Ban Stock Trading for Government Officials Act of 2023

Bill: 118-s-2463
Sponsor: full_name: Sen. Gillibrand, Kirsten E. [D-NY]
Introduced: 2023-07-25
Policy area: Government Operations and Politics
Latest action: action_date: 2023-07-25
text: Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

Summaries:

tv_txt: II 118th CONGRESS 1st Session S. 2463 IN THE SENATE OF THE UNITED STATES July 25, 2023 Mrs. Gillibrand (for herself and Mr. Hawley ) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs A BILL To amend chapter 131 of title 5, United States Code, and the STOCK Act to require certain senior officials to report payments received from the Federal Government, to improve the filing and disclosure of financial disclosures, to ban stock ownership for certain senior Government officials, and for other purposes.

1. Short title This Act may be cited as the Ban Stock Trading for Government Officials Act of 2023 . I Eliminating Executive Branch Insider Conflicts of Interest 101. Short title This title may be cited as the Eliminating Executive Branch Insider Conflicts of Interest Act . 102. Sense of Congress It is the sense of Congress that executive branch officials should not have a personal financial interest in the outcome of Government policy decisions. 103. Banning conflicted interests in the executive branch (a) In general Chapter 131 of title 5, United States Code, is amended by adding at the end the following: IV Banning conflicted interests in the executive branch 13151. Definitions In this subchapter: (1) Adjacent individual The term adjacent individual means— (A) each officer or employee in the executive branch holding a Senior Executive Service position, as defined under section 3132(a)(2) of title 5; (B) each member of a uniformed service whose pay grade is at or in excess of O–7 under section 201 of title 37; (C) each officer or employee in any other position determined by the Special Counsel of the United States, in consultation with the Director of the Office of Government Ethics, to be of equal classification to a position described in subparagraph (A) or (B); or (D) the spouse or dependent child of any individual described in subparagraph (A), (B), or (C). (2) Covered financial interest (A) In general The term covered financial interest means— (i) any investment in— (I) a security (as defined in section 3(a) of Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a) )); (II) a security future (as defined in that section); or (III) a commodity (as defined in section 1a of the Commodity Exchange Act ( 7 U.S.C. 1a )); or (ii) any economic interest comparable to an interest described in clause (i) that is acquired through synthetic means, such as the use of a derivative, including an option, warrant, or other similar means. (B) Exclusions The term covered financial interest does not include— (i) a diversified mutual fund; (ii) a diversified exchange-traded fund; (iii) a United States Treasury bill, note, or bond; (iv) compensation from the primary occupation of a covered individual or adjacent individual; or (v) any financial interest exempted under paragraph (1) or (2) of section 208(b) of title 18. (3) Covered individual The term covered individual means— (A) the President; (B) the Vice President; or (C) the spouse or dependent child of any individual described in subparagraph (A) or (B). (4) Dependent child The term dependent child has the meaning given the term in section 13101. 13152. Prohibition on certain transactions and holdings involving covered financial interests (a) Prohibition Except as provided in subsection (b), a covered individual or an adjacent individual may not, during the term of service of the covered individual or adjacent individual, or during the 180-day period beginning on the date on which the service of such covered individual or adjacent individual is terminated, hold, purchase, sell, or conduct any type of transaction with respect to a covered financial interest. (b) Exceptions The prohibition under subsection (a) shall not apply to a sale by a covered individual or an adjacent individual that is completed by the date that is— (1) for a covered individual or an adjacent individual serving on the date of enactment of this section, 180 days after the date of enactment; and (2) for a covered individual or an adjacent individual who commences service as a covered individual after the date of enactment of this section, 180 days after the first date of the term of service. (c) Adjacent individuals With respect to adjacent individuals— (1) this section shall be supplementary in nature to section 208 of title 18; and (2) nothing in this section shall be construed to limit the application of section 208 of title 18. (d) Penalties (1) Disgorgement A covered individual or adjacent individual shall disgorge to the Treasury of the United States any profit from a transaction or holding involving a covered financial interest that is conducted in violation of this section. (2) Fines A covered individual or an adjacent individual who holds, purchases, sells, or conducts a transaction involving a covered financial interest in violation of this section— (A) shall be assessed a fine by the Office of the Special Counsel, in consultation with the Director of the Office of Government Ethics, of not more than $10,000 or the amount of compensation, if any, that the covered individual or adjacent individual received for the prohibited conduct, whichever is greater; and (B) may be referred to the Department of Justice and assessed a civil fine pursuant to section 13153 if the Office of the Special Counsel, in consultation with the Director of the Office of Government Ethics, find such case comparatively substantial in monetary value or extraordinary in nature. 13153. Civil penalties (a) Civil action The Attorney General may bring a civil action in any appropriate United States district court against any covered individual or adjacent individual who violates any provision of section 13152. (b) Civil penalty The court in which any action is brought under subsection (a) may assess against a covered individual or an adjacent individual a civil penalty of not more than the amount recommended by the Attorney General. . (b) Clerical amendment The table of sections for chapter 131 of title 5, United States Code, is amended by adding at the end the following: SUBCHAPTER IV—Banning conflicted interests in the executive branch 13151. Definitions. 13152. Prohibition on certain transactions and holdings involving covered financial interests. 13153. Civil penalties. . II STOCK Act 2.0 201. Short title This title may be cited as the STOCK Act 2.0 . 202. Reporting of applications for, or receipt of, payments from Federal Government (a) In general Section 13103 of title 5, United States Code, is amended by adding at the end the following: (i) Reporting of applications for, or receipt of, payments from Federal Government (1) Definitions In this subsection: (A) Covered payment (i) In general The term covered payment means a payment of money or any other item of value made, or promised to be made, by the Federal Government. (ii) Inclusions The term covered payment includes— (I) a loan agreement, contract, or grant made, or promised to be made, by the Federal Government; and (II) such other types of payment of money or items of value as the Secretary of the Treasury, in consultation with the Director of the Office of Government Ethics, may establish, by regulation. (iii) Exclusions The term covered payment does not include— (I) any salary or compensation for service performed as, or reimbursement of personal outlay by, an officer or employee of the Federal Government; or (II) any tax refund (including a refundable tax credit). (B) Covered person The term covered person means a person described in any of paragraphs (1) through (10) of section 13105(l). (2) Reporting requirement Not later than 30 days after the date of receipt of a notice of any application for, or receipt of, a covered payment by a covered person, the spouse of the covered person, or a dependent child of the covered person (including any business owned and controlled by the covered person or spouse or dependent child of the covered person), but in no case later than 45 days after the date on which the covered payment is made or promised to be made, the covered person shall submit to the applicable supervising ethics office a report describing the covered payment. (3) Fine for failure to report Notwithstanding section 13106(d), a covered person shall be assessed a fine, pursuant to regulations issued by the applicable supervising ethics office, of $500 in each case in which the covered person fails to file a report required under this subsection. . (b) Report contents Section 13104 of title 5, United States Code, is amended by adding at the end the following: (j) Payments from Federal Government Each report filed pursuant to subsection (i) of section 13103 shall include— (1) an identification of each type of payment or item of value applied for, or received, from the Federal Government; (2) (A) the name of each recipient of each payment or item of value identified under paragraph (1); and (B) the relationship of each recipient named under subparagraph (A) to the person filing the report; (3) a description of the date on which, as applicable— (A) an application for a payment or other item of value was submitted to the Federal Government; and (B) the payment or item of value was received from the Federal Government; and (4) a description of the amount of each applicable payment or item of value. . (c) Technical and conforming amendments (1) Persons required to file Section 13103(f) of title 5, United States Code, is amended— (A) in paragraph (9), by striking as defined in section 13101 ; (B) in paragraph (10), by striking as defined in section 13101 ; (C) in paragraph (11), by striking as defined in section 13101 ; and (D) in paragraph (12), by striking as defined in section 13101 . (2) Contents of reports Section 13104(a) of title 5, United States Code, is amended in the matter preceding paragraph (1), by striking section 13103(d) and (e) and inserting subsection (d) or (e) of section 13103 . (d) Effective date The amendments made by this section shall apply to relevant applications submitted to, and payments made or promised to be made by, the Federal Government on or after the date that is 90 days after the date of enactment of this Act. 203. Penalty for STOCK Act noncompliance (a) In general The STOCK Act ( Public Law 112–105 ; 126 Stat. 291; 126 Stat. 1310; 127 Stat. 438; 132 Stat. 4167) is amended by adding at the end the following: 20. Fines for failure to report (a) In general Notwithstanding any other provision of law (including regulations), an individual shall be assessed a fine, pursuant to regulations issued by the applicable supervising ethics office (including the Administrative Office of the United States Courts, as applicable), of $500 in each case in which the individual fails to file a transaction report required under this Act. (b) Deposit in Treasury The fines paid under this section shall be deposited in the miscellaneous receipts of the Treasury. . (b) Rules, regulations, guidance, and documents Not later than 1 year after the date of enactment of this Act, each supervising ethics office (as defined in section 2 of the STOCK Act ( 5 U.S.C. 13101 note)) (including the Administrative Office of the United States Courts, as applicable) shall amend the rules, regulations, guidance, documents, papers, and other records of the supervising ethics office in accordance with the amendment made by this section. 204. Banning conflicted interests in Congress (a) In general (1) Banning conflicted trades Chapter 131 of title 5, United States Code, as amended by section 103 of this Act, is amended by adding at the end the following: V Banning conflicted trades in Congress 13161. Definitions In this subchapter: (1) Commodity The term commodity has the meaning given the term in section 1a of the Commodity Exchange Act ( 7 U.S.C. 1a ). (2) Covered financial interest (A) In general The term covered financial interest means— (i) any investment in— (I) a security (as defined in section 3(a) of Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a) )); (II) a security future (as defined in that section); or (III) a commodity (as defined in section 1a of the Commodity Exchange Act ( 7 U.S.C. 1a )); or (ii) any economic interest comparable to an interest described in clause (i) that is acquired through synthetic means, such as the use of a derivative, including an option, warrant, or other similar means. (B) Exclusions The term covered financial interest does not include— (i) a diversified mutual fund; (ii) a diversified exchange-traded fund; (iii) a United States Treasury bill, note, or bond; (iv) compensation from the primary occupation of a covered individual; or (v) any financial interest exempted under paragraph (1) or (2) of section 208(b) of title 18. (3) Covered individual The term covered individual means— (A) a Member of Congress (as defined in section 13101); or (B) a spouse or dependent child of a Member of Congress. (4) Dependent child The term dependent child has the meaning given the term in section 13101. (5) Future The term future means a financial contract obligating a buyer to purchase, or a seller to sell, an asset, such as a physical commodity or a financial instrument, at a predetermined future date and price. (6) Security The term security has the meaning given the term in section 3(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a) ). (7) Supervising ethics office The term supervising ethics office , with respect to a covered individual, has the meaning given the term in section 13101 with respect to that covered individual. 13162. Prohibitions (a) Transactions Except as provided in sections 13163 and 13164, and during the 180-day period beginning on the date on which the service of such covered individual is terminated, no covered individual may— (1) hold, purchase, sell, or conduct any type of transaction with respect to a covered financial interest; or (2) enter into a transaction that creates a net short position in any security. (b) Positions A covered individual may not serve as an officer or member of any board of any for-profit association, corporation, or other entity. 13163. Divestiture With respect to any covered financial interest held by a covered individual, the covered individual shall sell the covered financial interest during the 180-day period beginning on the later of— (1) the date on which the covered individual assumes office or employment as a covered individual; and (2) the date of enactment of this Act. 13164. Administration and enforcement (a) Administration Each supervising ethics office may issue guidance relating to any matter covered by this subchapter, including— (1) whether a covered individual may hold an employee stock option or other, similar instrument that has not vested before the date on which the covered individual assumes office or employment as a covered individual; and (2) the process and timeline for determining the date on which a covered individual shall no longer serve as an officer or member of any board of any for-profit association, corporation, or other entity. (b) Enforcement A covered individual who knowingly fails to comply with this subchapter— (1) shall disgorge to the Treasury of the United States any profit from a transaction or holding involving a covered financial interest that is conducted in violation of this subchapter; and (2) shall be assessed a fine by the supervising ethics office of not less than 10 percent of the value of the covered financial interest that was purchased or sold, or the security in which a net short position was created, in violation of this subchapter, as applicable. . (2) Clerical amendment The table of sections for chapter 131 of title 5, United States Code, as amended by section 103 of this Act, is amended by adding at the end the following: SUBCHAPTER V—Banning conflicted trades in Congress 13161. Definitions. 13162. Prohibitions. 13163. Divestiture. 13164. Administration and enforcement. . (b) Conforming amendments (1) Authority and functions Section 13122(f)(2)(B) of title 5, United States Code, is amended— (A) by striking Subject to clause (iv) of this subparagraph, before each place it appears and inserting Before ; and (B) by striking clause (iv). (2) Lobbying Disclosure Act of 1995 Section 3(4)(D) of the Lobbying Disclosure Act of 1995 ( 2 U.S.C. 1602(4)(D) ) is amended by striking legislative branch employee serving in a position described under section 13101(13) of title 5, United States Code and inserting officer or employee of Congress (as defined in section 13101 of title 5, United States Code) . (3) STOCK Act Section 2 of the STOCK Act ( 5 U.S.C. 13101 note) is amended— (A) in paragraph (2)(B), by striking (11) ; (B) in paragraph (4), by striking (10) ; (C) in paragraph (5), by striking (9) ; and (D) in paragraph (6), by striking (18) . (4) Securities Exchange Act of 1934 Section 21A of the Securities Exchange Act of 1934 ( 15 U.S.C. 78u–1 ) is amended— (A) in subsection (g)(2)(B)(ii), by striking (11) ; and (B) in subsection (h)(2)— (i) in subparagraph (B), by striking (9) ; and (ii) in subparagraph (C), by striking (10) . 205. Electronic filing and online public availability of financial disclosure forms (a) Members of Congress and congressional staff Section 8(b)(1) of the STOCK Act ( 5 U.S.C. 13107 note) is amended— (1) in the matter preceding subparagraph (A), by inserting , pursuant to subchapter I of chapter 131 of title 5, United States Code, through databases maintained on the official websites of the Senate and House of Representatives after enable ; (2) in subparagraph (A), by striking reports received by them pursuant to section 13105(h)(1)(A) of title 5, United States Code, and and inserting each report received under section 13105(h)(1)(A) of that subchapter; and ; and (3) by striking subparagraph (B) and the undesignated matter following that subparagraph and inserting the following: (B) public access— (i) to each— (I) financial disclosure report filed by a Member of Congress or a candidate for Congress; (II) transaction disclosure report filed by a Member of Congress or a candidate for Congress pursuant to section 13105(l) of that subchapter; and (III) notice of extension or amendment with respect to a report described in subclause (I) or (II), pursuant to that subchapter; and (ii) in a manner that— (I) allows the public to search, sort, and download data contained in the reports described in subclause (I) or (II) of clause (i) by criteria required to be reported, including by filer name, asset, transaction type, ticker symbol, notification date, amount of transaction, and date of transaction; (II) allows access through an application programming interface; and (III) is fully compliant with— (aa) section 508 of the Rehabilitation Act of 1973 ( 29 U.S.C. 794d ); and (bb) the most recent Web Content Accessibility Guidelines (or successor guidelines). . (b) Very senior executive branch employees Section 11(b)(1) of the STOCK Act ( Public Law 112–105 ; 126 Stat. 299) is amended— (1) in the matter preceding subparagraph (A), by inserting , pursuant to subchapter I of chapter 131 of title 5, United States Code, through databases maintained on the official website of the Office of Government Ethics after enable ; and (2) by striking subparagraph (B) and the undesignated matter following that subparagraph and inserting the following: (B) public access— (i) to each— (I) financial disclosure report filed by an officer occupying a position listed in section 5312 or 5313 of title 5, United States Code, having been nominated by the President and confirmed by the Senate to that position; (II) transaction disclosure report filed by an individual described in subclause (I) pursuant to section 13105(l) of title 5, United States Code; and (III) notice of extension or amendment with respect to a report described in subclause (I) or (II), pursuant to subchapter I of chapter 131 of title 5, United States Code; and (ii) in a manner that— (I) allows the public to search, sort, and download data contained in the reports described in subclause (I) or (II) of clause (i) by criteria required to be reported, including by filer name, asset, transaction type, ticker symbol, notification date, amount of transaction, and date of transaction; (II) allows access through an application programming interface; and (III) is fully compliant with— (aa) section 508 of the Rehabilitation Act of 1973 ( 29 U.S.C. 794d ); and (bb) the most recent Web Content Accessibility Guidelines (or successor guidelines). . (c) Applicability The amendments made by this section shall apply on and after the date that is 18 months after the date of enactment of this Act.