CITE-

31 USC Sec. 1352 01/02/2006

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TITLE 31 - MONEY AND FINANCE

SUBTITLE II - THE BUDGET PROCESS

CHAPTER 13 - APPROPRIATIONS

SUBCHAPTER III - LIMITATIONS, EXCEPTIONS, AND PENALTIES

-HEAD-

Sec. 1352. Limitation on use of appropriated funds to influence

certain Federal contracting and financial transactions

-STATUTE-

(a)(1) None of the funds appropriated by any Act may be expended

by the recipient of a Federal contract, grant, loan, or cooperative

agreement to pay any person for influencing or attempting to

influence an officer or employee of any agency, a Member of

Congress, an officer or employee of Congress, or an employee of a

Member of Congress in connection with any Federal action described

in paragraph (2) of this subsection.

\(2\) The prohibition in paragraph (1) of this subsection applies

with respect to the following Federal actions:

\(A\) The awarding of any Federal contract.

\(B\) The making of any Federal grant.

\(C\) The making of any Federal loan.

\(D\) The entering into of any cooperative agreement.

\(E\) The extension, continuation, renewal, amendment, or

modification of any Federal contract, grant, loan, or cooperative

agreement.

(b)(1) Each person who requests or receives a Federal contract,

grant, loan, or cooperative agreement from an agency or requests or

receives from an agency a commitment providing for the United

States to insure or guarantee a loan shall file with that agency,

in accordance with paragraph (4) of this subsection -

\(A\) a written declaration described in paragraph (2) or (3) of

this subsection, as the case may be; and

\(B\) copies of all declarations received by such person under

paragraph (5).

\(2\) A declaration filed by a person pursuant to paragraph (1)(A)

of this subsection in connection with a Federal contract, grant,

loan, or cooperative agreement shall contain -

\(A\) the name of any registrant under the Lobbying Disclosure

Act of 1995 who has made lobbying contacts on behalf of the

person with respect to that Federal contract, grant, loan, or

cooperative agreement; and

\(B\) a certification that the person making the declaration has

not made, and will not make, any payment prohibited by subsection

(a).

\(3\) A declaration filed by a person pursuant to paragraph (1)(A)

of this subsection in connection with a commitment providing for

the United States to insure or guarantee a loan shall contain the

name of any registrant under the Lobbying Disclosure Act of 1995

who has made lobbying contacts on behalf of the person in

connection with that loan insurance or guarantee.

\(4\) A person referred to in paragraph (1)(A) of this subsection

shall file a declaration referred to in that paragraph -

\(A\) with each submission by such person that initiates agency

consideration of such person for award of a Federal contract,

grant, loan, or cooperative agreement, or for grant of a

commitment providing for the United States to insure or guarantee

a loan;

\(B\) upon receipt by such person of a Federal contract, grant,

loan, or cooperative agreement or of a commitment providing for

the United States to insure or guarantee a loan, unless such

person previously filed a declaration with respect to such

contract, grant, loan, cooperative agreement or commitment

pursuant to clause (A); and

\(C\) at the end of each calendar quarter in which there occurs

any event that materially affects the accuracy of the information

contained in any declaration previously filed by such person in

connection with such Federal contract, grant, loan, cooperative

agreement, loan insurance commitment, or loan guaranty

commitment.

\(5\) Any person who requests or receives from a person referred to

in paragraph (1) of this subsection a subcontract under a Federal

contract, a subgrant or contract under a Federal grant, a contract

or subcontract to carry out any purpose for which a particular

Federal loan is made, or a contract under a Federal cooperative

agreement shall be required to file with the person referred to in

such paragraph a written declaration referred to in clause (A) of

such paragraph.

\(6\) The Director of the Office of Management and Budget, after

consulting with the Secretary of the Senate and the Clerk of the

House of Representatives, shall issue guidance for agency

implementation of, and compliance with, the requirements of this

section.

(c)(1) Any person who makes an expenditure prohibited by

subsection (a) of this section shall be subject to a civil penalty

of not less than \$10,000 and not more than \$100,000 for each such

expenditure.

(2)(A) Any person who fails to file or amend a declaration

required to be filed or amended under subsection (b) of this

section shall be subject to a civil penalty of not less than

\$10,000 and not more than \$100,000 for each such failure.

\(B\) A filing of a declaration of a declaration amendment on or

after the date on which an administrative action for the imposition

of a civil penalty under this subsection is commenced does not

prevent the imposition of such civil penalty for a failure

occurring before that date. For the purposes of this subparagraph,

an administrative action is commenced with respect to a failure

when an investigating official determines in writing to commence an

investigation of an allegation of such failure.

\(3\) Sections 3803 (except for subsection (c)), 3804, 3805, 3806,

3807, 3808, and 3812 of this title shall be applied, consistent

with the requirements of this section, to the imposition and

collection of civil penalties under this subsection.

\(4\) An imposition of a civil penalty under this subsection does

not prevent the United States from seeking any other remedy that

the United States may have for the same conduct that is the basis

for the imposition of such civil penalty.

(d)(1)(A) Subsection (a)(1) of this section does not apply in the

case of a payment of reasonable compensation made to an officer or

employee of a person requesting or receiving a Federal contract,

grant, loan, or cooperative agreement to the extent that the

payment is for agency and legislative liaison activities not

directly related to a Federal action referred to in subsection

(a)(2) of this section.

\(B\) Subsection (a)(1) of this section does not prohibit any

reasonable payment to a person in connection with, or any payment

of reasonable compensation to an officer or employee of a person

requesting or receiving, a Federal contract, grant, loan, or

cooperative agreement or an extension, continuation, renewal,

amendment, or modification of a Federal contract, grant, loan, or

cooperative agreement if the payment is for professional or

technical services rendered directly in the preparation,

submission, or negotiation of any bid, proposal, or application for

that Federal contract, grant, loan, or cooperative agreement or for

meeting requirements imposed by or pursuant to law as a condition

for receiving that Federal contract, grant, loan, or cooperative

agreement.

\(C\) Nothing in this paragraph shall be construed as permitting

the use of appropriated funds for making any payment prohibited in

or pursuant to any other provision of law.

\(2\) The reporting requirement in subsection (b) of this section

shall not apply to any person with respect to -

\(A\) payments of reasonable compensation made to regularly

employed officers or employees of a person requesting or

receiving a Federal contract, grant, loan, or cooperative

agreement or a commitment providing for the United States to

insure or guarantee a loan;

\(B\) a request for or receipt of a contract (other than a

contract referred to in clause (C)), grant, cooperative

agreement, subcontract (other than a subcontract referred to in

clause (C)), or subgrant that does not exceed \$100,000; and

\(C\) a request for or receipt of a loan, or a commitment

providing for the United States to insure or guarantee a loan,

that does not exceed \$150,000, or the single family maximum

mortgage limit for affected programs, whichever is greater,

including a contract or subcontract to carry out any purpose for

which such a loan is made.

\(e\) The Secretary of Defense may exempt a Federal action

described in subsection (a)(2) from the prohibition in subsection

(a)(1) whenever the Secretary determines, in writing, that such an

exemption is in the national interest. The Secretary shall transmit

a copy of each such written exemption to Congress immediately after

making such determination.

\(f\) The head of each Federal agency shall take such actions as

are necessary to ensure that the provisions of this section are

vigorously implemented and enforced in such agency.

\(g\) As used in this section:

\(1\) The term \"recipient\", with respect to funds received in

connection with a Federal contract, grant, loan, or cooperative

agreement -

\(A\) includes the contractors, subcontractors, or subgrantees

(as the case may be) of the recipient; but

\(B\) does not include an Indian tribe, tribal organization, or

any other Indian organization eligible to receive Federal

contracts, grants, cooperative agreements, or loans from an

agency but only with respect to expenditures that are by such

tribe or organization for purposes specified in subsection (a)

and are permitted by other Federal law.

\(2\) The term \"agency\" has the same meaning provided for such

term in section 552(f) of title 5, and includes a Government

corporation, as defined in section 9101(1) of this title.

\(3\) The term \"person\" -

\(A\) includes an individual, corporation, company,

association, authority, firm, partnership, society, State, and

local government, regardless of whether such entity is operated

for profit or not for profit; but

\(B\) does not include an Indian tribe, tribal organization, or

any other Indian organization eligible to receive Federal

contracts, grants, cooperative agreements, or loans from an

agency but only with respect to expenditures by such tribe or

organization that are made for purposes specified in subsection

\(a\) and are permitted by other Federal law.

\(4\) The term \"State\" means a State of the United States, the

District of Columbia, the Commonwealth of Puerto Rico, a

territory or possession of the United States, an agency or

instrumentality of a State, and a multi-State, regional, or

interstate entity having governmental duties and powers.

\(5\) The term \"local government\" means a unit of government in a

State and, if chartered, established, or otherwise recognized by

a State for the performance of a governmental duty, the following

entities:

\(A\) A local public authority.

\(B\) A special district.

\(C\) An intrastate district.

\(D\) A council of governments.

\(E\) A sponsor group representative organization.

\(F\) Any other instrumentality of a local government.

(6)(A) The terms \"Federal contract\", \"Federal grant\", \"Federal

cooperative agreement\" mean, respectively -

\(i\) a contract awarded by an agency;

\(ii\) a grant made by an agency or a direct appropriation made

by law to any person; and

\(iii\) a cooperative agreement entered into by an agency.

\(B\) Such terms do not include -

\(i\) direct United States cash assistance to an individual;

\(ii\) a loan;

\(iii\) loan insurance; or

\(iv\) a loan guaranty.

\(7\) The term \"Federal loan\" means a loan made by an agency.

Such term does not include loan insurance or a loan guaranty.

\(8\) The term \"reasonable payment\" means, with respect to

professional and other technical services, a payment in an amount

that is consistent with the amount normally paid for such

services in the private sector.

\(9\) The term \"reasonable compensation\" means, with respect to a

regularly employed officer or employee of any person,

compensation that is consistent with the normal compensation for

such officer or employee for work that is not furnished to, not

funded by, or not furnished in cooperation with the Federal

Government.

\(10\) The term \"regularly employed\", with respect to an officer

or employee of a person requesting or receiving a Federal

contract, grant, loan, or cooperative agreement or a commitment

providing for the United States to insure or guarantee a loan,

means an officer or employee who is employed by such person for

at least 130 working days within one year immediately preceding

the date of the submission that initiates agency consideration of

such person for receipt of such contract, grant, loan,

cooperative agreement, loan insurance commitment, or loan

guaranty commitment.

\(11\) The terms \"Indian tribe\" and \"tribal organization\" have

the meaning provided in section 4 of the Indian Self-

Determination and Education Assistance Act (25 U.S.C. 450b).

-SOURCE-

(Added Pub. L. 101-121, title III, Sec. 319(a)(1), Oct. 23, 1989,

103 Stat. 750; amended Pub. L. 101-512, title III, Sec. 320, Nov.

5, 1990, 104 Stat. 1977; Pub. L. 103-272, Sec. 4(f)(1)(F), July 5,

1994, 108 Stat. 1362; Pub. L. 104-65, Sec. 10, Dec. 19, 1995, 109

Stat. 700; Pub. L. 104-66, title III, Sec. 3001(b), Dec. 21, 1995,

109 Stat. 734; Pub. L. 104-106, div. A, title X, Sec. 1064(c), div.

D, title XLIII, Sec. 4301(a)(2), Feb. 10, 1996, 110 Stat. 445,

656.)

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REFERENCES IN TEXT

The Lobbying Disclosure Act of 1995, referred to in subsec.

(b)(2)(A), (3), is Pub. L. 104-65, Dec. 19, 1995, 109 Stat. 691,

which is classified principally to chapter 26 (Sec. 1601 et seq.)

of Title 2, The Congress. For complete classification of this Act

to the Code, see Short Title note set out under section 1601 of

Title 2 and Tables.

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CODIFICATION

Another section 1352 was renumbered section 1353 of this title.

-MISC1-

AMENDMENTS

1996 - Subsec. (b)(2). Pub. L. 104-106, Sec. 4301(a)(2), which

directed amendment of par. (2) by inserting \"and\" after the

semicolon at the end of subpar. (A) and by striking out subpar.

(C), was not executed because subsec. (b)(2) did not contain a

subpar. (C) subsequent to amendment by Pub. L. 104-65, Sec.

10(a)(1). See 1995 Amendment note below.

Subsec. (b)(6)(A). Pub. L. 104-106, Sec. 1064(c)(1), which

directed insertion of \"(other than the Secretary of Defense and

Secretary of a military department)\" after \"The head of each

agency\", could not be executed because subsec. (b)(6) did not

contain a subpar. (A) subsequent to amendment by Pub. L. 104-65,

Sec. 10(a)(3). See 1995 Amendment note below.

Subsec. (d)(1). Pub. L. 104-106, Sec. 1064(c)(2), which directed

the insertion of \"(other than in the case of the Department of

Defense or a military department)\" after \"paragraph (3) of this

subsection\", could not be executed because subsec. (d)(1) did not

contain phrase \"paragraph (3) of this subsection\" subsequent to

amendment by Pub. L. 104-65, Sec. 10(b). See 1995 Amendment note

below.

1995 - Subsec. (b)(2). Pub. L. 104-65, Sec. 10(a)(1), added

subpars. (A) and (B) and struck out former subpars. (A) to (C)

which read as follows:

\"(A) a statement setting forth whether such person -

\"(i) has made any payment with respect to that Federal

contract, grant, loan, or cooperative agreement, using funds

other than appropriated funds, which would be prohibited by

subsection (a) of this section if the payment were paid for with

appropriated funds; or

\"(ii) has agreed to make any such payment;

\"(B) with respect to each such payment (if any) and each such

agreement (if any) -

\"(i) the name and address of each person paid, to be paid, or

reasonably expected to be paid;

\"(ii) the name and address of each individual performing the

services for which such payment is made, to be made, or

reasonably expected to be made;

\"(iii) the amount paid, to be paid, or reasonably expected to

be paid;

\"(iv) how the person was paid, is to be paid, or is reasonably

expected to be paid; and

\"(v) the activity for which the person was paid, is to be paid,

or is reasonably expected to be paid; and

\"(C) a certification that the person making the declaration has

not made, and will not make, any payment prohibited by subsection

(a).\"

Subsec. (b)(3). Pub. L. 104-65, Sec. 10(a)(2), substituted \"shall

contain the name of any registrant under the Lobbying Disclosure

Act of 1995 who has made lobbying contacts on behalf of the person

in connection with that loan insurance or guarantee.\" for

\"shall contain - \" and struck out subpars. (A) and (B) which read

as follows:

\"(A) a statement setting forth whether such person -

\"(i) has made any payment to influence or attempt to influence

an officer or employee of any agency, a Member of Congress, an

officer or employee of Congress, or an employee of a Member of

Congress in connection with that loan insurance or guaranty; or

\"(ii) has agreed to make any such payment; and

\"(B) with respect to each such payment (if any) and each such

agreement (if any), the information described in paragraph (2)(B)

of this subsection.\"

Subsec. (b)(6), (7). Pub. L. 104-65, Sec. 10(a)(3), redesignated

par. (7) as (6), and struck out former par. (6) which directed head

of each agency to collect and compile detailed information on any

unappropriated payments under Federal contracts, and report such

information to the appropriate congressional officer or committee.

Subsecs. (d) to (h). Pub. L. 104-65, Sec. 10(b), and Pub. L. 104-

66, Sec. 3001(b), amended section identically, redesignating

subsecs. (e) to (h) as (d) to (g), respectively, and striking out

former subsec. (d) which directed the Inspector General or official

of each agency to submit annual reports to Congress on the

compliance of each agency with the requirements imposed by this

section.

1994 - Subsec. (c). Pub. L. 103-272, Sec. 4(f)(1)(F)(i),

substituted \"(c)(1) Any person\" for \"(C)(1) Any person\".

Subsec. (e)(1)(C). Pub. L. 103-272, Sec. 4(f)(1)(F)(ii),

substituted \"appropriated\" for \"appropirated\" and inserted period

at end.

Subsec. (h)(7). Pub. L. 103-272, Sec. 4(f)(1)(F)(iii), inserted

periods after \"agency\" and \"guaranty\".

1990 - Subsec. (e)(2)(C). Pub. L. 101-512 inserted \"or the single

family maximum mortgage limit for affected programs, whichever is

greater,\" after \"\$150,000,\".

EFFECTIVE DATE OF 1996 AMENDMENT

For effective date and applicability of amendment by Pub. L. 104-

106, see section 4401 of Pub. L. 104-106, set out as a note under

section 251 of Title 41, Public Contracts.

EFFECTIVE DATE OF 1995 AMENDMENT

Amendment by Pub. L. 104-65 effective Jan. 1, 1996, except as

otherwise provided, see section 24 of Pub. L. 104-65, set out as an

Effective Date note under section 1601 of Title 2, The Congress.

EFFECTIVE DATE

Section 319(d) of Pub. L. 101-121 provided that: \"Section 1352 of

title 31, United States Code (as added by subsection (a)), shall

take effect with respect to Federal contracts, grants, loans,

cooperative agreements, loan insurance commitments, and loan

guaranty commitments that are entered into or made more than 60

days after the date of the enactment of this Act \[Oct. 23, 1989\].\"

FIRST REPORT ON MAY 31, 1990; CONTENT

Section 319(b) of Pub. L. 101-121 provided that the first report

submitted under former subsec. (b)(6) of this section was to be

submitted on May 31, 1990, and was to contain a compilation

relating to the statements received under subsec. (b) of this

section during the six-month period beginning on Oct. 1, 1989.

NOTIFICATION OF COMPLIANCE DATE; GUIDANCE FOR AGENCY IMPLEMENTATION

Section 319(c) of Pub. L. 101-121 provided that: \"The Director of

the Office of Management and Budget shall notify the head of each

agency that section 1352 of title 31, United States Code (as added

by subsection (a)), is to be complied with commencing 60 days after

the date of the enactment of this Act \[Oct. 23, 1989\]. Not later

than 60 days after the date of the enactment of this Act, the

Director of the Office of Management and Budget shall issue the

guidance required by subsection (b)(7) \[now (b)(6)\] of such

section.\"