[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9560 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. R. 9560
To amend chapter 131 of title 5 to restrict certain financial trade and
ownership for certain Federal officials and their spouses and
dependents, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 30, 2026
Ms. McDonald Rivet (for herself, Mr. Kiley of California, Mr. Landsman,
and Mr. Vindman) introduced the following bill; which was referred to
the Committee on Oversight and Government Reform, and in addition to
the Committees on House Administration, the Judiciary, 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 amend chapter 131 of title 5 to restrict certain financial trade and
ownership for certain Federal officials and their spouses and
dependents, 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 ``No Profiting from Public Service
Act''.
SEC. 2. RESTRICTIONS ON TRADE AND OWNERSHIP OF COVERED INVESTMENTS.
(a) Table of Contents.--The table of contents for chapter 131 of
title 5, United States Code, is amended by adding at the end the
following:
subchapter iv-restrictions on financial trade and ownership
13151. Definitions.
13152. Financial trade and ownership.
13153. Penalties.
(b) Restrictions.--Chapter 131 of title 5, United States Code, is
amended by adding at the end a new subchapter:
``SUBCHAPTER IV--RESTRICTIONS ON FINANCIAL TRADE AND OWNERSHIP
``Sec. 13151. Definitions
``In this subchapter:
``(1) Commodity.--The term `commodity'--
``(A) has the meaning given the term in section 1a
of the Commodity Exchange Act (7 U.S.C. 1a); and
``(B) does not include--
``(i) a precious metal (as defined in
section 1027.100 of title 31, Code of Federal
Regulations); or
``(ii) a prediction market contract.
``(2) Covered individual.--The term covered individual
means any of the following:
``(A) An officer or employee of Congress (as
defined in section 13101).
``(B) A judicial employee (as defined in section
13101).
``(C) A political appointee.
``(D) An officer or employee described in section
13103(f)(3) who is not a political appointee.
``(E) A candidate as defined in section 301 of the
Federal Election Campaign Act of 1971 (52 U.S.C.
30101).
``(3) Covered official.--The term `covered official' means
any of the following:
``(A) A Member of Congress as defined in section
13101 of this title.
``(B) A judicial officer (as defined in section
13101).
``(C) The President.
``(D) The Vice President.
``(E) An individual occupying a position described
under sections 5312 through 5316 of title 5, United
States Code (relating to the Executive Schedule).
``(F) A dependent child as defined in such section
13101 or a spouse of any individual described in
subparagraphs (A) through (E).
``(4) Covered investment.--The term `covered investment'--
``(A) means an investment in a security, a
commodity, a future, or any comparable economic
interest acquired through synthetic means, such as the
use of a derivative, including an option, warrant, or
other similar means; and
``(B) does not include--
``(i) a widely held investment fund
described in section 13104(f)(8) that is
diversified and publicly traded on a national
or regional stock exchange;
``(ii) an investment described in
subparagraph (A) which is held in a qualified
blind trust;
``(iii) a diversified mutual fund
(including any holdings of such a fund);
``(iv) a diversified exchange-traded fund
(including any holdings of such a fund);
``(v) a United States Treasury bill, note,
or bond;
``(vi) a State or municipal government
bill, note, or bond;
``(vii) any compensation received by the
spouse or dependent child of a covered official
from their employer;
``(viii) an interest in a small business
concern and, in the case of an investment in a
family farm or ranch that qualifies as an
interest in a small business concern, a future
or commodity directly related to the farming
activities and products of the farm or ranch;
``(ix) an interest in a limited liability
company created for the sole purpose of
purchasing or holding real estate that serves
as the personal residences of the Member of
Congress;
``(x) any share 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)); or
``(xi) any share of Settlement Common
Stock, as defined in section 3 of the Alaska
Native Claims Settlement Act (43 U.S.C. 1602).
``(5) Diversified.--The term `diversified', with respect to
an investment fund, means such fund 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 within the United States except for the State
in which the Member of Congress resides.
``(6) Future.--The term `future' means a financial contract
obligating the buyer to purchase an asset or the seller to sell
an asset, such as a physical commodity or a financial
investment, at a predetermined future date and price.
``(7) Political appointee.--The term `political appointee'
means an individual--
``(A) serving under a noncareer appointment in the
Senior Executive Service, as defined under paragraph
(7) of section 3132(a) of such title; or
``(B) occupying a position in the executive branch
of the Government of a confidential or policy-
determining character under schedule C of subpart C of
part 213 of title 5, Code of Federal Regulations.
``(8) Prediction market contract.--The term `prediction
market contract' means any financial instrument, contract, or
derivative--
``(A) listed on or offered by a platform,
regardless of whether the platform is domiciled in the
United States; and
``(B) tied to the occurrence or non-occurrence of
an event, including event contracts, as described in
section 5c(c)(5)(C)(i) of the Commodity Exchange Act (7
U.S.C. 7a14 2(c)(5)(C)(i)).
``(9) Prohibited action.--The term `prohibited action'
means any activity described in subsections (a) or (b) of
section 13152.
``(10) Qualified blind trust.--The term `qualified blind
trust' has the meaning given the term in section 13104(f)(3).
``(11) 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)).
``(12) Small business concern.--The term `small business
concern' has the meaning given that term under section 3 of the
Small Business Act (15 U.S.C. 632).
``(13) Supervising ethics office.--The term `supervising
ethics office'--
``(A) has the meaning given the term in section
13101; or
``(B) means the Federal Elections Commission for a
covered individual described in paragraph (2)(E).
``Sec. 13152. Financial trade and ownership
``(a) Trade and Ownership of Covered Investment.--Except as
described in subsection (c), (e), a covered official may not directly
or indirectly, own or trade a covered investment.
``(b) Prediction Market Contract Trades.--No covered official or
covered individual may enter into, or offer to enter into a prediction
market contract that is dependent on the occurrence, nonoccurrence, or
the extent of the occurrence of a specific political or governmental
event, action, or policy.
``(c) Compliance.--
``(1) Requirement.--To comply with subsection (a), a
covered official shall divest of any covered investment through
sale at fair market value or placement in a qualified blind
trust by the effective date established in paragraph (2).
``(2) Effective date.--The effective date is established as
follows:
``(A) Ninety days for an individual who is a
covered official on the date of enactment of the No
Profiting from Public Service Act.
``(B) Ninety days within the date on which an
individual becomes a covered official if such date
occurs after the date of enactment of the No Profiting
from Public Service Act.
``(3) Assets acquired in special circumstances.--In the
event that a covered official acquires a covered investment
after the date of enactment of the No Profiting from Public
Service Act other than by purchase (such as by marriage,
inheritance, divorce settlement, or other circumstance), the
covered official shall have 90 days from the date on which such
investment was acquired to divest such covered investment at
fair market value or transfer it into a qualified blind trust.
``(4) Assets in qualified blind trusts upon separation.--A
covered official may not dissolve any qualified blind trust in
which a covered investment has been placed pursuant to
subsection (d)(1)(B), or otherwise control such an investment,
until the date that is 180 days after the date such covered
official ceases to be a covered official.
``(5) Trade and ownership upon separation.--A covered
individual or covered official, who within 180 days after the
date the covered official or covered individual ceases to be a
covered official or covered individual, respectively, engages
in any of the activities under subsections (a) or (b), shall be
subject to the penalties under section 13153.
``(d) Occupational Exception.--A spouse or dependent child under
section 13151(3)(F) may trade a covered investment if such covered
investment is not owned by a covered official and if such trade is
performed as a function of the primary occupation of the spouse or
dependent child.
``(e) Certificates of Divestiture.--
``(1) In general.--Each supervising ethics office shall
issue a certificate of divestiture to each covered official
required to divest under this subchapter upon submission of
proof of compliance by such official with the requirements to
divest or any extensions granted by the supervising ethics
office, and such certificate shall include an identification of
each specific property eligible for the application of the
certificate of divestiture program as determined by the
supervising ethics office.
``(2) Eligibility.--For purposes of section 1043 of the
Internal Revenue Code of 1986, a covered official shall not be
treated as an eligible person described in section
1043(b)(1)(A) of such Code.
``(f) Interpretative Guidance.--The supervising ethics office shall
issue interpretive guidance on any relevant term not defined in this
subchapter.
``(g) Rule of Construction.--Except as described in subsections (c)
and (d), a covered official or covered individual may not take any
prohibited action through any trust, person, or other entity.
``Sec. 13153. Penalties
``(a) In General.--
``(1) Penalties.--Any covered official or covered
individual who violates the restrictions in section 13152
shall, at the direction of the supervising ethics office--
``(A) pay a fine of equal to 10 percent of the
value of the covered investment or prediction market
contract; and
``(B) disgorge the profits of any transaction that
violates the provisions of this subchapter.
``(2) Payment of penalty to general fund.--A penalty
imposed under paragraph (1) shall be deposited into general
fund of the Treasury.
``(b) Income Tax.--A loss from a prediction market contract or
holding involving a covered investment that is conducted in violation
of this Act may not be deducted from the amount of income tax owed by
the covered official or covered individual.
``(c) Payment Restrictions.--A covered official or covered
individual may not pay any of the penalties under this section by using
amounts from the following sources:
``(1) The Members' Representational Allowance.
``(2) The Senators' Official Personnel and Office Expense
Account.
``(3) Any contribution (as defined in section 301(8) of the
Federal Election Campaign Act of 1971 (52 U.S.C. 30101(8)))
accepted as a candidate, and any other donation received as
support for activities of the individual as a holder of Federal
office.
``(d) Publication.--Each supervising ethics office shall publish on
a publicly available website a description of--
``(1) each fine assessed by the supervising ethics office
pursuant to this section;
``(2) the reason why each such fine was assessed; and
``(3) the result of each assessment.''.
<all>