(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 "covered government person" (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).
[112th Congress Public Law 105]
[From the U.S. Government Publishing Office]
[[Page 126 STAT. 291]]
Public Law 112-105
112th Congress
An Act
To prohibit Members of Congress and employees of Congress from using
nonpublic information derived from their official positions for personal
benefit, and for other purposes. <<NOTE: Apr. 4, 2012 - [S. 2038]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Stop Trading on
Congressional Knowledge Act of 2012. 5 USC app. 101 note.>>
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Stop Trading on Congressional
Knowledge Act of 2012'' or the ``STOCK Act''.
SEC. 2. <<NOTE: 5 USC app. 101 note.>> DEFINITIONS.
In this Act:
(1) Member of congress.--The term ``Member of Congress''
means a member of the Senate or House of Representatives, a
Delegate to the House of Representatives, and the Resident
Commissioner from Puerto Rico.
(2) Employee of congress.--The term ``employee of Congress''
means--
(A) any individual (other than a Member of
Congress), whose compensation is disbursed by the
Secretary of the Senate or the Chief Administrative
Officer of the House of Representatives; and
(B) any other officer or employee of the legislative
branch (as defined in section 109(11) of the Ethics in
Government Act of 1978 (5 U.S.C. App. 109(11))).
(3) Executive branch employee.--The term ``executive branch
employee''--
(A) has the meaning given the term ``employee''
under section 2105 of title 5, United States Code; and
(B) includes--
(i) the President;
(ii) the Vice President; and
(iii) an employee of the United States Postal
Service or the Postal Regulatory Commission.
(4) Judicial officer.--The term ``judicial officer'' has the
meaning given that term under section 109(10) of the Ethics in
Government Act of 1978 (U.S.C. App. 109(10)).
(5) Judicial employee.--The term ``judicial employee'' has
the meaning given that term in section 109(8) of the Ethics in
Government Act of 1978 (5 U.S.C. App. 109(8)).
(6) Supervising ethics office.--The term ``supervising
ethics office'' has the meaning given that term in section
109(18) of the Ethics in Government Act of 1978 (5 U.S.C. App.
109(18)).
[[Page 126 STAT. 292]]
SEC. 3. <<NOTE: 5 USC app. 101 note prec.>> PROHIBITION OF THE USE
OF NONPUBLIC INFORMATION FOR PRIVATE PROFIT.
The <<NOTE: Guidance.>> Select Committee on Ethics of the Senate and
the Committee on Ethics of the House of Representatives shall issue
interpretive guidance of the relevant rules of each chamber, including
rules on conflicts of interest and gifts, clarifying that a Member of
Congress and an employee of Congress may not use nonpublic information
derived from such person's position as a Member of Congress or employee
of Congress or gained from the performance of such person's official
responsibilities as a means for making a private profit.
SEC. 4. PROHIBITION OF INSIDER TRADING.
(a) <<NOTE: 15 USC 78j note.>> Affirmation of Nonexemption.--
Members of Congress and employees of Congress are not exempt from the
insider trading prohibitions arising under the securities laws,
including section 10(b) of the Securities Exchange Act of 1934 and Rule
10b-5 thereunder.
(b) Duty.--
(1) <<NOTE: 15 USC 78u-1 note.>> Purpose.--The purpose of
the amendment made by this subsection is to affirm a duty
arising from a relationship of trust and confidence owed by each
Member of Congress and each employee of Congress.
(2) Amendment.--Section 21A of the Securities Exchange Act
of 1934 (15 U.S.C. 78u-1) is amended by adding at the end the
following:
``(g) Duty of Members and Employees of Congress.--
``(1) In general.--Subject to the rule of construction under
section 10 of the STOCK Act and solely for purposes of the
insider trading prohibitions arising under this Act, including
section 10(b) and Rule 10b-5 thereunder, each Member of Congress
or employee of Congress owes a duty arising from a relationship
of trust and confidence to the Congress, the United States
Government, and the citizens of the United States with respect
to material, nonpublic information derived from such person's
position as a Member of Congress or employee of Congress or
gained from the performance of such person's official
responsibilities.
``(2) Definitions.--In this subsection--
``(A) the term `Member of Congress' means a member
of the Senate or House of Representatives, a Delegate to
the House of Representatives, and the Resident
Commissioner from Puerto Rico; and
``(B) the term `employee of Congress' means--
``(i) any individual (other than a Member of
Congress), whose compensation is disbursed by the
Secretary of the Senate or the Chief
Administrative Officer of the House of
Representatives; and
``(ii) any other officer or employee of the
legislative branch (as defined in section 109(11)
of the Ethics in Government Act of 1978 (5 U.S.C.
App. 109(11))).
``(3) Rule of construction.--Nothing in this subsection
shall be construed to impair or limit the construction of the
existing antifraud provisions of the securities laws or the
authority of the Commission under those provisions.''.
[[Page 126 STAT. 293]]
SEC. 5. CONFORMING CHANGES TO THE COMMODITY EXCHANGE ACT.
Section 4c(a) of the Commodity Exchange Act (7 U.S.C. 6c(a)) is
amended--
(1) in paragraph (3), in the matter preceding subparagraph
(A)--
(A) by inserting ``or any Member of Congress or
employee of Congress (as such terms are defined under
section 2 of the STOCK Act) or any judicial officer or
judicial employee (as such terms are defined,
respectively, under section 2 of the STOCK Act)'' after
``Federal Government'' the first place it appears;
(B) by inserting ``Member, officer,'' after
``position of the''; and
(C) by inserting ``or by Congress or by the
judiciary'' before ``in a manner''; and
(2) in paragraph (4)--
(A) in subparagraph (A), in the matter preceding
clause (i)--
(i) by inserting ``or any Member of Congress
or employee of Congress or any judicial officer or
judicial employee'' after ``Federal Government''
the first place it appears;
(ii) by inserting ``Member, officer,'' after
``position of the''; and
(iii) by inserting ``or by Congress or by the
judiciary'' before ``in a manner'';
(B) in subparagraph (B), in the matter preceding
clause (i), by inserting ``or any Member of Congress or
employee of Congress or any judicial officer or judicial
employee'' after ``Federal Government''; and
(C) in subparagraph (C)--
(i) in the matter preceding clause (i), by
inserting ``or by Congress or by the judiciary''--
(I) before ``that may affect''; and
(II) before ``in a manner''; and
(ii) in clause (iii), by inserting ``to
Congress, any Member of Congress, any employee of
Congress, any judicial officer, or any judicial
employee,'' after ``Federal Government,''.
SEC. 6. PROMPT REPORTING OF FINANCIAL TRANSACTIONS.
(a) Reporting Requirement.--Section 103 of the Ethics in Government
Act of 1978 (5 U.S.C. App. 103) is amended by adding at the end the
following subsection:
``(l) Not later than 30 days after receiving notification of any
transaction required to be reported under section 102(a)(5)(B), but in
no case later than 45 days after such transaction, the following
persons, if required to file a report under any subsection of section
101, subject to any waivers and exclusions, shall file a report of the
transaction:
``(1) The President.
``(2) The Vice President.
``(3) Each officer or employee in the executive branch,
including a special Government employee as defined in section
202 of title 18, United States Code, who occupies a position
classified above GS-15 of the General Schedule or, in the case
of positions not under the General Schedule, for which
[[Page 126 STAT. 294]]
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; 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 each officer or employee in any other position
determined by the Director of the Office of Government Ethics to
be of equal classification.
``(4) Each employee appointed pursuant to section 3105 of
title 5, United States Code.
``(5) Any employee not described in paragraph (3) who is in
a position in the executive branch which is excepted from the
competitive service by reason of being of a confidential or
policymaking character, except that the Director of the Office
of Government Ethics may, by regulation, exclude from the
application of this paragraph any individual, or group of
individuals, who are in such positions, but only in cases in
which the Director determines such exclusion would not affect
adversely the integrity of the Government or the public's
confidence in the integrity of the Government.
``(6) The Postmaster General, the Deputy Postmaster General,
each Governor of the Board of Governors of the United States
Postal Service and each officer or employee of the United States
Postal Service or Postal Regulatory Commission who occupies a
position 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.
``(7) The Director of the Office of Government Ethics and
each designated agency ethics official.
``(8) Any civilian employee not described in paragraph (3),
employed in the Executive Office of the President (other than a
special government employee) who holds a commission of
appointment from the President.
``(9) A Member of Congress, as defined under section
109(12).
``(10) An officer or employee of the Congress, as defined
under section 109(13).''.
(b) <<NOTE: Applicability. 5 USC app. 103 note.>> Effective Date.--
The amendment made by subsection (a) shall apply to transactions
occurring on or after the date that is 90 days after the date of
enactment of this Act.
SEC. 7. REPORT ON POLITICAL INTELLIGENCE ACTIVITIES.
(a) Report.--
(1) In general.--Not later than 12 months after the date of
enactment of this Act, the Comptroller General of the United
States, in consultation with the Congressional Research Service,
shall submit to the Committee on Homeland Security and
Governmental Affairs of the Senate and the Committee on
Oversight and Government Reform and the Committee on the
Judiciary of the House of Representatives a report on the role
of political intelligence in the financial markets.
(2) Contents.--The report required by this section shall
include a discussion of--
(A) what is known about the prevalence of the sale
of political intelligence and the extent to which
investors rely on such information;
(B) what is known about the effect that the sale of
political intelligence may have on the financial
markets;
[[Page 126 STAT. 295]]
(C) the extent to which information which is being
sold would be considered nonpublic information;
(D) the legal and ethical issues that may be raised
by the sale of political intelligence;
(E) any benefits from imposing disclosure
requirements on those who engage in political
intelligence activities; and
(F) any legal and practical issues that may be
raised by the imposition of disclosure requirements on
those who engage in political intelligence activities.
(b) Definition.--For purposes of this section, the term ``political
intelligence'' shall mean information that is--
(1) derived by a person from direct communications with an
executive branch employee, a Member of Congress, or an employee
of Congress; and
(2) provided in exchange for financial compensation to a
client who intends, and who is known to intend, to use the
information to inform investment decisions.
SEC. 8. PUBLIC FILING AND DISCLOSURE OF FINANCIAL DISCLOSURE FORMS
OF MEMBERS OF CONGRESS AND CONGRESSIONAL
STAFF.
(a) <<NOTE: 5 USC app. 105 note.>> Public, Online Disclosure of
Financial Disclosure Forms of Members of Congress and Congressional
Staff.--
(1) <<NOTE: Deadlines. Web posting.>> In general.--Not
later than August 31, 2012, or 90 days after the date of
enactment of this Act, whichever is later, the Secretary of the
Senate and the Sergeant at Arms of the Senate, and the Clerk of
the House of Representatives, shall ensure that financial
disclosure forms filed by Members of Congress, candidates for
Congress, and employees of Congress in calendar year 2012 and in
subsequent years pursuant to title I of the Ethics in Government
Act of 1978 are made available to the public on the respective
official websites of the Senate and the House of Representatives
not later than 30 days after such forms are filed.
(2) Extensions.--Notices of extension for financial
disclosure shall be made available electronically under this
subsection along with its related disclosure.
(3) Reporting transactions.--In the case of a transaction
disclosure required by section 103(l) of the Ethics in
Government Act of 1978, as added by this Act, such disclosure
shall be filed not later than the date required by that section.
Notices of extension for transaction disclosure shall be made
available electronically under this subsection along with its
related disclosure.
(4) Expiration.--The requirements of this subsection shall
expire upon implementation of the public disclosure system
established under subsection (b).
(b) <<NOTE: 5 USC 105 note.>> Electronic Filing and Online Public
Availability of Financial Disclosure Forms of Members of Congress,
Officers of the House and Senate, and Congressional Staff.--
(1) <<NOTE: Deadline.>> In general.--Subject to paragraph
(6) and not later than 18 months after the date of enactment of
this Act, the Secretary of the Senate and the Sergeant at Arms
of the Senate and the Clerk of the House of Representatives
shall develop systems to enable--
[[Page 126 STAT. 296]]
(A) electronic filing of reports received by them
pursuant to section 103(h)(1)(A) of title I of the
Ethics in Government Act of 1978; and
(B) public access to financial disclosure reports
filed by Members of Congress, candidates for Congress,
and employees of Congress, as well as reports of a
transaction disclosure required by section 103(l) of the
Ethics in Government Act of 1978, as added by this Act,
notices of extensions, amendments, and blind trusts,
pursuant to title I of the Ethics in Government Act of
1978, through databases that--
(i) are maintained on the official websites of
the House of Representatives and the Senate; and
(ii) allow the public to search, sort, and
download data contained in the reports.
(2) Login.--No login shall be required to search or sort the
data contained in the reports made available by this subsection.
A login protocol with the name of the user shall be utilized by
a person downloading data contained in the reports. For purposes
of filings under this section, section 105(b)(2) of the Ethics
in Government Act of 1978 does not apply.
(3) Public availability.--Pursuant to section 105(b)(1) of
the Ethics in Government Act of 1978, electronic availability on
the official websites of the Senate and the House of
Representatives under this subsection shall be deemed to have
met the public availability requirement.
(4) Filers covered.--Individuals required under the Ethics
in Government Act of 1978 or the Senate Rules to file financial
disclosure reports with the Secretary of the Senate or the Clerk
of the House of Representatives shall file reports
electronically using the systems developed by the Secretary of
the Senate, the Sergeant at Arms of the Senate, and the Clerk of
the House of Representatives.
(5) Extensions.--Notices of extension for financial
disclosure shall be made available electronically under this
subsection along with its related disclosure.
(6) Additional time.--The requirements of this subsection
may be implemented after the date provided in paragraph (1) if
the Secretary of the Senate or the Clerk of the House of
Representatives identifies in writing to relevant congressional
committees the additional time needed for such implementation.
(c) Recordkeeping.--Section 105(d) of the Ethics in Government Act
of 1978 (5 U.S.C. App. 105(d)) is amended to read as follows:
``(d)(1) <<NOTE: Time periods.>> Any report filed with or
transmitted to an agency or supervising ethics office or to the Clerk of
the House of Representatives or the Secretary of the Senate pursuant to
this title shall be retained by such agency or office or by the Clerk of
the House of Representatives or the Secretary of the Senate, as the case
may be.
``(2) Such report shall be made available to the public--
``(A) in the case of a Member of Congress until a date that
is 6 years from the date the individual ceases to be a Member of
Congress; and
``(B) in the case of all other reports filed pursuant to
this title, for a period of 6 years after receipt of the report.
[[Page 126 STAT. 297]]
``(3) After the relevant time period identified under paragraph (2),
the report shall be destroyed unless needed in an ongoing investigation,
except that in the case of an individual who filed the report pursuant
to section 101(b) and was not subsequently confirmed by the Senate, or
who filed the report pursuant to section 101(c) and was not subsequently
elected, such reports shall be destroyed 1 year after the individual
either is no longer under consideration by the Senate or is no longer a
candidate for nomination or election to the Office of President, Vice
President, or as a Member of Congress, unless needed in an ongoing
investigation or inquiry.''.
SEC. 9. OTHER FEDERAL OFFICIALS.
(a) <<NOTE: Guidance. 5 USC app. 101 note prec.>> Prohibition of
the Use of Nonpublic Information for Private Profit.--
(1) Executive branch employees.--The Office of Government
Ethics shall issue such interpretive guidance of the relevant
Federal ethics statutes and regulations, including the Standards
of Ethical Conduct for executive branch employees, related to
use of nonpublic information, as necessary to clarify that no
executive branch employee may use nonpublic information derived
from such person's position as an executive branch employee or
gained from the performance of such person's official
responsibilities as a means for making a private profit.
(2) Judicial officers.--The Judicial Conference of the
United States shall issue such interpretive guidance of the
relevant ethics rules applicable to Federal judges, including
the Code of Conduct for United States Judges, as necessary to
clarify that no judicial officer may use nonpublic information
derived from such person's position as a judicial officer or
gained from the performance of such person's official
responsibilities as a means for making a private profit.
(3) Judicial employees.--The Judicial Conference of the
United States shall issue such interpretive guidance of the
relevant ethics rules applicable to judicial employees as
necessary to clarify that no judicial employee may use nonpublic
information derived from such person's position as a judicial
employee or gained from the performance of such person's
official responsibilities as a means for making a private
profit.
(b) Application of Insider Trading Laws.--
(1) <<NOTE: 15 USC 78j note.>> Affirmation of non-
exemption.--Executive branch employees, judicial officers, and
judicial employees are not exempt from the insider trading
prohibitions arising under the securities laws, including
section 10(b) of the Securities Exchange Act of 1934 and Rule
10b-5 thereunder.
(2) Duty.--
(A) <<NOTE: 15 USC 78u-1 note.>> Purpose.--The
purpose of the amendment made by this paragraph is to
affirm a duty arising from a relationship of trust and
confidence owed by each executive branch employee,
judicial officer, and judicial employee.
(B) Amendment.--Section 21A of the Securities
Exchange Act of 1934 (15 U.S.C. 78u-1), as amended by
this Act, is amended by adding at the end the following:
``(h) Duty of Other Federal Officials.--
``(1) In general.--Subject to the rule of construction under
section 10 of the STOCK Act and solely for purposes of the
insider trading prohibitions arising under this Act, including
[[Page 126 STAT. 298]]
section 10(b), and Rule 10b-5 thereunder, each executive branch
employee, each judicial officer, and each judicial employee owes
a duty arising from a relationship of trust and confidence to
the United States Government and the citizens of the United
States with respect to material, nonpublic information derived
from such person's position as an executive branch employee,
judicial officer, or judicial employee or gained from the
performance of such person's official responsibilities.
``(2) Definitions.--In this subsection--
``(A) the term `executive branch employee'--
``(i) has the meaning given the term
`employee' under section 2105 of title 5, United
States Code;
``(ii) includes--
``(I) the President;
``(II) the Vice President; and
``(III) an employee of the United
States Postal Service or the Postal
Regulatory Commission;
``(B) the term `judicial employee' has the meaning
given that term in section 109(8) of the Ethics in
Government Act of 1978 (5 U.S.C. App. 109(8)); and
``(C) the term `judicial officer' has the meaning
given that term under section 109(10) of the Ethics in
Government Act of 1978 (5 U.S.C. App. 109(10)).
``(3) Rule of construction.--Nothing in this subsection
shall be construed to impair or limit the construction of the
existing antifraud provisions of the securities laws or the
authority of the Commission under those provisions.''.
SEC. 10. <<NOTE: 5 USC app. 101 note.>> RULE OF CONSTRUCTION.
Nothing in this Act, the amendments made by this Act, or the
interpretive guidance to be issued pursuant to sections 3 and 9 of this
Act, shall be construed to--
(1) impair or limit the construction of the antifraud
provisions of the securities laws or the Commodity Exchange Act
or the authority of the Securities and Exchange Commission or
the Commodity Futures Trading Commission under those provisions;
(2) be in derogation of the obligations, duties, and
functions of a Member of Congress, an employee of Congress, an
executive branch employee, a judicial officer, or a judicial
employee, arising from such person's official position; or
(3) be in derogation of existing laws, regulations, or
ethical obligations governing Members of Congress, employees of
Congress, executive branch employees, judicial officers, or
judicial employees.
SEC. 11. <<NOTE: 5 USC app. 105 note.>> EXECUTIVE BRANCH
REPORTING.
(a) Executive Branch Reporting.--
(1) <<NOTE: President. Public information. Web posting.>>
In general.--Not later than August 31, 2012, or 90 days after
the date of enactment of this Act, whichever is later, the
President shall ensure that financial disclosure forms filed
pursuant to title I of the Ethics in Government Act of 1978 (5
U.S.C. App. 101 et seq.), in calendar year 2012 and in
subsequent years, by executive branch employees specified in
section 101 of that Act are made available to the public on the
official websites of the respective executive branch agencies
not later than 30 days after such forms are filed.
[[Page 126 STAT. 299]]
(2) Extensions.--Notices of extension for financial
disclosure shall be made available electronically along with the
related disclosure.
(3) Reporting transactions.--In the case of a transaction
disclosure required by section 103(l) of the Ethics in
Government Act of 1978, as added by this Act, such disclosure
shall be filed not later than the date required by
that <<NOTE: Public information.>> section. Notices of extension
for transaction disclosure shall be made available
electronically under this subsection along with its related
disclosure.
(4) Expiration.--The requirements of this subsection shall
expire upon implementation of the public disclosure system
established under subsection (b).
(b) Electronic Filing and Online Public Availability of Financial
Disclosure Forms of Certain Executive Branch Employees.--
(1) In general.--Subject <<NOTE: Deadline. President.>> to
paragraph (6), and not later than 18 months after the date of
enactment of this Act, the President, acting through the
Director of the Office of Government Ethics, shall develop
systems to enable--
(A) electronic filing of reports required by section
103 of the Ethics in Government Act of 1978 (5 U.S.C.
App. 103), other than subsection (h) of such section;
and
(B) public access to financial disclosure reports
filed by executive branch employees required to file
under section 101 of that Act (5 U.S.C. App. 101), as
well as reports of a transaction disclosure required by
section 103(l) of that Act, as added by this Act,
notices of extensions, amendments, and blind trusts,
pursuant to title I of that Act, through databases
that--
(i) are maintained on the official website of
the Office of Government Ethics; and
(ii) allow the public to search, sort, and
download data contained in the reports.
(2) Login.--No login shall be required to search or sort the
data contained in the reports made available by this subsection.
A login protocol with the name of the user shall be utilized by
a person downloading data contained in the reports. For purposes
of filings under this section, section 105(b)(2) of the Ethics
in Government Act of 1978 (5 U.S.C. App. 105(b)(2)) does not
apply.
(3) Public availability.--Pursuant to section 105(b)(1) of
the Ethics in Government Act of 1978 (5 U.S.C. App. 105(b)(1)),
electronic availability on the official website of the Office of
Government Ethics under this subsection shall be deemed to have
met the public availability requirement.
(4) Filers covered.--Executive branch employees required
under title I of the Ethics in Government Act of 1978 to file
financial disclosure reports shall file the reports
electronically with their supervising ethics office.
(5) Extensions.--Notices of extension for financial
disclosure shall be made available electronically under this
subsection along with its related disclosure.
(6) Additional time.--The requirements of this subsection
may be implemented after the date provided in paragraph (1) if
the Director of the Office of Government Ethics, after
consultation with the Clerk of the House of Representatives
[[Page 126 STAT. 300]]
and Secretary of the Senate, identifies in writing to relevant
congressional committees the additional time needed for such
implementation.
SEC. 12. PARTICIPATION IN INITIAL PUBLIC OFFERINGS.
Section 21A of the Securities Exchange Act of 1934 (15 U.S.C. 78u-
1), as amended by this Act, is further amended by adding at the end the
following:
``(i) Participation in Initial Public Offerings.--An individual
described in section 101(f) of the Ethics in Government Act of 1978 may
not purchase securities that are the subject of an initial public
offering (within the meaning given such term in section 12(f)(1)(G)(i))
in any manner other than is available to members of the public
generally.''.
SEC. 13. REQUIRING MORTGAGE DISCLOSURE.
(a) Requiring Disclosure.--Section 102(a)(4)(A) of the Ethics in
Government Act of 1978 (5 U.S.C. App. 102(a)(4)(A)) is amended by
striking ``spouse; and'' and inserting the following: ``spouse, except
that this exception shall not apply to a reporting individual--
``(i) described in paragraph (1), (2), or (9)
of section 101(f);
``(ii) described in section 101(b) who has
been nominated for appointment as an officer or
employee in the executive branch described in
subsection (f) of such section, other than--
``(I) an individual appointed to a
position--
``(aa) as a Foreign Service
Officer below the rank of
ambassador; or
``(bb) in the uniformed
services for which the pay grade
prescribed by section 201 of
title 37, United States Code is
O-6 or below; or
``(II) a special government
employee, as defined under section 202
of title 18, United States Code; or
``(iii) described in section 101(f) who is in
a position in the executive branch the appointment
to which is made by the President and requires
advice and consent of the Senate, other than--
``(I) an individual appointed to a
position--
``(aa) as a Foreign Service
Officer below the rank of
ambassador; or
``(bb) in the uniformed
services for which the pay grade
prescribed by section 201 of
title 37, United States Code is
O-6 or below; or
``(II) a special government
employee, as defined under section 202
of title 18, United States Code; and''.
(b) Effective Date.--The <<NOTE: Applicability. 5 USC app. 102
note.>> amendment made by subsection (a) shall apply with respect to
reports which are required to be filed under section 101 of the Ethics
of Government Act of 1978 on or after the date of the enactment of this
Act.
SEC. 14. <<NOTE: 5 USC app. 103 note.>> TRANSACTION REPORTING
REQUIREMENTS.
The transaction reporting requirements established by section 103(l)
of the Ethics in Government Act of 1978, as added by section
[[Page 126 STAT. 301]]
6 of this Act, shall not be construed to apply to a widely held
investment fund (whether such fund is a mutual fund, regulated
investment company, pension or deferred compensation plan, or other
investment fund), if--
(1)(A) the fund is publicly traded; or
(B) the assets of the fund 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. APPLICATION TO OTHER ELECTED OFFICIALS AND CRIMINAL
OFFENSES.
(a) Application to Other Elected Officials.--
(1) Civil service retirement system.--Section 8332(o)(2)(A)
of title 5, United States Code, is amended--
(A) in clause (i), by inserting ``, the President,
the Vice President, or an elected official of a State or
local government'' after ``Member''; and
(B) in clause (ii), by inserting ``, the President,
the Vice President, or an elected official of a State or
local government'' after ``Member''.
(2) Federal employees retirement system.--Section 8411(l)(2)
of title 5, United States Code, is amended--
(A) in subparagraph (A), by inserting ``, the
President, the Vice President, or an elected official of
a State or local government'' after ``Member''; and
(B) in subparagraph (B), by inserting ``, the
President, the Vice President, or an elected official of
a State or local government'' after ``Member''.
(b) Criminal Offenses.--Section 8332(o)(2) of title 5, United States
Code, is amended--
(1) in subparagraph (A), by striking clause (iii) and
inserting the following:
``(iii) The offense--
``(I) is committed after the date of enactment of
this subsection and--
``(aa) is described under subparagraph (B)(i),
(iv), (xvi), (xix), (xxiii), (xxiv), or (xxvi); or
``(bb) is described under subparagraph
(B)(xxix), (xxx), or (xxxi), but only with respect
to an offense described under subparagraph (B)(i),
(iv), (xvi), (xix), (xxiii), (xxiv), or (xxvi); or
``(II) is committed after the date of enactment of
the STOCK Act and--
``(aa) is described under subparagraph
(B)(ii), (iii), (v), (vi), (vii), (viii), (ix),
(x), (xi), (xii), (xiii), (xiv), (xv), (xvii),
(xviii), (xx), (xxi), (xxii), (xxv), (xxvii), or
(xxviii); or
``(bb) is described under subparagraph
(B)(xxix), (xxx), or (xxxi), but only with respect
to an offense described under subparagraph
(B)(ii), (iii), (v), (vi), (vii), (viii), (ix),
(x), (xi), (xii), (xiii), (xiv), (xv), (xvii),
(xviii), (xx), (xxi), (xxii), (xxv), (xxvii), or
(xxviii).''; and
(2) by striking subparagraph (B) and inserting the
following:
``(B) An offense described in this subparagraph is only the
following, and only to the extent that the offense is a felony:
[[Page 126 STAT. 302]]
``(i) An offense under section 201 of title 18 (relating to
bribery of public officials and witnesses).
``(ii) An offense under section 203 of title 18 (relating to
compensation to Member of Congress, officers, and others in
matters affecting the Government).
``(iii) An offense under section 204 of title 18 (relating
to practice in the United States Court of Federal Claims or the
United States Court of Appeals for the Federal Circuit by Member
of Congress).
``(iv) An offense under section 219 of title 18 (relating to
officers and employees acting as agents of foreign principals).
``(v) An offense under section 286 of title 18 (relating to
conspiracy to defraud the Government with respect to claims).
``(vi) An offense under section 287 of title 18 (relating to
false, fictitious or fraudulent claims).
``(vii) An offense under section 597 of title 18 (relating
to expenditures to influence voting).
``(viii) An offense under section 599 of title 18 (relating
to promise of appointment by candidate).
``(ix) An offense under section 602 of title 18 (relating to
solicitation of political contributions).
``(x) An offense under section 606 of title 18 (relating to
intimidation to secure political contributions).
``(xi) An offense under section 607 of title 18 (relating to
place of solicitation).
``(xii) An offense under section 641 of title 18 (relating
to public money, property or records).
``(xiii) An offense under section 666 of title 18 (relating
to theft or bribery concerning programs receiving Federal
funds).
``(xiv) An offense under section 1001 of title 18 (relating
to statements or entries generally).
``(xv) An offense under section 1341 of title 18 (relating
to frauds and swindles, including as part of a scheme to deprive
citizens of honest services thereby).
``(xvi) An offense under section 1343 of title 18 (relating
to fraud by wire, radio, or television, including as part of a
scheme to deprive citizens of honest services thereby).
``(xvii) An offense under section 1503 of title 18 (relating
to influencing or injuring officer or juror).
``(xviii) An offense under section 1505 of title 18
(relating to obstruction of proceedings before departments,
agencies, and committees).
``(xix) An offense under section 1512 of title 18 (relating
to tampering with a witness, victim, or an informant).
``(xx) An offense under section 1951 of title 18 (relating
to interference with commerce by threats of violence).
``(xxi) An offense under section 1952 of title 18 (relating
to interstate and foreign travel or transportation in aid of
racketeering enterprises).
``(xxii) An offense under section 1956 of title 18 (relating
to laundering of monetary instruments).
``(xxiii) An offense under section 1957 of title 18
(relating to engaging in monetary transactions in property
derived from specified unlawful activity).
``(xxiv) An offense under chapter 96 of title 18 (relating
to racketeer influenced and corrupt organizations).
[[Page 126 STAT. 303]]
``(xxv) An offense under section 7201 of the Internal
Revenue Code of 1986 (relating to attempt to evade or defeat
tax).
``(xxvi) An offense under section 104(a) of the Foreign
Corrupt Practices Act of 1977 (relating to prohibited foreign
trade practices by domestic concerns).
``(xxvii) An offense under section 10(b) of the Securities
Exchange Act of 1934 (relating to fraud, manipulation, or
insider trading of securities).
``(xxviii) An offense under section 4c(a) of the Commodity
Exchange Act (7 U.S.C. 6c(a)) (relating to fraud, manipulation,
or insider trading of commodities).
``(xxix) An offense under section 371 of title 18 (relating
to conspiracy to commit offense or to defraud United States), to
the extent of any conspiracy to commit an act which
constitutes--
``(I) an offense under clause (i), (ii), (iii),
(iv), (v), (vi), (vii), (viii), (ix), (x), (xi), (xii),
(xiii), (xiv), (xv), (xvi), (xvii), (xviii), (xix),
(xx), (xxi), (xxii), (xxiii), (xxiv), (xxv), (xxvi),
(xxvii), or (xxviii); or
``(II) an offense under section 207 of title 18
(relating to restrictions on former officers, employees,
and elected officials of the executive and legislative
branches).
``(xxx) Perjury committed under section 1621 of title 18 in
falsely denying the commission of an act which constitutes--
``(I) an offense under clause (i), (ii), (iii),
(iv), (v), (vi), (vii), (viii), (ix), (x), (xi), (xii),
(xiii), (xiv), (xv), (xvi), (xvii), (xviii), (xix),
(xx), (xxi), (xxii), (xxiii), (xxiv), (xxv), (xxvi),
(xxvii), or (xxviii); or
``(II) an offense under clause (xxix), to the extent
provided in such clause.
``(xxxi) Subornation of perjury committed under section 1622
of title 18 in connection with the false denial or false
testimony of another individual as specified in clause (xxx).''.
SEC. 16. <<NOTE: 12 USC 4518a.>> LIMITATION ON BONUSES TO
EXECUTIVES OF FANNIE MAE AND FREDDIE MAC.
Notwithstanding <<NOTE: Effective date.>> any other provision in
law, senior executives at the Federal National Mortgage Association and
the Federal Home Loan Mortgage Corporation are prohibited from receiving
bonuses during any period of conservatorship for those entities on or
after the date of enactment of this Act.
SEC. 17. <<NOTE: 5 USC app. 101 note.>> POST-EMPLOYMENT
NEGOTIATION RESTRICTIONS.
(a) Restriction Extended to Executive and Judicial Branches.--
Notwithstanding <<NOTE: Time period.>> any other provision of law, an
individual required to file a financial disclosure report under section
101 of the Ethics in Government Act of 1978 (5 U.S.C. App. 101) may not
directly negotiate or have any agreement of future employment or
compensation unless such individual, within 3 business days after the
commencement of such negotiation or agreement of future employment or
compensation, files with the individual's supervising ethics office a
statement, signed by such individual, regarding such negotiations or
agreement, including the name of the private entity or entities involved
in such negotiations or agreement, and the date such negotiations or
agreement commenced.
(b) Recusal.--An <<NOTE: Notification.>> individual filing a
statement under subsection (a) shall recuse himself or herself whenever
there is a
[[Page 126 STAT. 304]]
conflict of interest, or appearance of a conflict of interest, for such
individual with respect to the subject matter of the statement, and
shall notify the individual's supervising ethics office of such recusal.
An individual making such recusal shall, upon such recusal, submit to
the supervising ethics office the statement under subsection (a) with
respect to which the recusal was made.
SEC. 18. WRONGFULLY INFLUENCING PRIVATE ENTITIES EMPLOYMENT
DECISIONS BY LEGISLATIVE AND EXECUTIVE
BRANCH OFFICERS AND EMPLOYEES.
(a) In General.--Section 227 of title 18, United States Code, is
amended--
(1) in the heading of such section, by inserting after
``Congress'' the following: ``or an officer or employee of the
legislative or executive branch'';
(2) by striking ``Whoever'' and inserting ``(a) Whoever'';
(3) by striking ``a Senator or Representative in, or a
Delegate or Resident Commissioner to, the Congress or an
employee of either House of Congress'' and inserting ``a covered
government person''; and
(4) by adding at the end the following:
``(b) In this section, the term `covered government person' means--
``(1) a Senator or Representative in, or a Delegate or
Resident Commissioner to, the Congress;
``(2) an employee of either House of Congress; or
``(3) the President, Vice President, an employee of the
United States Postal Service or the Postal Regulatory
Commission, or any other executive branch employee (as such term
is defined under section 2105 of title 5, United States
Code).''.
(b) Clerical Amendment.--The table of contents for chapter 11 of
title 18, United States Code, is amended by amending the item relating
to section 227 to read as follows:
``227. Wrongfully influencing a private entity's employment decisions by
a Member of Congress or an officer or employee of the
legislative or executive branch.''.
SEC. 19. MISCELLANEOUS CONFORMING AMENDMENTS.
(a) Repeal of Transmission of Copies of Member and Candidate Reports
to State Election Officials Upon Adoption of New Systems.--Section
103(i) of the Ethics in Government Act of 1978 (5 U.S.C. App. 103(i)) is
amended--
(1) by striking ``(i)'' and inserting ``(i)(1)''; and
(2) by adding at the end the following new paragraph:
``(2) The requirements of paragraph (1) do not apply to any report
filed under this title which is filed electronically and for which there
is online public access, in accordance with the systems developed by the
Secretary and Sergeant at Arms of the Senate and the Clerk of the House
of Representatives under section 8(b) of the Stop Trading on
Congressional Knowledge Act of 2012.''.
(b) Period of Retention of Financial Disclosure Statements of
Members of the House.--
(1) In general.--Section 304(c) of the Honest Leadership and
Open Government Act of 2007 (2 U.S.C. 104e(c)) is amended by
striking the period at the end and inserting the following: ``,
or, in the case of reports filed under section 103(h)(1) of the
Ethics in Government Act of 1978, until the expiration
[[Page 126 STAT. 305]]
of the 6-year period which begins on the date the individual is
no longer a Member of Congress.''.
(2) Effective date.--The <<NOTE: Applicability. 2 USC 104e
note.>> amendment made by paragraph (1) shall apply with respect
to any report which is filed on or after the date on which the
systems developed by the Secretary and Sergeant at Arms of the
Senate and the Clerk of the House of Representatives under
section 8(b) first take effect.
Approved April 4, 2012.
LEGISLATIVE HISTORY--S. 2038:
---------------------------------------------------------------------------
CONGRESSIONAL RECORD, Vol. 158 (2012):
Jan. 31, Feb. 1, 2, considered and passed Senate.
Feb. 9, considered and passed House, amended.
Mar. 20, 22, House considered and concurred in Senate
amendment.
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2012):
Apr. 4, Presidential remarks.
<all>
Measure laid before Senate by unanimous consent. (consideration: CR S1839-1840)
Motion by Senator Reid to concur in the House amendment to the bill (S. 2038) made in Senate. (consideration: CR S1839)
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)
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)
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)
Considered by Senate (Message from the House considered). (consideration: CR S1977-1981)
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)
Roll Call #56 (Senate)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)
Enacted as Public Law 112-105
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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)
Resolving differences -- Senate actions: Senate agreed to House amendment to the bill (S. 2038) by Unanimous Consent.
Senate agreed to House amendment to the bill (S. 2038) by Unanimous Consent.
Message on Senate action sent to the House.
Presented to President.
Presented to President.
Signed by President.
Signed by President.
Became Public Law No: 112-105.
Became Public Law No: 112-105.
By Senator Lieberman from Committee on Homeland Security and Governmental Affairs filed written report. Report No. 112-244.
By Senator Lieberman from Committee on Homeland Security and Governmental Affairs filed written report. Report No. 112-244.