Legal Document

465 U.S. 482 104 S.Ct. 1172 79 L.Ed.2d 458 Arthur DIXSON, Petitioner,v.UNITED STATES. James Lee HINTON, Petitioner, v. UNITED Nos. 82-5279, 82-5331. Argued Oct. 12, 1983. Decided Feb. 22, 1984. Syllabus The city of Peoria received federal block grants from the Department Housing and Urban Development under Community Act 1974 (HCDA), which provides for such urban renewal programs. As authorized by HCDA, designated a community-based, social service corporation to be city's subgrantee in charge administration grants. Petitioners, officers responsible expenditure funds corporation's programs, were indicted violating bribery statute, 18 U.S.C. § 201, using their positions extract kickbacks contractors seeking work on housing rehabilitation projects. Before trial, Federal District Court denied petitioners' motions dismiss indictment asserted ground that they not "public officials" 201(a), defines term official" as including "an officer or employee person acting behalf United States, any department, agency branch Government thereof, . official function, authority agency, Government." Petitioners convicted, Appeals affirmed. Held: are within meaning 201(a) thus subject prosecution statute. Pp. 489-501. (a) There is no merit contention cannot considered persons "acting States" statutory definition because neither nor employer ever entered into direct agreement with Government. Although language does decide dispute, its legislative history—including Congress' longstanding commitment broadly drafted desire continue tradition when it adopted 1962 revisions conflicts interest statutes, awareness judiciary's interpretation identical phrase earlier statutes have broad jurisdictional reach (particularly Second Circuit's decision States Levine, 129 F.2d 745 (CA 2 1942))—establishes Congress never intended 201(a)'s open-ended restricted formal employment relationship proper inquiry whether occupies position public trust responsibilities. 489-496. (b) Given structure HCDA program administrators subgrant, served officials purposes 201(a). In allocating resources made available through grant program, petitioners charged abiding guidelines, dictated both where how could distributed. By accepting responsibility distributing resources, assumed quintessentially role administering established Congress. 496-498. (c) majority recent decisions lower courts supports conclusion some other similarly contractual bond prerequisite 498-499. (d) holding here mean mere presence assistance brings local organization employees jurisdiction all organizations programs To an individual must possess degree carrying out policy. 499-501. 683 195 (CA7 1982), Donald V. Morano, Chicago, Ill., petitioners. Richard G. Wilkins, Washington, D.C., respondent. Justice MARSHALL delivered opinion Court. 1 These consolidated cases present question private, nonprofit expending community development * 1979, City two (HUD). first was $400,000 Block Grant; second $636,000 Metro Reallocation Grant. Both funded 1974, 88 Stat. 633, amended, 42 §§ 5301-5320 (1976 ed. Supp. V). Under Act, Secretary HUD dispense state governments residential structures, code enforcement deteriorating areas, construction works 3 subsequently Neighborhoods, Inc. (UNI), social-service organization, City's funds.1 UNI turn hired petitioner Dixson serve Executive Director Hinton Rehabilitation Coordinator. Petitioner general supervision UNI's fiscal control execution contracts. Hinton's duties included contracting applying assistance, demolition firms. 4 A grand jury named 11-count filed March 1981. petitioners, had sought series bribes return "being influenced performance act respect awarding contracts" violation 201(c)(1), (2). 5 According Government's evidence at used $42,604 kick-backs One contractor testified he approached persuaded pay 10 percent each contract awarded him. explained ten occasions, draw checks 20 price, deposited check his bank, paid half amount cash substantially same arrangement. 6 moved grounds Their denied, following trial Central Illinois, convicted charged. sentenced 71/2 years imprisonment, followed years' probation. appealed Seventh Circuit, Hinton, 1982). petitions writs certiorari, we granted writs. --- ----, 103 567, 74 930 (1982). We now affirm. II 7 Petitioners' sole claim therefore statute.2 Since our disposition this turns between government, begin discussion analysis (HCDA) program. 8 passed meet social, economic, environmental problems facing cities. 5301(a). primary objective "the viable communities." 5301(c). While addressed national problem, enacted legislation day-to-day actual funds, delegated State authorities. 9 creates "consistent system aid," 5301(d), committed outside while retaining assure compliance objectives implementing regulations. itself specified 17 categories projects upon can spent. 5305. Within constraints, recipients design addressing needs. obtain communities submit plan accordance growth policies, supplement annual reports. 5304(a), (d). government retains right audit records 5304(e), recover improperly expended funds. 5311(b)(2). grantees give assurances they, subgrantees, will abide specific financial accountability, equal opportunity, fair labor, environmental, requirements. 5304, 5309, 5310; 24 CFR 570.307 (1983). private themselves numerous restrictions beyond those imposed directly HUD. Like subgrantees uniform procedure, integral element" "full accountability entrusted programs."3 11 voluntarily status CDA signed five separate agreements October pursuant four these agreements, promised provide $492,500, spend related administrative costs, salaries fringe benefits employees. specifically allocated salaries: $16,000 $15,500 12 fifth agreement, another $669,200 "solely operated loans units Metropolitan Grant Area." anomaly Peoria-UNI contracts that, reference "Metropolitan Area" "312 loans,"4 none explicitly refers new subgrantee.5 application participate federally-funded however, unequivocally shows government's to, in, agreements. proposal stated: "[W]e wish undertake joint effort achieve common goals set forth insure safe, sanitary decent people." (Emphasis added.) 13 Moreover, there suggestion record executives failed understand involved described above, task governed respects Knowledge existence applicability requirements guidelines presumed matter law.6 fact, protecting integrity undoubtedly driven home when, early 1980, midst period covered indictment, Andersen & Co. conducted HUD's "Audit Guide Standards Recipients." 14 responsibilities receiving applications soliciting bids qualified proposals. organizational structure, supposed proposals Committee final approval, but, Committee's review "mere formality."7 practical matter, alone decided property owners would beneficiaries III 15 contend now, throughout litigation, unaffiliated defined term. 16 section includes being basis claiming acted "for of" "in function" argue subdivision government. advancing position, rely primarily Circuit New York Model Cities Program 201. Loschiavo, 531 659 (CA2 1976); Del Toro, 513 656, (CA2), cert. 423 826, 96 41, 46 (1975). rest premise without relationship, contract, obligation. Government, response, argues has broader sweep, covering only parties privity but also individuals federally-supervised defends instant case, held "substantial over cities sub-grantees distribution funds" supra, 197-198. court reasoned "were agents sense having discretion funds." Id., 199. 19 often case matters interpretation, dispute. words interpreted support either reading. turn, therefore, history statute determine materials clarify proposed readings consistent Congress's intent. If fails language, rule lenity compel us construe favor criminal defendants case. See Rewis 401 808, 812, 91 1056, 1059, 28 493 (1971). A. current provision, 1962, part reformulate rationalize dealing At time revisions, been more than century. From start, language,8 periodically amended provisions ensure scope liability kept pace diversification government.9 Prior recognition apparent statues wide application, judiciary and, indeed, "person reach.10 21 When drafting aware previous well judicial given statutes. issue here—"person States"—was taken predecessor statutes.11 reenactment happenstance. Earlier versions omitted phrase, testimony "its removal undesirable" convinced retain language.12 22 Standing alone, purposeful retention Government" advance words. When, compare draft bills enacted, conclude meant restrict definition, argue, Such clearly successive, rejected reform bill, pertinent officer, agent, executive, legislative, agency."13 reading reason accede Justice's urging language. 23 find inconsistent view added simply bring laws tied obligations. reports Houses emphasized "no significant changes substance" "would construed courts." S.Rep. No. 2213, 87th Cong., 2d Sess. (1962); H.R.Rep. 748, 1st (1961), U.S.Code Cong. Admin.News pp. 3852, 3853. interpreting prior generally avoided distinctions, requirement bond, artificially narrow jurisdiction. note 10. Of particular relevance House Judiciary citation 1942), example past properly laws. 17. Levine 1909 low-level decentralized program.14 defendant worked locally-administered price stabilization Market Administrator Milk Marketing Area,15 milk handlers' market surplus claims, checking them accuracy. solicited bribe one handlers promise prevent investigations claims. 25 who, appointed Agriculture, himself employed Nevertheless, Levine's critical federally assisted Area. Because claims payment rechecked anyone else, resulted expenditures treasury. After reviewing facts, concluded notwithstanding absence him F.2d, 747. endorsing strongly intimated covers something bond. 26 long-standing broadly-drafted expressed affirmative adoption Report's endorsement reasoning combine persuade cramped agree accurately characterized "comprehensive applicable performing activities States," whatever form delegation authority.16 falls category, agreed rather Persons who hold 201 liable B 27 little difficulty concluding UNI, operational Peoria. Lest doubt cover like need whose conviction endorsed. pages 494-496. effectively determined beneficiary dollars, influence decisions. responsibilities: collect investigate accuracy data submitted producers subsidies. complex regulatory Indeed, certain respects, performed "official" obviously undertaken Levine. Where levy businesses participating marketing order, completely grant. compiled Agriculture eventual disbursement, personally bestowed residents IV 29 supported Courts Appeals. Hollingshead, 672 751 (CA9 Ninth Reserve Bank San Francisco, banking institution, tasks substantial supervision. independent making capital purchase requisitions. short, responsibility, Similarly, Kirby, 587 876, 879-880 1978), ruled privately grain inspectors, licensed warehouse licensing Congress.17 For analogous reasons, Mexico found Farmers Home Administration rural improvement Gallegos, 510 F.Supp. 1112, 1113-1114 (DNM 1981). Again, defendant's processing Mosley, 812 1981); Harlow 301 361 (CA5), 371 814, 83 25, 56 Griffin, 1222 (S.D.Ind.1975), aff'd sub nom. Management Corp., 541 284 1976). But see supra; Hoskins, 520 410 (N.D.Ill.1981). 30 finding do suggest even Our today is, fully Krichman 256 363, 41 514, 65 L.Ed. 992 (1921), baggage porter, although controlled railroad, said "acted porter lacked character. business people goods services unless assume nature. 31 recognize manner combines funding initially confusion authorities should statute.18 However, examines sees vests power allocate purpose achieving congressionally-established goals, evaporates becomes clear precisely sort statute.19 strong legitimate prosecuting misuse another, closely context, "are much protection [fraud] money, make extent [grant monies'] safeguard dependent bookkeeping devices distribution." ex rel. Marcus Hess, 317 537, 544, 63 379, 384, 87 443 (1943) (footnote omitted) (holding governmental unit "cheat intermediary). 32 judgment 33 It so ordered. 34 O'CONNOR, whom BRENNAN, REHNQUIST, STEVENS join, dissenting. 35 demands "ambiguity concerning ambit resolved lenity." concludes congressional intent include coverage enough inapplicable. admits Court's reading, strong, though perhaps persuasive, if civil I differ too weak higher standard resolving facial ambiguity against my view, offered carry weight places it, good reject 36 predecessors, points out, intentionally broad. fact merely interpretive problem—it resolve it. forward pre-1962 understood law ante, 491-493, 494-495. proscribe trust. Ante, 496. say aimed bearing trust, what constitutes States"—is formulation idea, concedes accommodate respondent's views. 491. breadth accordingly offers help defining ambiguous 37 likewise hundred years. 493, n. 11. Yet, indicates, apparently statute's recipients. silent answered 38 mentions 1948 extension suggests significant. 492, 9. makes clear, owned corporations. Id.; 304, 80th Sess., A14 (1947). believe, exceedingly odd suggest, thought generally, particular, somehow Accordingly, 39 Congress, version contains items bear ." relies heavily items. One, of, best, uncertain significance. 40 First, notes, 494-495, cited (1961). establishes bonds States. That surely correct. saying class define actually imply subgrantees. inclusion individuals. task. agent An grantee quite different position. means obvious since necessarily concedes, 499, States: example, science research use approved proposal. inference after several containing proposed. 493-494. Those proscribed acceptance agency." 494, 13. recommended "officer, employee" "could construed" narrower 12. 43 This strong. Neither anything else explains discarded shows, appearing before mind. much. Anyone "occupies responsibilities," 496, seem "agent" responsibilities, gives test requiring direction bribed, 496-498, 500. Restatement (Second) Agency (1957) (agency created agrees "that shall control"). most criticism alternative conceivably difference unenacted retained caution, did intend 44 finds Court, 498-499, history. relevant all, respondent, relied involve grant-in-aid conflict. Compare 656 1975); (ND Ill.1981) 1982) (decision below case). Thus, applies bolster 45 circumstances distinguishable "fiscal arm" "carrying 754. 876 licenses inspectors 1112 (D NM 1981), "had assigned office assist FHA program." 1113. (1962), instrumentality operating military bases. (SD Ind.1975), affirmance 1976), solicit receive prepare inspect eligible rehabilitation. bribed less None dealt accompanying uncertainty about person's carried solely grantee's behalf, sum, history, persuasive apply requires believe recipient No reason, certainly escape pull lenity, advanced. 47 Not conclusion, reasons nineteenth R. Cappalli, Grants Cooperative Agreements 1.19-1.22 (1982); Elazar, Collaboration Nineteenth Century Pol.Sci.Q. 248 (1964). middle century, major component budget. spending $7 billion year, approximately budget, governments. Bureau Census, Historical Statistics Colonial Times 1970, Bicentennial Edition, Part 2, 1123, 1125 increased $40 1975 stands $90 billion, 10% Office President, Budget, Special Analyses, Budget Fiscal Year 1984, H-16 48 Against background, long silence takes Despite magnitude indication studied revised 1962. appears reported involving predecessors until 1970s. totalled presented problem. unlikely phenomenon, cf. (bid-rigging funds); Laudani, 320 543, 64 315, 300 (1944) (kickbacks subcontractor Port Authority project money), plausible prosecutors believed extended least 49 categorically different, treated types activity. forming distinctive category activity Agreement 1977, 92 3, 501-509, regulation, 5.01-5.56. main characteristic principle autonomy: impose conditions left considerable execute intrusion. 504 (definition "grant" involvement anticipated executive during contemplated activity"); 1.07. typically attributable Orleans, 425 807, 1971, 390 (1976) (not tort liability), comment (principal conduct "agent duty contrary principal's directions, principal directions"). contexts recognized "[g]rants convert acts absent extensive, detailed, virtually supervision." Forsham Harris, 445 169, 180, 100 977, 293 (1980); id., 11, S.Ct., 984 ("Before characterizing entity 'federal' purpose, required threshold showing activities, just exercise necessary grant"); U.S., 815, 1976. 50 autonomy basic significance greatest especially strongest "block grant" here. distributed minimized, plausibly itself. increasingly uses grants-in-aid 1.33-1.51 (describing characteristics noting shift toward Advisory Commission Intergovernmental Relations, Grants: Comparative Analysis (1977). 51 Second, special force Principles federalism inherent constitutional played creation Shapek, Managing Federalism: Evolution Grant-in-Aid System (1981). principles shape They demand presumption own policies sovereignty deputize political subdivisions deputy expressly accepted or, lawful, imposed. Governments conclude, express actions, effect 52 entertained similar Grain 1976 inspections grain. Pub.L. 94-582, 10, 90 2877, 84(d). employees, perfectly apparent—on example—that 1978). previously applied amendment. 94-966, p. (1976); 94-747, 9, S.Conf.Rep. 94-1389, (1976), 1976, 6522. seems inescapable extraordinary, worth explicit direction, detail 53 grants, create type extend thinks others relation raises context Consequently, (as case), think overcome. 54 Finally, inappropriate unfavorably leaves unclear bare rests notion entitled know contemplate taking violates condemnable statutes.* trust" guidance States." hundreds 1983 Catalog Domestic Assistance. Yet impossible tell sorts regulation judicially construed, discernible meaning. one. 55 respectfully dissent. Local option subcontracting organizations. 5302(a)(1), (c); 570.204 Section title reads part: "(a) section: 'public official' Member Delegate Columbia, Resident Commissioner, qualified, juror; "(c) Whoever, selected official, indirectly, corruptly asks, demands, exacts, solicits, seeks, accepts, receives, value entity, for: "(1) act; "(2) commit aid committing, collude allow, fraud, opportunity commission fraud States; "Shall fined $20,000 three times monetary equivalent thing value, whichever greater, imprisoned fifteen years, both, may disqualified honor, profit "Guidelines Financial Compliance Audits Federally Assisted Programs," reprinted Fed.Reg. 21837, 21838. "Guidelines" explain Attachment P OMB Circular A-102, "Uniform Requirements Assistance Governments." O, Code Conduct officers, accept contractors, potential subagreements." Peoria's 5306(c). tenants areas called loans." PL 88-560, Title III, 312 (Sept. 1964), codified (& V) 1452. "to delegate [the loan program]." (a), (f). renewed few days warrant terms comply regulations, pt. 570. Gov't Exh. 25. 1507 (1976). appearance rules regulations Register legal notice contents. remaining nine. 1853. 26, 1853, ch. 81, 6, 171. name—"An Prevent Frauds Treasury"—implies, Cong.Globe, 32d 392 (1853). concerned bringing fraudulent 242, 295-296, limit chose provision encompassing Members "any place profit, discharging function under, connection with, department supplied). telling amendment came 1948, largely result Strang, 254 491, 165, 368 (1921). working conflict-of-interest Mar. 4, 1909, 321, 1097. "a entity" 165. Strang indicated existing inadequate ramifications [which] foreseen" enacted. supplemented read June 645, 1, 62 691 (italics indicate language). broadened law, Report drafters amendments guarantee "what appeared unquestionably namely, function." A15. instance, agencies repeatedly See, e.g., Birdsall, 233 223, 230-231, 512, 514-515, 58 (1914); 1942). supra. coined recodifications 1870's, Rev.Stat. 5451, 5501 (1878 ed.), replaced Government]," 7. today, "persons originally stylistic substitution trust," Cong.Rec. (1873) (remarks Mr. Butler) (statutory revision committee's limited); Dwan Feidler, Statutes—Their History Use, Minn.L.Rev. 1008, 1012-1017 (1937-1938) corrected congressionally-identified errors 1873 Rev.Stat.). Conflict Interest Legislation: Hearings H.R. 302, 3050, 3411, 3412, 7139 Antitrust Subcomm. Comm. Judiciary, 3411 "The 'acting [sic ] States.' latter undesirable. circumstances, 'officer, States' bill. capacity protected (or punished acceptance)." Ibid. 12547, 85th (1958); 2156, 86th (1959); complete was: "Member juror." opinion, capacity. 117 Criminal 207. Agricultural 1937. F.R. 1258 (Apr. 1940). stabilize farm prices issuing orders regulate production regions country assistance. 601, 608c (1940). such, form, still classified such. Programs 10.155 Administrator, supervise hire staff administer locally. salary expenses 1263. Conflicts Interest: 8140 Senate (1962) (Statement Deputy Attorney General Katzenbach). Kirby disagree analysis. Warehouse 252, unlike argument incorporated Precisely raised disposed correctly construing wrote, agree: Acts creating provided not, course, employees." 748. noted juxtaposition daily operations oversight context. recipients, entrepreneurs states, acts, Tort Claims entities, operations. noted, entities specifications 815-816, 1976-1977. Regulation stressed harm occurred here—diversion money unauthorized purposes. 818, 1977. encompass resort deciding " 'The canon strict [of statutes] does[not] "narrowest meaning"; satisfied accord manifest lawmakers.' Moore, 122, 145, 335, 346, 333 (1975), quoting Brown, 18, 25-26, 68 376, 379-380, 442 (1948). Most criminally bribes, vary definitions Am.Jur.2d, Bribery 1-3, 12-14 (1964 Supp.1983). Illinois commits "receives, personal advantage knowing tendered cause juror [h]e solicits understanding Ill.Rev.Stat., 38, 33-1 persons, contracted

Classification Label: 7