Sec. 5. Banning conflicted interests

1,273 words·~6 min read·/bill/118/hr/6842/ih/section-5

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Chapter 131 of title 5, United States Code, is amended by adding at the end the following: In this subchapter: The term commodity has the meaning given the term in section 1a of the Commodity Exchange Act ( 7 U.S.C. 1a ). The term covered financial interest means— any investment in— a security (as defined in section 3(a) of Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a) )); a future; a commodity (as defined in section 1a of the Commodity Exchange Act ( 7 U.S.C. 1a )); or cryptocurrency, such as a coin or token— received in connection with an initial coin offering; or issued or distributed using distributed ledger or blockchain technology; and any economic interest comparable to an interest described in clause

(i)that is acquired through synthetic means, such as the use of a derivative, including an option, warrant, or other similar means. The term covered financial interest does not include— an investment fund registered as an investment company under section 3 of the Investment Company Act of 1940 ( 15 U.S.C. 80a–3 ) that is diversified as defined in section 2640.102 of title 5, Code of Federal Regulations; compensation from the primary occupation of the spouse of an individual described in subparagraphs

(A)through

(G)of paragraph (3), or any security that is issued or paid by an operating business that is the primary employer of such a spouse that is issued or paid to such a spouse; or a United States Treasury bill, note, or bond. The term covered individual means— a Member of Congress (as defined in section 13101); the President; the Vice President; the Chief Justice of the United States; an Associate Justice of the Supreme Court; a member of the Board of Governors of the Federal Reserve System; a president or vice president of a Federal Reserve bank; or the spouse or dependent child of an individual described in subparagraphs

(A)through (G). The term dependent child means any individual who is— under the age of 19; and a dependent of an individual described in subparagraphs

(A)through

(G)of paragraph

(3)within the meaning of section 152 of the Internal Revenue Code of 1986. The term future means— a security future (as defined in section 3(a) of Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a) )); and any other contract for the sale of a commodity for future delivery. The term supervising ethics office , with respect to a covered individual, has the meaning given the term in section 13101 with respect to that covered individual. Except as provided in section 13163, no covered individual may— hold, purchase, sell, or conduct any type of transaction with respect to a covered financial interest; or enter into a transaction that creates a net short position in any security. A covered individual may not serve as an officer or member of any board of any for-profit association, corporation, or other entity. Any individual subject to the restrictions contained in subsection

(a)who, within 180 days after such individual ceases to be a covered individual, engages in any of the actions under such subsection, shall be in violation of this subchapter. With respect to any covered financial interest held by a covered individual, the covered individual shall sell the covered financial interest during the applicable 120-day period beginning on the later of— the date on which an individual becomes a covered individual; and the date of enactment of STOCK Act 2.0 . A covered individual who inherits a covered financial interest after the conclusion of the applicable 120-day period described in subsection

(a)shall sell the covered financial interest during the 120-day period beginning on the date on which the covered financial interest is inherited. A covered individual may request, and the supervising ethics office may grant, 1 or more reasonable extensions of the period described under paragraph (1), subject to the conditions that— the total period of time covered by all extensions granted for the covered financial interest shall not exceed 150 days; and the period covered by a single extension shall be not longer than 45 days. Each covered individual shall submit to the supervising ethics office a written certification that such covered individual has achieved compliance with the requirements of this subchapter. Each supervising ethics office shall make publicly available on a website of such office the following: Within 30 days of receipt, each request for an extension under section 13163(b)(2). The outcome of the decision to grant or deny each such request within 30 days of such decision. A covered individual who knowingly fails to comply with this subchapter shall be assessed a fine by the supervising ethics office of not less than 10 percent of the value of the covered financial interest that was purchased, sold, or held, or the security in which a net short position was created, in violation of this title, as applicable. This subchapter applies to a covered financial interest held in any trust with respect to which the covered individual is a beneficial owner, regardless of whether the trust is a qualified blind trust. . The table of sections for chapter 131 of title 5, United States Code, is amended by adding at the end the following: Subchapter IV—Banning Conflicted Interests Sec. 13161. Definitions. Sec. 13162. Prohibitions. Sec. 13163. Divestiture. Sec. 13164. Certificate of compliance. Sec. 13165. Publication. Sec. 13166. Enforcement. Sec. 13167. Applicability. . Subparagraph

(B)of section 1043(b)(2) of title 26, United States Code, is amended to read as follows: that has been issued by— the President or the Director of the Office of Government Ethics, in the case of executive branch officers or employees or the spouse or dependent child of a member of the Board of Governors of the Federal Reserve System, the Director of the Office of Government Ethics, in the case of the President, Vice President, or the spouse or dependent child of the President or Vice President, the Judicial Conference of the United States (or its designee), in the case of judicial officers or the spouse or dependent child of the Chief Justice or the Associate Justice, the applicable congressional ethics committee, in the case of Members of Congress or the spouse or dependent child of a Member of Congress, or the Inspector General of the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection, in the case of a president of a Federal Reserve bank, vice president of a Federal Reserve bank, or the spouse or dependent child of the president or vice president of a Federal Reserve Bank, and . Section 13122(f)(2)(B) of title 5, United States Code, is amended— by striking Subject to clause

(iv)of this subparagraph, before each place it appears and inserting Before ; and by striking clause (iv). Section 3(4)(D) of the Lobbying Disclosure Act of 1995 ( 2 U.S.C. 1602(4)(D) ) is amended by striking legislative branch employee serving in a position described under section 13101(13) of title 5, United States Code and inserting officer or employee of Congress (as defined in section 13101 of title 5, United States Code) . Section 2 of the STOCK Act ( 5 U.S.C. 13101 note) is amended— in paragraph (2)(B), by striking

(11); in paragraph (4), by striking

(10); in paragraph (5), by striking

(9); and in paragraph (6), by striking

(18). Section 21A of the Securities Exchange Act of 1934 ( 15 U.S.C. 78u–1 ) is amended— in subsection (g)(2)(B)(ii), by striking

(11); and in subsection (h)(2)— in subparagraph (B), by striking

(9); and in subparagraph (C), by striking

(10).

Connectionstraces to 4

Traces to 4 documents

U.S. Code

2 references not yet in our index