This Act established a requirement that foreign lobbyists register and give a letter of intent to the Secretary of State. This legislation was designed primarily for political reasons to curtail the spreading of fascist and Nazi propaganda. It was triggered by the rise of violent fascist regimes in Europe at the time of its passage.
This was Title III of the Legislative
Reorganization Act of 1946. It required lobbyists to register with
the Clerk of the House and the Secretary of the Senate. It was designed
to help Congress establish a genuine measure of public opinion.
The legislation contained many loopholes,
and groups began to use the term "public education" to conceal
monies spent on lobbying. In addition, the legislation only applied to
the direct and indirect (or "grassroots") lobbying of legislators
and did not cover lobbying of the executive branch and regulatory commissions
during the rule making process. (Ornstein, 101-02)
Furthermore, the Act only empowered the Justice
Department to investigate a potential violation if a complaint is filed.
As of 1978, there was only one conviction under this legislation. (Ornstein,
104)
Moreover, reporting of lobbying is often
quite distorted. Business enterprises are able to include lobbying activities
as part of regular business expenses and therefore do not necessarily report
them as lobbying. Public interest groups, established solely for the purpose
of political action, report most of their activities as lobbying. For this
reason, reports often greatly underestimate the amount of money being spent
by business interests on lobbying activities.
This Supreme Court decision further narrowed
the potential application of the 1946 Lobbying Registration Act. The Supreme
Court held that the legislation only applied to outside groups or individuals
who received money for lobbying. In other words, only private lobbying
firms or contract lobbyists needed to register. This decision left uncovered
the activities of interests that hired people within their own corporation,
union, or other group to lobby.
The ruling further narrowed the legislation
by limiting the definition of lobbying to the direct lobbying of representatives
and senators. Grassroots efforts and the lobbying of congressional staffers
were exempt from regulation. (Schlozman, 320)
Due to extensive foreign lobbying on the
question of sugar quotas, the Senate Foreign Relations Committee began
holding hearings on the reform of the Foreign Agents Registration Act (FARA)
in 1961. After many years of hearings, FARA was amended in 1966. (Ornstein,
105)
The basic purpose of these amendments was
to change the focus of this legislation from the squelching of potentially
subversive political activities to the registration of lobbyists of foreign
economic interests.
There have been several attempts at increasing the registration requirements for lobbyists. Most notably, several tries were made in 1976 and 1977 in the aftermath of the Watergate scandal. The Lobbying Disclosure Acts of 1976 and 1977 would have expanded the registration requirements to include all individuals who lobbied, regardless of the origin of their income. It would have also extended the scope of registration to include "grassroots" or indirect lobbying--that is, persuading others to persuade members of Congress of one's position. Compromises between the House and Senate versions of these bills failed to be reached in conference committee before the end of their respective legislative sessions, and these measures died. (Ornstein, 106-09)
The 1992 presidential campaign's focus
on "cleaning up Congress," the influence of Ross Perot's diatribes
on "lobbyists in $200 Italian loafers," and the popularity of
Jerry Brown's anti-lobbyist message had a great impact on Congress. During
the 1993 session, ten bills were filed with the intent of closing loopholes
in the 1946 Registration Act and better regulating and disclosing lobbying
activities.
The two most promising pieces of proposed
legislation are S. 349 and H.R. 823. Both are entitled The
Lobbying Disclosure Act of 1993. The major provisions of this legislation
include expanding disclosure requirements to those who lobby the executive
branch and congressional staffers; the creation of an Office of Lobbying
Registration and Public Disclosure within the Justice Department; and disclosure
of clients, foreign affiliations, issues to be lobbied, and monies spent
on lobbying. Those supplying written testimony to committees and regulatory
commissions would, however, be exempt from such registration.
S. 349 was passed by the Senate in May 1993.
It was then sent to the House where it was referred to the Judiciary Committee,
along with H.R. 823. In October, the Speaker of the House appointed a task
force on the subject-- an action which some saw as a possible delaying
tactic.
One aspect of this legislation which may
prove a sticking point is a provision requiring lobbyists to report all
gifts given to lawmakers and their staffs. (The Washington Post
)
"Ban All Gifts to Members of Congress." The Washington Post, Nov. 7, 1993.
Ornstein, Norman J., and Elder, Shirley. Interest Groups, Lobbying and Policy Making. Washington, DC: Congressional Quarterly Press, 1978.
Schlozman, Kay Lehman, and Tierney, John T. Organized Interests and American Democracy. New York, NY: Harper & Row, Publishers, 1986.
"Senate Passes Bill, 95-2, to Overhaul Lobbying Laws." The Washington Post, May 7, 1993.
U.S. v. Harris (347 U.S. 612) 1954.