Sec. 103. Banning conflicted interests in the executive branch
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Chapter 131 of title 5, United States Code, is amended by adding at the end the following: In this subchapter: The term adjacent individual means— each officer or employee in the executive branch holding a Senior Executive Service position, as defined under section 3132(a)(2) of title 5; each member of a uniformed service whose pay grade is at or in excess of O–7 under section 201 of title 37; each officer or employee in any other position determined by the Special Counsel of the United States, in consultation with the Director of the Office of Government Ethics, to be of equal classification to a position described in subparagraph
(A)or (B); or the spouse or dependent child of any individual described in subparagraph (A), (B), or (C). 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 security future (as defined in that section); or a commodity (as defined in section 1a of the Commodity Exchange Act ( 7 U.S.C. 1a )); or 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— a diversified mutual fund; a diversified exchange-traded fund; a United States Treasury bill, note, or bond; compensation from the primary occupation of a covered individual or adjacent individual; or any financial interest exempted under paragraph
(1)or
(2)of section 208(b) of title 18. The term covered individual means— the President; the Vice President; or the spouse or dependent child of any individual described in subparagraph
(A)or (B). The term dependent child has the meaning given the term in section 13101. Except as provided in subsection (b), a covered individual or an adjacent individual may not, during the term of service of the covered individual or adjacent individual, or during the 180-day period beginning on the date on which the service of such covered individual or adjacent individual is terminated, hold, purchase, sell, or conduct any type of transaction with respect to a covered financial interest. The prohibition under subsection
(a)shall not apply to a sale by a covered individual or an adjacent individual that is completed by the date that is— for a covered individual or an adjacent individual serving on the date of enactment of this section, 180 days after the date of enactment; and for a covered individual or an adjacent individual who commences service as a covered individual after the date of enactment of this section, 180 days after the first date of the term of service. With respect to adjacent individuals— this section shall be supplementary in nature to section 208 of title 18; and nothing in this section shall be construed to limit the application of section 208 of title 18. A covered individual or adjacent individual shall disgorge to the Treasury of the United States any profit from a transaction or holding involving a covered financial interest that is conducted in violation of this section. A covered individual or an adjacent individual who holds, purchases, sells, or conducts a transaction involving a covered financial interest in violation of this section— shall be assessed a fine by the Office of the Special Counsel, in consultation with the Director of the Office of Government Ethics, of not more than $10,000 or the amount of compensation, if any, that the covered individual or adjacent individual received for the prohibited conduct, whichever is greater; and may be referred to the Department of Justice and assessed a civil fine pursuant to section 13153 if the Office of the Special Counsel, in consultation with the Director of the Office of Government Ethics, find such case comparatively substantial in monetary value or extraordinary in nature. The Attorney General may bring a civil action in any appropriate United States district court against any covered individual or adjacent individual who violates any provision of section 13152. The court in which any action is brought under subsection
(a)may assess against a covered individual or an adjacent individual a civil penalty of not more than the amount recommended by the Attorney General. . 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 in the executive branch 13151. Definitions. 13152. Prohibition on certain transactions and holdings involving covered financial interests. 13153. Civil penalties. .
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