JARED Act

Jumpstarting Accountability Relating to Ethical Disclosures Act or the JARED Act

This bill prohibits former political appointees from investing in a company in which a foreign principal has also invested within four years of initially communicating about the investment when the appointee was still a federal employee.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9573 Introduced in House (IH)]

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117th CONGRESS
  2d Session
                                H. R. 9573

   To amend section 207 of title 18, United States Code, to prohibit 
     former political appointees from investing in or serving in a 
managerial role in an investment fund in which a foreign principal owns 
 shares within a certain time period if such investment or managerial 
role is based on conversations between such appointee and such foreign 
principal while such appointee was employed by the Federal Government, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 15, 2022

  Mr. Beyer introduced the following bill; which was referred to the 
                       Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
   To amend section 207 of title 18, United States Code, to prohibit 
     former political appointees from investing in or serving in a 
managerial role in an investment fund in which a foreign principal owns 
 shares within a certain time period if such investment or managerial 
role is based on conversations between such appointee and such foreign 
principal while such appointee was employed by the Federal Government, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Jumpstarting Accountability Relating 
to Ethical Disclosures Act'' or the ``JARED Act''.

SEC. 2. PROHIBITION RELATING TO FOREIGN ENTITIES.

    Section 207(f) of title 18, United States Code, is amended--
            (1) by redesignating paragraph (3) as paragraph (4);
            (2) by adding after paragraph (2) the following new 
        paragraph:
            ``(3) Special rule for former political appointees on 
        investments or management roles.--Any person who is a former 
        political appointee who, within 4 years of any communication 
        between such person and a foreign principal or an agent of a 
        foreign principal involving prospective business dealings or 
        investments by such person which occurred at the time such 
        person was an employee of the Federal Government, knowingly 
        invests in or serves in a managerial role with respect to an 
        investment company in which such foreign principal has also 
        invested shall be subject to the penalties set forth in section 
        216 of this title.''; and
            (3) in paragraph (4), as redesignated by paragraph (1)--
                    (A) by striking ``this subsection,'' and inserting 
                ``this subsection--'';
                    (B) by striking ``the term'' and inserting ``(A) 
                the term'';
                    (C) by striking the period and inserting a 
                semicolon; and
                    (D) by adding at the end the following new 
                subparagraphs:
            ``(B) the terms `foreign principal' and `agent of a foreign 
        principal' have the meaning given such terms in section 1 of 
        the Foreign Agents Registration Act of 1938, as amended (22 
        U.S.C. 611);
            ``(C) the term `investment company' has the meaning given 
        such term in section 3 of the Investment Company Act of 1940 
        (15 U.S.C. 80a-3); and
            ``(D) the term `political appointee' has the meaning given 
        such term in section 4(a) of the Edward `Ted' Kaufman and 
        Michael Leavitt Presidential Transitions Improvements Act of 
        2015 (5 U.S.C. 3101 note).''.
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