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104TH CONGRESS

1ST SESSION H. R. 2686

To provide for additional lobbying reform measures.

IN THE HOUSE OF REPRESENTATIVES

NOVEMBER 29, 1995

Mr. FRANK of Massachusetts (for himself, Mr. SHAYS, Mr. BRYANT of Texas,

Mr. TRAFICANT, Mr. SAWYER, Mr. BROWN of Ohio, and Ms. KAPTUR)

introduced the following bill; which was referred to the Committee on the

Judiciary

A BILL

To provide for additional lobbying reform measures.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION. 1. BAN ON TRADE OFFICIAL REPRESENTING OR

4 ADVISING FOREIGN ENTITIES.

5 (a) REPRESENTING AFTER SERVICE.—Section

6 207(f)(2) of title 18, United States Code, is amended by—

7 (1) inserting ‘‘, Deputy United States Trade

8 Representative, Secretary of Commerce, or Commis9 sioner of the International Trade Commission’’ after

10 ‘‘is the United States Trade Representative’’; and
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1 (2) striking ‘‘within 3 years’’ and inserting ‘‘at

2 any time’’.

3 (b) LIMITATION ON APPOINTMENTS.—Section 141(b)

4 of the Trade Act of 1974 (19 U.S.C. 2171(b)) is amended

5 by adding at the end the following new paragraph:

6 ‘‘(3) LIMITATION ON APPOINTMENTS.—A per7 son who has directly represented, aided, or advised

8 a foreign entity (as defined by section 207(f)(3) of

9 title 18, United States Code) in any trade negotia10 tion, or trade dispute, with the United States may

11 not be appointed as United States Trade Represent12 ative, Deputy United States Trade Representative,

13 Secretary of Commerce, or Commissioner of the

14 International Trade Commission.’’.

15 (c) EFFECTIVE DATE.—The amendments made by

16 this section shall apply with respect to an individual ap17 pointed as United States Trade Representative, Deputy

18 United States Trade Representative, Secretary of Com19 merce, or Commissioner of the International Trade Com20 mission on or after the date of enactment of this Act.

21 SEC. 2. LIMITATION ON REPRESENTING OR ADVISING CER22 TAIN FOREIGN ENTITIES.

23 (a) AMENDMENT.—Section 207(f) of title 18, United

24 States Code, is amended to read as follows:
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1 ‘‘(f) RESTRICTIONS RELATING TO FOREIGN ENTI2 TIES.—

3 ‘‘(1) PERMANENT RESTRICTION.—Any person

4 who is an officer or employee described in paragraph

5 (3) and who, after the termination of his or her

6 service or employment as such officer or employee,

7 knowingly acts as an agent or attorney for or other8 wise represents or advises, for compensation, a gov9 ernment of a foreign country or a foreign political

10 party, if the representation or advice relates directly

11 to a matter in which the United States is a party

12 or has a direct and substantial interest, shall be

13 punished as provided in section 216 of this title.

14 ‘‘(2) FIVE-YEAR RESTRICTION.—Any person

15 who is an officer or employee described in paragraph

16 (3) and who, within 5 years after the termination of

17 his or her service or employment as such officer or

18 employee, knowingly acts as an agent or attorney for

19 or otherwise represents or advises, for compensa20 tion—

21 ‘‘(A) a person outside of the United States,

22 unless such person—

23 ‘‘(i) if an individual, is a citizen of

24 and domiciled within the United States, or
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1 ‘‘(ii) if not an individual, is organized

2 under or created by the laws of the United

3 States or of any State or other place sub4 ject to the jurisdiction of the United States

5 and has its principal place of business

6 within the United States, or

7 ‘‘(B) a partnership, association, corpora8 tion, organization, or other combination of per9 sons organized under the laws of or having its

10 principal place of business in a foreign country,

11 if the representation or advice relates directly to a

12 matter in which the United States is a party or has

13 a direct and substantial interest, shall be punished

14 as provided in section 216 of this title.

15 ‘‘(3) PERSONS TO WHOM RESTRICTIONS

16 APPLY.—The officers and employees referred to in

17 paragraphs (1) and (2) to whom the restrictions

18 contained in such paragraphs apply are—

19 ‘‘(A) the President of the United States;

20 and

21 ‘‘(B) any person subject to the restrictions

22 contained in subsection (c), (d), or (e).

23 ‘‘(4) DEFINITIONS.—For purposes of this sub24 section—
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1 ‘‘(A) the term ‘compensation’ means any

2 payment, gift, benefit, reward, favor, or gratu3 ity which is provided, directly or indirectly, for

4 services rendered;

5 ‘‘(B) the term ‘government of a foreign

6 country’ has the meaning given that term in

7 section 1(e) of the Foreign Agents Registration

8 Act of 1938, as amended;

9 ‘‘(C) the term ‘foreign political party’ has

10 the meaning given that term in section 1(f) of

11 the Foreign Agents Registration Act of 1938,

12 as amended;

13 ‘‘(D) the term ‘United States’ means the

14 several States, the District of Columbia, and

15 any commonwealth, territory, or possession of

16 the United States; and

17 ‘‘(E) the term ‘State’ includes the District

18 of Columbia and any commonwealth, territory,

19 or possession of the United States.’’.

20 (b) EFFECTIVE DATE.—

21 (1) IN GENERAL.—Subject to paragraph (2),

22 the amendment made by subsection (a) take effect

23 on January 1, 1996.

24 (2) EFFECT ON EMPLOYMENT.—
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1 (A) The amendment made by subsection

2 (a) does not, except as provided in subpara3 graph (B), apply to a person whose service as

4 an officer or employee to which such amend5 ment apply terminated before the effective date

6 of such amendment.

7 (B) Subparagraph (A) does not preclude

8 the application of the amendment made by sub9 section (a) to a person with respect to service

10 as an officer or employee by that person on or

11 after the effective date of such amendment.

12 SEC. 3. AMENDMENTS TO THE FOREIGN AGENTS REG13 ISTRATION ACT.

14 (a) DEFINITIONS.—

15 (1) AGENT OF A FOREIGN PRINCIPAL.—

16 (A) IN GENERAL.—Section 1(c) of the

17 Foreign Agents Registration Act of 1938, as

18 amended (22 U.S.C. 611(c)), is amended—

19 (i) by striking ‘‘agent of a foreign

20 principal’’ each place it appears and insert21 ing ‘‘representative of a foreign principal’’;

22 (ii) in paragraph (1)(iv), by striking

23 ‘‘and’’ after the semicolon at the end;
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1 (iii) in paragraph (2), by striking the

2 period at the end and inserting ‘‘; and’’;

3 and

4 (iv) by adding at the end the follow5 ing:

6 ‘‘(3) any person who engages in political activi7 ties for purposes of furthering commercial, indus8 trial, or financial operations with a foreign principal.

9 For purposes of clause (1), a foreign principal shall be

10 considered to control a person in major part if the foreign

11 principal holds more than 50 percent equitable ownership

12 in such person or, subject to rebuttal evidence, if the for13 eign principal holds at least 20 percent but not more than

14 50 percent equitable ownership in such person.’’.

15 (B) FURTHER DEFINITION.—Section 1(d)

16 of that Act (22 U.S.C. 611(d)) is amended to

17 read as follows:

18 ‘‘(d) The term ‘representative of a foreign principal’

19 does not include—

20 ‘‘(1) any news or press service or association

21 organized under the laws of the United States or of

22 any State or other place subject to the jurisdiction

23 of the United States, or any newspaper, magazine,

24 periodical, or other publication for which there is on

25 file with the United States Postal Service informa-
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1 tion in compliance with section 3685 of title 39,

2 United States Code, published in the United States,

3 solely by virtue of any bona fide news or journalistic

4 activities, including the solicitation or acceptance of

5 advertisements, subscriptions, or other compensation

6 therefor, so long as it is at least 80 percent bene7 ficially owned by, and its officers and directors, if

8 any, are citizens of the United States, and such

9 news or press service or association, newspaper mag10 azine, periodical, or other publication, is not owned,

11 directed, supervised, controlled, subsidized, or fi12 nanced, and none of its policies are determined by

13 any foreign principal defined in subsection (b) of

14 this section, or by any representative of a foreign

15 principal required to register under this Act; or

16 ‘‘(2) any incorporated, nonprofit membership

17 organization organized under the laws of the United

18 States or of any State or other place subject to the

19 jurisdiction of the United States that is registered

20 under section 308 of the Federal Regulation of Lob21 bying Act and has obtained tax-exempt status under

22 section 501(c) of the Internal Revenue Code of 1986

23 and whose activities are directly supervised, directed,

24 controlled, financed, or subsidized in whole by citi25 zens of the United States.’’.
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1 (2) POLITICAL PROMOTIONAL OR INFORMA2 TIONAL MATERIALS.—Section 1(j) of that Act (22

3 U.S.C. 611(j)) is amended—

4 (A) in the matter preceding clause (1), by

5 striking ‘‘propaganda’’ and inserting ‘‘pro6 motional or informational materials’’; and

7 (B) in clause (1), by striking ‘‘prevail

8 upon, indoctrinate, convert, induce, or in any

9 other way’’ and inserting ‘‘in any way’’.

10 (3) POLITICAL ACTIVITIES.—Section 1(o) of

11 that Act (22 U.S.C. 611(o)) is amended—

12 (A) by striking ‘‘prevail upon, indoctrinate,

13 convert, induce, persuade, or in any other way’’

14 and inserting ‘‘in any way’’; and

15 (B) by striking ‘‘or changing the domestic

16 or foreign’’ and inserting ‘‘enforcing, or chang17 ing the domestic or foreign laws, regulations,

18 or’’.

19 (4) POLITICAL CONSULTANT.—Section 1(p) of

20 that Act (22 U.S.C. 611(p)) is amended—

21 (A) by inserting ‘‘(1)’’ after ‘‘any person’’;

22 and

23 (B) by inserting before the semicolon at

24 the end the following: ‘‘, or (2) who distributes

25 political promotional or informational materials
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1 to an officer or employee of the United States

2 Government, in his or her capacity as such offi3 cer or employee’’.

4 (b) SUPPLEMENTAL REGISTRATION.—Section 2(b) of

5 that Act (22 U.S.C. 612(b)) is amended—

6 (1) in the first sentence by striking ‘‘, within

7 thirty days’’ and all that follows through ‘‘preceding

8 six months’ period’’ and inserting ‘‘on January 31

9 and July 31 of each year file with the Attorney Gen10 eral a supplement thereto under oath, on a form

11 prescribed by the Attorney General, which shall set

12 forth regarding the six-month periods ending the

13 previous December 31, and June 30, respectively, or,

14 if a lesser period, the period since the initial filing,’’;

15 and

16 (2) by inserting after the first sentence the fol17 lowing new sentence: ‘‘Any registrant using an ac18 counting system with a fiscal year which is different

19 from the calendar year may petition the Attorney

20 General to permit the filing of supplemental state21 ments at the close of the first and seventh month of

22 each such fiscal year in lieu of the dates specified by

23 the preceding sentence.’’.
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1 (c) REMOVAL OF EXEMPTION FOR CERTAIN COUN2 TRIES.—Section 3(f) of that Act (22 U.S.C. 613(f)) is re3 pealed.

4 (d) LIMITING EXEMPTION FOR LEGAL REPRESENTA5 TION.—Section 3(g) of that Act (22 U.S.C. 613(g)) is

6 amended by striking ‘‘or any agency of the Government

7 of the United States’’ and all that follows through ‘‘infor8 mal’’ and inserting ‘‘or before the Patent and Trademark

9 Office, including any written submission to that Office’’.

10 (e) NOTIFICATION OF RELIANCE ON EXEMPTIONS.—

11 Section 3 of that Act (22 U.S.C. 613) is amended by add12 ing at the end the following:

13 ‘‘Any person who does not register under section 2(a)

14 on account of any provision of subsections (a) through (g)

15 of this section shall so notify the Attorney General in such

16 form and manner as the Attorney General prescribes.’’.

17 (f) CIVIL PENALTIES AND ENFORCEMENT PROVI18 SIONS.—Section 8 of that Act (22 U.S.C. 618) is amended

19 by adding at the end the following:

20 ‘‘(i)(1) Any person who is determined, after notice

21 and opportunity for an administrative hearing—

22 ‘‘(A) to have failed to file when such filing is

23 required a registration statement under section 2(a)

24 or a supplement thereto under section 2(b),
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1 ‘‘(B) to have omitted a material fact required to

2 be stated therein, or

3 ‘‘(C) to have made a false statement with re4 spect to such a material fact,

5 shall be required to pay for each violation committed a

6 civil penalty of not less than $2,000 and not more than

7 $1,000,000. In determining the amount of the penalty, the

8 Attorney General shall give due consideration to the na9 ture and duration of the violation.

10 ‘‘(2)(A) Whenever the Attorney General has reason

11 to believe that any person may be in possession, custody,

12 or control of any documentary material relevant to an in13 vestigation regarding any violation of paragraph (1) of

14 this subsection or of section 5, the Attorney General may,

15 before bringing any civil or criminal proceeding thereon,

16 issue in writing, and cause to be served upon such person,

17 a civil investigative demand requiring such person to

18 produce such material for examination.

19 ‘‘(B) Civil investigative demands issued under this

20 paragraph shall be subject to the applicable provisions of

21 section 1968 of title 18, United States Code.’’.

22 (g) CHANGE IN SHORT TITLE OF THE ACT.—Section

23 14 of that Act (22 U.S.C. 611 note) is amended by strik24 ing ‘‘Foreign Agents Registration Act of 1938, as amend25 ed’’ and inserting ‘‘Foreign Interests Representation Act’’.
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1 (h) REFERENCES TO AGENT OF A FOREIGN PRIN2 CIPAL.—The Foreign Agents Registration Act of 1938, as

3 amended is amended—

4 (1) by striking ‘‘agent of a foreign principal’’

5 each place it appears and inserting ‘‘representative

6 of a foreign principal’’;

7 (2) by striking ‘‘agents of foreign principals’’

8 each place it appears and inserting ‘‘representatives

9 of foreign principals’’;

10 (3) by striking ‘‘agent of such principal’’ each

11 place it appears and inserting ‘‘representative of

12 such principal’’; and

13 (4) by striking ‘‘such agent’’ each place it ap14 pears and inserting ‘‘such representative’’.

15 (i) REFERENCES TO POLITICAL PROPAGANDA.—

16 (1) The paragraph preceding section 1 of the

17 Foreign Agents Registration Act of 1938, as amend18 ed is amended by striking ‘‘propaganda’’ and insert19 ing ‘‘political’’.

20 (2) The Foreign Interests Representation Act

21 (other than the paragraph amended by paragraph

22 (1) of this subsection) is amended by striking ‘‘prop23 aganda’’ each place it appears and inserting ‘‘pro24 motional or informational materials’’.

25 (j) REFERENCES TO THE ACT.—
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1 (1) Section 207(f)(2) of title 18, United States

2 Code, is amended by striking ‘‘Foreign Agents Reg3 istration Act of 1938, as amended,’’ and inserting

4 ‘‘Foreign Interests Representation Act’’.

5 (2) Section 219 of title 18, United States Code,

6 is amended—

7 (A) in subsection (a) by striking ‘‘agent of

8 a foreign principal required to register under

9 the Foreign Agents Registration Act of 1938,

10 as amended,’’ and inserting ‘‘representative of a

11 foreign principal required to register under the

12 Foreign Interests Representation Act’’; and

13 (B) in subsection (b)—

14 (i) by striking ‘‘agent of a foreign

15 principal’’ and inserting ‘‘representative of

16 a foreign principal’’;

17 (ii) by striking ‘‘such agent’’ and in18 serting ‘‘such representative’’; and

19 (iii) by striking ‘‘Foreign Agents Reg20 istration Act of 1938, as amended’’ and in21 serting ‘‘Foreign Interests Representation

22 Act’’.

23 (3) Section 5210(4) of the Competitiveness Pol24 icy Council Act (15 U.S.C. 4809(4)) is amended—
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1 (A) by striking ‘‘agent of a foreign prin2 cipal’’ and inserting ‘‘representative of a foreign

3 principal’’; and

4 (B) by striking ‘‘subsection (d) of the first

5 section of the Foreign Agents Registration Act

6 of 1938 (22 U.S.C. 611)’’ and inserting ‘‘sec7 tion 1(d) of the Foreign Interests Representa8 tion Act (22 U.S.C. 611(d)),’’.

9 (4) Section 34(a) of the Trading With the

10 Enemy Act (50 U.S.C. App. 34(a)) is amended by

11 striking ‘‘Act of June 8, 1934 (ch. 327, 52 Stat.

12 631), as amended’’ and inserting ‘‘Foreign Interests

13 Representation Act’’.

14 SEC. 4. MISUSE OF NAME.

15 (a) AMENDMENT.—Chapter 47 of title 18, United

16 States Code, is amended by adding at the end the follow17 ing:

18 ‘‘§ 1035. Misappropriation of Person’s Name in Con19 nection with Lobbying Contact

20 ‘‘Whoever falsely uses or employs the name of any

21 person, or causes such name to be falsely used or em22 ployed, in any telegram, letter, other printed or written

23 matter, or electronic communication intended or designed

24 to influence in any manner a Member of Congress to favor

25 or oppose, by vote or otherwise, any legislation before the
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1 Congress or any nomination pending before the Senate,

2 whether before or after the introduction of such legislation

3 or the submission of such nomination, for the purpose of

4 conveying the impression that such person authorized such

5 use or employment of the person’s name shall be fined

6 under this title or imprisoned for not more than one year,

7 or both.’’.

8 (b) CONFORMING AMENDMENT.—The table of sec9 tions for such chapter 47 is amended by adding at the

10 end the following:

‘‘1035. Misappropriation of person’s name in connection with lobbying contact.’’.

11 SEC. 5. DISCLOSURES OF VISITS TO MEMBERS AND SEN12 ATORS.

13 (a) IN GENERAL.—The Clerk of the House of Rep14 resentatives and the Secretary of the Senate shall jointly

15 establish a registry to record visits to Members of the

16 House of Representatives and Senators by lobbyists reg17 istered under any Federal law which requires lobbyists to

18 register. Such lobbyists shall record each such visit, in19 cluding the date of the visit and the subject of the visit.

20 The registry shall be open to the public.

21 (b) EFFECTIVE DATE.—Subsection (a) shall take ef22 fect January 1, 1996.

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