Section 1 Short title
This Act may be cited as the “Jumpstarting Accountability Relating to Ethical Disclosures Act” or the “JARED Act”.
Jumpstarting Accountability Relating to Ethical Disclosures Act
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.
Sec. 2 Prohibition relating to foreign entities
Section 207(f) of title 18, United States Code, is amended—
by redesignating paragraph (3) as paragraph (4);
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.”
in paragraph (4), as redesignated by paragraph (1)—
by striking “this subsection,” and inserting “this subsection—”;
by striking “the term” and inserting “(A) the term”;
by striking the period and inserting a semicolon; and
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).”