TREASURY DIRECTIVE 32-12

Date: September 1, 1999

Sunset Review: September 1, 2003

SUBJECT: Restrictions on Lobbying for Federal Grants, Cooperative Agreements, Loans, and Commitments to Insure or Guarantee a Loan

1. PURPOSE. This directive establishes policy, procedures and responsibilities for implementing Office of Management and Budget (OMB) guidance on restrictions on lobbying for Federal grants, cooperative agreements, loans, and commitments to insure or guarantee a loan.

2. SCOPE. This directive applies to all bureaus, Departmental Offices (DO), the Office of Inspector General (IG) and the Treasury Inspector General for Tax Administration.

3. POLICY. It is the policy of the Department of the Treasury that persons, including those who represent corporations, partnerships, and other entities, who request or receive a covered Federal grant, cooperative agreement, loan or commitment to insure or guarantee a loan (see paragraph 6.a., below) must file the certification and disclosure forms on lobbying activities required by law

4. BACKGROUND.

a. 31 U.S.C. § 1352 prohibits recipients of Federal contracts, grants, loans, or cooperative agreements from using appropriated funds to influence, or attempt to influence, Government employees, and members of Congress or their staffs. The law specifies penalties for non-compliance.

b. Treasury has codified OMB's guidance on lobbying restrictions at 31 C.F.R part 21.

c. Treasury procedures on restrictions on lobbying for contracts are covered in Department of the Treasury Acquisition Regulation, subpart 1003.8, "Limitation on the Payment of Funds to Influence Federal Transactions."

5. DEFINITIONS.

a. Cooperative Agreement. A legal instrument between a bureau or office and a person to work together for a common purpose. Substantial involvement is expected between the bureau or office and the person.

b. Direct Loan. This occurs when a bureau or office disburses funds to a borrower and enters into a contract with the borrower for repayment.

c. Grant. An award of financial assistance in the form of money, or property in lieu of money, by a bureau or office, or a direct appropriation made by law to any person.

d. Guaranteed or Insured Loans. This occurs when a third party lender makes a direct loan to a borrower; the bureau or office agrees to repay the lender all or a portion of the loan in case the borrower defaults.

e. Person. An individual, corporation, company, association, authority, firm, partnership, society, and State or local government, regardless of whether such entity is operated for profit or not for profit.

6. PROCEDURES.

a. The certification and disclosure requirements in 31 U.S.C. § 1352 apply to:

(1) A Federal grant or cooperative agreement from Treasury in excess of $100,000.

(2) A Federal loan or commitment to insure or guarantee a loan from Treasury in excess of $150,000.

b. A person who requests or receives a covered Federal grant, cooperative agreement, or loan from Treasury must certify (see 31 C.F.R. part 21 Appendix A) that the person has not made and will not make any payment prohibited by 31 U.S.C. § 1352. Such a person must file SF LLL, "Disclosure of Lobbying Activities" (see 31 C.F.R. part 21 Appendix B) if that person has made or has agreed to make any payment from nonappropriated funds which would be prohibited under 31 U.S.C. § 1352 if paid for with appropriated funds.

c. A person who requests or receives a covered commitment providing for the United States to insure or guarantee a loan must certify (see 31 C.F.R. part 21 Appendix A) as to whether the person has made or agreed to make any payment prohibited by 31 U.S.C. § 1352. Such a person must file SF LLL, "Disclosure of Lobbying Activities" (see 31 C.F.R. part 21 Appendix B) if that person has made or has agreed to make any payment to influence or attempt to influence a Government officer or employee in connection with that loan insurance or guarantee.

d. The appropriate certification and, if required, disclosure form shall be filed with each submission that initiates agency consideration for, and upon award of, a grant, cooperative agreement, loan, or commitment to insure or guarantee a loan described above. Certifications and disclosure forms shall be filed with the appropriate bureau or office.

7. RESPONSIBILITIES.

a. The Deputy Assistant Secretary (Administration), Heads of Bureaus, the Inspector General and the Treasury Inspector General for Tax Administration as it relates to their respective bureaus and offices, shall ensure that each person who requests or receives a Federal grant, cooperative agreement, loan, or commitment to insure or guarantee a loan, is required to file the required certification and, if required, disclosure forms with the appropriate bureau or office.

b. Treasury's Director of Procurement will issue procedures to bureaus concerning lobbying for contracts.

 8. AUTHORITIES.

a. 31 U.S.C. § 1352, "Limitation on Use of Appropriated Funds to Influence Certain Federal Contracting and Financial Transactions."

b. OMB Interim Final Rule, 55 Fed. Reg. 6736 (1990).

c. 31 CFR Part 21, "New Restrictions on Lobbying."

9. REFERENCES.

a. Department of the Treasury Acquisition Regulation, subpart 1003.8, "Limitations on the Payment of Funds to Influence Federal Transactions."

10. SUPPLY OF FORMS. Copies of the "Certification Regarding Lobbying" and OMB Standard Form LLL, "Disclosure of Lobbying Activities" are available from the Office of Treasury's Deputy Chief Financial Officer.

11. CANCELLATION. Treasury Directive 32-12, "Restrictions on Lobbying for Treasury Grants, Loans and Cooperative Agreements", dated January 6, 1992, is superseded.

12. OFFICE OF PRIMARY INTEREST. Office of Accounting and Internal Control, Office of the Deputy Chief Financial Officer, Office of the Assistant Secretary for Management and Chief Financial Officer.