HR 9140

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IN THE HOUSE OF REPRESENTATIVES

October 4, 2022

Mr. Wilson of South Carolina (for himself, Mr. Cohen, Mr. Banks, and Ms. Slotkin) introduced the following bill; which was referred to the Committee on the Judiciary

A BILL

To prohibit persons from accepting compensation for serving as an agent of, or lobbyist for, a foreign adversary, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the “Stop Helping Adversaries Manipulate Everything Act” or the “SHAME Act”.

SEC. 2. PROHIBITING AGENTS OF FOREIGN ADVERSARIES FROM RECEIVING COMPENSATION FOR SERVICES.

(a) Prohibition.—The Foreign Agents Registration Act of 1938 (22 U.S.C. 611 et seq.) is amended by inserting after section 1 the following new section:

“SEC. 1A. RESTRICTIONS ON AGENTS OF FOREIGN ADVERSARIES.

“(a) Prohibiting Acceptance of Compensation.—No person may receive direct or indirect compensation in any form, including intangible or in-kind, for serving as the agent of—

“(1) a foreign principal which is a foreign adversary;

“(2) the ruling party of a foreign principal which is a foreign adversary; or

“(3) an agent or instrumentality of an entity that is described in paragraph (1) or (2).

“(b) Deeming Certain Persons as Foreign Principals Which Are Foreign Agents.—A person shall be considered for purposes of this Act to be an agent of a foreign principal which is a foreign adversary if the person is engaged to serve as an agent by any of the following:

“(1) A senior foreign political figure of a foreign adversary.

“(2) A corporation limited liability company, or similar entity beneficially owned (as described in section 5336(a)(3) of title 31, United States Code) by a senior foreign political figure of a foreign adversary.

“(3) A corporation, limited liability company, or similar entity that is under the direction or control in any way, whether directly or indirectly, and including through a third party, of a senior foreign political figure of a foreign adversary.

“(4) Any entity owned or controlled by an entity described in paragraph (1) or (2).

“(c) Penalty.—In addition to any other penalty under this Act, any person who violates subsection (a)—

“(1) shall pay to the United States an amount equal to the total compensation the person received in violation of subsection (a); and

“(2) shall be subject to a fine of not more than twice the amount paid under paragraph (1).

“(d) Definitions.—In this section—

“(1) the term ‘foreign adversary’, with respect to the service of a person as an agent—

“(A) means a foreign government or foreign nongovernment person engaged in a long-term pattern or serious instance of conduct significantly adverse to the national security of the United States or its allies or the security and safety of persons of the United States; and

“(B) includes the government of each country that is treated as a foreign adversary by the Secretary of Commerce pursuant to any Executive order, regulation, or law which is in effect at the time the person serves as the agent of that country; and

“(2) the term ‘senior foreign political figure’ has the meaning given such term in section 1010.605 of title 31, Code of Federal Regulations, or any successor regulation.”.

(b) Requiring Separate Registration Statements.—Section 2 of such Act (22 U.S.C. 612) is amended by adding at the end of the following new subsection:

“(h) Separate Statements Required for Agents of Foreign Adversaries.—An agent of a foreign principal which is a foreign adversary as determined under section 1A, shall submit separate registration statements and supplements under this section with respect to the agent’s service on behalf of such a foreign principal.”.

SEC. 3. PROHIBITING LOBBYISTS FROM RECEIVING COMPENSATION FOR LOBBYING ACTIVITIES ON BEHALF OF FOREIGN ADVERSARIES.

(a) Prohibition.—The Lobbying Disclosure Act of 1995 (2 U.S.C. 1601) is amended by inserting after section 5 the following new section:

“SEC. 5A. PROHIBITING ACCEPTANCE OF COMPENSATION FOR LOBBYING ACTIVITIES ON BEHALF OF FOREIGN ADVERSARIES.

“(a) Prohibition.—No person may receive direct or indirect compensation in any form, including tangible or in-kind, for carrying out lobbying activities on behalf of a client which is—

“(1) a foreign adversary;

“(2) the ruling party of a foreign adversary;

“(3) an agent or instrumentality of an entity described in paragraph (1) or (2); or

“(4) any entity owned or controlled by an entity described in paragraph (1) or (2).

“(b) Deeming Certain Persons To Be Carrying Out Lobbying Activities.—A person shall be considered for purposes of this section to be carrying out lobbying activities on behalf of a client which is a foreign adversary if the person is engaged to carry out such activities by any of the following:

“(1) A senior foreign political figure of a foreign adversary.

“(2) A corporation, limited liability company, or similar entity beneficially owned (as described in section 5336(a)(3) of title 31, United States Code) by a senior foreign political figure of a foreign adversary.

“(3) A corporation, limited liability company, or similar entity that is under the direction or control in any way, whether directly or indirectly and including through a third party, of a senior foreign political figure of a foreign adversary.

“(c) Penalty.—In addition to any other penalty under this Act, any person who violates subsection (a)—

“(1) shall pay to the United States an amount equal to the total compensation the person received in violation of subsection (a); and

“(2) shall be subject to a fine of not more than twice the amount paid under paragraph (1).

“(d) Definitions.—In this section—

“(1) the term ‘foreign adversary’, with respect to the service of a person who carries out lobbying activities—

“(A) means a foreign government or foreign nongovernment person engaged in a long-term pattern or serious instance of conduct significantly adverse to the national security of the United States or its allies or the security and safety of persons of the United States; and

“(B) during the seven-year period beginning on the date of the enactment of the SHAME Act, includes the government of each country, that as of January 1, 2022, was determined by the Secretary of Commerce to be a ‘foreign adversary’ pursuant to Executive Order 13873; and

“(2) the term “senior foreign political figure” has the meaning given such term in section 1010.605 of title 31, Code of Federal Regulations, or any successor regulation.”.

(b) Requiring Separate Registration Statements.—Section 5 of such Act (2 U.S.C. 1604) is amended by adding at the end of the following new subsection:

“(f) Separate Statements Required for Lobbying Activities on Behalf of Foreign Adversaries.—A registrant who carries out lobbying activities on behalf of a client which is a foreign adversary as determined under section 5A, shall submit separate registration statements and supplements under this section with respect to the registrant’s service on behalf of such a foreign principal.”. <all>