Friday, September 23, 2022

A look at the flurry of foreign influence bills released this week

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Sep 23, 2022 View in browser
 
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By Caitlin Oprysko

Presented by

the National Confectioners Association

With Daniel Lippman

FARA FRIDAY: The past few days have seen a flurry of new bills introduced with the goal of shedding more light on foreign influence efforts in the U.S. (relatively speaking, at least). In addition to a proposal from Sens. Gary Peters (D-Mich.) and Chuck Grassley (R-Iowa) that would introduce a new layer of oversight on lobbyists seeking to take advantage of FARA's Lobbying Disclosure Act exemption, a bipartisan quintet of senators introduced another bill that would revoke that exemption and one other for operatives working on behalf of U.S. adversaries.

— The Preventing Adversary Influence, Disinformation and Obscured Foreign Financing Act, or PAID OFF Act, is being spearheaded by Sen. John Cornyn (R-Texas), along with Sens. Marco Rubio (R-Fla.), Sheldon Whitehouse (D-R.I.), Bill Hagerty (R-Tenn.) and Deb Fischer (R-Neb.). Under current law, those working to further "the bona fide trade or commerce" of a foreign client, or whose work only indirectly promotes the public or political interests of a foreign government or political party, are exempt from registering as foreign agents. So are those registered to lobby under the more opaque reporting requirements of the LDA.

— But Cornyn's bill would require registration under FARA — even under those circumstances — for lobbyists representing clients based in countries deemed by the Commerce Department to be foreign adversaries, a list that currently comprises China, Cuba, Iran, North Korea, Russia and Venezuela, headed by Nicolás Maduro, who the Biden administration doesn't recognize as the legitimate leader.

— While the Justice Department signaled last year that it could end up narrowing the so-called commercial exemption as part of its first new updates to the foreign agents law in decades, Jay Bratt, the department's head of counterintelligence and export controls, stressed to FARA practitioners at the time that DOJ is constrained in what it can to without additional legislation.

— And since then, Russia's invasion of Ukraine earlier has prompted new scrutiny of the LDA exemption, which has allowed lobbyists for Russian entities to keep hidden the full extent of their influence efforts.

— On Thursday, the lawmakers (sans Rubio) submitted their bill as a potential amendment to the NDAA, along with language directing the Commerce secretary to periodically share the list of foreign adversaries "and any relevant information relating to" the adversaries with the Justice Department.

— Hagerty, a former ambassador to Japan, said in a statement that "for too long, exemptions in U.S. law have allowed many persons in the United States who are paid to actively promote the interests of Communist China and other strategic adversaries to avoid registering as foreign agents." Rubio, meanwhile, asserted in a statement that "if a lobbyist or consultant wants to work with our adversaries to subvert American interests, we deserve to know about it."

— Another bill introduced this week is aimed at requiring greater transparency from think tanks that accept funding from foreign governments. This follows the revelation that former Brookings Institution President and retired Marine Gen. John Allen was investigated for potentially lobbying on Qatar's behalf illegally while a fellow at the venerated think tank that's received millions in funding from the Qatari government.

— Rep. Jack Bergman (R-Mich.) is shepherding the bill, which would require think tanks and other nonprofits seeking to shape U.S. policy or public opinion to disclose to DOJ when they receive funding from foreign principals. The bill also would make public contracts or agreements they enter into with foreign principals within 90 days. It would direct DOJ to then make those disclosures available in an online database similar to FARA's.

Happy Friday and welcome to PI. Is your boss planning to introduce a new foreign influence-related bill? Let me know: coprysko@politico.com. And be sure to follow me on Twitter: @caitlinoprysko.

A message from the National Confectioners Association:

America's chocolate and candy companies are providing more choice and portion guidance options for consumers seeking to manage their sugar intake – whether that's buying candy for family celebrations, picking up a treat to share with friends or enjoying a treat on the way out of the store. From beloved classics to new offerings like low/zero sugar and organic, the confectionery industry is meeting consumers where they want to be met. Learn more at AlwaysATreat.com.

 

A NEW FRONT IN GOP 'WOKE CAPITALISM' CRUSADE: "A move by Visa and other major credit card companies to identify purchases at gun stores has inflamed Republican lawmakers, who warn that it will lead to widespread corporate surveillance and the suppression of Second Amendment rights," POLITICO's Sam Sutton reports. "And they're poised to make a campaign issue out of it."

— "The new merchant code would identify retailers that primarily sell firearms and ammunition. While it stops short of pinpointing what's been purchased, Democrats and activists pushing for gun restrictions say it will help law enforcement spot suspicious transactions that contribute to mass shootings and illegal firearms trafficking."

— "With just over six weeks to go before the midterm elections, GOP officials are seizing on the collection of gun store sales data as an example of what they term 'woke capitalism,' opening a new front in the fight over the role businesses should play in driving social policy."

— "State officials are weighing in, too. Environmental, social and governance — or ESG — policies have 'been weaponized in a way that is very concerning to me,' said Florida's Chief Financial Officer Jimmy Patronis, a Republican who's seeking reelection. Patronis earlier this week threatened the credit card companies with the specter of GOP-led legislation targeting their operations if it's determined that the code has 'a chilling effect' on firearm purchases."

E-COMMERCE COUNTERFEITS BILL GETS ANOTHER SHOT IN NDAA: After legislation to cut down a surge of counterfeit and stolen goods online was dropped from the economic competitiveness package that ultimately became the CHIPS and Science Act, backers of the INFORM Consumers Act are pushing for the measure's inclusion in the National Defense Authorization Act.

— This week, Sens. Bill Cassidy (R-La.) and Dick Durbin (D-Ill.) moved to attach the bill — which would require online marketplaces to take steps to verify the identity of high-volume sellers and provide some of that information to customers — as an amendment to the annual defense policy legislation, which as one of the few remaining bills Congress must pass, makes it into an attractive target for lobbyists' outstanding legislative priorities year after year.

— The INFORM Consumers Act drew support from a wide range of stakeholders earlier this year during negotiations on the economic competitiveness bill, including from e-commerce platforms that had initially been skeptical about the anti-counterfeits legislation.

— "Including this legislation within the 2023 NDAA is a win for transparency and accountability and is a crucial step in curbing the growth of organized retail crime," Michael Hanson, the Retail Industry Leaders Association's senior executive vice president for public affairs, said in a statement.

ON TAP FOR A GOP-CONTROLLED HOUSE?: "Some key House Republicans are calling for the repeal of Democrats' newly-passed drug pricing measure if the GOP flips control of one or both chambers of Congress next year," Axios' Peter Sullivan and Victoria Knight report.

— "'If the courts haven't gotten to it beforehand, yeah we've got to do our job and try to defend the Constitution,' Rep. Morgan Griffith (R-Va.) told Axios, saying the law is an 'unlawful taking.' Rep. Kevin Brady (R-Texas), the top Republican on the House Ways and Means Committee, indicated repealing the drug pricing law is a likely agenda item. 'Because those drug provisions are so dangerous, by discouraging investment in life-saving cures, I would imagine that will be a top priority for Republicans in the new session,' he said."

— The agenda House Republicans unveiled today "isn't heavy on health policy, but does criticize Democrats' drug pricing law." Still, "not all Republicans were adamant about tackling the issue in a divided Washington. 'We need to be realistic,' Rep. Brett Guthrie (R-Ky.), the top Republican on the Energy and Commerce health subcommittee, told Axios. 'I mean you've got to get the president to sign it,' he added."

— "He pointed to a more modest Republican drug pricing measure as an alternative, and noted there are some areas of bipartisan agreement like capping seniors out-of-pocket costs in Medicare."

 

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Jobs Report

— NGO coalition InterAction has named Miriam Sapiro as its next president and chief executive officer. She's currently a partner at FGS Global.

Facebook whistleblower Frances Haugen is launching a new nonprofit, Beyond the Screen, in an effort to identify social media issues and develop solutions, Morning Tech reports.

— Former Sen. Max Baucus (D-Mont.) and former Obama adviser David Plouffe have joined Binance's global advisory board, to advise the crypto exchange "on some of the most complex regulatory, political, and social issues the entire crypto industry faces as it grows and evolves at a fast pace," Binance said.

Tara DiJulio was named chief communications officer for GE Aerospace. She was previously vice president for communications at GE and is a Senate GOP alum.

Kevin Ryan has joined gig app coalition Flex as director of policy. He was most recently vice president for policy communications at CTIA — The Wireless Association.

Courtney Titus Brooks and Jeff Brabant have been promoted to directors of federal government relations at the National Federation of Independent Business. Both have worked at NFIB since 2018, most recently as senior managers of federal government relations.

Ryan King is joining the Vogel Group as a principal in its Nashville office and Kendall Schell is joining as director of operations for the Nashville office. King was most recently vice president of government affairs at the Tennessee Chamber of Commerce and Industry and Schell is a longtime Republican fundraiser in the state.

Hayley Matz Meadvin has returned to Precision Strategies to be an executive vice president. She most recently was a senior adviser at the Department of Education.

 

A message from the National Confectioners Association:

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New Joint Fundraisers

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New Lobbying Registrations

Brownstein Hyatt Farber Schreck, LLP: N-Drip
Fgs Global (US) LLC (Fka Fgh Holdings LLC): Ceres, Inc.
Good Ground International LLC: Sievako
Greenberg Traurig, LLP: American Seniors Housing Association
Mccaulley&Company: Lorain County Board Of County Commissioners

New Lobbying Terminations

None.

A message from the National Confectioners Association:

In 2017, America's leading chocolate and candy companies joined forces in a landmark agreement to help consumers manage their sugar intake. In a commitment to Partnership for a Healthier America, these companies set an ambitious goal to provide more transparency, create more portion guidance options in innovative packaging and educate consumers about how unique products like chocolate and candy can be an occasional treat in a balanced lifestyle. The companies exceeded their commitment, empowering consumers to make informed choices and driving directional alignment within the broader confectionery industry. In fact, 85% of chocolate and candy sold today comes in packaging that contains 200 calories or less per pack – whether that's individually wrapped products or multipacks that contain smaller packages inside. Learn more at AlwaysATreat.com.

 
 

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