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 						  Calendar No. 552

115th Congress}                                            { Report
                                 SENATE
  2d Session  }                                            { 115-317

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

                     JUSTICE AGAINST CORRUPTION ON
                          K STREET ACT OF 2018

                               __________

                              R E P O R T

                                 OF THE

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              TO ACCOMPANY

                                S. 2896

    TO REQUIRE DISCLOSURE BY LOBBYISTS OF CONVICTIONS FOR BRIBERY, 
    EXTORTION, EMBEZZLEMENT, ILLEGAL KICKBACKS, TAX EVASION, FRAUD, 
   CONFLICTS OF INTEREST, MAKING FALSE STATEMENTS, PERJURY, OR MONEY 
                               LAUNDERING


[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]


                August 15, 2018.--Ordered to be printed
        
        
        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                    RON JOHNSON, Wisconsin, Chairman
JOHN McCAIN, Arizona                 CLAIRE McCASKILL, Missouri
ROB PORTMAN, Ohio                    THOMAS R. CARPER, Delaware
RAND PAUL, Kentucky                  HEIDI HEITKAMP, North Dakota
JAMES LANKFORD, Oklahoma             GARY C. PETERS, Michigan
MICHAEL B. ENZI, Wyoming             MAGGIE HASSAN, New Hampshire
JOHN HOEVEN, North Dakota            KAMALA D. HARRIS, California
STEVE DAINES, Montana                DOUG JONES, Alabama

                  Christopher R. Hixon, Staff Director
                Gabrielle D'Adamo Singer, Chief Counsel
       Patrick J. Bailey, Chief Counsel for Governmental Affairs
               Margaret E. Daum, Minority Staff Director
       Charles A. Moskowitz, Minority Senior Legislative Counsel
                 Katherine C. Sybenga, Minority Counsel
                     Laura W. Kilbride, Chief Clerk





 						  Calendar No. 552

115th Congress}                                            { Report
                                 SENATE
  2d Session  }                                            { 115-317

======================================================================
 
           JUSTICE AGAINST CORRUPTION ON K STREET ACT OF 2018

                                _______
                                

                August 15, 2018.--Ordered to be printed

                                _______
                                

 Mr. Johnson, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                              R E P O R T

                         [To accompany S. 2896]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 2896) to require 
disclosure by lobbyists of convictions for bribery, extortion, 
embezzlement, illegal kickbacks, tax evasion, fraud, conflicts 
of interest, making false statements, perjury or money 
laundering, having considered the same, reports favorably 
thereon without amendment and recommends that the bill do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background and Need for the Legislation..........................2
III. Legislative History..............................................2
 IV. Section-by-Section Analysis......................................2
  V. Evaluation of Regulatory Impact..................................3
 VI. Congressional Budget Office Cost Estimate........................3
VII. Changes in Existing Law Made by the Bill, as Reported............4

                         I. Purpose and Summary

    S. 2896, the Justice Against Corruption on K Street Act of 
2018, or the ``JACK Act'', seeks to provide greater 
transparency and accountability in lobbying disclosures related 
to the commission of certain crimes of character. The bill 
requires lobbyists to publicly disclose any convictions for 
bribery, extortion, embezzlement, illegal kickbacks, tax 
evasion, fraud, conflicts of interest, making false statements, 
perjury, or money laundering.

                II. Background and Need for Legislation

    In 1995, Congress passed the Lobbying Disclosure Act (LDA), 
which sought to increase accountability for Federal lobbying 
practices in the United States.\1\ The LDA requires lobbyists 
to register with both the Clerk of the U.S. House of 
Representatives and the Secretary of the U.S. Senate within 45 
days of making a lobbying contact or becoming employed to make 
a lobbying contact.\2\
---------------------------------------------------------------------------
    \1\Lobbying Disclosure Act, 2 U.S.C. Sec.  1601 (1995).
    \2\Id. at Sec.  1603.
---------------------------------------------------------------------------
    In 2007, following the conviction of lobbyist Jack Abramoff 
for trading expensive gifts to members of Congress and staff in 
exchange for political favors, Congress enacted new 
requirements for lobbyists in the Honest Leadership and Open 
Government Act (HLOGA).\3\
---------------------------------------------------------------------------
    \3\Honest Leadership and Open Government Act, Pub. L. No. 110-81 
(2007).
---------------------------------------------------------------------------
    In 2017, Mr. Abramoff again registered as a lobbyist, 
working on behalf of the Republic of Congo.\4\ Under current 
law, there is no requirement that Abramoff, or any other 
lobbyist, include information regarding prior criminal 
convictions in his or her lobbying disclosures.
---------------------------------------------------------------------------
    \4\Ginger Gibson, Convicted Felon Jack Abramoff Registers to Return 
to Lobbying, Reuters (June 23, 2017 5:31 PM), https://www.reuters.com/
article/us-usa-politics-abramoff/convicted-felon-jack-abramoff-
registers-to-return-to-lobbying-idUSKBN19E2JN.
---------------------------------------------------------------------------
    S. 2896 would require lobbyists with convictions for 
bribery, extortion, embezzlement, and other crimes of character 
to disclose that criminal history in their lobbying 
disclosures.

                        III. Legislative History

    Senator John Kennedy (R-LA) introduced S. 2896 on May 22, 
2018, with Senator Joe Manchin (D-WV). The bill was referred to 
the Committee on Homeland Security and Governmental Affairs.
    The Committee considered S. 2896 at a June 13, 2018, 
business meeting. The Committee ordered S. 2896 reported 
favorably en bloc by voice vote. Senators present for the vote 
were Johnson, Portman, Lankford, Enzi, McCaskill, Carper, 
Peters, Hassan, Harris, and Jones.

        IV. Section-by-Section Analysis of the Bill, as Reported


Section 1. Short title

    This section establishes the short title of the bill as the 
``Justice Against Corruption on K Street Act of 2018'' or the 
``JACK Act.''

Section 2. Disclosure of corrupt malpractice by lobbyists

    This section amends the LDA to require that any new 
registrant convicted in a Federal or state court of an offense 
involving bribery, extortion, embezzlement, an illegal 
kickback, tax evasion, fraud, a conflict of interest, making a 
false statement, perjury, or money laundering to include in his 
or her lobbying registration the date and a description of such 
offense. It also requires that existing registrants include the 
same information in their quarterly reporting.

                   V. Evaluation of Regulatory Impact

    Pursuant to the requirements of paragraph 11(b) of rule 
XXVI of the Standing Rules of the Senate, the Committee has 
considered the regulatory impact of this bill and determined 
that the bill will have no regulatory impact within the meaning 
of the rules. The Committee agrees with the Congressional 
Budget Office's statement that the bill contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act and would impose no costs on 
state, local, or tribal governments.

             VI. Congressional Budget Office Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 27, 2018.
Hon. Ron Johnson,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 2896, the JACK Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                                Keith Hall,
                                                          Director.
    Enclosure.

S. 2896--JACK Act

    S. 2896 would amend the Lobbying Disclosure Act of 1995 to 
require registered lobbyists to file new reports with the 
Secretary of the U.S. Senate and Clerk of the U.S. House of 
Representatives. The reports would provide information on any 
convictions for bribery, extortion, embezzlement, illegal 
kickbacks, tax evasion, fraud, conflicts of interest, making 
false statements, perjury, or money laundering. Subject to the 
availability of appropriated funds, CBO estimates that 
implementing the bill would increase administrative costs of 
the House of Representatives and the Senate by less than 
$500,000 annually.
    Enacting S. 2896 could increase civil penalties for failing 
to file accurate reports. Penalties are recorded in the budget 
as revenues; therefore, pay-as-you-go procedures apply. 
However, CBO estimates that any increase in revenues would not 
be significant because we expect few lobbyists would be 
affected. Enacting S. 2896 would not affect direct spending.
    CBO estimates that enacting S. 2896 would not increase net 
direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2029.
    S. 2896 would impose a private-sector mandate as defined in 
the Unfunded Mandates Reform Act (UMRA) by requiring 
registrants under the Lobbying Disclosure Act to disclose 
information about convictions for certain crimes. CBO estimates 
that the cost of including this additional information would be 
minimal and would not exceed the threshold established in UMRA 
for private-sector mandates ($160 million in 2018, adjusted 
annually for inflation).
    The bill contains no intergovernmental mandates as defined 
in UMRA.
    The CBO staff contacts for this estimate are Matthew 
Pickford (for federal costs) and Andrew Laughlin (for 
mandates). The estimate was reviewed by Theresa Gullo, 
Assistant Director for Budget Analysis.

       VII. Changes in Existing Law Made by the Bill, as Reported

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as reported, are shown as follows: (existing law 
proposed to be omitted is enclosed in brackets, new matter is 
printed in italic, and existing law in which no change is 
proposed is shown in roman):

UNITED STATES CODE

           *       *       *       *       *       *       *


TITLE 2--THE CONGRESS

           *       *       *       *       *       *       *


CHAPTER 26--DISCLOSURE OF LOBBYING ACTIVITIES

           *       *       *       *       *       *       *



The Lobbying Disclosure Act of 1995

           *       *       *       *       *       *       *



SEC. 1603. REGISTRATION OF LOBBYISTS.

    (a) * * *
    (b) * * *
          (1) * * *

           *       *       *       *       *       *       *

          (5) * * *
                  (A) * * *
                  (B) to the extent practicable, specific 
                issues that have (as of the date of 
                registration) already been addressed or are 
                likely to be addressed in lobbying activities; 
                [and]
          (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 20 years before the date on which the employee 
        first acted as a lobbyist on behalf of the client, the 
        position in which such employee served[.]; and
          (7) for any registrant who was convicted in a Federal 
        or State court of an offense involving bribery, 
        extortion, embezzlement, an illegal kickback, tax 
        evasion, fraud, a conflict of interest, making a false 
        statement, perjury, or money laundering, the date of 
        the conviction and a description of the offense.

           *       *       *       *       *       *       *


SEC. 1604. REPORTS BY REGISTERED LOBBYISTS.

    (a) * * *
    (b) * * *
          (1) * * *

           *       *       *       *       *       *       *

          (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 quarterly period; [and]
          (5) for each client, immediately after listing the 
        client, an identification of whether the client is a 
        State or local government or a department, agency, 
        special purpose district, or other instrumentality 
        controlled by one or more State or local governments. 
        [.]; and
          (6) for any registrant who was convicted in a Federal 
        or State court of an offense involving bribery, 
        extortion, embezzlement, an illegal kickback, tax 
        evasion, fraud, a conflict of interest, making a false 
        statement, perjury, or money laundering, the date of 
        the conviction and a description of the offense.

           *       *       *       *       *       *       *


                                  [all]