Bipartisan Ban on Congressional Stock Ownership Act of 2022

To prohibit stock trading and ownership by Members of Congress and spouses of Members of Congress, and for other purposes. 1. Short title This Act may be cited as the Bipartisan Ban on Congressional Stock Ownership Act of 2022 2. Bar on stock trading and ownership by Members of Congress and spouses (a) Definitions In this section: (1) Commodity The term commodity 7 U.S.C. 1a (2) Congressional ethics committee The term congressional ethics committee section 109 (3) Diversified The term diversified (4) Member of Congress The term Member of Congress section 109 (5) Security The term security 15 U.S.C. 78c(a) (6) Small business concern The term small business concern 15 U.S.C. 632 (7) Widely held investment fund The term widely held investment fund section 102(f)(8) (b) Divestment (1) In general Except as provided in subsection (c), no Member of Congress or spouse of a Member of Congress may own an interest in or trade (except as a divestment) any stock, bond, commodity, future, or other form of security, 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 enactment of this Act, or the spouse of such an individual, shall complete the divestment of any asset described in paragraph (1) by not later than 180 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 of such an individual, shall complete the divestment of the asset by not later than 5 years after the date of 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 180 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 of such an individual, shall complete the divestment of the asset by not later than 5 years after 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 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 180 days after the date on which the individual or spouse receives the asset. (c) Exceptions Nothing in this section shall be construed to prevent— (1) a Member of Congress or spouse of a Member of Congress from owning or trading— (A) a widely held investment fund, if the widely held investment fund— (i) does not present a conflict of interest; and (ii) is diversified; (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; (F) an interest in a small business concern, if the small business concern does not present a conflict of interest; or (G) any asset described in subsection (b)(1) received as compensation from the primary occupation of the spouse; or (2) a spouse of a Member of Congress from trading any asset described in subsection (b)(1) that is not owned by the spouse or Member of Congress in the course of performing the primary occupation of the spouse. (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 spouse of a Member of Congress 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 or spouse 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) (A) by striking and (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 Bipartisan Ban on Congressional Stock Ownership Act of 2022 ; and (D) by striking subparagraph (A) 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 by (B) by inserting , or by the applicable congressional ethics committee, in the case of Members of Congress, Members of Congress-elect, and spouses of Members of Congress and Members of Congress-elect 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 or elsewhere in statute.

Summary: Bipartisan Ban on Congressional Stock Ownership Act of 2022 This bill prohibits Members of Congress and their spouses from owning or trading stocks, bonds, commodities, futures, or any other form of security. Each current Member must divest within 180 days after the bill is enacted and each new Member must divest within 180 days after becoming a Member. However, Members and their spouses have 5 years to divest from specified complex investment vehicles. The bill does not apply to certain investments, such as investments in widely held investment funds that are diversified and do not present a conflict of interest and investments held in government employee retirement plans. A Member or spouse who violates the bill may be subject to a fine of up to $50,000 for each violation. The bill permits a Member or spouse who is required to divest property under the bill to avoid recognizing gain for income tax purposes from the sale of that property to the extent that the Member or spouse purchases permitted bonds or diversified investment funds within 60 days of the divestiture.