[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1879 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 1879
To amend chapter 131 of title 5, United States Code, to require Members
of Congress and their spouses and dependent children to place certain
assets into blind trusts, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 22, 2025
Mr. Ossoff (for himself, Mr. Kelly, Ms. Baldwin, Ms. Duckworth, Mr.
Schatz, Mrs. Shaheen, Mr. Warnock, Mr. Bennet, and Mrs. Gillibrand)
introduced the following bill; which was read twice and referred to the
Committee on Homeland Security and Governmental Affairs
_______________________________________________________________________
A BILL
To amend chapter 131 of title 5, United States Code, to require Members
of Congress and their spouses and dependent children to place certain
assets into blind trusts, 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 ``Ban Congressional Stock Trading
Act''.
SEC. 2. PLACEMENT OF CERTAIN ASSETS OF MEMBERS OF CONGRESS, SPOUSES,
AND DEPENDENT CHILDREN IN QUALIFIED BLIND TRUSTS.
(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, Spouses, and
Dependent Children
``Sec. 13161. Definitions
``In this title:
``(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 a security, a
commodity, or a future; and
``(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.
``(B) Inclusions.--The term `covered investment'
includes an investment or economic interest described
in subparagraph (A) that is held directly, or in which
an individual has an indirect, beneficial, or economic
interest, through--
``(i) an investment fund;
``(ii) a trust (other than a qualified
blind 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.
``(C) 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 a spouse or dependent child of a
Member of Congress; or
``(v) any investment fund held in a
Federal, State, or local government employee
retirement plan.
``(D) Clarification.--An investment that achieves
compliance with applicable environmental, social, and
governance criteria shall not be considered to be a
covered investment solely by reason of that compliance.
``(3) Current.--The term `current', with respect to a
Member of Congress, means an individual who is serving as a
Member of Congress on the date of enactment of the Ban
Congressional Stock Trading Act.
``(4) Dependent child.--The term `dependent child' means,
with respect to any Member of Congress, any individual--
``(A) who has not attained the age of 19; and
``(B) who is a dependent, within the meaning of
section 152 of the Internal Revenue Code of 1986, of
the Member of Congress.
``(5) 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, single country other than the United
States, or bonds of a single State.
``(6) 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.
``(7) 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.
``(8) Interested party.--The term `interested party' has
the meaning given the term in section 13104(f)(3)(E).
``(9) Member of congress.--The term `Member of Congress'
has the meaning given the term in section 13101.
``(10) New.--The term `new', with respect to a Member of
Congress, means an individual who--
``(A) is not a current Member of Congress; but
``(B) commences service as a Member of Congress
after the date of enactment of the Ban Congressional
Stock Trading Act.
``(11) 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).
``(12) 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)).
``(13) Supervising ethics office.--The term `supervising
ethics office' has the meaning given the term in section 13101.
``Sec. 13162. Placement of certain assets in qualified blind trusts
``(a) Current Members of Congress.--
``(1) Certification.--Not later than 30 days after the date
of enactment of the Ban Congressional Stock Trading Act, each
current Member of Congress shall submit to the applicable
supervising ethics office a certification that, as applicable--
``(A) for each covered investment owned by the
Member of Congress or a spouse or dependent child of
the Member of Congress, the Member of Congress, or the
applicable spouse or dependent child of the Member of
Congress, will--
``(i) divest the covered investment; or
``(ii) place the covered investment in a
qualified blind trust, including by
establishing a qualified blind trust for that
purpose, if necessary; or
``(B) neither the Member of Congress nor any spouse
or dependent child of the Member of Congress owns a
covered investment.
``(2) Divestiture or placement in qualified blind trust.--
``(A) Requirement.--Subject to paragraph (3), not
later than 120 days after the date of enactment of the
Ban Congressional Stock Trading Act, each current
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 by the Member of Congress
or a spouse or dependent child of the Member of
Congress.
``(B) Divestiture.--A current Member of Congress
shall divest a covered investment held by the Member of
Congress or a spouse or dependent child of the Member
of Congress if--
``(i) the Member of Congress, or the
applicable spouse or dependent child of the
Member of Congress, is unable to place the
covered investment in a qualified blind trust
by the date described in subparagraph (A); and
``(ii) the Member of Congress fails to
obtain an extension pursuant to paragraph (3).
``(3) Extensions.--If a current Member of Congress, or a
spouse or dependent child of the Member of Congress, is unable
to place a covered investment in a qualified blind trust by the
date described in paragraph (2)(A), the Member of Congress may
request, and the supervising ethics office may grant, 1 or more
reasonable extensions, subject to the conditions that--
``(A) the total period of time covered by all
extensions granted to the Member of Congress for the
covered investment shall not exceed 180 days; and
``(B) the period covered by a single extension
shall be not longer than 45 days.
``(b) New Members of Congress.--
``(1) Certification.--Not later than 30 days after the date
on which an individual becomes a new Member of Congress, the
new Member of Congress shall submit to the applicable
supervising ethics office a certification that, as applicable--
``(A) for each covered investment owned by the
Member of Congress or a spouse or dependent child of
the Member of Congress, the Member of Congress, or the
applicable spouse or dependent child of the Member of
Congress, will--
``(i) divest the covered investment; or
``(ii) place the covered investment in a
qualified blind trust, including by
establishing a qualified blind trust for that
purpose, if necessary; or
``(B) neither the Member of Congress nor a spouse
or dependent child of the Member of Congress owns a
covered investment.
``(2) Divestiture or placement in qualified blind trust.--
``(A) Requirement.--Subject to paragraph (3), not
later than 120 days after the date on which an
individual becomes a new Member of Congress, the
individual 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 by the Member of Congress or a spouse
or dependent child of the Member of Congress.
``(B) Divestiture.--A new Member of Congress shall
divest a covered investment held by the Member of
Congress or a spouse or dependent child of the Member
of Congress if--
``(i) the Member of Congress, or the
applicable spouse or dependent child of the
Member of Congress, is unable to place the
covered investment in a qualified blind trust
by the date described in subparagraph (A); and
``(ii) the Member of Congress fails to
obtain an extension pursuant to paragraph (3).
``(3) Extensions.--If a new Member of Congress, or a spouse
or dependent child of the Member of Congress, is unable to
place a covered investment in a qualified blind trust by the
date described in paragraph (2)(A), the Member of Congress may
request, and the supervising ethics office may grant, 1 or more
reasonable extensions, subject to the conditions that--
``(A) the total period of time covered by all
extensions granted to the Member of Congress for the
covered investment shall not exceed 180 days; and
``(B) the period covered by a single extension
shall be not longer than 45 days.
``(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 Ban
Congressional Stock Trading Act, a Member of Congress, and a
spouse or dependent child of the Member of Congress, may not
acquire a covered investment.
``(2) Inheritances.--
``(A) In general.--Subject to subparagraph (B), a
Member of Congress or a spouse or dependent child of a
Member of Congress who inherits a covered investment
shall divest or place the covered investment in a
qualified blind trust by not later than 120 days after
the date on which the covered investment is inherited.
``(B) Extensions.--If a Member of Congress, or a
spouse or dependent child of the Member of Congress, is
unable to place a covered investment in a qualified
blind trust by the date described in subparagraph (A),
the Member of Congress 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 to the Member of
Congress for the covered investment shall not
exceed 180 days; and
``(ii) the period covered by a single
extension shall be not longer than 45 days.
``(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)(1)(A)(ii) or
(b)(1)(A)(ii).
``(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
180 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--
``(1) dissolve any qualified blind trust in which a covered
investment has been placed pursuant to subsection (a), (b),
(c)(2), or (d); or
``(2) except as provided in this section, otherwise control
a covered investment.
``(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 certification submitted to the
supervising ethics office under subsection
(a)(1) or (b)(1);
``(ii) each qualified blind trust agreement
of each Member of Congress;
``(iii) each notice and other documentation
submitted to the supervising ethics office
under paragraph (2) or (3); and
``(iv) each notice, rule, and other
documentation issued or received by the
supervising ethics office under subsection (g);
``(B) a schedule of all assets placed in a
qualified blind trust by each Member of Congress and
interested party; and
``(C) a description of each extension granted, and
each civil penalty imposed, pursuant to this section.
``(2) Trustees.--Each trustee of a qualified blind trust
established by a Member of Congress shall submit to the Member
of Congress and the applicable supervising ethics office a
written notice in any case in which the trustee--
``(A) learns that--
``(i) an interested party has obtained
knowledge of any trust property other than the
initial property of the qualified blind trust;
or
``(ii) the value of the initial property of
the qualified blind trust is less than $1,000;
or
``(B) divests any initial property of the qualified
blind trust.
``(3) Members of congress.--Each Member of Congress who is
a beneficiary of a qualified blind trust shall submit to the
applicable supervising ethics office--
``(A) a copy of the executed qualified blind trust
agreement by not later than 30 days after the date of
execution;
``(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;
``(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;
``(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
``(E) a written notice of dissolution of the
qualified blind trust by not later than 30 days after
the date of dissolution.
``(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
Member of Congress who fails--
``(A) to submit a certification under subsection
(a)(1) or (b)(1) by the date on which the certification
is required to be submitted; or
``(B) to place 1 or more covered investments owned
by the Member of Congress or a spouse or dependent
child of the Member of Congress in a qualified blind
trust in accordance with subsection (a)(2), (b)(2),
(c)(2)(C)(i)(II), or (c)(2)(A) by the applicable
deadline, subject to any extension under subsection
(a)(3), (b)(3), or (c)(2)(B).
``(2) Civil penalties.--
``(A) In general.--A supervising ethics office
shall impose a civil penalty, in the amount described
in subparagraph (B), on a Member of Congress 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) not less frequently than once every
30 days thereafter.
``(B) Amount.--The amount of each civil penalty
imposed on a Member of Congress pursuant to
subparagraph (A) shall be equal to the monthly
equivalent of the annual rate of pay payable to the
Member of Congress.
``(h) Authorization of Supervising Ethics Offices.--Each
supervising ethics office in the legislative branch may--
``(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 rules in accordance with this section to
establish new, and supplement existing, definitions applicable
to this section; and
``(4) publish on a website all documents and communications
described in this subsection.''.
(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, spouses, and
dependent children
``13161. Definitions.
``13162. Placement of certain assets in qualified blind trusts.''.
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