For the People Act of 2021 (H.R. 1; 117th Congress)/Division C/Title VIII/Subtitle A

by John Sarbanes

SEC. 8001. SHORT TITLE.

This subtitle may be cited as the “Executive Branch Conflict of Interest Act”.

SEC. 8002. RESTRICTIONS ON PRIVATE SECTOR PAYMENT FOR GOVERNMENT SERVICE.

Section 209 of title 18, United States Code, is amended—

(1) in subsection (a);

(A) by striking “any salary” and inserting “any salary (including a bonus)”; and

(B) by striking “as compensation for his services” and inserting “at any time, as compensation for serving”; and

(2) in subsection (b)—

(A) by inserting “(1)” after “(b)”; and

(B) by adding at the end the following:

“(2) For purposes of paragraph (1), a pension, retirement, group life, health or accident insurance, profit-sharing, stock bonus, or other employee welfare or benefit plan that makes payment of any portion of compensation contingent on accepting a position in the United States Government shall not be considered bona fide.”.

SEC. 8003. REQUIREMENTS RELATING TO SLOWING THE REVOLVING DOOR.

(a) In General.—The Ethics in Government Act of 1978 (5 U.S.C. App.) is amended by adding at the end the following:

“TITLE VI—ENHANCED REQUIREMENTS FOR CERTAIN EMPLOYEES

“§ 601. Definitions “In this title:

“(1) COVERED AGENCY.—The term ‘covered agency’—

“(A) means an Executive agency, as defined in section 105 of title 5, United States Code, the Postal Service and the Postal Rate Commission, but does not include the Government Accountability Office or the Government of the District of Columbia; and

“(B) shall include the Executive Office of the President.

“(2) COVERED EMPLOYEE.—The term ‘covered employee’ means an officer or employee referred to in paragraph (2) of section 207(c) or paragraph (1) of section 207(d) of title 18, United States Code.

“(3) DIRECTOR.—The term ‘Director’ means the Director of the Office of Government Ethics.

“(4) EXECUTIVE BRANCH.—The term ‘executive branch’ has the meaning given that term in section 109.

“(5) FORMER CLIENT.—The term ‘former client’—

“(A) means a person for whom a covered employee served personally as an agent, attorney, or consultant during the 2-year period ending on the date before the date on which the covered employee begins service in the Federal Government; and

“(B) does not include any agency or instrumentality of the Federal Government.

“(6) FORMER EMPLOYER.—The term ‘former employer’—

“(A) means a person for whom a covered employee served as an employee, officer, director, trustee, agent, attorney, consultant, or contractor during the 2-year period ending on the date before the date on which the covered employee begins service in the Federal Government; and

“(B) does not include—

“(i) an entity in the Federal Government, including an executive branch agency;

“(ii) a State or local government;

“(iii) the District of Columbia;

“(iv) an Indian tribe, as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304); or

“(v) the government of a territory or possession of the United States.

“(7) PARTICULAR MATTER.—The term ‘particular matter’ has the meaning given that term in section 207(i) of title 18, United States Code.

Ҥ 602. Conflict of interest and eligibility standards

“(a) In General.—A covered employee may not participate personally and substantially in a particular matter in which the covered employee knows or reasonably should have known that a former employer or former client of the covered employee has a financial interest.

“(b) Waiver.—

“(1) IN GENERAL.—

“(A) AGENCY HEADS.—With respect to the head of a covered agency who is a covered employee, the Designated Agency Ethics Official for the Executive Office of the President, in consultation with the Director, may grant a written waiver of the restrictions under subsection (a) before the head engages in the action otherwise prohibited by such subsection if the Designated Agency Ethics Official for the Executive Office of the President determines and certifies in writing that, in light of all the relevant circumstances, the interest of the Federal Government in the head’s participation outweighs the concern that a reasonable person may question the integrity of the agency’s programs or operations.

“(B) OTHER COVERED EMPLOYEES.—With respect to any covered employee not covered by subparagraph (A), the head of the covered agency employing the covered employee, in consultation with the Director, may grant a written waiver of the restrictions under subsection (a) before the covered employee engages in the action otherwise prohibited by such subsection if the head of the covered agency determines and certifies in writing that, in light of all the relevant circumstances, the interest of the Federal Government in the covered employee’s participation outweighs the concern that a reasonable person may question the integrity of the agency’s programs or operations.

“(2) PUBLICATION.—For any waiver granted under paragraph (1), the individual who granted the waiver shall—

“(A) provide a copy of the waiver to the Director not more than 48 hours after the waiver is granted; and

“(B) publish the waiver on the website of the applicable agency not more than 30 calendar days after granting such waiver.

“(3) REVIEW.—Upon receiving a written waiver under paragraph (1)(A), the Director shall—

“(A) review the waiver to determine whether the Director has any objection to the issuance of the waiver; and

“(B) if the Director so objects—

“(i) provide reasons for the objection in writing to the head of the agency who granted the waiver not more than 15 calendar days after the waiver was granted; and

“(ii) publish the written objection on the website of the Office of Government Ethics not more than 30 calendar days after the waiver was granted.

Ҥ 603. Penalties and injunctions

“(a) Criminal Penalties.—

“(1) IN GENERAL.—Any person who violates section 602 shall be fined under title 18, United States Code, imprisoned for not more than 1 year, or both.

“(2) WILLFUL VIOLATIONS.—Any person who willfully violates section 602 shall be fined under title 18, United States Code, imprisoned for not more than 5 years, or both.

“(b) Civil Enforcement.—

“(1) IN GENERAL.—The Attorney General may bring a civil action in an appropriate district court of the United States against any person who violates, or whom the Attorney General has reason to believe is engaging in conduct that violates, section 602.

“(2) CIVIL PENALTY.—

“(A) IN GENERAL.—If the court finds by a preponderance of the evidence that a person violated section 602, the court shall impose a civil penalty of not more than the greater of—

“(i) $100,000 for each violation; or

“(ii) the amount of compensation the person received or was offered for the conduct constituting the violation.

“(B) RULE OF CONSTRUCTION.—A civil penalty under this subsection may be in addition to any other criminal or civil statutory, common law, or administrative remedy available to the United States or any other person.

“(3) INJUNCTIVE RELIEF.—

“(A) IN GENERAL.—In a civil action brought under paragraph (1) against a person, the Attorney General may petition the court for an order prohibiting the person from engaging in conduct that violates section 602.

“(B) STANDARD.—The court may issue an order under subparagraph (A) if the court finds by a preponderance of the evidence that the conduct of the person violates section 602.

“(C) RULE OF CONSTRUCTION.—The filing of a petition seeking injunctive relief under this paragraph shall not preclude any other remedy that is available by law to the United States or any other person.”.

SEC. 8004. PROHIBITION OF PROCUREMENT OFFICERS ACCEPTING EMPLOYMENT FROM GOVERNMENT CONTRACTORS.

(a) Expansion Of Prohibition On Acceptance By Former Officials Of Compensation From Contractors.—Section 2104 of title 41, United States Code, is amended—

(1) in subsection (a)—

(A) in the matter preceding paragraph (1)—

(i) by striking “or consultant” and inserting “attorney, consultant, subcontractor, or lobbyist”; and

(ii) by striking “one year” and inserting “2 years”; and

(B) in paragraph (3), by striking “personally made for the Federal agency” and inserting “participated personally and substantially in”; and

(2) by striking subsection (b) and inserting the following:

“(b) Prohibition On Compensation From Affiliates And Subcontractors.—A former official responsible for a Government contract referred to in paragraph (1), (2), or (3) of subsection (a) may not accept compensation for 2 years after awarding the contract from any division, affiliate, or subcontractor of the contractor.”.

(b) Requirement For Procurement Officers To Disclose Job Offers Made To Relatives.—Section 2103(a) of title 41, United States Code, is amended in the matter preceding paragraph (1) by inserting after “that official” the following: “, or for a relative (as defined in section 3110 of title 5) of that official,”.

(c) Requirement On Award Of Government Contracts To Former Employers.—

(1) IN GENERAL.—Chapter 21 of division B of subtitle I of title 41, United States Code, is amended by adding at the end the following new section:

“§ 2108. Prohibition on involvement by certain former contractor employees in procurements “An employee of the Federal Government may not participate personally and substantially in any award of a contract to, or the administration of a contract awarded to, a contractor that is a former employer of the employee during the 2-year period beginning on the date on which the employee leaves the employment of the contractor.”.

(2) TECHNICAL AND CONFORMING AMENDMENT.—The table of sections for chapter 21 of title 41, United States Code, is amended by adding at the end the following new item:

“2108. Prohibition on involvement by certain former contractor employees in procurements. ”.

(d) Regulations.—The Director of the Office of Government Ethics, in consultation with the Administrator of General Services, shall promulgate regulations to carry out and ensure the enforcement of chapter 21 of title 41, United States Code, as amended by this section.

(e) Monitoring And Compliance.—The Administrator of General Services, in consultation with designated agency ethics officials (as that term is defined in section 109(3) of the Ethics in Government Act of 1978 (5 U.S.C. App.)), shall monitor compliance with such chapter 21 by individuals and agencies.

SEC. 8005. REVOLVING DOOR RESTRICTIONS ON EMPLOYEES MOVING INTO THE PRIVATE SECTOR.

(a) In General.—Subsection (c) of section 207 of title 18, United States Code, is amended—

(1) in the subsection heading, by striking “One-Year” and inserting “Two-Year”;

(2) in paragraph (1)—

(A) by striking “1 year” in each instance and inserting “2 years”; and

(B) by inserting “, or conducts any lobbying activity to facilitate any communication to or appearance before,” after “any communication to or appearance before”; and

(3) in paragraph (2)(B), by striking “1-year” and inserting “2-year”.

(b) Application.—The amendments made by subsection (a) shall apply to any individual covered by subsection (c) of section 207 of title 18, United States Code, separating from the civil service on or after the date of enactment of this Act.

SEC. 8006. GUIDANCE ON UNPAID EMPLOYEES.

(a) In General.—Not later than 120 days after the date of enactment of this Act, the Director of the Office of Government Ethics shall issue guidance on ethical standards applicable to unpaid employees of an agency.

(b) Definitions.—In this section—

(1) the term “agency” includes the Executive Office of the President and the White House; and

(2) the term “unpaid employee” includes any individual occupying a position at an agency and who is unpaid by operation of section 3110 of title 5, United States Code, or any other provision of law, but does not include any employee who is unpaid due to a lapse in appropriations.

SEC. 8007. LIMITATION ON USE OF FEDERAL FUNDS AND CONTRACTING AT BUSINESSES OWNED BY CERTAIN GOVERNMENT OFFICERS AND EMPLOYEES.

(a) Limitation On Federal Funds.—Beginning in fiscal year 2022 and in each fiscal year thereafter, no Federal funds may be obligated or expended for purposes of procuring goods or services at any business owned or controlled by a covered individual or any family member of such an individual, unless such obligation or expenditure of funds is authorized under the Presidential Protection Assistance Act of 1976 (Public Law 94–524).

(b) Prohibition On Contracts.—No Executive agency may enter into or hold a contract with a business owned or controlled by a covered individual or any family member of such an individual.

(c) Determination Of Ownership.—For purposes of this section, a business shall be deemed to be owned or controlled by a covered individual or any family member of such an individual if the covered individual or member of family (as the case may be)—

(1) is a member of the board of directors or similar governing body of the business;

(2) directly or indirectly owns or controls more than 50 percent of the voting shares of the business; or

(3) is the beneficiary of a trust which owns or controls more than 50 percent of the business and can direct distributions under the terms of the trust.

(d) Definitions.—In this section:

(1) COVERED INDIVIDUAL.—The term “covered individual” means—

(A) the President;

(B) the Vice President;

(C) the head of any Executive department (as that term is defined in section 101 of title 5, United States Code); and

(D) any individual occupying a position designated by the President as a Cabinet-level position.

(2) FAMILY MEMBER.—The term “family member” means an individual with any of the following relationships to a covered individual:

(A) Spouse, and parents thereof.

(B) Sons and daughters, and spouses thereof.

(C) Parents, and spouses thereof.

(D) Brothers and sisters, and spouses thereof.

(E) Grandparents and grandchildren, and spouses thereof.

(F) Domestic partner and parents thereof, including domestic partners of any individual in subparagraphs (A) through (E).

(3) EXECUTIVE AGENCY.—The term “Executive agency” has the meaning given that term in section 105 of title 5, United States Code.