Title: To require certain officers and employees in the executive branch of the Federal Government to divest certain financial interests, and for other purposes.
Policy area: Government Operations and Politics

Summary:
This bill requires certain government officials in the executive branch and their spouses to divest corporate and other financial interests.
Specifically, such officials must divest into a qualified blind trust any financial interest in a business for which the official is a trustee, partner, officer, director, or more than 10% shareholder. The trustee of the qualified blind trust must sell the interest and use the proceeds to purchase conflict-free holdings.
The bill's requirements apply to cabinet officials, senior executives, policy advisors, presidential appointees, specified White House personnel, and their spouses.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7581 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 7581

 To require certain officers and employees in the executive branch of 
 the Federal Government to divest certain financial interests, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 13, 2020

Mr. Cicilline introduced the following bill; which was referred to the 
                   Committee on Oversight and Reform

_______________________________________________________________________

                                 A BILL


 
 To require certain officers and employees in the executive branch of 
 the Federal Government to divest certain financial interests, 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. DIVESTITURE OF CERTAIN FINANCIAL INTERESTS OF FEDERAL 
              OFFICERS AND EMPLOYEES AND SPOUSES.

    (a) Definitions.--In this Act--
            (1) the term ``covered significant business interest''--
                    (A) means any financial interest of a covered 
                officer or employee in a corporation, company, 
                association, firm, partnership, proprietorship, or any 
                other business entity of which the covered officer or 
                employee is--
                            (i) a trustee;
                            (ii) a partner;
                            (iii) an officer;
                            (iv) a director; or
                            (v) a shareholder who holds more than 10 
                        percent of any class of equity securities; and
                    (B) does not include any financial interest 
                consisting of obligations issued by the Treasury, 
                diversified mutual funds that qualify for a regulatory 
                exemption, or residential property that is not held for 
                the production of rental or other income;
            (2) the terms ``conflict-free holding'' and ``qualified 
        blind trust'' have the meanings given those terms in sections 
        102(f)(3) and 102(f)(8), respectively, of the Ethics in 
        Government Act of 1978 (5 U.S.C. App.); and
            (3) the term ``covered officer or employee'' means--
                    (A) any individual occupying a position--
                            (i) listed under the Executive Schedule 
                        (subchapter II of chapter 53 of title 5, United 
                        States Code);
                            (ii) in the Senior Executive Service as a 
                        noncareer appointee (as that term is defined in 
                        section 3132(a) if such title);
                            (iii) of a confidential or policy-
                        determining character under schedule C of 
                        subpart C of part 213 of title 5, Code of 
                        Federal Regulations; or
                            (iv) in the executive branch whose 
                        appointment is made by the President, by and 
                        with the advice and consent of the Senate; and
                    (B) any individual occupying any of the following 
                positions:
                            (i) Assistant to the President for National 
                        Security Affairs.
                            (ii) Assistant to the President and Chief 
                        of Staff.
                            (iii) Assistant to the President and Deputy 
                        Chief of Staff.
                            (iv) Assistant to the President and Deputy 
                        Chief of Staff for Communications (or Director 
                        of Communications).
                            (v) Assistant to the President and Press 
                        Secretary.
                            (vi) Senior Advisor to the President.
                            (vii) Assistant to the President and Staff 
                        Secretary.
                            (viii) Assistant to the President for 
                        Homeland Security and Counterterrorism.
                            (ix) Assistant to the President and 
                        Counselor to the President.
                            (x) Director of the National Economic 
                        Council.
                            (xi) Director of the Domestic Policy 
                        Council.
                            (xii) Assistant to the President and Chief 
                        of Staff or Deputy Chief of Staff to the Vice 
                        President.
                            (xiii) Special Assistant to the President 
                        and Director of Communications for the Vice 
                        President.
                            (xiv) Press Secretary to the Vice 
                        President.
                            (xv) Senior Advisor to the Vice President.
                            (xvi) Deputy Assistant to the President and 
                        National Security Advisor or Deputy National 
                        Security Advisor to the Vice President.
                            (xvii) Deputy Assistant to the President 
                        and Counselor to the Vice President.
                            (xviii) Assistant to the President and 
                        White House Counsel.
    (b) Divestiture of Covered Significant Business Interest.--
            (1) In general.--A covered officer or employee or the 
        spouse of any such officer or employee shall divest of any 
        covered significant business interest by transferring such 
        interest to a qualified blind trust.
            (2) Trustee duties.--Within a reasonable period of time 
        after the date a covered significant business interest is 
        transferred to a qualified blind trust under paragraph (1), the 
        trustee of the qualified blind trust shall--
                    (A) sell the interest; and
                    (B) use the proceeds of the sale of the interest to 
                purchase conflict-free holdings.
    (c) Enforcement.--The Attorney General, the attorney general of any 
State, or any person aggrieved by any violation of subsection (b) may 
seek declaratory or injunctive relief in a court of competent 
jurisdiction if there is probable cause to believe that a covered 
officer or employee or the spouse of such an officer or employee has 
not complied with such subsection.
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