Conflicts of interest and ethics requirements

(a) Definitions In this section: (1) Covered contract The term covered contract means a contract with the Board for— (A) the construction, ownership, operation, or management of any storage or related facility used for the Reserve; or (B) the supply, transportation, or handling of fertilizer product inputs for the Reserve. (2) Covered entity The term covered entity means any entity that enters into a covered contract. (3) Covered official The term covered official means— (A) the President; (B) the Vice President; (C) any individual serving in a position in the Executive Office of the President; (D) any member of the Board; (E) any officer or employee of the Strategic Fertilizer Reserve Agency; and (F) any other employee of the Strategic Fertilizer Reserve Agency designated by the Board by regulation as having significant decision making authority with respect to the Reserve. (4) Financial interest The term financial interest includes equity, stock, partnership shares, limited liability company interests, options, warrants, beneficial interests held through a trust or investment vehicle (other than a widely held mutual fund or index fund), or any other arrangement under which the applicable covered official or immediate family member may derive pecuniary benefit from the performance of a covered entity. (5) Immediate family member The term immediate family member means a spouse, domestic partner, parent, child, or sibling, including any such relation by marriage. (b) Prohibition on financial interests No covered official, and no immediate family member of a covered official, may hold, directly or indirectly, any financial interest in any covered entity. (c) Certification; disclosures (1) In general Before entering into a covered contract, the Board shall require the covered entity— (A) to certify that, to the best of its knowledge and belief, no covered official or immediate family member of any covered official holds a financial interest in the covered entity prohibited by subsection (b); and (B) to fully disclose all lobbying activities and lobbyist engagements related to the program under this Act or any other matter involving the Board or other Federal agencies that have a direct and predictable effect on the covered contract. (2) Disclosure reports The Board shall require each covered official, on an annual basis and on assuming a position as a covered official, to file a confidential report disclosing any financial interests that may be relevant under subsection (b). (d) Recusal and divestiture (1) In general Any covered official who becomes aware that the covered official or an immediate family member of the covered official holds a financial interest prohibited by subsection (b) shall promptly— (A) notify the designated agency ethics official of the Board; and (B) either— (i) divest of the financial interest; or (ii) recuse himself or herself from any official action affecting the covered entity in which the financial interest is held, in accordance with applicable ethics laws (including regulations). (2) Regulations The Board shall issue regulations establishing procedures and timelines for divestiture and recusal under clauses (i) and (ii) of paragraph (1)(B). (e) Enforcement (1) Covered officials A knowing and willful violation of subsection (b), (c)(2), or (d) by a covered official— (A) shall be grounds for disciplinary action, up to and including removal from office; and (B) may be referred to the Office of Government Ethics and appropriate law enforcement authorities for investigation and potential prosecution under applicable criminal or civil conflict of interest statutes, including sections 201 through 209 of title 18, United States Code, and related provisions. (2) Covered entities A knowing and willful false certification or disclosure by a covered entity under subsection (c)(1)— (A) shall constitute a material breach of the covered contract; and (B) may result in suspension, debarment, civil penalties, or other remedies as provided by law. (f) Public transparency To the extent consistent with law and the protection of confidential business information, the Board shall make publicly available— (1) a list of covered entities; and (2) a general description of the ethics and conflict of interest policies applicable to the Reserve.