[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 2463 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
1st Session
S. 2463
To amend chapter 131 of title 5, United States Code, and the STOCK Act
to require certain senior officials to report payments received from
the Federal Government, to improve the filing and disclosure of
financial disclosures, to ban stock ownership for certain senior
Government officials, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 25, 2023
Mrs. Gillibrand (for herself and Mr. Hawley) introduced the following
bill; which was read twice and referred to the Committee on Homeland
Security and Governmental Affairs
_______________________________________________________________________
A BILL
To amend chapter 131 of title 5, United States Code, and the STOCK Act
to require certain senior officials to report payments received from
the Federal Government, to improve the filing and disclosure of
financial disclosures, to ban stock ownership for certain senior
Government officials, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Ban Stock Trading for Government
Officials Act of 2023''.
TITLE I--ELIMINATING EXECUTIVE BRANCH INSIDER CONFLICTS OF INTEREST
SEC. 101. SHORT TITLE.
This title may be cited as the ``Eliminating Executive Branch
Insider Conflicts of Interest Act''.
SEC. 102. SENSE OF CONGRESS.
It is the sense of Congress that executive branch officials should
not have a personal financial interest in the outcome of Government
policy decisions.
SEC. 103. BANNING CONFLICTED INTERESTS IN THE EXECUTIVE BRANCH.
(a) In General.--Chapter 131 of title 5, United States Code, is
amended by adding at the end the following:
``Subchapter IV--Banning Conflicted Interests in the Executive Branch
``Sec. 13151. Definitions
``In this subchapter:
``(1) Adjacent individual.--The term `adjacent individual'
means--
``(A) each officer or employee in the executive
branch holding a Senior Executive Service position, as
defined under section 3132(a)(2) of title 5;
``(B) each member of a uniformed service whose pay
grade is at or in excess of O-7 under section 201 of
title 37;
``(C) each officer or employee in any other
position determined by the Special Counsel of the
United States, in consultation with the Director of the
Office of Government Ethics, to be of equal
classification to a position described in subparagraph
(A) or (B); or
``(D) the spouse or dependent child of any
individual described in subparagraph (A), (B), or (C).
``(2) Covered financial interest.--
``(A) In general.--The term `covered financial
interest' means--
``(i) any investment in--
``(I) a security (as defined in
section 3(a) of Securities Exchange Act
of 1934 (15 U.S.C. 78c(a)));
``(II) a security future (as
defined in that section); or
``(III) a commodity (as defined in
section 1a of the Commodity Exchange
Act (7 U.S.C. 1a)); or
``(ii) any economic interest comparable to
an interest described in clause (i) that is
acquired through synthetic means, such as the
use of a derivative, including an option,
warrant, or other similar means.
``(B) Exclusions.--The term `covered financial
interest' does not include--
``(i) a diversified mutual fund;
``(ii) a diversified exchange-traded fund;
``(iii) a United States Treasury bill,
note, or bond;
``(iv) compensation from the primary
occupation of a covered individual or adjacent
individual; or
``(v) any financial interest exempted under
paragraph (1) or (2) of section 208(b) of title
18.
``(3) Covered individual.--The term `covered individual'
means--
``(A) the President;
``(B) the Vice President; or
``(C) the spouse or dependent child of any
individual described in subparagraph (A) or (B).
``(4) Dependent child.--The term dependent child has the
meaning given the term in section 13101.
``Sec. 13152. Prohibition on certain transactions and holdings
involving covered financial interests
``(a) Prohibition.--Except as provided in subsection (b), a covered
individual or an adjacent individual may not, during the term of
service of the covered individual or adjacent individual, or during the
180-day period beginning on the date on which the service of such
covered individual or adjacent individual is terminated, hold,
purchase, sell, or conduct any type of transaction with respect to a
covered financial interest.
``(b) Exceptions.--The prohibition under subsection (a) shall not
apply to a sale by a covered individual or an adjacent individual that
is completed by the date that is--
``(1) for a covered individual or an adjacent individual
serving on the date of enactment of this section, 180 days
after the date of enactment; and
``(2) for a covered individual or an adjacent individual
who commences service as a covered individual after the date of
enactment of this section, 180 days after the first date of the
term of service.
``(c) Adjacent Individuals.--With respect to adjacent individuals--
``(1) this section shall be supplementary in nature to
section 208 of title 18; and
``(2) nothing in this section shall be construed to limit
the application of section 208 of title 18.
``(d) Penalties.--
``(1) Disgorgement.--A covered individual or adjacent
individual shall disgorge to the Treasury of the United States
any profit from a transaction or holding involving a covered
financial interest that is conducted in violation of this
section.
``(2) Fines.--A covered individual or an adjacent
individual who holds, purchases, sells, or conducts a
transaction involving a covered financial interest in violation
of this section--
``(A) shall be assessed a fine by the Office of the
Special Counsel, in consultation with the Director of
the Office of Government Ethics, of not more than
$10,000 or the amount of compensation, if any, that the
covered individual or adjacent individual received for
the prohibited conduct, whichever is greater; and
``(B) may be referred to the Department of Justice
and assessed a civil fine pursuant to section 13153 if
the Office of the Special Counsel, in consultation with
the Director of the Office of Government Ethics, find
such case comparatively substantial in monetary value
or extraordinary in nature.
``Sec. 13153. Civil penalties
``(a) Civil Action.--The Attorney General may bring a civil action
in any appropriate United States district court against any covered
individual or adjacent individual who violates any provision of section
13152.
``(b) Civil Penalty.--The court in which any action is brought
under subsection (a) may assess against a covered individual or an
adjacent individual a civil penalty of not more than the amount
recommended by the Attorney General.''.
(b) Clerical Amendment.--The table of sections for chapter 131 of
title 5, United States Code, is amended by adding at the end the
following:
``subchapter iv--banning conflicted interests in the executive branch
``13151. Definitions.
``13152. Prohibition on certain transactions and holdings involving
covered financial interests.
``13153. Civil penalties.''.
TITLE II--STOCK ACT 2.0
SEC. 201. SHORT TITLE.
This title may be cited as the ``STOCK Act 2.0''.
SEC. 202. REPORTING OF APPLICATIONS FOR, OR RECEIPT OF, PAYMENTS FROM
FEDERAL GOVERNMENT.
(a) In General.--Section 13103 of title 5, United States Code, is
amended by adding at the end the following:
``(i) Reporting of Applications for, or Receipt of, Payments From
Federal Government.--
``(1) Definitions.--In this subsection:
``(A) Covered payment.--
``(i) In general.--The term `covered
payment' means a payment of money or any other
item of value made, or promised to be made, by
the Federal Government.
``(ii) Inclusions.--The term `covered
payment' includes--
``(I) a loan agreement, contract,
or grant made, or promised to be made,
by the Federal Government; and
``(II) such other types of payment
of money or items of value as the
Secretary of the Treasury, in
consultation with the Director of the
Office of Government Ethics, may
establish, by regulation.
``(iii) Exclusions.--The term `covered
payment' does not include--
``(I) any salary or compensation
for service performed as, or
reimbursement of personal outlay by, an
officer or employee of the Federal
Government; or
``(II) any tax refund (including a
refundable tax credit).
``(B) Covered person.--The term `covered person'
means a person described in any of paragraphs (1)
through (10) of section 13105(l).
``(2) Reporting requirement.--Not later than 30 days after
the date of receipt of a notice of any application for, or
receipt of, a covered payment by a covered person, the spouse
of the covered person, or a dependent child of the covered
person (including any business owned and controlled by the
covered person or spouse or dependent child of the covered
person), but in no case later than 45 days after the date on
which the covered payment is made or promised to be made, the
covered person shall submit to the applicable supervising
ethics office a report describing the covered payment.
``(3) Fine for failure to report.--Notwithstanding section
13106(d), a covered person shall be assessed a fine, pursuant
to regulations issued by the applicable supervising ethics
office, of $500 in each case in which the covered person fails
to file a report required under this subsection.''.
(b) Report Contents.--Section 13104 of title 5, United States Code,
is amended by adding at the end the following:
``(j) Payments From Federal Government.--Each report filed pursuant
to subsection (i) of section 13103 shall include--
``(1) an identification of each type of payment or item of
value applied for, or received, from the Federal Government;
``(2)(A) the name of each recipient of each payment or item
of value identified under paragraph (1); and
``(B) the relationship of each recipient named under
subparagraph (A) to the person filing the report;
``(3) a description of the date on which, as applicable--
``(A) an application for a payment or other item of
value was submitted to the Federal Government; and
``(B) the payment or item of value was received
from the Federal Government; and
``(4) a description of the amount of each applicable
payment or item of value.''.
(c) Technical and Conforming Amendments.--
(1) Persons required to file.--Section 13103(f) of title 5,
United States Code, is amended--
(A) in paragraph (9), by striking ``as defined in
section 13101'';
(B) in paragraph (10), by striking ``as defined in
section 13101'';
(C) in paragraph (11), by striking ``as defined in
section 13101''; and
(D) in paragraph (12), by striking ``as defined in
section 13101''.
(2) Contents of reports.--Section 13104(a) of title 5,
United States Code, is amended in the matter preceding
paragraph (1), by striking ``section 13103(d) and (e)'' and
inserting ``subsection (d) or (e) of section 13103''.
(d) Effective Date.--The amendments made by this section shall
apply to relevant applications submitted to, and payments made or
promised to be made by, the Federal Government on or after the date
that is 90 days after the date of enactment of this Act.
SEC. 203. PENALTY FOR STOCK ACT NONCOMPLIANCE.
(a) In General.--The STOCK Act (Public Law 112-105; 126 Stat. 291;
126 Stat. 1310; 127 Stat. 438; 132 Stat. 4167) is amended by adding at
the end the following:
``SEC. 20. FINES FOR FAILURE TO REPORT.
``(a) In General.--Notwithstanding any other provision of law
(including regulations), an individual shall be assessed a fine,
pursuant to regulations issued by the applicable supervising ethics
office (including the Administrative Office of the United States
Courts, as applicable), of $500 in each case in which the individual
fails to file a transaction report required under this Act.
``(b) Deposit in Treasury.--The fines paid under this section shall
be deposited in the miscellaneous receipts of the Treasury.''.
(b) Rules, Regulations, Guidance, and Documents.--Not later than 1
year after the date of enactment of this Act, each supervising ethics
office (as defined in section 2 of the STOCK Act (5 U.S.C. 13101 note))
(including the Administrative Office of the United States Courts, as
applicable) shall amend the rules, regulations, guidance, documents,
papers, and other records of the supervising ethics office in
accordance with the amendment made by this section.
SEC. 204. BANNING CONFLICTED INTERESTS IN CONGRESS.
(a) In General.--
(1) Banning conflicted trades.--Chapter 131 of title 5,
United States Code, as amended by section 103 of this Act, is
amended by adding at the end the following:
``Subchapter V--Banning Conflicted Trades in Congress
``SEC. 13161. DEFINITIONS.
``In this subchapter:
``(1) Commodity.--The term `commodity' has the meaning
given the term in section 1a of the Commodity Exchange Act (7
U.S.C. 1a).
``(2) Covered financial interest.--
``(A) In general.--The term `covered financial
interest' means--
``(i) any investment in--
``(I) a security (as defined in
section 3(a) of Securities Exchange Act
of 1934 (15 U.S.C. 78c(a)));
``(II) a security future (as
defined in that section); or
``(III) a commodity (as defined in
section 1a of the Commodity Exchange
Act (7 U.S.C. 1a)); or
``(ii) any economic interest comparable to
an interest described in clause (i) that is
acquired through synthetic means, such as the
use of a derivative, including an option,
warrant, or other similar means.
``(B) Exclusions.--The term `covered financial
interest' does not include--
``(i) a diversified mutual fund;
``(ii) a diversified exchange-traded fund;
``(iii) a United States Treasury bill,
note, or bond;
``(iv) compensation from the primary
occupation of a covered individual; or
``(v) any financial interest exempted under
paragraph (1) or (2) of section 208(b) of title
18.
``(3) Covered individual.--The term `covered individual'
means--
``(A) a Member of Congress (as defined in section
13101); or
``(B) a spouse or dependent child of a Member of
Congress.
``(4) Dependent child.--The term dependent child has the
meaning given the term in section 13101.
``(5) Future.--The term `future' means a financial contract
obligating a buyer to purchase, or a seller to sell, an asset,
such as a physical commodity or a financial instrument, at a
predetermined future date and price.
``(6) Security.--The term `security' has the meaning given
the term in section 3(a) of the Securities Exchange Act of 1934
(15 U.S.C. 78c(a)).
``(7) Supervising ethics office.--The term `supervising
ethics office', with respect to a covered individual, has the
meaning given the term in section 13101 with respect to that
covered individual.
``SEC. 13162. PROHIBITIONS.
``(a) Transactions.--Except as provided in sections 13163 and
13164, and during the 180-day period beginning on the date on which the
service of such covered individual is terminated, no covered individual
may--
``(1) hold, purchase, sell, or conduct any type of
transaction with respect to a covered financial interest; or
``(2) enter into a transaction that creates a net short
position in any security.
``(b) Positions.--A covered individual may not serve as an officer
or member of any board of any for-profit association, corporation, or
other entity.
``SEC. 13163. DIVESTITURE.
``With respect to any covered financial interest held by a covered
individual, the covered individual shall sell the covered financial
interest during the 180-day period beginning on the later of--
``(1) the date on which the covered individual assumes
office or employment as a covered individual; and
``(2) the date of enactment of this Act.
``SEC. 13164. ADMINISTRATION AND ENFORCEMENT.
``(a) Administration.--Each supervising ethics office may issue
guidance relating to any matter covered by this subchapter, including--
``(1) whether a covered individual may hold an employee
stock option or other, similar instrument that has not vested
before the date on which the covered individual assumes office
or employment as a covered individual; and
``(2) the process and timeline for determining the date on
which a covered individual shall no longer serve as an officer
or member of any board of any for-profit association,
corporation, or other entity.
``(b) Enforcement.--A covered individual who knowingly fails to
comply with this subchapter--
``(1) shall disgorge to the Treasury of the United States
any profit from a transaction or holding involving a covered
financial interest that is conducted in violation of this
subchapter; and
``(2) shall be assessed a fine by the supervising ethics
office of not less than 10 percent of the value of the covered
financial interest that was purchased or sold, or the security
in which a net short position was created, in violation of this
subchapter, as applicable.''.
(2) Clerical amendment.--The table of sections for chapter
131 of title 5, United States Code, as amended by section 103
of this Act, is amended by adding at the end the following:
``subchapter v--banning conflicted trades in congress
``13161. Definitions.
``13162. Prohibitions.
``13163. Divestiture.
``13164. Administration and enforcement.''.
(b) Conforming Amendments.--
(1) Authority and functions.--Section 13122(f)(2)(B) of
title 5, United States Code, is amended--
(A) by striking ``Subject to clause (iv) of this
subparagraph, before'' each place it appears and
inserting ``Before''; and
(B) by striking clause (iv).
(2) Lobbying disclosure act of 1995.--Section 3(4)(D) of
the Lobbying Disclosure Act of 1995 (2 U.S.C. 1602(4)(D)) is
amended by striking ``legislative branch employee serving in a
position described under section 13101(13) of title 5, United
States Code'' and inserting ``officer or employee of Congress
(as defined in section 13101 of title 5, United States Code)''.
(3) STOCK act.--Section 2 of the STOCK Act (5 U.S.C. 13101
note) is amended--
(A) in paragraph (2)(B), by striking ``(11)'';
(B) in paragraph (4), by striking ``(10)'';
(C) in paragraph (5), by striking ``(9)''; and
(D) in paragraph (6), by striking ``(18)''.
(4) Securities exchange act of 1934.--Section 21A of the
Securities Exchange Act of 1934 (15 U.S.C. 78u-1) is amended--
(A) in subsection (g)(2)(B)(ii), by striking
``(11)''; and
(B) in subsection (h)(2)--
(i) in subparagraph (B), by striking
``(9)''; and
(ii) in subparagraph (C), by striking
``(10)''.
SEC. 205. ELECTRONIC FILING AND ONLINE PUBLIC AVAILABILITY OF FINANCIAL
DISCLOSURE FORMS.
(a) Members of Congress and Congressional Staff.--Section 8(b)(1)
of the STOCK Act (5 U.S.C. 13107 note) is amended--
(1) in the matter preceding subparagraph (A), by inserting
``, pursuant to subchapter I of chapter 131 of title 5, United
States Code, through databases maintained on the official
websites of the Senate and House of Representatives'' after
``enable'';
(2) in subparagraph (A), by striking ``reports received by
them pursuant to section 13105(h)(1)(A) of title 5, United
States Code, and'' and inserting ``each report received under
section 13105(h)(1)(A) of that subchapter; and''; and
(3) by striking subparagraph (B) and the undesignated
matter following that subparagraph and inserting the following:
``(B) public access--
``(i) to each--
``(I) financial disclosure report
filed by a Member of Congress or a
candidate for Congress;
``(II) transaction disclosure
report filed by a Member of Congress or
a candidate for Congress pursuant to
section 13105(l) of that subchapter;
and
``(III) notice of extension or
amendment with respect to a report
described in subclause (I) or (II),
pursuant to that subchapter; and
``(ii) in a manner that--
``(I) allows the public to search,
sort, and download data contained in
the reports described in subclause (I)
or (II) of clause (i) by criteria
required to be reported, including by
filer name, asset, transaction type,
ticker symbol, notification date,
amount of transaction, and date of
transaction;
``(II) allows access through an
application programming interface; and
``(III) is fully compliant with--
``(aa) section 508 of the
Rehabilitation Act of 1973 (29
U.S.C. 794d); and
``(bb) the most recent Web
Content Accessibility
Guidelines (or successor
guidelines).''.
(b) Very Senior Executive Branch Employees.--Section 11(b)(1) of
the STOCK Act (Public Law 112-105; 126 Stat. 299) is amended--
(1) in the matter preceding subparagraph (A), by inserting
``, pursuant to subchapter I of chapter 131 of title 5, United
States Code, through databases maintained on the official
website of the Office of Government Ethics'' after ``enable'';
and
(2) by striking subparagraph (B) and the undesignated
matter following that subparagraph and inserting the following:
``(B) public access--
``(i) to each--
``(I) financial disclosure report
filed by an officer occupying a
position listed in section 5312 or 5313
of title 5, United States Code, having
been nominated by the President and
confirmed by the Senate to that
position;
``(II) transaction disclosure
report filed by an individual described
in subclause (I) pursuant to section
13105(l) of title 5, United States
Code; and
``(III) notice of extension or
amendment with respect to a report
described in subclause (I) or (II),
pursuant to subchapter I of chapter 131
of title 5, United States Code; and
``(ii) in a manner that--
``(I) allows the public to search,
sort, and download data contained in
the reports described in subclause (I)
or (II) of clause (i) by criteria
required to be reported, including by
filer name, asset, transaction type,
ticker symbol, notification date,
amount of transaction, and date of
transaction;
``(II) allows access through an
application programming interface; and
``(III) is fully compliant with--
``(aa) section 508 of the
Rehabilitation Act of 1973 (29
U.S.C. 794d); and
``(bb) the most recent Web
Content Accessibility
Guidelines (or successor
guidelines).''.
(c) Applicability.--The amendments made by this section shall apply
on and after the date that is 18 months after the date of enactment of
this Act.
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