1940-Q Instruction

RD Instruction 1940-Q

PART 1940 - GENERAL
Subpart Q - Restrictions on Lobbying
§1940.801

Purpose.

This subpart implements section 319 of Public Law 101-121, which
prohibits applicants and recipients of Federal contracts, grants and loans
from using appropriated funds for lobbying the Federal Government in
connection with a specific award. Section 319 also requires that each person
who requests or receives a Federal contract, grant, loan, or a Federal
commitment to guarantee a loan, must disclose the expenditure of any funds,
other than appropriated funds, for lobbying activities. This subpart provides
administrative guidance regarding the information contained in U.S. Department
of Agriculture's (USDA) 7 CFR part 3018 and Departmental Regulation (DR)
2400-5, which are attached as Exhibits A and B of this subpart. This subpart
is inapplicable to Farm Service Agency, Farm Loan Programs. (Revised
01-09-08, PN 417.)
§1940.802

[Reserved] (Revised 07-31-96, PN 264.)

§1940.803

Definitions.

In addition to the following, refer to the definitions in §3018.105 of
Exhibit A of this subpart.
Appropriated funds. Federal funds received from any Federal agency for
a purpose or purposes authorized by such agency.
Communication. Includes written, oral, electronic or other means of
communications.
Receiving office. The State, District, or County Office that is the
primary office responsible for processing an application.
§§1940.804 - 1940.809

[Reserved]

_____________________________________________________________________________
DISTRIBUTION: WSAL
Loan and Grant Making
General
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§1940.810

Certification for contracts, grants and loans.

(a) The Certification for Contracts, Grants and Loans, contained in
Exhibit A-1 of this subpart, must be completed at the time an
application or bid proposal is submitted by a person requesting a
contract or grant exceeding $100,000, or a loan exceeding $150,000.
(b) Any person who requests or receives a contract, subcontract or
subgrant exceeding $100,000 at any tier under a covered contract, grant
or loan, must complete and submit a certification to the next higher
tier.
(c) The certification completed by a person referred to in paragraph
(a) of this section will be collected by the receiving office and filed
in the case folder.
(d) Recipients of contracts, grants or loans, or their subs, who
receive certifications from lower tier applicants or recipients shall
file the certifications with documents related to the subaward, and
shall make them available for Agency examination upon request.
(e) Refer to §3018.110 of Exhibit A of this subpart for additional
information.
§1940.811

Statement for loan guarantees.

(a) The Statement for Loan Guarantees, contained in Exhibit A-2 of this
subpart, must be completed by the lender at the time an application is
filed for each loan exceeding $150,000.
(b) The statement will be collected by the receiving office and filed
in the case folder.
(c) Refer to §3018.110 of Exhibit A of this subpart for additional
information.
§1940.812

Disclosure of lobbying activities.

(a) Standard Form (SF)
is part of Exhibit A of
requesting or receiving
commitment to guarantee

LLL, "Disclosure of Lobbying Activities," which
this subpart, must be completed by a person
a Agency contract, grant, loan, or a Agency
a loan, and who meets the following conditions:

(1) the award amount exceeds the threshold stated in §1940.810(a)
or §1940.811(a) of this subpart; and

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§1940.812 (a) (Con.)

RD Instruction 1940-Q

(2) the person has made or has agreed to make any payment, using
funds other than appropriated funds, to influence or attempt to
influence a decision in connection with that specific award.
(b) SF-LLL must also be completed by any person who requests or
receives a contract, subcontract or subgrant at any tier under a covered
contract, grant or loan, and who meets the following conditions:
(1)

the award amount exceeds $100,000; and

(2)
the person has made or has agreed to make any payment, using
funds other than appropriated funds, to influence or attempt to
influence a decision in connection with that specific award.
(c) Each person who meets all conditions of paragraph (a) or (b) of
this section will submit a disclosure form at the time of the
application or bid proposal, and, at the end of each calendar quarter in
which there occurs an event as specified in §3018.110 (c) of Exhibit A
of this subpart.
(d)
All disclosure forms, including quarterly updates, will be
collected in the receiving office. The forms completed by persons under
paragraph (a) of this section will be submitted directly to the
receiving office. Forms completed by persons under paragraph (b) of
this section will be submitted to the next higher tier. They will then
be forwarded from tier to tier until they reach the receiving office.
The original completed form will be retained in the case folder. One
copy will be forwarded to the State Director, and a second copy will be
sent immediately to the following address:
USDA, Office of Operations
Procurement Division
Policy and Review Team
14th and Independence Ave., S.W.
Room 1575-S
Washington, D.C. 20250
(e) The information provided on this form cannot be used by Rural
Development as a basis for denying Federal assistance.
(f)

Refer to Exhibit B of this subpart for additional information.

§§1940.813 - 1940.819

[Reserved]

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§1940.820

Exceptions.

(a) The prohibition on the use of appropriated funds and disclosure
requirements governing the use of funds, other than appropriated funds,
do not apply to certain activities. These activities are described in
Subparts B and C of Exhibit A of this subpart.
(b) Section 319 of P.L. 101-121 imposes no restrictions on the use of
any funds for general lobbying; i.e., attempts to influence Congress or
the Executive Branch with respect to a program, rather than a specific
award. Such general lobbying need not be disclosed on SF LLL. However,
Section 319 does not authorize lobbying otherwise restricted or
prohibited by law.
§1940.821

Examples.

Several examples of activities addressed by this Instruction are
contained in Exhibit C of this subpart. They are to be used for guidance
purposes only.
§§1940.822 - 1940.839
§1940.840

[Reserved]

Penalties and enforcement.

(a) Failure to comply with the provisions of this subpart may result in civil
penalties, as described in §3018.400 of Exhibit A of this subpart.
(b) The Under Secretary, Rural Development, shall take such actions as are
necessary to ensure that the provisions in Section 319 of P.L. 101-121 are
vigorously implemented and enforced.
§§1940.841 - 1940.850

Attachments:

[Reserved]

Exhibits A, A-1, A-2, B, and C

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1940-Q Exhibit A not automated please see manual

RD Instruction 1940-Q
Exhibit A-1

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

______________________________________
(name)

______________________________________
(title)

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(date)

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Exhibit A-2

STATEMENT FOR LOAN GUARANTEES
The undersigned states, to the best of his or her knowledge and belief,
that:
If any funds have been or will be paid to any person for influencing or
attempting to influence an officer or employee of any agency, a Member of
Congress, an officer or employee of Congress, or an employee of a Member of
Congress in connection with this commitment providing for the United States to
guarantee a loan, the undersigned shall complete and submit Standard Form LLL, "Disclosure of Lobbying Activities," in accordance with its instructions.
Submission of this statement is a prerequisite for making or entering into
this transaction imposed by section 1352, title 31, U.S. Code. Any person who
fails to file the required statement shall be subject to a civil penalty of
not less than $10,000 and not more than $100,000 for each such failure.

______________________________________
(name)

_________________________________
(organization)

______________________________________
(title)

_________________________________
(date)

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1940-Q Exhibit B not automated see manual

RD Instruction 1940-Q
Exhibit C

EXAMPLES OF ACTIVITIES ADDRESSED BY RD INSTRUCTION 1940-Q

1.
[A] is an applicant
Housing Loan. [B] is an
design studies. [A] has
Office to discuss design

for a $1,000,000 Rural Development Rural Rental
architectural firm retained by [A] for preliminary
requested [B] to visit the Rural Development State
options for use in developing an application.

This technical activity is specifically authorized for use of
appropriated funds and does not need to be reported by [A] as a
lobbying activity. However, if the visit includes any communication
with Rural Development officials on application issues that are not
architecturally related, the activity is not exempt from the law.

2.
[C] will be submitting a loan application in the amount of $149,000 for a
community facility. [C] has paid, with its own funds, [D], a consultant, to
visit the National Office to help expedite the application when it is
received.
[C] will not be required to submit a certification nor a disclosure
form because the loan amount is less than $150,000.

3.
[E] is borrowing $2,000,000 from Rural Development to construct a
hospital. The construction contract with [F] is in the amount of $1,700,000.
[F] has a mechanical subcontract with [G] in the amount of $150,000.
[E] must submit a certification to Rural Development at the time of the
application. [F] must submit its certificate with the proposed bid
to [E]. [G], having a subcontract of more than $100,000, must submit
a certificate to [F]. [E] and [F] will retain the certifications
they received from the lower tier awardees.

4.
[H] is a lender who has requested an 80 percent guarantee on a $175,000
guaranteed loan for applicant [I]. [I] submitted the loan application without
a signed statement from [H] because the guaranteed portion of the loan (80% of
$175,000) was less than $150,000.
The amount that determines whether or not a statement is required
from the lender is the total guaranteed loan (amount obligated =
$175,000); therefore, the application should have included a
statement from [H]. [I] is not required to sign a certification.

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Exhibit C
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5.
[J] is a long time Rural Development borrower who submitted a Form SF LLL
because she paid [K], a lobbyist, with her own funds, to visit Washington in
an attempt to persuade a Member of Congress to increase the Farmer Programs
budget for the next fiscal year.
The disclosure form is not required when the lobbying activity
involves a program and not a specific application or award.

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