Sec. 105. Conflicts of interest rules for senior government officials
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No senior government official may own or trade any individual stock, bonds, commodity, future, and other form of security, including an interest in a hedge fund, a derivative, option, or other complex investment vehicle. No senior government official may maintain ownership in commercial real estate, unless ownership of such commercial real estate is necessary for a qualified small business described in paragraph (4)(B). No senior government official may maintain a financial interest in any trust, including a family trust, if the supervising ethics agency determines that the trust includes any— asset that might present a conflict of interest; or individual stock, bonds, commodity, future, and other form of security, including an interest in a hedge fund, a derivative, option, or other complex investment vehicle.
Subparagraph
(A)shall not apply to a trust described in section 102(f)(2) of the Ethics in Government Act of 1978 (5 U.S.C. App.). No senior government official may maintain ownership in a privately owned or closely held corporation, company, firm, partnership, or other business enterprise. Subparagraph
(A)shall not apply to a qualified small business. A senior government official may maintain assets that do not present a conflict of interest, including— a widely held investment fund— described in section 102(f)(8) of the Ethics in Government Act of 1978 (5 U.S.C. App.); and that meets the requirements described in paragraph (2); real estate used solely as a personal residence; cash, certificates of deposit, or other forms of savings accounts; a federally managed asset, including— financial interests in or income derived from— any retirement system under title 5, United States Code (including the Thrift Savings Plan under subchapter III of chapter 84 of such title); or any other retirement system maintained by the United States for officers or employees of the United States, including the President, or for members of the uniformed services; benefits received under the Social Security Act ( 42 U.S.C. 301 et seq.); and an asset in the Federal Employee Investment Account described in paragraph (3); bonds, bills, and notes issued by a governmental sources, such as the Federal Government, State, or other municipality; shares of Settlement Common Stock issued under section 7(g)(1)(A) of the Alaska Native Claims Settlement Act ( 43 U.S.C. 1606(g)(1)(A) ); and shares of Settlement Common Stock, as defined in section 3 of the Alaska Native Claims Settlement Act ( 43 U.S.C. 1602 ). A senior government official may not maintain a widely held investment fund, unless— the widely held investment fund is certified as not presenting a conflict of interest by the applicable supervising ethics office; and any instructions to a manager of the widely held investment fund are shared with the applicable supervising ethics office. There are established in the Treasury of the United States accounts for senior government officials to maintain investments in the stock and securities markets to be known as Federal Employee Investment Accounts. To comply with the requirements under this Act, a senior government official may sell an asset or security, including those assets or securities that present a conflict of interest under subsection (a), and invest the resulting funds into the Federal Employee Investment Accounts. The Federal Retirement Thrift Investment Board shall manage Federal Employee Investment Accounts in a manner similar to other retirement funds managed by the Board and in accordance with subchapter III of chapter 84 of title 5, United States Code, for any Federal employee or official who wishes to temporarily invest funds. A senior government officials may withdraw funds from their Federal Employee Investment Account at any time without penalty. Section 207 of title 18, United States Code, is amended— by striking subsections (c), (d), and
(e)and inserting the following: In addition to the restrictions set forth in subsections
(a)and (b), any President, Vice President, Member of Congress, or officer or employee compensated at a rate of pay specified in or fixed according to subchapter II of chapter 53 of title 5, after the termination of his or her service or employment with the United States who— works as a registered lobbyist; or knowingly makes, with the intent to influence, any communication to or appearance before any officer or employee of any department, agency, Member, officer, or employee of either House of Congress or any employee of any other legislative office of the Congress, on behalf of any other person (except the United States or the District of Columbia) for compensation, in connection with any matter on which such person seeks official action by any Member, officer, or employee of either House of Congress, or any employee or officer of any department or agency, shall be punished as provided in section 216 of this title. Any officer or employee in the executive or legislative branch of the United States who, during the time period described in subparagraph
(B)makes, with the intent to influence, any communication to or appearance before their former office, agency, or House of Congress, for compensation, shall be punished as provided in section 216 of this title. The time period described in this subparagraph is as follows: With respect to an officer or employee of the legislative branch, 2 years after the termination of service or employment as an officer or employee. With respect to an officer or employee of the executive branch, the later of— the date on which a President other than the President serving during the employment of the officer or employee takes office; and the date on which the 2-year period beginning on the date of the termination of service or employment as an officer or employee expires. With respect to an officer or employee of the executive branch of the United States who becomes a corporate lobbyist, the later of— the date on which a President other than the President serving during the employment of the officer or employee takes office; and the date on which the 6-year period beginning on the date of the termination of service or employment as an officer or employee expires. With respect to an officer or employee of the legislative branch of the United States who becomes a corporate lobbyist, the date on which the 6-year period beginning on the date of the termination of service or employment as an officer or employee expires. ; and by redesignating subsections
(f)through
(l)as subsections
(d)through (j), respectively; and by adding at the end the following: In this subsection: The term giant bank or company includes— any for-profit company or financial institution with greater than an average of $150,000,000,000 in market capitalization or revenue for the previous 3-year period; any Federal contractor that received greater than $5,000,000,000 in annual revenue from the Federal Government during the previous 3-year period; and any for-profit company or financial institution that exerts monopolistic or monopsonistic control over a significant share of the market in its particular industry (as defined by the Director of the Office of Public Integrity, in consultation with the Attorney General, by regulation). The term lobbying contact has the meaning given the term in section 3 of the Lobbying Disclosure Act of 1995 ( 2 U.S.C. 1602 ). The term registered lobbyist means a lobbyist registered under the Lobbying Disclosure Act of 1995 ( 2 U.S.C. 1601 et seq.). The term senior government official means— any individual described in section 101(f) of the Ethics in Government Act of 1978 (5 U.S.C. App.), including— any individual in a position on any level of the Executive Schedule under subchapter II of chapter 53 of title 5, United States Code; a political appointee in the Executive Office of President or in the Office of the Vice President; and an individual employed in a position in the executive branch of the Government of a confidential or policy-determining character under schedule C of subpart C of part 213 of title 5 of the Code of Federal Regulations; an individual employed in a position in the Senior Executive Service; an individual employed in a position at the GS–14 level or higher; and an individual employed in a position not under the General Schedule for which the rate of basic pay is equal to or greater than the minimum rate of basic pay payable for GS–14 of the General Schedule. No for-profit corporation, company, firm, partnership, or other business enterprise may hire or directly or indirectly compensate (including as consultants and lawyers) any former senior government official, for 1 year after the official leaves government service, from an agency, department, or congressional office that the corporation, company, firm, partnership, or other business enterprise made a lobbying contact in the past 2 years. No company that is awarded a contract or license by the Federal Government may hire or compensate any former officer or employee in the executive branch of the United States who oversaw any of the company's contracts or licenses (including any procurement officer, any Federal employee or official who participated in the contract or license selection, any Federal employee or official who determined or signed off on the technical requirements of the contract or license, and any senior government official in the executive branch of the United States employed at the agency that granted the contract or license) during the 4-year period beginning on the date on which the officer terminated employment with the United States. No giant bank or company may hire or directly or indirectly compensate (including as consultants and lawyers) any senior government official during the 4-year period beginning on the date on which the official terminated employment with the United States. Not later than 1 year after the date of enactment of this clause, each senior government official who terminates service on or after the date that is 1 year after the date of enactment of this clause shall submit to the Director of the Office of Public Integrity an annual disclosure that includes all sources of income for the 4-year period beginning on the date on which the government official terminated employment with the United States. The Director of the Office of Public Integrity shall make a disclosure made under subclause
(I)publicly available for any official who had a report made in accordance with title I of the Ethics in Government Act of 1978 (5 U.S.C. App.) made publicly available. Each senior government official subject to the disclosure requirement in subclause
(I)may consent to allow the Director of the Office of Public Integrity to obtain from the Commissioner of Internal Revenue the information necessary to meet the requirements of subclause (I), such that additional action is not required of the senior government official after such individual files a tax return. Any individual who consents under item
(aa)shall not be subject to subclause (V). Not later than 1 year after the date of enactment of this subclause, the Director of the Office of Public Integrity and the Commissioner of Internal Revenue shall enter into a cooperative agreement or memorandum of understanding to establish secure means to allow for the necessary information exchange in subclause
(III)for senior government officials who wish to avail themselves of the automatic disclosure under subclause (III). The Attorney General or the Director of the Office of Public Integrity may bring a civil action in any appropriate United States district court against any individual who knowingly and willfully falsifies or who knowingly and willfully fails to disclose any information that such individual is required to disclose pursuant to this clause. The court in which such action is brought may assess against such individual a civil penalty in any amount, not to exceed $50,000. It shall be unlawful for any person to knowingly and willfully falsify any information that such person is required to disclose under this clause. It shall be unlawful for any person to fail to disclose any information that such person is required to disclose under this clause. Any person who violates the first sentence of subitem
(AA)shall be fined under title 18, United States Code, imprisoned for not more than 1 year, or both. Any person who violates the second sentence of subitem
(AA)shall be fined under title 18, United States Code. The Director of Office of Public Integrity may impose a civil penalty or a sanction on any entity or giant bank or company upon making a determination, after reasonable notice and opportunity for a hearing, that the entity or giant bank or company has violated paragraph
(2)or (3)(B). A civil penalty imposed for a violation under subparagraph
(A)shall— in the case of an initial violation, be not less than 1 percent of the net profit of the entity or giant bank or company for the previous year; in the case of a second violation, not less than 2 percent of the net profit of the entity or giant bank or company for the previous year; and in the case of a third or subsequent violation, not less than 5 percent of the net profit of the entity or giant bank or company for the previous year. In addition to a civil penalty imposed under this clause, after reasonable notice and an opportunity for a hearing, if the Director of the Office of Public Integrity determines that a company has violated paragraph
(2)or (3)(B), the Director may impose a sanction on an entity or a giant bank or company, including— prohibiting the entity or giant bank or company from employing any former employee or officer of the Federal Government for a period of time not to exceed 8 years; prohibiting the company from doing business with the Federal Government, receiving a contract or license from the Federal Government, or otherwise participating in Federal Government programs, for a period of time not to exceed 8 years. In this subclause, the term compensation includes, based on information required to be reported any Federal agency during the period in which a violation of paragraph
(2)or (3)(B) occurred— the proceeds of any sale of stock; and any incentive-based compensation (including stock options awarded as compensation). In addition to the penalties described in subparagraphs
(B)and (C), after reasonable notice and an opportunity for a hearing, that an executive officer of an entity or giant bank or company has knowingly, or with gross negligence, violated paragraph
(2)or (3)(B), or contributed to the violation of a paragraph
(2)or (3)(B), the Director may assess a civil penalty against the executive officer not to exceed the amount of the officer’s compensation for each year during which the violations occurred. In determining the amount of any penalties assessed under this paragraph, the Director of the Office of Public Integrity or the court shall take into account the appropriateness of the penalty with respect to— the size of financial resources and good faith of the entity, giant bank or company, or senior executive; the gravity of the violation or failure to pay; the history of previous violations; and such other matters as justice may require. The Director of the Office of Public Integrity may compromise, modify, or remit any penalty under this paragraph, which may be assessed or had already been assessed. The amount of such penalty, when finally determined, shall be exclusive of any sums owed by the person to the United States in connection with the costs of the proceeding, and may be deducted from any sums owing by the United States to the person charged. No civil penalty may be assessed under this paragraph with respect to a violation of paragraph
(2)or (3)(B) unless— the Director of the Office of Public Integrity gives notice and an opportunity for a hearing to the person accused of the violation; or the appropriate court has ordered such assessment and entered judgment in favor of the Director of the Office of Public Integrity. . Section 207 of title 18, United States Code, is amended— in subsection (d), as redesignated by paragraph
(1)of this subsection, is amended by striking (d), or
(e); in subsection (f)(2), as redesignated by paragraph
(1)of this subsection, in the second sentence, by striking (c)(2)(A)(i) or
(iii)and inserting
(c); in subsection (g)(1), as redesignated by paragraph
(1)of this subsection— in subparagraph (A), by striking (a), (c), and
(d)and inserting
(a)and
(c); and in subparagraph (B), by striking
(f)and inserting
(d); and in subsection (h), as redesignated by paragraph
(1)of this subsection— by striking subsections (c), (d), and
(e)each place the term appears and inserting subsection
(c); in paragraph (5), by striking (a), (c), and
(d)and inserting
(a)and
(c); and in paragraph (7)(B), by striking subsections (c), (d), or
(e)and inserting subsection
(c). Section 10(k) of the Federal Deposit Insurance Act ( 12 U.S.C. 1820(k) ) is amended— in the subsection header, by striking and inserting One-year ; and Four-Year in paragraph (1)— in subparagraph (B), by striking senior ; and in subparagraph (C), by striking 1 year and inserting 4 years .
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Sec. 105
Conflicts of interest rules for senior government officials
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