119-hr253

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 253 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 253

To amend title 5, United States Code, to restrict trading and ownership 
 of certain financial instruments by Members of Congress and their 
 spouses and dependents, and for other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 January 9, 2025

 Mr. Fitzpatrick (for himself, Ms. Ocasio-Cortez, Mr. Mills, and Mr. 
 Krishnamoorthi) introduced the following bill; which was referred to 
the Committee on House Administration, and in addition to the Committee 
 on 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 amend title 5, United States Code, to restrict trading and ownership 
 of certain financial instruments by Members of Congress and their 
 spouses and dependents, 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 Restoring Faith in 
Government Act''.

SEC. 2. PROHIBITION OF CONGRESSIONAL OWNERSHIP OF FINANCIAL 
 INVESTMENTS.

    (a) In General.--Chapter 131 of title 5, United States Code, is 
amended by adding at the end the following:

 ``SUBCHAPTER IV--PROHIBITION ON CONGRESSIONAL OWNERSHIP OF FINANCIAL 
 INVESTMENTS

``

Sec. 13151. Definitions
 ``In this subchapter:
 ``

    (1) Covered financial instrument.--The term `covered 
 financial instrument' means--
 ``
        (A) any investment in--
 ``
            (i) a security (as defined in 

section 3

    (a) of the Securities Exchange Act of 1934 (15 
 U.S.C. 78c

    (a) ));
 ``
            (ii) a security future (as defined in 
 

section 3

    (a) of the Securities Exchange Act of 
 1934 (15 U.S.C. 78c

    (a) )); or
 ``
            (iii) a commodity (as defined in 

section 1a of the Commodity Exchange Act (7 U.S.C. 
 1a)); and
 ``
        (B) any economic interest comparable to an 
 interest described in subclause
            (I) that is acquired 
 through synthetic means, such as the use of a 
 derivative, including an option, warrant, or other 
 similar means.
 ``

    (2) Covered individual.--The term `covered individual' 
 means any of the following:
 ``
        (A) A Member of Congress.
 ``
        (B) The spouse of a Member of Congress.
 ``
            (C) The dependent of a Member of Congress.
 ``

    (3) Dependent.--The term `dependent' has the meaning 
 given that term in 

section 13101.
 ``

    (4) Member of congress.--The term `Member of Congress' 
 has the meaning given that term in 

section 13101.
 ``

    (5) Qualified blind trust.--The term `qualified blind 
 trust' has the meaning given that term in 

section 13104

    (f)

    (3) .
 ``

    (6) Supervising ethics office.--The term `supervising 
 ethics office' has the meaning given that term in 

section 13101.
``

Sec. 13152. Limitation on owning or trading certain assets
 ``

    (a) Requirement.--
 ``

    (1) In general.--Except as provided in this section, no 
 covered individual may own or trade a covered financial 
 instrument.
 ``

    (2) Exceptions.--Nothing in this subchapter shall be 
 construed to prevent a covered individual from owning or 
 trading--
 ``
        (A) a widely held investment fund (as that term 
 is described in 

section 13104

    (f)

    (8) ) that is registered 
 as a management company under the Investment Company 
 Act, as amended (15 U.S.C. 80a-1 et seq.);
 ``
        (B) a United States Treasury bill, note, or bond;
 ``
            (C) any bond issued by a State or local 
 government; or
 ``
            (D) any investment under the Thrift Savings Plan.
 ``

    (b) Compliance.--
 ``

    (1) In general.--To comply with the requirement under 
 subsection

    (a) , a covered individual shall divest of a covered 
 financial instrument through sale or placement in a qualified 
 blind trust in accordance with subsection
            (c) .
 ``

    (2) Assets acquired through special circumstances.--In 
 the event that a covered individual acquires a covered 
 financial instrument after the date of enactment of the 
 Bipartisan Restoring Faith in Government Act other than by 
 purchase, the covered individual shall have 90 days from the 
 date on which such individual received such instrument to 
 divest of such instrument through any means provided under 
 paragraph

    (1) .
 ``
            (c) Time Period for Compliance.--
 ``

    (1) Covered individuals as of date of enactment.--
 ``
        (A) In general.--An individual who is a covered 
 individual as of the date of enactment of Bipartisan 
 Restoring Faith in Government Act shall have 90 days 
 following the date of enactment of such Act to divest 
 of such instrument through any means provided under 
 subsection

    (b)

    (1) .
 ``
        (B) Special rule for spouses.--A covered 
 individual who is a spouse of a Member of Congress and 
 who receives any financial instrument as compensation 
 for their primary employment shall divest of such 
 financial instrument not later than 90 days after the 
 date that the spouse is contractually permitted to sell 
 the covered investment.
 ``

    (2) Covered individuals after date of enactment.--An 
 individual who becomes a covered individual after the date of 
 enactment of the Bipartisan Restoring Faith in Government Act 
 shall have 90 days from the date on which such individual 
 becomes a covered individual to divest of such instrument 
 through any means provided under subsection

    (b)

    (1) .
 ``

    (3) Qualified blind trust requirements.--Notwithstanding 
 paragraphs

    (1) and

    (2) , a qualified blind trust may not be 
 established for purposes of complying with this subchapter 
 without the prior approval of the supervising ethics office. 
 With respect to any such trust so approved, the applicable 
 trustee--
 ``
        (A) shall divest of any such instrument placed in 
 the trust not later than 6 months after the trust is 
 established;
 ``
        (B) shall certify to the applicable supervising 
 ethics office on an annual basis that the trustee has 
 not provided any information on the trust's assets or 
 transactions to the applicable covered individual; and
 ``
            (C) may not have a close personal or business 
 relationship with the applicable covered individual.
 ``
            (d) Income Tax.--A loss from a transaction or holding involving a 
covered financial instrument that is conducted in violation of this 
section may not be deducted from the amount of income tax owed by the 
covered individual.
 ``

    (e) Assets Upon Separation.--In the case of a spouse or dependent 
who ceases to be a covered individual, such spouse or dependent may 
regain control over any covered financial instrument that was placed 
into a qualified blind trust pursuant to subsection

    (a) .
 ``

    (f) Proof of Compliance.--
 ``

    (1) Submission.--A Member of Congress shall submit to the 
 supervising ethics office a pledge of compliance with the 
 requirements of this subchapter, and shall produce, upon 
 request of the supervising ethics office, material or 
 information determined by the supervising ethics committee to 
 be necessary to indicate compliance with the provisions of this 
 subchapter.
 ``

    (2) Certificate.--The supervising ethics office shall 
 provide each Member of Congress in compliance with the 
 provisions of this Act with a certificate of compliance.
 ``

    (3) Publication.--The supervising ethics office shall 
 make available, on a publicly accessible website, all 
 certificates issued under this subsection.
``

Sec. 13153. Enforcement
 ``

    (a) Referral.--The supervising ethics office shall refer to the 
Attorney General the name of any covered individual who such office has 
reasonable cause to believe has willfully failed to comply with the 
requirements of 

section 13152.
 ``

    (b) Penalty.--
 ``

    (1) In general.--The Attorney General may bring a civil 
 action in any appropriate United States district court against 
 any covered individual who knowingly and willfully fails to 
 comply with 

section 13152. The court in which such action is 
 brought may assess against such individual a civil penalty in 
 any amount, not to exceed $50,000.
 ``

    (2) Limitation.--A covered individual may not pay any 
 penalty resulting from a civil action under paragraph

    (1) using--
 ``
        (A) funds from a Members' Representational 
 Allowance or Senators' Official Personnel and Office 
 Expense Account (as the case may be); or
 ``
        (B) funds of any political committee under the 
 Federal Election Campaign Act of 1971 (52 U.S.C. 30101 
 et seq.).''.

    (b) Application of Tax Rules for Sales of Property To Comply With 
Conflict-of-Interest Requirements.--

Section 1043 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
subsection:
 ``
            (d) Application to Prohibition on Congressional Ownership of 
Certain Assets.--
 ``

    (1) Treatment as conflict of interest statute.--For 
 purposes of subsection

    (b)

    (2)
        (A) , subchapter IV of chapter 131 
 of title 5, United States Code, shall be treated as a Federal 
 conflict of interest statute.
 ``

    (2) Covered individuals treated as eligible persons.--For 
 purposes of this section--
 ``
        (A) the term `eligible person' shall include 
 covered individuals (as defined in 

section 13151 of 
 title 5, United States Code), and
 ``
        (B) such covered individuals shall be treated as 
 referred to in subsection

    (b)

    (1)
        (A) for purposes of 
 applying subsection

    (b)

    (5)
        (A) .
 ``

    (3) Certificates of divestiture issued by ethics 
 committee.--In the case of any covered individual referred to 
 in paragraph

    (2)
        (A) , a certificate of divestiture meets the 
 requirement of subsection

    (b)

    (2)
        (B) if such certificate is 
 issued by the applicable Congressional ethics committee.''.
            (c) Clerical Amendment.--The table of sections for such chapter is 
amended by inserting after the item relating to 

section 13146 the 
following:

 ``subchapter iv--prohibition on congressional ownership of financial 
 investments

``13151. Definitions.
``13152. Limitation on owning or trading certain assets.
``13153. Enforcement.''.
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