(a) In general

Chapter 131 of title 5, United States Code, is amended by adding at the end the following:

IV Certain assets of Members of Congress and their spouses and dependent children

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—

(I)

a security;

(II)

a commodity; or

(III)

a future;

(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; or

(iii)

any interest described in clause (i) or (ii) that is held directly, or in which an individual has an indirect, beneficial, or economic interest, through—

(I)

an investment fund or holding company;

(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.

(B) 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 the spouse of a Member of Congress, or any security that is issued or paid by an operating business that is the primary employer of such a spouse that is issued or paid to such a spouse;

(v)

holding and acquiring any security that is issued or paid as compensation from corporate board service by the spouse of a Member of Congress, including the dividend reinvestment in the same security received from the corporate board service by the spouse of a Member of Congress;

(vi)

any covered investment that is traded by the spouse of a Member of Congress in the course of performing the primary occupation of such a spouse, provided the investment is not owned by a covered person;

(vii)

any investment fund held in a Federal, State, or local government employee retirement plan;

(viii)

a tax-free State or municipal bond;

(ix)

an interest in a small business concern, if the supervising ethics office determines that the small business concern does not present a conflict of interest, and, in the case of an investment in a family farm or ranch that qualifies as an interest in a small business concern, a future or commodity directly related to the farming activities and products of the farm or ranch;

(x)

holding investment-grade corporate bonds, provided that the corporate bonds are held by an individual who is a covered person on the date of enactment of the Ending Trading and Holdings in Congressional Stocks (ETHICS) Act;

(xi)

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

(xii)

any share of Settlement Common Stock, as defined in section 3 of the Alaska Native Claims Settlement Act (43 U.S.C. 1602).

(3) Covered person

The term covered person means—

(A)

a Member of Congress; and

(B)

a spouse or dependent child of a Member of Congress.

(4) Custody

The term custody has the meaning given the term in section 275.206(4)–2(d) of title 17, Code of Federal Regulations (as in effect on the date of enactment of the Ending Trading and Holdings in Congressional Stocks (ETHICS) Act or a successor regulation).

(5) Dependent child

The term dependent child means, with respect to any Member of Congress any individual who is—

(A)

under the age of 19; and

(B)

a dependent of the Member of Congress within the meaning of section 152 of the Internal Revenue Code of 1986.

(6) 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, or single country other than the United States.

(7) 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.

(8) Illiquid investment

The term illiquid investment means an interest in a private fund, as defined in section 202(a)(29) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–2).

(9) 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.

(10) Interested party

The term interested party has the meaning given the term in section 102(f)(3)(E).

(11) Member of Congress; supervising ethics office

The terms Member of Congress and supervising ethics office have the meaning given those terms in section 13101.

(12) 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).

(13) 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)).

(14) Small business concern

The term small business concern has the meaning given the term under section 3 of the Small Business Act (15 U.S.C. 632).

13162. Trading covered investments

(a) Ban on trading

Except as provided in subsections (b) and (c)—

(1)

effective on the date of enactment of the Ending Trading and Holdings in Congressional Stocks (ETHICS) Act, a Member of Congress shall not purchase any covered investment;

(2)

effective on the date that is 90 days after the date of enactment of the Ending Trading and Holdings in Congressional Stocks (ETHICS) Act, a Member shall of Congress not sell any covered investment, except as provided in section 203(a)(2); and

(3)

on and after the effective date described in section 203(k), a covered person that is a spouse or dependent child of a Member of Congress shall not purchase any covered investment or sell any covered investment, except as provided in section 203(a)(2).

(b) Optional divestment window

Notwithstanding subsection (a)—

(1)

a Member of Congress who is sworn as a Member of Congress on or before the date of enactment of the Ending Trading and Holdings in Congressional Stocks (ETHICS) Act may sell a covered investment within 90 days of the date of enactment of such Act, provided that the Member of Congress may not sell any covered investment at any time outside of that period while the Member of Congress serves the term for which the Member of Congress was elected or is reelected or appointed as a Member of Congress except as provided in section 203(a)(2); and

(2)

a Member of Congress who is sworn as a Member of Congress after the date of enactment of the Ending Trading and Holdings in Congressional Stocks (ETHICS) Act may sell a covered investment within 90 days of commencing the term of service as a Member of Congress, provided that the Member of Congress may not sell any covered investment at any time outside of that period while the Member of Congress serves the term for which the Member of Congress was elected or is reelected or appointed as a Member of Congress except as provided in section 203(a)(2).

(c) Exception

Notwithstanding subsection (a), a covered person may divest a covered investment as directed by the relevant supervising ethics office pursuant to this Act.

(d) Joint covered investment

Any covered investment reported to the supervising ethics office as jointly owned by a Member of Congress and the spouse of the Member of Congress shall be deemed to be a covered investment of the Member of Congress for purposes of this section.

13163. Addressing owned covered investments

(a) Members of Congress

(1) Certification

Not later than 60 days after the applicable effective date described in subsection (j), a Member of Congress shall submit to the supervising ethics office a certification, which the supervising ethics office shall publish online that certifies that—

(A)

each covered investment owned by, or in the custody of, the Member of Congress, or a spouse or dependent child of the Member of Congress, will, by the applicable deadline under paragraph (2), be—

(i)

divested, as described in paragraph (2)(B); or

(ii)

placed in a qualified blind trust, including through the establishment of a qualified blind trust for that purpose, if necessary, as described in paragraph (2)(A); and

(B)

no spouse or dependent child of the Member of Congress owns, or has custody of, covered investments with a cumulative amount equal to more than $10,000, in accordance with paragraph (6).

(2) Divestiture or placement in qualified blind trust

(A) Requirement

Subject to paragraphs (3) and (6) and subsection (b)(2), not later than 120 days after the applicable effective date described in subsection (j), a 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 or in the custody of—

(i)

the Member of Congress; or

(ii)

a spouse or dependent child of the Member of Congress.

(B) Divestiture

A covered person shall divest any covered investment owned by or in the custody of the covered person that is not placed in a qualified blind trust not later than the date described in subparagraph (A), subject to any extension granted under paragraph (3).

(C) Qualified blind trusts

(i) Mandatory sale of initial property in qualified blind trust

(I) In general

Subject to clause (ii), if a covered person places, or has placed before the applicable effective date described in subsection (j), 1 or more covered investments in a qualified blind trust, the trustee of the qualified blind trust shall divest any such covered investment not later than the date specified in subclause (II).

(II) Deadline

The date specified in this subclause is—

(aa)

with respect to a covered investment placed in a qualified blind trust before the applicable effective date described in subsection (j), 120 days after such applicable effective date; and

(bb)

with respect to a covered investment placed in a qualified blind trust on or after the applicable effective date described in subsection (j), 120 days after the date of creation of the qualified blind trust, as dated by the executed qualified blind trust agreement.

(III) Notice of compliance

(aa) In general

Subject to item (bb), upon completion of the divestiture of all initial property pursuant to subclause (I)—

(AA)

the trustee of a qualified blind trust shall submit to the supervising ethics office and each beneficiary of the trust a written notice stating that all initial property of the qualified blind trust has been divested; and

(BB)

the supervising ethics office shall publish the notice described in subitem (AA) on the website of the supervising ethics office.

(bb) Contents

Each notice described in item (aa)(AA)—

(AA)

shall only identify the initial property generally by referring to the complete list of assets described in section 102(f)(5)(A)(ii) of the Ethics in Government Act (5 U.S.C. App.); and

(BB)

may not contain any other information relating to any holding of the qualified blind trust or the timing of any divestiture.

(ii) Extension of mandatory sale of initial property

(I) Request

A covered person may apply to the supervising ethics office for an extension of the period described in clause (i)(I) if the size or complexity of the covered investments in the qualified blind trust warrant such extension.

(II) Duration

An extension granted under subclause (I) shall not exceed 90 days.

(D) Illiquid investments

(i) Sale

Not later than 90 days after the date on which a covered person is contractually permitted to sell an illiquid investment, the covered person shall divest the illiquid investment.

(ii) Prohibition

A covered person may not place an illiquid investment in any qualified blind trust under subparagraph (A).

(E) Trustees

A trustee of a qualified blind trust—

(i)

shall be required to be a financial institution, as defined in section 1a of the Commodity Exchange Act (7 U.S.C. 1a); and

(ii)

except for a financial institution, may not be—

(I)

an attorney;

(II)

a certified public accountant;

(III)

a broker, as defined in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)); or

(IV)

an investment advisor.

(3) Extension of assets being placed in qualified blind trusts

If a covered person is unable to place a covered investment in a qualified blind trust by the date described in paragraph (2)(A), the applicable 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 for the covered investment shall not exceed 150 days; and

(B)

the period covered by a single extension shall be not longer than 45 days.

(4) Communications regarding existing qualified blind trusts

(A) In general

Any direct or indirect communication relating to a qualified blind trust in existence on the applicable effective date described in subsection (j) between a trustee of the qualified blind trust and an interested party shall be permissible for purposes of this title if the communication—

(i)

(I)

is made—

(aa)

in writing; and

(bb)

not later than 60 days after that effective date;

(II)

is filed with the applicable supervising ethics office by the person initiating the communication not less than 5 days before the date of the communication;

(III)

relates to a direction or request to the trustee—

(aa)

to sell all initial property placed in the qualified blind trust by any interested party; or

(bb)

to convert all of an asset in the qualified blind trust into an investment other than a covered investment; and

(ii)

is otherwise permitted under section 102(f)(3)(C)(vi).

(5) Communications between covered persons and trustees relating to all qualified blind trusts

(A) Notification

A trustee of a qualified blind trust shall not notify a covered person if—

(i)

the value of the initial property of the qualified blind trust is less than $1,000; or

(ii)

the trustee divests any property of the qualified blind trust, other than the initial property required to be divested pursuant to paragraph (2).

(B) Communication

(i) In general

Any communication between a covered person and the trustee of the relevant qualified blind trust—

(I)

shall be in writing; and

(II)

submitted and approved in advance of the communication by the supervising ethics office.

(ii) Prohibition

A communication described in clause (i) may not include any information relating to the manner in which funds of the qualified blind trust are invested, including any information relating to—

(I)

any company in which the funds are invested; or

(II)

any sector in which the funds are invested.

(6) Exception for dependents

A covered person who is a dependent child of a Member of Congress may have a legal guardian hold or trade on behalf of the dependent child 1 or more covered investments provided that the value of the covered investments in total does not exceed $10,000.

(b) 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 Ending Trading and Holdings in Congressional Stocks (ETHICS) Act, no covered person may acquire any covered investment.

(2) Inheritances

(A) In general

Subject to subparagraph (B), a covered person who inherits a covered investment shall come into compliance as required under subsection (a) by not later than 120 days after the date on which the covered investment is inherited.

(B) Extensions

If a covered person is unable to meet the requirements of subparagraph (A), the applicable 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 for the covered investment shall not exceed 150 days; and

(ii)

the period covered by a single extension shall be not longer than 45 days.

(c) Family trusts

(1) In general

A supervising ethics office may grant an exemption for a family trust only if—

(A)

no covered person—

(i)

is a grantor of the family trust;

(ii)

contributed any asset 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 person.

(2) Requests

A covered person seeking an exemption under paragraph (1) 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.

(3) Publication

A supervising ethics office shall publish on the public website of the supervising ethics office—

(A)

a copy of each request submitted under paragraph (2); and

(B)

the written response of the supervising ethics office to each request described in subparagraph (A).

(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).

(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 90 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)(2); or

(2)

except as provided in this section, otherwise control a covered investment, including purchasing new covered investments.

(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);

(ii)

each qualified blind trust agreement of each covered person;

(iii)

each notice and other documentation submitted to the supervising ethics office under this section; and

(iv)

each notice, ruling, and other documentation issued or received by the supervising ethics office under subsection (c);

(B)

a schedule of all assets placed in a qualified blind trust by each covered person 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 covered person shall submit to the covered person and the applicable supervising ethics office a written notice in any case in which the trustee learns that an interested party has obtained knowledge of any trust property other than the initial property of the qualified blind trust.

(3) Member 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.

(4) Federal benefits

(A) Covered payment

In this paragraph, the term covered payment—

(i)

means a payment of money or any other item of value made, or promised to be made, by the Federal Government;

(ii)

includes—

(I)

a loan agreement, contract, or grant made, or promised to be made, by the Federal Government, including such an agreement, contract, or grant relating to agricultural activity; and

(II)

such other types of payment of money or items of value as the supervising ethics office, may establish, by guidance; and

(iii)

does not include—

(I)

any salary or compensation for service performed as, or reimbursement of personal outlay by, an officer or employee of the Federal Government; or

(II)

any tax refund (including a refundable tax credit).

(B) Reporting requirement

Not later than 30 days after the date of receipt of a notice of any application for, or receipt of, a covered payment by a covered person (including any business owned and controlled by the covered person), but in no case later than 45 days after the date on which the covered payment is made or promised to be made, the covered person shall submit to the applicable supervising ethics office a report describing the covered payment.

(g) Enforcement

(1) Divestiture or placement in qualified blind trust

(A) In general

The applicable supervising ethics office shall provide a written notice (including notice of the potential for civil penalties under subparagraph (B)) to any Member of Congress if the Member of Congress, or spouse or dependent child of the Member of Congress—

(i)

fails to submit a certification under subsection (a)(1) by the date on which the certification is required to be submitted;

(ii)

fails to divest or place in a qualified blind trust a covered investment owned by, or in the custody of the covered person, in accordance with subsection (a)(2), subject to any extension under subsection (a)(3); or

(iii)

acquires an interest in a covered investment in violation of this section.

(B) Civil penalties

(i) In general

In the event of continuing noncompliance after issuance of the notice described in subparagraph (A), the supervising ethics office shall impose a civil penalty, in the amount described in clause (ii), on a Member of Congress to whom a notice is provided under clause (i) or (ii) of subparagraph (A)—

(I)

on the date that is 30 days after the date of provision of the notice; and

(II)

during the period in which such noncompliance continues, not less frequently than once every 30 days thereafter.

(ii) Amount

The amount of each civil penalty imposed on a Member of Congress pursuant to clause (i) shall be equal to the greater of—

(I)

the monthly equivalent of the annual rate of pay payable to the Member of Congress; and

(II)

an amount equal to 10 percent of the value of each covered investment that was not divested or placed into a qualified blind trust in violation of this section during the period covered by the penalty.

(2) Communications

The Attorney General of the United States shall file a civil action seeking to impose a civil penalty on any covered person or trustee of a qualified blind trust who violates subsection (a)(4), or otherwise discloses the contents of a qualified blind trust to any unauthorized individual, equal to the greater of—

(A)

$10,000 per each communication; or

(B)

1 percent of the value of the qualified blind trust on the date of the violation.

(h) Duties of supervising ethics offices

Each supervising ethics office in the legislative branch shall—

(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 such rules and guidelines as the supervising ethics office determines to be appropriate for the implementation and application of this title; and

(4)

publish on a website all documents and communications described in this subsection.

(i) Rule of construction

Nothing in this section shall be construed to prevent a covered person from owning or trading—

(1)

a diversified mutual fund; or

(2)

a publicly traded, diversified exchange traded fund.

(j) Effective date

This section shall apply to each covered person beginning on the date on which the covered person (or with respect to a covered person that is a spouse or dependent child of a Member of Congress, the date on which that Member of Congress) commences the first new term of service as a Member of Congress on or after January 31, 2023.

(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:

(c) Technical and conforming amendments

(a) Fines for failure To report

(b) Rules, regulations, guidance, and documents

Not later than 1 year after the date of enactment of this Act, each supervising ethics office (as defined in section 2 of the STOCK Act (5 U.S.C. App. 101 note)) (including the Administrative Office of the United States Courts, as applicable) shall amend the rules, regulations, guidance, documents, papers, and other records of the supervising ethics office in accordance with the amendment made by this section.

(a) Members of Congress and congressional staff

Section 8(b)(1) of the STOCK Act (5 U.S.C. App. 105 note) is amended—

(b) Effective date

The amendments made by this section take effect on the date that is 18 months after the date of enactment of this Act.