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103D CONGRESS

2D SESSION H. R. 4108

To prohibit contingency fees in lobbying.

IN THE HOUSE OF REPRESENTATIVES

MARCH 22, 1994

Mr. SCHUMER introduced the following bill; which was referred to the

Committee on the Judiciary

A BILL

To prohibit contingency fees in lobbying.

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 Anti Contin5 gency Fee Act of 1994’’.

6 SEC. 2. CONTINGENCY FEES IN LOBBYING.

7 (a) FINDING AND DECLARATION.—The Congress

8 finds that the conduct prohibited by the amendment made

9 by subsection (b) is inimical to the public interest in pro10 tecting against the undue influence of overly aggressive

11 lobbying on Government officials and that the amendment

12 may, under the Constitution, appropriately be applied with
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1 respect to fees collected or billed on or after March 1,

2 1994, by persons who had actual knowledge of its pend3 ency before Congress as of that date.

4 (b) OFFENSE.—Chapter 11 of title 18, United States

5 Code, is amended by inserting after section 219 the follow6 ing new section:

7 ‘‘§ 220. Contingency fees in lobbying

8 ‘‘(a) DEFINITION.—In this section, ‘Government en9 tity’ means an entity in the executive branch, legislative

10 branch, or judicial branch or a member, officer, or em11 ployee of any such entity.

12 ‘‘(b) OFFENSE.—

13 ‘‘(1) IN GENERAL.—A person shall not make,

14 directly or indirectly, on behalf of any person other

15 than the United States, an oral or written commu16 nication to a Government entity, with intent to influ17 ence the Government entity with respect to an event

18 described in paragraph (2), for a fee or other com19 pensation the payment of any part of which is con20 tingent on the occurrence of that event.

21 ‘‘(2) EVENTS ATTEMPTED TO BE INFLU22 ENCED.—An event is described in this paragraph if

23 it is—
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1 ‘‘(A) the taking of an action by Congress,

2 including an action by either House of Congress

3 or any committee or member of Congress; or

4 ‘‘(B) the making or entering into of or de5 nial of an award, grant, financial assistance, or

6 contract by a Government entity.

7 ‘‘(3) RULE OF CONSTRUCTION.—Paragraph (1)

8 shall not be considered to prohibit a communication

9 for a contingent fee relating to a claim for collection

10 of an amount that a client alleges is owed by the

11 Government under a contract or by reason of any

12 other form of obligation.

13 ‘‘(c) CRIMINAL PENALTY.—A person who violates

14 subsection (a) shall be fined under this title, imprisoned

15 not more than 2 years, or both.

16 ‘‘(d) CIVIL ACTION.—

17 ‘‘(1) IN GENERAL.—The Attorney General may

18 bring a civil action in any United States district

19 court, on behalf of the United States, against a per20 son who engages in conduct prohibited by subsection

21 (a), and, upon proof of such conduct by a prepon22 derance of the evidence, may recover twice the

23 amount of any contingent fee or other compensation

24 received by the person as a result of such conduct.
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1 ‘‘(2) LIMITATION.—A civil action under para2 graph (1) shall be barred unless the action is com3 menced not later than 6 years after the later of—

4 ‘‘(A) the date on which the prohibited con5 duct occurred; or

6 ‘‘(B) the date on which the United States

7 became or reasonably should have become that

8 the prohibited conduct occurred.

9 ‘‘(e) APPLICATION OF SECTION.—The prohibition of

10 subsection (a) applies to conduct engaged in on or after

11 March 1, 1994.’’.

12 (c) CLERICAL AMENDMENT.—The table of chapters

13 at the beginning of chapter 11 of title 18, United States

14 Code, is amended by inserting after the item relating to

15 section 219 the following new item:

‘‘220. Contingency fees in lobbying.’’.

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