[Federal Register Volume 64, Number 131 (Friday, July 9, 1999)]
[Proposed Rules]
[Pages 37065-37067]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-16941]



[[Page 37065]]

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DEPARTMENT OF JUSTICE

28 CFR Part 5

[AG Order No. 2229-99]
RIN 1105-AA45


Foreign Agents Registration Act

AGENCY: Department of Justice.

ACTION: Proposed rule.

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SUMMARY: The Department of Justice proposes to amend its existing 
regulations implementing the Foreign Agents Registration Act of 1938, 
as amended (FARA or the Act). The proposed rule would establish new 
regulations needed as a result of the passage of the Lobbying 
Disclosure Act of 1995 (LDA) and the Lobbying Disclosure Technical 
Amendments Act of 1998 (LDTAA), both of which amended FARA. The 
proposed regulations clarify the scope of the amended Act and some 
exemptions to the Act, and make technical amendments to existing 
regulations.

DATES: Written comments must be submitted on or before September 7, 
1999.

ADDRESSES: Please address all written comments concerning this proposed 
rule to Marshall R. Williams, Chief, Registration Unit, Internal 
Security Section, Criminal Division, United States Department of 
Justice, Washington, DC 20530.

FOR FURTHER INFORMATION CONTACT: Marshall R. Williams, Chief, 
Registration Unit or Heather H. Hunt, Attorney, Registration Unit on 
(202) 514-1216 or by facsimile on (202) 514-2836. These are not toll-
free numbers.

SUPPLEMENTARY INFORMATION: Under the Foreign Agents Registration Act of 
1938 (FARA or the Act), 22 U.S.C. 611-621, agents of foreign principals 
are required to register with the Department of Justice in order to 
make periodic public disclosure of their relationship with the foreign 
principal, activities on behalf of the foreign principal, and receipts 
and disbursements in support of these activities. In the Lobbying 
Disclosure Act of 1995, Public Law 104-65 (LDA), and the Lobbying 
Disclosure Technical Amendments Act of 1998, Public Law 105-166 
(LDTAA), Congress amended FARA in several respects. First, Congress 
generally narrowed the scope of FARA to agents of foreign governments 
and foreign political parties. Under new section 3(h) of FARA, 22 
U.S.C. 613(h), agents of foreign principals other than foreign 
governments or foreign political parties need not register under FARA 
if such agents engage in lobbying activities and register under the 
LDA. Second, Congress repealed section 1(q), 22 U.S.C. 611(a), which 
had provided a safe harbor specifying circumstances in which agents of 
multinational corporations would be exempt from registration under 
section 3(d)(2) of the Act, 22 U.S.C. 613(d)(2). When Congress 
authorized registration under the LDA rather than FARA for lobbying 
activities on behalf of foreign principals other than foreign 
governments and foreign political parties, section 1(q) became largely 
unnecessary.
    In addition, in the LDA Congress clarified the applicability of an 
exemption in section 3(g), 22 U.S.C. 613(g), for legal representation 
of a foreign principal in certain proceedings. Finally, Congress 
substituted the term ``informational materials'' for the term 
``political propaganda'' throughout FARA, except in section 4(e), 22 
U.S.C. 614(e), which concerns the dissemination of materials on behalf 
of the foreign principal, and in section 11, 22 U.S.C. 621, which 
concerns the filing of a semi-annual report with Congress.
    These amendments require changes in regulations implementing, among 
others, sections 3(d)(2), 3(g), 3(h) and 4 of FARA. First, this 
proposed rule clarifies the reach of section 3(d)(2) in light of the 
repeal of section 1(q) of FARA. Section 3(d)(2) exempts from 
registration under FARA activities of a political nature ``not serving 
predominantly a foreign interest.'' Under the rule, activities of an 
agent on behalf of a foreign commercial interest, even if the 
activities are political in nature and are directed or controlled by a 
foreign government or foreign political party, do not require 
registration under FARA because such activities do not ``serve 
predominantly a foreign interest'' for purposes of 3(d)(2). However, 
the new regulation clarifies that even after the deletion of section 
1(q), any person, including a foreign or domestic corporation, who 
engages in political activities, not of a commercial nature, on behalf 
of a foreign government or foreign political party is required to 
register under FARA, as these activities will ``serve predominantly a 
foreign interest'' and thus not be exempt under section 3(d)(2).
    Second, the rule clarifies the circumstances in which agents of 
foreign principals, other than foreign governments or foreign political 
parties, can claim the new exemption provided in section 3(h), and 
clarifies the reach of the revised ``attorneys' exemption'' in section 
3(g). In addition, the proposed rule strikes the term ``political 
propaganda'' wherever it appears in the regulations and substitutes the 
LDA term, ``informational materials.'' Finally, the rule makes certain 
technical amendments to the existing regulations to delete reference to 
other repealed sections of the Act and to enable the Registration Unit 
to more effectively administer the statute by allowing for electronic 
filing in the future.

Certifications and Determinations

    The Attorney General, in accordance with the Regulatory Flexibility 
Act (5 U.S.C. 605(b)), has reviewed this proposed rule and, by 
approving it, certifies that it will not have a significant economic 
impact on a substantial number of small entities. The rule primarily 
affects those persons required to register pursuant to FARA, currently 
approximately 525 primary registrants and 2,464 individual short form 
registrants.
    This proposed rule has been drafted and reviewed in accordance with 
Executive Order 12866, section 1(b), Principles of Regulation. The 
Department of Justice has determined that it does not constitute 
``significant regulatory action'' under section 3(f) of Executive Order 
12866, Regulatory Planning and Review, and accordingly it has not been 
reviewed by the Office of Management and Budget.
    In addition, the Department of Justice certifies that this rule is 
not a major rule as defined by section 251 of the Small Business 
Regulatory Enforcement Fairness Act of 1996, 5 U.S.C. 804. The rule 
will not result in an annual effect on the economy of $100 million or 
more; a major increase in costs or prices; or significant adverse 
effects on competition, employment, investment, productivity, 
innovation, or the ability of United States-based companies to compete 
with foreign-based companies in domestic and export markets.
    Furthermore, this rule will not result in the expenditure by State, 
local, and tribal governments, in the aggregate, or by the private 
sector, of $100 million or more in any one year, and it will not 
significantly or uniquely affect small governments. Therefore, no 
actions were deemed necessary under the provisions of the Unfunded 
Mandates Reform Act of 1995.
    Finally, this rule will not have substantial direct effects on the 
States, on the relationship between the national government and the 
States, or on

[[Page 37066]]

distribution of power and responsibilities among the various levels of 
government. Therefore, in accordance with Executive Order 12612, it is 
determined that this rule does not have sufficient federalism 
implications to warrant the preparation of a Federalism Assessment.

List of Subjects in 28 CFR Part 5

    Aliens, Foreign relations, Reporting and recordkeeping 
requirements, Security measures.

    Accordingly, the Department of Justice proposes to amend part 5 of 
title 28 of the Code of Federal Regulations, chapter I, as follows:

PART 5--ADMINISTRATION AND ENFORCEMENT OF FOREIGN AGENTS 
REGISTRATION ACT OF 1938, AS AMENDED

    1. The authority citation for part 5 continues to read as follows:

    Authority: 28 U.S.C. 509, 510; section 1, 56 Stat. 248, 357 (22 
U.S.C. 620); title I, Pub. L. 102-395, 106 Stat. 1828, 1831 (22 
U.S.C. 612 note).


Sec. 5.5  [Amended]

    2. a. Amend Sec. 5.5 in paragraph (d)(10) by adding the words 
``informational materials,'' following ``reports,''.
    b. Amend Sec. 5.5 in paragraph (d)(11) by adding the words 
``informational materials,'' following ``reports,''.


Sec. 5.100  [Amended]

    3. a. Amend Sec. 5.100 in paragraph (c) by removing ``1 (q),''.
    b. Amend Sec. 5.100 in paragraph (d) by removing ``1 (q),''.


Sec. 5.200  [Amended]

    4. Amend Sec. 5.200 in paragraph (b) by removing the words ``Form 
OBD-63'' and adding, in their place, the words ``a form provided by the 
Registration Unit''.


Sec. 5.201  [Amended]

    5. a. Amend Sec. 5.201 in paragraph (a)(1) by removing the words 
``Form OBD-67'' and adding, in their place, the words ``a form provided 
by the Registration Unit''.
    b. Amend Sec. 5.201 in paragraph (a)(2) by removing the words 
``Form OBD-65'' and adding, in their place, the words ``a form provided 
by the Registration Unit''.


Sec. 5.202  [Amended]

    6. a. Amend Sec. 5.202 in paragraph (b) by adding the work 
``registrable'' before the word ``activity''.
    b. Amend Sec. 5.202 in paragraph (e) by removing the words ``Form 
OBD-66'' and adding, in their place, the words ``a form provided by the 
Registration unit''.


Sec. 5.203  [Amended]

    7. Amend $5.203 in paragraph (a) by removing the words ``Form OBD-
64'' and adding, in their place, the words ``a form provided by the 
Registration Unit''.


Sec. 5.204  [Amended]

    8. Amend Sec. 5.204 in paragraph (a) by removing the words ``Form 
OBD-68'' and adding, in their place, the words ``a form provided by the 
Registration Unit''.


Sec. 5.205  [Amended]

    9. Amend Sec. 5.205 in paragraph (a) by removing the words ``OBD-
64'' and adding, in their place, the words ``the supplemental statement 
form.


Sec. 5.206  [Amended]

    10. Amend Sec. 5.206 in paragraph (b) by adding the words ``or if 
it is filed in an electronic format acceptable to the registration 
Unit'' following the words ``ink''.
    11. Revise paragraph (c) of Sec. 5.304 to read as follows:


Sec. 5.304  Exemptions under sections 3(d) and (e) of the Act.

* * * * *
    (c) For the purpose of section 3(d)(2) of the Act, the term ``other 
activities not serving predominantly a foreign interest'' includes 
political activities on behalf of foreign commercial interests, even if 
such activities are directed or controlled by a foreign government or 
foreign political party. The term does not include other political 
activities that are directly or indirectly supervised, directed, 
controlled, financed, or subsidized in whole or in substantial part by 
a government of a foreign country or a foreign political party.
* * * * *
    12. Revise paragraph (a) of Sec. 5.306 to read as follows:


Sec. 5.306  Exemption under section 3(g) of the Act.

* * * * *
    (a) Attempts to influence of persuade agency personnel or officials 
other than in the course of judicial proceedings, criminal or civil law 
enforcement inquiries, investigations, or proceedings, or agency 
proceedings required by statute or regulation to be conducted on the 
record, shall include only such attempts to influence or persuade with 
reference to formulating, adopting, or changing the domestic or foreign 
policies of the United States of with reference to the political or 
public interests, policies, or relations of a government of a foreign 
country or a foreign political party; and
* * * * *


Sec. 5.306  [Amended]

    13. Amend Sec. 5,306 in the last sentence of paragraph (b) by 
removing the word ``like'' and adding, in its place, the word ``fall''.
    14. Add Sec. 5.307 to read as follows:


Sec. 5.307  Exemption under section 3(h) of the Act.

    For the purpose of section 3(h) of the Act, the burden of 
establishing that registration under the Lobbying Disclosure Act of 
1995 (LDA), 2 U.S.C. 1601 et seq., has been made shall fall upon the 
person claiming the exemption. The Department of Justice will accept as 
prima facie evidence of registration a duly executed registration 
statement filed pursuant to the LDA. In no case where a foreign 
government or foreign political party is the ultimate foreign principal 
will the exemption under section 3(h) be recognized.


Sec. 5.400  [Amended]

    15. a. Amend the heading of Sec. 5.400 by removing the words 
``political propaganda'' and adding, in their place, the words 
``informational materials''.
    b. Amend Sec. 5.400 in paragraph (a) by removing the words ``two 
copies of each item of political propaganda'' and adding, in their 
place, the words ``informational materials'', and by adding, before the 
period, the words ``no later than 48 hours after the beginning of the 
transmittal of the informational materials''.
    c. Amend Sec. 5.400 in paragraph (b) by removing the words ``two 
copies of an item of political propaganda'' and adding, in their place, 
the words ``informational materials'' and by removing the word 
``material'' and adding, in its place, ``materials''.
    d. Amend Sec. 5.400 in the first sentence of paragraph (c) by 
removing the words ``two copies of a motion picture containing 
political propaganda'' and adding, in their place, the words ``a copy 
of a motion picture''.


Sec. 5.401  [Removed]

    16. Remove Sec. 5.401.


Sec. 5.402  [Amended]

    17. a. Revise the heading of Sec. 5.402 as set forth below.
    b. Amend Sec. 5.402 in paragraph (a) by removing the words 
``political propaganda'' and adding, in their place, the words 
``informational materials'', by removing the words ``it has'' and 
adding, in their place, the words ``they have'', and by removing the 
word ``its'' and adding in its place, the word ``their''.
    c. Amend Sec. 5.402 in paragraph (b) by removing the words ``An 
item of political propaganda which is'' and adding, in their place, the 
words ``Informational materials'', and removing the words ``which is'' 
and adding, in their place, the words ``which are'', and by removing 
the words ``such item'' and adding, in their place, the words ``such 
materials''.

[[Page 37067]]

    d. Amend Sec. 5.402 in paragraph (c) by removing the words ``An 
item of political propaganda which is'' and adding, in their place, the 
words ``Informational materials'', and by removing the phrase ``which 
is not'' and adding, in its place, the phrase ``which are not''.
    e. Amend Sec. 5.402 in paragraph (d) by removing the words 
``Political propaganda as defined in section 1(j) of the Act which is'' 
and adding, in their place, the words ``Informational materials that 
are'', and by removing the words ``is caused'' and adding, in its 
place, the words ``are caused''.
    f. Amend Sec. 5.402 in paragraph (e) by removing the words 
``political propaganda as defined in section 1(j) of the Act'' and 
adding, in their place, the words ``informational materials''.
    g. Amend Sec. 5.402 in paragraph (f) by removing the words 
``political propaganda'' and adding, in their place, the words 
informational materials''.
    h. Add new paragraph (g) to Sec. 5.402 to read as follows:


Sec. 5.402  Labeling informational materials

* * * * *
    (g) For the purpose of section 4(b) of the Act, a statement will be 
deemed conspicuous if it prefaces or accompanies the informational 
materials.


Sec. 5.500  [Amended]

    18. Amend Sec. 5.500 in paragraph (a)(4) by removing the words 
``political propaganda has'' and adding, in their place, the words 
``informational materials have''.


Sec. 5.600  [Amended]

    19. Amend Sec. 5.600 by adding the words ``informational 
materials,'' following the words ``Registration statements,'' and by 
removing the words ``from 10 a.m. to 4 p.m.'' and adding, in their 
place, the words `'during the posted hours of operation.''.


Sec. 5.601  [Amended]

    20. a. Amend Sec. 5.601 in paragraph (a) by adding the words 
``informational materials,'' following the word ``thereto,''.
    b. Amend Sec. 5.601 in paragraph (b) by adding the words 
``informational materials,'' following the word `'thereto,''.

    Dated: June 26, 1999.
Janet Reno,
Attorney General.
[FR Doc. 99-16941 Filed 7-8-99; 8:45 am]
BILLING CODE 4410-14-M