Senators Schumer (D-NY), McCaskill (D-MO) and Obama (D-IL) introduced the “The Closing the Foreign Lobbying Loophole Act” in June 2008, which would require individuals who lobby for foreign companies – including U.S. subsidiaries of foreign firms - to register under the Foreign Agents Registration Act (FARA). This new proposal discriminatorily labels American citizens working for these companies. Current law provides an exemption from FARA registration for individuals representing commercial interests who register under the Lobbying Disclosure Act (LDA). Removing this exemption does not close a loophole – it changes the law.
The purpose of the FARA exemption was to properly differentiate between private and government entities. A 1998 Senate Governmental Affairs Committee report makes this clear by stating,” The Committee’s intention is to reaffirm the bright line distinction between governmental and non-governmental representations. Agents of private commercial foreign principals will be exempt from FARA requirements so long as they register under the LDA.”
Closing the Foreign Lobby Loophole Act, S3123
Department of Justice index page on FARA
Schumer/McCaskill/Obama Dear Colleague requesting co-sponsors
AT ISSUE :
There have been several efforts over the last 15 years, to prohibit the American employees of U.S. subsidiaries from fully participating in the political process. Chief among these proposals are attempts to forbid U.S. subsidiaries of foreign companies from organizing and maintaining Political Activity Committees (PACs). OFII actively works to defeat such discriminatory legislative and regulatory (Federal Election Commission) initiatives.
OFII DOCUMENTS:
OFII Comments to Federal Elections Commission on Proposed Rules to Limit U.S. Subsidiary Involvement in Political Process; September 13, 2002
OFII Letter to FEC on Bacardi-Martini, U.S.A.’s Request to Communicate Election-related Messages to and Solicit Contributions From Otherwise Eligible Persons at all U.S. Subsidiaries of Bacardi Ltd. and the Parent Company; October 1999
OTHER:
House Floor Debate on Gillmor/Tanner Amendment; June 19, 1998
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