This bill would bar many high-level public officials and certain family members from owning or trading most stocks, commodities, futures, or similar investments while they serve. It defines who is covered (for example: Members of Congress, the President, the Vice President, judges and certain executive officers, special Government employees, senior executives, and spouses and dependent children). "Covered investments" include securities, commodities, futures, and synthetic economic interests, but the bill lists specific exceptions such as diversified publicly traded funds, U.S. Treasury securities, State and municipal bonds, some small-business interests, and certain Alaska Native settlement shares.
The bill requires covered individuals to divest prohibited investments at fair market value. People who are covered on the date the law takes effect must divest within 180 days; those who become covered later must divest within 90 days. Investments received without purchase (for example by inheritance, marriage, or divorce settlement) must be divested within 90 days. Qualified blind trusts must also be divested according to the same rules. Supervising ethics offices must issue certificates of divestiture for tax purposes and provide interpretive guidance on unclear terms.
Violations can lead to a fine equal to 10 percent of the investment's value and to disgorgement of any unlawful profits. Disgorged amounts are payable to the Treasury. Members of the House and Senate are not allowed to pay these penalties from certain official allowances, campaign contributions, or other listed funding sources. Supervising ethics offices must publish each assessed fine, the reason for it, and the outcome. The bill would not apply to employees paid under the General Schedule.
If you are a covered individual listed in the bill, you could not buy or keep most stocks, commodities, futures, or similar investment products while covered. You would need to sell (divest) those investments within the time limits in the bill or place them in a qualified arrangement only to be divested as described. If you receive a covered investment without buying it, you would have 90 days to divest. Your supervising ethics office would help by issuing certificates of divestiture and guidance.
If you are not a covered individual, this bill does not directly change your investment rules. The bill names specific exceptions to the ban, such as U.S. Treasury securities and diversified, publicly traded funds.
No publicly available information on overall cost or savings from this bill. The bill does state that disgorged amounts from violations would be payable into the Treasury and that supervising ethics offices must publish certain penalty information.
No publicly available information.
No publicly available information.