[Federal Register Volume 68, Number 44 (Thursday, March 6, 2003)]
[Rules and Regulations]
[Pages 10912-10919]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-5145]



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Part VI





Department of Homeland Security





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Office of the Secretary



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6 CFR Part 9



Restrictions Upon Lobbying; Interim Final Rule

  Federal Register / Vol. 68, No. 44 / Thursday, March 6, 2003 / Rules 
and Regulations  

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DEPARTMENT OF HOMELAND SECURITY

Office of the Secretary

6 CFR Part 9

RIN Number 1601-AA12


Restrictions Upon Lobbying

AGENCY: Office of the Secretary, Homeland Security.

ACTION: Interim final rule.

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SUMMARY: The interim final rule prohibits use of appropriated funds by 
recipients of a federal contract, grant, loan, or cooperative agreement 
to influence any federal agency or Congress in connection with federal 
awards and establishes the Department of Homeland Security procedures 
for enforcement of this prohibition.

DATES: This interim final rule is effective March 6, 2003. Written 
comments may be submitted by April 7, 2003.

ADDRESSES: Submit written comments (preferably an original and three 
copies) to the Associate General Counsel (General Law), Department of 
Homeland Security, Washington, DC 20528.

FOR FURTHER INFORMATION CONTACT: Robert Coyle, (202) 282-8410 ( not a 
toll free call).

SUPPLEMENTARY INFORMATION: 

I. Background

    On November 25, 2002, the President signed into law the Homeland 
Security Act (Pub. L. 107-296) (``Act''), which created the new 
Department of Homeland Security (DHS). Pursuant to the provisions of 
the Act, the new Department came into existence on January 24, 2003.
    In order to establish procedures to facilitate the operations of 
the new Department, DHS is issuing an initial series of proposed and 
interim final regulations.

II. The Interim Final Rule

    This interim final rule establishes those procedures necessary to 
fulfill departmental obligations to impose restrictions upon lobbying. 
Except to the extent a Department component has adopted separate 
guidance under 31 U.S.C. 1352, the provisions of this subpart shall 
apply to each component of the Department.
    This regulation establishes procedures concerning general 
prohibitions on lobbying and the use of certain appropriated funds and 
the appropriate penalties for violations of those prohibitions. The 
purpose of the procedures is to ensure that neither the recipients of 
appropriated funds nor the employees of the Department of Homeland 
Security inappropriately solicit for action by Congress.

III. Procedural Requirements

    Because the DHS came into existence on January 24, 2003, it is 
necessary to promptly establish procedures to facilitate the operations 
of the new Department. Furthermore, this interim final rule parallels 
the existing operational regulations of other cabinet-level agencies to 
impose restrictions upon lobbying, similar regulations were applicable 
to components being transferred to DHS from other agencies, and the 
regulations are only being technically adapted for DHS, imposing no 
substantive requirement that is different from the existing regulations 
of other agencies. Accordingly, the Department has determined that 
notice and public procedure are impracticable and contrary to the 
public interest pursuant to 5 U.S.C. 553(b)(B). For the same reasons, 
the Department has determined that this interim rule should be issued 
without a delayed effective date pursuant to 5 U.S.C. 553(d)(3).
    It has been determined that this rulemaking is not a significant 
regulatory action for the purposes of Executive Order 12866. 
Accordingly, a regulatory impact analysis is not required.
    Because no notice of proposed rulemaking is required, the 
provisions of the Regulatory Flexibility Act (5 U.S.C. chapter 6) do 
not apply.

List of Subjects in 6 CFR Part 9

    Government contracts, Grant programs, Loan programs, Lobbying, 
Penalties, Reporting and recordkeeping requirements.

    Dated: February 28, 2003.
Tom Ridge,
Secretary of Homeland Security.

Authority and Issuance

    For the reasons set forth above, 6 CFR chapter I is amended by 
adding part 9 to read as follows:

PART 9--RESTRICTIONS UPON LOBBYING

Subpart A--General
Sec.
9.1 Conditions on use of funds.
9.2 Definitions.
9.3 Certification and disclosure.
Subpart B--Activities by Own Employees
9.11 Agency and legislative liaison.
9.15 Professional and technical services.
9.20 Reporting.
Subpart C--Activities by Other than Own Employees
9.23 Professional and technical services.
Subpart D--Penalties and Enforcement
9.31 Penalties.
9.32 Penalty procedures.
9.33 Enforcement.
Subpart E--Exemptions
9.41 Secretary of Defense.
Subpart F--Agency Reports
9.51 Semi-annual compilation.
9.52 Inspector General report.

Appendix A to Part 9--Certification Regarding Lobbying
Appendix B to Part 9--Disclosure Form to Report Lobbying

    Authority: Sec. 319, Pub. L. 101-121, 103 Stat. 750 (31 U.S.C. 
1352); Pub. L. 107-296, 116 Stat. 2135 (6 U.S.C. 1 et seq.); 5 
U.S.C. 301.

Subpart A--General


Sec.  9.1  Conditions on use of funds.

    (a) No appropriated funds may be expended by the recipient of a 
Federal contract, grant, loan, or cooperative agreement to pay any 
person for influencing or attempting to influence an officer or 
employee of any agency, a Member of Congress, an officer or employee of 
Congress, or an employee of a Member of Congress in connection with any 
of the following covered Federal actions: the awarding of any Federal 
contract, the making of any Federal grant, the making of any Federal 
loan, the entering into of any cooperative agreement, and the 
extension, continuation, renewal, amendment, or modification of any 
Federal contract, grant, loan, or cooperative agreement.
    (b) Each person who requests or receives from an agency a Federal 
contract, grant, loan, or cooperative agreement shall file with that 
agency a certification, set forth in Appendix A to this part, that the 
person has not made, and will not make, any payment prohibited by 
paragraph (a) of this section.
    (c) Each person who requests or receives from an agency a Federal 
contract, grant, loan, or a cooperative agreement shall file with that 
agency a disclosure form, set forth in Appendix B to this part, if such 
person has made or has agreed to make any payment using non 
appropriated funds (to include profits from any covered Federal 
action), which would be prohibited under paragraph (a) of this section 
if paid for with appropriated funds.
    (d) Each person who requests or receives from an agency a 
commitment

[[Page 10913]]

providing for the United States to insure or guarantee a loan shall 
file with that agency a statement, set forth in Appendix A to this 
part, whether that person has made or has agreed to make any payment to 
influence or attempt to influence an officer or employee of any agency, 
a Member of Congress, an officer or employee of Congress, or an 
employee of a Member of Congress in connection with that loan insurance 
or guarantee.
    (e) Each person who requests or receives from an agency a 
commitment providing for the United States to insure or guarantee a 
loan shall file with that agency a disclosure form, set forth in 
Appendix B to this part, if that person has made or has agreed to make 
any payment to influence or attempt to influence an officer or employee 
of any agency, a Member of Congress, an officer or employee of 
Congress, or an employee of a Member of Congress in connection with 
that loan insurance or guarantee.


Sec.  9.2  Definitions.

    For purposes of this part:
    (a) Agency has the same meaning as provided in 5 U.S.C. 552(f), and 
includes Federal executive departments and agencies as well as 
independent regulatory commissions and Government corporations, as 
defined in 31 U.S.C. 9101(1).
    (b) The term covered Federal action:
    (1) Means any of the following Federal actions:
    (i) The awarding of any Federal contract;
    (ii) The making of any Federal grant;
    (iii) The making of any Federal loan;
    (iv) The entering into of any cooperative agreement; and
    (v) The extension, continuation, renewal, amendment, or 
modification of any Federal contract, grant, loan, or cooperative 
agreement.
    (2) Does not include receiving from an agency a commitment 
providing for the United States to insure or guarantee a loan. Loan 
guarantees and loan insurance are addressed independently within this 
part.
    (c) Federal contract means an acquisition contract awarded by an 
agency, including those subject to the Federal Acquisition Regulation 
(FAR) (48 CFR Chapter 1) and any other acquisition contract for real or 
personal property or services not subject to the FAR.
    (d) Federal cooperative agreement means a cooperative agreement 
entered into by an agency.
    (e) Federal grant means an award of financial assistance in the 
form of money, or property in lieu of money, by the Federal Government 
or a direct appropriation made by law to any person. The term does not 
include technical assistance that provides services instead of money, 
or other assistance in the form of revenue sharing, loans, loan 
guarantees, loan insurance, interest subsidies, insurance, or direct 
United States cash assistance to an individual.
    (f) Federal loan means a loan made by an agency. The term does not 
include loan guarantee or loan insurance.
    (g) Indian tribe and tribal organization have the meaning provided 
in section 4 of the Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450B). Alaskan Natives are included under the definition 
of Indian tribe in that Act.
    (h) Influencing or attempting to influence means making, with the 
intent to influence, any communication to or appearance before an 
officer or employee or any agency, a Member of Congress, an officer or 
employee of Congress, or an employee of a Member of Congress in 
connection with any covered Federal action.
    (i) Loan guarantee or loan insurance means an agency's guarantee or 
insurance of a loan made by a person.
    (j) Local government means a unit of government in a State and, if 
chartered, established, or otherwise recognized by a State for the 
performance of a governmental duty, including a local public authority, 
a special district, an intrastate district, a council of governments, a 
sponsor group representative organization, and any other 
instrumentality of a local government.
    (k) Officer or employee of an agency includes the following 
individuals who are employed by an agency:
    (1) An individual appointed to a position in the Government 
pursuant to title 5 of the United States Code, including any position 
by temporary appointment or any appointment as an acting official as 
outlined in section 1511(c) of the Homeland Security Act;
    (2) A member of the uniformed services as defined in 37 U.S.C. 
101(3);
    (3) A special Government employee as defined in section 18 U.S.C. 
202; and
    (4) An individual who is a member of a Federal advisory committee, 
as defined by the Federal Advisory Committee Act at 5 U.S.C. App. 2.
    (l) Person means an individual, corporation, company, association, 
authority, firm, partnership, society, State, and local government, 
regardless of whether such entity is operated for profit or not for 
profit. This term excludes an Indian tribe, tribal organization, or any 
other Indian organization with respect to expenditures specifically 
permitted by other Federal law.
    (m) Reasonable compensation means, with respect to a regularly 
employed officer or employee of any person, compensation that is 
consistent with the normal compensation for such officer or employee 
for work that is not furnished to, not funded by, or not furnished in 
cooperation with the Federal Government.
    (n) Reasonable payment means, with respect to professional and 
other technical services, a payment in an amount that is consistent 
with the amount normally paid for such services in the private sector.
    (o) Recipient includes all contractors, subcontractors at any tier, 
and sub grantees at any tier of the recipient of funds received in 
connection with a Federal contract, grant, loan, or cooperative 
agreement. The term excludes an Indian tribe, tribal organization, or 
any other Indian organization with respect to expenditures specifically 
permitted by other Federal law.
    (p) Regularly employed means, with respect to an officer or 
employee of a person requesting or receiving a Federal contract, grant, 
loan, or cooperative agreement or a commitment providing for the United 
States to insure or guarantee a loan, an officer or employee who is 
employed by such person for at least 130 working days within one year 
immediately preceding the date of the submission that initiates agency 
consideration of such person for receipt of such contract, grant, loan, 
cooperative agreement, loan insurance commitment, or loan guarantee 
commitment. An officer or employee who is employed by such person for 
less than 130 working days within one year immediately preceding the 
date of the submission that initiates agency consideration of such 
person shall be considered to be regularly employed as soon as he or 
she is employed by such person for 130 working days.
    (q) State means a State of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico, a territory or possession of 
the United States, an agency or instrumentality of a State, and a 
multi-State, regional, or interstate entity having governmental duties 
and powers.


Sec.  9.3  Certification and disclosure.

    (a) Each person shall file a certification, and a disclosure form, 
if required, with each submission that initiates agency consideration 
of such person for:

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    (1) Award of a Federal contract, grant, or cooperative agreement 
exceeding $100,000; or
    (2) An award of a Federal loan or a commitment providing for the 
United States to insure or guarantee a loan exceeding $150,000.
    (b)(1) Each person shall file a certification, and a disclosure 
form, if required, upon receipt by such person of:
    (i) A Federal contract, grant, or cooperative agreement exceeding 
$100,000; or
    (ii) A Federal loan or a commitment providing for the United States 
to insure or guarantee a loan exceeding $150,000.
    (2) A filing described in paragraph (b)(1) of this section shall 
not be required if such person previously filed a certification, and a 
disclosure form required under paragraph (a) of this section.
    (c) Each person shall file a disclosure form at the end of each 
calendar quarter in which there occurs any event that requires 
disclosure or that materially affects the accuracy of the information 
contained in any disclosure form previously filed by such person under 
paragraph (a) or (b) of this section. An event that materially affects 
the accuracy of the information reported includes:
    (1) A cumulative increase of $25,000 or more in the amount paid or 
expected to be paid for influencing or attempting to influence a 
covered Federal action;
    (2) A change in the person(s) or individual(s) influencing or 
attempting to influence a covered Federal action; or
    (3) A change in the officer(s), employee(s), or Member(s) contacted 
to influence or attempt to influence a covered Federal action.
    (d)(1) The requirements of paragraph (d)(2) of this section apply 
to any person who requests or receives from a person referred to in 
paragraph (a) or (b) of this section:
    (i) A subcontract exceeding $100,000 at any tier under a Federal 
contract;
    (ii) A subgrant, contract, or subcontract exceeding $100,000 at any 
tier under a Federal grant;
    (iii) A contract or subcontract exceeding $100,000 at any tier 
under a Federal loan exceeding $150,000; or
    (iv) A contract or subcontract exceeding $100,000 at any tier under 
a Federal cooperative agreement.
    (2) A person described in paragraph (d)(1) of this section shall 
file a certification, and a disclosure form, if required, to the next 
tier.
    (e) All disclosure forms, but not certifications, shall be 
forwarded from tier to tier until received by the person referred to in 
paragraph (a) or (b) of this section. That person shall forward all 
disclosure forms to the agency.
    (f) Any certification or disclosure form filed under paragraph (e) 
of this section shall be treated as a material representation of fact 
upon which all receiving tiers shall rely. All liability arising from 
an erroneous representation shall be borne solely by the tier filing 
that representation and shall not be shared by any tier to which the 
erroneous representation is forwarded. Submitting an erroneous 
certification or disclosure constitutes a failure to file the required 
certification or disclosure, respectively. If a person fails to file a 
required certification or disclosure, the United States may pursue all 
available remedies, including those authorized by section 31 U.S.C. 
1352.
    (g) No reporting is required for an activity paid for with 
appropriated funds if that activity is allowable under either subpart B 
or C of this part.

Subpart B--Activities by Own Employees


Sec.  9.11  Agency and legislative liaison.

    (a) The prohibition on the use of appropriated funds, in Sec.  
9.1(a), does not apply in the case of a payment of reasonable 
compensation made to an officer or employee of a person requesting or 
receiving a Federal contract, grant, loan, or cooperative agreement if 
the payment is for agency and legislative liaison activities not 
directly related to a covered Federal action.
    (b) For purposes of paragraph (a) of this section, providing any 
information specifically requested by an agency or Congress is 
allowable at any time.
    (c) For purposes of paragraph (a) of this section, the following 
agency and legislative liaison activities are allowable at any time 
only where they are not related to a specific solicitation for any 
covered Federal action:
    (1) Discussing with an agency (including individual demonstrations) 
the qualities and characteristics of the person's products or services, 
conditions or terms of sale, and service capabilities; and
    (2) Technical discussions and other activities regarding the 
application or adaptation of the person's products or services for an 
agency's use.
    (d) For purposes of paragraph (a) of this section, the following 
agencies and legislative liaison activities are allowable only where 
they are prior to formal solicitation of any covered Federal action:
    (1) Providing any information not specifically requested but 
necessary for an agency to make an informed decision about initiation 
of a covered Federal action;
    (2) Technical discussions regarding the preparation of an 
unsolicited proposal prior to its official submission; and
    (3) Capability presentations by persons seeking awards from an 
agency pursuant to the provisions of the Small Business Act, as 
amended.
    (e) Only those activities expressly authorized by this section are 
allowable under this section.


Sec.  9.15  Professional and technical services.

    (a) The prohibition on the use of appropriated funds, in Sec.  
9.1(a), does not apply in the case of a payment of reasonable 
compensation made to an officer or employee of a person requesting or 
receiving a Federal contract, grant, loan, or cooperative agreement or 
an extension, continuation, renewal, amendment, or modification of a 
Federal contract, grant, loan, or cooperative agreement if payment is 
for professional or technical services rendered directly in the 
preparation, submission, or negotiation of any bid, proposal, or 
application for that Federal contract, grant, loan, or cooperative 
agreement or for meeting requirements imposed by or pursuant to law as 
a condition for receiving that Federal contract, grant, loan, or 
cooperative agreement.
    (b) For purposes of paragraph (a) of this section, professional and 
technical services shall be limited to advice and analysis directly 
applying any professional or technical discipline. For example, 
drafting of a legal document accompanying a bid or proposal by a lawyer 
is allowable. Similarly, technical advice provided by an engineer on 
the performance or operational capability of a piece of equipment 
rendered directly in the negotiation of a contract is allowable. 
However, communications with the intent to influence made by a 
professional (such as a licensed lawyer) or a technical person (such as 
a licensed accountant) are not allowable under this section unless they 
provide advice and analysis directly applying their professional or 
technical expertise and unless the advice or analysis is rendered 
directly and solely in the preparation, submission or negotiation of a 
covered Federal action. Thus, for example, communications with the 
intent to influence made by a lawyer that do not provide legal advice 
or analysis directly and solely related to the legal aspects of his or 
her client's proposal, but generally advocate one proposal over another 
are not allowable under this section because the lawyer is not 
providing professional legal services.

[[Page 10915]]

Similarly, communications with the intent to influence made by an 
engineer providing an engineering analysis prior to the preparation or 
submission of a bid or proposal are not allowable under this section 
since the engineer is providing technical services but not directly in 
the preparation, submission or negotiation of a covered Federal action.
    (c) Requirements imposed by or pursuant to law as a condition for 
receiving a covered Federal award include those required by law or 
regulation, or reasonably expected to be required by law or regulation, 
and any other requirements in the actual award documents.
    (d) Only those services expressly authorized by this section are 
allowable under this section.


Sec.  9.20  Reporting.

    No reporting is required with respect to payments of reasonable 
compensation made to regularly employed officers or employees of a 
person.

Subpart C--Activities by Other than Own Employees


Sec.  9.23  Professional and technical services.

    (a) The prohibition on the use of appropriated funds, in Sec.  
9.1(a), does not apply in the case of any reasonable payment to a 
person, other than an officer or employee of a person requesting or 
receiving a covered Federal action, if the payment is for professional 
or technical services rendered directly in the preparation, submission, 
or negotiation of any bid, proposal, or application for that Federal 
contract, grant, loan, or cooperative agreement or for meeting 
requirements imposed by or pursuant to law as a condition for receiving 
that Federal contract, grant, loan, or cooperative agreement.
    (b) The reporting requirements in Sec.  9.3(a) and (b) regarding 
filing a disclosure form by each person, if required, shall not apply 
with respect to professional or technical services rendered directly in 
the preparation, submission, or negotiation of any commitment providing 
for the United States to insure or guarantee a loan.
    (c) For purposes of paragraph (a) of this section, professional and 
technical services shall be limited to advice and analysis directly 
applying any professional or technical discipline. For example, 
drafting of a legal document accompanying a bid or proposal by a lawyer 
is allowable. Similarly, technical advice provided by an engineer on 
the performance or operational capability of a piece of equipment 
rendered directly in the negotiation of a contract is allowable. 
However, communications with the intent to influence made by a 
professional (such as a licensed lawyer) or a technical person (such as 
a licensed accountant) are not allowable under this section unless they 
provide advice and analysis directly applying their professional or 
technical expertise and unless the advice or analysis is rendered 
directly and solely in the preparation, submission or negotiation of a 
covered Federal action. Thus, for example, communications with the 
intent to influence made by a lawyer that do not provide legal advice 
or analysis directly and solely related to the legal aspects of his or 
her client's proposal, but generally advocate one proposal over another 
are not allowable under this section because the lawyer is not 
providing professional legal services. Similarly, communications with 
the intent to influence made by an engineer providing an engineering 
analysis prior to the preparation or submission of a bid or proposal 
are not allowable under this section since the engineer is providing 
technical services but not directly in the preparation, submission or 
negotiation of a covered Federal action.
    (d) Requirements imposed by or pursuant to law as a condition for 
receiving a covered Federal action include those required by law or 
regulation, or reasonably expected to be required by law or regulation, 
and any other requirements in the actual award documents.
    (e) Persons other than officers or employees of a person requesting 
or receiving a covered Federal action include consultants and trade 
associations.
    (f) Only those services expressly authorized by this section are 
allowable under this section.

Subpart D--Penalties and Enforcement


Sec.  9.31  Penalties.

    (a) Any person who makes an expenditure prohibited herein shall be 
subject to a civil penalty of not less than $10,000 and not more than 
$100,000 for each such expenditure.
    (b) Any person who fails to file or amend the disclosure form (see 
Appendix B to this part) to be filed or amended if required herein, 
shall be subject to a civil penalty of not less than $10,000 and not 
more than $100,000 for each such failure.
    (c) A filing or amended filing on or after the date on which an 
administrative action for the imposition of a civil penalty is 
commenced does not prevent the imposition of such civil penalty for a 
failure occurring before that date. An administrative action is 
commenced with respect to a failure when an investigating official 
determines in writing to commence an investigation of an allegation of 
such failure.
    (d) In determining whether to impose a civil penalty, and the 
amount of any such penalty, by reason of a violation by any person, the 
agency shall consider the nature, circumstances, extent, and gravity of 
the violation, the effect on the ability of such person to continue in 
business, any prior violations by such person, the degree of 
culpability of such person, the ability of the person to pay the 
penalty, and such other matters as may be appropriate.
    (e) First offenders under paragraphs (a) or (b) of this section 
shall be subject to a civil penalty of $10,000, absent aggravating 
circumstances. Second and subsequent offenses by persons shall be 
subject to an appropriate civil penalty between $10,000 and $100,000, 
as determined by the agency head or his or her designee.
    (f) An imposition of a civil penalty under this section does not 
prevent the United States from seeking any other remedy that may apply 
to the same conduct that is the basis for the imposition of such civil 
penalty.


Sec.  9.32  Penalty procedures.

    Agencies shall impose and collect civil penalties pursuant to the 
provisions of the Program Fraud and Civil Remedies Act, 31 U.S.C. 3803 
(except subsection (c)), 3804, 3805, 3806, 3807, 3808, and 3812, 
insofar as these provisions are not inconsistent with the requirements 
in this part.


Sec.  9.33  Enforcement.

    The head of each agency shall take such actions as are necessary to 
ensure that the provisions herein are vigorously implemented and 
enforced in that agency.

Subpart E--Exemptions


Sec.  9.41  Secretary of Defense.

    (a) The Secretary of Defense may exempt, on a case-by-case basis, a 
covered Federal action from the prohibition whenever the Secretary 
determines, in writing, that such an exemption is in the national 
interest. The Secretary shall transmit a copy of each such written 
exemption to Congress immediately after making such a determination.
    (b) The Department of Defense may issue supplemental regulations to 
implement paragraph (a) of this section.

[[Page 10916]]

Subpart F--Agency Reports


Sec.  9.51  Semi-annual compilation.

    (a) The head of each agency shall collect and compile the 
disclosure reports (see Appendix B to this part) and, on May 31 and 
November 30 of each year, submit to the Secretary of the Senate and the 
Clerk of the House of Representatives a report containing a compilation 
of the information contained in the disclosure reports received during 
the six-month period ending on March 31 or September 30, respectively, 
of that year.
    (b) The report, including the compilation, shall be available for 
public inspection 30 days after receipt of the report by the Secretary 
and the Clerk.
    (c) Information that involves intelligence matters shall be 
reported only to the Select Committee on Intelligence of the Senate, 
the Permanent Select Committee on Intelligence of the House of 
Representatives, and the Committees on Appropriations of the Senate and 
the House of Representatives in accordance with procedures agreed to by 
such committees. Such information shall not be available for public 
inspection.
    (d) Information that is classified under Executive Order 12356 or 
any successor order shall be reported only to the Committee on Foreign 
Relations of the Senate and the Committee on Foreign Affairs of the 
House of Representatives or the Committees on Armed Services of the 
Senate and the House of Representatives (whichever such committees have 
jurisdiction of matters involving such information) and to the 
Committees on Appropriations of the Senate and the House of 
Representatives in accordance with procedures agreed to by such 
committees. Such information shall not be available for public 
inspection.
    (e) Agencies shall keep the originals of all disclosure reports in 
the official files of the agency.


Sec.  9.52  Inspector General report.

    (a) The Inspector General, or other official as specified in 
paragraph (b) of this section, of each agency shall prepare and submit 
to Congress each year an evaluation of the compliance of that agency 
with, and the effectiveness of, the requirements in this part. The 
evaluation may include any recommended changes that may be necessary to 
strengthen or improve the requirements.
    (b) In the case of an agency that does not have an Inspector 
General, the agency official comparable to an Inspector General shall 
prepare and submit the annual report, or, if there is no such 
comparable official, the head of the agency shall prepare and submit 
the annual report.
    (c) The annual report shall be submitted at the same time the 
agency submits its annual budget justifications to Congress.
    (d) The annual report shall include the following: All alleged 
violations relating to the agency's covered Federal actions during the 
year covered by the report, the actions taken by the head of the agency 
in the year covered by the report with respect to those alleged 
violations and alleged violations in previous years, and the amounts of 
civil penalties imposed by the agency in the year covered by the 
report.

Appendix A to Part 9--Certification Regarding Lobbying

Certification for Contracts, Grants, Loans, and Cooperative Agreements

I. The undersigned certifies, to the best of his or her knowledge 
and belief, that:

    (1) No Federal appropriated funds have been paid or will be 
paid, by or on behalf of the undersigned, to any person for 
influencing or attempting to influence an officer or employee of an 
agency, a Member of Congress, an officer or employee of Congress, or 
an employee of a Member of Congress in connection with the awarding 
of any Federal contract, the making of any Federal grant, the making 
of any Federal loan, the entering into of any cooperative agreement, 
and the extension, continuation, renewal, amendment, or modification 
of any Federal contract, grant, loan, or cooperative agreement.
    (2) If any funds other than Federal appropriated funds have been 
paid or will be paid to any person for influencing or attempting to 
influence an officer or employee of any agency, a Member of 
Congress, an officer or employee of Congress, or an employee of a 
Member of Congress in connection with this Federal contract, grant, 
loan, or cooperative agreement, the undersigned shall complete and 
submit Standard Form--LLL, ``Disclosure Form to Report Lobbying,'' 
in accordance with its instructions.
    (3) The undersigned shall require that the language of this 
certification be included in the award documents for all sub awards 
at all tiers (including subcontracts, subgrants, and contracts under 
grants, loans, and cooperative agreements) and that all 
subrecipients shall certify and disclose accordingly.
This certification is a material representation of fact upon which 
reliance was placed when this transaction was made or entered into.
Submission of this certification is a prerequisite for making or 
entering into this transaction imposed by section 31 U.S.C. 1352. 
Any person who fails to file the required certification shall be 
subject to a civil penalty of not less than $10,000 and not more 
than $100,000 for each such failure.
II. Statement for Loan Guarantees and Loan Insurance:
The undersigned states, to the best of his or her knowledge and 
belief, that:

    If any funds have been paid or will be paid to any person for 
influencing or attempting to influence an officer or employee of any 
agency, a Member of Congress, an officer or employee of Congress, or 
an employee of a Member of Congress in connection with this 
commitment providing for the United States to insure or guarantee a 
loan, the undersigned shall complete and submit Standard Form-LLL, 
``Disclosure Form to Report Lobbying,'' in accordance with its 
instructions.

Submission of this statement is a prerequisite for making or 
entering into this transaction imposed by 31 U.S.C. 1352. Any person 
who fails to file the required statement shall be subject to a civil 
penalty of not less than $10,000 and not more than $100,000 for each 
such failure.

Appendix B to Part 9--Disclosure Form to Report Lobbying

    [Approved by OMB 0348-0046]
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[FR Doc. 03-5145 Filed 3-5-03; 8:45 am]
BILLING CODE 4410-10-C