[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 2038 Engrossed in Senate (ES)]
112th CONGRESS
2d Session
S. 2038
_______________________________________________________________________
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) an employee of the Senate; or
(B) an employee of the House of Representatives.
(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.
SEC. 3. PROHIBITION OF THE USE OF NONPUBLIC INFORMATION FOR PRIVATE
PROFIT.
The Select Committee on Ethics of the Senate and the Committee on
Standards of Official Conduct 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 Non-exemption.--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.--For purposes of the insider trading
prohibitions arising under the securities laws, 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) an employee of the Senate; or
``(ii) an employee of the House of
Representatives.
``(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 (defined in this subsection as
those terms are defined in section 2 of the Stop
Trading on Congressional Knowledge Act of 2012)'' after
``Federal Government,'' the first place it appears;
(B) by inserting ``Member,'' after ``position of
the''; and
(C) by inserting ``or by Congress'' 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'' after
``Federal Government,'' the first place it
appears;
(ii) by inserting ``Member,'' after
``position of the''; and
(iii) by inserting ``or by Congress''
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'' after ``Federal Government,'';
and
(C) in subparagraph (C)--
(i) in the matter preceding clause (i), by
inserting ``or by Congress''--
(I) before ``that may affect''; and
(II) before ``in a manner''; and
(ii) in clause (iii), by inserting ``to
Congress, or any Member of Congress or employee
of Congress'' after ``Federal Government''.
SEC. 6. PROMPT REPORTING OF FINANCIAL TRANSACTIONS.
(a) Reporting Requirement.--Section 101 of the Ethics in Government
Act of 1978 is amended by adding at the end the following subsection:
``(j) Not later than 30 days after any transaction required to be
reported under section 102(a)(5)(B), the following persons, if required
to file a report under any other subsection of this section subject to
any waivers and exclusions, shall file a report of the transaction:
``(1) A Member of Congress.
``(2) An officer or employee of Congress required to file a
report under this section.
``(3) The President.
``(4) The Vice President.
``(5) Each employee appointed to a position in the
executive branch, the appointment to which requires advice and
consent of the Senate, except for--
``(A) an individual appointed to a position--
``(i) as a Foreign Service Officer below
the rank of ambassador; or
``(ii) 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
``(B) a special government employee, as defined
under section 202 of title 18, United States Code.
``(6) Any employee in a position in the executive branch
who is a noncareer appointee in the Senior Executive Service
(as defined under section 3132(a)(7) of title 5, United States
Code) or a similar personnel system for senior employees in the
executive branch, such as the Senior Foreign Service, 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.
``(7) The Director of the Office of Government Ethics.
``(8) Any civilian employee, not described in paragraph
(5), employed in the Executive Office of the President (other
than a special government employee) who holds a commission of
appointment from the President.''.
(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 non-public 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, On-line 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, officers of the House and Senate, candidates for
Congress, and employees of the Senate and the House of
Representatives 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.--The existing protocol allowing for
extension requests for financial disclosures shall be retained.
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 101(j) of the Ethics in
Government Act of 1978, as added by this Act, such disclosures
shall be filed not later than 30 days after the transaction.
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 On-line 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, Officers of the House and
Senate, candidates for Congress, and employees of the
Senate and House of Representatives, as well as reports
of a transaction disclosure required by section 101(j)
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
title I 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 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.
(5) Extensions.--The existing protocol allowing for
extension requests for financial disclosures shall be retained
for purposes of this subsection. 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 identify
in writing to relevant congressional committees an additional
amount of time needed.
(c) Recordkeeping.--Section 105(d) of the Ethics in Government Act
of 1978 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 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 six 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 non-public
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 non-public 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.
(b) Application of Insider Trading Laws.--
(1) Affirmation of non-exemption.--Executive branch
employees and judicial officers 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 and judicial officer.
(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.--For purposes of the insider trading
prohibitions arising under the securities laws, including
section 10(b), and Rule 10b-5 thereunder, each executive branch
employee and each judicial officer 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 or judicial officer 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; and
``(B) the term `judicial officer' has the meaning
given that term under section 109(10) of the Ethics in
Government Act of 1978.
``(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 Commodities 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 or a judicial officer, 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 or judicial officers.
SEC. 11. EXECUTIVE BRANCH REPORTING.
Not later than 2 years after the date of enactment of this Act, the
President shall--
(1) ensure that financial disclosure forms filed by
officers and employees referred to in section 101(j) of the
Ethics in Government Act of 1978 (5 U.S.C. App.) are made
available to the public as required by section 8(a) on
appropriate official websites of agencies of the executive
branch; and
(2) develop systems to enable electronic filing and public
access, as required by section 8(b), to the financial
disclosure forms of such individuals.
SEC. 12. PROMPT REPORTING AND PUBLIC FILING OF FINANCIAL TRANSACTIONS
FOR EXECUTIVE BRANCH.
(a) Transaction Reporting.--Each agency or department of the
Executive branch and each independent agency shall comply with the
provisions of sections 6 with respect to any of such agency, department
or independent agency's officers and employees that are subject to the
disclosure provisions under the Ethics in Government Act of 1978.
(b) Public Availability.--Not later than 2 years after the date of
enactment of this Act, each agency or department of the Executive
branch and each independent agency shall comply with the provisions of
section 8, except that the provisions of section 8 shall not apply to a
member of a uniformed service for which the pay grade prescribed by
section 201 of title 37, United States Code is O-6 or below.
SECTION 13. REQUIRING MORTGAGE DISCLOSURE.
Section 102(a)(4)(A) of the Ethics in Government Act of 1978 (5
U.S.C. App) 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''.
SEC. 14. TRANSACTION REPORTING REQUIREMENTS.
The transaction reporting requirements established by section
101(j) 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. DISCLOSURE OF POLITICAL INTELLIGENCE ACTIVITIES UNDER LOBBYING
DISCLOSURE ACT.
(a) Definitions.--Section 3 of the Lobbying Disclosure Act of 1995
(2 U.S.C. 1602) is amended--
(1) in paragraph (2)--
(A) by inserting after ``lobbying activities'' each
place that term appears the following: ``or political
intelligence activities''; and
(B) by inserting after ``lobbyists'' the following:
``or political intelligence consultants''; and
(2) by adding at the end the following new paragraphs:
``(17) Political intelligence activities.--The term
`political intelligence activities' means political
intelligence contacts and efforts in support of such contacts,
including preparation and planning activities, research, and
other background work that is intended, at the time it is
performed, for use in contacts, and coordination with such
contacts and efforts of others.
``(18) Political intelligence contact.--
``(A) Definition.--The term `political intelligence
contact' means any oral or written communication
(including an electronic communication) to or from a
covered executive branch official or a covered
legislative branch official, the information derived
from which is intended for use in analyzing securities
or commodities markets, or in informing investment
decisions, and which is made on behalf of a client with
regard to--
``(i) the formulation, modification, or
adoption of Federal legislation (including
legislative proposals);
``(ii) the formulation, modification, or
adoption of a Federal rule, regulation,
Executive order, or any other program, policy,
or position of the United States Government; or
``(iii) the administration or execution of
a Federal program or policy (including the
negotiation, award, or administration of a
Federal contract, grant, loan, permit, or
license).
``(B) Exception.--The term `political intelligence
contact' does not include a communication that is made
by or to a representative of the media if the purpose
of the communication is gathering and disseminating
news and information to the public.
``(19) Political intelligence firm.--The term `political
intelligence firm' means a person or entity that has 1 or more
employees who are political intelligence consultants to a
client other than that person or entity.
``(20) Political intelligence consultant.--The term
`political intelligence consultant' means any individual who is
employed or retained by a client for financial or other
compensation for services that include one or more political
intelligence contacts.''.
(b) Registration Requirement.--Section 4 of the Lobbying Disclosure
Act of 1995 (2 U.S.C. 1603) is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by inserting after ``whichever is
earlier,'' the following: ``or a political
intelligence consultant first makes a political
intelligence contact,''; and
(ii) by inserting after ``such lobbyist''
each place that term appears the following:
``or consultant'';
(B) in paragraph (2), by inserting after
``lobbyists'' each place that term appears the
following: ``or political intelligence consultants'';
and
(C) in paragraph (3)(A)--
(i) by inserting after ``lobbying
activities'' each place that term appears the
following: ``and political intelligence
activities''; and
(ii) in clause (i), by inserting after
``lobbying firm'' the following: ``or political
intelligence firm'';
(2) in subsection (b)--
(A) in paragraph (3), by inserting after ``lobbying
activities'' each place that term appears the
following: ``or political intelligence activities'';
(B) in paragraph (4)--
(i) in the matter preceding subparagraph
(A), by inserting after ``lobbying activities''
the following: ``or political intelligence
activities''; and
(ii) in subparagraph (C), by inserting
after ``lobbying activity'' the following: ``or
political intelligence activity'';
(C) in paragraph (5), by inserting after ``lobbying
activities'' each place that term appears the
following: ``or political intelligence activities'';
(D) in paragraph (6), by inserting after
``lobbyist'' each place that term appears the
following: ``or political intelligence consultant'';
and
(E) in the matter following paragraph (6), by
inserting ``or political intelligence activities''
after ``such lobbying activities'';
(3) in subsection (c)--
(A) in paragraph (1), by inserting after ``lobbying
contacts'' the following: ``or political intelligence
contacts''; and
(B) in paragraph (2)--
(i) by inserting after ``lobbying contact''
the following: ``or political intelligence
contact''; and
(ii) by inserting after ``lobbying
contacts'' the following: ``and political
intelligence contacts''; and
(4) in subsection (d), by inserting after ``lobbying
activities'' each place that term appears the following: ``or
political intelligence activities''.
(c) Reports by Registered Political Intelligence Consultants.--
Section 5 of the Lobbying Disclosure Act of 1995 (2 U.S.C. 1604) is
amended--
(1) in subsection (a), by inserting after ``lobbying
activities'' the following: ``and political intelligence
activities'';
(2) in subsection (b)--
(A) in paragraph (2)--
(i) in the matter preceding subparagraph
(A), by inserting after ``lobbying activities''
the following: ``or political intelligence
activities'';
(ii) in subparagraph (A)--
(I) by inserting after ``lobbyist''
the following: ``or political
intelligence consultant''; and
(II) by inserting after ``lobbying
activities'' the following: ``or
political intelligence activities'';
(iii) in subparagraph (B), by inserting
after ``lobbyists'' the following: ``and
political intelligence consultants''; and
(iv) in subparagraph (C), by inserting
after ``lobbyists'' the following: ``or
political intelligence consultants'';
(B) in paragraph (3)--
(i) by inserting after ``lobbying firm''
the following: ``or political intelligence
firm''; and
(ii) by inserting after ``lobbying
activities'' each place that term appears the
following: ``or political intelligence
activities''; and
(C) in paragraph (4), by inserting after ``lobbying
activities'' each place that term appears the
following: ``or political intelligence activities'';
and
(3) in subsection (d)(1), in the matter preceding
subparagraph (A), by inserting ``or a political intelligence
consultant'' after ``a lobbyist''.
(d) Disclosure and Enforcement.--Section 6(a) of the Lobbying
Disclosure Act of 1995 (2 U.S.C. 1605) is amended--
(1) in paragraph (3)(A), by inserting after ``lobbying
firms'' the following: ``, political intelligence consultants,
political intelligence firms,'';
(2) in paragraph (7), by striking ``or lobbying firm'' and
inserting ``lobbying firm, political intelligence consultant,
or political intelligence firm''; and
(3) in paragraph (8), by striking ``or lobbying firm'' and
inserting ``lobbying firm, political intelligence consultant,
or political intelligence firm''.
(e) Rules of Construction.--Section 8(b) of the Lobbying Disclosure
Act of 1995 (2 U.S.C. 1607(b)) is amended by striking ``or lobbying
contacts'' and inserting ``lobbying contacts, political intelligence
activities, or political intelligence contacts''.
(f) Identification of Clients and Covered Officials.--Section 14 of
the Lobbying Disclosure Act of 1995 (2 U.S.C. 1609) is amended--
(1) in subsection (a)--
(A) in the heading, by inserting ``or Political
Intelligence'' after ``Lobbying'';
(B) by inserting ``or political intelligence
contact'' after ``lobbying contact'' each place that
term appears; and
(C) in paragraph (2), by inserting ``or political
intelligence activity, as the case may be'' after
``lobbying activity'';
(2) in subsection (b)--
(A) in the heading, by inserting ``or Political
Intelligence'' after ``Lobbying'';
(B) by inserting ``or political intelligence
contact'' after ``lobbying contact'' each place that
term appears; and
(C) in paragraph (2), by inserting ``or political
intelligence activity, as the case may be'' after
``lobbying activity''; and
(3) in subsection (c), by inserting ``or political
intelligence contact'' after ``lobbying contact''.
(g) Annual Audits and Reports by Comptroller General.--Section 26
of the Lobbying Disclosure Act of 1995 (2 U.S.C. 1614) is amended--
(1) in subsection (a)--
(A) by inserting ``political intelligence firms,
political intelligence consultants,'' after ``lobbying
firms''; and
(B) by striking ``lobbying registrations'' and
inserting ``registrations'';
(2) in subsection (b)(1)(A), by inserting ``political
intelligence firms, political intelligence consultants,'' after
``lobbying firms''; and
(3) in subsection (c), by inserting ``or political
intelligence consultant'' after ``a lobbyist''.
TITLE II--PUBLIC CORRUPTION PROSECUTION IMPROVEMENTS
SEC. 201. SHORT TITLE.
This title may be cited as the ``Public Corruption Prosecution
Improvements Act of 2012''.
SEC. 202. VENUE FOR FEDERAL OFFENSES.
(a) In General.--The second undesignated paragraph of section
3237(a) of title 18, United States Code, is amended by adding before
the period at the end the following: ``or in any district in which an
act in furtherance of the offense is committed''.
(b) Section Heading.--The heading for section 3237 of title 18,
United States Code, is amended to read as follows:
``SEC. 3237. OFFENSE TAKING PLACE IN MORE THAN ONE DISTRICT.''.
(c) Table of Sections.--The table of sections at the beginning of
chapter 211 of title 18, United States Code, is amended so that the
item relating to section 3237 reads as follows:
``Sec. 3237. Offense taking place in more than one district.''.
SEC. 203. THEFT OR BRIBERY CONCERNING PROGRAMS RECEIVING FEDERAL
FINANCIAL ASSISTANCE.
Section 666(a) of title 18, United States Code, is amended--
(1) by striking ``10 years'' and inserting ``20 years'';
(2) by striking ``$5,000'' the second place and the third
place it appears and inserting ``$1,000'';
(3) by striking ``anything of value'' each place it appears
and inserting ``any thing or things of value''; and
(4) in paragraph (1)(B), by inserting after ``anything''
the following: ``or things''.
SEC. 204. PENALTY FOR SECTION 641 VIOLATIONS.
Section 641 of title 18, United States Code, is amended by striking
``ten years'' and inserting ``15 years''.
SEC. 205. BRIBERY AND GRAFT; CLARIFICATION OF DEFINITION OF ``OFFICIAL
ACT''; CLARIFICATION OF THE CRIME OF ILLEGAL GRATUITIES.
(a) Definition.--Section 201(a) of title 18, United States Code, is
amended--
(1) in paragraph (2), by striking ``and'' at the end;
(2) by amending paragraph (3) to read as follows:
``(3) the term `official act'--
``(A) means any act within the range of official
duty, and any decision or action on any question,
matter, cause, suit, proceeding, or controversy, which
may at any time be pending, or which may by law be
brought before any public official, in such public
official's official capacity or in such official's
place of trust or profit; and
``(B) may be a single act, more than 1 act, or a
course of conduct; and''; and
(3) by adding at the end the following:
``(4) the term `rule or regulation' means a Federal
regulation or a rule of the House of Representatives or the
Senate, including those rules and regulations governing the
acceptance of gifts and campaign contributions.''.
(b) Clarification.--Section 201(c)(1) of title 18, United States
Code, is amended to read as follows:
``(1) otherwise than as provided by law for the proper
discharge of official duty, or by rule or regulation--
``(A) directly or indirectly gives, offers, or
promises any thing or things of value to any public
official, former public official, or person selected to
be a public official for or because of any official act
performed or to be performed by such public official,
former public official, or person selected to be a
public official;
``(B) directly or indirectly, knowingly gives,
offers, or promises any thing or things of value with
an aggregate value of not less than $1000 to any public
official, former public official, or person selected to
be a public official for or because of the official's
or person's official position;
``(C) being a public official, former public
official, or person selected to be a public official,
directly or indirectly, knowingly demands, seeks,
receives, accepts, or agrees to receive or accept any
thing or things of value with an aggregate value of not
less than $1000 for or because of the official's or
person's official position; or
``(D) being a public official, former public
official, or person selected to be a public official,
directly or indirectly demands, seeks, receives,
accepts, or agrees to receive or accept any thing or
things of value for or because of any official act
performed or to be performed by such official or
person;''.
SEC. 206. AMENDMENT OF THE SENTENCING GUIDELINES RELATING TO CERTAIN
CRIMES.
(a) Directive to Sentencing Commission.--Pursuant to its authority
under section 994(p) of title 28, United States Code, and in accordance
with this section, the United States Sentencing Commission forthwith
shall review and, if appropriate, amend its guidelines and its policy
statements applicable to persons convicted of an offense under section
201, 641, 1346A, or 666 of title 18, United States Code, in order to
reflect the intent of Congress that such penalties meet the
requirements in subsection (b) of this section.
(b) Requirements.--In carrying out this subsection, the Commission
shall--
(1) ensure that the sentencing guidelines and policy
statements reflect Congress's intent that the guidelines and
policy statements reflect the serious nature of the offenses
described in paragraph (1), the incidence of such offenses, and
the need for an effective deterrent and appropriate punishment
to prevent such offenses;
(2) consider the extent to which the guidelines may or may
not appropriately account for--
(A) the potential and actual harm to the public and
the amount of any loss resulting from the offense;
(B) the level of sophistication and planning
involved in the offense;
(C) whether the offense was committed for purposes
of commercial advantage or private financial benefit;
(D) whether the defendant acted with intent to
cause either physical or property harm in committing
the offense;
(E) the extent to which the offense represented an
abuse of trust by the offender and was committed in a
manner that undermined public confidence in the
Federal, State, or local government; and
(F) whether the violation was intended to or had
the effect of creating a threat to public health or
safety, injury to any person or even death;
(3) assure reasonable consistency with other relevant
directives and with other sentencing guidelines;
(4) account for any additional aggravating or mitigating
circumstances that might justify exceptions to the generally
applicable sentencing ranges;
(5) make any necessary conforming changes to the sentencing
guidelines; and
(6) assure that the guidelines adequately meet the purposes
of sentencing as set forth in section 3553(a)(2) of title 18,
United States Code.
SEC. 207. EXTENSION OF STATUTE OF LIMITATIONS FOR SERIOUS PUBLIC
CORRUPTION OFFENSES.
(a) In General.--Chapter 213 of title 18, United States Code, is
amended by adding at the end the following:
``Sec. 3302. Corruption offenses
``Unless an indictment is returned or the information is filed
against a person within 6 years after the commission of the offense, a
person may not be prosecuted, tried, or punished for a violation of, or
a conspiracy or an attempt to violate the offense in--
``(1) section 201 or 666;
``(2) section 1341 or 1343, when charged in conjunction
with section 1346 and where the offense involves a scheme or
artifice to deprive another of the intangible right of honest
services of a public official;
``(3) section 1951, if the offense involves extortion under
color of official right;
``(4) section 1952, to the extent that the unlawful
activity involves bribery; or
``(5) section 1962, to the extent that the racketeering
activity involves bribery chargeable under State law, involves
a violation of section 201 or 666, section 1341 or 1343, when
charged in conjunction with section 1346 and where the offense
involves a scheme or artifice to deprive another of the
intangible right of honest services of a public official, or
section 1951, if the offense involves extortion under color of
official right.''.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 213 of title 18, United States Code, is amended by adding at
the end the following new item:
``3302. Corruption offenses.''.
(c) Application of Amendment.--The amendments made by this section
shall not apply to any offense committed before the date of enactment
of this Act.
SEC. 208. INCREASE OF MAXIMUM PENALTIES FOR CERTAIN PUBLIC CORRUPTION
RELATED OFFENSES.
(a) Solicitation of Political Contributions.--Section 602(a)(4) of
title 18, United States Code, is amended by striking ``3 years'' and
inserting ``5 years''.
(b) Promise of Employment for Political Activity.--Section 600 of
title 18, United States Code, is amended by striking ``one year'' and
inserting ``3 years''.
(c) Deprivation of Employment for Political Activity.--Section
601(a) of title 18, United States Code, is amended by striking ``one
year'' and inserting ``3 years''.
(d) Intimidation To Secure Political Contributions.--Section 606 of
title 18, United States Code, is amended by striking ``three years''
and inserting ``5 years''.
(e) Solicitation and Acceptance of Contributions in Federal
Offices.--Section 607(a)(2) of title 18, United States Code, is amended
by striking ``3 years'' and inserting ``5 years''.
(f) Coercion of Political Activity by Federal Employees.--Section
610 of title 18, United States Code, is amended by striking ``three
years'' and inserting ``5 years''.
SEC. 209. ADDITIONAL WIRETAP PREDICATES.
Section 2516(1)(c) of title 18, United States Code, is amended--
(1) by inserting ``section 641 (relating to embezzlement or
theft of public money, property, or records), section 666
(relating to theft or bribery concerning programs receiving
Federal funds),'' after ``section 224 (bribery in sporting
contests),''; and
(2) by inserting ``section 1031 (relating to major fraud
against the United States)'' after ``section 1014 (relating to
loans and credit applications generally; renewals and
discounts),''.
SEC. 210. EXPANDING VENUE FOR PERJURY AND OBSTRUCTION OF JUSTICE
PROCEEDINGS.
(a) In General.--Section 1512(i) of title 18, United States Code,
is amended to read as follows:
``(i) A prosecution under section 1503,
1504, 1505, 1508, 1509, 1510, or this section
may be brought in the district in which the
conduct constituting the alleged offense
occurred or in which the official proceeding
(whether or not pending or about to be
instituted) was intended to be affected.''.
(b) Perjury.--
(1) In general.--Chapter 79 of title 18, United States
Code, is amended by adding at the end the following:
``Sec. 1624. Venue
``A prosecution under section 1621(1), 1622 (in regard to
subornation of perjury under 1621(1)), or 1623 of this title may be
brought in the district in which the oath, declaration, certificate,
verification, or statement under penalty of perjury is made or in which
a proceeding takes place in connection with the oath, declaration,
certificate, verification, or statement.''.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 79 of title 18, United States Code, is
amended by adding at the end the following:
``1624. Venue.''.
SEC. 211. PROHIBITION ON UNDISCLOSED SELF-DEALING BY PUBLIC OFFICIALS.
(a) In General.--Chapter 63 of title 18, United States Code, is
amended by inserting after section 1346 the following new section:
``Sec. 1346A. Undisclosed self-dealing by public officials
``(a) Undisclosed Self-dealing by Public Officials.--For purposes
of this chapter, the term `scheme or artifice to defraud' also includes
a scheme or artifice by a public official to engage in undisclosed
self-dealing.
``(b) Definitions.--As used in this section:
``(1) Official act.--The term official act--
``(A) means any act within the range of official
duty, and any decision or action on any question,
matter, cause, suit, proceeding, or controversy, which
may at any time be pending, or which may by law be
brought before any public official, in such public
official's official capacity or in such official's
place of trust or profit; and
``(B) may be a single act, more than one act, or a
course of conduct.
``(2) Public official.--The term `public official' means an
officer, employee, or elected or appointed representative, or
person acting for or on be half of the United States, a State,
or a subdivision of a State, or any department, agency or
branch of government thereof, in any official function, under
or by authority of any such department, agency, or branch of
government.
``(3) State.--The term `State' includes a State of the
United States, the District of Columbia, and any commonwealth,
territory, or possession of the United States.
``(4) Undisclosed self-dealing.--The term `undisclosed
self-dealing' means that--
``(A) a public official performs an official act
for the purpose, in whole or in material part, of
furthering or benefitting a financial interest, of
which the public official has knowledge, of--
``(i) the public official;
``(ii) the spouse or minor child of a
public official;
``(iii) a general business partner of the
public official;
``(iv) a business or organization in which
the public official is serving as an employee,
officer, director, trustee, or general partner;
``(v) an individual, business, or
organization with whom the public official is
negotiating for, or has any arrangement
concerning, prospective employment or financial
compensation; or
``(vi) an individual, business, or
organization from whom the public official has
received any thing or things of value,
otherwise than as provided by law for the
proper discharge of official duty, or by rule
or regulation; and
``(B) the public official knowingly falsifies,
conceals, or covers up material information that is
required to be disclosed by any Federal, State, or
local statute, rule, regulation, or charter applicable
to the public official, or the knowing failure of the
public official to disclose material information in a
manner that is required by any Federal, State, or local
statute, rule, regulation, or charter applicable to the
public official.
``(5) Material information.--The term `material
information' means information--
``(A) regarding a financial interest of a person
described in clauses (i) through (iv) paragraph (4)(A);
and
``(B) regarding the association, connection, or
dealings by a public official with an individual,
business, or organization as described in clauses (iii)
through (vi) of paragraph (4)(A).''.
(b) Conforming Amendment.--The table of sections for chapter 63 of
title 18, United States Code, is amended by inserting after the item
relating to section 1346 the following new item:
``1346A. Undisclosed self-dealing by public officials.''.
(c) Applicability.--The amendments made by this section apply to
acts engaged in on or after the date of the enactment of this Act.
SEC. 212. DISCLOSURE OF INFORMATION IN COMPLAINTS AGAINST JUDGES.
Section 360(a) of title 28, United States Code, is amended--
(1) in paragraph (2) by striking ``or'';
(2) in paragraph (3), by striking the period at the end,
and inserting ``; or''; and
(3) by inserting after paragraph (3) the following:
``(4) such disclosure of information regarding a potential
criminal offense is made to the Attorney General, a Federal,
State, or local grand jury, or a Federal, State, or local law
enforcement agency.''.
SEC. 213. CLARIFICATION OF EXEMPTION IN CERTAIN BRIBERY OFFENSES.
Section 666(c) of title 18, United States Code, is amended--
(1) by striking ``This section does not apply to''; and
(2) by inserting ``The term `anything of value' that is
corruptly solicited, demanded, accepted or agreed to be
accepted in subsection (a)(1)(B) or corruptly given, offered,
or agreed to be given in subsection (a)(2) shall not include,''
before ``bona fide salary''.
SEC. 214. CERTIFICATIONS REGARDING APPEALS BY UNITED STATES.
Section 3731 of title 18, United States Code, is amended by
inserting after ``United States attorney'' the following: ``, Deputy
Attorney General, Assistant Attorney General, or the Attorney
General''.
Passed the Senate February 2, 2012.
Attest:
Secretary.
112th CONGRESS
2d Session
S. 2038
_______________________________________________________________________
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.