Section 988 - Prohibition on ownership or trading of stocks in certain companies by certain officials of the Department of Defense(a) PROHIBITION.-Except as provided in subsection (b), a covered official of the Department of Defense may not own or purchase publicly traded stock of a company if that company is one of the 10 entities awarded the most amount of contract funds by the Department of Defense in a fiscal year during the five preceding fiscal years.(b) EXCEPTIONS.-This section shall not apply to the purchase or ownership of a publicly traded stock of a company otherwise described in subsection (a) as follows:(1) If the aggregate market value of the holdings of the covered official, and the spouse and minor children of the covered official, in the stock of that company, both before and after purchase (in the case of a purchase), does not exceed the de minimis threshold established in section 2640.202(a)(2) of title 5, Code of Federal Regulations.(2) If the stock is purchased and owned as part of an Excepted Investment Fund or mutual fund.(c) DEFINITIONS.-In this section:(1) The term "covered official of the Department of Defense" means any of the following:(A) A civilian appointed to a position in the Department of Defense by the President, by and with the advice and consent of the Senate.(B) If serving in a key acquisition position (as designated by the Secretary of Defense or the Secretary concerned for purposes of this section), the following:(ii) A civilian officer or employee in a Senior Executive Service, Senior-Level, or Scientific or Professional position.(2) The term "Excepted Investment Fund" means a widely-held investment fund described in section 102(f)(8) of the Ethics in Government Act of 1978 (5 U.S.C. App.).11See References in Text note below.
Added Pub. L. 116-92, div. A, title IX, §921(a), Dec. 20, 2019, 133 Stat. 1560.EDITORIAL NOTES
REFERENCES IN TEXTSection 102(f)(8) of the Ethics in Government Act of 1978, referred to in subsec. (c)(2), is section 102(f)(8) of Pub. L. 95-521, which was set out in the Appendix to Title 5, Government Organization and Employees, and was repealed and restated as section 13104(f)(8) of Title 5 by Pub. L. 117-286, §§3(c), (7), Dec. 27, 2022, 136 Stat. 4284, 4361.
- spouse
- "spouse" means husband or wife, as the case may be.
- Secretary concerned
- The term "Secretary concerned" means-(A) the Secretary of the Army, with respect to matters concerning the Army;(B) the Secretary of the Navy, with respect to matters concerning the Navy, the Marine Corps, and the Coast Guard when it is operating as a service in the Department of the Navy;(C) the Secretary of the Air Force, with respect to matters concerning the Air Force and the Space Force; and(D) the Secretary of Homeland Security, with respect to matters concerning the Coast Guard when it is not operating as a service in the Department of the Navy.
- armed forces
- The term "armed forces" means the Army, Navy, Air Force, Marine Corps, Space Force, and Coast Guard.
- grade
- The term "grade" means a step or degree, in a graduated scale of office or military rank, that is established and designated as a grade by law or regulation.
- officer
- The term "officer" means a commissioned or warrant officer.