[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 2056 Introduced in Senate (IS)]

<DOC>






118th CONGRESS
  1st Session
                                S. 2056

    To amend title 37, United States Code, to strengthen and expand 
 restrictions on retired members and members of reserve components of 
   the uniformed services accepting employment and compensation from 
              foreign governments, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 20, 2023

  Ms. Warren (for herself and Mr. Grassley) introduced the following 
 bill; which was read twice and referred to the Committee on Veterans' 
                                Affairs

_______________________________________________________________________

                                 A BILL


 
    To amend title 37, United States Code, to strengthen and expand 
 restrictions on retired members and members of reserve components of 
   the uniformed services accepting employment and compensation from 
              foreign governments, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Retired Officers 
Conflict of Interest Act of 2023''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Approval process for employment and compensation.
Sec. 3. Prohibition on members of the Armed Forces negotiating 
                            employment with foreign governments while 
                            on active duty.
Sec. 4. 30-month prohibition on retired members of the Armed Forces 
                            eligible for access to classified 
                            information seeking approval for employment 
                            by foreign governments.
Sec. 5. Notification of obligations.
Sec. 6. Post-retirement employment reporting.
Sec. 7. Penalties.
Sec. 8. Guidance.
Sec. 9. Public reporting.
Sec. 10. Database of employment approvals.
Sec. 11. Definitions.
Sec. 12. Comptroller General of the United States review.
Sec. 13. Effective date; applicability.

SEC. 2. APPROVAL PROCESS FOR EMPLOYMENT AND COMPENSATION.

    Section 908 of title 37, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraphs (1), (2), and (3) 
                as subparagraphs (A), (B), and (C), respectively, and 
                by moving such subparagraphs, as so redesignated, 2 ems 
                to the right;
                    (B) by striking ``Subject to'' and inserting the 
                following:
            ``(1) In general.--Subject to'';
                    (C) in subparagraph (C), as redesignated, by 
                striking ``Commissioned Reserve Corps'' and inserting 
                ``Ready Reserve Corps''; and
                    (D) by adding at the end the following new 
                paragraph:
            ``(2) Application to private entities.--The acceptance by a 
        person described in paragraph (1) of employment (and 
        compensation related to that employment) or payments or awards 
        indirectly from a foreign government through a private entity 
        shall be subject to the provisions of this section to the same 
        extent and in the same manner as such provisions apply to 
        employment (and compensation related to that employment) and 
        payments and awards described in paragraph (1).'';
            (2) in subsection (b)--
                    (A) by inserting ``(1)'' before ``A person''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(2) Before approving under paragraph (1) the employment of a 
person described in subsection (a), the Secretary concerned and the 
Secretary of State shall--
            ``(A) review the offer of employment, including the full 
        text of the contract or other agreement and any annexes or 
        statements of work; and
            ``(B) determine that the employment will not harm the 
        national security of the United States, including with respect 
        to complying with requirements under the International Traffic 
        in Arms Regulations under subchapter M of chapter I of title 
        22, Code of Federal Regulations.'';
            (3) by redesignating subsections (d) and (e) as subsections 
        (k) and (m), respectively; and
            (4) by inserting after subsection (c) the following new 
        subsection (d):
    ``(d) Terms of Approval.--An approval provided to a person 
described in subsection (a) for employment or compensation under 
subsection (b) or for a payment or award under subsection (c) shall 
cease to be effective if the person--
            ``(1) fails to notify the Secretary concerned in writing of 
        any material change in the nature of the employment or payment 
        or award not later than 30 days after the change is made; or
            ``(2) provides inaccurate or incomplete information in a 
        written notification submitted under paragraph (1).''.

SEC. 3. PROHIBITION ON MEMBERS OF THE ARMED FORCES NEGOTIATING 
              EMPLOYMENT WITH FOREIGN GOVERNMENTS WHILE ON ACTIVE DUTY.

    Section 908 of title 37, United States Code, as amended by section 
2, is further amended by inserting after subsection (d) the following 
new subsection:
    ``(e) Prohibition on Negotiation of Employment by Foreign 
Governments While on Active Duty.--A member of the armed forces is 
prohibited from negotiating or having in effect an agreement for future 
employment or compensation, or payment or award, described in 
subsection (a) while serving on active duty.''.

SEC. 4. 30-MONTH PROHIBITION ON RETIRED MEMBERS OF THE ARMED FORCES 
              ELIGIBLE FOR ACCESS TO CLASSIFIED INFORMATION SEEKING 
              APPROVAL FOR EMPLOYMENT BY FOREIGN GOVERNMENTS.

    Section 908 of title 37, United States Code, as amended by section 
3, is further amended by inserting after subsection (e) the following 
new subsection:
    ``(f) Prohibition for Retired Members of Armed Forces Eligible for 
Access to Classified Information.--
            ``(1) In general.--Except as provided by paragraph (2), a 
        retired member of the armed forces who is eligible for access 
        to classified information is prohibited from seeking approval 
        under subsection (b) for employment or compensation described 
        in subsection (a) during the 30-month period beginning on the 
        date on which the person retires from the armed forces.
            ``(2) Exception for allied governments.--A person described 
        in paragraph (1) may accept employment or compensation from the 
        Government of the United Kingdom, Canada, Australia, or New 
        Zealand if the Secretary concerned and Secretary of State 
        approve the employment as provided by subsection (b).''.

SEC. 5. NOTIFICATION OF OBLIGATIONS.

    Section 908 of title 37, United States Code, as amended by section 
4, is further amended by inserting after subsection (f) the following 
new subsection:
    ``(g) Notification of Obligations.--The Secretary concerned shall 
ensure that each person described in subsection (a)--
            ``(1) is notified of the obligations of the person under 
        this section; and
            ``(2) certifies to the Secretary that the person 
        understands such obligations.''.

SEC. 6. POST-RETIREMENT EMPLOYMENT REPORTING.

    Section 908 of title 37, United States Code, as amended by section 
5, is further amended by inserting after subsection (g) the following 
new subsection:
    ``(h) Post-Retirement Employment Reporting.--
            ``(1) In general.--During the 5-year period beginning on 
        the date on which a member of the armed forces retires, that 
        member shall--
                    ``(A) report employment described in subsection (a) 
                to the Secretary concerned upon accepting such 
                employment; and
                    ``(B) annually (or more frequently if the Secretary 
                concerned considers it appropriate) report such 
                employment to the Secretary concerned.
            ``(2) Regulations.--The Under Secretary of Defense for 
        Personnel and Readiness, in consultation with the Department of 
        Defense Standards of Conduct Office and the Secretaries of the 
        military departments, shall issue regulations requiring, as a 
        condition of service, each member of the armed forces to sign a 
        written agreement requiring the regular reporting of employment 
        described in subsection (a) to the Secretary concerned under 
        paragraph (1).''.

SEC. 7. PENALTIES.

    Section 908 of title 37, United States Code, as amended by section 
6, is further amended by inserting after subsection (h) the following 
new subsection:
    ``(i) Civil Penalties.--
            ``(1) In general.--A person who violates subsection (b), 
        (c), (e), (f), or (h) shall be liable to the United States for 
        a civil penalty in an amount that is not more than the greater 
        of--
                    ``(A) $100,000; or
                    ``(B) the amount of compensation that the person 
                received or was offered for the conduct in violation of 
                subsection (b), (c), (e), or (f), or the employment 
                described in subsection (h), as the case may be.
            ``(2) Additional penalties.--In addition to the penalty 
        provided for under paragraph (1), a person who violates 
        subsection (b), (c), (e), or (f) shall, for a period of not 
        longer than five years--
                    ``(A) be prohibited from accepting employment or 
                compensation or a payment or award from any foreign 
                government;
                    ``(B) be prohibited from--
                            ``(i) accepting employment with the Federal 
                        Government;
                            ``(ii) providing services under a contract 
                        awarded by the Federal Government; or
                            ``(iii) serving on a Federal advisory 
                        committee or in any other advisory capacity to 
                        the Federal Government; and
                    ``(C) not be eligible for access to classified 
                information.
            ``(3) Appeal.--
                    ``(A) In general.--A person assessed a penalty 
                under paragraph (1) for a violation of subsection (b), 
                (c), (e), (f), or (h) may appeal the penalty to the 
                President.
                    ``(B) Determinations on appeal.--A determination by 
                the President to rescind or waive part or all of a 
                penalty for a violation of subsection (b), (c), (e), 
                (f), or (h) shall be made in writing, submitted to 
                Congress, and made publicly available by the President 
                through publication in the Federal Register.
            ``(4) Savings provision.--The imposition of a penalty under 
        this subsection does not preclude the application of any other 
        criminal or civil statutory, common law, or administrative 
        remedy that is available by law to the United States or any 
        other person.''.

SEC. 8. GUIDANCE.

    Section 908 of title 37, United States Code, as amended by section 
7, is further amended by inserting after subsection (i) the following 
new subsection:
    ``(j) Guidance.--Not later than 120 days after the enactment of the 
Retired Officers Conflict of Interest Act of 2023, the Secretary of 
Defense and the Secretary of State shall issue and make available to 
the public guidance with respect to complying with this section.''.

SEC. 9. PUBLIC REPORTING.

    Subsection (k) of section 908 of title 37, United States Code, as 
redesignated by section 2(2), is further amended--
            (1) in paragraph (2), by adding at the end the following 
        new subparagraph:
            ``(D) The value of any travel, meals, lodging, or 
        registration fees provided by the foreign government in 
        connection with the employment or compensation or payment or 
        award.''; and
            (2) by adding at the end the following new paragraph:
    ``(3) Each report required by paragraph (1), and all of the 
contents of the report, without redaction, shall be made available by 
the Secretary of Defense on a publicly accessible internet website not 
later than 60 days after the report is submitted under paragraph 
(1).''.

SEC. 10. DATABASE OF EMPLOYMENT APPROVALS.

    Section 908 of title 37, United States Code, is amended by 
inserting after subsection (k), as redesignated by section 2(2), the 
following new subsection:
    ``(l) Database of Employment Approvals.--
            ``(1) Establishment.--Not later than 1 year after the date 
        of the enactment of the Retired Officers Conflict of Interest 
        Act of 2023, the Secretary of Defense shall establish and 
        maintain an online portal accessible by the public that allows 
        a member of the public, at no cost to the member, to search, 
        sort, and download information on approvals of employment 
        provided under subsection (b).
            ``(2) Elements.--The portal required by paragraph (1) shall 
        be designed to provide a member of the public with the ability 
        to retrieve information on an approval of employment provided 
        under subsection (b) to a person described in subsection (a) 
        through searches based on each, and any combination, of the 
        following:
                    ``(A) The name of the person.
                    ``(B) The armed force of the person.
                    ``(C) The position the person held or holds in the 
                armed forces, including rank, and in any other former 
                employing Federal office.
                    ``(D) The foreign government involved.
                    ``(E) The amount of compensation expected or 
                provided for the employment.
                    ``(F) The details of the person's application for 
                approval of the employment.
                    ``(G) In the case of a retired member of the armed 
                forces, the nature of the activities of the member 
                since retirement.
                    ``(H) Other information relating to the employment.
                    ``(I) Except as provided by paragraph (3), any 
                other information the Director considers relevant.
            ``(3) Information prohibited from disclosure.--The portal 
        required by paragraph (1) may not include an individual's date 
        of birth, social security number, home address, phone number, 
        or any other personal identifier other than those specifically 
        required to be included under paragraph (2).
            ``(4) Availability of information.--The Director shall 
        design the portal required by paragraph (1) so that the 
        contents of the portal may be downloaded in bulk and retrieved 
        by an application programming interface.
            ``(5) Duration of retention of information.--The portal 
        required by paragraph (1) shall retain information with respect 
        to an approval of employment provided under subsection (b) for 
        not less than 10 years after the expiration or other 
        termination of the approval.
            ``(6) Updates required.--The portal required by paragraph 
        (1) and the application programming interface referred to in 
        paragraph (4) shall be enhanced and updated as necessary to 
        carry out the purposes of this section.''.

SEC. 11. DEFINITIONS.

    Section 908 of title 37, United States Code, is amended by 
inserting after subsection (m), as redesignated by section 2(2), the 
following new subsection:
    ``(n) Definitions.--In this section:
            ``(1) Classified information.--The term `classified 
        information' means any information or material that has been 
        determined by the United States Government pursuant to an 
        Executive order, statute, or regulation, to require protection 
        against unauthorized disclosure for reasons of national 
        security.
            ``(2) Eligible for access to classified information.--The 
        term `eligible for access to classified information' has the 
        meaning given that term in the procedures established pursuant 
        to section 801(a) of the National Security Act of 1947 (50 
        U.S.C. 3161).
            ``(3) Foreign government.--The term `foreign government' 
        has the meaning given that term in section 7342(a)(2) of title 
        5.''.

SEC. 12. COMPTROLLER GENERAL OF THE UNITED STATES REVIEW.

    (a) Report Required.--Not later than 2 years after the date of the 
enactment of this Act, the Comptroller General of the United States 
shall submit to the Committees on Armed Services of the Senate and the 
House of Representatives a report on the employment by foreign 
governments of former officers of the Armed Forces covered by section 
908 of title 37, United States Code.
    (b) Elements.--The report required by subsection (a) shall include 
an assessment of--
            (1) the processes in place at the Department of State and 
        the Department of Defense--
                    (A) to identify--
                            (i) the extent to which former officers 
                        described in subsection (a) were provided 
                        compensation directly or indirectly by foreign 
                        governments during the 5-year period preceding 
                        submission of the report; and
                            (ii) the extent to which such former 
                        officers who receive compensation from foreign 
                        governments work on contracts or programs of 
                        the Department of Defense, the Department of 
                        State, or the Department of Health and Human 
                        Services--
                                    (I) for which such former officials 
                                personally had program oversight 
                                responsibility or decision-making 
                                authority when they served in the Armed 
                                Forces; or
                                    (II) that are the responsibility of 
                                the agency, office, or command in which 
                                such former officers served; and
                    (B) to review and approve employment by foreign 
                governments of such former officers in accordance with 
                section 908 of title 37, United States Code, as amended 
                by this Act; and
            (2) what is known about the effectiveness of existing 
        statutes and regulations governing the employment of former 
        officers of the Armed Forces, including--
                    (A) section 207 of title 18, United States Code;
                    (B) section 908 of title 37, United States Code, as 
                in effect on the day before the date of the enactment 
                of this Act; and
                    (C) the Foreign Agents Registration Act of 1938, as 
                amended (22 U.S.C. 611 et seq.).
    (c) Access to Information.--In accordance with the contract clause 
required pursuant to section 3841(d) of title 10, United States Code, 
and section 4706(d) of title 41, United States Code, contractors shall 
provide the Comptroller General with access to information requested by 
the Comptroller General for the purpose of preparing the report 
required by subsection (a).

SEC. 13. EFFECTIVE DATE; APPLICABILITY.

    The amendments made by this Act--
            (1) take effect on the date of the enactment of this Act; 
        and
            (2) apply with respect to--
                    (A) offers of employment or compensation described 
                in subsection (a) of section 908 of title 37, United 
                States Code, as amended by this Act, made on or after 
                the date that is 120 days after such date of enactment;
                    (B) the provision of any payment, item, or award 
                described in that subsection on or after that date;
                    (C) negotiations for employment described in 
                subsection (e) of that section on or after that date; 
                and
                    (D) agreements described in that subsection in 
                effect on or after that date.
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