[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 2038 Enrolled Bill (ENR)]

        S.2038

                      One Hundred Twelfth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
            the third day of January, two thousand and twelve


                                 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.

    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 ``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.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.