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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7264 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                                H. R. 7264

  To prohibit certain defense industry stock trading and ownership by 
 Members of Congress and spouses of Members of Congress, and for other 
                               purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            February 6, 2024

  Ms. Tlaib (for herself and Ms. Bush) introduced the following bill; 
   which was referred to the Committee on Financial Services, and in 
 addition to the Committees on House Administration, Agriculture, and 
   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 prohibit certain defense industry stock trading and ownership by 
 Members of Congress and spouses of Members of Congress, 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 ``Stop Politicians Profiting from War 
Act of 2024''.

SEC. 2. BAN ON CERTAIN DEFENSE INDUSTRY STOCK TRADING AND OWNERSHIP BY 
              MEMBERS OF CONGRESS, SPOUSES, AND DEPENDENT CHILDREN.

    (a) Definitions.--In this Act:
            (1) Commodity.--The term ``commodity'' has the meaning 
        given that term in section 1a of the Commodity Exchange Act (7 
        U.S.C. 1a).
            (2) Covered defense contractor.--The term ``covered defense 
        contractor'' means a person, other than an institution of 
        higher education (as defined under section 101 of the Higher 
        Education Act of 1965 (20 U.S.C. 1001)) or a non-profit medical 
        treatment facility, that has entered into a contract, 
        transaction, or other agreement with the Department of Defense.
            (3) 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.
            (4) Member of congress.--The term ``Member of Congress'' 
        has the meaning given that term in section 13101 of title 5, 
        United States Code.
            (5) Security.--The term ``security'' has the meaning given 
        that term in section 3(a) of Securities Exchange Act of 1934 
        (15 U.S.C. 78c(a)).
            (6) Widely held investment fund.--The term ``widely held 
        investment fund'' means a widely held investment fund described 
        in 13104(f)(8) of title 5, United States Code.
    (b) Divestment of Assets.--
            (1) In general.--Except as provided in subsection (c), no 
        Member of Congress, spouse of a Member of Congress, or 
        dependent child of a Member of Congress may have a financial 
        interest in a covered defense contractor, or may own an 
        interest in or trade (except as a divestment) any stock, bond, 
        commodity, future, or other form of security the value of which 
        is significantly based upon a covered defense contractor or an 
        entity in the defense industrial base, including an interest in 
        a hedge fund, a derivative, option, or other complex investment 
        vehicle.
            (2) Implementation.--
                    (A) Current members.--
                            (i) In general.--Except as provided in 
                        clause (ii), an individual who is a Member of 
                        Congress on the date of the enactment of this 
                        Act, or the spouse or dependent child of such 
                        an individual, shall complete the divestment of 
                        any asset described in paragraph (1) by not 
                        later than 120 days after the date of enactment 
                        of this Act.
                            (ii) Certain assets.--For an asset 
                        described in paragraph (1) that is an interest 
                        in a hedge fund, venture capital fund, or other 
                        privately held complex investment vehicle, an 
                        individual who is a Member of Congress on the 
                        date of enactment of this Act, or the spouse or 
                        dependent child of such an individual, shall 
                        complete the divestment of the asset by not 
                        later than 180 days after the date of enactment 
                        of this Act.
                            (iii) Application.--This subparagraph shall 
                        apply to a covered defense contractor that is 
                        performing or has performed a contract for the 
                        Department of Defense during the 5-year period 
                        preceding the date of the enactment of this 
                        Act.
                    (B) New members.--
                            (i) In general.--Except as provided in 
                        clause (ii), an individual who becomes a Member 
                        of Congress after the date of enactment of this 
                        Act, or who is the spouse of such an 
                        individual, shall complete the divestment of 
                        any asset described in paragraph (1) by not 
                        later than 120 days after the date on which the 
                        individual becomes a Member of Congress.
                            (ii) Certain assets.--For an asset 
                        described in paragraph (1) that is an interest 
                        in a hedge fund, venture capital fund, or other 
                        privately held complex investment vehicle, an 
                        individual who becomes a Member of Congress 
                        after the date of enactment of this Act, or who 
                        is the spouse or dependent child of such an 
                        individual, shall complete the divestment of 
                        the asset by not later than 180 days after the 
                        date on which the individual becomes a Member 
                        of Congress.
                            (iii) Application.--This subparagraph shall 
                        apply to a covered defense contractor that is 
                        performing or has performed a contract for the 
                        Department of Defense during the 5-year period 
                        preceding the date on which the individual 
                        becomes a Member of Congress.
                    (C) Divestment of assets received while a member.--
                An individual serving as a Member of Congress, or the 
                spouse or dependent child of such an individual, who 
                receives any asset described in paragraph (1) during 
                the period of such service, such as from an 
                inheritance, shall complete the divestment of the asset 
                by not later than 120 days after the date on which the 
                individual or spouse receives the asset.
                    (D) Qualified blind trust prohibited.--Placing an 
                asset described in paragraph (1) in a qualified blind 
                trust (as that term is defined in section 13104(f)(3) 
                of title 5, United States Code), or any other blind 
                trust, shall not qualify as a divestment under such 
                paragraph for purposes of compliance with the 
                requirements of this Act.
    (c) Exceptions.--Nothing in this section shall be construed to 
prevent--
            (1) a Member of Congress or their spouse or dependent child 
        from owning or trading--
                    (A) a widely held investment fund, if the widely 
                held investment fund--
                            (i) does not present a conflict of 
                        interest;
                            (ii) is diversified; and
                            (iii) in the literature it distributes to 
                        prospective and current investors or 
                        participants, does not indicate the objective 
                        or practice of concentrating its investments in 
                        covered defense contractors or entities in the 
                        defense industrial base, if the Member of 
                        Congress, or the spouse or dependent child of 
                        such an individual, neither exercises control 
                        nor has the ability to exercise control over 
                        the financial interests held in the fund;
                    (B) shares 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));
                    (C) shares of Settlement Common Stock, as defined 
                in section 3 of the Alaska Native Claims Settlement Act 
                (43 U.S.C. 1602);
                    (D) a United States Treasury bill, note, or bond;
                    (E) an investment fund held in a Federal, State, or 
                local government employee retirement plan; or
                    (F) an interest in an investment fund registered as 
                an investment company under section 3 of the Investment 
                Company Act of 1940 (15 U.S.C. 80a-3) that is 
                diversified; and
            (2) a spouse or dependent child of a Member of Congress 
        from trading any asset described in subsection (b)(1) that is 
        not owned by the spouse, child, or Member of Congress in the 
        course of performing the primary occupation of the spouse or 
        child.
    (d) Civil Fines.--The Attorney General or the Special Counsel may 
bring a civil action in the appropriate United States district court 
against any Member of Congress or their spouse or dependent child who 
engages in conduct constituting a violation of this section and, upon 
proof of such conduct by a preponderance of the evidence, such Member 
of Congress, spouse, or child (as the case may be) shall be subject to 
a civil penalty of not more than $50,000 for each violation. The 
imposition of a civil penalty under this subsection does not preclude 
any other criminal or civil statutory, common law, or administrative 
remedy, which is available by law to the United States or any other 
person.
    (e) Nonrecognition of Gain.--
            (1) In general.--Paragraph (1) of section 1043(b) of the 
        Internal Revenue Code of 1986 is amended--
                    (A) by striking ``and'' at the end of subparagraph 
                (A);
                    (B) by redesignating subparagraph (B) as 
                subparagraph (C);
                    (C) by inserting after subparagraph (A) the 
                following new subparagraph:
                    ``(B) any Member of Congress or Member of Congress-
                elect, but only with respect to a divestment of 
                property required by the Stop Politicians Profiting 
                from War Act of 2024, and''; and
                    (D) by striking ``subparagraph (A)'' in 
                subparagraph (C), as so redesignated, and inserting 
                ``subparagraph (A) or (B), whichever is applicable''.
            (2) Certificate of divestiture.--Subparagraph (B) of 
        section 1043(b)(2) of such Code is amended--
                    (A) by striking ``or by'' and inserting ``by''; and
                    (B) by inserting ``, or by the applicable 
                congressional ethics committee (as that term is defined 
                in section 13101 of title 5), in the case of Members of 
                Congress, Members of Congress-elect, and spouses of 
                Members of Congress and Members of Congress-elect'' 
                after ``judicial officers''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to sales of property after the date of the 
        enactment of this Act.
    (f) Interpretive Guidance.--The Select Committee on Ethics of the 
Senate and the Committee on Ethics of the House of Representatives 
shall issue interpretive guidance regarding relevant terms not defined 
in this Act.
                                 <all>
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