[Congressional Record Volume 163, Number 176 (Tuesday, October 31, 2017)]
[Senate]
[Pages S6925-S6929]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. DURBIN (for himself, Mr. Reed, Mr. Blumenthal, Mr. Murphy, 
        Ms. Warren, and Mr. Carper):
  S. 2037. A bill to amend the Higher Education Act of 1965 regarding 
proprietary institutions of higher education in order to protect 
students and taxpayers; to the Committee on Health, Education, Labor, 
and Pensions.
  Mr. DURBIN. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2037

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Protecting Our Students and 
     Taxpayers Act of 2017'' or ``POST Act of 2017''.

     SEC. 2. 85/15 RULE.

       (a) In General.--Section 102(b) of the Higher Education Act 
     of 1965 (20 U.S.C. 1002(b)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (D), by striking ``and'' after the 
     semicolon;
       (B) in subparagraph (E), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(F) meets the requirements of paragraph (2).'';
       (2) by redesignating paragraph (2) as paragraph (3); and
       (3) by inserting after paragraph (1) the following:
       ``(2) Revenue sources.--
       ``(A) In general.--In order to qualify as a proprietary 
     institution of higher education under this subsection, an 
     institution shall derive not less than 15 percent of the 
     institution's revenues from sources other than Federal funds, 
     as calculated in accordance with subparagraphs (B) and (C).
       ``(B) Federal funds.--In this paragraph, the term `Federal 
     funds' means any Federal financial assistance provided, under 
     this Act or any other Federal law, through a grant, contract, 
     subsidy, loan, guarantee, insurance, or other means to a 
     proprietary institution, including Federal financial 
     assistance that is disbursed or delivered to an institution 
     or on behalf of a student or to a student to be used to 
     attend the institution, except that such term shall not 
     include any monthly housing stipend provided under the Post-
     9/11 Veterans Educational Assistance Program under chapter 33 
     of title 38, United States Code.
       ``(C) Implementation of non-federal revenue requirement.--
     In making calculations under subparagraph (A), an institution 
     of higher education shall--
       ``(i) use the cash basis of accounting;
       ``(ii) consider as revenue only those funds generated by 
     the institution from--

       ``(I) tuition, fees, and other institutional charges for 
     students enrolled in programs eligible for assistance under 
     title IV;
       ``(II) activities conducted by the institution that are 
     necessary for the education and training of the institution's 
     students, if such activities are--

       ``(aa) conducted on campus or at a facility under the 
     control of the institution;
       ``(bb) performed under the supervision of a member of the 
     institution's faculty; and
       ``(cc) required to be performed by all students in a 
     specific educational program at the institution; and

       ``(III) a contractual arrangement with a Federal agency for 
     the purpose of providing job training to low-income 
     individuals who are in need of such training;

       ``(iii) presume that any Federal funds that are disbursed 
     or delivered to an institution on behalf of a student or 
     directly to a student will be used to pay the student's 
     tuition, fees, or other institutional charges, regardless of 
     whether the institution credits such funds to the student's 
     account or pays such funds directly to the student, except to 
     the extent that the student's tuition, fees, or other 
     institutional charges are satisfied by--

       ``(I) grant funds provided by an outside source that--

       ``(aa) has no affiliation with the institution; and
       ``(bb) shares no employees with the institution; and

       ``(II) institutional scholarships described in clause (v);

       ``(iv) include no loans made by an institution of higher 
     education as revenue to the school, except for payments made 
     by students on such loans;
       ``(v) include a scholarship provided by the institution--

       ``(I) only if the scholarship is in the form of monetary 
     aid based upon the academic achievements or financial need of 
     students, disbursed to qualified student recipients during 
     each fiscal year from an established restricted account; and
       ``(II) only to the extent that funds in that account 
     represent designated funds, or income earned on such funds, 
     from an outside source that--

       ``(aa) has no affiliation with the institution; and
       ``(bb) shares no employees with the institution; and
       ``(vi) exclude from revenues--

       ``(I) the amount of funds the institution received under 
     part C of title IV, unless the institution used those funds 
     to pay a student's institutional charges;
       ``(II) the amount of funds the institution received under 
     subpart 4 of part A of title IV;
       ``(III) the amount of funds provided by the institution as 
     matching funds for any Federal program;
       ``(IV) the amount of Federal funds provided to the 
     institution to pay institutional charges for a student that 
     were refunded or returned; and
       ``(V) the amount charged for books, supplies, and 
     equipment, unless the institution includes that amount as 
     tuition, fees, or other institutional charges.

       ``(D) Report to congress.--Not later than July 1, 2018, and 
     by July 1 of each succeeding year, the Secretary shall submit 
     to the authorizing committees a report that contains, for 
     each proprietary institution of higher education that 
     receives assistance under title IV and as provided in the 
     audited financial statements submitted to the Secretary by 
     each institution pursuant to the requirements of section 
     487(c)--
       ``(i) the amount and percentage of such institution's 
     revenues received from Federal funds; and
       ``(ii) the amount and percentage of such institution's 
     revenues received from other sources.''.
       (b) Repeal of Existing Requirements.--Section 487 of the 
     Higher Education Act of 1965 (20 U.S.C. 1094) is amended--
       (1) in subsection (a)--
       (A) by striking paragraph (24);
       (B) by redesignating paragraphs (25) through (29) as 
     paragraphs (24) through (28), respectively;
       (C) in paragraph (24)(A)(ii) (as redesignated by 
     subparagraph (B)), by striking ``subsection (e)'' and 
     inserting ``subsection (d)''; and
       (D) in paragraph (26) (as redesignated by subparagraph 
     (B)), by striking ``subsection (h)'' and inserting 
     ``subsection (g)'';
       (2) by striking subsection (d);
       (3) by redesignating subsections (e) through (j) as 
     subsections (d) through (i), respectively;
       (4) in subsection (f)(1) (as redesignated by paragraph 
     (3)), by striking ``subsection (e)(2)'' and inserting 
     ``subsection (d)(2)''; and
       (5) in subsection (g)(1) (as redesignated by paragraph 
     (3)), by striking ``subsection (a)(27)'' in the matter 
     preceding subparagraph (A) and inserting ``subsection 
     (a)(26)''.
       (c) Conforming Amendments.--The Higher Education Act of 
     1965 (20 U.S.C. 1001 et seq.) is amended--
       (1) in section 152 (20 U.S.C. 1019a)--
       (A) in subsection (a)(1)(A), by striking ``subsections 
     (a)(27) and (h) of section 487'' and inserting ``subsections 
     (a)(26) and (g) of section 487''; and
       (B) in subsection (b)(1)(B)(i)(I), by striking ``section 
     487(e)'' and inserting ``section 487(d)'';
       (2) in section 153(c)(3) (20 U.S.C. 1019b(c)(3)), by 
     striking ``section 487(a)(25)'' each place the term appears 
     and inserting ``section 487(a)(24)'';
       (3) in section 496(c)(3)(A) (20 U.S.C. 1099b(c)(3)(A)), by 
     striking ``section 487(f)'' and inserting ``section 487(e)''; 
     and
       (4) in section 498(k)(1) (20 U.S.C. 1099c(k)(1)), by 
     striking ``section 487(f)'' and inserting ``section 487(e)''.
                                 ______
                                 
      By Mr. GRASSLEY:
  S. 2039. A bill to amend the Foreign Agents Registration Act of 1938 
to promote greater transparency in the registration of persons serving 
as the agents of foreign principals, to provide the Attorney General 
with greater authority to investigate alleged violations of such Act 
and bring criminal and civil actions against persons who commit such 
violations, and for other purposes; to the Committee on Foreign 
Relations.

[[Page S6926]]

  

  Mr. GRASSLEY. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2039

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Disclosing Foreign Influence 
     Act''.

     SEC. 2. REPEALING EXEMPTION FROM REGISTRATION UNDER FOREIGN 
                   AGENTS REGISTRATION ACT OF 1938 FOR PERSONS 
                   FILING DISCLOSURE REPORTS UNDER LOBBYING 
                   DISCLOSURE ACT OF 1995.

       (a) Repeal of Exemption.--Section 3 of the Foreign Agents 
     Registration Act of 1938 (22 U.S.C. 613) is amended by 
     striking subsection (h).
       (b) Timing of Filing of Registration Statements.--Section 2 
     of the Foreign Agents Registration Act of 1938 (22 U.S.C. 
     612) is amended--
       (1) in subsection (a), in the matter preceding paragraph 
     (1), in the fourth sentence, by striking ``The registration 
     statement shall include'' and inserting ``Except as provided 
     in subsection (h), the registration statement shall 
     include''; and
       (2) by adding at the end the following:
       ``(h) Timing for Filing of Statements by Persons Registered 
     Under Lobbying Disclosure Act of 1995.--In the case of an 
     agent of a person described in section 1(b)(2) or an entity 
     described in section 1(b)(3) who has registered under the 
     Lobbying Disclosure Act of 1995 (2 U.S.C. 1601 et seq.), 
     after the agent files the first registration required under 
     subsection (a) in connection with the agent's representation 
     of such person or entity, the agent shall file all subsequent 
     statements required under this section at the same time, and 
     in the same frequency, as the reports filed with the Clerk of 
     the House of Representatives or the Secretary of the Senate 
     (as the case may be) under section 5 of the Lobbying 
     Disclosure Act of 1995 (2 U.S.C. 1604) in connection with the 
     agent's representation of such person or entity.''.

     SEC. 3. PROMOTING ENFORCEMENT OF REGISTRATION REQUIREMENTS 
                   FOR FOREIGN AGENTS BY AUTHORIZING ATTORNEY 
                   GENERAL TO ISSUE CIVIL INVESTIGATIVE DEMANDS.

       The Foreign Agents Registration Act of 1938 (22 U.S.C. 611 
     et seq.) is amended by adding at the end the following:

     ``SEC. 12. CIVIL INVESTIGATIVE DEMANDS.

       ``(a) Authority of Attorney General.--
       ``(1) Authority described.--Whenever the Attorney General 
     or the Attorney General's designee has reason to believe that 
     any person may be in possession, custody, or control of any 
     documentary material, or may have any information, relevant 
     to an investigation under this Act, the Attorney General or 
     designee may, prior to the institution of a civil or criminal 
     proceeding by the United States thereon, issue in writing, 
     and cause to be served upon such person, a civil 
     investigative demand requiring such person to produce such 
     documentary material for inspection and copying or 
     reproduction, to answer in writing written interrogatories 
     with respect to such documentary material or information, to 
     give oral testimony concerning such documentary material or 
     information, or to furnish any combination of such material, 
     answers, or testimony. Whenever a civil investigative demand 
     is an express demand for any product of discovery, the 
     Attorney General or designee shall cause to be served, in any 
     manner authorized by this section, a copy of such demand upon 
     the person from whom the discovery was obtained and notify 
     the person to whom such demand is issued of the date on which 
     such copy was served.
       ``(2) Limiting individuals who may serve as designees.--The 
     Attorney General may not designate any individual other than 
     the Assistant Attorney General for National Security or a 
     Deputy Attorney General to carry out the authority provided 
     under this section.
       ``(b) Contents and Deadlines.--
       ``(1) In general.--Each demand issued under subsection (a) 
     shall--
       ``(A) state the nature of the conduct constituting the 
     alleged violation of this Act which is under investigation 
     and the provision of this Act alleged to be violated;
       ``(B) if such demand is for the production of documentary 
     material--
       ``(i) describe each class of documentary material to be 
     produced with such definiteness and certainty as to permit 
     such material to be fairly identified;
       ``(ii) prescribe a return date for each such class which 
     will provide a reasonable period of time within which the 
     material so demanded may be assembled and made available for 
     inspection and copying or reproduction; and
       ``(iii) identify the custodian to whom such material shall 
     be made available;
       ``(C) if such demand is for answers to written 
     interrogatories--
       ``(i) set forth with specificity the written 
     interrogatories to be answered;
       ``(ii) prescribe dates at which time answers to written 
     interrogatories shall be submitted; and
       ``(iii) identify the custodian to whom such answers shall 
     be submitted; and
       ``(D) if such demand is for the giving of oral testimony--
       ``(i) prescribe a date, time, and place at which oral 
     testimony shall be commenced;
       ``(ii) identify an investigator who shall conduct the 
     examination and the custodian to whom the transcript of such 
     examination shall be submitted;
       ``(iii) specify that such attendance and testimony are 
     necessary to the conduct of the investigation;
       ``(iv) notify the person receiving the demand of the right 
     to be accompanied by an attorney and any other 
     representative; and
       ``(v) describe the general purpose for which the demand is 
     being issued and the general nature of the testimony, 
     including the primary areas of inquiry, which will be taken 
     pursuant to the demand.
       ``(2) Product of discovery.--Any civil investigative demand 
     issued under this section which is an express demand for any 
     product of discovery shall not be returned or returnable 
     until 20 days after a copy of such demand has been served 
     upon the person from whom the discovery was obtained.
       ``(3) Date.--The date prescribed for the commencement of 
     oral testimony pursuant to a civil investigative demand 
     issued under subsection (a) shall be a date which is not less 
     than 7 days after the date on which demand is received, 
     unless the Attorney General or the Attorney General's 
     designee determines that exceptional circumstances are 
     present which warrant the commencement of such testimony 
     within a lesser period of time.
       ``(4) Notification.--The Attorney General shall not 
     authorize the issuance under this section of more than one 
     civil investigative demand for oral testimony by the same 
     person unless the person requests otherwise or unless the 
     Attorney General, after investigation, notifies that person 
     in writing that an additional demand for oral testimony is 
     necessary.
       ``(c) Protected Material or Information.--
       ``(1) In general.--A civil investigative demand issued 
     under subsection (a) may not require the production of any 
     documentary material, the submission of any answers to 
     written interrogatories, or the giving of any oral testimony 
     if such material, answers, or testimony would be protected 
     from disclosure under--
       ``(A) the standards applicable to subpoenas or subpoenas 
     duces tecum issued by a court of the United States in aid of 
     a grand jury investigation; or
       ``(B) the standards applicable to discovery requests under 
     the Federal Rules of Civil Procedure, to the extent that the 
     application of such standards to any such demand is 
     appropriate and consistent with the provisions and purposes 
     of this Act.
       ``(2) Effect on other orders, rules, and laws.--Any such 
     demand which is an express demand for any product of 
     discovery supersedes any inconsistent order, rule, or 
     provision of law (other than this Act) preventing or 
     restraining disclosure of such product of discovery to any 
     person. Disclosure of any product of discovery pursuant to 
     any such express demand does not constitute a waiver of any 
     right or privilege, including without limitation any right or 
     privilege which may be invoked to resist discovery of trial 
     preparation materials, to which the person making such 
     disclosure may be entitled.
       ``(d) Service; Jurisdiction.--
       ``(1) By whom served.--Any civil investigative demand 
     issued under subsection (a) may be served by an appropriate 
     investigator, or by a United States marshal or deputy 
     marshal, at any place within the territorial jurisdiction of 
     any court of the United States.
       ``(2) Service in foreign nations.--Any such demand or 
     petition filed under subsection (k) may be served upon any 
     person who is not to be found within the territorial 
     jurisdiction of any court of the United States, in such 
     manner as the Federal Rules of Civil Procedure prescribe for 
     service in a foreign country. To the extent that the courts 
     of the United States can assert jurisdiction over any such 
     person consistent with due process, the United States 
     District Court for the District of Columbia shall have the 
     same jurisdiction to take any action respecting compliance 
     with this Act by any such person that such court would have 
     if such person were personally within the jurisdiction of 
     such court.
       ``(e) Service Upon Legal Entities and Natural Persons.--
       ``(1) Legal entities.--Service of any civil investigative 
     demand issued under subsection (a) or of any petition filed 
     under subsection (k) may be made upon a partnership, 
     corporation, association, or other legal entity by--
       ``(A) delivering a duly executed copy of such demand or 
     petition to any partner, executive officer, managing agent, 
     or general agent of the partnership, corporation, 
     association, or entity, or to any agent thereof authorized by 
     appointment or by law to receive service of process on behalf 
     of such partnership, corporation, association, or entity;
       ``(B) delivering a duly executed copy of such demand or 
     petition to the principal office or place of business of the 
     partnership, corporation, association, or entity to be 
     served; or
       ``(C) depositing an executed copy of such demand or 
     petition in the United States mails by registered or 
     certified mail, with a return receipt requested, duly 
     addressed to such partnership, corporation, association, or 
     entity at its principal office or place of business.

[[Page S6927]]

       ``(2) Natural persons.--Service of any such demand or 
     petition may be made upon any natural person by--
       ``(A) delivering a duly executed copy of such demand or 
     petition to the person to be served; or
       ``(B) depositing an executed copy of such demand or 
     petition in the United States mails by registered or 
     certified mail, with a return receipt requested, duly 
     addressed to such person at the person's residence or 
     principal office or place of business.
       ``(f) Proof of Service.--A verified return by the 
     individual serving any civil investigative demand under 
     subsection (a) or any petition filed under subsection (k) 
     setting forth the manner of such service shall be proof of 
     such service. In the case of service by registered or 
     certified mail, such return shall be accompanied by the 
     return post office receipt of delivery of such demand.
       ``(g) Documentary Material.--
       ``(1) Sworn certificates.--The production of documentary 
     material in response to a civil investigative demand served 
     pursuant to this section shall be made under a sworn 
     certificate, in such form as the demand designates, by--
       ``(A) in the case of a natural person, the person to whom 
     the demand is directed; or
       ``(B) in the case of a person other than a natural person, 
     a person having knowledge of the facts and circumstances 
     relating to such production and authorized to act on behalf 
     of such person,

     to the effect that all of the documentary material required 
     by the demand and in the possession, custody, or control of 
     the person to whom the demand is directed has been produced 
     and made available to the custodian.
       ``(2) Production of materials.--Any person upon whom any 
     civil investigative demand for the production of documentary 
     material has been served under this section shall make such 
     material available for inspection and copying to the 
     investigator identified in such demand at the principal place 
     of business of such person, or at such other place as the 
     investigator and the person thereafter may agree and 
     prescribe in writing, or as the court may direct under 
     subsection (k)(1). Such material shall be made so available 
     on the return date specified in such demand, or on such later 
     date as the investigator may prescribe in writing. Such 
     person may, upon written agreement between the person and the 
     investigator, substitute copies for originals of all or any 
     part of such material.
       ``(h) Interrogatories.--
       ``(1) Answers.--Each interrogatory in a civil investigative 
     demand served pursuant to this section shall be answered 
     separately and fully in writing under oath, and it shall be 
     submitted under a sworn certificate, in such form as the 
     demand designates, by--
       ``(A) in the case of a natural person, the person to whom 
     the demand is directed; or
       ``(B) in the case of a person other than a natural person, 
     the person or persons responsible for answering each 
     interrogatory.
       ``(2) Contents of certificates.--The certificate submitted 
     under paragraph (1) shall state that all information required 
     by the demand and in the possession, custody, control, or 
     knowledge of the person to whom the demand is directed has 
     been submitted. To the extent that any information is not 
     furnished, the information shall be identified and reasons 
     set forth with particularity regarding the reasons why the 
     information was not furnished.
       ``(3) Objections.--If any interrogatory is objected to, the 
     reasons for the objection shall be stated in the certificate 
     instead of an answer.
       ``(i) Oral Examinations.--
       ``(1) Procedures.--The examination of any person pursuant 
     to a civil investigative demand for oral testimony served 
     under this section shall be taken before an officer 
     authorized to administer oaths and affirmations by the laws 
     of the United States or of the place where the examination is 
     held. The officer before whom the testimony is to be taken 
     shall put the witness on oath or affirmation and shall 
     personally, or by someone acting under the direction of the 
     officer and in the officer's presence, record the testimony 
     of the witness. The testimony shall be taken stenographically 
     and transcribed. When the testimony is fully transcribed, the 
     officer before whom the testimony is taken shall promptly 
     transmit a copy of the transcript of the testimony to the 
     custodian. This subsection shall not preclude the taking of 
     testimony by any means authorized by, and in a manner 
     consistent with, the Federal Rules of Civil Procedure.
       ``(2) Persons present.--The investigator conducting the 
     examination shall exclude from the place where the 
     examination is held all persons except the person giving the 
     testimony, the attorney for and any other representative of 
     the person giving the testimony, the attorney for the 
     Government, any person who may be agreed upon by the attorney 
     for the Government and the person giving the testimony, the 
     officer before whom the testimony is to be taken, and any 
     stenographer taking such testimony.
       ``(3) Where testimony taken.--The oral testimony of any 
     person taken pursuant to a civil investigative demand served 
     under this section shall be taken in the judicial district of 
     the United States within which such person resides, is found, 
     or transacts business, or in such other place as may be 
     agreed upon by the investigator conducting the examination 
     and such person.
       ``(4) Transcript of testimony.--When the testimony is fully 
     transcribed, the investigator or the officer before whom the 
     testimony is taken shall afford the witness (who may be 
     accompanied by counsel) a reasonable opportunity to examine 
     and read the transcript, unless such examination and reading 
     are waived by the witness. Any changes in form or substance 
     which the witness desires to make shall be entered and 
     identified upon the transcript by the officer or the 
     investigator with a statement of the reasons given by the 
     witness for making such changes. The transcript shall then be 
     signed by the witness, unless the witness in writing waives 
     the signing, is ill, cannot be found, or refuses to sign. If 
     the transcript is not signed by the witness within 30 days 
     after being afforded a reasonable opportunity to examine it, 
     the officer or the investigator shall sign it and state on 
     the record the fact of the waiver, illness, absence of the 
     witness, or the refusal to sign, together with the reason, if 
     any, given therefor.
       ``(5) Certification and delivery to custodian.--The officer 
     before whom the testimony is taken shall certify on the 
     transcript that the witness was duly sworn by the officer and 
     that the transcript is a true record of the testimony given 
     by the witness, and the officer or investigator shall 
     promptly deliver it or send it by registered or certified 
     mail to the custodian.
       ``(6) Furnishing or inspection of transcript by witness.--
     Upon payment of reasonable charges therefor, the investigator 
     shall furnish a copy of the transcript to the witness only, 
     except that the Attorney General, or the Attorney General's 
     designee in accordance with this Act, may for good cause 
     limit such witness to inspection of the official transcript 
     of the witness's testimony.
       ``(7) Conduct of oral testimony.--
       ``(A) In general.--Any person compelled to appear for oral 
     testimony under a civil investigative demand issued under 
     subsection (a) may be accompanied, represented, and advised 
     by counsel. Counsel may advise such person, in confidence, 
     with respect to any question asked of such person. Such 
     person or counsel may object on the record to any question, 
     in whole or in part, and shall briefly state for the record 
     the reason for the objection. An objection may be made, 
     received, and entered upon the record when it is claimed that 
     such person is entitled to refuse to answer the question on 
     the grounds of any constitutional or other legal right or 
     privilege, including the privilege against self-
     incrimination. Such person may not otherwise object to or 
     refuse to answer any question, and may not directly or 
     through counsel otherwise interrupt the oral examination. If 
     such person refuses to answer any question, a petition may be 
     filed in the district court of the United States under 
     subsection (k)(1) for an order compelling such person to 
     answer such question.
       ``(B) Compelled testimony.--If such person refuses to 
     answer any question on the grounds of the privilege against 
     self-incrimination, the testimony of such person may be 
     compelled in accordance with the provisions of part V of 
     title 18, United States Code.
       ``(8) Witness fees and allowances.--Any person appearing 
     for oral testimony under a civil investigative demand issued 
     under subsection (a) shall be entitled to the same fees and 
     allowances which are paid to witnesses in the district courts 
     of the United States.
       ``(j) Custodians of Documents, Answers, and Transcripts.--
       ``(1) Designation.--The Attorney General, or designee in 
     accordance with this Act, shall designate an investigator to 
     serve as custodian of documentary material, answers to 
     interrogatories, and transcripts of oral testimony received 
     under this section, and shall designate such additional 
     investigators as the Attorney General determines from time to 
     time to be necessary to serve as deputies of the custodian.
       ``(2) Responsibility for materials; disclosure.--
       ``(A) In general.--An investigator who receives any 
     documentary material, answers to interrogatories, or 
     transcripts of oral testimony under this section shall 
     transmit them to the custodian. The custodian shall take 
     physical possession of such material, answers, or transcripts 
     and shall be responsible for the use made of them and for the 
     return of documentary material under paragraph (4).
       ``(B) Preparation.--The custodian may cause the preparation 
     of such copies of such documentary material, answers to 
     interrogatories, or transcripts of oral testimony as may be 
     required for official use by any investigator, or other 
     officer or employee of the Department of Justice. Such 
     material, answers, and transcripts may be used by any such 
     authorized investigator or other officer or employee in 
     connection with the taking of oral testimony under this 
     section.
       ``(C) No examination.--Except as otherwise provided in this 
     subsection, no documentary material, answers to 
     interrogatories, or transcripts of oral testimony, or copies 
     thereof, while in the possession of the custodian, shall be 
     available for examination by any individual other than an 
     investigator or other officer or employee of the Department 
     of Justice authorized under subparagraph (B). The prohibition 
     in the preceding sentence on the availability of material, 
     answers, or transcripts shall not apply if consent is given 
     by the person who produced such material, answers, or 
     transcripts, or, in the case of any product of discovery 
     produced pursuant to an express demand for

[[Page S6928]]

     such material, consent is given by the person from whom the 
     discovery was obtained. Nothing in this subparagraph is 
     intended to prevent disclosure to the Congress, including any 
     committee or subcommittee of the Congress, or to any other 
     agency of the United States for use by such agency in 
     furtherance of its statutory responsibilities.
       ``(D) Examination by certain persons.--While in the 
     possession of the custodian and under such reasonable terms 
     and conditions as the Attorney General shall prescribe--
       ``(i) documentary material and answers to interrogatories 
     shall be available for examination by the person who produced 
     such material or answers, or by a representative of that 
     person authorized by that person to examine such material and 
     answers; and
       ``(ii) transcripts of oral testimony shall be available for 
     examination by the person who produced such testimony, or by 
     a representative of that person authorized by that person to 
     examine such transcripts.
       ``(3) Use of material, answers, or transcripts in other 
     proceedings.--Whenever any attorney of the Department of 
     Justice has been designated to appear before any court, grand 
     jury, or Federal agency in any case or proceeding, the 
     custodian of any documentary material, answers to 
     interrogatories, or transcripts of oral testimony received 
     under this section may deliver to such attorney such 
     material, answers, or transcripts for official use in 
     connection with any such case or proceeding as such attorney 
     determines to be required. Upon the completion of any such 
     case or proceeding, such attorney shall return to the 
     custodian any such material, answers, or transcripts so 
     delivered which have not passed into the control of such 
     court, grand jury, or agency through the introduction thereof 
     into the record of such case or proceeding.
       ``(4) Conditions for return of material.--If any 
     documentary material has been produced by any person in the 
     course of any investigation pursuant to a civil investigative 
     demand under this section, and--
       ``(A) any case or proceeding before the court or grand jury 
     arising out of such investigation, or any proceeding before 
     any Federal agency involving such material, has been 
     completed, or
       ``(B) no case or proceeding in which such material may be 
     used has been commenced within a reasonable time after 
     completion of the examination and analysis of all documentary 
     material and other information assembled in the course of 
     such investigation,
     the custodian shall, upon written request of the person who 
     produced such material, return to such person any such 
     material (other than copies furnished to the investigator 
     under subsection (g)(2) or made for the Department of Justice 
     under paragraph (2)(B)) which has not passed into the control 
     of any court, grand jury, or agency through introduction into 
     the record of such case or proceeding.
       ``(5) Appointment of successor custodians.--
       ``(A) In general.--In the event of the death, disability, 
     or separation from service in the Department of Justice of 
     the custodian of any documentary material, answers to 
     interrogatories, or transcripts of oral testimony produced 
     pursuant to a civil investigative demand under this section, 
     or in the event of the official relief of such custodian from 
     responsibility for the custody and control of such material, 
     answers, or transcripts, the Attorney General or the Attorney 
     General's designee in accordance with this Act shall 
     promptly--
       ``(i) designate another investigator to serve as custodian 
     of such material, answers, or transcripts; and
       ``(ii) transmit in writing to the person who produced such 
     material, answers, or testimony notice of the identity and 
     address of the successor so designated.
       ``(B) Successor.--Any person who is designated to be a 
     successor under this paragraph shall have, with regard to 
     such material, answers, or transcripts, the same duties and 
     responsibilities as were imposed by this section upon that 
     person's predecessor in office, except that the successor 
     shall not be held responsible for any default or dereliction 
     which occurred before that designation.
       ``(k) Judicial Proceedings.--
       ``(1) Petition for enforcement.--Whenever any person fails 
     to comply with any civil investigative demand issued under 
     subsection (a), or whenever satisfactory copying or 
     reproduction of any material requested in such demand cannot 
     be done and such person refuses to surrender such material, 
     the Attorney General may file, in the district court of the 
     United States for any judicial district in which such person 
     resides, is found, or transacts business, and serve upon such 
     person a petition for an order of such court for the 
     enforcement of the civil investigative demand.
       ``(2) Petition to modify or set aside demand.--
       ``(A) In general.--Any person who has received a civil 
     investigative demand issued under subsection (a) may file, in 
     the district court of the United States for the judicial 
     district within which such person resides, is found, or 
     transacts business, and serve upon the investigator 
     identified in such demand a petition for an order of the 
     court to modify or set aside such demand. In the case of a 
     petition addressed to an express demand for any product of 
     discovery, a petition to modify or set aside such demand may 
     be brought only in the district court of the United States 
     for the judicial district in which the proceeding in which 
     such discovery was obtained is or was last pending. Any 
     petition under this subparagraph must be filed--
       ``(i) within 20 days after the date of service of the civil 
     investigative demand, or at any time before the return date 
     specified in the demand, whichever date is earlier, or
       ``(ii) within such longer period as may be prescribed in 
     writing by any investigator identified in the demand.
       ``(B) Grounds for relief.--The petition shall specify each 
     ground upon which the petitioner relies in seeking relief 
     under subparagraph (A), and may be based upon any failure of 
     the demand to comply with the provisions of this section or 
     upon any constitutional or other legal right or privilege of 
     such person. During the pendency of the petition in the 
     court, the court may stay, as it deems proper, the running of 
     the time allowed for compliance with the demand, in whole or 
     in part, except that the person filing the petition shall 
     comply with any portions of the demand not sought to be 
     modified or set aside.
       ``(3) Petition to modify or set aside demand for product of 
     discovery.--
       ``(A) In general.--In the case of any civil investigative 
     demand issued under subsection (a) which is an express demand 
     for any product of discovery, the person from whom such 
     discovery was obtained may file, in the district court of the 
     United States for the judicial district in which the 
     proceeding in which such discovery was obtained is or was 
     last pending, and serve upon any investigator identified in 
     the demand and upon the recipient of the demand, a petition 
     for an order of such court to modify or set aside those 
     portions of the demand requiring production of any such 
     product of discovery. Any petition under this subparagraph 
     must be filed--
       ``(i) within 20 days after the date of service of the civil 
     investigative demand, or at any time before the return date 
     specified in the demand, whichever date is earlier, or
       ``(ii) within such longer period as may be prescribed in 
     writing by any investigator identified in the demand.
       ``(B) Grounds for relief.--The petition shall specify each 
     ground upon which the petitioner relies in seeking relief 
     under subparagraph (A), and may be based upon any failure of 
     the portions of the demand from which relief is sought to 
     comply with the provisions of this section, or upon any 
     constitutional or other legal right or privilege of the 
     petitioner. During the pendency of the petition, the court 
     may stay, as it deems proper, compliance with the demand and 
     the running of the time allowed for compliance with the 
     demand.
       ``(4) Petition to require performance by custodian of 
     duties.--At any time during which any custodian is in custody 
     or control of any documentary material or answers to 
     interrogatories produced, or transcripts of oral testimony 
     given, by any person in compliance with any civil 
     investigative demand issued under subsection (a), such 
     person, and in the case of an express demand for any product 
     of discovery, the person from whom such discovery was 
     obtained, may file, in the district court of the United 
     States for the judicial district within which the office of 
     such custodian is situated, and serve upon such custodian, a 
     petition for an order of such court to require the 
     performance by the custodian of any duty imposed upon the 
     custodian by this section.
       ``(5) Jurisdiction.--Whenever any petition is filed in any 
     district court of the United States under this subsection, 
     such court shall have jurisdiction to hear and determine the 
     matter so presented, and to enter such order or orders as may 
     be required to carry out the provisions of this section. Any 
     final order so entered shall be subject to appeal under 
     section 1291 of title 28, United States Code. Any 
     disobedience of any final order entered under this section by 
     any court shall be punished as a contempt of the court.
       ``(6) Applicability of federal rules of civil procedure.--
     The Federal Rules of Civil Procedure shall apply to any 
     petition under this subsection, to the extent that such rules 
     are not inconsistent with the provisions of this section.
       ``(l) Disclosure Exemption.--Any documentary material, 
     answers to written interrogatories, or oral testimony 
     provided under any civil investigative demand issued under 
     subsection (a) shall be exempt from disclosure under section 
     552 of title 5, United States Code, as described in 
     subsection (b)(3) of such section.
       ``(m) Definitions.--In this section--
       ``(1) the term `custodian' means the custodian, or any 
     deputy custodian, designated by the Attorney General under 
     subsection (j)(1);
       ``(2) the term `documentary material' includes the original 
     or any copy of any book, record, report, memorandum, paper, 
     communication, tabulation, chart, or other document, or data 
     compilations stored in or accessible through computer or 
     other information retrieval systems, together with 
     instructions and all other materials necessary to use or 
     interpret such data compilations, and any product of 
     discovery;
       ``(3) the term `investigation' means any inquiry conducted 
     for the purpose of ascertaining whether any person is or has 
     been engaged in any violation of this Act;
       ``(4) the term `investigator' means any attorney or 
     investigator employed by the Department of Justice who is 
     charged with the duty of enforcing or carrying into effect 
     this Act, or any officer or employee of the United

[[Page S6929]]

     States acting under the direction and supervision of such 
     attorney or investigator in connection with an investigation;
       ``(5) the term `official use' means any use that is 
     consistent with the law, and the regulations and policies of 
     the Department of Justice, including use in connection with 
     internal Department of Justice memoranda and reports; 
     communications between the Department of Justice and a 
     Federal, State, or local government agency, or a contractor 
     of a Federal, State, or local government agency, undertaken 
     in furtherance of a Department of Justice investigation or 
     prosecution of a case; oral examinations; depositions; 
     preparation for and response to civil discovery requests; 
     introduction into the record of a case or proceeding; 
     applications, motions, memoranda and briefs submitted to a 
     court or other tribunal; and communications with Government 
     investigators, auditors, consultants and experts, the counsel 
     of other parties, arbitrators and mediators, concerning an 
     investigation, case or proceeding; and
       ``(6) the term `product of discovery' includes--
       ``(A) the original or duplicate of any deposition, 
     interrogatory, document, thing, result of the inspection of 
     land or other property, examination, or admission, which is 
     obtained by any method of discovery in any judicial or 
     administrative proceeding of an adversarial nature;
       ``(B) any digest, analysis, selection, compilation, or 
     derivation of any item listed in subparagraph (A); and
       ``(C) any index or other manner of access to any item 
     listed in subparagraph (A).
       ``(n) Sunset.--The authority of the Attorney General to 
     issue a civil investigative demand under this section shall 
     expire upon the expiration of the 5-year period which begins 
     on the date of the enactment of this section.''.

     SEC. 4. COMPREHENSIVE STRATEGY TO IMPROVE ENFORCEMENT AND 
                   ADMINISTRATION.

       (a) Development of Strategy.--The Attorney General shall 
     develop and implement a comprehensive strategy to improve the 
     enforcement and administration of the Foreign Agents 
     Registration Act of 1938 (22 U.S.C. 611 et seq.) that 
     addresses the following issues:
       (1) The coordination and integration of the work of the 
     agencies that perform investigations of alleged violations of 
     the Act and bring actions (including criminal prosecutions) 
     to enforce the Act with the overall national security efforts 
     of the Department of Justice.
       (2) An assessment of the appropriateness of the exemptions 
     provided under the Act that permit persons who represent the 
     interests of foreign principals to avoid registering under 
     the Act.
       (3) A formal cost-benefit analysis of the appropriateness 
     of the fee structure under the Act.
       (4) An assessment of the value of making advisory opinions 
     under the Act available in whole as an informational 
     resource.
       (b) Review by Inspector General; Reports to Congress.--
       (1) Review.--The Inspector General of the Department of 
     Justice shall carry out a regular, ongoing review of--
       (A) the extent to which the Attorney General has developed 
     and implemented the comprehensive strategy described in 
     subsection (a); and
       (B) the usage, effectiveness, and any potential abuse of 
     the authority granted to the Attorney General by this Act to 
     issue civil investigative demands.
       (2) Reports to congress.--The Inspector General of the 
     Department of Justice shall submit a report to the 
     appropriate committees of Congress on the results of the 
     review carried out under paragraph (1) not later than 1 year 
     after the date of enactment of this Act and annually 
     thereafter.

     SEC. 5. ANALYSIS BY GOVERNMENT ACCOUNTABILITY OFFICE.

       Not later than 3 years after the date of enactment of this 
     Act, the Comptroller General of the United States shall--
       (1) carry out an analysis of the effectiveness of the 
     enforcement and administration of the Foreign Agents 
     Registration Act of 1938 (22 U.S.C. 611 et seq.), including 
     the extent to which the amendments made by this Act have 
     improved the enforcement and administration of such Act, and 
     taking into account the comprehensive strategy developed and 
     implemented under section 4; and
       (2) submit the analysis to the Attorney General, the 
     Inspector General of the Department of Justice, and the 
     appropriate committees of Congress.

     SEC. 6. DEFINITION.

       In this Act, the term ``appropriate committees of 
     Congress'' means--
       (1) the Committees on the Judiciary and Foreign Relations 
     of the Senate; and
       (2) the Committee on the Judiciary of the House of 
     Representatives.

     SEC. 7. EFFECTIVE DATE.

       The amendments made by this Act shall take effect 180 days 
     after the date of the enactment of this Act.

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