PRIA, Government Policy, Made Personal

Summary

The Secretary of State must set rules that make people report and keep records about political contributions, gifts, commissions, or fees paid, promised, or agreed to be paid to try to win or promote sales of defense items or services. This rule covers three kinds of sales: government-to-government sales under sections 2762 or 2769, commercial sales licensed under section 2778, and exports under the treaty reference in section 2778(j)(1)(C)(i). The rules will say what payments to report, when and how to report them, require the names of sales agents and others who got payments, and require keeping records. The President can also make rules that ban, limit, or set conditions on these payments. Such payments cannot be charged to a procurement contract under sections 2762 or 2769 unless the amount is reasonable, can properly be charged to that contract, and was not paid to someone who used improper influence. Improper influence means trying to make a foreign buyer act for reasons other than the same kind of merit used in comparable U.S. procurements. Congress and authorized federal agencies may ask for and get the reported information and records, under the same access rules those agencies already have.

Title 22, §2779

Foreign Relations and Intercourse, Source: USLM XML via OLRC

(a)Adequate and timely reports to Secretary of State; maintenance of records

In accordance with such regulations as he may prescribe, the Secretary of State shall require adequate and timely reporting on political contributions, gifts, commissions and fees paid, or offered or agreed to be paid, by any person in connection with—

(1)sales of defense articles or defense services under section 2762 of this title, or of design and construction services under section 2769 of this title;

(2)commercial sales of defense articles or defense services licensed or approved under section 2778 of this title; or

(3)exports of defense articles or defense services pursuant to a treaty referenced in section 2778(j)(1)(C)(i) of this title;

to or for the armed forces of a foreign country or international organization in order to solicit, promote, or otherwise to secure the conclusion of such sales. Such regulations shall specify the amounts and the kinds of payments, offers, and agreements to be reported, and the form and timing of reports, and shall require reports on the names of sales agents and other persons receiving such payments. The Secretary of State shall by regulation require such recordkeeping as he determines is necessary.

(b)Presidential regulation

The President may, by regulation, prohibit, limit, or prescribe conditions with respect to such contributions, gifts, commissions, and fees as he determines will be in furtherance of the purposes of this chapter.

(c)Allocation to contract; improper influence

No such contribution, gift, commission, or fee may be included, in whole or in part, in the amount paid under any procurement contract entered into under section 2762 or section 2769 of this title, unless the amount thereof is reasonable, allocable to such contract, and not made to a person who has solicited, promoted, or otherwise secured such sale, or has held himself out as being able to do so, through improper influence. For the purposes of this section, “improper influence” means influence, direct or indirect, which induces or attempts to induce consideration or action by any employee or officer of a purchasing foreign government or international organization with respect to such purchase on any basis other than such consideration of merit as are involved in comparable United States procurements.

(d)Availability of records to Congress and Federal agencies

(1)All information reported to the Secretary of State and all records maintained by any person pursuant to regulations prescribed under this section shall be available, upon request, to any standing committee of the Congress or any subcommittee thereof and to any agency of the United States Government authorized by law to have access to the books and records of the person required to submit reports or to maintain records under this section.

(2)Access by an agency of the United States Government to records maintained under this section shall be on the same terms and conditions which govern the access by such agency to the books and records of the person concerned.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in subsec. (b), was in the original “this Act”, meaning Pub. L. 90–629, Oct. 22, 1968, 82 Stat. 1321, which is classified principally to this chapter. For complete classification of this Act to the Code, see

Short Title

note set out under section 2751 of this title and Tables.

Amendments

2010—Subsec. (a)(3). Pub. L. 111–266, which directed amendment of subsec. (a) by adding par. (3) at the end, was executed by adding par. (3) after par. (2) to reflect the probable intent of Congress. 1980—Subsec. (a)(1). Pub. L. 96–533, § 105(e)(2)(A), inserted reference to sales of design and

Construction

services under section 2769 of this title. Subsec. (c). Pub. L. 96–533, § 105(e)(2)(B), inserted reference to section 2769 of this title.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective 60 days after June 30, 1976, see section 604(c) of Pub. L. 94–329, set out as note under section 2776 of this title.

Executive Documents

Delegation of Functions For delegation of functions of the President under subsec. (b) of this section, with certain conditions, see section 1(o) of Ex. Ord. No. 13637, Mar. 8, 2013, 78 F.R. 16130, set out as a note under section 2751 of this title. Functions were previously delegated by Ex. Ord. No. 11958, which was formerly set out as a note under section 2751 of this title and was revoked, subject to a

Savings Provision

, by section 4 of Ex. Ord. No. 13637.

§2779 Fees of Military Sales Agents