((a)) ** Litigation; interference with independence of State judiciary; funding of State judicial system activities other than pursuant to this chapter; legislative lobbying** The Institute shall not—

((1)) participate in litigation unless the Institute or a recipient of the Institute is a party, and shall not participate on behalf of any client other than itself;

((2)) interfere with the independent nature of any State judicial system or allow financial assistance to be used for the funding of regular judicial and administrative activities of any State judicial system other than pursuant to the terms of any grant, cooperative agreement, or contract with the Institute, consistent with the requirements of this chapter; or

((3)) undertake to influence the passage or defeat of any legislation by the Congress of the United States or by any State or local legislative body, except that personnel of the Institute may testify or make other appropriate communication—

((A)) when formally requested to do so by a legislative body, committee, or a member thereof;

((B)) in connection with legislation or appropriations directly affecting the activities of the Institute; or

((C)) in connection with legislation or appropriations dealing with improvements in the State judiciary, consistent with the provisions of this chapter.

((b)) ** Issuance of shares of stock; declaration of dividends; compensation for services; reimbursement for expenses; political activities**

((1)) The Institute shall have no power to issue any shares of stock, or to declare or pay any dividends.

((2)) No part of the income or assets of the Institute shall enure to the benefit of any director, officer, or employee, except as reasonable compensation for services or reimbursement for expenses.

((3)) Neither the Institute nor any recipient shall contribute or make available Institute funds or program personnel or equipment to any political party or association, or the campaign of any candidate for public or party office.

((4)) The Institute shall not contribute or make available Institute funds or program personnel or equipment for use in advocating or opposing any ballot measure, initiative, or referendum.

((c)) ** Identification of Institute with political activities** Officers and employees of the Institute or of recipients shall not at any time intentionally identify the Institute or the recipient with any partisan or nonpartisan political activity associated with a political party or association, or the campaign of any candidate for public or party office.