[Senate Report 107-152]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 378
107th Congress                                                   Report
                                 SENATE
 2d Session                                                     107-152
_______________________________________________________________________



                       PRESIDENTIAL APPOINTMENTS


                        IMPROVEMENT ACT OF 2002

                               __________

                              R E P O R T

                                 of the

                   COMMITTEE ON GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                             together with

                            ADDITIONAL VIEWS

                              to accompany

                                S. 1811

   TO AMEND THE ETHICS IN GOVERNMENT ACT OF 1978 (5 U.S.C. APP.) TO 
   STREAMLINE THE FINANCIAL DISCLOSURE PROCESS FOR EXECUTIVE BRANCH 
                               EMPLOYEES




     May 16 (legislative day, May 9), 2002.--Ordered to be printed

                               __________

                    U.S. GOVERNMENT PRINTING OFFICE
99-010                     WASHINGTON : 2002

                   COMMITTEE ON GOVERNMENTAL AFFAIRS

               JOSEPH I. LIEBERMAN, Connecticut, Chairman
CARL LEVIN, Michigan                 FRED THOMPSON, Tennessee
DANIEL K. AKAKA, Hawaii              TED STEVENS, Alaska
RICHARD J. DURBIN, Illinois          SUSAN M. COLLINS, Maine
ROBERT G. TORRICELLI, New Jersey     GEORGE V. VOINOVICH, Ohio
MAX CLELAND, Georgia                 THAD COCHRAN, Mississippi
THOMAS R. CARPER, Delaware           ROBERT F. BENNETT, Utah
JEAN CARNAHAN, Missouri              JIM BUNNING, Kentucky
MARK DAYTON, Minnesota               PETER G. FITZGERALD, Illinois
           Joyce A. Rechtschaffen, Staff Director and Counsel
                       Susan E. Propper, Counsel
              Richard A. Hertling, Minority Staff Director
                Ellen B. Brown, Minority Senior Counsel
          John T. Daggett, Minority Professional Staff Member
                     Darla D. Cassell, Chief Clerk
                                                       Calendar No. 378
107th Congress                                                   Report
                                 SENATE
 2d Session                                                     107-152

======================================================================



 
           PRESIDENTIAL APPOINTMENTS IMPROVEMENT ACT OF 2002

                                _______
                                

     May 16 (legislative day, May 9), 2002.--Ordered to be printed

                                _______
                                

 Mr. Lieberman, from the Committee on Governmental Affairs, submitted 
                             the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                         [To accompany S. 1811]

    The Committee on Governmental Affairs, to whom was referred 
the bill (S. 1811) to amend the Ethics in Government Act of 
1978 (5 U.S.C. App.) to streamline the financial disclosure 
process for executive branch employees, reports favorably 
thereon with amendments and recommends that the bill as amended 
do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background.......................................................2
III. Discussion of Legislation........................................3
 IV. Legislative History..............................................9
  V. Section-by-Section Analysis.....................................10
 VI. Evaluation of Regulatory Impact.................................18
VII. CBO Cost Estimate...............................................18
VIII.Additional Views................................................19

 IX. Changes to Existing Law.........................................21

                         I. Purpose and Summary

    S. 1811, the Presidential Appointments Improvement Act of 
2002, is a bipartisan bill to improve the Presidential 
appointment process without violating the spirit and letter of 
the conflict of interest laws and to provide a newly elected 
President the ability to submit nominations to the Senate for 
Presidential appointments as expeditiously as possible after 
the President takes office. As Senator Thompson, the bill's 
chief sponsor, stated, ``The Presidential appointments process 
is unnecessarily long, burdensome, and complex.'' The bill 
streamlines the financial disclosure requirements for high 
level executive branch nominees and employees. It also 
strengthens existing disclosure requirements by: requiring 
newly appointed officials who have not complied with an ethics 
agreement within the original time specified to file a monthly 
notification of the status of their steps to comply until all 
terms of the agreement have been met; and requiring the Office 
of Government Ethics (``OGE'') to post a monthly notice of any high 
level employees who received waivers of certain conflict of interest 
laws in the previous month. In addition, the legislation provides key 
information regarding Presidentially appointed positions to the major 
party Presidential candidates shortly after they are nominated, directs 
agencies to recommend which positions requiring Senate confirmation 
within the agency could be eliminated, and asks OGE, in conjunction 
with the Attorney General, to conduct a comprehensive review of 
conflict of interest laws relating to Federal employment.

                             II. Background


          creation of public financial disclosure requirements

    The Ethics in Government Act of 1978, as amended, 5 U.S.C. 
App. Sec. 101 et seq., was enacted to require high level 
officials and employees in the executive, legislative and 
judicial branches of the Federal government to disclose in a 
public report information about their income, assets and 
liabilities. The purposes of this law included ``increas[ing] 
public confidence in the government'' and ``demonstrat[ing] the 
high level of integrity of the vast majority of public 
officials.'' S. Rpt. 95-170, at 21. Consequently, a goal of 
this disclosure is ``to identify potential conflicts of 
interest or situations that might present the appearance of a 
conflict of interest.'' S. Rpt. 95-170, at 117. Those required 
to file reports under the current law include, among others, 
the President and Vice President, high level White House staff, 
all officers and employees in the executive branch in positions 
classified above GS-15, high-ranking officials and employees of 
the United States Postal Service, Members of Congress and top 
legislative branch officers and employees, Supreme Court 
Justices, Federal appellate and district court judges, judges 
in other courts created by Congress, and high-ranking staff in 
the judicial branch.
    The 1978 law required the disclosure of holdings, 
liabilities and transactions using categories of value rather 
than an exact value of the property, liability or transaction 
involved. ``[T]he use of categories of value fully meets the 
legitimate public purpose of identifying potential conflicts 
and the magnitude of those conflicts, while not requiring a 
yearly appraisal of each holding and also minimizing the 
invasion of privacy involved.'' S. Rpt. 95-170, at 117. The 
original law had categories of value up to $100,000 or more for 
income, and greater than $250,000 for assets, liabilities and 
transactions. The Ethics Reform Act of 1989, P.L. 101-194, 
added three new categories at the upper end for assets, 
liabilities and transactions, covering values of greater than 
$1,000,000, and two new categories of income, also requiring 
disclosure of up to $1,000,000 or more. Additional increases in 
these upper categories were made in 1995, in the Lobbying 
Disclosure Act, P.L. 104-65. Two new categories were added for 
income, requiring disclosure up to $5,000,000 or more, and four 
new categories were created for assets, liabilities and 
transactions, requiring disclosure of values up to $50,000,000 
or more. These categories are in effect today.

     the need for changes in executive branch financial disclosure

    High level executive branch employees have been required 
since 1978 to file financial disclosure reports in connection 
with their entrance into government and thereafter on an annual 
basis. P.L. 95-521. Those subject to this requirement include 
individuals nominated by the President to serve in high level 
executive branch positions.
    The Constitution of the United States authorizes the 
President to nominate and, by and with the advice and consent 
of the Senate, appoint officers of the United States. In recent 
years, various aspects of the process by which the President 
selects nominees and the Senate confirms them have been 
criticized as unnecessarily difficult and slow.
    Since the mid-1980's, nearly a dozen major studies, 
including several Presidential Commissions, have examined the 
need for changes in the process a President uses to nominate 
individuals who will serve in high-level executive branch 
positions in his Administration. The Committee has compiled a 
summary of the findings of these reports, which is reprinted in 
the hearing record for its April 2001 hearings on the State of 
the Presidential Appointment Process. S. Hrg. 107-118. A number 
of these reports make the case that the myriad of paperwork 
required by the different offices involved in vetting the 
President's executive branch nominees needs to be condensed 
into standardized forms. In addition, many of the commissions 
come to the conclusion that the financial disclosure 
requirements for these positions should be streamlined.
    In the two years leading up to the Presidential election of 
2000, a number of think tanks and academics, including the 
Brookings Institute's Presidential Appointee Initiative, the 
American Enterprise Institute's Transition to Governing 
Project, and the White House 2001 project, began looking at the 
issues surrounding the transition to a new Presidential 
administration. Their studies identified a number of obstacles 
that made it difficult for a new President to put his new 
Administration in place in an expeditious fashion. They 
expressed considerable concern over the increasing amount of 
time needed in successive administrations since the Reagan 
Administration to nominate and confirm new high level executive 
branch appointees. These groups identified aspects of the 
Presidential appointment process that they believed slowed this 
process unnecessarily and imposed burdens on prospective 
nominees. These groups expressed concern that, absent changes 
to improve this process, future Presidents would find it 
increasingly hard to encourage qualified individuals to serve 
in the executive branch.
    As a result of these efforts, the Committee received many 
recommendations designed to speed up the appointment process. A 
key recommendation from many sources was to streamline the 
financial disclosure requirements for those executive branch 
nominees who report under the provisions of the Ethics in 
Government Act of 1978 (5 U.S.C. App. Sec. 101(b)). A survey 
conducted by the Presidential Appointee Initiative of senior 
level appointees from the Reagan, George H. W. Bush and Clinton 
Administrations showed that in each successive administration, 
appointees found the existing financial disclosure requirements 
more burdensome and difficult to meet. Others agreed that the 
current requirements seek more information than may be 
necessary to determine whether conflicts exist for executive 
branch employees. Scott Harshbarger ofCommon Cause stated, in 
testimony before the Committee, ``The disclosure form needs to contain 
all the information necessary to identify potential conflicts [of 
interest.] It does not need to be a net worth statement.'' S. Hrg. 107-
118, at 30.

                     III. Discussion of Legislation


                 EXECUTIVE BRANCH FINANCIAL DISCLOSURE

    S. 1811 simplifies financial disclosure reporting by high 
level executive branch nominees and employees, including the 
President and Vice President, high level White House staff, all 
officers and employees in positions classified above GS-15, and 
high-ranking officials and employees of the United States 
Postal Service. It substantially reduces the amount of detail 
these high level nominees and employees are required to provide 
regarding their sources of income, assets and liabilities, 
although it requires the reporting of sufficient information on 
the forms to ensure that the existence of potential conflicts 
of interest can be determined. In addition, while S. 1811 
reduces the amount of detail a high level executive branch 
nominee or employee must report regarding financial interests, 
it is important to note that OGE, the relevant Department 
Secretary, or designated agency ethics official retains the 
ability under Section 206 to require the individual to provide 
additional information needed to complete the form or perform a 
conflict of interest analysis.
    One of the significant areas of change is in the categories 
of value used to report income, assets and liabilities. By 
raising the minimum thresholds for reporting, lowering the top 
valuation categories and reducing the number of categories 
overall, S. 1811 simplifies the financial disclosure forms and 
limits the privacy intrusion occasioned by making these forms 
public. These reductions put the focus back on the use of the 
forms for conflict of interest determinations rather than as 
statements of net worth.
    Under current law, sources of investment income must be 
reported under one of ten categories, once the income from that 
source exceeds $200 during the reporting period. The top 
category of value is $5,000,000 or greater. In addition, filers 
must report the exact amount of all other income, such as 
earned income and honoraria, instead of using the categories of 
value for these sources. S. 1811 requires that all income be 
treated (other than honoraria received while in government 
service) the same, the threshold for reporting income be raised 
to $500 and the number of categories of value be reduced from 
10 to 5, with a maximum category of ``over $2,500,000.''
    The threshold for reporting assets is increased from $1001 
to $5001, while the number of categories of value a filer must 
use to report assets is reduced from 11 to 5. The maximum 
category for reporting assets is also lowered, from the current 
``over $50,000,000'' to ``greater than $2,500,000.''
    Current law requires reporting of liabilities using 11 
categories of value, ranging from a threshold of $10,001 to 
``over $50,000,000.'' S. 1811 would raise the threshold for 
reporting liabilities to those which exceed $20,000, although 
if the aggregate amount owed by a nominee seeking Senate 
confirmation on all revolving charge accounts held exceeds 
$20,000 as of any date within 30 days of filing the report, the 
nominee must report that total as a liability. The number of 
categories of value that must be used for reporting liabilities 
is reduced to 4, with a top category of ``over $1,000,000.''
    S. 1811 also reduces the burden of reporting under current 
law in several other respects. For example, it eliminates the 
current requirement to report the itinerary of ``reimbursed'' 
trips paid for by non-government entities (while retaining 
disclosure of information on dates and sources of 
reimbursement), simplifies the reporting of transactions 
involving real property or securities, reduces under certain 
circumstances the amount of information a new filer must 
provide about his or her private sector clients, and conforms 
the requirements for reporting a spouse's investment and non-
investment income to those used by the filer. It also 
substantially raises the threshold for reporting deposit 
accounts in a financial institution and government securities 
to $100,000. Under current law, deposit accounts over $5000 
must be reported as assets, and government securities worth 
more than $1000 must be disclosed as personal property.
    Although these changes will under certain circumstances 
result in less detailed information about the financial 
interests of executive branch nominees and employees, OGE has 
informed the Committee that the information to be reported 
under these provisions will be more than sufficient to 
determine whether conflicts of interest exist. The information 
reported will still indicate whether the filer has income or 
assets worth as much as $2,500,000 or more and liabilities of 
$1,000,000 or more, amounts that will enable a reviewer to 
determine whether any of these interests might present a 
conflict with the filer's job responsibilities.
    Once conflicts are identified, it is important to note that 
current law already provides safeguards to ensure that high 
level executive branch employees cannot take official action on 
matters that would affect their personal financial interests. 
If an incoming executive branch nominee or employee has 
holdings or other financial interests that raise conflict 
concerns, the OGE or the designated agency ethics official can 
require the individual to take one of a number of different 
actions to avoid conflicts while in office. (Those entering 
Federal service can be required to sign an agreement with the 
employing agency regarding what action they will take to 
eliminate or avoid conflicts while in office; one Senate 
committee asks nominees to agree to divest all holdings as a 
condition of confirmation. 5 CFR Part 2634, Subpart H.) The 
action required is determined on a case-by-case basis depending 
on the duties of the position and the nature and extent of the 
holdings. If the disqualification to act due to an individual's 
financial interest is so basic to the responsibilities of the 
position that it would impede the government's ability to get 
the services it expects from that individual, the individual 
can be required to divest that interest in order to hold that 
position. 5 CFR Part 2635, Subpart D. Other actions that can be 
required include recusal from any action that would present a 
conflict or creating a blind trust. 18 U.S.C. Sec. 208; 5 CFR 
2634.802. An individual can also seek a waiver of the ethics 
rules undercertain circumstances. Id.
    The combination of financial disclosure, as required by S. 
1811, and the safeguards current law already has in place to 
preclude executive branch officers and employees from acting on 
matters that could affect their financial interests, will 
continue to serve the purposes for which the Ethics in 
Government Act was originally designed. These provisions will 
maintain public confidence in the government and deter 
conflicts of interest from arising.

               LEGISLATIVE AND JUDICIAL BRANCH REPORTING

    Under current law, financial disclosure by all three 
branches of the Federal government is subject to the same set 
of requirements. 5 U.S.C. App. Sec. 101 et seq. However, 
because the record before the Committee focused exclusively on 
the issues regarding financial disclosure by executive branch 
nominees and employees, and the recommendations the Committee 
received raised concerns solely regarding the impact of the 
current requirements on executive branch nominees and 
employees, S. 1811 does not make any changes in such reporting 
for the legislative or judicial branches.
    There are also differences in the actions that employees in 
the legislative and judicial branches, in comparison to 
employees in the executive branch, may be required to take 
based on financial disclosure information. Executive branch 
officers and employees are subject to an array of remedies, 
such as divestiture and blind trusts, that ensure that these 
individuals do not act on matters that could affect their 
financial interests. In contrast, the Senate Ethics rules 
provide for greater discretion. As the Senate Ethics Manual 
explains, ``[f]inancial interests and investments of Members 
and employees * * * may present conflicts of interest with 
official duties. Members and employees * * * need not, however, 
divest themselves of assets upon assuming their positions, nor 
must Members disqualify themselves from voting on issues that 
generally affect their personal financial interests [NB: except 
in the unusual situation in which a bill is designed to affect 
a limited class of people that would include the Member or the 
Member's family.] Instead, public financial disclosure provides 
the mechanism for monitoring and deterring conflicts.'' S. Pub. 
106-40 (2000). Financial disclosure also continues to serve an 
important function in deterring conflicts of interest for 
Federal judges, who are not under any obligation to divest any 
financial holdings while serving but must recuse themselves if 
they determine that a matter before the court presents a 
conflict with their financial or fiduciary interests. 28 U.S.C. 
Sec. 455. While these differences may not rule out changes in 
financial disclosure for the legislative or judicial branches, 
the issues presented for those two branches warrant separate 
study beyond the scope of the Committee's inquiry at this time.

                        PUBLIC NOTICE OF WAIVERS

    Under the Federal criminal laws, an executive branch 
employee is prohibited from participating in any official 
matter in which the employee's financial interest could be 
directly affected. 18 U.S.C. Sec. 208(a). An executive branch 
employee may seek a waiver of this criminal conflict of 
interest statute in cases in which there might be a potential 
appearance of, but not actual, personal self-dealing. 18 U.S.C 
Sec. 208(b). If a waiver is granted, the employee may 
participate in the matter that otherwise appeared to present a 
conflict. The statutory test for issuing a waiver requires a 
determination by a third person, such as a designated agency 
ethics official, before the employee takes any action on the 
matter, that the employee's financial interest in the matter on 
which he would act ``is not so substantial as to be deemed 
likely to affect his services [in that matter].'' 18 U.S.C. 
Sec. 208(b). Waivers are required by law to be publicly 
available. 18 U.S.C. Sec. 208(d). However, obtaining access to 
these waivers is not an easy process, as an interested person 
must request a copy of the waiver granted to a specific 
employee from the relevant agency. This requires the requestor 
to know in advance that an individual has received a waiver and 
which agency to approach; there is no index one can search to 
obtain this information.
    S. 1811 improves the public's ability to access waivers in 
two ways. First, it requires agencies to provide OGE with a 
monthly list of high level employees who have received waivers. 
OGE will then post the list on the Internet along with a list 
of any waivers granted by OGE itself. This will allow 
interested parties to seek copies of waivers more easily. In 
addition, the legislation requires filers to attach copies of 
any waivers they have received in the previous year to the next 
report they file.
    It is important to understand that granting a waiver is an 
acknowledgment by OGE or the employing agency that the 
individual's financial interest is not a bar to acting on a 
matter that could otherwise appear to be a conflict. Moreover, 
waivers are only one mechanism used by the executive branch to 
resolve potential and actual conflicts of interest; others 
include divestiture, recusal and blind trusts. OGE can, and 
perhaps should, provide an explanation of the significance of 
waivers in the context of the larger financial disclosure 
requirements when it provides the disclosure required by the 
legislation on its website, so that its monthly Internet 
posting is correctly understood and used by the public.

             Notice of failure to satisfy ethics agreement

    High level executive branch nominees subject to Senate 
confirmation complete the public financial disclosure form as 
part of the nomination process. Other high level executive 
branch employees file a public financial disclosure form within 
30 days of entering the covered position. If an employee's or 
nominee's financial interests will create a conflict of 
interest with the job responsibilities the individual is 
expected to perform, the employing agency can require the 
individual to sign an agreement to take action to remove the 
conflicts. 5 CFR 2634 Subpart H. The actions specified in the 
agreement, such as divestiture, must occur by the end of a 
period stated in the agreement or, if no time is stated, within 
90 days after the date of the agreement. 5 U.S.C. App. 
Sec. 110. At the end of the time specified, the individual must 
notify the entity with which the agreement is made of any 
action taken by the individual pursuant to the agreement. Id. 
If, however, all the terms of the agreement have not been 
satisfied within the time provided, thereis no requirement that 
the individual continue reporting and no routine way to ascertain if 
the agreement has been fulfilled prior to the next due financial 
disclosure report.
    In short, current law leaves a gap in the ability of agency 
ethics officers to monitor ethics agreements with the goal of 
ensuring that an individual does not take official action on 
matters that present a conflict with his financial interests. 
To address this concern, and ensure that ethics agreements can 
be properly monitored, S. 1811 requires individuals who have 
not met all the terms of their agreements within the time 
required to continue filing on a monthly basis notification of 
their failure to comply until all of the terms of the agreement 
have been met.

                            OTHER PROVISIONS

    The Committee received many recommendations for changes to 
the Presidential appointment process in addition to the 
suggestions to streamline the executive branch financial 
disclosure requirements. S. 1811 addresses a number of these 
issues in addition to the financial disclosure provisions that 
are the main focus of this legislation.
    Several reports suggested that the number of Presidentially 
appointed positions be reduced as one way to both streamline 
the bureaucracy and speed the confirmation process. Although 
the legislation does not establish a limit on the number of 
such positions, it does require executive branch agencies to 
report to the President and to Congress on the number and 
layers of Presidentially appointed positions within that agency 
that could be eliminated. Agencies have 180 days from the date 
of enactment of the legislation to submit this plan.
    In addition, S. 1811 requires the Executive Clerk of the 
White House to provide information to the major party nominees 
for President on all positions which are appointed by the 
President, including the names of any incumbents in those 
positions, whether any vacancies exist in any positions, and 
when appointments to these positions will be necessary after 
the date of the Presidential election to ensure the effective 
operation of the government. This information, which the 
Executive Clerk may also provide to any other candidate for 
President, will help encourage a smooth and quick transition to 
a new Administration. It puts essential information regarding 
the positions that will need to be filled if the candidate is 
elected in the hands of each Presidential candidate at an early 
point, and therefore encourages the candidate to think during 
the campaign about who should be selected for those positions.
    Finally, S. 1811 directs OGE, in conjunction with the 
Attorney General of the United States, to conduct a 
comprehensive review of the conflict of interest laws relating 
to executive branch employment. OGE must submit this report to 
the President and the Congress within 180 days after the date 
of enactment of this legislation. The review must cover the 
criminal and civil conflict of interest laws, and any 
regulations promulgated under the Ethics in Government Act, and 
should make recommendations for legislative changes that would 
provide for better coordination of these laws, and more 
uniformity, efficiency and clarity in their application and 
administration.

                        IV. Legislative History

    On June 14, 2000, the Committee reported out S. 2705, the 
Thompson-Lieberman Presidential Transition Act of 2000, which 
sought to smooth the transition to a new Presidential 
Administration by allowing the use of Presidential transition 
funds to hold orientation sessions for new high-level 
appointees and to prepare a transition directory to guide new 
appointments. S. 2705 also directed OGE to conduct a study of 
the financial disclosure requirements for executive branch 
nominees and appointees. The provisions of S. 2705 were 
incorporated into H.R. 4931, which was passed in the Senate by 
unanimous consent on September 28, 2000 and signed into law by 
the President on October 12, 2000 as P.L. 106-293.
    On April 4 and 5, 2001, the Committee held two days of 
hearings on the state of the Presidential appointment process. 
In its testimony, OGE presented the report required by the 
Presidential Transition Act, and offered its suggestions for 
streamlining the financial disclosure process for executive 
branch nominees and employees. The report identified instances 
in which the information on the SF 278, the financial 
disclosure form used by high level executive branch nominees 
and employees, sought the same or similar information sought by 
other forms used during the confirmation process, including 
forms nominees are asked to complete for the White House, the 
Federal Bureau of Investigation and Senate confirming 
committees. In addition, the OGE report noted that:

          Public financial disclosure by high-level Government 
        employees was introduced into law to provide a tool for 
        identifying and resolving potential conflicts of 
        interest and to increase public confidence in the 
        Government. It is fundamental to the executive branch 
        ethics program. The current public financial disclosure 
        system, however, requires reporting more information 
        than is useful or necessary to achieve its fundamental 
        goals. * * * [U]nnecessary detail could be eliminated 
        without ``lessening substantive compliance with any 
        conflict of interest requirement.''

    OGE recommended streamlining executive branch financial 
disclosure along the general principles ultimately included in 
S. 1811: reducing the number of income, assets and liability 
valuation categories, shortening some of the time periods the 
reporting must cover, raising the dollar thresholds for 
reporting financial holdings, and eliminating what OGE 
considered redundant reporting. In OGE's view, the current 
requirements exceed what is necessary to determine whether an 
executive branch nominee's or employee's finances present 
potential conflicts of interest, particularly in light of the 
other safeguards in place to ensure the absence of such 
conflicts for those in the executive branch, such as agreements 
to divest holdings upon confirmation, recusal, and waivers. OGE 
also recommended that the Senate confirming committees re-
evaluate their own financial disclosure forms to avoid some of 
the duplication and overlap with other forms nominees must 
complete.
    Other witnesses at the April hearing, including Paul Light 
and Franklin D. Raines, who testified on behalf of the 
Presidential Appointee Initiative, and Norman J. Ornstein, who 
appeared on behalf of the Transition to Governing Project, 
supported reductions in financial disclosure requirements for 
high level executive branch employees. Scott Harshbarger, 
testifying on behalf of Common Cause, expressed the view that 
while some changes were warranted, OGE's proposal was too 
drastic in scope. In an April 30, 2001 letter to then-Chairman 
Thompson following the hearing, Common Cause proposed finding a 
middle ground between the current 11 categories of valuation 
nominees must use to report their holdings, and the three new 
categories suggested by OGE. Common Cause also urged the 
Committee to use a higher maximum category of value for assets 
and income than the ``over $100,000'' category proposed by OGE.
    S. 1811 responds to the issues that have been raised 
regarding executive branch financial disclosure by 
substantially reducing the amount of detail high level nominees 
and Federal employees are required to provide regarding their 
sources of income, assets and liabilities, although retaining 
sufficient information on the forms to ensure that the 
existence of potential conflicts of interest can be determined. 
In doing so, the legislation strikes a balance between the 
extensive information that must be reported under current law 
and the considerably more limited set of standards proposed by 
OGE. S. 1811 is also responsive to some of the other issues 
regarding the Presidential appointment process that were cited 
in the hearing testimony, such as the growing number of 
Presidentially-appointed positions requiring Senate 
confirmation, and the need of Presidential candidates to have 
accurate information regarding positions requiring Presidential 
appointment as early as possible to help speed and smooth the 
transition to a new Administration.
    Senators Thompson and Lieberman introduced this legislation 
on December 12, 2001, with Senators Akaka, Durbin, Voinovich 
and Lugar as co-sponsors. At the Committee's March 21, 2002 
markup, Senators Akaka and Voinovich offered an amendment 
making several technical corrections in the bill, which the 
Committee adopted by a voice vote with no nays. The Committee 
reported S. 1811 as amended by voice vote, with no nays. 
Members present were Levin, Akaka, Cleland, Thompson, Stevens, 
Voinovich, Cochran, Bennett and Lieberman.

                     V. Section-by-Section Analysis


Section 1. Short title

    This Act may be cited as the ``Presidential Appointments 
Improvement Act of 2002.''

Section 2. Purposes

    This section sets forth the purposes of the bill: to 
improve the Presidential appointment process without violating 
the spirit and letter of the conflict of interest laws and to 
provide a newly elected President the ability to submit all 
nominations to the Senate for all Presidential appointments as 
expeditiously as possible after the President takes office.

Section 3. Public financial disclosure for judicial and legislative 
        personnel

    The legislation separates financial disclosure reporting 
requirements for the executive branch from those applying to 
the legislative and judicial branches. Section 3 sets forth the 
public financial disclosure requirements which apply to 
employees in the judicial and legislative branches, but makes 
no substantive change to current law with respect to these 
employees. The primary change to current law made by section 3 
is that Title I of the Ethics in Government Act no longer 
applies to officers and employees of the Executive Branch. 
Executive Branch employees are covered by a new Title II 
(established in section 4 of this bill).
    In addition, references to the Office of Technology 
Assessment have been deleted from sections 103(b)(1)(A)(i)(II) 
and 109(9)(H) of 5 U.S.C. App. because this Office no longer 
exists. Section 109(9)(H) adds the Office of Compliance to the 
list of legislative branch components covered by the Act.

Section 4. Public financial disclosure for the executive branch

    This section sets forth the public financial disclosure 
requirements for Executive Branch personnel by creating a new 
Title II of the Ethics in Government Act of 1978. This title 
streamlines financial disclosure for the executive branch, 
while maintaining sufficient reporting to ensure that the 
existence of conflicts of interest can be determined. While the 
Act reduces the amount of detail a high level executive branch 
nominee or employee must report regarding financial interests, 
it is important to note that the Office of Government Ethics 
(``OGE''), Department Secretary, or designated agency ethics 
official retains the ability under Section 206 to require the 
individual to provide additional information needed to complete 
the form or perform a conflict of interest analysis. The 
legislation restates current law except as specifically noted 
below.
    Title II--Section 201. Persons Required to File.--
Subsection 201(c)(2) requires that an individual who is sworn 
in as President or Vice President and who did not hold either 
of those two positions immediately before taking the oath of 
office shall file a financial disclosure report within 30 days 
of taking the oath. This section is intended to make clear that 
a newly-elected President or Vice President or an individual 
who takes the oath of office of either of those two positions 
outside the normal election cycle shall file a report within 30 
days of taking the oath to give the public timely information 
regarding the financial interests of these two officials. An 
individual who is re-elected as President or Vice President, or 
a sitting Vice President who is elected President, would not be 
affected by this provision and would continue to file annually 
on May 15.
    Subsection 201(e) makes clear that an individual who moves 
from any position in the executive branch covered by these 
reporting requirements to any elected position in either the 
executive or legislative branches need not file a termination 
report for the first position. The subsection retains its 
current exemption from filing termination reports for 
individuals who move from any covered position to any other 
covered, non-elected position.
    Subsection 201(f)(6) clarifies which officers or employees 
of the Postal Service are required to file by referencing the 
levels of the Postal Career Executive Service rather than an 
amount of basic pay. Officers and employees of the Postal Rate 
Commission who are required to file continue to be referenced 
by amounts of basic pay.
    Section 202. Contents of Reports.--Subsection 202(a)(1)(A) 
simplifies the reporting of any income, such as earned income 
and honoraria, that is not derived from investments. Instead of 
reporting exact amounts for these sources, filers will use the 
same categories of value used for the reporting of investment 
income. However, filers are required to continue to report the 
exact value and date of honoraria received during government 
service. This subsection also changes current law by 
eliminating the requirement for filers to list all payments 
made to charitable organizations in lieu of honoraria as well 
as the requirement to provide a confidential list of the 
recipients of such payments. Finally, the subsection raises the 
threshold on reporting income from ``$200 or more'' to ``more 
than $500.''
    Subsection 202(a)(1)(B) changes the current disclosure 
requirement for investment income to allow all investment 
income, rather than just dividends, rents, interest and capital 
gains, to be reported by category of amount. Previously, any 
other investment income, such as that derived from partnership 
or trust distributions, was required to be reported by exact 
amount. The subsection also raises the reporting threshold from 
$200 to more than $500.
    Subsection 202(a)(1)(C) reduces the number of categories 
used for reporting the value of investment income from 10 to 5. 
This subsection reflects OGE's advice to the Committee that 
these reporting categories provide adequate information to 
assess an executive branch filer's potential conflicts of 
interest. These same categories apply to earned income.
    Subsection 202(a)(2)(B) makes a slight change to current 
law regarding the reporting of reimbursements by eliminating 
the requirement to report the itinerary of a ``reimbursed'' 
trip paid for by a non-government entity. However, filers will 
continue to report the dates of travel. The subsection also 
retains all current requirements to provide the source and a 
brief description of reimbursements aggregating more than the 
minimal value established under section 7342(a)(5), Title 5, 
United States Code, or $250, whichever is greater.
    Subsection 202(a)(3) updates current requirements by 
raising the general threshold of reportable assets to $5,000, 
increasing the threshold reporting requirement for deposit 
accounts in a financial institution from $5,000 to $100,000, 
and by creating a new threshold of $100,000 for government 
securities. Currently, government securities are treated like 
other personal property with a $1,000 reporting threshold. The 
changes made to the latter two reporting requirements reflect 
OGE's advice to the Committee that these assets rarely present 
conflicts of interest per se, although public disclosure is 
still required at higher amounts. In the unusual case where a 
conflict might exist, OGE has advised the Committee that the 
bill requires sufficient disclosure to allow a conflict 
determination to be made.
    Subsection 202(a)(4) raises the disclosure threshold for 
liabilities from $10,000 to $20,000. Additionally, the 
subsection adds, for Senate-confirmed nominees only, the 
requirement to report the aggregate balance of all revolving 
accounts (i.e., credit cards) if the sum of those balances 
exceeds the $20,000 threshold. This change is intended to 
provide a more accurate picture of a nominee's credit card 
debt. Currently, large amounts of credit card debt can remain 
undisclosed as long as the amount due for each individual card 
remains below the liability reporting threshold. This 
information will be helpful to those reviewing a nominee's 
finances and who need a clearer picture of the nominee's total 
liabilities.
    Subsection 202(a)(5) modifies transaction reporting 
requirements, which currently mandate the description, date, 
and category of value of any purchase, sale or exchange of real 
property or a security which exceeds $1,000. The new subsection 
simplifies the current provision by requiring only a 
description of transactions above $5,000 that are not already 
reported elsewhere. It will also continue to apply to annual 
filers only. This subsection reflects OGE's advice to the 
Committee that sufficient conflict of interest analysis 
generally can be conducted without a precise transaction date 
or category of value. The subsection also eliminates redundant 
reporting by not requiring a transaction to be listed if it 
already appears on the form as either an asset or income.
    Subsection 202(a)(6)(A) shortens the reporting period (for 
first-time filers) for major positions held in organizations 
other than the Federal government. Currently, first-time filers 
must report all major positions held in such organizations 
during the previous two years plus the current year. This 
subsection changes the reporting period to the previous year 
plus the current year. Annual filers are unaffected and will 
continue to report major positions held during the previous 
year. The change for first-time filers reflects OGE's advice to 
the Committee that there is rarely a conflict of interest 
justification requiring public disclosure of outside positions 
held prior to that time and that, in cases in which questions 
may remain, reviewers have broad authority to request as much 
additional information as they need.
    Subsection 202(a)(6)(B) modifies current requirements by 
raising the threshold for reporting information about a new 
filer's major clients to include only those who paid the 
reporting individual $25,000 or more during a calendar year; by 
shortening the reporting period from the previous two years 
plus the current year to the previous year plus the current 
year; by allowing the filer to avoid listing such clients if 
they already appear on the form as a source of earned income; 
and by adding an additional exemption from reporting 
information in cases in which the client had a reasonable 
expectation of privacy. OGE has advised the Committee that, 
while conflict of interest analysis should continue to consider 
major clients, the current threshold of $5,000 for requiring 
information on major clients is too low. OGE's advice is that 
there hasbeen a rise in billing fees since 1978 that would make 
a $5000 a year client no longer ``major'' in today's business 
environment for conflict of interest purposes.
    Subsection 202(a)(7) changes current law by eliminating the 
requirement to list the dates of most agreements between the 
filer and a prior employer, such as an agreement regarding the 
filer's continuing participation in the employer's benefit 
plans. The only date which is required by this subsection is 
that of a formal agreement for future employment. Filers are 
still required to describe the parties to and terms of all 
agreements with a prior employer. This change is based on OGE's 
advice to the Committee that most agreement dates are of 
limited use in establishing the existence of a conflict of 
interest.
    Subsection 202(a)(8) does not change the current law's 
requirement that the total cash value of a blind trust must be 
reported by category of amount, but does delete a reference to 
blind trusts executed prior to July 24, 1995 for which the 
trust document prohibited the beneficiary from receiving this 
information. According to OGE, such trusts no longer exist.
    Subsection 202(b)(1) outlines the reporting periods for 
Presidential candidates, nominees to Senate-confirmed 
positions, and new filers who have not previously filed a 
financial disclosure form (as the holder of a prior, covered 
position). The subsection makes no change to current law except 
to reiterate that, in accordance with the changes made by 
subsections 202(a)(6)(A) and (B), positions held and client 
information must be reported only for the preceding calendar 
year plus the current calendar year.
    Subsection 202(c)(1) authorizes OGE to define an additional 
reporting period, by regulation, to fill a reporting gap that 
can occur between a nominee's or new entrant's report and the 
first annual report the individual is required to file.
    Subsection 202(d)(1) reduces the current eleven asset 
valuation categories to five. The Committee has been advised by 
OGE that these 5 categories provide sufficient information to 
determine whether or not a filer has a conflict of interest.
    Subsection 202(d)(3) establishes new categories of value 
for reporting liabilities and qualified blind trusts; 
previously, both were reported using the same categories as 
assets and transactions. The subsection provides for four 
categories instead of the eleven in current law. The Committee 
has been advised by OGE that these 4 categories give adequate 
information to assess whether or not a filer has a conflict of 
interest.
    Subsection 202(e)(1)(A) simplifies the non-investment 
income reporting requirements for spouses to conform those 
outlined in sections 202 (a)(1)(A) and (a)(1)(C), allowing 
spouses to report all such income in valuation categories 
rather than by exact amount. Spouses, however, do not share the 
filer's requirement to report exact amounts of honoraria earned 
while in government service. The subsection also lowers the 
current threshold for reportable spousal income from $1,000 to 
$500. These changes are intended to harmonize the dollar 
thresholds between filer and spouse and to ease the reporting 
burden in general.
    Subsection 202(e)(1)(B) modifies current law to conform to 
the changes made to sections (a)(1)(B) and (a)(1)(C), by 
allowing a spouse to report all investment income by valuation 
category and to utilize a reduced number of these categories. 
These changes are intended to harmonize the dollar thresholds 
between filer and spouse and to mirror the filer's reduced 
reporting burden.
    Subsection 202(e)(1)(F) eliminates a separate value 
category for assets, liabilities, and income greater than 
$1,000,000 if held solely (as opposed to jointly with the 
filer) by dependent children or a spouse. This change is 
intended to help make the reporting categories for filer and 
spouse identical.
    Subsection 202(f)(3) generally retains the current 
definition of ``qualified blind trust'' except that a reference 
to trusts qualified prior to January 1, 1991 would be 
eliminated. According to OGE, such trusts no longer exist.
    Subsection 202(f)(5) changes current filing requirements 
regarding qualified blind trusts by deleting a requirement that 
the filer provide a public copy of a list of the trust assets 
with OGE upon dissolution of the trust. This change reflects 
OGE's advice to the Committee that current law, which prevents 
the filer from knowing which assets the trustee has decided to 
invest in, is sufficient to prevent any conflicts of interest. 
In special cases in which the filer deliberately transfers 
assets to a blind trust in order to preempt a conflict, current 
law already requires that a list of those assets be made 
public. Finally, the trustee of the trust provides public 
notification as assets that the filer placed in the trust are 
sold. Therefore, the deleted requirement has no useful purpose 
in conflict of interest analysis; holdings that might present 
potential conflicts are already a matter of public record.
    Subsection 202(f)(9)(A) establishes the criteria that must 
be met by a new filer or a nominee to a Senate-confirmed 
position in order not to disclose the assets of certain trust 
and investment funds that otherwise would be required on a 
financial disclosure form. Under this subsection, a new filer 
or nominee is not required to disclose these assets when all of 
the following three conditions are met: reporting would result 
in the disclosure of financial information of another not 
otherwise required to report, disclosure of the information is 
prohibited by contract or the information is not be otherwise 
publicly available, and the reporting individual agrees to 
divest the interest within 90 days of the date of the 
agreement. This provision is included to address the reporting 
requirements for investment vehicles such as limited 
partnerships in which the filer may not have specific 
information about the underlying holdings of the fund necessary 
to complete a financial disclosure form; in which the 
investment manager does not ordinarily disclose the 
investments; or in which other investors do not want the 
identity of their investments disclosed. In these cases, OGE 
has advised the Committee that the filer's agreement to divest, 
and interim recusals when necessary, adequately address 
conflict of interest concerns. A copy of the agreement is 
required to be attached to the financial disclosure report.
    Subsection 202(f)(9)(B) makes the exemption in paragraph 
(A) above applicable to annual and termination filers in 
situations where the asset has been acquired involuntarily, 
such as through marriage or inheritance. Annual filers must 
execute the same written ethics agreement containing a 
commitment to divest the asset no later than 90 days after the 
date on which the report is due.
    Subsection 202(j) requires that designated agency ethics 
officials (DAEOs) submit, on a monthly basis, a list of 
recently granted waivers of criminal conflict of interest laws 
to OGE. The subsection then requires that OGE make publicly 
available on the Internet notice of these waivers and of any 
waivers OGE itself has granted. By law (18 U.S.C. 208(d)(1)), 
these waivers are available to the public. In practice, 
however, the granting of such waivers is not announced; 
therefore, interested outside parties are rarely aware that 
they are available for review. The subsection is intended to 
address this access issue by creating a system of public 
notification. Because waivers can be granted by both DAEOs and 
OGE, the subsection requires DAEOs to report the granting of 
waivers to OGE and then assigns to OGE the responsibility for 
publishing all waiver notices.
    Subsection 202(k) requires that waivers be included with 
the financial disclosure form for the year in which they were 
granted. By establishing a uniform policy for waiver filing, 
the subsection is intended to improve public access to waivers 
and to be complementary to subsection 202(j) above, which lays 
out a uniform policy for waiver notification.
    Subsection 202(l) requires OGE to provide upon request any 
waiver which OGE itself has granted and notice of which has 
been published in accordance with subsection (k) above. This 
subsection is intended to reaffirm the public's ability to 
access these waivers. It should be noted that all waivers, 
whether on file with OGE or an employing agency, must be made 
available to the public on request in accordance with 18 U.S.C. 
Sec. 208(d).
    Section 203. Filing of Reports.--Subsection 203(b) does not 
change current requirements for the President and Vice 
President to file reports with OGE, but does eliminate the 
requirement for the Independent Counsels and their staffs to 
file with OGE.
    Section 204. Failure to File or Filing False Reports.--
Subsection 204(d)(1) raises the current late filing fee from 
$200 to $500. Subsection 204(d)(2) modifies the current 
standard for a waiver for a late filing fee from 
``extraordinary circumstances'' to ``good cause shown.'' OGE 
has reported to the Committee that its experience has 
demonstrated that a ``good cause'' test is more appropriate in 
cases in which OGE believes that the fee should be waived, 
particularly when the failure to file on a timely basis has not 
been the fault of the filer.
    Section 206. Review of Reports.--Subsection 206(b)(2)(A) 
clarifies that a reviewer may request additional information if 
the reviewer believes it is necessary for the form to be 
complete or for conflicts of interest analysis. The standard 
set in current law is more general, allowing the reviewer to 
request more information whenever the reviewer believes it is 
necessary.
    Section 208. Authority of the Comptroller General.--This 
section eliminates the requirement that the Comptroller General 
conduct regular studies of the financial disclosure system. The 
elimination of this requirement is consistent with efforts to 
eliminate unnecessary periodic government reports, but does not 
in any way affect the Comptroller General's authority to 
conduct such studies on an as needed or requested basis. Under 
31 U.S.C. Sec. 716, agencies must make all agency records 
available to the Comptroller General on request.
    Section 209. Definitions.--Current definitions remain the 
same except: (1) ``gift'' no longer includes an exception for 
consumable products provided by home-State businesses because 
of its primary relevance for Members of Congress (who are now 
covered by Title I); (2) ``gift'' includes an exception for 
gifts accepted or reported pursuant to the Foreign Gifts Act; 
(3) ``honoraria'' no longer references a section of law that 
has been ruled unconstitutional for the executive branch and, 
instead, is defined as a thing of value for a speech, article 
or appearance; and (4) ``income'' includes prizes and awards as 
a part of the items that are considered income.
    Section 210. Notice of Actions Taken to Comply with Ethics 
Agreements.--Subsection 210(a) adds a continuing monthly 
reporting requirement regarding the status of steps taken to 
comply with an ethics agreement until all terms of the 
agreement have been met. Under current law, an individual who 
has agreed to take certain actions in order to avoid conflicts 
of interest is required to file only one notification of the 
actions that have been taken under the agreement, which must be 
filed by the end of the period stated in the agreement or, if 
no period is stated, within 90 days after the date of the 
agreement, even if the terms of the agreement have not yet been 
met.

Section 5. Transmittal of record relating to presidentially appointed 
        positions to presidential candidates

    This section requires the Executive Clerk of the White 
House to transmit a list of all presidentially-appointed 
positions to the major party presidential candidates after 
their respective nominating conventions. After this is 
complete, the Clerk may then transmit the list to any other 
presidential candidates. Under current law, such a list can 
only be provided to the President-elect after the November 
election. This provision is intended to speed the 
identification and vetting of major Presidential appointees, 
which the Committee hopes will in turn accelerate the 
announcing, nominating, and possibly confirming phases of the 
process.

Section 6. Reduction of appointed positions requiring senate 
        confirmation

    This section requires each agency to prepare a plan to 
reduce both the number and layers of Senate-confirmed 
presidential appointees within the agency. It is intended that 
the preparation of the plan will give agencies the opportunity 
to recommend to the President and Congress whether any Senate-
confirmed presidential positions in each agency should be 
eliminated.

Sec. 7. Attorney general review of conflict of interest law

    This section requires OGE, in consultation with the 
Attorney General, to conduct a comprehensive review of conflict 
of interest laws relating to Federal employment. Such a review, 
which will consider the coordination and uniformity of both 
civil and criminal statutes, has not been done for a number of 
years.

Sec. 8. Effective date

    This section provides that the amendments made by sections 
3 and 4 take effect on January 1 of the year following the date 
of enactment of the Act, as long as the enactment takes place 
before July 1. If the Act is enacted on or after July 1, 
sections 3 and 4 take effect on July 1 of the following year. 
Sections 1, 2, 5, 6, 7 take effect on the date of enactment.

                  VI. Evaluation of Regulatory Impact

    Paragraph 11(b)(1) of the Standing Rules of the Senate 
requires that each report accompanying a bill evaluate ``the 
regulatory impact which would be incurred in carrying out this 
bill.''
    The enactment of this legislation will not have significant 
regulatory impact.

                         VII. CBO Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, April 10, 2002.
Hon. Joseph I. Lieberman,
Chairman, Committee on Governmental Affairs,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1811, the 
Presidential Appointments Improvement Act of 2002.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

S. 1811--Presidential Appointments Improvement Act of 2002

    S. 1811 would amend the Ethics in Government Act of 1978 to 
simplify and streamline the financial disclosure requirements 
for executive branch personnel. The bill would direct the 
Office of Government Ethics and the Attorney General to conduct 
a study of conflict of interest laws relating to federal 
employment. S. 1811 also would require all executive agencies 
to submit a plan to the President and the Congress to reduce 
the number of Presidential appointments requiring Senate 
confirmation. Finally, the bill would increase the penalty for 
late filing of financial disclosure reports from $200 to $500.
    CBO estimates that implementing S. 1811 would cost less 
than $500,000 for the new disclosure form and studies, subject 
to the appropriation of the necessary funds. Enacting the bill 
could also increase the collection of governmental receipts 
(revenues) through late filing fees, but CBO estimates that any 
increase would not be significant. Because the bill could 
affect receipts, pay-as-you-go procedures would apply. The bill 
contains no intergovernmental or private-sector mandates as 
defined in the Unfunded Mandates Reform Act and would not 
affect the budgets of state, local, or tribal governments.
    The CBO staff contact for this estimate is Matthew 
Pickford. This estimate was approved by Peter H. Fontaine, 
Deputy Assistant Director for Budget Analysis.

                         VIII. Additional Views

                   ADDITIONAL VIEWS OF SENATOR LEVIN

    As the Committee report notes, the financial disclosure 
requirements for federal employees are currently the same for 
all three branches of the federal government. S. 1811, however, 
would disturb that equanimity by amending the financial 
disclosure requirements for just the executive branch. While I 
support the effort to simplify our financial disclosure 
requirements, I believe any changes that are made to such 
requirements should be uniform for all three branches of 
government. If streamlining the financial disclosure 
requirements is a good idea for the executive branch, it should 
be a good idea for the legislative and judicial branches as 
well.
    The current financial disclosure requirements were spawned 
in a series of Congressional scandals in the late 1980's that 
led us to tighten the ethics rules. In the 101st Congress, 
Senator Rudman and I introduced the Ethics Reform Act of 1989. 
This legislation was the product of months of review conducted 
by a Democratic Ethics Task Force, which I chaired, and a 
Republican Ethics Task Force, which was chaired by Senator 
Rudman. The bill was the first comprehensive reform of ethics 
laws in more than a decade.
    Prior to 1989, there were separate financial disclosure 
requirements for each of the three branches. One of the major 
provisions in the Levin-Rudman legislation was strengthening 
the financial disclosure provisions and making them uniform for 
all three branches. The Levin-Rudman bill became Title II of 
the Ethics Reform Act, P.L. 101-184.
    The Committee contends in its report that ``because the 
record before the Committee focused exclusively on the issues 
regarding financial disclosure by executive branch nominees and 
employees, and the recommendations the Committee received 
raised concerns solely regarding the impact of the current 
requirements on executive branch nominees and employees, S. 
1811 does not make any changes in such reporting for the 
legislative or judicial branches.'' While the focus of the 
Committee's work may have been executive branch nominees and 
employees, I am certain that the Committee could compile the 
same record to support the same changes to the financial 
disclosure requirements in S. 1811 for legislative and judicial 
nominees and employees as well.
    The Committee also notes that there are differences in 
``actions that employees in the legislative and judicial 
branches, in comparison to employees in the executive branch, 
may be required to take based on financial disclosure 
information.'' For example, the Committee notes that executive 
branch officers and employees are subject to remedies such as 
divestiture and blind trusts that ensure that these individuals 
do not act on matters that could affect their financial 
interests. In contrast, the Committee notes that according to 
the Senate Ethics Manual, financial interests and investments 
of Members and employees may present conflicts of interest but 
the Members and employees do not have to divest themselves of 
assets. This difference in remedial action does not mean that 
the financial disclosure requirements of the executive branch 
should be uniquely different.
    The Committee also goes on to differentiate the judicial 
branch from the executive branch by stating that ``financial 
disclosure also continues to serve an important function in 
deterring conflicts of interest for federal judges who are not 
under any obligation to divest any financial holdings while 
serving but must recuse themselves if they determine that a 
matter before the court presents a conflict with their 
financial or fiduciary interests.'' This is not the point--S. 
1811 does not abandon the financial disclosure requirements, it 
just streamlines them.
    The Committee notes that the above reasons may not rule out 
changes in financial disclosure for the legislative or judicial 
branches, and that the issues presented for these two branches 
warrant separate study beyond the scope of the Committee's 
inquiry at this time. Having worked on these issues in 1989 and 
studied the need for uniformity in financial disclosure among 
the three branches, I believe we have a sufficient 
understanding of the issues to determine that the same changes 
to the financial disclosure requirements of the executive 
branch should be made for the legislative and judicial branches 
as well. And, while I voted to report this bill to the full 
Senate, I hope to offer an amendment when the bill reaches the 
Senate floor to keep the disclosure requirements uniform and to 
expand the changes made by the bill to the executive branch to 
all three branches of the federal governments. With the Ethics 
Reform Act of 1989, we made a conscious effort to make the 
financial disclosure requirements for the three branches 
uniform. Nothing has occurred since that time to justify 
separate consideration at this time. I hope we will be able to 
expand the changes in this bill to all three branches before we 
vote on final passage.

                                                        Carl Levin.

                      IX. Changes to Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
S. 1811 as reported are shown as follows (existing law proposed 
to be omitted is enclosed in brackets, new matter is printed in 
italic, and existing law in which no change is proposed is 
shown in roman):

                           UNITED STATES CODE

            TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES

           *       *       *       *       *       *       *


               APPENDIX--ETHICS IN GOVERNMENT ACT OF 1978

   TITLE I--[FINANCIAL DISCLOSURE REQUIREMENTS OF FEDERAL PERSONNEL] 
  JUDICIAL AND LEGISLATIVE PERSONNEL FINANCIAL DISCLOSURE REQUIREMENTS

SEC. 101. PERSONS REQUIRED TO FILE.

    (a) Within [thirty] 30 days of assuming the position of an 
officer or employee described in subsection (f), an individual 
shall file a report containing the information described in 
section 102(b) unless the individual has left another position 
described in subsection (f) or section 201(f) within [thirty] 
30 days prior to assuming such new position or has already 
filed a report under this title with respect to nomination for 
the new position or as a candidate for the position.
    (b)(1) Within [five] 5 days of the transmittal by the 
President to the Senate of the nomination of an individual 
[(other than an individual nominated for appointment to a 
position as a Foreign Service Officer or a grade or rank in the 
uniformed services for which the pay grade prescribed by 
section 201 of title 37, United States Code, is O-6 or below)] 
to a position in the legislative or judicial branch, 
appointment to which requires the advice and consent of the 
Senate, such individual shall file a report containing the 
information described in section 102(b). Such individual shall, 
not later than the date of the first hearing to consider the 
nomination of such individual, make current the report filed 
pursuant to this paragraph by filing the information required 
by section 102(a)(1)(A) with respect to income and honoraria 
received as of the date which occurs [five] 5 days before the 
date of such hearing. Nothing in this Act shall prevent any 
[Congressional] congressional committee from requesting, as a 
condition of confirmation, any additional financial information 
from any Presidential nominee whose nomination has been 
referred to that committee.
    (2) * * *
    (c) Within [thirty] 30 days of becoming a candidate as 
defined in section 301 of the Federal Campaign Act of 1971, in 
a calendar year for nomination or election to the office of 
[President, Vice President, or] Member of Congress, or on or 
before May 15 of that calendar year, whichever is later, but in 
no event later than 30 days before the election, and on or 
before May 15 of each successive year an individual continues 
to be a candidate, an individual other than an incumbent 
[President, Vice President, or] Member of Congress shall file a 
report containing the information described in section 102(b). 
Notwithstanding the preceding sentence, in any calendar year in 
which an individual continues to be a candidate for any office 
but all elections for such office relating to such candidacy 
were held in prior calendar years, such individual need not 
file a report unless he becomes a candidate for another vacancy 
in that office or another office during that year.
    (d) Any individual who is an officer or employee described 
in subsection (f) during any calendar year and performs the 
duties of his position or office for a period in excess of 
[sixty] 60 days in that calendar year shall file on or before 
May 15 of the succeeding year a report containing the 
information described in section 102(a).
    (e) Any individual who occupies a position described in 
subsection (f) shall, on or before the thirtieth day after 
termination of employment in such position, file a report 
containing the information described in section 102(a) covering 
the preceding calendar year if the report required by 
subsection (d) has not been filed and covering the portion of 
the calendar year in which such termination occurs up to the 
date the individual left such office or position, unlesssuch 
individual has accepted employment in another position described in 
subsection (f) or subsection 201(f).
    (f) The officers and employees referred to in subsections 
(a), (d), and (e) are--
          (1) [the President;] a Member of Congress as defined 
        under section 109(10);
          (2) [the Vice President] an officer or employee of 
        the Congress as defined under section 109(11);
          (3) [each officer or employee in the executive 
        branch, including a special Government employee as 
        defined in section 202 of title 18, United States Code, 
        who occupies a position classified above GS-15 of the 
        General Schedule or, in the case of positions not under 
        the General Schedule, 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; 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 each officer or 
        employee in any other position determined by the 
        Director of the Office of Government Ethics to be of 
        equal classification;] a judicial officer as defined 
        under section 109(8); and
          (4) [each employee appointed pursuant to section 3105 
        of title 5, United States Code;] a judicial employee as 
        defined under section 109(6).
          [(5) any employee not described in paragraph (3) who 
        is in a position in the executive branch which is 
        excepted from the competitive service by reason of 
        being of a confidential or policymaking character, 
        except that the Director of the Office of Government 
        Ethics may, by regulation, exclude from the application 
        of this paragraph any individual, or group of 
        individuals, who are in such positions, but only in 
        cases in which the Director determines such exclusion 
        would not affect adversely the integrity of the 
        Government or the public's confidence in the integrity 
        of the Government;
          [(6) the Postmaster General, the Deputy Postmaster 
        General, each Governor of the Board of Governors of the 
        United States Postal Service and each officer or 
        employee of the United States Postal Service or Postal 
        Rate Commission who occupies a position 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;
          [(7) the Director of the Office of Government Ethics 
        and each designated agency ethics official;
          [(8) any civilian employee not described in paragraph 
        (3), employed in the Executive Office of the President 
        (other than a special government employee) who holds a 
        commission of appointment from the President;
          [(9) a Member of Congress as defined under section 
        109(12);
          [(10) an officer or employee of the Congress as 
        defined under section 109(13);
          [(11) a judicial officer as defined under section 
        109(10); and
          [(12) a judicial employee as defined under section 
        109(8).]
    (g)[(1)] Reasonable extensions of time for filing any 
report may be granted under procedures prescribed by the 
supervising ethics office for each branch, but the total of 
such extensions shall not exceed [ninety] 90 days.
    [(2)(A) In the case of an individual who is serving in the 
Armed Forces, or serving in support of the Armed Forces, in an 
area while that area is designated by the President by 
Executive order as a combat zone for purposes of section 112 of 
the Internal Revenue Code of 1986, the date for the filing of 
any report shall be extended so that the date is 180 days after 
the later of--
          [(i) the last day of the individual's service in such 
        area during such designated period; or
          [(ii) the last day of the individual's 
        hospitalization as a result of injury received or 
        disease contracted while serving in such area.
    [(B) The Office of Government Ethics, in consultation with 
the Secretary of Defense, may prescribe procedures under this 
paragraph.]
    (h) The provisions of subsections (a), (b), and (e) shall 
not apply to an individual who, as determined by [the 
designated agency ethics official or Secretary concerned (or in 
the case of a Presidential appointee under subsection (b), the 
Director of the Office of Government Ethics),] the 
congressional ethics committees[,] or the Judicial Conference, 
is not reasonably expected to perform the duties of his office 
or position for more than [sixty] 60 days in a calendar year, 
except that if such individual performs the duties of his 
office or position for more than [sixty] 60 days in a calendar 
year--
          (1) the report required by subsections (a) and (b) 
        shall be filed within [fifteen] 15 days of the sixtieth 
        day, and
          (2) * * *
    (i) The supervising ethics office for each branch may grant 
a publicly available request for a waiver of any reporting 
requirement under this section for an individual who is 
expected to perform or has performed the duties of his office 
or position less than [one hundred and thirty] 130 days in a 
calendar year, but only if the supervising ethics office 
determines that--
          (1) * * *
          (2) * * *
          (3) * * *
          (4) * * *

SEC. 102. CONTENTS OF REPORTS.

    (a) Each report filed pursuant to section 101(d) and (e) 
shall include a full and complete statement with respect to the 
following:
          (1)(A) The source, type, and amount or value of 
        income (other than income referred to in subparagraph 
        (B)) from any source (other than from current 
        employment by the United States Government), and the 
        source, date, and amount of honoraria from any source, 
        received during the preceding calendar year, 
        aggregating $200 or more in value and[, effective 
        January 1, 1991,] the source, date, and amount of 
        payments made to charitable organizations in lieu of 
        honoraria, and the reporting individual shall 
        simultaneously file with the applicable supervising 
        ethics office, on a confidential basis, a corresponding 
        list of recipients of all such payments, together with 
        the dates and amounts of such payments.
          (B) The source and type of income which consists of 
        dividends, rents, interest, and capital gains, received 
        during the preceding calendar year which exceeds $200 
        in amount or value, and an indication of which of the 
        following categories the amount or value of such item 
        ofincome is within:
                  (i) [not] Not more than $1,000[,].
                  (ii) [greater] Greater than $1,000 but not 
                more than $2,500[,].
                  (iii) [greater] Greater than $2,500 but not 
                more than $5,000[,].
                  (iv) [greater] Greater than $5,000 but not 
                more than $15,000[,].
                  (v) [greater] Greater than $15,000 but not 
                more than $50,000[,].
                  (vi) [greater] Greater than $50,000 but not 
                more than $100,000[,].
                  (vii) [greater] Greater than $100,000 but not 
                more than $1,000,000[,].
                  (viii) [greater] Greater than $1,000,000 but 
                not more than $5,000,000[,].
                  (ix) [greater] Greater than $5,000,000.
          (2)(A) * * *
          (B) * * *
          (C) * * *
          (3) The identity and category of value of any 
        interest in property held during the preceding calendar 
        year in a trade or business, or for investment or the 
        production of income, which has a fair market value 
        which exceeds $1,000 as of the close of the preceding 
        calendar year, excluding any personal liability owed to 
        the reporting individual by a spouse,[,] or by a 
        parent, brother, sister, or child of the reporting 
        individual or of the reporting individual's spouse, or 
        any deposits aggregating $5,000 or less in a personal 
        savings account. For purposes of this paragraph, a 
        personal savings account shall include any certificate 
        of deposit or any other form of deposit in a bank, 
        savings and loan association, credit union, or similar 
        financial institution.
          (4) * * *
          (5) * * *
          (6)(A) The identity of all positions held on or 
        before the date of filing during the current calendar 
        year (and, for the first report filed by an individual, 
        during the [two-year] 2-year period preceding such 
        calendar year) as an officer, director, trustee, 
        partner, proprietor, representative, employee, or 
        consultant of any corporation, company, firm, 
        partnership, or other business enterprise, any 
        nonprofit organization, any labor organization, or any 
        educational or other institution other than the United 
        States. This subparagraph shall not require the 
        reporting of positions held in any religious, social, 
        fraternal, or political entity and positions solely of 
        an honorary nature.
          (B) If any person, other than the United States 
        Government, paid a nonelected reporting individual 
        compensation in excess of $5,000 in any of the [2] two 
        calendar years prior to the calendar year during which 
        the individual files his first report under this title, 
        the individual shall include in the report--
                  (i) * * *
                  (ii) * * *
                  (Undesignated sentence at the end of 
                subparagraph (B)) * * *
          (7) A description of the date, parties to, and terms 
        of any agreement or arrangement with respect to--
                  (A) * * *
                  (B) * * *
                  (C) * * *
                  (D) * * *
          (8) The category of the total cash value of any 
        interest of the reporting individual in a qualified 
        blind trust, unless the trust instrument was executed 
        prior to July 24, 1995, and precludes the beneficiary 
        from receiving information on the total cash value of 
        any interest in the qualified blind trust.
    (b)(1) Each report filed pursuant to subsections (a), (b), 
and (c) of section 101 shall include a full and complete 
statement with respect to the information required by--
          (A) * * *
          (B) paragraphs (3) and (4) of subsection (a) as of 
        the date specified in the report but which is less than 
        [thirty-one] 31 days before the filing date, and
          (C) * * *
    (2)(A) In lieu of filling out [one] 1 or more schedules of 
a financial disclosure form, an individual may supply the 
required information in an alternative format, pursuant to 
either rules adopted by the supervising ethics office for the 
branch in which such individual serves or pursuant to a 
specific written determination by such office for a reporting 
individual.
    (B) * * *
    (c) * * *
    (d)(1) The categories for reporting the amount or value of 
the items covered in paragraphs (3), (4), (5), and (8) of 
subsection (a) are [as follows:]--
          (A) * * *
          (B) * * *
          (C) * * *
          (D) * * *
          (E) * * *
          (F) * * *
          (G) * * *
          (H) * * *
          (I) * * *
          (J) * * *
    (2) * * *
    (e)(1) Except as provided in the last sentence of this 
paragraph, each report required by section 101 shall also 
contain information listed in paragraphs (1) through (5) of 
subsection (a) of this section respecting the spouse or 
dependent child of the reporting individual as follows:
          (A) * * *
          (B) * * *
          (C) * * *
          (D) * * *
          (E) * * *
          (F) For the purposes of this section, categories with 
        amounts or values greater than $1,000,000 set forth in 
        sections 102(a)(1)(B) and [102] (d)(1) shall apply to 
        the income, assets, or liabilities of spouses and 
        dependent children only if the income, assets, or 
        liabilities are held jointly with the reporting 
        individual. All other income, assets, or liabilities of 
        the spouse ordependent children required to be reported 
under this section in an amount or value greater than $1,000,000 shall 
be categorized only as an amount or value greater than $1,000,000.
    (The undesignated sentence at the end of paragraph (1)) * * 
*
    (2) * * *
    (f)(1) * * *
    (2) * * *
    (3) For purposes of this subsection, the term 
[``]`qualified blind trust'[''] includes any trust in which a 
reporting individual, his spouse, or any minor or dependent 
child has a beneficial interest in the principal or income, and 
which meets the following requirements:
          (A)(i) The trustee of the trust and any other entity 
        designated in the trust instrument to perform fiduciary 
        duties is a financial institution, an attorney, a 
        certified public accountant, a broker, or an investment 
        advisor who--
                  (I) is independent of and not associated with 
                any interested party so that the trustee or 
                other person cannot be controlled or influenced 
                in the administration of the trust by any 
                interested party; [and]
                  (II) * * *
                  (III) * * *
          (ii) Any officer or employee of a trustee or other 
        entity who is involved in the management or control of 
        the trust--
                  (I) * * *
                  (II) * * *
                  (III) * * *
          (B) * * *
          (C) The trust instrument which establishes the trust 
        provides that--
                  (i) * * *
                  (ii) * * *
                  (iii) * * *
                  (iv) * * *
                  (v) * * *
                  (vi) * * *
                  (vii) * * *
          (D) * * *
          (E) For purposes of this subsection, [``]`interested 
        party'[''] means a reporting individual, his spouse, 
        and any minor or dependent child; [``]`broker'[''] has 
        the meaning set forth in section 3(a)(4) of the 
        Securities and Exchange Act of 1934 (15 U.S.C. 
        78c(a)(4)); and [``]`investment adviser'[''] includes 
        any investment adviser who, as determined under 
        regulations prescribed by the supervising ethics 
        office, is generally involved in his role as such an 
        adviser in the management or control of trusts.
          (F) Any trust qualified by a supervising ethics 
        office before [the effective date of title II of the 
        Ethics Reform Act of 1989] January 1, 1991, shall 
        continue to be governed by the law and regulations in 
        effect immediately before such effective date.
    (4)(A) * * *
    (B)(i) The provisions of subparagraph (A) shall not apply 
with respect to a trust created for the benefit of a reporting 
individual, or the spouse, dependent child, or minor child of 
such a person, if the supervising ethics office for such 
reporting individual finds that--
          (I) * * *
          (II) * * *
          (III) * * *
          (IV) * * *
          (V) except as otherwise provided in this paragraph, 
        the trust instrument provides (or in the case of a 
        trust established prior to [the effective date of this 
        Act] January 1, 1991, which by its terms does not 
        permit amendment, the trustee, the reporting 
        individual, and any other interested party agree in 
        writing) that the trust shall be administered in 
        accordance with the requirements of this subsection and 
        the trustee of such trust meets the requirements of 
        paragraph (3)(A).
    (ii) * * *
    (5)(A) The reporting individual shall, within [thirty] 30 
days after a qualified blind trust is approved by his 
supervising ethics office, file with such office a copy of--
          (i) * * *
          (ii) * * *
          (The undesignated sentence at the end of subparagraph 
        (A)) * * *
    (B) The reporting individual shall, within [thirty] 30 days 
of transferring an asset (other than cash) to a previously 
established qualified blind trust, notify his supervising 
ethics office of the identity of each such asset and the 
category of value of each asset as determined under subsection 
(d) of this section.
    (C) Within [thirty] 30 days of the dissolution of a 
qualified blind trust, a reporting individual shall--
          (i) * * *
          (ii) * * *
    (D) * * *
    (E) A copy of each written communication with respect to 
the trust under paragraph (3)(C)(vi) shall be filed by the 
person initiating the communication with the reporting 
individual's supervising ethics office within [five] 5 days of 
the date of the communication.
    (6) * * *
    (7) * * *
    (8) A reporting individual shall not be required to report 
the financial interests held by a widely held investment fund 
(whether such fund is a mutual fund, regulated investment 
company, pension or deferred compensation plan, or other 
investment fund), if--
          (A) * * *
          (B) * * *
    (g) * * *
    (h) * * *
    (i) A reporting individual shall not be required under this 
title to report--
          (1) financial interests in or income derived from--
                  (A) * * *
                  (B) * * *
          (2) * * *

SEC. 103. FILING OF REPORTS.

    (a) [Except as otherwise provided in this section, the 
reports required under this title shall be filed by the 
reporting individual with the designated agency ethics official 
at the agency by which he is employed (or in the case of an 
individual described in section 101(e), was employed) or in 
which he will serve. The date any report is received (and the 
date of receipt of any supplemental report) shall be noted on 
such report by such official.] Each supervising ethics office 
shall develop and make available forms for reporting the 
information required by this title. 
    (b) [The President, the Vice President, and independent 
counsel and persons appointed by independent counsel under 
chapter 40 of title 28, United States Code, shall file reports 
required under this title with the Director of the Office of 
Government Ethics.]
          (1) The reports required under this title shall be 
        filed by a reporting individual with--
                  (A)(i)(I) the Clerk of the House of 
                Representatives, in the case of a 
                Representative in Congress, a Delegate to 
                Congress, the Resident Commissioner from Puerto 
                Rico, an officer or employee of the Congress 
                whose compensation is disbursed by the Chief 
                Administrative Officer of the House of 
                Representatives, an officer or employee of the 
                Architect of the Capitol, the United States 
                Botanic Garden, the Congressional Budget 
                Office, the Government Printing Office, the 
                Library of Congress, or the Copyright Royalty 
                Tribunal (including any individual terminating 
                service, under section 101(e), in any office or 
                position referred to in this subclause), or an 
                individual described in section 101(c) who is a 
                candidate for nomination or election as a 
                Representative in Congress, a Delegate to 
                Congress, or the Resident Commissioner from 
                Puerto Rico; and
                  (II) the Secretary of the Senate, in the case 
                of a Senator, an officer or employee of the 
                Congress whose compensation is disbursed by the 
                Secretary of the Senate, an officer or employee 
                of the General Accounting Office, [the Office 
                of Technology Assessment,]or the Office of the 
                Attending Physician (including any individual 
                terminating service, under section 101(e), in 
                any office or position referred to in this 
                subclause), or an individual described in 
                section 101(c) who is a candidate for 
                nomination or election as a Senator; and
                  (ii) in the case of an officer or employee of 
                the Congress as described under section 
                101(f)(2) who is employed by an agency or 
                commission established in the legislative 
                branch after November 30, 1989--
                          (I) the Secretary of the Senate or 
                        the Clerk of the House of 
                        Representatives, as the case may be, as 
                        designated in the statute establishing 
                        such agency or commission; or
                          (II) if such statute does not 
                        designate such committee, the Secretary 
                        of the Senate for agencies and 
                        commissions established in even 
                        numbered calendar years, and the Clerk 
                        of the House of Representatives for 
                        agencies and commissions established in 
                        odd numbered calendar years; and
                  (B) the Judicial Conference with regard to a 
                judicial officer or employee described under 
                paragraphs (3) and (4) of section 101(f) 
                (including individuals terminating service in 
                such office or position under section 101(e) or 
                immediately preceding service in such office or 
                position).
          (2) The date any report is received (and the date of 
        receipt of any supplemental report) shall be noted on 
        such report by such committee.
    (c) [Copies of the reports required to be filed under this 
title by the Postmaster General, the Deputy Postmaster General, 
the Governors of the Board of Governors of the United States 
Postal Service, designated agency ethics officials, employees 
described in section 105(a)(2)(A) or (B), 106(a)(1)(A) or (B), 
or 107(a)(1)(A) or (b)(1)(A)(i), of title 3, United States 
Code, candidates for the office of President or Vice President 
and officers and employees in (and nominees to) offices or 
positions which require confirmation by the Senate or by both 
Houses of Congress other than individuals nominated to be 
judicial officers and those referred to in subsection (f) shall 
be transmitted to the Director of the Office of Government 
Ethics. The Director shall forward a copy of the report of each 
nominee to the congressional committee considering the 
nomination.] A copy of each report filed under this title by a 
Member or an individual who is a candidate for the office of 
Member shall be sent by the Clerk of the House of 
Representatives or Secretary of the Senate, as the case may be, 
to the appropriate State officer designated under section 
312(a) of the Federal Election Campaign Act of 1971 of the 
State represented by the Member or in which the individual is a 
candidate, as the case may be, within the 30-day period 
beginning on the day the report is filed with the Clerk or 
Secretary.
    (d) [Reports required to be filed under this title by the 
Director of the Office of Government Ethics shall be filed in 
the Office of Government Ethics and, immediately after being 
filed, shall be made available to the public in accordance with 
this title.] (1) A copy of each report filed under this title 
with the Clerk of the House of Representatives shall be sent by 
the Clerk to the Committee on Standards of Official Conduct of 
the House of Representatives within the 7-day period beginning 
on the day the report is filed. 
    (2) A copy of each report filed under this title with the 
Secretary of the Senate shall be sent by the Secretary to the 
Select Committee on Ethics of the Senate within the 7-day 
period beginning on the day the report is filed. 
    (e) [Each individual identified in section 101(c) who is a 
candidate for nomination or election to the Office of President 
or Vice President shall file the reports required by this title 
with the Federal Election Commission.] In carrying out their 
responsibilities under this title with respect to candidates 
for office, the Clerk of the House of Representatives and the 
Secretary of the Senate shall avail themselves of the 
assistance of the Federal Election Commission. The Commission 
shall make available to the Clerk and the Secretary on a 
regular basis a complete list of names and addresses of all 
candidates registered with the Commission, and shall cooperate 
and coordinate its candidate information and notification 
program with the Clerk and the Secretary to the greatest extent 
possible.
    [(f) Reports required of members of the uniformed services 
shall be filed with the Secretary concerned.
    [(g) Each supervising ethics office shall develop and make 
available forms for reporting the information required by this 
title.
    [(h)(1) The reports required under this title shall be 
filed by a reporting individual with--
          (A)(i)(I) the Clerk of the House of Representatives, 
        in the case of a Representative in Congress, a Delegate 
        to Congress, the Resident Commissioner from Puerto 
        Rico, an officer or employee of the Congress whose 
        compensation is disbursed by the Chief Administrative 
        Officer of the House of Representatives, an officer or 
        employee of the Architect of the Capitol, the United States 
        Botanic Garden, the Congressional Budget Office, the 
        Government Printing Office, the Library of Congress, or the 
        Copyright Royalty Tribunal (including any individual 
        terminating service, under section 101(e), in any office or 
        position referred to in this subclause), or an individual 
        described in section 101(c) who is a candidate for nomination 
        or election as a Representative in Congress, a Delegate to 
        Congress, or the Resident Commissioner from Puerto Rico; and 
          (II) the Secretary of the Senate, in the case of a 
        Senator, an officer or employee of the Congress whose 
        compensation is disbursed by the Secretary of the 
        Senate, an officer or employee of the General 
        Accounting Office, the Office of Technology Assessment, 
        or the Office of the Attending Physician (including any 
        individual terminating service, under section 101(e), 
        in any office or position referred to in this 
        subclause), or an individual described in section 
        101(c) who is a candidate for nomination or election as 
        a Senator; and
          (ii) in the case of an officer or employee of the 
        Congress as described under section 101(f)(10) who is 
        employed by an agency or commission established in the 
        legislative branch after the date of the enactment of 
        the Ethics Reform Act of 1989--
                  (I) the Secretary of the Senate or the Clerk 
                of the House of Representatives, as the case 
                may be, as designated in the statute 
                establishing such agency or commission; or
                  (II) if such statute does not designate such 
                committee, the Secretary of the Senate for 
                agencies and commissions established in even 
                numbered calendar years, and the Clerk of the 
                House of Representatives for agencies and 
                commissions established in odd numbered 
                calendar years; and
          (B) the Judicial Conference with regard to a judicial 
        officer or employee described under paragraphs (11) and 
        (12) of section 101(f) (including individuals 
        terminating service in such office or position under 
        section 101(e) or immediately preceding service in such 
        office or position).
    (2) The date any report is received (and the date of 
receipt of any supplemental report) shall be noted on such 
report by such committee.
    [(i) A copy of each report filed under this title by a 
Member or an individual who is a candidate for the office of 
Member shall be sent by the Clerk of the House of 
Representatives or Secretary of the Senate, as the case may be, 
to the appropriate State officer designated under section 
316(a) of the Federal Election Campaign Act of 1971 of the 
State represented by the Member or in which the individual is a 
candidate, as the case may be, within the 30-day period 
beginning on the day the report is filed with the Clerk or 
Secretary.
    [(j)(1) A copy of each report filed under this title with 
the Clerk of the House of Representatives shall be sent by the 
Clerk to the Committee on Standards of Official Conduct of the 
House of Representatives within the 7-day period beginning on 
the day the report is filed.
    [(2) A copy of each report filed under this title with the 
Secretary of the Senate shall be sent by the Secretary to the 
Select Committee on Ethics of the Senate within the 7-day 
period beginning on the day the report is filed.
    [(k) In carrying out their responsibilities under this 
title with respect to candidates for office, the Clerk of the 
House of Representatives and the Secretary of the Senate shall 
avail themselves of the assistance of the Federal Election 
Commission. The Commission shall make available to the Clerk 
and the Secretary on a regular basis a complete list of names 
and addresses of all candidates registered with the Commission, 
and shall cooperate and coordinate its candidate information 
and notification program with the Clerk and the Secretary to 
the greatest extent possible.]

SEC. 104. FAILURE TO FILE OR FILING FALSE REPORTS.

    (a) * * *
    (b) [The head of each agency, each Secretary concerned, the 
Director of the Office of Government Ethics, each] Each 
congressional ethics committee[,] or the Judicial Conference, 
as the case may be, shall refer to the Attorney General the 
name of any individual which such official or committee has 
reasonable cause to believe has willfully failed to file a 
report or has willfully falsified or willfully failed to file 
information required to be reported. Whenever the Judicial 
Conference refers a name to the Attorney General under this 
subsection, the Judicial Conference also shall notify the 
judicial council of the circuit in which the named individual 
serves of the referral.
    (c) [The President, the Vice President, the Secretary 
concerned, the head of each agency, the Office of Personnel 
Management, a] A congressional ethics committee[,] and the 
Judicial Conference, may take any appropriate personnel or 
other action in accordance with applicable law or regulation 
against any individual failing to file a report or falsifying 
or failing to report information required to be reported.
    (d)(1) Any individual who files a report required to be 
filed under this title more than 30 days after the later of--
          (A) the date such report is required to be filed 
        pursuant to the provisions of this title and the rules 
        and regulations promulgated thereunder; or
          (B) if a filing extension is granted to such 
        individual under section 101(g), the last day of the 
        filing extension period, shall, at the direction of and 
        pursuant to regulations issued by the supervising 
        ethics office, pay a filing fee of $200. All such fees 
        shall be deposited in the miscellaneous receipts of the 
        Treasury. [The authority under this paragraph to direct 
        the payment of a filing fee may be delegated by the 
        supervising ethics office in the executive branch to 
        other agencies in the executive branch..]
    (2) The supervising ethics office may waive the filing fee 
under this subsection in extraordinary circumstances.

SEC. 105. CUSTODY OF AND PUBLIC ACCESS TO REPORTS.

    (a) [Each agency, each] The supervising ethics office [in] 
of the [executive or] judicial branch, the Clerk of the House 
of Representatives, and the Secretary of the Senate shall make 
available to the public, in accordance with subsection (b), 
each report filed under this title with such [agency or] office 
or with the Clerk or the Secretary of the Senate[, except 
that--].
          [(1) this section does not require public 
        availability of a report filed by any individual in the 
        Central Intelligence Agency, the Defense Intelligence 
        Agency, the National Imagery and Mapping Agency, or the 
        National Security Agency, or any individual engaged in 
        intelligence activities in any agency of the United 
        States, if the President finds or has found that, due to 
        the nature of the office or position occupied by such 
        individual, public disclosure of such report would, be 
        revealing the identity of the individual or other sensitive 
        information, compromise the national interest of the United 
        States; and such individuals may be authorized, notwithstanding 
        section 104(a), to file such additional reports as are 
        necessary to protect their identity from public disclosure 
        if the President first finds or has found that such filing 
        is necessary in the national interest; and
          [(2) any report filed by an independent counsel whose 
        identity has not been disclosed by the division of the 
        court under chapter 40 of title 28, United States Code, 
        and any report filed by any person appointed by that 
        independent counsel under such chapter, shall not be 
        made available to the public under this title.]
    (b)(1) Except as provided in the second sentence of this 
subsection, [each agency, each] the supervising ethics office 
in the [executive or] judicial branch, the Clerk of the House 
of Representatives, and the Secretary of the Senate shall, 
within [thirty] 30 days after any report is received under this 
title by such [agency or] office or by the Clerk or the 
Secretary of the Senate, as the case may be,[,] permit 
inspection of such report by or furnish a copy of such report 
to any person requesting such inspection or copy. With respect 
to any report required to be filed by May 15 of any year, such 
report shall be made available for public inspection within 30 
calendar days after May 15 of such year or within 30 days of 
the date of filing of such a report for which an extension is 
granted pursuant to section 101(g). The [agency,] office, 
Clerk, or Secretary of the Senate, as the case may be, may 
require a reasonable fee to be paid in any amount which is 
found necessary to recover the cost of reproduction or mailing 
of such report excluding any salary of any employee involved in 
such reproduction or mailing. A copy of such report may be 
furnished without charge or at a reduced charge if it is 
determined that waiver or reduction of the fee is in the public 
interest.
    (2) Notwithstanding paragraph (1), a report may not be made 
available under this section to any person nor may any copy 
thereof be provided under this section to any person except 
upon a written application by such person stating--
          (A) * * *
          (B) * * *
          (C) * * *
          (Undesignated sentence at the end of paragraph (2)) * 
        * *
    (3)(A) This section does not require the immediate and 
unconditional availability of reports filed by an individual 
described in section [109(8) or 109(10)] 109(6) or (8) of this 
Act if a finding is made by the Judicial Conference, in 
consultation with United States [Marshall] Marshal Service, 
that revealing personal and sensitive information could 
endanger that individual.
    (B) A report may be redacted pursuant to this paragraph 
only--
          (i) to the extent necessary to protect the individual 
        who filed the report; and
          (ii) for as long as the danger to such individual 
        exists.
    (C) The Administrative Office of the United States Courts 
shall submit to the Committees on the Judiciary of the House of 
Representatives and of the Senate an annual report with respect 
to the operation of this paragraph including--
          (i) the total number of reports redacted pursuant to 
        this paragraph;
          (ii) the total number of individuals whose reports 
        have been redacted pursuant to this paragraph; and
          (iii) the types of threats against individuals whose 
        reports are redacted, if appropriate.
    (D) The Judicial Conference, in consultation with the 
Department of Justice, shall issue regulations setting forth 
the circumstances under which redaction is appropriate under 
this paragraph and the procedures for redaction.
    (E) This paragraph shall expire on December 31, 2005, and 
apply to filings through calendar year 2005.
    (c)(1) It shall be unlawful for any person to obtain or use 
a report--
          (A) for any unlawful purpose;
          (B) for any commercial purpose, other than by news 
        and communications media for dissemination to the 
        general public;
          (C) for determining or establishing the credit rating 
        of any individual; or
          (D) for use, directly or indirectly, in the 
        solicitation of money for any political, charitable, or 
        other purpose.
    (2) * * *
    (d) Any report filed with or transmitted to [an agency or] 
a supervising ethics office or to the Clerk of the House of 
Representatives or the Secretary of the Senate pursuant to this 
title shall be retained by such [agency or] office or by the 
Clerk or the Secretary of the Senate, as the case may be. Such 
report shall be made available to the public for a period of 
[six] 6 years after receipt of the report. After such [six] 6-
year period the report shall be destroyed unless needed in an 
ongoing investigation, except that in the case of an individual 
who filed the report pursuant to section 101(b) and was not 
subsequently confirmed by the Senate, or who filed the report 
pursuant to section 101(c) and was not subsequently elected, 
such reports shall be destroyed [one] 1 year after the 
individual either is no longer under consideration by the 
Senate or is no longer a candidate for nomination or election 
to the Office of President, Vice President, or as a Member of 
Congress, unless needed in an ongoing investigation.

SEC. 106. REVIEW OF REPORTS.

    (a)[(1) Each designated agency ethics official or Secretary 
concerned shall make provisions to ensure that each report 
filed with him under this title is reviewed within sixty days 
after the date of such filing, except that the Director of the 
Office of Government Ethics shall review only those reports 
required to be transmitted to him under this title within sixty 
days after the date of transmittal.] Each congressional ethics 
committee and the Judicial Conference shall make provisions to 
ensure that each report filed under this title is reviewed 
within 60 days after the date of such filing. 
    [(2) Each congressional ethics committee and the Judicial 
Conference shall make provisions to ensure that each report 
filed under this title is reviewed within sixty days after the 
date of such filing.]
    (b)(1) If after reviewing any report under subsection (a), 
[the Director of the Office ofGovernment Ethics, the Secretary 
concerned, the designated agency ethics official,] a person designated 
by the congressional ethics committee[,] or a person designated by the 
Judicial Conference, as the case may be, is of the opinion that on the 
basis of information contained in such report the individual submitting 
such report is in compliance with applicable laws and regulations, he 
shall state such opinion on the report, and shall sign such report.
    (2) If [the Director of the Office of Government Ethics, 
the Secretary concerned, the designated agency ethics 
official,] a person designated by the congressional ethics 
committee, or a person designated by the Judicial Conference, 
after reviewing any report under subsection (a)--
          (A) * * *
          (B) * * *
    (3) If [the Director of the Office of Government Ethics, 
the Secretary concerned, the designated agency ethics 
official,] a person designated by a congressional ethics 
committee[,] or a person designated by the Judicial Conference, 
reaches an opinion under paragraph (2)(B) that an individual is 
not in compliance with applicable laws and regulations, the 
official or committee shall notify the individual of that 
opinion and, after an opportunity for personal consultation (if 
practicable), determine and notify the individual of which 
steps, if any, would in the opinion of such official or 
committee be appropriate for assuring compliance with such laws 
and regulations and the date by which such steps should be 
taken. Such steps may include, as appropriate--
          (A) * * *
          (B) * * *
          (C) * * *
          (D) * * *
          (E) * * *
          (The undesignated sentence at the end of paragraph 
        (3)) * * *
    (4) If steps for assuring compliance with applicable laws 
and regulations are not taken by the date set under paragraph 
(3) by an individual in a position [in the executive branch 
(other than in the Foreign Service or the uniformed services),] 
appointment to which requires the advice and consent of the 
Senate but removal authority resides in the President, the 
matter shall be referred to the President for appropriate 
action.
    (5) If steps for assuring compliance with applicable laws 
and regulations are not taken by the date set under paragraph 
(3) [by a member of the Foreign Service or the uniformed 
services, the Secretary concerned shall take appropriate 
action.] by any other officer or employee, the matter shall be 
referred to the congressional ethics committee or the Judicial 
Conference, for appropriate action.
    (6) [If steps for assuring compliance with applicable laws 
and regulations are not taken by the date set under paragraph 
(3) by any other officer or employee, the matter shall be 
referred to the head of the appropriate agency, the 
congressional ethics committee, or the Judicial Conference, for 
appropriate action; except that in the case of the Postmaster 
General or Deputy Postmaster General, the Director of the 
Office of Government Ethics shall recommend to the Governors of 
the Board of Governors of the United States Postal Service the 
action to be taken.] Each supervising ethics office may render 
advisory opinions interpreting this title within its respective 
jurisdiction. Notwithstanding any other provision of law, the 
individual to whom a public advisory opinion is rendered in 
accordance with this paragraph, and any other individual 
covered by this title who is involved in a fact situation which 
is indistinguishable in all material aspects, and who acts in 
good faith in accordance with the provisions and findings of 
such advisory opinion shall not, as a result of such act, be 
subject to any penalty or sanction provided by this title.
    [(7) Each supervising ethics office may render advisory 
opinions interpreting this title within its respective 
jurisdiction. Notwithstanding any other provision of law, the 
individual to whom a public advisory opinion is rendered in 
accordance with this paragraph, and any other individual 
covered by this title who is involved in a fact situation which 
is indistinguishable in all material aspects, and who acts in 
good faith in accordance with the provisions and findings of 
such advisory opinion shall not, as a result of such act, be 
subject to any penalty or sanction provided by this title.]

SEC. 107. CONFIDENTIAL REPORTS AND OTHER ADDITIONAL REQUIREMENTS.

    (a)(1) Each supervising ethics office may require officers 
and employees under its jurisdiction (including special 
Government employees as defined in section 202 of title 18, 
United States Code) to file confidential financial disclosure 
reports, in such form as the supervising ethics office may 
prescribe. The information required to be reported under this 
subsection by the officers and employees of [any department or 
agency] the legislative or judicial branch shall be set forth 
in rules or regulations prescribed by the supervising ethics 
office, and may be less extensive than otherwise required by 
this title, or more extensive when determined by the 
supervising ethics office to be necessary and appropriate in 
light of sections 202 through 209 of title 18, United States 
Code, regulations promulgated thereunder, official codes of 
conduct or the authorized activities of such officers or 
employees. Any individual required to file a report pursuant to 
section 101 shall not be required to file a confidential report 
pursuant to this subsection, except with respect to information 
which is more extensive than information otherwise required by 
this title. Subsections (a), (b), and (d) of section 105 shall 
not apply with respect to any such report.
    (2) * * *
    (3) * * *
    (b) * * *
    (c) Nothing in this Act requiring reporting of information 
shall be deemed to authorize--(1) the receipt of income, gifts, 
or reimbursements; (2) the holding of assets, liabilities, or 
positions; or (3) the participation in transactions that are 
prohibited by law, [Executive order,] rule, or regulation.

SEC. 108. AUTHORITY OF COMPTROLLER GENERAL.

    (a) * * *
    (b) [No] Not later than December 31, 1992, and regularly 
thereafter, the Comptroller General shall conduct a study to 
determine whether the provisions of this title are being 
carried out effectively.

SEC. 109. DEFINITIONS.

    For the purposes of this title, the term--
          (1) [``]`congressional ethics committees'[''] means 
        the Select Committee on Ethics of the Senate and the 
        Committee on Standards of Official Conduct of the House 
        of Representatives;
          (2) [``]`dependent child'[''] means, when used with 
        respect to any reporting individual, any individual who 
        is a son, daughter, stepson, or stepdaughter and who--
                  (A) * * *
                  (B) * * *
          (3) [``designated agency ethics official'' means an 
        officer or employee who is designated to administer the 
        provisions of this title within an agency;] `gift' 
        means a payment, advance, forbearance, rendering, or 
        deposit of money, or any thing of value, unless 
        consideration of equal or greater value is received by 
        the donor, but does not include-- 
                  (A) bequest and other forms of inheritance;
                  (B) suitable mementos of a function honoring 
                the reporting individual;
                  (C) food, lodging, transportation, and 
                entertainment provided by a foreign government 
                within a foreign country or by the United 
                States Government, the District of Columbia, or 
                a State or local government or political 
                subdivision thereof;
                  (D) food and beverages which are not consumed 
                in connection with a gift of overnight lodging;
                  (E) communications to the offices of a 
                reporting individual, including subscriptions 
                to newspapers and periodicals; or
                  (F) consumable products provided by home-
                State businesses to the offices of a reporting 
                individual who is an elected official, if those 
                products are intended for consumption by 
                persons other than such reporting individual;
          (4) [``executive branch'' includes each Executive 
        agency (as defined in section 105 of title 5, United 
        States Code), other than the General Accounting Office, 
        and any other entity or administrative unit in the 
        executive branch;] `honoraria' has the meaning given 
        such term in section 505 of this Act;
          (5) [``gift'' means a payment, advance, forbearance, 
        rendering, or deposit of money, or any thing of value, 
        unless consideration of equal or greater value is 
        received by the donor, but does not include--
                  [(A) bequest and other forms of inheritance;
                  [(B) suitable mementos of a function honoring 
                the reporting individual;
                  [(C) food, lodging, transportation, and 
                entertainment provided by a foreign government 
                within a foreign country or by the United 
                States Government, the District of Columbia, or 
                a State or local government or political 
                subdivision thereof;
                  [(D) food and beverages which are not 
                consumed in connection with a gift of overnight 
                lodging;
                  [(E) communications to the offices of a 
                reporting individual, including subscriptions 
                to newspapers and periodicals; or
                  [(F) consumable products provided by home-
                State businesses to the offices of a reporting 
                individual who is an elected official, if those 
                products are intended for consumption by 
                persons other than such reporting individual;] 
                `income' means all income from whatever source 
                derived, including but not limited to the 
                following items: compensation for services, 
                including fees, commissions, and similar items; 
                gross income derived from business (and net 
                income if the individual elects to include it); 
                gains derived from dealings in property; 
                interest; rents; royalties; dividends; 
                annuities; income from life insurance and 
                endowment contracts; pensions; income from 
                discharge of indebtedness; distributive share 
                of partnership income; and income from an 
                interest in an estate or trust;
          (6) [``honoraria'' has the meaning given such term in 
        section 505 of this Act;] `judicial employee' means any 
        employee of the judicial branch of the Government, of 
        the United States Sentencing Commission, of the Tax 
        Court, of the Court of Federal Claims, of the Court of 
        Appeals for Veterans Claims, or of the United States 
        Court of Appeals for the Armed Forces, who is not a 
        judicial officer and who is authorized to perform 
        adjudicatory functions with respect to proceedings in 
        the judicial branch, or who occupies a position 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;
          (7) [``income'' means all income from whatever source 
        derived, including but not limited to the following 
        items: compensation for services, including fees, 
        commissions, and similar items; gross income derived 
        from business (and net income if the individual elects 
        to include it); gains derived from dealings in 
        property; interest; rents; royalties; dividends; 
        annuities; income from life insurance and endowment 
        contracts; pensions; income from discharge of 
        indebtedness; distributive share of partnership income; 
        and income from an interest in an estate or trust;] 
        `Judicial Conference' means the Judicial Conference of 
        the United States;
          (8) [``judicial employee'' means any employee of the 
        judicial branch of the Government, of the United States 
        Sentencing Commission, of the Tax Court, of the Court 
        of Federal Claims, of the Court of Appeals for Veterans 
        Claims, or of the United States Court of Appeals for 
        the Armed Forces, who is not a judicial officer and who 
        is authorized to perform adjudicatory functions with 
        respect to proceedings in the judicial branch, or who 
        occupies a position 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;] `judicial officer' means the Chief Justice 
        of the United States, the Associate Justices of the 
        Supreme Court, and the judges of the United States 
        courts of appeals, United States district courts, 
        including the district courts in Guam, the Northern 
        Mariana Islands, and the Virgin Islands, Court of 
        Appeals for the Federal Circuit, Court of International 
        Trade, Tax Court, Court of Federal Claims, Court of 
        Appeals for Veterans Claims, United States Court of 
        Appeals for the Armed Forces, and any court created by 
        Act of Congress, the judges of which are entitled to 
        hold office during good behavior;
          (9) [``Judicial Conference'' means the Judicial 
        Conference of the United States;] `legislative branch' 
        includes--
                  (A) the Architect of the Capitol;
                  (B) the Botanic Gardens;
                  (C) the Congressional Budget Office;
                  (D) the General Accounting Office;
                  (E) the Government Printing Office;
                  (F) the Library of Congress; 
                  (G) the United States Capitol Police; 
                  (H) [the Office of Technology Assessment; 
                and] the Office of Compliance; and
                  (I) any other agency, entity, office, or 
                commission established in the legislative 
                branch; 
          (10) [``judicial officer'' means the Chief Justice of 
        the United States, the Associate Justices of the 
        Supreme Court, and the judges of the United States 
        courts of appeals, United States district courts, 
        including the district courts in Guam, the Northern 
        Mariana Islands, and the Virgin Islands, Court of 
        Appeals for the Federal Circuit, Court of International 
        Trade, Tax Court, Court of Federal Claims, Court of 
        Appeals for Veterans Claims, United States Court of 
        Appeals for the Armed Forces, and any court created by 
        Act of Congress, the judges of which are entitled to 
        hold office during good behavior;] `Member of Congress' 
        means a United States Senator, a Representative in 
        Congress, a Delegate to Congress, or the Resident 
        Commissioner from Puerto Rico;
          (11) [``legislative branch'' includes--
                  [(A) the Architect of the Capitol;
                  [(B) the Botanic Gardens;
                  [(C) the Congressional Budget Office;
                  [(D) the General Accounting Office;
                  [(E) the Government Printing Office;
                  [(F) the Library of Congress;
                  [(G) the United States Capitol Police;
                  [(H) the Office of Technology Assessment; and
                  [(I) any other agency, entity, office, or 
                commission established in the legislative 
                branch;] `officer or employee of the Congress' 
                means--
                  (A) any individual described under 
                subparagraph (B), other than a Member of 
                Congress or the Vice President, whose 
                compensation is disbursed by the Secretary of 
                the Senate or the Chief Administrative Officer 
                of the House of Representatives;
                  (B)(i) each officer or employee of the 
                legislative branch who, for at least 60 days, 
                occupies a position 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; and
                  (ii) at least 1 principal assistant 
                designated for purposes of this paragraph by 
                each Member who does not have an employee who 
                occupies a position 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;
          (12) [``Member of Congress'' means a United States 
        Senator, a Representative in Congress, a Delegate to 
        Congress, or the Resident Commissioner from Puerto 
        Rico;] `personal hospitality of any individual' means 
        hospitality extended for a nonbusiness purpose by an 
        individual, not a corporation or organization, at the 
        personal residence of that individual or his family or 
        on property or facilities owned by that individual or 
        his family;
          (13) [``officer or employee of the Congress'' means--
                  [(A) any individual described under 
                subparagraph (B), other than a Member of 
                Congress or the Vice President, whose 
                compensation is disbursed by the Secretary of 
                the Senate or the Chief Administrative Officer 
                of the House of Representatives;
                  [(B)(i) each officer or employee of the 
                legislative branch who, for at least 60 days, 
                occupies a position 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; and
                  [(ii) at least one principal assistant 
                designated for purposes of this paragraph by 
                each Member who does not have an employee who 
                occupies a position 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;] `reimbursement' means 
                any payment or other thing of value received by 
                the reporting individual, other than gifts, to 
                cover travel-related expenses of such 
                individual other than those which are-- 
                  (A) provided by the United States Government, 
                the District of Columbia, or a State or local 
                government or political subdivision thereof;
                  (B) required to be reported by the reporting 
                individual under section 7342 of title 5, 
                United States Code; or
                  (C) required to be reported under section 304 
                of the Federal Election Campaign Act of 1971 (2 
                U.S.C. 434);
          (14) [``personal hospitality of any individual'' 
        means hospitality extended for a nonbusiness purpose by 
        an individual, not a corporation or organization, at 
        the personal residence of that individual or his family 
        or on property or facilities owned by that individual 
        or his family;] `relative' means an individual who is 
        related to the reporting individual, as father, mother, 
        son, daughter, brother, sister, uncle, aunt, great 
        aunt, great uncle, first cousin, nephew, niece, 
        husband, wife, grandfather, grandmother, grandson, 
        granddaughter, father-in-law, mother-in-law, son-in-
        law, daughter-in-law, brother-in-law, sister-in-law, 
        stepfather, stepmother, stepson, stepdaughter, 
        stepbrother, stepsister, half brother, half sister, or 
        who is the grandfather or grandmother of the spouse of 
        the reporting individual, and shall be deemed to 
        include the fiance or fiancee of the reporting 
        individual;
          (15) [``reimbursement'' means any payment or other 
        thing of value received by the reporting individual, 
        other than gifts, to cover travel-related expenses of 
        such individual other than those which are--
                  [(A) provided by the United States 
                Government, the District of Columbia, or a 
                State or local government or political 
                subdivision thereof;
                  [(B) required to be reported by the reporting 
                individual under section 7342 of title 5, 
                United States Code; or
                  [(C) required to be reported under section 
                304 of the Federal Election Campaign Act of 
                1971 (2 U.S.C. 434);] `supervising ethics 
                office' means-- 
                  (A) the Select Committee on Ethics of the 
                Senate, for Senators, officers and employees of 
                the Senate, and other officers, or employees of 
                the legislative branch required to file 
                financial disclosure reports with the Secretary 
                of the Senate pursuant to section 103(h) of 
                this title;
                  (B) the Committee on Standards of Official 
                Conduct of the House of Representatives, for 
                Members, officers, and employees of the House 
                of Representatives and other officers or 
                employees of the legislative branch required to 
                file financial disclosure reports with the 
                Clerk of the House of Representatives pursuant 
                to section 103(h) of this title; and
                  (C) the Judicial Conference for judicial 
                officers and judicial employees; and
          (16) [``relative'' means an individual who is related 
        to the reporting individual, as father, mother, son, 
        daughter, brother, sister, uncle, aunt, great aunt, 
        great uncle, first cousin, nephew, niece, husband, 
        wife, grandfather, grandmother, grandson, 
        granddaughter, father-in-law, mother-in-law, son-in-
        law, daughter-in-law, brother-in-law, sister-in-law, 
        stepfather, stepmother, stepson, stepdaughter, 
        stepbrother, stepsister, half brother, half sister, or 
        who is the grandfather or grandmother of the spouse of 
        the reporting individual, and shall be deemed to 
        include the fiance or fiancee of the reporting 
        individual;] `value' means a good faith estimate of the 
        dollar value if the exact value is neither known nor 
        easily obtainable by the reporting individual. 
          [(17) ``Secretary concerned'' has the meaning set 
        forth in section 101(a)(9) of title 10, United States 
        Code, and, in addition, means--
                  [(A) the Secretary of Commerce, with respect 
                to matters concerning the National Oceanic and 
                Atmospheric Administration;
                  [(B) the Secretary of Health and Human 
                Services, with respect to matters concerning 
                the Public Health Service; and
                  [(C) the Secretary of State, with respect to 
                matters concerning the Foreign Service;
          [(18) ``supervising ethics office'' means--
                  [(A) the Select Committee on Ethics of the 
                Senate, for Senators, officers and employees of 
                the Senate, and other officers or employees of 
                the legislative branch required to file 
                financial disclosure reports with the Secretary 
                of the Senate pursuant to section 103(h) of 
                this title;
                  [(B) the Committee on Standards of Official 
                Conduct of the House of Representatives, for 
                Members, officers and employees of the House of 
                Representatives and other officers or employees 
                of the legislative branch required to file 
                financial disclosure reports with the Clerk of 
                the House of Representatives pursuant to 
                section 103(h) of this title;
                  [(C) the Judicial Conference for judicial 
                officers and judicial employees; and
                  [(D) the Office of Government Ethics for all 
                executive branch officers and employees; and
          [(19) ``value'' means a good faith estimate of the 
        dollar value if the exact value is neither known nor 
        easily obtainable by the reporting individual.]

SEC. 110. NOTICE OF ACTIONS TAKEN TO COMPLY WITH ETHICS AGREEMENTS.

    (a) In any case in which an individual agrees with [that 
individual's designated agency ethics official, the Office of 
Government Ethics,] a Senate confirmation committee, a 
congressional ethics committee, or the Judicial Conference, to 
take any action to comply with this Act or any other law or 
regulation governing conflicts of interest of, or establishing 
standards of conduct applicable with respect to, officers or 
employees of the Government, that individual shall notify in 
writing [the designated agency ethics official, the Office of 
Government Ethics,] the appropriate committee of the Senate, 
the congressional ethics committee, or the Judicial Conference, 
as the case may be, of any action taken by the individual 
pursuant to that agreement. Such notification shall be made not 
later than the date specified in the agreement by which action 
by the individual must be taken, or not later than [three] 3 
months after the date of the agreement, if no date for action 
is so specified.
    (b) If an agreement described in subsection (a) requires 
that the individual recuse himself or herself from particular 
categories of agency or other official action, the individual 
shall reduce to writing those subjects regarding which the 
recusal agreement will apply and the process by which it will 
be determined whether the individual must recuse himself or 
herself in a specific instance. An individual shall be 
considered to have complied with the requirements of subsection 
(a) with respect to such recusal agreement if such individual 
files a copy of the document setting forth the information 
described in the preceding sentence with [such individual's 
designated agency ethics official or] the appropriate 
supervising ethics office within the time prescribed in the 
last sentence of subsection (a).

SEC. 111. ADMINISTRATION OF PROVISIONS.

    The provisions of this title shall be administered by--
          (1)[the Director of the Office of Government Ethics, 
        the designated agency ethics official, or the Secretary 
        concerned, as appropriate, with regard to officers and 
        employees described in paragraphs (1) through (8) of 
        section 101(f);] the Select Committee on Ethics of the 
        Senate and the Committee on Standards of Official 
        Conduct of the House of Representatives, as 
        appropriate, with regard to officers and employees 
        described in paragraphs (1) and (2) of section 101(f); 
        and
          (2) [the Select Committee on Ethics of the Senate and 
        the Committee on Standards of Official Conduct of the 
        House of Representatives, as appropriate, with regard 
        to officers and employees described in paragraphs (9) 
        and (10) of section 101(f); and] the Judicial 
        Conference in the case of an officer or employee 
        described in paragraphs (3) and (4) of section 101(f). 
        The Judicial Conference may delegate any authority it 
        has under this title to an ethics committee established 
        by the Judicial Conference. 
          [(3) the Judicial Conference in the case of an 
        officer or employee described in paragraphs (11) and 
        (12) of section 101(f). The Judicial Conference may 
        delegate any authority it has under this title to an 
        ethics committee established by the Judicial 
        Conference.]

    TITLE II--EXECUTIVE PERSONNEL FINANCIAL DISCLOSURE REQUIREMENTS

SEC. 201. PERSONS REQUIRED TO FILE.

    (a) Within 30 days of assuming the position of an officer 
or employee described in subsection (f), an individual shall 
file a report containing the information described in section 
202(b) unless the individual has left another position 
described in subsection (f) of this section or section 101(f) 
of this Act within 30 days prior to assuming such new position 
or has already filed a report under this title with respect to 
nomination for the new position or as a candidate for the 
position.
    (b)(1) Within 5 days of the transmittal by the President to 
the Senate of the nomination of an individual (other than an 
individual nominated for appointment to a position as a Foreign 
Service Officer or a grade or rank in the uniformed services 
for which the pay grade prescribed by section 201 of title 37, 
United States Code, is O-6 or below) to a position in the 
executive branch, appointment to which requires the advice and 
consent of the Senate, such individualshall file a report 
containing the information described in section 202(b). Such individual 
shall, not later than the date of the first hearing to consider the 
nomination of such individual, make current the report filed pursuant 
to this paragraph by filing the information required by section 
202(a)(1)(A) with respect to income and honoraria received as of the 
date which occurs 5 days before the date of such hearing. Nothing in 
this Act shall prevent any congressional committee from requesting, as 
a condition of confirmation, any additional financial information from 
any Presidential nominee whose nomination has been referred to that 
committee.
    (2) An individual whom the President or the President-elect 
has publicly announced he intends to nominate to a position may 
file the report required by paragraph (1) at any time after 
that public announcement, but not later than is required the 
first sentence of such paragraph.
    (c)(1) Within 30 days of becoming a candidate as defined in 
section 301 of the Federal Campaign Act of 1971, in a calendar 
year for nomination or election to the office of President or 
Vice President or on or before May 15 of that calendar year, 
whichever is later, but in no event later than 30 days before 
the election, and on or before May 15 of each successive year 
an individual continues to be a candidate, an individual other 
than an incumbent President or Vice President shall file a 
report containing the information described in section 202(b). 
Notwithstanding the preceding sentence, in any calendar year in 
which an individual continues to be a candidate for any office 
but all elections for such office relating to such candidacy 
were held in prior calendar years, such individual need not 
file a report unless he becomes a candidate for another vacancy 
in that office or another office during that year.
    (2) Notwithstanding paragraph (1), within 30 days of taking 
the oath of office of President or Vice President, an 
individual shall file a report containing the information 
described in section 202(b) unless such individual served as 
President or Vice President immediately prior to taking that 
oath.
    (d) Any individual who is an officer or employee described 
in subsection (f) during any calendar year and performs the 
duties of his position or office for a period in excess of 60 
days in that calendar year shall file on or before May 15 of 
the succeeding year a report containing the information 
described in section 202(a).
    (e) Any individual who occupies a position described in 
subsection (f) shall, on or before the thirtieth day after 
termination of employment in such position, file a report 
containing the information described in section 202(a) covering 
the preceding calendar year if the report required by 
subsection (d) has not been filed and covering the portion of 
the calendar year in which such termination occurs up to the 
date the individual left such office or position, unless such 
individual has accepted employment in or takes the oath of 
office for another position described in subsection (f) or 
section 101(f).
    (f) The officers and employees referred to in subsections 
(a), (d), and (e) are--
          (1) the President;
          (2) the Vice President;
          (3) each officer or employee in the executive branch, 
        including a special Government employee as defined in 
        section 202 of title 18, United States Code, who 
        occupies a position classified above GS-15 of the 
        General Schedule or, in the case of positions not under 
        the General Schedule, 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; 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 each officer or 
        employee in any other position determined by the 
        Director of the Office of Government Ethics to be of 
        equal classification;
          (4) each employee appointed pursuant to section 3105 
        of title 5, United States Code;
          (5) any employee not described in paragraph (3) who 
        is in a position in the executive branch which is 
        excepted from the competitive service by reason of 
        being of a confidential or policymaking character, 
        except that the Director of the Office of Government 
        Ethics may, by regulation, exclude from the application 
        of this paragraph any individual, or group of 
        individuals, who are in such positions, but only in 
        cases in which the Director determines such exclusion 
        would not affect adversely the integrity of the 
        Government or the public's confidence in the integrity 
        of the Government;
          (6) the Postmaster General, the Deputy Postmaster 
        General, each Governor of the Board of Governors of the 
        United States Postal Service, each officer or employee 
        of the United States Postal Service who is designated 
        as a member of the Postal Career Executive Service 
        (PCES I or II), and each officer or employee of the 
        Postal Rate Commission who occupies a position 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;
          (7) the Director of the Office of Government Ethics 
        and each designated agency ethics official; and
          (8) any civilian employee not described in paragraph 
        (3), employed in the Executive Office of the President 
        (other than a special Government employee) who holds a 
        commission of appointment from the President.
    (g)(1) Reasonable extensions of time for filing any report 
may be granted under procedures prescribed by the Office of 
Government Ethics, but the total of such extensions shall not 
exceed 90 days.
    (2)(A) In the case of an individual who is serving in the 
Armed Forces, or serving in support of the Armed Forces, in an 
area while that area is designated by the President by 
Executive order as a combat zone for purposes of section 112 of 
the Internal Revenue Code of 1986, the date for the filing of 
any report shall be extended so that the date is 180 days after 
the later of--
          (i) the last day of the individual's service in such 
        area during such designated period; or
          (ii) the last day of the individual's hospitalization 
        as a result of injury received or disease contracted 
        while serving in such area.
    (B) The Office of Government Ethics, in consultation with 
the Secretary of Defense, may prescribe procedures under this 
paragraph.
    (h) The provisions of subsections (a), (b), and (e) shall 
not apply to an individual who, as determined by the designated 
agency ethics official or Secretary concerned (or in the case 
of a Presidential appointee under subsection (b), the Director 
of the Office of Government Ethics), is not reasonably expected 
to perform the duties of his office or position for more than 
60 days in a calendar year, except that if such individual 
performs the duties of his office or position for more than 60 
days in a calendar year--
          (1) the report required by subsections (a) and (b) 
        shall be filed within 15 days of the sixtieth day, and
          (2) the report required by subsection (e) shall be 
        filed as provided in such subsection.
    (i) The Director of the Office of Government Ethics may 
grant a publicly available request for a waiver of any 
reporting requirement under this section for an individual who 
is expected to perform or has performed the duties of his 
office or position less than 130 days in a calendar year, but 
only if the Director determines that--
          (1) such individual is not a full-time employee of 
        the Government,
          (2) such individual is able to provide services 
        specially needed by the Government,
          (3) it is unlikely that the individual's outside 
        employment or financial interests will create a 
        conflict of interest, and
          (4) public financial disclosure by such individual is 
        not necessary in the circumstances.

SEC. 202. CONTENTS OF REPORTS.

    (a) Each report filed pursuant to section 201 (d) and (e) 
shall include a full and complete statement with respect to the 
following:
          (1)(A) The source, description, and category of value 
        of income (other than income referred to in 
        subparagraph (B)) from any source (other than from 
        current employment by the United States Government), 
        received during the preceding calendar year, 
        aggregating more than $500 in value, except that 
        honoraria received during Government service by an 
        officer or employee shall include, in addition to the 
        source, the exact amount and the date it was received.
          (B) The source and description of investment income 
        which may include but is not limited to dividends, 
        rents, interest, and capital gains, received during the 
        preceding calendar year which exceeds $500 in amount or 
        value.
          (C) The categories for reporting the amount for 
        income covered in subparagraphs (A) and (B) of this 
        paragraph are--
                  (i) greater than $500 but not more than 
                $20,000;
                  (ii) greater than $20,000 but not more than 
                $100,000;
                  (iii) greater than $100,000 but not more than 
                $1,000,000;
                  (iv) greater than $1,000,000 but not more 
                than $2,500,000; and
                  (v) greater than $2,500,000.
          (2)(A) The identity of the source, a brief 
        description, and the value of all gifts aggregating 
        more than the minimal value as established by section 
        7342(a)(5) of title 5, United States Code, or $250, 
        whichever is greater, received from any source other 
        than a relative of the reporting individual during the 
        preceding calendar year, except that any food, lodging, 
        or entertainment received as personal hospitality of an 
        individual need not be reported, and any gift with a 
        fair market value of $100 or less, as adjusted at the 
        same time and by the same percentage as the minimal 
        value is adjusted, need not be aggregated for purposes 
        of this subparagraph.
          (B) The identity of the source and a brief 
        description (including dates of travel and nature of 
        expenses provided) of reimbursements received from any 
        source aggregating more than the minimal value as 
        established by section 7342(a)(5) of title 5, United 
        States Code, or $250, whichever is greater and received 
        during the preceding calendar year.
          (C) In an unusual case, a gift need not be aggregated 
        under subparagraph (A) if a publicly available request 
        for a waiver is granted.
          (3) The identity and category of value of any 
        interest in property held during the preceding calendar 
        year in a trade or business, or for investment or the 
        production of income, which has a fair market value 
        which exceeds $5,000 as of the close of the preceding 
        calendar year, excluding any personal liability owed to 
        the reporting individual by a spouse, or by a parent, 
        brother, sister, or child of the reporting individual 
        or of the reporting individual's spouse, or any deposit 
        accounts aggregating $100,000 or less in a financial 
        institution, or any Federal Government securities 
        aggregating $100,000 or less.
          (4) The identity and category of value of the total 
        liabilities owed to any creditor other than a spouse, 
        or a parent, brother, sister, or child of the reporting 
        individual or of the reporting individual's spouse 
        which exceed $20,000 at any time during the preceding 
        calendar year, excluding--
                  (A) any mortgage secured by real property 
                which is a personal residence of the reporting 
                individual or his spouse; and
                  (B) any loan secured by a personal motor 
                vehicle, household furniture, or appliances, 
                which loan does not exceed the purchase price 
                of the item which secures it. With respect to 
                revolving charge accounts, only those with an 
                outstanding liability which exceeds $20,000 as 
                of the close of the preceding calendar year 
                need be reported under this paragraph. 
                Notwithstanding the preceding sentence, 
                individuals required to file pursuant to 
                section 201(b), shall also report the aggregate 
                sum of the outstanding balances of all 
                revolving charge accounts as of any date that 
                is within 30 days of the date of filing if the 
                aggregate sum of those balances exceeds 
                $20,000.
          (5) Except as provided in this paragraph, a brief 
        description of any real property, other than property 
        used solely as a personal residence of the reporting 
        individual or his spouse, or stocks, bonds, commodities 
        futures, and other forms of securities, if--
                  (A) purchased, sold, or exchanged during the 
                preceding calendar year;
                  (B) the value of the transaction exceeded 
                $5,000; and
                  (C) the property or security is not already 
                required to be reported as a source of income 
                pursuant to paragraph (1)(B) or as an asset 
                pursuant to paragraph (3) of this section.
          (6)(A) The identity of all positions held on or 
        before the date of filing during the current calendar 
        year (and, for the first report filed by an individual, 
        during the 1-year period preceding such calendar year) 
        as an officer, director, trustee, partner, proprietor, 
        representative, employee, or consultant of any 
        corporation, company, firm, partnership, or other 
        business enterprise, any nonprofit organization, any 
        labor organization, or any educational or other 
        institution other than the United States. This 
        subparagraph shall not require the reporting of 
        positions held in any religious, social, fraternal, or 
        political entity and positions solely of an honorary 
        nature.
          (B) If any person, other than a person reported as a 
        source of income under paragraph (1)(A) or the United 
        States Government, paid a nonelected reporting 
        individual compensation in excess of $25,000 in the 
        calendar year prior to or the calendar year in which 
        the individual files his first report under this title, 
        the individual shall include in the report--
                  (i) the identity of each source of such 
                compensation; and
                  (ii) a brief description of the nature of the 
                duties performed or services rendered by the 
                reporting individual for each such source.
        The preceding sentence shall not require any individual 
        to include in such report any information which is 
        considered confidential as a result of a privileged 
        relationship, established by law, between such 
        individual and any person or any information which the 
        person for whom the services are provided has a reasonable 
        expectation of privacy, nor shall it require an individual 
        to report any information with respect to any person for whom 
        services were provided by any firm or association of which 
        such individual was a member, partner, or employee unless 
        such individual was directly involved in the provision of 
        such services.
          (7) A description of parties to and terms of any 
        agreement or arrangement with respect to (A) future 
        employment; (B) a leave of absence during the period of 
        the reporting individual's Government service; (C) 
        continuation of payments by a former employer other 
        than the United States Government; and (D) continuing 
        participation in an employee welfare or benefit plan 
        maintained by a former employer. The description of any 
        formal agreement for future employment shall include 
        the date on which that agreement was entered into.
          (8) The category of the total cash value of any 
        interest of the reporting individual in a qualified 
        blind trust.
    (b)(1) Each report filed pursuant to subsections (a), (b), 
and (c) of section 201 shall include a full and complete 
statement with respect to the information required by--
          (A) paragraphs (1) and (6) of subsection (a) for the 
        year of filing and the preceding calendar year,
          (B) paragraphs (3) and (4) of subsection (a) as of 
        the date specified in the report but which is less than 
        31 days before the filing date, and
          (C) paragraph (7) of subsection (a) as of the filing 
        date but for periods described in such paragraph.
    (2)(A) In lieu of filling out 1 or more schedules of a 
financial disclosure form, an individual may supply the 
required information in an alternative format, pursuant to 
either rules adopted by the Office of Government Ethics or 
pursuant to a specific written determination by the Director 
for a reporting individual.
    (B) In lieu of indicating the category of amount or value 
of any item contained in any report filed under this title, a 
reporting individual may indicate the exact dollar amount of 
such item.
    (c)(1) In the case of any individual referred to in section 
201(d), the Office of Government Ethics may by regulation a 
reporting period to include any period in which the individual 
served as an officer or employee described in 201(f) and the 
period would not otherwise be covered by any public report 
filed pursuant to this title.
    (2) In the case of any individual referred to in section 
201(e), any reference to the preceding calendar year shall be 
considered also to include that part of the calendar year of 
filing up to the date of the termination of employment.
    (d)(1) The categories for reporting the amount or value of 
the items covered in paragraph (3) of subsection (a) are--
          (A) greater than $5,000 but not more than $15,000;
          (B) greater than $15,000 but not more than $100,000;
          (C) greater than $100,000 but not more than 
        $1,000,000;
          (D) greater than $1,000,000 but not more than 
        $2,500,000; and
          (E) greater than $2,500,000.
    (2) For the purposes of paragraph (3) of subsection (a) if 
the current value of an interest in real property (or an 
interest in a real estate partnership) is not ascertainable 
without an appraisal, an individual may list (A) the date of 
purchase and the purchase price of the interest in the real 
property, or (B) the assessed value of the real property for 
tax purposes, adjusted to reflect the market value of the 
property used for the assessment if the assessed value is 
computed at less than 100 percent of such market value, but 
such individual shall include in his report a full and complete 
description of the method used to determine such assessed 
value, instead of specifying a category of value pursuant to 
paragraph (1) of this subsection. If the current value of any 
other item required to be reported under paragraph (3) of 
subsection (a) is not ascertainable without an appraisal, such 
individual may list the book value of a corporation whose stock 
is not publicly traded, the net worth of a business 
partnership, the equity value of an individually owned 
business, or with respect to other holdings, any recognized 
indication of value, but such individual shall include in his 
report a full and complete description of the method used in 
determining such value. In lieu of any value referred to in the 
preceding sentence, an individual may list the assessed value 
of the item for tax purposes, adjusted to reflect the market 
value of the item used for the assessment if the assessed value 
is computed at less than 100 percent of such market value, but 
a full and complete description of the method used in 
determining such assessed value shall be included in the 
report.
    (3) The categories for reporting the amount or value of the 
items covered in paragraphs (4) and (8) of subsection (a) are--
          (A) greater than $20,000 but not more than $100,000;
          (B) greater than $100,000 but not more than $500,000;
          (C) greater than $500,000 but not more than 
        $1,000,000; and
          (D) greater than $1,000,000.
    (e)(1) Except as provided in the last sentence of this 
paragraph, each report required by section 201 shall also 
contain information listed in paragraphs (1) through (5) of 
subsection (a) of this section respecting the spouse or 
dependent child of the reporting individual as follows:
          (A) The sources of earned income earned by a spouse 
        including honoraria which exceed $500 except that, with 
        respect to earned income if the spouse is self-employed 
        in business or a profession, only the nature of such 
        business or profession need be reported.
          (B) All information required to be reported in 
        subsection (a)(1)(B) with respect to investment income 
        derived by a spouse or dependent child.
          (C) In the case of any gifts received by a spouse or 
        dependent child which are not received totally 
        independent of the relationship of the spouse or 
        dependent child to the reporting individual, the 
        identity of the source and a brief description of gifts 
        of transportation, lodging, food, or entertainment and 
        a brief description and the value of other gifts.
          (D) In the case of any reimbursements received by a 
        spouse or dependent child which are not received 
        totally independent of the relationship of the spouse 
        or dependent child to the reporting individual, the 
        identity of the source and a brief description of each 
        such reimbursement.
          (E) In the case of items described in paragraphs (3) 
        through (5) of subsection (a), all information required 
        to be reported under these paragraphs other than items 
        which the reporting individual certifies (i) represent 
        the spouse's or dependent child's sole financial 
        interest or responsibility and which the reporting 
        individual has no knowledge of, (ii) are not in any 
        way, past or present, derived from the income, assets, 
        or activities of the reporting individual, and (iii) 
        that he neither derives, nor expects to derive, any 
        financial or economic benefit.
          (F) Reports required by subsections (a), (b), and (c) 
        of section 201 shall, with respect to the spouse and 
        dependent child of the reporting individual, only 
        contain information listed in paragraphs (1), (3), and 
        (4) of subsection (a), as specified in this paragraph.
    (2) No report shall be required with respect to a spouse 
living separate and apart from the reporting individual with 
the intention of terminating the marriage or providing for 
permanent separation; or with respect to any income or 
obligations of an individual arising from the dissolution of 
his marriage or the permanent separation from his spouse.
    (f)(1) Except as provided in paragraph (2), each reporting 
individual shall report the information required to be reported 
pursuant to subsections (a), (b), and (c) of this section with 
respect to the holdings of and the income from a trust or other 
financial arrangement from which income is received by, or with 
respect to which a beneficial interest in principal or income 
is held by, such individual, his spouse, or any dependent 
child.
    (2) A reporting individual need not report the holdings of 
or the source of income from any of the holdings of--
          (A) any qualified blind trust (as defined in 
        paragraph (3));
          (B) a trust--
                  (i) which was not created directly by such 
                individual, his spouse, or any dependent child, 
                and (ii) the holdings or sources of income of 
                which such individual, his spouse, and any 
                dependent child have no knowledge of; or (C) an 
                entity described under the provisions of 
                paragraph (8), but such individual shall report 
                the category of the amount of income received 
                by him, his spouse, or any dependent child from 
                the entity under subsection (a)(1)(B) of this 
                section.
    (3) For purposes of this subsection, the term `qualified 
blind trust' includes any trust in which a reporting 
individual, his spouse, or any minor or dependent child has a 
beneficial interest in the principal or income, and which meets 
the following requirements:
          (A)(i) The trustee of the trust and any other entity 
        designated in the trust instrument to perform fiduciary 
        duties is financial institution, an attorney, a 
        certified public accountant, a broker, or an investment 
        advisor who--
                  (I) is independent of and not associated with 
                any interested party so that the trustee or 
                other person cannot be controlled or influenced 
                in the administration of the trust by any 
                interested party;
                  (II) is not and has not been an employee of 
                or affiliated with any interested party and is 
                not a partner of, or involved in any joint 
                venture or other investment with, any 
                interested party; and
                  (III) is not a relative of any interested 
                party.
          (ii) Any officer or employee of a trustee or other 
        entity who is involved in the management or control of 
        the trust--
                  (I) is independent of and not associated with 
                any interested party so that such officer or 
                employee cannot be controlled or influenced in 
                the administration of the trust by any 
                interested party;
                  (II) is not a partner of, or involved in any 
                joint venture or other investment with, any 
                interested party; and
                  (III) is not a relative of any interested 
                party.
          (B) Any asset transferred to the trust by an 
        interested party is free of any restriction with 
        respect to its transfer or sale unless such restriction 
        is expressly approved by the Office of Government 
        Ethics.
          (C) The trust instrument which establishes the trust 
        provides that--
                  (i) except to the extent provided in 
                subparagraph (B) of this paragraph, the trustee 
                in the exercise of his authority and discretion 
                to manage and control the assets of the trust 
                shall not consult or notify any interested 
                party;
                  (ii) the trust shall not contain any asset 
                the holding of which by an interested party is 
                prohibited by any law or regulation;
                  (iii) the trustee shall promptly notify the 
                reporting individual and the Office of 
                Government Ethics when the holdings of any 
                particular asset transferred to the trust by 
                any interested party are disposed of or when 
                the value of such holding is less than $1,000;
                  (iv) the trust tax return shall be prepared 
                by the trustee or his designee, and such return 
                and any information relating thereto (other 
                than the trust income summarized in appropriate 
                categories necessary to complete an interested 
                party's tax return), shall not be disclosed to 
                any interested party;
                  (v) an interested party shall not receive any 
                report on the holdings and sources of income of 
                the trust, except a report at the end of each 
                calendar quarter with respect to the total cash 
                value of the interest of the interested party 
                in the trust or the net income or loss of the 
                trust or any reports necessary to enable the 
                interested party to complete an individual tax 
                return required by law or to provide the 
                information required by subsection (a)(1) of 
                this section, but such report shall not 
                identify any asset or holding;
                  (vi) except for communications which solely 
                consist of requests for distributions of cash 
                or other unspecified assets of the trust, there 
                shall be no direct or indirect communication 
                between the trustee and an interested party 
                with respect to the trust unless such 
                communication is in writing and unless it 
                relates only
                          (I) to the general financial interest 
                        and needs of the interested party 
                        (including, but not limited to, an 
                        interest in maximizing income or long-
                        term capital gain), (II) to the 
                        notification of the trustee of a law or 
                        regulation subsequently applicable to 
                        the reporting individual which 
                        prohibits the interested party from 
                        holding an asset, which notification 
                        directs that the asset not be held by 
                        the trust, or (III) to directions to 
                        the trustee to sell all of an asset 
                        initially placed in the trust by an 
                        interested party which in the 
                        determination of the reporting 
                        individual creates a conflict of 
                        interest or the appearance thereof due 
                        to the subsequent assumption of duties 
                        by the reporting individual (but 
                        nothing herein shall require any such 
                        direction); and
                  (vii) the interested parties shall make no 
                effort to obtain information with respect to 
                the holdings of the trust, including obtaining 
                a copy of any trust tax return filed or any 
                information relating thereto except as 
                otherwise provided in this subsection.
          (D) The proposed trust instrument and the proposed 
        trustee is approved by the Office of Government Ethics.
          (E) For purposes of this subsection, `interested 
        party' means a reporting individual, his spouse, and 
        any minor or dependent child; `broker' has the meaning 
        set forth in section 3(a)(4) of the Securities and 
        Exchange Act of 1934 (15 U.S.C. 78c(a)(4)); 
and`investment adviser' includes any investment adviser who, as 
determined under regulations prescribed by the supervising ethics 
office, is generally involved in his role as such an adviser in the 
management or control of trusts.
    (4)(A) An asset placed in a trust by an interested party 
shall be considered a financial interest of the reporting 
individual, for the purposes of any applicable conflict of 
interest statutes, regulations, or rules of the Federal 
Government (including section 208 of title 18, United States 
Code), until such time as the reporting individual is notified 
by the trustee that such asset has been disposed of, or has a 
value of less than $1,000.
    (B)(i) The provisions of subparagraph (A) shall not apply 
with respect to a trust created for the benefit of a reporting 
individual, or the spouse, dependent child, or minor child of 
such a person, if the Office of Government Ethics finds that--
          (I) the assets placed in the trust consist of a well-
        diversified portfolio of readily marketable securities;
          (II) none of the assets consist of securities of 
        entities having substantial activities in the area of 
        the reporting individual's primary area of 
        responsibility;
          (III) the trust instrument prohibits the trustee, 
        notwithstanding the provisions of paragraph (3)(C) 
        (iii) and (iv) of this subsection, from making public 
        or informing any interested party of the sale of any 
        securities;
          (IV) the trustee is given power of attorney, 
        notwithstanding the provisions of paragraph (3)(C)(v) 
        of this subsection, to prepare on behalf of any 
        interested party the personal income tax returns and 
        similar returns which may contain information relating 
        to the trust; and
          (V) except as otherwise provided in this paragraph, 
        the trust instrument provides (or in the case of a 
        trust which by its terms does not permit amendment, the 
        trustee, the reporting individual, and any other 
        interested party agree in writing) that the trust shall 
        be administered in accordance with the requirements of 
        this subsection and the trustee of such trust meets the 
        requirements of paragraph (3)(A).
    (ii) In any instance covered by subparagraph (B) in which 
the reporting individual is an individual whose nomination is 
being considered by a congressional committee, the reporting 
individual shall inform the congressional committee considering 
his nomination before or during the period of such individual's 
confirmation hearing of his intention to comply with this 
paragraph.
    (5)(A) The reporting individual shall, within 30 days after 
a qualified blind trust is approved by the Office of Government 
Ethics, file with such office a copy of--
          (i) the executed trust instrument of such trust 
        (other than those provisions which relate to the 
        testamentary disposition of the trust assets), and
          (ii) a list of the assets which were transferred to 
        such trust, including the category of value of each 
        asset as determined under subsection (d) of this 
        section.
This subparagraph shall not apply with respect to a trust 
meeting the requirements for being considered a qualified blind 
trust under paragraph (7) of this subsection.
    (B) The reporting individual shall, within 30 days of 
transferring an asset (other than cash) to a previously 
established qualified blind trust, notify the Office of 
Government Ethics of the identity of each such asset and the 
category of value of each asset as determined under subsection 
(d) of this section.
    (C) Within 30 days of the dissolution of a qualified blind 
trust, a reporting individual shall notify the Office of 
Government Ethics of such dissolution.
    (D) Documents filed under subparagraphs (A), (B), and (C) 
of this paragraph and the lists provided by the trustee of 
assets placed in the trust by an interested party which have 
been sold shall be made available to the public in the same 
manner as a report is made available under section 205 and the 
provisions of that section shall apply with respect to such 
documents and lists.
    (E) A copy of each written communication with respect to 
the trust under paragraph (3)(C)(vi) shall be filed by the 
person initiating the communication with the Office of 
Government Ethics within 5 days of the date of the 
communication.
    (6)(A) A trustee of a qualified blind trust shall not 
knowingly and willfully, or negligently,
          (i) disclose any information to an interested party 
        with respect to such trust that may not be disclosed 
        under paragraph (3) of this subsection;
          (ii) acquire any holding the ownership of which is 
        prohibited by the trust instrument;
          (iii) solicit advice from any interested party with 
        respect to such trust, which solicitation is prohibited 
        by paragraph (3) of this subsection or the trust 
        agreement; or
          (iv) fail to file any document required by this 
        subsection.
    (B) A reporting individual shall not knowingly and 
willfully, or negligently, (i) solicit or receive any 
information with respect to a qualified blind trust of which he 
is an interested party that may not be disclosed under 
paragraph (3)(C) of this subsection or (ii) fail to file any 
document required by this subsection.
    (C)(i) The Attorney General may bring a civil action in any 
appropriate United States district court against any individual 
who knowingly and willfully violates the provisions of 
subparagraph (A) or (B) of this paragraph. The court in which 
such action is brought may assess against such individual a 
civil penalty in any amount not to exceed $10,000.
    (ii) The Attorney General may bring a civil action in any 
appropriate United States district court against any individual 
who negligently violates the provisions of subparagraph (A) or 
(B) of this paragraph. The court in which such action is 
brought may assess against such individual a civil penalty in 
any amount not to exceed $5,000.
    (7) Any trust may be considered to be a qualified blind 
trust if--
          (A) the trust instrument is amended to comply with 
        the requirements of paragraph (3) or, in the case of a 
        trust instrument which does not by its terms permit 
        amendment, the trustee, the reporting individual, and 
        any other interested party agree in writing that the 
        trust shall be administered in accordance with the 
        requirements of this subsection and the trustee of such 
        trust meets the requirements of paragraph (3)(A); 
        except that in the case of any interested party who is 
        a dependent child, a parent or guardian of such child 
        may execute the agreement referred to in this 
        subparagraph;
          (B) a copy of the trust instrument (except 
        testamentary provisions) and a copy of the agreement 
        referred to in subparagraph (A), and a list of the 
        assets held by the trust at the time of approval by the 
        Office of Government Ethics, including the category of 
        value of each asset as determined under subsection (d) 
        of this section, are filed with such office and made 
        available to the public as provided under paragraph 
        (5)(D) of this subsection; and
          (C) the Director of the Office of Government Ethics 
        determines that approval of the trust arrangement as a 
        qualified blind trust is in the particular case appropriate 
        to assure compliance with applicable laws and regulations. 
    (8) A reporting individual shall not be required to report 
the financial interests held by a widely held investment fund 
(whether such fund is a mutual fund, regulated investment 
company, pension or deferred compensation plan, or other 
investment fund), if--
          (A)(i) the fund is publicly traded; or
          (ii) the assets of the fund are widely diversified; 
        and
          (B) the reporting individual neither exercises 
        control over nor has the ability to exercise control 
        over the financial interests held by the fund.
    (9)(A)(i) A reporting individual described in subsection 
(a) or (b) of section 201 shall not be required to report the 
holdings or sources of income of any trust or investment fund 
where--
          (I) reporting would result in the disclosure of 
        assets or sources of income of another person whose 
        interests are not required to be reported by the 
        reporting individual under this title;
          (II) the disclosure of such assets and sources of 
        income is prohibited by contract or the assets and 
        sources of income are not otherwise publicly available; 
        and
          (III) the reporting individual has executed a written 
        ethics agreement which contains a general description 
        of the trust or investment fund and a commitment to 
        divest the interest in the trust or investment fund not 
        later than 90 days after the date of the agreement.
    (ii) An agreement described under clause (i)(III) shall be 
attached to the public financial disclosure which would 
otherwise include a listing of the holdings or sources of 
income from this trust or investment fund.
    (B)(i) The provisions of subparagraph (A) shall apply to an 
individual described in subsection (d) or (e) of section 201 
if--
          (I) the interest in the trust or investment fund is 
        acquired involuntarily during the period to be covered 
        by the report, such as through marriage or inheritance, 
        and
          (II) for an individual described in subsection (d), 
        the individual executes a written ethics agreement 
        containing a commitment to divest the interest no later 
        than 90 days after the date on which the report is due.
    (ii) An agreement described under clause (i)(II) shall be 
attached to the public financial disclosure which would 
otherwise include a listing of the holdings or sources of 
income from this trust or investment fund.
    (iii) Failure to divest within the time specified or after 
an extension granted by the Director of the Office of 
Government Ethics for good cause shown shall result in an 
immediate requirement to report as specified in paragraph (1) 
of this subsection.
    (g) Political campaign funds, including campaign receipts 
and expenditures, need not be included in any report filed 
pursuant to this title.
    (h) A report filed pursuant to subsection (a), (d), or (e) 
of section 201 need not contain the information described in 
subparagraphs (A), (B), and (C) of subsection (a)(2) with 
respect to gifts and reimbursements received in a period when 
the reporting individual was not an officer or employee of the 
Federal Government.
    (i) A reporting individual shall not be required under this 
title to report--
          (1) financial interests in or income derived from--
                  (A) any retirement system under title 5, 
                United States Code (including the Thrift 
                Savings Plan under subchapter III of chapter 84 
                of such title); or
                  (B) any other retirement system maintained by 
                the United States for officers or employees of 
                the United States, including the President, or 
                for members of the uniformed services; or
          (2) benefits received under the Social Security Act 
        (42 U.S.C. 301 et seq.).
    (j)(1) Every month each designated agency ethics officer 
shall submit to the Office of Government Ethics notification of 
any waiver of criminal conflict of interest laws granted to any 
individual in the preceding month with respect to a filing 
under this title that is not confidential.
    (2) Every month the Office of Government Ethics shall make 
publicly available on the Internet--
          (A) all notifications of waivers submitted under 
        paragraph (1) in the preceding month; and
          (B) notification of all waivers granted by the Office 
        of Government Ethics in the preceding month.
    (k) A full copy of any waiver of criminal conflict of 
interest laws granted shall be included with any filing 
required under this title with respect to the year in which the 
waiver is granted.
    (l) The Office of Government Ethics shall provide upon 
request any waiver on file for which notice has been published.

SEC. 203. FILING OF REPORTS.

    (a) Except as otherwise provided in this section, the 
reports required under this title shall be filed by the 
reporting individual with the designated agency ethics official 
at the agency by which he is employed (or in the case of an 
individual described in section 201(e), was employed) or in 
which he will serve. The date any report is received (and the 
date of receipt of any supplemental report) shall be noted on 
such report by such official.
    (b) The President and the Vice President shall file reports 
required under this title with the Director of the Office of 
Government Ethics.
    (c) Copies of the reports required to be filed under this 
title by the Postmaster General, the Deputy Postmaster General, 
the Governors of the Board of Governors of the United States 
Postal Service, designated agency ethics officials, employees 
described in section 105(a)(2) (A) or (B), 106(a)(1) (A) or 
(B), or 107 (a)(1)(A) or (b)(1)(A)(i), of title 3, United 
States Code, candidates for the office of President or Vice 
President and officers and employees in (and nominees to) 
offices or positions within the executive branch which require 
confirmation by the Senate shall be transmitted to the Director 
of the Office of Government Ethics. The Director shall forward 
a copy of the report of each nominee to the congressional 
committee considering the nomination.
    (d) Reports required to be filed under this title by the 
Director of the Office of Government Ethics shall be filed in 
the Office of Government Ethics and, immediately after being 
filed, shall be made available to the public in accordance with 
this title.
    (e) Each individual identified in section 201(c) who is a 
candidate for nomination or election to the Office of President 
or Vice President shall file the reports required by this 
titlewith the Federal Election Commission.
    (f) Reports required of members of the uniformed services 
shall be filed with the Secretary concerned.
    (g) The Office of Government Ethics shall develop and make 
available forms for reporting the information required by this 
title.

SEC. 204. FAILURE TO FILE OR FILING FALSE REPORTS.

    (a) The Attorney General may bring a civil action in any 
appropriate United States district court against any individual 
who knowingly and willfully falsifies or who knowingly and 
willfully fails to file or report any information that such 
individual is required to report pursuant to section 202. The 
court in which such action is brought may assess against such 
individual a civil penalty in any amount, not to exceed 
$10,000.
    (b) The head of each agency, each Secretary concerned, or 
the Director of the Office of Government Ethics, as the may be, 
shall refer to the Attorney General the name of any individual 
which such official has reasonable cause to believe has 
willfully failed to file a report or has willfully falsified or 
willfully failed to file information required to be reported.
    (c) The President, the Vice President, the Secretary 
concerned, or the head of each agency may take any appropriate 
personnel or other action in accordance with applicable law or 
regulation against any individual failing to file a report or 
falsifying or failing to report information required to be 
reported.
    (d)(1) Any individual who files a report required to be 
filed under this title more than 30 days after the later of--
          (A) the date such report is required to be filed 
        pursuant to the provisions of this title and the rules 
        and regulations promulgated thereunder; or
          (B) if a filing extension is granted to such 
        individual under section 201(g), the last day of the 
        filing extension period, shall, at the direction of and 
        pursuant to regulations issued by the Office of 
        Government Ethics, pay a filing fee of $500. All such 
        fees shall be deposited in the miscellaneous receipts 
        of the Treasury. The authority under this paragraph to 
        direct the payment of a filing fee may be delegated by 
        the Office of Government Ethics to other agencies in 
        the executive branch.
    (2) The Office of Government Ethics may waive the filing 
fee under this subsection for good cause shown.

SEC. 205. CUSTODY OF AND PUBLIC ACCESS TO REPORTS.

    (a) Each agency and the Office of Government Ethics shall 
make available to the public, in accordance with subsection 
(b), each report filed under this title with such agency or 
Office except that this section does not require public 
availability of a report filed by any individual in the Central 
Intelligence Agency, the Defense Intelligence Agency, the 
National Imagery and Mapping Agency, or the National Security 
Agency, or any individual engaged in intelligence activities in 
any agency of the United States, if the President finds or has 
found that, due to the nature of the office or position 
occupied by such individual, public disclosure of such report 
would, by revealing the identity of the individual or other 
sensitive information, compromise the national interest of the 
United States; and such individuals may be authorized, 
notwithstanding section 204(a), to file such additional reports 
as are necessary to protect their identity from public 
disclosure if the President first finds or has found that such 
filing is necessary in the national interest.
    (b)(1) Except as provided in the second sentence of this 
subsection, each agency and the Office of Government Ethics 
shall, within 30 days after any report is received under this 
title by such agency or Office, as the case may be, permit 
inspection of such report by or furnish a copy of such report 
to any person requesting such inspection or copy. With respect 
to any report required to be filed by May 15 of any year, such 
report shall be made available for public inspection within 30 
calendar days after May 15 of such year or within 30 days of 
the date of filing of such a report for which an extension is 
granted pursuant to section 201(g). The agency or the Office of 
Government Ethics may require a reasonable fee to be paid in 
any amount which is found necessary to recover the cost of 
reproduction or mailing of such report excluding any salary of 
any employee involved in such reproduction or mailing. A copy 
of such report may be furnished without charge or at a reduced 
charge if it is determined that waiver or reduction of the fee 
is in the public interest.
    (2) Notwithstanding paragraph (1), a report may not be made 
available under this section to any person nor may any copy 
thereof be provided under this section to any person except 
upon a written application by such person stating--
          (A) that person's name, occupation, and address;
          (B) the name and address of any other person or 
        organization on whose behalf the inspection or copy is 
        requested; and
          (C) that such person is aware of the prohibitions on 
        the obtaining or use of the report.
Any such application shall be made available to the public 
throughout the period during which the report is made available 
to the public.
    (c)(1) It shall be unlawful for any person to obtain or use 
a report--
          (A) for any unlawful purpose;
          (B) for any commercial purpose, other than by news 
        and communications media for dissemination to the 
        general public;
          (C) for determining or establishing the credit rating 
        of any individual; or
          (D) for use, directly or indirectly, in the 
        solicitation of money for any political, charitable, or 
        other purpose.
    (2) The Attorney General may bring a civil action against 
any person who obtains or uses a report for any purpose 
prohibited in paragraph (1) of this subsection. The court in 
which such action is brought may assess against such person a 
penalty in any amount not to exceed $10,000. Such remedy shall 
be in addition to any other remedy available under statutory or 
common law.
    (d) Any report filed with or transmitted to an agency or 
the Office of Government Ethics pursuant to this title shall be 
retained by such agency or Office, as the case may be. Such 
report shall be made available to the public for a period of 6 
years after receipt of the report. After such 6-year period the 
report shall be destroyed unless needed in an ongoing 
investigation, except that in the case of an individual who 
filed the report pursuant to section 201(b) and was not 
subsequently confirmed by the Senate, or who filed the report 
pursuant to section 201(c) and wasnot subsequently elected, 
such reports shall be destroyed 1 year after the individual either is 
no longer under consideration by the Senate or is no longer a candidate 
for nomination or election to the Office of President or Vice President 
unless needed in an ongoing investigation.

SEC. 206. REVIEW OF REPORTS.

    (a) Each designated agency ethics official or Secretary 
concerned shall make provisions to ensure that each report 
filed with him under this title is reviewed within 60 days 
after the date of such filing, except that the Director of the 
Office of Government Ethics shall review only those reports 
required to be transmitted to him under this title within 60 
days after the date of transmittal.
    (b)(1) If after reviewing any report under subsection (a), 
the Director of the Office of Government Ethics, the Secretary 
concerned, or the designated agency ethics official, as the 
case may be, is of the opinion that on the basis of information 
contained in such report the individual submitting such report 
is in compliance with applicable laws and regulations, he shall 
state such opinion on the report, and shall sign such report.
    (2) If the Director of the Office of Government Ethics, the 
Secretary concerned, or the designated agency ethics official 
after reviewing any report under subsection (a)--
          (A) believes additional information is required to be 
        submitted to complete the form or to perform a conflict 
        of interest analysis, he shall notify the individual 
        submitting such report what additional information is 
        required and the time by which it must be submitted, or
          (B) is of the opinion, on the basis of information 
        submitted, that the individual is not in compliance 
        with applicable laws and regulations, he shall notify 
        the individual, afford a reasonable opportunity for a 
        written or oral response, and after consideration of 
        such response, reach an opinion as to whether or not, 
        on the basis of information submitted, the individual 
        is in compliance with such laws and regulations.
    (3) If the Director of the Office of Government Ethics, the 
Secretary concerned, or the designated agency ethics official 
reaches an opinion under paragraph (2)(B) that an individual is 
not in compliance with applicable laws and regulations, the 
official shall notify the individual of that opinion and, after 
an opportunity for personal consultation (if practicable), 
determine and notify the individual of which steps, if any, 
would in the opinion of such official be appropriate for 
assuring compliance with such laws and regulations and the date 
by which such steps should be taken. Such steps may include, as 
appropriate--
          (A) divestiture,
          (B) restitution,
          (C) the establishment of a blind trust,
          (D) request for an exemption under section 208(b) of 
        title 18, United States Code, or
          (E) voluntary request for transfer, reassignment, 
        limitation of duties, or resignation.
The use of any such steps shall be in accordance with such 
rules or regulations as the Office of Government Ethics may 
prescribe.
    (4) If steps for assuring compliance with applicable laws 
and regulations are not taken by the date set under paragraph 
(3) by an individual in a position in the executive branch 
(other than in the Foreign Service or the uniformed services), 
appointment to which requires the advice and consent of the 
Senate, the matter shall be referred to the President for 
appropriate action.
    (5) If steps for assuring compliance with applicable laws 
and regulations are not taken by the date set under paragraph 
(3) by a member of the Foreign Service or the uniformed 
services, the Secretary concerned shall take appropriate 
action.
    (6) If steps for assuring compliance with applicable laws 
and regulations are not taken by the date set under paragraph 
(3) by any other officer or employee, the matter shall be 
referred to the head of the appropriate agency for appropriate 
action; except that in the case of the Postmaster General or 
Deputy Postmaster General, the Director of the Office of 
Government Ethics shall recommend to the Governors of the Board 
of Governors of the United States Postal Service the action to 
be taken.
    (7) The Office of Government Ethics may render advisory 
opinions interpreting this title. Notwithstanding any other 
provision of law, the individual to whom a public advisory 
opinion is rendered in accordance with this paragraph, and any 
other individual covered by this title who is involved in a 
fact situation which is indistinguishable in all material 
aspects, and who acts in good faith in accordance with the 
provisions and findings of such advisory opinion shall not, as 
a result of such act, be subject to any penalty or sanction 
provided by this title.

SEC. 207. CONFIDENTIAL REPORTS AND OTHER ADDITIONAL REQUIREMENTS.

    (a)(1) The Office of Government Ethics may require officers 
and employees of the executive branch (including special 
Government employees as defined in section 202 of title 18, 
United States Code) to file confidential financial disclosure 
reports, in such form as it may prescribe. The information 
required to be reported under this subsection by the officers 
and employees of any department or agency shall be set forth in 
rules or regulations prescribed by the Office of Government 
Ethics, and may be less extensive than otherwise required by 
this title, or more extensive when determined by the Office of 
Government Ethics to be necessary and appropriate in light of 
sections 202 through 209 of title 18, United States Code, 
regulations promulgated thereunder, or the authorized 
activities of such officers or employees. Any individual 
required to file a report pursuant to section 201 shall not be 
required to file a confidential report pursuant to this 
subsection, except with respect to information which is more 
extensive than information otherwise required by this title. 
Subsections (a), (b), and (d) of section 205 shall not apply 
with respect to any such report.
    (2) Any information required to be provided by an 
individual under this subsection shall be confidential and 
shall not be disclosed to the public.
    (3) Nothing in this subsection exempts any individual 
otherwise covered by the requirement to file a public financial 
disclosure report under this title from such requirement.
    (b) The provisions of this title requiring the reporting of 
information shall supersede any general requirement under any 
other provision of law or regulation with respect to the 
reporting of information required for purposes of preventing 
conflicts of interest or apparent conflicts of interest. Such 
provisions of this title shall not supersede the requirements 
of section 7342 of title 5, United States Code.
    (c) Nothing in this Act requiring reporting of information 
shall be deemed to authorize the receipt of income, gifts, or 
reimbursements; the holding of assets, liabilities, or 
positions; orthe participation in transactions that are 
prohibited by law, Executive order, rule, or regulation.

SEC. 208. AUTHORITY OF COMPTROLLER GENERAL.

    The Comptroller General shall have access to financial 
disclosure reports filed under this title for the purposes of 
carrying out his statutory responsibilities.

SEC. 209. DEFINITIONS.

    For the purposes of this title, the term--
          (1) `dependent child' means, when used with respect 
        to any reporting individual, any individual who is a 
        son, daughter, stepson, or stepdaughter and who--
                  (A) is unmarried and under age 21 and is 
                living in the household of such reporting 
                individual; or
                  (B) is a dependent of such reporting 
                individual within the meaning of section 152 of 
                the Internal Revenue Code of 1986 (26 U.S.C. 
                152);
          (2) `designated agency ethics official' means an 
        officer or employee who is designated to administer the 
        provisions of this title within an agency;
          (3) `executive branch' includes each Executive agency 
        (as defined in section 105 of title 5, United States 
        Code), other than the General Accounting Office, and 
        any other entity or administrative unit in the 
        executive branch;
          (4) `gift' means a payment, advance, forbearance, 
        rendering, or deposit of money, or any thing of value, 
        unless consideration of equal or greater value is 
        received by the donor, but does not include--
                  (A) bequest and other forms of inheritance;
                  (B) suitable mementos of a function honoring 
                the reporting individual;
                  (C) food, lodging, transportation, and 
                entertainment provided by a foreign government 
                within a foreign country or by the United 
                States Government, the District of Columbia, or 
                a State or local government or political 
                subdivision thereof;
                  (D) food and beverages which are not consumed 
                in connection with a gift of overnight lodging;
                  (E) communications to the offices of a 
                reporting individual, including subscriptions 
                to newspapers and periodicals; or
                  (F) items that are accepted pursuant to or 
                are required to be reported by the reporting 
                individual under section 7342 of title 5, 
                United States Code.
          (5) `honoraria' means a payment of money or anything 
        of value for an appearance, speech, or article;
          (6) `income' means all income from whatever source 
        derived, including but not limited to the following 
        items: compensation for services, including fees, 
        commissions, and similar items; gross income derived 
        from business (and net income if the individual elects 
        to include it); gains derived from dealings in 
        property; interest; rents; royalties; prizes and 
        awards; dividends; annuities; income from life 
        insurance and endowment contracts; pensions; income 
        from discharge of indebtedness; distributive share of 
        partnership income; and income from an interest in an 
        estate or trust;
          (7) `personal hospitality of any individual' means 
        hospitality extended for a nonbusiness purpose by an 
        individual, not a corporation or organization, at the 
        personal residence of that individual or his family or 
        on property or facilities owned by that individual or 
        his family;
          (8) `reimbursement' means any payment or other thing 
        of value received by the reporting individual, other 
        than gifts, to cover travel-related expenses of such 
        individual other than those which are--
                  (A) provided by the United States Government, 
                the District of Columbia, or a State or local 
                government or political subdivision thereof;
                  (B) required to be reported by the reporting 
                individual under section 7342 of title 5, 
                United States Code; or (C) required to be 
                reported under section 304 of the Federal 
                Election Campaign Act of 1971 (2 U.S.C. 434);
          (9) `relative' means an individual who is related to 
        the reporting individual, as father, mother, son, 
        daughter, brother, sister, uncle, aunt, great aunt, 
        great uncle, first cousin, nephew, niece, husband, 
        wife, grandfather, grandmother, grandson, 
        granddaughter, father-in-law, mother-in-law, son-in-
        law, daughter-in-law, brother-in-law, sister-in-law, 
        stepfather, stepmother, stepson, stepdaughter, 
        stepbrother, stepsister, half brother, half sister, or 
        who is the grandfather or grandmother of the spouse of 
        the reporting individual, and shall be deemed to 
        include the fiance or fiancee of the reporting 
        individual;
          (10) `Secretary concerned' has the meaning set forth 
        in section 101(a)(9) of title 10, United States Code, 
        and, in addition, means--
                  (A) the Secretary of Commerce, with respect 
                to matters concerning the National Oceanic and 
                Atmospheric Administration;
                  (B) the Secretary of Health and Human 
                Services, with respect to matters concerning 
                the Public Health Service; and
                  (C) the Secretary of State, with respect to 
                matters concerning the Foreign Service; and
          (11) `value' means a good faith estimate of the 
        dollar value if the exact value is neither known nor 
        easily obtainable by the reporting individual.

SEC. 210. NOTICE OF ACTIONS TAKEN TO COMPLY WITH ETHICS AGREEMENTS.

    (a) In any case in which an individual agrees with that 
individual's designated agency ethics official, the Office of 
Government Ethics, or a Senate confirmation committee, to take 
any action to comply with this Act or any other law or 
regulation governing conflicts of interest of, or establishing 
standards of conduct applicable with respect to, officers or 
employees of the Government, that individual shall notify in 
writing the designated agency ethics official, the Office of 
Government Ethics, or the appropriate committee of the Senate, 
as the case may be, of any action taken by the individual 
pursuant to that agreement. Such notification shall be made not 
later than the date specified in the agreement by which action 
by the individual must be taken, or not later than 3 months 
after the date of the agreement, if no date for action is so 
specified. If all actions agreed to have not been completed by 
the date of this notification, such notification shall continue 
on a monthly basis thereafter until the individual has met the 
terms of the agreement.
    (b) If an agreement described in subsection (a) requires 
that the individual recuse himself or herself from particular 
categories of agency or other official action, the individual 
shall reduce to writing those subjects regarding which the 
recusal agreement will apply and the process by which it will 
be determined whether the individual must recuse himself or 
herself in a specific instance. An individual shall be 
considered to have complied with the requirements of subsection 
(a) with respect to such recusal agreement if such individual 
files a copy of the document setting forth the information 
described in the preceding sentence with such individual's 
designated agency ethics official or the Office of Government 
Ethics within the time prescribed in the penultimate sentence 
of subsection (a).

SEC. 211. ADMINISTRATION OF PROVISIONS.

    The Office of Government Ethics shall issue regulations, 
develop forms, and provide such guidance as is necessary to 
implement and interpret this title.

                                  
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