[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 984 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 984

    To provide for reform in the operations of the executive branch.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 12, 2007

 Mr. Waxman (for himself and Mr. Tom Davis of Virginia) introduced the 
 following bill; which was referred to the Committee on Oversight and 
                           Government Reform

_______________________________________________________________________

                                 A BILL


 
    To provide for reform in the operations of the executive branch.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Executive Branch Reform Act of 
2007''.

SEC. 2. REQUIREMENTS RELATING TO SIGNIFICANT CONTACTS.

    (a) In General.--The Ethics in Government Act of 1978 (5 U.S.C. 
App. 4) is amended by adding at the end the following new title:

    ``TITLE VI--EXECUTIVE BRANCH DISCLOSURE OF SIGNIFICANT CONTACTS

``SEC. 601. RECORDING AND REPORTING BY CERTAIN EXECUTIVE BRANCH 
              OFFICIALS OF SIGNIFICANT CONTACTS MADE TO THOSE 
              OFFICIALS.

    ``(a) In General.--Not later than 30 days after the end of a 
calendar quarter, each covered executive branch official shall make a 
record of, and file with the Office of Government Ethics a report on, 
any significant contacts during the quarter between the covered 
executive branch official and any private party relating to an official 
government action. If no such contacts occurred, each such official 
shall make a record of, and file with the Office a report on, this 
fact, at the same time.
    ``(b) Contents of Record and Report.--Each record made, and each 
report filed, under subsection (a) shall contain--
            ``(1) the name of the covered executive branch official;
            ``(2) the name of each private party who had a significant 
        contact with that official; and
            ``(3) for each private party so named, a summary of the 
        nature of the contact, including--
                    ``(A) the date of the contact;
                    ``(B) the subject matter of the contact and the 
                specific executive branch action to which the contact 
                relates; and
                    ``(C) if the contact was made on behalf of a 
                client, the name of the client.
    ``(c) Withholding FOIA-Exempt Information.--This section does not 
require the filing with the Office of Government Ethics of information 
that is exempt from public disclosure under section 552(b) of title 5, 
United States Code (popularly referred to at the ``Freedom of 
Information Act'').

``SEC. 602. AUTHORITIES AND RESPONSIBILITIES OF OFFICE OF GOVERNMENT 
              ETHICS.

    ``(a) In General.--The Director of the Office of Government Ethics 
shall--
            ``(1) promulgate regulations to implement this title, 
        provide guidance and assistance on the recording and reporting 
        requirements of this title, and develop common standards, 
        rules, and procedures for compliance with this title;
            ``(2) review, and, where necessary, verify the accuracy, 
        completeness, and timeliness of reports;
            ``(3) develop filing, coding, and cross-indexing systems to 
        carry out the purpose of this title, including--
                    ``(A) a publicly available list of all private 
                parties who made a significant contact; and
                    ``(B) computerized systems designed to minimize the 
                burden of filing and maximize public access to reports 
                filed under this title;
            ``(4) make available for public inspection and copying at 
        reasonable times the reports filed under this title;
            ``(5) retain reports for a period of at least 6 years after 
        they are filed;
            ``(6) compile and summarize, with respect to each reporting 
        period, the information contained in reports filed with respect 
        to such period in a clear and complete manner;
            ``(7) notify any covered executive branch official in 
        writing that may be in noncompliance with this title; and
            ``(8) notify the United States Attorney for the District of 
        Columbia that a covered executive branch official may be in 
        noncompliance with this title, if the covered executive branch 
        official has been notified in writing and has failed to provide 
        an appropriate response within 60 days after notice was given 
        under paragraph (7).

``SEC. 603. PENALTIES.

    ``(a) Violation.--Whoever violates this title shall be subject to 
administrative sanctions, up to and including termination of 
employment.
    ``(b) Deliberate Attempt To Conceal.--Whoever deliberately attempts 
to conceal a significant contact in violation of this title shall upon 
proof of such deliberate violation by a preponderance of the evidence, 
be subject to a civil fine of not more than $50,000, depending on the 
extent and gravity of the violation.

``SEC. 604. DEFINITIONS.

    ``In this title:
            ``(1) Covered executive branch official.--The term `covered 
        executive branch official' means--
                    ``(A) any officer or employee serving in a position 
                in level I, II, III, IV, or V of the Executive 
                Schedule, as designated by statute or Executive order;
                    ``(B) any member of the uniformed services whose 
                pay grade is at or above O-7 under section 201 of title 
                37, United States Code;
                    ``(C) any officer or employee serving in a position 
                of a confidential, policy-determining, policy-making, 
                or policy-advocating character described in section 
                7511(b)(2)(B) of title 5, United States Code;
                    ``(D) any noncareer appointee, as defined by 
                section 3132(a)(7) of title 5, United States Code; and
                    ``(E) any officer or employee serving in a position 
                of a confidential, policy-determining, policy-making, 
                or policy advocating character, or any other individual 
                functioning in the capacity of such an officer or 
                employee, in the Executive Office of the President or 
                the Office of the Vice President, but does not include 
                the President or Vice President or the chief of staff 
                of the President or Vice President.
            ``(2) Significant contact.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `significant contact' means 
                oral or written communication (including electronic 
                communication) that is made by a private party to a 
                covered executive branch official in which such private 
                party seeks to influence official action by any officer 
                or employee of the executive branch of the United 
                States.
                    ``(B) Exception.--The term `significant contact' 
                does not include any communication that is an exception 
                to the definition of `lobbying contact'--
                            ``(i) under clauses (i) through (vii) or 
                        clauses (ix) through (xix) of subparagraph (B) 
                        of paragraph (8) of section 3 of the Lobbying 
                        Disclosure Act of 1995 (2 U.S.C. 1602(8)(i)-
                        (vii) or (ix)-(xix)); or
                            ``(ii) with respect to publically available 
                        information only, under clause (viii) of 
                        subparagraph (B) of paragraph (8) of section 3 
                        of the Lobbying Disclosure Act of 1995 (2 
                        U.S.C. 1602(8)(viii)).
            ``(3) Private party.--The term `private party' means any 
        person or entity, but does not include a Federal, State, or 
        local government official or a person representing such an 
        official.''.
    (b) Effective Date.--
            (1) In general.--Title VI of the Ethics in Government Act 
        of 1978, as added by this section, takes effect 1 year after 
        the date of the enactment of this Act, except as provided in 
        paragraph (2).
            (2) Initial regulations.--The initial regulations required 
        by section 602 of that Act shall be promulgated--
                    (A) in draft form, not later than 270 days after 
                the date of the enactment of this Act; and
                    (B) in final form, not later than 1 year after the 
                date of the enactment of this Act.

SEC. 3. REQUIREMENTS RELATING TO STOPPING THE REVOLVING DOOR.

    The Ethics in Government Act of 1978 (5 U.S.C. App. 4) is amended 
by adding at the end the following new title:

                ``TITLE VII--STOPPING THE REVOLVING DOOR

``SEC. 701. TWO-YEAR COOLING-OFF PERIOD FOR PERSONS LEAVING GOVERNMENT 
              SERVICE.

    ``(a) In General.--For a period of two years after the termination 
of his employment, a covered executive branch official--
            ``(1) shall not engage in any conduct that would be 
        prohibited under subsection (c) of section 207 of title 18, 
        United States Code, if it occurred within one year after the 
        termination of his employment; and
            ``(2) shall not, if his position is described in subsection 
        (d)(1) of section 207 of title 18, United States Code, engage 
        in any conduct that would be prohibited under subsection (d) of 
        section 207 of title 18, United States Code, if it occurred 
        within one year after the termination of his employment.
    ``(b) No Effect on Section 207.--This section does not expand, 
contract, or otherwise affect the application of any waiver or criminal 
penalties under section 207 of title 18, United States Code.

``SEC. 702. PROHIBITION ON NEGOTIATION OF FUTURE EMPLOYMENT.

    ``(a) Prohibition.--A covered executive branch official shall not 
participate in any official matter in which, to the official's 
knowledge, a person or organization with whom the official is 
negotiating or has any arrangement concerning prospective employment 
has a financial interest, unless a waiver has been granted under 
subsection (b).
    ``(b) Waivers Only When Exceptional Circumstances Exist.--A waiver 
to subsection (a) is not available, and shall not be granted, to any 
individual except in a case which the Government official responsible 
for the individual's appointment as a covered executive branch official 
determines that exceptional circumstances exist. Whenever such a 
determination is made, the Director of the Office of Government Ethics 
shall review the circumstances relating to the determination, and the 
waiver shall not take effect until the date on which the Director 
certifies in writing that exceptional circumstances exist.

``SEC. 703. COOLING-OFF PERIOD FOR CERTAIN PERSONS ENTERING GOVERNMENT 
              SERVICE.

    ``(a) In General.--A covered executive branch official shall not 
participate in any particular matter involving specific parties that 
would affect the financial interests of a covered entity.
    ``(b) Waiver.--An agency's designated ethics officer may waive the 
prohibition in subsection (a) with respect to a covered executive 
branch official of that agency upon a determination that the 
relationship between the covered executive branch official and the 
covered entity is not so substantial as to be deemed likely to affect 
the integrity of the services that the Government may expect from the 
official. Whenever such a determination is made, the Director of the 
Office of Government Ethics shall review the circumstances relating to 
the determination, and the waiver shall not take effect until the date 
on which the Director approves the determination in writing.
    ``(c) Definition.--In this section, the term `covered entity' means 
an entity--
            ``(1) in which the official, within the previous 2 years, 
        served as an officer, director, trustee, general partner, or 
        employee; or
            ``(2) for which the official, within the previous 2 years, 
        worked as a lobbyist, lawyer, or other representative.
    ``(d) No Effect on Section 208.--This section does not expand, 
contract, or otherwise affect the application of any criminal penalties 
under section 208 of title 18, United States Code.

``SEC. 704. PENALTIES.

    ``Whoever violates section 701, 702, or 703 of this title shall, 
upon proof of such knowing violation by a preponderance of the 
evidence, be subject to a civil fine of not more than $100,000, 
depending on the extent and gravity of the violation.

``SEC. 705. DEFINITION.

    ``In this title, the term `covered executive branch official' 
means--
            ``(1) any officer or employee serving in a position in 
        level I, II, III, IV, or V of the Executive Schedule, as 
        designated by statute or Executive order;
            ``(2) any member of the uniformed services whose pay grade 
        is at or above O-7 under section 201 of title 37, United States 
        Code;
            ``(3) any officer or employee serving in a position of a 
        confidential, policy-determining, policy-making, or policy-
        advocating character described in section 7511(b)(2)(B) of 
        title 5, United States Code;
            ``(4) any noncareer appointee, as defined by section 
        3132(a)(7) of title 5, United States Code;
            ``(5) any officer or employee serving in a position of a 
        confidential, policy-determining, policy-making, or policy 
        advocating character, or any other individual functioning in 
        the capacity of such an officer or employee, in the Executive 
        Office of the President or the Office of the Vice President; 
        and
            ``(6) the Vice President.''.

SEC. 4. ADDITIONAL PROVISIONS RELATING TO PROCUREMENT OFFICIALS.

    (a) Elimination of Loopholes That Allow Former Federal Officials To 
Accept Compensation From Contractors or Related Entities.--Section 
27(d) of the Office of Federal Procurement Policy Act (41 U.S.C. 
423(d)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``or consultant'' and inserting 
                ``consultant, lawyer, or lobbyist'';
                    (B) by striking ``one year'' and inserting ``two 
                years''; and
                    (C) in subparagraph (C), by striking ``personally 
                made for the Federal agency--'' and inserting 
                ``participated personally and substantially in--''; and
            (2) by amending paragraph (2) to read as follows:
            ``(2) Paragraph (1) shall not prohibit a former official of 
        a Federal agency from accepting compensation from any division 
        or affiliate of a contractor that does not produce the same or 
        similar products or services as the entity of the contractor 
        that is responsible for the contract referred to in 
        subparagraph (A), (B), or (C) of such paragraph if the agency's 
        designated ethics officer determines that--
                    ``(A) the offer of compensation is not a reward for 
                any action described in paragraph (1); and
                    ``(B) acceptance of the compensation is appropriate 
                and will not affect the integrity of the procurement 
                process.''.
    (b) Requirement for Federal Procurement Officers To Disclose Job 
Offers Made on Behalf of Relatives.--Section 27(c)(1) of such Act (41 
U.S.C. 423(c)(1)) is amended by inserting after ``that official'' the 
following: ``or for a relative of that official (as defined in section 
3110 of title 5, United States Code),''.
    (c) Requirement on Award of Government Contracts to Former 
Employers.--Section 27 of such Act (41 U.S.C. 423) is amended by adding 
at the end the following new subsection:
    ``(i) Prohibition on Involvement by Certain Former Contractor 
Employees in Procurements.--An employee of the Federal Government who 
is a former employee of a contractor with the Federal Government shall 
not be personally and substantially involved with any award of a 
contract to the employee's former employer, or the administration of 
such a contract, for the two-year period beginning on the date on which 
the employee leaves the employment of the contractor.''.
    (d) Regulations.--Section 27 of such Act (41 U.S.C. 423) is further 
amended by adding at the end of the following new subsection:
    ``(j) Regulations.--The Administrator, in consultation with the 
Director of the Office of Government Ethics, shall--
            ``(1) promulgate regulations to carry out and ensure the 
        enforcement of this section; and
            ``(2) monitor and investigate individual and agency 
        compliance with this section.''.

SEC. 5. PROHIBITION ON UNAUTHORIZED EXPENDITURE OF FUNDS FOR PUBLICITY 
              OR PROPAGANDA PURPOSES.

    (a) Prohibition.--Chapter 13 of title 31, United States Code, is 
amended by adding at the end the following new section:
``Sec. 1355. Prohibition on unauthorized expenditure of funds for 
              publicity or propaganda purposes
    ``An officer or employee of the United States Government may not 
make or authorize an expenditure or obligation of funds for publicity 
or propaganda purposes within the United States unless authorized by 
law.''.
    (b) Clerical Amendment.--The table of sections for chapter 13 of 
such title is amended by adding at the end the following new item:

``1355. Prohibition on unauthorized expenditure of funds for publicity 
                            or propaganda purposes.''.

SEC. 6. REQUIREMENT FOR DISCLOSURE OF FEDERAL SPONSORSHIP OF ALL 
              FEDERAL ADVERTISING OR OTHER COMMUNICATION MATERIALS.

    (a) Requirement.--Each advertisement or other communication paid 
for by an Executive agency, either directly or through a contract 
awarded by the Executive agency, shall include a prominent notice 
informing the target audience that the advertisement or other 
communication is paid for by that Executive agency.
    (b) Advertisement or Other Communication.--In this section, the 
term ``advertisement or other communication'' includes--
            (1) an advertisement disseminated in any form, including 
        print or by any electronic means; and
            (2) a communication by an individual in any form, including 
        speech, print, or by any electronic means.
    (c)  Executive Agency.--In this section, the term ``Executive 
agency'' has the meaning provided in section 105 of title 5, United 
States Code.

SEC. 7. ELIMINATION OF ``PSEUDO'' CLASSIFICATION.

    (a) Reports on the Proliferating Use of ``Pseudo'' Classification 
Designations.--
            (1) Report by federal agencies.--Not later than six months 
        after the date of the enactment of this Act, each federal 
        agency shall submit to the Archivist of the United States and 
        the congressional committees described in subsection (d) a 
        report describing the use of ``pseudo'' classification 
        designations.
            (2) Matters covered.--Each such agency shall report on, at 
        a minimum, the following:
                    (A) The number of ``pseudo'' classification 
                designation policies used by the agency.
                    (B) Any existing guidance, instruction, directive, 
                or regulations regarding the agency's use of ``pseudo'' 
                classification designations.
                    (C) The number and level of experience and training 
                of Federal agency, office, and contractor personnel 
                authorized to make ``pseudo'' classification 
                designations.
                    (D) The cost of placing and maintaining information 
                under each ``pseudo'' classification designation.
                    (E) The extent to which information placed under 
                ``pseudo'' classification designations has subsequently 
                been released under section 552 of title 5, United 
                States Code (popularly known as the Freedom of 
                Information Act).
                    (F) The extent to which ``pseudo'' classification 
                designations have been used to withhold from the public 
                information that is not authorized to be withheld by 
                Federal statute, or by an Executive order relating to 
                the classification of national security information.
                    (G) The statutory provisions described in 
                subsection (c).
            (3) Report by the archivist of the united states.--Not 
        later than 9 months after the date of the enactment of this 
        Act, the Archivist of the United States shall issue to the 
        congressional committees described in subsection (d) a report 
        on the use of ``pseudo'' classification designations across the 
        executive branch that is based on the information provided by 
        agencies, as well as input from the Director of National 
        Intelligence, Federal agencies, offices, and contractors. All 
        federal agencies, offices, and contractors shall cooperate 
        fully and promptly with all requests by the Archivist in the 
        fulfillment of this paragraph.
            (4) Notice and comment.--The Archivist shall provide notice 
        and an opportunity for public comment on the report.
    (b) Elimination of ``Pseudo'' Classification Designations.--
            (1) Regulations.--Not later than 15 months after the date 
        of the enactment of this Act, the Archivist of the United 
        States shall promulgate regulations banning the use of 
        ``pseudo'' classification designations.
            (2) Standards for information control designations.--If the 
        Archivist determines that there is a need for some agencies to 
        use information control designations to safeguard information 
        prior to review for disclosure, beyond those designations 
        established by statute or by an Executive Order relating to the 
        classification of national security information, the 
        regulations under paragraph (1) shall establish standards for 
        the use of those designations by agencies. Such standards shall 
        address, at a minimum, the following issues:
                    (A) Standards for utilizing the information control 
                designations in a manner that is narrowly tailored to 
                maximize public access to information.
                    (B) Procedures for providing specified Federal 
                officials with authority to utilize the information 
                control designations, including training and 
                certification requirements.
                    (C) Categories of information that may be assigned 
                the information control designations.
                    (D) The duration of the information control 
                designations and the process by which they will be 
                removed.
                    (E) Procedures for identifying, marking, dating, 
                and tracking information assigned the information 
                control designations, including the identity of 
                officials making the designations.
                    (F) Specific limitations and prohibitions against 
                using the information control designations.
                    (G) Procedures for members of the public to 
                challenge the use of the information control 
                designations.
                    (H) The manner in which the use of the information 
                control designations relates to the procedures of each 
                agency or office under section 552 of title 5, United 
                States Code.
            (3) Regulation to constitute sole authority.--A regulation 
        promulgated pursuant to this subsection shall constitute the 
        sole authority by which Federal agencies, offices, or 
        contractors are permitted to control information for the 
        purposes of safeguarding information prior to review for 
        disclosure, other than authority granted by Federal statute or 
        by an Executive order relating to the classification of 
        national security information.
    (c) Review of Statutory Barriers to Public Access Information.--
            (1) Review of statutes.--As part of the report required 
        under subsection (a)(3), the Archivist shall examine existing 
        Federal statutes that allow Federal agencies, offices, or 
        contractors to control, protect, or otherwise withhold 
        information based on security concerns.
            (2) Recommendations.--The report shall make recommendations 
        on potential changes to the Federal statutes examined under 
        paragraph (1) that would improve public access to information 
        governed by such statutes.
    (d) Definitions.--In this section:
            (1) The term ``congressional committees'' means the 
        Committees on Government Reform, Judiciary, Homeland Security, 
        and Appropriations of the House of Representatives and the 
        Committees on Homeland Security and Governmental Affairs, 
        Judiciary, and Appropriations of the Senate.
            (2) The term ```pseudo' classification designations'' means 
        information control designations, including ``sensitive but 
        unclassified'' and ``for official use only'', that are not 
        defined by Federal statute, or by an Executive order relating 
        to the classification of national security information, but 
        that are used to manage, direct, or route Government 
        information, or control the accessibility of Government 
        information, regardless of its form or format.
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