Legislation passed by the House Wednesday would name all lobbying law violators for the first time.



In addition, the bill — sponsored by Rep. Mary Jo Kilroy (D-Ohio) — would set up a Justice Department taskforce to investigate cases referred to it by the House Clerk for potential violations of the Lobbying Disclosure Act (LDA).



“When Americans on Main Street try to cheat or break the law, there are repercussions; but for years, there was no way to hold lobbyists accountable for games they play with their disclosures,” Kilroy said in a statement Wednesday. “The Lobbying Disclosure Enhancement Act establishes a task force that will go after lobbyists who engage in shoddy reporting practices and hide behind ignorance of the law.”



Under current law, the lobbyists and firms in LDA cases are never disclosed to the public. If Kilroy’s bill becomes law, all of the lobbyists and firms referred to federal investigators would be named. 



Under Kilroy’s bill, the Justice task force would also study the feasibility of collecting funds from lobbyists to help with LDA enforcement. In addition, they task force may propose legislation to lawmakers on how to toughen up the lobbying law. 



Originally, the bill would have charged lobbyists new fees to improve enforcement of the law. Instead, the taskforce has been authorized to receive funding and will have to find it through the normal appropriations process. 



The original fee provision was removed because of concerns by the House Clerk on how the office would administer the new fee system, according to a Kilroy aide. 

The bill passed the House on a unanimous voice vote Wednesday. 



Lobbyists often run afoul of the LDA, filing late forms or simply not understanding the act’s requirements. According to the Senate Secretary, the office has referred 8,729 cases of potential LDA violations to the U.S. Attorney for the District of Columbia. 

House Republicans will try to use legislation by Ways and Means Chairman Sandy Levin (D-Mich.) that extends Build America Bonds to repeal the mandate requiring small businesses to file 1099 forms to the IRS for any purchase over $600.  

Citigroup agreed Thursday to pay a $75 million penalty to the Securities and Exchange Commission for misleading investors about its subprime mortgage holdings.  

The SEC also charged two Citi executives — former chief financial officer Gary L. Crittenden and former investor relations head Arthur Tildesley — for their roles in Citigroup's misleading statements in an SEC filing.

“We are pleased that we have reached agreement with the SEC to put this matter concerning certain 2007 disclosures behind us, and that the SEC is not charging Citi or any individual with intentional or reckless misconduct," according to a statement sent to The Hill by Citigroup. 

Crittenden agreed to pay $100,000 and Tildesley, who is currently the head of cross marketing at Citigroup, agreed to pay $80,000. 

"Even as late as fall 2007, as the mortgage market was rapidly deteriorating, Citigroup boasted of superior risk management skills in reducing its subprime exposure to approximately $13 billion," said Robert Khuzami, director of the SEC's Division of Enforcement in a statement. 

"In fact, billions more in CDO and other subprime exposure sat on its books undisclosed to investors," he said.  

The Federal Trade Commission issued a final rule Thursday that prohibits for-profit debt servicing companies to collect up-front fees that cost consumers millions every year. 

The rule, which will take effect Oct. 27, affects companies that sell debt relief services over the telephone might no longer charge a fee before they settle or reduce a customer’s debt.

"I applaud the FTC for adopting this new rule to protect consumers from the scourge of unscrupulous debt settlement companies," said Senate Commerce. Science and Transportation Chairman Jay Rockefeller (D-W.Va.) said in a statement. "From now on, debt settlement companies that take huge upfront fees or misrepresent the amount of money they can save consumers will be subject to substantial civil penalties."

Sen. Blanche Lincoln (D-Ark.) on Thursday urged quick action on fixing the estate tax, which is scheduled to return in about five months. 

"I think it's something that has to be done, and it should be done sooner rather than later," she told reporters.

The House is slated to vote on legislation later Thursday that encourages foreign investment in U.S. real estate by doubling the amount of foreign capital that can be invested in publicly-traded Real Estate Investment Trusts (REITs). 

The bill is sponsored by Rep. Joseph Crowley (D-N.Y.), who has argued his proposal will open revenue streams to real estate investments that continue to suffer in the current economic climate.  

Senate Majority Leader Harry Reid (D-Nev.) and Senate Minority Leader Mitch McConnell (R-Ky.) continued sparring over amendments.

Hilary Rosen, former chairwoman and CEO of the Recording Industry Association of America, is joining SKDKnickerbocker, according to a statement put out by the firm Thursday.

Rosen will be a managing director at the firm, where Anita Dunn is a principal. Dunn was part of President Obama’s inner circle during his 2008 campaign and recently served as White House communications director. 

“SKDKnickerbocker is uniquely placed to grow its public affairs practice both in Washington and in New York, and it’s a bonus to work with longtime friends and colleagues,” Rosen said in the statement.

Rosen was previously in charge of the Brunswick Group’s Washington office, a public relations firm. She also was political director of the Huffington Post during the 2008 election.  

The National Association of Manufacturers on Thursday urged House members to oppose legislation that increases taxes on U.S. multinational companies and is expected to be voted on later Thursday. 

Ironically, the bill — the Investing in American Jobs and Closing Tax loopholes Act of 2010 — was introduced as part of Democrats’ “Make it in America” agenda, a strategy that seeks to bolster the country’s manufacturing sector. 

But Dorothy Coleman, NAM’s Vice President of Tax and Domestic Economic Policy, said the bill would do her industry more harm than good.