Bipartisan Restoring Faith in Government Act

Subjects: Congress


<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3003 Introduced in House (IH)]

&lt;DOC&gt;






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.''.
                                 &lt;all&gt;
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