Friday, September 17, 2021

How the Justice Department is becoming ‘more forgiving’ in its FARA crackdown

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By Caitlin Oprysko

Presented by

Natural Allies for Clean Energy

With Daniel Lippman

FARA FRIDAY: The Justice Department this week released another batch of Foreign Agents Registration Act advisory opinions, which guide lawyers advising lobbyists on whether or not they need to register as foreign agents. Lawyers specializing in FARA homed in on one aspect in particular of one of the half-dozen advisories published this week — namely, that the department's crackdown on illegal foreign lobbying doesn't necessarily mean pushing for more registration under the law.

— In one opinion issued on July 19, DOJ told one consulting firm that its consultants did not have to register under FARA if they were merely providing information about U.S. policy to a foreign client and not engaging in direct lobbying contacts themselves or advising the client on how to do so. It's notable because of the opinion's reliance on legislative history when considering how to define the term "political consultant" which according to Robert Kelner, an attorney for Covington & Burling's election and political law practice who advises on FARA and lobbying compliance, was previously "outlandishly broad."

— "For many years there's been uncertainty about the meaning of the definition of political consultant in the statute," he said. And "this is the first time I've seen a published advisory opinion" in which the FARA unit "agrees to follow the legislative history" — in this case 1966 amendments to the Cold War-era statute.

— In essence, DOJ is reading political consultants out of the FARA statute, said Brandon Van Grack, who led the FARA unit during its crackdown during the Trump administration and is now a partner at Morrison & Foerster. That means "that there is likely some activity … where people either may have thought they needed to register, or perhaps may have been a little concerned about it" and where now "people will be more comfortable with it."

— Several of the other advisory opinions Van Grack highlighted follow a similar trend in taking a "pragmatic" and "more forgiving" interpretation of the FARA statute, including several concerning the legal exemption to FARA, which guides whether attorneys must register to perform certain legal work for foreign clients.

— The advisories show the department has put a premium on providing more transparency into the FARA unit, its decision-making process, and its interpretation of the FARA statute and regulations, Van Grack said. "It just so happens that in both instances that I highlighted, it shows a sort of more forgiving interpretation of two areas of the law." To Kelner, they show "that there is some adult supervision going on in the FARA unit to ensure that they are — at least on some issues — not overreaching."

Happy Friday and welcome to PI. Send me your finest K Street tips, gossip, and musings: coprysko@politico.com. And be sure to follow me on Twitter: @caitlinoprysko.

A message from Natural Allies for Clean Energy:

Natural gas is accelerating America's transition to a clean energy future. The reliability of natural gas enables the rapid expansion of low-carbon renewable generation, and by partnering the two together, we can achieve rapid emissions reductions today - without sacrificing reliability and affordability. Academics and researchers agree: continuing to invest in natural gas infrastructure will help us reach our climate goals faster. Natural gas -- accelerating our transition to a clean energy future. Learn more at www.naturalalliesforcleanenergy.org

 


CHAMBER'S TOP LAWYER JOINS JAN. 6 COMMITTEE: John Wood, who's served as general counsel and chief legal officer at the U.S. Chamber of Commerce since 2018, is leaving the business lobby after being tapped as the top attorney on the House committee probing the Jan. 6 Capitol attack, Chair Bennie Thompson (D-Miss.) and Vice Chair Liz Cheney (R-Wyo.) announced today. Wood, an alum of the George W. Bush administration and the former U.S. attorney for the Western District of Missouri will serve as the panel's senior investigative counsel and of counsel to Cheney, the lawmakers said.

— In a statement, Thompson and Cheney hailed Wood's hiring as a testament of the panel's lack of partisanship. "The Committee will continue to put politics aside to get answers the American people deserve about what happened and how to ensure it never happens again," they said. Thompson and Cheney praised his "impressive track record working inside and outside of government," asserting that "his expertise will enhance our efforts to investigate the events surrounding January 6th and understand what led to the attack against the U.S. Capitol that day."

— The committee has requested hundreds of documents, including any internal communications on Jan. 6 related to a host of former Trump officials. They've also requested any notes summarizing former President Donald Trump's meetings on the day of the insurrection and for all documents sent to and from the White House Situation Room that day. The National Archives and Records Administration is passing records it finds to Trump's legal team on a rolling basis for review, POLITICO's Betsy Woodruff Swan reported this morning, which could force President Joe Biden's White House lawyers to make some tough calls over whether to reveal certain documents.

BANKERS FIGHT BACK AGAINST ADMINISTRATION PUSH FOR IRS REPORTING RULES: Dozens of banking, business and finance groups fired a warning shot at House leadership over proposed bank reporting requirements the Biden administration is pushing to have included in House Democrats' $3.5 trillion tax-and-spend legislation.

— "While the stated goal of this vast data collection is to uncover tax dodging by the wealthy, this proposal is not remotely targeted to that purpose or that population," the groups wrote in a letter to House Speaker Nancy Pelosi and Minority Leader Kevin McCarthy today. The proposal from President Joe Biden would require financial institutions to give the IRS more information about inflows and outflows from bank accounts, in an effort to increase enforcement and recover more in uncollected taxes. The plan was left off House Ways and Means Chair Richard Neal's menu of roughly $2 trillion in revenue raisers to pay for the package, which lobbyists are hustling to pare back.

— After Treasury Secretary Janet Yellen and IRS Chief Chuck Rettig appealed to Neal this week, the Massachusetts Democrat said he'd been in touch with the administration about their concerns and that they were determining a way to move forward "on reporting proposals that target sophisticated tax avoidance and evasion without impacting middle-class and working Americans."

— The finance groups argued the proposal would create "significant privacy concerns" as well as "tremendous liability for all affected parties by requiring the collection of financial information for nearly every American without proper explanation of how the IRS will store, protect, and use this enormous trove of personal financial information." Citing those privacy concerns, they contended that the plan also "would almost certainly undermine efforts to reach vulnerable populations and unbanked households."

— The letter was signed by more than three dozen trade associations representing various sectors of the finance and business worlds, including the Consumer Bankers Association, the American Bankers Association, the Securities Industry and Financial Markets Association, the Independent Community Bankers of America, the National Stone, Sand & Gravel Association, the Credit Union National Association, the American Land Title Association, the International Franchise Association, the National Federation of Independent Business, the American Hotel & Lodging Association and the National Association of Realtors.

IF YOU MISSED IT THURSDAY: "A new conservative coalition led by former Trump administration advisers plans to launch an up to $10 million campaign to attack President Biden's economic package as it advances through Congress," The Washington Post's Jeff Stein reports.

— "The effort, set to launch Friday, is being spearheaded by the America First Policy Institute founded earlier this year by former Trump officials, as well as conservative organizations such as the Conservative Partnership Institute, the Committee to Unleash Prosperity, the Texas Public Policy Foundation, and FreedomWorks. Leaders of the campaign, called the 'Save America Coalition,' met Wednesday night at the Washington headquarters of the America First group located near the White House.

— "They discussed plans to rally more than 100 conservative organizations and draw donors for advertisements and social media campaigns criticizing the Biden proposal in swing states and districts controlled by centrist Democrats." Among the former Trump hands spearheading the effort, per Stein and the policy institute's CEO Brooke Rollins — who led the White House Domestic Policy Council under Trump — are Larry Kudlow, Trump's top economic adviser; Linda McMahon, the former WWE executive who served as his small business administrator; and Russell Vought, Trump's OMB director.

Stephen Moore, a founder of the conservative Club for Growth and a former Trump campaign adviser, "is also helping lead the coalition through the Committee to Unleash Prosperity." He told the post that "a big part of conservatives' effort will be focused on slowing down the Democratic proposal — in part through encouraging activism at the grass roots level — believing that the 'the more we can delay this, the better.'"

 

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Jobs Report

Alvin Chan is now senior director for public policy at Samsung Electronics America. He most recently was director of government relations at HP.

The National Association of Federally-Insured Credit Unions hired Greg Mesack as senior vice president of government affairs. He was previously a senior government affairs consultant at GrayRobinson.

Adam Wilczewski has joined Resolute-DC as a principal. He was previously chief of staff at the International Trade Administration and global business development manager for Lennar International.

Greg Collins will be associate vice president of resilience and international development at the University of Arizona. He was previously resilience coordinator and deputy assistant administrator for the Bureau for Resilience and Food Security at USAID.

Ted McKinney has been named CEO of the National Association of State Departments of Agriculture. McKinney was most recently undersecretary for trade and foreign agricultural affairs at USDA during the Trump administration.

Courtney Hughley joined the National Association of Charter School Authorizers as vice president of communications.

New Joint Fundraisers

Farm Leadership Fund (Reps. G.T. Thompson (R-Pa.), David Rouzer (R-N.C.))

New PACs

Coalition One (Super PAC)
Penn Progress, Inc. (Super PAC)
Win Back the Suburbs PAC (PAC)

New Lobbying Registrations

Ballard Partners: Africell Uk Limited
Ballard Partners: Jonathan Allayev On Behalf Of Mark Allayev
Ballard Partners: Ras
Ballard Partners: Sanolyte, LLC
Barbara Burchett: The Epoxy Interest Group
Cansler Consulting, LLC: Nachurs Alpine Solutions, LLC
Capitol Ventures Government Relations, LLC: Quapaw Nation
Federal Health Policy Strategies: Medication Assisted Treatment Leadership Council
Fgh Holdings, LLC (Formerly Known As The Glover Park Group LLC): Stryten Energy LLC
Goldstein Policy Solutions LLC: Putala Strategies On Behalf Of Asml US LLC
Hill East Group, LLC: Atlas Crossing LLC On Behalf Of National Association Of Convenience Stores
K&L Gates LLP: Black Summit Financial
Mcguirewoods Consulting (A Subsidiary Of Mcguirewoods LLP): Hertz Global
Mr. Mark Kopec: 3Pl Operating Inc.
Pugliese Associates: Aging And Diverse Home Healthcare Services
Subject Matter (Fka Elmendorf Ryan): Skyworks Solutions, Inc.
Thorn Run Partners: City Of Lompoc, Ca

New Lobbying Terminations

Capitol Ventures Government Relations, LLC: National Rural Lenders Association
Mehlman Castagnetti Rosen & Thomas, Inc.: Forging Industry Association
Polsinelli Pc: Gt Medical Technologies, Inc.
Polsinelli Pc: Happiest Baby, Inc.
Polsinelli Pc: Icad, Inc.
Polsinelli Pc: Isoray Inc.
Polsinelli Pc: Procept Biorobotics

A message from Natural Allies for Clean Energy:

Natural gas is accelerating America's transition to a clean energy future. The reliability of natural gas enables the quick expansion of low-carbon renewable generation, and by partnering the two together, we can achieve rapid emissions reductions today - without sacrificing reliability and affordability. Academics and researchers agree: with the world's greatest interstate energy highway already in existence, and the ability to transport zero-carbon fuels of the future like green hydrogen, natural gas has the potential to continue to support carbon reduction and help us reach our climate goals faster.

Natural gas -- accelerating our transition to a clean energy future. Learn more at www.naturalalliesforcleanenergy.org

 
 

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