1. The Ins and Outs of Lobbying for HRSA Grantees October 28, 2014 Presented by Stephanie Sievel, CPA Program Integrity Analyst Office of Federal Assistance Management Division of Financial Integrity

2. What is lobbying? Laws and Restrictions on lobbying U.S. Code on Lobbying 2 C.F.R. 200 References to lobbying for HRSA grantees HHS Grants Policy Statement SF-424 HRSA Application Guide Why is understanding lobbying important for grantees? Unallowable Costs What is required of grantees? Lobbying Certification Lobbying Disclosure Questions and Answers Overview

3. “any attempt by individuals or private interest groups to influence the decisions of government” – Encyclopedia Britannica “to conduct activities aimed at influencing public officials and especially members of a legislative body on legislation” – Merriam Webster Dictionary Dictionary Definitions - Lobbying

4. HHS Appropriations Act Section 503(b) “No part of any appropriation... shall be used to pay the salary or expenses of any grant or contract recipient, or agent acting for such recipient, related to any activity designed to influence the enactment of legislation, appropriations, regulation, administrative action, or Executive order proposed or pending before the Congress or any State government, State legislature or local legislature or legislative body, other than for normal and recognized executive-legislative relationships or participation by an agency or officer of a State, local or tribal government in policymaking and administrative processes within the executive branch of that government.” HHS Definitions - Lobbying

5. HHS Appropriations Act Section 503(c) “The prohibitions... shall include any activity to advocate or promote any proposed, pending or future Federal, State or local tax increase, or any proposed, pending, or future requirement or restriction on any legal consumer product, including its sale or marketing, including but not limited to the advocacy or promotion of gun control.” HHS Definitions - Lobbying

6. Direct Lobbying Direct contact with legislators through written or oral communications to support or oppose a legislative matter. Indirect Lobbying contact with a third party to urge them to contact legislators and either support or oppose a legislative matter. Direct / Indirect Lobbying

7. The appropriations rider at Section 503(b) prohibits any activity designed to influence enactment of legislation proposed or pending before Congress or any State or local legislature or legislative body. The appropriations rider at Section 503(b) also speaks to lobbying certain executive branch efforts. The appropriations riders prohibit any activity designed to influence enactment of regulation, administrative action, or Executive order proposed or pending before any State government. The appropriations rider at Section 503(c) prohibits any activity to advocate or promote any proposed, pending or future Federal, State or local tax increase, or any proposed, pending, or future requirement or restriction on any legal consumer product, including its sale or marketing, before any Federal, State or local government. Prohibition for Lobbying

8. Federal laws prohibit using Federal appropriations to influence Federal Officials in the grant award process. (31 U.S.C. § 1352) Federal appropriations may not “be expended by the recipient of a Federal contract, grant, loan or cooperative agreement to pay any person for influencing or attempting to influence an officer or employee of any agency, 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, the making of any Federal loan, the entering into of any cooperative agreement, or the extension, continuation, renewal, amendment or modification of any Federal contract, grant, loan or cooperative agreement.” 31 U.S.C. § 1352(a) Laws and Restrictions

9. Federal laws prohibits non-profit entities organized under (501)(c)(4) of the Internal Revenue Code that engage in lobbying activities from receiving Federal grants. (2 U.S.C. § 1611)

10. 2 C.F.R Section 200.450 Lobbying a)The cost of certain influencing activities associated with obtaining grants, contracts, cooperative agreements, or loans is an unallowable cost. b)Executive lobbying costs. Costs incurred in attempting to improperly influence either directly or indirectly, an employee or officer of the executive branch of the Federal government to give consideration or to act regarding a Federal award or a regulatory matter are unallowable. Improper influence means any influence that induces or tends to induce a Federal employee or officer to give consideration or to act regarding a Federal award or regulatory matter on any basis other than the merits of the matter. OMB Cost Principles

11. 2 C.F.R Section 200.450 Lobbying (continued) c)In addition to the above, the following restrictions are applicable to nonprofit organizations and IHEs: 1. Costs associated with the following activities are unallowable: i.Attempts to influence the outcomes of any Federal, state, or local election, referendum, initiative, or similar procedure, through in- kind or cash contributions, endorsements, publicity, or similar activity; ii.Establishing, administering, contributing to, or paying the expenses of a political party, campaign, political action committee, or other organization established for the purpose of influencing the outcomes of elections in the United States; OMB Cost Principles

12. 2 C.F.R Section 200.450 Lobbying (continued) iii.Any attempt to influence: a)The introduction of Federal or state legislation; b)The enactment or modification of any pending Federal or state legislation through communication with any member or employee of the Congress or state legislature (including efforts to influence state or local officials to engage in similar lobbying activity); c)The enactment or modification of any pending Federal or state legislation by preparing, distributing, or using publicity or propaganda, or by urging members of the general public, or any segment thereof, to contribute to or participate in any mass demonstration, march, rally, fund raising drive, lobbying campaign or letter writing or telephone campaign; d)Any government official or employee in connection with a decision to sign or veto enrolled legislation. OMB Cost Principles

13. 2 C.F.R Section 200.450 Lobbying (continued) iv.Legislative liaison activities, including attendance at legislative sessions or committee hearings, gathering information regarding legislation, and analyzing the effect of legislation, when such activities are carried on in support of or in knowing preparation for an effort to engage in unallowable lobbying. OMB Cost Principles

14. Lobbying Applicants for (and recipients of) Federal grants, cooperative agreements, contracts, and loans are prohibited by 31 U.S.C. 1352, “Limitation on use of appropriated funds to influence certain Federal contracting and financial transactions,” from using appropriated Federal funds to pay any person for influencing or attempting to influence any officer or employee of an agency, a member of Congress, an officer or employee of Congress, or an employee of a member of Congress with respect to the award, extension, continuation, renewal, amendment, or modification of any of these instruments. Grants Policy Statement on Lobbying was developed from the language included in 45 CFR Part 93.100(a). HHS Grants Policy Statement

15. Per the HHS Grants Policy Statement and the HRSA SF-424 Application Guide Generally unallowable: including costs of lobbying activities to influence the introduction, enactment, or modification of legislation by the U.S. Congress or a State legislature. Under certain circumstances, as provided in the applicable cost principles, costs associated with activities that might otherwise be considered “lobbying” that are directly related to the performance of a grant may be allowable. The recipient should obtain an advance understanding with the GMS if it intends to engage in these activities. Lobbying Costs

16. Clarification on the Grants Policy Statement – OMB Circulars and the Federal Acquisition Regulations prohibit reimbursement from federal funds of lobbying campaigns conducted by grantees and contractors that attempt to influence the introduction, enactment, modification, approval, or veto of any federal, state or local legislation, but exempt any activity authorized by Congress to be undertaken with funds from the grant, contract, or other agreement, or when providing technical and factual information related to the performance of a grant or contract when in response to a documented request from a legislative body.

17. 45 CFR Part 93.100 – Conditions on use of funds a)No appropriated funds may be expended by the recipient of a Federal contract, grant, loan, or cooperative agreement to pay 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 any of the following covered Federal actions: the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. b)Each person who requests or receives from an agency a Federal contract, grant, loan, or cooperative agreement shall file with that agency a certification, set forth in appendix A to this part, that the person has not made, and will not make, any payment prohibited by paragraph (a) of this section. Requirements for Grantees

18. 45 CFR Part 93.100 (Continued)– Conditions on use of funds c.Each person who requests or receives from an agency a Federal contract, grant, loan, or a cooperative agreement shall file with that agency a disclosure form, set forth in appendix B to this part, if such person has made or has agreed to make any payment using non- appropriated funds (to include profits from any covered Federal action), which would be prohibited under paragraph (a) of this section if paid for with appropriated funds. d.Each person who requests or receives from an agency a commitment providing for the United States to insure or guarantee a loan shall file with that agency a statement, set forth in appendix A to this part, whether that person has made or has agreed to make any payment to influence or attempt 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 that loan insurance or guarantee. Requirements for Grantees

19. 45 CFR Part 93.100 (Continued)– Conditions on use of funds e.Each person who requests or receives from an agency a commitment providing for the United States to insure or guarantee a loan shall file with that agency a disclosure form, set forth in appendix B to this part, if that person has made or has agreed to make any payment to influence or attempt 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 that loan insurance or guarantee. Requirements for Grantees

20. HHS requires annual lobbying disclosures (45 CFR 93.110(c)) Applicants for HHS grants with total costs expected to exceed $100,000 are required to certify that they have not made, and will not make, such a prohibited payment; will be responsible for reporting the use of non-appropriated funds for such purposes; and will include these requirements in consortium agreements, other subawards, and contracts under grants that will exceed $100,000 and will obtain necessary certifications from those consortium participants and contractors. Requirements for Grantees

21. Lobbying Certification Form from Grants.gov

22. Lobbying Disclosure Form SF-LLL Disclosure of Lobbying Activities Form

23. What is lobbying? References to lobbying for HRSA grantees U.S. Code on Lobbying 2 C.F.R. 200 HHS Grants Policy Statement SF-424 HRSA Application Guide What is required of grantees? Lobbying Certification and Disclosure Questions and Answers Lobbying Costs are Unallowable! Recap

24. Questions? Questions and Answers

25. Resources Lobbying Certification and Disclosure of Lobbying Form SF-LLL http://www.state.gov/documents/organization/149465.pdf 2 CFR Part 200 http://www.gpo.gov/fdsys/pkg/FR-2013-12-26/pdf/2013-30465.pdf HRSA SF 424 Application Guide http://www.hrsa.gov/grants/apply/applicationguide/sf424guide.pdf

26. Contact Information For any general questions related to lobbying or this webcast please email: Granteelobbying@hrsa.gov

27. Stephanie Sievel, CPA Program Integrity Analyst 150 S. Independence Mall West, Suit 1172 Philadelphia, PA 19106-3499 ssievel@hrsa.gov 215-861-4392 United States Department of Health and Human Services Health Resources and Services Administration Office of Federal Assistance Management Division of Financial Integrity Presenter Information

28. Jason Mastrangelo Audit Resolution Team Lead 5600 Fishers Lane, Parklawn Building Rockville, MD 20857 jmastrangelo@hrsa.gov 301-443-3626 United States Department of Health and Human Services Health Resources and Services Administration Office of Federal Assistance Management Division of Financial Integrity