Security Clearance Family Review Act

I 116TH CONGRESS 1ST SESSION H. R. 1561 To amend title 5, United States Code, to prohibit certain acts of nepotism, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MARCH 6, 2019 Mr. GALLEGO introduced the following bill; which was referred to the Committee on Oversight and Reform A BILL To amend title 5, United States Code, to prohibit certain acts of nepotism, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Security Clearance 4 Family Review Act’’. 5 SEC. 2. FINDINGS. 6 Congress finds the following: 7 (1) Chapter 31 of title 5, United States Code, 8 establishes anti-nepotism laws. 9 VerDate Sep 11 2014 18:15 Mar 20, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1561.IH H1561 pamtmann on DSKBFK8HB2PROD with BILLS 2 •HR 1561 IH (2) The specific purpose of the statute was to 1 prevent nepotism and unfair conduct in Federal hir- 2 ing practices. 3 (3) The White House announced Jared 4 Kushner’s Federal employment appointment as sen- 5 ior White House adviser on January 9, 2017. 6 (4) The White House announced Ivanka 7 Trump’s appointment as an official government em- 8 ployee as assistant to the President on March 29, 9 2017. 10 (5) Under section 3110(a)(3) of title 5, United 11 States Code, a daughter or son-in-law constitute a 12 ‘‘relative’’ for purposes of a public official. 13 (6) According to recent reporting by the New 14 York Times, both Mr. Kushner and Ms. Trump re- 15 tain substantial holdings, totaling as much as $740 16 million, that would be impacted based on a decision 17 made by the Government. 18 (7) Question 20A.1 on United States Govern- 19 ment Standard Form 86 (SF 86), which all appli- 20 cants seeking a security clearance must submit, 21 asks: ‘‘Have you, your spouse, or cohabitant ever 22 had any foreign financial interests (such as stocks, 23 property, financial investments, bank accounts, own- 24 ership of corporate entities, corporate interests, or 25 VerDate Sep 11 2014 18:15 Mar 20, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1561.IH H1561 pamtmann on DSKBFK8HB2PROD with BILLS 3 •HR 1561 IH businesses) in which you or they have direct control 1 or direct ownership?’’. 2 (8) Question 20A.2 on such Form asks: ‘‘Have 3 you, your spouse, cohabitant, or dependent children 4 ever had any foreign financial interests that someone 5 controlled on your behalf?’’. 6 (9) Question 20A.3 on such Form asks: ‘‘Have 7 you, your spouse, cohabitant, or dependent children 8 ever owned, or do you anticipate owning, or plan to 9 purchase real estate in a foreign country?’’. 10 (10) Financial disclosures released on March 11 31, 2017, indicate that while both Mr. Kushner and 12 Ms. Trump have divested from direct leadership 13 roles in their previous businesses and real estate in- 14 terests, their financial wealth remains tied to the 15 success of those ventures by way of various trusts 16 and company holdings. 17 (11) President Trump has repeatedly declined 18 to disclose personal or commercial tax returns or 19 divesture agreements. 20 (12) Given President Trump’s refusal to dis- 21 close tax returns or divesture agreements, it is dif- 22 ficult to assess whether Mr. Trump’s relatives suffi- 23 ciently divested in holdings or are subject to foreign 24 financial influence, including possible loans to the 25 VerDate Sep 11 2014 18:15 Mar 20, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1561.IH H1561 pamtmann on DSKBFK8HB2PROD with BILLS 4 •HR 1561 IH Trump Organization or to Mr. Kushner’s businesses 1 from state-owned foreign financial entities, including 2 China’s Anbang Insurance Group and Russia’s 3 VneshEconomBank. 4 SEC. 3. LIMITATION ON PROVISION OF SECURITY CLEAR- 5 ANCES TO RELATIVES OF THE PRESIDENT. 6 (a) LIMITATION ON SECURITY CLEARANCES.—Sec- 7 tion 3110(a)(1) of title 5, United States Code, is amend- 8 ed— 9 (1) in subparagraph (C) by striking ‘‘and’’; 10 (2) in subparagraph (D) by striking the semi- 11 colon and inserting ‘‘; and’’; and 12 (3) by adding at the end the following: 13 ‘‘(E) for purposes of subsection (f), an of- 14 fice, agency, or other establishment within the 15 White House or the Executive Office of the 16 President;’’. 17 (b) PROHIBITION ON SECURITY CLEARANCES TO 18 RELATIVES OF THE PRESIDENT.—Section 3110 of title 19 5, United States Code, is amended by adding at the end 20 the following: 21 ‘‘(f) PROHIBITION ON SECURITY CLEARANCES TO 22 RELATIVES OF THE PRESIDENT.— 23 ‘‘(1) IN GENERAL.—Except as provided for 24 under paragraph (2), an agency, including the De- 25 VerDate Sep 11 2014 18:15 Mar 20, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1561.IH H1561 pamtmann on DSKBFK8HB2PROD with BILLS 5 •HR 1561 IH partment of Defense, may not grant eligibility for 1 access to classified information to a relative of the 2 President for the purposes of Federal employment 3 unless a favorable determination is submitted to the 4 head of the agency pursuant to paragraph (2)(C). 5 ‘‘(2) REVIEW PROCESS.— 6 ‘‘(A) REQUEST FOR DETERMINATION.—If 7 the President determines that a relative of the 8 President requires access to classified informa- 9 tion for Federal employment, the President 10 shall submit a letter to the Director of the Of- 11 fice of Government Ethics requesting a deter- 12 mination regarding the relative’s suitability for 13 such access. 14 ‘‘(B) OGE REVIEW.—The Director shall 15 conduct a review to determine whether the ap- 16 plicable relative has any ongoing and substan- 17 tial commercial relationships with state-owned 18 or privately owned foreign enterprises or finan- 19 cial institutions and, if so, whether the relative 20 is ineligible for access to security clearance be- 21 cause of such relationships. 22 ‘‘(C) SUBMISSION.—Not later than 60 23 days after receipt of a letter under subpara- 24 VerDate Sep 11 2014 18:15 Mar 20, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1561.IH H1561 pamtmann on DSKBFK8HB2PROD with BILLS 6 •HR 1561 IH graph (A), the Director shall submit the deter- 1 mination made under subparagraph (B) to— 2 ‘‘(i) the President; 3 ‘‘(ii) the head of the employing agency 4 of the relative; 5 ‘‘(iii) the Committee on Foreign Af- 6 fairs, the Committee on Armed Services, 7 and the Permanent Select Committee on 8 Intelligence of the House of Representa- 9 tives; and 10 ‘‘(iv) the Committee on Foreign Rela- 11 tions, the Committee on Armed Services, 12 and the Select Committee on Intelligence 13 of the Senate.’’. 14 Æ VerDate Sep 11 2014 18:15 Mar 20, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\H1561.IH H1561 pamtmann on DSKBFK8HB2PROD with BILLS