US Laws, Codes, Statutes & Cases

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[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
  January 7, 2003 and December 19, 2003]
[CITE: 31USC1352]

 
                       TITLE 31--MONEY AND FINANCE
 
                     SUBTITLE II--THE BUDGET PROCESS
 
                       CHAPTER 13--APPROPRIATIONS
 
         SUBCHAPTER III--LIMITATIONS, EXCEPTIONS, AND PENALTIES
 
Sec. 1352. Limitation on use of appropriated funds to influence 
        certain Federal contracting and financial transactions
        
    (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).

(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.)

                       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.

                          Codification

    Another section 1352 was renumbered section 1353 of this title.


                               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.''

                  Section Referred to in Other Sections

    This section is referred to in title 12 section 4707; title 18 
section 1913.