Title: Financial Services Conflict of Interest Act
Policy area: Government Operations and Politics

Summary:
Financial Services Conflict of Interest Act
This bill amends the Ethics in Government Act of 1978 and other laws to:

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 265 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  1st Session
                                 S. 265

 To prevent conflicts of interest that stem from executive Government 
  employees receiving bonuses or other compensation arrangements from 
  nongovernment sources, from the revolving door that raises concerns 
 about the independence of financial services regulators, 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

                            February 1, 2017

 Ms. Baldwin (for herself, Ms. Warren, Mr. Blumenthal, Mr. Schatz, Mr. 
 Van Hollen, and Mr. Merkley) 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 Government 
  employees receiving bonuses or other compensation arrangements from 
  nongovernment sources, from the revolving door that raises concerns 
 about the independence of financial services regulators, and from the 
 revolving door that casts aspersions over the awarding of Government 
                contracts and other financial benefits.

    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 ``Financial Services Conflict of 
Interest Act''.

SEC. 2. RESTRICTIONS ON PRIVATE SECTOR PAYMENT FOR GOVERNMENT SERVICE.

    Section 209 of title 18, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by striking ``any salary'' and inserting ``any 
                bonus or salary''; and
                    (B) by striking ``his services'' and inserting 
                ``services rendered or to be rendered''; and
            (2) in subsection (b)--
                    (A) by inserting ``(1)'' after ``(b)''; and
                    (B) by adding at the end the following:
    ``(2) For purposes of paragraph (1), a pension, retirement, group 
life, health or accident insurance, profit-sharing, stock bonus, or 
other employee welfare or benefit plan that makes payment of 
compensation contingent on accepting a position in the Federal 
Government shall not be considered bona fide.
    ``(3) For purposes of paragraph (2), compensation includes a 
retention award or bonus, severance pay, and any other payment linked 
to future service in the Federal Government in any way.''.

SEC. 3. REQUIREMENTS RELATING TO SLOWING THE REVOLVING DOOR AMONG 
              FINANCIAL SERVICES REGULATORS.

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

   ``TITLE VI--SPECIAL REQUIREMENTS FOR FINANCIAL SERVICES REGULATORS

``SEC. 601. DEFINITIONS.

    ``(a) In General.--In this title, the terms `designated agency 
ethics official' and `executive branch' have the meanings given those 
terms under section 109.
    ``(b) Other Definitions.--In this title:
            ``(1) Covered financial services agency.--The term `covered 
        financial services agency'--
                    ``(A) means a primary financial regulatory agency 
                (as defined in section 2 of the Dodd-Frank Wall Street 
                Reform and Consumer Protection Act (12 U.S.C. 5301)); 
                and
                    ``(B) includes--
                            ``(i) the Board of Governors of the Federal 
                        Reserve System;
                            ``(ii) the Office of the Comptroller of the 
                        Currency;
                            ``(iii) the Federal Deposit Insurance 
                        Corporation;
                            ``(iv) the National Credit Union 
                        Administration;
                            ``(v) the Securities and Exchange 
                        Commission;
                            ``(vi) the Federal Housing Finance Agency;
                            ``(vii) the Bureau of Consumer Financial 
                        Protection;
                            ``(viii) the Commodity Futures Trading 
                        Commission;
                            ``(ix) the Department of the Treasury;
                            ``(x) the National Economic Council; and
                            ``(xi) the Council of Economic Advisors.
            ``(2) Covered financial services regulator.--The term 
        `covered financial services regulator' means an officer or 
        employee of a covered financial services agency who occupies--
                    ``(A) a supervisory position classified above GS-15 
                of the General Schedule;
                    ``(B) in the case of a position not under the 
                General Schedule, a supervisory position for which the 
                rate of basic pay is not less than 120 percent of the 
                minimum rate of basic pay for GS-15 of the General 
                Schedule; or
                    ``(C) any other supervisory position determined to 
                be of equal classification by the Director.
            ``(3) Director.--The term `Director' means the Director of 
        the Office of Government Ethics.
            ``(4) Former client.--The term `former client'--
                    ``(A) means a person for whom a covered financial 
                services regulator served personally as an agent, 
                attorney, or consultant during the 2-year period ending 
                on the date (after such service) on which the covered 
                financial services regulator begins service in the 
                Federal Government; and
                    ``(B) does not include--
                            ``(i) instances in which the service 
                        provided was limited to a speech or similar 
                        appearance; or
                            ``(ii) a client of the former employer of 
                        the covered financial services regulator to 
                        whom the covered financial services regulator 
                        did not personally provide such services.
            ``(5) Former employer.--The term `former employer'--
                    ``(A) means a person for whom a covered financial 
                services regulator served as an employee, officer, 
                director, trustee, or general partner during the 2-year 
                period ending on the date (after such service) on which 
                the covered financial services regulator begins service 
                in the Federal Government; and
                    ``(B) does not include--
                            ``(i) an entity in the Federal Government, 
                        including an executive branch agency;
                            ``(ii) a State or local government;
                            ``(iii) the District of Columbia;
                            ``(iv) an Indian tribe, as defined in 
                        section 4 of the Indian Self-Determination and 
                        Education Assistance Act (25 U.S.C. 5304); or
                            ``(v) the government of a territory or 
                        possession of the United States.

``SEC. 602. CONFLICT OF INTEREST AND ELIGIBILITY STANDARDS FOR 
              FINANCIAL SERVICES REGULATORS.

    ``(a) In General.--A covered financial services regulator shall not 
make, participate in making, or in any way attempt to use the official 
position of the covered financial services regulator to influence a 
particular matter that provides a direct and substantial pecuniary 
benefit for a former employer or former client of the covered financial 
services regulator.
    ``(b) Recusal.--A covered financial services regulator shall recuse 
himself or herself from any official action that would violate 
subsection (a).
    ``(c) Waiver.--
            ``(1) In general.--The head of the covered financial 
        services agency employing a covered financial services 
        regulator, in consultation with the Director, may grant a 
        written waiver of the restrictions under subsection (a) if, and 
        to the extent that, the head of the covered financial services 
        agency certifies in writing that--
                    ``(A) the application of the restriction to the 
                particular matter is inconsistent with the purposes of 
                the restriction; or
                    ``(B) it is in the public interest to grant the 
                waiver.
            ``(2) Publication.--The Director shall make each waiver 
        under paragraph (1) publicly available on the Web site of the 
        Office of Government Ethics.

``SEC. 603. NEGOTIATING FUTURE PRIVATE SECTOR EMPLOYMENT.

    ``(a) Prohibition.--Except as provided in subsection (c), and 
notwithstanding any other provision of law, a covered financial 
services regulator may not participate in any particular matter which 
involves, to the knowledge of the covered financial services regulator, 
an individual or entity with whom the covered financial services 
regulator is in negotiations of future employment or has an arrangement 
concerning prospective employment.
    ``(b) Disclosure of Employment Negotiations.--
            ``(1) In general.--If a covered financial services 
        regulator begins any negotiations of future employment with 
        another person, or an agent or intermediary of another person, 
        or other discussion or communication with another person, or an 
        agent or intermediary of another person, mutually conducted 
        with a view toward reaching an agreement regarding possible 
        employment of the covered financial services regulator, the 
        covered financial services regulator shall notify the 
        designated agency ethics official of the covered financial 
        services agency employing the covered financial services 
        regulator regarding the negotiations, discussions, or 
        communications.
            ``(2) Information.--A designated agency ethics official 
        receiving notice under paragraph (1), after consultation with 
        the Director, shall inform the covered financial services 
        regulator of any potential conflicts of interest involved in 
        any negotiations, discussions, or communications with the other 
        person and the applicable prohibitions.
    ``(c) Waivers Only When Exceptional Circumstances Exist.--
            ``(1) In general.--The head of a covered financial services 
        agency may only grant a waiver of the prohibition under 
        subsection (a) if the head determines that exceptional 
        circumstances exist.
            ``(2) Review and publication.--For any waiver granted under 
        paragraph (1), the Director shall--
                    ``(A) review the circumstances relating to the 
                waiver and the determination that exceptional 
                circumstances exist; and
                    ``(B) make the waiver publicly available on the Web 
                site of the Office of Government Ethics, which shall 
                include--
                            ``(i) the name of the private person or 
                        persons involved in the negotiations or 
                        arrangement concerning prospective employment; 
                        and
                            ``(ii) the date on which the negotiations 
                        or arrangements commenced.
    ``(d) Scope.--For purposes of this section, the term `negotiations 
of future employment' is not limited to discussions of specific terms 
or conditions of employment in a specific position.

``SEC. 604. RECORDKEEPING.

    ``The Director shall--
            ``(1) receive all employment histories, recusal and waiver 
        records, and other disclosure records for covered executive 
        branch officials necessary for monitoring compliance with this 
        title;
            ``(2) promulgate rules and regulations, in consultation 
        with the Director of the Office of Personnel Management and the 
        Attorney General, to implement this title;
            ``(3) provide guidance and assistance where appropriate to 
        facilitate compliance with this title;
            ``(4) review and, where necessary, assist designated agency 
        ethics officials in providing advice to covered financial 
        services regulators regarding compliance with this title; and
            ``(5) if the Director determines that a violation of this 
        title may have occurred, and in consultation with the 
        designated agency ethics official and the Counsel to the 
        President, refer the compliance case to the United States 
        Attorney for the District of Columbia for enforcement action.

``SEC. 605. PENALTIES AND INJUNCTIONS.

    ``(a) Criminal Penalties.--
            ``(1) In general.--Any person who violates section 602 or 
        603 shall be fined under title 18, United States Code, 
        imprisoned for not more than 1 year, or both.
            ``(2) Willful violations.--Any person who willfully 
        violates section 602 or 603 shall be fined under title 18, 
        United States Code, imprisoned for not more than 5 years, or 
        both.
    ``(b) Civil Enforcement.--
            ``(1) In general.--The Attorney General may bring a civil 
        action in an appropriate district court of the United States 
        against any person who violates, or whom the Attorney General 
        has reason to believe is engaging in conduct that violates, 
        section 602 or 603.
            ``(2) Civil penalty.--
                    ``(A) In general.--Upon proof by a preponderance of 
                the evidence that a person violated section 602 or 603, 
                the court shall impose a civil penalty of not more than 
                the greater of--
                            ``(i) $100,000 for each violation; or
                            ``(ii) the amount of compensation the 
                        person received or was offered for the conduct 
                        constituting the violation.
                    ``(B) Rule of construction.--A civil penalty under 
                this subsection shall be in addition to any other 
                criminal or civil statutory, common law, or 
                administrative remedy available to the United States or 
                any other person.
            ``(3) Injunctive relief.--
                    ``(A) In general.--In a civil action brought under 
                paragraph (1) against a person, the Attorney General 
                may petition the court for an order prohibiting the 
                person from engaging in conduct that violates section 
                602 or 603.
                    ``(B) Standard.--The court may issue an order under 
                subparagraph (A) if the court finds by a preponderance 
                of the evidence that the conduct of the person violates 
                section 602 or 603.
                    ``(C) Rule of construction.--The filing of a 
                petition seeking injunctive relief under this paragraph 
                shall not preclude any other remedy that is available 
                by law to the United States or any other person.''.

SEC. 4. PROHIBITION OF PROCUREMENT OFFICERS ACCEPTING EMPLOYMENT FROM 
              GOVERNMENT CONTRACTORS.

    (a) Expansion of Prohibition on Acceptance by Former Officials of 
Compensation From Contractors.--Section 2104 of title 41, United States 
Code, is amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1)--
                            (i) by striking ``or consultant'' and 
                        inserting ``consultant, lawyer, or lobbyist''; 
                        and
                            (ii) by striking ``one year'' and inserting 
                        ``2 years''; and
                    (B) in paragraph (3), by striking ``personally made 
                for the Federal agency'' and inserting ``participated 
                personally and substantially in''; and
            (2) by striking subsection (b) and inserting the following:
    ``(b) Prohibition on Compensation From Affiliates and 
Subcontractors.--A former official responsible for a Government 
contract referred to in paragraph (1), (2), or (3) of subsection (a) 
may not accept compensation for 2 years after awarding the contract 
from any division, affiliate, or subcontractor of the contractor.''.
    (b) Requirement for Procurement Officers To Disclose Job Offers 
Made on Behalf of Relatives.--Section 2103(a) of title 41, United 
States Code, is amended in the matter preceding paragraph (1) by 
inserting after ``that official'' the following: ``, or for a relative 
(as defined in section 3110 of title 5) of that official,''.
    (c) Requirement on Award of Government Contracts to Former 
Employers.--
            (1) In general.--Chapter 21 of title 41, United States 
        Code, is amended by adding at the end the following:
``Sec. 2108. Prohibition on involvement by certain former contractor 
              employees in procurements
    ``An employee of the Federal Government may not be personally and 
substantially involved with any award of a contract to, or the 
administration of a contract awarded to, a contractor that is a former 
employer of the employee during the 2-year period beginning on the date 
on which the employee leaves the employment of the contractor.''.
            (2) Technical and conforming amendment.--The table of 
        sections for chapter 21 of title 41, United States Code, is 
        amended by adding at the end the following:

``2108. Prohibition on involvement by certain former contractor 
                            employees in procurements.''.
    (d) Regulations.--The Administrator for Federal Procurement Policy 
and the Director of the Office of Management and Budget shall--
            (1) in consultation with the Director of the Office of 
        Personnel Management and the Counsel to the President, 
        promulgate regulations to carry out and ensure the enforcement 
        of chapter 21 of title 41, United States Code, as amended by 
        this section; and
            (2) in consultation with designated agency ethics officials 
        (as defined under section 601 of the Ethics in Government Act 
        of 1978 (5 U.S.C. App.), as added by section 3), monitor 
        compliance with that chapter by individuals and agencies.

SEC. 5. REVOLVING DOOR RESTRICTIONS ON FINANCIAL SERVICES REGULATORS 
              MOVING INTO THE PRIVATE SECTOR.

    (a) In General.--Section 207 of title 18, United States Code, is 
amended--
            (1) by redesignating subsections (e) through (l) as 
        subsections (f) through (m), respectively; and
            (2) by inserting after subsection (d) the following:
    ``(e) Restrictions on Employment for Financial Services 
Regulators.--
            ``(1) In general.--In addition to the restrictions set 
        forth in subsections (a), (b), (c), and (d), a covered 
        financial services regulator shall not--
                    ``(A) during the 2-year period beginning on the 
                date on which his or her employment as a covered 
                financial services regulator ceases--
                            ``(i) knowingly act as agent or attorney 
                        for, or otherwise represent, any other person 
                        for compensation (except the United States) in 
                        any formal or informal appearance before;
                            ``(ii) with the intent to influence, make 
                        any oral or written communication on behalf of 
                        any other person (except the United States) to; 
                        or
                            ``(iii) knowingly aid, advise, or assist 
                        in--
                                    ``(I) representing any other person 
                                (except the United States) in any 
                                formal or informal appearance before; 
                                or
                                    ``(II) making, with the intent to 
                                influence, any oral or written 
                                communication on behalf of any other 
                                person (except the United States) to,
                any court of the United States, or any officer or 
                employee thereof, in connection with any judicial or 
                other proceeding, that was actually pending under his 
                or her official responsibility as a covered financial 
                services regulator during the 1-year period ending on 
                the date on which his or her employment as a covered 
                financial services regulator ceases or in which he or 
                she participated personally and substantially as a 
                covered financial services regulator; or
                    ``(B) during the 2-year period beginning on the 
                date on which his or her employment as a covered 
                financial services regulator ceases--
                            ``(i) knowingly act as a lobbyist or agent 
                        for, or otherwise represent, any other person 
                        for compensation (except the United States) in 
                        any formal or informal appearance before;
                            ``(ii) with the intent to influence, make 
                        any oral or written communication or conduct 
                        any lobbying activities on behalf of any other 
                        person (except the United States) to; or
                            ``(iii) knowingly aid, advise, or assist 
                        in--
                                    ``(I) representing any other person 
                                (except the United States) in any 
                                formal or informal appearance before; 
                                or
                                    ``(II) making, with the intent to 
                                influence, any oral or written 
                                communication or conduct any lobbying 
                                activities on behalf of any other 
                                person (except the United States) to,
                any department or agency of the executive branch or 
                Congress (including any committee of Congress), or any 
                officer or employee thereof, in connection with any 
                matter that is pending before the department, the 
                agency, or Congress.
            ``(2) Penalty.--Any person who violates paragraph (1) shall 
        be punished as provided in section 216.
            ``(3) Definitions.--In this subsection--
                    ``(A) the term `covered financial services 
                regulator' has the meaning given that term in section 
                601 of the Ethics in Government Act of 1978 (5 U.S.C. 
                App.); and
                    ``(B) the terms `lobbying activities' and 
                `lobbyist' have the meanings given those terms in 
                section 3 of the Lobbying Disclosure Act of 1995 (2 
                U.S.C. 1602).''.
    (b) Technical and Conforming Amendments.--
            (1) Section 103(a) of the Honest Leadership and Open 
        Government Act of 2007 (2 U.S.C. 4702(a)) is amended by 
        striking ``section 207(e)'' each place it appears and inserting 
        ``section 207(f)''.
            (2) Section 207 of title 18, United States Code, as amended 
        by subsection (a), is amended--
                    (A) in subsection (g), as so redesignated, by 
                striking ``or (e)'' and inserting ``or (f)'';
                    (B) in subsection (j)(1)(B), as so redesignated, by 
                striking ``subsection (f)'' and inserting ``subsection 
                (g)''; and
                    (C) in subsection (k), as so redesignated--
                            (i) in paragraph (1)(B), by striking ``(25 
                        U.S.C. 450i(j))'' and inserting ``(25 U.S.C. 
                        5323(j))'';
                            (ii) in paragraph (2), in the matter 
                        preceding subparagraph (A), by striking ``and 
                        (e)'' and inserting ``(e), and (f)'';
                            (iii) in paragraph (4), by striking ``and 
                        (e)'' and inserting ``(e), and (f)''; and
                            (iv) in paragraph (7)--
                                    (I) in subparagraph (A), by 
                                striking ``and (e)'' and inserting 
                                ``(e), and (f)''; and
                                    (II) in subparagraph (B)(ii), in 
                                the matter preceding subclause (I), by 
                                striking ``subsections (c), (d), or 
                                (e)'' and inserting ``subsection (c), 
                                (d), (e), or (f)''.
            (3) Section 141(b)(4) of the Trade Act of 1974 (19 U.S.C. 
        2171(b)(4)) is amended by striking ``section 207(f)(3)'' and 
        inserting ``207(g)(3)''.
            (4) Section 7802(b)(3)(B) of the Internal Revenue Code of 
        1986 is amended by striking ``and (f) of section 207'' and 
        inserting ``and (g) of section 207''.
            (5) Section 3105(c) of the USEC Privatization Act (42 
        U.S.C. 2297h-3(c)) is amended by striking ``and (d)'' and 
        inserting ``and (e)''.
            (6) Section 106(p)(6)(I)(ii) of title 49, United States 
        Code, is amended by striking ``and (f) of section 207'' and 
        inserting ``and (g) of section 207''.

SEC. 6. RESTRICTIONS ON FEDERAL EXAMINERS AND SUPERVISORS OF FINANCIAL 
              INSTITUTIONS.

    (a) In General.--Section 10(k) of the Federal Deposit Insurance Act 
(12 U.S.C. 1820(k)) is amended--
            (1) in the subsection heading--
                    (A) by striking ``One-Year'' and inserting ``Two-
                Year''; and
                    (B) by striking ``Examiners'' and inserting 
                ``Examiners and Supervisors'';
            (2) in paragraph (1)--
                    (A) by striking subparagraph (B) and inserting the 
                following:
                    ``(B) served--
                            ``(i) not less than 2 months during the 
                        final 12 months of the employment of the person 
                        with that agency or entity as the senior 
                        examiner (or a functionally equivalent 
                        position) of a depository institution or 
                        depository institution holding company with 
                        continuing, broad responsibility for the 
                        examination (or inspection) of that depository 
                        institution or depository institution holding 
                        company on behalf of the relevant agency or 
                        Federal reserve bank; or
                            ``(ii) as a supervisor of the senior 
                        examiner with responsibility for managing the 
                        oversight of not more than 5 depository 
                        institutions or depository institution holding 
                        companies on behalf of the relevant agency or 
                        Federal reserve bank; and''; and
                    (B) in subparagraph (C)--
                            (i) in the matter preceding clause (i), by 
                        striking ``1 year'' and inserting ``2 years'';
                            (ii) in clause (i)--
                                    (I) by striking ``other company'' 
                                and inserting ``other company, firm, or 
                                association''; and
                                    (II) by striking ``or'' at the end;
                            (iii) in clause (ii), by striking the 
                        period at the end and inserting ``; or''; and
                            (iv) by adding at the end the following:
                            ``(iii) a business entity, firm, or 
                        association that represents the depository 
                        institution or depository institution holding 
                        company for compensation.'';
            (3) by redesignating paragraphs (2) through (6) as 
        paragraphs (3) through (7), respectively;
            (4) by inserting after paragraph (1) the following:
            ``(2) Application of penalties for supervisors.--A 
        supervisor of a covered financial services regulator, or a 
        supervisor of a senior examiner described in paragraph 
        (1)(B)(i), shall be subject to the penalties described in 
        paragraph (7) if the supervisor knowingly accepts compensation 
        during the 2-year period beginning on the date on which the 
        service of the supervisor is terminated--
                    ``(A) as--
                            ``(i) an employee;
                            ``(ii) an officer;
                            ``(iii) a director; or
                            ``(iv) a consultant; and
                    ``(B) from--
                            ``(i) a depository institution;
                            ``(ii) a depository institution holding 
                        company that is designated by the Financial 
                        Stability Oversight Council as a systemically 
                        important financial market utility under 
                        section 804 of the Payment, Clearing, and 
                        Settlement Supervision Act of 2010 (12 U.S.C. 
                        5463); or
                            ``(iii) a business entity, firm, or 
                        association that represents an institution 
                        described in clause (ii) for compensation.'';
            (5) in paragraph (3), as so redesignated--
                    (A) by redesignating subparagraphs (A) and (B) as 
                subparagraphs (B) and (C), respectively; and
                    (B) by inserting before subparagraph (B), as so 
                redesignated, the following:
                    ``(A) the term `covered financial services 
                regulator' has the meaning given the term in section 
                601 of the Ethics in Government Act of 1978 (5 U.S.C. 
                App.);'';
            (6) in paragraph (4), as so redesignated, by striking ``or 
        other company'' each place it appears and inserting ``or other 
        company, firm, or association''; and
            (7) in paragraph (7), as so redesignated--
                    (A) in subparagraph (A)--
                            (i) in the matter preceding clause (i), by 
                        striking ``other company'' and inserting 
                        ``other company, firm, or association''; and
                            (ii) in clause (i)(I), by striking ``other 
                        company'' and inserting ``other company, firm, 
                        or association''; and
                    (B) in subparagraph (C), by striking ``a company'' 
                and inserting ``a company, firm, or association''.
    (b) Technical and Conforming Amendments.--Section 10(k) of the 
Federal Deposit Insurance Act (12 U.S.C. 1820(k)) is amended--
            (1) in paragraph (1), in the matter preceding subparagraph 
        (A), by striking ``paragraph (6)'' and inserting ``paragraph 
        (7)'';
            (2) in paragraph (5)(A), as so redesignated, by striking 
        ``paragraph (1)(B)'' and inserting ``paragraphs (1)(B) and 
        (2)''; and
            (3) in paragraph (7), as so redesignated--
                    (A) in subparagraph (A)--
                            (i) by striking ``subject to paragraph 
                        (1)'' and inserting ``subject to paragraph (1) 
                        or (2)''; and
                            (ii) by striking ``paragraph (1)(C)'' and 
                        inserting ``paragraph (1)(C) or (2)''; and
                    (B) in subparagraph (C)--
                            (i) by striking ``person described in 
                        paragraph (1)'' and inserting ``person 
                        described in paragraph (1) or (2)''; and
                            (ii) by striking ``the functions described 
                        in paragraph (1)(B)'' and inserting ``the 
                        functions or duties described in paragraph 
                        (1)(B) or (2)''.

SEC. 7. SEVERABILITY.

    If any provision of this Act or any amendment made by this Act, or 
any application of such provision or amendment to any person or 
circumstance, is held to be unconstitutional, the remainder of the 
provisions of this Act and the amendments made by this Act and the 
application of the provision or amendment to any other person or 
circumstance shall not be affected.
                                 <all>