S. 3664 — Reported in Senate

II Calendar No. 488 118th CONGRESS 2d Session S. 3664 [Report No. 118–210] IN THE SENATE OF THE UNITED STATES January 25, 2024Mr. Paul introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs September 9, 2024Reported by Mr. Peters, with an amendmentStrike out all after the enacting clause and insert the part printed in italic A BILL To require executive branch employees to report certain royalties, and for other purposes. 1. Short title This Act may be cited as the Royalty Transparency Act. 2. Financial disclosure reports of executive branch employees (a) Contents of reports Section 13104(a)(1) of title 5, United States Code, is amended— (1) in subparagraph (A), by inserting , subject to subparagraph (C) after employment by the United States Government; and (2) by inserting after subparagraph (B) the following: (C) Royalties received by Government employees Notwithstanding section 12(c) of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3710a (c)) and section 209 of title 35, if the reporting individual is an officer or employee in the executive branch (including a special Government employee, as defined in section 202 of title 18), the source and amount or value of any royalties received by the reporting individual, the spouse of the reporting individual, or a dependent child of the reporting individual during the reporting period described in subsection (d) or (e) of section 13103, as applicable, that were received as a result of an invention developed by the reporting individual in the course of employment of the reporting individual with the United States Government, including any royalty interest payment made under the Federal Technology Transfer Act of 1986 (Public Law 99–502; 100 Stat. 1785), an amendment made by such Act, or any other applicable authority. . (b) Review of reports Section 13107(b) of title 5, United States Code, is amended— (1) in paragraph (1)— (A) in the first sentence, by inserting and shall, notwithstanding section 12 of the Stevenson-Wydler Technology Act of 1980 (15 U.S.C. 3710a) and section 209 of title 35, publish such report on the internet website of the agency, office, Clerk, or Secretary of the Senate, as the case may be after to any person requesting such inspection or copy; and (B) in the second sentence— (i) by inserting , notwithstanding section 12 of the Stevenson-Wydler Technology Act of 1980 (15 U.S.C. 3710a) and section 209 of title 35, after such report shall; and (ii) by inserting and published on the internet website of the agency, office, Clerk, or Secretary of the Senate, as the case may be, after made available for public inspection; (2) by striking paragraph (2) and the matter following paragraph (2); (3) by redesignating paragraph (3) as paragraph (2); and (4) by adding at the end the following: (3) Procedure for releasing reports to Members of Congress Notwithstanding any other provision of law, not later than 30 days after receiving a request from a Member of Congress, any agency or supervising ethics office in the executive branch shall furnish to the Member of Congress an unredacted copy of any report received under this subchapter. . (c) Confidential reports and other additional requirements Section 13109(a)(2) of title 5, United States Code, is amended— (1) by striking Any information and inserting the following: (A) In general Any information ; and (2) by adding at the end the following: (B) Special government employees (i) Definition For the purposes of this subparagraph, the term sensitive personal information does not include the source or amount or value of any royalties received by a reporting individual. (ii) Redaction and publication Upon receipt of a confidential financial disclosure report under this section of submitted by a special Government employee, as defined in section 202 of title 18, the recipient supervising ethics office shall— (I) redact any sensitive personal information from the confidential financial disclosure report; and (II) notwithstanding section 12 of the Stevenson-Wydler Technology Act of 1980 (15 U.S.C. 3710a(c)) and section 209 of title 35, publish the redacted confidential financial disclosure report on the internet website of the agency by which the special Government employee is employed not later than 120 days after the date on which the recipient supervising ethics office receives the confidential financial disclosure report. . 3. General disclosure of royalties (a) Definitions In this section: (1) Agency The term agency means an agency within the executive branch, as defined in section 13101 of title 5, United States Code. (2) Applicable person The term applicable person means any individual or entity that applies to— (A) receive a grant from the Federal Government; or (B) serve as a contractor. (3) Contractor The term contractor has the meaning given the term in section 7101 of title 41, United States Code. (4) Covered royalty The term covered royalty means any royalty received by an applicable person from any party other than the Federal Government. (b) Agency requirement Before receiving any Federal grant or contract, each applicable person shall submit to the agency from which the applicable person seeks the grant or for which the applicable person seeks to serve as a contractor, as applicable, a report disclosing the source and amount or value of all covered royalties received by the applicable person during the 10-year period preceding the date on which the applicable person receives such Federal grant or contract. (c) Procedure for releasing reports to Members of Congress Notwithstanding any other provision of law, not later than 30 days after receiving a request from a Member of Congress, an agency shall furnish to the Member of Congress an unredacted copy of any report submitted under subsection (b). 4. Severability If any provision of this Act, an amendment made by this Act, or the application of such provision or amendment to any person or circumstance is held to be unconstitutional, the remainder of this Act and the amendments made by this Act, and the application of the provision or the amendment to any other person or circumstance, shall not be affected. 1. Short title This Act may be cited as the Royalty Transparency Act. 2. Financial disclosure reports of executive branch employees (a) Individuals required to file (1) In general Section 13103 of title 5, United States Code, is amended— (A) in subsection (f)— (i) in paragraph (11), by striking ; and and inserting a semicolon; (ii) in paragraph (12), by striking the period and inserting ; and; and (iii) by adding at the end the following: (13) any member of— (A) the National Science Advisory Board for Biosecurity; (B) the Advisory Committee on Immunization Practices; (C) the Advisory Commission on Childhood Vaccines; (D) the National Vaccine Advisory Committee; (E) the Vaccines and Related Biological Products Advisory Committee; (F) the Defense Science Board; (G) the Board of Scientific Advisors of the National Cancer Institute; (H) the Homeland Security Science and Technology Advisory Committee; (I) the Medical Review Board Advisory Committee; (J) the President’s Council of Advisors on Science and Technology; or (K) any other advisory committee, as defined in section 1001, including a successor to a committee described in this paragraph, that the Government Accountability Office determines, in accordance with subsection (j)— (i) makes recommendations relating to public health to an agency or the President; and (ii) has had any recommendation fully or partially implemented during the 10 years preceding the determination. ; and (B) by adding at the end the following: (j) Determination regarding advisory committees Not later than 180 days after the date of enactment of the Royalty Transparency Act, and annually thereafter, the Government Accountability Office shall publish a list of each advisory committee that the Government Accountability Office determines— (1) makes recommendations relating to public health to an agency or the President; and (2) has had any recommendation fully or partially implemented during the 10 years preceding the determination. . (2) Sunset Effective on the date that is 5 years after the date of enactment of this Act, section 13103 of title 5, United States Code, as amended by this Act, is amended— (A) in subsection (f)(13), by striking subparagraph (K) and inserting the following: (K) a successor to a committee described in subparagraphs (A) through (J) of this paragraph. ; and (B) by striking subsection (j). (b) Notification of waiver (1) Title 5 Section 13103(i) of title 5, United States Code, is amended— (A) by redesignating paragraphs (1) through (4) as subparagraphs (A) through (D), respectively, and adjusting the margins accordingly; (B) in the matter preceding subparagraph (A), as so redesignated, by striking the supervising ethics office determines and inserting “the supervising ethics office— (1) determines ; (C) in subparagraph (D), as so redesignated, by striking the period at the end and inserting ; and; and (D) by adding at the end the following: (2) provides notification of such waiver to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Accountability of the House of Representatives. . (2) Title 18 Section 208 of title 18, United States Code, is amended by adding at the end the following: (e) Any exemption— (1) granted under paragraph (1) or (3) of subsection (b) shall be immediately reported to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Accountability of the House of Representatives, including a detailed justification for granting the waiver; or (2) granted under subpart (C) of part 2640 of title 5 of the Code of Federal Regulations, or any successor regulation, shall be immediately reported to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Accountability of the House of Representatives, including a detailed justification for granting the waiver. . (c) Contents of reports Section 13104(a)(1) of title 5, United States Code, is amended— (1) in subparagraph (A), by inserting , subject to subparagraph (C) after employment by the United States Government; and (2) by inserting after subparagraph (B) the following: (C) Royalties received by Government employees and committee filers Notwithstanding section 12(c) of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3710a(c)) and section 209 of title 35, if the reporting individual is an officer or employee in the executive branch (including a special Government employee, as defined in section 202 of title 18), or an individual described in section 13103(f)(13), the original source and amount or value of any royalties received by the reporting individual, the spouse of the reporting individual, or a dependent child of the reporting individual during the reporting period described in subsection (d) or (e) of section 13103, as applicable, that were received as a result of an invention developed by the reporting individual in the course of employment of the reporting individual with the United States Government, including any royalty interest payment made under the Federal Technology Transfer Act of 1986 (Public Law 99–502; 100 Stat. 1785), an amendment made by such Act, or any other applicable authority. . (d) Review of reports Section 13107(b) of title 5, United States Code, is amended— (1) in paragraph (1)— (A) in the first sentence, by inserting and shall, in the case of an agency or office and notwithstanding section 12 of the Stevenson-Wydler Technology Act of 1980 (15 U.S.C. 3710a) and section 209 of title 35, publish such report on the internet website of the agency or office, as the case may be after to any person requesting such inspection or copy; and (B) in the second sentence— (i) by inserting , notwithstanding section 12 of the Stevenson-Wydler Technology Act of 1980 (15 U.S.C. 3710a) and section 209 of title 35, after such report shall; and (ii) by inserting and, in the case of an agency or office, published on the internet website of the agency or office, as the case may be, after made available for public inspection; (2) by striking paragraph (2) and the matter following paragraph (2); (3) by redesignating paragraph (3) as paragraph (2); and (4) by adding at the end the following: (3) Procedure for releasing reports to Members of Congress Notwithstanding any other provision of law, not later than 30 days after receiving a request from a Member of Congress, any agency or supervising ethics office in the executive branch shall furnish to the Member of Congress a copy of any report submitted under subsection (b), which shall be unredacted, except with respect to social security numbers. . (e) Confidential reports and other additional requirements Section 13109 of title 5, United States Code, is amended— (1) by redesignating subsections (b) and (c) as subsections (f) and (g), respectively; and (2) by inserting after subsection (a) the following: (b) Royalties received by confidential filers Notwithstanding section 12(c) of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3710a(c)) and section 209 of title 35, the information required to be reported under this section shall include the original source and amount or value of any royalties received by the reporting individual, or the spouse or any dependent child of the reporting individual, that were received as a result of an invention, including any royalty interest payment made under the Federal Technology Transfer Act of 1986 (Public Law 99–502; 100 Stat. 1785), an amendment made by such Act, or any other applicable authority. (c) Procedure for releasing reports to members of congress Notwithstanding any other provision of law, not later than 30 days after receiving a request from a Member of Congress, any agency or supervising ethics office in the executive branch shall furnish to the Member of Congress a copy of any report submitted under subsection (a), which shall be unredacted, except with respect to social security numbers, home addresses, phone numbers, email addresses, and the personally identifiable information of dependents. (d) Reports Not later than 60 days after the date of enactment of the Royalty Transparency Act, and each year thereafter, the head of each agency shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Accountability of the House of Representatives a report relating to confidential financial disclosures of officers and employees under the jurisdiction of such agency for the preceding fiscal year, which shall include— (1) the number of individuals who filed such disclosures with the agency under this section, including, if applicable, the subcomponent of the agency that has jurisdiction over the individual and the reason for filing confidentially; (2) the number of special Government employees, as defined in section 202 of title 18, that are required to file confidential financial disclosure reports with the agency under this section; and (3) any additional information determined to be relevant by the Director of the Office of Government Ethics after consultation with the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Accountability of the House of Representatives. (e) Public Disclosure of Royalties Received by Certain Federal Employees (1) Definition For the purposes of this subsection, the term covered individual means an individual who— (A) is required to file a confidential financial disclosure report under this section; and (B) reports receiving a royalty interest under subsection (b). (2) Requirement Not later than 180 days after the date of enactment of the Royalty Transparency Act, and annually thereafter, each agency shall publish a report on the internet website of the agency, listing— (A) the names of all covered individuals; and (B) the original source and amount or value of any royalties reported under this section by each covered individual. . 3. Preventing organizational conflicts of interest in Federal acquisition (a) In General The Federal Acquisition Regulatory Council and the Office of Management and Budget shall, as appropriate, enact or update any regulation necessary to ensure that conflict of interest reviews for prospective contractors or grantees include reviews of royalties paid to prospective contractors or grantees in the preceding calendar year. (b) Ongoing reviews Not later than 1 year after the date of enactment of this Act, and each year thereafter, each agency conducting any conflict of interest review described in subsection (a) shall report to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Accountability of the House of Representatives on the number of identified cases of potential conflict of interest related to royalty payments and the steps taken to mitigate those cases. 4. Severability If any provision of this Act, an amendment made by this Act, or the application of such provision or amendment to any person or circumstance is held to be unconstitutional, the remainder of this Act and the amendments made by this Act, and the application of the provision or the amendment to any other person or circumstance, shall not be affected. September 9, 2024Reported with an amendment