Text: S.2038 — 112th Congress (2011-2012)All Information (Except Text)

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Public Law No: 112-105 (04/04/2012)

 
[112th Congress Public Law 105]
[From the U.S. Government Printing Office]



[[Page 126 STAT. 291]]

Public Law 112-105
112th Congress

                                 An Act


 
  To prohibit Members of Congress and employees of Congress from using 
nonpublic information derived from their official positions for personal 
  benefit, and for other purposes. <<NOTE: Apr. 4, 2012 -  [S. 2038]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Stop Trading on 
Congressional Knowledge Act of 2012. 5 USC app. 101 note.>> 
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stop Trading on Congressional 
Knowledge Act of 2012'' or the ``STOCK Act''.
SEC. 2. <<NOTE: 5 USC app. 101 note.>> DEFINITIONS.

    In this Act:
            (1) Member of congress.--The term ``Member of Congress'' 
        means a member of the Senate or House of Representatives, a 
        Delegate to the House of Representatives, and the Resident 
        Commissioner from Puerto Rico.
            (2) Employee of congress.--The term ``employee of Congress'' 
        means--
                    (A) any individual (other than a Member of 
                Congress), whose compensation is disbursed by the 
                Secretary of the Senate or the Chief Administrative 
                Officer of the House of Representatives; and
                    (B) any other officer or employee of the legislative 
                branch (as defined in section 109(11) of the Ethics in 
                Government Act of 1978 (5 U.S.C. App. 109(11))).
            (3) Executive branch employee.--The term ``executive branch 
        employee''--
                    (A) has the meaning given the term ``employee'' 
                under section 2105 of title 5, United States Code; and
                    (B) includes--
                          (i) the President;
                          (ii) the Vice President; and
                          (iii) an employee of the United States Postal 
                      Service or the Postal Regulatory Commission.
            (4) Judicial officer.--The term ``judicial officer'' has the 
        meaning given that term under section 109(10) of the Ethics in 
        Government Act of 1978 (U.S.C. App. 109(10)).
            (5) Judicial employee.--The term ``judicial employee'' has 
        the meaning given that term in section 109(8) of the Ethics in 
        Government Act of 1978 (5 U.S.C. App. 109(8)).
            (6) Supervising ethics office.--The term ``supervising 
        ethics office'' has the meaning given that term in section 
        109(18) of the Ethics in Government Act of 1978 (5 U.S.C. App. 
        109(18)).

[[Page 126 STAT. 292]]

SEC. 3. <<NOTE: 5 USC app. 101 note prec.>> PROHIBITION OF THE USE 
                    OF NONPUBLIC INFORMATION FOR PRIVATE PROFIT.

    The <<NOTE: Guidance.>> Select Committee on Ethics of the Senate and 
the Committee on Ethics of the House of Representatives shall issue 
interpretive guidance of the relevant rules of each chamber, including 
rules on conflicts of interest and gifts, clarifying that a Member of 
Congress and an employee of Congress may not use nonpublic information 
derived from such person's position as a Member of Congress or employee 
of Congress or gained from the performance of such person's official 
responsibilities as a means for making a private profit.
SEC. 4. PROHIBITION OF INSIDER TRADING.

    (a) <<NOTE: 15 USC 78j note.>>  Affirmation of Nonexemption.--
Members of Congress and employees of Congress are not exempt from the 
insider trading prohibitions arising under the securities laws, 
including section 10(b) of the Securities Exchange Act of 1934 and Rule 
10b-5 thereunder.

    (b) Duty.--
            (1) <<NOTE: 15 USC 78u-1 note.>>  Purpose.--The purpose of 
        the amendment made by this subsection is to affirm a duty 
        arising from a relationship of trust and confidence owed by each 
        Member of Congress and each employee of Congress.
            (2) Amendment.--Section 21A of the Securities Exchange Act 
        of 1934 (15 U.S.C. 78u-1) is amended by adding at the end the 
        following:

    ``(g) Duty of Members and Employees of Congress.--
            ``(1) In general.--Subject to the rule of construction under 
        section 10 of the STOCK Act and solely for purposes of the 
        insider trading prohibitions arising under this Act, including 
        section 10(b) and Rule 10b-5 thereunder, each Member of Congress 
        or employee of Congress owes a duty arising from a relationship 
        of trust and confidence to the Congress, the United States 
        Government, and the citizens of the United States with respect 
        to material, nonpublic information derived from such person's 
        position as a Member of Congress or employee of Congress or 
        gained from the performance of such person's official 
        responsibilities.
            ``(2) Definitions.--In this subsection--
                    ``(A) the term `Member of Congress' means a member 
                of the Senate or House of Representatives, a Delegate to 
                the House of Representatives, and the Resident 
                Commissioner from Puerto Rico; and
                    ``(B) the term `employee of Congress' means--
                          ``(i) any individual (other than a Member of 
                      Congress), whose compensation is disbursed by the 
                      Secretary of the Senate or the Chief 
                      Administrative Officer of the House of 
                      Representatives; and
                          ``(ii) any other officer or employee of the 
                      legislative branch (as defined in section 109(11) 
                      of the Ethics in Government Act of 1978 (5 U.S.C. 
                      App. 109(11))).
            ``(3) Rule of construction.--Nothing in this subsection 
        shall be construed to impair or limit the construction of the 
        existing antifraud provisions of the securities laws or the 
        authority of the Commission under those provisions.''.

[[Page 126 STAT. 293]]

SEC. 5. CONFORMING CHANGES TO THE COMMODITY EXCHANGE ACT.

    Section 4c(a) of the Commodity Exchange Act (7 U.S.C. 6c(a)) is 
amended--
            (1) in paragraph (3), in the matter preceding subparagraph 
        (A)--
                    (A) by inserting ``or any Member of Congress or 
                employee of Congress (as such terms are defined under 
                section 2 of the STOCK Act) or any judicial officer or 
                judicial employee (as such terms are defined, 
                respectively, under section 2 of the STOCK Act)'' after 
                ``Federal Government'' the first place it appears;
                    (B) by inserting ``Member, officer,'' after 
                ``position of the''; and
                    (C) by inserting ``or by Congress or by the 
                judiciary'' before ``in a manner''; and
            (2) in paragraph (4)--
                    (A) in subparagraph (A), in the matter preceding 
                clause (i)--
                          (i) by inserting ``or any Member of Congress 
                      or employee of Congress or any judicial officer or 
                      judicial employee'' after ``Federal Government'' 
                      the first place it appears;
                          (ii) by inserting ``Member, officer,'' after 
                      ``position of the''; and
                          (iii) by inserting ``or by Congress or by the 
                      judiciary'' before ``in a manner'';
                    (B) in subparagraph (B), in the matter preceding 
                clause (i), by inserting ``or any Member of Congress or 
                employee of Congress or any judicial officer or judicial 
                employee'' after ``Federal Government''; and
                    (C) in subparagraph (C)--
                          (i) in the matter preceding clause (i), by 
                      inserting ``or by Congress or by the judiciary''--
                                    (I) before ``that may affect''; and
                                    (II) before ``in a manner''; and
                          (ii) in clause (iii), by inserting ``to 
                      Congress, any Member of Congress, any employee of 
                      Congress, any judicial officer, or any judicial 
                      employee,'' after ``Federal Government,''.
SEC. 6. PROMPT REPORTING OF FINANCIAL TRANSACTIONS.

    (a) Reporting Requirement.--Section 103 of the Ethics in Government 
Act of 1978 (5 U.S.C. App. 103) is amended by adding at the end the 
following subsection:
    ``(l) Not later than 30 days after receiving notification of any 
transaction required to be reported under section 102(a)(5)(B), but in 
no case later than 45 days after such transaction, the following 
persons, if required to file a report under any subsection of section 
101, subject to any waivers and exclusions, shall file a report of the 
transaction:
            ``(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

[[Page 126 STAT. 294]]

        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 and each officer or employee of the United States 
        Postal Service or Postal Regulatory 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).''.

    (b) <<NOTE: Applicability. 5 USC app. 103 note.>>  Effective Date.--
The amendment made by subsection (a) shall apply to transactions 
occurring on or after the date that is 90 days after the date of 
enactment of this Act.
SEC. 7. REPORT ON POLITICAL INTELLIGENCE ACTIVITIES.

    (a) Report.--
            (1) In general.--Not later than 12 months after the date of 
        enactment of this Act, the Comptroller General of the United 
        States, in consultation with the Congressional Research Service, 
        shall submit to the Committee on Homeland Security and 
        Governmental Affairs of the Senate and the Committee on 
        Oversight and Government Reform and the Committee on the 
        Judiciary of the House of Representatives a report on the role 
        of political intelligence in the financial markets.
            (2) Contents.--The report required by this section shall 
        include a discussion of--
                    (A) what is known about the prevalence of the sale 
                of political intelligence and the extent to which 
                investors rely on such information;
                    (B) what is known about the effect that the sale of 
                political intelligence may have on the financial 
                markets;

[[Page 126 STAT. 295]]

                    (C) the extent to which information which is being 
                sold would be considered nonpublic information;
                    (D) the legal and ethical issues that may be raised 
                by the sale of political intelligence;
                    (E) any benefits from imposing disclosure 
                requirements on those who engage in political 
                intelligence activities; and
                    (F) any legal and practical issues that may be 
                raised by the imposition of disclosure requirements on 
                those who engage in political intelligence activities.

    (b) Definition.--For purposes of this section, the term ``political 
intelligence'' shall mean information that is--
            (1) derived by a person from direct communications with an 
        executive branch employee, a Member of Congress, or an employee 
        of Congress; and
            (2) provided in exchange for financial compensation to a 
        client who intends, and who is known to intend, to use the 
        information to inform investment decisions.
SEC. 8. PUBLIC FILING AND DISCLOSURE OF FINANCIAL DISCLOSURE FORMS 
                    OF MEMBERS OF CONGRESS AND CONGRESSIONAL 
                    STAFF.

    (a) <<NOTE: 5 USC app. 105 note.>>  Public, Online Disclosure of 
Financial Disclosure Forms of Members of Congress and Congressional 
Staff.--
            (1) <<NOTE: Deadlines. Web posting.>>  In general.--Not 
        later than August 31, 2012, or 90 days after the date of 
        enactment of this Act, whichever is later, the Secretary of the 
        Senate and the Sergeant at Arms of the Senate, and the Clerk of 
        the House of Representatives, shall ensure that financial 
        disclosure forms filed by Members of Congress, candidates for 
        Congress, and employees of Congress in calendar year 2012 and in 
        subsequent years pursuant to title I of the Ethics in Government 
        Act of 1978 are made available to the public on the respective 
        official websites of the Senate and the House of Representatives 
        not later than 30 days after such forms are filed.
            (2) Extensions.--Notices of extension for financial 
        disclosure shall be made available electronically under this 
        subsection along with its related disclosure.
            (3) Reporting transactions.--In the case of a transaction 
        disclosure required by section 103(l) of the Ethics in 
        Government Act of 1978, as added by this Act, such disclosure 
        shall be filed not later than the date required by that section. 
        Notices of extension for transaction disclosure shall be made 
        available electronically under this subsection along with its 
        related disclosure.
            (4) Expiration.--The requirements of this subsection shall 
        expire upon implementation of the public disclosure system 
        established under subsection (b).

    (b) <<NOTE: 5 USC 105 note.>>  Electronic Filing and Online Public 
Availability of Financial Disclosure Forms of Members of Congress, 
Officers of the House and Senate, and Congressional Staff.--
            (1) <<NOTE: Deadline.>>  In general.--Subject to paragraph 
        (6) and not later than 18 months after the date of enactment of 
        this Act, the Secretary of the Senate and the Sergeant at Arms 
        of the Senate and the Clerk of the House of Representatives 
        shall develop systems to enable--

[[Page 126 STAT. 296]]

                    (A) electronic filing of reports received by them 
                pursuant to section 103(h)(1)(A) of title I of the 
                Ethics in Government Act of 1978; and
                    (B) public access to financial disclosure reports 
                filed by Members of Congress, candidates for Congress, 
                and employees of Congress, as well as reports of a 
                transaction disclosure required by section 103(l) of the 
                Ethics in Government Act of 1978, as added by this Act, 
                notices of extensions, amendments, and blind trusts, 
                pursuant to title I of the Ethics in Government Act of 
                1978, through databases that--
                          (i) are maintained on the official websites of 
                      the House of Representatives and the Senate; and
                          (ii) allow the public to search, sort, and 
                      download data contained in the reports.
            (2) Login.--No login shall be required to search or sort the 
        data contained in the reports made available by this subsection. 
        A login protocol with the name of the user shall be utilized by 
        a person downloading data contained in the reports. For purposes 
        of filings under this section, section 105(b)(2) of the Ethics 
        in Government Act of 1978 does not apply.
            (3) Public availability.--Pursuant to section 105(b)(1) of 
        the Ethics in Government Act of 1978, electronic availability on 
        the official websites of the Senate and the House of 
        Representatives under this subsection shall be deemed to have 
        met the public availability requirement.
            (4) Filers covered.--Individuals required under the Ethics 
        in Government Act of 1978 or the Senate Rules to file financial 
        disclosure reports with the Secretary of the Senate or the Clerk 
        of the House of Representatives shall file reports 
        electronically using the systems developed by the Secretary of 
        the Senate, the Sergeant at Arms of the Senate, and the Clerk of 
        the House of Representatives.
            (5) Extensions.--Notices of extension for financial 
        disclosure shall be made available electronically under this 
        subsection along with its related disclosure.
            (6) Additional time.--The requirements of this subsection 
        may be implemented after the date provided in paragraph (1) if 
        the Secretary of the Senate or the Clerk of the House of 
        Representatives identifies in writing to relevant congressional 
        committees the additional time needed for such implementation.

    (c) Recordkeeping.--Section 105(d) of the Ethics in Government Act 
of 1978 (5 U.S.C. App. 105(d)) is amended to read as follows:
    ``(d)(1) <<NOTE: Time periods.>>  Any report filed with or 
transmitted to an agency or 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 of 
the House of Representatives or the Secretary of the Senate, as the case 
may be.

    ``(2) Such report shall be made available to the public--
            ``(A) in the case of a Member of Congress until a date that 
        is 6 years from the date the individual ceases to be a Member of 
        Congress; and
            ``(B) in the case of all other reports filed pursuant to 
        this title, for a period of 6 years after receipt of the report.

[[Page 126 STAT. 297]]

    ``(3) After the relevant time period identified under paragraph (2), 
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 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 or inquiry.''.
SEC. 9. OTHER FEDERAL OFFICIALS.

    (a) <<NOTE: Guidance. 5 USC app. 101 note prec.>>  Prohibition of 
the Use of Nonpublic Information for Private Profit.--
            (1) Executive branch employees.--The Office of Government 
        Ethics shall issue such interpretive guidance of the relevant 
        Federal ethics statutes and regulations, including the Standards 
        of Ethical Conduct for executive branch employees, related to 
        use of nonpublic information, as necessary to clarify that no 
        executive branch employee may use nonpublic information derived 
        from such person's position as an executive branch employee or 
        gained from the performance of such person's official 
        responsibilities as a means for making a private profit.
            (2) Judicial officers.--The Judicial Conference of the 
        United States shall issue such interpretive guidance of the 
        relevant ethics rules applicable to Federal judges, including 
        the Code of Conduct for United States Judges, as necessary to 
        clarify that no judicial officer may use nonpublic information 
        derived from such person's position as a judicial officer or 
        gained from the performance of such person's official 
        responsibilities as a means for making a private profit.
            (3) Judicial employees.--The Judicial Conference of the 
        United States shall issue such interpretive guidance of the 
        relevant ethics rules applicable to judicial employees as 
        necessary to clarify that no judicial employee may use nonpublic 
        information derived from such person's position as a judicial 
        employee or gained from the performance of such person's 
        official responsibilities as a means for making a private 
        profit.

    (b) Application of Insider Trading Laws.--
            (1) <<NOTE: 15 USC 78j note.>>  Affirmation of non-
        exemption.--Executive branch employees, judicial officers, and 
        judicial employees are not exempt from the insider trading 
        prohibitions arising under the securities laws, including 
        section 10(b) of the Securities Exchange Act of 1934 and Rule 
        10b-5 thereunder.
            (2) Duty.--
                    (A) <<NOTE: 15 USC 78u-1 note.>>  Purpose.--The 
                purpose of the amendment made by this paragraph is to 
                affirm a duty arising from a relationship of trust and 
                confidence owed by each executive branch employee, 
                judicial officer, and judicial employee.
                    (B) Amendment.--Section 21A of the Securities 
                Exchange Act of 1934 (15 U.S.C. 78u-1), as amended by 
                this Act, is amended by adding at the end the following:

    ``(h) Duty of Other Federal Officials.--
            ``(1) In general.--Subject to the rule of construction under 
        section 10 of the STOCK Act and solely for purposes of the 
        insider trading prohibitions arising under this Act, including

[[Page 126 STAT. 298]]

        section 10(b), and Rule 10b-5 thereunder, each executive branch 
        employee, each judicial officer, and each judicial employee owes 
        a duty arising from a relationship of trust and confidence to 
        the United States Government and the citizens of the United 
        States with respect to material, nonpublic information derived 
        from such person's position as an executive branch employee, 
        judicial officer, or judicial employee or gained from the 
        performance of such person's official responsibilities.
            ``(2) Definitions.--In this subsection--
                    ``(A) the term `executive branch employee'--
                          ``(i) has the meaning given the term 
                      `employee' under section 2105 of title 5, United 
                      States Code;
                          ``(ii) includes--
                                    ``(I) the President;
                                    ``(II) the Vice President; and
                                    ``(III) an employee of the United 
                                States Postal Service or the Postal 
                                Regulatory Commission;
                    ``(B) the term `judicial employee' has the meaning 
                given that term in section 109(8) of the Ethics in 
                Government Act of 1978 (5 U.S.C. App. 109(8)); and
                    ``(C) the term `judicial officer' has the meaning 
                given that term under section 109(10) of the Ethics in 
                Government Act of 1978 (5 U.S.C. App. 109(10)).
            ``(3) Rule of construction.--Nothing in this subsection 
        shall be construed to impair or limit the construction of the 
        existing antifraud provisions of the securities laws or the 
        authority of the Commission under those provisions.''.
SEC. 10. <<NOTE: 5 USC app. 101 note.>> RULE OF CONSTRUCTION.

    Nothing in this Act, the amendments made by this Act, or the 
interpretive guidance to be issued pursuant to sections 3 and 9 of this 
Act, shall be construed to--
            (1) impair or limit the construction of the antifraud 
        provisions of the securities laws or the Commodity Exchange Act 
        or the authority of the Securities and Exchange Commission or 
        the Commodity Futures Trading Commission under those provisions;
            (2) be in derogation of the obligations, duties, and 
        functions of a Member of Congress, an employee of Congress, an 
        executive branch employee, a judicial officer, or a judicial 
        employee, arising from such person's official position; or
            (3) be in derogation of existing laws, regulations, or 
        ethical obligations governing Members of Congress, employees of 
        Congress, executive branch employees, judicial officers, or 
        judicial employees.
SEC. 11. <<NOTE: 5 USC app. 105 note.>> EXECUTIVE BRANCH 
                      REPORTING.

    (a) Executive Branch Reporting.--
            (1) <<NOTE: President. Public information. Web posting.>>  
        In general.--Not later than August 31, 2012, or 90 days after 
        the date of enactment of this Act, whichever is later, the 
        President shall ensure that financial disclosure forms filed 
        pursuant to title I of the Ethics in Government Act of 1978 (5 
        U.S.C. App. 101 et seq.), in calendar year 2012 and in 
        subsequent years, by executive branch employees specified in 
        section 101 of that Act are made available to the public on the 
        official websites of the respective executive branch agencies 
        not later than 30 days after such forms are filed.

[[Page 126 STAT. 299]]

            (2) Extensions.--Notices of extension for financial 
        disclosure shall be made available electronically along with the 
        related disclosure.
            (3) Reporting transactions.--In the case of a transaction 
        disclosure required by section 103(l) of the Ethics in 
        Government Act of 1978, as added by this Act, such disclosure 
        shall be filed not later than the date required by 
        that <<NOTE: Public information.>> section. Notices of extension 
        for transaction disclosure shall be made available 
        electronically under this subsection along with its related 
        disclosure.
            (4) Expiration.--The requirements of this subsection shall 
        expire upon implementation of the public disclosure system 
        established under subsection (b).

    (b) Electronic Filing and Online Public Availability of Financial 
Disclosure Forms of Certain Executive Branch Employees.--
            (1) In general.--Subject <<NOTE: Deadline. President.>> to 
        paragraph (6), and not later than 18 months after the date of 
        enactment of this Act, the President, acting through the 
        Director of the Office of Government Ethics, shall develop 
        systems to enable--
                    (A) electronic filing of reports required by section 
                103 of the Ethics in Government Act of 1978 (5 U.S.C. 
                App. 103), other than subsection (h) of such section; 
                and
                    (B) public access to financial disclosure reports 
                filed by executive branch employees required to file 
                under section 101 of that Act (5 U.S.C. App. 101), as 
                well as reports of a transaction disclosure required by 
                section 103(l) of that Act, as added by this Act, 
                notices of extensions, amendments, and blind trusts, 
                pursuant to title I of that Act, through databases 
                that--
                          (i) are maintained on the official website of 
                      the Office of Government Ethics; and
                          (ii) allow the public to search, sort, and 
                      download data contained in the reports.
            (2) Login.--No login shall be required to search or sort the 
        data contained in the reports made available by this subsection. 
        A login protocol with the name of the user shall be utilized by 
        a person downloading data contained in the reports. For purposes 
        of filings under this section, section 105(b)(2) of the Ethics 
        in Government Act of 1978 (5 U.S.C. App. 105(b)(2)) does not 
        apply.
            (3) Public availability.--Pursuant to section 105(b)(1) of 
        the Ethics in Government Act of 1978 (5 U.S.C. App. 105(b)(1)), 
        electronic availability on the official website of the Office of 
        Government Ethics under this subsection shall be deemed to have 
        met the public availability requirement.
            (4) Filers covered.--Executive branch employees required 
        under title I of the Ethics in Government Act of 1978 to file 
        financial disclosure reports shall file the reports 
        electronically with their supervising ethics office.
            (5) Extensions.--Notices of extension for financial 
        disclosure shall be made available electronically under this 
        subsection along with its related disclosure.
            (6) Additional time.--The requirements of this subsection 
        may be implemented after the date provided in paragraph (1) if 
        the Director of the Office of Government Ethics, after 
        consultation with the Clerk of the House of Representatives

[[Page 126 STAT. 300]]

        and Secretary of the Senate, identifies in writing to relevant 
        congressional committees the additional time needed for such 
        implementation.
SEC. 12. PARTICIPATION IN INITIAL PUBLIC OFFERINGS.

    Section 21A of the Securities Exchange Act of 1934 (15 U.S.C. 78u-
1), as amended by this Act, is further amended by adding at the end the 
following:
    ``(i) Participation in Initial Public Offerings.--An individual 
described in section 101(f) of the Ethics in Government Act of 1978 may 
not purchase securities that are the subject of an initial public 
offering (within the meaning given such term in section 12(f)(1)(G)(i)) 
in any manner other than is available to members of the public 
generally.''.
SEC. 13. REQUIRING MORTGAGE DISCLOSURE.

    (a) Requiring Disclosure.--Section 102(a)(4)(A) of the Ethics in 
Government Act of 1978 (5 U.S.C. App. 102(a)(4)(A)) is amended by 
striking ``spouse; and'' and inserting the following: ``spouse, except 
that this exception shall not apply to a reporting individual--
                          ``(i) described in paragraph (1), (2), or (9) 
                      of section 101(f);
                          ``(ii) described in section 101(b) who has 
                      been nominated for appointment as an officer or 
                      employee in the executive branch described in 
                      subsection (f) of such section, other than--
                                    ``(I) an individual appointed to a 
                                position--
                                            ``(aa) as a Foreign Service 
                                        Officer below the rank of 
                                        ambassador; or
                                            ``(bb) in the uniformed 
                                        services for which the pay grade 
                                        prescribed by section 201 of 
                                        title 37, United States Code is 
                                        O-6 or below; or
                                    ``(II) a special government 
                                employee, as defined under section 202 
                                of title 18, United States Code; or
                          ``(iii) described in section 101(f) who is in 
                      a position in the executive branch the appointment 
                      to which is made by the President and requires 
                      advice and consent of the Senate, other than--
                                    ``(I) an individual appointed to a 
                                position--
                                            ``(aa) as a Foreign Service 
                                        Officer below the rank of 
                                        ambassador; or
                                            ``(bb) in the uniformed 
                                        services for which the pay grade 
                                        prescribed by section 201 of 
                                        title 37, United States Code is 
                                        O-6 or below; or
                                    ``(II) a special government 
                                employee, as defined under section 202 
                                of title 18, United States Code; and''.

    (b) Effective Date.--The <<NOTE: Applicability. 5 USC app. 102 
note.>> amendment made by subsection (a) shall apply with respect to 
reports which are required to be filed under section 101 of the Ethics 
of Government Act of 1978 on or after the date of the enactment of this 
Act.
SEC. 14. <<NOTE: 5 USC app. 103 note.>> TRANSACTION REPORTING 
                      REQUIREMENTS.

    The transaction reporting requirements established by section 103(l) 
of the Ethics in Government Act of 1978, as added by section

[[Page 126 STAT. 301]]

6 of this Act, shall not be construed to apply to 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--
            (1)(A) the fund is publicly traded; or
            (B) the assets of the fund are widely diversified; and
            (2) the reporting individual neither exercises control over 
        nor has the ability to exercise control over the financial 
        interests held by the fund.
SEC. 15. APPLICATION TO OTHER ELECTED OFFICIALS AND CRIMINAL 
                      OFFENSES.

    (a) Application to Other Elected Officials.--
            (1) Civil service retirement system.--Section 8332(o)(2)(A) 
        of title 5, United States Code, is amended--
                    (A) in clause (i), by inserting ``, the President, 
                the Vice President, or an elected official of a State or 
                local government'' after ``Member''; and
                    (B) in clause (ii), by inserting ``, the President, 
                the Vice President, or an elected official of a State or 
                local government'' after ``Member''.
            (2) Federal employees retirement system.--Section 8411(l)(2) 
        of title 5, United States Code, is amended--
                    (A) in subparagraph (A), by inserting ``, the 
                President, the Vice President, or an elected official of 
                a State or local government'' after ``Member''; and
                    (B) in subparagraph (B), by inserting ``, the 
                President, the Vice President, or an elected official of 
                a State or local government'' after ``Member''.

    (b) Criminal Offenses.--Section 8332(o)(2) of title 5, United States 
Code, is amended--
            (1) in subparagraph (A), by striking clause (iii) and 
        inserting the following:
            ``(iii) The offense--
                    ``(I) is committed after the date of enactment of 
                this subsection and--
                          ``(aa) is described under subparagraph (B)(i), 
                      (iv), (xvi), (xix), (xxiii), (xxiv), or (xxvi); or
                          ``(bb) is described under subparagraph 
                      (B)(xxix), (xxx), or (xxxi), but only with respect 
                      to an offense described under subparagraph (B)(i), 
                      (iv), (xvi), (xix), (xxiii), (xxiv), or (xxvi); or
                    ``(II) is committed after the date of enactment of 
                the STOCK Act and--
                          ``(aa) is described under subparagraph 
                      (B)(ii), (iii), (v), (vi), (vii), (viii), (ix), 
                      (x), (xi), (xii), (xiii), (xiv), (xv), (xvii), 
                      (xviii), (xx), (xxi), (xxii), (xxv), (xxvii), or 
                      (xxviii); or
                          ``(bb) is described under subparagraph 
                      (B)(xxix), (xxx), or (xxxi), but only with respect 
                      to an offense described under subparagraph 
                      (B)(ii), (iii), (v), (vi), (vii), (viii), (ix), 
                      (x), (xi), (xii), (xiii), (xiv), (xv), (xvii), 
                      (xviii), (xx), (xxi), (xxii), (xxv), (xxvii), or 
                      (xxviii).''; and
            (2) by striking subparagraph (B) and inserting the 
        following:

    ``(B) An offense described in this subparagraph is only the 
following, and only to the extent that the offense is a felony:

[[Page 126 STAT. 302]]

            ``(i) An offense under section 201 of title 18 (relating to 
        bribery of public officials and witnesses).
            ``(ii) An offense under section 203 of title 18 (relating to 
        compensation to Member of Congress, officers, and others in 
        matters affecting the Government).
            ``(iii) An offense under section 204 of title 18 (relating 
        to practice in the United States Court of Federal Claims or the 
        United States Court of Appeals for the Federal Circuit by Member 
        of Congress).
            ``(iv) An offense under section 219 of title 18 (relating to 
        officers and employees acting as agents of foreign principals).
            ``(v) An offense under section 286 of title 18 (relating to 
        conspiracy to defraud the Government with respect to claims).
            ``(vi) An offense under section 287 of title 18 (relating to 
        false, fictitious or fraudulent claims).
            ``(vii) An offense under section 597 of title 18 (relating 
        to expenditures to influence voting).
            ``(viii) An offense under section 599 of title 18 (relating 
        to promise of appointment by candidate).
            ``(ix) An offense under section 602 of title 18 (relating to 
        solicitation of political contributions).
            ``(x) An offense under section 606 of title 18 (relating to 
        intimidation to secure political contributions).
            ``(xi) An offense under section 607 of title 18 (relating to 
        place of solicitation).
            ``(xii) An offense under section 641 of title 18 (relating 
        to public money, property or records).
            ``(xiii) An offense under section 666 of title 18 (relating 
        to theft or bribery concerning programs receiving Federal 
        funds).
            ``(xiv) An offense under section 1001 of title 18 (relating 
        to statements or entries generally).
            ``(xv) An offense under section 1341 of title 18 (relating 
        to frauds and swindles, including as part of a scheme to deprive 
        citizens of honest services thereby).
            ``(xvi) An offense under section 1343 of title 18 (relating 
        to fraud by wire, radio, or television, including as part of a 
        scheme to deprive citizens of honest services thereby).
            ``(xvii) An offense under section 1503 of title 18 (relating 
        to influencing or injuring officer or juror).
            ``(xviii) An offense under section 1505 of title 18 
        (relating to obstruction of proceedings before departments, 
        agencies, and committees).
            ``(xix) An offense under section 1512 of title 18 (relating 
        to tampering with a witness, victim, or an informant).
            ``(xx) An offense under section 1951 of title 18 (relating 
        to interference with commerce by threats of violence).
            ``(xxi) An offense under section 1952 of title 18 (relating 
        to interstate and foreign travel or transportation in aid of 
        racketeering enterprises).
            ``(xxii) An offense under section 1956 of title 18 (relating 
        to laundering of monetary instruments).
            ``(xxiii) An offense under section 1957 of title 18 
        (relating to engaging in monetary transactions in property 
        derived from specified unlawful activity).
            ``(xxiv) An offense under chapter 96 of title 18 (relating 
        to racketeer influenced and corrupt organizations).

[[Page 126 STAT. 303]]

            ``(xxv) An offense under section 7201 of the Internal 
        Revenue Code of 1986 (relating to attempt to evade or defeat 
        tax).
            ``(xxvi) An offense under section 104(a) of the Foreign 
        Corrupt Practices Act of 1977 (relating to prohibited foreign 
        trade practices by domestic concerns).
            ``(xxvii) An offense under section 10(b) of the Securities 
        Exchange Act of 1934 (relating to fraud, manipulation, or 
        insider trading of securities).
            ``(xxviii) An offense under section 4c(a) of the Commodity 
        Exchange Act (7 U.S.C. 6c(a)) (relating to fraud, manipulation, 
        or insider trading of commodities).
            ``(xxix) An offense under section 371 of title 18 (relating 
        to conspiracy to commit offense or to defraud United States), to 
        the extent of any conspiracy to commit an act which 
        constitutes--
                    ``(I) an offense under clause (i), (ii), (iii), 
                (iv), (v), (vi), (vii), (viii), (ix), (x), (xi), (xii), 
                (xiii), (xiv), (xv), (xvi), (xvii), (xviii), (xix), 
                (xx), (xxi), (xxii), (xxiii), (xxiv), (xxv), (xxvi), 
                (xxvii), or (xxviii); or
                    ``(II) an offense under section 207 of title 18 
                (relating to restrictions on former officers, employees, 
                and elected officials of the executive and legislative 
                branches).
            ``(xxx) Perjury committed under section 1621 of title 18 in 
        falsely denying the commission of an act which constitutes--
                    ``(I) an offense under clause (i), (ii), (iii), 
                (iv), (v), (vi), (vii), (viii), (ix), (x), (xi), (xii), 
                (xiii), (xiv), (xv), (xvi), (xvii), (xviii), (xix), 
                (xx), (xxi), (xxii), (xxiii), (xxiv), (xxv), (xxvi), 
                (xxvii), or (xxviii); or
                    ``(II) an offense under clause (xxix), to the extent 
                provided in such clause.
            ``(xxxi) Subornation of perjury committed under section 1622 
        of title 18 in connection with the false denial or false 
        testimony of another individual as specified in clause (xxx).''.
SEC. 16. <<NOTE: 12 USC 4518a.>> LIMITATION ON BONUSES TO 
                      EXECUTIVES OF FANNIE MAE AND FREDDIE MAC.

    Notwithstanding <<NOTE: Effective date.>> any other provision in 
law, senior executives at the Federal National Mortgage Association and 
the Federal Home Loan Mortgage Corporation are prohibited from receiving 
bonuses during any period of conservatorship for those entities on or 
after the date of enactment of this Act.
SEC. 17. <<NOTE: 5 USC app. 101 note.>> POST-EMPLOYMENT 
                      NEGOTIATION RESTRICTIONS.

    (a) Restriction Extended to Executive and Judicial Branches.--
Notwithstanding <<NOTE: Time period.>> any other provision of law, an 
individual required to file a financial disclosure report under section 
101 of the Ethics in Government Act of 1978 (5 U.S.C. App. 101) may not 
directly negotiate or have any agreement of future employment or 
compensation unless such individual, within 3 business days after the 
commencement of such negotiation or agreement of future employment or 
compensation, files with the individual's supervising ethics office a 
statement, signed by such individual, regarding such negotiations or 
agreement, including the name of the private entity or entities involved 
in such negotiations or agreement, and the date such negotiations or 
agreement commenced.

    (b) Recusal.--An <<NOTE: Notification.>> individual filing a 
statement under subsection (a) shall recuse himself or herself whenever 
there is a

[[Page 126 STAT. 304]]

conflict of interest, or appearance of a conflict of interest, for such 
individual with respect to the subject matter of the statement, and 
shall notify the individual's supervising ethics office of such recusal. 
An individual making such recusal shall, upon such recusal, submit to 
the supervising ethics office the statement under subsection (a) with 
respect to which the recusal was made.
SEC. 18. WRONGFULLY INFLUENCING PRIVATE ENTITIES EMPLOYMENT 
                      DECISIONS BY LEGISLATIVE AND EXECUTIVE 
                      BRANCH OFFICERS AND EMPLOYEES.

    (a) In General.--Section 227 of title 18, United States Code, is 
amended--
            (1) in the heading of such section, by inserting after 
        ``Congress'' the following: ``or an officer or employee of the 
        legislative or executive branch'';
            (2) by striking ``Whoever'' and inserting ``(a) Whoever'';
            (3) by striking ``a Senator or Representative in, or a 
        Delegate or Resident Commissioner to, the Congress or an 
        employee of either House of Congress'' and inserting ``a covered 
        government person''; and
            (4) by adding at the end the following:

    ``(b) In this section, the term `covered government person' means--
            ``(1) a Senator or Representative in, or a Delegate or 
        Resident Commissioner to, the Congress;
            ``(2) an employee of either House of Congress; or
            ``(3) the President, Vice President, an employee of the 
        United States Postal Service or the Postal Regulatory 
        Commission, or any other executive branch employee (as such term 
        is defined under section 2105 of title 5, United States 
        Code).''.

    (b) Clerical Amendment.--The table of contents for chapter 11 of 
title 18, United States Code, is amended by amending the item relating 
to section 227 to read as follows:

``227. Wrongfully influencing a private entity's employment decisions by 
           a Member of Congress or an officer or employee of the 
           legislative or executive branch.''.

SEC. 19. MISCELLANEOUS CONFORMING AMENDMENTS.

    (a) Repeal of Transmission of Copies of Member and Candidate Reports 
to State Election Officials Upon Adoption of New Systems.--Section 
103(i) of the Ethics in Government Act of 1978 (5 U.S.C. App. 103(i)) is 
amended--
            (1) by striking ``(i)'' and inserting ``(i)(1)''; and
            (2) by adding at the end the following new paragraph:

    ``(2) The requirements of paragraph (1) do not apply to any report 
filed under this title which is filed electronically and for which there 
is online public access, in accordance with the systems developed by the 
Secretary and Sergeant at Arms of the Senate and the Clerk of the House 
of Representatives under section 8(b) of the Stop Trading on 
Congressional Knowledge Act of 2012.''.
    (b) Period of Retention of Financial Disclosure Statements of 
Members of the House.--
            (1) In general.--Section 304(c) of the Honest Leadership and 
        Open Government Act of 2007 (2 U.S.C. 104e(c)) is amended by 
        striking the period at the end and inserting the following: ``, 
        or, in the case of reports filed under section 103(h)(1) of the 
        Ethics in Government Act of 1978, until the expiration

[[Page 126 STAT. 305]]

        of the 6-year period which begins on the date the individual is 
        no longer a Member of Congress.''.
            (2) Effective date.--The <<NOTE: Applicability. 2 USC 104e 
        note.>> amendment made by paragraph (1) shall apply with respect 
        to any report which is filed on or after the date on which the 
        systems developed by the Secretary and Sergeant at Arms of the 
        Senate and the Clerk of the House of Representatives under 
        section 8(b) first take effect.

    Approved April 4, 2012.

LEGISLATIVE HISTORY--S. 2038:
---------------------------------------------------------------------------

CONGRESSIONAL RECORD, Vol. 158 (2012):
            Jan. 31, Feb. 1, 2, considered and passed Senate.
            Feb. 9, considered and passed House, amended.
            Mar. 20, 22, House considered and concurred in Senate 
                amendment.
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2012):
            Apr. 4, Presidential remarks.

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