[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9364 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 9364
To amend title 37, United States Code, to strengthen and expand
restrictions on retired members and members of reserve components of
the uniformed services accepting employment and compensation from
foreign governments, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
August 16, 2024
Mr. Crow (for himself, Mr. Luttrell, Ms. DelBene, and Mr. Ellzey)
introduced the following bill; which was referred to the Committee on
Armed Services
_______________________________________________________________________
A BILL
To amend title 37, United States Code, to strengthen and expand
restrictions on retired members and members of reserve components of
the uniformed services accepting employment and compensation from
foreign governments, 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Retired Officers
Conflict of Interest Act of 2024''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Approval process for employment and compensation.
Sec. 3. Prohibition on members of the Armed Forces negotiating
employment with foreign governments while
on active duty.
Sec. 4. 30-month prohibition on retired members of the Armed Forces
eligible for access to classified
information seeking approval for employment
by foreign governments.
Sec. 5. Notification of obligations.
Sec. 6. Post-retirement employment reporting.
Sec. 7. Penalties.
Sec. 8. Guidance.
Sec. 9. Public reporting.
Sec. 10. Database of employment approvals.
Sec. 11. Definitions.
Sec. 12. Comptroller General of the United States review.
Sec. 13. Effective date; applicability.
SEC. 2. APPROVAL PROCESS FOR EMPLOYMENT AND COMPENSATION.
Section 908 of title 37, United States Code, is amended--
(1) in subsection (a)--
(A) by redesignating paragraphs (1), (2), and (3)
as subparagraphs (A), (B), and (C), respectively, and
by moving such subparagraphs, as so redesignated, 2 ems
to the right;
(B) by striking ``Subject to'' and inserting the
following:
``(1) In general.--Subject to'';
(C) in subparagraph (C), as redesignated, by
striking ``Commissioned Reserve Corps'' and inserting
``Ready Reserve Corps''; and
(D) by adding at the end the following new
paragraph:
``(2) Application to private entities.--The acceptance by a
person described in paragraph (1) of employment (and
compensation related to that employment) or payments or awards
indirectly from a foreign government through a private entity
shall be subject to the provisions of this section to the same
extent and in the same manner as such provisions apply to
employment (and compensation related to that employment) and
payments and awards described in paragraph (1).'';
(2) in subsection (b)--
(A) by inserting ``(1)'' before ``A person''; and
(B) by adding at the end the following new
paragraph:
``(2) Before approving under paragraph (1) the employment of a
person described in subsection (a), the Secretary concerned and the
Secretary of State shall--
``(A) review the offer of employment, including the full
text of the contract or other agreement and any annexes or
statements of work; and
``(B) determine that the employment will not harm the
national security of the United States, including with respect
to complying with requirements under the International Traffic
in Arms Regulations under subchapter M of chapter I of title
22, Code of Federal Regulations.'';
(3) by redesignating subsections (d) and (e) as subsections
(k) and (m), respectively; and
(4) by inserting after subsection (c) the following new
subsection (d):
``(d) Terms of Approval.--An approval provided to a person
described in subsection (a) for employment or compensation under
subsection (b) or for a payment or award under subsection (c) shall
cease to be effective if the person--
``(1) fails to notify the Secretary concerned in writing of
any material change in the nature of the employment or payment
or award not later than 30 days after the change is made; or
``(2) provides inaccurate or incomplete information in a
written notification submitted under paragraph (1).''.
SEC. 3. PROHIBITION ON MEMBERS OF THE ARMED FORCES NEGOTIATING
EMPLOYMENT WITH FOREIGN GOVERNMENTS WHILE ON ACTIVE DUTY.
Section 908 of title 37, United States Code, as amended by section
2, is further amended by inserting after subsection (d) the following
new subsection:
``(e) Prohibition on Negotiation of Employment by Foreign
Governments While on Active Duty.--A member of the armed forces is
prohibited from negotiating or having in effect an agreement for future
employment or compensation, or payment or award, described in
subsection (a) while serving on active duty.''.
SEC. 4. 30-MONTH PROHIBITION ON RETIRED MEMBERS OF THE ARMED FORCES
ELIGIBLE FOR ACCESS TO CLASSIFIED INFORMATION SEEKING
APPROVAL FOR EMPLOYMENT BY FOREIGN GOVERNMENTS.
Section 908 of title 37, United States Code, as amended by section
3, is further amended by inserting after subsection (e) the following
new subsection:
``(f) Prohibition for Retired Members of Armed Forces Eligible for
Access to Classified Information.--
``(1) In general.--Except as provided by paragraph (2), a
retired member of the armed forces who is eligible for access
to classified information is prohibited from seeking approval
under subsection (b) for employment or compensation described
in subsection (a) during the 30-month period beginning on the
date on which the person retires from the armed forces.
``(2) Exception for allied governments.--A person described
in paragraph (1) may accept employment or compensation from the
government of the United Kingdom, Canada, Australia, or New
Zealand if the Secretary concerned and Secretary of State
approve the employment as provided by subsection (b).''.
SEC. 5. NOTIFICATION OF OBLIGATIONS.
Section 908 of title 37, United States Code, as amended by section
4, is further amended by inserting after subsection (f) the following
new subsection:
``(g) Notification of Obligations.--The Secretary concerned shall
ensure that each person described in subsection (a)--
``(1) is notified of the obligations of the person under
this section; and
``(2) certifies to the Secretary that the person
understands such obligations.''.
SEC. 6. POST-RETIREMENT EMPLOYMENT REPORTING.
Section 908 of title 37, United States Code, as amended by section
5, is further amended by inserting after subsection (g) the following
new subsection:
``(h) Post-Retirement Employment Reporting.--
``(1) In general.--During the 5-year period beginning on
the date on which a member of the armed forces retires, that
member shall--
``(A) report employment described in subsection (a)
to the Secretary concerned upon accepting such
employment; and
``(B) annually (or more frequently if the Secretary
concerned considers it appropriate) report such
employment to the Secretary concerned.
``(2) Regulations.--The Under Secretary of Defense for
Personnel and Readiness, in consultation with the Department of
Defense Standards of Conduct Office and the Secretaries of the
military departments, shall issue regulations requiring, as a
condition of service, each member of the armed forces to sign a
written agreement requiring the regular reporting of employment
described in subsection (a) to the Secretary concerned under
paragraph (1).''.
SEC. 7. PENALTIES.
Section 908 of title 37, United States Code, as amended by section
6, is further amended by inserting after subsection (h) the following
new subsection:
``(i) Civil Penalties.--
``(1) In general.--A person who violates subsection (b),
(c), (e), (f), or (h) shall be liable to the United States for
a civil penalty in an amount that is not more than the greater
of--
``(A) $100,000; or
``(B) the amount of compensation that the person
received or was offered for the conduct in violation of
subsection (b), (c), (e), or (f), or the employment
described in subsection (h), as the case may be.
``(2) Additional penalties.--In addition to the penalty
provided for under paragraph (1), a person who violates
subsection (b), (c), (e), or (f) shall, for a period of not
longer than five years--
``(A) be prohibited from accepting employment or
compensation or a payment or award from any foreign
government;
``(B) be prohibited from--
``(i) accepting employment with the Federal
Government;
``(ii) providing services under a contract
awarded by the Federal Government; or
``(iii) serving on a Federal advisory
committee or in any other advisory capacity to
the Federal Government; and
``(C) not be eligible for access to classified
information.
``(3) Appeal.--
``(A) In general.--A person assessed a penalty
under paragraph (1) for a violation of subsection (b),
(c), (e), (f), or (h) may appeal the penalty to the
President.
``(B) Determinations on appeal.--A determination by
the President to rescind or waive part or all of a
penalty for a violation of subsection (b), (c), (e),
(f), or (h) shall be made in writing, submitted to
Congress, and made publicly available by the President
through publication in the Federal Register.
``(4) Savings provision.--The imposition of a penalty under
this subsection does not preclude the application of any other
criminal or civil statutory, common law, or administrative
remedy that is available by law to the United States or any
other person.''.
SEC. 8. GUIDANCE.
Section 908 of title 37, United States Code, as amended by section
7, is further amended by inserting after subsection (i) the following
new subsection:
``(j) Guidance.--Not later than 120 days after the enactment of the
Retired Officers Conflict of Interest Act of 2024, the Secretary of
Defense and the Secretary of State shall issue and make available to
the public guidance with respect to complying with this section.''.
SEC. 9. PUBLIC REPORTING.
Subsection (k) of section 908 of title 37, United States Code, as
redesignated by section 2(2), is further amended--
(1) in paragraph (2), by adding at the end the following
new subparagraph:
``(D) The value of any travel, meals, lodging, or
registration fees provided by the foreign government in
connection with the employment or compensation or payment or
award.''; and
(2) by adding at the end the following new paragraph:
``(3) Each report required by paragraph (1), and all of the
contents of the report, without redaction, shall be made available by
the Secretary of Defense on a publicly accessible internet website not
later than 60 days after the report is submitted under paragraph
(1).''.
SEC. 10. DATABASE OF EMPLOYMENT APPROVALS.
Section 908 of title 37, United States Code, is amended by
inserting after subsection (k), as redesignated by section 2(2), the
following new subsection:
``(l) Database of Employment Approvals.--
``(1) Establishment.--Not later than 1 year after the date
of the enactment of the Retired Officers Conflict of Interest
Act of 2024, the Secretary of Defense shall establish and
maintain an online portal accessible by the public that allows
a member of the public, at no cost to the member, to search,
sort, and download information on approvals of employment
provided under subsection (b).
``(2) Elements.--The portal required by paragraph (1) shall
be designed to provide a member of the public with the ability
to retrieve information on an approval of employment provided
under subsection (b) to a person described in subsection (a)
through searches based on each, and any combination, of the
following:
``(A) The name of the person.
``(B) The armed force of the person.
``(C) The position the person held or holds in the
armed forces, including rank, and in any other former
employing Federal office.
``(D) The foreign government involved.
``(E) The amount of compensation expected or
provided for the employment.
``(F) The details of the person's application for
approval of the employment.
``(G) In the case of a retired member of the armed
forces, the nature of the activities of the member
since retirement.
``(H) Other information relating to the employment.
``(I) Except as provided by paragraph (3), any
other information the Director considers relevant.
``(3) Information prohibited from disclosure.--The portal
required by paragraph (1) may not include an individual's date
of birth, social security number, home address, phone number,
or any other personal identifier other than those specifically
required to be included under paragraph (2).
``(4) Availability of information.--The Director shall
design the portal required by paragraph (1) so that the
contents of the portal may be downloaded in bulk and retrieved
by an application programming interface.
``(5) Duration of retention of information.--The portal
required by paragraph (1) shall retain information with respect
to an approval of employment provided under subsection (b) for
not less than 10 years after the expiration or other
termination of the approval.
``(6) Updates required.--The portal required by paragraph
(1) and the application programming interface referred to in
paragraph (4) shall be enhanced and updated as necessary to
carry out the purposes of this section.''.
SEC. 11. DEFINITIONS.
Section 908 of title 37, United States Code, is amended by
inserting after subsection (m), as redesignated by section 2(2), the
following new subsection:
``(n) Definitions.--In this section:
``(1) Classified information.--The term `classified
information' means any information or material that has been
determined by the United States Government pursuant to an
Executive order, statute, or regulation, to require protection
against unauthorized disclosure for reasons of national
security.
``(2) Eligible for access to classified information.--The
term `eligible for access to classified information' has the
meaning given that term in the procedures established pursuant
to section 801(a) of the National Security Act of 1947 (50
U.S.C. 3161).
``(3) Foreign government.--The term `foreign government'
has the meaning given that term in section 7342(a)(2) of title
5.''.
SEC. 12. COMPTROLLER GENERAL OF THE UNITED STATES REVIEW.
(a) Report Required.--Not later than 2 years after the date of the
enactment of this Act, the Comptroller General of the United States
shall submit to the Committees on Armed Services of the Senate and the
House of Representatives a report on the employment by foreign
governments of former officers of the Armed Forces covered by section
908 of title 37, United States Code.
(b) Elements.--The report required by subsection (a) shall include
an assessment of--
(1) the processes in place at the Department of State and
the Department of Defense--
(A) to identify--
(i) the extent to which former officers
described in subsection (a) were provided
compensation directly or indirectly by foreign
governments during the 5-year period preceding
submission of the report; and
(ii) the extent to which such former
officers who receive compensation from foreign
governments work on contracts or programs of
the Department of Defense, the Department of
State, or the Department of Health and Human
Services--
(I) for which such former officials
personally had program oversight
responsibility or decision-making
authority when they served in the Armed
Forces; or
(II) that are the responsibility of
the agency, office, or command in which
such former officers served; and
(B) to review and approve employment by foreign
governments of such former officers in accordance with
section 908 of title 37, United States Code, as amended
by this Act; and
(2) what is known about the effectiveness of existing
statutes and regulations governing the employment of former
officers of the Armed Forces, including--
(A) section 207 of title 18, United States Code;
(B) section 908 of title 37, United States Code, as
in effect on the day before the date of the enactment
of this Act; and
(C) the Foreign Agents Registration Act of 1938, as
amended (22 U.S.C. 611 et seq.).
(c) Access to Information.--In accordance with the contract clause
required pursuant to section 3841(d) of title 10, United States Code,
and section 4706(d) of title 41, United States Code, contractors shall
provide the Comptroller General with access to information requested by
the Comptroller General for the purpose of preparing the report
required by subsection (a).
SEC. 13. EFFECTIVE DATE; APPLICABILITY.
The amendments made by this Act--
(1) take effect on the date of the enactment of this Act;
and
(2) apply with respect to--
(A) offers of employment or compensation described
in subsection (a) of section 908 of title 37, United
States Code, as amended by this Act, made on or after
the date that is 120 days after such date of enactment;
(B) the provision of any payment, item, or award
described in that subsection on or after that date;
(C) negotiations for employment described in
subsection (e) of that section on or after that date;
and
(D) agreements described in that subsection in
effect on or after that date.
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