Foreign Agents Disclosure and Registration Enhancement Act of 2019

II 116TH CONGRESS 1ST SESSION S. 1762 To amend the Foreign Agents Registration Act of 1938 to provide the Attorney General with greater authority to promote enforcement of dis- closure requirements for agents of foreign principals, and for other pur- poses. IN THE SENATE OF THE UNITED STATES JUNE 10, 2019 Mr. GRASSLEY (for himself, Mrs. FEINSTEIN, Mr. CORNYN, Mrs. SHAHEEN, Mr. RUBIO, and Mr. YOUNG) introduced the following bill; which was read twice and referred to the Committee on Foreign Relations A BILL To amend the Foreign Agents Registration Act of 1938 to provide the Attorney General with greater authority to promote enforcement of disclosure requirements for agents of foreign principals, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Foreign Agents Disclo- 4 sure and Registration Enhancement Act of 2019’’. 5 VerDate Sep 11 2014 20:35 Jun 11, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1762.IS S1762 pamtmann on DSKBFK8HB2PROD with BILLS 2 •S 1762 IS SEC. 2. AUTHORIZING THE ATTORNEY GENERAL TO ISSUE 1 CIVIL INVESTIGATIVE DEMANDS TO PRO- 2 MOTE ENFORCEMENT OF DISCLOSURE RE- 3 QUIREMENTS FOR AGENTS OF FOREIGN 4 PRINCIPALS. 5 The Foreign Agents Registration Act of 1938 (22 6 U.S.C. 611 et seq.) is amended— 7 (1) by redesignating sections 9 through 14 as 8 sections 10 through 15; and 9 (2) by inserting after section 8 the following: 10 ‘‘SEC. 9. CIVIL INVESTIGATIVE DEMANDS CONCERNING 11 REGISTRATION OF AGENTS OF FOREIGN 12 PRINCIPALS. 13 ‘‘(a) AUTHORITY OF THE ATTORNEY GENERAL.— 14 ‘‘(1) AUTHORITY DESCRIBED.—Whenever the 15 Attorney General or the Attorney General’s designee 16 has reason to believe that any person may be in pos- 17 session, custody, or control of any documentary ma- 18 terial, or may have any information, relevant to an 19 investigation under this Act, the Attorney General or 20 designee may, prior to the institution of a civil or 21 criminal proceeding by the United States thereon, 22 issue in writing, and cause to be served upon such 23 person, a civil investigative demand requiring such 24 person to produce such documentary material for in- 25 spection and copying or reproduction, to answer in 26 VerDate Sep 11 2014 20:35 Jun 11, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1762.IS S1762 pamtmann on DSKBFK8HB2PROD with BILLS 3 •S 1762 IS writing written interrogatories with respect to such 1 documentary material or information, to give oral 2 testimony concerning such documentary material or 3 information, or to furnish any combination of such 4 material, answers, or testimony. Whenever a civil in- 5 vestigative demand is an express demand for any 6 product of discovery, the Attorney General or des- 7 ignee shall cause to be served, in any manner au- 8 thorized by this section, a copy of such demand upon 9 the person from whom the discovery was obtained 10 and notify the person to whom such demand is 11 issued of the date on which such copy was served. 12 ‘‘(2) LIMITING INDIVIDUALS WHO MAY SERVE 13 AS DESIGNEES.—The Attorney General may not des- 14 ignate any individual other than the Assistant Attor- 15 ney General for National Security or a Deputy At- 16 torney General to carry out the authority provided 17 under this section. 18 ‘‘(b) CONTENTS AND DEADLINES.— 19 ‘‘(1) IN GENERAL.—Each demand issued under 20 subsection (a) shall— 21 ‘‘(A) state the nature of the conduct con- 22 stituting the alleged violation of this Act that is 23 under investigation and the provision of this 24 Act alleged to be violated; 25 VerDate Sep 11 2014 20:35 Jun 11, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1762.IS S1762 pamtmann on DSKBFK8HB2PROD with BILLS 4 •S 1762 IS ‘‘(B) if such demand is for the production 1 of documentary material— 2 ‘‘(i) describe each class of documen- 3 tary material to be produced with such 4 definiteness and certainty as to permit 5 such material to be fairly identified; 6 ‘‘(ii) prescribe a return date for each 7 such class which will provide a reasonable 8 period of time within which the material so 9 demanded may be assembled and made 10 available for inspection and copying or re- 11 production; and 12 ‘‘(iii) identify the custodian to whom 13 such material shall be made available; 14 ‘‘(C) if such demand is for answers to writ- 15 ten interrogatories— 16 ‘‘(i) set forth with specificity the writ- 17 ten interrogatories to be answered; 18 ‘‘(ii) prescribe dates at which time an- 19 swers to written interrogatories shall be 20 submitted; and 21 ‘‘(iii) identify the custodian to whom 22 such answers shall be submitted; and 23 ‘‘(D) if such demand is for the giving of 24 oral testimony— 25 VerDate Sep 11 2014 20:35 Jun 11, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1762.IS S1762 pamtmann on DSKBFK8HB2PROD with BILLS 5 •S 1762 IS ‘‘(i) prescribe a date, time, and place 1 at which oral testimony shall be com- 2 menced; 3 ‘‘(ii) identify an investigator who shall 4 conduct the examination and the custodian 5 to whom the transcript of such examina- 6 tion shall be submitted; 7 ‘‘(iii) specify that such attendance and 8 testimony are necessary to the conduct of 9 the investigation; 10 ‘‘(iv) notify the person receiving the 11 demand of the right to be accompanied by 12 an attorney and any other representative; 13 and 14 ‘‘(v) describe the general purpose for 15 which the demand is being issued and the 16 general nature of the testimony, including 17 the primary areas of inquiry, which will be 18 taken pursuant to the demand. 19 ‘‘(2) PRODUCT OF DISCOVERY.—Any civil inves- 20 tigative demand issued under this section that is an 21 express demand for any product of discovery shall 22 not be returned or returnable until 20 days after a 23 copy of such demand has been served upon the per- 24 son from whom the discovery was obtained. 25 VerDate Sep 11 2014 20:35 Jun 11, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1762.IS S1762 pamtmann on DSKBFK8HB2PROD with BILLS 6 •S 1762 IS ‘‘(3) DATE.—The date prescribed for the com- 1 mencement of oral testimony pursuant to a civil in- 2 vestigative demand issued under subsection (a) shall 3 be a date that is not less than 7 days after the date 4 on which demand is received, unless the Attorney 5 General or the Attorney General’s designee deter- 6 mines that exceptional circumstances are present 7 which warrant the commencement of such testimony 8 within a lesser period of time. 9 ‘‘(4) NOTIFICATION.—The Attorney General 10 shall not authorize the issuance under this section of 11 more than 1 civil investigative demand for oral testi- 12 mony by the same person unless the person requests 13 otherwise or unless the Attorney General, after in- 14 vestigation, notifies that person in writing that an 15 additional demand for oral testimony is necessary. 16 ‘‘(c) PROTECTED MATERIAL OR INFORMATION.— 17 ‘‘(1) IN GENERAL.—A civil investigative de- 18 mand issued under subsection (a) may not require 19 the production of any documentary material, the 20 submission of any answers to written interrogatories, 21 or the giving of any oral testimony if such material, 22 answers, or testimony would be protected from dis- 23 closure under— 24 VerDate Sep 11 2014 20:35 Jun 11, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1762.IS S1762 pamtmann on DSKBFK8HB2PROD with BILLS 7 •S 1762 IS ‘‘(A) the standards applicable to subpoenas 1 or subpoenas duces tecum issued by a court of 2 the United States in aid of a grand jury inves- 3 tigation; or 4 ‘‘(B) the standards applicable to discovery 5 requests under the Federal Rules of Civil Pro- 6 cedure, to the extent that the application of 7 such standards to any such demand is appro- 8 priate and consistent with the provisions and 9 purposes of this Act. 10 ‘‘(2) EFFECT ON OTHER ORDERS, RULES, AND 11 LAWS.—Any such demand that is an express de- 12 mand for any product of discovery supersedes any 13 inconsistent order, rule, or provision of law (other 14 than this Act) preventing or restraining disclosure of 15 such product of discovery to any person. Disclosure 16 of any product of discovery pursuant to any such ex- 17 press demand does not constitute a waiver of any 18 right or privilege, including without limitation any 19 right or privilege which may be invoked to resist dis- 20 covery of trial preparation materials, to which the 21 person making such disclosure may be entitled. 22 ‘‘(d) SERVICE; JURISDICTION.— 23 ‘‘(1) BY WHOM SERVED.—Any civil investiga- 24 tive demand issued under subsection (a) may be 25 VerDate Sep 11 2014 20:35 Jun 11, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S1762.IS S1762 pamtmann on DSKBFK8HB2PROD with BILLS 8 •S 1762 IS served by an appropriate investigator, or by a 1 United States marshal or deputy marshal, at any 2 place within the territorial jurisdiction of any court 3 of the United States. 4 ‘‘(2) SERVICE IN FOREIGN NATIONS.—Any such 5 demand or petition filed under subsection (k) may 6 be served upon any person who is not to be found 7 within the territorial jurisdiction of any court of the 8 United States, in such manner as the Federal Rules 9 of Civil Procedure prescribe for service in a foreign 10 country. To the extent that the courts of the United 11 States can assert jurisdiction over any such person 12 consistent with due process, the United States Dis- 13 trict Court for the District of Columbia shall have 14 the same jurisdiction to take any action respecting 15 compliance with this Act by any such person that 16 such court would have if such person were personally 17 within the jurisdiction of such court. 18 ‘‘(e) SERVICE UPON LEGAL ENTITIES AND NATURAL 19 PERSONS.— 20 ‘‘(1) LEGAL ENTITIES.—Service of any civil in- 21 vestigative demand issued under subsection (a) or of 22 any petition filed under subsection (k) may be made 23 upon a partnership, corporation, association, or 24 other legal entity by— 25 VerDate Sep 11 2014 20:35 Jun 11, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1762.IS S1762 pamtmann on DSKBFK8HB2PROD with BILLS 9 •S 1762 IS ‘‘(A) delivering a duly executed copy of 1 such demand or petition to any partner, execu- 2 tive officer, managing agent, or general agent 3 of the partnership, corporation, association, or 4 entity, or to any agent thereof authorized by 5 appointment or by law to receive service of 6 process on behalf of such partnership, corpora- 7 tion, association, or entity; 8 ‘‘(B) delivering a duly executed copy of 9 such demand or petition to the principal office 10 or place of business of the partnership, corpora- 11 tion, association, or entity to be served; or 12 ‘‘(C) depositing an executed copy of such 13 demand or petition in the United States mails 14 by registered or certified mail, with a return re- 15 ceipt requested, duly addressed to such partner- 16 ship, corporation, association, or entity at its 17 principal office or place of business. 18 ‘‘(2) NATURAL PERSONS.—Service of any such 19 demand or petition may be made upon any natural 20 person by— 21 ‘‘(A) delivering a duly executed copy of 22 such demand or petition to the person to be 23 served; or 24 VerDate Sep 11 2014 20:35 Jun 11, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S1762.IS S1762 pamtmann on DSKBFK8HB2PROD with BILLS 10 •S 1762 IS ‘‘(B) depositing an executed copy of such 1 demand or petition in the United States mails 2 by registered or certified mail, with a return re- 3 ceipt requested, duly addressed to such person 4 at the person’s residence or principal office or 5 place of business. 6 ‘‘(f) PROOF OF SERVICE.—A verified return by the 7 individual serving any civil investigative demand under 8 subsection (a) or any petition filed under subsection (k) 9 setting forth the manner of such service shall be proof of 10 such service. In the case of service by registered or cer- 11 tified mail, such return shall be accompanied by the return 12 post office receipt of delivery of such demand. 13 ‘‘(g) DOCUMENTARY MATERIAL.— 14 ‘‘(1) SWORN CERTIFICATES.—The production of 15 documentary material in response to a civil inves- 16 tigative demand served pursuant to this section shall 17 be made under a sworn certificate, in such form as 18 the demand designates, by— 19 ‘‘(A) in the case of a natural person, the 20 person to whom the demand is directed; or 21 ‘‘(B) in the case of a person other than a 22 natural person, a person having knowledge of 23 the facts and circumstances relating to such 24 VerDate Sep 11 2014 20:35 Jun 11, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S1762.IS S1762 pamtmann on DSKBFK8HB2PROD with BILLS 11 •S 1762 IS production and authorized to act on behalf of 1 such person, 2 to the effect that all of the documentary material re- 3 quired by the demand and in the possession, cus- 4 tody, or control of the person to whom the demand 5 is directed has been produced and made available to 6 the custodian. 7 ‘‘(2) PRODUCTION OF MATERIALS.—Any person 8 upon whom any civil investigative demand for the 9 production of documentary material has been served 10 under this section shall make such material available 11 for inspection and copying to the investigator identi- 12 fied in such demand at the principal place of busi- 13 ness of such person, or at such other place as the 14 investigator and the person thereafter may agree 15 and prescribe in writing, or as the court may direct 16 under subsection (k)(1). Such material shall be 17 made so available on the return date specified in 18 such demand, or on such later date as the investi- 19 gator may prescribe in writing. Such person may, 20 upon written agreement between the person and the 21 investigator, substitute copies for originals of all or 22 any part of such material. 23 ‘‘(h) INTERROGATORIES.— 24 VerDate Sep 11 2014 20:35 Jun 11, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S1762.IS S1762 pamtmann on DSKBFK8HB2PROD with BILLS 12 •S 1762 IS ‘‘(1) ANSWERS.—Each interrogatory in a civil 1 investigative demand served pursuant to this section 2 shall be answered separately and fully in writing 3 under oath, and it shall be submitted under a sworn 4 certificate, in such form as the demand designates, 5 by— 6 ‘‘(A) in the case of a natural person, the 7 person to whom the demand is directed; or 8 ‘‘(B) in the case of a person other than a 9 natural person, the person or persons respon- 10 sible for answering each interrogatory. 11 ‘‘(2) CONTENTS OF CERTIFICATES.—The cer- 12 tificate submitted under parag [Text truncated for display. Full text available on Congress.gov.]