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[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 232 Introduced in Senate (IS)]

<DOC>

116th CONGRESS
  1st Session
                                 S. 232

 To amend the Ethics in Government Act of 1978 to require individuals 
nominated or appointed to Senate-confirmed positions or to positions of 
 a confidential or policymaking character to disclose certain types of 
     contributions made or solicited by, or at the request of, the 
                              individuals.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            January 28, 2019

Mr. Whitehouse (for himself, Mr. Carper, Mr. Udall, and Mr. Van Hollen) 
introduced the following bill; which was read twice and referred to the 
        Committee on Homeland Security and Governmental Affairs

_______________________________________________________________________

                                 A BILL

 
 To amend the Ethics in Government Act of 1978 to require individuals 
nominated or appointed to Senate-confirmed positions or to positions of 
 a confidential or policymaking character to disclose certain types of 
     contributions made or solicited by, or at the request of, the 
                              individuals.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Conflicts from Political Fundraising 
Act of 2019''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Public confidence in the Federal Government is based on 
        the expectation that officers and employees will discharge 
        their duties impartially, and avoid either actual conflicts of 
        interest or the appearance thereof.
            (2) The risk of an actual conflict of interest, or the 
        appearance thereof, arises when a nominee or appointee to a 
        Senate-confirmed position or an individual in a position of a 
        confidential or policymaking character has previously donated 
        to, solicited for, or received funds from a political action 
        committee or entity organized under section 501(c)(4) or 
        section 501(c)(6) of the Internal Revenue Code of 1986.
            (3) Since the 2010 decision by the Supreme Court of the 
        United States in Citizens United v. Federal Election 
        Commission, spending by corporations subject to Federal laws 
        and regulations has increased dramatically.
            (4) While some corporate political spending is done 
        publicly, contributions to entities organized under section 
        501(c)(4) of the Internal Revenue Code of 1986 need not be 
        disclosed, making this spending effectively anonymous. The risk 
        of an actual conflict of interest, or the appearance thereof, 
        arises whether political spending is public or anonymous.
            (5) Current financial disclosure requirements do not 
        require filers to report funds they have donated to, solicited 
        for, or received from political action committees or entities 
        organized under section 501(c)(4) or section 501(c)(6) of the 
        Internal Revenue Code of 1986.
            (6) Apparent or actual conflicts of interest are best 
        ameliorated through public disclosure of this activity to the 
        Office of Government Ethics so the apparent or actual conflicts 
        can be addressed in ethics agreements negotiated between the 
        filer and the agency in which the filer will serve.

SEC. 3. DISCLOSURE OF CERTAIN TYPES OF CONTRIBUTIONS.

    (a) Definitions.--Section 109 of the Ethics in Government Act of 
1978 (5 U.S.C. App.) is amended--
            (1) by redesignating paragraphs (2) through (19) as 
        paragraphs (5) through (22), respectively; and
            (2) by inserting after paragraph (1) the following:
            ``(2) `covered contribution' means a payment, advance, 
        forbearance, rendering, or deposit of money, or any thing of 
        value--
                    ``(A)(i) that--
                            ``(I) is--
                                    ``(aa) made by or at the request of 
                                a covered individual; or
                                    ``(bb) solicited in writing by or 
                                at the request of a covered individual; 
                                and
                            ``(II) is made--
                                    ``(aa) to a political organization, 
                                as defined in section 527 of the 
                                Internal Revenue Code of 1986; or
                                    ``(bb) to an organization--
                                            ``(AA) that is described in 
                                        paragraph (4) or (6) of section 
                                        501(c) of the Internal Revenue 
                                        Code of 1986 and exempt from 
                                        tax under section 501(a) of 
                                        such Code; and
                                            ``(BB) that promotes or 
                                        opposes changes in Federal laws 
                                        or regulations that are (or 
                                        would be) administered by the 
                                        agency in which the covered 
                                        individual has been nominated 
                                        for appointment to a covered 
                                        position or is serving in a 
                                        covered position; or
                    ``(ii) that is--
                            ``(I) solicited in writing by or at the 
                        request of a covered individual; and
                            ``(II) made--
                                    ``(aa) by an individual or entity 
                                the activities of which are subject to 
                                Federal laws or regulations that are 
                                (or would be) administered by the 
                                agency in which the covered individual 
                                has been nominated for appointment to a 
                                covered position or is serving in a 
                                covered position; and
                                    ``(bb) to--
                                            ``(AA) a political 
                                        organization, as defined in 
                                        section 527 of the Internal 
                                        Revenue Code of 1986; or
                                            ``(BB) an organization that 
                                        is described in paragraph (4) 
                                        or (6) of section 501(c) of the 
                                        Internal Revenue Code of 1986 
                                        and exempt from tax under 
                                        section 501(a) of such Code; 
                                        and
                    ``(B) that is made to an organization described in 
                item (aa) or (bb) of clause (i)(II) or clause 
                (ii)(II)(bb) of subparagraph (A) for which the total 
                amount of such payments, advances, forbearances, 
                renderings, or deposits of money, or any thing of 
                value, during the calendar year in which it is made is 
                not less than the contribution limitation in effect 
                under section 315(a)(1)(A) of the Federal Election 
                Campaign Act of 1971 (52 U.S.C. 30116(a)(1)(A)) for 
                elections occurring during such calendar year;
            ``(3) `covered individual' means an individual who has been 
        nominated or appointed to a covered position; and
            ``(4) `covered position'--
                    ``(A) means--
                            ``(i) a position described under sections 
                        5312 through 5316 of title 5, United States 
                        Code;
                            ``(ii) a position placed in level IV or V 
                        of the Executive Schedule under section 5317 of 
                        title 5, United States Code;
                            ``(iii) a position as a limited term 
                        appointee, limited emergency appointee, or 
                        noncareer appointee in the Senior Executive 
                        Service, as defined under paragraphs (5), (6), 
                        and (7), respectively, of section 3132(a) of 
                        title 5, United States Code; or
                            ``(iv) a position in the executive branch 
                        of the Government of a confidential or policy-
                        determining character under schedule C of 
                        subpart C of part 213 of title 5 of the Code of 
                        Federal Regulations; and
                    ``(B) does not include a position if the individual 
                serving in the position has been excluded from the 
                application of section 101(f)(5);''.
    (b) Disclosure Requirements.--The Ethics in Government Act of 1978 
(5 U.S.C. App.) is amended--
            (1) in section 101--
                    (A) in subsection (a)--
                            (i) by inserting ``(1)'' before ``Within'';
                            (ii) by striking ``unless'' and inserting 
                        ``and, if the individual is assuming a covered 
                        position, the information described in section 
                        102(j), except that, subject to paragraph (2), 
                        the individual shall not be required to file a 
                        report if''; and
                            (iii) by adding at the end the following:
    ``(2) If an individual has left a position described in subsection 
(f) that is not a covered position and, within 30 days, assumes a 
position that is a covered position, the individual shall, within 30 
days of assuming the covered position, file a report containing the 
information described in section 102(j)(2)(A).'';
                    (B) in subsection (b)(1), in the first sentence, by 
                inserting ``and the information required by section 
                102(j)'' after ``described in section 102(b)'';
                    (C) in subsection (d), by inserting ``and, if the 
                individual is serving in a covered position, the 
                information required by section 102(j)(2)(A)'' after 
                ``described in section 102(a)''; and
                    (D) in subsection (e), by inserting ``and, if the 
                individual was serving in a covered position, the 
                information required by section 102(j)(2)(A)'' after 
                ``described in section 102(a)''; and
            (2) in section 102--
                    (A) in subsection (g), by striking ``Political 
                campaign funds'' and inserting ``Except as provided in 
                subsection (j), political campaign funds''; and
                    (B) by adding at the end the following:
    ``(j)(1) In this subsection--
            ``(A) the term `applicable period' means--
                    ``(i) with respect to a report filed pursuant to 
                subsection (a) or (b) of section 101, the year of 
                filing and the 4 calendar years preceding the year of 
                the filing; and
                    ``(ii) with respect to a report filed pursuant to 
                subsection (d) or (e) of section 101, the preceding 
                calendar year; and
            ``(B) the term `covered gift' means a gift that--
                    ``(i) is made to a covered individual, the spouse 
                of a covered individual, or the dependent child of a 
                covered individual;
                    ``(ii) is made by an entity described in item (aa) 
                or (bb) of section 109(2)(A)(i)(II); and
                    ``(iii) would have been required to be reported 
                under subsection (a)(2) if the covered individual had 
                been required to file a report under section 101(d) 
                with respect to the calendar year during which the gift 
                was made.
    ``(2)(A) A report filed pursuant to subsection (a), (b), (d), or 
(e) of section 101 by a covered individual shall include, for each 
covered contribution made by or at the request of, or that was 
solicited in writing by or at the request of, that covered individual 
during the applicable period--
            ``(i) the date on which the covered contribution was made;
            ``(ii) if applicable, the date or dates on which the 
        covered contribution was solicited;
            ``(iii) the value of the covered contribution;
            ``(iv) the name of the person making the covered 
        contribution; and
            ``(v) the name of the person receiving the covered 
        contribution.
    ``(B)(i) Subject to clause (ii), a covered contribution made by or 
at the request of, or that was solicited in writing by or at the 
request of, a covered individual shall constitute a conflict of 
interest, or an appearance thereof, with respect to the official duties 
of the covered individual.
    ``(ii) The Director of the Office of Government Ethics may exempt a 
covered contribution from the application of clause (i) if the Director 
determines the circumstances of the solicitation and making of the 
covered contribution do not present a risk of a conflict of interest 
and the exemption of the covered contribution would not affect 
adversely the integrity of the Government or the public's confidence in 
the integrity of the Government.
    ``(3) A report filed pursuant to subsection (a) or (b) of section 
101 by a covered individual shall include the information described in 
subsection (a)(2) with respect to each covered gift received during the 
applicable period.''.
    (c) Provision of Reports and Ethics Agreements to Congress.--
Section 105 of the Ethics in Government Act of 1978 (5 U.S.C. App.) is 
amended by adding at the end the following:
    ``(e) Not later than 30 days after receiving a written request from 
the Chairman or Ranking Member of a committee or subcommittee of either 
House of Congress, the Director of the Office of Government Ethics 
shall provide to the Chairman and Ranking Member each report filed 
under this title by a covered individual and any ethics agreement 
entered into between the agency and the covered individual.''.
    (d) Rules on Ethics Agreements.--The Director of the Office of 
Government Ethics shall promptly issue rules regarding how an agency in 
the executive branch shall address information required to be disclosed 
under the amendments made by this Act in drafting ethics agreements 
between the agency and individuals appointed to positions in the 
agency.
    (e) Technical and Conforming Amendments.--
            (1) The Ethics in Government Act of 1978 (5 U.S.C. App.) is 
        amended--
                    (A) in section 101(f)--
                            (i) in paragraph (9), by striking ``section 
                        109(12)'' and inserting ``section 109(15)'';
                            (ii) in paragraph (10), by striking 
                        ``section 109(13)'' and inserting ``section 
                        109(16)'';
                            (iii) in paragraph (11), by striking 
                        ``section 109(10)'' and inserting ``section 
                        109(13)''; and
                            (iv) in paragraph (12), by striking 
                        ``section 109(8)'' and inserting ``section 
                        109(11)'';
                    (B) in section 103(l)--
                            (i) in paragraph (9), by striking ``section 
                        109(12)'' and inserting ``section 109(15)''; 
                        and
                            (ii) in paragraph (10), by striking 
                        ``section 109(13)'' and inserting ``section 
                        109(16)''; and
                    (C) in section 105(b)(3)(A), by striking ``section 
                109(8) or 109(10)'' and inserting ``section 109(11) or 
                109(13)''.
            (2) Section 3(4)(D) of the Lobbying Disclosure Act of 1995 
        (2 U.S.C. 1602(4)(D)) is amended by striking ``section 
        109(13)'' and inserting ``section 109(16)''.
            (3) Section 21A of the Securities Exchange Act of 1934 (15 
        U.S.C. 78u-1) is amended--
                    (A) in subsection (g)(2)(B)(ii), by striking 
                ``section 109(11) of the Ethics in Government Act of 
                1978 (5 U.S.C. App. 109(11)))'' and inserting ``section 
                109 of the Ethics in Government Act of 1978 (5 U.S.C. 
                App.))''; and
                    (B) in subsection (h)(2)--
                            (i) in subparagraph (B), by striking 
                        ``section 109(8) of the Ethics in Government 
                        Act of 1978 (5 U.S.C. App. 109(8))'' and 
                        inserting ``section 109 of the Ethics in 
                        Government Act of 1978 (5 U.S.C. App.)''; and
                            (ii) in subparagraph (C), by striking 
                        ``section 109(10) of the Ethics in Government 
                        Act of 1978 (5 U.S.C. App. 109(10))'' and 
                        inserting ``section 109 of the Ethics in 
                        Government Act of 1978 (5 U.S.C. App.)''.
            (4) Section 499(j)(2) of the Public Health Service Act (42 
        U.S.C. 290b(j)(2)) is amended by striking ``section 109(16) of 
        the Ethics in Government Act of 1978'' and inserting ``section 
        109 of the Ethics in Government Act of 1978 (5 U.S.C. App.)''.
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