[Congressional Record Volume 170, Number 50 (Thursday, March 21, 2024)]
[Senate]
[Pages S2524-S2526]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 1701. Mr. HAWLEY submitted an amendment intended to be proposed by
him to the bill H.R. 2882, to reauthorize the Morris K. Udall and
Stewart L. Udall Trust Fund, and for other purposes; which was ordered
to lie on the table; as follows:
At the appropriate place, insert the following:
DIVISION ___--BAN STOCK TRADING FOR GOVERNMENT OFFICIALS ACT OF 2024
SECTION 1. SHORT TITLE.
This division may be cited as the ``Ban Stock Trading for
Government Officials Act of 2024''.
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--
[[Page S2525]]
``(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
division, 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 division, 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
[[Page S2526]]
``(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.
______