
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC3537a]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
         CHAPTER 44--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
Sec. 3537a. Prohibition of advance disclosure of funding 
        decisions
        

(a) Prohibited actions

    During any selection process, no officer or employee of the 
Department of Housing and Urban Development shall knowingly disclose any 
covered selection information regarding such selection, directly or 
indirectly, to any person other than a person authorized by the 
Secretary to receive such information.

(b) Administrative remedies

    If the Secretary receives or obtains information providing a 
reasonable basis to believe that a violation of subsection (a) of this 
section has occurred, the Secretary shall--
        (1) in the case of a selection that has not been made, determine 
    whether to terminate the selection process or take other appropriate 
    actions; and
        (2) in the case of a selection that has been made, determine 
    whether to--
            (A) void or rescind the selection, subject to review and 
        determination on the record after opportunity for a hearing;
            (B) impose sanctions upon the violating applicant selected, 
        subject to review and determination on the record after 
        opportunity for a hearing;
            (C) permit the violating applicant selected to continue to 
        participate in the program; or
            (D) take any other actions that the Secretary considers 
        appropriate.

(c) Civil money penalties

                           (1) In general

        Whenever any employee of the Department knowingly and materially 
    violates the prohibition in subsection (a) of this section, the 
    Secretary may impose a civil money penalty on the employee in 
    accordance with the provisions of this subsection. This penalty 
    shall be in addition to any other available civil remedy or any 
    available criminal penalty and may be imposed whether or not the 
    Secretary takes other disciplinary actions.

                             (2) Amount

        The amount of the penalty, as determined by the Secretary, may 
    not exceed $10,000 for each violation.

                        (3) Agency procedures

        (A) Establishment

            The Secretary shall establish standards and procedures 
        governing the imposition of civil money penalties under this 
        subsection. The standards and procedures--
                (i) shall provide for the Secretary or other official of 
            the Department to make the determination to impose a penalty 
            or to use an administrative entity to make the 
            determination;
                (ii) shall provide for the imposition of a penalty only 
            after the employee has been given an opportunity for a 
            hearing on the record; and
                (iii) may provide for review of any determination or 
            order, or interlocutory ruling, arising from a hearing.

        (B) Final orders

            If no hearing is requested within 15 days of receipt of the 
        notice of opportunity for hearing, the imposition of the penalty 
        shall constitute a final and unappealable order. If the 
        Secretary reviews the determination or order, the Secretary may 
        affirm, modify, or reverse that determination or order. If the 
        Secretary does not review the determination or order within 90 
        days of the issuance of the determination or order, the 
        determination or order shall be final.

        (C) Factors in determining amount of penalty

            In determining the amount of a penalty under paragraph (2), 
        consideration shall be given to such factors as the gravity of 
        the offense, any history of prior disclosures of information on 
        pending funding decisions made after December 15, 1989, ability 
        to pay the penalty, injury to the public, benefits received, 
        deterrence of future violations, and such other factors as the 
        Secretary may determine in regulations to be appropriate.

        (D) Reviewability of imposition of a penalty

            The Secretary's determination or order imposing a penalty 
        under paragraph (1) shall not be subject to review, except as 
        provided in paragraph (4).

             (4) Judicial review of agency determination

        (A) In general

            After exhausting all administrative remedies established by 
        the Secretary under paragraph (3)(A), an employee against whom 
        the Secretary has imposed a civil money penalty under paragraph 
        (1) may obtain a review of the penalty and such ancillary issues 
        (such as any administrative sanctions under 24 C.F.R. part 25) 
        as may be addressed in the notice of determination to impose a 
        penalty under paragraph (3)(A)(i) in the appropriate court of 
        appeals of the United States, by filing in such court, within 20 
        days after the entry of such order or determination, a written 
        petition praying that the Secretary's order or determination be 
        modified or be set aside in whole or in part.

        (B) Objections not raised in hearing

            The court shall not consider any objection that was not 
        raised in the hearing conducted pursuant to paragraph (3)(A) 
        unless a demonstration is made of extraordinary circumstances 
        causing the failure to raise the objection. If any party 
        demonstrates to the satisfaction of the court that additional 
        evidence not presented at such hearing is material and that 
        there were reasonable grounds for the failure to present such 
        evidence at the hearing, the court shall remand the matter to 
        the Secretary for consideration of such additional evidence.

        (C) Scope of review

            The decisions, findings, and determinations of the Secretary 
        shall be reviewed pursuant to section 706 of title 5.

        (D) Order to pay penalty

            Notwithstanding any other provision of law, in any such 
        review, the court shall have the power to order payment of the 
        penalty imposed by the Secretary.

                    (5) Action to collect penalty

        If any employee fails to comply with the Secretary's 
    determination or order imposing a civil money penalty under 
    paragraph (1), after the determination or order is no longer subject 
    to review as provided by paragraphs (3)(A) and (4), the Secretary 
    may request the Attorney General of the United States to bring an 
    action in an appropriate United States district court to obtain a 
    monetary judgment against the employee and such other relief as may 
    be available. The monetary judgment may, in the court's discretion, 
    include the attorneys' fees and other expenses incurred by the 
    United States in connection with the action. In an action under this 
    subsection, the validity and appropriateness of the Secretary's 
    determination or order imposing the penalty shall not be subject to 
    review.

                     (6) Settlement by Secretary

        The Secretary may compromise, modify, or remit any civil money 
    penalty which may be, or has been, imposed under this subsection.

                      (7) Deposit of penalties

        The Secretary shall deposit all civil money penalties collected 
    under this subsection into miscellaneous receipts of the Treasury.

(d) Criminal penalties

    Whoever willfully violates subsection (a) of this section by making 
a disclosure prohibited by subsection (a) of this section to any 
applicant, or any officer, employee, representative, agent, or 
consultant of any applicant, shall be imprisoned not more than 5 years, 
or fined in accordance with title 18, or both.

(e) Definitions

    For purposes of this section:

                            (1) Applicant

        The term ``applicant'' means any applicant or candidate that is 
    being considered for receiving assistance.

                           (2) Assistance

        The term ``assistance'' means any grant, loan, subsidy, 
    guarantee, or other financial assistance under a program 
    administered by the Secretary that provides by statute, regulation, 
    or otherwise for the competitive distribution of such assistance. 
    The term does not include any mortgage insurance provided under a 
    program administered by the Secretary.

                  (3) Covered selection information

        The term ``covered selection information'' means--
            (A) any information that is contained in any application or 
        request for assistance, or any information regarding the 
        decision of the Secretary to make available assistance or other 
        information that is determined by the Secretary to be 
        information that is not generally available to the public (not 
        including program requirements and timing of the decision to 
        make assistance available); and
            (B) any information that is required by statute, regulation, 
        or order to be confidential.

                            (4) Knowingly

        The term ``knowingly'' means having actual knowledge of or 
    acting with deliberate ignorance of or reckless disregard for the 
    prohibitions under this section.

                            (5) Selection

        The term ``selection'' means the determination of which 
    applicants for assistance are to receive assistance under the 
    program.

                        (6) Selection process

        The term ``selection process'' means the period with respect to 
    a selection for assistance that begins with the development, 
    preparation, and issuance of a solicitation or request for 
    applications for the assistance and concludes with the selection of 
    recipients of assistance, and includes the evaluation of 
    applications.

(f) Regulations

    The Secretary shall issue such regulations as the Secretary deems 
appropriate to implement this section.

(g) Applicability

    This section shall apply only with respect to violations that occur 
on or after December, 15, 1989.

(Pub. L. 89-174, Sec. 12, as added Pub. L. 101-235, title I, Sec. 103, 
Dec. 15, 1989, 103 Stat. 1995.)
