Declaratory Ruling 2026-01: US Subsidiary Lobbyist Contributions Under Public Act 24-28

STATE OF CONNECTICUT STATE ELECTIONS ENFORCEMENT COMMISSION

DECLARATORY RULING 2026-01 Concerning the Application of Public Act 24-28 to Personal Campaign Contributions by House In Lobbyists of U.S. Subsidiaries of Foreign Corporations On October 29, 2025, the State Elections (the "Commission") received a Petition for Declaratory Ruling filed by Attorney Jeffrey Zyjeski of Gaffney, Bennett & Associates (the "Petitioner"). The petition requests guidance on whether an in-house lobbyist, who is a U.S. citizen and resident and is employed by a U.S. wholly owned by a foreign parent qualifies as an "agent of a foreign under Public Act 24-28 and is therefore prohibited from making personal campaign in Connecticut. At its regular meeting on October 30, 2025, the voted to initiate a declaratory ruling proceeding in response to this petition. The Petition specifically inquires whether such an qualifies as an "agent of a foreign solely due to the foreign ownership of the parent corporation. Executive Summary For the reasons set forth below, the concludes that, based on the facts presented, an in-house lobbyist who is a U.S. citizen and resident and is employed by a U.S. wholly owned by a foreign parent is not an "agent of a foreign within the meaning of Public Act 24-28 solely by virtue of that ownership relationship. Under the federal statutory framework, as informed by the Foreign Agents Act (FARA), an agency requires more than foreign ownership. Where a U.S. operates independently and maintains domestic management, establishes its own lobbying agenda, employees in the United States, does not receive direction from the foreign parent regarding such activities, and is under the federal Lobbying Act of 1995 (LDA), the requisite elements of agency are not present. absent evidence that the individual's lobbying or political are conducted at the order, request, direction, or control of the foreign parent, such an is not prohibited from making personal campaign in solely on the basis of their employment. This ruling is limited to the specific facts presented and does not alter or supersede other on by lobbyists under law; it may also differ where indicia of foreign direction or control exist.

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1. Background Public Act 24-28 was enacted to address foreign influence in elections and is now codified as General Statutes §§ 9-622 (17) and (18), 9-601 (33) through (38). General Statutes § 9-622 (17) and (18) prohibit from "foreign nationals." General Statutes § 9-601 (33) defines "foreign national" to include: (A) A foreign principal and any agent or separate segregated fund of a foreign (B) An who is not (i) a citizen of the United States, (ii) a national of the United States, or (iii) lawfully admitted for permanent residence; or (C) A firm, partnership, association, organization or other entity: With respect to which a foreign owner or a person described in (i) subparagraph (A) or (B) of this subdivision holds, owns, controls or otherwise has a direct or indirect beneficial ownership of at least five per cent of such entity's total equity or outstanding voting shares; (ii) With respect to which two or more, in combination, foreign owners or persons described in subparagraph (A) or (B) of this subdivision hold, own, control or otherwise have a direct or indirect beneficial ownership of at least twenty per cent of such entity's total equity or outstanding voting shares, excluding interests held in a widely held, diversified fund; (iii) With respect to which a foreign owner or described in subparagraph (A) or (B) of this subdivision, as applicable, of this subdivision participates directly or in decisions to engage in any activity subject to the of chapter 155 or 157; (Emphasis added.) The of Public Act 24-28 apply to both the parent and its U.S. because both qualify as foreign nationals under General Statutes § 9-622 (33) (C). The lobbyist, however, is a U.S. citizen and not a foreign national and is therefore subject to the of Public Act 24-28 only if they are covered as an "agent of a foreign principal". The the following facts: • The U.S. is under U.S. law. • Its headquarters, management, and operational control are located in the United States. • The lobbying agenda is domestically by U.S. management. • U.S. employees are compensated and supervised by U.S. management. • The files lobbying disclosures under the federal Lobbying Act of 1995 (LDA), not under the Foreign Agents Act (FARA). 2 of 8

State Elections •Day-to-day lobbying direction does not flow from the foreign parent. The at issue is a U.S. citizen and resident employed as a in-house lobbyist of the U.S. subsidiary.

1. Analysis
   U.S. campaign finance law prohibits foreign nationals from directly or making contributions or expenditures in connection with federal, state, or local elections.' These serve the governmental interest of "preventing foreign influence over the U.S. political process." 2 Individuals who are U.S. citizens or lawfully admitted for permanent residence to the United States are not foreign nationals and are generally not prohibited from making or soliciting such funds from other U.S. citizens, regardless of residence. 3 Public Act 24-28 incorporates a similar framework into law. However, the Act distinguishes between different categories of foreign nationals, and those distinctions are central to the analysis. In particular, the Act separately addresses foreign principals and their agents; non-citizens and individuals without lawful permanent residence; and foreign-influenced entities. Only the first category extends to agents. 4 Nothing in the text of the Act or its legislative history indicates an intent to restrict the political rights of U.S. citizens solely because they are employed by a U.S.-incorporated employer that is foreign-owned, unless they are agents of the foreign 5

2. Agents of Foreign Principals
   General Statutes § 9-601 (34) instructs that "foreign is to have the same meaning as provided in in 22 U.S.C. § 611 (b) of the Foreign Agents Act (FARA), 22 U.S.C. § 611 et seq. Under FARA, subsection (b) of § 611 defines "foreign to include: (1) a foreign government and a foreign political party; (2) a person outside the United States unless it is that such person is an and a citizen of and domiciled within the United States, or that such

52 U.S.C.S § 30121. See also 2 U.S.C.S. § 431. Bluman v. FEC, 800 F. Supp. 2d 281, 288 (D.D.C. 2011), aft" d, 565 U.S. 1104 (2012). 2 General Statutes § 9-601 (33) (B); Federal Election Comm'n, "AO 2016-10: US citizen residing abroad 3may solicit to state and local party committees" (Oct. 4, 2016) ("These do not prohibit U.S. citizens from making or donations or from soliciting such funds from other U.S. citizens, regardless of residence"). General Statutes § 9-601 (33). el Id.; See 52 U.S.C.S. § 30121 (b) (providing that "foreign national" does not include "any who 5is a citizen of the United States"); See also Federal Election Comm'n, "Advisory Opinions: AO 1989-32" (Jul. 2, 1990) (the term "foreign national" includes an who is not a U.S. citizen or lawfully admitted for permanent residence under 8 U.S.C. 1101(a)(20); the term also includes a "foreign a defined in 22 U.S.C. 611 (b), as long as that foreign principal is not a U.S. citizen);

State Elections person is not an 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; and (3) a partnership, association, organization, or other combination of persons organized under foreign laws or having its principal place of business in a foreign country. To fully determine the meaning of "foreign principle" under FARA, the must consider not only to the of that term, but also how it operates within the statutory prohibition to agents of a foreign For example, under 22 U.S.C. § 611 (c), an "agent of a foreign means: (1) any person who acts as an agent, representative, employee, or servant, or any person who acts in any other capacity at the order, request, or under the direction or control, of a foreign principal or of a person any of whose are directly or supervised, directed, controlled, financed, or subsidized in whole or in major part by a foreign principal and who directly or through any other person-- (i)engages within the United States in political for or in the interests of such foreign (ii)acts within the United States as a public relations counsel, publicity agent, information-service employee or political consultant for or in the interests of such foreign (iii)within the United States solicits, collects, disburses, or dispenses contributions, loans, money, or other things of value for or in the interest of such foreign or (iv)within the United States the interests of such foreign principal before any agency or official of the Government of the United States; and (2) any person who agrees, consents, assumes or purports to act as, or who is or holds himself out to be, whether or not pursuant to contractual relationship, an agent of a foreign principal as defined in clause (1) of his subsection. 6 (Emphasis added.) The scope of agency under FARA thus involves a two-part inquiry that considers both (A) the between the purported agent and the foreign principal and (B) the the agent performs in the interests of that As used in the first part of the agency test, the term "control" or any of its variants shall be deemed to include the possession or the exercise of the power, directly or indirectly, to

22 U.S.C.S. 611 (d) further defines an agent of a foreign principal with respect to the media. 6

State Elections determine the policies or the of a person, whether through the ownership of voting rights, by contract, or otherwise. 28 C.F.R. § 5.100 (b). 7 FARA also contains a series of exemptions for fact patterns that result in there being no application of the FARA requirements to agents. These include an exemption for agents who engage only in private and non-political or who register under the Lobbying Act of 1995.8 In order to determine the applied to a foreign principal and its agents under General Statutes § 9-601 (33) in concert with the meaning given in FARA to the foreign principal and resulting restrictions, the will look to the FARA provisions, regulations and the interpretation of the Department of Justice.

1. Application to the Employee If the U.S. is acting as an agent of the foreign the subsidiary's in-house lobbyist could be considered an agent (once-removed) of the foreign principal since the in-house lobbyist acts as an agent of his employer. Based on the facts presented by the Petitioner: • The is under U.S. law; • It maintains its principal place of business in the United States; • It and compensates employees domestically. • It establishes its lobbying agenda domestically;

The Dept. of Justice also considers relevant factors including whether those requested to act were 7identified with specificity by the the specificity of the action requested; whether the request is compensated or coerced; whether the political align with the person's own interests; whether the position advocated aligns with the person's subjective viewpoint; and the nature of the between the person and the foreign See Dept. of Justice, FARA UNIT, "The Scope of Agency Under FARA" (May 2020) available at https://www.justice.govinsd-fara/page/file/12798361d1. 22 U.S.C.S. § 613, entitled, Exemptions, provides: 8The requirements of section 612 (a) of this title shall not apply to the following agents of foreign principals: (d) Private and nonpolitical activities; solicitation of funds Any person engaging or agreeing to engage only (1) in private and nonpolitical in furtherance of the bona fide trade or commerce of such foreign or (2) in other not serving predominantly a foreign interest; or (3) in the soliciting or collecting of funds and within the United States to be used only for medical aid and assistance, or for food and clothing to relieve human suffering, if such solicitation or collection of funds and is in accordance with and subject to the of subchapter II of chapter 9 of this title, and such rules and regulations as may be prescribed thereunder; (h) Agents of foreign principals Any agent of a person described in section 611 (b) (2) of this title or an entity described in section 611 (b) (3) of this title if the agent has engaged in lobbying and has under the Lobbying Act of 1995 [2 U.S.C. 1601 et seq.] in connection with the agent's representation of such person or entity.

State Elections •Day-to-day lobbying direction does not flow from the foreign parent; and •It files lobbying disclosures under the Lobbying Act (LDA). Under FARA, an agency requires that a person (1) act at the order, request, or under the direction or control, of a foreign principal or of a person any of whose are directly or supervised, directed, controlled, financed, or subsidized in whole or in major part by a foreign principal and (2) directly or through any other person engage in the four types of listed for or in the interests of such foreign corporate ownership alone thus does not establish such an agency relationship.9 Here, the that the U.S. operated independently in its domestic affairs: "The U.S. maintains its own local management . . . and compensates and its employees domestically. . . The U.S. maintains its domestic affairs independently."1° The also that the lobbying of the U.S. are conducted in the interests of the rather than the parent, with lobbying agenda domestically and without day-to-day direction from the foreign parent. although the foreign parent qualifies as a foreign principal under FARA there is nothing in the facts presented that indicates that the falls within the of an agent of a foreign principal under FARA." If the U.S. itself is not an agent of the foreign the employee acting as an agent of the U.S. in their capacity as an in-house lobbyist would not be an agent by virtue of his employment. If the U.S. is not an agent, the remaining question is whether the employee is independently acting as an agent of the foreign Under FARA, agency requires that political be undertaken at the direction, request, or control of the foreign

See Dept. of Justice, FARA UNIT, "The Scope of Agency Under FARA" (May 2020); U.S. ADept. of 9Justice, National Security Division, "Re: Request for Advisory Opinion Pursuant to 28 C.F.R. § 5.2" (Jul. 5, 2023) available at https://www.justice.govinsd-fara/media/1316356/d1?inline; U.S. Dept. of Justice, National Security Division, "Re: Request for Advisory Opinion Pursuant to 28 C.F.R. § 5.2" (Oct. 31, 2023) available at https://www.justice.govinsd-fara/media/1355081/d1?inline; U.S. Dept. of Justice, National Security Division, "Re: Request for Advisory Opinion Pursuant to 28 C.F.R. § 5.2" (May 19, 2023) available at https://www.justice.govinsd-fara/media/1316336/d1?inline. Petitioner's Memorandum to the "Re: Request for Advisory Opinion" (Oct. 29, 2025) 1°available at https://seec.ct.gov/Portal/rulings/RulingsOpinions. U.S. Dep. of Justice, National Security Division, "Re: [U.S. firm] re [foreign corporation] Request for 11Advisory Opinion Pursuant to 28 C.F.R. § 5" (Mar. 26, 2021) available at https://www.justice.govinsd-fara/page/file/1395166/d1?inline=; U.S. Dept. of Justice, National Security Division, "Re: Request for an Advisory Opinion Pursuant to 28 C.F.R. § 5.2" (Oct. 11, 2022) available at https://www.justice.govinsd-fara/media/1266171/d1?inline=.

State Elections The statute therefore requires more than participation in lobbying or public affairs on behalf of a domestic subsidiary; it requires that those be conducted on behalf of the foreign principal itself The facts presented as discussed above do not indicate that the individual's lobbying or political are directed, requested, or controlled by the foreign parent corporation. We note, however, that the DOJ's analysis of agency under FARA has multiple factors, such as whether the foreign parent has made requests for political activities, and those factors are not fully addressed in the facts as presented. Even should such facts exist establishing agency to a foreign however, the FARA would not apply based upon that agency due to the with LDA. Under FARA, this fact means the FARA requirements would not apply. Thus, interpreting the arising out of the foreign principal in law in light of the meaning of similar terms under FARA, the would have no restrictions.

1. Conclusion Based on the statutory language of Public Act 24-28, the federal law through FARA, and the particular facts presented by the Petitioner, the concludes that an in-house lobbyist who is a U.S. citizen and resident is not an "agent of a foreign solely because the employer is a domestic of a foreign Absent indication that the petitioner's lobbying or political activities, or that of the U.S. for whom they lobby, are directed or requested or controlled by the foreign parent the petitioner does not fall within the statutory prohibition to agents of a foreign such individuals may make personal political in elections, provided that: • Their lobbying or political are not directed or controlled by the foreign parent; • They are using their own personal funds and are not reimbursed by the employer; And

• All other state lobbying and campaign finance are satisfied. The emphasizes that this determination is based solely on the facts -represented in the Petition and is fact specific. This analysis may change depending upon facts and circumstances including, but not limited to, internal governance structure, who has directed or requested lobbying strategy, whether the foreign parent participates in political decision-making, whether the lobbying activity is conducted on 7 of 8

State Elections behalf and with the LDA. of parent status The the foreign Department of Justice has noted that a broad range of factors may inform whether a person qualifies as an agent of a foreign principal under FARA and analysis is a fact- intensive exercise.12 In analyzing any factors not presented in this request, petitioners are encouraged to look to the Department of Justice, as the agency charged with interpreting the language on which the statute relies for the meaning of an agent of a foreign This constitutes a Declaratory Ruling pursuant to General Statutes § 4-176. Declaratory Ruling has the same status and binding effect as an order issued in a contested case and shall be a final decision for purposes of appeal in accordance with the of General Statutes § 4-183, pursuant to General Statutes § 4-176 (h). Notice has been given to all persons who have requested notice of Declaratory Rulings on this subject matter.

Adopted thike" day of / 4- ,44, , 2026 at Hartford, by a vote of the 04Commission.

Stephen T. Penny, Chairperson By Order of the

Amending and Clarifying Foreign Agents Act Regulations 90 Fed. Reg. 40 (Jan. 2, 2025) (to 12be codified at 28 AC.F.R. pt 5).