I 118th CONGRESS 1st Session H. R. 4222 IN THE HOUSE OF REPRESENTATIVES June 20, 2023 Mr. Langworthy (for himself and Mr. Kilmer ) introduced the following bill; which was referred to the Committee on Oversight and Accountability A BILL To require executive branch agencies to prohibit conflicting financial interests through prohibited holdings regulations.

1. Short title This Act may be cited as the Executive Branch Conflict of Interest Prevention Act of 2023 . 2. Establishment of prohibited holdings regulations (a) Definitions In this Act: (1) Covered government official The term covered government official includes any officer or employee who occupies a position classified above GS–15 of the General Schedule or, in the case of positions not under the General Schedule— (A) for which the rate of basic pay is equal to or greater than 120 percent of the minimum rate of basic pay payable for GS–15 of the General Schedule; (B) each member of a uniformed service whose pay grade is at or in excess of O–7 under section 201 of title 37, United States Code; and (C) each officer or employee in any other position determined by the Director of the Office of Government Ethics to be of equal classification. (2) Diversified fund The term diversified fund means a widely held investment fund described in section 13104(f)(8) of title 5, United States Code, that does not have a stated policy of concentrating its investments in any industry, business, or single country other than the United States. (b) In general Subject to any exception for an interest held through a diversified fund or a qualified blind trust, no covered government official shall own any financial interest in a corporation, business, partnership, or other for-profit entity that is determined to be— (1) substantially regulated by the agency or otherwise directly influenced by the action of the executive agency; (2) a major contractor of the agency; (3) an organization that has substantial lobbying contacts with the agency; or (4) an organization that otherwise poses the realistic potential for creating a substantial appearance of a conflict of interest. (c) Guidance The Director of the Office of Government Ethics shall issue guidance to executive agencies regarding the meaning of the terms substantially regulated , major contractor , substantial lobbying contacts , and substantial appearance of a conflict of interest specifically in the context of this Act. (d) Report If an agency head determines that no financial interest meets the criteria established in subsection (b), as defined by the Director of the Office of Government Ethics pursuant to subsection (c), and that issuance of a prohibited holdings regulation under this regulation is not possible, the head of the agency shall sign a report to Congress that— (1) explains in detail why there is no realistic potential for any officer or employee described in subsection (a) to encounter a conflict of interest in the performance of official duties; (2) describes in detail all steps undertaken by the agency to evaluate the potential for conflicts of interest to arise at the agency; and (3) if any part of the agency is within the jurisdiction of an inspector general, shall include a written assessment by the Inspector General of the potential for conflicts of interest to arise in connection with the performance of official duties by officers and employees described in subsection (a). (e) Evaluation If an agency has issued a prohibited holdings regulation prior to the date of enactment of this Act, the agency head shall evaluate whether that regulation should cover any additional types of interests not currently covered. If the agency head determines that expansion of the regulation’s coverage is not currently warranted, the agency head shall so advise Congress in writing and shall not be required to issue a new regulation under this Act. (f) Waivers Any regulation prohibiting potentially conflicting financial interests, whether issued pursuant to this Act or prior to the date of enactment of this Act, may, if deemed appropriate by both the agency head and the Director of the Office of Government Ethics, permit individual waivers in unusual circumstances, provided that the regulation requires the agency to submit the waiver to the Director for publication on the official website of the Office of Government Ethics, subject to applicable routine destruction requirements.