[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1171 Reported in Senate (RS)]
<DOC>
Calendar No. 729
118th CONGRESS
2d Session
S. 1171
[Report No. 118-309]
To amend chapter 131 of title 5, United States Code, to prevent Members
of Congress and their spouses and dependent children from trading
stocks and owning stocks, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 17, 2023
Mr. Merkley (for himself, Mr. Brown, Mrs. Gillibrand, Mr. King, Mr.
Sanders, Ms. Stabenow, Mrs. Shaheen, Ms. Duckworth, Mr. Casey, Mr.
Welch, Mr. Lujan, Mr. Fetterman, Ms. Hirono, Ms. Cortez Masto, Ms.
Baldwin, Mr. Van Hollen, Mr. Cardin, Mr. Tester, Mr. Heinrich, Mr.
Kaine, Mr. Blumenthal, Mr. Schatz, Ms. Rosen, and Ms. Warren)
introduced the following bill; which was read twice and referred to the
Committee on Homeland Security and Governmental Affairs
December 19 (legislative day, December 16), 2024
Reported by Mr. Peters, with an amendment
[Strike out all after the enacting clause and insert the part printed
in italic]
_______________________________________________________________________
A BILL
To amend chapter 131 of title 5, United States Code, to prevent Members
of Congress and their spouses and dependent children from trading
stocks and owning stocks, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
<DELETED>SECTION 1. SHORT TITLE.</DELETED>
<DELETED> This Act may be cited as the ``Ending Trading and Holdings
In Congressional Stocks (ETHICS) Act''.</DELETED>
<DELETED>SEC. 2. PLACEMENT OF CERTAIN ASSETS OF MEMBERS OF CONGRESS AND
THEIR SPOUSES AND DEPENDENT CHILDREN IN QUALIFIED BLIND
TRUSTS.</DELETED>
<DELETED> (a) In General.--Chapter 131 of title 5, United States
Code, is amended by adding at the end the following:</DELETED>
<DELETED>``Subchapter IV--Certain Assets of Members of Congress and
Their Spouses and Dependent Children</DELETED>
<DELETED>``Sec. 13161. Definitions</DELETED>
<DELETED> ``In this title:</DELETED>
<DELETED> ``(1) Commodity.--The term `commodity' has the
meaning given the term in section 1a of the Commodity Exchange
Act (7 U.S.C. 1a).</DELETED>
<DELETED> ``(2) Covered investment.--</DELETED>
<DELETED> ``(A) In general.--The term `covered
investment' means--</DELETED>
<DELETED> ``(i) an investment in--</DELETED>
<DELETED> ``(I) a
security;</DELETED>
<DELETED> ``(II) a commodity;
or</DELETED>
<DELETED> ``(III) a
future;</DELETED>
<DELETED> ``(ii) any economic interest
comparable to an interest described in clause
(i) that is acquired through synthetic means,
such as the use of a derivative, including an
option, warrant, or other, similar means;
or</DELETED>
<DELETED> ``(iii) any interest described in
clause (i) or (ii) that is held directly, or in
which an individual has an indirect,
beneficial, or economic interest, through--
</DELETED>
<DELETED> ``(I) an investment fund
or holding company;</DELETED>
<DELETED> ``(II) a trust (other than
a qualified blind trust);</DELETED>
<DELETED> ``(III) an employee
benefit plan; or</DELETED>
<DELETED> ``(IV) a deferred
compensation plan, including a carried
interest or other agreement tied to the
performance of an investment, other
than a fixed cash payment.</DELETED>
<DELETED> ``(B) Exclusions.--The term `covered
investment' does not include--</DELETED>
<DELETED> ``(i) a diversified mutual fund
(including any holdings of such a
fund);</DELETED>
<DELETED> ``(ii) a diversified exchange-
traded fund (including any holdings of such a
fund);</DELETED>
<DELETED> ``(iii) a United States Treasury
bill, note, or bond;</DELETED>
<DELETED> ``(iv) compensation from the
primary occupation of the spouse of a Member of
Congress, or any security that is issued or
paid by an operating business that is the
primary employer of such a spouse that is
issued or paid to such a spouse;</DELETED>
<DELETED> ``(v) holding and acquiring any
security that is issued or paid as compensation
from corporate board service by the spouse of a
Member of Congress, including the dividend
reinvestment in the same security received from
the corporate board service by the spouse of a
Member of Congress;</DELETED>
<DELETED> ``(vi) any covered investment that
is traded by the spouse of a Member of Congress
in the course of performing the primary
occupation of such a spouse, provided the
investment is not owned by a covered
person;</DELETED>
<DELETED> ``(vii) any investment fund held
in a Federal, State, or local government
employee retirement plan;</DELETED>
<DELETED> ``(viii) a tax-free State or
municipal bond;</DELETED>
<DELETED> ``(ix) an interest in a small
business concern, if the supervising ethics
office determines that the small business
concern does not present a conflict of
interest, and, in the case of an investment in
a family farm or ranch that qualifies as an
interest in a small business concern, a future
or commodity directly related to the farming
activities and products of the farm or
ranch;</DELETED>
<DELETED> ``(x) holding investment-grade
corporate bonds, provided that the corporate
bonds are held by an individual who is a
covered person on the date of enactment of the
Ending Trading and Holdings In Congressional
Stocks (ETHICS) Act;</DELETED>
<DELETED> ``(xi) any share 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)); or</DELETED>
<DELETED> ``(xii) any share of Settlement
Common Stock, as defined in section 3 of the
Alaska Native Claims Settlement Act (43 U.S.C.
1602).</DELETED>
<DELETED> ``(3) Covered person.--The term `covered person'
means--</DELETED>
<DELETED> ``(A) a Member of Congress; and</DELETED>
<DELETED> ``(B) a spouse or dependent child of a
Member of Congress.</DELETED>
<DELETED> ``(4) Custody.--The term `custody' has the meaning
given the term in section 275.206(4)-2(d) of title 17, Code of
Federal Regulations (as in effect on the date of enactment of
the Ending Trading and Holdings In Congressional Stocks
(ETHICS) Act or a successor regulation).</DELETED>
<DELETED> ``(5) Dependent child.--The term `dependent child'
means, with respect to any Member of Congress any individual
who is--</DELETED>
<DELETED> ``(A) under the age of 19; and</DELETED>
<DELETED> ``(B) a dependent of the Member of
Congress within the meaning of section 152 of the
Internal Revenue Code of 1986.</DELETED>
<DELETED> ``(6) Diversified.--The term `diversified', with
respect to a fund, trust, or plan, means that the fund, trust,
or plan does not have a stated policy of concentrating its
investments in any industry, business, or single country other
than the United States.</DELETED>
<DELETED> ``(7) Future.--The term `future' means--</DELETED>
<DELETED> ``(A) a security future (as defined in
section 3(a) of the Securities Exchange Act of 1934 (15
U.S.C. 78c(a))); and</DELETED>
<DELETED> ``(B) any other contract for the sale of a
commodity for future delivery.</DELETED>
<DELETED> ``(8) Illiquid investment.--The term `illiquid
investment' means an interest in a private fund, as defined in
section 202(a)(29) of the Investment Advisers Act of 1940 (15
U.S.C. 80b-2).</DELETED>
<DELETED> ``(9) Initial property.--The term `initial
property' means an asset or financial interest transferred to a
qualified blind trust by, or on behalf of, an interested party
or a relative of an interested party, regardless of whether the
asset or financial interest is transferred to the qualified
blind trust on or after the date of establishment of the
qualified blind trust.</DELETED>
<DELETED> ``(10) Interested party.--The term `interested
party' has the meaning given the term in section
13104(f)(3)(E).</DELETED>
<DELETED> ``(11) Member of congress; supervising ethics
office.--The terms `Member of Congress' and `supervising ethics
office' have the meaning given those terms in section
13101.</DELETED>
<DELETED> ``(12) Qualified blind trust.--The term `qualified
blind trust' means a qualified blind trust (as defined in
section 13104(f)(3)) that has been approved in writing by the
applicable supervising ethics office under section
13104(f)(3)(D).</DELETED>
<DELETED> ``(13) Security.--The term `security' has the
meaning given the term in section 3(a) of the Securities
Exchange Act of 1934 (15 U.S.C. 78c(a)).</DELETED>
<DELETED> ``(14) Small business concern.--The term `small
business concern' has the meaning given the term under section
3 of the Small Business Act (15 U.S.C. 632).</DELETED>
<DELETED>``Sec. 13162. Trading covered investments</DELETED>
<DELETED> ``(a) Ban on Trading.--Except as provided in subsections
(b) and (c)--</DELETED>
<DELETED> ``(1) effective on the date of enactment of the
Ending Trading and Holdings In Congressional Stocks (ETHICS)
Act, a Member of Congress shall not purchase any covered
investment;</DELETED>
<DELETED> ``(2) effective on the date that is 90 days after
the date of enactment of the Ending Trading and Holdings In
Congressional Stocks (ETHICS) Act, a Member of Congress shall
not sell any covered investment, except as provided in section
13163(a)(2); and</DELETED>
<DELETED> ``(3) on and after the effective date described in
section 13163(k), a covered person that is a spouse or
dependent child of a Member of Congress shall not purchase any
covered investment or sell any covered investment, except as
provided in section 13163(a)(2).</DELETED>
<DELETED> ``(b) Optional Divestment Window.--Notwithstanding
subsection (a)--</DELETED>
<DELETED> ``(1) a Member of Congress who is sworn as a
Member of Congress on or before the date of enactment of the
Ending Trading and Holdings In Congressional Stocks (ETHICS)
Act may sell a covered investment within 90 days of the date of
enactment of such act, provided that the Member of Congress may
not sell any covered investment at any time outside of that
period while the Member of Congress serves the term for which
the Member of Congress was elected or is reelected or appointed
as a Member of Congress except as provided in section
13163(a)(2); and</DELETED>
<DELETED> ``(2) a Member of Congress who is sworn as a
Member of Congress after the date of enactment of the Ending
Trading and Holdings In Congressional Stocks (ETHICS) Act may
sell a covered investment within 90 days of commencing the term
of service as a Member of Congress, provided that the Member of
Congress may not sell any covered investment at any time
outside of that period while the Member of Congress serves the
term for which the Member of Congress was elected or is
reelected or appointed as a Member of Congress except as
provided in section 13163(a)(2).</DELETED>
<DELETED> ``(c) Exception.--Notwithstanding subsection (a), a
covered person may divest a covered investment as directed by the
relevant supervising ethics office pursuant to this Act.</DELETED>
<DELETED> ``(d) Joint Covered Investment.--Any covered investment
reported to the supervising ethics office as jointly owned by a Member
of Congress and the spouse of the Member of Congress shall be deemed to
be a covered investment of the Member of Congress for purposes of this
section.</DELETED>
<DELETED>``Sec. 13163. Addressing owned covered investments</DELETED>
<DELETED> ``(a) Members of Congress.--</DELETED>
<DELETED> ``(1) Certification.--Not later than 60 days after
the applicable effective date described in subsection (j), a
Member of Congress shall submit to the supervising ethics
office a certification, which the supervising ethics office
shall publish online that certifies that--</DELETED>
<DELETED> ``(A) each covered investment owned by, or
in the custody of, the Member of Congress, or a spouse
or dependent child of the Member of Congress, will, by
the applicable deadline under paragraph (2), be--
</DELETED>
<DELETED> ``(i) divested, as described in
paragraph (2)(B); or</DELETED>
<DELETED> ``(ii) placed in a qualified blind
trust, including through the establishment of a
qualified blind trust for that purpose, if
necessary, as described in paragraph (2)(A);
and</DELETED>
<DELETED> ``(B) no spouse or dependent child of the
Member of Congress owns, or has custody of, covered
investments with a cumulative amount equal to more than
$10,000, in accordance with paragraph (6).</DELETED>
<DELETED> ``(2) Divestiture or placement in qualified blind
trust.--</DELETED>
<DELETED> ``(A) Requirement.--Subject to paragraphs
(3) and (6) and subsection (b)(2), not later than 120
days after the applicable effective date described in
subsection (j), a Member of Congress shall divest, or
place in a qualified blind trust (including by
establishing a qualified blind trust for that purpose,
if necessary), each covered investment owned or in the
custody of--</DELETED>
<DELETED> ``(i) the Member of Congress;
or</DELETED>
<DELETED> ``(ii) a spouse or dependent child
of the Member of Congress.</DELETED>
<DELETED> ``(B) Divestiture.--A covered person shall
divest any covered investment owned by or in the
custody of the covered person that is not placed in a
qualified blind trust not later than the date described
in subparagraph (A), subject to any extension granted
under paragraph (3).</DELETED>
<DELETED> ``(C) Qualified blind trusts.--</DELETED>
<DELETED> ``(i) Mandatory sale of initial
property in qualified blind trust.--</DELETED>
<DELETED> ``(I) In general.--Subject
to clause (ii), if a covered person
places, or has placed before the
applicable effective date described in
subsection (j), 1 or more covered
investments in a qualified blind trust,
the trustee of the qualified blind
trust shall divest any such covered
investment not later than the date
specified in subclause (II).</DELETED>
<DELETED> ``(II) Deadline.--The date
specified in this subclause is--
</DELETED>
<DELETED> ``(aa) with
respect to a covered investment
placed in a qualified blind
trust before the applicable
effective date described in
subsection (j), 120 days after
such applicable effective date;
and</DELETED>
<DELETED> ``(bb) with
respect to a covered investment
placed in a qualified blind
trust on or after the
applicable effective date
described in subsection (j),
120 days after the date of
creation of the qualified blind
trust, as dated by the executed
qualified blind trust
agreement.</DELETED>
<DELETED> ``(III) Notice of
compliance.--</DELETED>
<DELETED> ``(aa) In
general.--Subject to item (bb),
upon completion of the
divestiture of all initial
property pursuant to subclause
(I)--</DELETED>
<DELETED> ``(AA) the
trustee of a qualified
blind trust shall
submit to the
supervising ethics
office and each
beneficiary of the
trust a written notice
stating that all
initial property of the
qualified blind trust
has been divested;
and</DELETED>
<DELETED> ``(BB) the
supervising ethics
office shall publish
the notice described in
subitem (AA) on the
website of the
supervising ethics
office.</DELETED>
<DELETED> ``(bb) Contents.--
Each notice described in item
(aa)(AA)--</DELETED>
<DELETED> ``(AA)
shall only identify the
initial property
generally by referring
to the complete list of
assets described in
section
13104(f)(5)(A)(ii);
and</DELETED>
<DELETED> ``(BB) may
not contain any other
information relating to
any holding of the
qualified blind trust
or the timing of any
divestiture.</DELETED>
<DELETED> ``(ii) Extension of mandatory sale
of initial property.--</DELETED>
<DELETED> ``(I) Request.--A covered
person may apply to the supervising
ethics office for an extension of the
period described in clause (i)(I) if
the size or complexity of the covered
investments in the qualified blind
trust warrant such extension.</DELETED>
<DELETED> ``(II) Duration.--An
extension granted under subclause (I)
shall not exceed 90 days.</DELETED>
<DELETED> ``(D) Illiquid investments.--</DELETED>
<DELETED> ``(i) Sale.--Not later than 90
days after the date on which a covered person
is contractually permitted to sell an illiquid
investment, the covered person shall divest the
illiquid investment.</DELETED>
<DELETED> ``(ii) Prohibition.--A covered
person may not place an illiquid investment in
any qualified blind trust under subparagraph
(A).</DELETED>
<DELETED> ``(E) Trustees.--A trustee of a qualified
blind trust--</DELETED>
<DELETED> ``(i) shall be required to be a
financial institution, as defined in section 1a
of the Commodity Exchange Act (7 U.S.C. 1a);
and</DELETED>
<DELETED> ``(ii) except for a financial
institution, may not be--</DELETED>
<DELETED> ``(I) an
attorney;</DELETED>
<DELETED> ``(II) a certified public
accountant;</DELETED>
<DELETED> ``(III) a broker, as
defined in section 3(a) of the
Securities Exchange Act of 1934 (15
U.S.C. 78c(a)); or</DELETED>
<DELETED> ``(IV) an investment
advisor.</DELETED>
<DELETED> ``(3) Extension of assets being placed in
qualified blind trusts.--If a covered person is unable to place
a covered investment in a qualified blind trust by the date
described in paragraph (2)(A), the applicable Member of
Congress may request, and the supervising ethics office may
grant, 1 or more reasonable extensions, subject to the
conditions that--</DELETED>
<DELETED> ``(A) the total period of time covered by
all extensions granted for the covered investment shall
not exceed 150 days; and</DELETED>
<DELETED> ``(B) the period covered by a single
extension shall be not longer than 45 days.</DELETED>
<DELETED> ``(4) Communications regarding existing qualified
blind trusts.--</DELETED>
<DELETED> ``(A) In general.--Any direct or indirect
communication relating to a qualified blind trust in
existence on the applicable effective date described in
subsection (j) between a trustee of the qualified blind
trust and an interested party shall be permissible for
purposes of this title if the communication--</DELETED>
<DELETED> ``(i)(I) is made--</DELETED>
<DELETED> ``(aa) in writing;
and</DELETED>
<DELETED> ``(bb) not later than 60
days after that effective
date;</DELETED>
<DELETED> ``(II) is filed with the
applicable supervising ethics office by the
person initiating the communication not less
than 5 days before the date of the
communication;</DELETED>
<DELETED> ``(III) relates to a direction or
request to the trustee--</DELETED>
<DELETED> ``(aa) to sell all initial
property placed in the qualified blind
trust by any interested party;
or</DELETED>
<DELETED> ``(bb) to convert all of
an asset in the qualified blind trust
into an investment other than a covered
investment; and</DELETED>
<DELETED> ``(ii) is otherwise permitted
under section 13104(f)(3)(C)(vi).</DELETED>
<DELETED> ``(5) Communications between covered persons and
trustees relating to all qualified blind trusts.--</DELETED>
<DELETED> ``(A) Notification.--A trustee of a
qualified blind trust shall not notify a covered person
if--</DELETED>
<DELETED> ``(i) the value of the initial
property of the qualified blind trust is less
than $1,000; or</DELETED>
<DELETED> ``(ii) the trustee divests any
property of the qualified blind trust, other
than the initial property required to be
divested pursuant to paragraph (2).</DELETED>
<DELETED> ``(B) Communication.--</DELETED>
<DELETED> ``(i) In general.--Any
communication between a covered person and the
trustee of the relevant qualified blind trust--
</DELETED>
<DELETED> ``(I) shall be in writing;
and</DELETED>
<DELETED> ``(II) submitted and
approved in advance of the
communication by the supervising ethics
office.</DELETED>
<DELETED> ``(ii) Prohibition.--A
communication described in clause (i) may not
include any information relating to the manner
in which funds of the qualified blind trust are
invested, including any information relating
to--</DELETED>
<DELETED> ``(I) any company in which
the funds are invested; or</DELETED>
<DELETED> ``(II) any sector in which
the funds are invested.</DELETED>
<DELETED> ``(6) Exception for dependents.--A covered person
who is a dependent child of a Member of Congress may have a
legal guardian hold or trade on behalf of the dependent child 1
or more covered investments provided that the value of the
covered investments in total does not exceed $10,000.</DELETED>
<DELETED> ``(b) Acquisitions During Service.--</DELETED>
<DELETED> ``(1) In general.--Subject to paragraph (2), and
any applicable rules issued pursuant to subsection (h)(3),
effective beginning on the date of enactment of the Ending
Trading and Holdings In Congressional Stocks (ETHICS) Act, no
covered person may acquire any covered investment.</DELETED>
<DELETED> ``(2) Inheritances.--</DELETED>
<DELETED> ``(A) In general.--Subject to subparagraph
(B), a covered person who inherits a covered investment
shall come into compliance as required under subsection
(a) by not later than 120 days after the date on which
the covered investment is inherited.</DELETED>
<DELETED> ``(B) Extensions.--If a covered person is
unable to meet the requirements of subparagraph (A),
the applicable Member of Congress may request, and the
supervising ethics office may grant, 1 or more
reasonable extensions, subject to the conditions that--
</DELETED>
<DELETED> ``(i) the total period of time
covered by all extensions granted for the
covered investment shall not exceed 150 days;
and</DELETED>
<DELETED> ``(ii) the period covered by a
single extension shall be not longer than 45
days.</DELETED>
<DELETED> ``(c) Family Trusts.--</DELETED>
<DELETED> ``(1) In general.--A supervising ethics office may
grant an exemption for a family trust only if--</DELETED>
<DELETED> ``(A) no covered person--</DELETED>
<DELETED> ``(i) is a grantor of the family
trust;</DELETED>
<DELETED> ``(ii) contributed any asset to
the family trust; or</DELETED>
<DELETED> ``(iii) has any authority over a
trustee of the family trust, including the
authority to appoint, replace, or direct the
actions of such a trustee; and</DELETED>
<DELETED> ``(B) the grantor of the family trust is
or was a family member of the covered person.</DELETED>
<DELETED> ``(2) Requests.--A covered person seeking an
exemption under paragraph (1) shall submit to the applicable
supervising ethics office a request for the exemption, in
writing, certifying that the conditions described in that
paragraph are met.</DELETED>
<DELETED> ``(3) Publication.--A supervising ethics office
shall publish on the public website of the supervising ethics
office--</DELETED>
<DELETED> ``(A) a copy of each request submitted
under paragraph (2); and</DELETED>
<DELETED> ``(B) the written response of the
supervising ethics office to each request described in
subparagraph (A).</DELETED>
<DELETED> ``(d) Mingling of Assets.--A spouse or dependent child of
a Member of Congress may place a covered investment in a qualified
blind trust established by the Member of Congress under subsection
(a)(2)(A)(i).</DELETED>
<DELETED> ``(e) Separation From Service and Cooling-Off Period
Required for Control.--During the period beginning on the date on which
an individual becomes a Member of Congress and ending on the date that
is 90 days after the date on which the individual ceases to serve as a
Member of Congress, the Member of Congress, and any spouse or dependent
child of the Member of Congress, may not--</DELETED>
<DELETED> ``(1) dissolve any qualified blind trust in which
a covered investment has been placed pursuant to subsection
(a)(2); or</DELETED>
<DELETED> ``(2) except as provided in this section,
otherwise control a covered investment, including purchasing
new covered investments.</DELETED>
<DELETED> ``(f) Reporting Requirements.--</DELETED>
<DELETED> ``(1) Supervising ethics offices.--Each
supervising ethics office shall make available on the public
website of the supervising ethics office--</DELETED>
<DELETED> ``(A) a copy of--</DELETED>
<DELETED> ``(i) each certification submitted
to the supervising ethics office under
subsection (a)(1);</DELETED>
<DELETED> ``(ii) each qualified blind trust
agreement of each covered person;</DELETED>
<DELETED> ``(iii) each notice and other
documentation submitted to the supervising
ethics office under this section; and</DELETED>
<DELETED> ``(iv) each notice, ruling, and
other documentation issued or received by the
supervising ethics office under subsection
(c);</DELETED>
<DELETED> ``(B) a schedule of all assets placed in a
qualified blind trust by each covered person and
interested party; and</DELETED>
<DELETED> ``(C) a description of each extension
granted, and each civil penalty imposed, pursuant to
this section.</DELETED>
<DELETED> ``(2) Trustees.--Each trustee of a qualified blind
trust established by a covered person shall submit to the
covered person and the applicable supervising ethics office a
written notice in any case in which the trustee learns that an
interested party has obtained knowledge of any trust property
other than the initial property of the qualified blind
trust.</DELETED>
<DELETED> ``(3) Member of congress.--Each Member of Congress
who is a beneficiary of a qualified blind trust shall submit to
the applicable supervising ethics office--</DELETED>
<DELETED> ``(A) a copy of the executed qualified
blind trust agreement by not later than 30 days after
the date of execution;</DELETED>
<DELETED> ``(B) a list of each asset and each
financial interest transferred to the qualified blind
trust by an interested party by not later than 30 days
after the date of the transfer;</DELETED>
<DELETED> ``(C) a copy of each notice submitted to
the Member of Congress under paragraph (2) by not later
than 30 days after the date of receipt;</DELETED>
<DELETED> ``(D) a written notice that an interested
party has obtained knowledge of any holding of the
qualified blind trust by not later than the date that
is 30 days after the date on which the Member of
Congress discovered that the knowledge had been
obtained; and</DELETED>
<DELETED> ``(E) a written notice of dissolution of
the qualified blind trust by not later than 30 days
after the date of dissolution.</DELETED>
<DELETED> ``(4) Federal benefits.--</DELETED>
<DELETED> ``(A) Covered payment.--In this paragraph,
the term `covered payment'--</DELETED>
<DELETED> ``(i) means a payment of money or
any other item of value made, or promised to be
made, by the Federal Government;</DELETED>
<DELETED> ``(ii) includes--</DELETED>
<DELETED> ``(I) a loan agreement,
contract, or grant made, or promised to
be made, by the Federal Government,
including such an agreement, contract,
or grant relating to agricultural
activity; and</DELETED>
<DELETED> ``(II) such other types of
payment of money or items of value as
the supervising ethics office may
establish, by guidance; and</DELETED>
<DELETED> ``(iii) does not include--
</DELETED>
<DELETED> ``(I) any salary or
compensation for service performed as,
or reimbursement of personal outlay by,
an officer or employee of the Federal
Government; or</DELETED>
<DELETED> ``(II) any tax refund
(including a refundable tax
credit).</DELETED>
<DELETED> ``(B) Reporting requirement.--Not later
than 30 days after the date of receipt of a notice of
any application for, or receipt of, a covered payment
by a covered person (including any business owned and
controlled by the covered person), but in no case later
than 45 days after the date on which the covered
payment is made or promised to be made, the covered
person shall submit to the applicable supervising
ethics office a report describing the covered
payment.</DELETED>
<DELETED> ``(g) Enforcement.--</DELETED>
<DELETED> ``(1) Divestiture or placement in qualified blind
trust.--</DELETED>
<DELETED> ``(A) In general.--The applicable
supervising ethics office shall provide a written
notice (including notice of the potential for civil
penalties under subparagraph (B)) to any Member of
Congress if the Member of Congress, or spouse or
dependent child of the Member of Congress--</DELETED>
<DELETED> ``(i) fails to submit a
certification under subsection (a)(1) by the
date on which the certification is required to
be submitted;</DELETED>
<DELETED> ``(ii) fails to divest or place in
a qualified blind trust a covered investment
owned by, or in the custody of the covered
person, in accordance with subsection (a)(2),
subject to any extension under subsection
(a)(3); or</DELETED>
<DELETED> ``(iii) acquires an interest in a
covered investment in violation of this
section.</DELETED>
<DELETED> ``(B) Civil penalties.--</DELETED>
<DELETED> ``(i) In general.--In the event of
continuing noncompliance after issuance of the
notice described in subparagraph (A), the
supervising ethics office shall impose a civil
penalty, in the amount described in clause
(ii), on a Member of Congress to whom a notice
is provided under clause (i) or (ii) of
subparagraph (A)--</DELETED>
<DELETED> ``(I) on the date that is
30 days after the date of provision of
the notice; and</DELETED>
<DELETED> ``(II) during the period
in which such noncompliance continues,
not less frequently than once every 30
days thereafter.</DELETED>
<DELETED> ``(ii) Amount.--The amount of each
civil penalty imposed on a Member of Congress
pursuant to clause (i) shall be equal to the
greater of--</DELETED>
<DELETED> ``(I) the monthly
equivalent of the annual rate of pay
payable to the Member of Congress;
and</DELETED>
<DELETED> ``(II) an amount equal to
10 percent of the value of each covered
investment that was not divested or
placed into a qualified blind trust in
violation of this section during the
period covered by the
penalty.</DELETED>
<DELETED> ``(2) Communications.--The Attorney General of the
United States shall file a civil action seeking to impose a
civil penalty on any covered person or trustee of a qualified
blind trust who violates subsection (a)(4), or otherwise
discloses the contents of a qualified blind trust to any
unauthorized individual, equal to the greater of--</DELETED>
<DELETED> ``(A) $10,000 per each communication;
or</DELETED>
<DELETED> ``(B) 1 percent of the value of the
qualified blind trust on the date of the
violation.</DELETED>
<DELETED> ``(h) Duties of Supervising Ethics Offices.--Each
supervising ethics office in the legislative branch shall--</DELETED>
<DELETED> ``(1) impose and collect civil penalties in
accordance with subsection (g);</DELETED>
<DELETED> ``(2) establish such procedures and standard forms
as the supervising ethics office determines to be appropriate
to implement this section;</DELETED>
<DELETED> ``(3) issue such rules and guidelines as the
supervising ethics office determines to be appropriate for the
implementation and application of this title; and</DELETED>
<DELETED> ``(4) publish on a website all documents and
communications described in this subsection.</DELETED>
<DELETED> ``(i) Rule of Construction.--Nothing in this section shall
be construed to prevent a covered person from owning or trading--
</DELETED>
<DELETED> ``(1) a diversified mutual fund; or</DELETED>
<DELETED> ``(2) a publicly traded, diversified exchange
traded fund.</DELETED>
<DELETED> ``(j) Effective Date.--This section shall apply to each
covered person beginning on the date on which the covered person (or
with respect to a covered person that is a spouse or dependent child of
a Member of Congress, the date on which that Member of Congress)
commences the first new term of service as a Member of Congress on or
after January 31, 2023.''.</DELETED>
<DELETED> (b) Clerical Amendment.--The table of sections for chapter
131 of title 5, United States Code, is amended by adding at the end the
following:</DELETED>
<DELETED> ``subchapter iv--certain assets of members of congress and
their spouses and dependent children
<DELETED>``13161. Definitions.
<DELETED>``13162. Trading covered investments
<DELETED>``13163. Addressing owned covered investments''.
<DELETED> (c) Technical and Conforming Amendments.--</DELETED>
<DELETED> (1) Title 5.--Title 5, United States Code, is
amended--</DELETED>
<DELETED> (A) in section 13103(f)--</DELETED>
<DELETED> (i) in paragraph (9), by striking
``as defined in section 13101 of this
title'';</DELETED>
<DELETED> (ii) in paragraph (10), by
striking ``as defined in section 13101 of this
title'';</DELETED>
<DELETED> (iii) in paragraph (11), by
striking ``as defined in section 13101 of this
title''; and</DELETED>
<DELETED> (iv) in paragraph (12), by
striking ``as defined in section 13101 of this
title''; and</DELETED>
<DELETED> (B) in section 13122(f)(2)(B)--</DELETED>
<DELETED> (i) by striking ``Subject to
clause (iv) of this subparagraph, before'' each
place it appears and inserting ``Before'';
and</DELETED>
<DELETED> (ii) by striking clause
(iv).</DELETED>
<DELETED> (2) Lobbying disclosure act of 1995.--Section
3(4)(D) of the Lobbying Disclosure Act of 1995 (2 U.S.C.
1602(4)(D)) is amended by striking ``legislative branch
employee serving in a position described under section
13101(13) of title 5, United States Code'' and inserting
``officer or employee of Congress (as defined in section 13101
of title 5, United States Code)''.</DELETED>
<DELETED> (3) Securities exchange act of 1934.--Section 21A
of the Securities Exchange Act of 1934 (15 U.S.C. 78u-1) is
amended--</DELETED>
<DELETED> (A) in subsection (g)(2)(B)(ii), by
striking ``section 13101(11)'' and inserting ``section
13101''; and</DELETED>
<DELETED> (B) in subsection (h)(2)--</DELETED>
<DELETED> (i) in subparagraph (B), by
striking ``in section 13101(9)'' and inserting
``under section 13101''; and</DELETED>
<DELETED> (ii) in subparagraph (C), by
striking ``section 13101(10)'' and inserting
``in section 13101''.</DELETED>
<DELETED>SEC. 3. PENALTY FOR STOCK ACT NONCOMPLIANCE.</DELETED>
<DELETED> (a) Fines for Failure To Report.--</DELETED>
<DELETED> (1) In general.--The STOCK Act (Public Law 112-
105; 126 Stat. 291) is amended by adding at the end the
following:</DELETED>
<DELETED>``SEC. 20. FINES FOR FAILURE TO REPORT.</DELETED>
<DELETED> ``(a) In General.--Notwithstanding any other provision of
law (including regulations), a reporting individual shall be assessed a
fine, pursuant to regulations issued by the applicable supervising
ethics office (including the Administrative Office of the United States
Courts, as applicable), of $500 in each case in which the reporting
individual fails to file a transaction report required under this Act
or an amendment made by this Act.</DELETED>
<DELETED> ``(b) Deposit in Treasury.--The fines paid under this
section shall be deposited in the miscellaneous receipts of the
Treasury.''.</DELETED>
<DELETED> (2) Effective date.--The amendments made by
paragraph (1) shall take effect on the date on which the
reporting individual who is a Member of Congress commences the
first new term of service as a Member of Congress on or after
January 31, 2023.</DELETED>
<DELETED> (b) Rules, Regulations, Guidance, and Documents.--Not
later than 1 year after the date of enactment of this Act, each
supervising ethics office (as defined in section 13101 of title 5,
United States Code) (including the Administrative Office of the United
States Courts, as applicable) shall amend the rules, regulations,
guidance, documents, papers, and other records of the supervising
ethics office in accordance with the amendment made by this
section.</DELETED>
<DELETED>SEC. 4. ELECTRONIC FILING AND ONLINE PUBLIC AVAILABILITY OF
FINANCIAL DISCLOSURE FORMS.</DELETED>
<DELETED> (a) Members of Congress and Congressional Staff.--Section
8(b)(1) of the STOCK Act (5 U.S.C. 13107 note) is amended--</DELETED>
<DELETED> (1) in the matter preceding subparagraph (A), by
inserting ``, pursuant to subchapter I of chapter 131 of part
IV of title 5, United States Code, through databases maintained
on the official websites of the House of Representatives and
the Senate'' after ``enable''; and</DELETED>
<DELETED> (2) by striking subparagraph (B) and the
undesignated matter following that subparagraph and inserting
the following:</DELETED>
<DELETED> ``(B) public access--</DELETED>
<DELETED> ``(i) to each--</DELETED>
<DELETED> ``(I) financial disclosure
report filed by a Member of Congress or
a candidate for Congress;</DELETED>
<DELETED> ``(II) transaction
disclosure report filed by a Member of
Congress or a candidate for Congress
pursuant to subsection (l) of that
section; and</DELETED>
<DELETED> ``(III) notice of
extension, amendment, or blind trust,
with respect to a report described in
subclause (I) or (II), pursuant to
subchapter I of chapter 131 of part IV
of title 5, United States Code;
and</DELETED>
<DELETED> ``(ii) in a manner that--
</DELETED>
<DELETED> ``(I) allows the public to
search, sort, and download data
contained in the reports described in
subclause (I) or (II) of clause (i) by
criteria required to be reported,
including by filer name, asset,
transaction type, ticker symbol,
notification date, amount of
transaction, and date of
transaction;</DELETED>
<DELETED> ``(II) allows access
through an application programming
interface; and</DELETED>
<DELETED> ``(III) is fully compliant
with--</DELETED>
<DELETED> ``(aa) section 508
of the Rehabilitation Act of
1973 (29 U.S.C. 794d);
and</DELETED>
<DELETED> ``(bb) the most
recent Web Content
Accessibility Guidelines (or
successor
guidelines).''.</DELETED>
<DELETED> (b) Effective Date.--The amendments made by this section
take effect on the date that is 18 months after the date of enactment
of this Act.</DELETED>
<DELETED>SEC. 5. SEVERABILITY.</DELETED>
<DELETED> If any provision of this Act, an amendment made by this
Act, or the application of such provision or amendment to any person or
circumstance is held to be unconstitutional, the remainder of this Act
and of the amendments made by this Act, and the application of the
remaining provisions of this Act and amendments to any person or
circumstance, shall not be affected.</DELETED>
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Ending Trading and Holdings In
Congressional Stocks (ETHICS) Act''.
SEC. 2. DIVESTMENT OF CERTAIN ASSETS OF MEMBERS OF CONGRESS, THE
PRESIDENT, THE VICE PRESIDENT, AND THEIR SPOUSES AND
DEPENDENT CHILDREN.
(a) In General.--Chapter 131 of title 5, United States Code, is
amended by adding at the end the following:
``Subchapter IV--Certain Assets of Members of Congress, the President,
the Vice President, and Their Spouses and Dependent Children
``Sec. 13161. Definitions
``In this subchapter:
``(1) Commodity.--The term `commodity' has the meaning
given the term in section 1a of the Commodity Exchange Act (7
U.S.C. 1a).
``(2) Covered investment.--
``(A) In general.--The term `covered investment'
means--
``(i) an investment in--
``(I) a security;
``(II) a commodity;
``(III) a future; or
``(IV) a digital asset;
``(ii) any economic interest comparable to
an interest described in clause (i) that is
acquired through synthetic means, such as the
use of a derivative, including an option,
warrant, or other similar means; or
``(iii) any interest described in clause
(i) or (ii) that is held directly, or in which
an individual has an indirect, beneficial, or
economic interest, through--
``(I) an investment fund or holding
company;
``(II) a trust;
``(III) an employee benefit plan;
or
``(IV) a deferred compensation
plan, including a carried interest or
other agreement tied to the performance
of an investment, other than a fixed
cash payment.
``(B) Exclusions.--The term `covered investment'
does not include--
``(i) a diversified mutual fund (including
any holdings of such a fund);
``(ii) a diversified exchange-traded fund
(including any holdings of such a fund);
``(iii) a United States Treasury bill,
note, or bond;
``(iv) compensation from the primary
occupation of the spouse of a covered person,
or any security that is issued or paid by an
operating business that is the primary employer
of such a spouse that is issued or paid to such
a spouse;
``(v) holding and acquiring any security
that is issued or paid as compensation from
corporate board service by the spouse of a
covered person, including the dividend
reinvestment in the same security received from
the corporate board service by the spouse of a
covered person;
``(vi) any covered investment that is
traded by the spouse of a covered person in the
course of performing the primary occupation of
such a spouse, provided the investment is not
owned by a covered person or the spouse or
dependent child of a covered person;
``(vii) any investment fund held in a
Federal, State, or local government employee
retirement plan;
``(viii) a tax-free State or municipal
bond;
``(ix) an interest in a small business
concern, if the supervising ethics office
determines that the small business concern does
not present a conflict of interest, and, in the
case of an investment in a family farm or ranch
that qualifies as an interest in a small
business concern, a future or commodity
directly related to the farming activities and
products of the farm or ranch;
``(x) holding investment-grade corporate
bonds, provided that the corporate bonds are
held by an individual who is a covered person,
or a spouse or dependent child of a covered
person, on the date of enactment of the Ending
Trading and Holdings In Congressional Stocks
(ETHICS) Act;
``(xi) any share 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)); or
``(xii) any share of Settlement Common
Stock, as defined in section 3 of the Alaska
Native Claims Settlement Act (43 U.S.C. 1602).
``(C) Rule of construction.--Nothing in this
paragraph shall be construed to imply that particular
digital assets are not securities, commodities, or
other types of covered investments.
``(3) Covered person.--The term `covered person' means--
``(A) a Member of Congress;
``(B) the President of the United States; or
``(C) the Vice President of the United States.
``(4) Custody.--The term `custody' has the meaning given
the term in section 275.206(4)-2(d) of title 17, Code of
Federal Regulations, as in effect on the date of enactment of
the Ending Trading and Holdings In Congressional Stocks
(ETHICS) Act (or any successor regulation).
``(5) Dependent child.--The term `dependent child' means,
with respect to any covered person, any individual who is--
``(A) under 19 years of age; and
``(B) a dependent of the covered person within the
meaning of section 152 of the Internal Revenue Code of
1986.
``(6) Digital asset.--The term `digital asset' means any
digital representation of value that is recorded on a
cryptographically secured distributed ledger or any similar
technology.
``(7) Diversified.--The term `diversified', with respect to
a fund, trust, or plan, means that the fund, trust, or plan
does not have a stated policy of concentrating its investments
in any single industry, business, or single country other than
the United States.
``(8) Future.--The term `future' means--
``(A) a security future (as defined in section 3(a)
of the Securities Exchange Act of 1934 (15 U.S.C.
78c(a))); and
``(B) any other contract for the sale of a
commodity for future delivery.
``(9) Illiquid investment.--The term `illiquid investment'
means an interest in a private fund, as defined in section
202(a) of the Investment Advisers Act of 1940 (15 U.S.C. 80b-
2(a)).
``(10) Interested party.--The term `interested party' has
the meaning given the term in section 13104(f)(3)(E).
``(11) Member of congress; supervising ethics office.--The
terms `Member of Congress' and `supervising ethics office' have
the meanings given those terms in section 13101.
``(12) Qualified blind trust.--The term `qualified blind
trust' has the meaning given the term in section 13104(f)(3).
``(13) Security.--The term `security' has the meaning given
the term in section 3(a) of the Securities Exchange Act of 1934
(15 U.S.C. 78c(a)).
``(14) Small business concern.--The term `small business
concern' has the meaning given the term under section 3 of the
Small Business Act (15 U.S.C. 632).
``Sec. 13162. Trading covered investments
``(a) Ban on Trading.--Except as provided in subsections (b) and
(c)--
``(1) effective on the date of enactment of the Ending
Trading and Holdings In Congressional Stocks (ETHICS) Act, a
covered person shall not purchase any covered investment;
``(2) effective on the date that is 90 days after the date
of enactment of the Ending Trading and Holdings In
Congressional Stocks (ETHICS) Act, a covered person shall not
sell any covered investment, except as provided in section
13163(a)(1); and
``(3) on and after the effective date described in section
13163(j), an individual who is a spouse or dependent child of a
covered person shall not purchase any covered investment or
sell any covered investment, except as provided in section
13163(a)(1).
``(b) Optional Divestment Window.--
``(1) Current members.--Notwithstanding subsection (a), a
covered person who is sworn into office on or before the date
of enactment of the Ending Trading and Holdings In
Congressional Stocks (ETHICS) Act may sell a covered investment
within 90 days of the date of enactment of such Act.
``(2) New members.--Notwithstanding subsection (a), a
covered person who is sworn into office after the date of
enactment of the Ending Trading and Holdings In Congressional
Stocks (ETHICS) Act, but before the effective date under
section 13163(j), may sell a covered investment within 90 days
of commencing a new non-consecutive term of service as a Member
of Congress, President, or Vice President.
``(c) Exception.--Notwithstanding subsection (a), a covered person
may divest a covered investment as directed by the relevant supervising
ethics office pursuant to this Act.
``(d) Joint Covered Investment.--Any covered investment reported to
the supervising ethics office as jointly owned by a covered person and
the spouse of the covered person shall be deemed to be a covered
investment of the covered person for purposes of this section.
``Sec. 13163. Addressing owned covered investments
``(a) Covered Persons.--
``(1) Divestiture.--
``(A) Requirements.--
``(i) Officials sworn in before the
effective date.--Subject to paragraph (2) and
the amendments made under subsection (b), a
covered person who is sworn into office on or
before the effective date described in
subsection (j), not later than 120 days after
the effective date described in subsection (j),
subject to any extension granted under
subparagraph (C)(iii) of this paragraph, shall
divest each covered investment owned or in the
custody of--
``(I) the covered person; or
``(II) a spouse or dependent child
of the covered person.
``(ii) Officials sworn in after the
effective date.--Subject to paragraph (2) and
the amendments made under subsection (b), a
covered person who is sworn into office after
the effective date described in subsection (j),
not later than 120 days after commencing a new
non-consecutive term of service as a Member of
Congress, President, or Vice President, subject
to any extension granted under subparagraph
(C)(iii) of this paragraph, shall divest each
covered investment owned or in the custody of--
``(I) the covered person; or
``(II) a spouse or dependent child
of the covered person.
``(B) Illiquid investments.--Not later than 90 days
after the date on which a covered person is
contractually permitted to sell an illiquid investment,
the covered person shall divest the illiquid
investment.
``(C) Qualified blind trusts.--
``(i) Prohibition on future qualified blind
trusts.--Except as provided in clause (iii), on
and after the date that is 180 days after the
effective date described in subsection (j), no
covered person, or the spouse or dependent
child of the covered person, may maintain a
qualified blind trust.
``(ii) Mandatory sale of covered
investments in existing qualified blind
trusts.--
``(I) In general.--The trustee of a
qualified blind trust holding covered
investments shall, at a time elected by
the covered person, on behalf of a
covered person, and in accordance with
clause (iv)--
``(aa) divest all covered
investments held in the
qualified blind trust for the
purposes of complying with the
divestiture requirements under
this section, in accordance
with subparagraph (A); and
``(bb) dissolve the
qualified blind trust in
accordance with this chapter
and guidance from the
supervising ethics office.
``(II) Notice of compliance.--
``(aa) Notice of
divestiture.--
``(AA) In
general.--Upon the
completion of
divestiture of all
covered investments
pursuant to subclause
(I)(aa), the trustee
shall submit to the
supervising ethics
office and the
applicable covered
person a written notice
stating that the
trustee has completed
divestiture of all
covered investments
held in the qualified
blind trust pursuant to
subclause (I)(aa).
``(BB)
Publication.--The
supervising ethics
office shall publish
the notice required
under subitem (AA) on
the website of the
supervising ethics
office.
``(bb) Notice of
dissolution.--Upon the
dissolution of a qualified
blind trust pursuant to
subclause (I)(bb), the trustee
shall submit to the supervising
ethics office and the
applicable covered person a
written notice stating that the
trust has dissolved the
qualified blind trust pursuant
to subclause (I)(bb) and shall
include a list of the assets
held in the qualified blind
trust on the date of the
dissolution of such trust and
the category of value of each
such asset.
``(iii) Extension of mandatory sale of
covered investments.--
``(I) Request.--Each covered person
who maintains a qualified blind trust
established by the covered person, or a
spouse or dependent child of the
covered person, in any case in which
the trustee of the qualified blind
trust believes the size or complexity
of the covered investments in the
qualified blind trust warrant such
extension may apply to the supervising
ethics office for an extension of the
period described in subparagraph (A).
``(II) Duration.--An extension
granted under subclause (I) shall not
exceed 90 days.
``(iv) Communications.--A covered person
may communicate with and direct the trustee of
their qualified blind trust for the purposes
of--
``(I) determining when divestment
of covered investments in the qualified
blind trust should occur, pursuant to
paragraph 1(A) of this subsection,
clause (ii) of this subparagraph, or
section 13162(b), as applicable;
``(II) determining which permitted
property covered investments should be
divested into; and
``(III) whether the trustee
utilizes a certificate of divestiture
pursuant to section 1043(b) of the
Internal Revenue Code of 1986, as
amended by subsection (b) of this
section.
``(2) Exception for dependents.--An individual who is a
dependent child of a covered person may have a legal guardian
hold or trade on behalf of the dependent child 1 or more
covered investments provided that the value of the covered
investments in total does not exceed $10,000.
``(b) Tax Treatment of Divestitures.--
``(1) In general.--Section 1043(b) of the Internal Revenue
Code of 1986 is amended--
``(A) in paragraph (1)(A), by inserting `or a
covered person (as defined in section 13161 of title 5,
United States Code),' after `of the Federal
Government,';
``(B) in paragraph (2)(B)--
``(i) by striking `employees, or' and
inserting `employees,'; and
``(ii) by inserting `or the applicable
supervising ethics office (as defined in
section 13101 of title 5, United States Code),
in the case of a covered person' after
`judicial officers,'; and
``(C) in paragraph (3), by striking `or any
diversified investment fund approved by regulations
issued by the Office of Government Ethics' and
inserting `, any diversified investment fund approved
by regulations issued by the Office of Government
Ethics (in the case of any eligible person who is not a
covered person (as defined in section 13161 of title 5,
United States Code)), or any diversified mutual fund or
a diversified exchange-traded fund described in clause
(i) or (ii) of section 13161(2)(B) of title 5, United
States Code (in the case of any eligible person who is
a covered person (as so defined)).'.
``(2) Effective date.--The amendments made by this
subsection shall apply to sales after the date of enactment of
the Ending Trading and Holdings In Congressional Stocks
(ETHICS) Act.
``(c) Acquisitions During Service.--
``(1) In general.--Subject to paragraph (2), and any
applicable rules issued pursuant to subsection (h)(3),
effective beginning on the date of enactment of the Ending
Trading and Holdings In Congressional Stocks (ETHICS) Act, no
covered person, or spouse or dependent child of a covered
person, may acquire any covered investment.
``(2) Inheritances.--
``(A) In general.--Subject to subparagraph (B), a
covered person, or a spouse or dependent child of a
covered person, who inherits a covered investment shall
come into compliance as required under subsection (a)
by not later than 120 days after the date on which the
covered investment is inherited.
``(B) Extensions.--If a covered person, or a spouse
or dependent child of a covered person, is unable to
meet the requirements of subparagraph (A), the
applicable covered person may request, and the
supervising ethics office may grant, 1 or more
reasonable extensions, subject to the conditions that--
``(i) the total period of time covered by
all extensions granted for the covered
investment shall not exceed 150 days; and
``(ii) the period covered by a single
extension shall be not longer than 45 days.
``(d) Family Trusts.--
``(1) In general.--A supervising ethics office may grant an
exemption for a family trust only if--
``(A) no covered person, or spouse or dependent
child of a covered person--
``(i) is a grantor of the family trust;
``(ii) contributed any asset to the family
trust; or
``(iii) has any authority over a trustee of
the family trust, including the authority to
appoint, replace, or direct the actions of such
a trustee; and
``(B) the grantor of the family trust is or was a
family member of the covered person, or the spouse or
dependent child of the covered person.
``(2) Requests.--A covered person seeking an exemption
under paragraph (1) shall submit to the applicable supervising
ethics office a request for the exemption, in writing,
certifying that the conditions described in that paragraph are
met.
``(3) Publication.--A supervising ethics office shall
publish on the public website of the supervising ethics
office--
``(A) a copy of each request submitted under
paragraph (2); and
``(B) the written response of the supervising
ethics office to each request described in subparagraph
(A).
``(e) Separation From Service and Cooling-off Period Required for
Control.--During the period beginning on the date on which an
individual becomes a Member of Congress, President, or Vice President
and ending on the date that is 90 days after the date on which the
individual ceases to serve as a Member of Congress, President, or Vice
President, the covered person, and any spouse or dependent child of the
covered person, may not, except as provided in this section, otherwise
control a covered investment, including purchasing new covered
investments.
``(f) Reporting Requirements.--
``(1) Supervising ethics offices.--Each supervising ethics
office shall make available on the public website of the
supervising ethics office--
``(A) a copy of--
``(i) each notification submitted to the
supervising ethics office in accordance with
subsection (a)(1)(C)(ii)(II);
``(ii) each notice and other documentation
submitted to the supervising ethics office
under this section; and
``(iii) each written response and other
documentation issued or received by the
supervising ethics office under subsection (d);
``(B) not later than 30 days after a qualified
blind trust maintained by a covered person is
dissolved, a written notice of the dissolution of the
qualified blind trust; and
``(C) a description of each extension granted, and
each civil penalty imposed, pursuant to this section.
``(2) Federal benefits.--
``(A) Covered payment.--In this paragraph, the term
`covered payment'--
``(i) means a payment of money or any other
item of value made, or promised to be made, by
the Federal Government;
``(ii) includes--
``(I) a loan agreement, contract,
or grant made, or promised to be made,
by the Federal Government, including
such an agreement, contract, or grant
relating to agricultural activity; and
``(II) such other types of payment
of money or items of value as the
supervising ethics office may
establish, by guidance; and
``(iii) does not include--
``(I) any salary or compensation
for service performed as, or
reimbursement of personal outlay by, an
officer or employee of the Federal
Government; or
``(II) any tax refund (including a
refundable tax credit).
``(B) Reporting requirement.--Not later than 30
days after the date of receipt of a notice of any
application for, or receipt of, a covered payment by a
covered person, or a spouse or dependent child of a
covered person, (including any business owned and
controlled by the covered person, spouse, or dependent
child), but in no case later than 45 days after the
date on which the covered payment is made or promised
to be made, the covered person shall submit to the
applicable supervising ethics office a report
describing the covered payment.
``(g) Enforcement.--
``(1) In general.--The applicable supervising ethics office
shall provide a written notice (including notice of the
potential for civil penalties under paragraph (2)) to any
covered person if the covered person, or the spouse or
dependent child of the covered person, as applicable--
``(A) fails to divest a covered investment owned
by, in the custody of, or held in a qualified blind
trust of, the covered person or spouse or dependent
child of a covered person, in accordance with
subsection (a)(1), subject to any extension under
subsection (a)(1)(C)(iii); or
``(B) acquires an interest in a covered investment
in violation of this section.
``(2) Civil penalties.--
``(A) In general.--In the event of continuing
noncompliance after issuance of the notice described in
paragraph (1), the supervising ethics office shall
impose a civil penalty, in the amount described in
subparagraph (B), on a covered person to whom a notice
is provided under subparagraph (A) or (B) of paragraph
(1)--
``(i) on the date that is 30 days after the
date of provision of the notice; and
``(ii) during the period in which such
noncompliance continues, not less frequently
than once every 30 days thereafter.
``(B) Amount.--The amount of each civil penalty
imposed on a covered person pursuant to subparagraph
(A) shall be equal to the greater of--
``(i) the monthly equivalent of the annual
rate of pay payable to the covered person; and
``(ii) an amount equal to 10 percent of the
value of each covered investment that was not
divested in violation of this section during
the period covered by the penalty.
``(h) Duties of Supervising Ethics Offices.--Each supervising
ethics office shall--
``(1) impose and collect civil penalties in accordance with
subsection (g);
``(2) establish such procedures and standard forms as the
supervising ethics office determines to be appropriate to
implement this section;
``(3) issue such rules and guidelines as the supervising
ethics office determines to be appropriate for the
implementation and application of this title; and
``(4) publish on a website all documents and communications
described in this subsection.
``(i) Rule of Construction.--Nothing in this section shall be
construed to prevent a covered person, or a spouse or dependent child
of a covered person, from owning or trading--
``(1) a diversified mutual fund; or
``(2) a publicly traded, diversified exchange traded fund.
``(j) Effective Date.--Except as provided in subsection (c)(1),
this section shall apply on and after March 31, 2027.''.
(b) Clerical Amendment.--The table of sections for chapter 131 of
title 5, United States Code, is amended by adding at the end the
following:
``subchapter iv--certain assets of members of congress, the president,
the vice president, and their spouses and dependent children
``13161. Definitions.
``13162. Trading covered investments
``13163. Addressing owned covered investments''.
(c) Technical and Conforming Amendments.--
(1) Title 5.--Title 5, United States Code, is amended--
(A) in section 13103(f)--
(i) in paragraph (9), by striking ``as
defined in section 13101 of this title'';
(ii) in paragraph (10), by striking ``as
defined in section 13101 of this title'';
(iii) in paragraph (11), by striking ``as
defined in section 13101 of this title''; and
(iv) in paragraph (12), by striking ``as
defined in section 13101 of this title''; and
(B) in section 13122(f)(2)(B)--
(i) by striking ``Subject to clause (iv) of
this subparagraph, before'' each place it
appears and inserting ``Before''; and
(ii) by striking clause (iv).
(2) Lobbying disclosure act of 1995.--Section 3(4)(D) of
the Lobbying Disclosure Act of 1995 (2 U.S.C. 1602(4)(D)) is
amended by striking ``legislative branch employee serving in a
position described under section 13101(13) of title 5, United
States Code'' and inserting ``officer or employee of Congress
(as defined in section 13101 of title 5, United States Code)''.
(3) Securities exchange act of 1934.--Section 21A of the
Securities Exchange Act of 1934 (15 U.S.C. 78u-1) is amended--
(A) in subsection (g)(2)(B)(ii), by striking
``section 13101(11)'' and inserting ``section 13101'';
and
(B) in subsection (h)(2)--
(i) in subparagraph (B), by striking ``in
section 13101(9)'' and inserting ``under
section 13101''; and
(ii) in subparagraph (C), by striking
``section 13101(10)'' and inserting ``section
13101''.
SEC. 3. PENALTY FOR STOCK ACT NONCOMPLIANCE.
(a) Fines for Failure to Report.--
(1) In general.--The STOCK Act (Public Law 112-105; 126
Stat. 291) is amended by adding at the end the following:
``SEC. 20. FINES FOR FAILURE TO REPORT.
``(a) In General.--Notwithstanding any other provision of law
(including regulations), a reporting individual shall be assessed a
fine, pursuant to regulations issued by the applicable supervising
ethics office (including the Administrative Office of the United States
Courts, as applicable), of $500 in each case in which the reporting
individual fails to file a transaction report required under this Act
or an amendment made by this Act.
``(b) Deposit in Treasury.--The fines paid under this section shall
be deposited in the miscellaneous receipts of the Treasury.''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply on and after March 31, 2027.
(b) Rules, Regulations, Guidance, and Documents.--Not later than 1
year after the date of enactment of this Act, each supervising ethics
office (as defined in section 13101 of title 5, United States Code)
(including the Administrative Office of the United States Courts, as
applicable) shall amend the rules, regulations, guidance, documents,
papers, and other records of the supervising ethics office in
accordance with the amendment made by this section.
SEC. 4. ELECTRONIC FILING AND ONLINE PUBLIC AVAILABILITY OF FINANCIAL
DISCLOSURE FORMS.
(a) Members of Congress and Congressional Staff.--Section 8(b)(1)
of the STOCK Act (5 U.S.C. 13107 note) is amended--
(1) in the matter preceding subparagraph (A), by inserting
``, pursuant to subchapter I of chapter 131 of title 5, United
States Code, through databases maintained on the official
websites of the House of Representatives and the Senate'' after
``enable''; and
(2) by striking subparagraph (B) and the undesignated
matter following that subparagraph and inserting the following:
``(B) public access--
``(i) to each--
``(I) financial disclosure report
filed by a Member of Congress or a
candidate for Congress;
``(II) transaction disclosure
report filed by a Member of Congress or
a candidate for Congress pursuant to
subsection (l) of that section; and
``(III) notice of extension,
amendment, or blind trust, with respect
to a report described in subclause (I)
or (II), pursuant to subchapter I of
chapter 131 of title 5, United States
Code; and
``(ii) in a manner that--
``(I) allows the public to search,
sort, and download data contained in
the reports described in subclause (I)
or (II) of clause (i) by criteria
required to be reported, including by
filer name, asset, transaction type,
ticker symbol, notification date,
amount of transaction, and date of
transaction;
``(II) allows access through an
application programming interface; and
``(III) is fully compliant with--
``(aa) section 508 of the
Rehabilitation Act of 1973 (29
U.S.C. 794d); and
``(bb) the most recent Web
Content Accessibility
Guidelines (or successor
guidelines).''.
(b) Effective Date.--The amendments made by this section shall take
effect on the date that is 18 months after the date of enactment of
this Act.
SEC. 5. SEVERABILITY.
If any provision of this Act, an amendment made by this Act, or the
application of such provision or amendment to any person or
circumstance is held to be unconstitutional, the remainder of this Act
and of the amendments made by this Act, and the application of the
remaining provisions of this Act and amendments to any person or
circumstance, shall not be affected.
Calendar No. 729
118th CONGRESS
2d Session
S. 1171
[Report No. 118-309]
_______________________________________________________________________
A BILL
To amend chapter 131 of title 5, United States Code, to prevent Members
of Congress and their spouses and dependent children from trading
stocks and owning stocks, and for other purposes.
_______________________________________________________________________
December 19 (legislative day, December 16), 2024
Reported with an amendment