H.R. 253

119 HR 253 IH: Bipartisan Restoring Faith in Government Act
 U.S. House of Representatives
 2025-01-09
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 I  119th CONGRESS  1st Session  H. R. 253  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.
1.
Short title
This Act may be cited as the   Bipartisan Restoring Faith in Government Act  .
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:
IV
Prohibition on Congressional Ownership of Financial Investments
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.
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.
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.
  .