Ownership of covered investments

(a) Definitions In this section: (1) Commodity; security future The terms commodity and security future have the meanings given those 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 digital asset; or (IV) a security future; and (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. (B) Inclusions The term covered investment includes an investment or economic interest described in subparagraph (A) that is held directly, or in which an individual has an indirect, beneficial, or economic interest, through— (i) an investment fund; (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. (C) 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 a family member of a Member of Congress; or (v) any investment fund held in a Federal, State, or local government employee retirement plan. (D) Clarification An investment that achieves compliance with applicable environmental, social, and governance criteria shall not be considered to be a covered investment solely by reason of that compliance. (3) Covered official The term covered official means the following: (A) In the legislative branch, a Member of Congress and each of the following (other than an employee who is considered an intern or a fellow for purposes of any law or regulation establishing a limit on the number of employees of an office of the Senate or the House of Representatives): (i) An employee of a Senator (as described in section 207(e)(9)(F) of title 18, United States Code). (ii) An employee of a Member of the House of Representatives (as described in section 207(e)(9)(E) of title 18, United States Code). (iii) An employee of a committee of Congress (as defined in section 207(e)(9)(A) of title 18, United States Code). (iv) An employee on the leadership staff of the Senate (as defined in section 207(e)(9)(I) of title 18, United States Code). (v) An employee on the leadership staff of the House of Representatives (as defined in section 207(e)(9)(H) of title 18, United States Code). (B) In the executive branch— (i) the President; (ii) the Vice President; (iii) a political appointee; or (iv) any officer or employee of the executive branch who— (I) is not a political appointee; and (II) occupies a position described in paragraphs (3) through (8) of section 13103(f) of title 5, United States Code. (C) A judicial officer. (4) 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. (5) Executive branch; Member of Congress The terms executive branch and Member of Congress have the meanings given those term in section 13101 of title 5, United States Code. (6) Family member The term family member means a spouse or a dependent child (as defined in section 13101 of title 5, United States Code). (7) Judicial officer The term judicial officer — (A) has the meaning given the term in section 13101 of title 5, United States Code; and (B) includes— (i) a bankruptcy judge; and (ii) a magistrate judge. (8) Political appointee The term political appointee means any individual occupying a position in the executive branch— (A) who was appointed to such position by the President, by and with the advice and consent of the Senate; (B) described in sections 5312 through 5316 of title 5, United States Code (relating to the Executive Schedule); (C) as a noncareer appointee in the Senior Executive Service, as defined in section 3132(a) of title 5, United States Code; or (D) that is of a confidential or policy-determining character under schedule C of subpart C of part 213 of title 5, Code of Federal Regulations, or any other position that is excepted from the competitive service because of the confidential policy-determining, policy-making or policy-advocating character of the position. (9) 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)). (10) Supervising ethics office The term supervising ethics office means any of the following: (A) In the case of an individual described in paragraph (3)(A)— (i) the Select Committee on Ethics of the Senate; or (ii) the Committee on Ethics of the House of Representatives. (B) In the case of an individual described in paragraph (3)(B), the Office of Government Ethics. (C) In the case of a judicial officer, the Judicial Conference of the United States. (b) Ownership of covered investments (1) Conduct during Federal service Except as described in paragraph (2), no covered official or family member of a Member of Congress may own or trade any covered investment. (2) Compliance (A) In general Except as provided in subparagraph (B), to comply with the requirements under paragraph (1), a covered official or family member of a Member of Congress shall divest of any covered investment prior to the expiration of the applicable compliance period. (B) Applicable compliance period In this paragraph, the term applicable compliance period means— (i) with respect to a covered investment held by a covered official or family member of a Member of Congress on the date of enactment of this Act, the 90-day period that begins on the date of enactment of this Act; (ii) with respect to a covered investment held by an individual on the date on which the individual becomes a covered official or becomes a family member of a Member of Congress after the date of enactment of this Act, the 90-day period that begins on the date on which the individual becomes a covered official or becomes a family member of a Member of Congress; and (iii) with respect to a covered investment that is first held by a covered official or a family member of a Member of Congress after the last day of either of the periods described in clauses (i) or (ii), the 90-day period that begins on the date on which the covered investment was first held by the covered official or family member. (c) Penalties (1) In general Except as provided in paragraph (2), a covered official in violation of this section, as determined by the supervising ethics office, shall pay a penalty in an amount equal to the fee set forth under section 13106(d)(1) of title 5, United States Code, for each such violation. (2) Exception (A) Penalty An individual described in subparagraph (C) who during any month is in violation of this section with respect to a covered investment, as determined by the supervising ethics office, shall pay a penalty in an amount equal to— (i) in the case of an individual who is a covered official, the salary of such official for that month; or (ii) in the case of an individual who is a family member of a Member of Congress, the salary of the Member of Congress for that month. (B) Amount determined without regard to number of violations The amount of the penalty imposed under subparagraph (A) shall apply to an individual without regard to the number of covered investments with respect to which the individual is in violation during the month in which the penalty is imposed. (C) Individuals described The individuals described in this paragraph are the following: (i) A Member of Congress or a family member of a Member of Congress. (ii) The President. (iii) The Vice President. (iv) A political appointee who was appointed to such position by the President, by and with the advice and consent of the Senate. (v) A judicial officer. (d) Publication For each individual in violation of this section, as determined by the supervising ethics office, the supervising ethics office shall make available a list, on a publicly accessible website of the supervising ethics office, detailing the names, occupation, and office of employment for each such individual or, in the case of a family member of a Member of Congress, the name of such family member and of such Member of Congress. (e) Tax treatment of divestitures (1) In general Section 1043(b)(1) of the Internal Revenue Code of 1986 is amended— (A) by striking and at the end of subparagraph (A); (B) by striking the period at the end of subparagraph (B) and inserting, and; and (C) by adding at the end the following new subparagraph: (C) any— (i) covered official described in subparagraph (B) or (C) of section 2(a)(3) of the Restoring Trust in Public Servants Act who is not described in subparagraph (A), (ii) any covered official described in subparagraph (A) of section 2(a)(3) of such Act, and (iii) any family member of a Member of Congress (as such terms are defined in section 2(a) of such Act).. (2) Certificate of divestiture Section 1043(b)(2) of the Internal Revenue Code of 1986 is amended— (A) in subparagraph (A), by inserting, and the Restoring Trust in Public Servants Act after including section 208 of title 18, United States Code; and (B) by striking subparagraph (B) and inserting the following: (B) that has been issued by— (i) in the case of an eligible person described in subparagraph (A) or (B) of paragraph (1), the President or the Director of the Office of Government Ethics, in the case of executive branch officers or employees, or by the Judicial Conference of the United States (or its designee), in the case of judicial officers, and (ii) in the case of any eligible person described in paragraph (1)(C), the supervising ethics office (as defined in section 2(a) of the Restoring Trust in Public Servants Act), and. (3) Effective date The amendments made by this subsection shall apply to sales after the date of the enactment of this Act.