A bill to expand the definition of scheme or artifice to defraud with respect to mail and wire fraud.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Honest Services Restoration Act''.

SEC. 2. AMENDMENT TO TITLE 18.

    (a) In General.--Chapter 63 of title 18, United States Code, is 
amended by inserting after section 1346 the following:
``Sec. 1346A. Definition of `scheme or artifice to defraud'
    ``(a) For purposes of this chapter, the term `scheme or artifice to 
defraud' also includes--
            ``(1) a scheme or artifice by a public official to engage 
        in undisclosed self-dealing; or
            ``(2) a scheme or artifice by officers and directors to 
        engage in undisclosed private self-dealing.
    ``(b)(1) In subsection (a)(1)--
            ``(A) the term `undisclosed self-dealing' means that--
                    ``(i) a public official performs an official act 
                for the purpose, in whole or in part, of benefitting or 
                furthering a financial interest of--
                            ``(I) the public official;
                            ``(II) the public official's spouse or 
                        minor child;
                            ``(III) a general partner of the public 
                        official;
                            ``(IV) a business or organization in which 
                        the public official is serving as an employee, 
                        officer, director, trustee, or general partner;
                            ``(V) an individual, business, or 
                        organization with whom the public official is 
                        negotiating for, or has any arrangement 
                        concerning, prospective employment or financial 
                        compensation; or
                            ``(VI) a person, business, or organization 
                        from whom the public official has received a 
                        thing of value or a series of things of value, 
                        otherwise than as provided by law for the 
                        proper discharge of official duty, or by rule 
                        or regulation; and
                    ``(ii) the public official knowingly falsifies, 
                conceals, or covers up material information that is 
                required to be disclosed regarding that financial 
                interest by any Federal, State, or local statute, rule, 
                regulation, or charter applicable to the public 
                official, or knowingly fails to disclose material 
                information regarding that financial interest in a 
                manner that is required by any Federal, State, or local 
                statute, rule, regulation, or charter applicable to the 
                public official;
            ``(B) the term `public official' means an officer, 
        employee, or elected or appointed representative, or person 
        acting for or on behalf of the United States, a State, or 
        subdivision of a State, or any department, agency, or branch 
        thereof, in any official function, under or by authority of any 
        such department agency or branch of Government;
            ``(C) the term `official act'--
                    ``(i) includes any act within the range of official 
                duty, and any decision, recommendation, or action on 
                any question, matter, cause, suit, proceeding, or 
                controversy, which may at any time be pending, or which 
                may by law be brought before any public official, in 
                such public official's official capacity or in such 
                official's place of trust or profit;
                    ``(ii) can be a single act, more than one act, or a 
                course of conduct; and
                    ``(iii) includes a decision or recommendation that 
                the Government should not take action; and
            ``(D) the term `State' includes a State of the United 
        States, the District of Columbia, and any commonwealth, 
        territory, or possession of the United States.
    ``(2) In subsection (a)(2)--
            ``(A) the term `undisclosed private self-dealing' means 
        that--
                    ``(i) an officer or director performs an act which 
                causes or is intended to cause harm to the officer's or 
                director's employer, and which is undertaken in whole 
                or in part to benefit or further by an actual or 
                intended value of $5,000 or more a financial interest 
                of--
                            ``(I) the officer or director;
                            ``(II) the officer or director's spouse or 
                        minor child;
                            ``(III) a general partner of the officer or 
                        director;
                            ``(IV) another business or organization in 
                        which the public official is serving as an 
                        employee, officer, director, trustee, or 
                        general partner; or
                            ``(V) an individual, business, or 
                        organization with whom the officer or director 
                        is negotiating for, or has any arrangement 
                        concerning, prospective employment or financial 
                        compensation; and
                    ``(ii) the officer or director knowingly falsifies, 
                conceals, or covers up material information that is 
                required to be disclosed regarding that financial 
                interest by any Federal, State, or local statute, rule, 
                regulation, or charter applicable to the officer or 
                director, or knowingly fails to disclose material 
                information regarding that financial interest in a 
                manner that is required by any Federal, State, or local 
                statute, rule, regulation, or charter applicable to the 
                officer or director;
            ``(B) the term `employer' includes publicly traded 
        corporations, and private charities under section 501(c)(3) of 
        the Internal Revenue Code of 1986; and
            ``(C) the term `act' includes a decision or recommendation 
        to take, or not to take action, and can be a single act, more 
        than one act, or a course of conduct.''.
    (b) Chapter Analysis.--The chapter analysis for chapter 63 of title 
18, United States Code, is amended by inserting after the item for 
section 1346 the following:

``Sec. 1346A. Definition of `scheme or artifice to defraud'.''.

Summary: Honest Services Restoration Act - Amends the federal criminal code to expand the definition of "scheme or artifice to defraud," for purposes of fraud offenses, to include: (1) a scheme or artifice by a public official to engage in undisclosed self-dealing; or (2) a scheme or artifice by officers and directors to engage in undisclosed private self-dealing.

Defines "undisclosed self-dealing" to mean: (1) performing an official act to benefit or further a financial interest of the public official, a spouse or minor child, a general partner, a business or organization in which the public official is serving as an employee, officer, director, trustee, or general partner, or an individual, business, or organization with whom the public official is negotiating for, or has any arrangement concerning, prospective employment or financial compensation; and (2) knowingly falsifying, concealing, covering up, or failing to disclose material information regarding a financial interest as required by law.

Defines "undisclosed private self-dealing" to mean: (1) performing an act which causes or is intended to cause harm to the employer of the officer or director and which is undertaken to benefit or further by an actual or intended value of $5,000 or more a financial interest of the officer or director, a spouse or minor child, a general partner, another business or organization in which the officer or director is serving as an employee, officer, director, trustee, or general partner, or an individual, business, or organization with whom the officer or director is negotiating for, or has any arrangement concerning, prospective employment or financial compensation; and (2) knowingly falsifying, concealing, covering up, or failing to disclose material information regarding a financial interest as required by law.