No Profiting from Public Service Act

[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>