Stop Politicians Profiting from War Act of 2024

Bill: 118-hr-7264
Sponsor: full_name: Rep. Tlaib, Rashida [D-MI-12]
Introduced: 2024-02-06
Policy area: Congress
Latest action: action_date: 2024-08-29
text: Referred to the Subcommittee on Commodity Markets, Digital Assets, and Rural Development.

Summaries:
action_date: 2024-02-06
action_desc: Introduced in House
text: <p><strong>Stop Politicians Profiting from War Act of 2024</strong></p><p>This bill prohibits Members of Congress, their spouses, and their dependent children from owning or trading stocks, bonds, commodities, futures, or any other form of security from a defense contractor or which are significantly based upon defense contractors.</p><p>Each current Member must divest within 120 days after the bill is enacted and each new Member must divest within 120 days after becoming a Member. However, Members and their spouses have 180 days to divest from specified complex investment vehicles. Placing assets into qualified blind trusts does not qualify as divestment.</p><p>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.</p><p>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, spouse, or dependent child 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.</p>

tv_txt: I 118th CONGRESS 2d Session H. R. 7264 IN THE HOUSE OF REPRESENTATIVES February 6, 2024 Ms. Tlaib (for herself and Ms. Bush ) introduced the following bill; which was referred to the Committee on Financial Services , and in addition to the Committees on House Administration , Agriculture , and 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 prohibit certain defense industry 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 Stop Politicians Profiting from War Act of 2024 . 2. Ban on certain defense industry stock trading and ownership by Members of Congress, spouses, and dependent children (a) Definitions In this Act: (1) Commodity The term commodity has the meaning given that term in section 1a of the Commodity Exchange Act ( 7 U.S.C. 1a ). (2) Covered defense contractor The term covered defense contractor means a person, other than an institution of higher education (as defined under section 101 of the Higher Education Act of 1965 ( 20 U.S.C. 1001 )) or a non-profit medical treatment facility, that has entered into a contract, transaction, or other agreement with the Department of Defense. (3) 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. (4) Member of Congress The term Member of Congress has the meaning given that term in section 13101 of title 5, United States Code. (5) Security The term security has the meaning given that term in section 3(a) of Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a) ). (6) Widely held investment fund The term widely held investment fund means a widely held investment fund described in 13104(f)(8) of title 5, United States Code. (b) Divestment of assets (1) In general Except as provided in subsection (c), no Member of Congress, spouse of a Member of Congress, or dependent child of a Member of Congress may have a financial interest in a covered defense contractor, or may own an interest in or trade (except as a divestment) any stock, bond, commodity, future, or other form of security the value of which is significantly based upon a covered defense contractor or an entity in the defense industrial base, 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 the enactment of this Act, or the spouse or dependent child of such an individual, shall complete the divestment of any asset described in paragraph (1) by not later than 120 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 or dependent child of such an individual, shall complete the divestment of the asset by not later than 180 days after the date of enactment of this Act. (iii) Application This subparagraph shall apply to a covered defense contractor that is performing or has performed a contract for the Department of Defense during the 5-year period preceding the date of the 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 120 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 or dependent child of such an individual, shall complete the divestment of the asset by not later than 180 days after the date on which the individual becomes a Member of Congress. (iii) Application This subparagraph shall apply to a covered defense contractor that is performing or has performed a contract for the Department of Defense during the 5-year period preceding 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 or dependent child 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 120 days after the date on which the individual or spouse receives the asset. (D) Qualified blind trust prohibited Placing an asset described in paragraph (1) in a qualified blind trust (as that term is defined in section 13104(f)(3) of title 5, United States Code), or any other blind trust, shall not qualify as a divestment under such paragraph for purposes of compliance with the requirements of this Act. (c) Exceptions Nothing in this section shall be construed to prevent— (1) a Member of Congress or their spouse or dependent child from owning or trading— (A) a widely held investment fund, if the widely held investment fund— (i) does not present a conflict of interest; (ii) is diversified; and (iii) in the literature it distributes to prospective and current investors or participants, does not indicate the objective or practice of concentrating its investments in covered defense contractors or entities in the defense industrial base, if the Member of Congress, or the spouse or dependent child of such an individual, neither exercises control nor has the ability to exercise control over the financial interests held in the fund; (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; or (F) an interest in an investment fund registered as an investment company under section 3 of the Investment Company Act of 1940 ( 15 U.S.C. 80a–3 ) that is diversified; and (2) a spouse or dependent child of a Member of Congress from trading any asset described in subsection (b)(1) that is not owned by the spouse, child, or Member of Congress in the course of performing the primary occupation of the spouse or child. (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 their spouse or dependent child 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, spouse, or child (as the case may be) 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) of the Internal Revenue Code of 1986 is amended— (A) by striking and at the end of subparagraph (A); (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 Stop Politicians Profiting from War Act of 2024 , and ; and (D) by striking subparagraph (A) in subparagraph (C), as so redesignated, and inserting 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 and inserting by ; and (B) by inserting , or by the applicable congressional ethics committee (as that term is defined in section 13101 of title 5), in the case of Members of Congress, Members of Congress-elect, and spouses of Members of Congress and Members of Congress-elect after 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.