119-hr5106

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5106 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 5106

 To amend chapter 131 of title 5 to prohibit Members of Congress and 
 their spouses and dependents from owning or trading stocks, and for 
 other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 September 3, 2025

 Mr. Roy (for himself, Mr. Magaziner, Mr. Burchett, Ms. Jayapal, Mr. 
 Fitzpatrick, Ms. Ocasio-Cortez, Mrs. Luna, Mr. Krishnamoorthi, Mr. 
Perry, Mr. Min, Mr. Nunn of Iowa, Mr. Neguse, Mr. Cloud, Mr. Levin, Mr. 
 Norman, Mr. Riley of New York, and Mrs. Cammack) introduced the 
 following bill; which was referred to the Committee on House 
 Administration

_______________________________________________________________________

 A BILL

 To amend chapter 131 of title 5 to prohibit Members of Congress and 
 their spouses and dependents from owning or trading stocks, 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 ``Restore Trust in Congress Act''.

SEC. 2. RESTRICTIONS ON TRADE AND OWNERSHIP OF COVERED INVESTMENTS.

    (a) Table of Contents.--The table of contents for chapter 131 of 
title 5, United States Code, is amended by adding at the end the 
following:

 subchapter iv. restrictions on trade and ownership of covered 
 investments

13151. Definitions.
13152. Trade and ownership of covered investments.
13153. Penalties.

    (b) Restrictions.--Chapter 131 of title 5, United States Code, is 
amended by adding at the end a new subchapter:

 ``SUBCHAPTER IV--RESTRICTIONS ON TRADE AND OWNERSHIP OF COVERED 
 INVESTMENTS

``

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

    (1) Commodity.--The term `commodity'--
 ``
        (A) has the meaning given the term in 

section 1a 
 of the Commodity Exchange Act (7 U.S.C. 1a); and
 ``
        (B) does not include a precious metal (as defined 
 in 

section 1027.100 of title 31, Code of Federal 
 Regulations).
 ``

    (2) Covered individual.--The term `covered individual' 
 means any of the following:
 ``
        (A) A Member of Congress as defined in 

section 13101.
 ``
        (B) A dependent child as defined in 

section 13101 
 or a spouse of a Member of Congress.
 ``
            (C) An individual or entity described in 

section 13104

    (f)

    (3)
        (A) with respect to a covered investment 
 placed in a trust for any individual described in 
 subparagraphs
        (A) or
        (B) .
 ``

    (3) Covered investment.--The term `covered investment'--
 ``
        (A) means an investment in a security, a 
 commodity, a future, or any comparable economic 
 interest acquired through synthetic means, such as the 
 use of a derivative, including an option, warrant, or 
 other similar means; and
 ``
        (B) does not include--
 ``
            (i) a widely held investment fund 
 described in 

section 13104

    (f)

    (8) that is 
 diversified and publicly traded on a national 
 or regional stock exchange;
 ``
            (ii) a United States Treasury bill, note, 
 or bond;
 ``
            (iii) a State or municipal government 
 bill, note, or bond;
 ``
            (iv) any compensation received by the 
 spouse or dependent child of a covered official 
 from their employer;
 ``
            (v) an interest in a small business 
 concern;
 ``
            (vi) an interest in a limited liability 
 company created for the sole purpose of 
 purchasing or holding real estate that serves 
 as the personal residence of the Member of 
 Congress;
 ``
            (vii) 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
 ``
            (viii) any share of Settlement Common 
 Stock, as defined in 

section 3 of the Alaska 
 Native Claims Settlement Act (43 U.S.C. 1602).
 ``

    (4) Diversified.--The term `diversified', with respect to 
 an investment fund, means such fund 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 within the United States except for the State 
 in which the Member of Congress resides.
 ``

    (5) Future.--The term `future' means a financial contract 
 obligating the buyer to purchase an asset or the seller to sell 
 an asset, such as a physical commodity or a financial 
 investment, at a predetermined future date and price.
 ``

    (6) 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) ).
 ``

    (7) 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).
 ``

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

section 13101.
``

Sec. 13152. Trade and ownership of covered investments
 ``

    (a) Conduct During Federal Service.--Except as described in 
subsection

    (b)

    (1)
        (B) and subsections
            (d) through

    (f) , no covered 
individual may, directly or indirectly, own or trade a covered 
investment.
 ``

    (b) Compliance.--
 ``

    (1) Requirement.--To comply with subsection

    (a) --
 ``
        (A) a covered individual may not purchase a 
 covered investment; and
 ``
        (B) a covered individual shall divest of any 
 covered investment by the effective date established in 
 paragraph

    (2) at fair market value.
 ``

    (2) Effective date.--The effective date is established as 
 follows:
 ``
        (A) 180 days for an individual who is a covered 
 individual on the date of enactment of the Restore 
 Trust in Congress Act.
 ``
        (B) 90 days within the date on which an 
 individual becomes a covered individual if such date 
 occurs after the date of enactment of the Restore Trust 
 in Congress Act.
 ``
            (c) Certificates of Divestiture.--
 ``

    (1) Application of certificate of divestiture program.--
 For purposes of 

section 1043 of the Internal Revenue Code of 
 1986--
 ``
        (A) this section shall be treated as a Federal 
 conflict of interest statute;
 ``
        (B) any covered individual described in 

section 13151

    (2)
        (A) shall be treated as an eligible person 
 described in 

section 1043

    (b)

    (1)
        (A) of such Code; and
 ``
            (C) any spouse or dependent child described in 
 

section 13151

    (2)
        (B) shall be treated as an eligible 
 person described in 

section 1043

    (b)

    (1)
        (B) of such Code.
 ``

    (2) Issuance of certificate of divestiture.--
 ``
        (A) In general.--Each supervising ethics office 
 shall issue a certificate of divestiture to each 
 covered individual required to divest under this 
 subchapter upon submission of proof of compliance by 
 such individual with the requirements to divest or any 
 extensions granted by the supervising ethics office.
 ``
        (B) Eligibility.--Such certificate shall include 
 an identification of each specific property eligible 
 for the application of the certificate of divestiture 
 program as determined by the supervising ethics office.
 ``
            (d) Occupational Exception.--A spouse or dependent child of a 
Member of Congress may trade any covered investment if such covered 
investment is not owned by a covered individual and if such trade is 
performed as a function of the primary occupation of the spouse or 
dependent child.
 ``

    (e) Trusts.--
 ``

    (1) Qualified blind trust.--Any covered investment held 
 in a qualified blind trust as defined in 

section 13104

    (f)

    (3) shall be divested in accordance with subsection

    (b)

    (1)
        (B) by 
 the effective date established in subsection

    (b)

    (2) .
 ``

    (2) Family trust.--A supervising ethics office may grant 
 an exemption for covered investments held in a family trust 
 only if--
 ``
        (A) no covered individual--
 ``
            (i) is a grantor of the family trust;
 ``
            (ii) contributed any covered investment 
 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 individual.
 ``

    (3) Requests.--A covered individual seeking an exemption 
 under paragraph

    (2) 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.
 ``

    (f) Assets Acquired in Special Circumstances.--In the event that 
a covered individual acquires a covered investment after the date of 
enactment of the Restore Trust in Congress Act other than by purchase 
(such as by marriage, inheritance, divorce settlement, or other 
circumstance), the covered individual shall have 90 days from the date 
on which such investment was acquired to divest such covered investment 
at fair market value.
 ``

    (g) Extension.--A supervising ethics office may grant a covered 
individual an extension of time to comply with a divestment deadline 
under this subchapter if a covered investment cannot be divested by 
such deadline due to low liquidity, vesting schedules, or contractual 
restrictions.
 ``

    (h) Interpretative Guidance.--The supervising ethics office shall 
issue interpretive guidance on any relevant term not defined in this 
subchapter.
``

Sec. 13153. Penalties
 ``

    (a) In General.--
 ``

    (1) Penalties.--Any covered individual who violates the 
 restrictions on trading or ownership of covered investments in 
 

section 13152 shall, at the direction of the supervising ethics 
 office--
 ``
        (A) pay a fee equal to ten percent of the value 
 of the covered investment; and
 ``
        (B) disgorge the profits of any transaction that 
 violates the provisions of this subchapter.
 ``

    (2) Payment of penalty to treasury.--A penalty imposed 
 under paragraph

    (1)
        (B) shall be payable into the Treasury of 
 the United States.
 ``

    (b) Payment Restrictions.--A Member of the House of 
Representatives may not pay any of the penalties under this section by 
using amounts from the following sources:
 ``

    (1) The Members' Representational Allowance.
 ``

    (2) Any contribution (as defined in 

section 301

    (8) of the 
 Federal Election Campaign Act of 1971 (52 U.S.C. 30101

    (8) )) 
 accepted as a candidate, and any other donation received as 
 support for activities of the individual as a holder of Federal 
 office.
 ``
            (c) Publication.--Each supervising ethics office shall publish on 
a publicly available website a description of--
 ``

    (1) each fine assessed by the supervising ethics office 
 pursuant to this section;
 ``

    (2) the reason why each such fine was assessed; and
 ``

    (3) the result of each assessment.''.
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