis envision a measure that tightens California’s political finance regime by extending prohibitions on contributions and expenditures to foreign nationals, while preserving a carve-out for lawful permanent residents and certain Deferred Action for Childhood Arrivals recipients. The core change is to apply the existing prohibitions—already targeting foreign governments and foreign principals—to a broader set of actors in connection with state or local ballot measures and elections, with the intent of limiting foreign influence in these processes.

Key mechanisms include defining foreign national as a person who is not a United States citizen and not a lawfully admitted permanent resident, with an explicit exclusion for individuals granted deferred action under the federal DACA program whose deferred action remains active. The measure also expands the concept of foreign principal to encompass foreign political parties, certain non-U.S. individuals and organizations, foreign-based partnerships or subsidiaries, and a domestic subsidiary of a foreign corporation when decision-making over contributions is by a non-citizen non-LPR. The prohibitions cover contributions, expenditures, and independent expenditures, and extend to solicitations or acceptance of such funds. Violations would be misdemeanors with fines equal to the amount contributed or expended; lawful permanent residents remain exempt from the prohibition.

Implementation and fiscal considerations are framed as creating a state-mandated local program by broadening the crime’s scope, with the bill designating no reimbursement for local agencies. The act is presented as an amendment to the political reform framework, requiring a two-thirds vote in each house and subject to a fiscal committee analysis, but without an explicit appropriation. Enforcement authority is not specified within the text, leaving existing enforcement pathways under current law as the likely avenues for prosecution, while the practical process for proving indirect or intermediary contributions and for verifying donor status would hinge on customary evidentiary and prosecutorial standards.

Contextual implications include alignment with the Political Reform Act’s purposes and a stated intent to enhance protections against foreign influence in state and local electoral processes. The bill’s definitions and carve-outs raise interpretive questions for donors, campaigns, and domestic subsidiaries, particularly around how status changes (such as shifts in DACA or citizenship) would affect ongoing or past contributions. The proposal also interacts with existing donor disclosure regimes and enforcement mechanisms, while leaving the timing of enactment and the specifics of day-to-day compliance to future implementing guidance and statutory language.