Limitation on Use of Appropriated Funds to Influence Certain Federal Contracting and Financial Transactions

• Section: Federal Deposit Insurance Corporation

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...