[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1908 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 1908
To prohibit stock trading and ownership by Members of Congress and
their spouses and dependent children, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 6, 2025
Mr. Burchett 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
their spouses and dependent children, 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 ``End Congressional Stock Trading
Act''.
SEC. 2. BAR ON STOCK TRADING AND OWNERSHIP BY MEMBERS OF CONGRESS AND
THEIR SPOUSES AND DEPENDENT CHILDREN.
(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) Dependent child.--The term ``dependent child'' 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.--A Member of Congress or a spouse or
dependent child of a Member of Congress may not 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 or a spouse or dependent child of a
Member of Congress on the date of enactment of
this Act 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 or a
spouse or dependent child of a Member of
Congress on the date of enactment of this Act
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 or a spouse or dependent child of a
Member of Congress after the date of enactment
of this Act shall complete the divestment of
any asset described in paragraph (1) by not
later than 90 days after the date on which the
individual becomes a Member of Congress or a
spouse or dependent child of 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 or
a spouse or dependent child of a Member of
Congress after the date of enactment of this
Act 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 or a spouse or dependent child of a
Member of Congress.
(C) Divestment of assets received while a member.--
An individual serving as a Member of Congress or a
spouse or dependent child of an individual serving as a
Member of Congress 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 receives the asset.
(c) Exceptions.--Nothing in this section shall be construed to
prevent--
(1) a Member of Congress or a spouse or dependent child 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 or dependent child 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 or dependent child 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 or dependent child of such
Member of Congress shall be subject to a civil penalty of not more than
$100,000 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 any spouse or
dependent child of a Member of Congress, but only with
respect to a divestment of property required by the End
Congressional Stock Trading Act and only if, not later
than 60 days after the divestment of such property, the
individual uses the proceeds of the divestment to
obtain property which the individual is authorized to
own or trade under section 2(c)(1) of such Act, 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, as defined in section
13101 of title 5, United States Code, in the case of
Members of Congress and spouses and dependent children
of Members of Congress,'' after ``judicial officers''.
(3) No effect on subsequent sale of property.--Nothing in
the amendments made by this subsection shall be construed to
provide for the nonrecognition of gain with respect to the sale
of property obtained by a Member of Congress or any spouse or
dependent child of a Member of Congress with the proceeds of a
divestment required by this Act, as described in section
1043(b)(1)(B) of the Internal Revenue Code of 1986 (as added by
this subsection).
(4) 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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