Bill Summary
The "Stop Foreign Payoffs Act" is a proposed bill that would amend the Ethics in Government Act of 1978. It would require high-ranking government officials and their family members to divest from any foreign financial interests they may hold. This means they would have to sell or put into a blind trust any stocks, bonds, or other investments they have in foreign businesses. The bill also prohibits these officials from receiving any payments from foreign businesses. The Attorney General would have the power to bring a civil action against individuals who knowingly or negligently violate these provisions, and penalties could include fines. The bill defines "covered individuals" as the President, Members of Congress, cabinet-level officials, and their family members. The Director of the Office of Government Ethics and the House and Senate Ethics Committees would be responsible for creating regulations to implement these requirements for the executive and legislative branches, respectively.
Possible Impacts
1. The "Stop Foreign Payoffs Act" could affect senior government officials and their families by requiring them to divest from any foreign financial interests they may have. This could potentially limit their financial investments and sources of income, and may require them to sell off assets or place them in a blind trust.
2. The Act could also affect foreign businesses by prohibiting covered individuals from receiving any payments from them. This could potentially impact business relationships and partnerships between foreign businesses and government officials.
3. The Act could also have an impact on the political landscape, as it limits the financial interests of high-ranking government officials and aims to prevent any potential conflicts of interest. This could potentially lead to a more transparent and ethical government.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7526 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 7526
To amend the Ethics in Government Act of 1978 to require senior
Government officials and their family members to divest foreign
financial interests, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 9, 2020
Mr. Golden introduced the following bill; which was referred to the
Committee on Oversight and Reform, and in addition to the Committee on
House Administration, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Ethics in Government Act of 1978 to require senior
Government officials and their family members to divest foreign
financial interests, 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 ``Stop Foreign Payoffs Act''.
SEC. 2. DIVESTITURE OF FOREIGN FINANCIAL INTERESTS.
(a) In General.--The Ethics in Government Act of 1978 (5 U.S.C.
App.) is amended by adding after title V the following:
``TITLE VI--LIMITATION ON FOREIGN FINANCIAL INTERESTS
``Sec. 601. Limitation on foreign financial interests
``(a) Divestiture.--
``(1) In general.--A covered individual may not hold any
foreign financial interest, and shall divest of any such
interest by--
``(A) converting each such interest to cash or
other investment; or
``(B) placing each such interest in a qualified
blind trust as defined in section 102(f)(3) or a
diversified trust under section 102(f)(4)(B).
``(2) Application.--
``(A) Not later than 30 days after the date
regulations are promulgated to carry out this section,
a covered individual holding any foreign financial
interest on such date shall divest of such interest
pursuant to paragraph (1).
``(B) Within 30 days that an individual assumes an
office described under subparagraph (A), (B), or (C) of
subsection (d)(1), such individual, and any applicable
individual described under subparagraph (D) of such
subsection, shall divest of such interest pursuant to
paragraph (1).
``(b) Prohibition on Receiving Foreign Payments.--A covered
individual may not receive any wage, salary, dividend, or any other
payment from any foreign business.
``(c) Enforcement.--
``(1) In general.--The Attorney General may bring a civil
action in any appropriate United States district court against
any individual who knowingly and willfully violates the
provisions of this section. The court in which such action is
brought may assess against such individual a civil penalty in
any amount not to exceed twice the value of any foreign
financial interest held, or any unlawfully foreign payment
received, in violation of this section.
``(2) Negligent violations.--The Attorney General may bring
a civil action in any appropriate United States district court
against any individual who negligently violates the provisions
of this section. The court in which such action is brought may
assess against such individual a civil penalty in any amount
not to exceed the value of any foreign financial interest held,
or any unlawfully foreign payment received, in violation of
this section.
``(d) Definitions.--For purposes of this section--
``(1) the term `covered individual' means--
``(A) the President;
``(B) a Member of Congress (as that term is defined
in section 2106 of title 5, United States Code);
``(C) any cabinet-level position within the
executive branch of Government, including the head of
any executive department (as that term is defined in
section 101 of title 5, United States Code); and
``(D) the spouse, son, daughter, son-in-law, or
daughter-in-law of any individual described in
subparagraph (A), (B), or (C);
``(2) the term `foreign business' means a partnership,
association, corporation, organization, or other combination of
persons organized under the laws of or having its principal
place of business in a foreign country; and
``(3) the term `foreign financial interest' means any
financial interest in a foreign business, including a stock,
ownership interest, bond, or debt.''.
(b) Regulations.--Not later than 120 days after the date of
enactment of this Act--
(1) with respect to covered individuals (as that term is
described in subsection (d)(1) of section 601 of the Ethics in
Government Act of 1978, as added in subsection (a)) in the
executive branch (including the Vice President), the Director
of the Office of Government Ethics shall promulgate regulations
to carry out such section 601; and
(2) with respect to covered individuals in the legislative
branch, the Committee on Ethics of the House of Representatives
and the Select Committee on Ethics of the Senate shall
promulgate regulations to carry out such section 601.
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