Presidential Conflicts of Interest Act of 2023

Subjects: Government Operations and Politics


<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1486 Introduced in Senate (IS)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                S. 1486

 To address financial conflicts of interest of the President and Vice 
                               President.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 9, 2023

Ms. Warren (for herself, Mr. Murphy, Ms. Stabenow, Mrs. Feinstein, Mr. 
 Casey, Mr. Markey, Mr. Van Hollen, Mr. Blumenthal, Ms. Duckworth, Mr. 
Merkley, Mr. Brown, Mr. Booker, Mr. Bennet, Mrs. Murray, Mr. Wyden, Mr. 
 Cardin, Ms. Hirono, Mr. Padilla, Mr. Coons, Ms. Klobuchar, Mr. Lujan, 
 Mrs. Gillibrand, and Ms. Smith) introduced the following bill; which 
 was read twice and referred to the Committee on Homeland Security and 
                          Governmental Affairs

_______________________________________________________________________

                                 A BILL


 
 To address financial conflicts of interest of the President and Vice 
                               President.

    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 ``Presidential Conflicts of Interest 
Act of 2023''.

SEC. 2. DIVESTITURE OF PERSONAL FINANCIAL INTERESTS OF THE PRESIDENT 
              AND VICE PRESIDENT THAT POSE A POTENTIAL CONFLICT OF 
              INTEREST.

    (a) Definitions.--
            (1) In general.--In this section--
                    (A) the term ``conflict-free holding'' means an 
                interest in a widely held investment fund (whether such 
                fund is a mutual fund, regulated investment company, 
                pension or deferred compensation plan, or other 
                investment fund) that--
                            (i) is diversified (as defined in section 
                        2640.102 of title 5, Code of Federal 
                        Regulations, as in effect on the date of 
                        enactment of this Act); and
                            (ii) is--
                                    (I) publicly traded;
                                    (II) registered as a management 
                                company under the Investment Company 
                                Act of 1940 (15 U.S.C. 80a-1 et seq.); 
                                or
                                    (III) a unit investment trust (as 
                                defined in section 4 of the Investment 
                                Company Act of 1940 15 U.S.C. 80a-4) 
                                that is a regulated investment company 
                                under section 851 of the Internal 
                                Revenue Code of 1986;
                    (B) the term ``financial interest posing a 
                potential conflict of interest'' means a financial 
                interest of the President, the Vice President, the 
                spouse of the President or Vice President, or a minor 
                child of the President or Vice President, as 
                applicable, that--
                            (i) would constitute a financial interest 
                        described in subsection (a) of section 208 of 
                        title 18, United States Code--
                                    (I) if--
                                            (aa) for purposes of such 
                                        section 208, the terms 
                                        ``officer'' and ``employee'' 
                                        included the President and the 
                                        Vice President; and
                                            (bb) the President or Vice 
                                        President, as applicable, 
                                        participated in a particular 
                                        matter affecting such financial 
                                        interest; and
                                    (II) determined without regard to 
                                any exception under subsection (b)(1) 
                                of such section 208; or
                            (ii) constitutes a present, emolument, 
                        office, or title, of any kind whatever, from 
                        any king, prince, or foreign state (including 
                        from an entity owned or controlled by a foreign 
                        government), within the meaning of article I, 
                        section 9 of the Constitution of the United 
                        States;
                    (C) the term ``qualified blind trust'' has the 
                meaning given that term in section 13104(f)(3) of title 
                5, United States Code; and
                    (D) the term ``tax return''--
                            (i) means any Federal income tax return and 
                        any amendment or supplement thereto, including 
                        supporting schedules, attachments, or lists 
                        which are supplemental to, or part of, the 
                        return for the taxable year; and
                            (ii) includes any information return that 
                        reports information that does or may affect the 
                        liability for tax for the taxable year.
            (2) Applicability of ethics in government requirements.--
        For purposes of the definition of ``qualified blind trust'' in 
        this section, the term ``supervising ethics officer'' in 
        section 13104(f)(3) of title 5, United States Code, means the 
        Director of the Office of Government Ethics.
    (b) Initial Financial Disclosure.--
            (1) Submission of disclosure.--
                    (A) In general.--Not later than 30 days after 
                assuming the office of President or Vice President, 
                respectively, the President and Vice President shall 
                submit to Congress and the Director of the Office of 
                Government Ethics a disclosure of financial interests.
                    (B) Application to sitting president and vice 
                president.--For any individual who is serving as the 
                President or Vice President on the date of enactment of 
                this Act, the disclosure of financial interests shall 
                be submitted to Congress and the Director of the Office 
                of Government Ethics not later than 30 days after the 
                date of enactment of this Act.
            (2) Contents.--
                    (A) President.--The disclosure of financial 
                interests submitted under paragraph (1) by the 
                President shall--
                            (i) describe in detail each financial 
                        interest of the President, the spouse of the 
                        President, or a minor child of the President 
                        that is required to be disclosed under 
                        regulations of the Office of Government Ethics 
                        in addition to the financial interests required 
                        to be disclosed under section 13104 of title 5, 
                        United States Code; and
                            (ii) include the tax returns filed by or on 
                        behalf of the President for--
                                    (I) the 3 most recent taxable 
                                years; and
                                    (II) each taxable year for which an 
                                audit of the return by the Internal 
                                Revenue Service is pending on the date 
                                the report is filed.
                    (B) Vice president.--The disclosure of financial 
                interests submitted under paragraph (1) by the Vice 
                President shall--
                            (i) describe in detail each financial 
                        interest of the Vice President, the spouse of 
                        the Vice President, or a minor child of the 
                        Vice President that is required to be disclosed 
                        under regulations of the Office of Government 
                        Ethics in addition to the financial interests 
                        required to be disclosed under section 13104 of 
                        title 5, United States Code; and
                            (ii) include the tax returns filed by or on 
                        behalf of the Vice President for--
                                    (I) the 3 most recent taxable 
                                years; and
                                    (II) each taxable year for which an 
                                audit of the return by the Internal 
                                Revenue Service is pending on the date 
                                the report is filed.
    (c) Divestiture of Financial Interests Posing a Potential Conflict 
of Interest.--
            (1) In general.--The President, the Vice President, the 
        spouse of the President or Vice President, and any minor child 
        of the President or Vice President shall divest of any 
        financial interest posing a potential conflict of interest by--
                    (A) converting each such interest to cash or 
                another investment that meets the criteria established 
                by the Director of the Office of Government Ethics 
                through regulation as being an interest so remote or 
                inconsequential as not to pose a conflict; or
                    (B) transferring such interest to a qualified blind 
                trust.
            (2) Trustee duties.--Within a reasonable period of time 
        after the date a financial interest is transferred to a 
        qualified blind trust under paragraph (1)(B), the trustee of 
        the qualified blind trust shall--
                    (A) sell the financial interest; and
                    (B) use the proceeds of the sale of the financial 
                interest to purchase conflict-free holdings.
            (3) Regulations.--Not later than 120 days after the date of 
        enactment of this Act, the Director of the Office of Government 
        Ethics shall promulgate regulations to define the criteria 
        described in paragraph (1)(A).
    (d) Review by Office of Government Ethics.--
            (1) In general.--The Director of the Office of Government 
        Ethics shall submit to Congress, the President, and the Vice 
        President an annual report regarding the financial interests of 
        the President, the Vice President, the spouse of the President 
        or Vice President, and any minor child of the President or Vice 
        President.
            (2) Contents.--Each report submitted under paragraph (1) 
        shall--
                    (A) indicate whether any financial interest of the 
                President, the Vice President, the spouse of the 
                President or Vice President, or a minor child of the 
                President or Vice President is a financial interest 
                posing a potential conflict of interest;
                    (B) evaluate whether any previously held financial 
                interest of the President, the Vice President, the 
                spouse of the President or Vice President, or a minor 
                child of the President or Vice President that was a 
                financial interest posing a potential conflict of 
                interest was divested in accordance with subsection 
                (c); and
                    (C) redact such information as the Director of the 
                Office of Government Ethics determines necessary for 
                preventing identity theft, such as social security 
                numbers or taxpayer identification numbers.
            (3) Trustee responsibility.--If the President, the Vice 
        President, the spouse of the President or Vice President, or 
        any minor child of the President or Vice President transfers 1 
        or more interests to a qualified blind trust under subsection 
        (c)(1)(B), the trustee for the qualified blind trust shall 
        assist the Director in complying with paragraph (2)(B) of this 
        subsection by notifying the Director of the Office of 
        Government Ethics when all initial property of the qualified 
        blind trust has been sold and furnishing such other information 
        as the Director may require.
    (e) Enforcement.--
            (1) In general.--The Attorney General, the attorney general 
        of any State, or any person aggrieved by any violation of 
        subsection (c) may seek declaratory or injunctive relief in a 
        court of competent jurisdiction if--
                    (A) the Director of the Office of Government Ethics 
                is unable to issue a report indicating whether the 
                President or the Vice President is in substantial 
                compliance with subsection (c); or
                    (B) there is probable cause to believe that the 
                President or the Vice President has not complied with 
                subsection (c).
            (2) Fair market value.--In granting injunctive relief to 
        the plaintiff, the court shall ensure that any divestment 
        procedure is reasonably calculated to ensure the fair market 
        return for any asset that is liquidated.

SEC. 3. RECUSAL OF APPOINTEES.

    Section 208 of title 18, United States Code, is amended by adding 
at the end the following:
    ``(e)(1) Any officer or employee appointed by the President shall 
recuse himself or herself from any particular matter involving specific 
parties in which a party to that matter is--
            ``(A) the President who appointed the officer or employee, 
        which shall include any entity in which the President has a 
        substantial interest; or
            ``(B) the spouse of the President who appointed the officer 
        or employee, which shall include any entity in which the spouse 
        of the President has a substantial interest.
    ``(2)(A) Subject to subparagraph (B), if an officer or employee is 
recused under paragraph (1), a career appointee in the agency of the 
officer or employee shall perform the functions and duties of the 
officer or employee with respect to the matter.
    ``(B)(i) In this subparagraph, the term `Commission' means a board, 
commission, or other agency for which the authority of the agency is 
vested in more than 1 member.
    ``(ii) If the recusal of a member of a Commission from a matter 
under paragraph (1) would result in there not being a statutorily 
required quorum of members of the Commission available to participate 
in the matter, notwithstanding such statute or any other provision of 
law, the members of the Commission not recused under paragraph (1) 
may--
            ``(I) consider the matter without regard to the quorum 
        requirement under such statute;
            ``(II) delegate the authorities and responsibilities of the 
        Commission with respect to the matter to a subcommittee of the 
        Commission; or
            ``(III) designate an officer or employee of the Commission 
        who was not appointed by the President who appointed the member 
        of the Commission recused from the matter to exercise the 
        authorities and duties of the recused member with respect to 
        the matter.
    ``(3) Any officer or employee who knowingly and willfully violates 
paragraph (1) shall be subject to the penalties set forth in section 
216.
    ``(4) For purposes of this section, the term `particular matter' 
shall have the meaning given the term in section 207(i).''.

SEC. 4. CONTRACTS BY THE PRESIDENT OR VICE PRESIDENT.

    (a) Amendment.--Section 431 of title 18, United States Code, is 
amended--
            (1) in the section heading, by inserting ``the President, 
        Vice President, or a'' after ``Contracts by''; and
            (2) in the first undesignated paragraph, by inserting ``the 
        President or Vice President,'' after ``Whoever, being''.
    (b) Table of Sections Amendment.--The table of sections for chapter 
23 of title 18, United States Code, is amended by striking the item 
relating to section 431 and inserting the following:

``431. Contracts by the President, Vice President, or a Member of 
                            Congress.''.

SEC. 5. PRESIDENTIAL TAX TRANSPARENCY.

    (a) Disclosure Requirement.--
            (1) In general.--Chapter 131 of title 5, United States 
        Code, is amended--
                    (A) by inserting after section 13104 the following:
``Sec. 13104A. Disclosure of tax returns
    ``(a) Definitions.--In this section--
            ``(1) the term `covered candidate' means an individual--
                    ``(A) required to file a report under section 
                13103(c); and
                    ``(B) who is nominated by a major party as a 
                candidate for the office of President; and
            ``(2) the term `covered individual' means--
                    ``(A) a President required to file a report under 
                subsection (a) or (d) of section 13103; and
                    ``(B) an individual who occupies the office of the 
                President required to file a report under section 
                13103(e);
            ``(3) the term `income tax return' means, with respect to 
        any covered candidate or covered individual, any return (within 
        the meaning of section 6103(b) of the Internal Revenue Code of 
        1986) related to Federal income taxes, but does not include--
                    ``(A) information returns issued to persons other 
                than such covered candidate or covered individual, and
                    ``(B) declarations of estimated tax; and
            ``(4) the term `major party' has the meaning given the term 
        in section 9002 of the Internal Revenue Code of 1986.
    ``(b) Disclosure.--
            ``(1) Covered individuals.--
                    ``(A) In general.--In addition to the information 
                described in subsections (a) and (b) of section 13104, 
                a covered individual shall include in each report 
                required to be filed under this subchapter a copy of 
                the income tax returns of the covered individual for 
                the 3 most recent taxable years for which a return have 
                been filed with the Internal Revenue Service as of the 
                date on which the report is filed.
                    ``(B) Failure to disclose.--If an income tax return 
                is not disclosed under subparagraph (A), the Director 
                of the Office of Government Ethics shall submit to the 
                Secretary of the Treasury a request that the Secretary 
                of the Treasury provide the Director of the Office of 
                Government Ethics with a copy of the income tax return.
                    ``(C) Publicly available.--Each income tax return 
                submitted under this paragraph shall be filed with the 
                Director of the Office of Government Ethics and made 
                publicly available in the same manner as the 
                information described in subsections (a) and (b) of 
                section 13104.
                    ``(D) Redaction of certain information.--Before 
                making any income tax return submitted under this 
                paragraph available to the public, the Director of the 
                Office of Government Ethics shall redact such 
                information as the Director of the Office of Government 
                Ethics, in consultation with the Secretary of the 
                Treasury (or a delegate of the Secretary), determines 
                appropriate.
            ``(2) Candidates.--
                    ``(A) In general.--Not later than 15 days after the 
                date on which a covered candidate is nominated, the 
                covered candidate shall amend the report filed by the 
                covered candidate under section 13103(c) with the 
                Federal Election Commission to include a copy of the 
                income tax returns of the covered candidate for the 3 
                most recent taxable years for which a return has been 
                filed with the Internal Revenue Service.
                    ``(B) Failure to disclose.--If an income tax return 
                is not disclosed under subparagraph (A), the Federal 
                Election Commission shall submit to the Secretary of 
                the Treasury a request that the Secretary of the 
                Treasury provide the Federal Election Commission with 
                the income tax return.
                    ``(C) Publicly available.--Each income tax return 
                submitted under this paragraph shall be filed with the 
                Federal Election Commission and made publicly available 
                in the same manner as the information described in 
                section 13104(b).
                    ``(D) Redaction of certain information.--Before 
                making any income tax return submitted under this 
                paragraph available to the public, the Federal Election 
                Commission shall redact such information as the Federal 
                Election Commission, in consultation with the Secretary 
                of the Treasury (or a delegate of the Secretary) and 
                the Director of the Office of Government Ethics, 
                determines appropriate.
            ``(3) Special rule for sitting presidents.--Not later than 
        30 days after the date of enactment of this section, the 
        President shall submit to the Director of the Office of 
        Government Ethics a copy of the income tax returns described in 
        paragraph (1)(A).''; and
                    (B) in section 13106--
                            (i) in subsection (a)--
                                    (I) in paragraph (1), in the first 
                                sentence, by inserting ``or any 
                                individual who knowingly and willfully 
                                falsifies or who knowingly and 
                                willfully fails to file an income tax 
                                return that such individual is required 
                                to disclose pursuant to section 
                                13104A'' before the period; and
                                    (II) in paragraph (2)(A)--
                                            (aa) in clause (i), by 
                                        inserting ``or falsify any 
                                        income tax return that such 
                                        person is required to disclose 
                                        under section 13104A'' before 
                                        the semicolon; and
                                            (bb) in clause (ii), by 
                                        inserting ``or fail to file any 
                                        income tax return that such 
                                        person is required to disclosed 
                                        under section 13104A'' before 
                                        the period;
                            (ii) in subsection (b), in the first 
                        sentence by inserting ``or willfully failed to 
                        file or has willfully falsified an income tax 
                        return required to be disclosed under section 
                        13104A'' before the period;
                            (iii) in subsection (c), by inserting ``or 
                        failing to file or falsifying an income tax 
                        return required to be disclosed under section 
                        13104A'' before the period; and
                            (iv) in subsection (d)(1)--
                                    (I) in the matter preceding 
                                subparagraph (A), by inserting ``or 
                                files an income tax return required to 
                                be disclosed under section 13104A'' 
                                after ``subchapter''; and
                                    (II) in subparagraph (A), by 
                                inserting ``or such income tax return, 
                                as applicable,'' after ``report''.
            (2) Conforming amendment.--The table of sections for 
        chapter 131 of title 5, United States Code, is amended by 
        inserting after the item relating to section 13104 the 
        following:

``13104A. Disclosure of tax returns.''.
    (b) Authority To Disclose Information.--
            (1) In general.--Section 6103(l) of the Internal Revenue 
        Code of 1986 is amended by adding at the end the following new 
        paragraph:
            ``(23) Disclosure of return information of presidents and 
        certain presidential candidates.--
                    ``(A) Disclosure of returns of presidents.--
                            ``(i) In general.--The Secretary shall, 
                        upon written request from the Director of the 
                        Office of Government Ethics pursuant to section 
                        13104A(b)(1)(B) of title 5, United States Code, 
                        provide to officers and employees of the Office 
                        of Government Ethics a copy of any income tax 
                        return of the President which is required to be 
                        filed under section 13104A of such title.
                            ``(ii) Disclosure to public.--The Director 
                        of the Office of Government Ethics may disclose 
                        to the public the income tax return of any 
                        President which is required to be filed with 
                        the Director pursuant to section 13104A of 
                        title 5, United States Code.
                    ``(B) Disclosure of returns of certain candidates 
                for president.--
                            ``(i) In general.--The Secretary shall, 
                        upon written request from the Chairman of the 
                        Federal Election Commission pursuant to section 
                        13104A(b)(2)(B) of title 5, United States Code, 
                        provide to officers and employees of the 
                        Federal Election Commission copies of the 
                        applicable returns of any person who has been 
                        nominated as a candidate of a major party (as 
                        defined in section 9002(a)) for the office of 
                        President.
                            ``(ii) Disclosure to public.--The Federal 
                        Election Commission may disclose to the public 
                        applicable returns of any person who has been 
                        nominated as a candidate of a major party (as 
                        defined in section 9002(6)) for the office of 
                        President and which is required to be filed 
                        with the Commission pursuant to section 13104A 
                        of title 5, United States Code.
                    ``(C) Applicable returns.--For purposes of this 
                paragraph, the term `applicable returns' means, with 
                respect to any candidate for the office of President, 
                income tax returns for the 3 most recent taxable years 
                for which a return has been filed as of the date of the 
                nomination.''.
            (2) Conforming amendments.--Section 6103(p)(4) of such 
        Code, in the matter preceding subparagraph (A) and in 
        subparagraph (F)(ii), is amended by striking ``or (22)'' and 
        inserting ``(22), or (23)'' each place it appears.

SEC. 6. SENSE OF CONGRESS REGARDING VIOLATIONS.

    It is the sense of Congress that a violation of section 2 of this 
Act or chapter 131 of title 5, United States Code, by the President or 
the Vice President would constitute a high crime or misdemeanor under 
article II, section 4 of the Constitution of the United States.

SEC. 7. RULE OF CONSTRUCTION.

    Nothing in this Act or an amendment made by this Act shall be 
construed to violate the Constitution of the United States.

SEC. 8. SEVERABILITY.

    If any provision of this Act or any amendment made by this Act, or 
any application of such provision or amendment to any person or 
circumstance, is held to be unconstitutional, the remainder of the 
provisions of this Act and the amendments made by this Act, and the 
application of the provision or amendment to any other person or 
circumstance, shall not be affected.
                                 &lt;all&gt;
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