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109th Congress                                            Rept. 109-439
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part I

======================================================================



 
                      LOBBYING ACCOUNTABILITY AND 
                        TRANSPARENCY ACT OF 2006

                                _______
                                

                 April 25, 2006.--Ordered to be printed

                                _______
                                

 Mr. Sensenbrenner, from the Committee on the Judiciary, submitted the 
                               following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 4975]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on the Judiciary, to whom was referred the bill 
(H.R. 4975) to provide greater transparency with respect to 
lobbying activities, and for other purposes, having considered 
the same, reports favorably thereon with an amendment and 
recommends that the bill as amended do pass.

                                CONTENTS

                                                                   Page
The Amendment....................................................     2
Purpose and Summary..............................................    16
Background and Need for the Legislation..........................    17
Hearings.........................................................    18
Committee Consideration..........................................    18
Vote of the Committee............................................    18
Committee Oversight Findings.....................................    20
New Budget Authority and Tax Expenditures........................    20
Congressional Budget Office Cost Estimate........................    20
Performance Goals and Objectives.................................    24
Constitutional Authority Statement...............................    25
Section-by-Section Analysis and Discussion.......................    25
Changes in Existing Law Made by the Bill, as Reported............    27
Markup Transcript................................................    48
Dissenting Views.................................................   153

                             The Amendment

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Lobbying 
Accountability and Transparency Act of 2006''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.

                 TITLE I--ENHANCING LOBBYING DISCLOSURE

Sec. 101. Quarterly filing of lobbying disclosure reports.
Sec. 102. Electronic filing of lobbying registrations and disclosure 
reports.
Sec. 103. Public database of lobbying disclosure information.
Sec. 104. Disclosure by registered lobbyists of past executive branch 
and congressional employment.
Sec. 105. Disclosure of lobbyist contributions and gifts.
Sec. 106. Increased penalty for failure to comply with lobbying 
disclosure requirements.
Sec. 107. Requiring lobbyists to file reports on solicitations and 
transfers of contributions for candidates.
Sec. 108. GAO study of employment contracts of lobbyists.

                  TITLE II--SLOWING THE REVOLVING DOOR

Sec. 201. Notification of post-employment restrictions.
Sec. 202. Disclosure by Members of the House of Representatives of 
employment negotiations.
Sec. 203. Wrongfully influencing, on a partisan basis, an entity's 
employment decisions or practices.

  TITLE III--SUSPENSION OF PRIVATELY-FUNDED TRAVEL; CURBING LOBBYIST 
                                 GIFTS

Sec. 301. Suspension of privately-funded travel.
Sec. 302. Recommendations on gifts and travel.
Sec. 303. Prohibiting registered lobbyists on corporate flights.
Sec. 304. Valuation of tickets to sporting and entertainment events.

            TITLE IV--OVERSIGHT OF LOBBYING AND ENFORCEMENT

Sec. 401. Audits of lobbying reports by House Inspector General.
Sec. 402. House Inspector General review and annual reports.

                     TITLE V--INSTITUTIONAL REFORMS

Sec. 501. Earmarking reform.
Sec. 502. Frequent and comprehensive ethics training.
Sec. 503. Biennial publication of ethics manual.

             TITLE VI--REFORM OF SECTION 527 ORGANIZATIONS

Sec. 601. Short title.
Sec. 602. Treatment of section 527 organizations.
Sec. 603. Rules for allocation of expenses between Federal and non-
Federal activities.
Sec. 604. Repeal of limit on amount of party expenditures on behalf of 
candidates in general elections.
Sec. 605. Construction.
Sec. 606. Judicial review.
Sec. 607. Severability.

              TITLE VII--FORFEITURE OF RETIREMENT BENEFITS

Sec. 701. Loss of pensions accrued during service as a Member of 
Congress for abusing the public trust.

                 TITLE I--ENHANCING LOBBYING DISCLOSURE

SEC. 101. QUARTERLY FILING OF LOBBYING DISCLOSURE REPORTS.

  (a) Quarterly Filing Required.--Section 5 of the Lobbying Disclosure 
Act of 1995 (in this title referred to as the ``Act'') (2 U.S.C. 1604) 
is amended--
          (1) in subsection (a)--
                  (A) in the heading, by striking ``Semiannual'' and 
                inserting ``Quarterly'';
                  (B) by striking ``45'' and inserting ``20'';
                  (C) by striking ``the semiannual period'' and all 
                that follows through ``July of each year'' and insert 
                ``the quarterly period beginning on the first day of 
                January, April, July, and October of each year''; and
                  (D) by striking ``such semiannual period'' and insert 
                ``such quarterly period''; and
          (2) in subsection (b)--
                  (A) in the matter preceding paragraph (1), by 
                striking ``semiannual report'' and inserting 
                ``quarterly report'';
                  (B) in paragraph (2), by striking ``semiannual filing 
                period'' and inserting ``quarterly period'';
                  (C) in paragraph (3), by striking ``semiannual 
                period'' and inserting ``quarterly period''; and
                  (D) in paragraph (4), by striking ``semiannual filing 
                period'' and inserting ``quarterly period''.
  (b) Conforming Amendments.--
          (1) Definition.--Section 3(10) of the Act (2 U.S.C. 1602(10)) 
        is amended by striking ``six month period'' and inserting ``3-
        month period''.
          (2) Registration.--Section 4 of the Act (2 U.S.C. 1603) is 
        amended--
                  (A) in subsection (a)(3)(A), by striking ``semiannual 
                period'' and inserting ``quarterly period''; and
                  (B) in subsection (b)(3)(A), by striking ``semiannual 
                period'' and inserting ``quarterly period''.
          (3) Enforcement.--Section 6(6) of the Act (2 U.S.C. 1605(6)) 
        is amended by striking ``semiannual period'' and inserting 
        ``quarterly period''.
          (4) Estimates.--Section 15 of the Act (2 U.S.C. 1610) is 
        amended--
                  (A) in subsection (a)(1), by striking ``semiannual 
                period'' and inserting ``quarterly period''; and
                  (B) in subsection (b)(1), by striking ``semiannual 
                period'' and inserting ``quarterly period''.
          (5) Dollar amounts.--
                  (A) Registration.--Section 4 of the Act (2 U.S.C. 
                1603) is amended--
                          (i) in subsection (a)(3)(A)(i), by striking 
                        ``$5,000'' and inserting ``$2,500'';
                          (ii) in subsection (a)(3)(A)(ii), by striking 
                        ``$20,000'' and inserting ``$10,000'';
                          (iii) in subsection (b)(3)(A), by striking 
                        ``$10,000'' and inserting ``$5,000''; and
                          (iv) in subsection (b)(4), by striking 
                        ``$10,000'' and inserting ``$5,000''.
                  (B) Reports.--Section 5(c) of the Act (2 U.S.C. 
                1604(c)) is amended--
                          (i) in paragraph (1), by striking ``$10,000'' 
                        and ``$20,000'' and inserting ``$5,000'' and 
                        ``$1,000'', respectively; and
                          (ii) in paragraph (2), by striking 
                        ``$10,000'' both places such term appears and 
                        inserting ``$5,000''.

SEC. 102. ELECTRONIC FILING OF LOBBYING REGISTRATIONS AND DISCLOSURE 
                    REPORTS.

  (a) Registrations.--Section 4 of the Act (2 U.S.C. 1603) is amended--
          (1) by redesignating subsection (d) as subsection (e); and
          (2) by inserting after subsection (c) the following:
  ``(d) Electronic Filing Required.--A registration required to be 
filed under this section on or after the date of enactment of the 
Lobbying Accountability and Transparency Act of 2006 shall be filed in 
electronic form, in addition to any other form that may be required by 
the Secretary of the Senate or the Clerk of the House of 
Representatives. The due date for a registration filed in electronic 
form shall be no later than the due date for a registration filed in 
any other form.''.
  (b) Reports.--Section 5 of the Act (2 U.S.C. 1604) is amended by 
adding at the end the following:
  ``(d) Electronic Filing Required.--
          ``(1) In general.--A report required to be filed under this 
        section shall be filed in electronic form, in addition to any 
        other form that may be required by the Secretary of the Senate 
        or the Clerk of the House of Representatives. The due date for 
        a report filed in electronic form shall be no later than the 
        due date for a report filed in any other form, except as 
        provided in paragraph (2).
          ``(2) Extension of time to file in electronic form.--The 
        Secretary of the Senate or the Clerk of the House of 
        Representatives may establish a later due date for the filing 
        of a report in electronic form by a registrant, if and only 
        if--
                  ``(A) on or before the original due date, the 
                registrant--
                          ``(i) timely files the report in every form 
                        required, other than electronic form; and
                          ``(ii) makes a request for such a later due 
                        date to the Secretary or the Clerk, as the case 
                        may be; and
                  ``(B) the request is supported by good cause 
                shown.''.

SEC. 103. PUBLIC DATABASE OF LOBBYING DISCLOSURE INFORMATION.

  (a) Database Required.--Section 6 of the Act (2 U.S.C. 1605) is 
amended--
          (1) in paragraph (7), by striking ``and'' at the end;
          (2) in paragraph (8), by striking the period and inserting 
        ``; and''; and
          (3) by adding at the end the following:
          ``(9) maintain, and make available to the public over the 
        Internet, without a fee or other access charge, in a 
        searchable, sortable, and downloadable manner, an electronic 
        database that--
                  ``(A) includes the information contained in 
                registrations and reports filed under this Act;
                  ``(B) directly links the information it contains to 
                the information disclosed in reports filed with the 
                Federal Election Commission under section 304 of the 
                Federal Election Campaign Act of 1971 (2 U.S.C. 434); 
                and
                  ``(C) is searchable and sortable, at a minimum, by 
                each of the categories of information described in 
                sections 4(b) and 5(b).''.
  (b) Availability of Reports.--Section 6(4) of the Act is amended by 
inserting before the semicolon the following: ``and, in the case of a 
registration filed in electronic form pursuant to section 4(d) or a 
report filed in electronic form pursuant to section 5(d), shall make 
such registration or report (as the case may be) available for public 
inspection over the Internet not more than 48 hours after the 
registration or report (as the case may be) is approved as received by 
the Secretary of the Senate or the Clerk of the House of 
Representatives (as the case may be)''.
  (c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out paragraph (9) 
of section 6 of the Act, as added by subsection (a) of this section.

SEC. 104. DISCLOSURE BY REGISTERED LOBBYISTS OF PAST EXECUTIVE BRANCH 
                    AND CONGRESSIONAL EMPLOYMENT.

  Section 4(b)(6) of the Act (2 U.S.C. 1603(b)(6)) is amended by 
striking ``2 years'' and inserting ``7 years''.

SEC. 105. DISCLOSURE OF LOBBYIST CONTRIBUTIONS AND GIFTS.

  (a) In General.--Section 5(b) of the Act (2 U.S.C. 1604(b)) is 
amended--
          (1) in paragraph (3), by striking ``and'' after the 
        semicolon;
          (2) in paragraph (4), by striking the period and inserting a 
        semicolon; and
          (3) by adding at the end the following:
          ``(5) for each registrant (and for any political committee, 
        as defined in 301(4) of the Federal Election Campaign Act of 
        1971 (2 U.S.C. 431(4)), affiliated with the registrant), and 
        for each employee listed as a lobbyist by the registrant under 
        paragraph (2)(C)--
                  ``(A) the name of each Federal candidate or 
                officeholder, and of each leadership PAC, political 
                party committee, or other political committee to whom a 
                contribution was made which is required to be reported 
                to the Federal Election Commission by the recipient, 
                and the date and amount of such contribution; and
                  ``(B) the name of each Federal candidate or 
                officeholder, leadership PAC of such candidate or 
                officeholder, or political party committee for whom a 
                fundraising event was hosted or cohosted (as stated on 
                the official invitation) by the registrant and each 
                employee listed by the registrant as a lobbyist, the 
                date and location of the event, and the total amount 
                raised by the event;
          ``(6) the date, recipient, and amount of any gift that under 
        the Rules of the House of Representatives counts towards the 
        cumulative annual limit described in such rules and is given to 
        a covered legislative branch official by the registrant or an 
        employee listed as a lobbyist by the registrant under paragraph 
        (2)(C);
          ``(7) the date, recipient, and amount of funds contributed by 
        the registrant or an employee listed as a lobbyist by the 
        registrant under paragraph (2)(C) --
                  ``(A) to pay the costs of an event the purpose of 
                which is (as stated by the registrant or employee, or 
                in official materials describing the event) to honor or 
                recognize a covered legislative branch official or 
                covered executive branch official;
                  ``(B) to, or on behalf of, an entity that is named 
                for a covered legislative branch official or covered 
                executive branch official, or to a person or entity in 
                recognition of such official;
                  ``(C) to an entity established, financed, maintained, 
                or controlled by a covered legislative branch official 
                or covered executive branch official, or an entity 
                designated by such official; or
                  ``(D) to pay the costs of a meeting, retreat, 
                conference, or substantially similar event held by, or 
                for the benefit of, 1 or more covered legislative 
                branch officials or covered executive branch officials;
        except that this paragraph shall not apply to any payment or 
        reimbursement made from funds required to be reported under 
        section 304 of the Federal Election Campaign Act of 1971 (2 
        U.S.C. 434); and
          ``(8) the name of each Member of Congress, and each employee 
        of a Member of Congress, with whom any lobbying contact has 
        been made on behalf of the client by the registrant or an 
        employee listed as a lobbyist by the registrant under paragraph 
        (2)(C).''.
  (b) Factors to be Considered to Determine Relationship Between 
Officials and Other Entities.--Section 5 of the Act (2 U.S.C. 1604), as 
amended by section 102(b) of this Act, is amended by adding at the end 
the following new subsection:
  ``(e) Factors to Determine Relationship Between Officials and Other 
Entities.--
          ``(1) In general.--In determining under subsection (b)(7)(C) 
        whether a covered legislative branch official or covered 
        executive branch official directly or indirectly established, 
        finances, maintains, or controls an entity, the factors 
        described in paragraph (2) shall be examined in the context of 
        the overall relationship between that covered official and the 
        entity to determine whether the presence of any such factor or 
        factors is evidence that the covered official directly or 
        indirectly established, finances, maintains, or controls the 
        entity.
          ``(2) Factors.--The factors referred to in paragraph (1) 
        include, but are not limited to, the following:
                  ``(A) Whether the covered official, directly or 
                through its agent, owns a controlling interest in the 
                voting stock or securities of the entity.
                  ``(B) Whether the covered official, directly or 
                through its agent, has the authority or ability to 
                direct or participate in the governance of the entity 
                through provisions of constitutions, bylaws, contracts, 
                or other rules, or through formal or informal practices 
                or procedures.
                  ``(C) Whether the covered official, directly or 
                through its agent, has the authority or ability to 
                hire, appoint, demote, or otherwise control the 
                officers or other decisionmaking employees or members 
                of the entity.
                  ``(D) Whether the covered official has a common or 
                overlapping membership with the entity that indicates a 
                formal or ongoing relationship between the covered 
                official and the entity.
                  ``(E) Whether the covered official has common or 
                overlapping officers or employees with the entity that 
                indicates a formal or ongoing relationship between the 
                covered official and the entity.
                  ``(F) Whether the covered official has any members, 
                officers, or employees who were members, officers, or 
                employees of the entity that indicates a formal or 
                ongoing relationship between the covered official and 
                the entity, or that indicates the creation of a 
                successor entity.
                  ``(G) Whether the covered official, directly or 
                through its agent, provides funds or goods in a 
                significant amount or on an ongoing basis to the 
                entity, such as through direct or indirect payments for 
                administrative, fundraising, or other costs.
                  ``(H) Whether the covered official, directly or 
                through its agent, causes or arranges for funds in a 
                significant amount or on an ongoing basis to be 
                provided to the entity.
                  ``(I) Whether the covered official, directly or 
                through its agent, had an active or significant role in 
                the formation of the entity.
                  ``(J) Whether the covered official and the entity 
                have similar patterns of receipts or disbursements that 
                indicate a formal or ongoing relationship between the 
                covered official and the entity.''.
  (c) Conforming Amendment.--Section 3 of the Act (2 U.S.C. 1602) is 
amended by adding at the end the following new paragraphs:
          ``(17) Gift.--The term `gift' means a gratuity, favor, 
        discount, entertainment, hospitality, loan, forbearance, or 
        other item having monetary value. The term includes gifts of 
        services, training, and meals, whether provided in kind, by 
        purchase of a ticket, payment in advance, or reimbursement 
        after the expense has been incurred.
          ``(18) Leadership PAC.--The term `leadership PAC' means an 
        unauthorized political committee that is established, financed, 
        maintained, and controlled by an individual who is a Federal 
        officeholder or a candidate for Federal office.''.
  (d) Notification of Members.--Section 6(2) of the Act (2 U.S.C. 
1605(2)) is amended--
          (1) by striking ``review'' and inserting ``(A) review'';
          (2) by inserting ``and'' after the semicolon at the end; and
          (3) by adding at the end the following:
          ``(B) if a report states (under section 5(b)(8) or otherwise) 
        that a Member of Congress, or an employee of a Member of 
        Congress, was the subject of a lobbying contact, immediately 
        inform that Member or employee (as the case may be) of that 
        report;''.

SEC. 106. INCREASED PENALTY FOR FAILURE TO COMPLY WITH LOBBYING 
                    DISCLOSURE REQUIREMENTS.

  Section 7 of the Act (2 U.S.C. 1606) is amended--
          (1) by striking ``Whoever'' and inserting ``(a) Civil 
        Penalty.--Whoever'';
          (2) by striking ``$50,000'' and inserting ``$100,000''; and
          (3) by adding at the end the following:
  ``(b) Criminal Penalty.--
          ``(1) In general.--Whoever knowingly and willfully fails to 
        comply with any provision of this Act shall be imprisoned not 
        more than 3 years, or fined under title 18, United States Code, 
        or both.
          ``(2) Corruptly.--Whoever knowingly, willfully, and corruptly 
        fails to comply with any provision of this Act shall be 
        imprisoned not more than 5 years, or fined under title 18, 
        United States Code, or both.''.

SEC. 107. REQUIRING LOBBYISTS TO FILE REPORTS ON SOLICITATIONS AND 
                    TRANSFERS OF CONTRIBUTIONS FOR CANDIDATES.

  (a) Reports Required.--Section 5 of the Act (2 U.S.C. 1604), as 
amended by sections 102(b) and 105(b), is amended by adding at the end 
the following new subsection:
  ``(f) Reports of Solicitations and Transfers of Contributions in 
Federal Elections.--
          ``(1) Reports of solicitations and transfers required.--Any 
        lobbyist registered under section 4 who solicits a contribution 
        for or on behalf of a candidate or political committee from any 
        other person and transmits the contribution to the candidate or 
        political committee, or who transfers any contribution made by 
        any other person to a candidate or political committee, shall 
        file a report with the Secretary of the Senate and the Clerk of 
        the House of Representatives containing--
                  ``(A) the name, address, business telephone number, 
                and principal place of business of the lobbyist, and a 
                general description of the lobbyist's business or 
                activities;
                  ``(B) the name of the person from whom the lobbyist 
                solicited the contribution or from whom the lobbyist 
                transferred the contribution; and
                  ``(C) the identity of the candidate or political 
                committee on whose behalf the contribution was 
                solicited and transmitted or transferred (and, in the 
                case of a political committee which is an authorized 
                committee of a candidate, the identity of the 
                candidate).
          ``(2) Reports of service as officer of political committee.--
        Any lobbyist registered under section 4 who serves as the 
        treasurer of an authorized committee of a candidate for 
        election for Federal office or as the treasurer or chair of any 
        other political committee, shall file a report with the 
        Secretary of the Senate and the Clerk of the House of 
        Representatives containing the position held by the lobbyist 
        and the identity of the candidate and committee involved.
          ``(3) Timing of reports.--Reports required to be filed under 
        this subsection shall be filed for the same time periods 
        required for political committees under section 304(a)(4)(B) of 
        the Federal Election Campaign Act of 1971, except that a report 
        is not required to be filed under this subsection with respect 
        to any month during which the lobbyist did not solicit and 
        transmit or transfer a contribution described in paragraph (1) 
        or serve in a position described in paragraph (2).
          ``(4) Exception for lobbyists as candidates.--In the case of 
        a lobbyist who is a candidate for election for Federal office, 
        paragraph (1) shall not apply to a contribution made to the 
        lobbyist or to an authorized committee of the lobbyist.
          ``(5) Definitions.--In this subsection, the terms `authorized 
        committee', `candidate', `election', and `political committee' 
        have the meanings given those terms in section 301 of the 
        Federal Election Campaign Act of 1971.''.
  (b) Effective Date.--The amendment made by subsection (a) shall apply 
with respect to solicitations or transfers made on or after the date of 
enactment of this Act.

SEC. 108. GAO STUDY OF EMPLOYMENT CONTRACTS OF LOBBYISTS.

  The Comptroller General of the United States shall conduct a study of 
employment contracts of lobbyists in order to determine the extent of 
contingent fee agreements, and shall report the findings of the study 
to the Committee on the Judiciary of the House of Representatives.

                  TITLE II--SLOWING THE REVOLVING DOOR

SEC. 201. NOTIFICATION OF POST-EMPLOYMENT RESTRICTIONS.

  Section 207(e) of title 18, United States Code, is amended by adding 
at the end the following new paragraph:
          ``(8) Notification of post-employment restrictions.--After a 
        Member of the House of Representatives or an elected officer of 
        the House of Representatives leaves office, or after the 
        termination of employment with the House of Representatives of 
        an employee of the House of Representatives covered under 
        paragraph (2), (3), or (4), the Clerk of the House of 
        Representatives, after consultation with the Committee on 
        Standards of Official Conduct, shall inform the Member, 
        officer, or employee of the beginning and ending date of the 
        prohibitions that apply to the Member, officer, or employee 
        under this subsection, and also inform each office of the House 
        of Representatives with respect to which such prohibitions 
        apply of those dates.''.

SEC. 202. DISCLOSURE BY MEMBERS OF THE HOUSE OF REPRESENTATIVES OF 
                    EMPLOYMENT NEGOTIATIONS.

  The Code of Official Conduct set forth in rule XXIII of the Rules of 
the House of Representatives is amended by redesignating clause 14 as 
clause 15 and by inserting after clause 13 the following new clause:
  ``14. (a) A Member, Delegate, or Resident Commissioner shall file 
with the Committee on Standards of Official Conduct a statement that he 
or she is negotiating compensation for prospective employment or has 
any arrangement concerning prospective employment if a conflict of 
interest or the appearance of a conflict of interest may exist. Such 
statement shall be made within 5 days (other than Saturdays, Sundays, 
or public holidays) after commencing the negotiation for compensation 
or entering into the arrangement.
  ``(b) A Member, Delegate, or Resident Commissioner should refrain 
from voting on any legislative measure pending before the House or any 
committee thereof if the negotiation described in subparagraph (a) may 
create a conflict of interest.''.

SEC. 203. WRONGFULLY INFLUENCING, ON A PARTISAN BASIS, AN ENTITY'S 
                    EMPLOYMENT DECISIONS OR PRACTICES.

  The Code of Official Conduct set forth in rule XXIII of the Rules of 
the House of Representatives (as amended by section 202) is further 
amended by redesignating clause 15 as clause 16 and by inserting after 
clause 14 the following new clause:
  ``15. A Member, Delegate, Resident Commissioner, officer, or employee 
of the House may not, with the intent to influence on the basis of 
political party affiliation an employment decision or employment 
practice of any private or public entity (except for the Congress)--
          ``(a) take or withhold, or offer or threaten to take or 
        withhold, an official act; or
          ``(b) influence, or offer or threaten to influence, the 
        official act of another.''.

  TITLE III--SUSPENSION OF PRIVATELY-FUNDED TRAVEL; CURBING LOBBYIST 
                                 GIFTS

SEC. 301. SUSPENSION OF PRIVATELY-FUNDED TRAVEL.

  Notwithstanding clause 5 of rule XXV of the Rules of the House of 
Representatives, no Member, Delegate, Resident Commissioner, officer, 
or employee of the House may accept a gift of travel (including any 
transportation, lodging, and meals during such travel) from any private 
source.

SEC. 302. RECOMMENDATIONS FROM THE COMMITTEE ON STANDARDS OF OFFICIAL 
                    CONDUCT ON GIFTS AND TRAVEL.

  Not later than December 15, 2006, the Committee on Standards of 
Official Conduct shall report its recommendations on changes to rule 
XXV of the Rules of the House of Representatives to the Committee on 
Rules. In developing such recommendations, the Committee on Standards 
of Official Conduct shall consider the following:
          (1) The ability of the current provisions of rule XXV to 
        protect the House, its Members, officers, and employees, from 
        the appearance of impropriety.
          (2) With respect to the allowance for privately-funded travel 
        contained in clause 5(b) of rule XXV--
                  (A) the degree to which privately-funded travel meets 
                the representational needs of the House, its Members, 
                officers, and employees;
                  (B) whether certain entities should or should not be 
                permitted to fund the travel of the Members, officers, 
                and employees of the House, what sources of funding may 
                be permissible, and what other individuals may 
                participate in that travel; and
                  (C) the adequacy of the current system of approval 
                and disclosure of such travel.
          (3) With respect to the exceptions to the limitation on the 
        acceptance of gifts contained in clause 5(a)--
                  (A) the degree to which those exceptions meet the 
                representational and personal needs of the House, its 
                Members, officers, and employees;
                  (B) the clarity of the limitation and its exceptions; 
                and
                  (C) the suitability of the current dollar limitations 
                contained in clause 5(a)(1)(B) of such rule, including 
                whether such limitations should be lowered.

SEC. 303. PROHIBITING REGISTERED LOBBYISTS ON CORPORATE FLIGHTS.

  The Lobbying Disclosure Act of 1995 is amended by inserting after 
section 5 the following new section:

``SEC. 5A. PROHIBITING REGISTERED LOBBYISTS ON CORPORATE FLIGHTS.

  ``If a Representative in, or Delegate or Resident Commissioner to, 
the Congress, or an officer or employee of the House of 
Representatives, is a passenger or crew member on a flight of an 
aircraft that is not licensed by the Federal Aviation Administration to 
operate for compensation or hire and that is owned or operated by a 
person who is the client of a lobbyist or a lobbying firm, then such 
lobbyist may not be a passenger or crew member on that flight.''.

SEC. 304. VALUATION OF TICKETS TO SPORTING AND ENTERTAINMENT EVENTS.

  Clause 5(a)(2)(A) of rule XXV of the Rules of the House of 
Representatives is amended by--
          (1) inserting ``(i)'' after ``(A)''; and
          (2) adding at the end the following:
  ``(ii) A gift of a ticket to a sporting or entertainment event shall 
be valued at the face value of the ticket, provided that in the case of 
a ticket without a face value, the ticket shall be valued at the 
highest cost of a ticket with a face value for the event.''.

            TITLE IV--OVERSIGHT OF LOBBYING AND ENFORCEMENT

SEC. 401. AUDITS OF LOBBYING REPORTS BY HOUSE INSPECTOR GENERAL.

  (a) Access to Lobbying Reports.--The Office of Inspector General of 
the House of Representatives shall have access to all lobbyists' 
disclosure information received by the Clerk of the House of 
Representatives under the Lobbying Disclosure Act of 1995 and shall 
conduct random audits of lobbyists' disclosure information as necessary 
to ensure compliance with that Act.
  (b) Referral Authority.--The Office of the Inspector General of the 
House of Representatives may refer potential violations by lobbyists of 
the Lobbying Disclosure Act of 1995 to the Department of Justice for 
disciplinary action.

SEC. 402. HOUSE INSPECTOR GENERAL REVIEW AND ANNUAL REPORTS.

  (a) Ongoing Review Required.--The Inspector General of the House of 
Representatives shall review on an ongoing basis the activities carried 
out by the Clerk of the House of Representatives under section 6 of the 
Lobbying Disclosure Act of 1995 (2 U.S.C. 1605). The review shall 
emphasize--
          (1) the effectiveness of those activities in securing the 
        compliance by lobbyists with the requirements of that Act; and
          (2) whether the Clerk has the resources and authorities 
        needed for effective oversight and enforcement of that Act.
  (b) Annual Reports.--Not later than December 31 of each year, the 
Inspector General of the House of Representatives shall submit to the 
House of Representatives a report on the review required by subsection 
(a). The report shall include the Inspector General's assessment of the 
matters required to be emphasized by that subsection and any 
recommendations of the Inspector General to--
          (1) improve the compliance by lobbyists with the requirements 
        of the Lobbying Disclosure Act of 1995; and
          (2) provide the Clerk of the House of Representatives with 
        the resources and authorities needed for effective oversight 
        and enforcement of that Act.

                     TITLE V--INSTITUTIONAL REFORMS

SEC. 501. EARMARKING REFORM.

  (a) In the House of Representatives, it shall not be in order to 
consider--
          (1) a general appropriation bill reported by the Committee on 
        Appropriations unless the report includes a list of earmarks in 
        the bill or in the report (and the name of any Member who 
        submitted a request to the Committee on Appropriations for an 
        earmark included in such list); or
          (2) a conference report to accompany a general appropriation 
        bill unless the joint explanatory statement prepared by the 
        managers on the part of the House and the managers on the part 
        of the Senate includes a list of earmarks in the conference 
        report or joint statement (and the name of any Member who 
        submitted a request to the Committee on Appropriations for an 
        earmark included in such list) that were--
                  (A) not committed to the conference committee by 
                either House;
                  (B) not in the report specified in paragraph (1); and
                  (C) not in a report of a committee of the Senate on a 
                companion measure.
  (b) In the House of Representatives, it shall not be in order to 
consider a rule or order that waives the application of subsection 
(a)(2).
  (c)(1) A point of order raised under subsection (a) may be based only 
on the failure of a report of the Committee on Appropriations or joint 
statement, as the case may be, to include the list required by 
subsection (a).
  (2) As disposition of a point of order under this section, the Chair 
shall put the question of consideration with respect to the proposition 
that is the subject of the point of order.
  (3) The question of consideration under this subsection shall be 
debatable for 10 minutes by the Member initiating the point of order 
and for 10 minutes by an opponent, but shall otherwise be decided 
without intervening motion except one that the House adjourn.
  (d)(1) For purposes of this section, the term ``earmark'' means a 
provision in a bill, joint resolution, or conference report, or 
language in an accompanying committee report or joint statement of 
managers, providing a specific amount of discretionary budget authority 
to a non-Federal entity, if such entity is identified by name.
  (2) For purposes of paragraph (1), government-sponsored enterprises, 
Federal facilities, and Federal lands shall be considered Federal 
entities.
  (3) For purposes of subsection (a), to the extent that the non-
Federal entity is a unit of State or local government, an Indian tribe, 
or a foreign government, the provision or language shall not be 
considered an earmark unless the provision or language also specifies 
the specific purpose for which the designated budget authority is to be 
expended.

SEC. 502. FREQUENT AND COMPREHENSIVE ETHICS TRAINING.

  (a) Ethics Training.--
          (1) In general.--The Committee on Standards of Official 
        Conduct shall provide ethics training once per Congress to each 
        employee of the House of Representatives, including training on 
        the Code of Official Conduct, related rules of the House of 
        Representatives, and applicable provisions of law.
          (2) New employees.--A new employee of the House of 
        Representatives shall receive training under this section not 
        later than 30 days after beginning service to the House.
          (3) Members.--While the House of Representatives recognizes 
        that adding qualifications to service as a Member may be 
        unconstitutional, it encourages Members to participate in 
        ethics training.
  (b) Certification.--Within 30 days of completing required ethics 
training, each employee of the House of Representatives shall file a 
certification with the Committee on Standards of Official Conduct that 
the employee has completed such training and is familiar with the 
contents of any pertinent publications that are so designated by the 
committee.

SEC. 503. BIENNIAL PUBLICATION OF ETHICS MANUAL.

  Within 120 days after the date of enactment of this Act and during 
each Congress thereafter, the Committee on Standards of Official 
Conduct shall publish an up-to-date ethics manual for Members, 
officers, and employees of the House of Representatives and make such 
manual available to all such individuals. The committee has a duty to 
keep all Members, Delegates, the Resident Commissioner, officers, and 
employees of the House of Representatives apprised of current rulings 
or advisory opinions when potentially constituting changes to or 
interpretations of existing policies.

             TITLE VI--REFORM OF SECTION 527 ORGANIZATIONS

SEC. 601. SHORT TITLE.

  This title may be cited as the ``527 Reform Act of 2006''.

SEC. 602. TREATMENT OF SECTION 527 ORGANIZATIONS.

  (a) Definition of Political Committee.--Section 301(4) of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 431(4)) is amended--
          (1) by striking the period at the end of subparagraph (C) and 
        inserting ``; or''; and
          (2) by adding at the end the following:
                  ``(D) any applicable 527 organization.''.
  (b) Definition of Applicable 527 Organization.--Section 301 of such 
Act (2 U.S.C. 431) is amended by adding at the end the following new 
paragraph:
          ``(27) Applicable 527 organization.--
                  ``(A) In general.--For purposes of paragraph (4)(D), 
                the term `applicable 527 organization' means a 
                committee, club, association, or group of persons 
                that--
                          ``(i) has given notice to the Secretary of 
                        the Treasury under section 527(i) of the 
                        Internal Revenue Code of 1986 that it is to be 
                        treated as an organization described in section 
                        527 of such Code; and
                          ``(ii) is not described in subparagraph (B).
                  ``(B) Excepted organizations.--A committee, club, 
                association, or other group of persons described in 
                this subparagraph is--
                          ``(i) an organization described in section 
                        527(i)(5) of the Internal Revenue Code of 1986;
                          ``(ii) an organization which is a committee, 
                        club, association or other group of persons 
                        that is organized, operated, and makes 
                        disbursements exclusively for paying expenses 
                        described in the last sentence of section 
                        527(e)(2) of the Internal Revenue Code of 1986 
                        or expenses of a newsletter fund described in 
                        section 527(g) of such Code;
                          ``(iii) an organization which is a committee, 
                        club, association, or other group that consists 
                        solely of candidates for State or local office, 
                        individuals holding State or local office, or 
                        any combination of either, but only if the 
                        organization refers only to one or more non-
                        Federal candidates or applicable State or local 
                        issues in all of its voter drive activities and 
                        does not refer to a Federal candidate or a 
                        political party in any of its voter drive 
                        activities; or
                          ``(iv) an organization described in 
                        subparagraph (C).
                  ``(C) Applicable organization.--For purposes of 
                subparagraph (B)(iv), an organization described in this 
                subparagraph is a committee, club, association, or 
                other group of persons whose election or nomination 
                activities relate exclusively to--
                          ``(i) elections where no candidate for 
                        Federal office appears on the ballot; or
                          ``(ii) one or more of the following purposes:
                                  ``(I) Influencing the selection, 
                                nomination, election, or appointment of 
                                one or more candidates to non-Federal 
                                offices.
                                  ``(II) Influencing one or more 
                                applicable State or local issues.
                                  ``(III) Influencing the selection, 
                                appointment, nomination, or 
                                confirmation of one or more individuals 
                                to non-elected offices.
                  ``(D) Exclusivity test.--A committee, club, 
                association, or other group of persons shall not be 
                treated as meeting the exclusivity requirement of 
                subparagraph (C) if it makes disbursements aggregating 
                more than $1,000 for any of the following:
                          ``(i) A public communication that promotes, 
                        supports, attacks, or opposes a clearly 
                        identified candidate for Federal office during 
                        the 1-year period ending on the date of the 
                        general election for the office sought by the 
                        clearly identified candidate (or, if a runoff 
                        election is held with respect to such general 
                        election, on the date of the runoff election).
                          ``(ii) Any voter drive activity during a 
                        calendar year, except that no disbursements for 
                        any voter drive activity shall be taken into 
                        account under this subparagraph if the 
                        committee, club, association, or other group of 
                        persons during such calendar year--
                                  ``(I) makes disbursements for voter 
                                drive activities with respect to 
                                elections in only 1 State and complies 
                                with all applicable election laws of 
                                that State, including laws related to 
                                registration and reporting requirements 
                                and contribution limitations;
                                  ``(II) refers to one or more non-
                                Federal candidates or applicable State 
                                or local issues in all of its voter 
                                drive activities and does not refer to 
                                any Federal candidate or any political 
                                party in any of its voter drive 
                                activities;
                                  ``(III) does not have a candidate for 
                                Federal office, an individual who holds 
                                any Federal office, a national 
                                political party, or an agent of any of 
                                the foregoing, control or materially 
                                participate in the direction of the 
                                organization, solicit contributions to 
                                the organization (other than funds 
                                which are described under clauses (i) 
                                and (ii) of section 323(e)(1)(B)), or 
                                direct disbursements, in whole or in 
                                part, by the organization; and
                                  ``(IV) makes no contributions to 
                                Federal candidates.
                  ``(E) Certain references to federal candidates not 
                taken into account.--For purposes of subparagraphs 
                (B)(iii) and (D)(ii)(II), a voter drive activity shall 
                not be treated as referring to a clearly identified 
                Federal candidate if the only reference to the 
                candidate in the activity is--
                          ``(i) a reference in connection with an 
                        election for a non-Federal office in which such 
                        Federal candidate is also a candidate for such 
                        non-Federal office; or
                          ``(ii) a reference to the fact that the 
                        candidate has endorsed a non-Federal candidate 
                        or has taken a position on an applicable State 
                        or local issue, including a reference that 
                        constitutes the endorsement or position itself.
                  ``(F) Certain references to political parties not 
                taken into account.--For purposes of subparagraphs 
                (B)(iii) and (D)(ii)(II), a voter drive activity shall 
                not be treated as referring to a political party if the 
                only reference to the party in the activity is--
                          ``(i) a reference for the purpose of 
                        identifying a non-Federal candidate;
                          ``(ii) a reference for the purpose of 
                        identifying the entity making the public 
                        communication or carrying out the voter drive 
                        activity; or
                          ``(iii) a reference in a manner or context 
                        that does not reflect support for or opposition 
                        to a Federal candidate or candidates and does 
                        reflect support for or opposition to a State or 
                        local candidate or candidates or an applicable 
                        State or local issue.
                  ``(G) Applicable state or local issue.--For purposes 
                of this paragraph, the term `applicable State or local 
                issue' means any State or local ballot initiative, 
                State or local referendum, State or local 
                constitutional amendment, State or local bond issue, or 
                other State or local ballot issue.''.
  (c) Definition of Voter Drive Activity.--Section 301 of such Act (2 
U.S.C. 431), as amended by subsection (b), is further amended by adding 
at the end the following new paragraph:
          ``(28) Voter drive activity.--The term `voter drive activity' 
        means any of the following activities conducted in connection 
        with an election in which a candidate for Federal office 
        appears on the ballot (regardless of whether a candidate for 
        State or local office also appears on the ballot):
                  ``(A) Voter registration activity.
                  ``(B) Voter identification.
                  ``(C) Get-out-the-vote activity.
                  ``(D) Generic campaign activity.
                  ``(E) Any public communication related to activities 
                described in subparagraphs (A) through (D).
        Such term shall not include any activity described in 
        subparagraph (A) or (B) of section 316(b)(2).''.
  (d) Regulations.--The Federal Election Commission shall promulgate 
regulations to implement this section not later than 60 days after the 
date of enactment of this Act.
  (e) Effective Date.--The amendments made by this section shall take 
effect on the date which is 60 days after the date of enactment of this 
Act.

SEC. 603. RULES FOR ALLOCATION OF EXPENSES BETWEEN FEDERAL AND NON-
                    FEDERAL ACTIVITIES.

  (a) In General.--Title III of the Federal Election Campaign Act of 
1971 (2 U.S.C. 431 et seq.) is amended by adding at the end the 
following:

``SEC. 325. ALLOCATION AND FUNDING RULES FOR CERTAIN EXPENSES RELATING 
                    TO FEDERAL AND NON-FEDERAL ACTIVITIES.

  ``(a) In General.--In the case of any disbursements by any political 
committee that is a separate segregated fund or nonconnected committee 
for which allocation rules are provided under subsection (b)--
          ``(1) the disbursements shall be allocated between Federal 
        and non-Federal accounts in accordance with this section and 
        regulations prescribed by the Commission; and
          ``(2) in the case of disbursements allocated to non-Federal 
        accounts, may be paid only from a qualified non-Federal 
        account.
  ``(b) Costs to Be Allocated and Allocation Rules.--
          ``(1) In general.--Disbursements by any separate segregated 
        fund or nonconnected committee, other than an organization 
        described in section 323(b)(1), for any of the following 
        categories of activity shall be allocated as follows:
                  ``(A) 100 percent of the expenses for public 
                communications or voter drive activities that refer to 
                one or more clearly identified Federal candidates, but 
                do not refer to any clearly identified non-Federal 
                candidates, shall be paid with funds from a Federal 
                account, without regard to whether the communication 
                refers to a political party.
                  ``(B) At least 50 percent, or a greater percentage if 
                the Commission so determines by regulation, of the 
                expenses for public communications and voter drive 
                activities that refer to one or more clearly identified 
                candidates for Federal office and one or more clearly 
                identified non-Federal candidates shall be paid with 
                funds from a Federal account, without regard to whether 
                the communication refers to a political party.
                  ``(C) At least 50 percent, or a greater percentage if 
                the Commission so determines by regulation, of the 
                expenses for public communications or voter drive 
                activities that refer to a political party, but do not 
                refer to any clearly identified Federal or non-Federal 
                candidate, shall be paid with funds from a Federal 
                account, except that this paragraph shall not apply to 
                communications or activities that relate exclusively to 
                elections where no candidate for Federal office appears 
                on the ballot.
                  ``(D) At least 50 percent, or a greater percentage if 
                the Commission so determines by regulation, of the 
                expenses for public communications or voter drive 
                activities that refer to a political party and refer to 
                one or more clearly identified non-Federal candidates, 
                but do not refer to any clearly identified Federal 
                candidates, shall be paid with funds from a Federal 
                account, except that this paragraph shall not apply to 
                communications or activities that relate exclusively to 
                elections where no candidate for Federal office appears 
                on the ballot.
                  ``(E) Unless otherwise determined by the Commission 
                in its regulations, at least 50 percent of any 
                administrative expenses, including rent, utilities, 
                office supplies, and salaries not attributable to a 
                clearly identified candidate, shall be paid with funds 
                from a Federal account, except that for a separate 
                segregated fund such expenses may be paid instead by 
                its connected organization.
                  ``(F) At least 50 percent, or a greater percentage if 
                the Commission so determines by regulation, of the 
                direct costs of a fundraising program or event, 
                including disbursements for solicitation of funds and 
                for planning and administration of actual fundraising 
                events, where Federal and non-Federal funds are 
                collected through such program or event shall be paid 
                with funds from a Federal account, except that for a 
                separate segregated fund such costs may be paid instead 
                by its connected organization. This paragraph shall not 
                apply to any fundraising solicitations or any other 
                activity that constitutes a public communication.
          ``(2) Certain references to federal candidates not taken into 
        account.--For purposes of paragraph (1), a public communication 
        or voter drive activity shall not be treated as referring to a 
        clearly identified Federal candidate if the only reference to 
        the candidate in the communication or activity is--
                  ``(A) a reference in connection with an election for 
                a non-Federal office in which such Federal candidate is 
                also a candidate for such non-Federal office; or
                  ``(B) a reference to the fact that the candidate has 
                endorsed a non-Federal candidate or has taken a 
                position on an applicable State or local issue (as 
                defined in section 301(27)(G)), including a reference 
                that constitutes the endorsement or position itself.
          ``(3) Certain references to political parties not taken into 
        account.--For purposes of paragraph (1), a public communication 
        or voter drive activity shall not be treated as referring to a 
        political party if the only reference to the party in the 
        communication or activity is--
                  ``(A) a reference for the purpose of identifying a 
                non-Federal candidate;
                  ``(B) a reference for the purpose of identifying the 
                entity making the public communication or carrying out 
                the voter drive activity; or
                  ``(C) a reference in a manner or context that does 
                not reflect support for or opposition to a Federal 
                candidate or candidates and does reflect support for or 
                opposition to a State or local candidate or candidates 
                or an applicable State or local issue.
  ``(c) Qualified Non-Federal Account.--
          ``(1) In general.--For purposes of this section, the term 
        `qualified non-Federal account' means an account which consists 
        solely of amounts--
                  ``(A) that, subject to the limitations of paragraphs 
                (2) and (3), are raised by the separate segregated fund 
                or nonconnected committee only from individuals, and
                  ``(B) with respect to which all requirements of 
                Federal, State, or local law (including any law 
                relating to contribution limits) are met.
          ``(2) Limitation on individual donations.--
                  ``(A) In general.--A separate segregated fund or 
                nonconnected committee may not accept more than $25,000 
                in funds for its qualified non-Federal account from any 
                one individual in any calendar year.
                  ``(B) Affiliation.--For purposes of this paragraph, 
                all qualified non-Federal accounts of separate 
                segregated funds or nonconnected committees which are 
                directly or indirectly established, financed, 
                maintained, or controlled by the same person or persons 
                shall be treated as one account.
          ``(3) Fundraising limitation.--
                  ``(A) In general.--No donation to a qualified non-
                Federal account may be solicited, received, directed, 
                transferred, or spent by or in the name of any person 
                described in subsection (a) or (e) of section 323.
                  ``(B) Funds not treated as subject to act.--Except as 
                provided in subsection (a)(2) and this subsection, any 
                funds raised for a qualified non-Federal account in 
                accordance with the requirements of this section shall 
                not be considered funds subject to the limitations, 
                prohibitions, and reporting requirements of this Act 
                for any purpose (including for purposes of subsection 
                (a) or (e) of section 323 or subsection (d)(1) of this 
                section).
  ``(d) Definitions.--
          ``(1) Federal account.--The term `Federal account' means an 
        account which consists solely of contributions subject to the 
        limitations, prohibitions, and reporting requirements of this 
        Act. Nothing in this section or in section 323(b)(2)(B)(iii) 
        shall be construed to infer that a limit other than the limit 
        under section 315(a)(1)(C) applies to contributions to the 
        account.
          ``(2) Nonconnected committee.--The term `nonconnected 
        committee' shall not include a political committee of a 
        political party.
          ``(3) Voter drive activity.--The term `voter drive activity' 
        has the meaning given such term in section 301(28).''.
  (b) Reporting Requirements.--Section 304(e) of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 434(e)) is amended--
          (1) by redesignating paragraphs (3) and (4) as paragraphs (4) 
        and (5); and
          (2) by inserting after paragraph (2) the following new 
        paragraph:
          ``(3) Receipts and disbursements from qualified non-federal 
        accounts.--In addition to any other reporting requirement 
        applicable under this Act, a political committee to which 
        section 325(a) applies shall report all receipts and 
        disbursements from a qualified non-Federal account (as defined 
        in section 325(c)).''.
  (c) Regulations.--The Federal Election Commission shall promulgate 
regulations to implement the amendments made by this section not later 
than 180 days after the date of enactment of this Act.
  (d) Effective Date.--The amendments made by this section shall take 
effect on the date which is 180 days after the date of enactment of 
this Act.

SEC. 604. REPEAL OF LIMIT ON AMOUNT OF PARTY EXPENDITURES ON BEHALF OF 
                    CANDIDATES IN GENERAL ELECTIONS.

  (a) Repeal of Limit.--Section 315(d) of the Federal Election Campaign 
Act of 1971 (2 U.S.C. 441a(d)) is amended--
          (1) in paragraph (1)--
                  (A) by striking ``(1) Notwithstanding any other 
                provision of law with respect to limitations on 
                expenditures or limitations on contributions, the 
                national committee'' and inserting ``Notwithstanding 
                any other provision of law with respect to limitations 
                on amounts of expenditures or contributions, a national 
                committee'',
                  (B) by striking ``the general'' and inserting 
                ``any'', and
                  (C) by striking ``Federal office, subject to the 
                limitations contained in paragraphs (2), (3), and (4) 
                of this subsection'' and inserting ``Federal office in 
                any amount''; and
          (2) by striking paragraphs (2), (3), and (4).
  (b) Conforming Amendments.--
          (1) Indexing.--Section 315(c) of such Act (2 U.S.C. 441a(c)) 
        is amended--
                  (A) in paragraph (1)(B)(i), by striking ``(d),''; and
                  (B) in paragraph (2)(B)(i), by striking ``subsections 
                (b) and (d)'' and inserting ``subsection (b)''.
          (2) Increase in limits for senate candidates facing wealthy 
        opponents.--Section 315(i) of such Act (2 U.S.C. 441a(i)(1)) is 
        amended--
                  (A) in paragraph (1)(C)(iii)--
                          (i) by adding ``and'' at the end of subclause 
                        (I),
                          (ii) in subclause (II), by striking ``; and'' 
                        and inserting a period, and
                          (iii) by striking subclause (III);
                  (B) in paragraph (2)(A) in the matter preceding 
                clause (i), by striking ``, and a party committee shall 
                not make any expenditure,'';
                  (C) in paragraph (2)(A)(ii), by striking ``and party 
                expenditures previously made''; and
                  (D) in paragraph (2)(B), by striking ``and a party 
                shall not make any expenditure''.
          (3) Increase in limits for house candidates facing wealthy 
        opponents.--Section 315A(a) of such Act (2 U.S.C. 441a--1(a)) 
        is amended--
                  (A) in paragraph (1)--
                          (i) by adding ``and'' at the end of 
                        subparagraph (A),
                          (ii) in subparagraph (B), by striking ``; 
                        and'' and inserting a period, and
                          (iii) by striking subparagraph (C);
                  (B) in paragraph (3)(A) in the matter preceding 
                clause (i), by striking ``, and a party committee shall 
                not make any expenditure,'';
                  (C) in paragraph (3)(A)(ii), by striking ``and party 
                expenditures previously made''; and
                  (D) in paragraph (3)(B), by striking ``and a party 
                shall not make any expenditure''.
  (c) Effective Date.--The amendments made by this section shall take 
effect January 1, 2006.

SEC. 605. CONSTRUCTION.

  No provision of this title, or amendment made by this title, shall be 
construed--
          (1) as approving, ratifying, or endorsing a regulation 
        promulgated by the Federal Election Commission;
          (2) as establishing, modifying, or otherwise affecting the 
        definition of political organization for purposes of the 
        Internal Revenue Code of 1986; or
          (3) as affecting the determination of whether a group 
        organized under section 501(c) of the Internal Revenue Code of 
        1986 is a political committee under section 301(4) of the 
        Federal Election Campaign Act of 1971.

SEC. 606. JUDICIAL REVIEW.

  (a) Special Rules for Actions Brought on Constitutional Grounds.--If 
any action is brought for declaratory or injunctive relief to challenge 
the constitutionality of any provision of this title or any amendment 
made by this title, the following rules shall apply:
          (1) The action shall be filed in the United States District 
        Court for the District of Columbia and shall be heard by a 3-
        judge court convened pursuant to section 2284 of title 28, 
        United States Code.
          (2) A copy of the complaint shall be delivered promptly to 
        the Clerk of the House of Representatives and the Secretary of 
        the Senate.
          (3) A final decision in the action shall be reviewable only 
        by appeal directly to the Supreme Court of the United States. 
        Such appeal shall be taken by the filing of a notice of appeal 
        within 10 days, and the filing of a jurisdictional statement 
        within 30 days, of the entry of the final decision.
          (4) It shall be the duty of the United States District Court 
        for the District of Columbia and the Supreme Court of the 
        United States to advance on the docket and to expedite to the 
        greatest possible extent the disposition of the action and 
        appeal.
  (b) Intervention by Members of Congress.--In any action in which the 
constitutionality of any provision of this title or any amendment made 
by this title is raised (including but not limited to an action 
described in subsection (a)), any Member of the House of 
Representatives (including a Delegate or Resident Commissioner to 
Congress) or Senate shall have the right to intervene either in support 
of or opposition to the position of a party to the case regarding the 
constitutionality of the provision or amendment. To avoid duplication 
of efforts and reduce the burdens placed on the parties to the action, 
the court in any such action may make such orders as it considers 
necessary, including orders to require intervenors taking similar 
positions to file joint papers or to be represented by a single 
attorney at oral argument.
  (c) Challenge by Members of Congress.--Any Member of Congress may 
bring an action, subject to the special rules described in subsection 
(a), for declaratory or injunctive relief to challenge the 
constitutionality of any provision of this title or any amendment made 
by this title.
  (d) Applicability.--
          (1) Initial claims.--With respect to any action initially 
        filed on or before December 31, 2008, the provisions of 
        subsection (a) shall apply with respect to each action 
        described in such subsection.
          (2) Subsequent actions.--With respect to any action initially 
        filed after December 31, 2008, the provisions of subsection (a) 
        shall not apply to any action described in such subsection 
        unless the person filing such action elects such provisions to 
        apply to the action.

SEC. 607. SEVERABILITY.

  If any provision of this title or any amendment made by this title, 
or the application of a provision or amendment to any person or 
circumstance, is held to be unconstitutional, the remainder of this 
title and the amendments made by this title, and the application of the 
provisions and amendments to any person or circumstance, shall not be 
affected by the holding.

              TITLE VII--FORFEITURE OF RETIREMENT BENEFITS

SEC. 701. LOSS OF PENSIONS ACCRUED DURING SERVICE AS A MEMBER OF 
                    CONGRESS FOR ABUSING THE PUBLIC TRUST.

  (a) Civil Service Retirement System.--Section 8332 of title 5, United 
States Code, is amended by adding at the end the following:
  ``(o)(1) Notwithstanding any other provision of this subchapter, the 
service of an individual finally convicted of an offense described in 
paragraph (2) shall not be taken into account for purposes of this 
subchapter, except that this sentence applies only to service rendered 
as a Member (irrespective of when rendered). Any such individual (or 
other person determined under section 8342(c), if applicable) shall be 
entitled to be paid so much of such individual's lump-sum credit as is 
attributable to service to which the preceding sentence applies.
  ``(2)(A) An offense described in this paragraph is any offense 
described in subparagraph (B) for which the following apply:
          ``(i) Every act or omission of the individual (referred to in 
        paragraph (1)) that is needed to satisfy the elements of the 
        offense occurs while the individual is a Member.
          ``(ii) Every act or omission of the individual that is needed 
        to satisfy the elements of the offense directly relates to the 
        performance of the individual's official duties as a Member.
          ``(iii) The offense is committed after the date of enactment 
        of this subsection.
  ``(B) An offense described in this subparagraph is only the 
following, and only to the extent that the offense is a felony under 
title 18:
          ``(i) An offense under section 201 of title 18 (bribery of 
        public officials and witnesses).
          ``(ii) An offense under section 219 of title 18 (officers and 
        employees acting as agents of foreign principals).
          ``(iii) An offense under section 371 of title 18 (conspiracy 
        to commit offense or to defraud United States) to the extent of 
        any conspiracy to commit an act which constitutes an offense 
        under clause (i) or (ii).
  ``(3) An individual convicted of an offense described in paragraph 
(2) shall not, after the date of the final conviction, be eligible to 
participate in the retirement system under this subchapter or chapter 
84 while serving as a Member.
  ``(4) The Office of Personnel Management shall prescribe any 
regulations necessary to carry out this subsection. Such regulations 
shall include--
          ``(A) provisions under which interest on any lump-sum payment 
        under the second sentence of paragraph (1) shall be limited in 
        a manner similar to that specified in the last sentence of 
        section 8316(b); and
          ``(B) provisions under which the Office may provide for--
                  ``(i) the payment, to the spouse or children of any 
                individual referred to in the first sentence of 
                paragraph (1), of any amounts which (but for this 
                clause) would otherwise have been nonpayable by reason 
                of such first sentence, but only to the extent that the 
                application of this clause is considered necessary 
                given the totality of the circumstances; and
                  ``(ii) an appropriate adjustment in the amount of any 
                lump-sum payment under the second sentence of paragraph 
                (1) to reflect the application of clause (i).
  ``(5) For purposes of this subsection--
          ``(A) the term `Member' has the meaning given such term by 
        section 2106, notwithstanding section 8331(2); and
          ``(B) the term `child' has the meaning given such term by 
        section 8341.''.
  (b) Federal Employees' Retirement System.--Section 8411 of title 5, 
United States Code, is amended by adding at the end the following:
  ``(i)(1) Notwithstanding any other provision of this chapter, the 
service of an individual finally convicted of an offense described in 
paragraph (2) shall not be taken into account for purposes of this 
chapter, except that this sentence applies only to service rendered as 
a Member (irrespective of when rendered). Any such individual (or other 
person determined under section 8424(d), if applicable) shall be 
entitled to be paid so much of such individual's lump-sum credit as is 
attributable to service to which the preceding sentence applies.
  ``(2) An offense described in this paragraph is any offense described 
in section 8332(o)(2)(B) for which the following apply:
          ``(A) Every act or omission of the individual (referred to in 
        paragraph (1)) that is needed to satisfy the elements of the 
        offense occurs while the individual is a Member.
          ``(B) Every act or omission of the individual that is needed 
        to satisfy the elements of the offense directly relates to the 
        performance of the individual's official duties as a Member.
          ``(C) The offense is committed after the date of enactment of 
        this subsection.
  ``(3) An individual finally convicted of an offense described in 
paragraph (2) shall not, after the date of the conviction, be eligible 
to participate in the retirement system under this chapter while 
serving as a Member.
  ``(4) The Office of Personnel Management shall prescribe any 
regulations necessary to carry out this subsection. Such regulations 
shall include--
          ``(A) provisions under which interest on any lump-sum payment 
        under the second sentence of paragraph (1) shall be limited in 
        a manner similar to that specified in the last sentence of 
        section 8316(b); and
          ``(B) provisions under which the Office may provide for--
                  ``(i) the payment, to the spouse or children of any 
                individual referred to in the first sentence of 
                paragraph (1), of any amounts which (but for this 
                clause) would otherwise have been nonpayable by reason 
                of such first sentence, but only to the extent that the 
                application of this clause is considered necessary 
                given the totality of the circumstances; and
                  ``(ii) an appropriate adjustment in the amount of any 
                lump-sum payment under the second sentence of paragraph 
                (1) to reflect the application of clause (i).
  ``(5) For purposes of this subsection--
          ``(A) the term `Member' has the meaning given such term by 
        section 2106, notwithstanding section 8401(20); and
          ``(B) the term `child' has the meaning given such term by 
        section 8341.''.

                          Purpose and Summary

    H.R. 4975, the ``Lobbying Accountability and Transparency 
Act of 2006,'' provides for increased disclosure of efforts by 
paid lobbyists to influence the decision-making process and 
actions of Federal legislative and executive branch officials 
while protecting the constitutional right of the people to 
petition the government for a redress of their grievances. The 
Act is designed to strengthen public confidence in government 
by expanding the scope of disclosure under the Lobbying 
Disclosure Act of 1995. It also creates a more effective and 
equitable system for administering and enforcing these 
disclosure requirements.

                Background and Need for the Legislation

    The ``Lobbying Disclosure Act of 1995'' (LDA) \1\, was the 
first substantive reform in the laws governing lobbying 
disclosure in the 50 years after the Federal Regulation of 
Lobbying Act became law in 1946. Passage of the LDA was 
necessary to address a number of serious loopholes in the 1946 
Act. Since enactment of the LDA, paid, professional lobbyists 
are required to disclose relevant financial information 
regarding their lobbying efforts aimed at Congress and the 
executive branch, in addition to disclosing what particular 
issue areas they focus on.
---------------------------------------------------------------------------
    \1\ Pub. L. No. 104-65
---------------------------------------------------------------------------
    The term ``lobbyist'' simply refers to someone who seeks to 
inform government representatives regarding the issues that are 
important to the constituencies they represent. In fact, the 
term ``lobbyist'' was coined early in the nineteenth century 
simply to refer to people who waited to make their case to 
officials in the lobby of government buildings or nearby 
hotels. These lobbyists represented, and continue to represent, 
every side of every debate. The United States Constitution 
grants everyone the right to petition their government for a 
redress of their grievances,\2\ and professional political 
advocates are not excluded from this protection. H.R. 4975, as 
amended, strikes an appropriate balance that allows lobbyists 
to engage in lawful activities on behalf of their 
constituencies while providing for enhanced disclosure and 
suitable penalties for noncompliance.
---------------------------------------------------------------------------
    \2\ U.S. Const. amend. I.
---------------------------------------------------------------------------
    The ``Lobbying Accountability and Transparency Act of 
2006'' amends the Lobbying Disclosure Act to provide greater 
disclosure of these activities in order to enhance the public's 
confidence and respect in its government. To that end, title I 
provides for quarterly rather than biannual filing of more 
detailed lobbying disclosure reports and requires that this 
information be available to the public on the Internet in a 
form that can be easily sorted and searched by the average 
citizen. Title I also requires registered lobbyists to disclose 
past government employment over the previous 7 years. In 
addition, this title requires lobbyists to disclose 
contributions to Federal candidates, leadership and other PACs, 
and political party committees, and to disclose the recipient 
and amount of any gift that counts toward the cumulative annual 
limit of $100 as provided for under House Rules. The 
legislation also doubles the civil penalty from $50,000 to 
$100,000 for a failure to comply with these heightened 
reporting requirements.
    H.R. 4975 requires that the Clerk of the House to provide 
notice to Members and staff of post-employment restrictions and 
prohibits registered lobbyists from accompanying members on 
corporate flights. Title IV of the legislation enhances 
oversight of lobbying and enforcement by requiring the House 
Inspector General (IG) to conduct random audits of reports 
filed by lobbyists and authorizes the IG to refer violations to 
the Department of Justice for prosecution, thus providing an 
increased vigilance to current enforcement efforts.
    A bipartisan manager's amendment offered by Chairman 
Sensenbrenner and Ranking Member Conyers, which was adopted by 
the Committee, requires: additional quarterly disclosures by 
lobbyists, including disclosures of the names of Federal 
candidates and officeholders, their leadership PACs, or 
political committees for whom fundraising events are hosted by 
lobbyists; information regarding payments for events honoring 
Members; information regarding payments to entities named for 
Members, and payments to entities established, financed, 
maintained and controlled by Members as defined under current 
Federal regulations; and information regarding payments for 
retreats and conferences for the benefit of Members.
    The manager's amendment requires lobbyists to disclose the 
names of Members of Congress with whom lobbying contacts are 
made, and it requires the Clerk of the House of Representatives 
and the Secretary of the Senate to immediately give notice to 
Members every time a lobbyist files a disclosure listing a 
contact with the Member. The amendment also provides for 
criminal penalties for the knowing, willful, and corrupt 
violations of these provisions.

                                Hearings

    The Committee on the Judiciary's Subcommittee on the 
Constitution held a legislative hearing on H.R. 4975 on April 
4, 2006. Testimony was received from: Mr. Kenneth A. Gross, 
Partner at Skadden, Arps, Slate, Meagher & Flom LLP; Mr. John 
Graham, President and CEO of the American Society of 
Association Executives; the Honorable Chellie Pingree, 
President and CEO of Common Cause; and the Honorable Bradley A. 
Smith, Professor of Law at Capital University Law School and 
former Chairman of the Federal Election Commission.

                        Committee Consideration

    On April 5, 2006, the Committee met in open session and 
ordered favorably reported the bill H.R. 4975 as amended by a 
recorded vote of 18 yeas to 16 nays, a quorum being present.

                         Vote of the Committee

    In compliance with clause 3(b) of Rule XIII of the Rules of 
the House of Representatives, the Committee notes that the 
following roll call votes occurred during the Committee's 
consideration of H.R. 4975.
    1. An amendment was offered by Mr. Van Hollen that would 
require lobbyists to disclose information regarding any 
campaign contributions that the lobbyist solicited and 
transferred from any other person for or on behalf of a 
candidate or political committee. The amendment passed by a 
vote of 28 yeas to 4 nays.

                                                   ROLLCALL NO. 1
----------------------------------------------------------------------------------------------------------------
                                                                       Ayes            Nays           Present
----------------------------------------------------------------------------------------------------------------
Mr. Hyde........................................................              X
Mr. Coble.......................................................              X
Mr. Smith (Texas)...............................................              X
Mr. Gallegly....................................................              X
Mr. Goodlatte...................................................              X
Mr. Chabot......................................................              X
Mr. Lungren.....................................................
Mr. Jenkins.....................................................              X
Mr. Cannon......................................................                              X
Mr. Bachus......................................................
Mr. Inglis......................................................              X
Mr. Hostettler..................................................                              X
Mr. Green.......................................................              X
Mr. Keller......................................................              X
Mr. Issa........................................................              X
Mr. Flake.......................................................
Mr. Pence.......................................................
Mr. Forbes......................................................              X
Mr. King........................................................                              X
Mr. Feeney......................................................
Mr. Franks......................................................                              X
Mr. Gohmert.....................................................
Mr. Conyers.....................................................              X
Mr. Berman......................................................              X
Mr. Boucher.....................................................
Mr. Nadler......................................................              X
Mr. Scott.......................................................              X
Mr. Watt........................................................              X
Ms. Lofgren.....................................................              X
Ms. Jackson Lee.................................................              X
Ms. Waters......................................................              X
Mr. Meehan......................................................              X
Mr. Delahunt....................................................
Mr. Wexler......................................................              X
Mr. Weiner......................................................              X
Mr. Schiff......................................................              X
Ms. Sanchez.....................................................              X
Mr. Van Hollen..................................................              X
Ms. Wasserman Schultz...........................................              X
Mr. Sensenbrenner, Chairman.....................................              X
                                                                 -----------------------------------------------
    Total.......................................................             28               4
----------------------------------------------------------------------------------------------------------------

    2. Motion to report H.R. 4975 favorably as amended was 
agreed to by a vote of 18 yeas to 16 nays.

                                                   ROLLCALL NO. 2
----------------------------------------------------------------------------------------------------------------
                                                                       Ayes            Nays           Present
----------------------------------------------------------------------------------------------------------------
Mr. Hyde........................................................              X
Mr. Coble.......................................................              X
Mr. Smith (Texas)...............................................              X
Mr. Gallegly....................................................              X
Mr. Goodlatte...................................................              X
Mr. Chabot......................................................              X
Mr. Lungren.....................................................              X
Mr. Jenkins.....................................................              X
Mr. Cannon......................................................                              X
Mr. Bachus......................................................
Mr. Inglis......................................................              X
Mr. Hostettler..................................................              X
Mr. Green.......................................................              X
Mr. Keller......................................................              X
Mr. Issa........................................................              X
Mr. Flake.......................................................
Mr. Pence.......................................................
Mr. Forbes......................................................              X
Mr. King........................................................                              X
Mr. Feeney......................................................              X
Mr. Franks......................................................              X
Mr. Gohmert.....................................................                              X
Mr. Conyers.....................................................                              X
Mr. Berman......................................................                              X
Mr. Boucher.....................................................
Mr. Nadler......................................................
Mr. Scott.......................................................                              X
Mr. Watt........................................................                              X
Ms. Lofgren.....................................................                              X
Ms. Jackson Lee.................................................                              X
Ms. Waters......................................................              X
Mr. Meehan......................................................                              X
Mr. Delahunt....................................................
Mr. Wexler......................................................                              X
Mr. Weiner......................................................                              X
Mr. Schiff......................................................                              X
Ms. Sanchez.....................................................                              X
Mr. Van Hollen..................................................                              X
Ms. Wasserman Schultz...........................................                              X
Mr. Sensenbrenner, Chairman.....................................              X
                                                                 -----------------------------------------------
    Total.......................................................             18              16
----------------------------------------------------------------------------------------------------------------

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of Rule XIII of the Rules 
of the House of Representatives, the Committee reports that the 
findings and recommendations of the Committee, based on 
oversight activities under clause 2(b)(1) of Rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

               New Budget Authority and Tax Expenditures

    Section 103(c) of H.R. 4975 authorizes the appropriation of 
such sums as may be necessary to carry out the Clerk's new 
duties relating to maintaining an Internet database of lobbying 
disclosure forms.

               Congressional Budget Office Cost Estimate

    In compliance with clause 3(c)(3) of Rule XIII of the Rules 
of the House of Representatives, the Committee sets forth, with 
respect to the bill, H.R. 4975, the following estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, April 19, 2006.
Hon. F. James Sensenbrenner, Jr., Chairman,
Committee on the Judiciary,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4975, the 
``Lobbying Accountability and Transparency Act of 2006.''
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Matthew 
Pickford (for Federal costs), who can be reached at 226-2860, 
and Craig Cammarata (for the private-sector impact), who can be 
reached at 226-2940.
            Sincerely,
                                          Donald B. Marron,
                                           Acting Director.

Enclosure

cc:
        Honorable John Conyers, Jr.
        Ranking Member
H.R. 4975--Lobbying Accountability and Transparency Act of 2006.

                                SUMMARY

    H.R. 4975 would amend the Lobbying Disclosure Act of 1995 
and the Federal Election Campaign Act of 1971. Major provisions 
of the legislation would expand reporting requirements for 
lobbyists and Members of Congress, temporarily ban privately 
funded travel, create additional restrictions on gifts and 
travel, and require training for Members and staff on ethics 
issues. The legislation also would eliminate pension benefits 
for Members convicted of certain offenses. In addition, H.R. 
4975 would require certain political organizations involved in 
Federal election activities to register with the Federal 
Election Commission (FEC).
    CBO estimates that implementing H.R. 4975 would cost about 
$2 million in fiscal year 2007 and $1 million a year in 
subsequent years, subject to the availability of appropriated 
funds. Enacting the bill would increase governmental receipts 
and direct spending from new violations of campaign finance 
laws, but CBO estimates that those effects would not be 
significant.
    H.R. 4975 contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act (UMRA) and would impose no 
costs on State, local, or tribal governments.
    H.R. 4975 would impose several private-sector mandates, as 
defined in UMRA, on the lobbying industry and certain political 
organizations. Based on information from government sources, 
CBO estimates that the total direct cost of all of the mandates 
in the bill would fall below the annual threshold established 
by UMRA for private-sector mandates ($128 million in 2006, 
adjusted annually for inflation).

                ESTIMATED COST TO THE FEDERAL GOVERNMENT

    The estimated budgetary impact of H.R. 4975 is shown in the 
following table. The costs of this legislation fall within 
budget function 800 (general government).

                 By Fiscal Year, in Millions of Dollars
------------------------------------------------------------------------
                                        2007   2008   2009   2010   2011
------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION \1\
Estimated Authorization Level              2      1      1      1      1
Estimated Outlays                          2      1      1      1      1
------------------------------------------------------------------------
1. Enacting the bill could also increase collections from civil and
  criminal penalties. Such penalties are recorded in the budget as
  revenues, and criminal penalties may later be spent. CBO estimates any
  resulting collections and spending would be less than $500,000 a year.
  The bill also could reduce pensions for certain Members of Congress,
  but CBO estimates any such savings in direct spending would also be
  less than $500,000 a year.

                           BASIS OF ESTIMATE

    For this estimate, CBO assumes that the bill will be 
enacted near the end of fiscal year 2006 and that spending will 
follow historical patterns for similar activities.
Spending Subject to Appropriation
    The legislation would expand reporting requirements for 
lobbyists and would require the Congress to provide Members and 
staff with additional training on ethics issues. Based on 
information from Congressional administrative staff, CBO 
estimates that Congressional offices and committees would spend 
about $1 million annually to collect and disseminate newly 
reported information from lobbyists and to provide the required 
ethics training.
    In addition, H.R. 4975 would require certain political 
organizations, defined by section 527 of the tax code, to 
register with the FEC. Based on information from the FEC and 
subject to the availability of appropriated funds, CBO 
estimates that implementing the legislation would cost the FEC 
about $1 million in fiscal year 2007. This cost would cover 
one-time, computer-related expenses as well as writing new 
regulations to implement the new provisions of the legislation. 
In future years, the legislation would increase general 
administrative costs to the FEC, but we estimate that those 
additional costs would not be significant.
Revenues and Direct Spending
    Enacting H.R. 4975 would likely increase Federal revenues 
and direct spending as a result of additional civil and 
criminal penalties for new violations of campaign finance law. 
Collections of civil penalties are recorded in the budget as 
revenues. Collections of criminal penalties are recorded in the 
budget as revenues, deposited in the Crime Victims Fund, and 
later spent without further appropriation. CBO estimates, 
however, that any additional revenues that would result from 
enacting the bill would not be significant because of the 
relatively small number of cases likely to be involved.
    H.R. 4975 also would deny pension benefits (based on 
periods of elected service) to Members convicted of bribery, 
acting as foreign agents, or defrauding the Federal Government. 
CBO estimates that any savings in direct spending as a result 
of this provision would not be significant because we expect 
that the number of violations would be small.

        ESTIMATED IMPACT ON STATE, LOCAL, AND TRIBAL GOVERNMENTS

    H.R. 4975 contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act and would impose no costs 
on State, local, or tribal governments.

                 ESTIMATED IMPACT ON THE PRIVATE SECTOR

    H.R. 4975 would impose several private-sector mandates, as 
defined in UMRA, on the lobbying industry and certain political 
organizations. The bill would impose new restrictions on 
lobbying activities and require lobbyists and lobbying 
organizations to submit additional reports and disclosures to 
the Senate Office of Public Records and the Office of the Clerk 
of the House. The bill also would require certain 527 
organizations to register as political committees with the 
Federal Election Commission and comply with current regulations 
on Federal campaign finance. Based on information from 
government sources, CBO estimates that the total direct cost of 
all of the mandates in the bill would fall below the annual 
threshold established by UMRA for private-sector mandates ($128 
million in 2006, adjusted annually for inflation).
    The bill would impose several new requirements on lobbyists 
and lobbying organizations. Requirements on lobbyists and 
lobbying organizations would include but not be limited to:

         Electronic filing of lobbyist registrations 
        and disclosure reports filed with the Secretary of the 
        Senate or the Clerk of the House of Representatives;

         Quarterly, instead of semiannual, filing of 
        lobbying disclosure reports;

         Additional information in registration and 
        disclosure reports including information on 
        contributions to Members, Congressional staff, Federal 
        officers and political entities by lobbyists; any gifts 
        distributed by lobbying entities; and whether or not 
        each registered lobbyist had prior experience as a 
        covered executive or legislative branch official.

    As of January 1, 2006, all lobbyists and lobbying 
organizations must register and file semiannual disclosure 
reports electronically to the Clerk of the House. However, 
electronic reporting is still optional for lobbyists and 
lobbying organizations filing in the Senate. Since all 
lobbyists must file similar reports to both the Clerk of the 
House and the Secretary of the Senate, the incremental cost of 
filing reports electronically to the Senate should be minimal. 
Generally, because such entities already collect the 
information requested in the registration and disclosure 
reports, CBO estimates that the incremental costs associated 
with the new reporting requirements in the bill would not be 
substantial relative to UMRA's annual threshold for private-
sector mandates.
    The bill also would prohibit lobbyists from traveling on an 
aircraft that is owned by a client and is not licenced by the 
FAA to operate for compensation if a Member, delegate, resident 
commissioner, officer or employee of the House is on board. 
According to government and industry sources, roughly 500 or 
less of those recorded flights are made each year. That 
estimate includes Federal officials and staff from both the 
executive and legislative branches. H.R 4975 would only 
restrict the travel of a lobbyist with House officials and 
staff. The bill would not prohibit employees of the client from 
traveling on such planes with a Member, delegate, resident 
commissioner, officer or employee of the House. Thus, CBO 
estimates that the direct costs associated with complying with 
the mandate would be minimal compared to UMRA's threshold.
    The bill would change the definition of a political 
committee to include certain ``527'' organizations, as defined 
by section 527 of the Internal Revenue Code. Those 
organizations would be required to register as political 
committees with the FEC and comply with current regulations on 
Federal campaign finance, including certain limits on 
contributions and reporting and disclosure requirements. Based 
on information from the FEC, CBO estimates that the direct 
costs associated with those requirements would be minimal.

                         PREVIOUS CBO ESTIMATES

    Many of the lobbying reform and campaign finance provisions 
in the eight pieces of legislation listed below are contained 
in H.R. 4975. The differences among these bills are reflected 
in the cost estimates. However, the four versions of H.R. 4975 
are very similar, and as such, their estimated costs are nearly 
identical.

         On April 19, 2006, CBO transmitted a cost 
        estimate for H.R. 4975 as ordered reported by the House 
        Committee on Government Reform on April 6, 2006.

         On April 19, 2006, CBO transmitted a cost 
        estimate for H.R. 4975 as ordered reported by the House 
        Committee on House Administration on April 6, 2006.

         On April 19, 2006, CBO transmitted a cost 
        estimate for H.R. 4975 as ordered reported by the House 
        Committee on Rules, on April 5, 2006.

         On March 7, 2006, CBO transmitted a cost 
        estimate for S. 2349, the Legislative Transparency and 
        Accountability Act of 2006, as ordered reported by the 
        Senate Committee on Rules and Administration on March 
        1, 2006.

         On March 6, 2006, CBO transmitted a cost 
        estimate for S. 2128, the Lobbying Transparency and 
        Accountability Act of 2006, as ordered reported by the 
        Senate Committee on Homeland Security and Governmental 
        Affairs on March 3, 2006.

         On July, 13, 2005, CBO transmitted a cost 
        estimate for H.R. 513, the 527 Reform Act of 2005, as 
        ordered reported by the House Committee on 
        Administration on June 29, 2005.

         On July 6, 2005, CBO transmitted a cost 
        estimate for S. 1053, the 527 Reform Act of 2005, as 
        ordered reported by the Senate Committee on Rules and 
        Administration on April 27, 2005.

         On June 17, 2005, CBO transmitted a cost 
        estimate for H.R. 1316, the 527 Fairness Act of 2005, 
        as ordered reported by the House Committee on House 
        Administration on June 8, 2005.

                         ESTIMATE PREPARED BY:

Federal Costs: Matthew Pickford and Deborah Reis (226-2860)
Impact on State, Local, and Tribal Governments: Sarah Puro 
    (225-3220)
Impact on the Private-Sector: Craig Cammarata (226-2940)

                         ESTIMATE APPROVED BY:

Peter H. Fontaine
Deputy Assistant Director for Budget Analysis

                    Performance Goals and Objectives

    The Committee states that pursuant to clause 3(c)(4) of 
Rule XIII of the Rules of the House of Representatives, H.R. 
4975 strengthens public confidence in government by expanding 
the scope of disclosure under the Lobbying Disclosure Act of 
1995. It also creates a more effective and equitable system for 
administering and enforcing the disclosure requirements.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of Rule XIII of the Rules of the 
House of Representatives, the Committee finds the authority for 
this legislation in art. I, Sec. 5, cl. 2 and art I, Sec. 8, 
cl. 3 of the Constitution.

               Section-by-Section Analysis and Discussion

    The following section describes the provisions of the bill 
as reported that are within the Committee on the Judiciary's 
jurisdiction.

                 TITLE I--ENHANCING LOBBYING DISCLOSURE

Sec. 101. Quarterly filing of lobbying disclosure reports.
    Section 101 requires quarterly, rather than semi-annual, 
filing by registered lobbyists, and adjusts the threshold and 
triggering amounts in the Lobbying Disclosure Act (LDA) to 
reflect the new quarterly periods. Section 101 would also 
reduce the reporting thresholds in 2 U.S.C. Sec. 1604 to $2,500 
for lobbying income per quarterly reporting period and $10,000 
in lobbying expenses per quarterly reporting period. This 
section reduces the estimated range in which lobbyist report 
income or expenses to $1,000.
Sec. 102. Electronic filing of lobbying registrations and disclosure 
        reports.
    Section 102 would amend the LDA to require that LDA 
registrations and reports be filed in electronic form in 
addition to any other form that may be required by the Clerk of 
the House of Representatives or the Secretary of the Senate.
Sec. 103. Public database of lobbying disclosure information.
    Section 103 would amend the LDA to require creation and 
maintenance by the Clerk of the House of Representatives and 
the Secretary of the Senate a searchable, sortable, and 
downloadable database containing LDA registration and 
disclosure information, made available through the Internet. 
The manager's amendment that was adopted by the Committee also 
requires the Clerk and Secretary to link this database to the 
public disclosure forms for the registrants on the Federal 
Election Commission's website.
Sec. 104. Disclosure by registered lobbyists of past executive branch 
        and congressional employment.
    Section 104 amends the LDA to require lobbyists to disclose 
all prior executive and legislative branch employment for the 
seven years prior to registration in their registration 
statements.
Sec. 105. Disclosure of lobbyist contributions and gifts.
    Section 105 amends the LDA to require lobbyists to disclose 
any gifts that count toward the annual gift limit established 
by House Rules (a $100 cumulative limit on gifts from a given 
source). Section 105(a) also requires each LDA registrant and 
lobbyist and any affiliated political committee to disclose any 
contributions made to Federal candidates, officeholders, 
leadership PACs, political party committees, or other entities 
that would be subject to disclosure under the Federal Election 
Campaign Act.
    The amendments adopted at the Committee added new 
disclosures of the names of Federal candidates and 
officeholders, their leadership PACs, or political committees 
for whom fundraising events are hosted by lobbyists. It also 
required lobbyists to disclose information regarding payments 
for events honoring Members or to entities named for Members. 
Section 105, as amended, requires disclosures of payment made 
to entities established, financed, maintained, or controlled by 
Members; as well as lobbyist disclosures of payments for 
retreats and conferences for the benefit of Members. Section 
105 adds a new subsection to 2 U.S.C. Sec. 1604 relating to the 
factors that determine when a Member established, financed, 
maintained, or controlled an entity. These factors are taken 
from existing Federal Election Commission regulations.
    Finally, Section 105 requires disclosure of the names of 
Members of Congress and their employees with whom lobbying 
contacts are made. It also requires the Clerk to notify Members 
and their employees immediately when their names appear in 
lobbyists' disclosure reports.
Sec. 106. Increased penalty for failure to comply with lobbying 
        disclosure requirements.
    Section 106 raises civil penalties for knowingly failing to 
file or other violations of the LDA from the $50,000 fine in 
current law to $100,000. The manager's amendment adopted by the 
Committee provides for criminal penalties of not more than 3 
years in jail for knowing and willfull failures to comply with 
the LDA, and for not more than 5 years for knowing, willfull, 
and corrupt failures to comply.
Sec. 107. Requiring lobbyists to file reports on solicitations and 
        transfers of contributions for candidates.
    Section 107 requires lobbyists to disclose information 
regarding any campaign contribution that the lobbyist solicited 
from any other person for or on behalf of a candidate or 
political committee, and transferred from another person to a 
candidate or political committee. Lobbyists who serve as the 
treasurer of an authorized committee of a candidate or as the 
treasurer or chair of any other political committee are 
required to report this information. These disclosures are made 
separately from the lobbying disclosure reports required under 
2 U.S.C. Sec. 1604, and are to be filed monthly.
Sec. 108. GAO Study of employment contracts of lobbyists.
    Section 108 requires that the Comptroller General conduct a 
study of the employment contracts of lobbyists to determine the 
extent of contingent fee arrangements and report such findings 
to the House Committee on the Judiciary.

                  TITLE II--SLOWING THE REVOLVING DOOR

Sec. 201. Notification of post-employment restrictions.
    Section 201 amends 18 U.S.C. Sec. 207(e) to require the 
Clerk of the House to notify departing Members and staff of the 
current restrictions on post-employment lobbying.

  TITLE III--SUSPENSION OF PRIVATELY-FUNDED TRAVEL; CURBING LOBBYIST 
                                 GIFTS

Sec. 303. Prohibiting registered lobbyists on corporate flights.
    Section 303 amends the LDA to prohibit a lobbyist from 
flying with a House Member or staff on a private aircraft 
(aircraft not licensed by the Federal Aviation Administration 
for commercial air travel) if the aircraft is owned or operated 
by a client of the lobbyist or a lobbying firm.

            TITLE IV--OVERSIGHT OF LOBBYING AND ENFORCEMENT

Sec. 401. Audits of lobbying reports by House Inspector General.
    Sections 401 requires the Inspector General of the House to 
audit LDA disclosure information, and gives the Inspector 
General the authority to refer potential violations of the Act 
to the Department of Justice.
Sec. 402. House Inspector General review and annual reports.
    Section 402 provides for ongoing reviews and annual reports 
by the Inspector General on activities carried out by the Clerk 
of the House under the LDA.

             TITLE VI--REFORM OF SECTION 527 ORGANIZATIONS

Sec. 606. Judicial review.
    Section 606 provides expedited consideration of 
constitutional challenges to title VI of the bill. Any such 
action for declaratory or injunctive relief shall be filed in 
the United States District Court for the District of Columbia, 
and will be heard by a 3-judge court convened for that purpose. 
The decision of the district court is appealable only to the 
United States Supreme Court. Section 606 give standing to 
Members of Congress to intervene or challenge title VI on their 
own. These provisions are identical to the ones contained in 
the Bipartisan Campaign Finance Reform Act of 2002.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

LOBBYING DISCLOSURE ACT OF 1995

           *       *       *       *       *       *       *


SEC. 3. DEFINITIONS.

  As used in this Act:
          (1)  * * *

           *       *       *       *       *       *       *

          (10) Lobbyist.--The term ``lobbyist'' means any 
        individual who is employed or retained by a client for 
        financial or other compensation for services that 
        include more than one lobbying contact, other than an 
        individual whose lobbying activities constitute less 
        than 20 percent of the time engaged in the services 
        provided by such individual to that client over a [six 
        month period] 3-month period.

           *       *       *       *       *       *       *

          (17) Gift.--The term ``gift'' means a gratuity, 
        favor, discount, entertainment, hospitality, loan, 
        forbearance, or other item having monetary value. The 
        term includes gifts of services, training, and meals, 
        whether provided in kind, by purchase of a ticket, 
        payment in advance, or reimbursement after the expense 
        has been incurred.
          (18) Leadership PAC.--The term ``leadership PAC'' 
        means an unauthorized political committee that is 
        established, financed, maintained, and controlled by an 
        individual who is a Federal officeholder or a candidate 
        for Federal office.

SEC. 4. REGISTRATION OF LOBBYISTS.

  (a) Registration.--
          (1)  * * *

           *       *       *       *       *       *       *

          (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 [$5,000] $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 [$20,000] $10,000,
                (as estimated under section 5) in the 
                [semiannual period] quarterly period described 
                in section 5(a) during which the registration 
                would be made is not required to register under 
                subsection (a) with respect to such client.

           *       *       *       *       *       *       *

  (b) Contents of Registration.--Each registration under this 
section shall contain--
          (1)  * * *

           *       *       *       *       *       *       *

          (3) the name, address, and principal place of 
        business of any organization, other than the client, 
        that--
                  (A) contributes more than [$10,000] $5,000 
                toward the lobbying activities of the 
                registrant in a [semiannual period] quarterly 
                period described in section 5(a); and

           *       *       *       *       *       *       *

          (4) the name, address, principal place of business, 
        amount of any contribution of more than [$10,000] 
        $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)  * * *

           *       *       *       *       *       *       *

          (6) 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] 7 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.

           *       *       *       *       *       *       *

  (d) Electronic Filing Required.--A registration required to 
be filed under this section on or after the date of enactment 
of the Lobbying Accountability and Transparency Act of 2006 
shall be filed in electronic form, in addition to any other 
form that may be required by the Secretary of the Senate or the 
Clerk of the House of Representatives. The due date for a 
registration filed in electronic form shall be no later than 
the due date for a registration filed in any other form.
  [(d)] (e) Termination of Registration.--A registrant who 
after registration--
          (1)  * * *

           *       *       *       *       *       *       *


SEC. 5. REPORTS BY REGISTERED LOBBYISTS.

  (a) [Semiannual] Quarterly Report.--No later than [45] 20 
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] the quarterly period beginning on the first day of 
January, April, July, and October of each year in which a 
registrant is registered under section 4, each registrant shall 
file a report with the Secretary of the Senate and the Clerk of 
the House of Representatives on its lobbying activities during 
[such semiannual period] such quarterly period. A separate 
report shall be filed for each client of the registrant.
  (b) Contents of Report.--Each [semiannual report] quarterly 
report filed under subsection (a) shall contain--
          (1)  * * *
          (2) for each general issue area in which the 
        registrant engaged in lobbying activities on behalf of 
        the client during the [semiannual filing period] 
        quarterly period--
                  (A)  * * *

           *       *       *       *       *       *       *

          (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] quarterly 
        period, other than income for matters that are 
        unrelated to lobbying activities; [and]
          (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.] 
        quarterly period;
          (5) for each registrant (and for any political 
        committee, as defined in 301(4) of the Federal Election 
        Campaign Act of 1971 (2 U.S.C. 431(4)), affiliated with 
        the registrant), and for each employee listed as a 
        lobbyist by the registrant under paragraph (2)(C)--
                  (A) the name of each Federal candidate or 
                officeholder, and of each leadership PAC, 
                political party committee, or other political 
                committee to whom a contribution was made which 
                is required to be reported to the Federal 
                Election Commission by the recipient, and the 
                date and amount of such contribution; and
                  (B) the name of each Federal candidate or 
                officeholder, leadership PAC of such candidate 
                or officeholder, or political party committee 
                for whom a fundraising event was hosted or 
                cohosted (as stated on the official invitation) 
                by the registrant and each employee listed by 
                the registrant as a lobbyist, the date and 
                location of the event, and the total amount 
                raised by the event;
          (6) the date, recipient, and amount of any gift that 
        under the Rules of the House of Representatives counts 
        towards the cumulative annual limit described in such 
        rules and is given to a covered legislative branch 
        official by the registrant or an employee listed as a 
        lobbyist by the registrant under paragraph (2)(C);
          (7) the date, recipient, and amount of funds 
        contributed by the registrant or an employee listed as 
        a lobbyist by the registrant under paragraph (2)(C) --
                  (A) to pay the costs of an event the purpose 
                of which is (as stated by the registrant or 
                employee, or in official materials describing 
                the event) to honor or recognize a covered 
                legislative branch official or covered 
                executive branch official;
                  (B) to, or on behalf of, an entity that is 
                named for a covered legislative branch official 
                or covered executive branch official, or to a 
                person or entity in recognition of such 
                official;
                  (C) to an entity established, financed, 
                maintained, or controlled by a covered 
                legislative branch official or covered 
                executive branch official, or an entity 
                designated by such official; or
                  (D) to pay the costs of a meeting, retreat, 
                conference, or substantially similar event held 
                by, or for the benefit of, 1 or more covered 
                legislative branch officials or covered 
                executive branch officials;
        except that this paragraph shall not apply to any 
        payment or reimbursement made from funds required to be 
        reported under section 304 of the Federal Election 
        Campaign Act of 1971 (2 U.S.C. 434); and
          (8) the name of each Member of Congress, and each 
        employee of a Member of Congress, with whom any 
        lobbying contact has been made on behalf of the client 
        by the registrant or an employee listed as a lobbyist 
        by the registrant under paragraph (2)(C).
  (c) Estimates of Income or Expenses.--For purposes of this 
section, estimates of income or expenses shall be made as 
follows:
          (1) Estimates of amounts in excess of [$10,000] 
        $5,000 shall be rounded to the nearest [$20,000] 
        $1,000.
          (2) In the event income or expenses do not exceed 
        [$10,000] $5,000, the registrant shall include a 
        statement that income or expenses totaled less than 
        [$10,000] $5,000 for the reporting period.
  (d) Electronic Filing Required.--
          (1) In general.--A report required to be filed under 
        this section shall be filed in electronic form, in 
        addition to any other form that may be required by the 
        Secretary of the Senate or the Clerk of the House of 
        Representatives. The due date for a report filed in 
        electronic form shall be no later than the due date for 
        a report filed in any other form, except as provided in 
        paragraph (2).
          (2) Extension of time to file in electronic form.--
        The Secretary of the Senate or the Clerk of the House 
        of Representatives may establish a later due date for 
        the filing of a report in electronic form by a 
        registrant, if and only if--
                  (A) on or before the original due date, the 
                registrant--
                          (i) timely files the report in every 
                        form required, other than electronic 
                        form; and
                          (ii) makes a request for such a later 
                        due date to the Secretary or the Clerk, 
                        as the case may be; and
                  (B) the request is supported by good cause 
                shown.
  (e) Factors to Determine Relationship Between Officials and 
Other Entities.--
          (1) In general.--In determining under subsection 
        (b)(7)(C) whether a covered legislative branch official 
        or covered executive branch official directly or 
        indirectly established, finances, maintains, or 
        controls an entity, the factors described in paragraph 
        (2) shall be examined in the context of the overall 
        relationship between that covered official and the 
        entity to determine whether the presence of any such 
        factor or factors is evidence that the covered official 
        directly or indirectly established, finances, 
        maintains, or controls the entity.
          (2) Factors.--The factors referred to in paragraph 
        (1) include, but are not limited to, the following:
                  (A) Whether the covered official, directly or 
                through its agent, owns a controlling interest 
                in the voting stock or securities of the 
                entity.
                  (B) Whether the covered official, directly or 
                through its agent, has the authority or ability 
                to direct or participate in the governance of 
                the entity through provisions of constitutions, 
                bylaws, contracts, or other rules, or through 
                formal or informal practices or procedures.
                  (C) Whether the covered official, directly or 
                through its agent, has the authority or ability 
                to hire, appoint, demote, or otherwise control 
                the officers or other decisionmaking employees 
                or members of the entity.
                  (D) Whether the covered official has a common 
                or overlapping membership with the entity that 
                indicates a formal or ongoing relationship 
                between the covered official and the entity.
                  (E) Whether the covered official has common 
                or overlapping officers or employees with the 
                entity that indicates a formal or ongoing 
                relationship between the covered official and 
                the entity.
                  (F) Whether the covered official has any 
                members, officers, or employees who were 
                members, officers, or employees of the entity 
                that indicates a formal or ongoing relationship 
                between the covered official and the entity, or 
                that indicates the creation of a successor 
                entity.
                  (G) Whether the covered official, directly or 
                through its agent, provides funds or goods in a 
                significant amount or on an ongoing basis to 
                the entity, such as through direct or indirect 
                payments for administrative, fundraising, or 
                other costs.
                  (H) Whether the covered official, directly or 
                through its agent, causes or arranges for funds 
                in a significant amount or on an ongoing basis 
                to be provided to the entity.
                  (I) Whether the covered official, directly or 
                through its agent, had an active or significant 
                role in the formation of the entity.
                  (J) Whether the covered official and the 
                entity have similar patterns of receipts or 
                disbursements that indicate a formal or ongoing 
                relationship between the covered official and 
                the entity.
  (f) Reports of Solicitations and Transfers of Contributions 
in Federal Elections.--
          (1) Reports of solicitations and transfers 
        required.--Any lobbyist registered under section 4 who 
        solicits a contribution for or on behalf of a candidate 
        or political committee from any other person and 
        transmits the contribution to the candidate or 
        political committee, or who transfers any contribution 
        made by any other person to a candidate or political 
        committee, shall file a report with the Secretary of 
        the Senate and the Clerk of the House of 
        Representatives containing--
                  (A) the name, address, business telephone 
                number, and principal place of business of the 
                lobbyist, and a general description of the 
                lobbyist's business or activities;
                  (B) the name of the person from whom the 
                lobbyist solicited the contribution or from 
                whom the lobbyist transferred the contribution; 
                and
                  (C) the identity of the candidate or 
                political committee on whose behalf the 
                contribution was solicited and transmitted or 
                transferred (and, in the case of a political 
                committee which is an authorized committee of a 
                candidate, the identity of the candidate).
          (2) Reports of service as officer of political 
        committee.--Any lobbyist registered under section 4 who 
        serves as the treasurer of an authorized committee of a 
        candidate for election for Federal office or as the 
        treasurer or chair of any other political committee, 
        shall file a report with the Secretary of the Senate 
        and the Clerk of the House of Representatives 
        containing the position held by the lobbyist and the 
        identity of the candidate and committee involved.
          (3) Timing of reports.--Reports required to be filed 
        under this subsection shall be filed for the same time 
        periods required for political committees under section 
        304(a)(4)(B) of the Federal Election Campaign Act of 
        1971, except that a report is not required to be filed 
        under this subsection with respect to any month during 
        which the lobbyist did not solicit and transmit or 
        transfer a contribution described in paragraph (1) or 
        serve in a position described in paragraph (2).
          (4) Exception for lobbyists as candidates.--In the 
        case of a lobbyist who is a candidate for election for 
        Federal office, paragraph (1) shall not apply to a 
        contribution made to the lobbyist or to an authorized 
        committee of the lobbyist.
          (5) Definitions.--In this subsection, the terms 
        ``authorized committee'', ``candidate'', ``election'', 
        and ``political committee'' have the meanings given 
        those terms in section 301 of the Federal Election 
        Campaign Act of 1971.

SEC. 5A. PROHIBITING REGISTERED LOBBYISTS ON CORPORATE FLIGHTS.

  If a Representative in, or Delegate or Resident Commissioner 
to, the Congress, or an officer or employee of the House of 
Representatives, is a passenger or crew member on a flight of 
an aircraft that is not licensed by the Federal Aviation 
Administration to operate for compensation or hire and that is 
owned or operated by a person who is the client of a lobbyist 
or a lobbying firm, then such lobbyist may not be a passenger 
or crew member on that flight.

SEC. 6. DISCLOSURE AND ENFORCEMENT.

  The Secretary of the Senate and the Clerk of the House of 
Representatives shall--
          (1)  * * *
          (2) [review] (A) review, and, where necessary, verify 
        and inquire to ensure the accuracy, completeness, and 
        timeliness of registration and reports; and
          (B) if a report states (under section 5(b)(8) or 
        otherwise) that a Member of Congress, or an employee of 
        a Member of Congress, was the subject of a lobbying 
        contact, immediately inform that Member or employee (as 
        the case may be) of that report;

           *       *       *       *       *       *       *

          (4) make available for public inspection and copying 
        at reasonable times the registrations and reports filed 
        under this Act and, in the case of a registration filed 
        in electronic form pursuant to section 4(d) or a report 
        filed in electronic form pursuant to section 5(d), 
        shall make such registration or report (as the case may 
        be) available for public inspection over the Internet 
        not more than 48 hours after the registration or report 
        (as the case may be) is approved as received by the 
        Secretary of the Senate or the Clerk of the House of 
        Representatives (as the case may be);

           *       *       *       *       *       *       *

          (6) compile and summarize, with respect to each 
        [semiannual period] quarterly period, the information 
        contained in registrations and reports filed with 
        respect to such period in a clear and complete manner;
          (7) notify any lobbyist or lobbying firm in writing 
        that may be in noncompliance with this Act; [and]
          (8) notify the United States Attorney for the 
        District of Columbia that a lobbyist or lobbying firm 
        may be in noncompliance with this Act, if the 
        registrant has been notified in writing and has failed 
        to provide an appropriate response within 60 days after 
        notice was given under paragraph (7)[.]; and
          (9) maintain, and make available to the public over 
        the Internet, without a fee or other access charge, in 
        a searchable, sortable, and downloadable manner, an 
        electronic database that--
                  (A) includes the information contained in 
                registrations and reports filed under this Act;
                  (B) directly links the information it 
                contains to the information disclosed in 
                reports filed with the Federal Election 
                Commission under section 304 of the Federal 
                Election Campaign Act of 1971 (2 U.S.C. 434); 
                and
                  (C) is searchable and sortable, at a minimum, 
                by each of the categories of information 
                described in sections 4(b) and 5(b).

SEC. 7. PENALTIES.

  [Whoever] (a) Civil Penalty.--Whoever knowingly fails to--
          (1) remedy a defective filing within 60 days after 
        notice of such a defect by the Secretary of the Senate 
        or the Clerk of the House of Representatives; or
          (2) comply with any other provision of this Act;
shall, upon proof of such knowing violation by a preponderance 
of the evidence, be subject to a civil fine of not more than 
[$50,000] $100,000, depending on the extent and gravity of the 
violation.
  (b) Criminal Penalty.--
          (1) In general.--Whoever knowingly and willfully 
        fails to comply with any provision of this Act shall be 
        imprisoned not more than 3 years, or fined under title 
        18, United States Code, or both.
          (2) Corruptly.--Whoever knowingly, willfully, and 
        corruptly fails to comply with any provision of this 
        Act shall be imprisoned not more than 5 years, or fined 
        under title 18, United States Code, or both.

           *       *       *       *       *       *       *


SEC. 15. ESTIMATES BASED ON TAX REPORTING SYSTEM.

  (a) Entities Covered by Section 6033(b) of the Internal 
Revenue Code of 1986.--A person, other than a lobbying firm, 
that is required to report and does report lobbying 
expenditures pursuant to section 6033(b)(8) of the Internal 
Revenue Code of 1986 may--
          (1) make a good faith estimate (by category of dollar 
        value) of applicable amounts that would be required to 
        be disclosed under such section for the appropriate 
        [semiannual period] quarterly period to meet the 
        requirements of sections 4(a)(3) and 5(b)(4); and

           *       *       *       *       *       *       *

  (b) Entities Covered by Section 162(e) of the Internal 
Revenue Code of 1986.--A person, other than a lobbying firm, 
who is required to account and does account for lobbying 
expenditures pursuant to section 162(e) of the Internal Revenue 
Code of 1986 may--
          (1) make a good faith estimate (by category of dollar 
        value) of applicable amounts that would not be 
        deductible pursuant to such section for the appropriate 
        [semiannual period] quarterly period to meet the 
        requirements of sections 4(a)(3) and 5(b)(4); and
                              ----------                              


              SECTION 207 OF TITLE 18, UNITED STATES CODE

Sec. 207. Restrictions on former officers, employees, and elected 
                    officials of the executive and legislative branches

  (a)  * * *

           *       *       *       *       *       *       *

  (e) Restrictions on Members of Congress and Officers and 
Employees of the Legislative Branch.--
          (1)  * * *

           *       *       *       *       *       *       *

          (8) Notification of post-employment restrictions.--
        After a Member of the House of Representatives or an 
        elected officer of the House of Representatives leaves 
        office, or after the termination of employment with the 
        House of Representatives of an employee of the House of 
        Representatives covered under paragraph (2), (3), or 
        (4), the Clerk of the House of Representatives, after 
        consultation with the Committee on Standards of 
        Official Conduct, shall inform the Member, officer, or 
        employee of the beginning and ending date of the 
        prohibitions that apply to the Member, officer, or 
        employee under this subsection, and also inform each 
        office of the House of Representatives with respect to 
        which such prohibitions apply of those dates.
                              ----------                              


RULES OF THE HOUSE OF REPRESENTATIVES

           *       *       *       *       *       *       *


                               RULE XXIII

                        Code of Official Conduct

  There is hereby established by and for the House the 
following code of conduct, to be known as the ``Code of 
Official Conduct'':
          1. * * *

           *       *       *       *       *       *       *

  14. (a) A Member, Delegate, or Resident Commissioner shall 
file with the Committee on Standards of Official Conduct a 
statement that he or she is negotiating compensation for 
prospective employment or has any arrangement concerning 
prospective employment if a conflict of interest or the 
appearance of a conflict of interest may exist. Such statement 
shall be made within 5 days (other than Saturdays, Sundays, or 
public holidays) after commencing the negotiation for 
compensation or entering into the arrangement.
  (b) A Member, Delegate, or Resident Commissioner should 
refrain from voting on any legislative measure pending before 
the House or any committee thereof if the negotiation described 
in subparagraph (a) may create a conflict of interest.
  15. A Member, Delegate, Resident Commissioner, officer, or 
employee of the House may not, with the intent to influence on 
the basis of political party affiliation an employment decision 
or employment practice of any private or public entity (except 
for the Congress)--
          (a) take or withhold, or offer or threaten to take or 
        withhold, an official act; or
          (b) influence, or offer or threaten to influence, the 
        official act of another.
          [14.] 16. (a) In this Code of Official Conduct, the 
        term ``officer or employee of the House'' means an 
        individual whose compensation is disbursed by the Chief 
        Administrative Officer.

           *       *       *       *       *       *       *


                                RULE XXV

      Limitations on Outside Earned Income and Acceptance of Gifts

    Outside earned income; honoraria
          1. * * *

           *       *       *       *       *       *       *

    Gifts
          5. (a)(1)(A)  * * *

           *       *       *       *       *       *       *

          (2)(A)(i) In this clause the term ``gift'' means a 
        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.
  (ii) A gift of a ticket to a sporting or entertainment event 
shall be valued at the face value of the ticket, provided that 
in the case of a ticket without a face value, the ticket shall 
be valued at the highest cost of a ticket with a face value for 
the event.

           *       *       *       *       *       *       *

                              ----------                              


                 FEDERAL ELECTION CAMPAIGN ACT OF 1971



           *       *       *       *       *       *       *
            TITLE III--DISCLOSURE OF FEDERAL CAMPAIGN FUNDS

                              DEFINITIONS

  Sec. 301. When used in this Act:
  (1) * * *

           *       *       *       *       *       *       *

  (4) The term ``political committee'' means--
          (A) * * *

           *       *       *       *       *       *       *

          (C) any local committee of a political party which 
        receives contributions aggregating in excess of $5,000 
        during a calendar year, or makes payments exempted from 
        the definition of contribution or expenditure as 
        defined in section 301 (8) and (9) aggregating in 
        excess of $5,000 during a calendar year, or makes 
        contributions aggregating in excess of $1,000 during a 
        calendar year or makes expenditures aggregating in 
        excess of $1,000 during a calendar year[.]; or
                  (D) any applicable 527 organization.

           *       *       *       *       *       *       *

          (27) Applicable 527 organization.--
                  (A) In general.--For purposes of paragraph 
                (4)(D), the term ``applicable 527 
                organization'' means a committee, club, 
                association, or group of persons that--
                          (i) has given notice to the Secretary 
                        of the Treasury under section 527(i) of 
                        the Internal Revenue Code of 1986 that 
                        it is to be treated as an organization 
                        described in section 527 of such Code; 
                        and
                          (ii) is not described in subparagraph 
                        (B).
                  (B) Excepted organizations.--A committee, 
                club, association, or other group of persons 
                described in this subparagraph is--
                          (i) an organization described in 
                        section 527(i)(5) of the Internal 
                        Revenue Code of 1986;
                          (ii) an organization which is a 
                        committee, club, association or other 
                        group of persons that is organized, 
                        operated, and makes disbursements 
                        exclusively for paying expenses 
                        described in the last sentence of 
                        section 527(e)(2) of the Internal 
                        Revenue Code of 1986 or expenses of a 
                        newsletter fund described in section 
                        527(g) of such Code;
                          (iii) an organization which is a 
                        committee, club, association, or other 
                        group that consists solely of 
                        candidates for State or local office, 
                        individuals holding State or local 
                        office, or any combination of either, 
                        but only if the organization refers 
                        only to one or more non-Federal 
                        candidates or applicable State or local 
                        issues in all of its voter drive 
                        activities and does not refer to a 
                        Federal candidate or a political party 
                        in any of its voter drive activities; 
                        or
                          (iv) an organization described in 
                        subparagraph (C).
                  (C) Applicable organization.--For purposes of 
                subparagraph (B)(iv), an organization described 
                in this subparagraph is a committee, club, 
                association, or other group of persons whose 
                election or nomination activities relate 
                exclusively to--
                          (i) elections where no candidate for 
                        Federal office appears on the ballot; 
                        or
                          (ii) one or more of the following 
                        purposes:
                                  (I) Influencing the 
                                selection, nomination, 
                                election, or appointment of one 
                                or more candidates to non-
                                Federal offices.
                                  (II) Influencing one or more 
                                applicable State or local 
                                issues.
                                  (III) Influencing the 
                                selection, appointment, 
                                nomination, or confirmation of 
                                one or more individuals to non-
                                elected offices.
                  (D) Exclusivity test.--A committee, club, 
                association, or other group of persons shall 
                not be treated as meeting the exclusivity 
                requirement of subparagraph (C) if it makes 
                disbursements aggregating more than $1,000 for 
                any of the following:
                          (i) A public communication that 
                        promotes, supports, attacks, or opposes 
                        a clearly identified candidate for 
                        Federal office during the 1-year period 
                        ending on the date of the general 
                        election for the office sought by the 
                        clearly identified candidate (or, if a 
                        runoff election is held with respect to 
                        such general election, on the date of 
                        the runoff election).
                          (ii) Any voter drive activity during 
                        a calendar year, except that no 
                        disbursements for any voter drive 
                        activity shall be taken into account 
                        under this subparagraph if the 
                        committee, club, association, or other 
                        group of persons during such calendar 
                        year--
                                  (I) makes disbursements for 
                                voter drive activities with 
                                respect to elections in only 1 
                                State and complies with all 
                                applicable election laws of 
                                that State, including laws 
                                related to registration and 
                                reporting requirements and 
                                contribution limitations;
                                  (II) refers to one or more 
                                non-Federal candidates or 
                                applicable State or local 
                                issues in all of its voter 
                                drive activities and does not 
                                refer to any Federal candidate 
                                or any political party in any 
                                of its voter drive activities;
                                  (III) does not have a 
                                candidate for Federal office, 
                                an individual who holds any 
                                Federal office, a national 
                                political party, or an agent of 
                                any of the foregoing, control 
                                or materially participate in 
                                the direction of the 
                                organization, solicit 
                                contributions to the 
                                organization (other than funds 
                                which are described under 
                                clauses (i) and (ii) of section 
                                323(e)(1)(B)), or direct 
                                disbursements, in whole or in 
                                part, by the organization; and
                                  (IV) makes no contributions 
                                to Federal candidates.
                  (E) Certain references to federal candidates 
                not taken into account.--For purposes of 
                subparagraphs (B)(iii) and (D)(ii)(II), a voter 
                drive activity shall not be treated as 
                referring to a clearly identified Federal 
                candidate if the only reference to the 
                candidate in the activity is--
                          (i) a reference in connection with an 
                        election for a non-Federal office in 
                        which such Federal candidate is also a 
                        candidate for such non-Federal office; 
                        or
                          (ii) a reference to the fact that the 
                        candidate has endorsed a non-Federal 
                        candidate or has taken a position on an 
                        applicable State or local issue, 
                        including a reference that constitutes 
                        the endorsement or position itself.
                  (F) Certain references to political parties 
                not taken into account.--For purposes of 
                subparagraphs (B)(iii) and (D)(ii)(II), a voter 
                drive activity shall not be treated as 
                referring to a political party if the only 
                reference to the party in the activity is--
                          (i) a reference for the purpose of 
                        identifying a non-Federal candidate;
                          (ii) a reference for the purpose of 
                        identifying the entity making the 
                        public communication or carrying out 
                        the voter drive activity; or
                          (iii) a reference in a manner or 
                        context that does not reflect support 
                        for or opposition to a Federal 
                        candidate or candidates and does 
                        reflect support for or opposition to a 
                        State or local candidate or candidates 
                        or an applicable State or local issue.
                  (G) Applicable state or local issue.--For 
                purposes of this paragraph, the term 
                ``applicable State or local issue'' means any 
                State or local ballot initiative, State or 
                local referendum, State or local constitutional 
                amendment, State or local bond issue, or other 
                State or local ballot issue.
          (28) Voter drive activity.--The term ``voter drive 
        activity'' means any of the following activities 
        conducted in connection with an election in which a 
        candidate for Federal office appears on the ballot 
        (regardless of whether a candidate for State or local 
        office also appears on the ballot):
                  (A) Voter registration activity.
                  (B) Voter identification.
                  (C) Get-out-the-vote activity.
                  (D) Generic campaign activity.
                  (E) Any public communication related to 
                activities described in subparagraphs (A) 
                through (D).
        Such term shall not include any activity described in 
        subparagraph (A) or (B) of section 316(b)(2).

                                REPORTS

  Sec. 304. (a) * * *

           *       *       *       *       *       *       *

  (e) Political Committees.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) Receipts and disbursements from qualified non-
        federal accounts.--In addition to any other reporting 
        requirement applicable under this Act, a political 
        committee to which section 325(a) applies shall report 
        all receipts and disbursements from a qualified non-
        Federal account (as defined in section 325(c)).
          [(3)] (4) Itemization.--If a political committee has 
        receipts or disbursements to which this subsection 
        applies from or to any person aggregating in excess of 
        $200 for any calendar year, the political committee 
        shall separately itemize its reporting for such person 
        in the same manner as required in paragraphs (3)(A), 
        (5), and (6) of subsection (b).
          [(4)] (5) Reporting periods.--Reports required to be 
        filed under this subsection shall be filed for the same 
        time periods required for political committees under 
        subsection (a)(4)(B).

           *       *       *       *       *       *       *


             LIMITATIONS ON CONTRIBUTIONS AND EXPENDITURES

  Sec. 315. (a) * * *

           *       *       *       *       *       *       *

  (c)(1)(A) * * *
  (B) Except as provided in subparagraph (C), in any calendar 
year after 2002--
          (i) a limitation established by subsections 
        (a)(1)(A), (a)(1)(B), (a)(3), (b), [(d),] or (h) shall 
        be increased by the percent difference determined under 
        subparagraph (A);

           *       *       *       *       *       *       *

  (2) For purposes of paragraph (1)--
          (A) * * *
          (B) the term ``base period'' means--
                  (i) for purposes of [subsections (b) and (d)] 
                subsection (b), calendar year 1974; and

           *       *       *       *       *       *       *

  (d)[(1) Notwithstanding any other provision of law with 
respect to limitations on expenditures or limitations on 
contributions, the national committee] Notwithstanding any 
other provision of law with respect to limitations on amounts 
of expenditures or contributions, a national committee of a 
political party and a State committee of a political party, 
including any subordinate committee of a State committee, may 
make expenditures in connection with [the general] any election 
campaign of candidates for [Federal office, subject to the 
limitations contained in paragraphs (2), (3), and (4) of this 
subsection] Federal office in any amount.
  [(2) The national committee of a political party may not make 
any expenditure in connection with the general election 
campaign of any candidate for President of the United States 
who is affiliated with such party which exceeds an amount equal 
to 2 cents multiplied by the voting age population of the 
United States (as certified under subsection (e)). Any 
expenditure under this paragraph shall be in addition to any 
expenditure by a national committee of a political party 
serving as the principal campaign committee of a candidate for 
the office of President of the United States.
  [(3) The national committee of a political party, or a State 
committee of a political party, including any subordinate 
committee of a State committee, may not make any expenditure in 
connection with the general election campaign of a candidate 
for Federal office in a State who is affiliated with such party 
which exceeds--
          [(A) in the case of a candidate for election to the 
        office of Senator, or of Representative from a State 
        which is entitled to only one Representative, the 
        greater of--
                  [(i) 2 cents multiplied by the voting age 
                population of the State (as certified under 
                subsection (e)); or
                  [(ii) $20,000; and
          [(B) in the case of a candidate for election to the 
        office of Representative, Delegate, or Resident 
        Commissioner in any other State, $10,000.
          [(4) Independent versus coordinated expenditures by 
        party.--
                  [(A) In general.--On or after the date on 
                which a political party nominates a candidate, 
                no committee of the political party may make--
                          [(i) any coordinated expenditure 
                        under this subsection with respect to 
                        the candidate during the election cycle 
                        at any time after it makes any 
                        independent expenditure (as defined in 
                        section 301(17)) with respect to the 
                        candidate during the election cycle; or
                          [(ii) any independent expenditure (as 
                        defined in section 301(17)) with 
                        respect to the candidate during the 
                        election cycle at any time after it 
                        makes any coordinated expenditure under 
                        this subsection with respect to the 
                        candidate during the election cycle.
                  [(B) Application.--For purposes of this 
                paragraph, all political committees established 
                and maintained by a national political party 
                (including all congressional campaign 
                committees) and all political committees 
                established and maintained by a State political 
                party (including any subordinate committee of a 
                State committee) shall be considered to be a 
                single political committee.
                  [(C) Transfers.--A committee of a political 
                party that makes coordinated expenditures under 
                this subsection with respect to a candidate 
                shall not, during an election cycle, transfer 
                any funds to, assign authority to make 
                coordinated expenditures under this subsection 
                to, or receive a transfer of funds from, a 
                committee of the political party that has made 
                or intends to make an independent expenditure 
                with respect to the candidate.]

           *       *       *       *       *       *       *

  (i) Increased Limit To Allow Response to Expenditures From 
Personal Funds.--
          (1) Increase.--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) Increased limit.--Except as provided in 
                clause (ii), for purposes of subparagraph (A), 
                if the opposition personal funds amount is 
                over--
                          (i) * * *

           *       *       *       *       *       *       *

                          (iii) 10 times the threshold amount--
                                  (I) the increased limit shall 
                                be 6 times the applicable 
                                limit; and
                                  (II) the limit under 
                                subsection (a)(3) shall not 
                                apply with respect to any 
                                contribution made with respect 
                                to a candidate if such 
                                contribution is made under the 
                                increased limit of subparagraph 
                                (A) during a period in which 
                                the candidate may accept such a 
                                contribution[; and].
                                  [(III) the limits under 
                                subsection (d) with respect to 
                                any expenditure by a State or 
                                national committee of a 
                                political party shall not 
                                apply.]

           *       *       *       *       *       *       *

          (2) Time to accept contributions under increased 
        limit.--
                  (A) In general.--Subject to subparagraph (B), 
                a candidate and the candidate's authorized 
                committee shall not accept any contribution[, 
                and a party committee shall not make any 
                expenditure,] under the increased limit under 
                paragraph (1)--
                          (i) * * *
                          (ii) to the extent that such 
                        contribution, when added to the 
                        aggregate amount of contributions 
                        previously accepted [and party 
                        expenditures previously made] under the 
                        increased limits under this subsection 
                        for the election cycle, exceeds 110 
                        percent of the opposition personal 
                        funds amount.
                  (B) Effect of withdrawal of an opposing 
                candidate.--A candidate and a candidate's 
                authorized committee shall not accept any 
                contribution [and a party shall not make any 
                expenditure] under the increased limit after 
                the date on which an opposing candidate ceases 
                to be a candidate to the extent that the amount 
                of such increased limit is attributable to such 
                an opposing candidate.

           *       *       *       *       *       *       *


  MODIFICATION OF CERTAIN LIMITS FOR HOUSE CANDIDATES IN RESPONSE TO 
                PERSONAL FUND EXPENDITURES OF OPPONENTS

  Sec. 315A. (a) Availability of Increased Limit.--
          (1) In general.--Subject to paragraph (3), if the 
        opposition personal funds amount with respect to a 
        candidate for election to the office of Representative 
        in, or Delegate or Resident Commissioner to, the 
        Congress exceeds $350,000--
                  (A) the limit under subsection (a)(1)(A) with 
                respect to the candidate shall be tripled; and
                  (B) the limit under subsection (a)(3) shall 
                not apply with respect to any contribution made 
                with respect to the candidate if the 
                contribution is made under the increased limit 
                allowed under subparagraph (A) during a period 
                in which the candidate may accept such a 
                contribution[; and].
                  [(C) the limits under subsection (d) with 
                respect to any expenditure by a State or 
                national committee of a political party on 
                behalf of the candidate shall not apply.]

           *       *       *       *       *       *       *

          (3) Time to accept contributions under increased 
        limit.--
                  (A) In general.--Subject to subparagraph (B), 
                a candidate and the candidate's authorized 
                committee shall not accept any contribution[, 
                and a party committee shall not make any 
                expenditure,] under the increased limit under 
                paragraph (1)--
                          (i) * * *
                          (ii) to the extent that such 
                        contribution, when added to the 
                        aggregate amount of contributions 
                        previously accepted [and party 
                        expenditures previously made] under the 
                        increased limits under this subsection 
                        for the election cycle, exceeds 100 
                        percent of the opposition personal 
                        funds amount.
                  (B) Effect of withdrawal of an opposing 
                candidate.--A candidate and a candidate's 
                authorized committee shall not accept any 
                contribution [and a party shall not make any 
                expenditure] under the increased limit after 
                the date on which an opposing candidate ceases 
                to be a candidate to the extent that the amount 
                of such increased limit is attributable to such 
                an opposing candidate.

           *       *       *       *       *       *       *


SEC. 325. ALLOCATION AND FUNDING RULES FOR CERTAIN EXPENSES RELATING TO 
                    FEDERAL AND NON-FEDERAL ACTIVITIES.

  (a) In General.--In the case of any disbursements by any 
political committee that is a separate segregated fund or 
nonconnected committee for which allocation rules are provided 
under subsection (b)--
          (1) the disbursements shall be allocated between 
        Federal and non-Federal accounts in accordance with 
        this section and regulations prescribed by the 
        Commission; and
          (2) in the case of disbursements allocated to non-
        Federal accounts, may be paid only from a qualified 
        non-Federal account.
  (b) Costs to Be Allocated and Allocation Rules.--
          (1) In general.--Disbursements by any separate 
        segregated fund or nonconnected committee, other than 
        an organization described in section 323(b)(1), for any 
        of the following categories of activity shall be 
        allocated as follows:
                  (A) 100 percent of the expenses for public 
                communications or voter drive activities that 
                refer to one or more clearly identified Federal 
                candidates, but do not refer to any clearly 
                identified non-Federal candidates, shall be 
                paid with funds from a Federal account, without 
                regard to whether the communication refers to a 
                political party.
                  (B) At least 50 percent, or a greater 
                percentage if the Commission so determines by 
                regulation, of the expenses for public 
                communications and voter drive activities that 
                refer to one or more clearly identified 
                candidates for Federal office and one or more 
                clearly identified non-Federal candidates shall 
                be paid with funds from a Federal account, 
                without regard to whether the communication 
                refers to a political party.
                  (C) At least 50 percent, or a greater 
                percentage if the Commission so determines by 
                regulation, of the expenses for public 
                communications or voter drive activities that 
                refer to a political party, but do not refer to 
                any clearly identified Federal or non-Federal 
                candidate, shall be paid with funds from a 
                Federal account, except that this paragraph 
                shall not apply to communications or activities 
                that relate exclusively to elections where no 
                candidate for Federal office appears on the 
                ballot.
                  (D) At least 50 percent, or a greater 
                percentage if the Commission so determines by 
                regulation, of the expenses for public 
                communications or voter drive activities that 
                refer to a political party and refer to one or 
                more clearly identified non-Federal candidates, 
                but do not refer to any clearly identified 
                Federal candidates, shall be paid with funds 
                from a Federal account, except that this 
                paragraph shall not apply to communications or 
                activities that relate exclusively to elections 
                where no candidate for Federal office appears 
                on the ballot.
                  (E) Unless otherwise determined by the 
                Commission in its regulations, at least 50 
                percent of any administrative expenses, 
                including rent, utilities, office supplies, and 
                salaries not attributable to a clearly 
                identified candidate, shall be paid with funds 
                from a Federal account, except that for a 
                separate segregated fund such expenses may be 
                paid instead by its connected organization.
                  (F) At least 50 percent, or a greater 
                percentage if the Commission so determines by 
                regulation, of the direct costs of a 
                fundraising program or event, including 
                disbursements for solicitation of funds and for 
                planning and administration of actual 
                fundraising events, where Federal and non-
                Federal funds are collected through such 
                program or event shall be paid with funds from 
                a Federal account, except that for a separate 
                segregated fund such costs may be paid instead 
                by its connected organization. This paragraph 
                shall not apply to any fundraising 
                solicitations or any other activity that 
                constitutes a public communication.
          (2) Certain references to federal candidates not 
        taken into account.--For purposes of paragraph (1), a 
        public communication or voter drive activity shall not 
        be treated as referring to a clearly identified Federal 
        candidate if the only reference to the candidate in the 
        communication or activity is--
                  (A) a reference in connection with an 
                election for a non-Federal office in which such 
                Federal candidate is also a candidate for such 
                non-Federal office; or
                  (B) a reference to the fact that the 
                candidate has endorsed a non-Federal candidate 
                or has taken a position on an applicable State 
                or local issue (as defined in section 
                301(27)(G)), including a reference that 
                constitutes the endorsement or position itself.
          (3) Certain references to political parties not taken 
        into account.--For purposes of paragraph (1), a public 
        communication or voter drive activity shall not be 
        treated as referring to a political party if the only 
        reference to the party in the communication or activity 
        is--
                  (A) a reference for the purpose of 
                identifying a non-Federal candidate;
                  (B) a reference for the purpose of 
                identifying the entity making the public 
                communication or carrying out the voter drive 
                activity; or
                  (C) a reference in a manner or context that 
                does not reflect support for or opposition to a 
                Federal candidate or candidates and does 
                reflect support for or opposition to a State or 
                local candidate or candidates or an applicable 
                State or local issue.
  (c) Qualified Non-Federal Account.--
          (1) In general.--For purposes of this section, the 
        term ``qualified non-Federal account'' means an account 
        which consists solely of amounts--
                  (A) that, subject to the limitations of 
                paragraphs (2) and (3), are raised by the 
                separate segregated fund or nonconnected 
                committee only from individuals, and
                  (B) with respect to which all requirements of 
                Federal, State, or local law (including any law 
                relating to contribution limits) are met.
          (2) Limitation on individual donations.--
                  (A) In general.--A separate segregated fund 
                or nonconnected committee may not accept more 
                than $25,000 in funds for its qualified non-
                Federal account from any one individual in any 
                calendar year.
                  (B) Affiliation.--For purposes of this 
                paragraph, all qualified non-Federal accounts 
                of separate segregated funds or nonconnected 
                committees which are directly or indirectly 
                established, financed, maintained, or 
                controlled by the same person or persons shall 
                be treated as one account.
          (3) Fundraising limitation.--
                  (A) In general.--No donation to a qualified 
                non-Federal account may be solicited, received, 
                directed, transferred, or spent by or in the 
                name of any person described in subsection (a) 
                or (e) of section 323.
                  (B) Funds not treated as subject to act.--
                Except as provided in subsection (a)(2) and 
                this subsection, any funds raised for a 
                qualified non-Federal account in accordance 
                with the requirements of this section shall not 
                be considered funds subject to the limitations, 
                prohibitions, and reporting requirements of 
                this Act for any purpose (including for 
                purposes of subsection (a) or (e) of section 
                323 or subsection (d)(1) of this section).
  (d) Definitions.--
          (1) Federal account.--The term ``Federal account'' 
        means an account which consists solely of contributions 
        subject to the limitations, prohibitions, and reporting 
        requirements of this Act. Nothing in this section or in 
        section 323(b)(2)(B)(iii) shall be construed to infer 
        that a limit other than the limit under section 
        315(a)(1)(C) applies to contributions to the account.
          (2) Nonconnected committee.--The term ``nonconnected 
        committee'' shall not include a political committee of 
        a political party.
          (3) Voter drive activity.--The term ``voter drive 
        activity'' has the meaning given such term in section 
        301(28).
                              ----------                              


                      TITLE 5, UNITED STATES CODE



           *       *       *       *       *       *       *
PART III--EMPLOYEES

           *       *       *       *       *       *       *


SUBPART G--INSURANCE AND ANNUITIES

           *       *       *       *       *       *       *


CHAPTER 83--RETIREMENT

           *       *       *       *       *       *       *


                SUBCHAPTER III--CIVIL SERVICE RETIREMENT

Sec. 8332. Creditable service

  (a) * * *

           *       *       *       *       *       *       *

  (o)(1) Notwithstanding any other provision of this 
subchapter, the service of an individual finally convicted of 
an offense described in paragraph (2) shall not be taken into 
account for purposes of this subchapter, except that this 
sentence applies only to service rendered as a Member 
(irrespective of when rendered). Any such individual (or other 
person determined under section 8342(c), if applicable) shall 
be entitled to be paid so much of such individual's lump-sum 
credit as is attributable to service to which the preceding 
sentence applies.
  (2)(A) An offense described in this paragraph is any offense 
described in subparagraph (B) for which the following apply:
          (i) Every act or omission of the individual (referred 
        to in paragraph (1)) that is needed to satisfy the 
        elements of the offense occurs while the individual is 
        a Member.
          (ii) Every act or omission of the individual that is 
        needed to satisfy the elements of the offense directly 
        relates to the performance of the individual's official 
        duties as a Member.
          (iii) The offense is committed after the date of 
        enactment of this subsection.
  (B) An offense described in this subparagraph is only the 
following, and only to the extent that the offense is a felony 
under title 18:
          (i) An offense under section 201 of title 18 (bribery 
        of public officials and witnesses).
          (ii) An offense under section 219 of title 18 
        (officers and employees acting as agents of foreign 
        principals).
          (iii) An offense under section 371 of title 18 
        (conspiracy to commit offense or to defraud United 
        States) to the extent of any conspiracy to commit an 
        act which constitutes an offense under clause (i) or 
        (ii).
  (3) An individual convicted of an offense described in 
paragraph (2) shall not, after the date of the final 
conviction, be eligible to participate in the retirement system 
under this subchapter or chapter 84 while serving as a Member.
  (4) The Office of Personnel Management shall prescribe any 
regulations necessary to carry out this subsection. Such 
regulations shall include--
          (A) provisions under which interest on any lump-sum 
        payment under the second sentence of paragraph (1) 
        shall be limited in a manner similar to that specified 
        in the last sentence of section 8316(b); and
          (B) provisions under which the Office may provide 
        for--
                  (i) the payment, to the spouse or children of 
                any individual referred to in the first 
                sentence of paragraph (1), of any amounts which 
                (but for this clause) would otherwise have been 
                nonpayable by reason of such first sentence, 
                but only to the extent that the application of 
                this clause is considered necessary given the 
                totality of the circumstances; and
                  (ii) an appropriate adjustment in the amount 
                of any lump-sum payment under the second 
                sentence of paragraph (1) to reflect the 
                application of clause (i).
  (5) For purposes of this subsection--
          (A) the term ``Member'' has the meaning given such 
        term by section 2106, notwithstanding section 8331(2); 
        and
          (B) the term ``child'' has the meaning given such 
        term by section 8341.

           *       *       *       *       *       *       *


CHAPTER 84--FEDERAL EMPLOYEES' RETIREMENT SYSTEM

           *       *       *       *       *       *       *


                      SUBCHAPTER II--BASIC ANNUITY

Sec. 8411. Creditable service

  (a) * * *

           *       *       *       *       *       *       *

  (i)(1) Notwithstanding any other provision of this chapter, 
the service of an individual finally convicted of an offense 
described in paragraph (2) shall not be taken into account for 
purposes of this chapter, except that this sentence applies 
only to service rendered as a Member (irrespective of when 
rendered). Any such individual (or other person determined 
under section 8424(d), if applicable) shall be entitled to be 
paid so much of such individual's lump-sum credit as is 
attributable to service to which the preceding sentence 
applies.
  (2) An offense described in this paragraph is any offense 
described in section 8332(o)(2)(B) for which the following 
apply:
          (A) Every act or omission of the individual (referred 
        to in paragraph (1)) that is needed to satisfy the 
        elements of the offense occurs while the individual is 
        a Member.
          (B) Every act or omission of the individual that is 
        needed to satisfy the elements of the offense directly 
        relates to the performance of the individual's official 
        duties as a Member.
          (C) The offense is committed after the date of 
        enactment of this subsection.
  (3) An individual finally convicted of an offense described 
in paragraph (2) shall not, after the date of the conviction, 
be eligible to participate in the retirement system under this 
chapter while serving as a Member.
  (4) The Office of Personnel Management shall prescribe any 
regulations necessary to carry out this subsection. Such 
regulations shall include--
          (A) provisions under which interest on any lump-sum 
        payment under the second sentence of paragraph (1) 
        shall be limited in a manner similar to that specified 
        in the last sentence of section 8316(b); and
          (B) provisions under which the Office may provide 
        for--
                  (i) the payment, to the spouse or children of 
                any individual referred to in the first 
                sentence of paragraph (1), of any amounts which 
                (but for this clause) would otherwise have been 
                nonpayable by reason of such first sentence, 
                but only to the extent that the application of 
                this clause is considered necessary given the 
                totality of the circumstances; and
                  (ii) an appropriate adjustment in the amount 
                of any lump-sum payment under the second 
                sentence of paragraph (1) to reflect the 
                application of clause (i).
  (5) For purposes of this subsection--
          (A) the term ``Member'' has the meaning given such 
        term by section 2106, notwithstanding section 8401(20); 
        and
          (B) the term ``child'' has the meaning given such 
        term by section 8341.

           *       *       *       *       *       *       *


                           Markup Transcript



                            BUSINESS MEETING

                        WEDNESDAY, APRIL 5, 2006

                  House of Representatives,
                                Committee on the Judiciary,
                                                    Washington, DC.
    The Committee met, pursuant to notice, at 10:05 a.m., in 
Room 2141, Rayburn House Office Building, the Honorable F. 
James Sensenbrenner, Jr. (Chairman of the Committee) presiding.
    Chairman Sensenbrenner. The Committee will be in order. A 
working quorum is present. I now call up the bill, H.R. 4975, 
the ``Lobbying Accountability and Transparency Act of 2006,'' 
for purposes of markup and move its favorable recommendation to 
the House. Without objection, the bill will be considered as 
read and open for amendment at any point.
    [The bill, H.R. 4975, follows:]
      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


    Chairman Sensenbrenner. And the Chair recognizes himself 
for 5 minutes to explain the bill.
    The Judiciary Committee received a primary referral of this 
bill which we consider this morning. I am pleased to note that 
the bill's provisions within our jurisdiction pertain to 
matters that have met with considerable bipartisan agreement. 
Greater disclosure of lobbying activity is a central theme of 
these provisions. There is broad agreement that greater and 
more frequent disclosure of lobbying activity strengthens 
public confidence in the political process. To advance this 
goal, title I provides for quarterly rather than biannual 
filing of more detailed lobbying disclosure reports and 
requires that this information be available to the public on 
the Internet in a form that can be easily sorted and searched 
by the average citizen. Title I also requires registered 
lobbyists to disclose past Government employment over the 
previous 7 years. In addition, this title requires lobbyists to 
disclose contributions to Federal candidates, leadership and 
other PACs and political party committees and to disclose the 
recipient the amount of any gift that counts toward the 
cumulative annual total of a hundred dollars as provided for 
under the House Rules. Moreover, the legislation doubles to 
$10,000 the civil penalty for failure to comply with these 
heightened reporting requirements.
    The legislation also requires the Clerk of the House to 
provide notice to Members and staff of post-employment 
restrictions and prohibits registered lobbyists from 
accompanying Members on corporate flights.
    Finally, title IV of the legislation enhances oversight of 
lobbying enforcement by requiring the House Inspector General 
to conduct random audits of reports filed by lobbyists and 
authorizes the IG to report violations to the Department of 
Justice for prosecution, thus adding more teeth to current 
enforcement efforts.
    The United States Constitution grants everyone the right to 
petition the Government for redress of their grievances, and 
professional political advocates are not excluded from this 
protection. A broad range of organizations, such as the AARP, 
the American Cancer Society, the Boy Scouts and all manner of 
non-profit organizations hire lobbyists to inform Members of 
their views. While this form of advocacy is well established, 
greater disclosure of these activities enhances the public 
confidence and respect that each of us has a duty to uphold.
    As I indicated earlier, I am pleased that several of the 
provisions within this Committee's purview are supported by 
Members on both sides of the aisle. At the appropriate time, I 
will offer an amendment with the support of Mr. Conyers to make 
further clarifications to the legislation. I would also advise 
Members that given the somewhat limited subject matter of the 
provisions within the purview of this Committee, the Chair 
intends to ensure that amendments to the legislation are 
germane. I urge Members to support this important legislation. 
Yield back my time and recognize the gentleman from Michigan, 
Mr. Conyers.
    Mr. Conyers. Thank you, Mr. Chairman and Members. We are 
here in a somewhat awkward situation. Even though we have 
primary jurisdiction of the bill, many of the significant 
provisions are not within our jurisdiction. And because of the 
problems that I have had with the gift ban, the travel ban 
proposals, the revolving door, corporate jets, there was some 
tendency for us to say that since we are opposed to these other 
items, that we not bother with worrying about the sections that 
are within the Judiciary Committee's jurisdiction. We have 
decided that regardless of our views on the base bill, we are 
going to work and have been working with our staffs to make 
sure that we have reached as full accord as we can on these 
provisions that our within our jurisdiction.
    Now it should be noted that when you are talking about 
lobbying accountability and transparency and reform, according 
to the Center For Public Integrity, nonpartisan, they have 
evaluated lobbying disclosure laws and found that the current 
Federal laws on lobbying disclosure are considerably weaker 
than the lobbying disclosure laws of 47 of the 50 States in the 
country. And given the nature of the recent scandals that have 
plowed through Washington, D.C., I think we have a serious and 
important job to do. If there is one thing that is clear in 
this debate, there is a need for a complete overhaul of the 
lobbying industry. It would not be rational from my point of 
view for us to be examining even the most perfect bill about 
lobbying reform without somebody somewhere at the beginning of 
this debate indicating that there is an even larger problem 
that challenges us, and that is public financing, because 
without that, you can do whatever you want about lobbying. We 
need a serious public financing law. There is one. The 
gentleman from Massachusetts, Mr. Tierney, has been continually 
reintroducing it, and I just want to touch the consciousness of 
every Member of this Committee with that regard.
    I also want to single out some of the public groups that 
have worked so hard with us and with our colleague Mr. Meehan 
of Massachusetts who has worked very diligently on this 
subject. Public Citizen, Common Cause, Democracy 21 and others 
have been working very, very diligently in terms of the subject 
matter that we have today.
    We are marking up a measure that purports to amend the very 
legislation this Committee passed a decade ago, the Lobby 
Disclosure Act of 1995. And while we will consider a bipartisan 
manager's amendment today to improve the judiciary sections of 
the bill, and I commend these improvements to all of my 
colleagues, but even after these improvements, the base bill 
is, to me, extremely inadequate, and among other things, we 
fail to meaningfully deal with the problems of gifts and travel 
by lobbyists. I had hoped that the majority was planning to 
deal with these issues in a far more serious way but the 
eventual draft includes only a temporary travel ban and almost 
no real limitation on gifts.
    The portions of H.R. 4975 that we are taking up today are 
important but somewhat technical in nature, and I am pleased to 
have been able to work with the Chairman and other Members of 
the Committee to make the best of what was referred to our 
Committee. I hope we can come together as a Congress before 
this bill reaches the floor to resolve the remaining problems 
and strengthen the bill. With that, I return any unused time.
    Chairman Sensenbrenner. The time of the gentleman has 
expired. Without objection, all Members may include opening 
statements in the record at this point. The bill is now open 
for amendment. The Chair has a manager's amendment at the desk 
that he is offering on behalf of himself and Mr. Conyers, and 
the Clerk will report the amendment.
    The Clerk. Amendment to H.R. 4975 offered by Mr. 
Sensenbrenner and Mr. Conyers. Page 10, line 3, strike 2(c), 
the name----
    Chairman Sensenbrenner. Without objection the amendment is 
considered as read and the Chair recognizes himself for 5 
minutes to explain it.
    [The amendment follows:]
      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


    Chairman Sensenbrenner. This bipartisan manager's amendment 
offered by the Ranking Member and myself makes several 
improvements and necessary clarifications to the bill. The 
manager's amendment requires additional quarterly disclosures 
by lobbyists, namely disclosures of the names of Federal 
candidates and office holders, their leadership PACs or 
political committees for whom fundraising events are hosted by 
lobbyists. Information regarding payment for events honoring 
Members, information regarding payments that entities name for 
Members, and payments to entities established, financed, 
maintained and controlled by Members is defined under current 
Federal regulations and information regarding payments for 
retreats and conferences for the benefit of Members.
    The amendment also requires lobbyists to disclose the names 
of Members of Congress with whom lobbying contacts are made as 
defined under the existing Lobbying Disclosure Act and requires 
the Clerk of the two Houses to immediately give notice to 
Members every time lobbyists file a disclosure regarding a 
Member.
    Further, this bipartisan manager's amendment amends the 
definition of a leadership PAC to conform to current FEC law, 
requires lobbyists to round their estimates of expenses and 
income to the nearest thousand dollars, requires the Clerk of 
the House to link disclosure reports to relevant FEC filings.
    Finally, the bipartisan manager's amendment provides for 
criminal penalties for knowing, willful and corrupt violation 
of these provisions. The bipartisan manager's amendment strikes 
the right balance that requires increased disclosure by 
lobbyists subject to criminal penalties for egregious 
infractions without reliance upon vague and ill-defined 
language that would chill constitutionally protected rights to 
association and to petition the Government for redress of 
grievances. I urge my colleagues to join me in this consensus 
effort to bring both greater disclosure and greater clarity to 
the base field and yield back the balance of my time.
    Mr. Conyers. Mr. Chairman.
    Chairman Sensenbrenner. The gentleman from Michigan.
    Mr. Conyers. I strike the requisite number of words.
    Chairman Sensenbrenner. The gentleman is recognized for 5 
minutes.
    Mr. Conyers. I am very pleased to join in this cooperative 
effort. I urge that there may be more cooperation whenever we 
can get it in the Committee, and here is an example of it. This 
manager's amendment which I support would require additional 
disclosures by lobbyists, including the names of the Federal 
candidates and office holders and their leadership PACs or 
political committees for whom fundraising events are hosted by 
lobbyists. In addition, we seek disclosures of information 
regarding payments for events honoring Members. Third, 
disclosures of payments to entities named for Members; 
disclosure of payments for retreats and conferences for the 
benefit of Members, and to amend the definition of leadership 
PAC to conform to current FEC law. And, finally, to provide for 
criminal penalties of not more than 3 years in jail for knowing 
and willful failures to comply and for not more than 5 years 
for knowing, willful and corrupt failures to comply.
    Ladies and gentlemen, what we do with the manager's 
amendment in short has considerably strengthened the measure 
before us that is within our jurisdiction and I urge its 
support and yield back the balance of my time.
    Chairman Sensenbrenner. The gentleman from California, Mr. 
Issa.
    Mr. Issa. Thank you, Mr. Chairman. I move to strike the 
last word.
    Chairman Sensenbrenner. The gentleman is recognized for 5 
minutes.
    Mr. Issa. Mr. Chairman, I am pleased to support the 
manager's amendment but not without some reservations. I 
commend both you and the Ranking Member for working hard to add 
additional transparency to the process of lobbying reform. 
However, I will be offering an amendment dealing with what I 
think is an excessive and draconian and perhaps threatening the 
very fabric of democracy in assuming that if somebody has a $50 
lunch and then doesn't report it, that in fact they could get a 
3- or 5-year felony conviction and prison or 3- to 5-year 
sentence on a selective basis by some future Attorney General 
for failure to report that. I understand that there is all the 
right terms of, it is willful and so on, but we all understand, 
you go to lunch, you fail to report, was it in your BlackBerry, 
was it on your Outlook, and did you forget, or was it willful?
    I can see it now as they take a Member away for the $51 
lunch or the $50 lunch and failed to report. I think it is 
excessive, I think it is inappropriate; not to say that there 
shouldn't be a civil penalty for at least the first offense and 
perhaps criminal if it shows a pattern, but I think the Ranking 
Member, if he thought long and hard about it, would realize 
that almost every Member of Congress makes an error in 
reporting over a 20- or 30-year period on a quarterly basis and 
that, hopefully, since this does not exist on the Senate bill, 
it can either be modified to a reasonable balance in conference 
or eliminated altogether.
    Last, but not least, I hope that we all understand that, as 
we do all of these various reportings, I can find nothing here 
that changes the fact that Abramoff and Rudy and anyone else 
that has been involved in the scandals in fact is going to jail 
under existing laws. So let us not kid ourselves and believe 
that what we are doing is patching loopholes. The loopholes 
they used were not without criminal penalties, and they have 
pled guilty as a result. I yield back.
    Mr. Conyers. Would the gentlemen yield?
    Mr. Issa. I would yield to the Ranking Member.
    Mr. Conyers. I thank you for raising this part of the 
examination of the manager's amendment, but you are aware, I 
presume, that the criminal penalties do not kick in unless they 
are for knowing, willful and corrupt failures to comply. These 
aren't accidents.
    Mr. Issa. I appreciate that. Reclaiming my time. The 
problem is, as a practical matter in prosecution, you have got 
to prove that there--you have got to prove or at least a jury 
has to decide whether or not that $51 lunch that was on your 
calendar, in your BlackBerry, that your failure to report was 
or wasn't willful. It is very subjective. I think the Member 
would recognize that if there was no pattern of repeat--repeat, 
if in fact it was a single event, if in fact it was less than a 
relatively de minimus amount, that it should be dealt with as 
an infraction or, in the alternative, a first offense should be 
considered for an infraction.
    I do not disagree that somebody who willfully and 
repeatedly does anything to evade this law is in fact a 
criminal, but I think that the standard set opens up the 
possibility of a jury, rightfully so, on a $50 lunch in fact 
finding under the statute there is no protection that would 
make any level an infraction and the standard of willful, 
although it sounds like a high one, in fact, knowingly doing it 
is like, to be honest, like somebody who fails to report 
something on their income tax. The fact that you have got the 
receipt, that you read the receipt and you didn't put it in can 
be enough for a jury to find that in fact you knew. With that, 
I yield back.
    Chairman Sensenbrenner. The gentleman yields back. The 
question is on the manager's amendment.
    The gentleman from New York, Mr. Nadler.
    Mr. Nadler. Move to strike the last word.
    Chairman Sensenbrenner. The gentleman is recognized for 5 
minutes.
    Mr. Nadler. Thank you, Mr. Chairman. I support the 
manager's amendment which advances this legislation. This 
legislation goes to the very heart of this institution's 
credibility and integrity, the urgent need to detail the 
corrupting abuses in influence pedaling that have become 
endemic among some of those who attempt to influence Congress 
and unfortunately among some of the Members they hope to 
influence. This issue is not about free speech or the right of 
citizens to petition their Government for redress of 
grievances; it is about the corrupting influence of money in 
our democratic process.
    All citizens should have an equal voice when speaking to 
Congress. Whether for personal enrichment or for the means to 
acquire political power, money distorts democracy and renders 
what we do here at best suspect. The recent indictments, 
convictions and resignations of leading Members of Congress and 
their staff up to and including the former majority leader Mr. 
DeLay have cast a pall over this institution and every one of 
us, whether we like it or not, whether any of us have done 
anything improper or not.
    Unless this Congress acts and acts effectively and with 
credibility, the public will rightly judge this institution and 
its Members harshly. The public will become only more cynical. 
One place we can start, which is not really addressed in any of 
these reforms bills, is to open up our legislative process and 
adhere to our own rules of procedure. Bills hundreds of pages 
long written in the dead of night and brought to a vote with 
little or no examination by the Members will always be an 
invitation to disaster.
    There was a time when legislation was actually the result 
of a deliberative and bipartisan process. That is regrettably 
becoming the exception rather than the rule; although I am glad 
to see the exception seems to be playing out in the case of 
this bill, at least in this Committee.
    It creates bad policy and innumerable opportunities for 
mischief. The manager's amendment is a negotiated and non-
controversial amendment. I do have, however, have serious 
concerns about some of the other provisions of the bill. I 
would hope the rest of the bill would be a product of similar 
cooperation, and we will be able to work together to rescue our 
democracy. I am skeptical. I hope I am proved wrong about the 
rest of the bill. Thank you, Mr. Chairman. I yield back the 
balance of my time.
    Chairman Sensenbrenner. The gentleman from North Carolina, 
Mr. Coble.
    Mr. Coble. Move to strike the requisite number of words.
    Chairman Sensenbrenner. The gentleman is recognized for 5 
minutes.
    Mr. Coble. I promise I will not consume the entire 5 
minutes. I want to commend the Chairman and the Ranking Member 
from Michigan for having worked very diligently on this 
proposed legislation, and I want to associate myself with some 
of the remarks made earlier by the gentleman from California. 
We are in a position today, folks, where it is knee jerk and 
overkill, possibly, and if you vote against some of these 
proposals, I think we will be painted with the brush of 
approving abuse and approving willful violations of laws that 
could result in very onerous, even active prison sentences.
    So I just want to urge all of us, Mr. Chairman, to proceed 
very deliberately and very thoroughly and to avoid falling into 
the trap of overkill. I yield back, Mr. Chairman.
    Chairman Sensenbrenner. The gentleman from Massachusetts, 
Mr. Meehan.
    Mr. Meehan. Mr. Chairman, I support the manager's 
amendment.
    Chairman Sensenbrenner. The gentlemen is recognized for 5 
minutes.
    Mr. Meehan. And compliment the bipartisanship by the 
Chairman and Ranking Member and the staff. I did have language 
that I was interested that would provide a little more 
disclosure relative to some of the lobbyist expenditures, and 
if the Chairman would between now and the time the bill goes to 
the floor----
    Chairman Sensenbrenner. Will the gentleman from 
Massachusetts yield?
    Mr. Meehan. Yes.
    Chairman Sensenbrenner. The Chair is always open to further 
refinements in the language. The bill that came to us was, in 
some of these instances, pretty loosely drafted, and the 
manager's amendment tries to tighten the drafting so that it is 
more clear what is required, and a criminal prosecution could 
not be defeated because the statute was void for vagueness. I 
certainly will be happy to talk with the gentleman from 
Massachusetts throughout this process in terms of looking at 
his suggestions on how to further tighten the language, and I 
commend him for his interest on that.
    Mr. Meehan. I yield back the balance.
    Mr. Gohmert. Mr. Chairman, move to strike the last word.
    Chairman Sensenbrenner. The gentleman from Texas, Mr. 
Gohmert, is recognized for 5 minutes.
    Mr. Gohmert. Thank you, Mr. Chairman. I have the utmost 
respect for the Chairman of this Committee. I know and have a 
good feel of your heart, and I know it is in exactly the right 
place. I have immense concerns over the manager's amendment. 
Even provisions that just apply to lobbyists, let's face it, 
folks, in fairness, if they are going to apply to lobbyists 
now, then they will ultimately apply to Members of Congress 
later, if not sooner.
    So when you look at these things, you need to look at them 
in terms of, is this something I want to go to prison over? Is 
this something I want to be arrested for and drug from my wife 
and children in handcuffs, as has happened, over something that 
may have been an innocent mistake?
    So it is so typical in Washington when we have laws--we saw 
it on gun control. We had all kinds of laws on gun control, and 
yet when there was a gun problem, instead of enforcing the 
present laws in the 1990's, which should have been done, the 
Administration's remedy was to come in and make more laws 
instead of enforcing the ones they had.
    We have laws against corruption. We have laws against 
improper lobbying, and we have some lobbyists that are going to 
go to prison as a result. They violated the law. They are going 
to prison. They should. But here we are, our solutions run 
into, make more laws so it looks like we are doing something.
    But, folks, think about it. We have had--some of us have 
had profound disagreements on policies, and we disagreed with 
each other, but I have some friends on the other side on this 
Committee that I have the utmost respect for your integrity and 
honesty, and to think about at some point if we do this to 
lobbyists, becomes laws for Members, to think about you being 
taken from your spouse and children in handcuffs, and I have 
seen this done, because there was an innocent failure to 
disclose something, that would break my heart. It is not right.
    And what you have here with these violations, even though 
you include language like knowing and willful, or even 
corruptly, the fact is, if you innocently fail to disclose 
something, if your treasurer fails to disclose something, the 
accountant at your lobbying firm fails to disclose something, 
and then you sign off on it, well, folks, you are going to get 
arrested. You are going to get handcuffed, you are going to 
have a mug shot on your opponent's T-shirts they will be 
handing out. Your family will be humiliated. And even though 
you include language like willful and knowing and corruptly, 
that sounds good and that will help increase the burden of 
proof at trial, but the fact is, it will almost become a res 
ipsa loquitur situation where the thing will speak for itself; 
you failed to disclose, you must have known about it, so it is 
time to arrest you and have you run down to the jail. That is 
just overreaction when we have laws in place.
    Now, at trial, sure, after you have gone through all that 
humiliation and you come in at trial and you show, gee, it was 
really an innocent mistake, your life has been forever changed, 
and to your detriment, over an innocent mistake and it was all 
because a Committee and a Congress and a bunch of folks thought 
it will look like we are doing something if we jump in and try 
to make more laws instead of just enforcing what we have.
    Folks, as a judge, as a chief justice I was law and order. 
You look at my record. But I don't believe in making laws for 
got-you purposes that we don't need.
    Now I have an amendment now, if I could. I don't know if 
this is the appropriate time, Mr. Chairman.
    Chairman Sensenbrenner. The gentleman is recognized to 
strike the last word and can't offer an amendment.
    Mr. Gohmert. Then I yield back.
    Chairman Sensenbrenner. The gentlemen yields back.
    The question is on the manager's amendment as proposed by 
the gentleman from Michigan.
    Mr. Gohmert. Mr. Chairman, I have an amendment at the desk.
    Chairman Sensenbrenner. The gentleman has already been 
recognized once on this question. The question is on the 
manager's amendment proposed by the gentleman from Michigan, 
and the Chair, those in favor will say aye; opposed, no. The 
ayes appear to have it. The ayes have it, and the manager's 
amendment is agreed to.
    Are there further amendments?
    Mr. Meehan. Mr. Chairman, I have an amendment.
    Chairman Sensenbrenner. The gentleman from Massachusetts 
has an amendment. The Clerk will report the amendment.
    Mr. Meehan. Meehan 62.
    The Clerk. Amendment to H.R. 4975, offered by Mr. Meehan of 
Massachusetts. At the end of----
    Mr. Meehan. Mr. Chairman, I ask unanimous consent it be 
considered as read.
    [The amendment follows:]
      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


    Mr. Smith. Mr. Chairman, I will reserve a point of order.
    Chairman Sensenbrenner. Point of order is reserved.
    The gentleman from Massachusetts is recognized for 5 
minutes.
    Mr. Meehan. Mr. Chairman, this amendment would for the 
first time bring to the public light the huge amounts of money 
being spent for sophisticated professional media advertising 
campaigns to influence legislative decisions by Congress.
    Currently, the Lobbying Disclosure Act requires disclosure 
of lobbying activities that involve direct contact with 
Congress, but there is no disclosure requirement for 
professional grassroots lobbying firms that are retained to 
spend money on media campaigns to support or oppose 
legislation. When I talk about grassroots lobbying firms, I am 
not talking about the grassroots organizations that mobilize 
their memberships to petition the Government; I am speaking of 
the professional firms like those set up by Jack Abramoff and 
Michael Scanlon to cheat Indian tribes out of millions. These 
firms are designed to avoid lobbying disclosure laws. For 
example, if a professional grassroots lobbying firm can spend 
tens of millions of dollars on a paid advertising campaign to 
stimulate public lobbying for the passage of a tax break or 
defeat of a judicial nominee without information being provided 
to citizens and Members of Congress on the amounts being spent 
on these lobbying campaigns, my amendment addresses this 
problem by requiring professional grassroots lobbying firms to 
register and report the income they receive from conducting 
grassroots lobbying campaigns. For those organizations that are 
already required to register under the law, they must report 
the aggregate amount that they spend on grassroots lobbying if 
the spending is significant, more than $25,000 per quarter.
    An organization which is already a registered lobbying 
organization would have to disclose only two numbers on each 
lobbying report; one, an estimate of the total amounts spent on 
grassroots lobbying activities; and, two, an estimate of how 
much of that total was spent on paid advertising.
    A professional grassroots lobbying firm that spends $25,000 
or more per quarter on grassroots lobbying activities would 
also have to disclose for each client only two numbers, an 
estimate of the amount of money received from a client for 
grassroots lobbying aimed at the public, and, secondly, an 
estimate of how much money in total was spent on paid 
advertisement.
    Some opponents of this amendment have made claims based on 
misconceptions. The amendment would not impair or restrict 
grassroots lobbying by any organization. It does not limit the 
amount of money that any group can put into such efforts. The 
provision would not require any organization to disclose its 
membership list or disclose any communications with its 
members. The amendment specifically exempts organizations' 
communications with its members from the definition of 
grassroots lobbying.
    Furthermore, the impact of 501(c)3s would be minimal. 
501(c)3 organizations already report grassroots expenditures to 
the IRS and would be allowed to report the same number under 
the Lobbying Disclosure Act.
    The provision would separate the real grassroots 
organizations from the Astro turf groups, professional lobbying 
groups under the guise of grassroots lobbying, and grassroots 
groups support this amendment, from the Alliance for Children 
and Families, to Common Cause, to the National Low Income 
Housing Coalition, Public Interest Research Group, Public 
Citizen, Sierra Club. All of them have sent letters on this 
matter.
    Now I understand that there might be an attempt to say that 
this is not germane or will be ruled out of order. I just want 
to make it clear that the Parliamentarian has told us it is in 
fact germane and should be ruled in order.
    Mr. Chairman, I yield back the balance of my time.
    Chairman Sensenbrenner. Does the gentleman from Texas 
insist upon his point of order?
    Mr. Smith. Yes, I do.
    Chairman Sensenbrenner. State your point of order.
    Mr. Smith. Mr. Chairman, House Rule 16(7) precludes 
amendments, quote, on subject difference from that under 
consideration, end quote. The purpose of the legislation is to 
enhance disclosure requirements by registered lobbyists. 
However, this amendment transforms the definition of lobbyists 
in a manner that is inconsistent with the title it seeks to 
amend. It also implicates the Committee on House 
Administration's jurisdiction over Federal elections generally. 
As a result, this amendment fails the test of germaneness 
contained in House Rule 16(7) and is not in order. Mr. 
Chairman, I yield back my time.
    Chairman Sensenbrenner. The gentleman from Massachusetts 
wishes to be heard on the point of order?
    Mr. Meehan. I think I made my point. I believe that it is 
germane, and the Parliamentarian has told us it is germane. We 
are talking about disclosures that lobbyists are going to make, 
so I think I have said my case, but I also think you guys have 
the votes.
    Chairman Sensenbrenner. The Chair is prepared to rule. The 
gentleman from Texas makes a point of order that the amendment 
offered by the gentleman from Massachusetts is not germane 
pursuant to House Rule 16. House Rule 16 says that amendments 
offered in Committee that are within the jurisdiction of 
another Committee are not germane to the bill. The proposed 
amendment by the gentleman from Massachusetts redefines the 
definition of a lobbyist in a manner that is outside the 
jurisdiction of the Committee on the Judiciary and within the 
jurisdiction of the Committee on House Administration. For that 
reason, the Chair sustains the point of order raised by the 
gentleman from Texas, and the amendment fails.
    Are there further amendments?
    The gentleman from California, Mr. Issa.
    Mr. Issa. Mr. Chairman, I have an amendment at the desk.
    Chairman Sensenbrenner. The Clerk will report the 
amendment.
    The Clerk. Amendment offered by Mr. Issa to H.R. 4975. Page 
7, line 21, strike the quotation marks and second period. Page 
7, add the following after line 21: (3) Inapplicability to 
Certain Offenses--This subsection shall not apply to violations 
most appropriately made subject to civil fines.
    [The amendment follows:]
      
      

  


    Mr. Issa. Mr. Chairman, my amendment----
    Chairman Sensenbrenner. The gentleman from Texas.
    Ms. Smith. Mr. Chairman, I will reserve a point of order.
    Chairman Sensenbrenner. Point of order is reserved. The 
gentleman from California is recognized for 5 minutes.
    Mr. Issa. My amendment seeks to deal with the implicit 
punishment phase I talked about earlier. It is clear that there 
is no question that this legislation is being rushed through; 
that any piece of legislation that simply says that if you do 
something wrong, in this case failing to report a $50 lunch, in 
fact could lead, would lead to a 3-year fine. This statute, if 
it goes into effect as it is presently titled, appears to be a 
felony-only offense. My amendment seeks to make it clear that 
in fact there is and should be a misdemeanor equivalent in some 
cases at the discretion of the U.S. attorney and the judge 
involved.
    I have talked to the Ranking Member, and it seems like they 
are very concerned on their side of the aisle that anything 
that doesn't look tough politically in this season is going to, 
in fact, be unacceptable, but I would ask the Ranking Member 
and the Chairman to seriously consider whether or not we want 
to rush something through that is so different than the normal 
work product of this Committee. I urge its passage.
    Chairman Sensenbrenner. The gentleman from Texas insist on 
point of order?
    Mr. Smith. Yes, I do, Mr. Chairman.
    Chairman Sensenbrenner. State your point of order.
    Mr. Smith. Mr. Chairman, I regret that this amendment is 
not properly drafted, and the reason it is not properly drafted 
is because it seeks to amend the manager's amendment which has 
already been agreed to.
    Chairman Sensenbrenner. The gentleman from California wish 
to be heard?
    Mr. Issa. Yes, Mr. Chairman. With that, I would withdraw my 
amendment.
    Chairman Sensenbrenner. The amendment is withdrawn.
    Mr. Issa. And seek to have it corrected between now and 
floor passage.
    Chairman Sensenbrenner. Are there further amendments?
    The gentleman from Massachusetts Mr. Meehan.
    Mr. Meehan. Mr. Chairman, I have an amendment at the desk, 
Meehan 60.
    Chairman Sensenbrenner. The Clerk will report the 
amendment.
    The Clerk. Amendment to----
    Mr. Smith. Mr. Chairman, I reserve a point of order.
    Chairman Sensenbrenner. Point of order is reserved. Clerk 
will report the amendment.
    The Clerk. Offered by Mr. Meehan of Massachusetts. Add at 
the end of the title II the following: Section 204, Amendment 
to Restrictions on Former Officers, Employees and Elected 
Officials----
    Chairman Sensenbrenner. Without objection the amendment is 
considered as read.
    [The amendment follows:]
      
      

  


      
      

  


      
      

  


      
      

  


    Chairman Sensenbrenner. The gentleman from Massachusetts is 
recognized for 5 minutes.
    Mr. Meehan. Thank you, Mr. Chairman. I won't need the full 
5 minutes because my amendment is simple. There is a revolving 
door between Congress and K Street that gives lobbyists special 
access because of their past Government service. Currently, 
there is a 1-year waiting period before Members of Congress and 
senior Government employees can walk through the revolving door 
to become lobbyists. My amendment would extend the cooling off 
period to 2 years and slow down the revolving door and keep 
special interest at an appropriate arm's length from policy 
makers.
    In addition, it would bar former Members from engaging in 
any lobbying activities including opening their own lobbying 
shops for 1 year after they leave Federal service. This is a 
trend that cannot be denied. Seven figure salaries are luring 
more and more public servants into the lobbying industry.
    Mr. Chairman, over 270 former Members of Congress 
registered as lobbyists between 1995 and 2004. According to 
Public Citizen, 43 percent of the lawmakers who left office 
since 1998 have become lobbyists. In recent years, a key author 
of the 2003 Medicare Drug Law, widely criticized as too 
generous to the drug companies, had become the president of the 
drug industry's lobbying firm.
    Americans should be able to know what people who run 
Congress do so as to serve the public good. This revolving door 
creates lucrative careers in lobbying for special interest. 
This is the same provision that Congressman Emanuel and I have 
proposed.
    I urge support for the amendment, and I would also point 
out that this is as well an amendment that I checked with the 
Parliamentarian to determine whether or not it was germane. The 
Parliamentarian said, yes, in fact that it was, and I yield 
back, Mr. Chairman.
    Chairman Sensenbrenner. Does the gentleman from Texas 
insist on his point of order?
    Mr. Smith. Yes, I do, Mr. Chairman.
    Chairman Sensenbrenner. State your point of order.
    Mr. Smith. House Rule 16 precludes amendments on a subject 
different from that under consideration. Title I of the 
legislation pertains to enhanced disclosure requirements by 
registered lobbyists and section 201 requires the House Clerk 
to provide notice of Members and staff of post-employment 
restrictions. There is no provision contained in the 
legislation within the Committee's purview that addresses this 
subject of the amendment. As a result, this amendment fails the 
test of germaneness contained in House Rule 16 and is not in 
order. I will yield back.
    Chairman Sensenbrenner. The gentleman from Massachusetts 
wish to be heard on the point of order?
    Mr. Meehan. Mr. Chairman, could I ask the gentlemen whether 
I should infer anything of the fact that the gentleman from 
California, when he objected on the grounds it wasn't relevant, 
regretted it, and on my two amendments, I didn't hear any 
regret.
    Mr. Smith. I have to tell you, if the gentleman wants a 
long answer, I can give him one, but the regrets are not the 
same.
    Mr. Meehan. Mr. Chairman, I made the point.
    Chairman Sensenbrenner. The chair is prepared to rule. For 
the reasons stated by the gentleman from Texas, the amendment 
is not germane, and the point of order is sustained. Are there 
further amendments?
    The gentleman from Maryland, Mr. Van Hollen.
    Mr. Van Hollen. Thank you, Mr. Chairman. I have an 
amendment at the desk.
    Chairman Sensenbrenner. The Clerk will report the 
amendment.
    The Clerk. Amendment to H.R. 4975 offered by Mr. Van 
Hollen. Add at the end of title I the following: Section 107, 
Requiring Lobbyists to File Reports on Solicitations and 
Transfers of Contributions for Candidates.
    Mr. Smith. Mr. Chairman, I will reserve a point of order.
    Chairman Sensenbrenner. Point of order is reserved. Without 
objection, the amendment is considered as read.
    [The amendment follows:]
      
      

  


      
      

  


      
      

  


    Chairman Sensenbrenner. The gentleman from Maryland, Mr. 
Van Hollen, is recognized for 5 minutes.
    Mr. Van Hollen. Thank you, Mr. Chairman. I think the 
overall intent of this legislation is to at least in part 
restore the confidence to the American people that the business 
conducted up here is done in a way that they can be proud of, 
and I don't think any reform can get at the issues that we need 
to address if it doesn't address the campaign finance aspects 
of the problem.
    We have in this bill a prohibition, for example, on a 
lobbyist accompanying a Member of Congress on a corporate jet 
and yet that same lobbyist can be involved in raising a lot of 
money for a Member of Congress. We don't have it within our 
jurisdiction right now to deal with public financing of 
campaigns, and I get to the root of the problem in a number of 
these areas, but what we do have before us is a bill dealing 
with disclosure requirements for lobbyists. In fact, it has a 
provision in it already that requires lobbyists as part of 
their disclosure to disclose the contributions they make.
    What this amendment would do simply is to say that they 
also have to disclose contributions that they solicit on behalf 
of candidates and transfer to those candidates, and it requires 
them to disclose whether or not they are the treasurer or the 
Chairman of a candidate campaign or another campaign committee, 
for example, a leadership PAC.
    We had a hearing yesterday in the Constitution 
Subcommittee, and I think it was very clear that this kind of 
disclosure is important; it is in the public interest. If we 
want to really begin to address the nexus between lobbying and 
their influence on the process through money contributions, we 
at the very least can shine a little sunlight on what is going 
on and let the public decide based on the information whether 
they think, whether undue influence is being exercised.
    So, Mr. Chairman----
    Mr. Nadler. Will the gentleman yield?
    Mr. Van Hollen. Happy to yield.
    Mr. Nadler. Is it your intention in this amendment to 
require a report of a solicitation of a contribution if no 
contribution is in fact forthcoming or only if there is a 
contribution?
    Mr. Van Hollen. We want to make very clear, it says and 
transmits. So you only have to disclose if you solicited and 
you transmit a contribution. In other words, solicitation by 
itself, if there is no contribution, no. No requirement.
    Mr. Nadler. Thank you. I yield back.
    Mr. Van Hollen. We wanted to make it very tight.
    Chairman Sensenbrenner. Does the gentleman from Texas 
insist on his point of order?
    Mr. Smith. I withdraw my point of order.
    Chairman Sensenbrenner. Reservation is withdrawn. The Chair 
recognizes himself for 5 minutes.
    This amendment, I think, makes a constructive addition to 
the bill, and I would urge the Committee to accept it and yield 
back the balance of my time.
    The question is on the amendment offered by the gentleman 
from Maryland, Mr. Van Hollen.
    Ms. Jackson Lee. Mr. Chairman, I would like to strike the 
last word.
    Chairman Sensenbrenner. The gentlewoman is recognized for 5 
minutes.
    Ms. Jackson Lee. Mr. Van Hollen, I think this is likewise 
constructive. I would pose a question as to whether or not this 
would offer a set of circumstances that has come to our 
attention when solicitations of funds have been made pursuant 
to the actions of a staff member in a Member's office and those 
solicitations ultimately went into a foundation for the staff 
member's wife. Does this have a broad enough reach to address 
the question of that sort of roundabout fundraising? And as we 
have gleaned, allegedly a benefit was given to the lobbyist for 
that solicitation of funds. Does this in any way capture that 
tawdry description that I just gave?
    Mr. Van Hollen. Only if that other entity were a political 
committee. In other words, this applies to contributions made 
to the candidate committee or some other political committee 
like a leadership PAC.
    Ms. Jackson Lee. So would not cover, for example, a 
foundation that a lobbyist could utilize for funneling dollars 
into.
    Mr. Van Hollen. No. That might be a good additional 
amendment, but this would not cover that.
    Ms. Jackson Lee. Let me say that you have made a very good 
first step, and I add my support to that, and I believe that I 
will be crafting an amendment, if you would, that would add the 
foundation aspect to it because I think that is a glaring, 
gaping hole that we have now just discovered that can be a 
dangerous complement or partner in the misuse and abuse of this 
process of lobbying and gaining benefits. With that, I yield 
back my time, and I thank the gentleman for his very thoughtful 
amendment.
    Mr. Watt. Mr. Chairman, move to strike the last word.
    Chairman Sensenbrenner. The gentleman is recognized for 5 
minutes.
    Mr. Watt. Just for purposes of asking Mr. Van Hollen a 
question.
    This is designed to get at the practice that is generally 
referred to as bundling?
    Mr. Van Hollen. Yes, it certainly would encompass the 
practice of bundling. If a lobbyist goes out and solicits 
contributions from associates, business partners, transmits 
them to the candidate, they would disclose that as part of 
their lobbying report.
    Mr. Watt. So then you would end up with two separate 
reports. You would end up with a report of the contributions 
themselves, and you would end up with a separate report from 
the lobbyist, so, basically, you end up with two reports on 
that contribution.
    Mr. Van Hollen. Under this bill, there is a provision in it 
that now requires the lobbyists, as part of their lobbying 
disclosure, to report contributions that the lobbyist had made, 
which is an additional requirement that is not currently part 
of lobbying reporting; candidates have to report as part of the 
FEC. These are obligations placed on the lobbyists.
    Mr. Watt. I yield back, Mr. Chairman. I yield----
    Chairman Sensenbrenner. The gentlelady from Texas.
    Ms. Jackson Lee. Mr. Van Hollen, this action is by 
lobbyists, does not cover groups such as Emily's List, which is 
an individual bundling issue, or does it?
    Mr. Van Hollen. This deals, again, this is all part of the 
lobbying disclosure requirement--registered lobbyists.
    Ms. Jackson Lee. I just want to get that on the record. 
Distinctive from what might occur by a group such as Emily's 
List or falls in that category.
    Mr. Van Hollen. This is to get at the particular nexus 
between lobbyists and fundraising.
    Ms. Jackson Lee. I yield back.
    Chairman Sensenbrenner. The gentleman from Ohio, Mr. King.
    Mr. King. Thank you, Mr. Chairman. I speak in opposition to 
the Van Hollen amendment, and it is possible to follow the 
money, and that is what we should be doing, is shining sunshine 
on all the money we can so that the public with access through 
the Internet, immediate access can evaluate what is going on 
with the financing and the lobbying efforts that are taking 
place all across the politics of this country. But it is not 
possible to legitimately follow the discussions and the network 
that takes place that is a fundraising effort.
    I would point out, how do you file, when you are soliciting 
for a candidate--I mean, I know there are a network of 
lobbyists and constituents and grassroots organizations, and 
those three areas have a network where they discuss together 
and they might generally agree that one candidate is worth 
supporting and another one not, but they don't know whether 
those discussions or those solicitations necessarily result in 
a check going into a candidate's campaign account.
    So to report solicitations, perhaps transfers, if a 
lobbyist carries a check, but you can never audit this. Again, 
it is as subjective an amendment as the issue raised by Mr. 
Gohmert. So I rise in opposition to this amendment. It is bad 
enough to go down this path of setting every Member of Congress 
up, without adding to it this vague amendment of the Van Hollen 
amendment where one might be indicted for soliciting or not 
filing or not reporting a solicitation of funding when they may 
well not know whether they have actually solicited or just said 
a kind word about a Member or whether they have emphatically 
request had that someone pitch in----
    Mr. Van Hollen. Would the gentleman yield?
    Mr. King. Where they request someone pitch into that 
campaign account and not see whether there is a result or not.
    Mr. Berman. Would the gentleman yield?
    Mr. King. I would be happy to yield.
    Mr. Berman. As I look at the provision, it, first of all, 
only applies to lobbyists, it doesn't apply to grassroots 
individuals, and it only applies to lobbyists who solicit, and 
then they themselves transmit the contribution. So, to me, it 
fits perfectly within what you defined as the appropriate area 
to legislate, that is to facilitate the following of the money. 
It doesn't cover grassroots groups, it covers lobbyists, and it 
only requires lobbyists to solicit and then get the check which 
they then transmit to the campaign.
    Mr. King. Reclaiming my time. The words that were used by 
Mr. Van Hollen were solicited or transferred. I think my 
definition is accurate.
    Mr. Van Hollen. Would the gentleman yield.
    Mr. King. I would yield back the balance of my time.
    Mr. Smith. [presiding] Are there any other Members who wish 
to be heard on the amendment?
    Mr. Berman. It is not, or it is an----
    Mr. Smith. The gentlewoman is recognized for 5 minutes.
    Ms. Wasserman Schultz. Move to strike the last word and 
yield to the gentleman from Maryland.
    Mr. Van Hollen. I thank my colleague. In response to Mr. 
King, an earlier question was raised about whether it was just 
soliciting, and it was very clear, and it was clear in the 
language, it is solicit and transfer. Both those things have to 
happen. It applies, just to make it absolutely clear, it 
applies to lobbyist reporting. This is not dealing with any 
disclosures apart from your separate FEC report. This has to do 
with lobbyists, what they have to disclose at the time they 
file their disclosure report, and says, if they have solicited 
and transferred funds to a candidate, they have to report that 
just as they report under this law their own campaign 
contributions.
    Mr. King. Would the gentleman yield?
    Mr. Van Hollen. I would be happen to yield.
    Mr. King. Would you define, then, transfer? If that means 
handing a check but not cutting a check, does that include 
transfer or transmit?
    Mr. Van Hollen. What do you mean by cutting a check. If you 
are cutting a check yourself, you are covered under the 
underlying proposal.
    Mr. King. If someone hands a check to the lobbyist, and 
they hand the check to someone else, are they obligated under 
this amendment to report that?
    Mr. Van Hollen. Yes, they would be.
    Mr. King. In which case, they don't have a nexus, a 
financial nexus, which lets my argument stand. I appreciate 
that, and I yield back.
    Mr. Van Hollen. If you are a lobbyist and you transfer 
these funds to a candidate, seems to me have you a nexus 
between that contribution that you are providing on behalf of 
somebody else to the candidate, and that would be covered.
    Mr. Smith. The gentlewoman from Florida has time. Does she 
yield back?
    Ms. Wasserman Schultz. I yield back.
    Mr. Smith. The question is on the amendment. All in favor, 
say aye. All opposed, nay. The nays have it.
    Mr. Berman. Mr. Chairman, rollcall.
    Mr. Smith. The Clerk will call the roll.
    The Clerk. Mr. Hyde?
    Mr. Hyde. Aye.
    The Clerk. Mr. Hyde, aye.
    Mr. Coble?
    [No response.]
    The Clerk. Mr. Smith?
    [No response.]
    The Clerk. Mr. Gallegly?
    Mr. Gallegly. Aye.
    The Clerk. Mr. Gallegly, aye.
    Mr. Goodlatte?
    [No response.]
    The Clerk. Mr. Chabot?
    Mr. Chabot. Aye.
    The Clerk. Mr. Chabot, aye.
    Mr. Lungren?
    [No response.]
    The Clerk. Mr. Jenkins?
    Mr. Jenkins. Aye.
    The Clerk. Mr. Jenkins, aye.
    Mr. Cannon?
    [No response.]
    The Clerk. Mr. Bachus?
    [No response.]
    The Clerk. Mr. Inglis?
    [No response.]
    The Clerk. Mr. Hostettler?
    Mr. Hostettler. No.
    The Clerk. Mr. Hostettler, no.
    Mr. Green?
    [No response.]
    The Clerk. Mr. Keller?
    Mr. Keller. Aye.
    The Clerk. Mr. Keller, aye.
    Mr. Issa?
    Mr. Issa. Aye.
    The Clerk. Mr. Issa, aye.
    Mr. Flake?
    [No response.]
    The Clerk. Mr. Pence?
    [No response.]
    The Clerk. Mr. Forbes?
    Mr. Forbes. Aye.
    The Clerk. Mr. Forbes, aye.
    Mr. King?
    Mr. King. No.
    The Clerk. Mr. King, no.
    Mr. Feeney?
    [No response.]
    The Clerk. Mr. Franks?
    Mr. Franks. No.
    The Clerk. Mr. Franks, no.
    Mr. Gohmert?
    [No response.]
    The Clerk. Mr. Conyers?
    Mr. Conyers. Aye.
    The Clerk. Mr. Conyers, aye.
    Mr. Berman?
    Mr. Berman. Aye.
    The Clerk. Mr. Berman, aye.
    Mr. Boucher?
    [No response.]
    The Clerk. Mr. Nadler?
    Mr. Nadler. Aye.
    The Clerk. Mr. Nadler, aye.
    Mr. Scott?
    Mr. Scott. Aye.
    The Clerk. Mr. Scott, aye.
    Mr. Watt?
    Mr. Watt. Aye.
    The Clerk. Mr. Watt, aye.
    Ms. Lofgren?
    Ms. Lofgren. Aye.
    The Clerk. Ms. Lofgren, aye.
    Ms. Jackson Lee?
    Ms. Jackson Lee. Aye.
    The Clerk. Ms. Jackson Lee, aye.
    Ms. Waters?
    Ms. Waters. Aye.
    The Clerk. Ms. Waters, aye.
    Mr. Meehan?
    Mr. Meehan. Aye.
    The Clerk. Mr. Meehan, aye.
    Mr. Delahunt?
    [No response.]
    The Clerk. Mr. Wexler?
    [No response.]
    The Clerk. Mr. Weiner?
    Mr. Weiner. Aye.
    The Clerk. Mr. Weiner, aye.
    Mr. Schiff?
    Mr. Schiff. Aye.
    The Clerk. Mr. Schiff, aye.
    Ms. Sanchez?
    Ms. Sanchez. Aye.
    The Clerk. Ms. Sanchez, aye.
    Mr. Van Hollen?
    Mr. Van Hollen. Aye.
    The Clerk. Mr. Van Hollen, aye.
    Ms. Wasserman Schultz?
    Ms. Wasserman Schultz. Aye.
    The Clerk. Ms. Wasserman Schultz, aye.
    Mr. Chairman?
    Chairman Sensenbrenner. Aye.
    The Clerk. Mr. Chairman, aye.
    Chairman Sensenbrenner. [Presiding.] The Members who wish 
to cast or change their vote.
    The gentleman from Texas, Mr. Smith.
    Mr. Smith. Mr. Chairman, I vote aye.
    The Clerk. Mr. Smith, aye.
    Chairman Sensenbrenner. The gentleman from North Carolina, 
Mr. Coble.
    Mr. Coble. Aye.
    Chairman Sensenbrenner. The gentleman from Utah, Mr. 
Cannon.
    Mr. Cannon. No.
    The Clerk. Mr. Cannon, no.
    Chairman Sensenbrenner. Gentleman from Wisconsin, Mr. 
Green.
    Mr. Green. Aye.
    The Clerk. Mr. Green, aye.
    Chairman Sensenbrenner. Gentleman from Virginia, Mr. 
Goodlatte.
    Mr. Goodlatte. Aye.
    The Clerk. Mr. Goodlatte, aye.
    Chairman Sensenbrenner. The gentleman from South Carolina, 
Mr. Inglis.
    Mr. Inglis. Aye.
    The Clerk. Mr. Inglis, aye.
    Chairman Sensenbrenner. The gentleman from Florida, Mr. 
Wexler.
    Mr. Wexler. Aye.
    The Clerk. Mr. Wexler, aye.
    Chairman Sensenbrenner. Further Members who wish to cast or 
change their votes? If there are none, the Clerk will report.
    The Clerk. Mr. Chairman, there are 28 ayes and 4 nays.
    Chairman Sensenbrenner. The amendment is agreed to.
    Are there further amendments?
    Are there further amendments? For what purpose does the 
gentlewoman from California seek recognition.
    Ms. Waters. Move to strike the last word.
    Chairman Sensenbrenner. Gentlelady is recognized for 5 
minutes.
    Ms. Waters. Mr. Chairman, I don't know if it would be 
appropriate to request reconsideration of the manager's 
amendment, it has already passed; but if not, I would like to 
bring to the attention of the Chair and the Committee that I 
had an amendment that was basically covered in the bill, and we 
did not seek to introduce the amendment because we thought it 
was covered until we looked at it in detail.
    On page 3, line 1, where there is an attempt to make sure 
that contacts with Members of Congress by lobbyists are 
disclosed, we should have included ``and staff'' because many 
of these contacts--most of them--are with staff rather than the 
Member. And so to leave that out would be a gaping hole in what 
we are trying to do.
    So I bring that to the Chairman's attention so that the 
Chairman may take care of that in the best way possible. And if 
reconsideration is the best way, then I would unanimously 
request that we do it that way.
    Chairman Sensenbrenner. Does the gentlewoman make a 
unanimous consent request?
    Ms. Waters. Yes, unanimous consent request for 
reconsideration of the manager's amendment in order to add the 
word ``staff'' on page 3, line 1.
    Chairman Sensenbrenner. The gentlewoman from California 
asks unanimous consent that the vote by which the manager's 
amendment was agreed to be reconsidered. Is there objection?
    Mr. Smith. Mr. Chairman, I object.
    Chairman Sensenbrenner. Objection is heard. Are there 
further amendments? There are no further amendments.
    Gentleman from Virginia, Mr. Scott, for what purpose do you 
seek recognition?
    Mr. Scott. I have an amendment that is being copied right 
now I would like to offer. It is being copied right now, Mr. 
Chairman.
    Chairman Sensenbrenner. Well, then, the gentleman is going 
to have to forbear until his amendment is ready.
    Are there further amendments?
    Ms. Waters. Mr. Chairman, I have an amendment.
    Chairman Sensenbrenner. Clerk will report the amendment of 
the gentlewoman from California, Ms. Waters.
    The Clerk. Amendment offered by Ms. Waters to the amendment 
offered by Mr. Sensenbrenner and Mr. Conyers to H.R. 4975:
    Page 3, line 1, insert ``and each covered legislative 
branch''----
    Mr. Smith. Mr. Chairman, I will reserve a point of order.
    Chairman Sensenbrenner. Point of order is reserved. Without 
objection, the amendment is considered as read and the 
gentlewoman is recognized for 5 minutes.
    [The amendment follows:]
      
      

  


    Ms. Waters. Thank you very much. Mr. Chairman and Members, 
this amendment is intended to make sure that the work that we 
are doing here today to reform the lobbying of this Congress is 
exactly what we wanted to do. We have a bill that is attempting 
to expand disclosure and to make sure that the public and 
others are informed about what we are doing so as to get rid of 
some of the problems that have confronted this Congress in 
recent months. And this bill is designed to add teeth. And my 
legislation, my amendment, would absolutely do that by simply 
including the word ``staff'' in the amendment. I yield back.
    Chairman Sensenbrenner. Does the gentleman from Texas 
insist upon his point of order?
    Mr. Smith. Yes, I do, Mr. Chairman.
    Chairman Sensenbrenner. State your point of order.
    Mr. Smith. Mr. Chairman, this amendment is not properly 
drafted, primarily because it seeks to amend the manager's 
amendment which has already been agreed to. And for those 
reasons, I am making the point of order.
    Chairman Sensenbrenner. Gentlewoman from California wish to 
be heard on the point of order?
    Ms. Waters. Let me just be clear. I am sorry to do this. I 
came in late. Has the manager's amendment been voted on and 
adopted?
    Chairman Sensenbrenner. Yes.
    Ms. Waters. Has the bill?
    Chairman Sensenbrenner. The bill has not been voted on. The 
bill is open for amendment at any point, but the point of order 
that the gentleman from Texas has raised is that the amendment 
proposes to amend a section of the bill that has already been 
amended.
    Does the gentlewoman from California wish to be heard on 
the point of order?
    Ms. Waters. Well, then, I suppose that there is a 
misunderstanding. I thought this amendment would still be in 
order since the bill had not been adopted. I understand that 
that section has been closed. But I don't know why we can't 
have this amendment that should be accepted and in order at 
this point.
    Chairman Sensenbrenner. The Chair is prepared to rule
    Mr. Weiner. Mr. Chairman, I just want to be heard.
    Chairman Sensenbrenner. Gentleman from New York wish to be 
heard on the point of order?
    Mr. Weiner. The point of order is: This is a section that 
has already been amended?
    Chairman Sensenbrenner. Correct.
    Mr. Weiner. Is there a limit on the number of times a 
section may be amended.
    Chairman Sensenbrenner. There is no limit, but it is only 
proper to--the Chair is prepared to rule. I will answer the 
question.
    Ms. Waters. Mr. Chairman, point of order.
    Chairman Sensenbrenner. The Chair has to rule on one point 
of order before another one can be raised. The Chair is 
prepared to rule on the point of order raised by the gentleman 
from Texas, Mr. Smith.
    Section 38 of House practice provides that, quote, it is 
fundamental that it is not in order to amend an amendment 
previously agreed to, unquote. This rule is articulated in 
section 469 of the House manual. Because the manager's 
amendment, adopted by the Committee, amended provisions of the 
underlying bill that the amendment seeks to change, it is not 
in order. The Chair sustains the point of order of the 
gentleman from Texas.
    Are there further amendments?
    Ms. Waters. Mr. Chairman, I have an amendment.
    Chairman Sensenbrenner. The clerk will report the 
amendment.
    The clerk does not have an amendment.
    Are there further amendments?
    Ms. Waters. The amendment should be at the desk, Mr. 
Chairman.
    Chairman Sensenbrenner. The clerk says that there is no 
amendment by the--proposed amendment by the gentlewoman from 
California at the desk. Are there further----
    Ms. Waters. Mr. Chairman, the amendment is almost at the 
desk.
    The amendment is at the desk.
    Chairman Sensenbrenner. The clerk will report the amendment 
which has made its way to the desk.
    The Clerk. Amendment by Ms. Waters to the amendment offered 
by Mr. Sensenbrenner and Mr. Conyers to H.R. 4975.
    Mr. Smith. Mr. Chairman, I have a point of order.
    Chairman Sensenbrenner. Point of order observed by the 
gentleman from Texas. Without objection, the amendment is 
considered as--the Chair had better read the amendment because 
it has not been Xeroxed.
    The Clerk. Insert at the end the following:
    ``as used in this bill the term 'Members of Congress' shall 
include any employee of a Member of Congress.''
    Chairman Sensenbrenner. The gentlewoman is recognized for 5 
minutes.
    Ms. Waters. Thank you, very much. This amendment would be 
added to the end of the bill that would simply clarify that 
when we reference ``Member of Congress'' that that also 
includes the staff. That is simply all the amendment does. And 
I am sure that all of my Members--all of the Members of this 
House would not want to have the confusion, that it is to be 
disclosed when there is a lobby in contact with the Member, and 
leave this gaping hole that somehow they don't have to disclose 
if the contact has been made with the staff.
    That would simply be a trick. And we don't want to play a 
trick on the public about what we are attempting to do. So this 
is a very simple amendment that would take care of that. I ask 
for an aye vote.
    Chairman Sensenbrenner. Does the gentleman from Texas 
insist upon his point of order?
    Mr. Smith. Yes, I do Mr. Chairman.
    Chairman Sensenbrenner. State your point of order.
    Mr. Smith. Mr. Chairman, the point of order is the same as 
stated previously, and that is the amendment is not properly 
drafted, and the reason it is not properly drafted is because 
it seeks to amend the manager's amendment which has already 
been agreed to. And I yield back.
    Chairman Sensenbrenner. The Chair is prepared to rule for 
the same reason he sustained the previous----
    Mr. Berman. Mr. Chairman.
    Chairman Sensenbrenner. The Chair is prepared to rule. For 
the same reason that the Chair sustained the previous point of 
order on the last amendment, the Chair sustains this point of 
order as well. Are there further amendments?
    Mr. Conyers. I rise to strike the requisite number of 
words.
    Chairman Sensenbrenner. Gentleman is recognized for 5 
minutes.
    Mr. Conyers. Could I ask, is there some way that we could 
accommodate the gentlelady from California, who is simply 
trying to include staffers of Congress in the term ``Member of 
Congress'' as used in our amendment? I think it is a worthwhile 
effort. It has been frustrated by the rules of the House. But 
if we could accommodate this simple objective, I think we would 
all be better served.
    Chairman Sensenbrenner. If the gentleman will yield. If the 
gentleman from Michigan will yield, during the 5\1/2\ years 
that I have been honored to be the Chair of this Committee, I 
have found that the gentleman from Michigan and all of the 
minority party Members and the minority party staff have been 
very creative in drafting proper amendments. So I think that 
they ought to apply their creativity at this point in time, 
knowing that the rule--what the rules are and how the rules are 
enforced.
    Ms. Sanchez. Mr. Chairman.
    Chairman Sensenbrenner. The time belongs to the gentleman 
from Michigan.
    Mr. Berman. Would the gentleman yield?
    Mr. Conyers. Of course.
    Mr. Berman. In that context, just looking at the 
gentlelady's amendment, I mean the irony is, in effect, the 
Chairman and the Ranking Member offer an amendment, a manager's 
amendment. Not an amendment in the nature of a substitute, but 
a manager's amendment.
    I guess what really should have happened was that they 
should have sought to amend that amendment before it was 
adopted. But now that didn't happen. The amendment is adopted. 
And as to amendments that affect sections amended by the 
manager's amendment, the Chair is ruling that those amendments 
are no longer in order.
    But this last amendment seeks to add at the end of the bill 
a clarification regarding the meaning of terms in the bill. And 
I would like to understand better why the Chair ruled that that 
amendment is also out of order.
    Chairman Sensenbrenner. Well, will the gentleman from 
Michigan yield again?
    Mr. Conyers. Of course.
    Chairman Sensenbrenner. In order to get this moving along, 
the Chair would ask unanimous consent that the caption that 
says ``Amendment Offered by Ms. Waters to the Amendment Offered 
by Messrs. Sensenbrenner and Conyers to H.R. 4975'' be 
stricken.
    Ms. Waters. That's right.
    Chairman Sensenbrenner. And, without objection, the Chair's 
unanimous consent request is agreed to and the gentlewoman 
from--gentlewoman from California has already been recognized 
on her amendment.
    So, does anybody else----
    Ms. Sanchez. Mr. Chairman, I have an amendment at the desk.
    Chairman Sensenbrenner. The current amendment that is 
pending is that of the gentlewoman from California, Ms. Waters.
    Ms. Sanchez. Mr. Chairman, I withdraw my amendment.
    Chairman Sensenbrenner. All those in favor of the Waters 
amendment will say aye.
    Opposed, no.
    The ayes appear to have it.
    Ms. Waters. rollcall.
    Chairman Sensenbrenner. rollcall is ordered. Those in 
favor----
    Ms. Waters. I am sorry. Did we get it? Disregard that. 
Thank you.
    Chairman Sensenbrenner. The Chair is bending over to be 
fair in enforcing the rules.
    Ms. Waters. We appreciate that. Thank you.
    Chairman Sensenbrenner. You need a better attitude, Ms. 
Waters.
    Ms. Waters. Oh, you haven't seen me when I have a bad 
attitude.
    Chairman Sensenbrenner. Oh, yes, I have.
    Are there further amendments? Gentleman from Virginia, Mr. 
Scott, for what purpose do you seek recognition?
    Mr. Scott. Mr. Chairman, I have an amendment at the desk 
and I would also ask unanimous consent that the part of the 
amendment that says the ``Amendment Offered by Mr. 
Sensenbrenner and Mr. Conyers'' be deleted, so that it is an 
amendment to the bill.
    Chairman Sensenbrenner. The Clerk will--well, without 
objection, the gentleman's attempt to take Mr. Conyer's and my 
name in vain will be stricken, and the Clerk will report the 
amendment.
    The Clerk. Amendment offered by Mr. Scott of Virginia to 
H.R. 4975:
    At the end of the bill, new section: The GAO shall study--
--
    Chairman Sensenbrenner. Without objection, the amendment is 
considered as read. And will the gentleman from Virginia yield?
    [The amendment follows:]
    
    
    Mr. Scott. Yes.
    Chairman Sensenbrenner. Great amendment. I hope it is 
adopted. I thank the gentleman.
    Mr. Scott. I yield back.
    Chairman Sensenbrenner. The question is on the amendment 
offered by the gentleman from Virginia, Mr. Scott.
    Those this favor will say aye.
    Opposed, no.
    The ayes appear to have it. The ayes have it. The Scott 
amendment is agreed to.
    Are there further amendments?
    There are no further amendments. A reporting quorum is 
present. The question occurs on the motion to report the bill 
H.R. 4975 favorably, as amended.
    All in favor say aye.
    Opposed, no.
    The ayes appear to have it.
    Mr. Conyers. Mr. Chairman, I would request a record vote.
    Chairman Sensenbrenner. Okay. A record vote is requested. 
The question is on the motion to report the bill H.R. 4975 
favorably, as amended.
    All in favor will, as your names are called, answer aye; 
and those opposed, no. And the clerk will call the roll.
    The Clerk. Mr. Hyde.
    Mr. Hyde. Aye.
    The Clerk. Mr. Hyde, aye.
    Mr. Coble.
    [No response.]
    The Clerk. Mr. Smith.
    Mr. Smith. Aye.
    The Clerk. Mr. Smith, aye.
    Mr. Gallegly.
    Mr. Gallegly. Aye.
    The Clerk. Mr. Gallegly, aye.
    Mr. Goodlatte.
    Mr. Goodlatte. Aye.
    The Clerk. Mr. Goodlatte, aye.
    Mr. Chabot.
    Mr. Chabot. Aye.
    The Clerk. Mr. Chabot, aye.
    Mr. Lungren.
    [No response.]
    The Clerk. Mr. Jenkins.
    Mr. Jenkins. Aye.
    The Clerk. Mr. Jenkins, aye.
    Mr. Cannon.
    Mr. Cannon. No.
    The Clerk. Mr. Cannon, no.
    Mr. Bachus.
    [No response.]
    The Clerk. Mr. Inglis.
    Mr. Inglis. Aye.
    The Clerk. Mr. Inglis, aye.
    Mr. Hostettler.
    Mr. Hostettler. Aye.
    The Clerk. Mr. Hostettler, aye.
    Mr. Green.
    Mr. Green. Aye.
    The Clerk. Mr. Green, aye.
    Mr. Keller.
    Mr. Keller. Aye.
    The Clerk. Mr. Keller, aye.
    Mr. Issa.
    Mr. Issa. Aye.
    The Clerk. Mr. Issa, aye.
    Mr. Flake.
    [No response.]
    The Clerk. Mr. Pence.
    [No response.]
    The Clerk. Mr. Forbes.
    Mr. Forbes. Aye.
    The Clerk. Mr. Forbes, aye.
    Mr. King.
    Mr. King. No.
    The Clerk. Mr. King, no.
    Mr. Feeney.
    Mr. Feeney. Aye.
    The Clerk. Mr. Feeney, aye.
    Mr. Franks.
    Mr. Franks. Aye.
    The Clerk. Mr. Franks, aye.
    Mr. Gohmert.
    Mr. Gohmert. No.
    The Clerk. Mr. Gohmert, no.
    Mr. Conyers.
    Mr. Conyers. No.
    The Clerk. Mr. Conyers, no.
    Mr. Berman.
    Mr. Berman. Aye.
    The Clerk. Mr. Berman, aye.
    Mr. Boucher.
    Mr. Berman, no?
    Mr. Berman. [Nods in the affirmative.]
    The Clerk. Mr. Nadler.
    [No response.]
    The Clerk. Mr. Scott.
    Mr. Scott. No.
    The Clerk. Mr. Scott, no.
    Mr. Watt.
    Mr. Watt. Aye.
    The Clerk. Mr. Watt, aye.
    Ms. Lofgren.
    Ms. Lofgren. No.
    The Clerk. Ms. Lofgren, no.
    Ms. Jackson Lee.
    Ms. Jackson Lee. No.
    The Clerk. Ms. Jackson Lee, no.
    Ms. Waters.
    Ms. Waters. Aye.
    The Clerk. Ms. Waters, aye.
    Mr. Meehan.
    Mr. Meehan. No.
    The Clerk. Mr. Meehan, no.
    Mr. Delahunt.
    [No response.]
    The Clerk. Mr. Wexler.
    Mr. Wexler. Pass.
    The Clerk. Mr. Wexler, pass.
    Mr. Weiner.
    Mr. Weiner. Pass.
    The Clerk. Mr. Weiner, pass.
    Mr. Schiff.
    Mr. Schiff. No.
    The Clerk. Mr. Schiff, no.
    Ms. Sanchez.
    Ms. Sanchez. No.
    The Clerk. Ms. Sanchez, no.
    Mr. Van Hollen.
    Mr. Van Hollen. Aye.
    The Clerk. Mr. Van Hollen, aye.
    Ms. Wasserman Schultz.
    Ms. Wasserman Schultz. Aye.
    The Clerk. Ms. Wasserman Schultz, aye.
    Mr. Chairman.
    Chairman Sensenbrenner. Aye.
    The Clerk. Mr. Chairman, aye.
    Chairman Sensenbrenner. Members of the chamber who wish to 
cast or change their vote? Gentleman from North Carolina, Mr. 
Coble.
    Mr. Coble. Aye.
    The Clerk. Mr. Coble, aye.
    Chairman Sensenbrenner. Further Members in the chamber who 
wish to--gentleman from California, Mr. Lungren.
    Mr. Lungren. Aye.
    The Clerk. Mr. Lungren, aye.
    Chairman Sensenbrenner. Gentleman from North Carolina, Mr. 
Watt.
    Mr. Watt. Would it be appropriate to make a parliamentary 
inquiry?
    Chairman Sensenbrenner. Not during the rollcall.
    Mr. Watt. Even if it is about the rollcall itself and----
    Chairman Sensenbrenner. The question is on----
    Mr. Watt. That is what----
    Chairman Sensenbrenner.--the motion to report the bill, as 
amended, favorably.
    Mr. Watt. Not just the section that was under our 
jurisdiction, the entire bill?
    Chairman Sensenbrenner. The question is on the motion to 
report the bill H.R. 4975 favorably, as amended.
    Mr. Watt. In that case, Mr. Chairman, how am I recorded?
    The Clerk. Mr. Chairman, Mr. Watt is recorded as aye.
    Mr. Watt. I would like to be recorded no.
    The Clerk. Mr. Watt no.
    Chairman Sensenbrenner. Gentleman from Florida, Mr. Wexler.
    Mr. Wexler. No.
    The Clerk. Mr. Wexler, no.
    Chairman Sensenbrenner. Gentleman from Maryland, Mr. Van 
Hollen.
    Mr. Van Hollen. Mr. Chairman, this portion before on the 
Committee, how am I recorded.
    The Clerk. Mr. Chairman, Mr. Van Hollen is recorded as aye.
    Mr. Van Hollen. I understand this is the whole bill. I vote 
no.
    The Clerk. Mr. Van Hollen, no.
    Chairman Sensenbrenner. Further Members who wish to cast or 
change their vote? Gentleman from New York, Mr. Weiner.
    Mr. Weiner. Mr. Chairman, no.
    The Clerk. Mr. Weiner, no.
    Chairman Sensenbrenner. Gentlewoman from Florida, Ms. 
Wasserman Schultz.
    Ms. Wasserman Schultz. How am I recorded, Mr. Chairman?
    The Clerk. Mr. Chairman, Ms. Wasserman Schultz is recorded 
as aye.
    Ms. Wasserman Schultz. Mr. Chairman, under what Mr. Van 
Hollen said as well, knowing that this is the entire bill, I 
would like to be recorded as no.
    The Clerk. Ms. Wasserman Schultz, no.
    Chairman Sensenbrenner. Further Members who wish to cast or 
change their votes? If not, the clerk will report.
    The Clerk. Mr. Chairman, there are 18 ayes and 16 nays.
    Chairman Sensenbrenner. And the motion to report favorably 
is agreed to. Without objection, the bill will be reported 
favorably to the House in the form of a single amendment in the 
nature of a substitute, incorporating the amendments adopted 
here today. Without objection, the staff is directed to make 
any technical and conforming changes and all Members will be 
given 2 days, as provided by the House rules, in which to 
submit additional dissenting supplemental or minority views.
    I think we have put in a good day's work for a good day's 
pay. And, without objection, the Committee stands adjourned.
    [Whereupon, at 11:20 a.m., the Committee was adjourned.]
                            Dissenting Views

    We strongly dissent from the passage of H.R. 4975 \1\ in 
its present form.
---------------------------------------------------------------------------
    \1\ The House Republican proposal on lobbying and ethics reform has 
been under discussion for months, with Rules Committee Chairman David 
Dreier (R-CA) taking the lead. On March 16, Rep. Dreier introduced H.R. 
4975, the Lobbying Accountability and Transparency Act of 2006, as a 
single comprehensive bill. The bill was divided into pieces and 
parceled out to five different committees including the Judiciary 
Committee; House Administration; Rules; Government Reform; and the 
House Standards of Official Conduct Committee.
---------------------------------------------------------------------------
    Given the nature and climate of the recent scandals that 
have plowed through Washington, we as legislators have a job to 
do. If there is one thing that is clear in this debate, it is 
that there is certainly a need for a complete overhaul of the 
lobbying industry. A recent survey conducted by the non-
partisan Center for Public Integrity evaluated the strength of 
lobbying disclosure laws nationwide and found that the current 
Federal laws on lobbying disclosure are considerably weaker 
than the lobby disclosure laws of 47 out of 50 states.
    In order to fully address the problems created by the 
lobbying, ethics, and corruption scandals that have called into 
question the integrity of the House, we believe Congress needs 
to enact lobby reform legislation that sets new contribution 
and fund-raising limits on lobbyists and lobbying firms; 
fundamentally change the gift, travel and employment 
relationships among Members of Congress, lobbyists and lobbying 
firms; require disclosure of grass-roots and coalition lobbying 
and institute new and effective enforcement mechanisms. We also 
believe there needs to be an independent office or commission 
to oversee and enforce ethics rules and lobbying laws, receive 
allegations and complaints, conduct investigations and present 
cases to congressional ethics committees. It is for these 
reasons that non-partisan watchdog groups such as Public 
Citizen, Common Cause, Democracy 21, U.S. PIRG, and League of 
Women Voters have expressed great concerns regarding H.R. 4975 
as a whole.
    H.R. 4975 stops short of the very principles that Speaker 
Hastert and the Republican Caucus had originally unveiled in 
January 2006 as the core of what would have been their primary 
reform measure. The Majority replaced a complete ban on 
privately funded travel with only a temporary suspension. The 
Majority had initially proposed tightened gift limits on 
lawmakers, but H.R. 4975 merely proposes that new disclosure 
requirements for lobbyists who offer them is the solution. And 
instead of doubling the one-year lobbying ban for former 
lawmakers and staffers-turned-lobbyists, as they had proposed 
three months ago, H.R. 4975 merely requires the Clerk of the 
House to notify covered persons at the beginning and end of the 
cooling-off period. In fact, the proposal that was put forth by 
the Democratic leadership that same day would cover all of the 
reforms that were initially suggested by the Speaker. For these 
and the following reasons, we dissent from H.R. 4975.

                    I. DESCRIPTION OF MAJORITY BILL

    The legislation proposed by the Majority includes the 
following provisions:

         Disclosure by Lobbyists: The trigger for 
        registering would change from $24,500 in lobby receipts 
        in a 6-month period to $10,000 in a 3-month period. The 
        bill also requires quarterly, electronic reporting by 
        registered lobbyists, including disclosure of campaign 
        contributions, gifts, and lobbyists' past congressional 
        and executive branch employment, but does not include 
        disclosure of expenditures for grassroots lobbying or 
        coalitions.

         Privately Funded Travel: Privately funded 
        travel would be banned for the remainder of the 109th 
        Congress, and the Committee on Standards of Official 
        Conduct would have to recommend new rules by Dec. 15.

         Revolving Door: The one-year waiting period 
        for members and senior staff before they could become 
        lobbyists would not be increased, however legislators 
        would be required to inform the ethics committee of any 
        job negotiations that could be a conflict of interest, 
        and refrain from voting on any matter that creates the 
        appearance of a conflict of interest.

         Earmarks: The bill would require the 
        identification of sponsors of earmarks in an 
        appropriations bill, and appropriations conference 
        reports would have to specify earmarks that originated 
        in conference, but there would be no simple method of 
        challenging earmarks.

         Oversight: The bill would create an auditing 
        authority for the House Inspector General to do spot 
        audits on lobby disclosure forms.

    At the markup, we were able to develop a bipartisan 
provision concerning the areas of Judiciary Committee 
jurisdiction--principally the Lobby Disclosure Act. That 
amendment would require additional quarterly disclosures by 
lobbyists, including disclosures of the names of Federal 
candidates and office holders, their leadership PACs or 
political committees for whom fundraising events are hosted by 
lobbyists, and information regarding payment for events 
honoring Members. The amendment also provides for criminal 
penalties for knowing, willful, and corrupt violation of these 
provisions.
    The Committee also accepted amendments to require lobbyists 
and treasurers who are registered lobbyists to disclose 
solicitations of PAC campaign contributions, in addition to the 
name of the person who the lobbyist solicited the money from 
and the identity of the candidate or PAC involved, and to 
require the GAO to study the employment contracts of lobbyists 
to determine the extent of contingent fee agreements and report 
such findings to the House Committee on the Judiciary. 
Unfortunately, we now understand that the Majority Leadership 
has determined to weaken even these modest enhancements by 
making numerous changes to the version to be considered on the 
House Floor. Namely, the Majority Leadership has decided to 
remove the language that would require disclosures of the names 
of Federal candidates and office holders, their leadership PACs 
or political committees for whom fundraising events are hosted 
by lobbyists, and information regarding payment for events 
honoring Members, that was agreed to during the Committee 
markup.

                     II. BACKGROUND AND CURRENT LAW

    The Lobbying Disclosure Act of 1995 requires lobbyists and 
lobbying firms, as defined in the Act, to register with the 
Secretary of the Senate and the Clerk of the House within 45 
days after making lobbying contacts or being employed to make 
such contacts.\2\ These lobbyists also must submit semi-annual 
reports identifying their clients and employers, the costs of 
lobbying, and the issues on which they lobbied.\3\ The 
Secretary of the Senate and the Clerk of the House are 
responsible for reviewing and, where necessary, verifying the 
correctness of registrations and reports that are made, and are 
further required to make the registrations and reports 
available for public inspection and copying.\4\
---------------------------------------------------------------------------
    \2\ 2 U.S.C. Sec. Sec. 1602(9), (10); 2 U.S.C. Sec. 1603.
    \3\ 2 U.S.C. Sec. 1604.
    \4\ 2 U.S.C. Sec. 1605.
---------------------------------------------------------------------------
    Under current law, the Secretary and the Clerk must notify 
in writing any lobbyist or lobbying firm of noncompliance with 
registration and reporting requirements, and must further 
notify the U.S. Attorney for D.C. of such noncompliance if the 
lobbyist or lobbying firm fails to remedy its noncompliance 
within 60 days notice to it. Whoever knowingly fails to timely 
remedy a defective filing within 60 days after notice of such 
defect has been given by the Secretary or the Clerk, or 
knowingly fails to comply with any other provision of the Act, 
is subject to a fine (civil penalty) of no more than $50,000.
    There is mounting evidence that LDA compliance has been lax 
and lobbyists have been finding ways to avoid LDA requirements 
altogether. In a major study of the federal lobbying industry 
that was published in April 2005, the Center for Public 
Integrity found that since 1998, lobbyists have spent almost 
$13 billion to influence members of Congress and other federal 
officials on legislation and regulations.\5\ The same study 
found that in 2003 alone, lobbyists spent $2.4 billion, with 
expenditures for 2004 expected to grow to at least $3 
billion.\6\ This is roughly twice as much as the amount that 
was spent on campaign finance in the same time period.\7\
---------------------------------------------------------------------------
    \5\ The Center for Public Integrity, Industry of Influence Nets 
Almost $13 Billion: Shadowy Lobbyists Ignore Rules and Exploit 
Connections (Apr. 7, 2005).
    \6\ Id.
    \7\ Id.
---------------------------------------------------------------------------
    The LDA contains some measures to help prevent 
inappropriate influence in the lobbying arena and promote 
sunshine on lobbying activities.\8\ However, according to the 
Center's study, compliance with these requirements has been 
lacking. For example, the Center found:
---------------------------------------------------------------------------
    \8\ Under the LDA, entities or individuals that meet the definition 
of ``lobbyist'' must register with the Secretary of the Senate and 
Clerk of the House within 45 days after making lobbying contacts or 
being employed to make such contacts. 2 U.S.C. Sec. Sec. 1602(9), (10); 
2 U.S.C. Sec. 1603. These lobbyists also must submit semi-annual 
reports identifying their clients and employers, the costs of lobbying, 
and the issues on which they lobbied. 2 U.S.C. Sec. 1604. The Secretary 
of the Senate and the Clerk of the House are responsible for reviewing 
and, where necessary, verifying the correctness of registrations and 
reports that are made, and are further required to make the 
registrations and reports available for public inspection and copying. 
2 U.S.C. Sec. 1605.

         During the last six years, 49 out of the top 
        50 lobbying firms have failed to file one or more of 
---------------------------------------------------------------------------
        the required forms;

         Nearly 14,000 documents that should have been 
        filed are missing;

         Almost 300 individuals, companies, or 
        associates have lobbied without being registered;

         More than 2,000 initial registrations were 
        filed after the allowable time frame; and

         In more than 2,000 instances, lobbyists never 
        filed the required termination documents at all.\9\
---------------------------------------------------------------------------
    \9\ The Center for Public Integrity, Industry of Influence Nets 
Almost $13 Billion: Shadowy Lobbyists Ignore Rules and Exploit 
Connections (Apr. 7, 2005).

    Further, under the LDA, the Secretary of the Senate and the 
Clerk of the House must notify in writing any lobbyist or 
lobbying firm of noncompliance with registration and reporting 
requirements, and they must also notify the U.S. Attorney for 
the District of Columbia of the noncompliance if the lobbyist 
or lobbying firm fails to respond within 60 days of its 
notification.\10\ It appears that until very recently, however, 
these cases of noncompliance were not being referred to the 
Department of Justice for enforcement.\11\ It is also clear 
that the enforcement actions that are actually being 
investigated by the Secretary or the Clerk do not match up with 
the extent of noncompliance, and it is entirely unknown whether 
enforcement actions are being effectively pursued by the 
Department of Justice.
---------------------------------------------------------------------------
    \10\ Id. See also, Connors, Complying with the Lobbying Disclosure 
Act of 1995, 45 Prac. Law. 15 (1999).
    \11\ In fact, it was only under increasing public scrutiny that the 
Secretary of the Senate last year indicated that her office decided to 
refer at least some matters of noncompliance to Justice. See, Is it 
Time for a Lobbying Law Upgrade?, the National Journal (Jan. 8, 2005). 
The number and nature of the cases referred remain confidential, and 
the Justice Department has a policy of not disclosing when, if or how 
any such matters are resolved. It is not clear whether enforcement 
actions pursued by the Secretary, the Clerk, or the Department of 
Justice match up with the extent of noncompliance. Id.
---------------------------------------------------------------------------

                     III. CONCERNS WITH LEGISLATION

A. The Current Broken Revolving Door Policy Remains Unchanged
    Under current law, former Members of Congress are required 
to wait one year from the time they leave office until they can 
personally make any lobbying contacts with their former 
colleagues. This is known as the ``cooling-off period'' and is 
designed to reduce a government official's ability to leverage 
networks and information gained while in public service for 
personal benefit or the benefit of clients.
    By extending the cooling-off period to two years, which is 
the same length of time as a full congressional term as the 
Democratic bill proposes, this would mean that a former Member 
would have to wait until the next term of Congress convenes 
before he or she could begin to personally lobby Members and 
staff. This type of restriction would effectively limit a 
former Member's ability to immediately cash in on the influence 
acquired while serving in Congress. Unfortunately, H..R. 4975 
does nothing to curb the revolving door.\12\
---------------------------------------------------------------------------
    \12\ Currently 43 percent of all retiring and former Members of 
Congress immediately become lobbyists and are able to lobby after one 
year regarding congressional decisions.
---------------------------------------------------------------------------
B. Privately-Sponsored Travel and Gifts are Still Allowed
    H.R. 4975 provides for the House Ethics Rules to recommend 
travel rules for Members by December 15, 2006, and sets the 
stage for establishing in future years an ineffective ``pre-
approval'' system by the House Ethics Committee for Members' 
privately-funded trips. This approach would not end the travel 
abuses that have increased in prominence over the last decade.
    While H.R. 4975 provides for a temporary suspension of 
privately-funded trips for Members, it does so in a way that 
raises deep concerns that these trips will be reinstated as 
soon as the 2006 congressional elections are over. Under this 
approach, the temporary suspension of privately-funded trips 
could be ended after the November elections without any direct 
vote occurring on ending the suspension or on adopting travel 
rules for future years. This could be done by simply 
incorporating changes in the travel rules into the full package 
of House rules submitted to the House for a single up-or-down 
vote by Members at the outset of the new Congress in January 
2007. The legislation also fails to prevent corporations from 
making their company planes available for Members' trips at 
deeply-discounted costs.
    In addition, H.R. 4975 does not ban the giving of gifts to 
Members and staff that are perceived by many as playing a role 
in influencing congressional decisions, and it does not close 
the huge loophole in the current gift rules that allows 
lobbyists, corporations, and others to spend $50,000, $100,000 
or more, to finance lavish parties at the party conventions to 
``honor'' a Member.
C. H.R. 4975 Does Not Close the Gap on Grassroots and Coalition 
        Lobbying
    Beyond traditional ``direct lobbying'' of officials by paid 
professional lobbyists, a major and growing amount of money is 
being consumed by grassroots lobbying, where the general public 
is encouraged to influence specific policymakers without 
limitation or scrutiny. In addition, corporations, unions and 
special interest groups will frequently form associations to 
lobby on their behalf. These associations can spend millions on 
direct lobbying as well as grassroots lobbying without clearly 
identifying the major interests that are financing the lobbying 
activities. For example, according to the non-partisan watchdog 
group, Public Citizen, the ``60 Plus Seniors Association'' 
claims to have had 225,000 contributing members in 2002. But a 
redacted Form 990 disclosure form shows that 91% of the 
association's total revenues came from a single, undisclosed 
source.
    Unfortunately, H.R. 4975 fails to expand the Lobbying 
Disclosure Act to include those paid grassroots lobbying 
activities that are directed at the general public (rather than 
at an organization's members, employees, officers, or 
shareholders), while creating an exception that would protect 
the privacy of unpaid citizen lobbyists. The only way to hold 
these ``stealth lobbying coalitions'' accountable is to include 
language that would make the constituent members of these lobby 
associations more visible by requiring disclosure of the 
organizational entities supporting these lobbying associations. 
H.R. 4975 does not cover this major loophole in the current law 
that would allow the lobbying activities of paid grassroots 
groups and coalitions whose primary purpose is to lobby on the 
specific issue to go unchecked.

               IV. DESCRIPTION OF DEMOCRATIC ALTERNATIVE

    On January 18, 2006, the Democratic Leadership introduced 
H.R. 4682, the Honest Leadership and Open Government Act, a 
comprehensive government reform plan that we believe will clean 
up and protect the government from the currently widespread 
culture of corruption and quid pro quo politics. As of April 
25, 2006, it had been cosponsored by 163 Members.
    The Honest Leadership and Open Government Act offers the 
following reforms:

         Bans gifts, including gifts of meals, 
        tickets, entertainment and travel, from lobbyists and 
        non-governmental organizations that retain or employ 
        lobbyists; prohibits lobbyists from funding, arranging, 
        planning, or participating in congressional travel.

         Prohibits Members from using corporate jets 
        for official travel at the cost of a first class ticket 
        rather than paying the full charter rate; requires 
        Members to disclose information about the flight in the 
        Congressional Record including the owner or lessee of 
        the aircraft; who else was on the flight; and the 
        reason a commercial airliner was not used.

         Makes it both a criminal offense and a 
        violation of the Rules of the House for Members to take 
        or withhold official action, or threaten to do so, with 
        the intent to influence private employment decisions on 
        the basis of party affiliation.

         Prohibits former members, executive branch 
        officials and senior staff from lobbying their former 
        colleagues for 2 years and requires Members and senior 
        staff to disclose outside job negotiations.

         Requires lobbying reports, with much more 
        information, to be filed on a quarterly basis (rather 
        than semi-annually) and in an electronic format, fully 
        searchable on the Internet; increases civil and 
        criminal penalties for lobbyists who violate the rules.

         Expands reporting to include paid grassroots 
        lobbying activities directed at the general public 
        (rather than at an organization's members), while 
        protecting the privacy of unpaid citizen lobbyists.

         Prevents secret ``back-door lobbying'' by 
        requiring members of lobbying coalitions to report 
        their involvement and requiring disclosure of the 
        organizations that provide financial support to 
        lobbying associations.

         Establishes a new office of public integrity 
        within the House of Representatives, and charges the 
        office with auditing and investigating compliance with 
        lobbying disclosure rules and, if necessary, referring 
        matters to the United States Attorney.

         Mandates public disclosure of which Members 
        sponsor earmarks and disclosure of whether Members have 
        a financial interest in the earmark; prohibits any 
        Member from offering or withholding an earmark to 
        influence how another Member votes.

    Unfortunately, the Majority failed to include these 
provisions in the base text of H.R. 4975.

                               CONCLUSION

    The recent round of lobbying scandals demonstrates that 
current mechanisms, from the congressional ethics process to 
campaign finance regulation to gift and travel restrictions, 
are simply inadequate to protect against corruption. Both 
members of the Majority and Minority have acknowledged that in 
order to respond to this problem it is necessary that we enact 
legislation that would effectively reform the lobbying process 
and begin to rebuild public confidence in Congress. H.R. 4975 
does not come close to meeting that test, and we dissent from 
its adoption.
Description of Amendments Offered by Democratic Members
    During the mark-up six (6) amendments were offered by 
Democratic members, including a bipartisan Manager's amendment 
that was offered by the Chairman and Ranking Member. The 
following section provides a brief description of each of these 
amendments:

1. Sensenbrenner/Conyers Manager's Amendment

    Description of Amendment: The amendment makes several 
improvements and necessary clarifications to the bill. The 
manager's amendment requires additional quarterly disclosures 
by lobbyists, including disclosures of the names of Federal 
candidates and office holders, their leadership PACs or 
political committees for whom fundraising events are hosted by 
lobbyists, and information regarding payment for events 
honoring Members. The amendment also provides for criminal 
penalties for knowing, willful, and corrupt violation of these 
provisions.
    Vote on Amendment: The amendment was adopted by voice vote.

2. Meehan Amendment

    Description of Amendment: The amendment requires disclosure 
of lobbying activities that involve direct contact with 
Congress by professional grassroots lobbying firms that are 
retained to spend money on media campaigns to support or oppose 
legislation. The requirements would not apply to grassroots 
organizations that mobilize their memberships to petition the 
Government.
    Vote on Amendment: The amendment was ruled not germane.

3. Meehan Amendment

    Description of Amendment: The amendment expands the current 
1-year waiting period before Members of Congress and senior 
Government employees can make lobbying contacts with Congress 
to 2 years.
    Vote on Amendment: The amendment was ruled not germane.

4. Van Hollen Amendment

    Description of Amendment: The amendment requires registered 
lobbyists to disclose information on any contributions they 
solicited and transferred to a candidate or political 
committee. Additionally, registered lobbyists who serve as the 
treasurer of the election committee of a candidate for a 
federal office or as treasurer or chairman of a political 
committee, would be required to disclose those affiliations to 
the Secretary of the Senate and the Clerk of the House.
    Vote on Amendment: The amendment was adopted by a vote of 
28-4. Ayes: Representatives Sensenbrenner, Hyde, Coble, Smith, 
Gallegly, Goodlatte, Chabot, Jenkins, Inglis, Green, Keller, 
Issa, Forbes, Conyers, Berman, Nadler, Scott, Watt, Lofgren, 
Jackson Lee, Waters, Meehan, Wexler, Weiner, Schiff, Sanchez, 
Van Hollen, Wasserman Schultz, Nays: Representatives 
Hostettler, King, Franks, Cannon.

5. Waters Amendment

    Description of Amendment: The amendment clarifies that 
lobbying contacts with Members of Congress and ``covered 
legislative branch officials,'' which would include their 
staff, be disclosed.
    Vote on Amendment: The amendment was adopted by voice vote.

6. Scott Amendment

    Description of Amendment: The amendment requires the GAO to 
study the employment contracts of lobbyists to determine the 
extent of contingent fee agreements and report such findings to 
the House Committee on the Judiciary.
    Vote on Amendment: The amendment was adopted by voice vote.

                                   John Conyers, Jr.
                                   Jerrold Nadler.
                                   Robert C. Scott.
                                   Melvin L. Watt.
                                   Zoe Lofgren.
                                   Sheila Jackson Lee.
                                   Martin T. Meehan.
                                   Robert Wexler.
                                   Anthony D. Weiner.
                                   Adam B. Schiff.
                                   Linda T. Sanchez.
                                   Chris Van Hollen.
                                   Debbie Wasserman Schultz.