II 

116TH CONGRESS 

1ST SESSION S. 156 

To prevent conflicts of interest that stem from executive branch employees 

receiving bonuses or other compensation arrangements from non-Government sources, from the revolving door that raises concerns about the 

independence of executive branch employees, and from the revolving 

door that casts aspersions over the awarding of Government contracts 

and other financial benefits. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 16, 2019 

Ms. BALDWIN introduced the following bill; which was read twice and referred 

to the Committee on Homeland Security and Governmental Affairs 

A BILL 

To prevent conflicts of interest that stem from executive 

branch employees receiving bonuses or other compensation arrangements from non-Government sources, from 

the revolving door that raises concerns about the independence of executive branch employees, and from the 

revolving door that casts aspersions over the awarding 

of Government contracts and other financial benefits. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Executive Branch Con3 flict of Interest Act’’. 

4 SEC. 2. RESTRICTIONS ON PRIVATE SECTOR PAYMENT FOR 

5 GOVERNMENT SERVICE. 

6 Section 209 of title 18, United States Code, is 

7 amended— 

8 (1) in subsection (a)— 

9 (A) by striking ‘‘any salary’’ and inserting 

10 ‘‘any bonus or salary’’; and 

11 (B) by striking ‘‘his services’’ and inserting 

12 ‘‘services rendered or to be rendered’’; and 

13 (2) in subsection (b)— 

14 (A) by inserting ‘‘(1)’’ after ‘‘(b)’’; and 

15 (B) by adding at the end the following: 

16 ‘‘(2) For purposes of paragraph (1), a pension, retire17 ment, group life, health or accident insurance, profit-shar18 ing, stock bonus, or other employee welfare or benefit plan 

19 that makes payment of compensation contingent on ac20 cepting a position in the Federal Government shall not 

21 be considered bona fide. 

22 ‘‘(3) For purposes of paragraph (2), compensation in23 cludes a retention award or bonus, severance pay, and any 

24 other payment linked to future service in the Federal Gov25 ernment in any way.’’. 


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1 SEC. 3. REQUIREMENTS RELATING TO SLOWING THE RE2 VOLVING DOOR AMONG CERTAIN EXECUTIVE 

3 BRANCH EMPLOYEES. 

4 (a) IN GENERAL.—The Ethics in Government Act of 

5 1978 (5 U.S.C. App.) is amended by adding at the end 

6 the following: 

7 ‘‘TITLE VI—SPECIAL REQUIRE8 MENTS FOR CERTAIN EXECU9 TIVE BRANCH EMPLOYEES 

10 ‘‘SEC. 601. DEFINITIONS. 

11 ‘‘(a) IN GENERAL.—In this title, the terms ‘des12 ignated agency ethics official’ and ‘executive branch’ have 

13 the meanings given those terms under section 109. 

14 ‘‘(b) OTHER DEFINITIONS.—In this title: 

15 ‘‘(1) COVERED AGENCY.—The term ‘covered 

16 agency’— 

17 ‘‘(A) means— 

18 ‘‘(i) an Executive agency; 

19 ‘‘(ii) the Postal Service; and 

20 ‘‘(iii) the Postal Rate Commission; 

21 ‘‘(B) includes the Executive Office of the 

22 President; and 

23 ‘‘(C) does not include the Government Ac24 countability Office or the government of the 

25 District of Columbia. 


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1 ‘‘(2) COVERED EMPLOYEE.—The term ‘covered 

2 employee’ means an officer or employee described in 

3 section 207(c)(2) of title 18, United States Code. 

4 ‘‘(3) DIRECTOR.—The term ‘Director’ means 

5 the Director of the Office of Government Ethics. 

6 ‘‘(4) EXECUTIVE AGENCY.—The term ‘Execu7 tive agency’ has the meaning given the term in sec8 tion 105 of title 5, United States Code. 

9 ‘‘(5) FORMER CLIENT.—The term ‘former cli10 ent’— 

11 ‘‘(A) means a person for whom a covered 

12 employee served personally as an agent, attor13 ney, or consultant during the 2-year period end14 ing on the date (after such service) on which 

15 the covered employee begins service in the Fed16 eral Government; and 

17 ‘‘(B) does not include— 

18 ‘‘(i) a person for whom a covered em19 ployee served as described in subparagraph 

20 (A) if the service provided was limited to 

21 a speech or similar appearance; or 

22 ‘‘(ii) a client of the former employer 

23 of the covered employee to whom the cov24 ered employee did not personally provide 

25 services described in subparagraph (A). 


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1 ‘‘(6) FORMER EMPLOYER.—The term ‘former 

2 employer’— 

3 ‘‘(A) means a person for whom a covered 

4 employee served as an employee, officer, direc5 tor, trustee, or general partner during the 2- 

6 year period ending on the date (after such serv7 ice) on which the covered employee begins serv8 ice in the Federal Government; and 

9 ‘‘(B) does not include— 

10 ‘‘(i) an entity in the Federal Govern11 ment, including an Executive agency; 

12 ‘‘(ii) a State or local government; or 

13 ‘‘(iii) an Indian tribe, as defined in 

14 section 4 of the Indian Self-Determination 

15 and Education Assistance Act (25 U.S.C. 

16 5304). 

17 ‘‘(7) STATE.—The term ‘State’ has the mean18 ing given the term in section 3 of the Lobbying Dis19 closure Act of 1995 (2 U.S.C. 1602). 

20 ‘‘SEC. 602. CONFLICT OF INTEREST AND ELIGIBILITY 

21 STANDARDS FOR COVERED EMPLOYEES. 

22 ‘‘(a) IN GENERAL.—A covered employee shall not 

23 make, participate in making, or in any way attempt to 

24 use the official position of the covered employee to influ25 ence a particular matter that provides a direct and subVerDate Sep 11 2014 23:13 Jan 25, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S156.IS S156

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1 stantial pecuniary benefit for a former employer or former 

2 client of the covered employee. 

3 ‘‘(b) RECUSAL.—A covered employee shall recuse 

4 himself or herself from any official action that would vio5 late subsection (a). 

6 ‘‘(c) WAIVER.— 

7 ‘‘(1) IN GENERAL.—The head of the covered 

8 agency employing a covered employee, in consulta9 tion with the Director, may grant a written waiver 

10 of the restrictions under subsection (a) if, and to the 

11 extent that, the head of the covered agency certifies 

12 in writing that— 

13 ‘‘(A) the application of the restriction to 

14 the particular matter is inconsistent with the 

15 purposes of the restriction; or 

16 ‘‘(B) it is in the public interest to grant 

17 the waiver. 

18 ‘‘(2) PUBLICATION.—The Director shall make 

19 each waiver granted under paragraph (1) publicly 

20 available on the website of the Office of Government 

21 Ethics. 

22 ‘‘SEC. 603. NEGOTIATING FUTURE PRIVATE SECTOR EM23 PLOYMENT. 

24 ‘‘(a) PROHIBITION.—Except as provided in sub25 section (c), and notwithstanding any other provision of 


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1 law, a covered employee may not participate in any par2 ticular matter that involves, to the knowledge of the cov3 ered employee, an individual or entity with whom the cov4 ered employee is in negotiations of future employment or 

5 has an arrangement concerning prospective employment. 

6 ‘‘(b) DISCLOSURE OF EMPLOYMENT NEGOTIA7 TIONS.— 

8 ‘‘(1) IN GENERAL.—If a covered employee be9 gins any negotiations of future employment with an10 other individual or entity, or an agent or inter11 mediary of another individual or entity, or other dis12 cussion or communication with another individual or 

13 entity, or an agent or intermediary of another indi14 vidual or entity, mutually conducted with a view to15 ward reaching an agreement regarding possible em16 ployment of the covered employee, the covered em17 ployee shall notify the designated agency ethics offi18 cial of the covered agency employing the covered em19 ployee regarding the negotiations, discussions, or 

20 communications. 

21 ‘‘(2) INFORMATION.—A designated agency eth22 ics official receiving notice under paragraph (1), 

23 after consultation with the Director, shall inform the 

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1 munications with the other individual or entity and 

2 the applicable prohibitions. 

3 ‘‘(c) WAIVERS ONLY WHEN EXCEPTIONAL CIR4 CUMSTANCES EXIST.— 

5 ‘‘(1) IN GENERAL.—The head of a covered 

6 agency may only grant a waiver of the prohibition 

7 under subsection (a) if— 

8 ‘‘(A) the head of the covered agency deter9 mines that exceptional circumstances exist; and 

10 ‘‘(B) the Director reviews the cir11 cumstances relating to the waiver and the de12 termination of the head of the covered agency 

13 under subparagraph (A) and determines that 

14 exceptional circumstances exist. 

15 ‘‘(2) PUBLICATION.—For any waiver granted 

16 under paragraph (1), the Director shall make pub17 licly available on the website of the Office of Govern18 ment Ethics the waiver, which shall include— 

19 ‘‘(A) the name of each private individual or 

20 entity involved in the negotiations or arrange21 ment concerning prospective employment; and 

22 ‘‘(B) the date on which the negotiations or 

23 arrangements commenced. 

24 ‘‘(d) SCOPE.—For purposes of this section, the term 

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1 cussions of specific terms or conditions of employment in 

2 a specific position. 

3 ‘‘SEC. 604. RECORDKEEPING. 

4 ‘‘The Director shall— 

5 ‘‘(1) receive all employment histories, recusal 

6 and waiver records, and other disclosure records for 

7 covered employees necessary for monitoring compli8 ance with this title; 

9 ‘‘(2) not later than 180 days after the date of 

10 enactment of this title and in consultation with the 

11 Director of the Office of Personnel Management and 

12 the Attorney General, promulgate rules and regula13 tions to implement this title; 

14 ‘‘(3) when appropriate, provide guidance and 

15 assistance to facilitate compliance with this title; 

16 ‘‘(4) review advice provided by designated agen17 cy ethics officials, and, when necessary, assist des18 ignated agency ethics officials in providing advice, to 

19 covered employees regarding compliance with this 

20 title; and 

21 ‘‘(5) if the Director determines that a violation 

22 of this title may have occurred, the Director shall, 

23 in consultation with the designated agency ethics of24 ficial of the covered agency employing the covered 

25 employee alleged to have violated this title and the 


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1 Counsel to the President, refer the compliance case 

2 to the United States Attorney for the District of Co3 lumbia for enforcement action. 

4 ‘‘SEC. 605. PENALTIES AND INJUNCTIONS. 

5 ‘‘(a) CRIMINAL PENALTIES.— 

6 ‘‘(1) IN GENERAL.—Any person who violates 

7 section 602 or 603 shall be fined under title 18, 

8 United States Code, imprisoned for not more than 

9 1 year, or both. 

10 ‘‘(2) WILLFUL VIOLATIONS.—Any person who 

11 willfully violates section 602 or 603 shall be fined 

12 under title 18, United States Code, imprisoned for 

13 not more than 5 years, or both. 

14 ‘‘(b) CIVIL ENFORCEMENT.— 

15 ‘‘(1) IN GENERAL.—The Attorney General may 

16 bring a civil action in an appropriate district court 

17 of the United States against any person who vio18 lates, or whom the Attorney General has reason to 

19 believe is engaging in conduct that violates, section 

20 602 or 603. 

21 ‘‘(2) CIVIL PENALTY.— 

22 ‘‘(A) IN GENERAL.—Upon proof by a pre23 ponderance of the evidence that a person vio24 lated section 602 or 603, the court shall impose 


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1 a civil penalty of not more than the greater 

2 of— 

3 ‘‘(i) $100,000 for each violation; or 

4 ‘‘(ii) the amount of compensation the 

5 person received or was offered for the con6 duct constituting the violation. 

7 ‘‘(B) RULE OF CONSTRUCTION.—A civil 

8 penalty under this subsection shall be in addi9 tion to any other criminal or civil statutory, 

10 common law, or administrative remedy available 

11 to the United States or any other person. 

12 ‘‘(3) INJUNCTIVE RELIEF.— 

13 ‘‘(A) IN GENERAL.—In a civil action 

14 brought under paragraph (1) against a person, 

15 the Attorney General may petition the court for 

16 an order prohibiting the person from engaging 

17 in conduct that violates section 602 or 603. 

18 ‘‘(B) STANDARD.—The court may issue an 

19 order under subparagraph (A) if the court finds 

20 by a preponderance of the evidence that the 

21 conduct of the person violates section 602 or 

22 603. 

23 ‘‘(C) RULE OF CONSTRUCTION.—The filing 

24 of a petition seeking injunctive relief under this 

25 paragraph shall not preclude any other remedy 


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1 that is available by law to the United States or 

2 any other person.’’. 

3 SEC. 4. PROHIBITION OF PROCUREMENT OFFICERS AC4 CEPTING EMPLOYMENT FROM GOVERNMENT 

5 CONTRACTORS. 

6 (a) EXPANSION OF PROHIBITION ON ACCEPTANCE

7 BY FORMER OFFICIALS OF COMPENSATION FROM CON8 TRACTORS.—Section 2104 of title 41, United States Code, 

9 is amended— 

10 (1) in subsection (a)— 

11 (A) in the matter preceding paragraph 

12 (1)— 

13 (i) by striking ‘‘or consultant’’ and in14 serting ‘‘consultant, lawyer, or lobbyist’’; 

15 and 

16 (ii) by striking ‘‘one year’’ and insert17 ing ‘‘2 years’’; and 

18 (B) in paragraph (3), in the matter pre19 ceding subparagraph (A), by striking ‘‘person20 ally made for the Federal agency’’ and inserting 

21 ‘‘participated personally and substantially in’’; 

22 and 

23 (2) by striking subsection (b) and inserting the 

24 following: 


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1 ‘‘(b) PROHIBITION ON COMPENSATION FROM AFFILI2 ATES AND SUBCONTRACTORS.—A former official of a Fed3 eral agency responsible for a Government contract re4 ferred to in paragraph (1), (2), or (3) of subsection (a) 

5 may not accept compensation from any division, affiliate, 

6 or subcontractor of the contractor during the 2-year pe7 riod beginning on the last date on which the former official 

8 was employed by the Federal agency.’’. 

9 (b) REQUIREMENT FOR PROCUREMENT OFFICERS

10 TO DISCLOSE JOB OFFERS MADE ON BEHALF OF REL11 ATIVES.—Section 2103(a) of title 41, United States Code, 

12 is amended in the matter preceding paragraph (1) by in13 serting after ‘‘that official’’ the following: ‘‘, or for a rel14 ative (as defined in section 3110 of title 5) of that offi15 cial,’’. 

16 (c) REQUIREMENT ON AWARD OF GOVERNMENT

17 CONTRACTS TO FORMER EMPLOYERS.— 

18 (1) IN GENERAL.—Chapter 21 of title 41, 

19 United States Code, is amended— 

20 (A) by redesignating section 2107 as sec21 tion 2108; and 

22 (B) by inserting after section 2106 the fol23 lowing: 


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1 ‘‘§ 2107. Prohibition on involvement by certain 

2 former contractor employees in procure3 ments 

4 ‘‘An employee of the Federal Government may not 

5 be personally and substantially involved with any award 

6 of a contract to, or the administration of a contract award7 ed to, a contractor that is a former employer of the em8 ployee during the 2-year period beginning on the date on 

9 which the employee leaves the employment of the con10 tractor.’’. 

11 (2) TECHNICAL AND CONFORMING AMEND12 MENT.—The table of sections for chapter 21 of title 

13 41, United States Code, is amended by striking the 

14 item relating to section 2107 and inserting the fol15 lowing: 

‘‘2107. Prohibition on involvement by certain former contractor employees in 

procurements. 

‘‘2108. Savings provisions.’’. 

16 (d) REGULATIONS.—The Administrator for Federal 

17 Procurement Policy and the Director of the Office of Man18 agement and Budget shall, with respect to chapter 21 of 

19 title 41, United States Code, as amended by this section— 

20 (1) not later than 180 days after the date of 

21 enactment of this Act and in consultation with the 

22 Director of the Office of Personnel Management and 

23 the Counsel to the President, promulgate regulations 


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1 to carry out and ensure the enforcement of that 

2 chapter; and 

3 (2) in consultation with designated agency eth4 ics officials (as defined in section 601 of the Ethics 

5 in Government Act of 1978 (5 U.S.C. App.), as 

6 added by section 3 of this Act), monitor compliance 

7 with that chapter by individuals and agencies. 

8 SEC. 5. REVOLVING DOOR RESTRICTIONS ON CERTAIN 

9 COVERED EMPLOYEES MOVING INTO THE 

10 PRIVATE SECTOR. 

11 (a) IN GENERAL.—Section 207 of title 18, United 

12 States Code, is amended— 

13 (1) by redesignating subsections (e) through (l) 

14 as subsections (f) through (m), respectively; and 

15 (2) by inserting after subsection (d) the fol16 lowing: 

17 ‘‘(e) RESTRICTIONS ON EMPLOYMENT FOR COVERED

18 EMPLOYEES.— 

19 ‘‘(1) DEFINITIONS.—In this subsection— 

20 ‘‘(A) the term ‘covered employee’ has the 

21 meaning given the term in section 601 of the 

22 Ethics in Government Act of 1978 (5 U.S.C. 

23 App.); and 

24 ‘‘(B) the terms ‘lobbying activities’ and 

25 ‘lobbyist’ have the meanings given those terms 


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1 in section 3 of the Lobbying Disclosure Act of 

2 1995 (2 U.S.C. 1602). 

3 ‘‘(2) IN GENERAL.—In addition to the restric4 tions set forth in subsections (a), (b), (c), and (d), 

5 an individual who is a covered employee shall not— 

6 ‘‘(A) during the 2-year period beginning on 

7 the date on which the employment of the indi8 vidual as a covered employee ceases— 

9 ‘‘(i) knowingly act as agent or attor10 ney for, or otherwise represent, any other 

11 person (except the United States) for com12 pensation in any formal or informal ap13 pearance before; 

14 ‘‘(ii) with the intent to influence, 

15 make any oral or written communication 

16 on behalf of any other person (except the 

17 United States) to; or 

18 ‘‘(iii) knowingly aid, advise, or assist 

19 in— 

20 ‘‘(I) representing any other per21 son (except the United States) in any 

22 formal or informal appearance before; 

23 or 

24 ‘‘(II) making, with the intent to 

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1 nication on behalf of any other person 

2 (except the United States) to, 

3 any court of the United States, or any officer 

4 or employee thereof, in connection with any ju5 dicial or other proceeding that was actually 

6 pending under the official responsibility of the 

7 individual as a covered employee during the 1- 

8 year period ending on the date on which the 

9 employment of the individual as a covered em10 ployee ceases or in which the individual partici11 pated personally and substantially as a covered 

12 employee; or 

13 ‘‘(B) during the 2-year period beginning on 

14 the date on which the employment of the indi15 vidual as a covered employee ceases— 

16 ‘‘(i) knowingly act as a lobbyist or 

17 agent for, or otherwise represent, any 

18 other person (except the United States) for 

19 compensation in any formal or informal 

20 appearance before; 

21 ‘‘(ii) with the intent to influence, 

22 make any oral or written communication 

23 or conduct any lobbying activities on behalf 

24 of any other person (except the United 

25 States) to; or 


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1 ‘‘(iii) knowingly aid, advise, or assist 

2 in— 

3 ‘‘(I) representing any other per4 son (except the United States) in any 

5 formal or informal appearance before; 

6 or 

7 ‘‘(II) making, with the intent to 

8 influence, any oral or written commu9 nication or conduct any lobbying ac10 tivities on behalf of any other person 

11 (except the United States) to, 

12 any department or agency of the executive 

13 branch or Congress (including any committee of 

14 Congress), or any officer or employee thereof, 

15 in connection with any matter that is pending 

16 before the department, the agency, or Congress. 

17 ‘‘(3) PENALTY.—Any person who violates para18 graph (2) shall be punished as provided in section 

19 216.’’. 

20 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

21 (1) HONEST LEADERSHIP AND OPEN GOVERN22 MENT ACT OF 2007.—Section 103(a) of the Honest 

23 Leadership and Open Government Act of 2007 (2 

24 U.S.C. 4702(a)) is amended by striking ‘‘section 


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1 207(e)’’ each place it appears and inserting ‘‘section 

2 207(f)’’. 

3 (2) INTERNAL REVENUE CODE OF 1986.—Sec4 tion 7802(b)(3)(B) of the Internal Revenue Code of 

5 1986 is amended by striking ‘‘and (f) of section 

6 207’’ and inserting ‘‘and (g) of section 207’’. 

7 (3) TITLE 18, UNITED STATES CODE.—Section 

8 207 of title 18, United States Code, as amended by 

9 subsection (a), is amended— 

10 (A) in subsection (g), as so redesignated, 

11 by striking ‘‘or (e)’’ and inserting ‘‘or (f)’’; 

12 (B) in subsection (j)(1)(B), as so redesig13 nated, by striking ‘‘subsection (f)’’ and insert14 ing ‘‘subsection (g)’’; and 

15 (C) in subsection (k), as so redesignated— 

16 (i) in paragraph (1)(B), by striking 

17 ‘‘(25 U.S.C. 450i(j))’’ and inserting ‘‘(25 

18 U.S.C. 5323(j))’’; 

19 (ii) in paragraph (2), in the matter 

20 preceding subparagraph (A), by striking 

21 ‘‘and (e)’’ and inserting ‘‘(e), and (f)’’; 

22 (iii) in paragraph (4), by striking 

23 ‘‘and (e)’’ and inserting ‘‘(e), and (f)’’; and 

24 (iv) in paragraph (7)— 


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1 (I) in subparagraph (A), by strik2 ing ‘‘and (e)’’ and inserting ‘‘(e), and 

3 (f)’’; and 

4 (II) in subparagraph (B)(ii), in 

5 the matter preceding subclause (I), by 

6 striking ‘‘subsections (c), (d), or (e)’’ 

7 and inserting ‘‘subsection (c), (d), (e), 

8 or (f)’’. 

9 (4) TITLE 49, UNITED STATES CODE.—Section 

10 106(p)(6)(I)(ii) of title 49, United States Code, is 

11 amended by striking ‘‘and (f) of section 207’’ and 

12 inserting ‘‘and (g) of section 207’’. 

13 (5) TRADE ACT OF 1974.—Section 141(b)(4) of 

14 the Trade Act of 1974 (19 U.S.C. 2171(b)(4)) is 

15 amended by striking ‘‘section 207(f)(3)’’ and insert16 ing ‘‘207(g)(3)’’. 

17 (6) USEC PRIVATIZATION ACT.—Section 

18 3105(c) of the USEC Privatization Act (42 U.S.C. 

19 2297h–3(c)) is amended by striking ‘‘and (d)’’ and 

20 inserting ‘‘(d), and (e)’’. 

21 SEC. 6. RESTRICTIONS ON FEDERAL EXAMINERS AND SU22 PERVISORS OF FINANCIAL INSTITUTIONS. 

23 (a) IN GENERAL.—Section 10(k) of the Federal De24 posit Insurance Act (12 U.S.C. 1820(k)) is amended— 

25 (1) in the subsection heading— 


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1 (A) by striking ‘‘ONE-YEAR’’ and inserting 

2 ‘‘TWO-YEAR’’; and 

3 (B) by striking ‘‘EXAMINERS’’ and insert4 ing ‘‘EXAMINERS AND SUPERVISORS’’; 

5 (2) in paragraph (1)— 

6 (A) by striking subparagraph (B) and in7 serting the following: 

8 ‘‘(B) served— 

9 ‘‘(i) not less than 2 months during the 

10 final 12 months of the employment of the 

11 person with that agency or entity as the 

12 senior examiner (or a functionally equiva13 lent position) of a depository institution or 

14 depository institution holding company 

15 with continuing, broad responsibility for 

16 the examination (or inspection) of that de17 pository institution or depository institu18 tion holding company on behalf of the rel19 evant agency or Federal reserve bank; or 

20 ‘‘(ii) as a supervisor of the senior ex21 aminer with responsibility for managing 

22 the oversight of not more than 5 deposi23 tory institutions or depository institution 

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1 evant agency or Federal reserve bank; 

2 and’’; and 

3 (B) in subparagraph (C)— 

4 (i) in the matter preceding clause (i), 

5 by striking ‘‘1 year’’ and inserting ‘‘2 

6 years’’; 

7 (ii) in clause (i)— 

8 (I) by striking ‘‘other company’’ 

9 and inserting ‘‘other company, firm, 

10 or association’’; and 

11 (II) by striking ‘‘or’’ at the end; 

12 (iii) in clause (ii), by striking the pe13 riod at the end and inserting ‘‘; or’’; and 

14 (iv) by adding at the end the fol15 lowing: 

16 ‘‘(iii) a business entity, firm, or asso17 ciation that represents the depository insti18 tution or depository institution holding 

19 company for compensation.’’; 

20 (3) by redesignating paragraphs (2) through 

21 (6) as paragraphs (3) through (7), respectively; 

22 (4) by inserting after paragraph (1) the fol23 lowing: 

24 ‘‘(2) APPLICATION OF PENALTIES FOR SUPER25 VISORS.—A supervisor of a covered financial services 


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1 regulator, or a supervisor of a senior examiner de2 scribed in paragraph (1)(B)(i), shall be subject to 

3 the penalties described in paragraph (7) if the su4 pervisor knowingly accepts compensation during the 

5 2-year period beginning on the date on which the 

6 service of the supervisor is terminated— 

7 ‘‘(A) as— 

8 ‘‘(i) an employee; 

9 ‘‘(ii) an officer; 

10 ‘‘(iii) a director; or 

11 ‘‘(iv) a consultant; and 

12 ‘‘(B) from— 

13 ‘‘(i) a depository institution; 

14 ‘‘(ii) a depository institution holding 

15 company that is designated by the Finan16 cial Stability Oversight Council as a sys17 temically important financial market utility 

18 under section 804 of the Payment, Clear19 ing, and Settlement Supervision Act of 

20 2010 (12 U.S.C. 5463); or 

21 ‘‘(iii) a business entity, firm, or asso22 ciation that represents an institution de23 scribed in clause (ii) for compensation.’’; 

24 (5) in paragraph (3), as so redesignated— 


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1 (A) by redesignating subparagraphs (A) 

2 and (B) as subparagraphs (C) and (D), respec3 tively; and 

4 (B) by inserting before subparagraph (C), 

5 as so redesignated, the following: 

6 ‘‘(A) the term ‘covered financial services 

7 agency’— 

8 ‘‘(i) means a primary financial regu9 latory agency (as defined in section 2 of 

10 the Dodd-Frank Wall Street Reform and 

11 Consumer Protection Act (12 U.S.C. 

12 5301)); and 

13 ‘‘(ii) includes— 

14 ‘‘(I) the Board of Governors of 

15 the Federal Reserve System; 

16 ‘‘(II) the Office of the Comp17 troller of the Currency; 

18 ‘‘(III) the Federal Deposit Insur19 ance Corporation; 

20 ‘‘(IV) the National Credit Union 

21 Administration; 

22 ‘‘(V) the Securities and Ex23 change Commission; 

24 ‘‘(VI) the Federal Housing Fi25 nance Agency; 


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•S 156 IS

1 ‘‘(VII) the Bureau of Consumer 

2 Financial Protection; 

3 ‘‘(VIII) the Commodity Futures 

4 Trading Commission; 

5 ‘‘(IX) the Department of the 

6 Treasury; 

7 ‘‘(X) the National Economic 

8 Council; and 

9 ‘‘(XI) the Council of Economic 

10 Advisers; 

11 ‘‘(B) the term ‘covered financial services 

12 regulator’ means an officer or employee of a 

13 covered financial services agency who occu14 pies— 

15 ‘‘(i) a supervisory position classified 

16 above GS–15 of the General Schedule; 

17 ‘‘(ii) in the case of a position not 

18 under the General Schedule, a supervisory 

19 position for which the rate of basic pay is 

20 not less than 120 percent of the minimum 

21 rate of basic pay for GS–15 of the General 

22 Schedule; or 

23 ‘‘(iii) any other supervisory position 

24 determined to be of equal classification as 

25 a position described in clause (i) by the DiVerDate Sep 11 2014 23:13 Jan 25, 2019 Jkt 089200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\S156.IS S156

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•S 156 IS

1 rector of the Office of Government Eth2 ics;’’; 

3 (6) in paragraph (4), as so redesignated, by 

4 striking ‘‘or other company’’ each place it appears 

5 and inserting ‘‘or other company, firm, or associa6 tion’’; and 

7 (7) in paragraph (7), as so redesignated— 

8 (A) in subparagraph (A)— 

9 (i) in the matter preceding clause (i), 

10 by striking ‘‘other company’’ and inserting 

11 ‘‘other company, firm, or association’’; and 

12 (ii) in clause (i)(I), by striking ‘‘other 

13 company’’ and inserting ‘‘other company, 

14 firm, or association’’; and 

15 (B) in subparagraph (C), by striking ‘‘a 

16 company’’ and inserting ‘‘a company, firm, or 

17 association’’. 

18 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

19 Section 10(k) of the Federal Deposit Insurance Act (12 

20 U.S.C. 1820(k)) is amended— 

21 (1) in paragraph (1), in the matter preceding 

22 subparagraph (A), by striking ‘‘paragraph (6)’’ and 

23 inserting ‘‘paragraph (7)’’; 


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1 (2) in paragraph (5)(A), as so redesignated, by 

2 striking ‘‘paragraph (1)(B)’’ and inserting ‘‘para3 graphs (1)(B) and (2)’’; and 

4 (3) in paragraph (7), as so redesignated— 

5 (A) in subparagraph (A)— 

6 (i) by striking ‘‘subject to paragraph 

7 (1)’’ and inserting ‘‘subject to paragraph 

8 (1) or (2)’’; and 

9 (ii) by striking ‘‘paragraph (1)(C)’’ 

10 and inserting ‘‘paragraph (1)(C) or (2)’’; 

11 and 

12 (B) in subparagraph (C)— 

13 (i) by striking ‘‘person described in 

14 paragraph (1)’’ and inserting ‘‘person de15 scribed in paragraph (1) or (2)’’; and 

16 (ii) by striking ‘‘the functions de17 scribed in paragraph (1)(B)’’ and inserting 

18 ‘‘the functions or duties described in para19 graph (1)(B) or (2)’’. 

20 SEC. 7. SEVERABILITY. 

21 If any provision of this Act or any amendment made 

22 by this Act, or any application of such provision or amend23 ment to any person or circumstance, is held to be uncon24 stitutional, the remainder of the provisions of this Act and 

25 the amendments made by this Act and the application of 


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•S 156 IS

1 the provision or amendment to any other person or cir2 cumstance shall not be affected. 

Æ 


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