title 18, United States Code, if it occurred within 
one year after the termination of his employment. 
‘‘(b) NO EFFECT ON SECTION 207.—This section 
does not expand, contract, or otherwise affect the applica-
tion of any waiver or criminal penalties under section 207 
of title 18, United States Code. 
‘‘SEC. 702. PROHIBITION ON NEGOTIATION OF FUTURE EM-
PLOYMENT. 
‘‘(a) PROHIBITION.—A covered executive branch offi-
cial shall not participate in any official matter in which, 
to the official’s knowledge, a person or organization with 
whom the official is negotiating or has any arrangement 
concerning prospective employment has a financial inter-
est, unless a waiver has been granted under subsection (b). 
‘‘(b) WAIVERS ONLY WHEN EXCEPTIONAL CIR-
CUMSTANCES EXIST.—A waiver to subsection (a) is not 
available, and shall not be granted, to any individual ex-
cept in a case which the Government official responsible 
for the individual’s appointment as a covered executive 
branch official determines that exceptional circumstances 
exist. Whenever such a determination is made, the Direc-
tor of the Office of Government Ethics shall review the 
circumstances relating to the determination, and the waiv-
er shall not take effect until the date on which the Direc-
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tor certifies in writing that exceptional circumstances 
exist. 
‘‘SEC. 703. COOLING-OFF PERIOD FOR CERTAIN PERSONS 
ENTERING GOVERNMENT SERVICE. 
‘‘(a) IN GENERAL.—A covered executive branch offi-
cial shall not participate in any particular matter involving 
specific parties that would affect the financial interests of 
a covered entity. 
‘‘(b) WAIVER.—An agency’s designated ethics officer 
may waive the prohibition in subsection (a) with respect 
to a covered executive branch official of that agency upon 
a determination that the relationship between the covered 
executive branch official and the covered entity is not so 
substantial as to be deemed likely to affect the integrity 
of the services that the Government may expect from the 
official. Whenever such a determination is made, the Di-
rector of the Office of Government Ethics shall review the 
circumstances relating to the determination, and the waiv-
er shall not take effect until the date on which the Direc-
tor approves the determination in writing. 
‘‘(c) DEFINITION.—In this section, the term ‘covered 
entity’ means an entity— 
‘‘(1) in which the official, within the previous 2 
years, served as an officer, director, trustee, general 
partner, or employee; or 
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‘‘(2) for which the official, within the previous 
2 years, worked as a lobbyist, lawyer, or other rep-
resentative. 
‘‘(d) NO EFFECT ON SECTION 208.—This section 
does not expand, contract, or otherwise affect the applica-
tion of any criminal penalties under section 208 of title 
18, United States Code. 
‘‘SEC. 704. PENALTIES. 
‘‘Whoever violates section 701, 702, or 703 of this 
title shall, upon proof of such knowing violation by a pre-
ponderance of the evidence, be subject to a civil fine of 
not more than $100,000, depending on the extent and 
gravity of the violation. 
‘‘SEC. 705. DEFINITION. 
‘‘In this title, the term ‘covered executive branch offi-
cial’ means— 
‘‘(1) any officer or employee serving in a posi-
tion in level I, II, III, IV, or V of the Executive 
Schedule, as designated by statute or Executive 
order; 
‘‘(2) any member of the uniformed services 
whose pay grade is at or above O–7 under section 
201 of title 37, United States Code; 
‘‘(3) any officer or employee serving in a posi-
tion of a confidential, policy-determining, policy- 
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making, or policy-advocating character described in 
section 7511(b)(2)(B) of title 5, United States Code; 
‘‘(4) any noncareer appointee, as defined by 
section 3132(a)(7) of title 5, United States Code; 
‘‘(5) any officer or employee serving in a posi-
tion of a confidential, policy-determining, policy- 
making, or policy advocating character, or any other 
individual functioning in the capacity of such an of-
ficer or employee, in the Executive Office of the 
President or the Office of the Vice President; and 
‘‘(6) the Vice President.’’. 
SEC. 4. ADDITIONAL PROVISIONS RELATING TO PROCURE-
MENT OFFICIALS. 
(a) ELIMINATION
OF LOOPHOLES THAT ALLOW 
FORMER FEDERAL OFFICIALS TO ACCEPT COMPENSA-
TION FROM CONTRACTORS OR RELATED ENTITIES.—Sec-
tion 27(d) of the Office of Federal Procurement Policy 
Act (41 U.S.C. 423(d)) is amended— 
(1) in paragraph (1)— 
(A) by striking ‘‘or consultant’’ and insert-
ing ‘‘consultant, lawyer, or lobbyist’’; 
(B) by striking ‘‘one year’’ and inserting 
‘‘two years’’; and 
(C) in subparagraph (C), by striking ‘‘per-
sonally made for the Federal agency—’’ and in-
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serting ‘‘participated personally and substan-
tially in—’’; and 
(2) by amending paragraph (2) to read as fol-
lows: 
‘‘(2) Paragraph (1) shall not prohibit a former 
official of a Federal agency from accepting com-
pensation from any division or affiliate of a con-
tractor that does not produce the same or similar 
products or services as the entity of the contractor 
that is responsible for the contract referred to in 
subparagraph (A), (B), or (C) of such paragraph if 
the agency’s designated ethics officer determines 
that— 
‘‘(A) the offer of compensation is not a re-
ward for any action described in paragraph (1); 
and 
‘‘(B) acceptance of the compensation is ap-
propriate and will not affect the integrity of the 
procurement process.’’. 
(b) REQUIREMENT
FOR FEDERAL PROCUREMENT 
OFFICERS TO DISCLOSE JOB OFFERS MADE ON BEHALF 
OF RELATIVES.—Section 27(c)(1) of such Act (41 U.S.C. 
423(c)(1)) is amended by inserting after ‘‘that official’’ 
the following: ‘‘or for a relative of that official (as defined 
in section 3110 of title 5, United States Code),’’. 
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SEC. 5. PROHIBITION ON UNAUTHORIZED EXPENDITURE 
OF FUNDS FOR PUBLICITY OR PROPAGANDA 
PURPOSES. 
(a) PROHIBITION.—Chapter 13 of title 31, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 1355. Prohibition on unauthorized expenditure of 
funds for publicity or propaganda pur-
poses 
‘‘An officer or employee of the United States Govern-
ment may not make or authorize an expenditure or obliga-
tion of funds for publicity or propaganda purposes within 
the United States unless authorized by law.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 13 of such title is amended by adding at the 
end the following new item: 
‘‘1355. Prohibition on unauthorized expenditure of funds for publicity or propa-
ganda purposes.’’. 
SEC. 6. REQUIREMENT FOR DISCLOSURE OF FEDERAL 
SPONSORSHIP 
OF 
ALL 
FEDERAL 
ADVER-
TISING OR OTHER COMMUNICATION MATE-
RIALS. 
(a) REQUIREMENT.—Each advertisement or other 
communication paid for by an Executive agency, either di-
rectly or through a contract awarded by the Executive 
agency, shall include a prominent notice informing the tar-
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get audience that the advertisement or other communica-
tion is paid for by that Executive agency. 
(b) ADVERTISEMENT OR OTHER COMMUNICATION.— 
In this section, the term ‘‘advertisement or other commu-
nication’’ includes— 
(1) an advertisement disseminated in any form, 
including print or by any electronic means; and 
(2) a communication by an individual in any 
form, including speech, print, or by any electronic 
means. 
(c) EXECUTIVE AGENCY.—In this section, the term 
‘‘Executive agency’’ has the meaning provided in section 
105 of title 5, United States Code. 
SEC. 7. ELIMINATION OF ‘‘PSEUDO’’ CLASSIFICATION. 
(a) REPORTS
ON
THE PROLIFERATING USE
OF 
‘‘PSEUDO’’ CLASSIFICATION DESIGNATIONS.— 
(1) REPORT BY FEDERAL AGENCIES.—Not later 
than six months after the date of the enactment of 
this Act, each federal agency shall submit to the Ar-
chivist of the United States and the congressional 
committees described in subsection (d) a report de-
scribing the use of ‘‘pseudo’’ classification designa-
tions. 
(2) MATTERS
COVERED.—Each such agency 
shall report on, at a minimum, the following: 
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(A) The number of ‘‘pseudo’’ classification 
designation policies used by the agency. 
(B) Any existing guidance, instruction, di-
rective, or regulations regarding the agency’s 
use of ‘‘pseudo’’ classification designations. 
(C) The number and level of experience 
and training of Federal agency, office, and con-
tractor personnel authorized to make ‘‘pseudo’’ 
classification designations. 
(D) The cost of placing and maintaining 
information under each ‘‘pseudo’’ classification 
designation. 
(E) The extent to which information 
placed under ‘‘pseudo’’ classification designa-
tions has subsequently been released under sec-
tion 552 of title 5, United States Code (popu-
larly known as the Freedom of Information 
Act). 
(F) The extent to which ‘‘pseudo’’ classi-
fication designations have been used to withhold 
from the public information that is not author-
ized to be withheld by Federal statute, or by an 
Executive order relating to the classification of 
national security information. 
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(G) The statutory provisions described in 
subsection (c). 
(3) REPORT
BY
THE
ARCHIVIST
OF
THE 
UNITED STATES.—Not later than 9 months after the 
date of the enactment of this Act, the Archivist of 
the United States shall issue to the congressional 
committees described in subsection (d) a report on 
the use of ‘‘pseudo’’ classification designations 
across the executive branch that is based on the in-
formation provided by agencies, as well as input 
from the Director of National Intelligence, Federal 
agencies, offices, and contractors. All federal agen-
cies, offices, and contractors shall cooperate fully 
and promptly with all requests by the Archivist in 
the fulfillment of this paragraph. 
(4) NOTICE
AND
COMMENT.—The Archivist 
shall provide notice and an opportunity for public 
comment on the report. 
(b) ELIMINATION
OF ‘‘PSEUDO’’ CLASSIFICATION 
DESIGNATIONS.— 
(1) REGULATIONS.—Not later than 15 months 
after the date of the enactment of this Act, the Ar-
chivist of the United States shall promulgate regula-
tions banning the use of ‘‘pseudo’’ classification des-
ignations. 
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(2) STANDARDS
FOR
INFORMATION
CONTROL 
DESIGNATIONS.—If the Archivist determines that 
there is a need for some agencies to use information 
control designations to safeguard information prior 
to review for disclosure, beyond those designations 
established by statute or by an Executive Order re-
lating to the classification of national security infor-
mation, the regulations under paragraph (1) shall 
establish standards for the use of those designations 
by agencies. Such standards shall address, at a min-
imum, the following issues: 
(A) Standards for utilizing the information 
control designations in a manner that is nar-
rowly tailored to maximize public access to in-
formation. 
(B) Procedures for providing specified 
Federal officials with authority to utilize the in-
formation control designations, including train-
ing and certification requirements. 
(C) Categories of information that may be 
assigned the information control designations. 
(D) The duration of the information con-
trol designations and the process by which they 
will be removed. 
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