[Senate Report 118-309]
[From the U.S. Government Publishing Office]


                                                  Calendar No. 729

118th Congress}                                           { Report
                                 SENATE
   2d Session }                                           { 118-309

======================================================================
                  ENDING TRADING AND HOLDINGS IN 
                 CONGRESSIONAL STOCKS (ETHICS) ACT

                               __________

                              R E P O R T

                                 OF THE

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              TO ACCOMPANY

                                S. 1171

             TO AMEND CHAPTER 131 OF TITLE 5, UNITED STATES
             CODE, TO PREVENT MEMBERS OF CONGRESS AND THEIR
              SPOUSES AND DEPENDENT CHILDREN FROM TRADING
            STOCKS AND OWNING STOCKS, AND FOR OTHER PURPOSES

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


   December 19 (legislative day, December 16), 2024.--Ordered to be 
                                printed
                                
                                
                             __________

                   U.S. GOVERNMENT PUBLISHING OFFICE                    
                        WASHINGTON : 2025                  
          
----------------------------------------------------------------------------------- 
                              
        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                   GARY C. PETERS, Michigan, Chairman
THOMAS R. CARPER, Delaware           RAND PAUL, Kentucky
MAGGIE HASSAN, New Hampshire         RON JOHNSON, Wisconsin
KYRSTEN SINEMA, Arizona              JAMES LANKFORD, Oklahoma
JACKY ROSEN, Nevada                  MITT ROMNEY, Utah
JON OSSOFF, Georgia                  RICK SCOTT, Florida
RICHARD BLUMENTHAL, Connecticut      JOSH HAWLEY, Missouri
ADAM SCHIFF, California              ROGER MARSHALL, Kansas

                   David M. Weinberg, Staff Director
                      Alan S. Kahn, Chief Counsel
            Lena C. Chang, Director of Governmental Affairs
               Emily I. Manna, Professional Staff Member
           William E. Henderson III, Minority Staff Director
              Christina N. Salazar, Minority Chief Counsel
                  Andrew J. Hopkins, Minority Counsel
                     Laura W. Kilbride, Chief Clerk
                     
                     
                     
                                                 Calendar No. 729

118th Congress}                                           { Report
                                 SENATE
   2d Session }                                           { 118-309

======================================================================
 
                  ENDING TRADING AND HOLDINGS IN 
                 CONGRESSIONAL STOCKS (ETHICS) ACT

                                _______
                                

   December 19 (legislative day, December 16), 2024.--Ordered to be 
                                printed

                                _______
                                

 Mr. Peters, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                              R E P O R T

                         [To accompany S. 1171]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 1171) to amend 
chapter 131 of title 5, United States Code, to prevent Members 
of Congress and their spouses and dependent children from 
trading stocks and owning stocks, and for other purposes, 
having considered the same, reports favorably thereon with an 
amendment, in the nature of a substitute, and recommends that 
the bill, as amended, do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background and Need for the Legislation..........................2
III. Legislative History..............................................4
 IV. Section-by-Section Analysis of the Bill, as Reported.............5
  V. Evaluation of Regulatory Impact..................................8
 VI. Congressional Budget Office Cost Estimate........................8
VII. Changes in Existing Law Made by the Bill, as Reported............9

                         I. Purpose and Summary

    S. 1171, the Ending Trading and Holdings In Congressional 
Stocks (ETHICS) Act, would ban all federally elected officials, 
and their respective spouses and dependent children, from 
buying, selling, and holding securities, commodities, and other 
types of similar investments. Specifically, the legislation 
bars Members of Congress, the President, and the Vice President 
(VP) from buying covered investments any time after the day of 
enactment and from selling covered investments as of 90 days 
after enactment. Covered investments include securities, 
commodities, futures, options, trusts, and other comparable 
holdings. Beginning on the effective date March 31, 2027, 
Members of Congress, the President, the VP, and their spouses 
and dependent children, would be given 120 days to divest all 
covered investments. The bill prohibits covered persons or 
their spouses or dependent children from utilizing a qualified 
blind trust (QBT) and requires the dissolution of any existing 
blind trusts. The legislation also includes enhanced 
transparency requirements and increases penalties for 
violations under the STOCK Act.

              II. Background and Need for the Legislation

    During the course of their official duties, Members of 
Congress, the President, and the VP may come into possession of 
information that is sensitive, non-public, or classified and 
that may have the potential to impact financial markets, 
including their own personal investments. In 2012, to address 
concerns that Members of Congress and their staffs were not 
subject to prohibitions on ``insider trading,'' or fraudulently 
trading on non-public information, Congress passed the Stop 
Trading on Congressional Knowledge Act of 2012 (STOCK Act). 
This law clarifies that a variety of security and commodity 
statutes that prohibit fraud and deception in connection with 
the sale of securities--commonly referred to as insider 
trading--do apply to Congress.\1\ The STOCK Act also increased 
the frequency of reporting financial transactions for Members 
and their staffs, to no later than 45 days after a transaction 
of more than $1,000 in covered investments, to provide greater 
transparency about their financial arrangements.\2\
---------------------------------------------------------------------------
    \1\Pub. L. No. 112-105 (2012). See also S. Rept. 112-244.
    \2\Id.
---------------------------------------------------------------------------
    While current law, as clarified by the STOCK Act, already 
precludes Members of Congress from trading stocks on non-public 
information obtained through the course of their duties, the 
public supports a full ban on trading stocks.\3\
---------------------------------------------------------------------------
    \3\University of Maryland Program for Public Consultation, Stock 
Trades by Members of Congress and Other Federal Officials (Jun. 2023) 
(https://publicconsultation.org/wp-content/uploads/2023/07/
StockTradesSlides_0723.pdf).
---------------------------------------------------------------------------
    The Ending Trading and Holdings In Congressional Stocks 
(ETHICS) Act would prevent bad actors from being able to take 
advantage of their positions for personal financial gain and 
eliminate the appearance of potential conflicts of interest, by 
prohibiting federally elected officials from purchasing, 
selling, or holding stocks and other similar investments. The 
bill utilizes a tiered implementation timeline with phased 
prohibition and divestment requirements. Specifically, the bill 
immediately prohibits Members of Congress, the President, and 
the VP (hereafter ``covered persons'') from purchasing any 
covered investments, while allowing covered persons to sell any 
covered investments in the 90-day window after enactment if 
they choose. Their respective spouses and dependent children 
are permitted to continue trading covered investments until the 
relevant covered person's effective date. The effective date 
for covered persons sworn in before the enactment of the bill 
is March 31, 2027. The effective date for covered persons 
assuming office after the date of enactment is 120 days after 
they assume office. The bill requires that each covered person 
must fully divest all covered investments no later than 120 
days after their effective date.
    The bill defines ``covered investments'' as securities, 
commodities, futures, options, trusts, digital assets, and 
other comparable holdings that are held by the individual, 
including through an investment fund or holding company, a 
trust (exemptions exist for certain family trusts), an employee 
compensation plan, or a deferred compensation plan. The 
legislation also specifies that digital assets are covered 
investments. Under the bill, covered investments do not include 
U.S. Treasury bonds and tax-free state and municipal bonds, 
diversified funds, compensation from the primary occupation of 
a spouse or board service by a spouse, interest in a small 
business that doesn't present a conflict of interest, or a 
government retirement plan. Under the bill, covered persons 
will also be allowed toholdcorporate bonds (but not trade 
them), and exemptions can be granted for family trusts that 
meet certain conditions.
    For clarity, if an asset is considered a security, as 
defined by section 3(a) of the Securities Exchange Act of 1934 
(15 U.S.C. 78c(a)), it would be a covered investment. In the 
case of more complicated investments, such as privately held 
assets, the Supreme Court established a test for whether a 
particular investment constitutes an ``investment contract'' 
and is thereby considered a security in SEC v W.J. Howey.\4\ 
Under the Howey test, an instrument qualifies as an investment 
contract if it involves (1) an investment of money, (2) in a 
common enterprise, (3) with a reasonable expectation of profit, 
and (4) to be derived from the effort or labor of others. The 
final step in the test--whether the effort is completed by 
others--is typically the most crucial in determining whether 
the contract is a security. Given the diverse array of 
investment opportunities and asset types, a case-specific 
inquiry and analysis will likely be necessary for certain types 
of assets to determine if they are covered.
---------------------------------------------------------------------------
    \4\See, SEC v W.J. Howey, 328 U.S. 293 (1946).
---------------------------------------------------------------------------
    The ETHICS Act also provides the opportunity to obtain a 
certificate of divestiture to defer the initial tax liability, 
provided that covered persons divest their covered investments 
and reinvest into diversified holdings. The bill also prohibits 
the use of qualified blind trusts (QBTs) and requires all QBTs 
currently held by covered persons and their spouses and 
dependent children to divest their covered investments and be 
dissolved. In addition, the legislation establishes robust 
enforcement mechanisms to ensure compliance. Penalties for 
violations of the divestment requirements will be either the 
monthly salary of the covered official or 10% of the value of 
each covered asset in violation of the law, whichever is 
greater. The legislation increases penalties for failing to 
report transactions under the STOCK Act, from $200 to $500. The 
bill also builds upon the disclosure requirements of the STOCK 
Act by requiring that each financial disclosure report or 
transaction disclosure report filed by a Member of Congress or 
candidate for Congress, as well as each notice of extension, 
amendment, or actions regarding a blind trust, be publicly 
available on the relevant ethics office website. Additionally, 
the bill establishes a 90-day cooling-off period after leaving 
government service, during which neither the covered person nor 
their spouse or dependent child will be permitted to control or 
purchase covered investments.

                        III. Legislative History

    Senator Jeff Merkley (D-OR) introduced the Ending Trading 
and Holdings In Congressional Stocks (ETHICS) Act on April 17, 
2023, with original cosponsors Senators Sherrod Brown (D-OH), 
Kirsten Gillibrand (D-NY), Angus King (I-ME), Bernard Sanders 
(I-VT), Debbie Stabenow (D-MI), Jeanne Shaheen (D-NH), Tammy 
Duckworth (D-IL), Robert Casey (D-PA), Peter Welch (D-VT), Ben 
Ray Lujan (D-NM), John Fetterman (D-PA), Mazie Hirono (D-HI), 
Catherine Cortez Masto (D-NV), Tammy Baldwin (D-WI), Chris Van 
Hollen (D-MD), Benjamin Cardin (D-MD), Jon Tester (D-MT), 
Martin Heinrich (D-NM), Tim Kaine (D-VA), and Richard 
Blumenthal (D-CT). The bill was referred to the Committee on 
Homeland Security and Governmental Affairs. Senator Brian 
Schatz joined as an additional cosponsor on May 2, 2023; and 
Senator Jacky Rosen (D-NV) joined as an additional cosponsor on 
May 23, 2024.
    The Committee considered S. 1171 at a business meeting on 
July 24, 2024. At the business meeting, Senators Peters, 
Hawley, Ossoff, and Rosen offered a substitute amendment, as 
well as a modification to that amendment. The Peters-Hawley-
Ossoff-Rosen substitute amendment, as modified, adds the 
President and the VP to the list of covered persons and changed 
the effective date from the start of a member's next term to 
instead apply uniformly to all covered persons beginning in 
March 2027. The substitute amendment, as modified, also 
prohibits covered persons from placing covered investments in a 
QBT, removes language from the bill regarding the 
implementation and enforceability of QBTs, and requires the 
dissolution of any covered person's existing QBTs and the 
divestment of their covered investments starting in 2027. The 
substitute amendment, as modified, also permits covered persons 
to utilize a certificate of divestiture to defer any tax 
liability when complying with the divestment requirements. 
Additionally, the substitute amendment, as modified ensures 
that all types of digital assets are covered investments and 
provides a rule of construction to clarify that this 
categorization does not imply that digital assets are not 
otherwise securities, commodities, or other types of covered 
investments.
    The Committee adopted the modification to the Peters-
Hawley-Ossoff-Rosen substitute amendment, and the Peters-
Hawley-Ossoff-Rosen substitute amendment, as modified, by 
unanimous consent, with Senators Peters, Hassan, Sinema, Rosen, 
Ossoff, Butler, Paul, Johnson, Lankford, Romney, Scott, Hawley, 
and Marshall present.
    Senator Romney offered an amendment to the bill and a 
modification to that amendment. The Romney amendment, as 
modified, would have exempted the bill from applying to 
securities or assets that were held by a Member of Congress, 
President, or VP prior to them assuming office, but would have 
banned acquisition and trading of any new assets once an 
official took office. The Committee adopted the modification to 
the Romney amendment by unanimous consent, with Senators 
Peters, Hassan, Rosen, Ossoff, Butler, Paul, Johnson, Lankford, 
Romney, Scott, Hawley, and Marshall present. The Committee did 
not adopt the Romney amendment, as modified, by a roll call 
vote of 6 yeas to 9 nays, with Senators Paul, Johnson, 
Lankford, Romney, Scott, and Marshall voting in the 
affirmative, and Senators Peters, Hassan, Rosen, Ossoff, 
Butler, and Hawley voting in the negative. Senators Carper, 
Sinema, and Blumenthal voted nay by proxy, for the record only.
    The bill, as amended by the Peters-Hawley-Ossoff-Rosen 
substitute amendment, as modified, was ordered reported 
favorably by roll call vote of 8 yeas to 4 nays, with Senators 
Peters, Hassan, Rosen, Ossoff, Butler, Scott, Hawley, and 
Marshall voting in the affirmative, and Senators Paul, Johnson, 
Lankford, and Romney voting in the negative. Senators Carper, 
Sinema, and Blumenthal voted yea by proxy, for the record only.
    Consistent with Committee Rule 3(G), the Committee reports 
the bill with a technical amendment by mutual agreement of the 
Chairman and Ranking Member.

        IV. Section-by-Section Analysis of the Bill, as Reported


Section 1. Short title

    This section establishes the short title of the bill as the 
``Ending Trading and Holdings In Congressional Stocks (ETHICS) 
Act.''

Section 2. Divestment of certain assets of Members of Congress, the 
        President, the Vice President, and their spouses and dependent 
        children

    Subsection (a) adds a new subchapter IV to chapter 131 of 
title 5, United States Code, entitled ``Certain Assets of 
Members of Congress, the President, the Vice President, And 
Their Spouses And Dependent Children.'' The new subchapter 
includes the following sections:
            Section 13161. Definitions
    This section provides definitions for the following terms: 
``commodity,'' ``covered investment,'' ``covered person,'' 
``custody,'' ``dependent child,'' ``digital asset,'' 
``diversified,'' ``future,'' ``illiquid investment,'' 
``interested party,'' ``Member of Congress,'' ``supervising 
ethics office,'' ``qualified blind trust,'' ``security,'' and 
``small business concern.''
            Section 13162. Trading covered investments
    Subsection (a) prohibits covered persons from purchasing 
covered investments effective on the date of enactment, 
prohibits covered persons from selling a covered investment 90 
days after the date of enactment, and prohibits a covered 
person's spouse or dependent child from purchasing or selling 
any covered investment after March 31, 2027.
    Subsection (b) provides an optional divestment window where 
a covered person may sell any covered investment within 90 days 
of enactment of the ETHICS Act.
    Subsection (c) provides that a covered person may divest a 
covered investment as directed by their ethics office, 
notwithstanding subsection (a).
    Subsection (d) provides that any covered investment owned 
jointly by a covered person and their spouse shall be treated 
as if it is owned by the covered person.
            Section 13163. Addressing owned covered investments
    Subsection (a) requires covered persons to divest each 
covered investment owned by themselves and their spouse or 
dependent child 120 days after the effective date (March 31, 
2027) or in the case of individuals who assume office after 
that date, 120 days after commencing a new non-consecutive 
term. This section also requires a covered person to divest an 
illiquid investment no later than 90 days after they are 
contractually permitted to sell such investment. This section 
also prohibits a covered person or their spouse or dependent 
child from maintaining a qualified blind trust (QBT) 180 days 
after the effective date. Additionally, this section requires 
the trustee of existing QBTs to comply with the divestment 
requirements of the Act and then dissolve any QBT. This section 
also requires the trustee to provide notice of divestment of 
covered investments and dissolution of the QBT to the 
supervising ethics office, and allows a covered person to 
request an extension in the case where the trustee believes the 
size or complexity warrants an extension. This section also 
permits a covered person to communicate with and direct their 
trustee to determine when to divest covered investments, which 
property to divest into, and whether to utilize a certificate 
of divestiture. This section also permits a legal guardian to 
hold or trade covered investments on behalf of a dependent 
child, provided that the investments' value does not exceed 
$10,000.
    Subsection (b) permits a covered person to utilize 
certificates of divestiture to defer taxes on holdings that are 
divested into a diversified mutual fund or a diversified 
exchange traded fund pursuant to this Act and applies to all 
applicable sales after the enactment of the Act.
    Subsection (c) prohibits a covered person, their spouse or 
dependent child from acquiring any covered investment. This 
subsection also requires that if a covered person or their 
spouse or dependent child inherits a covered investment, they 
must divest it within 120 of the inheritance, and permits the 
supervising ethics office to grant limited extensions.
    Subsection (d) permits a supervising ethics office to grant 
an exemption to a covered person for a family trust provided 
that (1) neither the covered person, spouse or dependent child 
is a grantor of the family trust, contributed any asset to the 
family trust, or has any authority over a trustee of the family 
trust, (2) they submit the exemption request in writing, and 
(3) the ethics office publishes the request and their written 
response on their website.
    Subsection (e) establishes a cooling-off period where a 
covered person, and any spouse or dependent child, may not 
control a covered investment for 90 days following the covered 
person's departure from government service.
    Subsection (f) requires each supervising ethics office to 
publish on their website a copy of each notice of divestiture 
of assets within a QBT, each notice and other documentation 
submitted under this section, and each response issued or 
received by the ethics office regarding family trusts, as well 
as a written notice of dissolution for each QBT dissolved and a 
description of each extension granted and each civil penalty 
imposed under this section. This section also requires a 
covered person to submit a notice to the applicable supervising 
ethics office for the application for or receipt of covered 
payments. This section defines a ``covered payment'' as a loan 
agreement, contract, or grant made, or promised to be made, by 
the federal government, or other type of payment of money (as 
determined by the supervising ethics office), but does not 
include any salary or tax refund.
    Subsection (g) requires the supervising ethics office to 
notify a covered person if they fail to divest a covered 
investment owned by them or their spouse or dependent child, or 
when they acquire an interest in a covered investment in 
violation of this section. This section requires the 
supervising ethics office to fine a covered person who received 
a notice and remains out of compliance 30 days after the notice 
was provided, with a fine equal to their monthly rate of pay or 
10% of the value of the covered investment that was not 
divested, whichever is greater.
    Subsection (h) provides that each supervising ethics office 
shall impose and collect civil penalties in accordance with 
subsection (g), establish procedures and standard forms, issue 
rules and guidelines, and publish on a website all documents 
and communication described in this section.
    Subsection (i) provides a rule of construction that nothing 
in this section shall prevent a covered person or their spouse 
or dependent child from owning or trading a diversified mutual 
fund, or a publicly traded diversified exchange traded fund.
    Subsection (j) provides an applicable effective date of 
March 31, 2027, for this section.
    Subsection (b) makes a clerical amendment to the table of 
section for chapter 131 of title 5, United States Code.
    Subsection (c) makes technical and conforming amendments to 
sections 13103 and 13122 of title 5 United States Code, the 
Lobbying Disclosure Act of 1995 (2 U.S.C. 1602(4)(D)), and the 
Securities Exchange Act of 1934 (15 U.S.C. 78u-1).

Section 3. Penalty for Stock Act noncompliance

    This section amends the STOCK Act to assess a $500 fine for 
each time a reporting individual fails to file a transaction 
report. It applies these amendments effective March 31, 2027, 
and provides that the fines be deposited into the U.S. 
Treasury. It also permits each supervising ethics office to 
amend the rules, regulations, guidance, documents, papers, and 
other records of the supervising ethics office in accordance 
with the amendment made by this section.

Section 4. Electronic filing and online public availability of 
        financial disclosure forms

    This section requires that each financial disclosure report 
or transaction disclosure report filed by a Member of Congress 
or candidate for Congress, and each notice of extension, 
amendment, or blind trust with respect to a report described in 
subclause (I) or (II) of subchapter 1 of chapter 131 of title 5 
U.S.C., be publicly available on an accessible website that 
permits the data to be searched, sorted, or downloaded.

Section 5. Severability

    This section provides a severability clause so that if any 
provision, amendment, or application of a provision or 
amendment is held to be unconstitutional, the remainder of the 
Act shall not be affected.

                   V. Evaluation of Regulatory Impact

    Pursuant to the requirements of paragraph 11(b) of rule 
XXVI of the Standing Rules of the Senate, the Committee has 
considered the regulatory impact of this bill and determined 
that the bill will have no regulatory impact within the meaning 
of the rules. The Committee agrees with the Congressional 
Budget Office's statement that the bill contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act (UMRA) and would impose no costs 
on state, local, or tribal governments.

             VI. Congressional Budget Office Cost Estimate

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


    S. 1171 would prohibit Members of Congress, the President, 
the Vice President and their spouses and dependent children 
from owning or trading certain financial assets. The sale of 
assets that have appreciated in value would typically trigger 
tax liability on those capital gains. However, the tax code 
allows those required to divest property in order to avoid a 
conflict of interest or the appearance of a conflict to obtain 
a certificate of divestiture, which allows them to reinvest the 
proceeds of a required sale into certain approved assets (such 
as U.S. Treasuries or diversified mutual funds) and to defer 
the taxable realization of the capital gains until those assets 
are sold in the future.
    The Congressional Budget Act of 1974, as amended, 
stipulates that revenue estimates provided by the staff of the 
Joint Committee on Taxation (JCT) will be the official 
estimates for all tax legislation considered by the Congress. 
As such, CBO incorporates those estimates into its cost 
estimates of the effects of legislation.
    For this estimate, CBO and JCT assume that the bill will be 
enacted near the beginning of fiscal year 2025.
    JCT estimates that enacting S. 1171 would reduce revenues 
by $3 million over the 2024-2034 period.
    S. 1171 also would create new civil monetary penalties for 
violations of the new rules created by the bill. Thus, enacting 
the bill could increase collections of civil penalties, which 
are treated as revenues in the budget. However, CBO estimates 
that any increase would be insignificant over the 2024-2034 
period because the penalty amounts are relatively small, and we 
expect few violations of the bill's new prohibitions.
    CBO estimates that implementing S. 1171 would increase 
administrative costs governmentwide by less than $500,000 over 
the 2024-2029 period; any related spending would be subject to 
the availability of appropriated funds.
    The costs of the legislation, detailed in Table 1, fall 
within budget function 800 (general government).

                                                    TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF S. 1171
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                By fiscal year, millions of dollars--
                                           -------------------------------------------------------------------------------------------------------------
                                             2024    2025    2026    2027    2028    2029    2030    2031    2032    2033    2034   2024-2029  2024-2034
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                DECREASES (-) IN REVENUES
 
Estimated Revenues........................       0       *       *       *       *       *       *       *       *       *       *         -1         -3
--------------------------------------------------------------------------------------------------------------------------------------------------------
Components may not sum to totals because of rounding; * = between -$500,00 and zero.
CBO also estimates that implementing S. 1171 would increase governmentwide administrative costs by less than $500,000 over the 2024-2029 period; any
  related spending would be subject to the availability of appropriated funds.

    The CBO staff contact for this estimate is Matthew 
Pickford. The estimate was reviewed by H. Samuel Papenfuss, 
Deputy Director of Budget Analysis and John McClelland, 
Director of Tax Analysis.

                                         Phillip L. Swagel,
                             Director, Congressional Budget Office.

       VII. Changes in Existing Law Made by the Bill, as Reported

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in brackets, new matter is 
printed in italic, and existing law in which no change is 
proposed is shown in roman):

UNITED STATES CODE

           *       *       *       *       *       *       *


           *       *       *       *       *       *       *


TITLE 2--THE CONGRESS

           *       *       *       *       *       *       *


CHAPTER 26--DISCLOSURE OF LOBBYING ACTIVITIES

           *       *       *       *       *       *       *



SEC. 1602. DEFINITIONS.

          (1) * * *
          (2) * * *
          (3) * * *
          (4) Covered legislative branch official
          The term ``covered legislative branch official'' 
        means--
                  (A) a Member of Congress;
                  (B) an elected officer of either House of 
                Congress;
                  (C) any employee of, or any other individual 
                functioning in the capacity of an employee of--
                          (i) a Member of Congress;
                          (ii) a committee of either House of 
                        Congress;
                          (iii) the leadership staff of the 
                        House of Representatives or the 
                        leadership staff of the Senate;
                          (iv) a Joint committee of Congress; 
                        and
                          (v) a working group or caucus 
                        organized to provide legislative 
                        services or other assistance to Members 
                        of Congress; and
                  (D) any other [legislative branch employee 
                serving in a position described under section 
                13101(13) of title 5] officer or employee of 
                Congress (as defined in section 13101 of title 
                5, United States Code).

           *       *       *       *       *       *       *


TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES

           *       *       *       *       *       *       *


PART IV--ETHICS REQUIREMENTS

           *       *       *       *       *       *       *


CHAPTER 131--ETHICS IN GOVERNMENT

           *       *       *       *       *       *       *



Subchapter I--Financial Disclosure Requirements of Federal Personnel

           *       *       *       *       *       *       *



SEC. 13103. PERSONS REQUIRED TO FILE.

    (a) * * *
    (b) * * *
    (c) * * *
    (d) * * *
    (e) * * *
    (f) Individuals Required To File
          (1) * * *
          (2) * * *
          (3) * * *
          (4) * * *
          (5) * * *
          (6) * * *
          (7) * * *
          (8) * * *
          (9) a Member of Congress [as defined in section 13101 
        of this title];
          (10) an officer or employee of the Congress [as 
        defined in section 13101 of this title];
          (11) a judicial officer [as defined in section 13101 
        of this title]; and
          (12) a judicial employee [as defined in section 13101 
        of this title].

           *       *       *       *       *       *       *


               Subchapter II--Office of Government Ethics


SEC. 13122. AUTHORITY AND FUNCTIONS.

    (a) * * *
    (b) * * *
    (c) * * *
    (d) * * *
    (e) * * *
    (f) Corrective Actions.--
          (1) * * *
          (2) Individual officers and employees
                  (A) * * *
                  (B) Investigations and findings concerning 
                possible violations.--
                          (i) Authority of director.--In order 
                        to carry out the Director's duties and 
                        responsibilities under subparagraph 
                        (A)(iii) or (iv) with respect to 
                        individual officers and employees, the 
                        Director may conduct investigations and 
                        make findings concerning possible 
                        violations of any rule, regulation, or 
                        Executive order relating to conflicts 
                        of interest or standards of conduct 
                        applicable to officers and employees of 
                        the executive branch.
                          (ii) Notification of alleged 
                        violation and opportunity to comment.--
                                  (I) Notification before a 
                                finding is made.--[Subject to 
                                clause (iv) of this 
                                subparagraph, before] any 
                                finding is made under 
                                subparagraphs (A)(iii) or (iv), 
                                the officer or employee 
                                involved shall be afforded 
                                notification of the alleged 
                                violation, and an opportunity 
                                to comment, either orally or in 
                                writing, on the alleged 
                                violation.
                                  (II) Procedures.--The 
                                Director shall, in accordance 
                                with section 553 of this title, 
                                establish procedures for such 
                                notification and comment.
                          (iii) Hearing.--[Subject to clause 
                        (iv) of this subparagraph, before] any 
                        action is ordered under subparagraph 
                        (A)(iii), the officer or employee 
                        involved shall be afforded an 
                        opportunity for a hearing, if requested 
                        by such officer or employee, except 
                        that any such hearing shall be 
                        conducted on the record.
                          [(iv) Exception.--The procedures 
                        described in clauses (ii) and (iii) of 
                        this subparagraph do not apply to 
                        findings or orders for action made to 
                        obtain compliance with the financial 
                        disclosure requirements in subchapter 
                        I. For those findings and orders, the 
                        procedures insection 13108 of this 
                        titleshall apply.]

           *       *       *       *       *       *       *


 Subchapter IV--Certain Assets of Members of Congress, the President, 
the Vice President, and Their Spouses and Dependent Children

           *       *       *       *       *       *       *


13161.  Definitions.
13162.  Trading covered investments
13163.  Addressing owned covered investments
     * * * * * * *

SEC. 13161. DEFINITIONS.

    In this subchapter:
          (1) Commodity.--The term ``commodity'' has the 
        meaning given the term in section 1a of the Commodity 
        Exchange Act (7 U.S.C. 1a).
          (2) Covered investment.--
                  (A) In general.--The term ``covered 
                investment'' means--
                          (i) an investment in--
                                  (I) a security;
                                  (II) a commodity;
                                  (III) a future; or
                                  (IV) a digital asset;
                          (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; or
                          (iii) any interest described in 
                        clause (i) or (ii) that is held 
                        directly, or in which an individual has 
                        an indirect, beneficial, or economic 
                        interest, through--
                                  (I) an investment fund or 
                                holding company;
                                  (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.
                  (B) 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 the spouse of a covered 
                        person, or any security that is issued 
                        or paid by an operating business that 
                        is the primary employer of such a 
                        spouse that is issued or paid to such a 
                        spouse;
                          (v) holding and acquiring any 
                        security that is issued or paid as 
                        compensation from corporate board 
                        service by the spouse of a covered 
                        person, including the dividend 
                        reinvestment in the same security 
                        received from the corporate board 
                        service by the spouse of a covered 
                        person;
                          (vi) any covered investment that is 
                        traded by the spouse of a covered 
                        person in the course of performing the 
                        primary occupation of such a spouse, 
                        provided the investment is not owned by 
                        a covered person or the spouse or 
                        dependent child of a covered person;
                          (vii) any investment fund held in a 
                        Federal, State, or local government 
                        employee retirement plan;
                          (viii) a tax-free State or municipal 
                        bond;
                          (ix) an interest in a small business 
                        concern, if the supervising ethics 
                        office determines that the small 
                        business concern does not present a 
                        conflict of interest, 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;
                          (x) holding investment-grade 
                        corporate bonds, provided that the 
                        corporate bonds are held by an 
                        individual who is a covered person, or 
                        a spouse or dependent child of a 
                        covered person, on the date of 
                        enactment of the Ending Trading and 
                        Holdings In Congressional Stocks 
                        (ETHICS) Act;
                          (xi) 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
                          (xii) any share of Settlement Common 
                        Stock, as defined in section 3 of the 
                        Alaska Native Claims Settlement Act (43 
                        U.S.C. 1602).
                  (C) Rule of construction.--Nothing in this 
                paragraph shall be construed to imply that 
                particular digital assets are not securities, 
                commodities, or other types of covered 
                investments.
          (3) Covered person.--The term ``covered person'' 
        means--
                  (A) a Member of Congress;
                  (B) the President of the United States; or
                  (C) the Vice President of the United States.
          (4) Custody.--The term ``custody'' has the meaning 
        given the term in section 275.206(4)-2(d) of title 17, 
        Code of Federal Regulations, as in effect on the date 
        of enactment of the Ending Trading and Holdings In 
        Congressional Stocks (ETHICS) Act (or any successor 
        regulation).
          (5) Dependent child.--The term ``dependent child'' 
        means, with respect to any covered person, any 
        individual who is--
                  (A) under 19 years of age; and
                  (B) a dependent of the covered person within 
                the meaning of section 152 of the Internal 
                Revenue Code of 1986.
          (6) Digital asset.--The term ``digital asset'' means 
        any digital representation of value that is recorded on 
        a cryptographically secured distributed ledger or any 
        similar technology.
          (7) 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 single industry, 
        business, or single country other than the United 
        States.
          (8) Future.--The term ``future'' means--
                  (A) a security future (as defined in section 
                3(a) of the Securities Exchange Act of 1934 (15 
                U.S.C. 78c(a))); and
                  (B) any other contract for the sale of a 
                commodity for future delivery.
          (9) Illiquid investment.--The term ``illiquid 
        investment'' means an interest in a private fund, as 
        defined in section 202(a) of the Investment Advisers 
        Act of 1940 (15 U.S.C. 80b-2(a)).
          (10) Interested party.--The term ``interested party'' 
        has the meaning given the term in section 
        13104(f)(3)(E).
          (11) Member of congress; supervising ethics office.--
        The terms ``Member of Congress''' and ``supervising 
        ethics office'' have the meanings given those terms in 
        section 13101.
          (12) Qualified blind trust.--The term ``qualified 
        blind trust'' has the meaning given the term in section 
        13104(f)(3).
          (13) 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)).
          (14) Small business concern.--The term ``small 
        business concern'' has the meaning given the term under 
        section 3 of the Small Business Act (15 U.S.C. 632).

SEC. 13162. TRADING COVERED INVESTMENTS.

    (a) Ban on Trading.--Except as provided in subsections (b) 
and (c)--
          (1) effective on the date of enactment of the Ending 
        Trading and Holdings In Congressional Stocks (ETHICS) 
        Act, a covered person shall not purchase any covered 
        investment;
          (2) effective on the date that is 90 days after the 
        date of enactment of the Ending Trading and Holdings In 
        Congressional Stocks (ETHICS) Act, a covered person 
        shall not sell any covered investment, except as 
        provided in section 13163(a)(1); and
          (3) on and after the effective date described in 
        section 13163(j), an individual who is a spouse or 
        dependent child of a covered person shall not purchase 
        any covered investment or sell any covered investment, 
        except as provided in section 13163(a)(1).
    (b) Optional Divestment Window.--
          (1) Current members.--Notwithstanding subsection (a), 
        a covered person who is sworn into office on or before 
        the date of enactment of the Ending Trading and 
        Holdings In Congressional Stocks (ETHICS) Act may sell 
        a covered investment within 90 days of the date of 
        enactment of such Act.
          (2) New members.--Notwithstanding subsection (a), a 
        covered person who is sworn into office after the date 
        of enactment of the Ending Trading and Holdings In 
        Congressional Stocks (ETHICS) Act, but before the 
        effective date under section 13163(j), may sell a 
        covered investment within 90 days of commencing a new 
        non-consecutive term of service as a Member of 
        Congress, President, or Vice President.
    (c) Exception.--Notwithstanding subsection (a), a covered 
person may divest a covered investment as directed by the 
relevant supervising ethics office pursuant to this Act.
    (d) Joint Covered Investment.--Any covered investment 
reported to the supervising ethics office as jointly owned by a 
covered person and the spouse of the covered person shall be 
deemed to be a covered investment of the covered person for 
purposes of this section.

SEC. 13163. ADDRESSING OWNED COVERED INVESTMENTS.

    (a) Covered Persons.--
          (1) Divestiture.--
                  (A) Requirements.--
                          (i) Officials sworn in before the 
                        effective date.--Subject to paragraph 
                        (2) and the amendments made under 
                        subsection (b), a covered person who is 
                        sworn into office on or before the 
                        effective date described in subsection 
                        (j), not later than 120 days after the 
                        effective date described in subsection 
                        (j), subject to any extension granted 
                        under subparagraph (C)(iii) of this 
                        paragraph, shall divest each covered 
                        investment owned or in the custody of--
                                  (I) the covered person; or
                                  (II) a spouse or dependent 
                                child of the covered person.
                          (ii) Officials sworn in after the 
                        effective date.--Subject to paragraph 
                        (2) and the amendments made under 
                        subsection (b), a covered person who is 
                        sworn into office after the effective 
                        date described in subsection (j), not 
                        later than 120 days after commencing a 
                        new non-consecutive term of service as 
                        a Member of Congress, President, or 
                        Vice President, subject to any 
                        extension granted under subparagraph 
                        (C)(iii) of this paragraph, shall 
                        divest each covered investment owned or 
                        in the custody of--
                                  (I) the covered person; or
                                  (II) a spouse or dependent 
                                child of the covered person.
                  (B) Illiquid investments.--Not later than 90 
                days after the date on which a covered person 
                is contractually permitted to sell an illiquid 
                investment, the covered person shall divest the 
                illiquid investment.
                  (C) Qualified blind trusts.--
                          (i) Prohibition on future qualified 
                        blind trusts.--Except as provided in 
                        clause (iii), on and after the date 
                        that is 180 days after the effective 
                        date described in subsection (j), no 
                        covered person, or the spouse or 
                        dependent child of the covered person, 
                        may maintain a qualified blind trust.
                          (ii) Mandatory sale of covered 
                        investments in existing qualified blind 
                        trusts.--
                                  (I) In general.--The trustee 
                                of a qualified blind trust 
                                holding covered investments 
                                shall, at a time elected by the 
                                covered person, on behalf of a 
                                covered person, and in 
                                accordance with clause (iv)--
                                          (aa) divest all 
                                        covered investments 
                                        held in the qualified 
                                        blind trust for the 
                                        purposes of complying 
                                        with the divestiture 
                                        requirements under this 
                                        section, in accordance 
                                        with subparagraph (A); 
                                        and
                                          (bb) dissolve the 
                                        qualified blind trust 
                                        in accordance with this 
                                        chapter and guidance 
                                        from the supervising 
                                        ethics office.
                                  (II) Notice of compliance.--
                                          (aa) Notice of 
                                        divestiture.--
                                                  (AA) In 
                                                general.--Upon 
                                                the completion 
                                                of divestiture 
                                                of all covered 
                                                investments 
                                                pursuant to 
                                                subclause 
                                                (I)(aa), the 
                                                trustee shall 
                                                submit to the 
                                                supervising 
                                                ethics office 
                                                and the 
                                                applicable 
                                                covered person 
                                                a written 
                                                notice stating 
                                                that the 
                                                trustee has 
                                                completed 
                                                divestiture of 
                                                all covered 
                                                investments 
                                                held in the 
                                                qualified blind 
                                                trust pursuant 
                                                to subclause 
                                                (I)(aa).
                                                  (BB) 
                                                Publication.--
                                                The supervising 
                                                ethics office 
                                                shall publish 
                                                the notice 
                                                required under 
                                                subitem (AA) on 
                                                the website of 
                                                the supervising 
                                                ethics office.
                                          (bb) Notice of 
                                        dissolution.--Upon the 
                                        dissolution of a 
                                        qualified blind trust 
                                        pursuant to subclause 
                                        (I)(bb), the trustee 
                                        shall submit to the 
                                        supervising ethics 
                                        office and the 
                                        applicable covered 
                                        person a written notice 
                                        stating that the trust 
                                        has dissolved the 
                                        qualified blind trust 
                                        pursuant to subclause 
                                        (I)(bb) and shall 
                                        include a list of the 
                                        assets held in the 
                                        qualified blind trust 
                                        on the date of the 
                                        dissolution of such 
                                        trust and the category 
                                        of value of each such 
                                        asset.
                          (iii) Extension of mandatory sale of 
                        covered investments.--
                                  (I) Request.--Each covered 
                                person who maintains a 
                                qualified blind trust 
                                established by the covered 
                                person, or a spouse or 
                                dependent child of the covered 
                                person, in any case in which 
                                the trustee of the qualified 
                                blind trust believes the size 
                                or complexity of the covered 
                                investments in the qualified 
                                blind trust warrant such 
                                extension may apply to the 
                                supervising ethics office for 
                                an extension of the period 
                                described in subparagraph (A).
                                  (II) Duration.--An extension 
                                granted under subclause (I) 
                                shall not exceed 90 days.
                          (iv) Communications.--A covered 
                        person may communicate with and direct 
                        the trustee of their qualified blind 
                        trust for the purposes of--
                                  (I) determining when 
                                divestment of covered 
                                investments in the qualified 
                                blind trust should occur, 
                                pursuant to paragraph 1(A) of 
                                this subsection, clause (ii) of 
                                this subparagraph, or section 
                                13162(b), as applicable;
                                  (II) determining which 
                                permitted property covered 
                                investments should be divested 
                                into; and
                                  (III) whether the trustee 
                                utilizes a certificate of 
                                divestiture pursuant to section 
                                1043(b) of the Internal Revenue 
                                Code of 1986, as amended by 
                                subsection (b) of this section.
          (2) Exception for dependents.--An individual who is a 
        dependent child of a covered person may have a legal 
        guardian hold or trade on behalf of the dependent child 
        1 or more covered investments provided that the value 
        of the covered investments in total does not exceed 
        $10,000.
    (b) Tax Treatment of Divestitures.--
          (1) In general.--Section 1043(b) of the Internal 
        Revenue Code of 1986 is amended--
                  (A) in paragraph (1)(A), by inserting `or a 
                covered person (as defined in section 13161 of 
                title 5, United States Code),' after `of the 
                Federal Government,';
                  (B) in paragraph (2)(B)--
                          (i) by striking `employees, or' and 
                        inserting `employees,'; and
                          (ii) by inserting `or the applicable 
                        supervising ethics office (as defined 
                        in section 13101 of title 5, United 
                        States Code), in the case of a covered 
                        person' after `judicial officers,'; and
                  (C) in paragraph (3), by striking `or any 
                diversified investment fund approved by 
                regulations issued by the Office of Government 
                Ethics' and inserting `, any diversified 
                investment fund approved by regulations issued 
                by the Office of Government Ethics (in the case 
                of any eligible person who is not a covered 
                person (as defined in section 13161 of title 5, 
                United States Code)), or any diversified mutual 
                fund or a diversified exchange-traded fund 
                described in clause (i) or (ii) of section 
                13161(2)(B) of title 5, United States Code (in 
                the case of any eligible person who is a 
                covered person (as so defined)).'.
          (2) Effective date.--The amendments made by this 
        subsection shall apply to sales after the date of 
        enactment of the Ending Trading and Holdings In 
        Congressional Stocks (ETHICS) Act.
    (c) Acquisitions During Service.--
          (1) In general.--Subject to paragraph (2), and any 
        applicable rules issued pursuant to subsection (h)(3), 
        effective beginning on the date of enactment of the 
        Ending Trading and Holdings In Congressional Stocks 
        (ETHICS) Act, no covered person, or spouse or dependent 
        child of a covered person, may acquire any covered 
        investment.
          (2) Inheritances.--
                  (A) In general.--Subject to subparagraph (B), 
                a covered person, or a spouse or dependent 
                child of a covered person, who inherits a 
                covered investment shall come into compliance 
                as required under subsection (a) by not later 
                than 120 days after the date on which the 
                covered investment is inherited.
                  (B) Extensions.--If a covered person, or a 
                spouse or dependent child of a covered person, 
                is unable to meet the requirements of 
                subparagraph (A), the applicable covered person 
                may request, and the supervising ethics office 
                may grant, 1 or more reasonable extensions, 
                subject to the conditions that--
                          (i) the total period of time covered 
                        by all extensions granted for the 
                        covered investment shall not exceed 150 
                        days; and
                          (ii) the period covered by a single 
                        extension shall be not longer than 45 
                        days.
    (d) Family Trusts.--
          (1) In general.--A supervising ethics office may 
        grant an exemption for a family trust only if--
                  (A) no covered person, or spouse or dependent 
                child of a covered person--
                          (i) is a grantor of the family trust;
                          (ii) contributed any asset to the 
                        family trust; or
                          (iii) has any authority over a 
                        trustee of the family trust, including 
                        the authority to appoint, replace, or 
                        direct the actions of such a trustee; 
                        and
                  (B) the grantor of the family trust is or was 
                a family member of the covered person, or the 
                spouse or dependent child of the covered 
                person.
          (2) Requests.--A covered person seeking an exemption 
        under paragraph (1) shall submit to the applicable 
        supervising ethics office a request for the exemption, 
        in writing, certifying that the conditions described in 
        that paragraph are met.
          (3) Publication.--A supervising ethics office shall 
        publish on the public website of the supervising ethics 
        office--
                  (A) a copy of each request submitted under 
                paragraph (2); and
                  (B) the written response of the supervising 
                ethics office to each request described in 
                subparagraph (A).
    (e) Separation From Service and Cooling-Off Period Required 
for Control.--During the period beginning on the date on which 
an individual becomes a Member of Congress, President, or Vice 
President and ending on the date that is 90 days after the date 
on which the individual ceases to serve as a Member of 
Congress, President, or Vice President, the covered person, and 
any spouse or dependent child of the covered person, may not, 
except as provided in this section, otherwise control a covered 
investment, including purchasing new covered investments.
    (f) Reporting Requirements.--
          (1) Supervising ethics offices.--Each supervising 
        ethics office shall make available on the public 
        website of the supervising ethics office--
                  (A) a copy of--
                          (i) each notification submitted to 
                        the supervising ethics office in 
                        accordance with subsection 
                        (a)(1)(C)(ii)(II);
                          (ii) each notice and other 
                        documentation submitted to the 
                        supervising ethics office under this 
                        section; and
                          (iii) each written response and other 
                        documentation issued or received by the 
                        supervising ethics office under 
                        subsection (d);
                  (B) not later than 30 days after a qualified 
                blind trust maintained by a covered person is 
                dissolved, a written notice of the dissolution 
                of the qualified blind trust; and
                  (C) a description of each extension granted, 
                and each civil penalty imposed, pursuant to 
                this section.
          (2) Federal benefits.--
                  (A) Covered payment.--In this paragraph, the 
                term `covered payment'--
                          (i) means a payment of money or any 
                        other item of value made, or promised 
                        to be made, by the Federal Government;
                          (ii) includes--
                                  (I) a loan agreement, 
                                contract, or grant made, or 
                                promised to be made, by the 
                                Federal Government, including 
                                such an agreement, contract, or 
                                grant relating to agricultural 
                                activity; and
                                  (II) such other types of 
                                payment of money or items of 
                                value as the supervising ethics 
                                office may establish, by 
                                guidance; and
                          (iii) does not include--
                                  (I) any salary or 
                                compensation for service 
                                performed as, or reimbursement 
                                of personal outlay by, an 
                                officer or employee of the 
                                Federal Government; or
                                  (II) any tax refund 
                                (including a refundable tax 
                                credit).
                  (B) Reporting requirement.--Not later than 30 
                days after the date of receipt of a notice of 
                any application for, or receipt of, a covered 
                payment by a covered person, or a spouse or 
                dependent child of a covered person, (including 
                any business owned and controlled by the 
                covered person, spouse, or dependent child), 
                but in no case later than 45 days after the 
                date on which the covered payment is made or 
                promised to be made, the covered person shall 
                submit to the applicable supervising ethics 
                office a report describing the covered payment.
    (g) Enforcement.--
          (1) In general.--The applicable supervising ethics 
        office shall provide a written notice (including notice 
        of the potential for civil penalties under paragraph 
        (2)) to any covered person if the covered person, or 
        the spouse or dependent child of the covered person, as 
        applicable--
                  (A) fails to divest a covered investment 
                owned by, in the custody of, or held in a 
                qualified blind trust of, the covered person or 
                spouse or dependent child of a covered person, 
                in accordance with subsection (a)(1), subject 
                to any extension under subsection 
                (a)(1)(C)(iii); or
                  (B) acquires an interest in a covered 
                investment in violation of this section.
          (2) Civil penalties.--
                  (A) In general.--In the event of continuing 
                noncompliance after issuance of the notice 
                described in paragraph (1), the supervising 
                ethics office shall impose a civil penalty, in 
                the amount described in subparagraph (B), on a 
                covered person to whom a notice is provided 
                under subparagraph (A) or (B) of paragraph 
                (1)--
                          (i) on the date that is 30 days after 
                        the date of provision of the notice; 
                        and
                          (ii) during the period in which such 
                        noncompliance continues, not less 
                        frequently than once every 30 days 
                        thereafter.
                  (B) Amount.--The amount of each civil penalty 
                imposed on a covered person pursuant to 
                subparagraph (A) shall be equal to the greater 
                of--
                          (i) the monthly equivalent of the 
                        annual rate of pay payable to the 
                        covered person; and
                          (ii) an amount equal to 10 percent of 
                        the value of each covered investment 
                        that was not divested in violation of 
                        this section during the period covered 
                        by the penalty.
    (h) Duties of Supervising Ethics Offices.--Each supervising 
ethics office shall--
          (1) impose and collect civil penalties in accordance 
        with subsection (g);
          (2) establish such procedures and standard forms as 
        the supervising ethics office determines to be 
        appropriate to implement this section;
          (3) issue such rules and guidelines as the 
        supervising ethics office determines to be appropriate 
        for the implementation and application of this title; 
        and
          (4) publish on a website all documents and 
        communications described in this subsection.
    (i) Rule of Construction.--Nothing in this section shall be 
construed to prevent a covered person, or a spouse or dependent 
child of a covered person, from owning or trading--
          (1) a diversified mutual fund; or
          (2) a publicly traded, diversified exchange traded 
        fund.
    (j) Effective Date.--Except as provided in subsection 
(c)(1), this section shall apply on and after March 31, 2027.

           *       *       *       *       *       *       *


TITLE 15--COMMERCE AND TRADE

           *       *       *       *       *       *       *


CHAPTER 2B--SECURITIES EXCHANGES

           *       *       *       *       *       *       *



SEC. 78U--1. CIVIL PENALTIES FOR INSIDER TRADING.

    (a) * * *
    (b) * * *
    (c) * * *
    (d) * * *
    (e) * * *
    (f) * * *
    (g) Duty of Members and Employees of Congress
          (1) * * *
          (2) Definitions
          In this subsection--
                  (A) the term ``Member of Congress'' means a 
                member of the Senate or House of 
                Representatives, a Delegate to the House of 
                Representatives, and the Resident Commissioner 
                from Puerto Rico; and
                  (B) the term ``employee of Congress'' means--
                          (i) any individual (other than a 
                        Member of Congress), whose compensation 
                        is disbursed by the Secretary of the 
                        Senate or the Chief Administrative 
                        Officer of the House of 
                        Representatives; and
                          (ii) any other officer or employee of 
                        the legislative branch (as defined in 
                        [section 13101(11)] section 13101 of 
                        title 5).
    (h) Duty of Other Federal Officials
          (1) * * *
          (2) Definitions
          In this subsection--
                  (A) * * *
                  (B) the term ``judicial employee'' has the 
                meaning given that term in [section 13101(9)] 
                section 13101 of title 5; and
                  (C) the term ``judicial officer'' has the 
                meaning given that term undersection 
                [13101(10)] section 13101 of title 5.

           *       *       *       *       *       *       *


STOP TRADING ON CONGRESSIONAL KNOWLEDGE ACT OF 2012 (STOCK ACT)

           *       *       *       *       *       *       *


SEC. 1. * * *

SEC. 2. * * *

SEC. 3. * * *

SEC. 4. * * *

SEC. 5. * * *

SEC. 6. * * *

SEC. 7. * * *

SEC. 8. PUBLIC FILING AND DISCLOSURE OF FINANCIAL DISCLOSURE FORMS OF 
                    MEMBERS OF CONGRESS AND CONGRESSIONAL STAFF.

    (a) * * *
    (b) Electronic Filing and Online Public Availability of 
Financial Disclosure Forms of Members of Congress, Officers of 
the House and Senate, and Congressional Staff.--
          (1) In General.--Subject to paragraph (6) and not 
        later than 18 months after the date of enactment of 
        this Act, the Secretary of the Senate and the Sergeant 
        at Arms of the Senate and the Clerk of the House of 
        Representatives shall develop systems to enable, 
        pursuant to subchapter I of chapter 131 of title 5, 
        United States Code, through databases maintained on the 
        official websites of the House of Representatives and 
        the Senate--
                  (A) electronic filing of reports received by 
                them pursuant to section 103(h)(1)(A) of title 
                I of the Ethics in Government Act of 1978; and
                  [(B) public access to financial disclosure 
                reports filed by Members of Congress, 
                candidates for Congress, and employees of 
                Congress, as well as reports of a transaction 
                disclosure required by section 103(l) of the 
                Ethics in Government Act of 1978, as added by 
                this Act, notices of extensions, amendments, 
                and blind trusts, pursuant to title I of the 
                Ethics in Government Act of 1978, through 
                databases that--
                          [(i) are maintained on the official 
                        websites of the House of 
                        Representatives and the Senate; and
                          [(ii) allow the public to search, 
                        sort, and download data contained in 
                        the reports.]
                  (B) public access--
                          (i) to each--
                                  (I) financial disclosure 
                                report filed by a Member of 
                                Congress or a candidate for 
                                Congress;
                                  (II) transaction disclosure 
                                report filed by a Member of 
                                Congress or a candidate for 
                                Congress pursuant to subsection 
                                (l) of that section; and 
                                  (III) notice of extension, 
                                amendment, or blind trust, with 
                                respect to a report described 
                                in subclause (I) or (II), 
                                pursuant to subchapter I of 
                                chapter 131 of title 5, United 
                                States Code; and
                          (ii) in a manner that--
                                  (I) allows the public to 
                                search, sort, and download data 
                                contained in the reports 
                                described in subclause (I) or 
                                (II) of clause (i) by criteria 
                                required to be reported, 
                                including by filer name, asset, 
                                transaction type, ticker 
                                symbol, notification date, 
                                amount of transaction, and date 
                                of transaction;
                                  (II) allows access through an 
                                application programming 
                                interface; and
                                  (III) is fully compliant 
                                with--
                                          (aa) section 508 of 
                                        the Rehabilitation Act 
                                        of 1973 (29 U.S.C. 
                                        794d); and
                                          (bb) the most recent 
                                        Web Content 
                                        Accessibility 
                                        Guidelines (or 
                                        successor guidelines

SEC. 9. * * *

SEC. 10. * * *

SEC. 11. * * *

SEC. 12. * * *

SEC. 13. * * *

SEC. 14. * * *

SEC. 15. * * *

SEC. 16. * * *

SEC. 17. * * *

SEC. 18. * * *

SEC. 19. * * *

SEC. 20. FINES FOR FAILURE TO REPORT.

    (a) In General.--Notwithstanding any other provision of law 
(including regulations), a reporting individual shall be 
assessed a fine, pursuant to regulations issued by the 
applicable supervising ethics office (including the 
Administrative Office of the United States Courts, as 
applicable), of $500 in each case in which the reporting 
individual fails to file a transaction report required under 
this Act or an amendment made by this Act.
    (b) Deposit in Treasury.--The fines paid under this section 
shall be deposited in the miscellaneous receipts of the 
Treasury.

                                  [all]