Sec. 204. Banning conflicted interests in Congress

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Chapter 131 of title 5, United States Code, as amended by section 103 of this Act, is amended by adding at the end the following: In this subchapter: The term commodity has the meaning given the term in section 1a of the Commodity Exchange Act ( 7 U.S.C. 1a ). The term covered financial interest means— any investment in— a security (as defined in section 3(a) of Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a) )); a security future (as defined in that section); or a commodity (as defined in section 1a of the Commodity Exchange Act ( 7 U.S.C. 1a )); or 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. The term covered financial interest does not include— a diversified mutual fund; a diversified exchange-traded fund; a United States Treasury bill, note, or bond; compensation from the primary occupation of a covered individual; or any financial interest exempted under paragraph

(1)or

(2)of section 208(b) of title 18. The term covered individual means— a Member of Congress (as defined in section 13101); or a spouse or dependent child of a Member of Congress. The term dependent child has the meaning given the term in section 13101. The term future means a financial contract obligating a buyer to purchase, or a seller to sell, an asset, such as a physical commodity or a financial instrument, at a predetermined future date and price. 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) ). The term supervising ethics office , with respect to a covered individual, has the meaning given the term in section 13101 with respect to that covered individual. Except as provided in sections 13163 and 13164, and during the 180-day period beginning on the date on which the service of such covered individual is terminated, no covered individual may— hold, purchase, sell, or conduct any type of transaction with respect to a covered financial interest; or enter into a transaction that creates a net short position in any security. A covered individual may not serve as an officer or member of any board of any for-profit association, corporation, or other entity. With respect to any covered financial interest held by a covered individual, the covered individual shall sell the covered financial interest during the 180-day period beginning on the later of— the date on which the covered individual assumes office or employment as a covered individual; and the date of enactment of this Act. Each supervising ethics office may issue guidance relating to any matter covered by this subchapter, including— whether a covered individual may hold an employee stock option or other, similar instrument that has not vested before the date on which the covered individual assumes office or employment as a covered individual; and the process and timeline for determining the date on which a covered individual shall no longer serve as an officer or member of any board of any for-profit association, corporation, or other entity. A covered individual who knowingly fails to comply with this subchapter— shall disgorge to the Treasury of the United States any profit from a transaction or holding involving a covered financial interest that is conducted in violation of this subchapter; and shall be assessed a fine by the supervising ethics office of not less than 10 percent of the value of the covered financial interest that was purchased or sold, or the security in which a net short position was created, in violation of this subchapter, as applicable. . The table of sections for chapter 131 of title 5, United States Code, as amended by section 103 of this Act, is amended by adding at the end the following: SUBCHAPTER V—Banning conflicted trades in Congress 13161. Definitions. 13162. Prohibitions. 13163. Divestiture. 13164. Administration and enforcement. . Section 13122(f)(2)(B) of title 5, United States Code, is amended— by striking Subject to clause

(iv)of this subparagraph, before each place it appears and inserting Before ; and by striking clause (iv). Section 3(4)(D) of the Lobbying Disclosure Act of 1995 ( 2 U.S.C. 1602(4)(D) ) is amended by striking legislative branch employee serving in a position described under section 13101(13) of title 5, United States Code and inserting officer or employee of Congress (as defined in section 13101 of title 5, United States Code) . Section 2 of the STOCK Act ( 5 U.S.C. 13101 note) is amended— in paragraph (2)(B), by striking

(11); in paragraph (4), by striking

(10); in paragraph (5), by striking

(9); and in paragraph (6), by striking

(18). Section 21A of the Securities Exchange Act of 1934 ( 15 U.S.C. 78u–1 ) is amended— in subsection (g)(2)(B)(ii), by striking

(11); and in subsection (h)(2)— in subparagraph (B), by striking

(9); and in subparagraph (C), by striking

(10).

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