[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1486 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
1st Session
S. 1486
To address financial conflicts of interest of the President and Vice
President.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 9, 2023
Ms. Warren (for herself, Mr. Murphy, Ms. Stabenow, Mrs. Feinstein, Mr.
Casey, Mr. Markey, Mr. Van Hollen, Mr. Blumenthal, Ms. Duckworth, Mr.
Merkley, Mr. Brown, Mr. Booker, Mr. Bennet, Mrs. Murray, Mr. Wyden, Mr.
Cardin, Ms. Hirono, Mr. Padilla, Mr. Coons, Ms. Klobuchar, Mr. Lujan,
Mrs. Gillibrand, and Ms. Smith) introduced the following bill; which
was read twice and referred to the Committee on Homeland Security and
Governmental Affairs
_______________________________________________________________________
A BILL
To address financial conflicts of interest of the President and Vice
President.
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 ``Presidential Conflicts of Interest
Act of 2023''.
SEC. 2. DIVESTITURE OF PERSONAL FINANCIAL INTERESTS OF THE PRESIDENT
AND VICE PRESIDENT THAT POSE A POTENTIAL CONFLICT OF
INTEREST.
(a) Definitions.--
(1) In general.--In this section--
(A) the term ``conflict-free holding'' means an
interest in a widely held investment fund (whether such
fund is a mutual fund, regulated investment company,
pension or deferred compensation plan, or other
investment fund) that--
(i) is diversified (as defined in section
2640.102 of title 5, Code of Federal
Regulations, as in effect on the date of
enactment of this Act); and
(ii) is--
(I) publicly traded;
(II) registered as a management
company under the Investment Company
Act of 1940 (15 U.S.C. 80a-1 et seq.);
or
(III) a unit investment trust (as
defined in section 4 of the Investment
Company Act of 1940 15 U.S.C. 80a-4)
that is a regulated investment company
under section 851 of the Internal
Revenue Code of 1986;
(B) the term ``financial interest posing a
potential conflict of interest'' means a financial
interest of the President, the Vice President, the
spouse of the President or Vice President, or a minor
child of the President or Vice President, as
applicable, that--
(i) would constitute a financial interest
described in subsection (a) of section 208 of
title 18, United States Code--
(I) if--
(aa) for purposes of such
section 208, the terms
``officer'' and ``employee''
included the President and the
Vice President; and
(bb) the President or Vice
President, as applicable,
participated in a particular
matter affecting such financial
interest; and
(II) determined without regard to
any exception under subsection (b)(1)
of such section 208; or
(ii) constitutes a present, emolument,
office, or title, of any kind whatever, from
any king, prince, or foreign state (including
from an entity owned or controlled by a foreign
government), within the meaning of article I,
section 9 of the Constitution of the United
States;
(C) the term ``qualified blind trust'' has the
meaning given that term in section 13104(f)(3) of title
5, United States Code; and
(D) the term ``tax return''--
(i) means any Federal income tax return and
any amendment or supplement thereto, including
supporting schedules, attachments, or lists
which are supplemental to, or part of, the
return for the taxable year; and
(ii) includes any information return that
reports information that does or may affect the
liability for tax for the taxable year.
(2) Applicability of ethics in government requirements.--
For purposes of the definition of ``qualified blind trust'' in
this section, the term ``supervising ethics officer'' in
section 13104(f)(3) of title 5, United States Code, means the
Director of the Office of Government Ethics.
(b) Initial Financial Disclosure.--
(1) Submission of disclosure.--
(A) In general.--Not later than 30 days after
assuming the office of President or Vice President,
respectively, the President and Vice President shall
submit to Congress and the Director of the Office of
Government Ethics a disclosure of financial interests.
(B) Application to sitting president and vice
president.--For any individual who is serving as the
President or Vice President on the date of enactment of
this Act, the disclosure of financial interests shall
be submitted to Congress and the Director of the Office
of Government Ethics not later than 30 days after the
date of enactment of this Act.
(2) Contents.--
(A) President.--The disclosure of financial
interests submitted under paragraph (1) by the
President shall--
(i) describe in detail each financial
interest of the President, the spouse of the
President, or a minor child of the President
that is required to be disclosed under
regulations of the Office of Government Ethics
in addition to the financial interests required
to be disclosed under section 13104 of title 5,
United States Code; and
(ii) include the tax returns filed by or on
behalf of the President for--
(I) the 3 most recent taxable
years; and
(II) each taxable year for which an
audit of the return by the Internal
Revenue Service is pending on the date
the report is filed.
(B) Vice president.--The disclosure of financial
interests submitted under paragraph (1) by the Vice
President shall--
(i) describe in detail each financial
interest of the Vice President, the spouse of
the Vice President, or a minor child of the
Vice President that is required to be disclosed
under regulations of the Office of Government
Ethics in addition to the financial interests
required to be disclosed under section 13104 of
title 5, United States Code; and
(ii) include the tax returns filed by or on
behalf of the Vice President for--
(I) the 3 most recent taxable
years; and
(II) each taxable year for which an
audit of the return by the Internal
Revenue Service is pending on the date
the report is filed.
(c) Divestiture of Financial Interests Posing a Potential Conflict
of Interest.--
(1) In general.--The President, the Vice President, the
spouse of the President or Vice President, and any minor child
of the President or Vice President shall divest of any
financial interest posing a potential conflict of interest by--
(A) converting each such interest to cash or
another investment that meets the criteria established
by the Director of the Office of Government Ethics
through regulation as being an interest so remote or
inconsequential as not to pose a conflict; or
(B) transferring such interest to a qualified blind
trust.
(2) Trustee duties.--Within a reasonable period of time
after the date a financial interest is transferred to a
qualified blind trust under paragraph (1)(B), the trustee of
the qualified blind trust shall--
(A) sell the financial interest; and
(B) use the proceeds of the sale of the financial
interest to purchase conflict-free holdings.
(3) Regulations.--Not later than 120 days after the date of
enactment of this Act, the Director of the Office of Government
Ethics shall promulgate regulations to define the criteria
described in paragraph (1)(A).
(d) Review by Office of Government Ethics.--
(1) In general.--The Director of the Office of Government
Ethics shall submit to Congress, the President, and the Vice
President an annual report regarding the financial interests of
the President, the Vice President, the spouse of the President
or Vice President, and any minor child of the President or Vice
President.
(2) Contents.--Each report submitted under paragraph (1)
shall--
(A) indicate whether any financial interest of the
President, the Vice President, the spouse of the
President or Vice President, or a minor child of the
President or Vice President is a financial interest
posing a potential conflict of interest;
(B) evaluate whether any previously held financial
interest of the President, the Vice President, the
spouse of the President or Vice President, or a minor
child of the President or Vice President that was a
financial interest posing a potential conflict of
interest was divested in accordance with subsection
(c); and
(C) redact such information as the Director of the
Office of Government Ethics determines necessary for
preventing identity theft, such as social security
numbers or taxpayer identification numbers.
(3) Trustee responsibility.--If the President, the Vice
President, the spouse of the President or Vice President, or
any minor child of the President or Vice President transfers 1
or more interests to a qualified blind trust under subsection
(c)(1)(B), the trustee for the qualified blind trust shall
assist the Director in complying with paragraph (2)(B) of this
subsection by notifying the Director of the Office of
Government Ethics when all initial property of the qualified
blind trust has been sold and furnishing such other information
as the Director may require.
(e) Enforcement.--
(1) In general.--The Attorney General, the attorney general
of any State, or any person aggrieved by any violation of
subsection (c) may seek declaratory or injunctive relief in a
court of competent jurisdiction if--
(A) the Director of the Office of Government Ethics
is unable to issue a report indicating whether the
President or the Vice President is in substantial
compliance with subsection (c); or
(B) there is probable cause to believe that the
President or the Vice President has not complied with
subsection (c).
(2) Fair market value.--In granting injunctive relief to
the plaintiff, the court shall ensure that any divestment
procedure is reasonably calculated to ensure the fair market
return for any asset that is liquidated.
SEC. 3. RECUSAL OF APPOINTEES.
Section 208 of title 18, United States Code, is amended by adding
at the end the following:
``(e)(1) Any officer or employee appointed by the President shall
recuse himself or herself from any particular matter involving specific
parties in which a party to that matter is--
``(A) the President who appointed the officer or employee,
which shall include any entity in which the President has a
substantial interest; or
``(B) the spouse of the President who appointed the officer
or employee, which shall include any entity in which the spouse
of the President has a substantial interest.
``(2)(A) Subject to subparagraph (B), if an officer or employee is
recused under paragraph (1), a career appointee in the agency of the
officer or employee shall perform the functions and duties of the
officer or employee with respect to the matter.
``(B)(i) In this subparagraph, the term `Commission' means a board,
commission, or other agency for which the authority of the agency is
vested in more than 1 member.
``(ii) If the recusal of a member of a Commission from a matter
under paragraph (1) would result in there not being a statutorily
required quorum of members of the Commission available to participate
in the matter, notwithstanding such statute or any other provision of
law, the members of the Commission not recused under paragraph (1)
may--
``(I) consider the matter without regard to the quorum
requirement under such statute;
``(II) delegate the authorities and responsibilities of the
Commission with respect to the matter to a subcommittee of the
Commission; or
``(III) designate an officer or employee of the Commission
who was not appointed by the President who appointed the member
of the Commission recused from the matter to exercise the
authorities and duties of the recused member with respect to
the matter.
``(3) Any officer or employee who knowingly and willfully violates
paragraph (1) shall be subject to the penalties set forth in section
216.
``(4) For purposes of this section, the term `particular matter'
shall have the meaning given the term in section 207(i).''.
SEC. 4. CONTRACTS BY THE PRESIDENT OR VICE PRESIDENT.
(a) Amendment.--Section 431 of title 18, United States Code, is
amended--
(1) in the section heading, by inserting ``the President,
Vice President, or a'' after ``Contracts by''; and
(2) in the first undesignated paragraph, by inserting ``the
President or Vice President,'' after ``Whoever, being''.
(b) Table of Sections Amendment.--The table of sections for chapter
23 of title 18, United States Code, is amended by striking the item
relating to section 431 and inserting the following:
``431. Contracts by the President, Vice President, or a Member of
Congress.''.
SEC. 5. PRESIDENTIAL TAX TRANSPARENCY.
(a) Disclosure Requirement.--
(1) In general.--Chapter 131 of title 5, United States
Code, is amended--
(A) by inserting after section 13104 the following:
``Sec. 13104A. Disclosure of tax returns
``(a) Definitions.--In this section--
``(1) the term `covered candidate' means an individual--
``(A) required to file a report under section
13103(c); and
``(B) who is nominated by a major party as a
candidate for the office of President; and
``(2) the term `covered individual' means--
``(A) a President required to file a report under
subsection (a) or (d) of section 13103; and
``(B) an individual who occupies the office of the
President required to file a report under section
13103(e);
``(3) the term `income tax return' means, with respect to
any covered candidate or covered individual, any return (within
the meaning of section 6103(b) of the Internal Revenue Code of
1986) related to Federal income taxes, but does not include--
``(A) information returns issued to persons other
than such covered candidate or covered individual, and
``(B) declarations of estimated tax; and
``(4) the term `major party' has the meaning given the term
in section 9002 of the Internal Revenue Code of 1986.
``(b) Disclosure.--
``(1) Covered individuals.--
``(A) In general.--In addition to the information
described in subsections (a) and (b) of section 13104,
a covered individual shall include in each report
required to be filed under this subchapter a copy of
the income tax returns of the covered individual for
the 3 most recent taxable years for which a return have
been filed with the Internal Revenue Service as of the
date on which the report is filed.
``(B) Failure to disclose.--If an income tax return
is not disclosed under subparagraph (A), the Director
of the Office of Government Ethics shall submit to the
Secretary of the Treasury a request that the Secretary
of the Treasury provide the Director of the Office of
Government Ethics with a copy of the income tax return.
``(C) Publicly available.--Each income tax return
submitted under this paragraph shall be filed with the
Director of the Office of Government Ethics and made
publicly available in the same manner as the
information described in subsections (a) and (b) of
section 13104.
``(D) Redaction of certain information.--Before
making any income tax return submitted under this
paragraph available to the public, the Director of the
Office of Government Ethics shall redact such
information as the Director of the Office of Government
Ethics, in consultation with the Secretary of the
Treasury (or a delegate of the Secretary), determines
appropriate.
``(2) Candidates.--
``(A) In general.--Not later than 15 days after the
date on which a covered candidate is nominated, the
covered candidate shall amend the report filed by the
covered candidate under section 13103(c) with the
Federal Election Commission to include a copy of the
income tax returns of the covered candidate for the 3
most recent taxable years for which a return has been
filed with the Internal Revenue Service.
``(B) Failure to disclose.--If an income tax return
is not disclosed under subparagraph (A), the Federal
Election Commission shall submit to the Secretary of
the Treasury a request that the Secretary of the
Treasury provide the Federal Election Commission with
the income tax return.
``(C) Publicly available.--Each income tax return
submitted under this paragraph shall be filed with the
Federal Election Commission and made publicly available
in the same manner as the information described in
section 13104(b).
``(D) Redaction of certain information.--Before
making any income tax return submitted under this
paragraph available to the public, the Federal Election
Commission shall redact such information as the Federal
Election Commission, in consultation with the Secretary
of the Treasury (or a delegate of the Secretary) and
the Director of the Office of Government Ethics,
determines appropriate.
``(3) Special rule for sitting presidents.--Not later than
30 days after the date of enactment of this section, the
President shall submit to the Director of the Office of
Government Ethics a copy of the income tax returns described in
paragraph (1)(A).''; and
(B) in section 13106--
(i) in subsection (a)--
(I) in paragraph (1), in the first
sentence, by inserting ``or any
individual who knowingly and willfully
falsifies or who knowingly and
willfully fails to file an income tax
return that such individual is required
to disclose pursuant to section
13104A'' before the period; and
(II) in paragraph (2)(A)--
(aa) in clause (i), by
inserting ``or falsify any
income tax return that such
person is required to disclose
under section 13104A'' before
the semicolon; and
(bb) in clause (ii), by
inserting ``or fail to file any
income tax return that such
person is required to disclosed
under section 13104A'' before
the period;
(ii) in subsection (b), in the first
sentence by inserting ``or willfully failed to
file or has willfully falsified an income tax
return required to be disclosed under section
13104A'' before the period;
(iii) in subsection (c), by inserting ``or
failing to file or falsifying an income tax
return required to be disclosed under section
13104A'' before the period; and
(iv) in subsection (d)(1)--
(I) in the matter preceding
subparagraph (A), by inserting ``or
files an income tax return required to
be disclosed under section 13104A''
after ``subchapter''; and
(II) in subparagraph (A), by
inserting ``or such income tax return,
as applicable,'' after ``report''.
(2) Conforming amendment.--The table of sections for
chapter 131 of title 5, United States Code, is amended by
inserting after the item relating to section 13104 the
following:
``13104A. Disclosure of tax returns.''.
(b) Authority To Disclose Information.--
(1) In general.--Section 6103(l) of the Internal Revenue
Code of 1986 is amended by adding at the end the following new
paragraph:
``(23) Disclosure of return information of presidents and
certain presidential candidates.--
``(A) Disclosure of returns of presidents.--
``(i) In general.--The Secretary shall,
upon written request from the Director of the
Office of Government Ethics pursuant to section
13104A(b)(1)(B) of title 5, United States Code,
provide to officers and employees of the Office
of Government Ethics a copy of any income tax
return of the President which is required to be
filed under section 13104A of such title.
``(ii) Disclosure to public.--The Director
of the Office of Government Ethics may disclose
to the public the income tax return of any
President which is required to be filed with
the Director pursuant to section 13104A of
title 5, United States Code.
``(B) Disclosure of returns of certain candidates
for president.--
``(i) In general.--The Secretary shall,
upon written request from the Chairman of the
Federal Election Commission pursuant to section
13104A(b)(2)(B) of title 5, United States Code,
provide to officers and employees of the
Federal Election Commission copies of the
applicable returns of any person who has been
nominated as a candidate of a major party (as
defined in section 9002(a)) for the office of
President.
``(ii) Disclosure to public.--The Federal
Election Commission may disclose to the public
applicable returns of any person who has been
nominated as a candidate of a major party (as
defined in section 9002(6)) for the office of
President and which is required to be filed
with the Commission pursuant to section 13104A
of title 5, United States Code.
``(C) Applicable returns.--For purposes of this
paragraph, the term `applicable returns' means, with
respect to any candidate for the office of President,
income tax returns for the 3 most recent taxable years
for which a return has been filed as of the date of the
nomination.''.
(2) Conforming amendments.--Section 6103(p)(4) of such
Code, in the matter preceding subparagraph (A) and in
subparagraph (F)(ii), is amended by striking ``or (22)'' and
inserting ``(22), or (23)'' each place it appears.
SEC. 6. SENSE OF CONGRESS REGARDING VIOLATIONS.
It is the sense of Congress that a violation of section 2 of this
Act or chapter 131 of title 5, United States Code, by the President or
the Vice President would constitute a high crime or misdemeanor under
article II, section 4 of the Constitution of the United States.
SEC. 7. RULE OF CONSTRUCTION.
Nothing in this Act or an amendment made by this Act shall be
construed to violate the Constitution of the United States.
SEC. 8. SEVERABILITY.
If any provision of this Act or any amendment made by this Act, or
any application of such provision or amendment to any person or
circumstance, is held to be unconstitutional, the remainder of the
provisions of this Act and the amendments made by this Act, and the
application of the provision or amendment to any other person or
circumstance, shall not be affected.
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