STOCK Act

Bill: 112-s-2038
Sponsor: Sen. Lieberman, Joseph I. [ID-CT]
Introduced: 2012-01-26 in the Senate
Policy area: Government Operations and Politics
Subjects: Administrative law and regulatory procedures
Commodities markets
Congressional officers and employees
Congressional oversight
Crimes against property
Criminal investigation, prosecution, interrogation
Criminal procedure and sentencing
Elections, voting, political campaign regulation
Evidence and witnesses
Federal officials
Financial services and investments
Fraud offenses and financial crimes
Government corporations and government-sponsored enterprises
Government employee pay, benefits, personnel management
Government ethics and transparency, public corruption
Government information and archives
House of Representatives
Housing finance and home ownership
Internet and video services
Internet, web applications, social media
Judges
Judicial procedure and administration
Judicial review and appeals
Jurisdiction and venue
Legislative rules and procedure
Licensing and registrations
Members of Congress
Office of Government Ethics
Presidents and presidential powers, Vice Presidents
Public participation and lobbying
Securities
Securities and Exchange Commission (SEC)
Senate
State and local government operations
U.S. Sentencing Commission
Wages and earnings

Summary:
action_date: 2012-01-26
text: 
Stop Trading on Congressional Knowledge Act of 2012 or STOCK Act - Amends the Congressional Accountability Act of 1995 to prohibit Members of Congress and congressional employees from using any nonpublic information derived from their positions as Members or congressional employees, or gained from performance of the individual's duties, for personal benefit.
 
Directs the congressional ethics committees to issue rules or regulations to carry out the purposes of this prohibition.
 
Declares that such Members and employees are not exempt from the insider trading prohibitions of the Securities Exchange Act of 1934 and Rule 10b-5. Subjects violators of these prohibitions to appropriate punitive, disciplinary, and other remedial actions.
 
Amends the Commodity Exchange Act to apply to Members and congressional employees its prohibitions against certain transactions involving the purchase or sale of any commodity in interstate commerce, or for future delivery, or any swap.
 
Amends the Ethics in Government Act to require Members, congressional officers, and congressional employees to file reports on financial transactions.
 
Directs the Comptroller General to report on the role of political intelligence in the financial markets.
 
Requires that financial disclosure forms filed by Members and congressional officers and employees, as well as by candidates for Congress, in calendar year 2012 and in subsequent years be made available to the public on the respective official Senate and House of Representatives websites within 30 days after filing.
 
Directs the Secretary of the Senate, the Sergeant at Arms of the Senate, and the Clerk of the House of Representatives to develop systems to enable the electronic filing of such reports as well as their on-line public availability.
 
Prohibits federal employees from using for personal benefit any nonpublic information derived from their positions as federal employees, or gained from performance of their duties. Applies to them the insider trading prohibitions of the Securities Exchange Act of 1934 and Rule 10b-5, and subjects federal employees who violate these prohibitions to appropriate punitive, disciplinary, and other remedial actions.

action_date: 2012-01-26
text: 

(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)

 
Stop Trading on Congressional Knowledge Act of 2012 or STOCK Act 
- 
(Sec. 2) Amends the Congressional Accountability Act of 1995 to prohibit Members of Congress and congressional employees from using any nonpublic information derived from their positions as Members or congressional employees, or gained from performance of the individual's duties, for personal benefit.
 
Directs the congressional ethics committees to issue rules or regulations to carry out the purposes of this prohibition.
 
Declares that such Members and employees are not exempt from the insider trading prohibitions of the Securities Exchange Act of 1934 and Rule 10b-5. Subjects violators of these prohibitions to appropriate punitive, disciplinary, and other remedial actions.
 
(Sec. 3) Adds judicial proceedings to enforce the prohibition under this Act to the existing disclaimer that the authorization to bring certain judicial proceedings shall not constitute a waiver of sovereign immunity for any other purpose, or of the privileges of any Member of Congress under the U.S. Constitution, or a waiver of any power of either chamber, or under the rules of either chamber relating to records and information within its jurisdiction. 
 
(Sec. 4) Amends the Commodity Exchange Act to apply to Members and congressional employees its prohibitions against certain transactions involving the purchase or sale of any commodity in interstate commerce, or for future delivery, or any swap.
 
(Sec. 5) Amends the Ethics in Government Act to require Members, congressional officers, and congressional employees to file reports on financial transactions.
 
(Sec. 6) Directs the Comptroller General to report to specified congressional committees on the role of political intelligence in the financial markets.
 
(Sec. 7) Requires the Secretary of the Senate, the Sergeant at Arms of the Senate, and the Clerk of the House of Representatives, by August 31, 2012, or 90 days after the enactment of this Act, to ensure that financial disclosure forms filed by Members and congressional officers and employees, as well as by candidates for Congress, in calendar year 2012 and in subsequent years be made available to the public on the respective official Senate and House websites within 30 days after filing. Terminates such requirement upon implementation of the following public disclosure systems.
 
Directs the Secretary, the Sergeant at Arms, and the Clerk to develop systems to enable the electronic filing of such reports as well as their on-line public availability.
 
Amends the Ethics in Government Act to revise the retention period for mandatory public availability of financial disclosure reports. Requires retention and public availability of the financial disclosure reports of a Member of Congress until six years after the date the individual ceases to be a Member (currently, six years after receipt of the report). 

(Sec. 8) Prohibits federal employees from using for personal benefit any nonpublic information derived from their positions as federal employees, or gained from performance of their duties. Applies to them the insider trading prohibitions of the Securities Exchange Act of 1934 and Rule 10b-5, and subjects federal employees who violate these prohibitions to appropriate punitive, disciplinary, and other remedial actions.

action_date: 2012-02-02
text: 
Stop Trading on Congressional Knowledge Act of 2012 or STOCK Act 
-
 (Sec. 3) Requires the congressional ethics committees to issue interpretive guidance of the rules of each chamber, including rules on conflicts of interest and gifts, with respect to the prohibition against the use by Members of Congress and congressional employees, as a means for making a private profit, of any nonpublic information derived from their positions as Members or congressional employees, or gained from performance of the individual's official responsibilities.
 
(Sec. 4) Declares that such Members and employees are not exempt from the insider trading prohibitions arising under the securities laws, including the Securities Exchange Act of 1934 and Rule 10b-5. 
 
Amends the Securities Exchange Act of 1934 to declare that such Members and employees owe a duty arising from a relationship of trust and confidence to Congress, the U.S. government, and U.S. citizens with respect to material, nonpublic information derived from their positions as Members or congressional employees or gained from performance of the individual's official responsibilities.
 
(Sec. 5) Amends the Commodity Exchange Act to apply to Members and congressional employees its prohibitions against certain transactions, involving the purchase or sale of any commodity in interstate commerce, or for future delivery, or any swap.
 
(Sec. 6) Amends the Ethics in Government Act to require the following individuals to file reports on financial transactions: (1) Members; (2) congressional officers and employees; (3) the President; (4) the Vice President; (5) appointed executive branch employees, except one appointed to a position as a Foreign Service Officer below the rank of ambassador, or in the uniformed services for which the mandatory pay grade is O-6 or below, or a special government employee; (6) any executive branch noncareer appointee in the Senior Executive Service or a similar personnel system for senior employees in the executive branch, except any individual or group of individuals excluded by the Director of the Office of Government Ethics (OGE); (7) the OGE Director; and (8) any civilian employee employed in the Executive Office of the President (other than a special government employee) who holds a commission of appointment from the President.
 
(Sec. 7) Directs the Comptroller General to report to specified congressional committees on the role of political intelligence in the financial markets. 
 
(Sec. 8) Requires the Secretary of the Senate, the Sergeant at Arms of the Senate, and the Clerk of the House of Representatives, by August 31, 2012, or 90 days after the enactment of this Act, to ensure that financial disclosure forms filed by Members and congressional officers and employees, as well as by candidates for Congress, in calendar year 2012 and in subsequent years be made available to the public on the respective official Senate and House websites within 30 days after filing. Terminates such requirement upon implementation of the following public disclosure systems.
 
Directs the Secretary, the Sergeant at Arms, and the Clerk to develop systems to enable the electronic filing of such reports as well as their on-line public availability.
 
Amends the Ethics in Government Act to revise the retention period for mandatory public availability of financial disclosure reports. Requires retention and public availability of the financial disclosure reports of a Member of Congress until six years after the date the individual ceases to be a Member (currently, six years after receipt of the report).
 
(Sec. 9) Requires the OGE to issue interpretive guidance of the relevant federal ethics statutes and regulations, including the Standards of Ethical Conduct for executive branch employees, to specify that no such individual may use non-public information derived from his or her position or gained from the performance of official responsibilities as a means for making a private profit.
 
Requires the U.S. Judicial Conference to issue interpretive guidance of the relevant ethics rules applicable to federal judges, including the Code of Conduct for U.S. Judges, to the same effect.
 
Declares that executive branch employees and judicial officers are not exempt from the insider trading prohibitions arising under the securities laws, including the Securities Exchange Act of 1934 and Rule 10b-5.
 
Amends the Securities Exchange Act of 1934 to declare that such individuals owe a duty arising from a relationship of trust and confidence to the federal government and U.S. citizens with respect to material, nonpublic information derived from their positions as executive branch employees or judicial officers or gained from performance of the individual's official responsibilities.
 
(Sec. 11) Requires the President to: (1) ensure that financial disclosure forms filed by executive branch officers and employees are publicly available on appropriate official websites of executive branch agencies, and (2) develop systems to enable electronic filing and public access to these financial disclosure forms.
 
(Sec. 12) Requires executive branch agencies, departments, and independent agencies to: (1) comply with the financial disclosure reporting requirements of this Act with respect their officers and employees, and (2) make financial disclosure reports available to the public on their respective websites within 30 days after filing.
 
Excludes from such reporting requirement members of the uniformed service whose pay grade is 0-6 or below.
 
(Sec. 13) Amends the Ethics in Government Act of 1978 to require the financial disclosure report of the following individuals to include any secured mortgage which is their personal residence or that of his or her spouse: (1) the President, the Vice President, Members of Congress; and (2) certain individuals nominated for appointments as executive branch officers or employees (except those nominated to positions as Foreign Service Officers or a grade or rank in the uniformed services with a pay grade of 0-6 or below).
 
(Sec. 14) Declares that the transaction reporting requirements established by this Act shall not be construed to apply to a widely held investment fund (whether a mutual fund, regulated investment company, pension or deferred compensation plan, or other investment fund): (1) if the fund is publicly traded or its assets are widely diversified, and (2) the reporting individual neither exercises control over nor has the ability to exercise control over the financial interests held by the fund.
 
(Sec. 15) Denies Civil Service Retirement System (CSRS) or Federal Employees' Retirement System (FERS) retirement benefits (other than a lump-sum reimbursement of personal contributions) to the President, the Vice President, or an elected official of a state or local government, if convicted of certain felonies.
 
(Sec. 16) Prohibits senior executives at the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) (government-sponsored enterprises [GSEs]) from receiving bonuses during any period of conservatorship on or after the enactment of this Act.
 
(Sec. 17) Amends the Lobbying Disclosure Act (LDA) to apply mandatory lobbyist registration, reporting, disclosure and enforcement, and identification of clients and covered officials requirements to a political intelligence consultant who first makes a political intelligence contact.
 
Defines "political intelligence activities" as political intelligence contacts and efforts in support of such contacts, including preparation and planning activities, research, and other background work that is intended, at the time it is performed, for use in contacts, and coordination with such contacts and efforts of others.
 
Requires the Comptroller General to audit annually and report to Congress on the compliance or noncompliance with LDA requirements of political intelligence firms and political intelligence consultants.
 

Title II: Public Corruption Prosecution Improvements
 - Public Corruption Prosecution Improvements Act of 2012 - Amends the federal criminal code to revise and expand prohibitions against bribery, theft of public money, and other public corruption offenses.
 
(Sec. 202) Amends the federal criminal code to modify general venue rules for criminal prosecutions to allow prosecutions in any district in which an act in furtherance of an offense is committed.
 
(Sec. 203) Reduces from $5,000 to $1,000 the threshold amount for theft or bribery involving federally-assisted programs and increases the maximum prison term for such offenses from 10 to 20 years. 
 
(Sec. 204) Increases the maximum term of imprisonment for theft and embezzlement of federal money, property, or records from 10 to 15 years.
 
(Sec. 205) Modifies elements relating to the crime of bribery of public officials and witnesses. Expands the definition of "official act" to include: (1) any conduct that falls within the range of official duty of a public official; and (2) a single act, more than one act, or a course of conduct. Defines a "rule or regulation" for the purposes of such provisions as a federal regulation or a rule of the House of Representatives or the Senate, including rules and regulations governing the acceptance of gifts and campaign contributions. Prohibits: (1) anyone from knowingly giving, offering, or promising any thing or things of value with an aggregate value of $1,000 or more to any public official for or because of the official's position; and (2) any such official from knowingly demanding, seeking, receiving, or accepting any thing or things with an aggregate value of $1,000 or more for or because of the official's position.
 
(Sec. 206) Directs the United States Sentencing Commission to review and amend its guidelines and policy statements relating to such public corruption offenses to reflect the intent of Congress that penalties for such offenses meet specified requirements, including that they: (1) reflect the serious nature of the offenses, the incidence of such offenses, and the need for an effective deterrent; and (2) account for the harm to the public and the amount of any resulting loss, the level of sophistication and planning involved, whether the offense was committed for purposes of commercial advantage or private financial benefit, whether the defendant acted with intent to cause physical or property harm, the extent to which the offense represented an abuse of trust by the offender and was committed in a manner that undermined public confidence in government, and whether the violation created a threat to public health or safety, injury to any person, or death.
 
(Sec. 207) Establishes a six-year limitation period for the prosecution of public corruption crimes involving bribery, extortion, theft of government property, mail fraud, and racketeering. 
 
(Sec. 208) Increases to five years the maximum term of imprisonment for: (1) solicitation by federal officers and employees of political contributions from other federal officers and employees, (2) intimidation to secure political contributions, (3) solicitation and acceptance of contributions in federal offices, and (4) coercion of political activity by federal employees.
 
Increases to three years the maximum term of imprisonment for: (1) promise of employment made possible by an act of Congress for political activity, and (2) deprivation of such employment for political activity.
 
(Sec. 209) Includes as predicates for wiretaps: (1) embezzlement or theft of government money, property, or records; (2) theft or bribery concerning programs receiving federal funds; and (3) major fraud against the United States. 
 
(Sec. 210) Expands the types of perjury and obstruction of justice offenses for which venue lies in the district in which the official proceeding was intended to be affected or in which the conduct constituting the alleged offense occurred.
 
(Sec. 211) Amends the federal criminal code to include as a prohibited "scheme or artifice to defraud" any scheme or artifice by a public official to engage in undisclosed self-dealing. Defines "undisclosed self-dealing" to mean that: (1) a public official performs an official act for the purpose of furthering or benefitting a financial interest of the public official, the spouse, minor child, or business partner of that official, or other individuals, businesses, or organizations with which the official has a specified interest or connection; and (2) that official knowingly falsifies, conceals, or covers up material information required to be disclosed by any federal, state, or local statute, rule, regulation, or charter applicable to that official or knowingly fails to disclose material information as required.
 
(Sec. 212) Amends the federal judicial code to permit the disclosure of information regarding a potential criminal offense by a judge to the Attorney General, a federal, state, or local grand jury, or federal, state, or local law enforcement agents. 
 
(Sec. 214) Allows the Deputy Attorney General, Assistant Attorney General, or Attorney General (in addition to the U.S. Attorney) to certify to the district court that an appeal from a district court's decision suppressing or excluding evidence or requiring the return of seized property in a criminal proceeding is not taken for the purpose of delay and that the evidence is a substantial proof of a material fact in the proceeding.

action_date: 2012-02-09
text: 
Stop Trading on Congressional Knowledge Act of 2012 or STOCK Act 
-
 (Sec. 3) Requires the congressional ethics committees to issue interpretive guidance of the rules of each chamber, including rules on conflicts of interest and gifts, with respect to the prohibition against the use by Members of Congress and congressional employees (including legislative branch officers and employees), as a means for making a private profit, of any nonpublic information derived from their positions as Members or congressional employees, or gained from performance of the individual's official responsibilities.
 
(Sec. 4) Declares that such Members and employees are not exempt from the insider trading prohibitions arising under the securities laws, including the Securities Exchange Act of 1934 and Rule 10b-5. 
 
Amends the Securities Exchange Act of 1934 to declare that such Members and employees owe a duty arising from a relationship of trust and confidence to Congress, the U.S. government, and U.S. citizens with respect to material, nonpublic information derived from their positions as Members or congressional employees or gained from performance of the individual's official responsibilities.
 
(Sec. 5) Amends the Commodity Exchange Act to apply to Members and congressional employees, or to judicial officers or employees its prohibitions against certain transactions, involving the purchase or sale of any commodity in interstate commerce, or for future delivery, or any swap.
 
(Sec. 6) Amends the Ethics in Government Act of 1978 (EGA) to require specified individuals to file reports within 30 to 45 days after receiving notice of a purchase, sale, or exchange which exceeds $1,000 in stocks, bonds, commodities futures, and other forms of securities and subject to any waivers and exclusions.
 
Lists such individuals as: (1) the President; (2) the Vice President; (3) executive officers or employees, including certain special government employees and members of a uniformed service; (4) appointed administrative law judges; (5) executive branch employees in positions excepted from the competitive service because of their confidential or policymaking character (except those excluded from such exception by the Director of the Office of Government Ethics [OGE]); (6) the Postmaster General, the Deputy Postmaster General, each Governor of the Board of Governors of the U.S. Postal Service, and certain U.S. Postal Service officers or employees; (7) the OGE Director and each designated agency ethics official; (8) civilian employees of the Executive Office of the President (other than a special government employee) appointed by the President; (9) Members of Congress; and (10) congressional officers and employees. 
 
 (Sec. 7) Directs the Comptroller General to report to specified congressional committees on the role of political intelligence in the financial markets. 
 
(Sec. 8) Requires the Secretary of the Senate, the Sergeant at Arms of the Senate, and the Clerk of the House of Representatives, by August 31, 2012, or 90 days after the enactment of this Act, to ensure that financial disclosure forms filed by Members, candidates for Congress, and congressional officers and employees, in calendar year 2012 and in subsequent years be made available to the public on the respective official Senate and House websites within 30 days after filing. Terminates such requirement upon implementation of the following public disclosure systems.
 
Directs the Secretary, the Sergeant at Arms, and the Clerk to develop systems to enable the electronic filing of such reports as well as their on-line public availability.
 
Amends EGA to revise the retention period for mandatory public availability of financial disclosure reports. Requires retention and public availability of the financial disclosure reports of a Member of Congress until six years after the date the individual ceases to be a Member (currently, six years after receipt of the report).
 
(Sec. 9) Requires the OGE to issue interpretive guidance of the relevant federal ethics statutes and regulations, including the Standards of Ethical Conduct for executive branch employees, to specify that no such individual may use non-public information derived from his or her position or gained from the performance of official responsibilities as a means for making a private profit.
 
Requires the U.S. Judicial Conference to issue interpretive guidance of similar ethics rules, including the Code of Conduct for U.S. Judges, applicable to: (1) federal judges, and (2) judicial employees.
 
Declares that executive branch employees, judicial officers, and judicial employees are not exempt from the insider trading prohibitions arising under the securities laws, including the Securities Exchange Act of 1934 and Rule 10b-5.
 
Amends the Securities Exchange Act of 1934 to declare that such individuals owe a duty arising from a relationship of trust and confidence to the federal government and U.S. citizens with respect to material, nonpublic information derived from their positions as executive branch employees, judicial officers, or judicial employees gained from performance of the individual's official responsibilities.
 
(Sec. 11) Directs the President to ensure that financial disclosure forms filed in calendar year 2012 and in subsequent years by executive branch employees are publicly available on appropriate official websites of executive branch agencies within 30 days after such forms are filed.
 
Requires the OGE Director to develop systems to enable electronic filing and public access to these financial disclosure forms.
 
(Sec. 12) Amends the Securities and Exchange Act of 1934 to prohibit individuals required to file financial disclosure reports under EGA from purchasing securities that are the subject of an initial public offering in any manner other than is available to members of the public generally. 
 
(Sec. 13) Amends EGA to require the financial disclosure report of the following individuals to include any secured mortgage which is their personal residence or that of his or her spouse: (1) the President, the Vice President, Members of Congress; and (2) certain individuals nominated for appointments as executive branch officers or employees (except those nominated to positions as Foreign Service Officers or a grade or rank in the uniformed services with a pay grade of 0-6 or below).
 
(Sec. 14) Declares that the transaction reporting requirements established by this Act shall not be construed to apply to a widely held investment fund (whether a mutual fund, regulated investment company, pension or deferred compensation plan, or other investment fund): (1) if the fund is publicly traded or its assets are widely diversified, and (2) the reporting individual neither exercises control over nor has the ability to exercise control over the financial interests held by the fund.
 
(Sec. 15) Denies Civil Service Retirement System (CSRS) or Federal Employees' Retirement System (FERS) retirement benefits (other than a lump-sum reimbursement of personal contributions) to the President, the Vice President, or an elected official of a state or local government, if convicted of certain felonies.
 
(Sec. 16) Prohibits senior executives at the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) (government-sponsored enterprises [GSEs]) from receiving bonuses during any period of conservatorship on or after the enactment of this Act.
 
(Sec. 17) Prohibits an individual required to file a financial disclosure report under EGA from directly negotiating or having any agreement of future employment or compensation without filing a signed disclosure statement, within three business days after commencement of the negotiation or agreement, with the individual's supervising ethics office.
 
Requires such an individual to recuse himself or herself whenever there is or there appears to be a conflict of interest with respect to the subject matter of the statement. Requires the individual, upon such a recusal, to notify the supervising ethics office and submit the relevant disclosure statement.
 
(Sec. 18) Amends the federal criminal code to subject to a fine or imprisonment of up to 15 years, or both, as well as possible disqualification from holding federal office, certain covered government persons, in addition to Member of Congress and congressional employees, who with the intent to influence, on the basis of partisan political affiliation, an employment decision or employment practice of any private entity: (1) takes or withholds, or offers or threatens to take or withhold, an official act; or (2) influences, or offers or threatens to influence, the official act of another.
 
Extends the meaning of &quot;covered government person&quot; (currently restricted to Members of Congress and congressional employees) to include the President, Vice President, an employee of the U.S. Postal Service or the Postal Regulatory Commission, or any other executive branch employee.
 
(Sec. 19) Makes conforming amendments to EGA and the Honest Leadership and Open Government Act of 2007.
 
Requires retention and public availability of the financial disclosure reports of Members of the House until six years after the date an individual ceases to be a Member of Congress (currently, six years after receipt of the report).

action_date: 2012-04-04
text: 

(This measure has not been amended since it was passed by the House on February 9, 2012. The summary of that version is repeated here.)

 
Stop Trading on Congressional Knowledge Act of 2012 or STOCK Act 
-
 (Sec. 3) Requires the congressional ethics committees to issue interpretive guidance of the rules of each chamber, including rules on conflicts of interest and gifts, with respect to the prohibition against the use by Members of Congress and congressional employees (including legislative branch officers and employees), as a means for making a private profit, of any nonpublic information derived from their positions as Members or congressional employees, or gained from performance of the individual's official responsibilities.
 
(Sec. 4) Declares that such Members and employees are not exempt from the insider trading prohibitions arising under the securities laws, including the Securities Exchange Act of 1934 and Rule 10b-5. 
 
Amends the Securities Exchange Act of 1934 to declare that such Members and employees owe a duty arising from a relationship of trust and confidence to Congress, the U.S. government, and U.S. citizens with respect to material, nonpublic information derived from their positions as Members or congressional employees or gained from performance of the individual's official responsibilities.
 
(Sec. 5) Amends the Commodity Exchange Act to apply to Members and congressional employees, or to judicial officers or employees its prohibitions against certain transactions, involving the purchase or sale of any commodity in interstate commerce, or for future delivery, or any swap.
 
(Sec. 6) Amends the Ethics in Government Act of 1978 (EGA) to require specified individuals to file reports within 30 to 45 days after receiving notice of a purchase, sale, or exchange which exceeds $1,000 in stocks, bonds, commodities futures, and other forms of securities and subject to any waivers and exclusions.
 
Lists such individuals as: (1) the President; (2) the Vice President; (3) executive officers or employees, including certain special government employees and members of a uniformed service; (4) appointed administrative law judges; (5) executive branch employees in positions excepted from the competitive service because of their confidential or policymaking character (except those excluded from such exception by the Director of the Office of Government Ethics [OGE]); (6) the Postmaster General, the Deputy Postmaster General, each Governor of the Board of Governors of the U.S. Postal Service, and certain U.S. Postal Service officers or employees; (7) the OGE Director and each designated agency ethics official; (8) civilian employees of the Executive Office of the President (other than a special government employee) appointed by the President; (9) Members of Congress; and (10) congressional officers and employees. 
 
 (Sec.7) Directs the Comptroller General to report to specified congressional committees on the role of political intelligence in the financial markets. 
 
(Sec. 8) Requires the Secretary of the Senate, the Sergeant at Arms of the Senate, and the Clerk of the House of Representatives, by August 31, 2012, or 90 days after the enactment of this Act, to ensure that financial disclosure forms filed by Members, candidates for Congress, and congressional officers and employees, in calendar year 2012 and in subsequent years be made available to the public on the respective official Senate and House websites within 30 days after filing. Terminates such requirement upon implementation of the following public disclosure systems.
 
Directs the Secretary, the Sergeant at Arms, and the Clerk to develop systems to enable the electronic filing of such reports as well as their on-line public availability.
 
Amends EGA to revise the retention period for mandatory public availability of financial disclosure reports. Requires retention and public availability of the financial disclosure reports of a Member of Congress until six years after the date the individual ceases to be a Member (currently, six years after receipt of the report).
 
(Sec. 9) Requires the OGE to issue interpretive guidance of the relevant federal ethics statutes and regulations, including the Standards of Ethical Conduct for executive branch employees, to specify that no such individual may use non-public information derived from his or her position or gained from the performance of official responsibilities as a means for making a private profit.
 
Requires the U.S. Judicial Conference to issue interpretive guidance of similar ethics rules, including the Code of Conduct for U.S. Judges, applicable to: (1) federal judges, and (2) judicial employees.
 
Declares that executive branch employees, judicial officers, and judicial employees are not exempt from the insider trading prohibitions arising under the securities laws, including the Securities Exchange Act of 1934 and Rule 10b-5.
 
Amends the Securities Exchange Act of 1934 to declare that such individuals owe a duty arising from a relationship of trust and confidence to the federal government and U.S. citizens with respect to material, nonpublic information derived from their positions as executive branch employees, judicial officers, or judicial employees gained from performance of the individual's official responsibilities.
 
(Sec. 11) Directs the President to ensure that financial disclosure forms filed in calendar year 2012 and in subsequent years by executive branch employees are publicly available on appropriate official websites of executive branch agencies within 30 days after such forms are filed.
 
Requires the OGE Director to develop systems to enable electronic filing and public access to these financial disclosure forms.
 
(Sec. 12) Amends the Securities and Exchange Act of 1934 to prohibit individuals required to file financial disclosure reports under EGA from purchasing securities that are the subject of an initial public offering in any manner other than is available to members of the public generally. 
 
(Sec. 13) Amends EGA to require the financial disclosure report of the following individuals to include any secured mortgage which is their personal residence or that of his or her spouse: (1) the President, the Vice President, Members of Congress; and (2) certain individuals nominated for appointments as executive branch officers or employees (except those nominated to positions as Foreign Service Officers or a grade or rank in the uniformed services with a pay grade of 0-6 or below).
 
(Sec. 14) Declares that the transaction reporting requirements established by this Act shall not be construed to apply to a widely held investment fund (whether a mutual fund, regulated investment company, pension or deferred compensation plan, or other investment fund): (1) if the fund is publicly traded or its assets are widely diversified, and (2) the reporting individual neither exercises control over nor has the ability to exercise control over the financial interests held by the fund.
 
(Sec. 15) Denies Civil Service Retirement System (CSRS) or Federal Employees' Retirement System (FERS) retirement benefits (other than a lump-sum reimbursement of personal contributions) to the President, the Vice President, or an elected official of a state or local government, if convicted of certain felonies.
 
(Sec. 16) Prohibits senior executives at the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) (government-sponsored enterprises [GSEs]) from receiving bonuses during any period of conservatorship on or after the enactment of this Act.
 
(Sec. 17) Prohibits an individual required to file a financial disclosure report under EGA from directly negotiating or having any agreement of future employment or compensation without filing a signed disclosure statement, within three business days after commencement of the negotiation or agreement, with the individual's supervising ethics office.
 
Requires such an individual to recuse himself or herself whenever there is or there appears to be a conflict of interest with respect to the subject matter of the statement. Requires the individual, upon such a recusal, to notify the supervising ethics office and submit the relevant disclosure statement.
 
(Sec. 18) Amends the federal criminal code to subject to a fine or imprisonment of up to 15 years, or both, as well as possible disqualification from holding federal office, certain covered government persons, in addition to Member of Congress and congressional employees, who with the intent to influence, on the basis of partisan political affiliation, an employment decision or employment practice of any private entity: (1) takes or withholds, or offers or threatens to take or withhold, an official act; or (2) influences, or offers or threatens to influence, the official act of another.
 
Extends the meaning of &quot;covered government person&quot; (currently restricted to Members of Congress and congressional employees) to include the President, Vice President, an employee of the U.S. Postal Service or the Postal Regulatory Commission, or any other executive branch employee.
 
(Sec. 19) Makes conforming amendments to EGA and the Honest Leadership and Open Government Act of 2007.
 
Requires retention and public availability of the financial disclosure reports of Members of the House until six years after the date an individual ceases to be a Member of Congress (currently, six years after receipt of the report).


Legislative actions:
action_date: 2012-12-03
text: By Senator Lieberman from Committee on Homeland Security and Governmental Affairs filed written report. Report No. 112-244.
action_date: 2012-12-03
text: By Senator Lieberman from Committee on Homeland Security and Governmental Affairs filed written report. Report No. 112-244.
action_date: 2012-04-04
text: Became Public Law No: 112-105.
action_date: 2012-04-04
text: Became Public Law No: 112-105.
action_date: 2012-04-04
text: Signed by President.
action_date: 2012-04-04
text: Signed by President.
action_date: 2012-03-28
text: Presented to President.
action_date: 2012-03-28
text: Presented to President.
action_date: 2012-03-27
text: Message on Senate action sent to the House.
action_date: 2012-03-22
text: Senate agreed to House amendment to the bill (S. 2038) by Unanimous Consent.
action_date: 2012-03-22
text: Resolving differences -- Senate actions: Senate agreed to House amendment to the bill (S. 2038) by Unanimous Consent.
action_date: 2012-03-22
text: Motion by Senator Reid to concur in the House amendment to the bill (S. 2038) with an amendment (SA 1940) withdrawn in Senate by Unanimous Consent. (consideration: CR S1981)
action_date: 2012-03-22
text: Motion by Senator Reid to refer to Senate Committee on Homeland Security and Governmental Affairs the House message on S. 2038 with instructions to report back forthwith with amendment (SA 1942) fell when cloture invoked on the motion to concur in the House amendment to the bill (S. 2038) in Senate. (consideration: CR S1981)
action_date: 2012-03-22
text: Cloture on the motion to concur in the House amendment to the bill (S. 2038) invoked in Senate by Yea-Nay Vote. 96 - 3. Record Vote Number: 56. (consideration: CR S1980-1981; text: CR S1980)
action_date: 2012-03-22
text: Considered by Senate (Message from the House considered). (consideration: CR S1977-1981)
action_date: 2012-03-20
text: Motion by Senator Reid to refer to Senate Committee on Homeland Security and Governmental Affairs the House message on S. 2038 with instructions to report back forthwith with amendment (SA 1942) made in Senate. (consideration: CR S1839)
action_date: 2012-03-20
text: Motion by Senator Reid to concur in the House amendment to the bill (S. 2038) with an amendment (SA 1940) made in Senate. (consideration: CR S1839)
action_date: 2012-03-20
text: Cloture motion on the motion to concur in the House amendment to the bill (S. 2038) presented in Senate. (consideration: CR S1839; text: CR S1839)
action_date: 2012-03-20
text: Motion by Senator Reid to concur in the House amendment to the bill (S. 2038) made in Senate. (consideration: CR S1839)
action_date: 2012-03-20
text: Measure laid before Senate by unanimous consent. (consideration: CR S1839-1840)
action_date: 2012-02-09
text: Message on House action received in Senate and at desk: House amendment to Senate bill.
action_date: 2012-02-09
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2012-02-09
text: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 417 - 2 (Roll no. 47). (text: CR H645-648)
action_date: 2012-02-09
text: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 417 - 2 (Roll no. 47).(text: CR H645-648)
action_date: 2012-02-09
text: DEBATE - The House proceeded with forty minutes of debate on S. 2038.
action_date: 2012-02-09
text: Considered under suspension of the rules. (consideration: CR H645-657)
action_date: 2012-02-09
text: Mr. Smith (TX) moved to suspend the rules and pass the bill, as amended.
action_date: 2012-02-06
text: Held at the desk.
action_date: 2012-02-06
text: Received in the House.
action_date: 2012-02-06
text: Message on Senate action sent to the House.
action_date: 2012-02-02
text: Passed Senate with an amendment by Yea-Nay Vote. 96 - 3. Record Vote Number: 14. (text: CR S310-315)
action_date: 2012-02-02
text: Passed/agreed to in Senate: Passed Senate with an amendment by Yea-Nay Vote. 96 - 3. Record Vote Number: 14.(text: CR S310-315)
action_date: 2012-02-02
text: Considered by Senate. (consideration: CR S290-315)
action_date: 2012-02-01
text: Considered by Senate. (consideration: CR: S238-250, S250-254)
action_date: 2012-01-31
text: Measure laid before Senate by unanimous consent. (consideration: CR S187-193, S194-200, S201-202)
action_date: 2012-01-31
text: Motion to proceed to consideration of measure agreed to in Senate by Voice Vote. (consideration: CR S181)
action_date: 2012-01-31
text: Motion to proceed to measure considered in Senate. (consideration: CR S181)
action_date: 2012-01-30
text: Cloture on the motion to proceed to the measure invoked in Senate by Yea-Nay Vote. 93 - 2. Record Vote Number: 3. (consideration: CR S148-149; text: CR S148-149)
action_date: 2012-01-30
text: Motion to proceed to measure considered in Senate. (consideration: CR S142-149)
action_date: 2012-01-26
text: Cloture motion on the motion to proceed to the measure presented in Senate. (consideration: CR S120)
action_date: 2012-01-26
text: Motion to proceed to consideration of measure made in Senate. (consideration: CR S120; text: CR S120)
action_date: 2012-01-26
text: Placed on Senate Legislative Calendar under General Orders. Calendar No. 301.
action_date: 2012-01-26
text: Committee on Homeland Security and Governmental Affairs. Original measure reported to Senate by Senator Lieberman. Without written report.
action_date: 2012-01-26
text: Committee on Homeland Security and Governmental Affairs. Original measure reported to Senate by Senator Lieberman. Without written report.
action_date: 2012-01-26
text: Introduced in Senate

Enacted as: number: 112-105