[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1463 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 1463
To prohibit Federal officials from owning covered investments, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 8, 2023
Mr. Kim of New Jersey introduced the following bill; which was referred
to the Committee on the Judiciary, and in addition to the Committees on
Financial Services, Agriculture, Oversight and Accountability, House
Administration, 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 Federal officials from owning covered investments, 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 ``Restoring Trust in Public Servants
Act''.
SEC. 2. OWNERSHIP OF COVERED INVESTMENTS.
(a) Ownership of Covered Investments.--
(1) Conduct during federal service.--Except as described in
paragraph (2), no covered official or family member of a Member
of Congress may own or trade any covered investment.
(2) Compliance.--
(A) In general.--Except as provided in subparagraph
(B), to comply with the requirements under paragraph
(1), a covered official or family member of a Member of
Congress shall divest of any covered investment prior
to the expiration of the applicable compliance period.
(B) Applicable compliance period.--In this
subsection, the term ``applicable compliance period''
means--
(i) with respect to a covered investment
held by a covered official or family member of
a Member of Congress on the date of the
enactment of this Act, the 90-day period which
begins on the date of the enactment of this
Act;
(ii) with respect to a covered investment
held by an individual on the date on which the
individual becomes a covered official or
becomes a family member of a Member of Congress
after the date of the enactment of this Act,
the 90-day period which begins on the date on
which the individual becomes a covered official
or becomes a family member of a Member of
Congress; and
(iii) with respect to a covered investment
which is first held by a covered official or a
family member of a Member of Congress after the
last day of either of the periods described in
clauses (i) or (ii), the 90-day period which
begins on the date on which such investment was
first held by such official or family member.
(b) Penalties.--
(1) In general.--Except as provided in paragraph (2), a
covered official in violation of this section, as determined by
the supervising ethics office, shall pay a penalty in an amount
equal to the fee set forth under section 13106(d)(1) of title
5, United States Code, for each such violation.
(2) Exception.--
(A) Penalty.--An individual described in
subparagraph (C) who during any month is in violation
of this section with respect to a covered investment,
as determined by the supervising ethics office, shall
pay a penalty in an amount equal to--
(i) in the case of an individual who is a
covered official, the salary of such official
for that month; or
(ii) in the case of an individual who is a
family member of a Member of Congress, the
salary of the Member of Congress for that
month.
(B) Amount determined without regard to number of
violations.--The amount of the penalty imposed under
subparagraph (A) shall apply to an individual without
regard to the number of covered investments with
respect to which the individual is in violation during
the month in which the penalty is imposed.
(C) Individuals described.--The individuals
described in this paragraph are the following:
(i) A Member of Congress or a family member
of a Member of Congress.
(ii) The President.
(iii) The Vice President.
(iv) A political appointee who was
appointed to such position by the President, by
and with the advice and consent of the Senate.
(v) A judicial officer.
(c) Publication.--For each individual in violation of this section
as determined by the supervising ethics office, such office shall make
available a list, on a publicly accessible website of such office,
detailing the names, occupation, and office of employment for each such
individual, or in the case of a family member of a Member of Congress,
the name of such family member and of such Member of Congress.
(d) Application of Certificate of Divestiture Program.--For
purposes of section 1043 of the Internal Revenue Code of 1986--
(1) any person required to dispose of any property by
reason of this section shall be treated as an eligible person;
(2) this section shall be treated as a Federal conflict of
interest statute; and
(3) in the case of an individual described in subsection
(e)(2)(A), the requirement of section 1043(b)(2)(B) of such
Code shall be treated as satisfied with respect to any written
determination if such determination is issued by the
supervising ethics office.
(e) Definitions.--In this section:
(1) 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;
(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.
(2) Covered official.--The term ``covered official'' means
the following:
(A) In the legislative branch, a Member of Congress
and each of the following (other than an employee who
is considered an intern or a fellow for purposes of any
law or regulation establishing a limit on the number of
employees of an office of the House of Representatives
or Senate):
(i) An employee of a Member of the House of
Representatives (as described in section
207(e)(9)(E) of title 18, United States Code).
(ii) An employee of a Senator (as described
in section 207(e)(9)(F) of title 18, United
States Code).
(iii) An employee of a committee of
Congress (as defined in section 207(e)(9)(A) of
title 18, United States Code).
(iv) An employee on the leadership staff of
the House of Representatives (as defined in
section 207(e)(9)(H) of title 18, United States
Code).
(v) An employee on the leadership staff of
the Senate (as defined in section 207(e)(9)(I)
of title 18, United States Code).
(B) In the executive branch--
(i) the President;
(ii) the Vice President;
(iii) a political appointee; or
(iv) any officer or employee of the
executive branch who is--
(I) not a political appointee; and
(II) occupies a position described
under paragraphs (3) through (8) of
section 13103(f) of title 5, United
States Code.
(C) A judicial officer.
(3) Executive branch.--The term ``executive branch'' has
the meaning given such term defined in section 13101 of title
5, United States Code.
(4) Family member.--The term ``family member'' means a
spouse or a dependent child as defined in section 13101 of
title 5, United States Code.
(5) Judicial officer.--The term ``judicial officer''--
(A) has the meaning given such term in section
13101 of title 5, United States Code; and
(B) includes bankruptcy judges and magistrate
judges.
(6) Member of congress.--The term ``Member of Congress''
has the meaning given such term defined in section 13101 of
title 5, United States Code.
(7) Political appointee.--The term ``political appointee''
means any individual occupying a position in the executive
branch of Government--
(A) who was appointed to such position by the
President, by and with the advice and consent of the
Senate;
(B) described under sections 5312 through 5316 of
title 5, United States Code (relating to the Executive
Schedule);
(C) as a noncareer appointment in the Senior
Executive Service, as defined under paragraph (7) of
section 3132(a) of such title; or
(D) that is of a confidential or policy-determining
character under schedule C of subpart C of part 213 of
title 5, Code of Federal Regulations, or any other
position that is excepted from the competitive service
because of its confidential policy-determining, policy-
making or policy-advocating character.
(8) Supervising ethics office.--The term ``supervising
ethics office'' means any of the following:
(A) In the case of an individual described in
paragraph (2)(A)--
(i) the Select Committee on Ethics of the
Senate; or
(ii) the Committee on Ethics of the House
of Representatives.
(B) In the case of an individual described in
paragraph (2)(B), the Office of Government Ethics.
(C) In the case of a judicial officer, the Judicial
Conference.
SEC. 3. BAN ON ALL OUTSIDE EARNED INCOME AND ALL SERVICE ON BOARDS BY
MEMBERS OF CONGRESS.
(a) Outside Earned Income.--
(1) In general.--Section 13143(a)(1) of title 5, United
States Code, is amended by striking ``outside earned income
attributable to such calendar year which exceeds 15 percent''
and inserting ``any outside earned income attributable to such
calendar year, except that such an officer or employee may have
outside earned income attributable to such calendar year which
does not exceed 15 percent''.
(2) Individuals becoming members during calendar year.--
Section 13143(a)(2) of such title is amended--
(A) by striking ``outside earned income
attributable to the portion of that calendar year which
occurs after such individual becomes a Member or such
an officer or employee which exceeds 15 percent'' and
inserting ``any outside earned income attributable to
the portion of that calendar year which occurs after
such individual becomes a Member or such an officer or
employee, except that such an officer or employee may
have outside earned income attributable to such portion
of that calendar year which does not exceed 15
percent''; and
(B) by striking ``such individual is a Member or
such officer or employee'' and inserting ``such
individual is such an officer or employee''.
(3) Preserving authority of officers and employees of
congress to earn compensation from practicing medicine.--
Section 13144(a) of such title is amended by striking
``fiduciary relationship'' each place it appears in paragraphs
(1) and (3) and inserting ``fiduciary relationship, except that
such an officer or employee of the House of Representatives or
Senate may receive such compensation if the fiduciary
relationship involves the practice of medicine''.
(4) Application of ban to income earned from teaching.--
Section 13144(a)(5) of such title is amended by striking
``without the prior notification'' and inserting ``except that
such an officer or employee may receive compensation for
teaching with the prior notification''.
(5) Definition.--Section 13141 of such title is amended by
adding at the end the following:
``(6) The term `outside earned income', with respect to a
Member of Congress, has the meaning given such term in clause
4(d) of rule XXV of the Rules of the House of Representatives
for the One Hundred Seventeenth Congress, except that paragraph
(d)(1)(D) of such clause shall not apply. Such term shall apply
with respect to a Senator in the same manner as such term
applies to a Member of the House of Representatives under such
clause.''.
(b) Service on Boards.--Section 13144(a)(4) of such title is
amended to read as follows:
``(4) serve as an officer or member of the board of any
association, corporation, or other entity, except that--
``(A) a Member and such an officer or employee may
serve without compensation as an officer or member of
the board of any nonprofit association, nonprofit
corporation, or other nonprofit entity, and
``(B) such an officer or employee may serve without
compensation as an officer or member of any other
association, corporation or other entity; or''.
SEC. 4. LIFETIME LOBBYING BAN.
(a) In General.--Section 207(e) of title 18, United States Code, is
amended as follows:
(1) Paragraph (1) is amended to read as follows:
``(1) Members of congress.--
``(A) In general.--Any person who is a Senator or a
Member of the House of Representatives and who, after
that person leaves office, knowingly makes any lobbying
contacts to, or engages in lobbying activities with, a
covered executive branch official, or to any Member,
officer, or employee of either House of Congress, shall
be punished as provided in section 216 of this title.
``(B) Definitions.--In this paragraph:
``(i) The terms `lobbying activities', and
`covered executive branch official' have the
meanings given those terms in section 3 of the
Lobbying Disclosure Act of 1995 (2 U.S.C.
1602).
``(ii) The term `lobbying contact' has the
meaning given such term in section 3(8) of the
Lobbying Disclosure Act of 1995 (2 U.S.C.
1602(8)) except that subparagraph (B)(iv) of
such paragraph shall not apply.''.
(2) Paragraph (2) is amended--
(A) by striking ``(2) Any person'' and inserting
the following:
``(2) Officers and certain staff.--
``(A) Officers and staff of the senate.--Any
person''; and
(B) by adding at the end the following:
``(B) Officers of the house of representatives.--
``(i) Any person who is an elected officer
of the House of Representatives and who, within
1 year after that person leaves office,
knowingly makes, with the intent to influence,
any communication to or appearance before any
of the persons described in clause (ii), on
behalf of any other person (except the United
States) in connection with any matter on which
such elected officer seeks action by a Member,
officer, or employee of either House of
Congress, in his or her official capacity,
shall be punished as provided in section 216 of
this title.
``(ii) The persons referred to in clause
(i) with respect to appearances or
communications by a former elected officer are
any Member, officer, or employee of the House
of Representatives.''.
(b) Restrictions Relating to Foreign Entities.--Section 207(f) of
title 18, United States Code, is amended--
(1) in paragraph (1), by striking ``Any person'' and
inserting ``Except as provided in paragraph (2), any person'';
(2) by redesignating paragraphs (2) and (3) as paragraphs
(3) and (4), respectively;
(3) by adding after paragraph (1) the following new
paragraph:
``(2) Member of congress.--With respect to the restrictions
under paragraph (1), any person who is a Member of Congress may
not engage in any of the activities under such paragraph at any
time after leaving office.''; and
(4) in paragraph (4), as redesignated by paragraph (2)--
(A) by striking ``means'' and inserting ``means--
'';
(B) by striking ``the government'' and inserting
``(A) the government'';
(C) by striking the period and inserting ``; or'';
and
(D) by adding at the end the following:
``(B) in the case of a Member of Congress, any foreign
principal as defined in section 1(b) of the Foreign Agents
Registration Act of 1938, as amended (22 U.S.C. 611(b)).''.
(c) Effective Date.--The amendments made by subsection (a) shall
apply to individuals who leave office or employment to which such
amendments apply on or after the date of commencement of the first
session of the One Hundred Nineteenth Congress sine die or January 3,
2024, whichever date is earlier.
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