Title: Security Clearance Family Review Act
Policy area: Government Operations and Politics

Summary:
Security Clearance Family Review Act
This bill prohibits specified federal agencies, including the Department of Defense, from granting access to classified information to a relative of the President for purposes of federal employment unless the Office of Government Ethics makes a favorable determination during a review process regarding the relative's suitability for such access. In conducting a review, the Office of Government Ethics must determine whether the relative of the President has any ongoing and substantial commercial relationships with state-owned or privately owned foreign enterprises or financial institutions, and, if so, whether the relative is ineligible for access to classified information because of such relationships.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2314 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 2314

   To amend title 5, United States Code, to prohibit certain acts of 
                   nepotism, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 3, 2017

 Mr. Gallego introduced the following bill; which was referred to the 
              Committee on Oversight and Government Reform

_______________________________________________________________________

                                 A BILL


 
   To amend title 5, United States Code, to prohibit certain acts of 
                   nepotism, 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 ``Security Clearance Family Review 
Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Chapter 31 of title 5, United States Code, establishes 
        anti-nepotism laws.
            (2) The specific purpose of the statute was to prevent 
        nepotism and unfair conduct in Federal hiring practices.
            (3) The White House announced Jared Kushner's Federal 
        employment appointment as senior White House adviser on January 
        9, 2017.
            (4) The White House announced Ivanka Trump's appointment as 
        an official government employee as assistant to the President 
        on March 29, 2017.
            (5) Under section 3110(a)(3) of title 5, United States 
        Code, a daughter or son-in-law constitute a ``relative'' for 
        purposes of a public official.
            (6) According to recent reporting by the New York Times, 
        both Mr. Kushner and Ms. Trump retain substantial holdings, 
        totaling as much as $740 million, that would be impacted based 
        on a decision made by the Government.
            (7) Question 20A.1 on United States Government Standard 
        Form 86 (SF 86), which all applicants seeking a security 
        clearance must submit, asks: ``Have you, your spouse, or 
        cohabitant ever had any foreign financial interests (such as 
        stocks, property, financial investments, bank accounts, 
        ownership of corporate entities, corporate interests, or 
        businesses) in which you or they have direct control or direct 
        ownership?''.
            (8) Question 20A.2 on such Form asks: ``Have you, your 
        spouse, cohabitant, or dependent children ever had any foreign 
        financial interests that someone controlled on your behalf?''.
            (9) Question 20A.3 on such Form asks: ``Have you, your 
        spouse, cohabitant, or dependent children ever owned, or do you 
        anticipate owning, or plan to purchase real estate in a foreign 
        country?''.
            (10) Financial disclosures released on March 31, 2017, 
        indicate that while both Mr. Kushner and Ms. Trump have 
        divested from direct leadership roles in their previous 
        businesses and real estate interests, their financial wealth 
        remains tied to the success of those ventures by way of various 
        trusts and company holdings.
            (11) President Trump has repeatedly declined to disclose 
        personal or commercial tax returns or divesture agreements.
            (12) Given President Trump's refusal to disclose tax 
        returns or divesture agreements, it is difficult to assess 
        whether Mr. Trump's relatives sufficiently divested in holdings 
        or are subject to foreign financial influence, including 
        possible loans to the Trump Organization or to Mr. Kushner's 
        businesses from state-owned foreign financial entities, 
        including China's Anbang Insurance Group and Russia's 
        VneshEconomBank.

SEC. 3. LIMITATION ON PROVISION OF SECURITY CLEARANCES TO RELATIVES OF 
              THE PRESIDENT.

    (a) Limitation on Security Clearances.--Section 3110(a)(1) of title 
5, United States Code, is amended--
            (1) in subparagraph (C) by striking ``and'';
            (2) in subparagraph (D) by striking the semicolon and 
        inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(E) for purposes of subsection (f), an office, 
                agency, or other establishment within the White House 
                or the Executive Office of the President;''.
    (b) Prohibition on Security Clearances to Relatives of the 
President.--Section 3110 of title 5, United States Code, is amended by 
adding at the end the following:
    ``(f) Prohibition on Security Clearances to Relatives of the 
President.--
            ``(1) In general.--Except as provided for under paragraph 
        (2), an agency, including the Department of Defense, may not 
        grant eligibility for access to classified information to a 
        relative of the President for the purposes of Federal 
        employment unless a favorable determination is submitted to the 
        head of the agency pursuant to paragraph (2)(C).
            ``(2) Review process.--
                    ``(A) Request for determination.--If the President 
                determines that a relative of the President requires 
                access to classified information for Federal 
                employment, the President shall submit a letter to the 
                Director of the Office of Government Ethics requesting 
                a determination regarding the relative's suitability 
                for such access.
                    ``(B) OGE review.--The Director shall conduct a 
                review to determine whether the applicable relative has 
                any ongoing and substantial commercial relationships 
                with state-owned or privately owned foreign enterprises 
                or financial institutions and, if so, whether the 
                relative is ineligible for access to security clearance 
                because of such relationships.
                    ``(C) Submission.--Not later than 60 days after 
                receipt of a letter under subparagraph (A), the 
                Director shall submit the determination made under 
                subparagraph (B) to--
                            ``(i) the President;
                            ``(ii) the head of the employing agency of 
                        the relative; and
                            ``(iii) the Committee on Foreign Affairs, 
                        the Committee on Armed Services, and the 
                        Permanent Select Committee on Intelligence of 
                        the House of Representatives.''.
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