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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2169 Introduced in House (IH)]

  1st Session
                                H. R. 2169

 To provide for the disclosure of lobbying activities to influence the 
              Federal Government, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             August 2, 1995

  Mr. McHale (for himself, Mr. Shays, Mrs. Waldholtz, Mr. Barrett of 
 Wisconsin, Mr. Klug, Mr. Castle, Mr. Minge, Mr. Deal of Georgia, Mr. 
  Dickey, Mr. Zimmer, Mr. Meehan, Mr. Luther, and Mr. Inglis of South 
  Carolina) introduced the following bill; which was referred to the 
                       Committee on the Judiciary

_______________________________________________________________________

                                 A BILL

 
 To provide for the disclosure of lobbying activities to influence the 
              Federal Government, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Lobbying 
Disclosure Reform Act of 1995''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.
Sec. 4. Registration of lobbyists.
Sec. 5. Reports by registered lobbyists.
Sec. 6. Duties of Chairman.
Sec. 7. Initial procedure for alleged violations.
Sec. 8. Determinations of violations.
Sec. 9. Disclosure of information; written decisions.
Sec. 10. Judicial review.
Sec. 11. Conforming amendments to other statutes.
Sec. 12. Severability.
Sec. 13. Authorization of appropriations.
Sec. 14. Identification of clients and covered officials.
Sec. 15. Transitional filing requirement.
Sec. 16. Estimates based on tax reporting system.
Sec. 17. Effective dates and interim rules.
SEC. 2. FINDINGS.

    The Congress finds that--
            (1) responsible representative Government requires public 
        awareness of the efforts of paid lobbyists to influence the 
        public decisionmaking process in both the legislative and 
        executive branches of the Federal Government;
            (2) existing lobbying disclosure statutes have been 
        ineffective because of unclear statutory language, weak 
        administrative and enforcement provisions, and an absence of 
        clear guidance as to who is required to register and what they 
        are required to disclose;
            (3) the effective public disclosure of the identity and 
        extent of the efforts of paid lobbyists to influence Federal 
        officials in the conduct of Government actions will increase 
        public confidence in the integrity of Government;
            (4) citizens acting on their own behalf, regardless of how 
        much money they might spend or how influential they might be 
        perceived to be, should not be subject to reporting and 
        disclosure requirements; and
            (5) grassroots organizations play an important role in a 
        democracy, and individual citizens' right, ability, or ease in 
        participating in ``grassroots'' activities should not be 
        infringed upon.

SEC. 3. DEFINITIONS.

    As used in this Act:
            (1) Agency.--The term ``agency'' has the meaning given that 
        term in section 551(1) of title 5, United States Code.
            (2) Client.--The term ``client'' means any person or entity 
        that employs or retains another person for financial or other 
        compensation to conduct lobbying activities on behalf of that 
        person or entity. A person or entity whose employees act as 
        lobbyists on its own behalf is both a client and an employer of 
        such employees. In the case of a coalition or association that 
        employs or retains other persons to conduct lobbying 
        activities, the client is the coalition or association and not 
        its individual members.
            (3) Covered executive branch official.--The term ``covered 
        executive branch official'' means--
                    (A) the President;
                    (B) the Vice President;
                    (C) any officer or employee, or any other 
                individual functioning in the capacity of such an 
                officer or employee, in the Executive Office of the 
                President;
                    (D) any officer or employee serving in a position 
                in level I, II, III, IV, or V of the Executive 
                Schedule, as designated by statute or Executive order;
                    (E) any officer or employee serving in a Senior 
                Executive Service position, as defined in section 
                3132(a)(2) of title 5, United States Code;
                    (F) any member of the uniformed services whose pay 
                grade is at or above O-7 under section 201 of title 37, 
                United States Code; and
                    (G) any officer or employee serving in a position 
                of a confidential, policy-determining, policy-making, 
                or policy-advocating character described in section 
                7511(b)(2) of title 5, United States Code.
            (4) Covered legislative branch official.--The term 
        ``covered legislative branch official'' means--
                    (A) a Member of Congress;
                    (B) an elected officer of either House of Congress;
                    (C) any employee of, or any other individual 
                functioning in the capacity of an employee of--
                            (i) a Member of Congress;
                            (ii) a committee of either House of 
                        Congress;
                            (iii) the leadership staff of the House of 
                        Representatives or the leadership staff of the 
                        Senate;
                            (iv) a joint committee of Congress; and
                            (v) a working group or caucus organized to 
                        provide legislative services or other 
                        assistance to Members of Congress; and
                    (D) any other legislative branch employee serving 
                in a position described under section 109(13) of the 
                Ethics in Government Act of 1978 (5 U.S.C. App.).
            (5) Chairman.--The term ``Chairman'' means the Chairman of 
        the Federal Election Commission.
            (6) Attorney general.--The term ``Attorney General'' means 
        the Attorney General of the United States.
            (7) Employee.--The term ``employee'' means any individual 
        who is an officer, employee, partner, director, or proprietor 
        of a person or entity, but does not include--
                    (A) independent contractors;
                    (B) volunteers who receive no financial or other 
                compensation from the person or entity for their 
                services; and
                    (C) individual citizens acting on their own behalf.
            (8) Foreign entity.--The term ``foreign entity'' means a 
        foreign principal (as defined in section 1(b) of the Foreign 
        Agents Registration Act of 1938 (22 U.S.C. 611(b)).
            (9) Lobbying activities.--The term ``lobbying activities'' 
        means lobbying contacts and efforts in support of such 
        contacts, including preparation and planning activities, 
        research and other background work that is intended, at the 
        time it is performed, for use in contacts, and coordination 
        with the lobbying activities of others. Lobbying activities 
        also include efforts to stimulate grassroots lobbying, as 
        described in section 4911(d)(1)(A) of the Internal Revenue Code 
        of 1986, to the extent that such communications are made in 
        support of a lobbying contact by a registered lobbyist. A 
        communication in support of a lobbying contact is a lobbying 
        activity even if the communication is excluded from the 
        definition of ``lobbying contact'' under paragraph (10)(B).
            (10) Lobbying contact.--
                    (A) Definition.--The term ``lobbying contact'' 
                means any oral or written communication (including an 
                electronic communication) to a covered executive branch 
                official or a covered legislative branch official that 
                is made on behalf of a client with regard to--
                            (i) the formulation, modification, or 
                        adoption of Federal legislation (including 
                        legislative proposals);
                            (ii) the formulation, modification, or 
                        adoption of a Federal rule, regulation, 
                        Executive order, or any other program, policy, 
                        or position of the United States Government;
                            (iii) the administration or execution of a 
                        Federal program or policy (including the 
                        negotiation, award, or administration of a 
                        Federal contract, grant, loan, permit, or 
                        license), except that this clause does not 
                        include communications that are made to any 
                        covered executive branch official--
                                    (I) who is serving in a Senior 
                                Executive Service position described in 
                                paragraph (3)(E); or
                                    (II) who is a member of the 
                                uniformed services whose pay grade is 
                                lower than O-9 under section 201 of 
                                title 37, United States Code,
                        in the agency responsible for taking such 
                        administrative or executive action; or
                            (iv) the nomination or confirmation of a 
                        person for a position subject to confirmation 
                        by the Senate.
                    (B) Exceptions.--The term ``lobbying contact'' does 
                not include a communication that is--
                            (i) required by subpoena, civil 
                        investigative demand, or otherwise compelled by 
                        statute, regulation, or other action of the 
                        Congress or an agency; and
                            (ii) made by--
                                    (I) a church, its integrated 
                                auxiliary, or a convention or 
                                association of churches that is exempt 
                                from filing a Federal income tax return 
                                under paragraph (2)(A)(i) of section 
                                6033(a) of the Internal Revenue Code of 
                                1986, or
                                    (II) a religious order that is 
                                exempt from filing a Federal income tax 
                                return under paragraph (2)(A)(iii) of 
                                such section 6033(a);
                            (iii) between--
                                    (I) officials of a self-regulatory 
                                organization (as defined in section 
                                3(a)(26) of the Securities Exchange Act 
                                of 1934) that is registered with or 
                                established by the Securities and 
                                Exchange Commission as required by that 
                                Act or a similar organization that is 
                                designated by or registered with the 
                                Commodities Future Trading Commission 
                                as provided under the Commodity 
                                Exchange Act; and
                                    (II) the Securities and Exchange 
                                Commission or the Commodities Future 
                                Trading Commission, respectively;
                        relating to the regulatory responsibilities of 
                        such organization under that Act;
                            (iv) testimony given before a committee, 
                        subcommittee, or task force of the Congress, or 
                        submitted for inclusion in the public record of 
                        a hearing conducted by such committee, 
                        subcommittee, or task force;
                            (v) made in response to a notice in the 
                        Federal Register, Commerce Business Daily, or 
                        other similar publication soliciting 
                        communications from the public and directed to 
                        the agency official specifically designated in 
                        the notice to receive such communications;
                            (vi) made to an official in an agency with 
                        regard to--
                                    (I) a judicial proceeding or a 
                                criminal or civil law enforcement 
                                inquiry, investigation, or proceeding; 
                                or
                                    (II) a filing or proceeding that 
                                the Government is specifically required 
                                by statute or regulation to maintain or 
                                conduct on a confidential basis,
                        if that agency is charged with responsibility 
                        for such proceeding, inquiry, investigation, or 
                        filing.
            (11) Lobbying firm.--The term ``lobbying firm'' means a 
        person or entity that has 1 or more employees who are lobbyists 
        on behalf of a client other than that person or entity. The 
        term also includes a self-employed individual who is a 
        lobbyist.
            (12) Lobbyist.--The term ``lobbyist'' means any individual 
        who is employed or retained by a client for financial or other 
        compensation for services that include 1 or more lobbying 
        contacts, other than an individual whose lobbying activities 
        constitute less than 10 percent of the time engaged in the 
        services provided by such individual to that client.
            (13) Member of congress.--The term ``Member of Congress'' 
        means a Senator or a Representative in, or Delegate or Resident 
        Commissioner to, the Congress.
            (14) Organization.--The term ``organization'' means a 
        person or entity other than an individual.
            (15) Person or entity.--The term ``person or entity'' means 
        any individual, corporation, company, foundation, association, 
        labor organization, firm, partnership, society, joint stock 
        company, group of organizations, or State or local government.
            (16) State.--The term ``State'' means each of the several 
        States, the District of Columbia, and any commonwealth, 
        territory, or possession of the United States.

SEC. 4. REGISTRATION OF LOBBYISTS.

    (a) Registration.--
            (1) General rule.--No later than 30 days after a lobbyist 
        first makes a lobbying contact or is employed or retained to 
        make a lobbying contact, whichever is earlier, such lobbyist 
        (or, as provided under paragraph (2), the organization 
        employing such lobbyist), shall register with the Federal 
        Elections Commission.
            (2) Employer filing.--Any organization that has 1 or more 
        employees who are lobbyists shall file a single registration 
        under this section on behalf of such employees for each client 
        on whose behalf the employees act as lobbyists.
            (3) Exemption.--
                    (A) General rule.--Notwithstanding paragraphs (1) 
                and (2), a person or entity whose--
                            (i) total income for matters related to 
                        lobbying activities on behalf of a particular 
                        client (in the case of a lobbying firm) does 
                        not exceed and is not expected to exceed 
                        $2,500;
                            (ii) the total income in connection with 
                        lobbying activities in a 6-month period does 
                        not exceed $5,000; or
                            (iii) total expenses in connection with 
                        lobbying activities (in the case of an 
                        organization whose employees engage in lobbying 
                        activities on its own behalf) do not exceed or 
                        are not expected to exceed $5,000,
                (as estimated under section 5) in the semiannual period 
                described in section 5(a) during which the registration 
                would be made is not required to register under 
                subsection (a) with respect to such client.
                    (B) Adjustment.--The dollar amounts in subparagraph 
                (A) shall be adjusted--
                            (i) on January 1, 1997, to reflect changes 
                        in the Consumer Price Index (as determined by 
                        the Secretary of Labor) since the date of 
                        enactment of this Act; and
                            (ii) on January 1 of each fourth year 
                        occurring after January 1, 1997, to reflect 
                        changes in the Consumer Price Index (as 
                        determined by the Secretary of Labor) during 
                        the preceding 4-year period,
                rounded to the nearest $500.
    (b) Contents of Registration.--Each registration under this section 
shall be in such form as the Chairman shall prescribe by regulation and 
shall contain--
            (1) the name, address, business telephone number, and 
        principal place of business of the registrant, and a general 
        description of its business or activities;
            (2) the name, address, and principal place of business of 
        the registrant's client, and a general description of its 
        business or activities (if different from paragraph (1));
            (3) the name, address, and principal place of business of 
        any organization, other than the client, that--
                    (A) contributes more than $5,000 toward the 
                lobbying activities of the registrant in a semiannual 
                period described in section 5(a); and
                    (B) participates significantly in the planning, 
                supervision, or control of such lobbying activities;
            (4) the name, address, principal place of business, amount 
        of any contribution of more than $5,000 to the lobbying 
        activities of the registrant, and approximate percentage of 
        equitable ownership in the client (if any) of any foreign 
        entity that--
                    (A) holds at least 20 percent equitable ownership 
                in the client or any organization identified under 
                paragraph (3);
                    (B) directly or indirectly, in whole or in major 
                part, plans, supervises, controls, directs, finances, 
                or subsidizes the activities of the client or any 
                organization identified under paragraph (3); or
                    (C) is an affiliate of the client or any 
                organization identified under paragraph (3) and has a 
                direct interest in the outcome of the lobbying 
                activity;
            (5) a statement of--
                    (A) the general issue areas in which the registrant 
                expects to engage in lobbying activities on behalf of 
                the client; and
                    (B) to the extent practicable, specific issues that 
                have (as of the date of the registration) already been 
                addressed or are likely to be addressed in lobbying 
                activities; and
            (6) the name of each employee of the registrant who has 
        acted or whom the registrant expects to act as a lobbyist on 
        behalf of the client and, if any such employee has served as a 
        covered executive branch official or a covered legislative 
        branch official in the 5 years before the date on which such 
        employee first acted (after the date of enactment of this Act) 
        as a lobbyist on behalf of the client, the position in which 
        such employee served and the Member, committee, or agency for 
        which the individual served.
    (c) Guidelines for Registration.--
            (1) Multiple clients.--In the case of a registrant making 
        lobbying contacts on behalf of more than 1 client, a separate 
        registration under this section shall be filed for each such 
        client.
            (2) Multiple contacts.--A registrant who makes more than 1 
        lobbying contact for the same client shall file a single 
        registration covering all such lobbying contacts.
    (d) Termination of Registration.--A registrant who after 
registration--
            (1) is no longer employed or retained by a client to 
        conduct lobbying activities, and
            (2) does not anticipate any additional lobbying activities 
        for such client,
may so notify the Chairman and terminate its registration.

SEC. 5. REPORTS BY REGISTERED LOBBYISTS.

    (a) Semiannual Report.--
            (1) In general.--No later than 30 days after the end of the 
        semiannual period beginning on the first day of each January 
        and the first day of July of each year in which a registrant is 
        registered under section 4, each registrant shall file a report 
        with the Federal Election Commission (hereinafter referred to 
        as the ``Commission'') on its lobbying activities during such 
        semiannual period. A separate report shall be filed for each 
        client of the registrant.
            (2) Exemption.--
                    (A) General rule.--Any registrant whose--
                            (i) total income for a particular client 
                        for matters that are related to lobbying 
                        activities on behalf of that client (in the 
                        case of a lobbying firm), does not exceed and 
                        is not expected to exceed $2,500;
                            (ii) the total income in connection with 
                        lobbying activities in a 6-month period does 
                        not exceed $5,000; or
                            (iii) total expenses in connection with 
                        lobbying activities (in the case of a 
                        registrant whose employees engage in lobbying 
                        activities on its own behalf) do not exceed and 
                        are not expected to exceed $5,000,
                in a semiannual period (as estimated under paragraph 
                (3) or (4) of subsection (b) or paragraph (4) of 
                subsection (c), as applicable) is deemed to be inactive 
                during such period and may comply with the reporting 
                requirements of this section by so notifying the 
                Chairman in such form as the Chairman may prescribe.
                    (B) Adjustment.--The dollar amounts in subparagraph 
                (A) shall be adjusted as provided in section 
                4(a)(3)(B).
    (b) Contents of Report.--Each semiannual report filed under 
subsection (a) shall be in such form as the Chairman shall prescribe by 
regulation and shall contain--
            (1) the name of the registrant, the name of the client, and 
        any changes or updates to the information provided in the 
        initial registration;
            (2) for each general issue area in which the registrant 
        engaged in lobbying activities on behalf of the client during 
        the semiannual filing period--
                    (A) a list of the specific issues upon which a 
                lobbyist employed by the registrant engaged in lobbying 
                activities, including, to the maximum extent 
                practicable, a list of bill numbers and references to 
                specific regulatory actions, programs, projects, 
                contracts, grants, and loans;
                    (B) a statement of the Houses and committees of 
                Congress and the Federal agencies contacted by 
                lobbyists employed by the registrant on behalf of the 
                client;
                    (C) a list of the employees of the registrant who 
                acted as lobbyists on behalf of the client; and
                    (D) a description of the interest, if any, of any 
                foreign entity identified under section 4(b)(4) in the 
                specific issues listed under subparagraph (A).
            (3) in the case of a lobbying firm, a good faith estimate 
        of the total amount of all income from the client (including 
        any payments to the registrant by any other person for lobbying 
        activities on behalf of the client) during the semiannual 
        period, other than income for matters that are unrelated to 
        lobbying activities; and
            (4) in the case of a registrant engaged in lobbying 
        activities on its own behalf, a good faith estimate of the 
        total expenses that the registrant and its employees incurred 
        in connection with lobbying activities during the semiannual 
        filing period.
    (c) Estimates of Income or Expenses.--For purposes of this section, 
estimates of income or expenses shall be made as follows:
            (1) $100,000 or less.--Income or expenses of $100,000 or 
        less shall be estimated in accordance with the following 
        categories:
                    (A) $10,000 or less.
                    (B) More than $10,000 but not more than $20,000.
                    (C) More than $20,000 but not more than $50,000.
                    (D) More than $50,000 but not more than $100,000.
            (2) More than $100,000 but not more than $500,000.--Income 
        or expenses in excess of $100,000 but not more than $500,000 
        shall be estimated and rounded to the nearest $50,000.
            (3) More than $500,000.--Income or expenses in excess of 
        $500,000 shall be estimated and rounded to the nearest 
        $100,000.
            (4) Construction.--In estimating total income or expenses 
        under this section, a registrant is not required to include--
                    (A) the value of contributed services for which no 
                payment is made; or
                    (B) the expenses for services provided by an 
                independent contractor of the registrant who is 
                separately registered under this Act.
    (d)  Contacts.--
            (1) Contacts with committees.--For purposes of subsection 
        (b)(2), any contact with a member of a committee of Congress, 
        an employee of a committee of Congress, or an employee of a 
        member of a committee of Congress regarding a matter within the 
        jurisdiction of such committee shall be considered to be a 
        contact with the committee.
            (2) Contacts with house of congress.--For purposes of 
        subsection (b)(2), any contact with a Member of Congress or an 
        employee of a Member of Congress regarding a matter that is not 
        within the jurisdiction of a committee of Congress of which 
        that Member is a member shall be considered to be a contact 
        with the House of Congress of that Member.
            (3) Contacts with federal agencies.--For purposes of 
        subsection (b)(2), any contact with a covered executive branch 
        official shall be considered to be a contact with the Federal 
        agency that employs that official, except that a contact with a 
        covered executive branch official who is detailed to another 
        Federal agency or to the Congress shall be considered to be a 
        contact with the Federal agency or with the committee of 
        Congress or House of Congress to which the official is 
        detailed.
    (e) Extension for Filing.--The Chairman may grant an extension of 
time of not more than 30 days for the filing of any report under this 
section, upon the request of the registrant, for good cause shown.
SEC. 6. DUTIES OF CHAIRMAN.

    The Chairman shall--
            (1) after notice and a reasonable opportunity for public 
        comment, and consultation with the Secretary of the Senate, the 
        Clerk of the House of Representatives, and the Administrative 
        Conference of the United States, prescribe such regulations and 
        forms as are necessary to carry out the registration and 
        reporting requirements of this Act;
            (2) provide guidance and assistance on the registration and 
        reporting requirements of this Act, including--
                    (A) providing information to all registrants at the 
                time of registration about the obligations of 
                registered lobbyists under this Act, and
                    (B) issuing published decisions and advisory 
                opinions;
            (3) review the registrations and reports filed under this 
        Act and make such verifications or inquiries as are necessary 
        to ensure the completeness, accuracy, and timeliness of the 
        registrations and reports;
            (4) develop filing, coding, and cross-indexing systems to 
        carry out the purposes of this Act, including--
                    (A) a publicly available list of all registered 
                lobbyists and their clients; and
                    (B) computerized systems designed to minimize the 
                burden of filing and maximize public access to 
                materials filed under this Act;
            (5) ensure that the computer systems developed pursuant to 
        paragraph (4)--
                    (A) allow the materials filed under this Act to be 
                accessed by the client name, lobbyist name, and 
                registrant name;
                    (B) are compatible with or are the same as computer 
                systems already developed and maintained by the Federal 
                Election Commission, and that information filed in the 
                two systems can be readily cross-referenced; and
                    (C) are compatible with computer systems developed 
                and maintained by the Secretary of the Senate and the 
                Clerk of the House of Representatives;
            (6) make copies of each registration and report filed under 
        this Act available to the public, upon the payment of 
        reasonable fees, not to exceed the cost of such copies, as 
        determined by the Chairman, in written and electronic formats, 
        as soon as practicable after the date on which such 
        registration or report is received;
            (7) preserve the originals or accurate reproduction of--
                    (A) registrations filed under this Act for a period 
                that ends not less than 3 years after the termination 
                of the registration under section 4(d); and
                    (B) reports filed under this Act for a period that 
                ends not less than 3 years after the date on which the 
                report is received;
            (8) maintain a computer record of--
                    (A) the information contained in registrations for 
                a period that ends not less than 5 years after the 
                termination of the registration under section 4(d); and
                    (B) the information contained in reports filed 
                under this Act for a period that ends not less than 5 
                years after the date on which the reports are received;
            (9) compile and summarize, with respect to each semiannual 
        period, the information contained in registrations and reports 
        filed with respect to such period in a manner which clearly 
        presents the extent and nature of expenditures on lobbying 
        activities during such period;
            (10) make information compiled and summarized under 
        paragraph (9) available to the public in electronic and hard 
        copy formats as soon as practicable after the close of each 
        semiannual filing period;
            (11) provide, by computer telecommunication or other 
        transmittal in a form accessible by computer, to the Secretary 
        of the Senate and the Clerk of the House of Representatives 
        copies of all registrations and reports received under sections 
        4 and 5 and all compilations, cross-indexes, and summaries of 
        such registrations and reports, as soon as practicable (but not 
        later than 3 working days) after such material is received or 
        created;
            (12) provide, by computer telecommunication or other 
        transmittal in a form accessible by computer, to the Attorney 
        General, copies of all registrations and reports received under 
        sections 4 and 5 on all compilations, cross-indexes, and 
        summaries of such registrations and reports, as soon as 
        practicable (but not later than 3 working days) after such 
        material is received or created;
            (13) make available to the public a list of all persons 
        whom the Attorney General determines, under section 8 (after 
        exhaustion of all appeals under section 10) to have committed a 
        major or minor violation of this Act and submit such list to 
        the Congress as part of the report provided for under paragraph 
        (14); and
            (14) make available to the public upon request and transmit 
        to the President, the Secretary of the Senate, the Clerk of the 
        House of Representatives, the Committee on Governmental Affairs 
        of the Senate, and the Committee on the Judiciary of the House 
        of Representatives a report, not later than March 31 of each 
        year, describing the activities of the Commission and the 
        implementation of this Act, including--
                    (A) a financial statement for the preceding fiscal 
                year;
                    (B) a summary of the registrations and reports 
                filed with the Commission with respect to the preceding 
                calendar year;
                    (C) a summary of the registrations and reports 
                filed on behalf of foreign entities with respect to the 
                preceding calendar year; and
                    (D) recommendations for such legislative or other 
                action as the Chairman considers appropriate.

SEC. 7. INITIAL PROCEDURE FOR ALLEGED VIOLATIONS.

    (a) Allegation of a Violation.--Whenever the Attorney General has 
reason to believe from complaints filed with the Attorney General or 
otherwise that a person or entity may be in violation of the 
requirements of this Act, the Attorney General shall notify the person 
or entity in writing of the nature of the alleged violation and provide 
an opportunity for the person or entity to respond in writing to the 
allegation within 30 days after the notification is sent or such longer 
period as the Attorney General may determine appropriate in the 
circumstances.
    (b) Initial Determination.--
            (1) In general.--If the person or entity responds within 
        the period described in the notification under subsection (a), 
        the Attorney General shall--
                    (A) issue a written determination that the person 
                or entity has not violated this Act if the person or 
                entity provides adequate information or explanation to 
                make such determination; or
                    (B) make a formal request for information under 
                subsection (c) or a notification under section 8(a), if 
                the information or explanation provided is not adequate 
                to make a determination under subparagraph (A).
            (2) Written decision.--If the Attorney General makes a 
        determination under paragraph (1)(A), the Attorney General 
        shall issue a public written decision in accordance with 
        section 9.
    (c) Formal Request for Information.--If a person or entity fails to 
respond in writing within the period described in the notification 
under subsection (a) or the response is not adequate to determine 
whether such person or entity has violated this Act, the Attorney 
General may make a formal request for specific additional written 
information (subject to applicable privileges) that is reasonably 
necessary for the Attorney General to make such determination. Each 
such request shall be structured to minimize any burden imposed, 
consistent with the need to determine whether the person or entity is 
in compliance with this Act, and shall--
            (1) state the nature of the conduct constituting the 
        alleged violation which is the basis for the inquiry and the 
        provision of law applicable thereto;
            (2) describe the class or classes of material to be 
        produced pursuant to the request with such definiteness and 
        certainty as to permit such material to be readily identified; 
        and
            (3) prescribe a return date or dates which provide a 
        reasonable period of time within which the person or entity may 
        assemble and make available for inspection and copying or 
        reproduction the material so requested.

SEC. 8. DETERMINATIONS OF VIOLATIONS.

    (a) Notification and Hearing.--If the information provided to the 
Attorney General under section 7 indicates that a person or entity may 
have violated this Act, the Attorney General shall--
            (1) notify the person or entity in writing of this finding 
        and, if appropriate, a proposed penalty assessment and provide 
        such person or entity with an opportunity to respond in writing 
        within 30 days after the notice is sent; and
            (2) if requested in writing by that person or entity within 
        that 30-day period, afford the person or entity an opportunity 
        for a hearing on the record under the provisions of section 554 
        of title 5, United States Code.
    (b) Determination.--Upon the receipt of a written response under 
subsection (a)(1) when no hearing under subsection (a)(2) is requested, 
upon the completion of a hearing requested under subsection (a)(2), or 
upon the expiration of 30 days in a case in which no such written 
response is received, the Attorney General shall review the information 
received under section 7 and this section (including evidence presented 
at any such hearing) and make a final determination whether there was a 
violation and a final determination of the penalty, if any. If no 
written response was received under this section within the 30-day 
period provided, the determination and penalty assessment shall 
constitute a final order not subject to appeal.
    (c) Written Decision.--
            (1) Determination of violation.--If the Attorney General 
        makes a final determination under subsection (b) that there was 
        a violation, the Attorney General shall issue a written 
        decision in accordance with section 9--
                    (A) directing the person or entity to correct the 
                violation; and
                    (B) assessing a civil monetary penalty--
                            (i) in the case of a minor violation, which 
                        shall be no more than $10,000, depending on the 
                        extent and gravity of the violation;
                            (ii) in the case of a major violation, 
                        which shall be more than $10,000, but no more 
                        than $100,000, depending on the extent and 
                        gravity of the violation;
                            (iii) in the case of a late registration or 
                        filing, which shall be $200 for each week by 
                        which the registration or filing was late, 
                        unless the Attorney General determines that the 
                        failure to timely register or file constitutes 
                        a major violation (as defined under subsection 
                        (e)(2)) in which case the amount shall be as 
                        prescribed by clause (ii); or
                            (iv) in the case of a failure to provide 
                        information requested by the Attorney General 
                        pursuant to section 7(c), which shall be no 
                        more than $10,000, depending on the extent and 
                        gravity of the violation, except that no 
                        penalty shall be assessed if the Attorney 
                        General determines that the violation was the 
                        result of a good faith dispute over the 
                        validity or appropriate scope of a request for 
                        information.
            (2) Determination of no violation or insufficient 
        evidence.--If the Attorney General determines that no violation 
        occurred or there was not sufficient evidence that a violation 
        occurred, the Attorney General shall issue a written decision 
        in accordance with section 9.
    (d) Civil Injunctive Relief.--If a person or entity fails to comply 
with a directive to correct a violation under subsection (c), the 
Attorney General may seek civil injunctive relief in the appropriate 
court of the United States to compel such person or entity to comply 
with such directive.
    (e) Penalty Guidelines.--The Attorney General shall, after notice 
and a reasonable opportunity for public comment and consultation with 
the Secretary of the Senate, the Clerk of the House of Representatives, 
and the Administrative Conference of the United States, prescribe such 
penalty guidelines as are necessary to carry out this Act.
    (f) Penalty Assessments.--
            (1) General rule.--No penalty shall be assessed under this 
        section unless the Attorney General finds that the person or 
        entity subject to the penalty knew or should have known that 
        such person or entity was in violation of this Act. In 
        determining the amount of a penalty to be assessed, the 
        Attorney General shall take into account the totality of the 
        circumstances, including the extent and gravity of the 
        violation, whether the violation was voluntarily admitted and 
        corrected, the extent to which the person or entity may have 
        profited from the violation, the ability of the person or 
        entity to pay, and such other matters as justice may require.
            (2) Regulations.--Major violations shall be defined to 
        include a failure to register and any other violation that is 
        extensive or repeated, if the person or entity who failed to 
        register or committed such other violation--
                    (A) had actual knowledge that the conduct 
                constituted a violation;
                    (B) acted in deliberate ignorance of the provisions 
                of this Act or regulations related to the conduct 
                constituting a violation; or
                    (C) acted in reckless disregard of the provisions 
                of this Act or regulations related to the conduct 
                constituting a violation.
    (g) Limitation.--No proceeding shall be initiated under section 7 
or this section unless the Attorney General notifies the person or 
entity who is to be the subject of the proceeding of the alleged 
violation within 3 years after the date on which the alleged violation 
occurred.

SEC. 9. DISCLOSURE OF INFORMATION; WRITTEN DECISIONS.

    (a) Disclosure of Information.--Information provided to the 
Attorney General pursuant to sections 7 and 8 shall not be made 
available to the public without the consent of the person or entity 
providing the information, except to the extent that such information 
may be included in--
            (1) a new or amended report or registration filed under 
        this Act; or
            (2) a written decision issued by the Attorney General under 
        this section.
    (b) Written Decisions.--All written decisions issued by the 
Attorney General under sections 7 and 8 shall be made available to the 
public. The Attorney General may provide for the publication of a 
written decision if the Attorney General determines that publication 
would provide useful guidance. Before making a written decision public, 
the Attorney General--
            (1) shall delete information that would identify a person 
        or entity who was alleged to have violated this Act if--
                    (A) there was insufficient evidence to determine 
                that the person or entity violated this Act or the 
                Attorney General found that person or entity did not 
                violate this Act, and
                    (B) the person or entity so requests; and
            (2) shall delete information that would identify any other 
        person or entity (other than a person or entity who was found 
        to have violated this Act), if the Attorney General determines 
        that such person or entity could reasonably be expected to be 
        injured by the disclosure of such information.

SEC. 10. JUDICIAL REVIEW.

    (a) Final Decision.--A written decision issued by the Attorney 
General under section 8 shall become final 60 days after the date on 
which the Attorney General provides notice of the decision, unless such 
decision is appealed under subsection (b) of this section.
    (b) Appeal.--Any person or entity adversely affected by a written 
decision issued by the Attorney General under section 8 may appeal such 
decision, except as provided under section 8(b), to the appropriate 
United States court of appeals. Such review may be obtained by filing a 
written notice of appeal in such court no later than 60 days after the 
date on which the Attorney General provides notice of the Attorney 
General's decision and by simultaneously sending a copy of such notice 
of appeal to the Attorney General. The Attorney General shall file in 
such court the record upon which the decision was issued, as provided 
under section 2112 of title 28, United States Code. The findings of 
fact of the Attorney General shall be conclusive, unless found to be 
unsupported by substantial evidence, as provided under section 
706(2)(E) of title 5, United States Code. Any penalty assessed or other 
action taken in the decision shall be stayed during the pendency of the 
appeal.
    (c) Recovery of Penalty.--Any penalty assessed in a written 
decision which has become final under this Act may be recovered in a 
civil action brought by the Attorney General in an appropriate United 
States district court. In any such action, no matter that was raised or 
that could have been raised before the Attorney General or pursuant to 
judicial review under subsection (b) may be raised as a defense, and 
the determination of liability and the determination of amounts of 
penalties and assessments shall not be subject to review.

SEC. 11. CONFORMING AMENDMENTS TO OTHER STATUTES.

    (a) Amendment to Competitiveness Policy Council Act.--Section 
5206(e) of the Competitiveness Policy Council Act (15 U.S.C. 4804(e)) 
is amended by inserting ``or a lobbyist for a foreign entity (as the 
terms `lobbyist' and `foreign entity' are defined under section 3 of 
the Lobbying Disclosure Act of 1995)'' after ``an agent for a foreign 
principal''.
    (b) Amendments to Title 18, United States Code.--Section 219(a) of 
title 18, United States Code, is amended--
            (1) by inserting ``or a lobbyist required to register under 
        the Lobbying Disclosure Act of 1995 in connection with the 
        representation of a foreign entity, as defined in section 3(8) 
        of that Act'' after ``an agent of a foreign principal required 
        to register under the Foreign Agents Registration Act of 
        1938''; and
            (2) by striking out ``, as amended,''.
    (c) Amendment to Foreign Service Act of 1980.--Section 602(c) of 
the Foreign Service Act of 1980 (22 U.S.C. 4002(c)) is amended by 
inserting ``or a lobbyist for a foreign entity (as defined in section 
3(8) of the Lobbying Disclosure Act of 1995)'' after ``an agent of a 
foreign principal (as defined by section 1(b) of the Foreign Agents 
Registration Act of 1938)''.

SEC. 12. SEVERABILITY.

    If any provision of this Act, or the application thereof, is held 
invalid, the validity of the remainder of this Act and the application 
of such provision to other persons and circumstances shall not be 
affected thereby.

SEC. 13. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated for fiscal years 1995, 
1996, 1997, 1998, and 1999 such sums as may be necessary to carry out 
this Act.
SEC. 14. IDENTIFICATION OF CLIENTS AND COVERED OFFICIALS.

    (a) Oral Lobbying Contacts.--Any person or entity that makes an 
oral lobbying contact with a covered legislative branch official or a 
covered executive branch official shall, on the request of the official 
at the time of the lobbying contact--
            (1) state whether the person or entity is registered under 
        this Act and identify the client on whose behalf the lobbying 
        contact is made; and
            (2) state whether such client is a foreign entity and 
        identify any foreign entity required to be disclosed under 
        section 4(b)(4) that has a direct interest in the outcome of 
        the lobbying activity.
    (b) Written Lobbying Contacts.--Any person or entity registered 
under this Act that makes a written lobbying contact (including an 
electronic communication) with a covered legislative branch official or 
a covered executive branch official shall--
            (1) if the client on whose behalf the lobbying contact was 
        made is a foreign entity, identify such client, state that the 
        client is considered a foreign entity under this Act, and state 
        whether the person making the lobbying contact is registered on 
        behalf of that client under section 4; and
            (2) identify any other foreign entity identified pursuant 
        to section 4(b)(4) that has a direct interest in the outcome of 
        the lobbying activity.
    (c) Identification as Covered Official.--Upon request by a person 
or entity making a lobbying contact, the individual who is contacted or 
the office employing that individual shall indicate whether or not the 
individual is a covered legislative branch official or a covered 
executive branch official.

SEC. 15. TRANSITIONAL FILING REQUIREMENT.

    (a) Simultaneous Filing.--Subject to subsection (b), each 
registrant shall transmit simultaneously to the
 Secretary of the Senate and the Clerk of the House of Representatives 
an identical copy of each registration and report required to be filed 
under this Act.
    (b) Sunset Provision.--The simultaneous filing requirement under 
subsection (a) shall be effective until such time as the Chairman, in 
consultation with the Secretary of the Senate and the Clerk of the 
House of Representatives, determines that the Federal Elections 
Commission is able to provide computer telecommunication or other 
transmittal of registrations and reports as required under section 
6(11).
    (c) Implementation.--The Chairman, the Secretary of the Senate, and 
the Clerk of the House of Representatives shall take such actions as 
necessary to ensure that the Federal Elections Commission is able to 
provide computer telecommunication or other transmittal of 
registrations and reports as required under section 6(11) on the 
effective date of this Act, or as soon thereafter as reasonably 
practicable.

SEC. 16. ESTIMATES BASED ON TAX REPORTING SYSTEM.

    (a) Entities Covered by Section 6033(b) of the Internal Revenue 
Code of 1986.--A registrant that is required to report and does report 
lobbying expenditures pursuant to section 6033(b)(8) of the Internal 
Revenue Code of 1986 may--
            (1) make a good faith estimate (by category of dollar 
        value) of applicable amounts that would be required to be 
        disclosed under such section for the appropriate semiannual 
        period to meet the requirements of sections 4(a)(3), 5(a)(2), 
        and 5(b)(4); and
            (2) in lieu of using the definition of ``lobbying 
        activities'' in section 3(9) of this Act, consider as lobbying 
        activities only those activities that are influencing 
        legislation as defined in section 4911(d) of the Internal 
        Revenue Code of 1986.
    (b) Entities Covered by Section 162(e) of the Internal Revenue Code 
of 1986.--A registrant that is required to account for lobbying 
expenditures and does account for lobbying expenditures pursuant to 
section 162(e) of the Internal Revenue Code of 1986 may--
            (1) make a good faith estimate (by category of dollar 
        value) of applicable amounts that would not be deductible 
        pursuant to such section for the appropriate semiannual period 
        to meet the requirements of sections 4(a)(3), 5(a)(2), and 
        5(b)(4); and
            (2) in lieu of using the definition of ``lobbying 
        activities'' in section 3(9) of this Act, consider as lobbying 
        activities only those activities, the costs of which are not 
        deductible pursuant to section 162(e) of the Internal Revenue 
        Code of 1986.
    (c) Disclosure of Estimate.--Any registrant that elects to make 
estimates required by this Act under the procedures authorized by 
subsection (a) or (b) for reporting or threshold purposes shall--
            (1) inform the Chairman that the registrant has elected to 
        make its estimates under such procedures; and
            (2) make all such estimates, in a given calendar year, 
        under such procedures.
    (d) Study.--Not later than March 31, 1997, the Comptroller General 
of the United States shall review reporting by registrants under 
subsections (a) and (b) and report to the Congress--
            (1) the differences between the definition of ``lobbying 
        activities'' in section 3(9) and the definitions of ``lobbying 
        expenditures'', ``influencing legislation'', and related terms 
        in sections 162(e) and 4911 of the Internal Revenue Code of 
        1986, as each are implemented by regulations;
            (2) the impact that any such differences may have on filing 
        and reporting under this Act pursuant to this subsection; and
            (3) any changes to this Act or to the appropriate sections 
        of the Internal Revenue Code of 1986 that the Comptroller 
        General may recommend to harmonize the definitions.

SEC. 17. EFFECTIVE DATES AND INTERIM RULES.

    (a) In General.--Except as otherwise provided in this section, this 
Act and the amendments made by this Act shall take effect January 1, 
1996.
    (b) Repeals and Amendments.--The repeals and amendments made under 
sections 12, 13, 14, and 15 shall take effect as provided in subsection 
(a), except that such repeals and amendments--
            (1) shall not affect any proceeding or suit commenced 
        before the effective date under subsection (a), and in all such 
        proceedings or suits, proceedings shall be had, appeals taken, 
        and judgments rendered in the same manner and with the same 
        effect as if this Act had not been enacted; and
            (2) shall not affect the requirements of Federal agencies 
        to compile, publish, and retain information filed or received 
        before the effective date of such repeals and amendments.
    (b) Regulations.--Proposed regulations required to implement this 
Act shall be published for public comment no later than 270 days after 
the date of the enactment of this Act. No later than 1 year after the 
date of the enactment of this Act, final regulations required to 
implement this Act shall be published.
    (c) Phase-In Period.--No penalty shall be assessed by the Attorney 
General under section 8(f) for a violation of this Act which occurs 
during the first semiannual reporting period under section 5 after the 
effective date prescribed by subsection (a).
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