Prohibited Contributions to Referendum Committees

Effective April 21, 2025, Public Chapter 506 (2025) went into effect. This Public Chapter prohibits a Referendum Committee from knowingly or willfully receiving, soliciting, or accepting contributions or expenditures, whether directly or indirectly, from foreign nationals, including: 1) individuals who are not citizens or lawful permanent residents of the U.S.; 2) a government, or subdivision, of a foreign country or municipality thereof; 3) a foreign political party; 4) any entity, sucha s a partnership, association, corporation, organization, or other combination of persons, that is organized under the laws of, or has its principal place of business in, a foreign country; or 4) A US entity that is wholly or partly owned by a foreign national, unless certain facts exist. 

Each referendum committee registered with the Registry must file a certification to the Registry confirming that no preliminary activity was funded by prohibited sources, whether directly or indirectly.  

When a political campaign committee created to support or oppose a measure receives a contribution, the treasurer shall obtain from the donor an affirmation that the donor is not a foreign national and has not knowingly or willfully accepted funds aggregating in excess of one hundred thousand dollars ($100,000) from prohibited sources within the four-year period immediately preceding the date the contribution is made.

Within forty-eight (48) hours of making an independent expenditure supporting or opposing a measure, the person making the expenditure must certify to the registry of election finance that the person has not knowingly or willfully accepted funds aggregating in excess of one hundred thousand dollars ($100,000) from prohibitedsources within the four-year period immediately preceding the date the expenditure ismade and that it will not do so through the remainder of the calendar year in which themeasure will appear on the ballot.

A political campaign committee created to support or oppose a measure, and a person who makes an independent expenditure in support of or in opposition to a political campaign committee created to support or oppose a measure, shall keep records of any contribution or expenditure and retain such records for at least two (2)years after the date of the election to which the records refer.

A foreign national shall not direct, dictate, control, or directly or indirectly participate in the decision-making process of any person with regard to that person's activities to influence a measure, such as decisions concerning the making of contributions or expenditures to influence a measure. A foreign national shall not solicit, directly or indirectly, the making of adonation, contribution, or expenditure by another person to influence a measure.

For more information on the application and enforcement of this Public Chapter, please contact William Young at william.young@tn.gov.