CITE-

    31 USC Sec. 1352                                            01/02/2006

-EXPCITE-

    TITLE 31 - MONEY AND FINANCE

    SUBTITLE II - THE BUDGET PROCESS

    CHAPTER 13 - APPROPRIATIONS

    SUBCHAPTER III - LIMITATIONS, EXCEPTIONS, AND PENALTIES

-HEAD-

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

      certain Federal contracting and financial transactions

-STATUTE-

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

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

    agreement to pay any person for influencing or attempting to

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

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

    Member of Congress in connection with any Federal action described

    in paragraph (2) of this subsection.

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

    with respect to the following Federal actions:

        (A) The awarding of any Federal contract.

        (B) The making of any Federal grant.

        (C) The making of any Federal loan.

        (D) The entering into of any cooperative agreement.

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

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

      agreement.

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

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

    receives from an agency a commitment providing for the United

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

    in accordance with paragraph (4) of this subsection - 

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

      this subsection, as the case may be; and

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

      paragraph (5).

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

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

    loan, or cooperative agreement shall contain - 

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

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

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

      cooperative agreement; and

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

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

      (a).

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

    of this subsection in connection with a commitment providing for

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

    name of any registrant under the Lobbying Disclosure Act of 1995

    who has made lobbying contacts on behalf of the person in

    connection with that loan insurance or guarantee.

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

    shall file a declaration referred to in that paragraph - 

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

      consideration of such person for award of a Federal contract,

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

      commitment providing for the United States to insure or guarantee

      a loan;

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

      loan, or cooperative agreement or of a commitment providing for

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

      person previously filed a declaration with respect to such

      contract, grant, loan, cooperative agreement or commitment

      pursuant to clause (A); and

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

      any event that materially affects the accuracy of the information

      contained in any declaration previously filed by such person in

      connection with such Federal contract, grant, loan, cooperative

      agreement, loan insurance commitment, or loan guaranty

      commitment.

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

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

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

    or subcontract to carry out any purpose for which a particular

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

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

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

    such paragraph.

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

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

    House of Representatives, shall issue guidance for agency

    implementation of, and compliance with, the requirements of this

    section.

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

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

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

    expenditure.

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

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

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

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

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

    after the date on which an administrative action for the imposition

    of a civil penalty under this subsection is commenced does not

    prevent the imposition of such civil penalty for a failure

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

    an administrative action is commenced with respect to a failure

    when an investigating official determines in writing to commence an

    investigation of an allegation of such failure.

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

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

    with the requirements of this section, to the imposition and

    collection of civil penalties under this subsection.

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

    not prevent the United States from seeking any other remedy that

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

    for the imposition of such civil penalty.

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

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

    employee of a person requesting or receiving a Federal contract,

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

    payment is for agency and legislative liaison activities not

    directly related to a Federal action referred to in subsection

    (a)(2) of this section.

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

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

    of reasonable compensation to an officer or employee of a person

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

    cooperative agreement or an extension, continuation, renewal,

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

    cooperative agreement if the payment is for professional or

    technical services rendered directly in the preparation,

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

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

    meeting requirements imposed by or pursuant to law as a condition

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

    agreement.

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

    the use of appropriated funds for making any payment prohibited in

    or pursuant to any other provision of law.

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

    shall not apply to any person with respect to - 

        (A) payments of reasonable compensation made to regularly

      employed officers or employees of a person requesting or

      receiving a Federal contract, grant, loan, or cooperative

      agreement or a commitment providing for the United States to

      insure or guarantee a loan;

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

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

      agreement, subcontract (other than a subcontract referred to in

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

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

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

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

      mortgage limit for affected programs, whichever is greater,

      including a contract or subcontract to carry out any purpose for

      which such a loan is made.

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

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

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

    exemption is in the national interest. The Secretary shall transmit

    a copy of each such written exemption to Congress immediately after

    making such determination.

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

    are necessary to ensure that the provisions of this section are

    vigorously implemented and enforced in such agency.

      (g) As used in this section:

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

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

      agreement - 

          (A) includes the contractors, subcontractors, or subgrantees

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

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

        any other Indian organization eligible to receive Federal

        contracts, grants, cooperative agreements, or loans from an

        agency but only with respect to expenditures that are by such

        tribe or organization for purposes specified in subsection (a)

        and are permitted by other Federal law.

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

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

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

        (3) The term "person" - 

          (A) includes an individual, corporation, company,

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

        local government, regardless of whether such entity is operated

        for profit or not for profit; but

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

        any other Indian organization eligible to receive Federal

        contracts, grants, cooperative agreements, or loans from an

        agency but only with respect to expenditures by such tribe or

        organization that are made for purposes specified in subsection

        (a) and are permitted by other Federal law.

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

      District of Columbia, the Commonwealth of Puerto Rico, a

      territory or possession of the United States, an agency or

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

      interstate entity having governmental duties and powers.

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

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

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

      entities:

          (A) A local public authority.

          (B) A special district.

          (C) An intrastate district.

          (D) A council of governments.

          (E) A sponsor group representative organization.

          (F) Any other instrumentality of a local government.

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

      cooperative agreement" mean, respectively - 

          (i) a contract awarded by an agency;

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

        by law to any person; and

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

        (B) Such terms do not include - 

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

          (ii) a loan;

          (iii) loan insurance; or

          (iv) a loan guaranty.

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

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

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

      professional and other technical services, a payment in an amount

      that is consistent with the amount normally paid for such

      services in the private sector.

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

      regularly employed officer or employee of any person,

      compensation that is consistent with the normal compensation for

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

      funded by, or not furnished in cooperation with the Federal

      Government.

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

      or employee of a person requesting or receiving a Federal

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

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

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

      at least 130 working days within one year immediately preceding

      the date of the submission that initiates agency consideration of

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

      cooperative agreement, loan insurance commitment, or loan

      guaranty commitment.

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

      the meaning provided in section 4 of the Indian Self-

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

-SOURCE-

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

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

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

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

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

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

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

    656.)

-REFTEXT-

                            REFERENCES IN TEXT                        

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

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

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

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

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

    Title 2 and Tables.

-COD-

                               CODIFICATION                           

      Another section 1352 was renumbered section 1353 of this title.

-MISC1-

                                AMENDMENTS                            

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    below.

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

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

    which read as follows:

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

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

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

      other than appropriated funds, which would be prohibited by

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

      appropriated funds; or

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

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

    agreement (if any) - 

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

      reasonably expected to be paid;

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

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

      reasonably expected to be made;

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

      be paid;

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

      expected to be paid; and

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

      or is reasonably expected to be paid; and

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

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

    (a)."

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

    contain the name of any registrant under the Lobbying Disclosure

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

    in connection with that  loan  insurance  or  guarantee."  for 

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

    as follows:

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

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

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

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

      Congress in connection with that loan insurance or guaranty; or

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

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

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

    of this subsection."

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

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

    of each agency to collect and compile detailed information on any

    unappropriated payments under Federal contracts, and report such

    information to the appropriate congressional officer or committee.

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

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

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

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

    of each agency to submit annual reports to Congress on the

    compliance of each agency with the requirements imposed by this

    section.

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

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

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

    substituted "appropriated" for "appropirated" and inserted period

    at end.

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

    periods after "agency" and "guaranty".

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

    family maximum mortgage limit for affected programs, whichever is

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

                     EFFECTIVE DATE OF 1996 AMENDMENT                 

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

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

    section 251 of Title 41, Public Contracts.

                     EFFECTIVE DATE OF 1995 AMENDMENT                 

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

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

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

                              EFFECTIVE DATE                          

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

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

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

    cooperative agreements, loan insurance commitments, and loan

    guaranty commitments that are entered into or made more than 60

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

                   FIRST REPORT ON MAY 31, 1990; CONTENT               

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

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

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

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

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

    NOTIFICATION OF COMPLIANCE DATE; GUIDANCE FOR AGENCY IMPLEMENTATION

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

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

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

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

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

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

    Director of the Office of Management and Budget shall issue the

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

    section."

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