[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 812 Introduced in House (IH)]
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116th CONGRESS
1st Session
H. R. 812
To amend the Ethics in Government Act of 1978 to require individuals
nominated or appointed to Senate-confirmed positions or to positions of
a confidential or policymaking character to disclose certain types of
contributions made or solicited by, or at the request of, the
individuals.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 28, 2019
Mr. Deutch (for himself, Mr. Sarbanes, Ms. Schakowsky, Mr. Johnson of
Georgia, Mr. Cohen, Ms. Roybal-Allard, and Ms. Norton) introduced the
following bill; which was referred to the Committee on Oversight and
Reform
_______________________________________________________________________
A BILL
To amend the Ethics in Government Act of 1978 to require individuals
nominated or appointed to Senate-confirmed positions or to positions of
a confidential or policymaking character to disclose certain types of
contributions made or solicited by, or at the request of, the
individuals.
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 ``Conflicts from Political Fundraising
Act of 2019''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Public confidence in the Federal Government is based on
the expectation that officers and employees will discharge
their duties impartially, and avoid either actual conflicts of
interest or the appearance thereof.
(2) The risk of an actual conflict of interest, or the
appearance thereof, arises when a nominee or appointee to a
Senate-confirmed position or an individual in a position of a
confidential or policymaking character has previously donated
to, solicited for, or received funds from a political action
committee or entity organized under section 501(c)(4) or
section 501(c)(6) of the Internal Revenue Code of 1986.
(3) Since the 2010 decision by the Supreme Court of the
United States in Citizens United v. Federal Election
Commission, spending by corporations subject to Federal laws
and regulations has increased dramatically.
(4) While some corporate political spending is done
publicly, contributions to entities organized under section
501(c)(4) of the Internal Revenue Code of 1986 need not be
disclosed, making this spending effectively anonymous. The risk
of an actual conflict of interest, or the appearance thereof,
arises whether political spending is public or anonymous.
(5) Current financial disclosure requirements do not
require filers to report funds they have donated to, solicited
for, or received from political action committees or entities
organized under section 501(c)(4) or section 501(c)(6) of the
Internal Revenue Code of 1986.
(6) Apparent or actual conflicts of interest are best
ameliorated through public disclosure of this activity to the
Office of Government Ethics so the apparent or actual conflicts
can be addressed in ethics agreements negotiated between the
filer and the agency in which the filer will serve.
SEC. 3. DISCLOSURE OF CERTAIN TYPES OF CONTRIBUTIONS.
(a) Definitions.--Section 109 of the Ethics in Government Act of
1978 (5 U.S.C. App.) is amended--
(1) by redesignating paragraphs (2) through (19) as
paragraphs (5) through (22), respectively; and
(2) by inserting after paragraph (1) the following:
``(2) `covered contribution' means a payment, advance,
forbearance, rendering, or deposit of money, or any thing of
value--
``(A)(i) that--
``(I) is--
``(aa) made by or at the request of
a covered individual; or
``(bb) solicited in writing by or
at the request of a covered individual;
and
``(II) is made--
``(aa) to a political organization,
as defined in section 527 of the
Internal Revenue Code of 1986; or
``(bb) to an organization--
``(AA) that is described in
paragraph (4) or (6) of section
501(c) of the Internal Revenue
Code of 1986 and exempt from
tax under section 501(a) of
such Code; and
``(BB) that promotes or
opposes changes in Federal laws
or regulations that are (or
would be) administered by the
agency in which the covered
individual has been nominated
for appointment to a covered
position or is serving in a
covered position; or
``(ii) that is--
``(I) solicited in writing by or at the
request of a covered individual; and
``(II) made--
``(aa) by an individual or entity
the activities of which are subject to
Federal laws or regulations that are
(or would be) administered by the
agency in which the covered individual
has been nominated for appointment to a
covered position or is serving in a
covered position; and
``(bb) to--
``(AA) a political
organization, as defined in
section 527 of the Internal
Revenue Code of 1986; or
``(BB) an organization that
is described in paragraph (4)
or (6) of section 501(c) of the
Internal Revenue Code of 1986
and exempt from tax under
section 501(a) of such Code;
and
``(B) that is made to an organization described in
item (aa) or (bb) of clause (i)(II) or clause
(ii)(II)(bb) of subparagraph (A) for which the total
amount of such payments, advances, forbearances,
renderings, or deposits of money, or any thing of
value, during the calendar year in which it is made is
not less than the contribution limitation in effect
under section 315(a)(1)(A) of the Federal Election
Campaign Act of 1971 (52 U.S.C. 30116(a)(1)(A)) for
elections occurring during such calendar year;
``(3) `covered individual' means an individual who has been
nominated or appointed to a covered position; and
``(4) `covered position'--
``(A) means--
``(i) a position described under sections
5312 through 5316 of title 5, United States
Code;
``(ii) a position placed in level IV or V
of the Executive Schedule under section 5317 of
title 5, United States Code;
``(iii) a position as a limited term
appointee, limited emergency appointee, or
noncareer appointee in the Senior Executive
Service, as defined under paragraphs (5), (6),
and (7), respectively, of section 3132(a) of
title 5, United States Code; or
``(iv) a position in the executive branch
of the Government of a confidential or policy-
determining character under schedule C of
subpart C of part 213 of title 5 of the Code of
Federal Regulations; and
``(B) does not include a position if the individual
serving in the position has been excluded from the
application of section 101(f)(5);''.
(b) Disclosure Requirements.--The Ethics in Government Act of 1978
(5 U.S.C. App.) is amended--
(1) in section 101--
(A) in subsection (a)--
(i) by inserting ``(1)'' before ``Within'';
(ii) by striking ``unless'' and inserting
``and, if the individual is assuming a covered
position, the information described in section
102(j), except that, subject to paragraph (2),
the individual shall not be required to file a
report if''; and
(iii) by adding at the end the following:
``(2) If an individual has left a position described in
subsection (f) that is not a covered position and, within 30
days, assumes a position that is a covered position, the
individual shall, within 30 days of assuming the covered
position, file a report containing the information described in
section 102(j)(2)(A).'';
(B) in subsection (b)(1), in the first sentence, by
inserting ``and the information required by section
102(j)'' after ``described in section 102(b)'';
(C) in subsection (d), by inserting ``and, if the
individual is serving in a covered position, the
information required by section 102(j)(2)(A)'' after
``described in section 102(a)''; and
(D) in subsection (e), by inserting ``and, if the
individual was serving in a covered position, the
information required by section 102(j)(2)(A)'' after
``described in section 102(a)''; and
(2) in section 102--
(A) in subsection (g), by striking ``Political
campaign funds'' and inserting ``Except as provided in
subsection (j), political campaign funds''; and
(B) by adding at the end the following:
``(j)(1) In this subsection--
``(A) the term `applicable period' means--
``(i) with respect to a report filed pursuant to
subsection (a) or (b) of section 101, the year of
filing and the 4 calendar years preceding the year of
the filing; and
``(ii) with respect to a report filed pursuant to
subsection (d) or (e) of section 101, the preceding
calendar year; and
``(B) the term `covered gift' means a gift that--
``(i) is made to a covered individual, the spouse
of a covered individual, or the dependent child of a
covered individual;
``(ii) is made by an entity described in item (aa)
or (bb) of section 109(2)(A)(i)(II); and
``(iii) would have been required to be reported
under subsection (a)(2) if the covered individual had
been required to file a report under section 101(d)
with respect to the calendar year during which the gift
was made.
``(2)(A) A report filed pursuant to subsection (a), (b), (d), or
(e) of section 101 by a covered individual shall include, for each
covered contribution made by or at the request of, or that was
solicited in writing by or at the request of, that covered individual
during the applicable period--
``(i) the date on which the covered contribution was made;
``(ii) if applicable, the date or dates on which the
covered contribution was solicited;
``(iii) the value of the covered contribution;
``(iv) the name of the person making the covered
contribution; and
``(v) the name of the person receiving the covered
contribution.
``(B)(i) Subject to clause (ii), a covered contribution made by or
at the request of, or that was solicited in writing by or at the
request of, a covered individual shall constitute a conflict of
interest, or an appearance thereof, with respect to the official duties
of the covered individual.
``(ii) The Director of the Office of Government Ethics may exempt a
covered contribution from the application of clause (i) if the Director
determines the circumstances of the solicitation and making of the
covered contribution do not present a risk of a conflict of interest
and the exemption of the covered contribution would not affect
adversely the integrity of the Government or the public's confidence in
the integrity of the Government.
``(3) A report filed pursuant to subsection (a) or (b) of section
101 by a covered individual shall include the information described in
subsection (a)(2) with respect to each covered gift received during the
applicable period.''.
(c) Provision of Reports and Ethics Agreements to Congress.--
Section 105 of the Ethics in Government Act of 1978 (5 U.S.C. App.) is
amended by adding at the end the following:
``(e) Not later than 30 days after receiving a written request from
the Chairman or Ranking Member of a committee or subcommittee of either
House of Congress, the Director of the Office of Government Ethics
shall provide to the Chairman and Ranking Member each report filed
under this title by a covered individual and any ethics agreement
entered into between the agency and the covered individual.''.
(d) Rules on Ethics Agreements.--The Director of the Office of
Government Ethics shall promptly issue rules regarding how an agency in
the executive branch shall address information required to be disclosed
under the amendments made by this Act in drafting ethics agreements
between the agency and individuals appointed to positions in the
agency.
(e) Technical and Conforming Amendments.--
(1) The Ethics in Government Act of 1978 (5 U.S.C. App.) is
amended--
(A) in section 101(f)--
(i) in paragraph (9), by striking ``section
109(12)'' and inserting ``section 109(15)'';
(ii) in paragraph (10), by striking
``section 109(13)'' and inserting ``section
109(16)'';
(iii) in paragraph (11), by striking
``section 109(10)'' and inserting ``section
109(13)''; and
(iv) in paragraph (12), by striking
``section 109(8)'' and inserting ``section
109(11)'';
(B) in section 103(l)--
(i) in paragraph (9), by striking ``section
109(12)'' and inserting ``section 109(15)'';
and
(ii) in paragraph (10), by striking
``section 109(13)'' and inserting ``section
109(16)''; and
(C) in section 105(b)(3)(A), by striking ``section
109(8) or 109(10)'' and inserting ``section 109(11) or
109(13)''.
(2) Section 3(4)(D) of the Lobbying Disclosure Act of 1995
(2 U.S.C. 1602(4)(D)) is amended by striking ``section
109(13)'' and inserting ``section 109(16)''.
(3) Section 21A of the Securities Exchange Act of 1934 (15
U.S.C. 78u-1) is amended--
(A) in subsection (g)(2)(B)(ii), by striking
``section 109(11) of the Ethics in Government Act of
1978 (5 U.S.C. App. 109(11)))'' and inserting ``section
109 of the Ethics in Government Act of 1978 (5 U.S.C.
App.))''; and
(B) in subsection (h)(2)--
(i) in subparagraph (B), by striking
``section 109(8) of the Ethics in Government
Act of 1978 (5 U.S.C. App. 109(8))'' and
inserting ``section 109 of the Ethics in
Government Act of 1978 (5 U.S.C. App.)''; and
(ii) in subparagraph (C), by striking
``section 109(10) of the Ethics in Government
Act of 1978 (5 U.S.C. App. 109(10))'' and
inserting ``section 109 of the Ethics in
Government Act of 1978 (5 U.S.C. App.)''.
(4) Section 499(j)(2) of the Public Health Service Act (42
U.S.C. 290b(j)(2)) is amended by striking ``section 109(16) of
the Ethics in Government Act of 1978'' and inserting ``section
109 of the Ethics in Government Act of 1978 (5 U.S.C. App.)''.
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