[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1488 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 1488
To amend the Foreign Agents Registration Act of 1938, as amended, to
clarify the exemption relating to commercial activities, to grant the
Attorney General authority to issue civil investigative demands under
that Act, and to create civil penalties for failure to meet the
registration requirements under that Act, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 10, 2025
Mr. Blumenthal 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, as amended, to
clarify the exemption relating to commercial activities, to grant the
Attorney General authority to issue civil investigative demands under
that Act, and to create civil penalties for failure to meet the
registration requirements under that Act, 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 ``Sovereign Wealth Fund Transparency
Act''.
SEC. 2. CLARIFICATION OF COMMERCIAL EXEMPTION.
Section 3 of the Foreign Agents Registration Act of 1938, as
amended (22 U.S.C. 613), is amended, in the matter preceding subsection
(a), by inserting ``, except that the exemptions under paragraphs (1)
and (2) of subsection (d) shall not apply to any agent of a foreign
principal whose activities promote the public or political interests of
a government of a foreign country or a foreign political party
(including any and all activities undertaken on behalf of a sovereign
wealth fund)'' before the colon at the end.
SEC. 3. AUTHORIZING THE ATTORNEY GENERAL TO ISSUE CIVIL INVESTIGATIVE
DEMANDS TO PROMOTE ENFORCEMENT OF DISCLOSURE REQUIREMENTS
FOR AGENTS OF FOREIGN PRINCIPALS.
(a) Civil Investigative Demands Concerning Registration of Agents
of Foreign Principals.--The Foreign Agents Registration Act of 1938, as
amended (22 U.S.C. 611 et seq.) is amended--
(1) by redesignating sections 9 through 14 as sections 10
through 15; and
(2) by inserting after section 8 the following:
``SEC. 9. CIVIL INVESTIGATIVE DEMANDS CONCERNING REGISTRATION OF AGENTS
OF FOREIGN PRINCIPALS.
``(a) Authority of the Attorney General.--
``(1) Authority described.--Whenever the Attorney General
or the Attorney General's designee has reason to believe that
any person may be in possession, custody, or control of any
documentary material, or may have any information, relevant to
an investigation under this Act, the Attorney General or
designee may, prior to the institution of a civil or criminal
proceeding by the United States thereon, issue in writing, and
cause to be served upon such person, a civil investigative
demand requiring such person to produce such documentary
material for inspection and copying or reproduction, to answer
in writing written interrogatories with respect to such
documentary material or information, to give oral testimony
concerning such documentary material or information, or to
furnish any combination of such material, answers, or
testimony. Whenever a civil investigative demand is an express
demand for any product of discovery, the Attorney General or
designee shall cause to be served, in any manner authorized by
this section, a copy of such demand upon the person from whom
the discovery was obtained and notify the person to whom such
demand is issued of the date on which such copy was served.
``(2) Limiting individuals who may serve as designees.--The
Attorney General may not designate any individual other than
the Assistant Attorney General for National Security or a
Deputy Attorney General to carry out the authority provided
under this section.
``(b) Contents and Deadlines.--
``(1) In general.--Each demand issued under subsection (a)
shall--
``(A) state the nature of the conduct constituting
the alleged violation of this Act that is under
investigation and the provision of this Act alleged to
be violated;
``(B) if such demand is for the production of
documentary material--
``(i) describe each class of documentary
material to be produced with such definiteness
and certainty as to permit such material to be
fairly identified;
``(ii) prescribe a return date for each
such class that will provide a reasonable
period of time within which the material so
demanded may be assembled and made available
for inspection and copying or reproduction; and
``(iii) identify the custodian to whom such
material shall be made available;
``(C) if such demand is for answers to written
interrogatories--
``(i) set forth with specificity the
written interrogatories to be answered;
``(ii) prescribe dates at which time
answers to written interrogatories shall be
submitted; and
``(iii) identify the custodian to whom such
answers shall be submitted; and
``(D) if such demand is for the giving of oral
testimony--
``(i) prescribe a date, time, and place at
which oral testimony shall be commenced;
``(ii) identify an investigator who shall
conduct the examination and the custodian to
whom the transcript of such examination shall
be submitted;
``(iii) specify that such attendance and
testimony are necessary to the conduct of the
investigation;
``(iv) notify the person receiving the
demand of the right to be accompanied by an
attorney and any other representative; and
``(v) describe the general purpose for
which the demand is being issued and the
general nature of the testimony, including the
primary areas of inquiry, which will be taken
pursuant to the demand.
``(2) Product of discovery.--Any civil investigative demand
issued under this section that is an express demand for any
product of discovery shall not be returned or returnable until
20 days after a copy of such demand has been served upon the
person from whom the discovery was obtained.
``(3) Date.--The date prescribed for the commencement of
oral testimony pursuant to a civil investigative demand issued
under subsection (a) shall be a date that is not less than 7
days after the date on which demand is received, unless the
Attorney General or the Attorney General's designee determines
that exceptional circumstances are present which warrant the
commencement of such testimony within a lesser period of time.
``(4) Notification.--The Attorney General shall not
authorize the issuance under this section of more than 1 civil
investigative demand for oral testimony by the same person
unless the person requests otherwise or unless the Attorney
General, after investigation, notifies that person in writing
that an additional demand for oral testimony is necessary.
``(c) Protected Material or Information.--
``(1) In general.--A civil investigative demand issued
under subsection (a) may not require the production of any
documentary material, the submission of any answers to written
interrogatories, or the giving of any oral testimony if such
material, answers, or testimony would be protected from
disclosure under--
``(A) the standards applicable to subpoenas or
subpoenas duces tecum issued by a court of the United
States in aid of a grand jury investigation; or
``(B) the standards applicable to discovery
requests under the Federal Rules of Civil Procedure, to
the extent that the application of such standards to
any such demand is appropriate and consistent with the
provisions and purposes of this Act.
``(2) Effect on other orders, rules, and laws.--Any such
demand that is an express demand for any product of discovery
supersedes any inconsistent order, rule, or provision of law
(other than this Act) preventing or restraining disclosure of
such product of discovery to any person. Disclosure of any
product of discovery pursuant to any such express demand does
not constitute a waiver of any right or privilege, including
without limitation any right or privilege which may be invoked
to resist discovery of trial preparation materials, to which
the person making such disclosure may be entitled.
``(d) Service; Jurisdiction.--
``(1) By whom served.--Any civil investigative demand
issued under subsection (a) may be served by an appropriate
investigator, or by a United States marshal or deputy marshal,
at any place within the territorial jurisdiction of any court
of the United States.
``(2) Service in foreign nations.--Any such demand or
petition filed under subsection (k) may be served upon any
person who is not to be found within the territorial
jurisdiction of any court of the United States, in such manner
as the Federal Rules of Civil Procedure prescribe for service
in a foreign country. To the extent that the courts of the
United States can assert jurisdiction over any such person
consistent with due process, the United States District Court
for the District of Columbia shall have the same jurisdiction
to take any action respecting compliance with this Act by any
such person that such court would have if such person were
personally within the jurisdiction of such court.
``(e) Service Upon Legal Entities and Natural Persons.--
``(1) Legal entities.--Service of any civil investigative
demand issued under subsection (a) or of any petition filed
under subsection (k) may be made upon a partnership,
corporation, association, or other legal entity by--
``(A) delivering a duly executed copy of such
demand or petition to any partner, executive officer,
managing agent, or general agent of the partnership,
corporation, association, or entity, or to any agent
thereof authorized by appointment or by law to receive
service of process on behalf of such partnership,
corporation, association, or entity;
``(B) delivering a duly executed copy of such
demand or petition to the principal office or place of
business of the partnership, corporation, association,
or entity to be served; or
``(C) depositing an executed copy of such demand or
petition in the United States mails by registered or
certified mail, with a return receipt requested, duly
addressed to such partnership, corporation,
association, or entity at its principal office or place
of business.
``(2) Natural persons.--Service of any such demand or
petition may be made upon any natural person by--
``(A) delivering a duly executed copy of such
demand or petition to the person to be served; or
``(B) depositing an executed copy of such demand or
petition in the United States mails by registered or
certified mail, with a return receipt requested, duly
addressed to such person at the person's residence or
principal office or place of business.
``(f) Proof of Service.--A verified return by the individual
serving any civil investigative demand under subsection (a) or any
petition filed under subsection (k) setting forth the manner of such
service shall be proof of such service. In the case of service by
registered or certified mail, such return shall be accompanied by the
return post office receipt of delivery of such demand.
``(g) Documentary Material.--
``(1) Sworn certificates.--The production of documentary
material in response to a civil investigative demand served
pursuant to this section shall be made under a sworn
certificate, in such form as the demand designates, by--
``(A) in the case of a natural person, the person
to whom the demand is directed; or
``(B) in the case of a person other than a natural
person, a person having knowledge of the facts and
circumstances relating to such production and
authorized to act on behalf of such person,
to the effect that all of the documentary material required by
the demand and in the possession, custody, or control of the
person to whom the demand is directed has been produced and
made available to the custodian.
``(2) Production of materials.--Any person upon whom any
civil investigative demand for the production of documentary
material has been served under this section shall make such
material available for inspection and copying to the
investigator identified in such demand at the principal place
of business of such person, or at such other place as the
investigator and the person thereafter may agree and prescribe
in writing, or as the court may direct under subsection (k)(1).
Such material shall be made so available on the return date
specified in such demand, or on such later date as the
investigator may prescribe in writing. Such person may, upon
written agreement between the person and the investigator,
substitute copies for originals of all or any part of such
material.
``(h) Interrogatories.--
``(1) Answers.--Each interrogatory in a civil investigative
demand served pursuant to this section shall be answered
separately and fully in writing under oath, and it shall be
submitted under a sworn certificate, in such form as the demand
designates, by--
``(A) in the case of a natural person, the person
to whom the demand is directed; or
``(B) in the case of a person other than a natural
person, the person or persons responsible for answering
each interrogatory.
``(2) Contents of certificates.--The certificate submitted
under paragraph (1) shall state that all information required
by the demand and in the possession, custody, control, or
knowledge of the person to whom the demand is directed has been
submitted. To the extent that any information is not furnished,
the information shall be identified and reasons set forth with
particularity regarding the reasons why the information was not
furnished.
``(3) Objections.--If any interrogatory is objected to, the
reasons for the objection shall be stated in the certificate
instead of an answer.
``(i) Oral Examinations.--
``(1) Procedures.--The examination of any person pursuant
to a civil investigative demand for oral testimony served under
this section shall be taken before an officer authorized to
administer oaths and affirmations by the laws of the United
States or of the place where the examination is held. The
officer before whom the testimony is to be taken shall put the
witness on oath or affirmation and shall personally, or by
someone acting under the direction of the officer and in the
officer's presence, record the testimony of the witness. The
testimony shall be taken stenographically and transcribed. When
the testimony is fully transcribed, the officer before whom the
testimony is taken shall promptly transmit a copy of the
transcript of the testimony to the custodian. This subsection
shall not preclude the taking of testimony by any means
authorized by, and in a manner consistent with, the Federal
Rules of Civil Procedure.
``(2) Persons present.--The investigator conducting the
examination shall exclude from the place where the examination
is held all persons except the person giving the testimony, the
attorney for and any other representative of the person giving
the testimony, the attorney for the Government, any person who
may be agreed upon by the attorney for the Government and the
person giving the testimony, the officer before whom the
testimony is to be taken, and any stenographer taking such
testimony.
``(3) Where testimony taken.--The oral testimony of any
person taken pursuant to a civil investigative demand served
under this section shall be taken in the judicial district of
the United States within which such person resides, is found,
or transacts business, or in such other place as may be agreed
upon by the investigator conducting the examination and such
person.
``(4) Transcript of testimony.--When the testimony is fully
transcribed, the investigator or the officer before whom the
testimony is taken shall afford the witness (who may be
accompanied by counsel) a reasonable opportunity to examine and
read the transcript, unless such examination and reading are
waived by the witness. Any changes in form or substance which
the witness desires to make shall be entered and identified
upon the transcript by the officer or the investigator with a
statement of the reasons given by the witness for making such
changes. The transcript shall then be signed by the witness,
unless the witness in writing waives