I
104TH CONGRESS
1ST SESSION
H. R. 2499
To amend the Federal Election Campaign Act of 1971 to prohibit contribu-
tions and expenditures by multicandidate political committees controlled
by foreign-owned corporations, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 18, 1995
Ms. KAPTUR introduced the following bill; which was referred to the Commit-
tee on House Oversight, and in addition to the Committee on the Judici-
ary, for a period to be subsequently determined by the Speaker, in each
case for consideration of such provisions as fall within the jurisdiction of
the committee concerned
A BILL
To amend the Federal Election Campaign Act of 1971 to
prohibit 
contributions 
and 
expenditures 
by
multicandidate political committees controlled by foreign-
owned corporations, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Ethics in For-
eign Lobbying Act of 1995’’.
SEC. 2. PROHIBITION OF CONTRIBUTIONS AND EXPENDI-
TURES 
BY 
MULTICANDIDATE 
POLITICAL
COMMITTEES OR SEPARATE SEGREGATED
FUNDS 
SPONSORED 
BY 
FOREIGN-CON-
TROLLED 
CORPORATIONS 
AND 
ASSOCIA-
TIONS.
Title III of the Federal Election Campaign Act of
1971 (2 U.S.C. 441 et seq.) is amended by adding at the
end the following new section:
‘‘PROHIBITION OF CONTRIBUTIONS AND EXPENDITURES
BY MULTICANDIDATE POLITICAL COMMITTEES SPON-
SORED
BY
FOREIGN-CONTROLLED
CORPORATIONS
AND ASSOCIATIONS
‘‘SEC. 324. (a) Notwithstanding any other provision
of law—
‘‘(1) no multicandidate political committee or
separate segregated fund of a foreign-controlled cor-
poration may make any contribution or expenditure
with respect to an election for Federal office; and
‘‘(2) no multicandidate political committee or
separate segregated fund of a trade organization,
membership organization, cooperative, or corporation
without capital stock may make any contribution or
expenditure with respect to an election for Federal
office if 50 percent or more of the operating fund of
the trade organization, membership organization, co-
operative, or corporation without capital stock is
supplied by foreign-controlled corporations or foreign
nationals.
‘‘(b) The Commission shall—
‘‘(1) require each multicandidate political com-
mittee or separate segregated fund of a corporation
to include in the statement of organization of the
multicandidate political committee or separate seg-
regated fund a statement (to be updated annually
and at any time when the percentage goes above or
below 50 percent) of the percentage of ownership in-
terest in the corporation that is controlled by per-
sons other than citizens or nationals of the United
States;
‘‘(2) require each trade association, membership
organization, cooperative, or corporation without
capital stock to include in its statement of organiza-
tion of the multicandidate political committee or sep-
arate segregated fund (and update annually) the
percentage of its operating fund that is derived from
foreign-owned corporations and foreign nationals;
and
‘‘(3) take such action as may be necessary to
enforce subsection (a).
‘‘(c) The Commission shall maintain a list of the
identity of the multicandidate political committees or sepa-
rate segregated funds that file reports under subsection
(b), including a statement of the amounts and percentage
reported by such multicandidate political committees or
separate segregated funds.
‘‘(d) As used in this section—
‘‘(1) the term ‘foreign-owned corporation’
means a corporation at least 50 percent of the own-
ership interest of which is controlled by persons
other than citizens or nationals of the United States;
‘‘(2) the term ‘multicandidate political commit-
tee’ has the meaning given that term in section
315(a)(4);
‘‘(3) the term ‘separate segregated fund’ means
a separate segregated fund referred to in section
316(b)(2)(C); and
‘‘(4) the term ‘foreign national’ has the mean-
ing given that term in section 319.’’.
SEC. 3. PROHIBITION OF CERTAIN ELECTION-RELATED
ACTIVITIES OF FOREIGN NATIONALS.
Section 319 of the Federal Election Campaign Act
of 1971 (2 U.S.C. 441e) is amended by adding at the end
the following new subsection:
(3) The catalogue of public hearings, hear-
ings witnesses and witness affiliations as printed in
the Congressional Record.
(4) Existing public information disclosed pursu-
ant to House and Senate rules regarding honoraria,
the receipt of gifts, travel, earned and unearned in-
come, post-congressional employment, and conflict of
interest regulations.
(5) Existing public information disclosed pursu-
ant to the requirements of the Federal Election
Campaign Act of 1971 (2 U.S.C. 431 et seq.).
(b) Notwithstanding any other provision of law, the
disclosure by the clearinghouse of any information other
than that set forth in subsection (a) shall be prohibited
except by Act of Congress.
(c) A Director shall administer and manage the re-
sponsibilities and all activities of the clearinghouse.
(d) The Director shall be appointed by the Federal
Election Commission.
(e) The Director shall serve a single term not to ex-
ceed 5 years.
(f) There shall be authorized such sums as necessary
to conduct activities of the clearinghouse.
SEC. 5. DUTIES AND RESPONSIBILITIES OF THE DIRECTOR
OF THE CLEARINGHOUSE.
(a) IN GENERAL.—It shall be the duty of the
Director—
(1) to develop a filing, coding, and cross-index-
ing system to carry out the purposes of this Act
(which shall include an index of all persons identi-
fied in the reports, registrations, and other existing
public disclosures filed under this Act);
(2) notwithstanding any other provision of law,
to make copies of registrations, reports and public
disclosures filed with him under this Act available
for public inspection and copying, commencing as
soon as practicable, and to permit copying of any
such registration or report by hand or by copying
machine or, at the request of any person, to furnish
a copy of any such registration or report upon pay-
ment of the cost of making and furnishing such
copy; but no information contained in such registra-
tion or report shall be sold or utilized by any person
for the purpose of soliciting contributions or for any
profit-making purpose;
(3) to compile and summarize, for each cal-
endar quarter, the information contained in such
registrations, reports, and other existing public dis-
closures required by this Act in a manner which fa-
cilitates the disclosure of political activities, includ-
ing, but not limited to, information on—
(A) political activities pertaining to issues
before the Congress and issues before the exec-
utive branch; and
(B) the political activities of individuals,
organizations, foreign principals, and foreign
agents who share an economic, business, or
other common interest;
(4) to make the information compiled and sum-
marized under paragraph (3) available to the public
within 30 days after the close of each quarterly pe-
riod, and to publish such information in the Federal
Register at the earliest practicable opportunity;
(5) not later than 150 days after the date of
the enactment of this Act and at any time there-
after, to prescribe, in consultation with the Comp-
troller General of the United States, rules, regula-
tions, and forms, in conformity with the provisions
of chapter 5 of title 5, United States Code, as are
necessary to carry out the provisions of this Act in
the most effective and efficient manner;
(6) at the request of any Member of the Senate
or the House of Representatives, to prepare and
submit to such Member a special study or report re-
lating to the political activities of any person, such
report to consist solely of the information in the reg-
istrations, reports, and other publicly disclosed infor-
mation required in this Act;
(7) to require the accurate, timely, and com-
plete transfer of information required under section
1 of this Act to the clearinghouse; and
(8) to refer to the Comptroller General for in-
vestigation any instances where registrations, re-
ports, and political information required in section 1
of this Act are not forwarded to the clearinghouse
in an accurate, timely, and complete fashion.
(b) DEFINITIONS.—As used in this section—
(1) the term ‘‘issue before the Congress’’ means
the total of all matters, both substantive and proce-
dural, relating to (A) any pending or proposed bill,
resolution, report, nomination, treaty, hearing, inves-
tigation, or other similar matter in either the Senate
or the House of Representatives or any committee or
office of the Congress, or (B) any action or proposed
action by a Member, officer, or employee of the Con-
gress to affect, or attempt to affect, any action or
proposed action by any officer or employee of the ex-
ecutive branch; and
(2) the term ‘‘issue before the executive
branch’’ means the total of all matters, both sub-
stantive and procedural, relating to any action or
possible action by any executive agency, or by any
officer or employee of the executive branch, concern-
ing (A) any pending or proposed rule, rule of prac-
tice, adjudication, regulation, determination, hear-
ing, investigation, contract, grant, license, negotia-
tion, or the appointment of officers and employees,
other than appointments in the competitive service,
or (B) any issue before the Congress.
SEC. 6. AMENDMENTS TO THE FOREIGN AGENTS REG-
ISTRATION ACT OF 1938, AS AMENDED.
(a) Section 2(b) of the Foreign Agents Registration
Act of 1938, as amended, is amended in the first sentence
by striking out ‘‘, within thirty days’’ and all that follows
through ‘‘preceding six months’ period’’ and inserting in
lieu thereof ‘‘on January 31, April 30, July 31, and Octo-
ber 31 of each year, file with the Attorney General a sup-
plement thereto on a form prescribed by the Attorney Gen-
eral, which shall set forth regarding the three-month peri-
ods ending the previous December 31, March 31, June
30, and September 30, respectively, or if a lesser period,
the period since the initial filing,’’.
(b) Section 3(g) of the Foreign Agents Registration
Act of 1938, as amended, is amended by inserting after
‘‘whether formal or informal.’’ the following: ‘‘Notwith-
standing any other provision of law, persons covered by
this subsection shall be exempt only upon filing with the
Attorney General an affirmative request for exemption.’’.
(c) Section 8 of the Foreign Agents Registration Act
of 1938, as amended, is amended by adding at the end
thereof the following:
‘‘(i)(1) Any person who is determined, after notice
and opportunity for an administrative hearing—
‘‘(A) to have failed to file a registration state-
ment under section 2(a) or a supplement thereto
under section 2(b),
‘‘(B) to have omitted a material fact required to
be stated therein, or
‘‘(C) to have made a false statement with re-
spect to such a material fact,
shall be required to pay a civil penalty in an amount not
less than $2,000 or more than $5,000 for each violation
committed. In determining the amount of the penalty, the
Attorney General shall give due consideration to the na-
ture and duration of the violation.
‘‘(2)(A) In conducting investigations and hearings
under paragraph (1), administrative law judges may, if