Bipartisan Restoring Faith in Government Act
This bill prohibits Members of Congress (and their spouses and dependents) from purchasing or selling certain investments, such as individual stocks and related financial instruments that are not diversified investment funds, U.S. Treasury securities, or other specified holdings.
Members must divest prohibited investments within 90 days by selling them or placing them in a qualified blind trust. The bill also restricts communications between trustees and beneficiaries related to investments held in qualified blind trusts.
Members must certify their compliance with the supervising ethics office, which must make the certificates publicly available online.
Violations are subject to specified civil penalties. Additionally, losses stemming from a transaction involving a prohibited investment that violates the provisions of the bill may not be deducted from income taxes.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3003 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 3003
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
April 28, 2023
Mr. Fitzpatrick (for himself, Ms. Ocasio-Cortez, Mr. Gaetz, 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.''.
<all>
Introduced in House
Introduced in House
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.
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.
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