[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3664 Reported in Senate (RS)]
<DOC>
Calendar No. 488
118th CONGRESS
2d Session
S. 3664
[Report No. 118-210]
To require executive branch employees to report certain royalties, and
for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 25, 2024
Mr. Paul introduced the following bill; which was read twice and
referred to the Committee on Homeland Security and Governmental Affairs
September 9, 2024
Reported by Mr. Peters, with an amendment
[Strike out all after the enacting clause and insert the part printed
in italic]
_______________________________________________________________________
A BILL
To require executive branch employees to report certain royalties, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
<DELETED>SECTION 1. SHORT TITLE.</DELETED>
<DELETED> This Act may be cited as the ``Royalty Transparency
Act''.</DELETED>
<DELETED>SEC. 2. FINANCIAL DISCLOSURE REPORTS OF EXECUTIVE BRANCH
EMPLOYEES.</DELETED>
<DELETED> (a) Contents of Reports.--Section 13104(a)(1) of title 5,
United States Code, is amended--</DELETED>
<DELETED> (1) in subparagraph (A), by inserting ``, subject
to subparagraph (C)'' after ``employment by the United States
Government''; and</DELETED>
<DELETED> (2) by inserting after subparagraph (B) the
following:</DELETED>
<DELETED> ``(C) Royalties received by government
employees.--Notwithstanding section 12(c) of the
Stevenson-Wydler Technology Innovation Act of 1980 (15
U.S.C. 3710a (c)) and section 209 of title 35, if the
reporting individual is an officer or employee in the
executive branch (including a special Government
employee, as defined in section 202 of title 18), the
source and amount or value of any royalties received by
the reporting individual, the spouse of the reporting
individual, or a dependent child of the reporting
individual during the reporting period described in
subsection (d) or (e) of section 13103, as applicable,
that were received as a result of an invention
developed by the reporting individual in the course of
employment of the reporting individual with the United
States Government, including any royalty interest
payment made under the Federal Technology Transfer Act
of 1986 (Public Law 99-502; 100 Stat. 1785), an
amendment made by such Act, or any other applicable
authority.''.</DELETED>
<DELETED> (b) Review of Reports.--Section 13107(b) of title 5,
United States Code, is amended--</DELETED>
<DELETED> (1) in paragraph (1)--</DELETED>
<DELETED> (A) in the first sentence, by inserting
``and shall, notwithstanding section 12 of the
Stevenson-Wydler Technology Act of 1980 (15 U.S.C.
3710a) and section 209 of title 35, publish such report
on the internet website of the agency, office, Clerk,
or Secretary of the Senate, as the case may be'' after
``to any person requesting such inspection or copy'';
and</DELETED>
<DELETED> (B) in the second sentence--</DELETED>
<DELETED> (i) by inserting ``,
notwithstanding section 12 of the Stevenson-
Wydler Technology Act of 1980 (15 U.S.C. 3710a)
and section 209 of title 35,'' after ``such
report shall''; and</DELETED>
<DELETED> (ii) by inserting ``and published
on the internet website of the agency, office,
Clerk, or Secretary of the Senate, as the case
may be,'' after ``made available for public
inspection'';</DELETED>
<DELETED> (2) by striking paragraph (2) and the matter
following paragraph (2);</DELETED>
<DELETED> (3) by redesignating paragraph (3) as paragraph
(2); and</DELETED>
<DELETED> (4) by adding at the end the following:</DELETED>
<DELETED> ``(3) Procedure for releasing reports to members
of congress.--Notwithstanding any other provision of law, not
later than 30 days after receiving a request from a Member of
Congress, any agency or supervising ethics office in the
executive branch shall furnish to the Member of Congress an
unredacted copy of any report received under this
subchapter.''.</DELETED>
<DELETED> (c) Confidential Reports and Other Additional
Requirements.--Section 13109(a)(2) of title 5, United States Code, is
amended--</DELETED>
<DELETED> (1) by striking ``Any information'' and inserting
the following:</DELETED>
<DELETED> ``(A) In general.--Any information'';
and</DELETED>
<DELETED> (2) by adding at the end the following:</DELETED>
<DELETED> ``(B) Special government employees.--
</DELETED>
<DELETED> ``(i) Definition.--For the
purposes of this subparagraph, the term
`sensitive personal information' does not
include the source or amount or value of any
royalties received by a reporting
individual.</DELETED>
<DELETED> ``(ii) Redaction and
publication.--Upon receipt of a confidential
financial disclosure report under this section
of submitted by a special Government employee,
as defined in section 202 of title 18, the
recipient supervising ethics office shall--
</DELETED>
<DELETED> ``(I) redact any sensitive
personal information from the
confidential financial disclosure
report; and</DELETED>
<DELETED> ``(II) notwithstanding
section 12 of the Stevenson-Wydler
Technology Act of 1980 (15 U.S.C.
3710a(c)) and section 209 of title 35,
publish the redacted confidential
financial disclosure report on the
internet website of the agency by which
the special Government employee is
employed not later than 120 days after
the date on which the recipient
supervising ethics office receives the
confidential financial disclosure
report.''.</DELETED>
<DELETED>SEC. 3. GENERAL DISCLOSURE OF ROYALTIES.</DELETED>
<DELETED> (a) Definitions.--In this section:</DELETED>
<DELETED> (1) Agency.--The term ``agency'' means an agency
within the executive branch, as defined in section 13101 of
title 5, United States Code.</DELETED>
<DELETED> (2) Applicable person.--The term ``applicable
person'' means any individual or entity that applies to--
</DELETED>
<DELETED> (A) receive a grant from the Federal
Government; or</DELETED>
<DELETED> (B) serve as a contractor.</DELETED>
<DELETED> (3) Contractor.--The term ``contractor'' has the
meaning given the term in section 7101 of title 41, United
States Code.</DELETED>
<DELETED> (4) Covered royalty.--The term ``covered royalty''
means any royalty received by an applicable person from any
party other than the Federal Government.</DELETED>
<DELETED> (b) Agency Requirement.--Before receiving any Federal
grant or contract, each applicable person shall submit to the agency
from which the applicable person seeks the grant or for which the
applicable person seeks to serve as a contractor, as applicable, a
report disclosing the source and amount or value of all covered
royalties received by the applicable person during the 10-year period
preceding the date on which the applicable person receives such Federal
grant or contract.</DELETED>
<DELETED> (c) Procedure for Releasing Reports to Members of
Congress.--Notwithstanding any other provision of law, not later than
30 days after receiving a request from a Member of Congress, an agency
shall furnish to the Member of Congress an unredacted copy of any
report submitted under subsection (b).</DELETED>
<DELETED>SEC. 4. SEVERABILITY.</DELETED>
<DELETED> If any provision of this Act, an amendment made by this
Act, or the application of such provision or amendment to any person or
circumstance is held to be unconstitutional, the remainder of this Act
and the amendments made by this Act, and the application of the
provision or the amendment to any other person or circumstance, shall
not be affected.</DELETED>
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Royalty Transparency Act''.
SEC. 2. FINANCIAL DISCLOSURE REPORTS OF EXECUTIVE BRANCH EMPLOYEES.
(a) Individuals Required to File.--
(1) In general.--Section 13103 of title 5, United States
Code, is amended--
(A) in subsection (f)--
(i) in paragraph (11), by striking ``;
and'' and inserting a semicolon;
(ii) in paragraph (12), by striking the
period and inserting ``; and''; and
(iii) by adding at the end the following:
``(13) any member of--
``(A) the National Science Advisory Board for
Biosecurity;
``(B) the Advisory Committee on Immunization
Practices;
``(C) the Advisory Commission on Childhood
Vaccines;
``(D) the National Vaccine Advisory Committee;
``(E) the Vaccines and Related Biological Products
Advisory Committee;
``(F) the Defense Science Board;
``(G) the Board of Scientific Advisors of the
National Cancer Institute;
``(H) the Homeland Security Science and Technology
Advisory Committee;
``(I) the Medical Review Board Advisory Committee;
``(J) the President's Council of Advisors on
Science and Technology; or
``(K) any other advisory committee, as defined in
section 1001, including a successor to a committee
described in this paragraph, that the Government
Accountability Office determines, in accordance with
subsection (j)--
``(i) makes recommendations relating to
public health to an agency or the President;
and
``(ii) has had any recommendation fully or
partially implemented during the 10 years
preceding the determination.''; and
(B) by adding at the end the following:
``(j) Determination Regarding Advisory Committees.--Not later than
180 days after the date of enactment of the Royalty Transparency Act,
and annually thereafter, the Government Accountability Office shall
publish a list of each advisory committee that the Government
Accountability Office determines--
``(1) makes recommendations relating to public health to an
agency or the President; and
``(2) has had any recommendation fully or partially
implemented during the 10 years preceding the determination.''.
(2) Sunset.--Effective on the date that is 5 years after
the date of enactment of this Act, section 13103 of title 5,
United States Code, as amended by this Act, is amended--
(A) in subsection (f)(13), by striking subparagraph
(K) and inserting the following:
``(K) a successor to a committee described in
subparagraphs (A) through (J) of this paragraph.''; and
(B) by striking subsection (j).
(b) Notification of Waiver.--
(1) Title 5.--Section 13103(i) of title 5, United States
Code, is amended--
(A) by redesignating paragraphs (1) through (4) as
subparagraphs (A) through (D), respectively, and
adjusting the margins accordingly;
(B) in the matter preceding subparagraph (A), as so
redesignated, by striking ``the supervising ethics
office determines'' and inserting ``the supervising
ethics office--
``(1) determines'';
(C) in subparagraph (D), as so redesignated, by
striking the period at the end and inserting ``; and'';
and
(D) by adding at the end the following:
``(2) provides notification of such waiver to the Committee
on Homeland Security and Governmental Affairs of the Senate and
the Committee on Oversight and Accountability of the House of
Representatives.''.
(2) Title 18.--Section 208 of title 18, United States Code,
is amended by adding at the end the following:
``(e) Any exemption--
``(1) granted under paragraph (1) or (3) of subsection (b)
shall be immediately reported to the Committee on Homeland
Security and Governmental Affairs of the Senate and the
Committee on Oversight and Accountability of the House of
Representatives, including a detailed justification for
granting the waiver; or
``(2) granted under subpart (C) of part 2640 of title 5 of
the Code of Federal Regulations, or any successor regulation,
shall be immediately reported to the Committee on Homeland
Security and Governmental Affairs of the Senate and the
Committee on Oversight and Accountability of the House of
Representatives, including a detailed justification for
granting the waiver.''.
(c) Contents of Reports.--Section 13104(a)(1) of title 5, United
States Code, is amended--
(1) in subparagraph (A), by inserting ``, subject to
subparagraph (C)'' after ``employment by the United States
Government''; and
(2) by inserting after subparagraph (B) the following:
``(C) Royalties received by government employees
and committee filers.--Notwithstanding section 12(c) of
the Stevenson-Wydler Technology Innovation Act of 1980
(15 U.S.C. 3710a(c)) and section 209 of title 35, if
the reporting individual is an officer or employee in
the executive branch (including a special Government
employee, as defined in section 202 of title 18), or an
individual described in section 13103(f)(13), the
original source and amount or value of any royalties
received by the reporting individual, the spouse of the
reporting individual, or a dependent child of the
reporting individual during the reporting period
described in subsection (d) or (e) of section 13103, as
applicable, that were received as a result of an
invention developed by the reporting individual in the
course of employment of the reporting individual with
the United States Government, including any royalty
interest payment made under the Federal Technology
Transfer Act of 1986 (Public Law 99-502; 100 Stat.
1785), an amendment made by such Act, or any other
applicable authority.''.
(d) Review of Reports.--Section 13107(b) of title 5, United States
Code, is amended--
(1) in paragraph (1)--
(A) in the first sentence, by inserting ``and
shall, in the case of an agency or office and
notwithstanding section 12 of the Stevenson-Wydler
Technology Act of 1980 (15 U.S.C. 3710a) and section
209 of title 35, publish such report on the internet
website of the agency or office, as the case may be''
after ``to any person requesting such inspection or
copy''; and
(B) in the second sentence--
(i) by inserting ``, notwithstanding
section 12 of the Stevenson-Wydler Technology
Act of 1980 (15 U.S.C. 3710a) and section 209
of title 35,'' after ``such report shall''; and
(ii) by inserting ``and, in the case of an
agency or office, published on the internet
website of the agency or office, as the case
may be,'' after ``made available for public
inspection'';
(2) by striking paragraph (2) and the matter following
paragraph (2);
(3) by redesignating paragraph (3) as paragraph (2); and
(4) by adding at the end the following:
``(3) Procedure for releasing reports to members of
congress.--Notwithstanding any other provision of law, not
later than 30 days after receiving a request from a Member of
Congress, any agency or supervising ethics office in the
executive branch shall furnish to the Member of Congress a copy
of any report submitted under subsection (b), which shall be
unredacted, except with respect to social security numbers.''.
(e) Confidential Reports and Other Additional Requirements.--
Section 13109 of title 5, United States Code, is amended--
(1) by redesignating subsections (b) and (c) as subsections
(f) and (g), respectively; and
(2) by inserting after subsection (a) the following:
``(b) Royalties Received by Confidential Filers.--Notwithstanding
section 12(c) of the Stevenson-Wydler Technology Innovation Act of 1980
(15 U.S.C. 3710a(c)) and section 209 of title 35, the information
required to be reported under this section shall include the original
source and amount or value of any royalties received by the reporting
individual, or the spouse or any dependent child of the reporting
individual, that were received as a result of an invention, including
any royalty interest payment made under the Federal Technology Transfer
Act of 1986 (Public Law 99-502; 100 Stat. 1785), an amendment made by
such Act, or any other applicable authority.
``(c) Procedure for Releasing Reports to Members of Congress.--
Notwithstanding any other provision of law, not later than 30 days
after receiving a request from a Member of Congress, any agency or
supervising ethics office in the executive branch shall furnish to the
Member of Congress a copy of any report submitted under subsection (a),
which shall be unredacted, except with respect to social security
numbers, home addresses, phone numbers, email addresses, and the
personally identifiable information of dependents.
``(d) Reports.--Not later than 60 days after the date of enactment
of the Royalty Transparency Act, and each year thereafter, the head of
each agency shall submit to the Committee on Homeland Security and
Governmental Affairs of the Senate and the Committee on Oversight and
Accountability of the House of Representatives a report relating to
confidential financial disclosures of officers and employees under the
jurisdiction of such agency for the preceding fiscal year, which shall
include--
``(1) the number of individuals who filed such disclosures
with the agency under this section, including, if applicable,
the subcomponent of the agency that has jurisdiction over the
individual and the reason for filing confidentially;
``(2) the number of special Government employees, as
defined in section 202 of title 18, that are required to file
confidential financial disclosure reports with the agency under
this section; and
``(3) any additional information determined to be relevant
by the Director of the Office of Government Ethics after
consultation with the Committee on Homeland Security and
Governmental Affairs of the Senate and the Committee on
Oversight and Accountability of the House of Representatives.
``(e) Public Disclosure of Royalties Received by Certain Federal
Employees.--
``(1) Definition.--For the purposes of this subsection, the
term `covered individual' means an individual who--
``(A) is required to file a confidential financial
disclosure report under this section; and
``(B) reports receiving a royalty interest under
subsection (b).
``(2) Requirement.--Not later than 180 days after the date
of enactment of the Royalty Transparency Act, and annually
thereafter, each agency shall publish a report on the internet
website of the agency, listing--
``(A) the names of all covered individuals; and
``(B) the original source and amount or value of
any royalties reported under this section by each
covered individual.''.
SEC. 3. PREVENTING ORGANIZATIONAL CONFLICTS OF INTEREST IN FEDERAL
ACQUISITION.
(a) In General.--The Federal Acquisition Regulatory Council and the
Office of Management and Budget shall, as appropriate, enact or update
any regulation necessary to ensure that conflict of interest reviews
for prospective contractors or grantees include reviews of royalties
paid to prospective contractors or grantees in the preceding calendar
year.
(b) Ongoing Reviews.--Not later than 1 year after the date of
enactment of this Act, and each year thereafter, each agency conducting
any conflict of interest review described in subsection (a) shall
report to the Committee on Homeland Security and Governmental Affairs
of the Senate and the Committee on Oversight and Accountability of the
House of Representatives on the number of identified cases of potential
conflict of interest related to royalty payments and the steps taken to
mitigate those cases.
SEC. 4. SEVERABILITY.
If any provision of this Act, an amendment made by this Act, or the
application of such provision or amendment to any person or
circumstance is held to be unconstitutional, the remainder of this Act
and the amendments made by this Act, and the application of the
provision or the amendment to any other person or circumstance, shall
not be affected.
Calendar No. 488
118th CONGRESS
2d Session
S. 3664
[Report No. 118-210]
_______________________________________________________________________
A BILL
To require executive branch employees to report certain royalties, and
for other purposes.
_______________________________________________________________________
September 9, 2024
Reported with an amendment