Ban Congressional Stock Trading Act
Bill: S.3494 | Sponsor: Sen. Ossoff, Jon (D-GA)
Policy area: Congress

Summary:
Ban Congressional Stock Trading Act
This bill requires each Member of Congress to divest or place in a blind trust any specified investment owned by the Member, the Member's spouse, or a dependent of the Member. This requirement applies for the entire period of a Member's service in Congress and for 180 days after that service ceases.
A Member of Congress who does not comply with the bill's requirements is subject to a fine equal to the Member's monthly congressional salary. The fine must be assessed 30 days after notice of the violation is issued and at least every subsequent 30 days.

To amend the Ethics in Government Act of 1978 to require Members of 
Congress and their spouses and dependents to place certain assets into 
                 blind trusts, 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 ``Ban Congressional Stock Trading 
Act''.

SEC. 2. PLACEMENT OF CERTAIN ASSETS OF MEMBERS OF CONGRESS, SPOUSES, 
              AND DEPENDENTS IN QUALIFIED BLIND TRUSTS.

    The Ethics in Government Act of 1978 (5 U.S.C. App.) is amended by 
inserting after title I the following:

    ``TITLE II--CERTAIN ASSETS OF MEMBERS OF CONGRESS, SPOUSES, AND 
                               DEPENDENTS

``SEC. 201. DEFINITIONS.

    ``In this title:
            ``(1) Commodity.--The term `commodity' has the meaning 
        given the term in section 1a of the Commodity Exchange Act (7 
        U.S.C. 1a).
            ``(2) Covered investment.--
                    ``(A) In general.--The term `covered investment' 
                means--
                            ``(i) an investment in a security, a 
                        commodity, or a future; and
                            ``(ii) any economic interest comparable to 
                        an interest described in clause (i) that is 
                        acquired through synthetic means, such as the 
                        use of a derivative, including an option, 
                        warrant, or other, similar means.
                    ``(B) Inclusions.--The term `covered investment' 
                includes an investment or economic interest described 
                in subparagraph (A) that is held directly, or in which 
                an individual has an indirect, beneficial, or economic 
                interest, through--
                            ``(i) an investment fund;
                            ``(ii) a trust (other than a qualified 
                        blind trust);
                            ``(iii) an employee benefit plan; or
                            ``(iv) a deferred compensation plan, 
                        including a carried interest or other agreement 
                        tied to the performance of an investment, other 
                        than a fixed cash payment.
                    ``(C) Exclusions.--The term `covered investment' 
                does not include--
                            ``(i) a diversified mutual fund (including 
                        any holdings of such a fund);
                            ``(ii) a diversified exchange-traded fund 
                        (including any holdings of such a fund);
                            ``(iii) a United States Treasury bill, 
                        note, or bond;
                            ``(iv) compensation from the primary 
                        occupation of a spouse or dependent of a Member 
                        of Congress; or
                            ``(v) any investment fund held in a 
                        Federal, State, or local government employee 
                        retirement plan.
                    ``(D) Clarification.--An investment that achieves 
                compliance with applicable environmental, social, and 
                governance criteria shall not be considered to be a 
                covered investment solely by reason of that compliance.
            ``(3) Current.--The term `current', with respect to a 
        Member of Congress, means an individual who is serving as a 
        Member of Congress on the date of enactment of the Ban 
        Congressional Stock Trading Act.
            ``(4) Dependent.--The term `dependent', with respect to an 
        individual, means a child or other relative who is a resident 
        of the immediate household of the individual.
            ``(5) 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.
            ``(6) Future.--The term `future' means--
                    ``(A) a security future (as defined in section 3(a) 
                of the Securities Exchange Act of 1934 (15 U.S.C. 
                78c(a))); and
                    ``(B) any other contract for the sale of a 
                commodity for future delivery.
            ``(7) Initial property.--The term `initial property' means 
        an asset or financial interest transferred to a qualified blind 
        trust by, or on behalf of, an interested party or a relative of 
        an interested party, regardless of whether the asset or 
        financial interest is transferred to the qualified blind trust 
        on or after the date of establishment of the qualified blind 
        trust.
            ``(8) Interested party.--The term `interested party' has 
        the meaning given the term in section 102(f)(3)(E).
            ``(9) Member of congress.--The term `Member of Congress' 
        has the meaning given the term in section 109.
            ``(10) New.--The term `new', with respect to a Member of 
        Congress, means an individual who--
                    ``(A) is not a current Member of Congress; but
                    ``(B) commences service as a Member of Congress 
                after the date of enactment of the Ban Congressional 
                Stock Trading Act.
            ``(11) Qualified blind trust.--The term `qualified blind 
        trust' means a qualified blind trust (as defined in section 
        102(f)(3)) that has been approved in writing by the applicable 
        supervising ethics office under section 102(f)(3)(D).
            ``(12) 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)).
            ``(13) Supervising ethics office.--The term `supervising 
        ethics office' has the meaning given the term in section 109.

``SEC. 202. PLACEMENT OF CERTAIN ASSETS IN QUALIFIED BLIND TRUSTS.

    ``(a) Current Members of Congress.--
            ``(1) Certification.--Not later than 30 days after the date 
        of enactment of the Ban Congressional Stock Trading Act, each 
        current Member of Congress shall submit to the applicable 
        supervising ethics office a certification that, as applicable--
                    ``(A) for each covered investment owned by the 
                Member of Congress or a spouse or dependent of the 
                Member of Congress, the Member of Congress, or the 
                applicable spouse or dependent of the Member of 
                Congress, will--
                            ``(i) divest the covered investment; or
                            ``(ii) place the covered investment in a 
                        qualified blind trust, including by 
                        establishing a qualified blind trust for that 
                        purpose, if necessary; or
                    ``(B) neither the Member of Congress nor any spouse 
                or dependent of the Member of Congress owns a covered 
                investment.
            ``(2) Divestiture or placement in qualified blind trust.--
                    ``(A) Requirement.--Subject to paragraph (3), not 
                later than 120 days after the date of enactment of the 
                Ban Congressional Stock Trading Act, each current 
                Member of Congress shall divest, or place in a 
                qualified blind trust (including by establishing a 
                qualified blind trust for that purpose, if necessary), 
                each covered investment owned by the Member of Congress 
                or a spouse or dependent of the Member of Congress.
                    ``(B) Divestiture.--A current Member of Congress 
                shall divest a covered investment held by the Member of 
                Congress or a spouse or dependent of the Member of 
                Congress if--
                            ``(i) the Member of Congress, or the 
                        applicable spouse or dependent of the Member of 
                        Congress, is unable to place the covered 
                        investment in a qualified blind trust by the 
                        date described in subparagraph (A); and
                            ``(ii) the Member of Congress fails to 
                        obtain an extension pursuant to paragraph (3).
            ``(3) Extensions.--If a current Member of Congress, or a 
        spouse or dependent of the Member of Congress, is unable to 
        place a covered investment in a qualified blind trust by the 
        date described in paragraph (2)(A), the Member of Congress may 
        request, and the supervising ethics office may grant, 1 or more 
        reasonable extensions, subject to the conditions that--
                    ``(A) the total period of time covered by all 
                extensions granted to the Member of Congress for the 
                covered investment shall not exceed 180 days; and
                    ``(B) the period covered by a single extension 
                shall be not longer than 45 days.
    ``(b) New Members of Congress.--
            ``(1) Certification.--Not later than 30 days after the date 
        on which an individual becomes a new Member of Congress, the 
        new Member of Congress shall submit to the applicable 
        supervising ethics office a certification that, as applicable--
                    ``(A) for each covered investment owned by the 
                Member of Congress or a spouse or dependent of the 
                Member of Congress, the Member of Congress, or the 
                applicable spouse or dependent of the Member of 
                Congress, will--
                            ``(i) divest the covered investment; or
                            ``(ii) place the covered investment in a 
                        qualified blind trust, including by 
                        establishing a qualified blind trust for that 
                        purpose, if necessary; or
                    ``(B) neither the Member of Congress nor a spouse 
                or dependent of the Member of Congress owns a covered 
                investment.
            ``(2) Divestiture or placement in qualified blind trust.--
                    ``(A) Requirement.--Subject to paragraph (3), not 
                later than 120 days after the date on which an 
                individual becomes a new Member of Congress, the 
                individual shall divest, or place in a qualified blind 
                trust (including by establishing a qualified blind 
                trust for that purpose, if necessary), each covered 
                investment owned by the Member of Congress or a spouse 
                or dependent of the Member of Congress.
                    ``(B) Divestiture.--A new Member of Congress shall 
                divest a covered investment held by the Member of 
                Congress or a spouse or dependent of the Member of 
                Congress if--
                            ``(i) the Member of Congress, or the 
                        applicable spouse or dependent of the Member of 
                        Congress, is unable to place the covered 
                        investment in a qualified blind trust by the 
                        date described in subparagraph (A); and
                            ``(ii) the Member of Congress fails to 
                        obtain an extension pursuant to paragraph (3).
            ``(3) Extensions.--If a new Member of Congress, or a spouse 
        or dependent of the Member of Congress, is unable to place a 
        covered investment in a qualified blind trust by the date 
        described in paragraph (2)(A), the Member of Congress may 
        request, and the supervising ethics office may grant, 1 or more 
        reasonable extensions, subject to the conditions that--
                    ``(A) the total period of time covered by all 
                extensions granted to the Member of Congress for the 
                covered investment shall not exceed 180 days; and
                    ``(B) the period covered by a single extension 
                shall be not longer than 45 days.
    ``(c) Acquisitions During Service.--
            ``(1) In general.--Subject to paragraph (2), and any 
        applicable rules issued pursuant to subsection (h)(3), 
        effective beginning on the date of enactment of the Ban 
        Congressional Stock Trading Act, a Member of Congress, and a 
        spouse or dependent of the Member of Congress, may not acquire 
        a covered investment.
            ``(2) Inheritances.--
                    ``(A) In general.--Subject to subparagraph (B), a 
                Member of Congress or a spouse or dependent of a Member 
                of Congress who inherits a covered investment shall 
                divest or place the covered investment in a qualified 
                blind trust by not later than 120 days after the date 
                on which the covered investment is inherited.
                    ``(B) Extensions.--If a Member of Congress, or a 
                spouse or dependent of the Member of Congress, is 
                unable to place a covered investment in a qualified 
                blind trust by the date described in subparagraph (A), 
                the Member of Congress may request, and the supervising 
                ethics office may grant, 1 or more reasonable 
                extensions, subject to the conditions that--
                            ``(i) the total period of time covered by 
                        all extensions granted to the Member of 
                        Congress for the covered investment shall not 
                        exceed 180 days; and
                            ``(ii) the period covered by a single 
                        extension shall be not longer than 45 days.
    ``(d) Mingling of Assets.--A spouse or dependent of a Member of 
Congress may place a covered investment in a qualified blind trust 
established by the Member of Congress under subsection (a)(1)(A)(ii) or 
(b)(1)(A)(ii).
    ``(e) Separation From Service and Cooling-Off Period Required for 
Control.--During the period beginning on the date on which an 
individual becomes a Member of Congress and ending on the date that is 
180 days after the date on which the individual ceases to serve as a 
Member of Congress, the Member of Congress, and any spouse or dependent 
of the Member of Congress, may not--
            ``(1) dissolve any qualified blind trust in which a covered 
        investment has been placed pursuant to subsection (a), (b), 
        (c)(2), or (d); or
            ``(2) except as provided in this section, otherwise control 
        a covered investment.
    ``(f) Reporting Requirements.--
            ``(1) Supervising ethics offices.--Each supervising ethics 
        office shall make available on the public website of the 
        supervising ethics office--
                    ``(A) a copy of--
                            ``(i) each certification submitted to the 
                        supervising ethics office under subsection 
                        (a)(1) or (b)(1);
                            ``(ii) each qualified blind trust agreement 
                        of each Member of Congress;
                            ``(iii) each notice and other documentation 
                        submitted to the supervising ethics office 
                        under paragraph (2) or (3); and
                            ``(iv) each notice, rule, and other 
                        documentation issued or received by the 
                        supervising ethics office under subsection (g);
                    ``(B) a schedule of all assets placed in a 
                qualified blind trust by each Member of Congress and 
                interested party; and
                    ``(C) a description of each extension granted, and 
                each civil penalty imposed, pursuant to this section.
            ``(2) Trustees.--Each trustee of a qualified blind trust 
        established by a Member of Congress shall submit to the Member 
        of Congress and the applicable supervising ethics office a 
        written notice in any case in which the trustee--
                    ``(A) learns that--
                            ``(i) an interested party has obtained 
                        knowledge of any trust property other than the 
                        initial property of the qualified blind trust; 
                        or
                            ``(ii) the value of the initial property of 
                        the qualified blind trust is less than $1,000; 
                        or
                    ``(B) divests any initial property of the qualified 
                blind trust.
            ``(3) Members of congress.--Each Member of Congress who is 
        a beneficiary of a qualified blind trust shall submit to the 
        applicable supervising ethics office--
                    ``(A) a copy of the executed qualified blind trust 
                agreement by not later than 30 days after the date of 
                execution;
                    ``(B) a list of each asset and each financial 
                interest transferred to the qualified blind trust by an 
                interested party by not later than 30 days after the 
                date of the transfer;
                    ``(C) a copy of each notice submitted to the Member 
                of Congress under paragraph (2) by not later than 30 
                days after the date of receipt;
                    ``(D) a written notice that an interested party has 
                obtained knowledge of any holding of the qualified 
                blind trust by not later than the date that is 30 days 
                after the date on which the Member of Congress 
                discovered that the knowledge had been obtained; and
                    ``(E) a written notice of dissolution of the 
                qualified blind trust by not later than 30 days after 
                the date of dissolution.
    ``(g) Enforcement.--
            ``(1) In general.--The applicable supervising ethics office 
        shall provide a written notice (including notice of the 
        potential for civil penalties under paragraph (2)) to any 
        Member of Congress who fails--
                    ``(A) to submit a certification under subsection 
                (a)(1) or (b)(1) by the date on which the certification 
                is required to be submitted; or
                    ``(B) to place 1 or more covered investments owned 
                by the Member of Congress or a spouse or dependent of 
                the Member of Congress in a qualified blind trust in 
                accordance with subsection (a)(2), (b)(2), 
                (c)(2)(C)(i)(II), or (c)(2)(A) by the applicable 
                deadline, subject to any extension under subsection 
                (a)(3), (b)(3), or (c)(2)(B).
            ``(2) Civil penalties.--
                    ``(A) In general.--A supervising ethics office 
                shall impose a civil penalty, in the amount described 
                in subparagraph (B), on a Member of Congress to whom a 
                notice is provided under subparagraph (A) or (B) of 
                paragraph (1)--
                            ``(i) on the date that is 30 days after the 
                        date of provision of the notice; and
                            ``(ii) not less frequently than once every 
                        30 days thereafter.
                    ``(B) Amount.--The amount of each civil penalty 
                imposed on a Member of Congress pursuant to 
                subparagraph (A) shall be equal to the monthly 
                equivalent of the annual rate of pay payable to the 
                Member of Congress.
    ``(h) Authorization of Supervising Ethics Offices.--Each 
supervising ethics office in the legislative branch may--
            ``(1) impose and collect civil penalties in accordance with 
        subsection (g);
            ``(2) establish such procedures and standard forms as the 
        supervising ethics office determines to be appropriate to 
        implement this section;
            ``(3) issue rules in accordance with this section to 
        establish new, and supplement existing, definitions applicable 
        to this section; and
            ``(4) publish on a website all documents and communications 
        described in this subsection.''.
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