[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 2463 Introduced in Senate (IS)]

<DOC>






118th CONGRESS
  1st Session
                                S. 2463

To amend chapter 131 of title 5, United States Code, and the STOCK Act 
 to require certain senior officials to report payments received from 
    the Federal Government, to improve the filing and disclosure of 
   financial disclosures, to ban stock ownership for certain senior 
             Government officials, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 25, 2023

 Mrs. Gillibrand (for herself and Mr. Hawley) introduced the following 
 bill; which was read twice and referred to the Committee on Homeland 
                   Security and Governmental Affairs

_______________________________________________________________________

                                 A BILL


 
To amend chapter 131 of title 5, United States Code, and the STOCK Act 
 to require certain senior officials to report payments received from 
    the Federal Government, to improve the filing and disclosure of 
   financial disclosures, to ban stock ownership for certain senior 
             Government officials, 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 ``Ban Stock Trading for Government 
Officials Act of 2023''.

  TITLE I--ELIMINATING EXECUTIVE BRANCH INSIDER CONFLICTS OF INTEREST

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Eliminating Executive Branch 
Insider Conflicts of Interest Act''.

SEC. 102. SENSE OF CONGRESS.

    It is the sense of Congress that executive branch officials should 
not have a personal financial interest in the outcome of Government 
policy decisions.

SEC. 103. BANNING CONFLICTED INTERESTS IN THE EXECUTIVE BRANCH.

    (a) In General.--Chapter 131 of title 5, United States Code, is 
amended by adding at the end the following:

 ``Subchapter IV--Banning Conflicted Interests in the Executive Branch

``Sec. 13151. Definitions
    ``In this subchapter:
            ``(1) Adjacent individual.--The term `adjacent individual' 
        means--
                    ``(A) each officer or employee in the executive 
                branch holding a Senior Executive Service position, as 
                defined under section 3132(a)(2) of title 5;
                    ``(B) each member of a uniformed service whose pay 
                grade is at or in excess of O-7 under section 201 of 
                title 37;
                    ``(C) each officer or employee in any other 
                position determined by the Special Counsel of the 
                United States, in consultation with the Director of the 
                Office of Government Ethics, to be of equal 
                classification to a position described in subparagraph 
                (A) or (B); or
                    ``(D) the spouse or dependent child of any 
                individual described in subparagraph (A), (B), or (C).
            ``(2) Covered financial interest.--
                    ``(A) In general.--The term `covered financial 
                interest' means--
                            ``(i) any investment in--
                                    ``(I) a security (as defined in 
                                section 3(a) of Securities Exchange Act 
                                of 1934 (15 U.S.C. 78c(a)));
                                    ``(II) a security future (as 
                                defined in that section); or
                                    ``(III) a commodity (as defined in 
                                section 1a of the Commodity Exchange 
                                Act (7 U.S.C. 1a)); or
                            ``(ii) any economic interest comparable to 
                        an interest described in clause (i) that is 
                        acquired through synthetic means, such as the 
                        use of a derivative, including an option, 
                        warrant, or other similar means.
                    ``(B) Exclusions.--The term `covered financial 
                interest' does not include--
                            ``(i) a diversified mutual fund;
                            ``(ii) a diversified exchange-traded fund;
                            ``(iii) a United States Treasury bill, 
                        note, or bond;
                            ``(iv) compensation from the primary 
                        occupation of a covered individual or adjacent 
                        individual; or
                            ``(v) any financial interest exempted under 
                        paragraph (1) or (2) of section 208(b) of title 
                        18.
            ``(3) Covered individual.--The term `covered individual' 
        means--
                    ``(A) the President;
                    ``(B) the Vice President; or
                    ``(C) the spouse or dependent child of any 
                individual described in subparagraph (A) or (B).
            ``(4) Dependent child.--The term dependent child has the 
        meaning given the term in section 13101.
``Sec. 13152. Prohibition on certain transactions and holdings 
              involving covered financial interests
    ``(a) Prohibition.--Except as provided in subsection (b), a covered 
individual or an adjacent individual may not, during the term of 
service of the covered individual or adjacent individual, or during the 
180-day period beginning on the date on which the service of such 
covered individual or adjacent individual is terminated, hold, 
purchase, sell, or conduct any type of transaction with respect to a 
covered financial interest.
    ``(b) Exceptions.--The prohibition under subsection (a) shall not 
apply to a sale by a covered individual or an adjacent individual that 
is completed by the date that is--
            ``(1) for a covered individual or an adjacent individual 
        serving on the date of enactment of this section, 180 days 
        after the date of enactment; and
            ``(2) for a covered individual or an adjacent individual 
        who commences service as a covered individual after the date of 
        enactment of this section, 180 days after the first date of the 
        term of service.
    ``(c) Adjacent Individuals.--With respect to adjacent individuals--
            ``(1) this section shall be supplementary in nature to 
        section 208 of title 18; and
            ``(2) nothing in this section shall be construed to limit 
        the application of section 208 of title 18.
    ``(d) Penalties.--
            ``(1) Disgorgement.--A covered individual or adjacent 
        individual shall disgorge to the Treasury of the United States 
        any profit from a transaction or holding involving a covered 
        financial interest that is conducted in violation of this 
        section.
            ``(2) Fines.--A covered individual or an adjacent 
        individual who holds, purchases, sells, or conducts a 
        transaction involving a covered financial interest in violation 
        of this section--
                    ``(A) shall be assessed a fine by the Office of the 
                Special Counsel, in consultation with the Director of 
                the Office of Government Ethics, of not more than 
                $10,000 or the amount of compensation, if any, that the 
                covered individual or adjacent individual received for 
                the prohibited conduct, whichever is greater; and
                    ``(B) may be referred to the Department of Justice 
                and assessed a civil fine pursuant to section 13153 if 
                the Office of the Special Counsel, in consultation with 
                the Director of the Office of Government Ethics, find 
                such case comparatively substantial in monetary value 
                or extraordinary in nature.
``Sec. 13153. Civil penalties
    ``(a) Civil Action.--The Attorney General may bring a civil action 
in any appropriate United States district court against any covered 
individual or adjacent individual who violates any provision of section 
13152.
    ``(b) Civil Penalty.--The court in which any action is brought 
under subsection (a) may assess against a covered individual or an 
adjacent individual a civil penalty of not more than the amount 
recommended by the Attorney General.''.
    (b) Clerical Amendment.--The table of sections for chapter 131 of 
title 5, United States Code, is amended by adding at the end the 
following:

  ``subchapter iv--banning conflicted interests in the executive branch

``13151. Definitions.
``13152. Prohibition on certain transactions and holdings involving 
                            covered financial interests.
``13153. Civil penalties.''.

                        TITLE II--STOCK ACT 2.0

SEC. 201. SHORT TITLE.

    This title may be cited as the ``STOCK Act 2.0''.

SEC. 202. REPORTING OF APPLICATIONS FOR, OR RECEIPT OF, PAYMENTS FROM 
              FEDERAL GOVERNMENT.

    (a) In General.--Section 13103 of title 5, United States Code, is 
amended by adding at the end the following:
    ``(i) Reporting of Applications for, or Receipt of, Payments From 
Federal Government.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Covered payment.--
                            ``(i) In general.--The term `covered 
                        payment' means a payment of money or any other 
                        item of value made, or promised to be made, by 
                        the Federal Government.
                            ``(ii) Inclusions.--The term `covered 
                        payment' includes--
                                    ``(I) a loan agreement, contract, 
                                or grant made, or promised to be made, 
                                by the Federal Government; and
                                    ``(II) such other types of payment 
                                of money or items of value as the 
                                Secretary of the Treasury, in 
                                consultation with the Director of the 
                                Office of Government Ethics, may 
                                establish, by regulation.
                            ``(iii) Exclusions.--The term `covered 
                        payment' does not include--
                                    ``(I) any salary or compensation 
                                for service performed as, or 
                                reimbursement of personal outlay by, an 
                                officer or employee of the Federal 
                                Government; or
                                    ``(II) any tax refund (including a 
                                refundable tax credit).
                    ``(B) Covered person.--The term `covered person' 
                means a person described in any of paragraphs (1) 
                through (10) of section 13105(l).
            ``(2) Reporting requirement.--Not later than 30 days after 
        the date of receipt of a notice of any application for, or 
        receipt of, a covered payment by a covered person, the spouse 
        of the covered person, or a dependent child of the covered 
        person (including any business owned and controlled by the 
        covered person or spouse or dependent child of the covered 
        person), but in no case later than 45 days after the date on 
        which the covered payment is made or promised to be made, the 
        covered person shall submit to the applicable supervising 
        ethics office a report describing the covered payment.
            ``(3) Fine for failure to report.--Notwithstanding section 
        13106(d), a covered person shall be assessed a fine, pursuant 
        to regulations issued by the applicable supervising ethics 
        office, of $500 in each case in which the covered person fails 
        to file a report required under this subsection.''.
    (b) Report Contents.--Section 13104 of title 5, United States Code, 
is amended by adding at the end the following:
    ``(j) Payments From Federal Government.--Each report filed pursuant 
to subsection (i) of section 13103 shall include--
            ``(1) an identification of each type of payment or item of 
        value applied for, or received, from the Federal Government;
            ``(2)(A) the name of each recipient of each payment or item 
        of value identified under paragraph (1); and
            ``(B) the relationship of each recipient named under 
        subparagraph (A) to the person filing the report;
            ``(3) a description of the date on which, as applicable--
                    ``(A) an application for a payment or other item of 
                value was submitted to the Federal Government; and
                    ``(B) the payment or item of value was received 
                from the Federal Government; and
            ``(4) a description of the amount of each applicable 
        payment or item of value.''.
    (c) Technical and Conforming Amendments.--
            (1) Persons required to file.--Section 13103(f) of title 5, 
        United States Code, is amended--
                    (A) in paragraph (9), by striking ``as defined in 
                section 13101'';
                    (B) in paragraph (10), by striking ``as defined in 
                section 13101'';
                    (C) in paragraph (11), by striking ``as defined in 
                section 13101''; and
                    (D) in paragraph (12), by striking ``as defined in 
                section 13101''.
            (2) Contents of reports.--Section 13104(a) of title 5, 
        United States Code, is amended in the matter preceding 
        paragraph (1), by striking ``section 13103(d) and (e)'' and 
        inserting ``subsection (d) or (e) of section 13103''.
    (d) Effective Date.--The amendments made by this section shall 
apply to relevant applications submitted to, and payments made or 
promised to be made by, the Federal Government on or after the date 
that is 90 days after the date of enactment of this Act.

SEC. 203. PENALTY FOR STOCK ACT NONCOMPLIANCE.

    (a) In General.--The STOCK Act (Public Law 112-105; 126 Stat. 291; 
126 Stat. 1310; 127 Stat. 438; 132 Stat. 4167) is amended by adding at 
the end the following:

``SEC. 20. FINES FOR FAILURE TO REPORT.

    ``(a) In General.--Notwithstanding any other provision of law 
(including regulations), an individual shall be assessed a fine, 
pursuant to regulations issued by the applicable supervising ethics 
office (including the Administrative Office of the United States 
Courts, as applicable), of $500 in each case in which the individual 
fails to file a transaction report required under this Act.
    ``(b) Deposit in Treasury.--The fines paid under this section shall 
be deposited in the miscellaneous receipts of the Treasury.''.
    (b) Rules, Regulations, Guidance, and Documents.--Not later than 1 
year after the date of enactment of this Act, each supervising ethics 
office (as defined in section 2 of the STOCK Act (5 U.S.C. 13101 note)) 
(including the Administrative Office of the United States Courts, as 
applicable) shall amend the rules, regulations, guidance, documents, 
papers, and other records of the supervising ethics office in 
accordance with the amendment made by this section.

SEC. 204. BANNING CONFLICTED INTERESTS IN CONGRESS.

    (a) In General.--
            (1) Banning conflicted trades.--Chapter 131 of title 5, 
        United States Code, as amended by section 103 of this Act, is 
        amended by adding at the end the following:

         ``Subchapter V--Banning Conflicted Trades in Congress

``SEC. 13161. DEFINITIONS.

    ``In this subchapter:
            ``(1) Commodity.--The term `commodity' has the meaning 
        given the term in section 1a of the Commodity Exchange Act (7 
        U.S.C. 1a).
            ``(2) Covered financial interest.--
                    ``(A) In general.--The term `covered financial 
                interest' means--
                            ``(i) any investment in--
                                    ``(I) a security (as defined in 
                                section 3(a) of Securities Exchange Act 
                                of 1934 (15 U.S.C. 78c(a)));
                                    ``(II) a security future (as 
                                defined in that section); or
                                    ``(III) a commodity (as defined in 
                                section 1a of the Commodity Exchange 
                                Act (7 U.S.C. 1a)); or
                            ``(ii) any economic interest comparable to 
                        an interest described in clause (i) that is 
                        acquired through synthetic means, such as the 
                        use of a derivative, including an option, 
                        warrant, or other similar means.
                    ``(B) Exclusions.--The term `covered financial 
                interest' does not include--
                            ``(i) a diversified mutual fund;
                            ``(ii) a diversified exchange-traded fund;
                            ``(iii) a United States Treasury bill, 
                        note, or bond;
                            ``(iv) compensation from the primary 
                        occupation of a covered individual; or
                            ``(v) any financial interest exempted under 
                        paragraph (1) or (2) of section 208(b) of title 
                        18.
            ``(3) Covered individual.--The term `covered individual' 
        means--
                    ``(A) a Member of Congress (as defined in section 
                13101); or
                    ``(B) a spouse or dependent child of a Member of 
                Congress.
            ``(4) Dependent child.--The term dependent child has the 
        meaning given the term in section 13101.
            ``(5) Future.--The term `future' means a financial contract 
        obligating a buyer to purchase, or a seller to sell, an asset, 
        such as a physical commodity or a financial instrument, at a 
        predetermined future date and price.
            ``(6) Security.--The term `security' has the meaning given 
        the term in section 3(a) of the Securities Exchange Act of 1934 
        (15 U.S.C. 78c(a)).
            ``(7) Supervising ethics office.--The term `supervising 
        ethics office', with respect to a covered individual, has the 
        meaning given the term in section 13101 with respect to that 
        covered individual.

``SEC. 13162. PROHIBITIONS.

    ``(a) Transactions.--Except as provided in sections 13163 and 
13164, and during the 180-day period beginning on the date on which the 
service of such covered individual is terminated, no covered individual 
may--
            ``(1) hold, purchase, sell, or conduct any type of 
        transaction with respect to a covered financial interest; or
            ``(2) enter into a transaction that creates a net short 
        position in any security.
    ``(b) Positions.--A covered individual may not serve as an officer 
or member of any board of any for-profit association, corporation, or 
other entity.

``SEC. 13163. DIVESTITURE.

    ``With respect to any covered financial interest held by a covered 
individual, the covered individual shall sell the covered financial 
interest during the 180-day period beginning on the later of--
            ``(1) the date on which the covered individual assumes 
        office or employment as a covered individual; and
            ``(2) the date of enactment of this Act.

``SEC. 13164. ADMINISTRATION AND ENFORCEMENT.

    ``(a) Administration.--Each supervising ethics office may issue 
guidance relating to any matter covered by this subchapter, including--
            ``(1) whether a covered individual may hold an employee 
        stock option or other, similar instrument that has not vested 
        before the date on which the covered individual assumes office 
        or employment as a covered individual; and
            ``(2) the process and timeline for determining the date on 
        which a covered individual shall no longer serve as an officer 
        or member of any board of any for-profit association, 
        corporation, or other entity.
    ``(b) Enforcement.--A covered individual who knowingly fails to 
comply with this subchapter--
            ``(1) shall disgorge to the Treasury of the United States 
        any profit from a transaction or holding involving a covered 
        financial interest that is conducted in violation of this 
        subchapter; and
            ``(2) shall be assessed a fine by the supervising ethics 
        office of not less than 10 percent of the value of the covered 
        financial interest that was purchased or sold, or the security 
        in which a net short position was created, in violation of this 
        subchapter, as applicable.''.
            (2) Clerical amendment.--The table of sections for chapter 
        131 of title 5, United States Code, as amended by section 103 
        of this Act, is amended by adding at the end the following:

          ``subchapter v--banning conflicted trades in congress

``13161. Definitions.
``13162. Prohibitions.
``13163. Divestiture.
``13164. Administration and enforcement.''.
    (b) Conforming Amendments.--
            (1) Authority and functions.--Section 13122(f)(2)(B) of 
        title 5, United States Code, is amended--
                    (A) by striking ``Subject to clause (iv) of this 
                subparagraph, before'' each place it appears and 
                inserting ``Before''; and
                    (B) by striking clause (iv).
            (2) Lobbying disclosure act of 1995.--Section 3(4)(D) of 
        the Lobbying Disclosure Act of 1995 (2 U.S.C. 1602(4)(D)) is 
        amended by striking ``legislative branch employee serving in a 
        position described under section 13101(13) of title 5, United 
        States Code'' and inserting ``officer or employee of Congress 
        (as defined in section 13101 of title 5, United States Code)''.
            (3) STOCK act.--Section 2 of the STOCK Act (5 U.S.C. 13101 
        note) is amended--
                    (A) in paragraph (2)(B), by striking ``(11)'';
                    (B) in paragraph (4), by striking ``(10)'';
                    (C) in paragraph (5), by striking ``(9)''; and
                    (D) in paragraph (6), by striking ``(18)''.
            (4) Securities exchange act of 1934.--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 
                ``(11)''; and
                    (B) in subsection (h)(2)--
                            (i) in subparagraph (B), by striking 
                        ``(9)''; and
                            (ii) in subparagraph (C), by striking 
                        ``(10)''.

SEC. 205. ELECTRONIC FILING AND ONLINE PUBLIC AVAILABILITY OF FINANCIAL 
              DISCLOSURE FORMS.

    (a) Members of Congress and Congressional Staff.--Section 8(b)(1) 
of the STOCK Act (5 U.S.C. 13107 note) is amended--
            (1) in the matter preceding subparagraph (A), by inserting 
        ``, pursuant to subchapter I of chapter 131 of title 5, United 
        States Code, through databases maintained on the official 
        websites of the Senate and House of Representatives'' after 
        ``enable'';
            (2) in subparagraph (A), by striking ``reports received by 
        them pursuant to section 13105(h)(1)(A) of title 5, United 
        States Code, and'' and inserting ``each report received under 
        section 13105(h)(1)(A) of that subchapter; and''; and
            (3) by striking subparagraph (B) and the undesignated 
        matter following that subparagraph and inserting the following:
                    ``(B) public access--
                            ``(i) to each--
                                    ``(I) financial disclosure report 
                                filed by a Member of Congress or a 
                                candidate for Congress;
                                    ``(II) transaction disclosure 
                                report filed by a Member of Congress or 
                                a candidate for Congress pursuant to 
                                section 13105(l) of that subchapter; 
                                and
                                    ``(III) notice of extension or 
                                amendment with respect to a report 
                                described in subclause (I) or (II), 
                                pursuant to that subchapter; and
                            ``(ii) in a manner that--
                                    ``(I) allows the public to search, 
                                sort, and download data contained in 
                                the reports described in subclause (I) 
                                or (II) of clause (i) by criteria 
                                required to be reported, including by 
                                filer name, asset, transaction type, 
                                ticker symbol, notification date, 
                                amount of transaction, and date of 
                                transaction;
                                    ``(II) allows access through an 
                                application programming interface; and
                                    ``(III) is fully compliant with--
                                            ``(aa) section 508 of the 
                                        Rehabilitation Act of 1973 (29 
                                        U.S.C. 794d); and
                                            ``(bb) the most recent Web 
                                        Content Accessibility 
                                        Guidelines (or successor 
                                        guidelines).''.
    (b) Very Senior Executive Branch Employees.--Section 11(b)(1) of 
the STOCK Act (Public Law 112-105; 126 Stat. 299) is amended--
            (1) in the matter preceding subparagraph (A), by inserting 
        ``, pursuant to subchapter I of chapter 131 of title 5, United 
        States Code, through databases maintained on the official 
        website of the Office of Government Ethics'' after ``enable''; 
        and
            (2) by striking subparagraph (B) and the undesignated 
        matter following that subparagraph and inserting the following:
                    ``(B) public access--
                            ``(i) to each--
                                    ``(I) financial disclosure report 
                                filed by an officer occupying a 
                                position listed in section 5312 or 5313 
                                of title 5, United States Code, having 
                                been nominated by the President and 
                                confirmed by the Senate to that 
                                position;
                                    ``(II) transaction disclosure 
                                report filed by an individual described 
                                in subclause (I) pursuant to section 
                                13105(l) of title 5, United States 
                                Code; and
                                    ``(III) notice of extension or 
                                amendment with respect to a report 
                                described in subclause (I) or (II), 
                                pursuant to subchapter I of chapter 131 
                                of title 5, United States Code; and
                            ``(ii) in a manner that--
                                    ``(I) allows the public to search, 
                                sort, and download data contained in 
                                the reports described in subclause (I) 
                                or (II) of clause (i) by criteria 
                                required to be reported, including by 
                                filer name, asset, transaction type, 
                                ticker symbol, notification date, 
                                amount of transaction, and date of 
                                transaction;
                                    ``(II) allows access through an 
                                application programming interface; and
                                    ``(III) is fully compliant with--
                                            ``(aa) section 508 of the 
                                        Rehabilitation Act of 1973 (29 
                                        U.S.C. 794d); and
                                            ``(bb) the most recent Web 
                                        Content Accessibility 
                                        Guidelines (or successor 
                                        guidelines).''.
    (c) Applicability.--The amendments made by this section shall apply 
on and after the date that is 18 months after the date of enactment of 
this Act.
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