[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4222 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 4222

To require executive branch agencies to prohibit conflicting financial 
           interests through prohibited holdings regulations.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 20, 2023

 Mr. Langworthy (for himself and Mr. Kilmer) introduced the following 
      bill; which was referred to the Committee on Oversight and 
                             Accountability

_______________________________________________________________________

                                 A BILL


 
To require executive branch agencies to prohibit conflicting financial 
           interests through prohibited holdings regulations.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Executive Branch Conflict of 
Interest Prevention Act of 2023''.

SEC. 2. ESTABLISHMENT OF PROHIBITED HOLDINGS REGULATIONS.

    (a) Definitions.--In this Act:
            (1) Covered government official.--The term ``covered 
        government official'' includes any officer or employee who 
        occupies a position classified above GS-15 of the General 
        Schedule or, in the case of positions not under the General 
        Schedule--
                    (A) 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;
                    (B) 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
                    (C) each officer or employee in any other position 
                determined by the Director of the Office of Government 
                Ethics to be of equal classification.
            (2) Diversified fund.--The term ``diversified fund'' means 
        a widely held investment fund described in section 13104(f)(8) 
        of title 5, United States Code, that does not have a stated 
        policy of concentrating its investments in any industry, 
        business, or single country other than the United States.
    (b) In General.--Subject to any exception for an interest held 
through a diversified fund or a qualified blind trust, no covered 
government official shall own any financial interest in a corporation, 
business, partnership, or other for-profit entity that is determined to 
be--
            (1) substantially regulated by the agency or otherwise 
        directly influenced by the action of the executive agency;
            (2) a major contractor of the agency;
            (3) an organization that has substantial lobbying contacts 
        with the agency; or
            (4) an organization that otherwise poses the realistic 
        potential for creating a substantial appearance of a conflict 
        of interest.
    (c) Guidance.--The Director of the Office of Government Ethics 
shall issue guidance to executive agencies regarding the meaning of the 
terms ``substantially regulated'', ``major contractor'', ``substantial 
lobbying contacts'', and ``substantial appearance of a conflict of 
interest'' specifically in the context of this Act.
    (d) Report.--If an agency head determines that no financial 
interest meets the criteria established in subsection (b), as defined 
by the Director of the Office of Government Ethics pursuant to 
subsection (c), and that issuance of a prohibited holdings regulation 
under this regulation is not possible, the head of the agency shall 
sign a report to Congress that--
            (1) explains in detail why there is no realistic potential 
        for any officer or employee described in subsection (a) to 
        encounter a conflict of interest in the performance of official 
        duties;
            (2) describes in detail all steps undertaken by the agency 
        to evaluate the potential for conflicts of interest to arise at 
        the agency; and
            (3) if any part of the agency is within the jurisdiction of 
        an inspector general, shall include a written assessment by the 
        Inspector General of the potential for conflicts of interest to 
        arise in connection with the performance of official duties by 
        officers and employees described in subsection (a).
    (e) Evaluation.--If an agency has issued a prohibited holdings 
regulation prior to the date of enactment of this Act, the agency head 
shall evaluate whether that regulation should cover any additional 
types of interests not currently covered. If the agency head determines 
that expansion of the regulation's coverage is not currently warranted, 
the agency head shall so advise Congress in writing and shall not be 
required to issue a new regulation under this Act.
    (f) Waivers.--Any regulation prohibiting potentially conflicting 
financial interests, whether issued pursuant to this Act or prior to 
the date of enactment of this Act, may, if deemed appropriate by both 
the agency head and the Director of the Office of Government Ethics, 
permit individual waivers in unusual circumstances, provided that the 
regulation requires the agency to submit the waiver to the Director for 
publication on the official website of the Office of Government Ethics, 
subject to applicable routine destruction requirements.
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