[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1679 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 1679
To prohibit stock trading and ownership by Members of Congress and
spouses of Members of Congress, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 21, 2023
Ms. Jayapal (for herself, Mr. Auchincloss, Ms. DeLauro, Mr. Garcia of
Illinois, Mr. Kim of New Jersey, Mr. Nadler, Ms. Norton, Ms. Porter,
Mr. Takano, Mr. Tonko, Mr. Rosendale, and Mr. Buck) introduced the
following bill; which was referred to the Committee on Financial
Services, and in addition to the Committees on Agriculture, House
Administration, and Ways and Means, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To prohibit stock trading and ownership by Members of Congress and
spouses of Members of Congress, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Bipartisan Ban on Congressional
Stock Ownership Act of 2023''.
SEC. 2. BAR ON STOCK TRADING AND OWNERSHIP BY MEMBERS OF CONGRESS AND
SPOUSES.
(a) Definitions.--In this section:
(1) Commodity.--The term ``commodity'' has the meaning
given that term in section 1a of the Commodity Exchange Act (7
U.S.C. 1a).
(2) Congressional ethics committee.--The term
``congressional ethics committee'' has the meaning given that
term in section 13101 of title 5, United States Code.
(3) Diversified.--The term ``diversified'', with respect to
an investment fund, means that the investment fund does not
have a stated policy of overly concentrating its investments.
(4) Member of congress.--The term ``Member of Congress''
has the meaning given that term in section 13101 of title 5,
United States Code.
(5) Security.--The term ``security'' has the meaning given
that term in section 3(a) of Securities Exchange Act of 1934
(15 U.S.C. 78c(a)).
(6) Small business concern.--The term ``small business
concern'' has the meaning given that term under section 3 of
the Small Business Act (15 U.S.C. 632).
(7) Widely held investment fund.--The term ``widely held
investment fund'' means a widely held investment fund described
in 13104(f)(8) of title 5, United States Code.
(b) Divestment.--
(1) In general.--Except as provided in subsection (c), no
Member of Congress or spouse of a Member of Congress may own an
interest in or trade (except as a divestment) any stock, bond,
commodity, future, or other form of security, including an
interest in a hedge fund, a derivative, option, or other
complex investment vehicle.
(2) Implementation.--
(A) Current members.--
(i) In general.--Except as provided in
clause (ii), an individual who is a Member of
Congress on the date of enactment of this Act,
or the spouse of such an individual, shall
complete the divestment of any asset described
in paragraph (1) by not later than 180 days
after the date of enactment of this Act.
(ii) Certain assets.--For an asset
described in paragraph (1) that is an interest
in a hedge fund, venture capital fund, or other
privately held complex investment vehicle, an
individual who is a Member of Congress on the
date of enactment of this Act, or the spouse of
such an individual, shall complete the
divestment of the asset by not later than 5
years after the date of enactment of this Act.
(B) New members.--
(i) In general.--Except as provided in
clause (ii), an individual who becomes a Member
of Congress after the date of enactment of this
Act, or who is the spouse of such an
individual, shall complete the divestment of
any asset described in paragraph (1) by not
later than 180 days after the date on which the
individual becomes a Member of Congress.
(ii) Certain assets.--For an asset
described in paragraph (1) that is an interest
in a hedge fund, venture capital fund, or other
privately held complex investment vehicle, an
individual who becomes a Member of Congress
after the date of enactment of this Act, or who
is the spouse of such an individual, shall
complete the divestment of the asset by not
later than 5 years after the date on which the
individual becomes a Member of Congress.
(C) Divestment of assets received while a member.--
An individual serving as a Member of Congress, or the
spouse of such an individual, who receives any asset
described in paragraph (1) during the period of such
service, such as from an inheritance, shall complete
the divestment of the asset by not later than 180 days
after the date on which the individual or spouse
receives the asset.
(c) Exceptions.--Nothing in this section shall be construed to
prevent--
(1) a Member of Congress or spouse of a Member of Congress
from owning or trading--
(A) a widely held investment fund, if the widely
held investment fund--
(i) does not present a conflict of
interest; and
(ii) is diversified;
(B) shares of Settlement Common Stock issued under
section 7(g)(1)(A) of the Alaska Native Claims
Settlement Act (43 U.S.C. 1606(g)(1)(A));
(C) shares of Settlement Common Stock, as defined
in section 3 of the Alaska Native Claims Settlement Act
(43 U.S.C. 1602);
(D) a United States Treasury bill, note, or bond;
(E) an investment fund held in a Federal, State, or
local government employee retirement plan;
(F) an interest in a small business concern, if the
small business concern does not present a conflict of
interest; or
(G) any asset described in subsection (b)(1)
received as compensation from the primary occupation of
the spouse; or
(2) a spouse of a Member of Congress from trading any asset
described in subsection (b)(1) that is not owned by the spouse
or Member of Congress in the course of performing the primary
occupation of the spouse.
(d) Civil Fines.--The Attorney General or the Special Counsel may
bring a civil action in the appropriate United States district court
against any Member of Congress or spouse of a Member of Congress who
engages in conduct constituting a violation of this section and, upon
proof of such conduct by a preponderance of the evidence, such Member
of Congress or spouse shall be subject to a civil penalty of not more
than $50,000 for each violation. The imposition of a civil penalty
under this subsection does not preclude any other criminal or civil
statutory, common law, or administrative remedy, which is available by
law to the United States or any other person.
(e) Nonrecognition of Gain.--
(1) In general.--Paragraph (1) of section 1043(b) of the
Internal Revenue Code of 1986 is amended--
(A) by striking ``and'' at the end of subparagraph
(A);
(B) by redesignating subparagraph (B) as
subparagraph (C);
(C) by inserting after subparagraph (A) the
following new subparagraph:
``(B) any Member of Congress or Member of Congress-
elect, but only with respect to a divestment of
property required by the Bipartisan Ban on
Congressional Stock Ownership Act of 2023, and''; and
(D) by striking ``subparagraph (A)'' in
subparagraph (C), as so redesignated, and inserting
``subparagraph (A) or (B), whichever is applicable''.
(2) Certificate of divestiture.--Subparagraph (B) of
section 1043(b)(2) of such Code is amended--
(A) by striking ``or by'' and inserting ``by''; and
(B) by inserting ``, or by the applicable
congressional ethics committee, in the case of Members
of Congress, Members of Congress-elect, and spouses of
Members of Congress and Members of Congress-elect''
after ``judicial officers''.
(3) Effective date.--The amendments made by this subsection
shall apply to sales of property after the date of the
enactment of this Act.
(f) Interpretive Guidance.--The Select Committee on Ethics of the
Senate and the Committee on Ethics of the House of Representatives
shall issue interpretive guidance regarding relevant terms not defined
in this Act or elsewhere in statute.
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