The Public Service Accountability Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9429 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 9429

  To amend chapter 131 of title 5 to prohibit Members of Congress and
  their spouses and dependents from owning or trading stocks, and for
                            other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             June 24, 2026

    Ms. Goodlander (for herself and Mr. Fitzpatrick) introduced the
 following bill; which was referred to the Committee on Oversight and
     Government Reform, and in addition to the Committees on House
  Administration, and the Judiciary, 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 prohibit Members of Congress and
  their spouses and dependents from owning or trading stocks, 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 ``The Public Service Accountability
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 trade and ownership of covered
                              investments

13151. Definitions.
13152. Trade and ownership of covered investments.
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 TRADE AND OWNERSHIP OF COVERED
                              INVESTMENTS

``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) insurance for which the insured
                        holds a lawful insurable interest.
            ``(2) Covered individual.--The term `covered individual'
        means any of the following:
                    ``(A) A Member of Congress and an officer or
                employee of Congress (as defined in section 13101).
                    ``(B) A dependent child as defined in such section
                13101 or a spouse of a Member of Congress.
                    ``(C) A judicial employee and judicial officer (as
                those terms are defined in section 13101).
                    ``(D) An officer or employee described in section
                13103(f)(3).
                    ``(E) A special Government employee (as that term
                is defined in section 202(a) of title 18).
                    ``(F) A senior executive (as that term is defined
                in section 3132(a)).
                    ``(G) Any individual employed in a position
                described under sections 5312 through 5316 of title 5
                (relating to the Executive Schedule).
                    ``(H) Any individual employed in a position of a
                confidential or policy-determining character under
                schedule C of subpart C of part 213 of title 5, Code of
                Federal Regulations, or successor regulation.
                    ``(I) The President.
                    ``(J) The Vice President.
                    ``(K) A dependent child as defined in such section
                13101 or a spouse of the President.
                    ``(L) A dependent child as defined in such section
                13101 or a spouse of the Vice President.
            ``(3) 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) a United States Treasury bill, note,
                        or bond;
                            ``(iii) a State or municipal government
                        bill, note, or bond;
                            ``(iv) any compensation received by the
                        spouse or dependent child of a covered official
                        from their employer;
                            ``(v) an interest in a small business
                        concern;
                            ``(vi) an interest in a limited liability
                        company created for the sole purpose of
                        purchasing or holding real estate that serves
                        as the personal residence of the Member of
                        Congress;
                            ``(vii) 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
                            ``(viii) any share of Settlement Common
                        Stock, as defined in section 3 of the Alaska
                        Native Claims Settlement Act (43 U.S.C. 1602).
            ``(4) 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.
            ``(5) 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.
            ``(6) 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)).
            ``(7) 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).
            ``(8) Supervising ethics office.--The term `supervising
        ethics office' has the meaning given the term in section 13101.
``Sec. 13152. Trade and ownership of covered investments
    ``(a) Conduct During Federal Service.--Except as described in
subsection (b)(1)(B) and subsections (d) and (e), no covered individual
may--
            ``(1) directly or indirectly, own or trade a covered
        investment; or
            ``(2) enter into, or offer to enter into, an agreement,
        contract, swap, or transaction that provides for any purchase,
        sale, payment, or delivery of an excluded commodity that is
        dependent on the occurrence, nonoccurrence, or the extent of
        the occurrence of a specific event or contingency.
    ``(b) Compliance.--
            ``(1) Requirement.--To comply with subsection (a)--
                    ``(A) a covered individual may not purchase a
                covered investment; and
                    ``(B) a covered individual shall divest of any
                covered investment by the effective date established in
                paragraph (2) at fair market value.
            ``(2) Effective date.--The effective date is established as
        follows:
                    ``(A) 180 days for an individual who is a covered
                individual on the date of enactment of The Public
                Service Accountability Act.
                    ``(B) 90 days within the date on which an
                individual becomes a covered individual if such date
                occurs after the date of enactment of The Public
                Service Accountability Act.
    ``(c) Certificates of Divestiture.--
            ``(1) Application of certificate of divestiture program.--
        For purposes of section 1043 of the Internal Revenue Code of
        1986--
                    ``(A) this section shall be treated as a Federal
                conflict of interest statute; and
                    ``(B) any covered individual described in
                subparagraphs (A), (B), (K), or (L) of section 13151(2)
                shall be treated as an eligible person described in
                section 1043(b)(1)(A) of such Code.
            ``(2) Issuance of certificate of divestiture.--
                    ``(A) In general.--Each supervising ethics office
                shall issue a certificate of divestiture to each
                covered individual required to divest under this
                subchapter upon submission of proof of compliance by
                such individual with the requirements to divest or any
                extensions granted by the supervising ethics office.
                    ``(B) Eligibility.--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.
    ``(d) Trusts.--Any covered investment held in a qualified blind
trust as defined in section 13104(f)(3) shall be divested in accordance
with subsection (b)(1)(B) by the effective date established in
subsection (b)(2).
    ``(e) Assets Acquired in Special Circumstances.--In the event that
a covered individual acquires a covered investment after the date of
enactment of the The Public Service Accountability Act other than by
purchase (such as by marriage, inheritance, divorce settlement, or
other circumstance), the covered individual shall have 90 days from the
date on which such investment was acquired to divest such covered
investment at fair market value.
    ``(f) Interpretative Guidance.--The supervising ethics office shall
issue interpretive guidance on any relevant term not defined in this
subchapter.
``Sec. 13153. Penalties
    ``(a) In General.--
            ``(1) Penalties.--Any covered individual who violates the
        restrictions on trading or ownership of covered investments 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; and
                    ``(B) disgorge the profits of any transaction that
                violates the provisions of this subchapter.
            ``(2) Payment of penalty to treasury.--A penalty imposed
        under paragraph (1)(B) shall be payable into the Treasury of
        the United States.
    ``(b) Payment Restrictions.--A Member of the Congress 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.
    ``(c) 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.''.
    (c) Rule of Construction.--This Act and the amendments made by this
Act shall not be construed to apply to any individual occupying a
position under the General Schedule.
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