[Senate Report 115-317]
[From the U.S. Government Publishing Office]
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.
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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).
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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]