[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 349 Reported in Senate (RS)]

                                                        Calendar No. 54

103d CONGRESS

  1st Session

                                 S. 349

                          [Report No. 103-37]

_______________________________________________________________________

                                 A BILL

 To provide for the disclosure of lobbying activities to influence the 
              Federal Government, and for other purposes.

_______________________________________________________________________

                April 1 (legislative day, March 3), 1993

                        Reported with amendments





                                                        Calendar No. 54
103d CONGRESS
  1st Session
                                 S. 349

                          [Report No. 103-37]

 To provide for the disclosure of lobbying activities to influence the 
              Federal Government, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             February 4 (legislative day, January 5), 1993

Mr. Levin (for himself, Mr. Cohen, Mr. Glenn, Mr. Roth, Mr. Boren, Mr. 
   Campbell, Mr. McCain, Mr. Stevens, Mr. DeConcini, and Mr. Bryan) 
introduced the following bill; which was read twice and referred to the 
                   Committee on Governmental Affairs

                April 1 (legislative day, March 3), 1993

                 Reported by Mr. Glenn, with amendments
  [Omit the part struck through and insert the part printed in italic]

_______________________________________________________________________

                                 A BILL


 
 To provide for the disclosure of lobbying activities to influence the 
              Federal Government, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Lobbying Disclosure Act of 1993''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds that--
            (1) responsible representative Government requires public 
        awareness of the efforts of paid lobbyists to influence the 
        public decisionmaking process in both the legislative and 
        executive branches of the Federal Government;
            (2) existing lobbying disclosure statutes have been 
        ineffective because of unclear statutory language, weak 
        investigative and enforcement provisions, and an absence of 
        clear guidance as to who is required to register and what they 
        are required to disclose; and
            (3) the effective public disclosure of the identity and 
        extent of the efforts of paid lobbyists to influence Federal 
        officials in the conduct of Government actions will increase 
        public confidence in the integrity of Government.
    (b) Purpose.--The purposes of this Act are to--
            (1) provide for the disclosure of the efforts of paid 
        lobbyists to influence Federal legislative or executive branch 
        officials in the conduct of Government actions; and
            (2) afford the fullest opportunity to the people of the 
        United States to exercise their constitutional right to 
        petition their Government for a redress of grievances, to 
        express their opinions freely to their Government, and to 
        provide information to their Government.

SEC. 3. DEFINITIONS.

    As used in this Act:
            (1) The term ``agency'' has the same meaning as such term 
        is defined under section 551(1) of title 5, United States Code.
            (2) The term ``client'' means any person who employs or 
        retains another person for financial or other compensation to 
        conduct lobbying activities on its own behalf. An organization 
        whose employees conduct lobbying activities on its behalf is 
        both a client and an employer of the lobbyists. In the case of 
        a coalition or association that employs or retains others to 
        conduct lobbying activities on behalf of its membership, the 
        client is the coalition or association and not its individual 
        members.
            (3) The term ``covered executive branch official'' means--
                    (A) the President;
                    (B) the Vice President;
                    (C) any officer or employee of the Executive Office 
                of the President other than a clerical or secretarial 
                employee;
                    (D) any officer or employee serving in an Executive 
                level I, II, III, IV, or V position, as designated in 
                statute or executive order;
                    (E) any officer or employee serving in a Senior 
                Executive Service position, as defined under section 
                3232(a)(2) of title 5, United States Code;
                    (F) any member of the uniformed services whose pay 
                grade is at or in excess of O-7 under section 201 of 
                title 37, United States Code; and
                    (G) any officer or employee serving in a position 
                of a confidential or policy-determining character under 
                Schedule C of the excepted service pursuant to 
                regulations implementing section 2103 of title 5, 
                United States Code.
            (4) The term ``covered legislative branch official'' 
        means--
                    (A) a Member of Congress;
                    (B) an elected officer of Congress;
                    (C) any employee of a Member of the House of 
                Representatives, of a committee of the House of 
                Representatives, or on the leadership staff of the 
                House of Representatives, other than a clerical or 
                secretarial employee;
                    (D) any employee of a Senator, of a Senate 
                Committee, or on the leadership staff of the Senate, 
                other than a clerical or secretarial employee; and
                    (E) any employee of a joint committee of the 
                Congress, other than a clerical or secretarial 
                employee.
            (5) The term ``Director'' means the Director of the Office 
        of Lobbying Registration and Public Disclosure.
            (6) The term ``employee'' means any individual who is an 
        officer, employee, partner, director, or proprietor of an 
        organization, but does not include--
                    (A) independent contractors or other agents who are 
                not regular employees; or
                    (B) volunteers who receive no financial or other 
                compensation from the organization for their services.
            (7) The term ``foreign entity'' means--
                    (A) a government of a foreign country or a foreign 
                political party (as such terms are defined in section 1 
                (e) and (f) of the Foreign Agents Registration Act of 
                1938, as amended (22 U.S.C. 611 (e) and (f)));
                    (B) a person outside the United States, other than 
                a United States citizen or an organization that is 
                organized under the laws of the United States or any 
                State and has its principal place of business in the 
                United States; or
                    (C) a partnership, association, corporation, 
                organization, or other combination of persons that is 
                organized under the laws of or has its principal place 
                of business in a foreign country.
            (8) The term ``lobbying activities'' means lobbying 
        contacts and efforts in support of such contacts, including 
        preparation and planning activities, research and other 
        background work that is intended for use in contacts, and 
        coordination with the lobbying activities of others. Lobbying 
        activities include grass roots lobbying communications (as 
        defined in regulations implementing section 4911(c)(3) of the 
        Internal Revenue Code of 1986) to the extent that such 
        activities are made in direct support of lobbying contacts.
            (9)(A) The term ``lobbying contact'' means any oral or 
        written communication with a covered legislative or executive 
        branch official made on behalf of a client with regard to--
                    (i) the formulation, modification, or adoption of 
                Federal legislation (including legislative proposals);
                    (ii) the formulation, modification, or adoption of 
                a Federal rule, regulation, Executive order, or any 
                other program, policy or position of the United States 
                Government; or
                    (iii) the administration or execution of a Federal 
                program or policy (including the negotiation, award, or 
                administration of a Federal contract, grant, loan, 
                permit, or license) except that it does not include 
                communications that are made to officials serving in 
                the Senior Executive Service or the uniformed services 
                in the agency responsible for taking such action.
            (B) The term shall not include communications that are--
                    (i) made by public officials acting in their 
                official capacity;
                    (ii) made by representatives of a media 
                organization who are primarily engaged in gathering and 
                disseminating news and information to the public;
                    (iii) made in a speech, article or other 
                publication, or through the media;
                    (iv) made on behalf of a foreign principal and 
                disclosed under the Foreign Agents Registration Act of 
                1938, as amended (22 U.S.C. 611 et seq.);
                    (v) requests for appointments, requests for the 
                status of a Federal action, or other similar 
                ministerial contacts, if there is no attempt to 
                influence covered legislative or executive branch 
                officials;
                    (vi) made in the course of participation in an 
                advisory committee subject to the Federal Advisory 
                Committee Act;
                    (vii) testimony given before a committee, 
                subcommittee, or office of Congress, or submitted for 
                inclusion in the public record of a hearing conducted 
                by such committee, subcommittee, or office;
                    (viii) information provided in writing in response 
                to a specific written request from a Federal agency or 
                a congressional committee, subcommittee, or office;
                    (ix) required by subpoena, civil investigative 
                demand, or otherwise compelled by statute, regulation, 
                or other action of Congress or a Federal agency;
                    (x) made in response to a notice in the Federal 
                Register, Commerce Business Daily, or other similar 
                publication soliciting communications from the public 
                and directed to the agency official specifically 
                designated in the notice to receive such 
                communications;
                    (xi) not possible to report without disclosing 
                information, the unauthorized disclosure of which is 
                prohibited by law;
                    (xii) made to agency officials with regard to 
                judicial proceedings, criminal or civil law enforcement 
                inquiries, investigations or proceedings, or filings 
                required by statute or regulation;
                    (xiii) made in compliance with written agency 
                procedures regarding an adjudication conducted by the 
                agency under section 554 of title 5, United States 
                Code, or substantially similar provisions;
                    (xiv) written comments filed in a public docket and 
                other communications that are made on the record in a 
                public proceeding; and
                    (xv) made on behalf of an individual with regard to 
                such individual's benefits, employment, other personal 
                matters involving only that individual, or disclosures 
                by that individual pursuant to applicable whistleblower 
                statutes.
            (10) The term ``lobbyist'' means any individual who is 
        employed or retained by another for financial or other 
        compensation to perform services that include lobbying 
        contacts, other than an individual whose lobbying activities 
        are only incidental to, and are not a significant part of, the 
        services provided by such individual to the client.
            (11) The term ``organization'' means any corporation 
        (excluding a Government corporation), company, foundation, 
        association, labor organization, firm, partnership, society, 
        joint stock company, or group of organizations. Such term shall 
        not include any Federal, State, or local unit of government 
        (other than a State college or university as described under 
        section 511(a)(2)(B) of the Internal Revenue Code of 1986), 
        organization of State or local elected or appointed officials, 
        any Indian tribe, any national or State political party and any 
        organizational unit thereof, or any Federal, State, or local 
        unit of any foreign government.
            (12) The term ``public official'' means any elected or 
        appointed official who is a regular employee of a Federal, 
        State, or local unit of government (other than a State college 
        or university as described under section 511(a)(2)(B) of the 
        Internal Revenue Code of 1986), an organization of State or 
        local elected or appointed officials, an Indian tribe, a 
        national or State political party or any organizational unit 
        thereof, or a Federal, State, or local unit of any foreign 
        government.

SEC. 4. REGISTRATION OF LOBBYISTS.

    (a) Registration.--(1) No later than 30 days after a lobbyist first 
makes a lobbying contact or agrees to make lobbying contacts, such 
lobbyist (or, as provided under subsection (c)(2), the organization 
employing such lobbyist), shall register with the Office of Lobbying 
Registration and Public Disclosure.
    (2) Notwithstanding paragraph (1), any person whose total income or 
total expenses in connection with lobbying activities on behalf of a 
particular client do not exceed, or are not expected to exceed, $1,000 
in a semiannual period is not required to register for such client.
    (b) Contents of Registration.--Each registration under this section 
shall be in such form as the Director shall prescribe by regulation and 
shall contain--
            (1) the name, address, business telephone number and 
        principal place of business of the registrant, and a general 
        description of its business or activities;
            (2) the name, address, and principal place of business of 
        the registrant's client, and a general description of its 
        business or activities (if different from paragraph (1));
            (3) the name of any organization, other than the client, 
        that--
                    (A) contributes more than $5,000 toward the 
                lobbying activities in a semiannual period;
                    (B) significantly participates in the supervision 
                or control of the lobbying activities; and
                    (C) has a direct financial interest in the outcome 
                of the lobbying activities;
            (4) the name, principal place of business, and approximate 
        percentage of equitable ownership in the client (if any) -o-r 
        of any foreign entity that--
                    (A) holds at least 20 percent equitable ownership 
                in the client;
                    (B) directly or indirectly, in whole or in major 
                part, supervises, controls, directs, finances, or 
                subsidizes the activities of the client; or
                    (C) is an affiliate of the client that has a direct 
                interest in the outcome of the lobbying activity;
            (5) a statement of the general issue areas in which the 
        registrant expects to engage in lobbying activities on behalf 
        of the client and, to the extent practicable, a list of 
        specific issues that have already been addressed or are likely 
        to be addressed; and
            (6) the name of each employee of the registrant whom the 
        registrant expects to act as a lobbyist on behalf of the client 
        and, if any such employee has served as a covered legislative 
        or executive branch official in the 2 years prior to the date 
        of the registration (or a report amending the registration), 
        the position in which such employee served.
    (c) Guidelines for Registration.--(1) In the case of a registrant 
representing more than one client, a separate registration shall be 
filed for each client represented.
    (2) Any organization that has one or more employees who are 
lobbyists shall file a single registration for each client on behalf of 
its employees who engage in lobbying activities on behalf of such 
client.

SEC. 5. REPORTS BY REGISTERED LOBBYISTS.

    (a) Semiannual Report.--No later than 30 days after the end of the 
semiannual period beginning on the first day of each January and the 
first day of July of each year in which it is registered, each 
registrant shall file a report with the Office of Lobbying Registration 
and Public Disclosure on its lobbying activities during such semiannual 
period.
    (b) Contents of Report.--Each semiannual report filed under this 
section shall be in such form as the Director shall prescribe by 
regulation and shall contain--
            (1) the name of the registrant, the name of the client, and 
        any changes or updates to the information provided in the 
        initial registration;
            (2) for each general issue area in which the registrant 
        engaged in lobbying activities on behalf of the client during 
        the semiannual filing period--
                    (A) a list of the specific issues upon which the 
                registrant engaged in significant lobbying activities, 
                including a list of bill numbers and references to 
                specific regulatory actions, programs, projects, 
                contracts, grants and loans, to the maximum extent 
                practicable;
                    (B) a statement of the Houses and committees of 
                Congress and the Federal agencies contacted by 
                lobbyists employed by the registrant on behalf of the 
                client during the semiannual filing period;
                    (C) a list of the employees of the registrant who 
                acted as lobbyists on behalf of the client; and
                    (D) a description of the interest in the issue, if 
                any, of any foreign entity identified under section 
                4(b)(4);
            (3) in the case of a registrant lobbying on behalf of a 
        client other than the registrant, a good faith estimate of the 
        total amount of all income from the client (including any 
        payments to the registrant by any other person to lobby on 
        behalf of the client) during the semiannual period, other than 
        income for matters that are unrelated to lobbying activities; 
        and
            (4) in the case of a registrant lobbying on its own behalf, 
        a good faith estimate of the total expenses that the 
        organization and its employees incurred in connection with 
        lobbying activities during the semiannual filing period.
    (c) Estimates of Income or Expenses.--For the purpose of this 
section, estimates of income or expenses shall be made as follows:
            (1) Income or expenses of $200,000 or less shall be 
        estimated by the following categories:
                    (A) At least $1,000 but not more than $10,000.
                    (B) More than $10,000 but not more than $20,000.
                    (C) More than $20,000 but not more than $50,000.
                    (D) More than $50,000 but not more than $100,000.
                    (E) More than $100,000 but not more than $200,000.
            (2) Income or expenses in excess of $200,000 shall be 
        estimated and rounded to the nearest $100,000.
            (3) Any registrant whose total income or total expenses are 
        less than $1,000 in a semiannual period (as estimated under 
        subsection (b) (3) or (4), or under paragraph (4) of this 
        subsection, as applicable) is deemed to be inactive during such 
        period and may comply with the reporting requirements of this 
        section by so notifying the Director, in such form as the 
        Director may prescribe.
            (4) In the case of registrants that are required to report 
        or identify lobbying income or expenses under sections 6033 and 
        6104 of the Internal Revenue Code of 1986, regulations 
        developed under section 6 shall provide that the amounts 
        required to be disclosed under such sections, or a good faith 
        estimate of such amounts, may be reported (by category of 
        dollar value) to meet the requirements of subsection (b) (3) or 
        (4) of this section.
            (5) In estimating total income or expenses under this 
        section, a registrant is not required to include--
                    (A) the value of contributed services for which no 
                payment is made; or
                    (B) the expenses for services provided by an 
                independent contractor or agent of the registrant who 
                is separately registered under this Act.
    (d) Contacts With Congressional Committees.--For purposes of 
subsection (b)(2), any contact with a member of a congressional 
committee, an employee of a congressional committee, or an employee of 
a member of a congressional committee regarding a matter within the 
jurisdiction of such committee is a contact with the committee.
    (e) Extension for Filing.--The Director may grant an extension of 
time of not more than 30 days for the filing of any report under this 
section, on the request of the registrant, for good cause shown.

SEC. 6. ADMINISTRATIVE DUTIES OF THE OFFICE OF LOBBYING REGISTRATION 
              AND PUBLIC DISCLOSURE.

    (a) Establishment.--(1) There is established within the Department 
of Justice an Office of Lobbying Registration and Public Disclosure, 
which shall be headed by a Director. The Director shall be appointed by 
the President, by and with the advice and consent of the Senate. The 
Director shall be an individual who, by demonstrated ability, 
background, training, and experience, is especially qualified to carry 
out the functions of the position.
    (2) Section 5316 of title 5, United States Code, is amended by 
adding at the end thereof the following:
            ``Director of the Office of Lobbying Registration and 
        Public Disclosure, Department of Justice.''.
    (b) Duties.--The Director of the Office of Lobbying Registration 
and Public Disclosure shall--
            (1) after notice and an opportunity for public comment, and 
        consultation with the Secretary of the Senate, the Clerk of the 
        House of Representatives, and the Administrative Conference of 
        the United States, prescribe such rules, forms, penalty 
        schedules, and procedural regulations as are necessary for the 
        implementation of this Act;
            (2) provide guidance and assistance on the registration and 
        reporting requirements of this Act, including, to the extent 
        practicable, the issuance of published decisions and advisory 
        opinions;
            (3) review and make such supplemental verifications or 
        inquiries as are necessary to ensure the completeness, 
        accuracy, and timeliness of registrations and reports;
            (4) develop filing, coding, and cross-indexing systems to 
        carry out the purposes of this Act, including computerized 
        systems designed to minimize the burden of filing and maximize 
        public access to materials filed under this Act;
            (5) ensure that the computer systems developed pursuant to 
        paragraph (4)--
                    (A) allow the materials filed under this Act to be 
                accessed by the name of the client, the lobbyist, and 
                the registrant; and
                    (B) are compatible with computer systems developed 
                and maintained by the Federal Election Commission, and 
                that information filed in the two systems can be 
                readily cross-referenced;
            (6) make copies of each registration and report filed under 
        this Act available to the public in electronic and hard copy 
        formats as soon as practicable after the date on which such 
        registration or report is received;
            (7) preserve the originals or accurate reproduction of 
        registrations until such time as they are terminated, and of 
        reports for a period of no less than 2 years from the date on 
        which the report is received;
            (8) maintain a computer record of the information contained 
        in registrations and reports for no less than 5 years after the 
        date on which such registrations and reports are received;
            (9) compile and summarize, with respect to each semiannual 
        period, the information contained in registrations and reports 
        filed during such period in a manner which clearly presents the 
        extent and nature of expenditures on lobbying activities during 
        such period;
            (10) make information compiled and summarized under 
        paragraph (9) available to the public in electronic and hard 
        copy formats as soon as practicable after the close of each 
        semiannual filing period;
            (11) provide, by computer telecommunication and other 
        means, to the Secretary of the Senate and the Clerk of the 
        House of Representatives copies of all registrations and 
        reports received under this Act and all compilations, cross-
        indexes, and summaries of such registrations and reports, as 
        soon as practicable (but not later than 2 working days) after 
        such material is received or created; and
            (12) transmit to the President and the Congress an annual 
        report describing the activities of the Office and the 
        implementation of this Act, including--
                    (A) a financial statement for the preceding year;
                    (B) a summary of the registrations and reports 
                filed with the Office in the preceding year;
                    (C) a summary of the registrations and reports 
                filed on behalf of foreign entities in the preceding 
                year; and
                    (D) recommendations for such legislative or other 
                action as the Director considers appropriate.

SEC. 7. INFORMAL RESOLUTION OF ALLEGED NONCOMPLIANCE.

    (a) Allegation of Noncompliance.--Whenever the Office of Lobbying 
Registration and Public Disclosure has reason to believe that a person 
may be in noncompliance with the requirements of this Act, the Director 
shall notify the person in writing of the nature of the alleged 
noncompliance and provide an opportunity for the person to respond in 
writing to the allegation within 30 days or such longer period as the 
Director may determine appropriate in the circumstances.
    (b) Informal Resolution.--If the person responds within 30 days or 
other time limit set by the Director, the Director shall--
            (1) take no further action, if the person provides adequate 
        information or explanation to determine that it is unlikely 
        that a noncompliance exists;
            -(-2-) -t-r-e-a-t -t-h-e -n-o-n-c-o-m-p-l-i-a-n-c-e -a-s -a 
        -m-i-n-o-r -n-o-n-c-o-m-p-l-i-a-n-c-e -a-n-d-, -i-f 
        -a-p-p-r-o-p-r-i-a-t-e-, -a-s-s-e-s-s -a -p-e-n-a-l-t-y 
        -u-n-d-e-r -s-e-c-t-i-o-n -8-, -i-f -t-h-e -p-e-r-s-o-n 
        -a-g-r-e-e-s -t-h-a-t -t-h-e-r-e -w-a-s -a 
        -n-o-n-c-o-m-p-l-i-a-n-c-e -a-n-d -c-o-r-r-e-c-t-s -s-u-c-h 
        -n-o-n-c-o-m-p-l-i-a-n-c-e-; -o-r
            (2) if the person admits that there was a noncompliance and 
        corrects such noncompliance--
                    (A) in the case of a minor noncompliance, take no 
                further action; or
                    (B) in the case of a significant noncompliance, 
                treat the matter as a minor noncompliance for the 
                purpose of section 8; or
            (3) make a determination under section 8, if the 
        information or explanation provided indicates that a 
        noncompliance may exist.
    (c) Formal Request for Information.--If the person fails to respond 
in writing within 30 days or other time limit set by the Director, or 
the response is not adequate to determine whether a noncompliance 
exists, the Director may make a formal request for specific additional 
information (subject to applicable privileges) that is reasonably 
necessary for the Director to determine whether the alleged 
noncompliance in fact exists. Each such request shall be structured in 
a way to minimize the burden imposed, consistent with the need to 
determine whether the person is in compliance, and shall--
            (1) state the nature of the conduct constituting the 
        alleged noncompliance which is the basis for the inquiry and 
        the provision of law applicable thereto;
            (2) describe the class or classes of documentary material 
        to be produced thereunder with such definiteness and certainty 
        as to permit such material to be readily identified; and
            (3) prescribe a return date or dates which provide a 
        reasonable period of time within which the material so 
        requested may be assembled and made available for inspection 
        and copying or reproduction.
    (d) Nondisclosure of Information.--Information provided to the 
Director under this section shall not be made available to the public 
without the consent of the person providing the information, except 
that--
            (1) any new or amended report or registration filed in 
        connection with an inquiry under this section shall be made 
        available to the public in the same manner as any other 
        registration or report filed under section 4 or 5; and
            (2) written decisions issued by the Director under sections 
        8 and 9 may be published after appropriate redaction to ensure 
        that confidential information is not disclosed.

SEC. 8. DETERMINATIONS OF NONCOMPLIANCE.

    (a) Notification and Hearing.--If the information provided to the 
Director under section 7 indicates that a noncompliance may exist, the 
Director shall--
            (1) notify the person in writing of this finding and, if 
        appropriate, a proposed penalty assessment and provide such 
        person with an opportunity to respond in writing within 30 
        days;
            (2)(A) in the case of a minor noncompliance, afford the 
        person a 30-day period in which to request an oral hearing 
        before an independent presiding official; and
            (B) grant such a request made during such period for good 
        cause shown; and
            (3) in the case of a significant noncompliance, afford the 
        person an opportunity for a hearing on the record under the 
        provisions of section 556 of title 5, United States Code, if 
        requested by such person within 30 days.
    (b) Determination.--Upon the receipt of a written response, the 
completion of a hearing, or the expiration of 30 days, the Director 
shall review the information received under this section and section 7 
and make a final determination whether there was a noncompliance and a 
final determination of the penalty, if any. If no written response or 
request for a hearing was received under this section within the 30-day 
period provided, the determination and penalty assessment shall 
constitute a final and nonappealable order.
    (c) Written Decision.--If the Director makes a final determination 
that there was a noncompliance, the Director shall issue a public 
written decision--
            (1) requiring that the noncompliance be included in a 
        publicly available list of noncompliances, to be reported to 
        the Congress on a semiannual basis;
            (2) directing the person to correct the noncompliance; and
            (3) assessing a civil monetary penalty in an amount 
        determined as follows:
                    (A) In the case of a minor noncompliance, the 
                amount shall be no more than $10,000, depending on the 
                nature and extent of the noncompliance.
                    (B) In the case of a significant noncompliance, the 
                amount shall be more than $10,000, but no more than 
                $100,000, depending on the nature and extent of the 
                noncompliance.
    (d) Civil Injunctive Relief.--If a person fails to comply with a 
directive to correct a noncompliance under subsection (c), the Director 
shall refer the case to the Attorney General to seek civil injunctive 
relief.
    (e) Penalty Assessments.--(1) No penalty shall be assessed under 
this section unless the Director finds that the person subject to the 
penalty knew or should have known that such person was not in 
compliance with the requirements of this Act. In determining the amount 
of a penalty to be assessed, the Director shall take into account the 
totality of the circumstances, including the extent and gravity of the 
noncompliance and such other matters as justice may require. The 
Director shall not assess a penalty in an amount greater than that 
recommended by an administrative law judge after a hearing on the 
record under subsection (a)(3) unless the Director determines that the 
recommendation of the administrative law judge is arbitrary and 
capricious or an abuse of discretion.
    (2) Regulations prescribed by the Director under section 6 shall 
define minor and significant noncompliances. Significant noncompliances 
shall be defined to include a knowing failure to register and any other 
knowing noncompliance that is extensive or repeated.

SEC. 9. OTHER VIOLATIONS.

    (a) Late Registration or Filing; Failure To Provide Information.--
If a person registers or files more than 30 days after a registration 
or filing is required under this Act, or fails to provide information 
requested by the Director under section 7(c), the Director shall--
            (1) notify the person in writing of the noncompliance and a 
        proposed penalty assessment and provide such person with an 
        opportunity to respond in writing within 30 days; and
            (2)(A) afford the person a 30-day period in which to 
        request an oral hearing before an independent presiding 
        official; and
            (B) grant such a request made during such period for good 
        cause shown.
    (b) Determination.--Unless the Director determines that the late 
filing or failure to provide information was justified, the Director 
shall make a final determination of noncompliance and a final 
determination of the penalty, if any. If no written response or request 
for a hearing was received under this section within the 30-day period 
provided, the determination and penalty assessment shall constitute a 
final and unappealable order.
    (c) Written Decision.--If the Director makes a final determination 
that there was a noncompliance, the Director shall issue a public 
written decision--
            (1) in the case of a late filing, assessing a civil 
        monetary penalty of $200 for each week by which the filing was 
        late, with the total penalty not to exceed $10,000; or
            (2) in the case of a failure to provide information--
                    (A) including the noncompliance in a publicly 
                available list of noncompliances, to be reported to the 
                Congress on a semiannual basis; and
                    (B) assessing a civil monetary penalty in an amount 
                not to exceed $10,000.
    (d) Civil Injunctive Relief.--In addition to the penalties provided 
in this section, the Director may refer the noncompliance to the 
Attorney General to seek civil injunctive relief.

SEC. 10. JUDICIAL REVIEW.

    (a) Final Decision.--A written decision issued by the Director 
under section 8 or 9 shall become final 60 days after the date on which 
the Director provides notice of the decision, unless such decision is 
appealed under subsection (b) of this section.
    (b) Appeal.--Any person adversely affected by a written decision 
issued by the Director under section 8 or 9 may appeal such decision, 
except as provided under sections 8(b) or 9(b), to the appropriate 
United States court of appeals. Such review may be obtained by filing a 
written notice of appeal in such court no later than 60 days after the 
date on which the Director provides notice of the Director's decision 
and by simultaneously sending a copy of such notice to the Director. 
The Director shall file in such court the record upon which the 
decision was issued, as provided under section 2112 of title 28, United 
States Code. The findings of fact of the Director shall be conclusive, 
unless found to be unsupported by substantial evidence, as provided 
under section 706(2)(E) of title 5, United States Code. Any penalty 
assessed or other action taken in the decision shall be stayed during 
the pendency of the appeal.
    (c) Recovery of Penalty.--Any penalty assessed in a written 
decision which has become final under this Act may be recovered in a 
civil action brought by the Attorney General in an appropriate United 
States district court. In any such action, no matter that was raised or 
that could have been raised before the Director or pursuant to judicial 
review under subsection (b) may be raised as a defense, and the 
determination of liability and the determination of amounts of 
penalties and assessments shall not be subject to review.
    (d) Attorneys' Fees.--In any appeal brought under this section, in 
which the person who is the subject of such action substantially 
prevails on the merits, the court may assess against the United States 
attorneys' fees and other litigation costs reasonably incurred in the 
administrative proceeding and the appeal.

SEC. 11. RULES OF CONSTRUCTION.

    (a) Prohibition of Activities.--Nothing in this Act shall be 
construed to prohibit, or to authorize the Director or any court to 
prohibit, lobbying activities or lobbying contacts by any person, 
regardless of whether such person is in compliance with the 
requirements of this Act.
    (b) Audit and Investigations.--Nothing in this Act shall be 
construed to grant general audit or investigative authority to the 
Director, or to authorize the Director to review the files of a 
registrant, except in accordance with the requirements of section 7 
regarding the informal resolution of alleged noncompliances and formal 
requests for information.

SEC. 12. AMENDMENTS TO THE FOREIGN AGENTS REGISTRATION ACT.

    The Foreign Agents Registration Act of 1938, as amended (22 U.S.C. 
611 et seq.) is amended--
            (1) in section 1--
                    (A) by amending subsection (b) to read as follows:
    ``(b) The term `foreign principal' means a government of a foreign 
country or a foreign political party.'';
                    (B) by striking out subsection (j);
                    (C) in subsection (o), by striking out ``the 
                dissemination of political propaganda and any other 
                activity which the person engaging therein believes 
                will, or which he intends to, prevail upon, 
                indoctrinate, convert, induce, persuade, or in any 
                other way influence'' and inserting in lieu thereof 
                ``any activity which the person engaging in believes 
                will, or which he intends to, in any way influence'';
                    (D) in subsection (p) by striking out the semicolon 
                and inserting in lieu thereof a period; and
                    (E) by striking out subsection (q);
            (2) in section 3(g) (22 U.S.C. 613(g)), by striking out 
        ``established agency proceedings, whether formal or informal.'' 
        and inserting in lieu thereof ``judicial proceedings, criminal 
        or civil law enforcement inquiries, investigations or 
        proceedings, or agency proceedings required by statute or 
        regulation to be conducted on the record.'';
            (3) in section 4(a) (22 U.S.C. 614(a))--
                    (A) by striking out ``political propaganda'' and 
                inserting in lieu thereof ``informational materials''; 
                and
                    (B) by striking out ``and a statement, duly signed 
                by or on behalf of such an agent, setting forth full 
                information as to the places, times and extent of such 
                transmittal'';
            (4) in section 4(b) (22 U.S.C. 614(b))--
                    (A) by striking out ``political propaganda'' and 
                inserting in lieu thereof ``informational materials''; 
                and
                    (B) by striking out ``(i) in the form of prints 
                or'' and all that follows through the end of the 
                subsection and inserting in lieu thereof ``without 
                placing in such informational materials a conspicuous 
                statement that the materials are distributed by the 
                agent on behalf of the foreign principal, and that 
                additional information is on file with the Department 
                of Justice, Washington, District of Columbia. The 
                Attorney General may by rule define what constitutes a 
                conspicuous statement for the purposes of this 
                subsection.'';
            (5) in section 4(c) (22 U.S.C. 614(c)), by striking out 
        ``political propaganda'' and inserting in lieu thereof 
        ``informational materials'';
            (6) in section 6 (22 U.S.C. 616)--
                    (A) in subsection (a), by striking out ``and all 
                statements concerning the distribution of political 
                propaganda'';
                    (B) in subsection (b), by striking out ``, and one 
                copy of every item of political propaganda''; and
                    (C) in subsection (c), by striking out ``copies of 
                political propaganda,'';
            (7) in section 8 (22 U.S.C. 618)--
                    (A) in subsection (a)(2), by striking out ``or in 
                any statement under section 4(a) hereof concerning the 
                distribution of political propaganda''; and
                    (B) by striking out subsection (d); and
            (8) in section 11 (22 U.S.C. 621), by striking out ``, 
        including the nature, sources, and content of political 
        propaganda disseminated or distributed.''.

SEC. 13. AMENDMENTS TO THE BYRD AMENDMENT.

    Section 1352(b) of title 31, United States Code, is amended--
            (1) in paragraph (2), by striking out subparagraphs (A), 
        (B), and (C) and inserting in lieu thereof the following:
                    ``(A) the name of any registrant under the Lobbying 
                Disclosure Act of 1993 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).'';
            (2) in paragraph (3), by striking out all that follows 
        ``loan shall contain'' and inserting in lieu thereof ``the name 
        of any registrant under the Lobbying Disclosure Act of 1993 who 
        has made lobbying contacts on behalf of the person in 
        connection with that loan insurance or guarantee.''; and
            (3) by striking out paragraph (6) and redesignating 
        paragraph (7) as paragraph (6).

SEC. 14. REPEAL OF CERTAIN LOBBYING PROVISIONS.

    (a) Repeal of the Federal Regulation of Lobbying Act.--The Federal 
Regulation of Lobbying Act (2 U.S.C. 261 et seq.) is repealed.
    (b) Repeal of Provisions Relating to Housing Lobbyist Activities.--
(1) Section 13 of the Department of Housing and Urban Development Act 
(42 U.S.C. 3537b) is repealed.
    (2) Section 536(d) of the Housing Act of 1949 (42 U.S.C. 1490p(d)) 
is repealed.
    (c) Repeal of Registration Requirement Relating to Public Utility 
Lobbying Activities.--Section 12(i) of the Public Utility Holding 
Company Act of 1935 (15 U.S.C. 79l(i)) is repealed.

SEC. 15. CONFORMING AMENDMENTS TO OTHER STATUTES.

    (a) Amendment to Competitiveness Policy Council Act.--Section 
5206(e) of the Competitiveness Policy Council Act (15 U.S.C. 4804(e)) 
is amended by inserting ``or a lobbyist for a foreign entity (as the 
terms `lobbyist' and `foreign entity' are defined under section 3 of 
the Lobbying Disclosure Act of 1993)'' after ``an agent for a foreign 
principal''.
    (b) Amendment to Title 18, United States Code.--Section 219(a) of 
title 18, United States Code, is amended by inserting ``or a lobbyist 
required to register under the Lobbying Disclosure Act of 1993 in 
connection with the representation of a foreign entity as defined under 
section 3(7) of such Act,'' after ``an agent of a foreign principal 
required to register under the Foreign Agents Registration Act of 1938, 
as amended,''.
    (c) Amendment to Foreign Service Act of 1980.--Section 602(c) of 
the Foreign Service Act of 1980 (22 U.S.C. 4002(c)) is amended by 
inserting ``or a lobbyist for a foreign entity (as defined in section 
3(7) of the Lobbying Disclosure Act of 1993)'' after ``an agent of a 
foreign principal (as defined by section 1(b) of the Foreign Agents 
Registration Act of 1938)''.
    (d) Amendment to the Federal Election Campaign Act.--Section 319(b) 
of the Federal Election Campaign Act (2 U.S.C. 441e(b)) is amended--
            (1) in paragraph (1) by striking out ``or'' after the 
        semicolon;
            (2) by redesignating paragraph (2) as paragraph (3); and
            (3) by inserting after paragraph (1) the following:
            ``(2) a foreign entity, as such term is defined by section 
        3(7) of the Lobbying Disclosure Act of 1993; or''.

SEC. 16. SEVERABILITY.

    If any provision of this Act, or the application thereof, is held 
invalid, the validity of the remainder of this Act and the application 
of such provision to other persons and circumstances shall not be 
affected thereby.

SEC. 17. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may be 
necessary to carry out this Act.

SEC. 18. EFFECTIVE DATES.

    (a) In General.--Except as otherwise provided in this section, the 
provisions of this Act shall take effect 1 year after the date of the 
enactment of this Act.
    (b) Establishment of Office.--The provisions of sections 6 and 17 
shall take effect on the date of the enactment of this Act.
    (c) Repeals and Amendments.--The repeals and amendments made under 
sections 12, 13, and 14 of this Act shall take effect as provided under 
subsection (a), except that such repeals and amendments--
            (1) shall not affect any proceeding or suit commenced 
        before the effective date under subsection (a), and in all such 
        proceedings or suits, proceedings shall be had, appeals taken, 
        and judgments rendered in the same manner and with the same 
        effect as if this Act had not been enacted; and
            (2) shall not affect the requirements of Federal agencies 
        to compile, publish, and retain information filed or received 
        before the effective date of such repeals and amendments.
    (d) Regulations.--Proposed regulations required to implement this 
Act shall be published for public comment no later than 270 days after 
the date of the enactment of this Act.
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