Rules of the Road

THE STOCK ACT

On April 4, 2012, the President signed the Stop Trading on Congressional Knowledge Act or STOCK Act (S. 2038), which amended the Ethics in Government Act of 1978 (5 U.S.C. App. § 101 et seq.) The Act has several different provisions, some of which are effective immediately, some which become effective 90 days after enactment, some which become effective on August 31, 2012, and some which do not become effective until 18 months after enactment.

 

Effective Dates of STOCK Act Provisions

Section	Subject	Effective Date
17	Public financial disclosure report filers must report negotiations or agreement for future employment or compensation within 3 business days and recuse if there is a conflict or appearance of a conflict..	Immediate
13	Senate-confirmed Presidential appointees (PAS) must report mortgages on their personal residences.	Immediate
12	OGE 278 filers may not purchase securities at initial public offerings in ways not available to the general public.	Immediate
6	OGE-278 filers must report transactions over $1,000 involving stocks, bonds, and commodities (not mutual funds) within 30 days of notification or 45 days of the transaction. These must be posted on the Agency web site.	July 3, 2012
11(a)	All 2012 OGE 278 reports and extensions of time must be posted on the Agency website. After the effective date, public reports must be posted within 30 days of filing.	Indefinitely Postponed
11(b)	The Office of Government Ethics must develop systems to allow electronic filing of OGE 278s and OGE 450s (confidential financial disclosure reports). The OGE 278 system must be publicly searchable, sortable, and downloadable within 30 days of filing.	October 4, 2013

References on the STOCK Act

• Notification to the Agency Ethics Office about Post-Employment or Compensation Negotiation
  USDA public financial disclosure filers must file this form with the Office of Ethics upon negotiating or agreeeing for any nonfederal compensation or employment, which will follow their USDA employment. (Updated May 3, 2013)
• LA-13-06:Notification of Negotiations for Post-Government Employment or Compensation under Section 17 of the Stock Act. This OGE Legal Advisory clarifies that employees must comply with the notification requirements under section 17 of the STOCK Act when they negotiate for, or have an agreement of, post-government, non-federal compensation for services to be rendered entirely after termination of federal employment (From the Office of Government Ethics)
• LA-13-01:Periodic Reporting of Transactions by Spouses and Dependent Children. This OGE Legal Advisory explains that covered Executive Branch employees must file periodic reports of transactions involving separately owned assets of their spouses or dependent children. This Advisory partly amends the guidance provided in LA-12-04.
  (From the Office of Government Ethics)
• LA-12-04:Public Financial Disclosure: Periodic Transaction Reports. This OGE Legal Advisory explains the STOCK Act provision that requires certain employees to file periodic public reports of their transactions. The Legal Advisory also includes a copy of the new form that employees should use to file their periodic transaction reports (OGE Form 278-T). This legal advisory is partly amended by LA-13-01(above). (From the Office of Government Ethics)
• LA-12-02: Mortgage Reporting Requirement under the STOCK Act. This OGE Section 13 of the STOCK Act requires certain Presidential Appointees with Senate Confirmation to include mortgages secured by their personal residences on their OGE Form 278. (From the Office of Government Ethics)
• LA-12-01: Post-Employment Negotiation and Recusal Requirements under the STOCK Act. This OGE Legal Advisory explains STOCK Act provisions requiring certain employees to: (1) Notify their DAEOs of any negotiation or agreement for future employment or compensation within three business days after commencement of the negotiation or agreement; and (2) Recuse whenever there is a conflict of interest or appearance issue with the entity.
  (From the Office of Government Ethics)
• Text of the STOCK Act
  
• One-page summary of the provisions of the STOCK Act
  (From the USDA Office of Ethics)
• Important Preliminary Guidance on the STOCK Act for USDA Public Financial Disclosure Filers
  (From Director, USDA Office of Ethics, Updated April 18, 2012)
• Reminder on the STOCK Act for USDA Public Financial Disclosure Filers
  (Filers should delete unnecessary personal information from financial disclosure forms. From Director, USDA Office of Ethics, Updated April 25, 2012)
• Frequently Asked Questions about the STOCK Act
  (From Director, USDA Office of Ethics, Updated April 27, 2012)
• Ethics Advisory: Periodic Transaction Public Disclosure Reports
  (From Director, USDA Office of Ethics, Updated June 29, 2012)

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