Stop Foreign Payoffs Act
Bill: H.R.5362 | Sponsor: Rep. Golden, Jared F. (D-ME)
Policy area: Government Operations and Politics

Summary:
Stop Foreign Payoffs Act
This bill prohibits certain government officials and their family members from holding foreign financial interests and also requires divestiture of any such interests in a prescribed manner and time frame.
Specifically, the bill prohibits the President, cabinet officials, and Members of Congress from holding any financial interest in, or receiving payment from, a foreign business. Such individuals must divest any such interest by either converting the interest into cash or another investment, or by placing the interest in a qualified blind trust or diversified trust; divestiture must occur no later than 30 days after either the issuance of implementing regulations or after the individual takes office. The bill's requirements apply to the spouses, children, sons-in-law, and daughters-in-law of such individuals.

To amend the Ethics in Government Act of 1978 to require senior 
    Government officials and their family members to divest foreign 
              financial interests, and for other purposes.

    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 ``Stop Foreign Payoffs Act''.

SEC. 2. DIVESTITURE OF FOREIGN FINANCIAL INTERESTS.

    (a) In General.--The Ethics in Government Act of 1978 (5 U.S.C. 
App.) is amended by adding after title V the following:

         ``TITLE VI--LIMITATION ON FOREIGN FINANCIAL INTERESTS

``Sec. 601. Limitation on foreign financial interests
    ``(a) Divestiture.--
            ``(1) In general.--A covered individual may not hold any 
        foreign financial interest, and shall divest of any such 
        interest by--
                    ``(A) converting each such interest to cash or 
                other investment; or
                    ``(B) placing each such interest in a qualified 
                blind trust as defined in section 102(f)(3) or a 
                diversified trust under section 102(f)(4)(B).
            ``(2) Application.--
                    ``(A) Not later than 30 days after the date 
                regulations are promulgated to carry out this section, 
                a covered individual holding any foreign financial 
                interest on such date shall divest of such interest 
                pursuant to paragraph (1).
                    ``(B) Within 30 days that an individual assumes an 
                office described under subparagraph (A), (B), or (C) of 
                subsection (d)(1), such individual, and any applicable 
                individual described under subparagraph (D) of such 
                subsection, shall divest of such interest pursuant to 
                paragraph (1).
    ``(b) Prohibition on Receiving Foreign Payments.--A covered 
individual may not receive any wage, salary, dividend, or any other 
payment from any foreign business.
    ``(c) Enforcement.--
            ``(1) In general.--The Attorney General may bring a civil 
        action in any appropriate United States district court against 
        any individual who knowingly and willfully violates the 
        provisions of this section. The court in which such action is 
        brought may assess against such individual a civil penalty in 
        any amount not to exceed twice the value of any foreign 
        financial interest held, or any unlawfully foreign payment 
        received, in violation of this section.
            ``(2) Negligent violations.--The Attorney General may bring 
        a civil action in any appropriate United States district court 
        against any individual who negligently violates the provisions 
        of this section. The court in which such action is brought may 
        assess against such individual a civil penalty in any amount 
        not to exceed the value of any foreign financial interest held, 
        or any unlawfully foreign payment received, in violation of 
        this section.
    ``(d) Definitions.--In this section--
            ``(1) the term `child' includes a child of any age, an 
        adopted child or recognized natural child, and a stepchild or 
        foster child;
            ``(2) the term `covered individual' means--
                    ``(A) the President;
                    ``(B) a Member of Congress (as that term is defined 
                in section 2106 of title 5, United States Code);
                    ``(C) any cabinet-level position within the 
                executive branch of Government, including the head of 
                any executive department (as that term is defined in 
                section 101 of title 5, United States Code); and
                    ``(D) the spouse, child, or the spouse of a child, 
                of any individual described in subparagraph (A), (B), 
                or (C);
            ``(3) the term `foreign business' means a partnership, 
        association, corporation, organization, or other combination of 
        persons organized under the laws of or having its principal 
        place of business in a foreign country; and
            ``(4) the term `foreign financial interest' means any 
        financial interest in a foreign business, including a stock, 
        ownership interest, bond, or debt, but does not include any 
        financial interest in a foreign private issuer (as that term is 
        defined in section 240.3b-4 of title 17, Code of Federal 
        Regulations, as in effect on the date of enactment of this 
        section) of securities that are publicly traded on United 
        States stock exchanges.''.
    (b) Regulations.--Not later than 120 days after the date of 
enactment of this Act--
            (1) with respect to covered individuals (as that term is 
        described in subsection (d)(1) of section 601 of the Ethics in 
        Government Act of 1978, as added in subsection (a)) in the 
        executive branch (including the Vice President), the Director 
        of the Office of Government Ethics shall promulgate regulations 
        to carry out such section 601; and
            (2) with respect to covered individuals in the legislative 
        branch, the Committee on Ethics of the House of Representatives 
        and the Select Committee on Ethics of the Senate shall 
        promulgate regulations to carry out such section 601.
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