On May 7, 2019, a federal District Court in the Southern District of Florida ruled that an American company, RM Broadcasting, must register as a foreign agent under the Foreign Agents Registration Act (“FARA”) for its agreement to broadcast radio programming from Rossiya Segodnya (meaning “Russia Today”), a Russian state-owned news agency. Although the decision
Appropriations Committee Directs New FARA Guidance on Commercial Exemption
The House Appropriations Committee has quietly directed the Department of Justice to issue new guidance on the commercial exemption to the Foreign Agents Registration Act (“FARA”) with respect to state-owned companies. The directive came in a Committee report accompanying legislation that provides funding for the Department for fiscal year 2020. The report was approved by
Congressional Investigations and the Rules of the 116th Congress
With Congress heavily engaged in launching and pursuing new congressional investigations, particularly since the Democratic takeover of the House of Representatives, many of our clients have questions regarding the rules that govern congressional investigations. While many aspects of congressional investigations are not subject to any rules at all, the House, Senate, and their respective committees
New Department of Justice FARA Opinion May Narrow the “LDA Exemption”
The Department of Justice’s FARA Unit appears to have signaled a significant narrowing in the scope of a major FARA exemption that is especially important to private sector companies, including U.S. subsidiaries of foreign corporations. The apparent narrowing of FARA’s exemption for those who register under the Lobbying Disclosure Act (“LDA”) appeared in an advisory
Congressional Investigations After the Midterm Elections
Brian Smith delivered the following remarks during Covington’s post-election conference call with clients on November 8, 2018.
“Restoring the Constitution’s checks and balances to the Trump administration.” That’s what Democratic leader Nancy Pelosi promised in her speech after the elections.
Congressional oversight and investigations thrive in divided government, and Democratic leaders are already promising a new wave of oversight.
While the press and pundits are mostly focused on the likely political investigations – access to the President’s tax returns or investigations of the Trump Organization’s business activities – the House’s investigative agenda is much broader, and it has direct implications for many of our clients.
For example, when we last had a Democratic House and a Republican President, in 2007 and 2008, Congress conducted large investigations of drug companies’ sales and marketing practices, technology companies’ sharing of customer data, and the financial industry’s corporate practices. A decade later, these three sectors – pharmaceutical, financial services, and technology – remain prime targets for congressional scrutiny, along with energy, government contractors, and most other highly regulated industries.
Moreover, a lot has changed in the last decade to increase the congressional investigations risks.
First, more committees now possess dedicated and experienced oversight staff than ever before, and several committees have dedicated oversight and investigations subcommittees. We expect oversight activities from all the major committees next year.
Second, in recent years, several committees have modified their rules to give the chairmen unilateral authority to issue subpoenas – a practice that we expect to continue next year. Even though many investigations do not result in subpoenas, the potent threat of a subpoena – issued without committee vote or sometimes even notice – makes it much harder for companies to resist congressional demands.
Third, congressional investigations, which always ebb and flow depending on the political environment, have become much more consistent and a mainstay of today’s legislative process.
That trend has been driven, in part, by legislative gridlock, as Members turn to oversight and investigations as a way to affect policy, and private sector practices, that they cannot reach through legislation. With the Senate remaining in Republican control, House Members will have a greater incentive to pursue policy goals through investigations.
In predicting next year’s investigations, history is often a good guide.Continue Reading Congressional Investigations After the Midterm Elections
Are You Ready For Your Congressional Investigation?
If the current polls and predictions are accurate, the Democratic party is poised to take control of the House of Representatives next year, for the first time since 2010. Congressional investigations thrive in divided government, and Democratic leaders in Congress are already promising a new wave of investigations.
My new article in Law360 examines the
New Wave of Trade Lobbying Presents FARA Registration Concerns
Washington is awash with lobbyists seeking to address new steel and aluminum tariffs, and other potential tariffs, on behalf of both foreign and domestic clients. Lobbying on trade issues in some circumstances may trigger Foreign Agents Registration Act (“FARA”) obligations. The connection between trade lobbying and FARA was the subject of close scrutiny several decades
The Foreign Agents Registration Act (“FARA”): A Guide for the Perplexed
Eighty years ago, Congress enacted the Foreign Agents Registration Act (“FARA”), requiring “foreign agents” to register with the Attorney General. As amended over the years, it applies broadly to anyone who acts on behalf of a “foreign principal” to, among other things, influence U.S. policy or public opinion. Until recently, it was a backwater of
House of Representatives Seeks to Strengthen Subpoena Enforcement Dramatically
In late October, the House of Representatives quietly approved a bill that would dramatically strengthen Congress’s procedures for enforcing congressional subpoenas. In adopting the bill, the bipartisan leadership of the House Judiciary Committee highlighted the challenges that Congress faces in obtaining materials from executive branch agencies. Significant portions of the bill, however, apply to all
Grassley Legislation Would (Re)Impose FARA Obligations on Private Sector Entities
With the Foreign Agents Registration Act in the news and public awareness of this formerly obscure statute at an all-time high, Senator Charles Grassley (R-Iowa) introduced legislation last week to revise the statute significantly, including reversing a decision Congress made in 1995 to remove most private sector reporting from FARA and place it instead under