[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 2038 Engrossed Amendment House (EAH)]
In the House of Representatives, U. S.,
February 9, 2012.
Resolved, That the bill from the Senate (S. 2038) entitled ``An Act
to prohibit Members of Congress and employees of Congress from using
nonpublic information derived from their official positions for
personal benefit, and for other purposes.'', do pass with the following
AMENDMENT:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Stop Trading on Congressional
Knowledge Act of 2012'' or the ``STOCK Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Member of congress.--The term ``Member of Congress''
means a member of the Senate or House of Representatives, a
Delegate to the House of Representatives, and the Resident
Commissioner from Puerto Rico.
(2) Employee of congress.--The term ``employee of
Congress'' means--
(A) any individual (other than a Member of
Congress), whose compensation is disbursed by the
Secretary of the Senate or the Chief Administrative
Officer of the House of Representatives; and
(B) any other officer or employee of the
legislative branch (as defined in section 109(11) of
the Ethics in Government Act of 1978 (5 U.S.C. App.
109(11))).
(3) Executive branch employee.--The term ``executive branch
employee''--
(A) has the meaning given the term ``employee''
under section 2105 of title 5, United States Code; and
(B) includes--
(i) the President;
(ii) the Vice President; and
(iii) an employee of the United States
Postal Service or the Postal Regulatory
Commission.
(4) Judicial officer.--The term ``judicial officer'' has
the meaning given that term under section 109(10) of the Ethics
in Government Act of 1978 (U.S.C. App. 109(10)) .
(5) Judicial employee.--The term ``judicial employee'' has
the meaning given that term in section 109(8) of the Ethics in
Government Act of 1978 (5 U.S.C. App. 109(8)).
(6) Supervising ethics office.--The term ``supervising
ethics office'' has the meaning given that term in section
109(18) of the Ethics in Government Act of 1978 (5 U.S.C. App.
109(18)).
SEC. 3. PROHIBITION OF THE USE OF NONPUBLIC INFORMATION FOR PRIVATE
PROFIT.
The Select Committee on Ethics of the Senate and the Committee on
Ethics of the House of Representatives shall issue interpretive
guidance of the relevant rules of each chamber, including rules on
conflicts of interest and gifts, clarifying that a Member of Congress
and an employee of Congress may not use nonpublic information derived
from such person's position as a Member of Congress or employee of
Congress or gained from the performance of such person's official
responsibilities as a means for making a private profit.
SEC. 4. PROHIBITION OF INSIDER TRADING.
(a) Affirmation of Nonexemption.--Members of Congress and employees
of Congress are not exempt from the insider trading prohibitions
arising under the securities laws, including section 10(b) of the
Securities Exchange Act of 1934 and Rule 10b-5 thereunder.
(b) Duty.--
(1) Purpose.--The purpose of the amendment made by this
subsection is to affirm a duty arising from a relationship of
trust and confidence owed by each Member of Congress and each
employee of Congress.
(2) Amendment.--Section 21A of the Securities Exchange Act
of 1934 (15 U.S.C. 78u-1) is amended by adding at the end the
following:
``(g) Duty of Members and Employees of Congress.--
``(1) In general.--Subject to the rule of construction
under section 10 of the STOCK Act and solely for purposes of
the insider trading prohibitions arising under this Act,
including section 10(b) and Rule 10b-5 thereunder, each Member
of Congress or employee of Congress owes a duty arising from a
relationship of trust and confidence to the Congress, the
United States Government, and the citizens of the United States
with respect to material, nonpublic information derived from
such person's position as a Member of Congress or employee of
Congress or gained from the performance of such person's
official responsibilities.
``(2) Definitions.--In this subsection--
``(A) the term `Member of Congress' means a member
of the Senate or House of Representatives, a Delegate
to the House of Representatives, and the Resident
Commissioner from Puerto Rico; and
``(B) the term `employee of Congress' means--
``(i) any individual (other than a Member
of Congress), whose compensation is disbursed
by the Secretary of the Senate or the Chief
Administrative Officer of the House of
Representatives; and
``(ii) any other officer or employee of the
legislative branch (as defined in section
109(11) of the Ethics in Government Act of 1978
(5 U.S.C. App. 109(11))).
``(3) Rule of construction.--Nothing in this subsection
shall be construed to impair or limit the construction of the
existing antifraud provisions of the securities laws or the
authority of the Commission under those provisions.''.
SEC. 5. CONFORMING CHANGES TO THE COMMODITY EXCHANGE ACT.
Section 4c(a) of the Commodity Exchange Act (7 U.S.C. 6c(a)) is
amended--
(1) in paragraph (3), in the matter preceding subparagraph
(A)--
(A) by inserting ``or any Member of Congress or
employee of Congress (as such terms are defined under
section 2 of the STOCK Act) or any judicial officer or
judicial employee (as such terms are defined,
respectively, under section 2 of the STOCK Act)'' after
``Federal Government'' the first place it appears;
(B) by inserting ``Member, officer,'' after
``position of the''; and
(C) by inserting ``or by Congress or by the
judiciary'' before ``in a manner''; and
(2) in paragraph (4)--
(A) in subparagraph (A), in the matter preceding
clause (i)--
(i) by inserting ``or any Member of
Congress or employee of Congress or any
judicial officer or judicial employee'' after
``Federal Government'' the first place it
appears;
(ii) by inserting ``Member, officer,''
after ``position of the''; and
(iii) by inserting ``or by Congress or by
the judiciary'' before ``in a manner'';
(B) in subparagraph (B), in the matter preceding
clause (i), by inserting ``or any Member of Congress or
employee of Congress or any judicial officer or
judicial employee'' after ``Federal Government''; and
(C) in subparagraph (C)--
(i) in the matter preceding clause (i), by
inserting ``or by Congress or by the
judiciary''--
(I) before ``that may affect''; and
(II) before ``in a manner''; and
(ii) in clause (iii), by inserting ``to
Congress, any Member of Congress, any employee
of Congress, any judicial officer, or any
judicial employee,'' after ``Federal
Government,''.
SEC. 6. PROMPT REPORTING OF FINANCIAL TRANSACTIONS.
(a) Reporting Requirement.--Section 103 of the Ethics in Government
Act of 1978 (5 U.S.C. App. 103) is amended by adding at the end the
following subsection:
``(l) Not later than 30 days after receiving notification of any
transaction required to be reported under section 102(a)(5)(B), but in
no case later than 45 days after such transaction, the following
persons, if required to file a report under any subsection of section
101, subject to any waivers and exclusions, shall file a report of the
transaction:
``(1) The President.
``(2) The Vice President.
``(3) Each officer or employee in the executive branch,
including a special Government employee as defined in section
202 of title 18, United States Code, who occupies a position
classified above GS-15 of the General Schedule or, in the case
of positions not under the General Schedule, for which the rate
of basic pay is equal to or greater than 120 percent of the
minimum rate of basic pay payable for GS-15 of the General
Schedule; each member of a uniformed service whose pay grade is
at or in excess of O-7 under section 201 of title 37, United
States Code; and each officer or employee in any other position
determined by the Director of the Office of Government Ethics
to be of equal classification.
``(4) Each employee appointed pursuant to section 3105 of
title 5, United States Code.
``(5) Any employee not described in paragraph (3) who is in
a position in the executive branch which is excepted from the
competitive service by reason of being of a confidential or
policymaking character, except that the Director of the Office
of Government Ethics may, by regulation, exclude from the
application of this paragraph any individual, or group of
individuals, who are in such positions, but only in cases in
which the Director determines such exclusion would not affect
adversely the integrity of the Government or the public's
confidence in the integrity of the Government.
``(6) The Postmaster General, the Deputy Postmaster
General, each Governor of the Board of Governors of the United
States Postal Service and each officer or employee of the
United States Postal Service or Postal Regulatory Commission
who occupies a position for which the rate of basic pay is
equal to or greater than 120 percent of the minimum rate of
basic pay payable for GS-15 of the General Schedule.
``(7) The Director of the Office of Government Ethics and
each designated agency ethics official.
``(8) Any civilian employee not described in paragraph (3),
employed in the Executive Office of the President (other than a
special government employee) who holds a commission of
appointment from the President.
``(9) A Member of Congress, as defined under section
109(12).
``(10) An officer or employee of the Congress, as defined
under section 109(13).''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to transactions occurring on or after the date that is 90 days
after the date of enactment of this Act.
SEC. 7. REPORT ON POLITICAL INTELLIGENCE ACTIVITIES.
(a) Report.--
(1) In general.--Not later than 12 months after the date of
enactment of this Act, the Comptroller General of the United
States, in consultation with the Congressional Research
Service, shall submit to the Committee on Homeland Security and
Governmental Affairs of the Senate and the Committee on
Oversight and Government Reform and the Committee on the
Judiciary of the House of Representatives a report on the role
of political intelligence in the financial markets.
(2) Contents.--The report required by this section shall
include a discussion of--
(A) what is known about the prevalence of the sale
of political intelligence and the extent to which
investors rely on such information;
(B) what is known about the effect that the sale of
political intelligence may have on the financial
markets;
(C) the extent to which information which is being
sold would be considered nonpublic information;
(D) the legal and ethical issues that may be raised
by the sale of political intelligence;
(E) any benefits from imposing disclosure
requirements on those who engage in political
intelligence activities; and
(F) any legal and practical issues that may be
raised by the imposition of disclosure requirements on
those who engage in political intelligence activities.
(b) Definition.--For purposes of this section, the term ``political
intelligence'' shall mean information that is--
(1) derived by a person from direct communications with an
executive branch employee, a Member of Congress, or an employee
of Congress; and
(2) provided in exchange for financial compensation to a
client who intends, and who is known to intend, to use the
information to inform investment decisions.
SEC. 8. PUBLIC FILING AND DISCLOSURE OF FINANCIAL DISCLOSURE FORMS OF
MEMBERS OF CONGRESS AND CONGRESSIONAL STAFF.
(a) Public, Online Disclosure of Financial Disclosure Forms of
Members of Congress and Congressional Staff.--
(1) In general.--Not later than August 31, 2012, or 90 days
after the date of enactment of this Act, whichever is later,
the Secretary of the Senate and the Sergeant at Arms of the
Senate, and the Clerk of the House of Representatives, shall
ensure that financial disclosure forms filed by Members of
Congress, candidates for Congress, and employees of Congress in
calendar year 2012 and in subsequent years pursuant to title I
of the Ethics in Government Act of 1978 are made available to
the public on the respective official websites of the Senate
and the House of Representatives not later than 30 days after
such forms are filed.
(2) Extensions.--Notices of extension for financial
disclosure shall be made available electronically under this
subsection along with its related disclosure.
(3) Reporting transactions.--In the case of a transaction
disclosure required by section 103(l) of the Ethics in
Government Act of 1978, as added by this Act, such disclosure
shall be filed not later than the date required by that
section. Notices of extension for transaction disclosure shall
be made available electronically under this subsection along
with its related disclosure.
(4) Expiration.--The requirements of this subsection shall
expire upon implementation of the public disclosure system
established under subsection (b).
(b) Electronic Filing and Online Public Availability of Financial
Disclosure Forms of Members of Congress, Officers of the House and
Senate, and Congressional Staff.--
(1) In general.--Subject to paragraph (6) and not later
than 18 months after the date of enactment of this Act, the
Secretary of the Senate and the Sergeant at Arms of the Senate
and the Clerk of the House of Representatives shall develop
systems to enable--
(A) electronic filing of reports received by them
pursuant to section 103(h)(1)(A) of title I of the
Ethics in Government Act of 1978; and
(B) public access to financial disclosure reports
filed by Members of Congress, candidates for Congress,
and employees of Congress, as well as reports of a
transaction disclosure required by section 103(l) of
the Ethics in Government Act of 1978, as added by this
Act, notices of extensions, amendments, and blind
trusts, pursuant to title I of the Ethics in Government
Act of 1978, through databases that--
(i) are maintained on the official websites
of the House of Representatives and the Senate;
and
(ii) allow the public to search, sort, and
download data contained in the reports.
(2) Login.--No login shall be required to search or sort
the data contained in the reports made available by this
subsection. A login protocol with the name of the user shall be
utilized by a person downloading data contained in the reports.
For purposes of filings under this section, section 105(b)(2)
of the Ethics in Government Act of 1978 does not apply.
(3) Public availability.--Pursuant to section 105(b)(1) of
the Ethics in Government Act of 1978, electronic availability
on the official websites of the Senate and the House of
Representatives under this subsection shall be deemed to have
met the public availability requirement.
(4) Filers covered.--Individuals required under the Ethics
in Government Act of 1978 or the Senate Rules to file financial
disclosure reports with the Secretary of the Senate or the
Clerk of the House of Representatives shall file reports
electronically using the systems developed by the Secretary of
the Senate, the Sergeant at Arms of the Senate, and the Clerk
of the House of Representatives.
(5) Extensions.--Notices of extension for financial
disclosure shall be made available electronically under this
subsection along with its related disclosure.
(6) Additional time.--The requirements of this subsection
may be implemented after the date provided in paragraph (1) if
the Secretary of the Senate or the Clerk of the House of
Representatives identifies in writing to relevant congressional
committees the additional time needed for such implementation.
(c) Recordkeeping.--Section 105(d) of the Ethics in Government Act
of 1978 (5 U.S.C. App. 105(d)) is amended to read as follows:
``(d)(1) Any report filed with or transmitted to an agency or
supervising ethics office or to the Clerk of the House of
Representatives or the Secretary of the Senate pursuant to this title
shall be retained by such agency or office or by the Clerk of the House
of Representatives or the Secretary of the Senate, as the case may be.
``(2) Such report shall be made available to the public--
``(A) in the case of a Member of Congress until a date that
is 6 years from the date the individual ceases to be a Member
of Congress; and
``(B) in the case of all other reports filed pursuant to
this title, for a period of 6 years after receipt of the
report.
``(3) After the relevant time period identified under paragraph
(2), the report shall be destroyed unless needed in an ongoing
investigation, except that in the case of an individual who filed the
report pursuant to section 101(b) and was not subsequently confirmed by
the Senate, or who filed the report pursuant to section 101(c) and was
not subsequently elected, such reports shall be destroyed 1 year after
the individual either is no longer under consideration by the Senate or
is no longer a candidate for nomination or election to the Office of
President, Vice President, or as a Member of Congress, unless needed in
an ongoing investigation or inquiry.''.
SEC. 9. OTHER FEDERAL OFFICIALS.
(a) Prohibition of the Use of Nonpublic Information for Private
Profit.--
(1) Executive branch employees.--The Office of Government
Ethics shall issue such interpretive guidance of the relevant
Federal ethics statutes and regulations, including the
Standards of Ethical Conduct for executive branch employees,
related to use of nonpublic information, as necessary to
clarify that no executive branch employee may use nonpublic
information derived from such person's position as an executive
branch employee or gained from the performance of such person's
official responsibilities as a means for making a private
profit.
(2) Judicial officers.--The Judicial Conference of the
United States shall issue such interpretive guidance of the
relevant ethics rules applicable to Federal judges, including
the Code of Conduct for United States Judges, as necessary to
clarify that no judicial officer may use nonpublic information
derived from such person's position as a judicial officer or
gained from the performance of such person's official
responsibilities as a means for making a private profit.
(3) Judicial employees.--The Judicial Conference of the
United States shall issue such interpretive guidance of the
relevant ethics rules applicable to judicial employees as
necessary to clarify that no judicial employee may use
nonpublic information derived from such person's position as a
judicial employee or gained from the performance of such
person's official responsibilities as a means for making a
private profit.
(b) Application of Insider Trading Laws.--
(1) Affirmation of non-exemption.--Executive branch
employees, judicial officers, and judicial employees are not
exempt from the insider trading prohibitions arising under the
securities laws, including section 10(b) of the Securities
Exchange Act of 1934 and Rule 10b-5 thereunder.
(2) Duty.--
(A) Purpose.--The purpose of the amendment made by
this paragraph is to affirm a duty arising from a
relationship of trust and confidence owed by each
executive branch employee, judicial officer, and
judicial employee.
(B) Amendment.--Section 21A of the Securities
Exchange Act of 1934 (15 U.S.C. 78u-1), as amended by
this Act, is amended by adding at the end the
following:
``(h) Duty of Other Federal Officials.--
``(1) In general.--Subject to the rule of construction
under section 10 of the STOCK Act and solely for purposes of
the insider trading prohibitions arising under this Act,
including section 10(b), and Rule 10b-5 thereunder, each
executive branch employee, each judicial officer, and each
judicial employee owes a duty arising from a relationship of
trust and confidence to the United States Government and the
citizens of the United States with respect to material,
nonpublic information derived from such person's position as an
executive branch employee, judicial officer, or judicial
employee or gained from the performance of such person's
official responsibilities.
``(2) Definitions.--In this subsection--
``(A) the term `executive branch employee'--
``(i) has the meaning given the term
`employee' under section 2105 of title 5,
United States Code;
``(ii) includes--
``(I) the President;
``(II) the Vice President; and
``(III) an employee of the United
States Postal Service or the Postal
Regulatory Commission;
``(B) the term `judicial employee' has the meaning
given that term in section 109(8) of the Ethics in
Government Act of 1978 (5 U.S.C. App. 109(8)); and
``(C) the term `judicial officer' has the meaning
given that term under section 109(10) of the Ethics in
Government Act of 1978 (5 U.S.C. App. 109(10)).
``(3) Rule of construction.--Nothing in this subsection
shall be construed to impair or limit the construction of the
existing antifraud provisions of the securities laws or the
authority of the Commission under those provisions.''.
SEC. 10. RULE OF CONSTRUCTION.
Nothing in this Act, the amendments made by this Act, or the
interpretive guidance to be issued pursuant to sections 3 and 9 of this
Act, shall be construed to--
(1) impair or limit the construction of the antifraud
provisions of the securities laws or the Commodity Exchange Act
or the authority of the Securities and Exchange Commission or
the Commodity Futures Trading Commission under those
provisions;
(2) be in derogation of the obligations, duties, and
functions of a Member of Congress, an employee of Congress, an
executive branch employee, a judicial officer, or a judicial
employee, arising from such person's official position; or
(3) be in derogation of existing laws, regulations, or
ethical obligations governing Members of Congress, employees of
Congress, executive branch employees, judicial officers, or
judicial employees.
SEC. 11. EXECUTIVE BRANCH REPORTING.
(a) Executive Branch Reporting.--
(1) In general.--Not later than August 31, 2012, or 90 days
after the date of enactment of this Act, whichever is later,
the President shall ensure that financial disclosure forms
filed pursuant to title I of the Ethics in Government Act of
1978 (5 U.S.C. App. 101 et seq.), in calendar year 2012 and in
subsequent years, by executive branch employees specified in
section 101 of that Act are made available to the public on the
official websites of the respective executive branch agencies
not later than 30 days after such forms are filed.
(2) Extensions.--Notices of extension for financial
disclosure shall be made available electronically along with
the related disclosure.
(3) Reporting transactions.--In the case of a transaction
disclosure required by section 103(l) of the Ethics in
Government Act of 1978, as added by this Act, such disclosure
shall be filed not later than the date required by that
section. Notices of extension for transaction disclosure shall
be made available electronically under this subsection along
with its related disclosure.
(4) Expiration.--The requirements of this subsection shall
expire upon implementation of the public disclosure system
established under subsection (b).
(b) Electronic Filing and Online Public Availability of Financial
Disclosure Forms of Certain Executive Branch Employees.--
(1) In general.--Subject to paragraph (6), and not later
than 18 months after the date of enactment of this Act, the
President, acting through the Director of the Office of
Government Ethics, shall develop systems to enable--
(A) electronic filing of reports required by
section 103 of the Ethics in Government Act of 1978 (5
U.S.C. App. 103), other than subsection (h) of such
section; and
(B) public access to financial disclosure reports
filed by executive branch employees required to file
under section 101 of that Act (5 U.S.C. App. 101), as
well as reports of a transaction disclosure required by
section 103(l) of that Act, as added by this Act,
notices of extensions, amendments, and blind trusts,
pursuant to title I of that Act, through databases
that--
(i) are maintained on the official website
of the Office of Government Ethics; and
(ii) allow the public to search, sort, and
download data contained in the reports.
(2) Login.--No login shall be required to search or sort
the data contained in the reports made available by this
subsection. A login protocol with the name of the user shall be
utilized by a person downloading data contained in the reports.
For purposes of filings under this section, section 105(b)(2)
of the Ethics in Government Act of 1978 (5 U.S.C. App.
105(b)(2)) does not apply.
(3) Public availability.--Pursuant to section 105(b)(1) of
the Ethics in Government Act of 1978 (5 U.S.C. App. 105(b)(1)),
electronic availability on the official website of the Office
of Government Ethics under this subsection shall be deemed to
have met the public availability requirement.
(4) Filers covered.--Executive branch employees required
under title I of the Ethics in Government Act of 1978 to file
financial disclosure reports shall file the reports
electronically with their supervising ethics office.
(5) Extensions.--Notices of extension for financial
disclosure shall be made available electronically under this
subsection along with its related disclosure.
(6) Additional time.--The requirements of this subsection
may be implemented after the date provided in paragraph (1) if
the Director of the Office of Government Ethics, after
consultation with the Clerk of the House of Representatives and
Secretary of the Senate, identifies in writing to relevant
congressional committees the additional time needed for such
implementation.
SEC. 12. PARTICIPATION IN INITIAL PUBLIC OFFERINGS.
Section 21A of the Securities Exchange Act of 1934 (15 U.S.C. 78u-
1), as amended by this Act, is further amended by adding at the end the
following:
``(i) Participation in Initial Public Offerings.--An individual
described in section 101(f) of the Ethics in Government Act of 1978 may
not purchase securities that are the subject of an initial public
offering (within the meaning given such term in section 12(f)(1)(G)(i))
in any manner other than is available to members of the public
generally.''.
SEC. 13. REQUIRING MORTGAGE DISCLOSURE.
(a) Requiring Disclosure.--Section 102(a)(4)(A) of the Ethics in
Government Act of 1978 (5 U.S.C. App. 102(a)(4)(A)) is amended by
striking ``spouse; and'' and inserting the following: ``spouse, except
that this exception shall not apply to a reporting individual--
``(i) described in paragraph (1), (2), or
(9) of section 101(f);
``(ii) described in section 101(b) who has
been nominated for appointment as an officer or
employee in the executive branch described in
subsection (f) of such section, other than--
``(I) an individual appointed to a
position--
``(aa) as a Foreign Service
Officer below the rank of
ambassador; or
``(bb) in the uniformed
services for which the pay
grade prescribed by section 201
of title 37, United States Code
is O-6 or below; or
``(II) a special government
employee, as defined under section 202
of title 18, United States Code; or
``(iii) described in section 101(f) who is
in a position in the executive branch the
appointment to which is made by the President
and requires advice and consent of the Senate,
other than--
``(I) an individual appointed to a
position--
``(aa) as a Foreign Service
Officer below the rank of
ambassador; or
``(bb) in the uniformed
services for which the pay
grade prescribed by section 201
of title 37, United States Code
is O-6 or below; or
``(II) a special government
employee, as defined under section 202
of title 18, United States Code; and''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply with respect to reports which are required to be filed under
section 101 of the Ethics of Government Act of 1978 on or after the
date of the enactment of this Act.
SEC. 14. TRANSACTION REPORTING REQUIREMENTS.
The transaction reporting requirements established by section
103(l) of the Ethics in Government Act of 1978, as added by section 6
of this Act, shall not be construed to apply to a widely held
investment fund (whether such fund is a mutual fund, regulated
investment company, pension or deferred compensation plan, or other
investment fund), if--
(1)(A) the fund is publicly traded; or
(B) the assets of the fund are widely diversified; and
(2) the reporting individual neither exercises control over
nor has the ability to exercise control over the financial
interests held by the fund.
SEC. 15. APPLICATION TO OTHER ELECTED OFFICIALS AND CRIMINAL OFFENSES.
(a) Application to Other Elected Officials.--
(1) Civil service retirement system.--Section 8332(o)(2)(A)
of title 5, United States Code, is amended--
(A) in clause (i), by inserting ``, the President,
the Vice President, or an elected official of a State
or local government'' after ``Member''; and
(B) in clause (ii), by inserting ``, the President,
the Vice President, or an elected official of a State
or local government'' after ``Member''.
(2) Federal employees retirement system.--Section
8411(l)(2) of title 5, United States Code, is amended--
(A) in subparagraph (A), by inserting ``, the
President, the Vice President, or an elected official
of a State or local government'' after ``Member''; and
(B) in subparagraph (B), by inserting ``, the
President, the Vice President, or an elected official
of a State or local government'' after ``Member''.
(b) Criminal Offenses.--Section 8332(o)(2) of title 5, United
States Code, is amended--
(1) in subparagraph (A), by striking clause (iii) and
inserting the following:
``(iii) The offense--
``(I) is committed after the date of enactment of
this subsection and--
``(aa) is described under subparagraph
(B)(i), (iv), (xvi), (xix), (xxiii), (xxiv), or
(xxvi); or
``(bb) is described under subparagraph
(B)(xxix), (xxx), or (xxxi), but only with
respect to an offense described under
subparagraph (B)(i), (iv), (xvi), (xix),
(xxiii), (xxiv), or (xxvi); or
``(II) is committed after the date of enactment of
the STOCK Act and--
``(aa) is described under subparagraph
(B)(ii), (iii), (v), (vi), (vii), (viii), (ix),
(x), (xi), (xii), (xiii), (xiv), (xv), (xvii),
(xviii), (xx), (xxi), (xxii), (xxv), (xxvii),
or (xxviii); or
``(bb) is described under subparagraph
(B)(xxix), (xxx), or (xxxi), but only with
respect to an offense described under
subparagraph (B)(ii), (iii), (v), (vi), (vii),
(viii), (ix), (x), (xi), (xii), (xiii), (xiv),
(xv), (xvii), (xviii), (xx), (xxi), (xxii),
(xxv), (xxvii), or (xxviii).''; and
(2) by striking subparagraph (B) and inserting the
following:
``(B) An offense described in this subparagraph is only the
following, and only to the extent that the offense is a felony:
``(i) An offense under section 201 of title 18 (relating to
bribery of public officials and witnesses).
``(ii) An offense under section 203 of title 18 (relating
to compensation to Member of Congress, officers, and others in
matters affecting the Government).
``(iii) An offense under section 204 of title 18 (relating
to practice in the United States Court of Federal Claims or the
United States Court of Appeals for the Federal Circuit by
Member of Congress).
``(iv) An offense under section 219 of title 18 (relating
to officers and employees acting as agents of foreign
principals).
``(v) An offense under section 286 of title 18 (relating to
conspiracy to defraud the Government with respect to claims).
``(vi) An offense under section 287 of title 18 (relating
to false, fictitious or fraudulent claims).
``(vii) An offense under section 597 of title 18 (relating
to expenditures to influence voting).
``(viii) An offense under section 599 of title 18 (relating
to promise of appointment by candidate).
``(ix) An offense under section 602 of title 18 (relating
to solicitation of political contributions).
``(x) An offense under section 606 of title 18 (relating to
intimidation to secure political contributions).
``(xi) An offense under section 607 of title 18 (relating
to place of solicitation).
``(xii) An offense under section 641 of title 18 (relating
to public money, property or records).
``(xiii) An offense under section 666 of title 18 (relating
to theft or bribery concerning programs receiving Federal
funds).
``(xiv) An offense under section 1001 of title 18 (relating
to statements or entries generally).
``(xv) An offense under section 1341 of title 18 (relating
to frauds and swindles, including as part of a scheme to
deprive citizens of honest services thereby).
``(xvi) An offense under section 1343 of title 18 (relating
to fraud by wire, radio, or television, including as part of a
scheme to deprive citizens of honest services thereby).
``(xvii) An offense under section 1503 of title 18
(relating to influencing or injuring officer or juror).
``(xviii) An offense under section 1505 of title 18
(relating to obstruction of proceedings before departments,
agencies, and committees).
``(xix) An offense under section 1512 of title 18 (relating
to tampering with a witness, victim, or an informant).
``(xx) An offense under section 1951 of title 18 (relating
to interference with commerce by threats of violence).
``(xxi) An offense under section 1952 of title 18 (relating
to interstate and foreign travel or transportation in aid of
racketeering enterprises).
``(xxii) An offense under section 1956 of title 18
(relating to laundering of monetary instruments).
``(xxiii) An offense under section 1957 of title 18
(relating to engaging in monetary transactions in property
derived from specified unlawful activity).
``(xxiv) An offense under chapter 96 of title 18 (relating
to racketeer influenced and corrupt organizations).
``(xxv) An offense under section 7201 of the Internal
Revenue Code of 1986 (relating to attempt to evade or defeat
tax).
``(xxvi) An offense under section 104(a) of the Foreign
Corrupt Practices Act of 1977 (relating to prohibited foreign
trade practices by domestic concerns).
``(xxvii) An offense under section 10(b) of the Securities
Exchange Act of 1934 (relating to fraud, manipulation, or
insider trading of securities).
``(xxviii) An offense under section 4c(a) of the Commodity
Exchange Act (7 U.S.C. 6c(a)) (relating to fraud, manipulation,
or insider trading of commodities).
``(xxix) An offense under section 371 of title 18 (relating
to conspiracy to commit offense or to defraud United States),
to the extent of any conspiracy to commit an act which
constitutes--
``(I) an offense under clause (i), (ii), (iii),
(iv), (v), (vi), (vii), (viii), (ix), (x), (xi), (xii),
(xiii), (xiv), (xv), (xvi), (xvii), (xviii), (xix),
(xx), (xxi), (xxii), (xxiii), (xxiv), (xxv), (xxvi),
(xxvii), or (xxviii); or
``(II) an offense under section 207 of title 18
(relating to restrictions on former officers,
employees, and elected officials of the executive and
legislative branches).
``(xxx) Perjury committed under section 1621 of title 18 in
falsely denying the commission of an act which constitutes--
``(I) an offense under clause (i), (ii), (iii),
(iv), (v), (vi), (vii), (viii), (ix), (x), (xi), (xii),
(xiii), (xiv), (xv), (xvi), (xvii), (xviii), (xix),
(xx), (xxi), (xxii), (xxiii), (xxiv), (xxv), (xxvi),
(xxvii), or (xxviii); or
``(II) an offense under clause (xxix), to the
extent provided in such clause.
``(xxxi) Subornation of perjury committed under section
1622 of title 18 in connection with the false denial or false
testimony of another individual as specified in clause
(xxx).''.
SEC. 16. LIMITATION ON BONUSES TO EXECUTIVES OF FANNIE MAE AND FREDDIE
MAC.
Notwithstanding any other provision in law, senior executives at
the Federal National Mortgage Association and the Federal Home Loan
Mortgage Corporation are prohibited from receiving bonuses during any
period of conservatorship for those entities on or after the date of
enactment of this Act.
SEC. 17. POST-EMPLOYMENT NEGOTIATION RESTRICTIONS.
(a) Restriction Extended to Executive and Judicial Branches.--
Notwithstanding any other provision of law, an individual required to
file a financial disclosure report under section 101 of the Ethics in
Government Act of 1978 (5 U.S.C. App. 101) may not directly negotiate
or have any agreement of future employment or compensation unless such
individual, within 3 business days after the commencement of such
negotiation or agreement of future employment or compensation, files
with the individual's supervising ethics office a statement, signed by
such individual, regarding such negotiations or agreement, including
the name of the private entity or entities involved in such
negotiations or agreement, and the date such negotiations or agreement
commenced.
(b) Recusal.--An individual filing a statement under subsection (a)
shall recuse himself or herself whenever there is a conflict of
interest, or appearance of a conflict of interest, for such individual
with respect to the subject matter of the statement, and shall notify
the individual's supervising ethics office of such recusal. An
individual making such recusal shall, upon such recusal, submit to the
supervising ethics office the statement under subsection (a) with
respect to which the recusal was made.
SEC. 18. WRONGFULLY INFLUENCING PRIVATE ENTITIES EMPLOYMENT DECISIONS
BY LEGISLATIVE AND EXECUTIVE BRANCH OFFICERS AND
EMPLOYEES.
(a) In General.--Section 227 of title 18, United States Code, is
amended--
(1) in the heading of such section, by inserting after
``Congress'' the following: ``or an officer or employee of the
legislative or executive branch'';
(2) by striking ``Whoever'' and inserting ``(a) Whoever'';
(3) by striking ``a Senator or Representative in, or a
Delegate or Resident Commissioner to, the Congress or an
employee of either House of Congress'' and inserting ``a
covered government person''; and
(4) by adding at the end the following:
``(b) In this section, the term `covered government person' means--
``(1) a Senator or Representative in, or a Delegate or
Resident Commissioner to, the Congress;
``(2) an employee of either House of Congress; or
``(3) the President, Vice President, an employee of the
United States Postal Service or the Postal Regulatory
Commission, or any other executive branch employee (as such
term is defined under section 2105 of title 5, United States
Code).''.
(b) Clerical Amendment.--The table of contents for chapter 11 of
title 18, United States Code, is amended by amending the item relating
to section 227 to read as follows:
``227. Wrongfully influencing a private entity's employment decisions
by a Member of Congress or an officer or
employee of the legislative or executive
branch.''.
SEC. 19. MISCELLANEOUS CONFORMING AMENDMENTS.
(a) Repeal of Transmission of Copies of Member and Candidate
Reports to State Election Officials Upon Adoption of New Systems.--
Section 103(i) of the Ethics in Government Act of 1978 (5 U.S.C. App.
103(i)) is amended--
(1) by striking ``(i)'' and inserting ``(i)(1)''; and
(2) by adding at the end the following new paragraph:
``(2) The requirements of paragraph (1) do not apply to any report
filed under this title which is filed electronically and for which
there is online public access, in accordance with the systems developed
by the Secretary and Sergeant at Arms of the Senate and the Clerk of
the House of Representatives under section 8(b) of the Stop Trading on
Congressional Knowledge Act of 2012.''.
(b) Period of Retention of Financial Disclosure Statements of
Members of the House.--
(1) In general.--Section 304(c) of the Honest Leadership
and Open Government Act of 2007 (2 U.S.C. 104e(c)) is amended
by striking the period at the end and inserting the following:
``, or, in the case of reports filed under section 103(h)(1) of
the Ethics in Government Act of 1978, until the expiration of
the 6-year period which begins on the date the individual is no
longer a Member of Congress.''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply with respect to any report which is filed on or
after the date on which the systems developed by the Secretary
and Sergeant at Arms of the Senate and the Clerk of the House
of Representatives under section 8(b) first take effect.
Attest:
Clerk.
112th CONGRESS
2d Session
S. 2038
_______________________________________________________________________
AMENDMENT