Union Calendar No. 181

104TH CONGRESS

1ST SESSION H. R. 2564

[Report No. 104–339, Part 1]

A BILL

To provide for the disclosure of lobbying activities

other purposes.to influence the Federal Government, and for

NOVEMBER 14, 1995

Committed to the Committee of the Whole House on the

State of the Union and ordered to be printed
IB

Union Calendar No. 181

104TH CONGRESS

1ST SESSION H. R. 2564

[Report No. 104–339, Part 1]

To provide for the disclosure of lobbying activities to influence the Federal

Government, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 31, 1995

Mr. CANADY of Florida (for himself, Mr. FRANK of Massachusetts, Mr.

SHAYS, and Mr. MCHALE) introduced the following bill; which was referred to the Committee on the Judiciary, and in addition to the Committees on Government Reform and Oversight, Rules, and Ways and Means,

for a period to be subsequently determined by the Speaker, in each case

for consideration of such provisions as fall within the jurisdiction of the

committee concerned

NOVEMBER 14, 1995

Reported from the Committee on the Judiciary

NOVEMBER 14, 1995

Referral to the Committees on Government Reform and Oversight, Rules, and

Ways and Means extended for a period ending not later than November

14, 1995

NOVEMBER 14, 1995

Additional sponsors: Mr. CHABOT, Mr. BRYANT of Tennessee, Mr. COBLE, Mr.

FLANAGAN, Mr. HEINEMAN, Mr. INGLIS of South Carolina, Mr. SENSENBRENNER, Mrs. ROUKEMA, Mr. SMITH of Texas, Mr. CASTLE, Mr.

LEVIN, Mr. HINCHEY, and Mr. GOODLATTE

NOVEMBER 14, 1995

The Committees on Government Reform and Oversight, Rules, and Ways and

Means discharged from further consideration; committed to the Commit-
2

•HR 2564 RH

tee of the Whole House on the State of the Union and ordered to be

printed

A BILL

To provide for the disclosure of lobbying activities to

influence the Federal Government, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Lobbying Disclosure

5 Act of 1995’’.

6 SEC. 2. FINDINGS.

7 The Congress finds that—

8 (1) responsible representative Government re9 quires public awareness of the efforts of paid lobby10 ists to influence the public decisionmaking process in

11 both the legislative and executive branches of the

12 Federal Government;

13 (2) existing lobbying disclosure statutes have

14 been ineffective because of unclear statutory lan15 guage, weak administrative and enforcement provi16 sions, and an absence of clear guidance as to who

17 is required to register and what they are required to

18 disclose; and
3

•HR 2564 RH

1 (3) the effective public disclosure of the identity

2 and extent of the efforts of paid lobbyists to influ3 ence Federal officials in the conduct of Government

4 actions will increase public confidence in the integ5 rity of Government.

6 SEC. 3. DEFINITIONS.

7 As used in this Act:

8 (1) AGENCY.—The term ‘‘agency’’ has the

9 meaning given that term in section 551(1) of title 5,

10 United States Code.

11 (2) CLIENT.—The term ‘‘client’’ means any

12 person or entity that employs or retains another per13 son for financial or other compensation to conduct

14 lobbying activities on behalf of that person or entity.

15 A person or entity whose employees act as lobbyists

16 on its own behalf is both a client and an employer

17 of such employees. In the case of a coalition or asso18 ciation that employs or retains other persons to con19 duct lobbying activities, the client is the coalition or

20 association and not its individual members.

21 (3) COVERED EXECUTIVE BRANCH OFFICIAL.—

22 The term ‘‘covered executive branch official’’

23 means—

24 (A) the President;

25 (B) the Vice President;
4

•HR 2564 RH

1 (C) any officer or employee, or any other

2 individual functioning in the capacity of such

3 an officer or employee, in the Executive Office

4 of the President;

5 (D) any officer or employee serving in a

6 position in level I, II, III, IV, or V of the Exec7 utive Schedule, as designated by statute or Ex8 ecutive order;

9 (E) any member of the uniformed services

10 whose pay grade is at or above O–7 under sec11 tion 201 of title 37, United States Code; and

12 (F) any officer or employee serving in a

13 position of a confidential, policy-determining,

14 policy-making, or policy-advocating character

15 described in section 7511(b)(2) of title 5,

16 United States Code.

17 (4) COVERED LEGISLATIVE BRANCH OFFI18 CIAL.—The term ‘‘covered legislative branch official’’

19 means—

20 (A) a Member of Congress;

21 (B) an elected officer of either House of

22 Congress;

23 (C) any employee of, or any other individ24 ual functioning in the capacity of an employee

25 of—
5

•HR 2564 RH

1 (i) a Member of Congress;

2 (ii) a committee of either House of

3 Congress;

4 (iii) the leadership staff of the House

5 of Representatives or the leadership staff

6 of the Senate;

7 (iv) a joint committee of Congress;

8 and

9 (v) a working group or caucus orga10 nized to provide legislative services or

11 other assistance to Members of Congress;

12 and

13 (D) any other legislative branch employee

14 serving in a position described under section

15 109(13) of the Ethics in Government Act of

16 1978 (5 U.S.C. App.).

17 (5) EMPLOYEE.—The term ‘‘employee’’ means

18 any individual who is an officer, employee, partner,

19 director, or proprietor of a person or entity, but does

20 not include—

21 (A) independent contractors; or

22 (B) volunteers who receive no financial or

23 other compensation from the person or entity

24 for their services.
6

•HR 2564 RH

1 (6) FOREIGN ENTITY.—The term ‘‘foreign en2 tity’’ means a foreign principal (as defined in section

3 1(b) of the Foreign Agents Registration Act of 1938

4 (22 U.S.C. 611(b)).

5 (7) LOBBYING ACTIVITIES.—The term ‘‘lobby6 ing activities’’ means lobbying contacts and efforts

7 in support of such contacts, including preparation

8 and planning activities, research and other back9 ground work that is intended, at the time it is per10 formed, for use in contacts, and coordination with

11 the lobbying activities of others.

12 (8) LOBBYING CONTACT.—

13 (A) DEFINITION.—The term ‘‘lobbying

14 contact’’ means any oral or written communica15 tion (including an electronic communication) to

16 a covered executive branch official or a covered

17 legislative branch official that is made on behalf

18 of a client with regard to—

19 (i) the formulation, modification, or

20 adoption of Federal legislation (including

21 legislative proposals);

22 (ii) the formulation, modification, or

23 adoption of a Federal rule, regulation, Ex24 ecutive order, or any other program, policy,
7

•HR 2564 RH

1 or position of the United States Govern2 ment;

3 (iii) the administration or execution of

4 a Federal program or policy (including the

5 negotiation, award, or administration of a

6 Federal contract, grant, loan, permit, or li7 cense); or

8 (iv) the nomination or confirmation of

9 a person for a position subject to confirma10 tion by the Senate.

11 (B) EXCEPTIONS.—The term ‘‘lobbying

12 contact’’ does not include a communication that

13 is—

14 (i) made by a public official acting in

15 the public official’s official capacity;

16 (ii) made by a representative of a

17 media organization if the purpose of the

18 communication is gathering and dissemi19 nating news and information to the public;

20 (iii) made in a speech, article, publica21 tion or other material that is distributed

22 and made available to the public, or

23 through radio, television, cable television,

24 or other medium of mass communication;
8

•HR 2564 RH

1 (iv) made on behalf of a government

2 of a foreign country or a foreign political

3 party and disclosed under the Foreign

4 Agents Registration Act of 1938 (22

5 U.S.C. 611 et seq.);

6 (v) a request for a meeting, a request

7 for the status of an action, or any other

8 similar administrative request, if the re9 quest does not include an attempt to influ10 ence a covered executive branch official or

11 a covered legislative branch official;

12 (vi) made in the course of participa13 tion in an advisory committee subject to

14 the Federal Advisory Committee Act;

15 (vii) testimony given before a commit16 tee, subcommittee, or task force of the

17 Congress, or submitted for inclusion in the

18 public record of a hearing conducted by

19 such committee, subcommittee, or task

20 force;

21 (viii) information provided in writing

22 in response to an oral or written request

23 by a covered executive branch official or a

24 covered legislative branch official for spe25 cific information;
9

•HR 2564 RH

1 (ix) required by subpoena, civil inves2 tigative demand, or otherwise compelled by

3 statute, regulation, or other action of the

4 Congress or an agency;

5 (x) made in response to a notice in

6 the Federal Register, Commerce Business

7 Daily, or other similar publication solicit8 ing communications from the public and

9 directed to the agency official specifically

10 designated in the notice to receive such

11 communications;

12 (xi) not possible to report without dis13 closing information, the unauthorized dis14 closure of which is prohibited by law;

15 (xii) made to an official in an agency

16 with regard to—

17 (I) a judicial proceeding or a

18 criminal or civil law enforcement in19 quiry, investigation, or proceeding; or

20 (II) a filing or proceeding that

21 the Government is specifically re22 quired by statute or regulation to

23 maintain or conduct on a confidential

24 basis,
10

•HR 2564 RH

1 if that agency is charged with responsibil2 ity for such proceeding, inquiry, investiga3 tion, or filing;

4 (xiii) made in compliance with written

5 agency procedures regarding an adjudica6 tion conducted by the agency under section

7 554 of title 5, United States Code, or sub8 stantially similar provisions;

9 (xiv) a written comment filed in the

10 course of a public proceeding or any other

11 communication that is made on the record

12 in a public proceeding;

13 (xv) a petition for agency action made

14 in writing and required to be a matter of

15 public record pursuant to established agen16 cy procedures;

17 (xvi) made on behalf of an individual

18 with regard to that individual’s benefits,

19 employment, or other personal matters in20 volving only that individual, except that

21 this clause does not apply to any commu22 nication with—

23 (I) a covered executive branch of24 ficial, or
11

•HR 2564 RH

1 (II) a covered legislative branch

2 official (other than the individual’s

3 elected Members of Congress or em4 ployees who work under such Mem5 bers’ direct supervision),

6 with respect to the formulation, modifica7 tion, or adoption of private legislation for

8 the relief of that individual;

9 (xvii) a disclosure by an individual

10 that is protected under the amendments

11 made by the Whistleblower Protection Act

12 of 1989, under the Inspector General Act

13 of 1978, or under another provision of law;

14 (xviii) made by—

15 (I) a church, its integrated auxil16 iary, or a convention or association of

17 churches that is exempt from filing a

18 Federal income tax return under

19 paragraph 2(A)(i) of section 6033(a)

20 of the Internal Revenue Code of 1986,

21 or

22 (II) a religious order that is ex23 empt from filing a Federal income tax

24 return under paragraph (2)(A)(iii) of

25 such section 6033(a); and
12

•HR 2564 RH

1 (xix) between—

2 (I) officials of a self-regulatory

3 organization (as defined in section

4 3(a)(26) of the Securities Exchange

5 Act) that is registered with or estab6 lished by the Securities and Exchange

7 Commission as required by that Act

8 or a similar organization that is des9 ignated by or registered with the

10 Commodities Future Trading Com11 mission as provided under the Com12 modity Exchange Act; and

13 (II) the Securities and Exchange

14 Commission or the Commodities Fu15 ture Trading Commission, respec16 tively;

17 relating to the regulatory responsibilities of

18 such organization under that Act.

19 (9) LOBBYING FIRM.—The term ‘‘lobbying

20 firm’’ means a person or entity that has 1 or more

21 employees who are lobbyists on behalf of a client

22 other than that person or entity. The term also in23 cludes a self-employed individual who is a lobbyist.

24 (10) LOBBYIST.—The term ‘‘lobbyist’’ means

25 any individual who is employed or retained by a cli-
13

•HR 2564 RH

1 ent for financial or other compensation for services

2 that include more than one lobbying contact, other

3 than an individual whose lobbying activities con4 stitute less than 20 percent of the time engaged in

5 the services provided by such individual to that cli6 ent over a six month period.

7 (11) MEDIA ORGANIZATION.—The term ‘‘media

8 organization’’ means a person or entity engaged in

9 disseminating information to the general public

10 through a newspaper, magazine, other publication,

11 radio, television, cable television, or other medium of

12 mass communication.

13 (12) MEMBER OF CONGRESS.—The term

14 ‘‘Member of Congress’’ means a Senator or a Rep15 resentative in, or Delegate or Resident Commis16 sioner to, the Congress.

17 (13) ORGANIZATION.—The term ‘‘organization’’

18 means a person or entity other than an individual.

19 (14) PERSON OR ENTITY.—The term ‘‘person

20 or entity’’ means any individual, corporation, com21 pany, foundation, association, labor organization,

22 firm, partnership, society, joint stock company,

23 group of organizations, or State or local government.
14

•HR 2564 RH

1 (15) PUBLIC OFFICIAL.—The term ‘‘public offi2 cial’’ means any elected official, appointed official, or

3 employee of—

4 (A) a Federal, State, or local unit of gov5 ernment in the United States other than—

6 (i) a college or university;

7 (ii) a government-sponsored enterprise

8 (as defined in section 3(8) of the Congres9 sional Budget and Impoundment Control

10 Act of 1974);

11 (iii) a public utility that provides gas,

12 electricity, water, or communications;

13 (iv) a guaranty agency (as defined in

14 section 435(j) of the Higher Education Act

15 of 1965 (20 U.S.C. 1085(j))), including

16 any affiliate of such an agency; or

17 (v) an agency of any State functioning

18 as a student loan secondary market pursu19 ant to section 435(d)(1)(F) of the Higher

20 Education Act of 1965 (20 U.S.C.

21 1085(d)(1)(F));

22 (B) a Government corporation (as defined

23 in section 9101 of title 31, United States

24 Code);
15

•HR 2564 RH

1 (C) an organization of State or local elect2 ed or appointed officials other than officials of

3 an entity described in clause (i), (ii), (iii), (iv),

4 or (v) of subparagraph (A);

5 (D) an Indian tribe (as defined in section

6 4(e) of the Indian Self-Determination and Edu7 cation Assistance Act (25 U.S.C. 450b(e));

8 (E) a national or State political party or

9 any organizational unit thereof; or

10 (F) a national, regional, or local unit of

11 any foreign government.

12 (16) STATE.—The term ‘‘State’’ means each of

13 the several States, the District of Columbia, and any

14 commonwealth, territory, or possession of the United

15 States.

16 SEC. 4. REGISTRATION OF LOBBYISTS.

17 (a) REGISTRATION.—

18 (1) GENERAL RULE.—No later than 45 days

19 after a lobbyist first makes a lobbying contact or is

20 employed or retained to make a lobbying contact,

21 whichever is earlier, such lobbyist (or, as provided

22 under paragraph (2), the organization employing

23 such lobbyist), shall register with the Secretary of

24 the Senate and the Clerk of the House of Represent25 atives.
16

•HR 2564 RH

1 (2) EMPLOYER FILING.—Any organization that

2 has 1 or more employees who are lobbyists shall file

3 a single registration under this section on behalf of

4 such employees for each client on whose behalf the

5 employees act as lobbyists.

6 (3) EXEMPTION.—

7 (A) GENERAL RULE.—Notwithstanding

8 paragraphs (1) and (2), a person or entity

9 whose—

10 (i) total income for matters related to

11 lobbying activities on behalf of a particular

12 client (in the case of a lobbying firm) does

13 not exceed and is not expected to exceed

14 $5,000; or

15 (ii) total expenses in connection with

16 lobbying activities (in the case of an orga17 nization whose employees engage in lobby18 ing activities on its own behalf) do not ex19 ceed or are not expected to exceed

20 $20,000,

21 (as estimated under section 5) in the semi22 annual period described in section 5(a) during

23 which the registration would be made is not re24 quired to register under subsection (a) with re25 spect to such client.
17

•HR 2564 RH

1 (B) ADJUSTMENT.—The dollar amounts in

2 subparagraph (A) shall be adjusted—

3 (i) on January 1, 1997, to reflect

4 changes in the Consumer Price Index (as

5 determined by the Secretary of Labor)

6 since the date of enactment of this Act;

7 and

8 (ii) on January 1 of each fourth year

9 occurring after January 1, 1997, to reflect

10 changes in the Consumer Price Index (as

11 determined by the Secretary of Labor)

12 during the preceding 4-year period,

13 rounded to the nearest $500.

14 (b) CONTENTS OF REGISTRATION.—Each registra15 tion under this section shall contain—

16 (1) the name, address, business telephone num17 ber, and principal place of business of the registrant,

18 and a general description of its business or activi19 ties;

20 (2) the name, address, and principal place of

21 business of the registrant’s client, and a general de22 scription of its business or activities (if different

23 from paragraph (1));
18

•HR 2564 RH

1 (3) the name, address, and principal place of

2 business of any organization, other than the client,

3 that—

4 (A) contributes more than $10,000 toward

5 the lobbying activities of the registrant in a

6 semiannual period described in section 5(a);

7 and

8 (B) in whole or in major part plans, super9 vises, or controls such lobbying activities.

10 (4) the name, address, principal place of busi11 ness, amount of any contribution of more than

12 $10,000 to the lobbying activities of the registrant,

13 and approximate percentage of equitable ownership

14 in the client (if any) of any foreign entity that—

15 (A) holds at least 20 percent equitable

16 ownership in the client or any organization

17 identified under paragraph (3);

18 (B) directly or indirectly, in whole or in

19 major part, plans, supervises, controls, directs,

20 finances, or subsidizes the activities of the cli21 ent or any organization identified under para22 graph (3); or

23 (C) is an affiliate of the client or any orga24 nization identified under paragraph (3) and has
19

•HR 2564 RH

1 a direct interest in the outcome of the lobbying

2 activity;

3 (5) a statement of—

4 (A) the general issue areas in which the

5 registrant expects to engage in lobbying activi6 ties on behalf of the client; and

7 (B) to the extent practicable, specific is8 sues that have (as of the date of the registra9 tion) already been addressed or are likely to be

10 addressed in lobbying activities; and

11 (6) the name of each employee of the registrant

12 who has acted or whom the registrant expects to act

13 as a lobbyist on behalf of the client and, if any such

14 employee has served as a covered executive branch

15 official or a covered legislative branch official in the

16 2 years before the date on which such employee first

17 acted (after the date of enactment of this Act) as a

18 lobbyist on behalf of the client, the position in which

19 such employee served.

20 (c) GUIDELINES FOR REGISTRATION.—

21 (1) MULTIPLE CLIENTS.—In the case of a reg22 istrant making lobbying contacts on behalf of more

23 than 1 client, a separate registration under this sec24 tion shall be filed for each such client.
20

•HR 2564 RH

1 (2) MULTIPLE CONTACTS.—A registrant who

2 makes more than 1 lobbying contact for the same

3 client shall file a single registration covering all such

4 lobbying contacts.

5 (d) TERMINATION OF REGISTRATION.—A registrant

6 who after registration—

7 (1) is no longer employed or retained by a cli8 ent to conduct lobbying activities, and

9 (2) does not anticipate any additional lobbying

10 activities for such client,

11 may so notify the Secretary of the Senate and the Clerk

12 of the House of Representatives and terminate its reg13 istration.

14 SEC. 5. REPORTS BY REGISTERED LOBBYISTS.

15 (a) SEMIANNUAL REPORT.—No later than 45 days

16 after the end of the semiannual period beginning on the

17 first day of each January and the first day of July of each

18 year in which a registrant is registered under section 4,

19 each registrant shall file a report with the Secretary of

20 the Senate and the Clerk of the House of Representatives

21 on its lobbying activities during such semiannual period.

22 A separate report shall be filed for each client of the reg23 istrant.

24 (b) CONTENTS OF REPORT.—Each semiannual re25 port filed under subsection (a) shall contain—
21

•HR 2564 RH

1 (1) the name of the registrant, the name of the

2 client, and any changes or updates to the informa3 tion provided in the initial registration;

4 (2) for each general issue area in which the reg5 istrant engaged in lobbying activities on behalf of

6 the client during the semiannual filing period—

7 (A) a list of the specific issues upon which

8 a lobbyist employed by the registrant engaged

9 in lobbying activities, including, to the maxi10 mum extent practicable, a list of bill numbers

11 and references to specific executive branch

12 actions;

13 (B) a statement of the Houses of Congress

14 and the Federal agencies contacted by lobbyists

15 employed by the registrant on behalf of the

16 client;

17 (C) a list of the employees of the registrant

18 who acted as lobbyists on behalf of the client;

19 and

20 (D) a description of the interest, if any, of

21 any foreign entity identified under section

22 4(b)(4) in the specific issues listed under sub23 paragraph (A).

24 (3) in the case of a lobbying firm, a good faith

25 estimate of the total amount of all income from the
22

•HR 2564 RH

1 client (including any payments to the registrant by

2 any other person for lobbying activities on behalf of

3 the client) during the semiannual period, other than

4 income for matters that are unrelated to lobbying

5 activities; and

6 (4) in the case of a registrant engaged in lobby7 ing activities on its own behalf, a good faith estimate

8 of the total expenses that the registrant and its em9 ployees incurred in connection with lobbying activi10 ties during the semiannual filing period.

11 (c) ESTIMATES OF INCOME OR EXPENSES.—For pur12 poses of this section, estimates of income or expenses shall

13 be made as follows:

14 (1) Estimates of amounts in excess of $10,000

15 shall be rounded to the nearest $20,000.

16 (2) In the event income or expenses do not ex17 ceed $10,000, the registrant shall include a state18 ment that income or expenses totaled less than

19 $10,000 for the reporting period.

20 (3) A registrant that reports lobbying expendi21 tures pursuant to section 6033(b)(8) of the Internal

22 Revenue Code of 1986 may satisfy the requirement

23 to report income or expenses by filing with the Sec24 retary of the Senate and the Clerk of the House of
23

•HR 2564 RH

1 Representatives a copy of the form filed in accord2 ance with section 6033(b)(8).

3 SEC. 6. DISCLOSURE AND ENFORCEMENT.

4 The Secretary of the Senate and the Clerk of the

5 House of Representatives shall—

6 (1) provide guidance and assistance on the reg7 istration and reporting requirements of this Act and

8 develop common standards, rules, and procedures for

9 compliance with this Act;

10 (2) review, and, where necessary, verify and in11 quire to ensure the accuracy, completeness, and

12 timeliness of registration and reports;

13 (3) develop filing, coding, and cross-indexing

14 systems to carry out the purpose of this Act, includ15 ing—

16 (A) a publicly available list of all registered

17 lobbyists, lobbying firms, and their clients; and

18 (B) computerized systems designed to min19 imize the burden of filing and maximize public

20 access to materials filed under this Act;

21 (4) make available for public inspection and

22 copying at reasonable times the registrations and re23 ports filed under this Act;
24

•HR 2564 RH

1 (5) retain registrations for a period of at least

2 6 years after they are terminated and reports for a

3 period of at least 6 years after they are filed;

4 (6) compile and summarize, with respect to

5 each semiannual period, the information contained

6 in registrations and reports filed with respect to

7 such period in a clear and complete manner;

8 (7) notify any lobbyist or lobbying firm in writ9 ing that may be in noncompliance with this Act; and

10 (8) notify the United States Attorney for the

11 District of Columbia that a lobbyist or lobbying firm

12 may be in noncompliance with this Act, if the reg13 istrant has been notified in writing and has failed to

14 provide an appropriate response within 60 days after

15 notice was given under paragraph (6).

16 SEC. 7. PENALTIES.

17 Whoever knowingly fails to—

18 (1) remedy a defective filing within 60 days

19 after notice of such a defect by the Secretary of the

20 Senate or the Clerk of the House of Representatives;

21 or

22 (2) comply with any other provision of this Act;

23 shall, upon proof of such knowing violation by a pre24 ponderance of the evidence, be subject to a civil fine
25

•HR 2564 RH

1 of not more than $50,000, depending on the extent

2 and gravity of the violation.

3 SEC. 8. RULES OF CONSTRUCTION.

4 (a) CONSTITUTIONAL RIGHTS.—Nothing in this Act

5 shall be construed to prohibit or interfere with—

6 (1) the right to petition the government for the

7 redress of grievances;

8 (2) the right to express a personal opinion; or

9 (3) the right of association,

10 protected by the first amendment to the Constitution.

11 (b) PROHIBITION OF ACTIVITIES.—Nothing in this

12 Act shall be construed to prohibit, or to authorize any

13 court to prohibit, lobbying activities or lobbying contacts

14 by any person or entity, regardless of whether such person

15 or entity is in compliance with the requirements of this

16 Act.

17 (c) AUDIT AND INVESTIGATIONS.—Nothing in this

18 Act shall be construed to grant general audit or investiga19 tive authority to the Secretary of the Senate or the Clerk

20 of the House of Representatives.

21 SEC. 9. AMENDMENTS TO THE FOREIGN AGENTS REG22 ISTRATION ACT.

23 The Foreign Agents Registration Act of 1938 (22

24 U.S.C. 611 et seq.) is amended—

25 (1) in section 1—
26

•HR 2564 RH

1 (A) by striking subsection (j);

2 (B) in subsection (o) by striking ‘‘the dis3 semination of political propaganda and any

4 other activity which the person engaging therein

5 believes will, or which he intends to, prevail

6 upon, indoctrinate, convert, induce, persuade,

7 or in any other way influence’’ and inserting

8 ‘‘any activity that the person engaging in be9 lieves will, or that the person intends to, in any

10 way influence’’;

11 (C) in subsection (p) by striking the semi12 colon and inserting a period; and

13 (D) by striking subsection (q);

14 (2) in section 3(g) (22 U.S.C. 613(g)), by strik15 ing ‘‘established agency proceedings, whether formal

16 or informal.’’ and inserting ‘‘judicial proceedings,

17 criminal or civil law enforcement inquiries, investiga18 tions, or proceedings, or agency proceedings required

19 by statute or regulation to be conducted on the

20 record.’’;

21 (3) in section 3 (22 U.S.C. 613) by adding at

22 the end the following:

23 ‘‘(h) Any agent of a person described in section

24 1(b)(2) or an entity described in section 1(b)(3) if the

25 agent is required to register and does register under the
27

•HR 2564 RH

1 Lobbying Disclosure Act of 1995 in connection with the

2 agent’s representation of such person or entity.’’;

3 (4) in section 4(a) (22 U.S.C. 614(a))—

4 (A) by striking ‘‘political propaganda’’ and

5 inserting ‘‘informational materials’’; and

6 (B) by striking ‘‘and a statement, duly

7 signed by or on behalf of such an agent, setting

8 forth full information as to the places, times,

9 and extent of such transmittal’’;

10 (5) in section 4(b) (22 U.S.C. 614(b))—

11 (A) in the matter preceding clause (i), by

12 striking ‘‘political propaganda’’ and inserting

13 ‘‘informational materials’’; and

14 (B) by striking ‘‘(i) in the form of prints,

15 or’’ and all that follows through the end of the

16 subsection and inserting ‘‘without placing in

17 such informational materials a conspicuous

18 statement that the materials are distributed by

19 the agent on behalf of the foreign principal, and

20 that additional information is on file with the

21 Department of Justice, Washington, District of

22 Columbia. The Attorney General may by rule

23 define what constitutes a conspicuous statement

24 for the purposes of this subsection.’’;
28

•HR 2564 RH

1 (6) in section 4(c) (22 U.S.C. 614(c)), by strik2 ing ‘‘political propaganda’’ and inserting ‘‘informa3 tional materials’’;

4 (7) in section 6 (22 U.S.C. 616)—

5 (A) in subsection (a) by striking ‘‘and all

6 statements concerning the distribution of politi7 cal propaganda’’;

8 (B) in subsection (b) by striking ‘‘, and

9 one copy of every item of political propaganda’’;

10 and

11 (C) in subsection (c) by striking ‘‘copies of

12 political propaganda,’’;

13 (8) in section 8 (22 U.S.C. 618)—

14 (A) in subsection (a)(2) by striking ‘‘or in

15 any statement under section 4(a) hereof con16 cerning the distribution of political propa17 ganda’’; and

18 (B) by striking subsection (d); and

19 (9) in section 11 (22 U.S.C. 621) by striking

20 ‘‘, including the nature, sources, and content of po21 litical propaganda disseminated or distributed’’.

22 SEC. 10. AMENDMENTS TO THE BYRD AMENDMENT.

23 (a) REVISED CERTIFICATION REQUIREMENTS.—Sec24 tion 1352(b) of title 31, United States Code, is amended—
29

•HR 2564 RH

1 (1) in paragraph (2) by striking subparagraphs

2 (A), (B), and (C) and inserting the following:

3 ‘‘(A) the name of any registrant under the

4 Lobbying Disclosure Act of 1995 who has made

5 lobbying contacts on behalf of the person with

6 respect to that Federal contract, grant, loan, or

7 cooperative agreement; and

8 ‘‘(B) a certification that the person making

9 the declaration has not made, and will not

10 make, any payment prohibited by subsection

11 (a).’’;

12 (2) in paragraph (3) by striking all that follows

13 ‘‘loan shall contain’’ and inserting ‘‘the name of any

14 registrant under the Lobbying Disclosure Act of

15 1995 who has made lobbying contacts on behalf of

16 the person in connection with that loan insurance or

17 guarantee.’’; and

18 (3) by striking paragraph (6) and redesignating

19 paragraph (7) as paragraph (6).

20 (b) REMOVAL OF OBSOLETE REPORTING REQUIRE21 MENT.—Section 1352 of title 31, United States Code, is

22 further amended—

23 (1) by striking subsection (d); and
30

•HR 2564 RH

1 (2) by redesignating subsections (e), (f), (g),

2 and (h) as subsections (d), (e), (f), and (g), respec3 tively.

4 SEC. 11. REPEAL OF CERTAIN LOBBYING PROVISIONS.

5 (a) REPEAL OF THE FEDERAL REGULATION OF LOB6 BYING ACT.—The Federal Regulation of Lobbying Act (2

7 U.S.C. 261 et seq.) is repealed.

8 (b) REPEAL OF PROVISIONS RELATING TO HOUSING

9 LOBBYIST ACTIVITIES.—

10 (1) Section 13 of the Department of Housing

11 and Urban Development Act (42 U.S.C. 3537b) is

12 repealed.

13 (2) Section 536(d) of the Housing Act of 1949

14 (42 U.S.C. 1490p(d)) is repealed.

15 SEC. 12. CONFORMING AMENDMENTS TO OTHER STATUTES.

16 (a) AMENDMENT TO COMPETITIVENESS POLICY

17 COUNCIL ACT.—Section 5206(e) of the Competitiveness

18 Policy Council Act (15 U.S.C. 4804(e)) is amended by in19 serting ‘‘or a lobbyist for a foreign entity (as the terms

20 ‘lobbyist’ and ‘foreign entity’ are defined under section 3

21 of the Lobbying Disclosure Act of 1995)’’ after ‘‘an agent

22 for a foreign principal’’.

23 (b) AMENDMENTS TO TITLE 18, UNITED STATES

24 CODE.—Section 219(a) of title 18, United States Code,

25 is amended—
31

•HR 2564 RH

1 (1) by inserting ‘‘or a lobbyist required to reg2 ister under the Lobbying Disclosure Act of 1995 in

3 connection with the representation of a foreign en4 tity, as defined in section 3(7) of that Act’’ after

5 ‘‘an agent of a foreign principal required to register

6 under the Foreign Agents Registration Act of

7 1938’’; and

8 (2) by striking out ‘‘, as amended,’’.

9 (c) AMENDMENT TO FOREIGN SERVICE ACT OF

10 1980.—Section 602(c) of the Foreign Service Act of 1980

11 (22 U.S.C. 4002(c)) is amended by inserting ‘‘or a lobby12 ist for a foreign entity (as defined in section 3(7) of the

13 Lobbying Disclosure Act of 1995)’’ after ‘‘an agent of a

14 foreign principal (as defined by section 1(b) of the Foreign

15 Agents Registration Act of 1938)’’.

16 SEC. 13. SEVERABILITY.

17 If any provision of this Act, or the application there18 of, is held invalid, the validity of the remainder of this

19 Act and the application of such provision to other persons

20 and circumstances shall not be affected thereby.

21 SEC. 14. IDENTIFICATION OF CLIENTS AND COVERED OFFI22 CIALS.

23 (a) ORAL LOBBYING CONTACTS.—Any person or en24 tity that makes an oral lobbying contact with a covered

25 legislative branch official or a covered executive branch of-
32

•HR 2564 RH

1 ficial shall, on the request of the official at the time of

2 the lobbying contact—

3 (1) state whether the person or entity is reg4 istered under this Act and identify the client on

5 whose behalf the lobbying contact is made; and

6 (2) state whether such client is a foreign entity

7 and identify any foreign entity required to be dis8 closed under section 4(b)(4) that has a direct inter9 est in the outcome of the lobbying activity.

10 (b) WRITTEN LOBBYING CONTACTS.—Any person or

11 entity registered under this Act that makes a written lob12 bying contact (including an electronic communication)

13 with a covered legislative branch official or a covered exec14 utive branch official shall—

15 (1) if the client on whose behalf the lobbying

16 contact was made is a foreign entity, identify such

17 client, state that the client is considered a foreign

18 entity under this Act, and state whether the person

19 making the lobbying contact is registered on behalf

20 of that client under section 4; and

21 (2) identify any other foreign entity identified

22 pursuant to section 4(b)(4) that has a direct interest

23 in the outcome of the lobbying activity.

24 (c) IDENTIFICATION AS COVERED OFFICIAL.—Upon

25 request by a person or entity making a lobbying contact,
33

•HR 2564 RH

1 the individual who is contacted or the office employing

2 that individual shall indicate whether or not the individual

3 is a covered legislative branch official or a covered execu4 tive branch official.

5 SEC. 15. ESTIMATES BASED ON TAX REPORTING SYSTEM.

6 (a) ENTITIES COVERED BY SECTION 6033(b) OF THE

7 INTERNAL REVENUE CODE OF 1986.—A registrant that

8 is required to report and does report lobbying expenditures

9 pursuant to section 6033(b)(8) of the Internal Revenue

10 Code of 1986 may—

11 (1) make a good faith estimate (by category of

12 dollar value) of applicable amounts that would be re13 quired to be disclosed under such section for the ap14 propriate semiannual period to meet the require15 ments of sections 4(a)(3), 5(a)(2), and 5(b)(4); and

16 (2) in lieu of using the definition of ‘‘lobbying

17 activities’’ in section 3(8) of this Act, consider as

18 lobbying activities only those activities that are influ19 encing legislation as defined in section 4911(d) of

20 the Internal Revenue Code of 1986.

21 (b) ENTITIES COVERED BY SECTION 162(e) OF THE

22 INTERNAL REVENUE CODE OF 1986.—A registrant that

23 is subject to section 162(e) of the Internal Revenue Code

24 of 1986 may—
34

•HR 2564 RH

1 (1) make a good faith estimate (by category of

2 dollar value) of applicable amounts that would not

3 be deductible pursuant to such section for the appro4 priate semiannual period to meet the requirements

5 of sections 4(a)(3), 5(a)(2), and 5(b)(4); and

6 (2) in lieu of using the definition of ‘‘lobbying

7 activities’’ in section 3(8) of this Act, consider as

8 lobbying activities only those activities, the costs of

9 which are not deductible pursuant to section 162(e)

10 of the Internal Revenue Code of 1986.

11 (c) DISCLOSURE OF ESTIMATE.—Any registrant that

12 elects to make estimates required by this Act under the

13 procedures authorized by subsection (a) or (b) for report14 ing or threshold purposes shall—

15 (1) inform the Secretary of the Senate and the

16 Clerk of the House of Representatives that the reg17 istrant has elected to make its estimates under such

18 procedures; and

19 (2) make all such estimates, in a given calendar

20 year, under such procedures.

21 (d) STUDY.—Not later than March 31, 1997, the

22 Comptroller General of the United States shall review re23 porting by registrants under subsections (a) and (b) and

24 report to the Congress—
35

•HR 2564 RH

1 (1) the differences between the definition of

2 ‘‘lobbying activities’’ in section 3(8) and the defini3 tions of ‘‘lobbying expenditures’’, ‘‘influencing legis4 lation’’, and related terms in sections 162(e) and

5 4911 of the Internal Revenue Code of 1986, as each

6 are implemented by regulations;

7 (2) the impact that any such differences may

8 have on filing and reporting under this Act pursuant

9 to this subsection; and

10 (3) any changes to this Act or to the appro11 priate sections of the Internal Revenue Code of 1986

12 that the Comptroller General may recommend to

13 harmonize the definitions.

14 SEC. 16. REPEAL OF THE RAMSPECK ACT.

15 (a) REPEAL.—Subsection (c) of section 3304 of title

16 5, United States Code, is repealed.

17 (b) REDESIGNATION.—Subsection (d) of section 3304

18 of title 5, United States Code, is redesignated as sub19 section (c).

20 (c) EFFECTIVE DATE.—The repeal and amendment

21 made by this section shall take effect 2 years after the

22 date of the enactment of this Act.
36

•HR 2564 RH

1 SEC. 17. EXCEPTED SERVICE AND OTHER EXPERIENCE

2 CONSIDERATIONS FOR COMPETITIVE SERV3 ICE APPOINTMENTS.

4 (a) IN GENERAL.—Section 3304 of title 5, United

5 States Code (as amended by section 2 of this Act) is fur6 ther amended by adding at the end thereof the following

7 new subsection:

8 ‘‘(d) The Office of Personnel Management shall pro9 mulgate regulations on the manner and extent that experi10 ence of an individual in a position other than the competi11 tive service, such as the excepted service (as defined under

12 section 2103) in the legislative or judicial branch, or in

13 any private or nonprofit enterprise, may be considered in

14 making appointments to a position in the competitive serv15 ice (as defined under section 2102). In promulgating such

16 regulations OPM shall not grant any preference based on

17 the fact of service in the legislative or judicial branch. The

18 regulations shall be consistent with the principles of equi19 table competition and merit based appointments.’’.

20 (b) EFFECTIVE DATE.—The amendment made by

21 this section shall take effect 2 years after the date of the

22 enactment of this Act, except the Office of Personnel Man23 agement shall—

24 (1) conduct a study on excepted service consid25 erations for competitive service appointments relat26 ing to such amendment; and
37

•HR 2564 RH

1 (2) take all necessary actions for the regula2 tions described under such amendment to take effect

3 as final regulations on the effective date of this sec4 tion.

5 SEC. 18. EXEMPT ORGANIZATIONS.

6 An organization described in section 501(c)(4) of the

7 Internal Revenue Code of 1986 which engages in lobbying

8 activities shall not be eligible for the receipt of Federal

9 funds constituting an award, grant, contract, loan, or any

10 other form.

11 SEC. 19. AMENDMENT TO THE FOREIGN AGENTS REGISTRA12 TION ACT (PUBLIC LAW 75–583).

13 Strike section 11 of the Foreign Agents Registration

14 Act of 1938, as amended, and insert in lieu thereof the

15 following:

16 ‘‘SECTION 11. REPORTS TO THE CONGRESS.—The

17 Attorney General shall every six months report to the Con18 gress concerning administration of this Act, including reg19 istrations filed pursuant to the Act, and the nature,

20 sources and content of political propaganda disseminated

21 and distributed.’’.

22 SEC. 20. DISCLOSURE OF THE VALUE OF ASSETS UNDER

23 THE ETHICS IN GOVERNMENT ACT OF 1978.

24 (a) INCOME.—Section 102(a)(1)(B) of the Ethics in

25 Government Act of 1978 is amended—
38

•HR 2564 RH

1 (1) in clause (vii) by striking ‘‘or’’; and

2 (2) by striking clause (viii) and inserting the

3 following:

4 ‘‘(viii) greater than $1,000,000 but not

5 more than $5,000,000, or

6 ‘‘(ix) greater than $5,000,000.’’.

7 (b) ASSETS AND LIABILITIES.—Section 102(d)(1) of

8 the Ethics in Government Act of 1978 is amended—

9 (1) in subparagraph (F) by striking ‘‘and’’; and

10 (2) by striking subparagraph (G) and inserting

11 the following:

12 ‘‘(G) greater than $1,000,000 but not

13 more than $5,000,000;

14 ‘‘(H) greater than $5,000,000 but not

15 more than $25,000,000;

16 ‘‘(I) greater than $25,000,000 but not

17 more than $50,000,000; and

18 ‘‘(J) greater than $50,000,000.’’.

19 (c) EXCEPTION.—Section 102(e)(1) of the Ethics in

20 Government Act of 1978 is amended by adding after sub21 paragraph (E) the following:

22 ‘‘(F) For purposes of this section, cat23 egories with amounts or values greater than

24 $1,000,000 set forth in sections 102(a)(1)(B)

25 and 102(d)(1) shall apply to the income, assets,
39

•HR 2564 RH

1 or liabilities of spouses and dependent children

2 only if the income, assets, or liabilities are held

3 jointly with the reporting individual. All other

4 income, assets, or liabilities of the spouse or de5 pendent children required to be reported under

6 this section in an amount or value greater than

7 $1,000,000 shall be categorized only as an

8 amount or value greater than $1,000,000.’’.

9 SEC. 21. BAN ON TRADE REPRESENTATIVE REPRESENTING

10 OR ADVISING FOREIGN ENTITIES.

11 (a) REPRESENTING AFTER SERVICE.—Section

12 207(f)(2) of title 18, United States Code, is amended by—

13 (1) inserting ‘‘or Deputy United States Trade

14 Representative’’ after ‘‘is the United States Trade

15 Representative’’; and

16 (2) striking ‘‘within 3 years’’ and inserting ‘‘at

17 any time’’.

18 (b) LIMITATION ON APPOINTMENT AS UNITED

19 STATES TRADE REPRESENTATIVE AND DEPUTY UNITED

20 STATES TRADE REPRESENTATIVE.—Section 141(b) of the

21 Trade Act of 1974 (19 U.S.C. 2171(b)) is amended by

22 adding at the end the following new paragraph:

23 ‘‘(3) LIMITATION ON APPOINTMENTS.—A per24 son who has directly represented, aided, or advised

25 a foreign entity (as defined by section 207(f)(3) of
40

•HR 2564 RH

1 title 18, United States Code) in any trade negotia2 tion, or trade dispute, with the United States may

3 not be appointed as United States Trade Represent4 ative or as a Deputy United States Trade Rep5 resentative.’’.

6 (c) EFFECTIVE DATE.—The amendments made by

7 this section shall apply with respect to an individual ap8 pointed as United States Trade Representative or as a

9 Deputy United States Trade Representative on or after

10 the date of enactment of this Act.

11 SEC. 22. FINANCIAL DISCLOSURE OF INTEREST IN QUALI12 FIED BLIND TRUST.

13 (a) IN GENERAL.—Section 102(a) of the Ethics in

14 Government Act of 1978 is amended by adding at the end

15 thereof the following:

16 ‘‘(8) The category of the total cash value of any

17 interest of the reporting individual in a qualified

18 blind trust, unless the trust instrument was executed

19 prior to July 24, 1995 and precludes the beneficiary

20 from receiving information on the total cash value of

21 any interest in the qualified blind trust.’’.

22 (b) CONFORMING AMENDMENT.—Section 102(d)(1)

23 of the Ethics in Government Act of 1978 is amended by

24 striking ‘‘and (5)’’ and inserting ‘‘(5), and (8)’’.

25 (c) EFFECTIVE DATE.—
41

•HR 2564 RH

1 (1) IN GENERAL.—Except as provided in para2 graph (2), the amendment made by this section shall

3 apply with respect to reports filed under title I of

4 the Ethics in Government Act of 1978 for calendar

5 year 1996 and thereafter.

6 SEC. 23. SENSE OF THE SENATE THAT LOBBYING EXPENSES

7 SHOULD REMAIN NONDEDUCTIBLE.

8 (a) FINDINGS.—The Senate finds that ordinary

9 Americans generally are not allowed to deduct the costs

10 of communicating with their elected representatives.

11 (b) SENSE OF THE SENATE.—It is the sense of the

12 Senate that lobbying expenses should not be tax deduct13 ible.

14 SEC. 24. EFFECTIVE DATES.

15 (a) Except as otherwise provided in this section, this

16 Act and the amendments made by this Act shall take ef17 fect on January 1, 1996.

18 (b) The repeals and amendments made under sec19 tions 13, 14, 15, and 16 shall take effect as provided

20 under subsection (a), except that such repeals and amend21 ments—

22 (1) shall not affect any proceeding or suit com23 menced before the effective date under subsection

24 (a), and in all such proceedings or suits, proceedings

25 shall be had, appeals taken, and judgments rendered
42

•HR 2564 RH

1 in the same manner and with the same effect as if

2 this Act had not been enacted; and

3 (2) shall not affect the requirements of Federal

4 agencies to compile, publish, and retain information

5 filed or received before the effective date of such re6 peals and amendments.

HR 2564 RH——2

HR 2564 RH——3

HR 2564 RH——4