[Congressional Record Volume 140, Number 136 (Monday, September 26, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: September 26, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
      CONFERENCE REPORT ON S. 349 LOBBYING DISCLOSURE ACT OF 1994

  Mr. BRYANT submitted the following conference report and statement on 
the Senate bill (S. 349) to provide for the disclosure of lobbying 
activities to influence the Federal Government, and for other purposes:

                  Conference Report (H. Rept. 103-750)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the House to the bill (S. 
     349), to provide for the disclosure of lobbying activities to 
     influence the Federal Government, and for other purposes, 
     having met, after full and free conference, have agreed to 
     recommend and do recommend to their respective Houses as 
     follows:
       That the Senate recede from its disagreement to the 
     amendment of the House and agree to the same with an 
     amendment as follows:
       In lieu of the matter proposed to be inserted by the House 
     amendments, insert the following:
                      TITLE I--LOBBYING DISCLOSURE

     SECTION 101. SHORT TITLE.

       This title may be cited as the ``Lobbying Disclosure Act of 
     1994''.

     SEC. 102. FINDINGS.

       The Congress finds that--
       (1) responsible representative Government requires public 
     awareness of the efforts of paid lobbyists to influence the 
     public decision making 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 
     administrative 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.

     SEC. 103. DEFINITIONS.

       As used in this title:
       (1) Agency.--The term ``agency'' has the meaning given that 
     term in section 551(1) of title 5, United States Code.
       (2) Client.--The term ``client'' means any person or entity 
     that employs or retains another person for financial or other 
     compensation to conduct lobbying activities on behalf of that 
     person or entity. A person or entity whose employees act as 
     lobbyists on its own behalf is both a client and an employer 
     of such employees. In the case of a coalition or association 
     that employs or retains other persons to conduct lobbying 
     activities, the client is--
       (A) the coalition or association and not its individual 
     members when the lobbying activities are conducted on behalf 
     of its membership and financed by the coalition's or 
     association's dues and assessments; or
       (B) an individual member or members, when the lobbying 
     activities are conducted on behalf of, and financed 
     separately by, 1 or more individual members and not by the 
     coalition's or association's dues and assessments.
       (3) Covered executive branch official.--The term ``covered 
     executive branch official'' means--
       (A) the President;
       (B) the Vice President;
       (C) any officer or employee, or any other individual 
     functioning in the capacity of such an officer or employee, 
     in the Executive Office of the President;
       (D) any officer or employee serving in a position in level 
     I, II, III, IV, or V of the Executive Schedule, as designated 
     by statute or executive order;
       (E) any officer or employee serving in a Senior Executive 
     Service position, as defined in section 3132(a)(2) of title 
     5, United States Code;
       (F) any member of the uniformed services whose pay grade is 
     at or above O-7 under section 201 of title 37, United States 
     Code; and
       (G) any officer or employee serving in a position of a 
     confidential, policy-determining, policy-making, or policy-
     advocating character described in section 7511(b)(2) of title 
     5, United States Code.
       (4) Covered legislative branch official.--The term 
     ``covered legislative branch official'' means--
       (A) a Member of Congress;
       (B) an elected officer of either House of Congress;
       (C) any employee of, or any other individual functioning in 
     the capacity of an employee of--
       (i) a Member of Congress;
       (ii) a committee of either House of Congress;
       (iii) the leadership staff of the House of Representatives 
     or the leadership staff of the Senate;
       (iv) a joint committee of Congress; and
       (v) a working group or caucus organized to provide 
     legislative services or other assistance to Members of 
     Congress; and
       (D) any other legislative branch employee serving in a 
     position described under section 109(13) of the Ethics in 
     Government Act of 1978 (5 U.S.C. App.).
       (5) Director.--The term ``Director'' means the Director of 
     the Office of Lobbying Registration and Public Disclosure.
       (6) Employee.--The term ``employee'' means any individual 
     who is an officer, employee, partner, director, or proprietor 
     of a person or entity, but does not include--
       (A) independent contractors; or
       (B) volunteers who receive no financial or other 
     compensation from the person or entity for their services.
       (7) Foreign entity.--The term ``foreign entity'' means a 
     foreign principal (as defined in section 1(b) of the Foreign 
     Agents Registration Act of 1938 (22 U.S.C. 611(b)).
       (8) Grassroots lobbying communications.--The term 
     ``grassroots lobbying communications'' means--
       (A) any communication that attempts to influence a matter 
     described in clause (i), (ii), (iii), or (iv) of section 
     103(10)(A) through an attempt to affect the opinions of the 
     general public or any segment thereof;
       (B) any communication between an organization and any bona 
     fide member of such organization to directly encourage such 
     member to make a communication to a covered executive branch 
     official or a covered legislative branch official with regard 
     to a matter described in clause (i), (ii), (iii), or (iv) of 
     section 103(10)(A); and
       (C) any communication between an organization and any bona 
     fide member of such organization to directly encourage such 
     member to urge persons other than members to communicate as 
     provided in either subparagraph (A) or subparagraph (B).
       (9) Lobbying activities.--
       (A) Definition.--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, at the time it is 
     performed, for use in contacts, and coordination with the 
     lobbying activities of others. Except as provided in 
     subparagraph (B), lobbying activities also include grassroots 
     lobbying communications to the extent that such 
     communications are made in support of a lobbying contact. A 
     communication in support of a lobbying contact is a lobbying 
     activity even if the communication is excluded from the 
     definition of ``lobbying contact'' under paragraph (10)(B).
       (B) Religious organizations.--Lobbying activities do not 
     include grassroots lobbying communications by churches, their 
     integrated auxiliaries, conventions or associations of 
     churches, and religious orders that are exempt from filing 
     Federal income tax returns under paragraph (2)(A)(i) or 
     (2)(A)(iii) of section 6033(a) of the Internal Revenue Code 
     of 1986, unless such communications are made by another 
     registrant or any person or entity required to be identified 
     under section 104(b)(5).
       (10) Lobbying contact.--
       (A) Definition.--The term ``lobbying contact'' means any 
     oral or written communication (including an electronic 
     communication) to a covered executive branch official or a 
     covered legislative branch official that is 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;
       (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 this clause does not include 
     communications that are made to any covered executive branch 
     official--

       (I) who is serving in a Senior Executive Service position 
     described in paragraph (3)(E); or
       (II) who is a member of the uniformed services whose pay 
     grade is lower than O-9 under section 201 of title 37, United 
     States Code,

     in the agency responsible for taking such administrative or 
     executive action; or
       (iv) the nomination or confirmation of a person for a 
     position subject to confirmation by the Senate.
       (B) Exceptions.--The term ``lobbying contact'' does not 
     include a communication that is--
       (i) made by a public official acting in the public 
     official's official capacity;
       (ii) made by a representative of a media organization if 
     the purpose of the communication is gathering and 
     disseminating news and information to the public;
       (iii) made in a speech, article, publication or other 
     material that is widely distributed to the public, or through 
     radio, television, cable television, or other medium of mass 
     communication;
       (iv) made on behalf of a government of a foreign country or 
     a foreign political party and disclosed under the Foreign 
     Agents Registration Act of 1938 (22 U.S.C. 611 et seq.);
       (v) a request for a meeting, a request for the status of an 
     action, or any other similar administrative request, if the 
     request does not include an attempt to influence a covered 
     executive branch official or a covered legislative branch 
     official;
       (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 
     task force of the Congress, or submitted for inclusion in the 
     public record of a hearing conducted by such committee, 
     subcommittee, or task force;
       (viii) information provided in writing in response to a 
     written request by a covered executive branch official or a 
     covered legislative branch official for specific information;
       (ix) required by subpoena, civil investigative demand, or 
     otherwise compelled by statute, regulation, or other action 
     of the Congress or an 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 an official in an agency with regard to--

       (I) a judicial proceeding or a criminal or civil law 
     enforcement inquiry, investigation, or proceeding; or
       (II) a filing or proceeding that the Government is 
     specifically required by statute or regulation to maintain or 
     conduct on a confidential basis,

     if that agency is charged with responsibility for such 
     proceeding, inquiry, investigation, or filing;
       (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) a written comment filed in the course of a public 
     proceeding or any other communication that is made on the 
     record in a public proceeding;
       (xv) a petition for agency action made in writing and 
     required to be a matter of public record pursuant to 
     established agency procedures;
       (xvi) made on behalf of an individual with regard to that 
     individual's benefits, employment, or other personal matters 
     involving only that individual, except that this clause does 
     not apply to any communication with--

       (I) a covered executive branch official, or
       (II) a covered legislative branch official (other than the 
     individual's elected Members of Congress or employees who 
     work under such Members' direct supervision),

     with respect to the formulation, modification, or adoption of 
     private legislation for the relief of that individual;
       (xvii) a disclosure by an individual that is protected 
     under the amendments made by the Whistleblower Protection Act 
     of 1989, under the Inspector General Act of 1978, or under 
     another provision of law;
       (xviii) made by--

       (I) a church, its integrated auxiliary, or a convention or 
     association of churches that is exempt from filing a Federal 
     income tax return under paragraph 2(A)(i) of section 6033(a) 
     of the Internal Revenue Code of 1986, or
       (II) a religious order that is exempt from filing a Federal 
     income tax return under paragraph (2)(A)(iii) of such section 
     6033(a),

     if the communication constitutes the free exercise of 
     religion or is for the purpose of protecting the right to the 
     free exercise of religion; and
       (xix) between--

       (I) officials of a self-regulatory organization (as defined 
     in section 3(a)(26) of the Securities Exchange Act) that is 
     registered with or established by the Securities and Exchange 
     Commission as required by that Act; and
       (II) the Securities and Exchange Commission,

     relating to the regulatory responsibilities of such 
     organization under that Act.
       (11) Lobbying firm.--The term ``lobbying firm'' means a 
     person or entity that has 1 or more employees who are 
     lobbyists on behalf of a client other than that person or 
     entity. The term also includes a self-employed individual who 
     is a lobbyist.
       (12) Lobbyist.--The term ``lobbyist'' means any individual 
     who is employed or retained by a client for financial or 
     other compensation for services that include one or more 
     lobbying contacts, other than an individual whose lobbying 
     activities constitute less than 10 percent of the time 
     engaged in the services provided by such individual to that 
     client.
       (13) Media organization.--The term ``media organization'' 
     means a person or entity engaged in disseminating information 
     to the general public through a newspaper, magazine, other 
     publication, radio, television, cable television, or other 
     medium of mass communication.
       (14) Member of congress.--The term ``Member of Congress'' 
     means a Senator or a Representative in, or Delegate or 
     Resident Commissioner to, the Congress.
       (15) Organization.--The term ``organization'' means a 
     person or entity other than an individual.
       (16) Person or entity.--The term ``person or entity'' means 
     any individual, corporation, company, foundation, 
     association, labor organization, firm, partnership, society, 
     joint stock company, group of organizations, or State or 
     local government.
       (17) Public official.--The term ``public official'' means 
     any elected official, appointed official, or employee of--
       (A) a Federal, State, or local unit of government in the 
     United States other than--
       (i) a college or university;
       (ii) a government-sponsored enterprise (as defined in 
     section 3(8) of the Congressional Budget and Impoundment 
     Control Act of 1974);
       (iii) a public utility that provides gas, electricity, 
     water, or communications;
       (iv) a guaranty agency (as defined in section 435(j) of the 
     Higher Education Act of 1965 (20 U.S.C. 1085(j))), including 
     any affiliate of such an agency; or
       (v) an agency of any State functioning as a student loan 
     secondary market pursuant to section 435(d)(1)(F) of the 
     Higher Education Act of 1965 (20 U.S.C. 1085(d)(1)(F));
       (B) a Government corporation (as defined in section 9101 of 
     title 31, United States Code);
       (C) an organization of State or local elected or appointed 
     officials other than officials of an entity described in 
     clause (i), (ii), (iii), (iv), or (v) of subparagraph (A);
       (D) an Indian tribe (as defined in section 4(e) of the 
     Indian Self-Determination and Education Assistance Act (25 
     U.S.C. 450b(e));
       (E) a national or State political party or any 
     organizational unit thereof; or
       (F) a national, regional, or local unit of any foreign 
     government.
       (18) State.--The term ``State'' means each of the several 
     States, the District of Columbia, and any commonwealth, 
     territory, or possession of the United States.

     SEC. 104. REGISTRATION OF LOBBYISTS.

       (a) Registration.--
       (1) General rule.--No later than 30 days after a lobbyist 
     first makes a lobbying contact or is employed or retained to 
     make a lobbying contact, whichever is earlier, such lobbyist 
     (or, as provided under paragraph (2), the organization 
     employing such lobbyist), shall register with the Office of 
     Lobbying Registration and Public Disclosure.
       (2) Employer filing.--Any organization that has 1 or more 
     employees who are lobbyists shall file a single registration 
     under this section on behalf of such employees for each 
     client on whose behalf the employees act as lobbyists.
       (3) Exemption.--
       (A) General rule.--Notwithstanding paragraphs (1) and (2), 
     a person or entity whose--
       (i) total income for matters related to lobbying activities 
     on behalf of a particular client (in the case of a lobbying 
     firm) does not exceed and is not expected to exceed $2,500; 
     or
       (ii) total expenses in connection with lobbying activities 
     (in the case of an organization whose employees engage in 
     lobbying activities on its own behalf) do not exceed or are 
     not expected to exceed $5,000,
     (as estimated under section 105) in the semiannual period 
     described in section 105(a) during which the registration 
     would be made is not required to register under subsection 
     (a) with respect to such client.
       (B) Adjustment.--The dollar amounts in subparagraph (A) 
     shall be adjusted--
       (i) on January 1, 1997, to reflect changes in the Consumer 
     Price Index (as determined by the Secretary of Labor) since 
     the date of enactment of this title; and
       (ii) on January 1 of each fourth year occurring after 
     January 1, 1997, to reflect changes in the Consumer Price 
     Index (as determined by the Secretary of Labor) during the 
     preceding 4-year period,
     rounded to the nearest $500.
       (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, address, and principal place of business of 
     any organization, other than the client, that--
       (A) contributes more than $5,000 toward the lobbying 
     activities of the registrant in a semiannual period described 
     in section 105(a); and
       (B) participates significantly in the planning, 
     supervision, or control of such lobbying activities;
       (4) the name, address, principal place of business, amount 
     of any contribution of more than $5,000 to the lobbying 
     activities of the registrant, and approximate percentage of 
     equitable ownership in the client (if any) of any foreign 
     entity that--
       (A) holds at least 20 percent equitable ownership in the 
     client or any organization identified under paragraph (3);
       (B) directly or indirectly, in whole or in major part, 
     plans, supervises, controls, directs, finances, or subsidizes 
     the activities of the client or any organization identified 
     under paragraph (3); or
       (C) is an affiliate of the client or any organization 
     identified under paragraph (3) and has a direct interest in 
     the outcome of the lobbying activity;
       (5) the name, address, and principal place of business of 
     any person or entity retained by the registrant to conduct 
     grassroots lobbying communications on behalf of the 
     registrant or the client (other than an employee of the 
     registrant or a person or entity that is separately 
     registered under this title in connection with such 
     representation);
       (6) a statement of--
       (A) the general issue areas in which the registrant expects 
     to engage in lobbying activities on behalf of the client; and
       (B) to the extent practicable, specific issues that have 
     (as of the date of the registration) already been addressed 
     or are likely to be addressed in lobbying activities; and
       (7) the name of each employee of the registrant who has 
     acted or whom the registrant expects to act as a lobbyist on 
     behalf of the client and, if any such employee has served as 
     a covered executive branch official or a covered legislative 
     branch official in the 2 years before the date on which such 
     employee first acted (after the date of enactment of this 
     Act) as a lobbyist on behalf of the client, the position in 
     which such employee served.
       (c) Guidelines for Registration.--
       (1) Multiple clients.--In the case of a registrant making 
     lobbying contacts on behalf of more than 1 client, a separate 
     registration under this section shall be filed for each such 
     client.
       (2) Multiple contacts.--A registrant who makes more than 1 
     lobbying contact for the same client shall file a single 
     registration covering all such lobbying contacts.
       (d) Termination of Registration.--A registrant who after 
     registration--
       (1) is no longer employed or retained by a client to 
     conduct lobbying activities, and
       (2) does not anticipate any additional lobbying activities 
     for such client,
     may so notify the Director and terminate its registration.

     SEC. 105. REPORTS BY REGISTERED LOBBYISTS.

       (a) Semiannual Report.--
       (1) In general.--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 a registrant 
     is registered under section 104, each registrant shall file a 
     report with the Office of Lobbying Registration and Public 
     Disclosure on its lobbying activities during such semiannual 
     period. A separate report shall be filed for each client of 
     the registrant.
       (2) Exemption.--
       (A) General rule.--Any registrant whose--
       (i) total income for a particular client for matters that 
     are related to lobbying activities on behalf of that client 
     (in the case of a lobbying firm), does not exceed and is not 
     expected to exceed $2,500; or
       (ii) total expenses in connection with lobbying activities 
     (in the case of a registrant whose employees engage in 
     lobbying activities on its own behalf) do not exceed and are 
     not expected to exceed $5,000,
     in a semiannual period (as estimated under paragraph (3) or 
     (4) of subsection (b) or paragraph (4) of subsection (c), 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.
       (B) Adjustment.--The dollar amounts in subparagraph (A) 
     shall be adjusted as provided in section 104(a)(3)(B).
       (b) Contents of Report.--Each semiannual report filed under 
     subsection (a) 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 a lobbyist 
     employed by the registrant engaged in lobbying activities, 
     including, to the maximum extent practicable, a list of bill 
     numbers and references to specific regulatory actions, 
     programs, projects, contracts, grants and loans;
       (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;
       (C) a list of the employees of the registrant who acted as 
     lobbyists on behalf of the client;
       (D) a description of the interest, if any, of any foreign 
     entity identified under section 104(b)(4) in the specific 
     issues listed under subparagraph (A); and
       (E) a list of the specific issues on which any person or 
     entity required to be identified under section 104(b)(5) has 
     engaged in grassroots lobbying communications on behalf of 
     the client;
       (3) in the case of a lobbying firm, a good faith estimate 
     of the total amount of all income from the client (including 
     any payments to the registrant by any other person for 
     lobbying activities on behalf of the client) during the 
     semiannual period, other than income for matters that are 
     unrelated to lobbying activities;
       (4) in the case of a registrant engaged in lobbying 
     activities on its own behalf, a good faith estimate of the 
     total expenses that the registrant and its employees incurred 
     in connection with lobbying activities during the semiannual 
     filing period;
       (5) the name, address, and principal place of business of 
     any person or entity other than the client who paid the 
     registrant to lobby on behalf of the client; and
       (6) a good faith estimate of the total expenses that the 
     registrant and its employees incurred in connection with 
     grassroots lobbying communications on behalf of the client 
     (including any amount paid, in connection with such 
     communications, to a person or entity required to be 
     identified under section 104(b)(5)).
       (c) Estimates of Income or Expenses.--For purposes of this 
     section, estimates of income or expenses shall be made as 
     follows:
       (1) $100,000 or less.--Income or expenses of $100,000 or 
     less shall be estimated in accordance with the following 
     categories:
       (A) $10,000 or less.
       (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.
       (2) More than $100,000 but not more than $500,000.--Income 
     or expenses in excess of $100,000 but not more than $500,000 
     shall be estimated and rounded to the nearest $50,000.
       (3) More than $500,000.--Income or expenses in excess of 
     $500,000 shall be estimated and rounded to the nearest 
     $100,000.
       (4) Estimates based on tax reporting system.--In the case 
     of any registrant that is required to report and does report 
     lobbying expenditures as required by section 6033(b)(8) of 
     the Internal Revenue Code of 1986, regulations prescribed 
     under section 107 shall provide that the registrant may make 
     a good faith estimate of applicable amounts that would be 
     required to be disclosed under such section of the Internal 
     Revenue Code of 1986 for the applicable semiannual period (by 
     category of dollar value) to meet the requirements of 
     subsections (b)(4) and (b)(6), if each time the registrant 
     makes such an estimate, the registrant informs the Director 
     that the registrant is making such an estimate.
       (5) Construction.--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 of the registrant who is separately registered 
     under this title.
       (d)  Contacts.--
       (1) Contacts with committees.--For purposes of subsection 
     (b)(2), any contact with a member of a committee of Congress, 
     an employee of a committee of Congress, or an employee of a 
     member of a committee of Congress regarding a matter within 
     the jurisdiction of such committee shall be considered to be 
     a contact with the committee.
       (2) Contacts with house of congress.--For purposes of 
     subsection (b)(2), any contact with a Member of Congress or 
     an employee of a Member of Congress regarding a matter that 
     is not within the jurisdiction of a committee of Congress of 
     which that Member is a member shall be considered to be a 
     contact with the House of Congress of that Member.
       (3) Contacts with federal agencies.--For purposes of 
     subsection (b)(2), any contact with a covered executive 
     branch official shall be considered to be a contact with the 
     Federal agency that employs that official, except that a 
     contact with a covered executive branch official who is 
     detailed to another Federal agency or to the Congress shall 
     be considered to be a contact with the Federal agency or with 
     the committee of Congress or House of Congress to which the 
     official is detailed.
       (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, upon the request of the 
     registrant, for good cause shown.

     SEC. 106. PROHIBITION ON GIFTS BY LOBBYISTS, LOBBYING FIRMS, 
                   AND AGENTS OF FOREIGN PRINCIPALS.

       (a) In General.--
       (1) Prohibition.--No lobbyist or lobbying firm registered 
     under this title and no agent of a foreign principal 
     registered under the Foreign Agents Registration Act may 
     provide a gift, directly or indirectly, to any covered 
     legislative branch official.
       (2) Definition.--For purposes of this section--
       (A) the term `gift' means any gratuity, favor, discount, 
     entertainment, hospitality, loan, forbearance, or other item 
     having monetary value and such term includes gifts of 
     services, training, transportation, lodging, and meals, 
     whether provided in kind, by purchase of a ticket, payment in 
     advance, or reimbursement after the expense has been 
     incurred; and
       (B) a gift to the spouse or dependent of a covered 
     legislative branch official (or a gift to any other 
     individual based on that individual's relationship with the 
     covered legislative branch official) shall be considered a 
     gift to the covered legislative branch official if it is 
     given with the knowledge and acquiescence of the covered 
     legislative branch official and is given because of the 
     official position of the covered legislative branch official.
       (b) Gifts.--The prohibition in subsection (a) includes the 
     following:
       (1) Anything provided by a lobbyist or a foreign agent 
     which is paid for, charged to, or reimbursed by a client or 
     firm of such lobbyist or foreign agent.
       (2) Anything provided by a lobbyist, a lobbying firm, or a 
     foreign agent to an entity that is maintained or controlled 
     by a covered legislative branch official.
       (3) A charitable contribution (as defined in section 170(c) 
     of the Internal Revenue Code of 1986) made by a lobbyist, a 
     lobbying firm, or a foreign agent on the basis of a 
     designation, recommendation, or other specification of a 
     covered legislative branch official (not including a mass 
     mailing or other solicitation directed to a broad category of 
     persons or entities).
       (4) A contribution or other payment by a lobbyist, a 
     lobbying firm, or a foreign agent to a legal expense fund 
     established for the benefit of a covered legislative branch 
     official or a covered executive branch official.
       (5) A charitable contribution (as defined in section 170(c) 
     of the Internal Revenue Code of 1986) made by a lobbyist, a 
     lobbying firm, or a foreign agent in lieu of an honorarium to 
     a covered legislative branch official.
       (6) A financial contribution or expenditure made by a 
     lobbyist, a lobbying firm, or a foreign agent relating to a 
     conference, retreat, or similar event, sponsored by or 
     affiliated with an official congressional organization, for 
     or on behalf of covered legislative branch officials.
       (c) Not Gifts.--The following are not gifts subject to the 
     prohibition in subsection (a):
       (1) Anything for which the recipient pays the market value, 
     or does not use and promptly returns to the donor.
       (2) A contribution, as defined in the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 431 et seq.) that is lawfully 
     made under that Act, or attendance at a fundraising event 
     sponsored by a political organization described in section 
     527(e) of the Internal Revenue Code of 1986.
       (3) Food or refreshments of nominal value offered other 
     than as part of a meal.
       (4) Benefits resulting from the business, employment, or 
     other outside activities of the spouse of a covered 
     legislative branch official, if such benefits are customarily 
     provided to others in similar circumstances.
       (5) Pension and other benefits resulting from continued 
     participation in an employee welfare and benefits plan 
     maintained by a former employer.
       (6) Informational materials that are sent to the office of 
     a covered legislative branch official in the form of books, 
     articles, periodicals, other written materials, audio tapes, 
     videotapes, or other forms of communication.
       (d) Gifts Given for a Nonbusiness Purpose and Motivated by 
     Family Relationship or Close Personal Friendship.--
       (1) In general.--A gift given by an individual under 
     circumstances which make it clear that the gift is given for 
     a nonbusiness purpose and is motivated by a family 
     relationship or close personal friendship and not by the 
     position of the covered legislative branch official shall not 
     be subject to the prohibition in subsection (a).
       (2) Nonbusiness purpose.--A gift shall not be considered to 
     be given for a nonbusiness purpose if the individual giving 
     the gift seeks--
       (A) to deduct the value of such gift as a business expense 
     on the individual's Federal income tax return, or
       (B) direct or indirect reimbursement or any other 
     compensation for the value of the gift from a client or 
     employer of such lobbyist or foreign agent.
       (3) Family relationship or close personal friendship.--In 
     determining if the giving of a gift is motivated by a family 
     relationship or close personal friendship, at least the 
     following factors shall be considered:
       (A) The history of the relationship between the individual 
     giving the gift and the recipient of the gift, including 
     whether or not gifts have previously been exchanged by such 
     individuals.
       (B) Whether the gift was purchased by the individual who 
     gave the item.
       (C) Whether the individual who gave the gift also at the 
     same time gave the same or similar gifts to other covered 
     legislative branch officials.

     SEC. 107. OFFICE OF LOBBYING REGISTRATION AND PUBLIC 
                   DISCLOSURE.

       (a) Establishment and Director.--
       (1) Establishment.--There is established an executive 
     agency to be known as the Office of Lobbying Registration and 
     Public Disclosure.
       (2) Director.--(A) The Office shall be headed by a 
     Director, who shall be appointed by the President, by and 
     with the advice and consent of the Senate.
       (B) The Director shall be an individual who, by 
     demonstrated ability, background, training, and experience, 
     is qualified to carry out the functions of the position. The 
     term of service of the Director shall be 5 years. The 
     Director may be removed for cause.
       (C) Section 5316 of title 5, United States Code, is amended 
     by adding at the end the following: ``Director of the Office 
     of Lobbying Registration and Public Disclosure''.
       (b) Administrative Powers.--The Director may--
       (1) appoint officers and employees, including attorneys, in 
     accordance with chapter 51 and subchapter III of chapter 53 
     of title 5, United States Code, define their duties and 
     responsibilities, and direct and supervise their activities;
       (2) contract for financial and administrative services 
     (including those related to budget and accounting, financial 
     reporting, personnel, and procurement) with the General 
     Services Administration, or such Federal agency as the 
     Director determines appropriate, for which payment shall be 
     made in advance or by reimbursement from funds of the Office 
     in such amounts as may be agreed upon by the Director and the 
     head of the agency providing such services, but the contract 
     authority under this paragraph shall be effective for any 
     fiscal year only to the extent that appropriations are 
     available for that purpose;
       (3) request the head of any Federal department or agency 
     (who is hereby so authorized) to detail to temporary duties 
     with the Office such personnel within the agency head's 
     administrative jurisdiction as the Office may need for 
     carrying out its functions under this title, with or without 
     reimbursement;
       (4) request agency heads to provide information needed by 
     the Office, which information shall be supplied to the extent 
     permitted by law;
       (5) utilize, with their consent, the services and 
     facilities of Federal agencies with or without reimbursement;
       (6) accept, use, and dispose of gifts or donations of 
     services or property, real, personal, or mixed, tangible or 
     intangible, for purposes of aiding or facilitating the work 
     of the Office; and
       (7) use the United States mails in the same manner and 
     under the same conditions as other departments and agencies 
     of the United States.
       (c) Cooperation With Other Governmental Agencies.--In order 
     to avoid unnecessary expense and duplication of function 
     among Government agencies, the Office may make such 
     arrangements or agreements for cooperation or mutual 
     assistance in the performance of its functions under this 
     title as is practicable and consistent with law. The head of 
     the General Services Administration and each department, 
     agency, or establishment of the United States shall cooperate 
     with the Office and, to the extent permitted by law, provide 
     such information, services, personnel, and facilities as the 
     Office may request for its assistance in the performance of 
     its functions under this title.
       (d) Duties.--The Director shall--
       (1) after notice and a reasonable 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 regulations, penalty guidelines, and forms as are 
     necessary to carry out this title;
       (2) provide guidance and assistance on the registration and 
     reporting requirements of this title, including--
       (A) providing information to all registrants at the time of 
     registration about the obligations of registered lobbyists 
     under this title, and
       (B) issuing published decisions and advisory opinions;
       (3) review the registrations and reports filed under this 
     title and make such verifications or inquiries as are 
     necessary to ensure the completeness, accuracy, and 
     timeliness of the registrations and reports;
       (4) develop filing, coding, and cross-indexing systems to 
     carry out the purposes of this title, including--
       (A) a publicly available list of all registered lobbyists 
     and their clients; and
       (B) computerized systems designed to minimize the burden of 
     filing and maximize public access to materials filed under 
     this title;
       (5) ensure that the computer systems developed pursuant to 
     paragraph (4)--
       (A) allow the materials filed under this title to be 
     accessed by the client name, lobbyist name, and registrant 
     name;
       (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; and
       (C) are compatible with computer systems developed and 
     maintained by the Secretary of the Senate and the Clerk of 
     the House of Representatives;
       (6) make copies of each registration and report filed under 
     this title available to the public, upon the payment of 
     reasonable fees, not to exceed the cost of such copies, as 
     determined by the Director, in written and electronic 
     formats, as soon as practicable after the date on which such 
     registration or report is received;
       (7) preserve the originals or accurate reproduction of--
       (A) registrations filed under this title for a period that 
     ends not less than 3 years after the termination of the 
     registration under section 104(d); and
       (B) reports filed under this title for a period that ends 
     not less than 3 years after the date on which the report is 
     received;
       (8) maintain a computer record of--
       (A) the information contained in registrations for a period 
     that ends not less than 5 years after the termination of the 
     registration under section 104(d); and
       (B) the information contained in reports filed under this 
     title for a period that ends not less than 5 years after the 
     date on which the reports are received;
       (9) compile and summarize, with respect to each semiannual 
     period, the information contained in registrations and 
     reports filed with respect to 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 or other 
     transmittal in a form accessible by computer, to the 
     Secretary of the Senate and the Clerk of the House of 
     Representatives copies of all registrations and reports 
     received under sections 104 and 105 and all compilations, 
     cross-indexes, and summaries of such registrations and 
     reports, as soon as practicable (but not later than 3 working 
     days) after such material is received or created;
       (12) make available to the public a list of all persons 
     whom the Director determines, under section 109 (after 
     exhaustion of all appeals under section 111) to have 
     committed a major or minor violation of this title and submit 
     such list to the Congress as part of the report provided for 
     under paragraph (13);
       (13) make available to the public upon request and transmit 
     to the President, the Secretary of the Senate, the Clerk of 
     the House of Representatives, the Committee on Governmental 
     Affairs of the Senate, and the Committee on the Judiciary of 
     the House of Representatives a report, not later than March 
     31 of each year, describing the activities of the Office and 
     the implementation of this title, including--
       (A) a financial statement for the preceding fiscal year;
       (B) a summary of the registrations and reports filed with 
     the Office with respect to the preceding calendar year;
       (C) a summary of the registrations and reports filed on 
     behalf of foreign entities with respect to the preceding 
     calendar year; and
       (D) recommendations for such legislative or other action as 
     the Director considers appropriate; and
       (14) study the appropriateness of the definition of 
     ``public official'' under section 103(17) and make 
     recommendations for any change in such definition in the 
     first report filed pursuant to paragraph (13).

     SEC. 108. INITIAL PROCEDURE FOR ALLEGED VIOLATIONS.

       (a) Allegation of a Violation.--Whenever the Office of 
     Lobbying Registration and Public Disclosure has reason to 
     believe that a person or entity may be in violation of the 
     requirements of this title, the Director shall notify the 
     person or entity in writing of the nature of the alleged 
     violation and provide an opportunity for the person or entity 
     to respond in writing to the allegation within 30 days after 
     the notification is sent or such longer period as the 
     Director may determine appropriate in the circumstances.
       (b) Initial Determination.--
       (1) In general.--If the person or entity responds within 
     the period described in the notification under subsection 
     (a), the Director shall--
       (A) issue a written determination that the person or entity 
     has not violated this title if the person or entity provides 
     adequate information or explanation to make such 
     determination; or
       (B) make a formal request for information under subsection 
     (c) or a notification under section 109(a), if the 
     information or explanation provided is not adequate to make a 
     determination under subparagraph (A).
       (2) Written decision.--If the Director makes a 
     determination under paragraph (1)(A), the Director shall 
     issue a public written decision in accordance with section 
     110.
       (c) Formal Request for Information.--If a person or entity 
     fails to respond in writing within the period described in 
     the notification under subsection (a) or the response is not 
     adequate to determine whether such person or entity has 
     violated this title, the Director may make a formal request 
     for specific additional written information (subject to 
     applicable privileges) that is reasonably necessary for the 
     Director to make such determination. Each such request shall 
     be structured to minimize any burden imposed, consistent with 
     the need to determine whether the person or entity is in 
     compliance with this title, and shall--
       (1) state the nature of the conduct constituting the 
     alleged violation which is the basis for the inquiry and the 
     provision of law applicable thereto;
       (2) describe the class or classes of material to be 
     produced pursuant to the request 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 person or entity 
     may assemble and make available for inspection and copying or 
     reproduction the material so requested.

     SEC. 109. DETERMINATIONS OF VIOLATIONS.

       (a) Notification and Hearing.--If the information provided 
     to the Director under section 108 indicates that a person or 
     entity may have violated this title, the Director shall--
       (1) notify the person or entity in writing of this finding 
     and, if appropriate, a proposed penalty assessment and 
     provide such person or entity with an opportunity to respond 
     in writing within 30 days after the notice is sent; and
       (2) if requested in writing by that person or entity within 
     that 30-day period, afford the person or entity an 
     opportunity for a hearing on the record under the provisions 
     of section 554 of title 5, United States Code.
       (b) Determination.--Upon the receipt of a written response 
     under subsection (a)(1) when no hearing under subsection 
     (a)(2) is requested, upon the completion of a hearing 
     requested under subsection (a)(2), or upon the expiration of 
     30 days in a case in which no such written response is 
     received, the Director shall review the information received 
     under section 108 and this section (including evidence 
     presented at any such hearing) and make a final determination 
     whether there was a violation and a final determination of 
     the penalty, if any. If no written response was received 
     under this section within the 30-day period provided, the 
     determination and penalty assessment shall constitute a final 
     order not subject to appeal.
       (c) Written Decision.--
       (1) Determination of violation.--If the Director makes a 
     final determination under subsection (b) that there was a 
     violation, the Director shall issue a written decision in 
     accordance with section 110--
       (A) directing the person or entity to correct the 
     violation; and
       (B) assessing a civil monetary penalty--
       (i) in the case of a minor violation, which shall be no 
     more than $10,000, depending on the extent and gravity of the 
     violation;
       (ii) in the case of a major violation, which shall be more 
     than $10,000, but no more than $200,000, depending on the 
     extent and gravity of the violation;
       (iii) in the case of a late registration or filing, which 
     shall be $200 for each week by which the registration or 
     filing was late, unless the Director determines that the 
     failure to timely register or file constitutes a major 
     violation (as defined under subsection (e)(2)) in which case 
     the amount shall be as prescribed by clause (ii); or
       (iv) in the case of a failure to provide information 
     requested by the Director pursuant to section 108(c), which 
     shall be no more than $10,000, depending on the extent and 
     gravity of the violation, except that no penalty shall be 
     assessed if the Director determines that the violation was 
     the result of a good faith dispute over the validity or 
     appropriate scope of a request for information.
       (2) Determination of no violation or insufficient 
     evidence.--If the Director determines that no violation 
     occurred or there was not sufficient evidence that a 
     violation occurred, the Director shall issue a written 
     decision in accordance with section 110.
       (d) Civil Injunctive Relief.--If a person or entity fails 
     to comply with a directive to correct a violation under 
     subsection (c), the Director shall refer the case to the 
     Attorney General to seek civil injunctive relief in the 
     appropriate court of the United States to compel such person 
     or entity to comply with such directive.
       (e) Penalty Assessments.--
       (1) General rule.--No penalty shall be assessed under this 
     section unless the Director finds that the person or entity 
     subject to the penalty knew or should have known that such 
     person or entity was in violation of this title. 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 
     violation, whether the violation was voluntarily admitted and 
     corrected, the extent to which the person or entity may have 
     profited from the violation, the ability of the person or 
     entity to pay, and such other matters as justice may require.
       (2) Regulations.--Regulations prescribed by the Director 
     under section 107 shall define major and minor violations. 
     Major violations shall be defined to include a failure to 
     register and any other violation that is extensive or 
     repeated, if the person or entity who failed to register or 
     committed such other violation--
       (A) had actual knowledge that the conduct constituted a 
     violation;
       (B) acted in deliberate ignorance of the provisions of this 
     title or regulations related to the conduct constituting a 
     violation; or
       (C) acted in reckless disregard of the provisions of this 
     title or regulations related to the conduct constituting a 
     violation.
       (f) Limitation.--No proceeding shall be initiated under 
     section 108 or this section unless the Director notifies the 
     person or entity who is to be the subject of the proceeding 
     of the alleged violation within 3 years after the date on 
     which the alleged violation occurred.

     SEC. 110. DISCLOSURE OF INFORMATION; WRITTEN DECISIONS.

       (a) Disclosure of Information.--Information provided to the 
     Director pursuant to sections 108 and 109 shall not be made 
     available to the public without the consent of the person or 
     entity providing the information, except to the extent that 
     such information may be included in--
       (1) a new or amended report or registration filed under 
     this title; or
       (2) a written decision issued by the Director under this 
     section.
       (b) Written Decisions.--All written decisions issued by the 
     Director under sections 108 and 109 shall be made available 
     to the public. The Director may provide for the publication 
     of a written decision if the Director determines that 
     publication would provide useful guidance. Before making a 
     written decision public, the Director--
       (1) shall delete information that would identify a person 
     or entity who was alleged to have violated this title if--
       (A) there was insufficient evidence to determine that the 
     person or entity violated this title or the Director found 
     that person or entity did not violate this title, and
       (B) the person or entity so requests; and
       (2) shall delete information that would identify any other 
     person or entity (other than a person or entity who was found 
     to have violated this title), if the Director determines that 
     such person or entity could reasonably be expected to be 
     injured by the disclosure of such information.

     SEC. 111. JUDICIAL REVIEW.

       (a) Final Decision.--A written decision issued by the 
     Director under section 109 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 or entity adversely affected by a 
     written decision issued by the Director under section 109 may 
     appeal such decision, except as provided under section 
     109(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 of appeal 
     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 title 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.

     SEC. 112. RULES OF CONSTRUCTION.

       (a) Constitutional Rights.--Nothing in this title shall be 
     construed to prohibit or interfere with--
       (1) the right to petition the government for the redress of 
     grievances;
       (2) the right to express a personal opinion; or
       (3) the right of association,

     protected by the First Amendment to the Constitution.
       (b) Prohibition of Activities.--Nothing in this title shall 
     be construed to prohibit, or to authorize the Director or any 
     court to prohibit, lobbying activities or lobbying contacts 
     by any person or entity, regardless of whether such person or 
     entity is in compliance with the requirements of this title.
       (c) Audit and Investigations.--Nothing in this title shall 
     be construed to grant general audit or investigative 
     authority to the Director.

     SEC. 113. AMENDMENTS TO THE FOREIGN AGENTS REGISTRATION ACT.

       The Foreign Agents Registration Act of 1938 (22 U.S.C. 611 
     et seq.) is amended--
       (1) in section 1--
       (A) by striking subsection (j);
       (B) in subsection (o) by striking ``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 ``any activity that 
     the person engaging in believes will, or that the person 
     intends to, in any way influence'';
       (C) in subsection (p) by striking the semicolon and 
     inserting a period; and
       (D) by striking subsection (q);
       (2) in section 3(g) (22 U.S.C. 613(g)), by striking 
     ``established agency proceedings, whether formal or 
     informal.'' and inserting ``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 3 (22 U.S.C. 613) by adding at the end the 
     following:
       ``(h) Any agent of a person described in section 1(b)(2) or 
     an entity described in section 1(b)(3) if the agent is 
     required to register and does register under the Lobbying 
     Disclosure Act of 1994 in connection with the agent's 
     representation of such person or entity.'';
       (4) in section 4(a) (22 U.S.C. 614(a))--
       (A) by striking ``political propaganda'' and inserting 
     ``informational materials''; and
       (B) by striking ``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'';
       (5) in section 4(b) (22 U.S.C. 614(b))--
       (A) in the matter preceding clause (i), by striking 
     ``political propaganda'' and inserting ``informational 
     materials''; and
       (B) by striking ``(i) in the form of prints, or'' and all 
     that follows through the end of the subsection and inserting 
     ``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.'';
       (6) in section 4(c) (22 U.S.C. 614(c)), by striking 
     ``political propaganda'' and inserting ``informational 
     materials'';
       (7) in section 6 (22 U.S.C. 616)--
       (A) in subsection (a) by striking ``and all statements 
     concerning the distribution of political propaganda'';
       (B) in subsection (b) by striking ``, and one copy of every 
     item of political propaganda''; and
       (C) in subsection (c) by striking ``copies of political 
     propaganda,'';
       (8) in section 8 (22 U.S.C. 618)--
       (A) in subsection (a)(2) by striking ``or in any statement 
     under section 4(a) hereof concerning the distribution of 
     political propaganda''; and
       (B) by striking subsection (d); and
       (9) in section 11 (22 U.S.C. 621) by striking ``, including 
     the nature, sources, and content of political propaganda 
     disseminated or distributed''.

     SEC. 114. AMENDMENTS TO THE BYRD AMENDMENT.

       (a) Revised Certification Requirements.--Section 1352(b) of 
     title 31, United States Code, is amended--
       (1) in paragraph (2) by striking subparagraphs (A), (B), 
     and (C) and inserting the following:
       ``(A) the name of any registrant under the Lobbying 
     Disclosure Act of 1994 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 all that follows ``loan 
     shall contain'' and inserting ``the name of any registrant 
     under the Lobbying Disclosure Act of 1994 who has made 
     lobbying contacts on behalf of the person in connection with 
     that loan insurance or guarantee.''; and
       (3) by striking paragraph (6) and redesignating paragraph 
     (7) as paragraph (6).
       (b) Removal of Obsolete Reporting Requirement.--Section 
     1352 of title 31, United States Code, is further amended--
       (1) by striking subsection (d); and
       (2) by redesignating subsections (e), (f), (g), and (h) as 
     subsections (d), (e), (f), and (g), respectively.

     SEC. 115. 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.

     SEC. 116. 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 103 of the Lobbying Disclosure Act 
     of 1994)'' after ``an agent for a foreign principal''.
       (b) Amendments to Title 18, United States Code.--Section 
     219(a) of title 18, United States Code, is amended (1) by 
     inserting ``or a lobbyist required to register under the 
     Lobbying Disclosure Act of 1994 in connection with the 
     representation of a foreign entity, as defined in section 
     103(7) of that Act'' after ``an agent of a foreign principal 
     required to register under the Foreign Agents Registration 
     Act of 1938'', and (2) by striking out ``, 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 103(7) of the Lobbying Disclosure Act 
     of 1994)'' after ``an agent of a foreign principal (as 
     defined by section 1(b) of the Foreign Agents Registration 
     Act of 1938)''.

     SEC. 117. SEVERABILITY.

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

     SEC. 118. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated for fiscal years 
     1995, 1996, 1997, 1998, and 1999 such sums as may be 
     necessary to carry out this title.

     SEC. 119. IDENTIFICATION OF CLIENTS AND COVERED OFFICIALS.

       (a) Oral Lobbying Contacts.--Any person or entity that 
     makes an oral lobbying contact with a covered legislative 
     branch official or a covered executive branch official shall, 
     on the request of the official at the time of the lobbying 
     contact--
       (1) state whether the person or entity is registered under 
     this title and identify the client on whose behalf the 
     lobbying contact is made; and
       (2) state whether such client is a foreign entity and 
     identify any foreign entity required to be disclosed under 
     section 104(b)(4) that has a direct interest in the outcome 
     of the lobbying activity.
       (b) Written Lobbying Contacts.--Any person or entity 
     registered under this title that makes a written lobbying 
     contact (including an electronic communication) with a 
     covered legislative branch official or a covered executive 
     branch official shall--
       (1) if the client on whose behalf the lobbying contact was 
     made is a foreign entity, identify such client, state that 
     the client is considered a foreign entity under this title, 
     and state whether the person making the lobbying contact is 
     registered on behalf of that client under section 104; and
       (2) identify any other foreign entity identified pursuant 
     to section 104(b)(4) that has a direct interest in the 
     outcome of the lobbying activity.
       (c) Identification as Covered Official.--Upon request by a 
     person or entity making a lobbying contact, the individual 
     who is contacted or the office employing that individual 
     shall indicate whether or not the individual is a covered 
     legislative branch official or a covered executive branch 
     official.

     SEC. 120. TRANSITIONAL FILING REQUIREMENT.

       (a) Simultaneous Filing.--Subject to subsection (b), each 
     registrant shall transmit simultaneously to the Secretary of 
     the Senate and the Clerk of the House of Representatives an 
     identical copy of each registration and report required to be 
     filed under this title.
       (b) Sunset Provision.--The simultaneous filing requirement 
     under subsection (a) shall be effective until such time as 
     the Director, in consultation with the Secretary of the 
     Senate and the Clerk of the House of Representatives, 
     determines that the Office of Lobbying Registration and 
     Public Disclosure is able to provide computer 
     telecommunication or other transmittal of registrations and 
     reports as required under section 107(b)(11).
       (c) Implementation.--The Director, the Secretary of the 
     Senate, and the Clerk of the House of Representatives shall 
     take such actions as necessary to ensure that the Office of 
     Lobbying Registration and Public Disclosure is able to 
     provide computer telecommunication or other transmittal of 
     registrations and reports as required under section 
     107(b)(11) on the effective date of this title, or as soon 
     thereafter as reasonably practicable.

     SEC. 121. EFFECTIVE DATES AND INTERIM RULES.

       (a) In General.--Except as otherwise provided in this 
     section, this title and the amendments made by this title 
     shall take effect January 1, 1996.
       (b) Effective Date of Gift Prohibition.--Section 106 shall 
     take effect on January 3, 1995. Beginning on that date, and 
     for the remainder of calendar year 1995, such section shall 
     apply to any gift provided by a lobbyist or an agent of a 
     foreign principal registered under the Federal Regulation of 
     Lobbying Act or the Foreign Agents Registration Act, 
     including any person registered under such Acts as of July 1, 
     1994, or thereafter.
       (c) Establishment of Office.--Sections 107 and 118 shall 
     take effect on the date of enactment of this Act.
       (d) Repeals and Amendments.--The repeals and amendments 
     made under sections 113, 114, 115, and 116 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 title 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.
       (e) Regulations.--Proposed regulations required to 
     implement this title shall be published for public comment no 
     later than 270 days after the date of the enactment of this 
     Act. No later than 1 year after the date of the enactment of 
     this Act, final regulations required to implement this title 
     shall be published.
       (f) Phase-In Period.--No penalty shall be assessed by the 
     Director under section 109(e) for a violation of this title, 
     other than for a violation of section 106, which occurs 
     during the first semiannual reporting period under section 
     105 after the effective date prescribed by subsection (a).
       (g) Interim Rules.--
       (1) Reporting rule.--A person or entity that is required to 
     account for lobbying expenditures and does account for 
     lobbying expenditures pursuant to section 162(e) of the 
     Internal Revenue Code of 1986 may make a good faith estimate 
     (by category of dollar value) of the amount that would not be 
     deductible pursuant to that section for the applicable 
     semiannual period to meet the requirements of sections 
     104(a)(3), 105(a)(2), and 105(b)(4), if the person or 
     entity--
       (A) makes such an estimate to meet the requirements of each 
     such section of this title for a given calendar year; and
       (B) informs the Director that the person or entity is 
     making such an estimate in any registration or report 
     including such an estimate.
       (2) De minimus rule.--In determining whether its employees 
     are lobbyists under section 103(12)--
       (A) a person or entity that is required to report and does 
     report lobbying expenditures pursuant to section 6033(b)(8) 
     of the Internal Revenue Code of 1986, and makes an estimate 
     of expenses pursuant to section 105(c)(4) of this title to 
     meet the requirements of sections 104(a)(3), 105(a)(2), 
     105(b)(4), and 105(b)(6) of this title, shall, in lieu of 
     using the definition of ``lobbying activities'' in section 
     103(9) of this title, consider as lobbying activities--
       (i) activities that are influencing legislation as defined 
     in section 4911(d) of the Internal Revenue Code of 1986;
       (ii) activities described in section 4911(d)(2)(C) of the 
     Internal Revenue Code of 1986; and
       (iii) lobbying activities (as defined in section 103(9)) 
     that are in support of a lobbying contact with a covered 
     executive branch official; and
       (B) a person or entity that is required to account for 
     lobbying expenditures and does account for lobbying 
     expenditures pursuant to section 162(e) of the Internal 
     Revenue Code of 1986, and makes an estimate of expenses 
     pursuant to paragraph (1) of this subsection, shall, in lieu 
     of using the definition of ``lobbying activities'' in section 
     103(9), consider as lobbying activities--
       (i) activities that are influencing legislation within the 
     meaning of section 162(e)(1)(A) of the Internal Revenue Code 
     of 1986;
       (ii) activities that are attempts to influence the general 
     public, as described in section 162(e)(1)(C) of the Internal 
     Revenue Code of 1986; and
       (iii) lobbying activities (as defined in section 103(9)) 
     that are in support of a lobbying contact with a covered 
     executive branch official.
       (3) Study.--Not later than March 31, 1997, the Comptroller 
     General of the United States shall review reporting by 
     registrants under paragraph (1) of this section and section 
     105(c)(4) and report to the Congress--
       (A) the differences between the definition of ``lobbying 
     activities'' in section 103(9) and the definitions of 
     ``lobbying expenditures'', ``influencing legislation'', and 
     related terms in sections 162(e) and 4911 of the Internal 
     Revenue Code of 1986, as each are implemented by regulations;
       (B) the impact that any such differences may have on filing 
     and reporting under this title pursuant to this subsection; 
     and
       (C) any changes to this title or to the appropriate 
     sections of the Internal Revenue Code of 1986 that the 
     Comptroller General may recommend to harmonize the 
     definitions.
       (4) Sunset period.--This subsection shall cease to be 
     effective on December 31, 1998.
       (h) Interim director.--Within 30 days after the date of the 
     enactment of this Act, the President shall designate an 
     interim Director of the Office of Lobbying Registration and 
     Public Disclosure, who shall serve at the pleasure of the 
     President until a Director of such Office has been nominated 
     by the President and confirmed by the Senate. The interim 
     Director may not promulgate final regulations pursuant to 
     section 107(d) or initiate procedures for alleged violations 
     pursuant to sections 108 and 109.
                   TITLE II--CONGRESSIONAL GIFT RULES

     SEC. 201. AMENDMENTS TO SENATE RULES.

       Rule XXXV of the Standing Rules of the Senate is amended to 
     read as follows:
       ``1. No Member, officer, or employee of the Senate shall 
     accept a gift, knowing that such gift is provided by a 
     registered lobbyist, a lobbying firm, or an agent of a 
     foreign principal in violation of the Lobbying Disclosure Act 
     of 1994.
       ``2. (a) In addition to the restriction on receiving gifts 
     from registered lobbyists, lobbying firms, and agents of 
     foreign principals provided by paragraph 1 and except as 
     provided in this Rule, no Member, officer, or employee of the 
     Senate shall knowingly accept a gift from any other person.
       ``(b)(1) For the purpose of this Rule, the term `gift' 
     means any gratuity, favor, discount, entertainment, 
     hospitality, loan, forbearance, or other item having monetary 
     value. The term includes gifts of services, training, 
     transportation, lodging, and meals, whether provided in kind, 
     by purchase of a ticket, payment in advance, or reimbursement 
     after the expense has been incurred.
       ``(2) A gift to the spouse or dependent of a Member, 
     officer, or employee (or a gift to any other individual based 
     on that individual's relationship with the Member, officer, 
     or employee) shall be considered a gift to the Member, 
     officer, or employee if it is given with the knowledge and 
     acquiescence of the Member, officer, or employee and the 
     Member, officer, or employee has reason to believe the gift 
     was given because of the official position of the Member, 
     officer, or employee.
       ``(c) The restrictions in subparagraph (a) shall not apply 
     to the following:
       ``(1) Anything for which the Member, officer, or employee 
     pays the market value, or does not use and promptly returns 
     to the donor.
       ``(2) A contribution, as defined in the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 431 et seq.) that is lawfully 
     made under that Act, or attendance at a fundraising event 
     sponsored by a political organization described in section 
     527(e) of the Internal Revenue Code of 1986.
       ``(3) Anything provided by an individual on the basis of a 
     personal or family relationship unless the Member, officer, 
     or employee has reason to believe that, under the 
     circumstances, the gift was provided because of the official 
     position of the Member, officer, or employee and not because 
     of the personal or family relationship. The Select Committee 
     on Ethics shall provide guidance on the applicability of this 
     clause and examples of circumstances under which a gift may 
     be accepted under this exception.
       ``(4) A contribution or other payment to a legal expense 
     fund established for the benefit of a Member, officer, or 
     employee, that is otherwise lawfully made, if the person 
     making the contribution or payment is identified for the 
     Select Committee on Ethics.
       ``(5) Any food or refreshments which the recipient 
     reasonably believes to have a value of less than $20.
       ``(6) Any gift from another Member, officer, or employee of 
     the Senate or the House of Representatives.
       ``(7) Food, refreshments, lodging, and other benefits--
       ``(A) resulting from the outside business or employment 
     activities (or other outside activities that are not 
     connected to the duties of the Member, officer, or employee 
     as an officeholder) of the Member, officer, or employee, or 
     the spouse of the Member, officer, or employee, if such 
     benefits have not been offered or enhanced because of the 
     official position of the Member, officer, or employee and are 
     customarily provided to others in similar circumstances;
       ``(B) customarily provided by a prospective employer in 
     connection with bona fide employment discussions; or
       ``(C) provided by a political organization described in 
     section 527(e) of the Internal Revenue Code of 1986 in 
     connection with a fundraising or campaign event sponsored by 
     such an organization.
       ``(8) Pension and other benefits resulting from continued 
     participation in an employee welfare and benefits plan 
     maintained by a former employer.
       ``(9) Informational materials that are sent to the office 
     of the Member, officer, or employee in the form of books, 
     articles, periodicals, other written materials, audio tapes, 
     videotapes, or other forms of communication.
       ``(10) Awards or prizes which are given to competitors in 
     contests or events open to the public, including random 
     drawings.
       ``(11) Honorary degrees (and associated travel, food, 
     refreshments, and entertainment) and other bona fide, 
     nonmonetary awards presented in recognition of public service 
     (and associated food, refreshments, and entertainment 
     provided in the presentation of such degrees and awards).
       ``(12) Donations of products from the State that the Member 
     represents that are intended primarily for promotional 
     purposes, such as display or free distribution, and are of 
     minimal value to any individual recipient.
       ``(13) Food, refreshments, and entertainment provided to a 
     Member or an employee of a Member in the Member's home State, 
     subject to reasonable limitations, to be established by the 
     Committee on Rules and Administration.
       ``(14) An item of little intrinsic value such as a greeting 
     card, baseball cap, or a T shirt.
       ``(15) Training (including food and refreshments furnished 
     to all attendees as an integral part of the training) 
     provided to a Member, officer, or employee, if such training 
     is in the interest of the Senate.
       ``(16) Bequests, inheritances, and other transfers at 
     death.
       ``(17) Any item, the receipt of which is authorized by the 
     Foreign Gifts and Decorations Act, the Mutual Educational and 
     Cultural Exchange Act, or any other statute.
       ``(18) Anything which is paid for by the Federal 
     Government, by a State or local government, or secured by the 
     Government under a Government contract.
       ``(19) A gift of personal hospitality of an individual, as 
     defined in section 109(14) of the Ethics in Government Act.
       ``(20) Free attendance at a widely attended event permitted 
     pursuant to subparagraph (d).
       ``(21) Opportunities and benefits which are--
       ``(A) available to the public or to a class consisting of 
     all Federal employees, whether or not restricted on the basis 
     of geographic consideration;
       ``(B) offered to members of a group or class in which 
     membership is unrelated to congressional employment;
       ``(C) offered to members of an organization, such as an 
     employees' association or congressional credit union, in 
     which membership is related to congressional employment and 
     similar opportunities are available to large segments of the 
     public through organizations of similar size;
       ``(D) offered to any group or class that is not defined in 
     a manner that specifically discriminates among Government 
     employees on the basis of branch of Government or type of 
     responsibility, or on a basis that favors those of higher 
     rank or rate of pay;
       ``(E) in the form of loans from banks and other financial 
     institutions on terms generally available to the public; or
       ``(F) in the form of reduced membership or other fees for 
     participation in organization activities offered to all 
     Government employees by professional organizations if the 
     only restrictions on membership relate to professional 
     qualifications.
       ``(22) A plaque, trophy, or other memento of modest value.
       ``(23) Anything for which, in an unusual case, a waiver is 
     granted by the Select Committee on Ethics.
       ``(d)(1) Except as prohibited by paragraph 1, a Member, 
     officer, or employee may accept an offer of free attendance 
     at a widely attended convention, conference, symposium, 
     forum, panel discussion, dinner, viewing, reception, or 
     similar event, provided by the sponsor of the event, if--
       ``(A) the Member, officer, or employee participates in the 
     event as a speaker or a panel participant, by presenting 
     information related to Congress or matters before Congress, 
     or by performing a ceremonial function appropriate to the 
     Member's, officer's, or employee's official position; or
       ``(B) attendance at the event is appropriate to the 
     performance of the official duties or representative function 
     of the Member, officer, or employee.
       ``(2) A Member, officer, or employee who attends an event 
     described in clause (1) may accept a sponsor's unsolicited 
     offer of free attendance at the event for an accompanying 
     individual if others in attendance will generally be 
     similarly accompanied or if such attendance is appropriate to 
     assist in the representation of the Senate.
       ``(3) Except as prohibited by paragraph 1, a Member, 
     officer, or employee, or the spouse or dependent thereof, may 
     accept a sponsor's unsolicited offer of free attendance at a 
     charity event, except that reimbursement for transportation 
     and lodging may not be accepted in connection with the event.
       ``(4) For purposes of this paragraph, the term `free 
     attendance' may include waiver of all or part of a conference 
     or other fee, the provision of local transportation, or the 
     provision of food, refreshments, entertainment, and 
     instructional materials furnished to all attendees as an 
     integral part of the event. The term does not include 
     entertainment collateral to the event, or food or 
     refreshments taken other than in a group setting with all or 
     substantially all other attendees.
       ``(e) No Member, officer, or employee may accept a gift the 
     value of which exceeds $250 on the basis of the personal 
     relationship exception in subparagraph (c)(3) or the close 
     personal friendship exception in section 106(d) of the 
     Lobbying Disclosure Act of 1994 unless the Select Committee 
     on Ethics issues a written determination that one of such 
     exceptions applies.
       ``(f)(1) The Committee on Rules and Administration is 
     authorized to adjust the dollar amount referred to in 
     subparagraph (c)(5) on a periodic basis, to the extent 
     necessary to adjust for inflation.
       ``(2) The Select Committee on Ethics shall provide guidance 
     setting forth reasonable steps that may be taken by Members, 
     officers, and employees, with a minimum of paperwork and 
     time, to prevent the acceptance of prohibited gifts from 
     lobbyists.
       ``(3) When it is not practicable to return a tangible item 
     because it is perishable, the item may, at the discretion of 
     the recipient, be given to an appropriate charity or 
     destroyed.
       ``3. (a)(1) Except as prohibited by paragraph 1, a 
     reimbursement (including payment in kind) to a Member, 
     officer, or employee for necessary transportation, lodging 
     and related expenses for travel to a meeting, speaking 
     engagement, factfinding trip or similar event in connection 
     with the duties of the Member, officer, or employee as an 
     officeholder shall be deemed to be a reimbursement to the 
     Senate and not a gift prohibited by this rule, if the Member, 
     officer, or employee--
       ``(A) in the case of an employee, receives advance 
     authorization, from the Member or officer under whose direct 
     supervision the employee works, to accept reimbursement, and
       ``(B) discloses the expenses reimbursed or to be reimbursed 
     and the authorization to the Secretary of the Senate within 
     30 days after the travel is completed.
       ``(2) For purposes of clause (1), events, the activities of 
     which are substantially recreational in nature, shall not be 
     considered to be in connection with the duties of a Member, 
     officer, or employee as an officeholder.
       ``(b) Each advance authorization to accept reimbursement 
     shall be signed by the Member or officer under whose direct 
     supervision the employee works and shall include--
       ``(1) the name of the employee;
       ``(2) the name of the person who will make the 
     reimbursement;
       ``(3) the time, place, and purpose of the travel; and
       ``(4) a determination that the travel is in connection with 
     the duties of the employee as an officeholder and would not 
     create the appearance that the employee is using public 
     office for private gain.
       ``(c) Each disclosure made under subparagraph (a)(1) of 
     expenses reimbursed or to be reimbursed shall be signed by 
     the Member or officer (in the case of travel by that Member 
     or officer) or by the Member or officer under whose direct 
     supervision the employee works (in the case of travel by an 
     employee) and shall include--
       ``(1) a good faith estimate of total transportation 
     expenses reimbursed or to be reimbursed;
       ``(2) a good faith estimate of total lodging expenses 
     reimbursed or to be reimbursed;
       ``(3) a good faith estimate of total meal expenses 
     reimbursed or to be reimbursed;
       ``(4) a good faith estimate of the total of other expenses 
     reimbursed or to be reimbursed;
       ``(5) a determination that all such expenses are necessary 
     transportation, lodging, and related expenses as defined in 
     this paragraph; and
       ``(6) in the case of a reimbursement to a Member or 
     officer, a determination that the travel was in connection 
     with the duties of the Member or officer as an officeholder 
     and would not create the appearance that the Member or 
     officer is using public office for private gain.
       ``(d) For the purposes of this paragraph, the term 
     `necessary transportation, lodging, and related expenses'--
       ``(1) includes reasonable expenses that are necessary for 
     travel for a period not exceeding 3 days exclusive of 
     traveltime within the United States or 7 days exclusive of 
     traveltime outside of the United States unless approved in 
     advance by the Select Committee on Ethics;
       ``(2) is limited to reasonable expenditures for 
     transportation, lodging, conference fees and materials, and 
     food and refreshments, including reimbursement for necessary 
     transportation, whether or not such transportation occurs 
     within the periods described in clause (1);
       ``(3) does not include expenditures for recreational 
     activities, or entertainment other than that provided to all 
     attendees as an integral part of the event; and
       ``(4) may include travel expenses incurred on behalf of 
     either the spouse or a child of the Member, officer, or 
     employee, subject to a determination signed by the Member or 
     officer (or in the case of an employee, the Member or officer 
     under whose direct supervision the employee works) that the 
     attendance of the spouse or child is appropriate to assist in 
     the representation of the Senate.
       ``(e) The Secretary of the Senate shall make available to 
     the public all advance authorizations and disclosures of 
     reimbursement filed pursuant to subparagraph (a) as soon as 
     possible after they are received.''.

     SEC. 202. AMENDMENTS TO HOUSE RULES.

       Clause 4 of rule XLIII of the Rules of the House of 
     Representatives is amended read as follows:
       ``4. (a) No Member, officer, or employee of the House of 
     Representatives shall accept a gift, knowing that such gift 
     is provided directly or indirectly by a registered lobbyist, 
     a lobbying firm, or an agent of a foreign principal in 
     violation of the Lobbying Disclosure Act of 1994.
       ``(b) In addition to the restriction on receiving gifts 
     from registered lobbyists, lobbying firms, and agents of 
     foreign principals provided by paragraph (a) and except as 
     provided in this Rule, no Member, officer, or employee of the 
     House of Representatives shall knowingly accept a gift from 
     any other person.
       ``(c)(1) For the purpose of this clause, the term `gift' 
     means any gratuity, favor, discount, entertainment, 
     hospitality, loan, forbearance, or other item having monetary 
     value. The term includes gifts of services, training, 
     transportation, lodging, and meals, whether provided in kind, 
     by purchase of a ticket, payment in advance, or reimbursement 
     after the expense has been incurred.
       ``(2) A gift to the spouse or dependent of a Member, 
     officer, or employee (or a gift to any other individual based 
     on that individual's relationship with the Member, officer, 
     or employee) shall be considered a gift to the Member, 
     officer, or employee if it is given with the knowledge and 
     acquiescence of the Member, officer, or employee and the 
     Member, officer, or employee has reason to believe the gift 
     was given because of the official position of the Member, 
     officer, or employee.
       ``(d) The restrictions in paragraph (b) shall not apply to 
     the following:
       ``(1) Anything for which the Member, officer, or employee 
     pays the market value, or does not use and promptly returns 
     to the donor.
       ``(2) A contribution, as defined in the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 431 et seq.) that is lawfully 
     made under that Act, or attendance at a fundraising event 
     sponsored by a political organization described in section 
     527(e) of the Internal Revenue Code of 1986.
       ``(3) Anything provided by an individual on the basis of a 
     personal or family relationship unless the Member, officer, 
     or employee has reason to believe that, under the 
     circumstances, the gift was provided because of the official 
     position of the Member, officer, or employee and not because 
     of the personal or family relationship. The Committee on 
     Standards of Official Conduct shall provide guidance on the 
     applicability of this clause and examples of circumstances 
     under which a gift may be accepted under this exception.
       ``(4) A contribution or other payment to a legal expense 
     fund established for the benefit of a Member, officer, or 
     employee, that is otherwise lawfully made, if the person 
     making the contribution or payment is identified for the 
     Committee on Standards of Official Conduct.
       ``(5) Any food or refreshments which the recipient 
     reasonably believes to have a value of less than $20.
       ``(6) Any gift from another Member, officer, or employee of 
     the Senate or the House of Representatives.
       ``(7) Food, refreshments, lodging, and other benefits--
       ``(A) resulting from the outside business or employment 
     activities (or other outside activities that are not 
     connected to the duties of the Member, officer, or employee 
     as an officeholder) of the Member, officer, or employee, or 
     the spouse of the Member, officer, or employee, if such 
     benefits have not been offered or enhanced because of the 
     official position of the Member, officer, or employee and are 
     customarily provided to others in similar circumstances;
       ``(B) customarily provided by a prospective employer in 
     connection with bona fide employment discussions; or
       ``(C) provided by a political organization described in 
     section 527(e) of the Internal Revenue Code of 1986 in 
     connection with a fundraising or campaign event sponsored by 
     such an organization.
       ``(8) Pension and other benefits resulting from continued 
     participation in an employee welfare and benefits plan 
     maintained by a former employer.
       ``(9) Informational materials that are sent to the office 
     of the Member, officer, or employee in the form of books, 
     articles, periodicals, other written materials, audio tapes, 
     videotapes, or other forms of communication.
       ``(10) Awards or prizes which are given to competitors in 
     contests or events open to the public, including random 
     drawings.
       ``(11) Honorary degrees (and associated travel, food, 
     refreshments, and entertainment) and other bona fide, 
     nonmonetary awards presented in recognition of public service 
     (and associated food, refreshments, and entertainment 
     provided in the presentation of such degrees and awards).
       ``(12) Donations of products from the State that the Member 
     represents that are intended primarily for promotional 
     purposes, such as display or free distribution, and are of 
     minimal value to any individual recipient.
       ``(13) Food, refreshments, and entertainment provided to a 
     Member or an employee of a Member in the Member's home State, 
     subject to reasonable limitations, to be established by the 
     Committee on Standards of Official Conduct.
       ``(14) An item of little intrinsic value such as a greeting 
     card, baseball cap, or a T shirt.
       ``(15) Training (including food and refreshments furnished 
     to all attendees as an integral part of the training) 
     provided to a Member, officer, or employee, if such training 
     is in the interest of the House of Representatives.
       ``(16) Bequests, inheritances, and other transfers at 
     death.
       ``(17) Any item, the receipt of which is authorized by the 
     Foreign Gifts and Decorations Act, the Mutual Educational and 
     Cultural Exchange Act, or any other statute.
       ``(18) Anything which is paid for by the Federal 
     Government, by a State or local government, or secured by the 
     Government under a Government contract.
       ``(19) A gift of personal hospitality of an individual, as 
     defined in section 109(14) of the Ethics in Government Act.
       ``(20) Free attendance at a widely attended event permitted 
     pursuant to paragraph (e).
       ``(21) Opportunities and benefits which are--
       ``(A) available to the public or to a class consisting of 
     all Federal employees, whether or not restricted on the basis 
     of geographic consideration;
       ``(B) offered to members of a group or class in which 
     membership is unrelated to congressional employment;
       ``(C) offered to members of an organization, such as an 
     employees' association or congressional credit union, in 
     which membership is related to congressional employment and 
     similar opportunities are available to large segments of the 
     public through organizations of similar size;
       ``(D) offered to any group or class that is not defined in 
     a manner that specifically discriminates among Government 
     employees on the basis of branch of Government or type of 
     responsibility, or on a basis that favors those of higher 
     rank or rate of pay;
       ``(E) in the form of loans from banks and other financial 
     institutions on terms generally available to the public; or
       ``(F) in the form of reduced membership or other fees for 
     participation in organization activities offered to all 
     Government employees by professional organizations if the 
     only restrictions on membership relate to professional 
     qualifications.
       ``(22) A plaque, trophy, or other memento of modest value.
       ``(23) Anything for which, in exceptional circumstances, a 
     waiver is granted by the Committee on Standards of Official 
     Conduct.
       ``(e)(1) Except as prohibited by paragraph (a), a Member, 
     officer, or employee may accept an offer of free attendance 
     at a widely attended convention, conference, symposium, 
     forum, panel discussion, dinner, viewing, reception, or 
     similar event, provided by the sponsor of the event, if--
       ``(A) the Member, officer, or employee participates in the 
     event as a speaker or a panel participant, by presenting 
     information related to Congress or matters before Congress, 
     or by performing a ceremonial function appropriate to the 
     Member's, officer's, or employee's official position; or
       ``(B) attendance at the event is appropriate to the 
     performance of the official duties or representative function 
     of the Member, officer, or employee.
       ``(2) A Member, officer, or employee who attends an event 
     described in subparagraph (1) may accept a sponsor's 
     unsolicited offer of free attendance at the event for an 
     accompanying individual if others in attendance will 
     generally be similarly accompanied or if such attendance is 
     appropriate to assist in the representation of the House of 
     Representatives.
       ``(3) Except as prohibited by paragraph (a), a Member, 
     officer, or employee, or the spouse or dependent thereof, may 
     accept a sponsor's unsolicited offer of free attendance at a 
     charity event, except that reimbursement for transportation 
     and lodging may not be accepted in connection with the event.
       ``(4) For purposes of this paragraph, the term `free 
     attendance' may include waiver of all or part of a conference 
     or other fee, the provision of local transportation, or the 
     provision of food, refreshments, entertainment, and 
     instructional materials furnished to all attendees as an 
     integral part of the event. The term does not include 
     entertainment collateral to the event, or food or 
     refreshments taken other than in a group setting with all or 
     substantially all other attendees.
       ``(f) No Member, officer, or employee may accept a gift the 
     value of which exceeds $250 on the basis of the personal 
     relationship exception in paragraph (d)(3) or the close 
     personal friendship exception in section 106(d) of the 
     Lobbying Disclosure Act of 1994 unless the Committee on 
     Standards of Official Conduct issues a written determination 
     that one of such exceptions applies.
       ``(g)(1) The Committee on Standards of Official Conduct is 
     authorized to adjust the dollar amount referred to in 
     paragraph (c)(5) on a periodic basis, to the extent necessary 
     to adjust for inflation.
       ``(2) The Committee on Standards of Official Conduct shall 
     provide guidance setting forth reasonable steps that may be 
     taken by Members, officers, and employees, with a minimum of 
     paperwork and time, to prevent the acceptance of prohibited 
     gifts from lobbyists.
       ``(3) When it is not practicable to return a tangible item 
     because it is perishable, the item may, at the discretion of 
     the recipient, be given to an appropriate charity or 
     destroyed.
       ``(h)(1)(A) Except as prohibited by paragraph (a), a 
     reimbursement (including payment in kind) to a Member, 
     officer, or employee for necessary transportation, lodging 
     and related expenses for travel to a meeting, speaking 
     engagement, factfinding trip or similar event in connection 
     with the duties of the Member, officer, or employee as an 
     officeholder shall be deemed to be a reimbursement to the 
     House of Representatives and not a gift prohibited by this 
     paragraph, if the Member, officer, or employee--
       ``(i) in the case of an employee, receives advance 
     authorization, from the Member or officer under whose direct 
     supervision the employee works, to accept reimbursement, and
       ``(ii) discloses the expenses reimbursed or to be 
     reimbursed and the authorization to the Clerk of the House of 
     Representatives within 30 days after the travel is completed.
       ``(B) For purposes of clause (A), events, the activities of 
     which are substantially recreational in nature, shall not be 
     considered to be in connection with the duties of a Member, 
     officer, or employee as an officeholder.
       ``(2) Each advance authorization to accept reimbursement 
     shall be signed by the Member or officer under whose direct 
     supervision the employee works and shall include--
       ``(A) the name of the employee;
       ``(B) the name of the person who will make the 
     reimbursement;
       ``(C) the time, place, and purpose of the travel; and
       ``(D) a determination that the travel is in connection with 
     the duties of the employee as an officeholder and would not 
     create the appearance that the employee is using public 
     office for private gain.
       ``(3) Each disclosure made under subparagraph (1)(A) of 
     expenses reimbursed or to be reimbursed shall be signed by 
     the Member or officer (in the case of travel by that Member 
     or officer) or by the Member or officer under whose direct 
     supervision the employee works (in the case of travel by an 
     employee) and shall include--
       ``(A) a good faith estimate of total transportation 
     expenses reimbursed or to be reimbursed;
       ``(B) a good faith estimate of total lodging expenses 
     reimbursed or to be reimbursed;
       ``(C) a good faith estimate of total meal expenses 
     reimbursed or to be reimbursed;
       ``(D) a good faith estimate of the total of other expenses 
     reimbursed or to be reimbursed;
       ``(E) a determination that all such expenses are necessary 
     transportation, lodging, and related expenses as defined in 
     this paragraph; and
       ``(F) in the case of a reimbursement to a Member or 
     officer, a determination that the travel was in connection 
     with the duties of the Member or officer as an officeholder 
     and would not create the appearance that the Member or 
     officer is using public office for private gain.
       ``(4) For the purposes of this paragraph, the term 
     `necessary transportation, lodging, and related expenses'--
       ``(A) includes reasonable expenses that are necessary for 
     travel--
       ``(i) for a period not exceeding 4 days including travel 
     time within the United States or 7 days in addition to travel 
     time outside the United States; and
       ``(ii) within 24 hours before or after participation in an 
     event in the United States or within 48 hours before or after 
     participation in an event outside the United States,

     unless approved in advance by the Committee on Standards of 
     Official Conduct;
       ``(B) is limited to reasonable expenditures for 
     transportation, lodging, conference fees and materials, and 
     food and refreshments, including reimbursement for necessary 
     transportation, whether or not such transportation occurs 
     within the periods described in clause (A);
       ``(C) does not include expenditures for recreational 
     activities or entertainment other than that provided to all 
     attendees as an integral part of the event; and
       ``(D) may include travel expenses incurred on behalf of 
     either the spouse or a child of the Member, officer, or 
     employee, subject to a determination signed by the Member or 
     officer (or in the case of an employee, the Member or officer 
     under whose direct supervision the officer or employee works) 
     that the attendance of the spouse or child is appropriate to 
     assist in the representation of the House of Representatives.
       ``(5) The Clerk of the House of Representatives shall make 
     available to the public all advance authorizations and 
     disclosures of reimbursement filed pursuant to subparagraph 
     (1) as soon as possible after they are received.''.

     SEC. 203. MISCELLANEOUS PROVISIONS.

       (a) Amendments to the Ethics in Government Act.--Section 
     102(a)(2)(B) of the Ethics in Government Act (5 U.S.C. 102, 
     App. 6) is amended by adding at the end thereof the 
     following: ``Reimbursements accepted by a Federal agency 
     pursuant to section 1353 of title 31, United States Code, or 
     deemed accepted by the Senate or the House of Representatives 
     pursuant to Rule XXXV of the Standing Rules of the Senate or 
     clause 4 of Rule XLIII of the Rules of the House of 
     Representatives shall be reported as required by such statute 
     or rule and need not be reported under this section.''.
       (b) Repeal of Obsolete Provision.--Section 901 of the 
     Ethics Reform Act of 1989 (2 U.S.C. 31-2) is repealed.
       (c) Senate Provisions.--
       (1) Authority of the committee on rules and 
     administration.--The Senate Committee on Rules and 
     Administration, on behalf of the Senate, may accept gifts 
     provided they do not involve any duty, burden, or condition, 
     or are not made dependent upon some future performance by the 
     United States. The Committee on Rules and Administration is 
     authorized to promulgate regulations to carry out this 
     section.
       (2) Food, refreshments, and entertainment.--The rules on 
     acceptance of food, refreshments, and entertainment provided 
     to a Member of the Senate or an employee of such a Member in 
     the Member's home State before the adoption of reasonable 
     limitations by the Committee on Rules and Administration 
     shall be the rules in effect on the day before the effective 
     date of this title.
       (d) House Provision.--The rules on acceptance of food, 
     refreshments, and entertainment provided to a Member of the 
     House of Representatives or an employee of such a Member in 
     the Member's home State before the adoption of reasonable 
     limitations by the Committee on Standards of Official Conduct 
     shall be the rules in effect on the day before the effective 
     date of this title.

     SEC. 204. EXERCISE OF CONGRESSIONAL RULEMAKING POWERS.

       Sections 201, 202, 203(c), and 203(d) of this title are 
     enacted by Congress--
       (1) as an exercise of the rulemaking power of the Senate 
     and the House of Representatives, respectively, and pursuant 
     to section 7353(b)(1) of title 5, United States Code, and 
     accordingly, they shall be considered as part of the rules of 
     each House, respectively, or of the House to which they 
     specifically apply, and such rules shall supersede other 
     rules only to the extent that they are inconsistent 
     therewith; and
       (2) with full recognition of the constitutional right of 
     either House to change such rules (insofar as they relate to 
     that House) at any time and in the same manner and to the 
     same extent as in the case of any other rule of that House.

     SEC. 205. EFFECTIVE DATE.

       This title and the amendments made by this title shall take 
     effect on May 31, 1995.
       And the House agree to the same.
     John Bryan,
     Dan Glickman,
     Mike Synar,
                                Managers on the Part of the House.

     John Glenn,
     Carl Levin,
     Daniel K. Akaka,
     Bill Cohen,
     Ted Stevens,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the House to the bill (S. 349), to provide for 
     the disclosure of lobbying activities to influence the 
     Federal Government, and for other purposes, submit the 
     following joint statement to the House and the Senate in 
     explanation of the effect of the action agreed upon by the 
     managers and recommended in the accompanying conference 
     report:
       The House amendment struck all of the Senate bill after the 
     enacting clause and inserted a substitute text.
       The Senate recedes from its disagreement to the amendment 
     of the House with an amendment that is a substitute for the 
     Senate bill and the House amendment. The differences between 
     the Senate bill, the House amendment, and the substitute 
     agreed to in conference are noted below, except for clerical 
     corrections, conforming changes made necessary by agreements 
     reached by the conferees, and minor drafting and clerical 
     changes.
       The House amendment to the text of S. 349 struck out all of 
     the Senate bill after the enacting clause and inserted a 
     substitute text. The Senate recedes from its disagreement to 
     the amendment of the House with a further amendment which is 
     a substitute for the Senate bill and the House amendment. The 
     differences between the Senate bill, House amendment, and 
     substitute agreed to in conference are noted below, except 
     for clerical corrections, structural changes, conforming 
     changes made necessary by agreements reached by the 
     conferees, and minor drafting and clarifying changes.

                     TITLE I.--LOBBYING DISCLOSURE

       Section 101. Short Title.--Section 1 of the Senate bill and 
     the House amendment contain the short title of the bill. 
     Section 101 of the conference amendment would provide that 
     Title I of the bill may be referred to as the ``Lobbying 
     Disclosure Act of 1994''.
       Section 102. Findings.--Section 2 of the Senate bill 
     contains a statement of findings and purpose for the 
     legislation. Section 2 of the House amendment would retain 
     the statement of findings from the Senate bill, but delete 
     the statement of purpose. The conference amendment would 
     adopt the House provision.
       Section 103. Definitions.--Section 3 of the Senate bill and 
     the House amendment contain definitions of key terms used in 
     the bill. Section 103 of the conference amendment would 
     resolve the differences between the Senate bill and the House 
     amendment as follows.
       Section 103(1): Definition of ``Agency''.--Section 3(1) of 
     the Senate bill and the House amendment would define the term 
     ``agency'' to have the meaning given that term in Title 5 of 
     the U.S. Code. The conferees agree to this provision.
       Section 103(2): Definition of ``Client''.--The Senate bill 
     would define the term ``client'' to mean any person who 
     employs or retains another person for financial or other 
     compensation to conduct lobbying activities on its own 
     behalf. The House amendment contains a similar definition, 
     which differs from the Senate bill in that it would: (1) 
     expressly include entities such as State and local 
     governments in the definition of the term; (2) include a 
     person who pays a lobbyist to conduct lobbying activities on 
     behalf of another person; and (3) provide that, in the case 
     where a coalition or association employs or retains a 
     lobbyist, the client is (a) the coalition or association if 
     the lobbying is conducted on behalf of the membership 
     generally and paid for out of general dues or assessments; 
     and (b) an individual member or members, if the lobbying is 
     financed separately by such member or members.
       On the first issue, the conference amendment would 
     expressly include State and local governments in the 
     definition of clients. This would be done through a new 
     definition of the term ``person or entity'' in section 
     103(16), which would include State and local governments. 
     This means that when a State or local government employs or 
     retains an outside lobbyist or lobbying firm, the outside 
     lobbyist or lobbying firm would be required to register. 
     Officers or employees of a State or local government who 
     engage in lobbying activities on behalf of that government in 
     their official capacity would remain exempt from coverage 
     under the public official exception in section 103(10(B)(1) 
     of the bill.
       On the second issue, the conference amendment would adopt 
     the Senate approach, with a clarifying amendment. As under 
     the Senate bill, a separate provision (section 104(b)(5)) 
     would require registrants to disclose the identity of a third 
     party who pays for lobbying activities on behalf of the 
     client, but such a third party would not be included in the 
     definition of the term ``client.'' Unlike the Senate bill, 
     this disclosure requirement would apply to both in-house 
     lobbyists and lobbying firms.
       On the third issue, the conference amendment would adopt 
     the House approach, with an amendment clarifying that the 
     client would be a member or members of a coalition or 
     association if the lobbying is conducted on behalf of and 
     paid for by just a few members. This provision should prevent 
     the use of coalitions or associations as fronts for lobbying 
     that is really conducted on behalf of and paid for by just a 
     few of their members.
       Section 103(3): Definition of ``Covered Executive Branch 
     Official''.--The Senate bill would define the term ``covered 
     executive branch official'' to include, the President and 
     Vice President; any officer or employee in the Executive 
     Office of the President; any officer or employee serving in 
     an Executive level position or in the Senior Executive 
     Service; any member of the uniformed services as a pay grade 
     of 0-7 or higher; and any Schedule C employee. The House 
     amendment contains a similar definition, which differs from 
     the Senate bill in that it would: (1) include the President-
     elect and the Vice President-elect in the definition; (2) 
     include ``any individual functioning in the capacity of 
     officer or employee or an unpaid basis''; and (3) clarify 
     that the term ``covered legislative branch official'' would 
     include all Schedule C employees.
       The conference amendment would adopt a compromise approach. 
     On the first point the conference amendment would not include 
     the President-elect or the Vice President-elect in the 
     definition.
       On the second point, the conference amendment would include 
     in the definition of covered executive branch officials any 
     officer or employee in the Executive Office of the President 
     and any other individual functioning in the capacity of such 
     an officer or employee. This term would include a special 
     government employee and any other individual (including the 
     spouse of an elected official) who is retained, designated, 
     appointed or employed to perform duties like those of an 
     employee without compensation.
       On the third point, the conference amendment would adopt a 
     compromise approach. The phrase ``position of a confidential, 
     policy-determing, policy-making, or policy-advocating 
     character'' includes Schedule C employees. Positions 
     described in section 7511(b)(2) of title 5 include, among 
     others, Schedule C employees. It is the intent of the 
     conferees that all Schedule C employees be included in the 
     definition of ``covered executive branch officials''.
       Section 103(4): Definition of ``Covered Legislative Branch 
     Official''.--The Senate bill would define the term ``covered 
     legislative branch official'' to include Members, officers 
     and employees of the House, the Senate, and joint Committees 
     of the House and Senate. The House amendment contains a 
     similar definition, which differed from the Senate bill in 
     that it would include: (1) Members-elect of the Congress; (2) 
     employees of any working group or caucus organized to provide 
     legislative services to Members of Congress; and (3) ``any 
     individual funtioning in the capacity of an employee'' of 
     Congress on an unpaid basis.
       The conference amendment would adopt a compromise approach. 
     On the first point the conference amendment would not include 
     Members-elect in the definition.
       On the second point, the conference amendment would adopt 
     the House language covering employees of a working group or 
     caucus. This provision would cover any employee of an 
     official congressional working group or caucus whose salary 
     is paid out of legislative branch funds.
       On the third point, the conference amendment would include 
     in the definition of covered legislative branch officials any 
     employee of the Congress and any other individual functioning 
     in the capacity of such an employee. The term would include 
     any individual (including the spouse of an elected official) 
     who is retained, designated, appointed or employed to perform 
     duties like those of an employee with or without 
     compensation.
       Section 103(5): Definition of ``Director''.--The Senate 
     bill and the House amendment would define the term 
     ``director'' to mean the Director of the Office of Lobbying 
     Registration and Public Disclosure. The conferees agree to 
     this provision.
       Section 103(6): Definition of ``Employee''.--The Senate 
     bill would define the term employee broadly to include any 
     individual who is an officer, employee, partner, director, or 
     proprietor of a person or entity. The definition would 
     expressly exclude independent contractors and other agents 
     who are not regular employees and volunteers who receive no 
     financial compensation. The House amendment differs from the 
     Senate bill in that: (1) it would include persons acting in 
     the capacity of government employees in the definition of the 
     term; and (2) it would not include any reference to ``other 
     agents who are not regular employees''.
       On the first point, the conference amendment would adopt 
     the Senate language. The conferees determined that the House 
     language is unnecessary because persons acting in the 
     capacity of government employees would be specifically 
     included in the definitions of covered legislative branch 
     officials and covered executive branch officials under 
     sections 103(3) and 103(4).
       On the second point, the conference amendment would adopt 
     the House language. The conferees concluded that the phrase 
     ``agents who are not regular employees'' is unnecessary, as 
     such individuals would be covered by the exclusion of 
     independent contractors.
       Section 103(7): Definition of ``Foreign Entity''.--The 
     Senate bill would define a foreign entity in the same terms 
     currently used in the Foreign Agents Registration Act to 
     define the term ``foreign principal''. The House amendment 
     would directly cross-reference the definition of ``foreign 
     principal'' in the Foreign Agents Registration Act, without 
     repeating the language of that Act. The conference amendment 
     would adopt the House language.
       Section 103(8): Definition of ``Grass Roots Lobbying 
     Communications''.--The Senate bill refers to grass roots 
     lobbying communications ``as defined under section 
     4911(d)(1)(A) and (d)(3) of the Internal Revenue Code of 1986 
     and the regulations implementing such provisions'', but 
     contains no separate definition of the term. The House 
     amendment would define ``grass roots lobbying 
     communications'' to include communications that attempt to 
     influence legislation through communications with the general 
     public; communications between organizations and their 
     members with an intent to influence such members to contact 
     public officials on matters of public policy; and 
     communications between organizations and their members with 
     an intent to encourage such members to urge other persons to 
     attempt to influence legislation.
       The conference amendment would adopt the House definition 
     of the term ``grass roots lobbying communications'' with a 
     further amendment to clarify that the definition includes 
     communications intended to influence executive branch 
     officials and executive branch actions in addition to 
     communications intended to influence legislative branch 
     officials and legislative branch actions. Nothing in the 
     conference amendment would require a person or entity to 
     register as a lobbyist because the person or entity engages 
     in grass roots lobbying communications, unless the person or 
     entity also makes one or more lobbying contacts and otherwise 
     qualifies as a ``lobbyist''.
       The term ``bona fide member'' of an organization, as used 
     in this paragraph, would have the same scope that term is 
     given in the related contexts covered by section 4911 of the 
     Internal Revenue Code (see C.F.R. 56.4911-5(f)) and by the 
     Federal Election Campaign Act (see 11 C.F.R. 114.1(e)). In 
     particular, the term is intended to include any person who: 
     (a) pays dues or makes more than a nominal contribution to 
     the organization; (b) contributes more than a nominal amount 
     of time to the organization; (c) is one of a limited number 
     of ``honorary'' or ``life'' members of an organization; or 
     (d) is a member of another organization that is an affiliate 
     of the organization (for example, members of the local 
     chapter of an organization may be considered to be members of 
     the national or international organization of which the local 
     organization is a chapter).
       Section 103(9): Definition of ``Lobbying Activities''.--The 
     Senate bill would define the term ``lobbying activities'' to 
     mean 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. The Senate bill would expressly include grass roots 
     lobbying communications in the definition of lobbying 
     activities. The House amendment contained a similar 
     definition, which differed from the Senate bill in that it 
     would: (1) clarify that research and other background work is 
     included in the definition of lobbying activities only if 
     intended at the time of its preparation for use in a lobbying 
     contact; (2) provide a specific list of activities which are 
     excluded from the definition of ``lobbying contact'', but may 
     be lobbying activities, if performed in support of a lobbying 
     contact; and (3) provide that grass roots lobbying 
     communications by churches, their integrated auxiliaries, 
     conventions or associations of churches, and religious orders 
     are exempt from the definition of lobbying activities.
       On the first issue, the conference amendment would adopt 
     the House language, clarifying that research and other 
     background work is included in the definition of lobbying 
     activities only if it is intended for use in a lobbying 
     contact at the time of its preparation.
       On the second issue, the House amendment would provide a 
     specific list of activities which are excluded from the 
     definition of a ``lobbying contact'', but would be a lobbying 
     activity, if performed in support of a lobbying contact. It 
     is the intent of the conferees that such communications be 
     considered to be lobbying activities. For this reason, the 
     conference amendment would provide that communications in 
     support of a lobbying contact are included as lobbying 
     activities, even if those communications are of a type 
     expressly excluded from the definition of ``lobbying 
     contact''. As provided in the House bill, such communications 
     would include the following, if they are made in support of a 
     lobbying contact:
       A communication made in a speech, article, publication or 
     other material which is widely distributed to the public or 
     through the media (section 103(10)(b)(iii));
       A request for a meeting, a request for the status of an 
     action, and any other similar administrative request (section 
     103(10)(b)(v));
       Congressional testimony (section 103(10)(b)(vii)); and
       Information provided in writing in response to a written 
     request for specific information (section 103(10)(b)(viii)).
       Other types of communications that are expressly excluded 
     from the definition of lobbying contacts would also be 
     lobbying activities if they are made in support of a lobbying 
     contact. For example, if a person makes a lobbying contact by 
     seeking private relief legislation on behalf of an 
     individual, communications in support of that effort would be 
     considered to be lobbying activities, even if they otherwise 
     would be excluded from the definition of lobbying contacts 
     because they pertain to benefits for an individual.
       On the third issue, the conference amendment would adopt 
     the House language with a further amendment clarifying that 
     grass roots lobbying communications of churches are included 
     in the definition of lobbying activities if they are 
     conducted by an outside lobbyist, outside lobbying firm, or 
     other outside firm making grass roots lobbying communications 
     on behalf of a church. The exemption for grass roots lobbying 
     communications is intended to avoid excessive regulatory 
     entanglement in the internal affairs of churches; for this 
     reason, the exemption would extend only to officers and 
     employees of such churches and not to outside lobbyists who 
     may be engaged to represent the interests of churches.
       The exemption for grass roots lobbying communications would 
     apply only to churches, their integrated auxiliaries, 
     conventions or associations of churches, and religious orders 
     that are exempt from filing a Federal income tax return under 
     paragraph 2(a)(i) or 2(a)(iii) of section 6033(a) of the 
     Internal Revenue Code of 1986. The conferees intend for 
     ``integrated auxiliaries'' to include ``internally supported 
     church organizations'', as more fully described in the 
     Internal Revenue Service's Rev. Proc. 86-23, 1986-1 C.B. 564.
       Section 103(10): Definition of ``Lobbying Contact''.--The 
     Senate bill would define the term ``lobbying contact'' to 
     mean any oral or written communication with a covered 
     legislative or executive branch official that is made on 
     behalf of a client with regard to matters of public policy. 
     The Senate bill contains sixteen listed exclusions from this 
     definition.
       The House amendment contains a similar definition, which 
     differs from the Senate bill in that it would: (1) expressly 
     include in the definition of lobbying contact lobbying on the 
     nomination or confirmation of a person subject to 
     confirmation by the Senate; (2) modify the exclusion for 
     contacts that are disclosed under the Foreign Agents 
     Registration Act; (3) clarify the exclusion for a 
     communication made with regard to judicial proceedings and 
     filings that are specifically required by statute or 
     regulation to be maintained or conducted on a confidential 
     basis; (4) clarify that a contact with regard to private 
     relief legislation is considered to be a lobbying contact; 
     (5) use a different formulation to refer to contacts on 
     routine administrative matters that are exempt from the 
     definition of lobbying contacts; and (6) modify the Senate 
     provision excluding ``a formal petition for agency action'' 
     from the definition of lobbying contacts, by dropping the 
     word ``formal''.
       On the first point, the conference amendment would adopt 
     the House language expressly including lobbying on 
     nominations and confirmations.
       On the second point, the conference amendment would adopt 
     the House language modifying the exclusion for contacts on 
     behalf of foreign governments or political parties that are 
     disclosed under FARA.
       On the third point, the conference amendment would also 
     adopt the House language. The conferees do not intend to 
     interfere with the conduct of judicial proceedings or civil 
     or criminal law enforcement matters, or to require the 
     disclosure of communications regarding filings or proceedings 
     that are required by law or regulation to be conducted by the 
     government on a confidential basis. For this reason, the 
     conference amendment would not require disclosure of 
     communications regarding such proceedings, filings, or 
     matters (whether made by an attorney or by anybody else), as 
     long as there is no effort to lobby officials outside the 
     agency responsible for handling the matter. While this 
     exemption would cover many agency proceedings in which 
     private parties are customarily represented by attorneys, it 
     would not cover all such proceedings (only those which are 
     required by law or regulation to be conducted by the 
     government on a confidential basis), nor would it make any 
     distinction between attorneys and non-attorneys.
       The conferees intend that the Office of Lobbying 
     Registration and Public Disclosure should develop and include 
     in implementing regulations a list of specific types of 
     filings and proceedings that fall into this category, with 
     specific citation to the statute or regulation that requires 
     confidentiality. In developing this list, the Director should 
     consider the views of the American Bar Association and other 
     interested parties.
       On the fourth point, the conference amendment would adopt a 
     compromise approach, providing that a contact with regard to 
     private relief legislation is considered to be a lobbying 
     contact, unless such contact is made to the individual's own 
     elected Members of Congress or employees who work under such 
     Members' direct supervision. For the purpose of this 
     provision, an individual's elected Members of Congress would 
     be the two Senators representing the State and the Member of 
     the House of Representatives representing the congressional 
     district in which the individual resides.
       On the fifth point, the conference amendment would exclude 
     from the definition of lobbying contacts requests for 
     meetings, requests for status of an action, or other similar 
     administrative requests, as long as there is no attempt to 
     influence a covered official. The phrase ``other similar 
     administrative requests'', as used in this paragraph, means 
     routine requests, such as requests for transcripts or hearing 
     records, requests for copies of forms or regulations, 
     requests for a room number or the location of an event, and 
     requests for the time and place of a public meeting.
       On the sixth point, the conference amendment would adopt a 
     compromise approach, excluding from the definition of 
     lobbying contacts a petition for agency action that is made 
     in writing and required to be a matter of public record 
     pursuant to established agency procedures. Under this 
     provision, applicable agency procedures must require both 
     that the petition be made in writing and that it be a matter 
     of public record. For the purpose of this provision, a 
     document would be ``a matter of public record'' if it is 
     maintained in a public docket or other files open to the 
     public. A document would not be ``a matter of public record'' 
     merely because it may be subject to disclosure under the 
     Freedom of Information Act.
       In addition, the House amendment contains two exclusions to 
     the definition of lobbying contact which are not included in 
     the Senate bill:
       An exclusion for a contact by a church, its integrated 
     auxiliaries, a convention or association of churches, or a 
     religious order, if the contact constitutes the free exercise 
     of religion or is for the purpose of protecting the right to 
     the free exercise of religion; and
       An exclusion for contacts between officials of self-
     regulatory organizations and the responsible Federal 
     regulatory agency, which would apply to contacts relating to 
     the regulatory responsibilities of the organization.
       The conference amendment would adopt the House provisions, 
     with minor modifications to clarify the language of the House 
     amendment. The conferees understand that the two new 
     exclusions adopted from the House bill would apply only to 
     contacts by officers and employees; neither exclusion would 
     apply to contacts that may be made by outside lobbyists or 
     lobbying firms. Outside lobbyists and lobbying firms would be 
     required to register in connection with such contacts in the 
     same manner as they register in connection with contacts that 
     are made on behalf of other clients.
       The exclusion for certain communications by a church, its 
     integrated auxiliary, or a convention or association of 
     churches would apply only to such an organization that is 
     exempt from filing a Federal income tax return under 
     paragraph 2(a)(i) of section 6033(a) of the Internal Revenue 
     Code of 1986. The conferees intend for an ``integrated 
     auxiliary'' to include ``internally supported church 
     organizations'' as more fully described in the Internal 
     Revenue Service's Rev. Proc. 86-23, 1986-1 C.B. 564. The 
     exclusion for certain communications by a religious order 
     would apply only to a religious order that is exempt from 
     filing a Federal income tax return under paragraph 2(a)(iii) 
     of section 6033(a) of the Internal Revenue Code of 1986.
       The self-regulatory organizations covered by the second 
     exemption would be those recognized by the Securities and 
     Exchange Commission. These are the American Stock Exchange, 
     the Boston Stock Exchange, the Chicago Board Options 
     Exchange, the Chicago Stock Exchange, the Pacific Stock 
     Exchange, the Philadelphia Stock Exchange, the National 
     Association of Securities Dealers, the Boston Stock Exchange 
     Clearing Corporation, the Delta Government Options 
     Corporation, the Depository Trust Corporation, the Government 
     Securities Clearing Corporation, the Intermarket Clearing 
     Corporation, the International Securities Clearing 
     Corporation, the MBS Clearing Corporation, the Midwest 
     Clearing Corporation, the Midwest Securities Trust 
     Corporation, the National Securities Clearing Corporation, 
     the Pacific Clearing Corporation, the Pacific Securities 
     Trust Company, the Participants Trust Company, the 
     Philadelphia Depository Trust Company, the Stock Clearing 
     Corporation of Philadelphia, and the Municipal Securities 
     Rulemaking Board.
       Under the conference amendment, these organizations would 
     not be required to register in connection with communications 
     made by their employees to officials of the Security and 
     Exchange Commission, with respect to the self-regulatory 
     duties and responsibilities of the organizations. 
     Communications with other agencies or with Congress, and 
     communications with the SEC with regard to other matters, 
     would require registration to the extent that the other 
     provisions of the bill apply.
       Section 103(11): Definition of ``Lobbying Firm''.--The 
     Senate bill would place certain requirements on a registrant 
     that engages in lobbying activities on behalf of a client 
     other than the registrant. The House amendment contains 
     similar requirements. However, neither the Senate bill nor 
     the House amendment would provide a name for such an entity. 
     The conference amendment would clarify the bill by defining 
     such an entity as a ``lobbying firm''. Under the conference 
     amendment, any entity that has one or more employees who are 
     lobbyists on behalf of a client other than that person or 
     entity would be a lobbying firm. A self-employed individual 
     who is a lobbyist would also be a lobbying firm.
       Section 103(12): Definition of ``Lobbyist''.--The Senate 
     bill would define the term ``lobbyist'' to mean any 
     individual who is employed or retained by a client 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. The Senate report explains that, as a rule of 
     thumb, ``any individual whose lobbying activities constitute 
     less than 10% of the services he or she provides to his or 
     her client is engaged only in incidental and insignificant 
     lobbying activities and would not be covered by the bill.'' 
     The House amendment would expressly exclude any individual 
     whose lobbying activities ``constitute less than 10 percent 
     of the time engaged in the services provided by such 
     individual to that client.''
       The conference amendment would adopt the House language, 
     with a further amendment (in section 120(f)), providing that 
     organizations reporting lobbying expenditures to the Internal 
     Revenue Code under 26 U.S.C. may use the accounting systems 
     set up to comply with IRS regulations to determine whether 
     the 10% threshold has been met. Under this provision, the 10% 
     test would work on a client-by-client basis. The percentage 
     to be used in the test would be the amount of time an 
     individual spends on lobbying activities for a client, as a 
     percentage of the total amount of time the individual spends 
     working for that same client.
       The conferees intend that the 10% test, like the other 
     standards in the bill, may be met on the basis of a good 
     faith estimate. However, potential registrants should use the 
     best information available to them in making a determination 
     whether the 10% test is met. For example, individuals who are 
     required to keep time records for tax, billing, or other 
     purposes should rely upon those records in making their 
     estimates.
       The conferees note that this definition would cover only 
     lobbying contacts that are ``made on behalf of a client''. It 
     would not cover lobbying contacts of an individual acting on 
     the individual's own behalf. For this reason, the bill would 
     have no applicability to an employee of an educational 
     institution, such as a faculty member, who tries to influence 
     government decisions by expressing his or her own personal 
     opinions about an issue of public policy. Like any other 
     individual who chooses to express his or her own personal 
     views to government officials, the faculty member would not 
     be included in the definition of the term ``lobbyist''. The 
     only case in which faculty lobbying would be covered is where 
     the faculty member acts on behalf of the institution--for 
     example, by seeking to obtain increased federal funding or 
     other special treatment for the institution.
       Section 103(13): Definition of ``Media Organization''.--The 
     Senate report states that the term ``media organization'' was 
     intended to have the same meaning as the term 
     ``representative of the news media'' in the Administrative 
     Procedure Act. However, the Senate bill does not contain a 
     definition of the term. The House amendment includes such a 
     definition as a subparagraph in the definition of the term 
     ``lobbying contract''. The conference amendment would adopt 
     the House definition as a free-standing provision.
       Section 103(14): Definition of ``Member of Congress''.--The 
     House amendment includes a definition of the term ``Member of 
     Congress'' as a subparagraph in the definition of the term 
     ``covered legislative branch official''. The conference 
     amendment would adopt the House definition as a free-standing 
     provision.
       Section 103(15): Definition of ``Organization''.--The 
     Senate bill would define the term ``organization'' to mean 
     any corporation (excluding a government corporation), 
     company, foundation, association, labor organization, firm, 
     partnership, society, joint stock company, or group of 
     organizations, excluding Federal, State and local 
     governments. The House amendment contains a similar 
     definition, but would not exclude government corporations or 
     Federal, State and local governments. Neither the Senate bill 
     nor the House amendment contains a definition of the term 
     ``person or entity''.
       The conference amendment would clarify the language of both 
     the Senate bill and the House amendment by including a new 
     definition of the term ``person or entity''. The term 
     ``organization'' would be defined as any person or entity 
     other than an individual.
       Section 103(16): Definition of ``Person or Entity''.--
     Section 103(16) would add a new definition of the term 
     ``person or entity''. The term person or entity would mean 
     any individual, corporation, company, foundation, 
     association, labor organization, firm, partnership, society, 
     joint stock company, group of organizations, or State or 
     local government. The inclusion of State and local 
     governments in the definition in the term ``person or 
     entity'' would mean that although public officials acting in 
     their official capacity are exempt from registration as 
     lobbyists, State and local governments may be clients. 
     Consequently, outside lobbyists and lobbying firms 
     representing such entities would be required to register in 
     connection with such representation.
       Section 103(17): Definition of ``Public Official''. The 
     Senate bill would define the term ``public official'' to mean 
     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), an organization of State or 
     local elected officials, an Indian tribe, a national or State 
     political party, or a national, regional or local unit of a 
     foreign government. The House amendment contains a similar 
     definition, which differs from the Senate bill in that it 
     would expressly exclude employees of government-sponsored 
     enterprises and public utilities that provide gas, 
     electricity, water, or communications from the definition of 
     public officials. The term ``public official'' would also 
     include an elected or appointed official who is a regular 
     employee of a public entity formed by two or more federal, 
     state, or local units of government (other than units of 
     government described in clause (i), (ii), (iii), (iv), or (v) 
     of paragraph (A)).
       The conference amendment would adopt the House language, 
     with a further amendment clarifying that employees of state 
     student loan secondary markets and guaranty agencies, like 
     employees of GSE's and public utilities, are excluded from 
     the definition of public officials and would be required to 
     register in connection with their lobbying activities (if 
     they meet the other tests in the bill).
       Section 104. Registration of Lobbyists.--Section 4 of the 
     Senate bill and the House amendment contain requirements for 
     the registration of lobbyists. Section 104 of the conference 
     amendment would resolve the differences between the Senate 
     bill and the House amendment as follows.
       Section 104(a): Requirement to Register.--Section 4(a) of 
     the Senate bill would require lobbyists to register within 30 
     days after making a lobbying contact or agreeing to make a 
     lobbying contact. (A separate provision of the Senate bill, 
     section 4(c)(2), would require organizations employing 
     lobbyists to register on behalf of the lobbyists that they 
     employ). This section would exclude from the registration 
     requirement any organization whose total lobbying expenses 
     did not exceed $1,000 in a semi-annual period on behalf of a 
     particular client, or $5,000 in a semi-annual period on 
     behalf of all clients, and would provide for inflation 
     adjustments to be made to these dollar amounts every five 
     years.
       Section 4(a) of the House amendment contains a similar 
     registration requirement, which differs from the Senate bill, 
     in that it would--(1) move the requirement for organizations 
     to register on behalf of all of their employees who are 
     lobbyists to section 4(a)(2); (2) set the threshold for 
     registration at $2,500 in a semi-annual period; and (3) 
     require inflation adjustments to be made every four years, 
     instead of every five years, as in the Senate bill.
       On the first issue, the conference amendment would adopt 
     the House approach, with a clarifying amendment. Under the 
     conference amendment, any organization having one or more 
     employees who are lobbyists must file a single registration 
     for each client, covering all lobbying contacts made by the 
     registrant and its employees on behalf of the client. The 
     conferees believe that the bill is clarified by placing the 
     requirement that organizations register on behalf of all of 
     their individual employees who are lobbyists in the 
     registration paragraph itself.
       On the second issue, the conference amendment would take 
     the Senate approach, with the threshold set at $5,000 for 
     organizations that lobby on their own behalf and at $2,500 
     per client for lobbying firms. As in both the Senate bill and 
     the House amendment, these dollar thresholds would apply to 
     the lobbying income or expenditures (as applicable) or an 
     entire organization--not to the income or expenditures of an 
     individual lobbyist for the organization.
       On the third issue, the conference amendment would provide 
     for inflation adjustments to be made every four years and 
     rounded to the nearest $500.
       Section 104(b): Contents of Registration.--Section 4(b) of 
     the Senate bill would require that each registration include:
       The name, address, and principal place of business of the 
     registrant and the client;
       The name, address, and principal place of business of any 
     organization which is similar to a client, in that it--(a) 
     contributes more than $5,000 toward the lobbying activities; 
     (b) significantly participates in the planning, supervision 
     or control of such lobbying activities; and (c) has a direct 
     financial interest in the outcome of the lobbying activities;
       The name, address, and principal place of business of any 
     foreign entity that has an interest in the outcome of the 
     lobbying activity;
       A statement of the general issue areas in which the 
     registrant expects to engage in lobbying activities; and
       The name of each employee whom the registrant expects to 
     act as a lobbyist on behalf of the client (and any covered 
     legislative branch or covered executive branch position in 
     which any such lobbyist has served in the previous two 
     years).
       The House amendment contains similar requirements for the 
     contents of a registration, but differs from the Senate bill 
     in that: (1) the requirement to identify organizations that 
     are similar to clients would be modified to (a) include 
     organizations that have agreed to contribute to the lobbying 
     activities, but have not yet done so; and (b) delete the 
     requirement that the organization have a direct financial 
     interest in the outcome of the lobbying activities; (2) a new 
     requirement would be added to disclose the dollar amount of 
     any contribution in excess of $5,000 to the lobbying 
     activities of the registrant by a foreign entity; and (3) a 
     new requirement would be added to disclose the name, address, 
     and principal place of business of any outside firm retained 
     by the registrant to conduct grass roots lobbying activities.
       On the first issue, the conference amendment would strike a 
     compromise between the Senate bill and the House amendment. 
     Under the conference amendment, as under the Senate bill, 
     only organizations that have actually contributed to lobbying 
     activities (and not those that have merely agreed to do so) 
     would be disclosed. As in the case of disclosure of lobbying 
     income and expenses (see page 22 of the Senate report), this 
     language would give the Director flexibility to determine 
     whether a contribution is made at the time an obligation is 
     incurred (rather than the time a payment is made), to the 
     extent necessary to preclude evasion.
       Like the House amendment, the conference amendment would 
     drop the requirement that the organization have a direct 
     financial interest in the outcome of the lobbying activities. 
     This change would place coalitions and associations of non-
     profit entities (which are unlikely to have a direct 
     financial stake in the outcome of their lobbying activities) 
     on the same footing as coalitions and associations of for-
     profit entities (which are more likely to have such a stake).
       In many situations, organizational members of a trade 
     association, a labor federation, or another multi-tiered 
     membership organization may be represented on the 
     organization's governing board. So long as the board consists 
     of a large number of members, none of whom has a 
     disproportionate vote in the decisions of the board, such 
     representation, standing alone, would not be enough to bring 
     the constituent organization within the ``significant 
     participation'' test in paragraph (3)(B).
       On the second issue, the conference amendment would adopt 
     the House approach. For the purpose of disclosing 
     contributions in excess of $5,000 under this section, a 
     contribution by a foreign entity to a client that is not 
     specifically earmarked or designated for the lobbying 
     activities of the registrant should be allocated in a 
     reasonable manner to the lobbying and non-lobbying activities 
     of the client. The IRS regulations on allocation of costs to 
     lobbying activities for the purposes of section 162(e) of the 
     Internal Revenue Code (26 C.F.R. 1.162-28) provide useful 
     guidance as to how such allocations may be made. A person or 
     entity that is required to make such an allocation for IRS 
     purposes may reasonably allocate contributions from foreign 
     entities in the same manner and the same percentages for the 
     purposes of this requirement.
       The conference amendment would also modify the paragraph on 
     disclosure of foreign entities to require the disclosure of 
     any foreign entity that directly or indirectly, in whole or 
     in major part plans, supervises, controls, directs, finances, 
     or subsidizes the activities of the client or any 
     organization identified under paragraph (3). For the purposes 
     of this paragraph, any foreign entity that provides more than 
     20% of the funding of a client would be considered to have 
     financed or subsidized the activities of the client in whole 
     or in major part for the purposes of this paragraph.
       On the third issue, the conference amendment would adopt 
     the House language. This provision would require the 
     disclosure of any outside firm that is retained by a 
     registrant to conduct grass roots lobbying activities.
       Section 104(c): Guidelines for Registration.--Section 4(c) 
     of the Senate bill contains (a) a rule on multiple clients, 
     which would require that a registrant representing more than 
     one client register separately in connection with each client 
     represented and (b) a rule on multiple lobbyists, which would 
     require that each organization having one or more employees 
     who are lobbyists file a single registration on behalf of all 
     such employees. The House amendment contains similar 
     provisions and adds a rule on multiple contacts, which 
     provides that a registrant whose employees make multiple 
     lobbying contacts on behalf of the same client would be 
     required to file a single registration in connection with 
     such contacts.
       The conference amendment would delete from section 104(c) 
     the rule on multiple lobbyists, as a similar provision is 
     included in section 104(a) of the conference amendment. The 
     conference amendment would adopt the House provision on 
     multiple lobbying contacts, with a further amendment 
     clarifying the language of the provision.
       Section 104(d): Termination of Registration.--The Senate 
     bill contains no provision for the termination of a 
     registration. The House bill contains a provision, section 
     4(d), which would require registrants that do not anticipate 
     engaging in additional lobbying activities to notify the 
     Office of Lobbying Registration and Public Disclosure that 
     they have terminated their lobbying activities. The 
     conference amendment would authorize (but not require) a 
     registrant to terminate its registration by notifying the 
     Office, if the registrant is no longer employed or retained 
     by the client to conduct lobbying activities and does not 
     anticipate any additional lobbying activities for the client 
     in the future.
       Section 105. Reports by Registered Lobbyists.--Section 5 of 
     the Senate bill and the House amendment provide for reports 
     by registered lobbyists. Section 105 of the conference 
     amendment would resolve the differences between the Senate 
     bill and the House amendment as follows.
       Section 105(a): Reporting Requirement.--Section 5(a) of the 
     Senate bill would require registrants to file semi-annual 
     reports on their lobbying activities in January and July of 
     each year in which they are registered. A separate provision 
     in section 105(c)(3) would exempt from this requirement any 
     registrant whose total lobbying expenses do not exceed $1,000 
     in a semi-annual period on behalf of a particular client, or 
     $5,000 in a semi-annual period on behalf of all clients. The 
     House amendment contains a similar provision, which differs 
     from the Senate bill, in that the House amendment would: (1) 
     expressly provide for a separate report to be filed for each 
     client of the registrant; and (2) set the threshold for 
     reporting at $2,500 per client.
       On the first issue, the conference amendment would adopt 
     the House language requiring a separate report for each 
     client of the registrant. The conferees understand that there 
     may be some cases in which several members of a coalition or 
     association jointly sponsor a single lobbying effort. In this 
     case, the client, as defined in section 103(2) of the bill, 
     would be those members, collectively. Because section 103(2) 
     uses the singular ``client'' to refer to these members, only 
     a single report (naming as the client those members of the 
     coalition or association on whose behalf the lobbying is 
     conducted) would be required.
       On the second issue, the conference amendment would take 
     the Senate approach, with the threshold set at $5,000 for 
     registrants that lobby on their own behalf and at $2,500 per 
     client for lobbying firms.
       Section 105(b): Contents of Reports.--Section 5(b) of the 
     Senate bill would require that each lobbying report contain--
       The name of the registrant, the name of the client, and any 
     changes or updates to the information provided in the initial 
     registration;
       For each general issue area in which the registrant engaged 
     in lobbying activities: (a) a list of specific issues on 
     which the registrant engaged in significant lobbying 
     activities; (b) a statement of the Houses and committees of 
     Congress and the Federal agencies contacted by the 
     registrant's lobbyists; (c) a list of the employees of the 
     registrant who acted as lobbyists during the period; and (d) 
     a description of the interest, if any, of any foreign 
     affiliate or contributor in each of the specific issues on 
     which the registrant lobbied;
       In the case of a lobbying firm, a good faith estimate, by 
     category of dollar value, of all income from the client, 
     other than income for matters that are clearly unrelated to 
     lobbying activities;
       In the case of in-house lobbying, a good faith estimate, by 
     category of dollar value, of all expenses incurred by the 
     registrant and its employees in connection with lobbying 
     activities; and
       In the case of a lobbying firm, the name, address and 
     principle place of business of any person other than the 
     client who paid the registrant to lobby on behalf of the 
     client.
       Section 5(b) of the House amendment contains similar 
     reporting requirements, which differ from the Senate bill, in 
     that the House amendment would: (1) require a list of all 
     specific issues upon which the registrant engaged in lobbying 
     activities; (2) require the identification of the specific 
     issues on which an outside firm retained by the registrant 
     engaged in grass roots lobbying communications on behalf of 
     the client; (3) require a separate good faith estimate, by 
     category of dollar value, of the total expenses that the 
     registrant and its employees incurred in connection with 
     grass roots lobbying communications (including any amounts 
     paid to an outside firm retained to make such 
     communications); and (4) delete the requirement in the Senate 
     bill to identify any person other than the client who paid 
     for the lobbying activities (while adding such persons to the 
     definition of ``client'').
       On the first issue, the conference amendment would strike a 
     compromise between the Senate bill and the House amendment. 
     The conference amendment, like the House amendment, would 
     require a listing of all specific issues that were the 
     subject of lobbying activities; unlike the House amendment, 
     however, the conference amendment would limit this list to 
     issues on which lobbyists employed by the registrant engaged 
     in lobbying activities. Under this compromise approach, 
     lobbyists would be required to identify all of the issues on 
     which they lobbied, but registrants would not be required to 
     list the issues on which employees other than lobbyists may 
     have engaged in incidental lobbying activities.
       On the second and third issues, the conference amendment 
     would adopt the House language, requiring the disclosure of 
     grass roots lobbying issues and expenses.
       On the fourth issue, the conference amendment would adopt 
     the Senate language with a clarifying amendment. Under the 
     conference amendment, all registrants (regardless whether 
     they are lobbying firms or use in-house lobbyists) would be 
     required to identify any person other than the client who 
     paid the registrant to lobby on behalf of the client.
       Section 105(c): Estimates of Income or Expenses.--Section 
     5(d) of the Senate bill would establish the categories of 
     dollar value for estimates of income or expenses; authorize 
     registrants that are required to report lobbying expenses to 
     the Internal Revenue Service under section 6033 of the 
     Internal Revenue Code to report the same amounts to the 
     Office of Lobbying Registration and Public Disclosure; and 
     provide that estimates of lobbying income or expenses need 
     not include the value of volunteer services or expenses 
     provided by independent contractors who are separately 
     registered and separately report such income. Section 5(c) of 
     the House bill contains similar provisions, with minor 
     clarifying changes. The conference amendment would adopt the 
     language of the House amendment, with a further amendment to 
     clarify the treatment of registrants that report lobbying 
     expenses to the IRS under section 6033 and minor 
     modifications to the categories of dollar value to be used 
     for estimates of income or expenses.
       As explained in the Senate report (pp. 33-34), the purpose 
     of disclosing lobbying expenditures is to establish the scope 
     of a lobbying effort. For this reason, as long as a 
     registrant has a reasonable estimating system in place and 
     complies in good faith with that system, the requirements of 
     this provision would be met.
       For example, an organization could make a good faith 
     estimate of the total expenses that the organization and its 
     employees incurred in connection with lobbying activities 
     during a filing period if: (1) the organization has its 
     professional employees make a regular periodic estimate of 
     the percentage of time the employee spends on lobbying 
     activities and uses that percentage to compute both its 
     salary costs and general overhead costs (e.g., rent, 
     utilities, salaries of nonprofessional support staff, etc.) 
     assignable to lobbying activities; and then (2) adds to that 
     figure an estimate of the direct costs attributable to 
     lobbying activities (i.e., third-party reimbursements for 
     media, printing, postage, expense reimbursements and other 
     costs directly associated with the organization's lobbying 
     activities). In other words, where an organization follows 
     such a system and where the professional staff's estimates 
     are done carefully and in good faith, the only major 
     obligation imposed by this reporting requirement will be the 
     preparation of those estimates.
       Similarly, an organization could make a ``good faith 
     estimate'' of the total expenses that the organization and 
     its employees incurred in connection with grassroots lobbying 
     communications if (1) the organization has its professional 
     employees make a regular periodic estimate of the percentage 
     of time the employee spends on grassroots lobbying 
     communications and uses that percentage to compute both its 
     salary costs and the general overhead costs assignable to 
     such activity; and (2) then adds to that figure an estimate 
     of the direct costs attributable to grassroots lobbying 
     communications (e.g., third-party payments for media, 
     printing, mailings, postage and other costs directly 
     associated with grassroots lobbying communications).
       Some concern has been expressed about over-reporting being 
     considered a violation of the Lobbying Disclosure Act. The 
     conferees agree that unintentional over-reporting, resulting 
     from a good faith effort to report all lobbying contacts and 
     expenses related to lobbying activities, should not be 
     considered a violation of the Act.
       Section 105(d): Contacts.--Section 5(e) of the Senate bill 
     would provide that any contact with a member or employee of a 
     Congressional Committee regarding a matter within the 
     jurisdiction of the Committee is considered a contact with 
     the Committee. Section 5(d) of the House bill contains 
     similar language, with additional provisions which would 
     define contacts with a House of Congress and contacts with 
     federal agencies.
       The conference amendment would adopt the language of the 
     House amendment with a further amendment clarifying that a 
     contact with a covered executive branch official who has been 
     detailed to another Federal agency or to the Congress is 
     considered to be a contact with the federal agency, committee 
     of Congress, or House of Congress to which the official has 
     been detailed and not a contact with the home agency of the 
     official. An executive branch official who is detailed to the 
     Congress, but is not a covered executive branch official 
     would be included in the definition of the term covered 
     legislative branch employee (because he or she functions in 
     the capacity of an employee of the Congress). A contact with 
     the person would be a contact with the committee or House of 
     Congress to which the individual has been detailed.
       The language in the conference amendment would pertain to 
     details of executive branch employees under sections 3341 
     through 3349 of Title 5; section 112 of Title 3; section 
     202(f) of the Legislative Reorganization Act of 1946; section 
     81a of Title 2; and other statutes or rules that authorize 
     details from one agency or branch to another agency or branch 
     of the federal government.
       Section 106. Prohibition of Gifts by Lobbyists, Lobbying 
     Firms, and Agents of Foreign Principals.--Section 5(c) of the 
     Senate bill would require lobbyists to disclose certain gifts 
     to covered legislative branch officials. Section 6 of the 
     House amendment would prohibit most gifts from lobbyists and 
     their clients to covered legislative branch officials and 
     require the disclosure of other gifts. In addition, a 
     separate bill passed by the Senate, S. 1935, would prohibit 
     members of Congress and congressional staff from accepting 
     most gifts from lobbyists or from any other sources.
       The conference amendment would adopt a compromise approach 
     to these proposals. Section 106 of the conference amendment 
     would prohibit virtually all gifts from lobbyists to covered 
     legislative branch officials. A separate title of the bill 
     would amend the Standing Rules of the Senate and the Rules of 
     the House of Representatives to address gifts from all 
     sources.
       Under section 106 of the conference amendment, registered 
     lobbyists, lobbying firms, and foreign agents would be 
     prohibited from providing any gift, directly or indirectly, 
     to a covered legislative branch official, with certain narrow 
     exceptions.
       A gift to a spouse or dependent of a covered legislative 
     branch official (or a gift to any other individual based on 
     that individual's relationship with the covered legislative 
     branch official), would be considered a gift to the covered 
     legislative branch official if it is given, with the 
     knowledge and acquiescence of the official, because of the 
     official position of the recipient. A gift (such as a wedding 
     gift) with is given jointly to both a covered legislative 
     branch official and the spouse of that covered legislative 
     branch official and that would not be appropriate under the 
     circumstances to give to only one of the two recipients by an 
     individual who has a family relationship or close personal 
     friendship with only one of the two recipients would be 
     considered a gift to the recipient who has the relationship 
     with the donor. Such a gift may be accepted under the family 
     relationship or close personal friendship exception if the 
     gift otherwise meets the requirements of that provision.
       This section also would prohibit--
       Anything provided by a registered lobbyist or a foreign 
     agent which is paid for, charged to, or reimbursed by a 
     client or firm of the lobbyist or foreign agent;
       Anything provided by a registered lobbyist, firm, or 
     foreign agent to an entity that is maintained or controlled 
     by a covered legislative branch official;
       A charitable contribution made by a registered lobbyists, 
     lobbying firm, or foreign agent on the basis of a 
     designation, recommendation, or other specification by a 
     covered legislative branch official;
       A contribution or other payment by a registered lobbyist, 
     lobbying firm, or foreign agent too a legal expense fund 
     established for the benefit of a covered legislative branch 
     official or a covered executive branch official; and
       A charitable contribution made by a registered lobbyist, 
     lobbying firm, or foreign agent in lieu of an honorarium to a 
     covered legislative branch official.
       A contribution or expenditure by a registered lobbyist, 
     lobbying firm, or foreign agent relating to a congressional 
     conference, retreat, or similar event.
       The following exceptions would apply: Anything for which 
     the recipient pays the market value or does not use and 
     promptly returns, any lawful campaign contribution or 
     attendance at a political fundraising event; food or 
     refreshment of nominal value offered other than as part of a 
     meal; benefits resulting from outside business, employment or 
     other activities of the spouse of the covered legislative 
     branch official; pension and other benefits resulting from 
     former employment; and informational materials that are sent 
     to the office of a covered legislative branch official.
       Finally, a gift from an individual would be permitted under 
     circumstances which make it clear that the gift is given for 
     a nonbusiness purpose and is motivated by a family 
     relationship or close personal friendship and not by the 
     covered legislative branch official. The conference amendment 
     would establish narrow limits on the circumstances under 
     which gifts of this type would be permitted.
       Section 107. The Office of Lobbying Registration and Public 
     Disclosure.--Section 6 of the Senate bill and section 7 of 
     the House amendment would establish a new Office of Lobbying 
     Registration and Public Disclosure and set forth the duties 
     of the Office. Section 107 of the conference amendment would 
     resolve the differences between the Senate bill and the House 
     amendment as follows.
       Section 107(a): Establishment.--Section 6(a) of the Senate 
     bill would establish an Office of Lobbying Registration and 
     Public Disclosure in the Department of Justice, to be headed 
     by a Director. Section 7(a) of the House amendment contains a 
     similar provision, which differs from the Senate bill, in 
     that it would: (1) provide for the Office of Lobbying 
     Registration and Public Disclosure to be an independent 
     agency in the executive branch, rather than an office within 
     the Justice Department; (2) provide a fixed, five-year term 
     for the Director; and (3) authorize the Director to appoint 
     officers and employees and to contract with the General 
     Services Administration and other Federal agencies for 
     financial and administrative services.
       On the first point, the conference amendment would adopt 
     the House approach and provides for the Office of Lobbying 
     Registration and Public Disclosure to be an independent 
     agency in the executive branch. Congressional oversight of 
     this office would be assured by limiting the authorization of 
     appropriations to five years (as provided in section 118 of 
     the bill).
       On the second point the conference amendment would provide 
     a fixed, five-year term for the Director.
       On the third point, the conference amendment would adopt 
     the House provision and would: (a) provide additional 
     administrative powers for the Director; and (b) require other 
     agencies to cooperate with the Director by supplying needed 
     personnel and services (subject to reimbursement).
       Section 107(b): Duties.--Section 6(b) of the Senate bill 
     would establish the duties of the Director of the Office of 
     Lobbying Registration and Public Disclosure. Section 7(b) of 
     the House amendment contains a similar provision, which 
     differs from the Senate bill in that it would: (1) provide 
     for the payment of reasonable copying fees for registrations 
     and reports made available to the public; (2) require that 
     copies and electronic records of registrations be retained in 
     perpetuity; (3) require that copies of reports be retained 
     for 3 years instead of 2; and (4) require the Director, upon 
     request, to determine whether an individual is a covered 
     executive branch official or a covered legislative branch 
     official.
       On the first issue, the conference amendment would adopt 
     the language of the House amendment.
       On the second issue, the conference amendment would provide 
     that copies of registrations be retained for at least three 
     years after the termination of a registration and that 
     electronic records of registrations be retained for at least 
     five years after the termination of a registration.
       On the third issue, the conference amendment would adopt 
     the language of the House amendment.
       On the fourth issue, the conference amendment would adopt a 
     compromise approach, under which an individual who is 
     contacted by a lobbyist (or the office employing such 
     individual), rather than the Director, would be required to 
     state whether the individual is a covered official. This 
     requirement would be placed in section 119(c) of the 
     conference amendment.
       The conference amendment would also require the Director to 
     study the definition of the term ``public official'' and make 
     recommendations for any changes to this definition which 
     might be necessary to ensure appropriate disclosure of 
     lobbying activities and equitable treatment of public and 
     quasi-public entities. The Director's recommendations would 
     be included in the first annual report required by the bill.
       Section 108. Initial Procedure for Alleged Violations.--
     Section 7 of the Senate bill and section 8 of the House 
     amendment contain the initial procedures for resolution of 
     alleged violations. Section 108 of the conference amendment 
     would resolve the differences between the Senate bill and the 
     House amendment as follows.
       Section 108(a): Allegation of a Violation.--Under section 
     7(a) of the Senate bill and section 8(a) of the House 
     amendment, whenever the Director has reason to believe that a 
     person may be in violation of the Act, the Director is 
     required to notify the person and provide the person an 
     opportunity to respond in writing to the allegation. The 
     conferees agree to this provision.
       Section 108(b): Initial Determination.--Section 7(b) of the 
     Senate bill would provide that, upon receipt of a response to 
     a notification under section (7), the Director would: (a) 
     take no further action, if it appeared unlikely that the Act 
     had been violated; (b) provide an automatic reduction of 
     penalty for a major violation (and no penalty at all, for a 
     minor violation) if the violation was admitted and corrected; 
     and (c) make a formal request for information if the 
     information or explanation provided indicated that the person 
     might be in violation of the Act.
       Section 8(b) of the House amendment differs from the Senate 
     bill in that it: (1) would authorize the Director to avoid 
     further proceedings only if the information or explanation 
     provided was adequate to issue a written determination that 
     the person had not violated the Act (and not if it merely 
     appeared that a violation was unlikely); (2) would not 
     provide for any reduction in penalty if a violation was 
     admitted and corrected; and (3) would authorize the Director 
     to either request additional information or proceed directly 
     to a hearing, if the information or explanation provided 
     indicated that the person may be in violation of the Act.
       On the first issue, the conference amendment would adopt 
     the language of the House amendment. On the second issue, the 
     conference amendment would drop the requirement for an 
     automatic reduction in penalty if a violation is admitted or 
     corrected, but would provide (in section 108(e)(1)) that 
     whether or not a violation is voluntarily admitted and 
     corrected is a factor to be considered by the Director in 
     determining the amount of a penalty under the Act. On the 
     third issue, the conference amendment would adopt the 
     language of the House amendment, with minor clarifying 
     changes.
       Section 108(c): Formal Request for Information.--Section 
     7(c) of the Senate bill would provide for the Director to 
     make formal requests for specific ``documentary information'' 
     that is reasonably necessary to make a determination whether 
     a person has violated the Act. Section 8(c) of the House 
     amendment contains a similar provision, which differs from 
     the Senate bill, in that it would authorize requests for 
     specific ``written information''. The conference amendment 
     would adopt the language of the House amendment, authorizing 
     requests for written information. The conferees understand 
     that the term ``written information'' is broader than the 
     term ``documentary information'' and may include 
     interrogatories calling for an answer in writing, in addition 
     to requests for documents.
       Section 109. Determinations of Violations.--Section 8 of 
     the Senate bill and section 9 of the House bill would 
     establish procedures for hearings and determination of 
     violations. Section 109 of the conference amendment would 
     resolve the differences between the Senate bill and the House 
     amendment as follows.
       Section 109(a): Notification and Hearing.--Section 8(a) of 
     the Senate bill would provide for notification and hearing in 
     cases in which the Director finds that the Act may have been 
     violated. This subsection would provide for an informal 
     hearing in the case of a minor violation and a full hearing 
     under the Administrative Procedure Act in the case of a 
     significant violation. Section 9(a) of the House amendment 
     contains a similar provision, but would provide for a full 
     APA hearing for either a minor violation or a significant 
     violation. The conference amendment would adopt the language 
     of the House amendment.
       Section 109(b): Determinations.--Section 8(b) of the Senate 
     bill and section 9(b) of the House amendment would provide 
     for determinations by the Director in substantially similar 
     terms. The conferees agree to this provision.
       Section 109(c): Written Decision.--Section 8(c) of the 
     Senate bill and section 9(c) of the House amendment would 
     provide for the issuance of written decisions by the Director 
     in substantially similar terms. The conferees agree to this 
     provision.
       Section 109(d): Civil Injunctive Relief.--Section 8(d) of 
     the Senate bill and section 9(d) of the House amendment would 
     provide for referral to the Attorney General to seek civil 
     injunctive relief in substantially similar terms. The 
     conferees agree to this provision.
       Section 109(e): Penalty Assessments.--Section 8(e) of the 
     Senate bill would provide guidelines for penalty assessments 
     and would define major violations as knowing failure to 
     register and other knowing violations that are extensive or 
     repeated. Section 9(e) of the House amendment contains 
     similar language, but differs from the Senate bill in that it 
     would: (1) delete a provision of the Senate bill, which 
     prohibited the Director from assessing a penalty in an amount 
     greater than that recommended by an Administrative Law Judge; 
     and (2) extend the definition of major violations to include 
     actions which a person ``should have known'' violated the 
     Act.
       On the first point, the conference amendment would adopt 
     the language of the House amendment. On the second point, the 
     conference amendment would adopt a compromise approach. Under 
     this approach, a person may be penalized for a minor 
     violation if he or she ``knew or should have known'' that he 
     or she was in violation of the Act. A person may be penalized 
     for a major violation only if he or she fails to register or 
     commits another violation that is extensive or repeated and: 
     (a) had actual knowledge that the conduct constituted a 
     violation; (b) acted in deliberate ignorance of the 
     provisions of the Act or implementing regulations; or (c) 
     acted in reckless disregard of the Act or implementing 
     regulations.
       In addition, the conference amendment would require the 
     Director, in determining the amount of a penalty to be 
     assessed, to consider: (a) whether a violation was 
     voluntarily admitted and corrected; (b) the extent to which 
     the person or entity may have profited from the violation; 
     (c) the ability of the penalized person or entity to pay; and 
     (d) such other matters as justice may require.
       Section 9 of the Senate bill and section 10 of the House 
     amendment contain provisions regarding penalties for late 
     registration or filing and failure to provide information. 
     The conference amendment would add these provisions to 
     section 109 of the bill, addressing determinations of 
     violations generally.
       Under the conference amendment, as under the House and 
     Senate bills, a $200 penalty would be assessed for each week 
     by which a filing is late. For the purpose of this provision, 
     the term ``each week'' would include a portion of a week. If 
     the Director determines, however, that a late filing was 
     extensive or repeated and that the person committing the 
     violation acted with actual knowledge, deliberate ignorance, 
     or reckless disregard of the relevant law, a larger penalty 
     would be assessed under the paragraph providing penalties for 
     major violations. For example, a late filing would be 
     penalized as a major violation if it were a part of a 
     deliberate pattern of late filings with intent to evade the 
     disclosure requirements of the Act.
       Section 110: Disclosure of Information.--Section 7(d) of 
     the Senate bill would prohibit the Director from disclosing 
     information obtained in the dispute resolution process to the 
     public, or outside the Office of Lobbying Registration and 
     Public Disclosure, without the consent of the person 
     providing the information, with specific exceptions. Section 
     8(d) of the House amendment contains a similar provision, 
     which differs from the Senate bill in that it would not limit 
     the disclosure of information to other federal officials. In 
     addition, the House bill contains several provisions that 
     would address the publication of written decisions by the 
     Director.
       Section 110 of the conference amendment would consolidate 
     these provisions in a new section. Under section 110, the 
     Director would make information provided to the Director in 
     the dispute resolution process available to the public only 
     through a report or registration filed by the registrant, or 
     in a written decision issued by the Director. This section 
     would provide that all written decisions shall be available 
     to the public, and any decision may be published if the 
     Director determines that publication would provide useful 
     guidance.
       Information that would identify a person or entity would be 
     deleted from a written decision before the decision is made 
     public, under circumstances described in the provision. A 
     person who is a party to the proceeding and is not found to 
     have violated the Act may have identifying information 
     deleted, upon request. Information that would identify a 
     person who is not a party to the proceeding must be deleted 
     if the Director determines that such person or entity could 
     reasonably be expected to be injured by the disclosure of 
     such information. No request for redaction by a non-party 
     would be required, as a person who is not a party to the 
     proceeding may not be aware of the proceeding or in a 
     position to make such a request.
       The conferees intend that if the Director finds that there 
     has been a violation of Section 106 and has reason to believe 
     that a covered legislative branch official may have knowingly 
     participated in such violation, the Director shall refer the 
     matter to the Senate Select Committee on Ethics or the House 
     Committee on Standards of Official Conduct, as appropriate.
       Section 111. Judicial Review.--Section 10 of the Senate 
     bill and section 11 of the House amendment would provide in 
     substantially similar terms for judicial review of written 
     decisions of the Director. The Senate bill would provide that 
     any person who prevails on the merits would be entitled to 
     recover attorneys' fees from the United States; the House 
     amendment contained no such provision. The conference 
     amendment would not include the attorneys' fees provision. 
     The conferees note that such fees may be available, in 
     appropriate cases, in accordance with the terms of the Equal 
     Access to Justice Act.
       Section 112. Rules of Construction.--Section 11 of the 
     Senate bill contains two rules of construction, which would 
     provide that nothing in the Act may be construed to prohibit 
     lobbying activities or to grant general audit or 
     investigative authority to the Director. Section 12 of the 
     House amendment contains a similar provision, but adds a 
     third rule of construction, which would state that nothing in 
     the Act may be construed to interfere with the exercise of 
     rights protected by the First Amendment to the Constitution. 
     The conference amendment would adopt all three rules of 
     construction, including the third rule added by the House 
     amendment. The conferees note that the authorities granted to 
     the Director under sections 7, 8 and 9 of the Act do not 
     include general audit or investigative authority.
       Section 113. Amendments to the Foreign Agents Registration 
     Act.--The Senate bill would amend the Foreign Agents 
     Registration Act (FARA) to limit the definition of the term 
     ``foreign principal'' to the government of a foreign country 
     or a foreign political party. The bill would provide for 
     disclosure of lobbying by representatives of foreign 
     corporations, organizations and individuals under the 
     Lobbying Disclosure Act, rather than FARA.
       The House amendment would retain the current definition of 
     ``foreign principal'' in FARA, including foreign 
     corporations, organizations and individuals as well as 
     foreign governments and political parties. The House 
     amendment would add a new provision to FARA, exempting from 
     registration any person who is required to register and does 
     register under the Lobbying Disclosure Act. Lobbying contacts 
     for foreign corporations, organizations and individuals would 
     trigger a requirement to register under the Lobbying 
     Disclosure Act, but lobbying contacts for foreign governments 
     and political parties would not. Contacts on behalf of 
     foreign governments and political parties would continue to 
     be disclosed under FARA.
       The conference amendment would adopt the language of the 
     House amendment. The result is that, while lobbyists for 
     foreign corporations, organizations and individuals would 
     generally be required to register under the Lobbying 
     Disclosure Act (and not under FARA), any representative of a 
     foreign corporation, organization or individual who is not 
     required to register as a lobbyist (such as a representative 
     of a foreign corporation which engages only in public 
     relations activities and does no lobbying in the United 
     States), or fails to do so, would still be required to 
     register under FARA. The conferees note that FARA does not 
     and would not apply to an organization whose activities are 
     entirely supervised, directed, controlled, financed and 
     subsidized by citizens of the United States, even if the 
     agenda of such an organization includes issues affecting the 
     foreign policy of the United States.
       Section 114. Amendments to the Byrd Amendment.--Section 13 
     of the Senate bill and section 14 of the House amendment 
     would amend the so-called Byrd amendment to eliminate 
     separate lobbying disclosure provisions and harmonize that 
     provision with the requirements of the Lobbying Disclosure 
     Act. The conferees agree to this provision.
       Section 115. Repeal of Certain Lobbying Provisions.--
     Section 14 of the Senate bill would repeal certain obsolete 
     and redundant lobbying disclosure provisions. Section 15 of 
     the House amendment contains similar repealers, but would not 
     repeal the lobbying registration requirement in the Public 
     Utility Holding Company Act of 1935 (PUHCA).
       The conferees have been assured that the Securities and 
     Exchange Commission and the relevant Committees of 
     jurisdiction intend to review the PUCHA registration 
     requirement and will seek its repeal if the provision is no 
     longer needed. On this basis, the conference amendment would 
     adopt the House approach and leave the repeal of the PUCHA 
     registration requirement to consideration by the appropriate 
     committees.
       Section 116. Conforming Amendments to Other Statutes.--
     Section 15 of the Senate bill contains conforming amendments 
     to other statutes. Section 16 of the House amendment contains 
     similar conforming amendments and would also amend section 
     201(c)(1) of Title 18 to address the relationship between the 
     criminal gratuity statute and the congressional gift rules. 
     The conference amendment would not amend section 201 because 
     the conferees determined that such an amendment was 
     unnecessary. In fact, a federal district court specifically 
     determined that the Ethics Reform Act of 1989 ``was enacted 
     to limit the liability of public officials under the 
     gratuities statute by permitting the ethics offices in each 
     branch of government to establish rules for the acceptance of 
     gifts. See 827 F. Supp. 1153, 1173 (1993). Title II of the 
     conference amendment would establish such rules.
       Section 117. Severability.--Section 16 of the Senate bill 
     and section 17 of the House amendment would provide that if 
     any provision of the Act is found to be unconstitutional, 
     such provision would be treated as severable and the 
     remainder of the Act would remain in effect. The conferees 
     agree to this provision.
       Section 118. Authorization of Appropriations.--Section 17 
     of the Senate bill and section 18 of the House amendment 
     would authorize appropriations. Section 118 of the conference 
     amendment would authorize appropriations for a period of five 
     years, to ensure effective congressional oversight of the 
     Office of Lobbying Registration and Public Disclosure.
       Section 119. Identification of Clients and Covered 
     Officials.--Section 19 of the Senate bill would require any 
     person who makes a lobbying contact to identify, on request 
     of the individual contacted, the client on whose behalf the 
     contact is made. Section 20 of the House amendment would 
     require any person who makes a lobbying contact on behalf of 
     a foreign client to identify, on request of the individual 
     contacted, the client on whose behalf the contact is made and 
     to confirm the information provided in writing. The House 
     provision would also require all written lobbying contacts on 
     behalf of foreign clients to identify the client on whose 
     behalf the contact is made, and would provide a definition of 
     the term ``foreign client''.
       The conference amendment would adopt a compromise approach. 
     Under the conference amendment, any person who makes an oral 
     lobbying contact would be required, on request of the 
     individual contacted, to identify the client on whose behalf 
     the contact is made, state whether the client is a foreign 
     entity, and identify any foreign entity subject to disclosure 
     under the registration provisions of the bill which has a 
     direct interest in the outcome of the lobbying activity. A 
     lobbyist who make a written lobbying contact would be 
     required to identify any foreign entity that is a client or 
     an entity subject to disclosure under the registration 
     provisions of the bill that has a direct interest in the 
     outcome of the lobbying activity.
       In addition, section 119 of the conference amendment would 
     require an individual who is contacted by a lobbyist (or the 
     office employing such individual) to state whether or not the 
     individual contacted is a covered executive branch official 
     or a covered legislative branch official.
       Section 120. Transitional Filing Requirement.--Section 19 
     of the Senate bill section 20 of the House amendment contain 
     a transitional filing requirement, to apply until such time 
     as the Office of Lobbying Registration and Public Disclosure 
     is able to make computer transmittal of registrations and 
     reports to the Senate and the House of Representatives. The 
     conferees agree to this provision.
       Government-Sponsored Enterprises--Report to Congress. 
     Section 20 of the Senate bill would require government-
     sponsored enterprises to file special annual reports with the 
     Congress on their lobbying activities. The House amendment 
     contains no parallel provision. The conference amendment 
     would not include the Senate provision. Under the conference 
     amendment, lobbying for government-sponsored enterprises 
     would be reported in the same manner, and to the same extent, 
     as lobbying for other entities.
       Section 121. Effective Dates and Interim Rule.--Section 23 
     of the Senate bill would provide effective dates for the Act 
     and implementing regulations. Section 20 of the House 
     amendment contains similar language on effective dates and 
     would add a new interim reporting rule for organizations that 
     are required to track their lobbying expenditures under the 
     new provision in the Internal Revenue Code addressing the 
     non-deductibility of lobbying expenses. Section 121 of the 
     conference amendment would address the differences between 
     the Senate bill and the House amendment as follows:
       Subsection 121(a): In General.--Section 121(a) of the 
     conference amendment would provide that the Lobbying 
     Disclosure Act (Title I of the bill) and the amendments made 
     by the Lobbying Disclosure Act shall take effect on January 
     1, 1996.
       Subsection 121(b): Interim Gift Prohibition.--Section 
     121(b) of the conference amendment would provide that section 
     106 of the bill, prohibiting gifts from registered lobbyists, 
     lobbying firms and foreign agents to covered legislative 
     branch officials, would take effect on January 3, 1995. 
     During calendar year 1995, before the effective date of the 
     balance of the Lobbying Disclosure Act, this prohibition 
     would apply to lobbyists and foreign agents registered under 
     the existing Federal Regulation of Lobbying Act and Foreign 
     Agents Registration Act. The provision would preclude evasion 
     through termination of registrations under these Acts by 
     covering any lobbyist or foreign agent registered under 
     existing law as of July 1, 1994 or thereafter.
       Subsection 121(c): Establishment of Office.--Section 121(c) 
     of the conference amendment, like the Senate bill and the 
     House amendment, would provide that the provisions 
     establishing the office of Lobbying Registration and Public 
     Disclosure, and authorizing appropriations for that office, 
     would take effect upon enactment.
       Subsection 121(d): Repeals and Amendments.--Section 121(d) 
     of the conference amendment, like the Senate bill and the 
     House amendment, would provide for the continued 
     effectiveness of existing lobbying registration laws during 
     the interim period prior to the effective date of the 
     Lobbying Disclosure Act.
       Subsection 121(e): Regulations--Section 121(e) of the 
     conference amendment, like the Senate bill and the House 
     amendment, would provide a timetable for the issuance of 
     proposed and final regulations implementing the Act.
       Subsection 121(f): Phase-in period--Section 121(f) of the 
     conference amendment, like the Senate bill and the House 
     amendment, would provide a phase-in period during which no 
     penalties would be assessed for violations of the Act. As in 
     the House bill, this subsection would provide that violations 
     of the gift prohibition in section 106 of the bill during the 
     phase-in period, unlike violations of other provisions of 
     this title, would be subject to penalties.
       Subsection 121(g): Interim Rules.--Section 121(g) of the 
     conference amendment contains an interim reporting rule 
     similar to the provision contained in the House amendment. 
     Under the interim reporting rule, entities that are required 
     to account for their lobbying expenditures pursuant to the 
     non-deductibility rules would be permitted to use the same 
     accounting system to account for the report lobbying expenses 
     under the Lobbying Disclosure Act. This provision would apply 
     to in-house lobbyists who are covered by the non-
     deductibility provision, and not to lobbying firms which are 
     not covered by the non-deductibility provision of the 
     Internal Revenue Code.
       In addition, the conference amendment would modify the 
     interim rule to provide that organizations reporting lobbying 
     expenditures under the Internal Revenue Code may use certain 
     definitions in the Internal Revenue Code in making the 
     determination whether an individual is a ``lobbyist'' under 
     this Act. Each entity covered by this provision must choose 
     whether to use the lobbying Disclosure Act Definitions or the 
     IRS definitions in a particular calendar year and notify the 
     Office of Lobbying Registration and Public Disclosure of this 
     choice. This provision would apply to the in-house employees 
     of organizations that are required to account for lobbying 
     expenditures pursuant to section 162(e) or section 6033(b)(8) 
     of the Internal Revenue Code; it would not apply to employees 
     of outside lobbying firms representing such organizations 
     which are not covered by the non-deductibility provisions of 
     the Internal Revenue Code.
       The provision would expire on December 31, 1998 and would 
     provide for a GAO report to Congress on differences between 
     the definition of lobbying activities in the Lobbying 
     Disclosure Act and definitions of ``lobbying expenditures'', 
     ``influencing legislation'', and related terms in sections 
     162(e) and 4911 of the Internal Revenue Code. The GAO report 
     would also address the impact that any such differences may 
     have on filing and reporting under the Lobbying Disclosure 
     Act (including the interim reporting rule). The conferees 
     expect this study to lead to recommendations for appropriate 
     adjustments to harmonize the definitions.
       Subsection 121(h): Interim Director.--Section 121(h) of the 
     conference amendment would authorize the President to appoint 
     an interim Director of the Office of Lobbying Registration 
     and Public Disclosure until the first Director after 
     enactment of this Act has been nominated by the President and 
     confirmed by the Senate. This provision is intended to avoid 
     unnecessary delays in the implementation of this Act and 
     ensure that the Office of Lobbying Registration and Public 
     Disclosure will be up and running in a timely manner. The 
     provision would prohibit the interim Director from 
     promulgating final regulations or initiating enforcement 
     actions; these authorities would be reserved for the 
     Director.

                  TITLE II.--CONGRESSIONAL GIFT RULES

       Section 5(c) of the Senate bill would require lobbyists to 
     disclose certain gifts to covered legislative branch 
     officials. Section 6 of the House amendment would prohibit 
     most gifts from lobbyists and their client to covered 
     legislative branch officials and require the disclosure of 
     other gifts. In addition, a separate bill passed by the 
     Senate, S. 1935, would prohibit Members of Congress and 
     congressional staff from accepting most gifts from lobbyists 
     or from any other sources.
       The conference amendment would adopt a compromise approach 
     to these proposals. Section 106 of the conference amendment 
     would prohibit lobbyists from making virtually any gift to 
     covered legislative branch officials. Title II of the 
     conference amendment would amend the Standing Rules of the 
     Senate and the Rules of the House of Representatives to 
     address the acceptance of gifts by Members, officers and 
     employees of both bodies. However, the rules cannot 
     anticipate every situation that a Member, officer, or 
     employee will confront. The Senate Select Committee on Ethics 
     and the House Committee on Standards of Official Conduct 
     would provide guidance and further regulation to assure that 
     the rules are fairly construed.
       Section 201. Amendment to Senate Rules.--Section 201 of the 
     conference amendment would amend Rule XXXV of the Standing 
     Rules of the Senate to provide tight, new restrictions on the 
     acceptance of gifts by Members, officers, and employees of 
     the Senate.
       Paragraph 1 of the new Rule XXXV would prohibit Members, 
     officers, and employees from accepting any gift from a 
     registered lobbyist, lobbying firm, or foreign agent, knowing 
     that such gift is provided in violation of the Lobbying 
     Disclosure Act of 1994.
       Paragraph 2 of the new rule XXXV would address gifts from 
     other sources.
       Subparagraph 2(a) would prohibit Members, officers, and 
     employees from knowingly accepting a gift from any other 
     person (in addition to the restriction on receiving gifts 
     from registered lobbyists, lobbying firms, and foreign 
     agents), except as otherwise provided in the Rule.
       Subparagraph 2(b) would define the term ``gift'' to include 
     any gratuity, favor, discount, entertainment, hospitality, 
     loan, forbearance, or other item having monetary value. The 
     term would include gifts of services, training, 
     transportation, lodging, and meals--whether provided in kind, 
     by purchase of ticket, payment in advance, or reimbursement 
     after the expense has been incurred. This definition is the 
     same as the definition of ``gift'' in the executive branch 
     gift rules.
       This subparagraph would also provide that a gift to the 
     spouse or dependent of a Member, officer, or employee (or a 
     gift to any other individual based on that individual's 
     relationship with the Member, officer, or employee) would be 
     considered a gift to the Member, officer, or employee if it 
     is given with the knowledge and acquiescence of the Member, 
     officer, or employee, and the Member, officer or employee has 
     reason to believe the gift was given because of his or her 
     official position. Something of value that is provided by one 
     person to both a Member, officer, or employee and the spouse 
     or dependent of that Member, officer, or employee, may be 
     considered two separate gifts, depending on the nature of 
     what is provided and the time and manner in which it is 
     provided. A gift (such as a wedding gift) which is given 
     jointly to both a Member, officer or employee and the spouse 
     of that Member, officer or employee and that would not be 
     appropriate under the circumstances to give to only one of 
     the two recipients by an individual who has a family or 
     personal relationship with only one of the two recipients 
     would be considered a gift to the recipient who has the 
     relationship with the donor. Such a gift may be accepted 
     under the family or personal relationship exception if the 
     gift otherwise meets the requirements of that provision.
       Subparagraph 2(c) would except certain items from the 
     prohibitions on gifts from persons other than registered 
     lobbyists, lobbying firms, and foreign agents. These 
     exceptions are similar to those contained in S. 1935 and in 
     the House amendment to S. 349.
       Excepted items would include: anything for which the 
     recipient pays the market value or does not use and promptly 
     returns; lawfully made campaign contributions and attendance 
     at political fundraising events; gifts that are provided on 
     the basis of personal or family relationships; an otherwise 
     lawful contribution to a legal expense fund; food or 
     refreshment of minimal value; a gift from another Member, 
     officer, or employee of the Senate or the House of 
     Representatives; food and lodging provided in connection with 
     a job interview, a fundraising or campaign event, or 
     resulting from outside business, employment, or other outside 
     activities of a Member, officer, or employee (or the spouse 
     thereof); pension and other benefits resulting from prior 
     employment; informational materials that are sent to the 
     office of the Member, officer, or employee; awards and prizes 
     given to competitors in contests open to the public; honorary 
     degrees and other bona fide awards; donations of home State 
     products for promotional purposes; food, refreshments, and 
     entertainment provided in a Member's home State (subject to 
     reasonable limitations to be established by the Rules 
     Committee); training provided in the interest of the Senate; 
     bequests, inheritances, and other transfers at death; gifts 
     expressly permitted by statute; anything which is paid for by 
     the Federal Government, by a State or local government, or 
     secured by the Government under a Government contract; a gift 
     of personal hospitality; free attendance at widely attended 
     events; opportunities and benefits available to all of an 
     appropriate class of the general public; and a plaque, 
     trophy, or other memento of modest value. The rule would 
     provide for waiver by the Select Committee on Ethics only in 
     unusual cases.
       This subparagraph would establish an exception for gifts 
     based on personal or family relationships. This exception 
     would not apply where the Member, officer, or employee has 
     reason to believe that, under the circumstances, the gift was 
     provided because of his or her official position and not 
     because of the personal or family relationship. For example, 
     a gift would not be considered to be based on a personal or 
     family relationship if the Member, officer, or employee has 
     reason to believe that the individual providing the item 
     intends to deduct the value of the item as a business expense 
     on the individual's tax return or to accept direct or 
     indirect reimbursement or compensation for the item from a 
     client or a firm of which the individual is a member or 
     employee. The provision would direct the Select Committee on 
     Ethics to provide guidance on the applicability of this 
     paragraph and examples of circumstances under which a gift 
     may be accepted under this exception.
       Subparagraph 2(d) would provide for participation in widely 
     attended events, such as conventions, conferences, symposia, 
     forums, panel discussions, dinners, viewings, and receptions, 
     by Members, officers and employees. Under this provision, a 
     Member, officer or employee would be permitted to accept a 
     sponsor's offer of free attendance at such an event, if he or 
     she were participating in the event as a speaker, or if 
     attendance were otherwise appropriate to the performance of 
     his or her official duties or representational function. In 
     appropriate circumstances, Members, officers and employees 
     would also be permitted to accept an offer of free attendance 
     for an accompanying individual. Free attendance would be 
     defined to include waiver of all or part of a fee or the 
     provision of food, refreshment, entertainment, and 
     instructional materials furnished as an integral part of the 
     event.
       In addition to widely attended events, subparagraph 2(d) 
     would permit a Member, officer, or employee to accept a 
     sponsor's unsolicited offer of free attendance at a charity 
     event--such as a charity dinner or a charitable golf or 
     tennis tournament. However, the provision would not permit 
     the acceptance of transportation or lodging in connection 
     with participation in such an event. The references to ``the 
     sponsor'' of an event in this subsection are intended to 
     refer to the person, entity, or entities that are primarily 
     responsible for organizing the event.
       Subparagraph 2(e) would prohibit the acceptance of a gift 
     in excess of $250 on the basis of a personal relationship or 
     personal friendship exception, unless the Select Committee on 
     Ethics makes a written determination that one of the 
     exceptions applies.
       Subparagraph 2(f) would authorize the Committee on Rules 
     and Administration to adjust the $20 limit for food and 
     refreshments to the extent necessary to adjust for inflation; 
     authorize the Select Committee on Ethics to provide guidance 
     to Members, officers and employees on reasonable steps that 
     they can take to prevent the acceptance of prohibited gifts 
     from lobbyists; and permit the recipient of a perishable gift 
     that may not be accepted under the new Rule to throw away the 
     gift or give it to an appropriate charity.
       Paragraph 3 of the new Rule XXXV would address the rules on 
     reimbursement of officially connected travel by private 
     sources. Under this provision, Members, officers and 
     employees would be prohibited from accepting travel 
     reimbursement from registered lobbyists, lobbying firms and 
     foreign agents. Members, officers and employees would be 
     permitted to accept reimbursement for travel expenses from 
     other sources for necessary expenses in appropriate 
     circumstances, as set forth in the paragraph. Any such 
     reimbursements would be deemed to be a reimbursement to the 
     Senate and not a gift prohibited by the Rule.
       Under subparagraph (a) of Paragraph 3, a Member, officer or 
     employee would be permitted to accept reimbursement, from 
     sources other than registered lobbyists and foreign agents, 
     for necessary travel expenses incurred in connection with a 
     meeting, speaking engagement, factfinding trip or similar 
     event in connection with the duties of the Member, officer or 
     employee as an officeholder. Events, the activities of which 
     are substantially recreational in nature, would not be 
     considered to be in connection with the duties of a Member, 
     officer, or employee as an officeholder. Accordingly, private 
     reimbursement of travel expenses incurred in connection with 
     charitable golf, tennis or ski tournaments, or similar 
     recreational events, would be prohibited.
       Subparagraph (b) of Paragraph 3 would set forth the 
     requirements for advance authorization of privately 
     reimbursed travel for congressional staff. Under this 
     provision, each advance authorization would be signed by the 
     Member or officer under whose direct supervision the employee 
     works and would include: the name of the Member, officer or 
     employee; the name of the person making the reimbursement; 
     the time, place and purpose of the travel; and a 
     determination that the travel is in connection with the 
     duties of the employee as an officeholder and would not 
     create the appearance that the employee is using public 
     office for private gain.
       Subparagraph (c) would set forth the requirements for 
     disclosure of expenses reimbursed. Under this provision, each 
     such disclosure would be signed by the appropriate Member or 
     officer and would include: a good faith estimate of total 
     transportation expenses reimbursed; a good faith estimate of 
     total lodging expenses reimbursed; a good faith estimate of 
     total food and refreshment expenses reimbursed; a good faith 
     estimate of any other expenses reimbursed; a determination 
     that all such expenses are necessary transportation, lodging, 
     and related expenses; and in the case of reimbursement to a 
     Member or officer, a determination that the travel is in 
     connection with the duties of the Member of officer as an 
     officeholder and would not create the appearance that the 
     Member or officer is using public office for private gain.
       Subparagraph (d) would define the term ``necessary 
     transportation, lodging, and related expenses''. Under this 
     provision, necessary expenses would be limited to expenses 
     necessary for a period not exceeding 3 days exclusive of 
     travel time within the United States or 7 days exclusive of 
     travel time outside of the United States. A Member, officer 
     or employee would be permitted to extend his or her stay 
     beyond these periods only if approved in advance by the 
     Select Committee on Ethics or at his or her own expenses. (As 
     under the current rule, travel to Alaska, Hawaii, and U.S. 
     Territories and possessions would be treated as travel 
     outside the United States.)
       Necessary expenses would be limited to expenditures for 
     transportation, lodging, conference fees and materials, and 
     food or refreshment. Necessary expenses would not include 
     expenditures for recreational activities, or entertainment 
     other than that provided to all attendees as an integral part 
     of the event. Reimbursement for travel expenses incurred on 
     behalf of either the spouse or a child of a Member, officer, 
     or employee could be accepted, subject to a determination 
     that the attendance of the spouse or child is appropriate to 
     assist in the representation of the Senate.
       Subparagraph (e) would require the Secretary of the Senate 
     to make available to the public all advance authorizations 
     and disclosures of reimbursement filed under this paragraph 
     as soon as possible after they are filed.
       Section 202. Amendment to House Rules.--Section 202 of the 
     conference amendment would amend clause 4 of rule XLIII of 
     the Rules of the House of Representatives to provide tight, 
     new restrictions on the acceptance of gifts by Members, 
     officers, and employees of the House of Representatives.
       Paragraph (a) any gift from a registered lobbyist, lobbying 
     firm, or foreign agent, knowing that such gift is provided in 
     violation of the Lobbying Disclosure Act of 1994.
       Paragraph (b) would prohibit Members, officers, and 
     employees from knowingly accepting a gift from any other 
     person (in addition to the restriction on receiving gifts 
     from registered lobbyists, lobbying firms, and foreign 
     agents), except as otherwise provided in the Rule.
       Paragraph (c) would define the term ``gift'' to include any 
     gratuity, favor, discount, entertainment, hospitality, loan, 
     forbearance, or other item having monetary value. The term 
     would include gifts of services, training, transportation, 
     lodging, and meals--whether provided in kind, by purchase of 
     ticket, payment in advance, or reimbursement after the 
     expense has been incurred. This definition is the same as the 
     definition of ``gift'' in the executive branch gift rules.
       This paragraph would also provide that a gift to the spouse 
     or dependent of a Member, officer, or employee (or a gift to 
     any other individual based on that individual's relationship 
     with the Member, officer, or employee) would be considered a 
     gift to the Member, officer or employee if it is given with 
     the knowledge and acquiescence of the Member, officer, or 
     employee, and the Member, officer or employee has reason to 
     believe the gift was given because of his or her official 
     position. Something of value that is provided by one person 
     to both a Member, officer, or employee and the spouse or 
     dependent of that Member, officer, or employee may be 
     considered two separate gifts, depending on the nature of 
     what is provided and the time and manner in which it is 
     provided. A gift (such as a wedding gift) which is given 
     jointly to both a Member, officer or employee and the spouse 
     of that Member, officer or employee and that would not be 
     appropriate under the circumstances to given to only one of 
     the two recipients by an individual who has a family or 
     personal relationship with only one of the two recipients 
     would be considered a gift to the recipient who has the 
     relationship with the donor. Such a gift may be accepted 
     under the family or personal relationship exception if the 
     gift otherwise meets the requirements of that provision.
       Paragraph (d) would except certain items from the 
     prohibitions on gifts from persons other than registered 
     lobbyists, lobbying firms, and foreign agents. These 
     exceptions are similar to those contained in S. 1935 and in 
     the House amendment to S. 349.
       Excepted items would include: anything for which the 
     recipient pays the market value or does not use and promptly 
     returns; lawfully made campaign contributions and attendance 
     at political fundraising events; gifts that are provided on 
     the basis of personal or family relationships; an otherwise 
     lawful contribution to a legal expense fund; food or 
     refreshment of minimal value; a gift from another Member, 
     officer, or employee of the Senate or the House of 
     Representatives; food and lodging provided in connection with 
     a job interview, a fundraising or campaign event, or 
     resulting from outside business, employment, or other outside 
     activities of a Member, officer, or employee (or the spouse 
     thereof); pension and other benefits resulting from prior 
     employment; informational materials that are sent to the 
     office of the Member, officer, or employee; awards and prizes 
     given to competitors in contests open to the public; honorary 
     degrees and other bona fide awards; donations of home State 
     products for promotional purposes; food, refreshments, and 
     entertainment provided in a Member's home State (subject to 
     reasonable limitations to be established by the Committee on 
     Standards of Official Conduct); training provided in the 
     interest of the House of Representatives; bequests, 
     inheritances, and other transfers at death; gifts expressly 
     permitted by statute; anything which is paid for by the 
     Federal Government, by a State or local government, or 
     secured by the Government under a Government contract; a gift 
     of personal hospitality; free attendance at widely attended 
     events; opportunities and benefits available to all of an 
     appropriate class of the general public; and a plaque, 
     trophy, or other memento of modest value. The rule would 
     provide for waiver by the Committee on Standards of Official 
     Conduct only in exceptional circumstances.
       This paragraph would establish an exception for gifts based 
     on personal or family relationships. This exception would not 
     apply where the Member, officer, or employee has reason to 
     believe that, under the circumstances, the gift was provided 
     because of his or her official position and not because of 
     the personal or family relationship. For example, a gift 
     would not be considered to be based on a personal or family 
     relationship if the Member, officer, or employee has reason 
     to believe that the individual providing the item intends to 
     deduct the value of the items as a business expense on the 
     individual's tax return or to accept direct or indirect 
     reimbursement or compensation for the item from a client or a 
     firm of which the individual is a member or employee. The 
     provision would direct the Committee on Standards of Official 
     Conduct to provide guidance on the applicability of this 
     paragraph and examples of circumstances under which a gift 
     may be accepted under this exception.
       Paragraph (e) would provide for participation in widely 
     attended events, such as conventions, conferences, symposia, 
     forums, panel discussions, dinners, viewings, and receptions, 
     by Members, officers and employees. Under this provision, a 
     Member, officer or employee would be permitted to accept a 
     sponsor's offer of free attendance at such an event, if he or 
     she were participating in the event as a speaker, or if 
     attendance were otherwise appropriate to the performance of 
     his or her official duties or representational function. In 
     appropriate circumstances, Members, officers and employees 
     would also be permitted to accept an offer of free attendance 
     for an accompanying individual. Free attendance would be 
     defined to include waiver of all or part of a fee or the 
     provision of food, refreshment, entertainment, and 
     instructional materials furnished as an integral part of the 
     event.
       In addition to widely attended events, paragraph (e) would 
     permit a Member, officer, or employee to accept a sponsor's 
     unsolicited offer of free attendance at a charity event--such 
     as a charity dinner or a charitable golf or tennis 
     tournament. However, the provision would not permit the 
     acceptance of transportation or lodging in connection with 
     participation in such an event. The references to ``the 
     sponsor'' of an event in this subsection are intended to 
     refer to the person, entity, or entities that are primarily 
     responsible for organizing the event.
       Paragraph (f) would prohibit the acceptance of a gift in 
     excess of $250 on the basis of a personal relationship or 
     personal friendship exception, unless the Committee on 
     Standards of Official Conduct makes a written determination 
     that one of the exceptions applies.
       Paragraph (g) would authorize the Committee on Standards of 
     Official Conduct to adjust the $20 limit for food and 
     refreshments to the extent necessary to adjust for inflation; 
     authorize the Committee to provide guidance to Members, 
     officers and employees on reasonable steps that they can take 
     to prevent the acceptance of prohibited gifts from lobbyists; 
     and permit the recipient of a perishable gift that may not be 
     accepted under the new Rule to throw away the gift or give it 
     to an appropriate charity.
       Paragraph (h) would address the rules on reimbursement of 
     officially connected travel by private sources. Under this 
     provision, Members, officers and employees would be 
     prohibited from accepting travel reimbursement from 
     registered lobbyists, lobbying firms and foreign agents. 
     Members, officers and employees would be permitted to accept 
     reimbursement for travel expenses from other sources for 
     necessary expenses in appropriate circumstances, as set forth 
     in the paragraph. Any such reimbursements would be deemed to 
     be a reimbursement to the House of Representatives and not a 
     gift prohibited by the Rule.
       Under subparagraph (1), a Member, officer or employee would 
     be permitted to accept reimbursement, from sources other than 
     registered lobbyists and foreign agents, for necessary travel 
     expenses incurred in connection with a meeting, speaking 
     engagement, factfinding trip or similar event in connection 
     with the duties of the Member, officer or employee as an 
     officeholder. Events, the activities of which are 
     substantially recreational in nature, would not be considered 
     to be in connection with the duties of a Member, officer, or 
     employee as an officeholder. Accordingly, private 
     reimbursement of travel expenses incurred in connection with 
     charitable golf, tennis or ski tournaments, or similar 
     recreational events, would be prohibited.
       Subparagraph (2) would set forth the requirements for 
     advance authorization of privately reimbursed travel for 
     congressional staff. Under this provision, each advance 
     authorization would be signed by the Member or officer under 
     whose direct supervision the employee works and would 
     include: the name of the Member, officer or employee; the 
     name of the person making the reimbursement; the time, place 
     and purpose of the travel; and a determination that the 
     travel is in connection with the duties of the employee as an 
     officer holder and would not create the appearance that the 
     employee is using public office for private gain.
       Subparagraph (3) would set forth the requirements for 
     disclosure of expenses reimbursed. Under this provision, each 
     such disclosure would be signed by the appropriate Member or 
     officer and would include: a good faith estimate of total 
     transportation expenses reimbursed; a good faith estimate of 
     total lodging expenses reimbursed; a good faith estimate of 
     total food and refreshment expenses reimbursed; a good faith 
     estimate of any other expenses reimbursed; a determination 
     that all such expenses are necessary transportation, lodging, 
     and related expenses; and in the case of reimbursement to a 
     Member or officer, a determination that the travel is in 
     connection with the duties of the Member or officer as an 
     office holder and would not create the appearance that the 
     Member or officer is using public office for private gain.
       Subparagraph (4) would define the term ``necessary 
     transportation, lodging, and related expenses''. Under this 
     provision, necessary expenses would be limited to expenses 
     necessary for a period not exceeding 4 days including travel 
     time within the United States or 7 days exclusive of travel 
     time outside of the United States and within 24 hours before 
     or after participation in an event in the United States or 
     within 48 hours before or after participation in an event 
     outside the United States. A Member, officer or employee 
     would be permitted to extend his or her stay beyond these 
     periods only if approved in advance by the Committee on 
     Standards of Official Conduct or at his or her own expense. 
     (As under the current rule, travel to Alaska, Hawaii, and 
     U.S. territories and possessions would be treated as travel 
     outside the United States.)
       Necessary expenses would be limited to expenditures for 
     transportation, lodging, conference fees and materials, and 
     food or refreshment. Necessary expenses would not include 
     expenditures for recreational activities or entertainment 
     other than that provided to all attendees as an integral part 
     of the event. Reimbursement for travel expenses incurred on 
     behalf of either the spouse or a child of a Member, officer, 
     or employee could be accepted, subject to a determination 
     that the attendance of the spouse or child is appropriate to 
     assist in the representation of the House of Representatives.
       Subparagraph (5) would require the Clerk of the House to 
     make available to the public all advance authorizations and 
     disclosures of reimbursement filed under this paragraph as 
     soon as possible after they are filed.
       Section 203. Miscellaneous Provisions.--Section 203 of the 
     conference amendment contains certain miscellaneous 
     provisions relative to the acceptance of gifts.
       Subsection 203(a): Amendments to the Ethics in Government 
     Act.--Section 203(e) would amend the Ethics in Government Act 
     to provide that travel reimbursements properly reported under 
     the new Senate and House gift rules do not also have to be 
     reported in personal financial disclosure statements.
       Subsection 203(b): Repeal of Obsolete Provision.--Section 
     203(b) would repeal Section 901 of the Ethics Reform Act of 
     1989, which contains the current Senate gift rules and would 
     be superseded by the enactment of this bill.
       Subsection 203(c): Senate Provisions.--Subsection 203(c) 
     contains miscellaneous provisions applicable to the Senate. 
     Paragraph (1) would authorize the Committee on Rules and 
     Administration to accept gifts on behalf of the Senate, in 
     appropriate circumstances. Nothing in this paragraph would 
     restrict any authority that any other Committee or office of 
     the Congress may have under existing law. Paragraph (2) would 
     provide that the rules on acceptance of food, refreshments, 
     and entertainment provided to a Member or an employee of a 
     Member in the Member's home State prior to the adoption of 
     reasonable limitations by the Committee on Rules and 
     Administration shall be the rules in effect on the day before 
     the effective date of the new gift rules.
       Subsection 203(d): House Provisions.--Subsection 204(d) 
     would provide that the rules on acceptance of food, 
     refreshments, and entertainment provided to a Member or an 
     employee of a Member in the Member's home State prior to the 
     adoption of reasonable limitations by the Committee on 
     Standards of Official Conduct shall be the rules in effect on 
     the day before the effective date of the new gift rules.
       Subsection 204. Exercise of Congressional Rulemaking 
     Powers.--Section 204 of the conference amendment would 
     provide that the sections of this Title amending the 
     congressional gift rules are an exercise of the congressional 
     rulemaking power.
       Section 205. Effective Date.--Section 205 of the conference 
     amendment would provide that Title II of the conference 
     amendment shall become effective on May 31, 1995. The 
     conferees agreed to this date to provide time for the Senate 
     Select Committee on Ethics and the House Committee on 
     Standards of Official Conduct to develop guidance, as 
     required by the bill.

     John Bryant,
     Dan Glickman,
     Mike Synar,
                                Managers on the Part of the House.

     John Glenn,
     Carl Levin,
     Daniel Akaka,
     Bill Cohen,
     Ted Stevens,
     Managers on the Part of the Senate.

                          ____________________