119-s1879

[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.''.
 <all>