(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:

(b) Restrictions

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

IV Restrictions on financial trade and ownership

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—

(i)

a precious metal (as defined in section 1027.100 of title 31, Code of Federal Regulations); or

(ii)

a prediction market contract.

(2) Covered individual

The term covered individual means any of the following:

(A)

An officer or employee of Congress (as defined in section 13101).

(B)

A judicial employee (as defined in section 13101).

(C)

A political appointee.

(D)

An officer or employee described in section 13103(f)(3) who is not a political appointee.

(E)

A candidate as defined in section 301 of the Federal Election Campaign Act of 1971 (52 U.S.C. 30101).

(3) Covered official

The term covered official means any of the following:

(A)

A Member of Congress as defined in section 13101 of this title.

(B)

A judicial officer (as defined in section 13101).

(C)

The President.

(D)

The Vice President.

(E)

An individual occupying a position described under sections 5312 through 5316 of title 5, United States Code (relating to the Executive Schedule).

(F)

A dependent child as defined in such section 13101 or a spouse of any individual described in subparagraphs (A) through (E).

(4) 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)

an investment described in subparagraph (A) which is held in a qualified blind trust;

(iii)

a diversified mutual fund (including any holdings of such a fund);

(iv)

a diversified exchange-traded fund (including any holdings of such a fund);

(v)

a United States Treasury bill, note, or bond;

(vi)

a State or municipal government bill, note, or bond;

(vii)

any compensation received by the spouse or dependent child of a covered official from their employer;

(viii)

an interest in a small business concern 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;

(ix)

an interest in a limited liability company created for the sole purpose of purchasing or holding real estate that serves as the personal residences of the Member of Congress;

(x)

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

(xi)

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

(5) 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.

(6) 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.

(7) Political appointee

The term political appointee means an individual—

(A)

serving under a noncareer appointment in the Senior Executive Service, as defined under paragraph (7) of section 3132(a) of such title; or

(B)

occupying a position in the executive branch of the Government of a confidential or policy-determining character under schedule C of subpart C of part 213 of title 5, Code of Federal Regulations.

(8) Prediction market contract

The term prediction market contract means any financial instrument, contract, or derivative—

(A)

listed on or offered by a platform, regardless of whether the platform is domiciled in the United States; and

(B)

tied to the occurrence or non-occurrence of an event, including event contracts, as described in section 5c(c)(5)(C)(i) of the Commodity Exchange Act (7 U.S.C. 7a14 2(c)(5)(C)(i)).

(9) Prohibited action

The term prohibited action means any activity described in subsections (a) or (b) of section 13152.

(10) Qualified blind trust

The term qualified blind trust has the meaning given the term in section 13104(f)(3).

(11) 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)).

(12) 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).

(13) Supervising ethics office

The term supervising ethics office—

(A)

has the meaning given the term in section 13101; or

(B)

means the Federal Elections Commission for a covered individual described in paragraph (2)(E).

13152. Financial trade and ownership

(a) Trade and ownership of covered investment

Except as described in subsection (c), (e), a covered official may not directly or indirectly, own or trade a covered investment.

(b) Prediction market contract trades

No covered official or covered individual may enter into, or offer to enter into a prediction market contract that is dependent on the occurrence, nonoccurrence, or the extent of the occurrence of a specific political or governmental event, action, or policy.

(c) Compliance

(1) Requirement

To comply with subsection (a), a covered official shall divest of any covered investment through sale at fair market value or placement in a qualified blind trust by the effective date established in paragraph (2).

(2) Effective date

The effective date is established as follows:

(A)

Ninety days for an individual who is a covered official on the date of enactment of the No Profiting from Public Service Act.

(B)

Ninety days within the date on which an individual becomes a covered official if such date occurs after the date of enactment of the No Profiting from Public Service Act.

(3) Assets acquired in special circumstances

In the event that a covered official acquires a covered investment after the date of enactment of the No Profiting from Public Service Act other than by purchase (such as by marriage, inheritance, divorce settlement, or other circumstance), the covered official shall have 90 days from the date on which such investment was acquired to divest such covered investment at fair market value or transfer it into a qualified blind trust.

(4) Assets in qualified blind trusts upon separation

A covered official may not dissolve any qualified blind trust in which a covered investment has been placed pursuant to subsection (d)(1)(B), or otherwise control such an investment, until the date that is 180 days after the date such covered official ceases to be a covered official.

(5) Trade and ownership upon separation

A covered individual or covered official, who within 180 days after the date the covered official or covered individual ceases to be a covered official or covered individual, respectively, engages in any of the activities under subsections (a) or (b), shall be subject to the penalties under section 13153.

(d) Occupational exception

A spouse or dependent child under section 13151(3)(F) may trade a covered investment if such covered investment is not owned by a covered official and if such trade is performed as a function of the primary occupation of the spouse or dependent child.

(e) Certificates of divestiture

(1) In general

Each supervising ethics office shall issue a certificate of divestiture to each covered official required to divest under this subchapter upon submission of proof of compliance by such official with the requirements to divest or any extensions granted by the supervising ethics office, and 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.

(2) Eligibility

For purposes of section 1043 of the Internal Revenue Code of 1986, a covered official shall not be treated as an eligible person described in section 1043(b)(1)(A) of such Code.

(f) Interpretative guidance

The supervising ethics office shall issue interpretive guidance on any relevant term not defined in this subchapter.

(g) Rule of construction

Except as described in subsections (c) and (d), a covered official or covered individual may not take any prohibited action through any trust, person, or other entity.

13153. Penalties

(a) In general

(1) Penalties

Any covered official or covered individual who violates the restrictions in section 13152 shall, at the direction of the supervising ethics office—

(A)

pay a fine of equal to 10 percent of the value of the covered investment or prediction market contract; and

(B)

disgorge the profits of any transaction that violates the provisions of this subchapter.

(2) Payment of penalty to general fund

A penalty imposed under paragraph (1) shall be deposited into general fund of the Treasury.

(b) Income tax

A loss from a prediction market contract or holding involving a covered investment that is conducted in violation of this Act may not be deducted from the amount of income tax owed by the covered official or covered individual.

(c) Payment restrictions

A covered official or covered individual may not pay any of the penalties under this section by using amounts from the following sources:

(1)

The Members’ Representational Allowance.

(2)

The Senators’ Official Personnel and Office Expense Account.

(3)

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.

(d) 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.