Last week, the Department of Justice’s FARA Unit released a curious advisory opinion.  The new opinion stated that it replaced an advisory opinion released by the Department in December 2019, and it revised the Department’s guidance on the scope of the lawyers’ exemption to FARA.  As far as we can tell, this is the first time that the Department has withdrawn and reinterpreted an advisory opinion.  The newly released opinion also resolves a mystery that has puzzled us since early December 2020, when we first noticed that the Department had quietly, without notice to the public, removed the earlier advisory opinion from its website.

Because the Department does not announce newly posted advisory opinions, we regularly watch the FARA Unit’s advisory opinion webpage for newly posted opinions.  In early December 2020, we noticed that the opposite had occurred: the Unit quietly removed an opinion issued in December 2019 regarding the lawyers’ exemption to FARA.

Even more curious, the next day, December 4, 2020, the Department’s Deputy Assistant Attorney General for the National Security Division, Adam Hickey, delivered major remarks at the American Conference Institute’s second national forum on the Foreign Agents Registration Act.  In his remarks, Mr. Hickey offered an interpretation of the lawyers’ exemption that arguably conflicted with the position in the 2019 opinion that had just been removed from the website.

In the 2019 opinion, the Department concluded that an “in-court representation” of a foreign government would be covered by the lawyers’ exemption to FARA.  The opinion went on, however, to conclude that the lawyers’ exemption would not apply to activities that lawyers commonly undertake related to litigation.  Specifically, the Department stated that FARA registration would be required if the organization were to “provide factual responses to media inquiries about the litigation, issue press releases containing facts regarding the litigation, [or] engage in press conferences regarding” its legal representation of the foreign government.

Mr. Hickey’s remarks in December 2020 echoed some of the 2019 opinion.  For example, he stated that “representation in a proceeding itself clearly qualifies” for the lawyers’ exemption.  Unlike the 2019 opinion, however, Mr. Hickey did not rule out the application of the exemption to ancillary activities, stating that the exemption’s application to other activities “will depend” and would be judged by the “‘bounds of normal legal representation[s],’” quoting from the legislative history of the provision.  Finally, Mr. Hickey specifically stated that “calling a press conference to announce a lawsuit” would be within the lawyers’ exemption.

With the 2019 opinion withdrawn from the FARA website, and Mr. Hickey’s new interpretation publicly announced, we puzzled over the applicable scope of the lawyers’ exemption.  By their terms, advisory opinions only apply to the particular party that seeks the opinion and only for the specific facts advanced in the request.  In this case, the Department’s actions and public statements appeared to be backing away from the earlier interpretation.

In the new opinion, issued on January 5, 2021, the Department helpfully sought to clarify the situation.  First, the FARA Unit acknowledged that it had removed the earlier opinion from the advisory opinion website.  Next, the FARA Unit stated that, although it stood by the 2019 opinion, it believed that a fuller explanation was necessary.  The opinion then referenced newly revised guidance on the FARA Unit’s website, which was updated the same day that the 2019 opinion was withdrawn.  The revised guidance on the lawyers’ exemption now includes the following: “The scope of the exemption, once triggered, may include an attorney’s activities outside those proceedings so long as those activities do not go beyond the bounds of normal legal representation of a client within the scope of that matter.”  Notably, the guidance before this revision did not include a similar discussion of permissible exempt activities outside a legal proceeding.  The new opinion concluded that responding to media inquiries about litigation would typically fall within the scope of the lawyers’ exemption, but a “proactive media engagement . . . more akin to a public relations campaign” typically would not.

Lawyers have long struggled with the application of the lawyers’ exemption to FARA.  By its terms, it provides a blanket exemption for lawyers who are engaged in a legal representation of a disclosed client before a court or agency of the U.S. government, but it contains an important limitation: lawyers cannot seek to influence the U.S. government outside of the bounds of the applicable legal proceeding.  The new guidance and revised advisory opinion helpfully clarify that activities that a lawyer normally undertakes on behalf of clients are exempt, even outside of applicable proceedings.  Of course, the exact scope of “normal” activities is still amorphous, and lawyers should seek specific guidance from FARA practitioners when considering public relations activities and other activities ancillary to defined legal proceedings.

Photo of Brian D. Smith Brian D. Smith

Brian Smith assists clients with challenging public policy matters that combine legal and political risks and opportunities.

Brian represents companies and individuals facing high-profile and high-risk congressional investigations and hearings, and other criminal, civil, and internal investigations that present legal, political, and public…

Brian Smith assists clients with challenging public policy matters that combine legal and political risks and opportunities.

Brian represents companies and individuals facing high-profile and high-risk congressional investigations and hearings, and other criminal, civil, and internal investigations that present legal, political, and public relations risks. He assists companies and executives responding to formal and informal inquiries from Congress and executive branch agencies for documents, information, and testimony. He has extensive experience preparing CEOs and other senior executives to testify before challenging congressional oversight hearings.

Brian develops and executes government relations initiatives for clients seeking actions by Congress and the executive branch. He has led strategic efforts resulting in legislation enacted by Congress and official actions and public engagement at the most senior levels of the U.S. government. He has significant experience in legislative drafting and has prepared multiple bills enacted by Congress and legislation passed in nearly every state legislature.

Prior to joining Covington, Brian served in the White House as Assistant to the Special Counsel to President Clinton. He handled matters related to the White House’s response to investigations, including four independent counsel investigations, a Justice Department task force investigation, two major oversight investigations by the House of Representatives and the Senate, and several other congressional oversight investigations.

Brian is a Professorial Lecturer in Law at the George Washington University Law School.

Photo of Robert Kelner Robert Kelner

Robert Kelner is the chair of Covington’s nationally recognized Election and Political Law Practice Group.  He counsels clients on the full range of political law compliance matters, and defends clients in civil and criminal law enforcement investigations concerning political activity. He also leads

Robert Kelner is the chair of Covington’s nationally recognized Election and Political Law Practice Group.  He counsels clients on the full range of political law compliance matters, and defends clients in civil and criminal law enforcement investigations concerning political activity. He also leads the firm’s prominent congressional investigations practice.

Rob’s political law compliance practice covers federal and state campaign finance, lobbying disclosure, pay to play, and government ethics laws. His expertise includes the Federal Election Campaign Act, Lobbying Disclosure Act, Ethics in Government Act, Foreign Agents Registration Act, and Foreign Corrupt Practices Act.

He is also a leading authority on the arcane rules governing political contributions and marketing activities by registered investment advisers and municipal securities dealers.

Rob’s political law clients include numerous multinational corporations, many of which are household names.  He counsels major banks, hedge funds, private equity funds, trade associations, PACs, political party committees, candidates, lobbying firms, and politically active high-net-worth individuals. He has represented the Republican National Committee, National Republican Congressional Committee, and National Republican Senatorial Committee.  He also advises Presidential political appointees on the complex vetting and confirmation process.

As a partner in the firm’s White Collar Defense & Investigations practice group, Rob regularly defends clients in congressional investigations before virtually every major congressional investigation committee.  He also defends corporations and others in investigations by the Federal Election Commission, the Public Integrity Section of the U.S. Department of Justice, federal Offices of Inspector General, and the House & Senate Ethics Committees.  He has prepared many CEOs and corporate executives for testimony before congressional investigation panels. He regularly leads the Practicing Law Institute’s training program on congressional investigations for in-house lawyers.  In addition, he is frequently retained to lead internal investigations and compliance reviews for major corporate clients concerning lobbying and campaign finance law issues.

Rob has appeared as a commentator on political law matters on The PBS News Hour, CNBC, Fox News, and NPR, and he has been quoted in the New York Times, Washington Post, Wall Street Journal, Associated Press, Legal Times, Roll Call, The Hill, Politico, USA Today, Financial Times, and other publications.

Rob is Chairman of Covington’s Professional Responsibility Committee and a General Counsel of the firm.  He also currently serves as Chairman of the District of Columbia Bar’s Legislative Practice Committee, and he previously was appointed by the President of the American Bar Association to serve on the ABA’s Standing Committee on Election Law.

Photo of Derek Lawlor Derek Lawlor

Derek Lawlor is of counsel in the firm’s Election and Political Law Practice Group. Derek advises corporations, nonprofit organizations, and trade associations on compliance with federal and state lobbying, campaign finance, and government ethics laws.

Clients regularly rely on Derek to assist with…

Derek Lawlor is of counsel in the firm’s Election and Political Law Practice Group. Derek advises corporations, nonprofit organizations, and trade associations on compliance with federal and state lobbying, campaign finance, and government ethics laws.

Clients regularly rely on Derek to assist with their complex questions related to activities and projects that implicate all of these laws. Derek advises federal and state candidates and super PACs on campaign finance and disclosure issues. Derek also represents clients in government investigations and inquiries conducted by the Federal Election Commission, Office of Congressional Ethics, and Congressional Committees and Commissions.

Derek’s representation of clients covers the full range of important political law issues that they face, including:

  • Advising clients on their registration and reporting obligations under the federal Lobbying Disclosure Act, as well as state and local lobbying laws, including helping client organizations evaluate the core questions that arise in this space:
    • Has the organization or any of its employees triggered lobbying registration requirements?
    • What lobbying income, expenditures, issues, or contacts need to be disclosed on lobbying reports?
    • Does procurement or sales activity directed at governmental entities trigger lobbying registration in a particular jurisdiction?
    • What are the best practices for designing a lobbying compliance program?
  • Assisting corporations and trade associations with the establishment and operation of connected PACs, which frequently entails evaluating the following questions:
    • What steps does the organization need to take to start up and register a connected PAC?
    • What are the ongoing reporting requirements under the Federal Election Campaign Act (“FECA”) or state campaign finance laws?
    • Which employees can the organization solicit and what are the rules on conducting a solicitation campaign?
    • What are the limits on making contributions to federal, state, or local candidates, party committees, or other political committees?
    • What are the best practices for designing a PAC compliance program?
  • Evaluating whether a client’s proposed activities might trigger registration under the Foreign Agents Registration Act (“FARA”), and if so, advising on registration and ongoing reporting obligations;
  • Advising federal and state candidates, super PACs, and other political committees on compliance with FECA, FEC regulations and reporting requirements, state campaign finance laws, rules on disclaimers placed on communications, and other political law compliance topics;
  • Counseling individuals who are entering government service, including Senate-confirmed positions, on the various financial disclosure requirements, conflicts of interest considerations, and other ethics law issues they may face;
  • Helping clients establish politically active or policy-focused nonprofit organizations, and proving ongoing support related to tax and political law issues that might arise from their activities; and
  • Advising corporations, nonprofits, and individuals on their proposed donations to candidates, political committees, and other politically active outside groups.

Derek is a Professorial Lecturer in Law at the George Washington University Law School.

Prior to receiving his law degree, Derek worked in the Office of General Counsel at the U.S. House of Representatives.

Photo of Alex Langton Alex Langton

Alexandra Langton is a member of the Election and Political Law Practice Group in the Washington, DC office. She represents clients in high-profile and high-risk congressional investigations, FEC investigations, and other criminal, civil, and internal investigations that present legal, political, and public relations…

Alexandra Langton is a member of the Election and Political Law Practice Group in the Washington, DC office. She represents clients in high-profile and high-risk congressional investigations, FEC investigations, and other criminal, civil, and internal investigations that present legal, political, and public relations risks. She also advises companies, PACs, nonprofits, and individuals on compliance with federal and state campaign finance, ethics, lobbying laws, and vetting matters.

Alexandra has particular expertise in the Foreign Agents Registration Act (“FARA”). She frequently interacts with the FARA Unit of the Department of Justice and advises clients on top-tier FARA compliance programs, including FARA policies, FARA trainings, and FARA filings. Alexandra also represents a number of clients in high-profile civil and criminal FARA enforcement actions.