,i #aahth ,,congress #ast ,session ,h4 ,r4 #caj ,,in ,,the ,,house ,,of ,,representatives ,january #ab1 #bjbc,mr4 ,cloud 7for himself and ,mr4 ,golden of ,maine7 introduced the following bill2 which was referred to the ,committee on ,oversight and ,accountability1 and in addition to the ,committee on ,ways and ,means1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend title #e1 ,united ,states ,code1 to prohibit transactions involving certain financial instruments by senior ,federal employees1 their spouses1 or dependent children1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,dismantling ,investments in ,violation of ,ethical ,standards through ,trusts ,act4 #b4 ,prohibiting transactions and ownership of certain financial instruments by senior ,federal employees1 their spouses1 or dependent children 7a7 ,in general ,chapter #ac of title #e1 ,united ,states ,code1 is amended by adding after subchapter ,,iii the following3 ,,iv ,restrictions ,regarding ,financial ,instruments #acaea4 ,definitions ,in this subchapter3 7#a7 ,covered financial instrument 7,a7 ,in general ,the term covered financial instrument means-- 7i7 any investment in-- 7,i7 a security 7as defined in section #c7;a7 of ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c7a7772 7,,ii7 a security future 7as defined in that section72 or 7,,iii7 a commodity 7as defined in section #a;a of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a772 and 7ii7 any economic interest comparable to an interest described in clause 7i7 that is acquired through synthetic means1 such as the use of a derivative1 including an option1 warrant1 or other similar means4 7,b7 ,exclusions ,the term covered financial instrument does not include-- 7i7 a diversified mutual fund2 7ii7 a diversified exchange-traded fund2 7iii7 a ,united ,states ,treasury bill1 note1 or bond2 or 7iv7 compensation from the primary occupation of a spouse or dependent child of a senior ,federal employee4 7#b7 ,qualified blind trust ,the term qualified blind trust has the meaning given the term in section #acajd4 7#c7 ,senior ,federal employee ,the term senior ,federal employee means any individual occupying a ,senior ,executive ,service position 7as that term is defined in section #cacb74 7#d7 ,supervising ethics office ,the term supervising ethics office has the meaning given the term in section #acaja4 #acaeb4 ,prohibition on certain transactions and holdings involving covered financial instruments 7a7 ,prohibition ,except as provided in subsection 7b71 a senior ,federal employee1 their spouse1 or their dependent children may not1 during the term of service of the employee1 hold1 purchase1 or sell any covered financial instrument4 7b7 ,exceptions ,the prohibition under subsection 7a7 does not apply to-- 7#a7 a sale by a senior ,federal employee1 their spouse1 or their dependent child that is completed by the date that is-- 7,a7 for an employee serving on the date of enactment of this title1 #ahj days after that date of enactment2 and 7,b7 for any employee who commences service as an employee after the date of enactment of this title1 #ahj days after the first date of the initial term of service2 7#b7 a covered financial instrument held in a qualified blind trust operated on behalf of1 or for the benefit of1 a senior ,federal employee1 their spouse1 or their dependent child2 or 7#c7 a covered financial instrument exempted from coverage under section #bjh of title #ah pursuant to section #bfdj4bjb of title #e1 ,code of ,federal ,regulations 7or any successor regulation74 7c7 ,application of certificate of divestiture program ,for purposes of section #ajdc of the ,internal ,revenue ,code of #aihf-- 7#a7 this section shall be treated as a ,federal conflict of interest statute2 and 7#b7 any person required to dispose of any property by reason of this section shall be treated as an eligible person4 7d7 ,penalties 7#a7 ,disgorgement ,a senior ,federal employee1 their spouse1 or their dependent child shall disgorge to the general fund of the ,treasury any profit from a transaction or holding involving a covered financial instrument that is conducted in violation of this section4 7#b7 ,income tax ,a loss from a transaction or holding involving a covered financial instrument that is conducted in violation of this section may not be deducted from the amount of income tax owed by the applicable senior ,federal employee1 their spouse1 or their dependent child4 7#c7 ,fines ,a senior ,federal employee who holds or conducts a transaction involving a covered financial instrument in violation of this section may be subject to a civil fine assessed by the supervising ethics office under section #acaec4 #acaec4 ,certification of compliance 7a7 ,in general ,not less frequently than annually1 each senior ,federal employee shall submit to the supervising ethics office a written certification that the employee1 their spouse1 or their dependent child has achieved compliance with the requirements of this title4 7b7 ,publication ,the supervising ethics office shall publish each certification submitted under subsection 7a7 on a publicly available website4 #acaed4 ,authority of supervising ethics office 7a7 ,in general ,the supervising ethics office may implement and enforce the requirements of this subchapter1 including by-- 7#a7 issuing-- 7,a7 for applicable senior ,federal employees-- 7i7 rules governing that implementation2 and 7ii7 #a or more reasonable extensions to achieve compliance with this subchapter1 if the supervising ethics office determines that an employee is making a good faith effort to divest any covered financial instruments2 and 7,b7 guidance relating to covered financial instruments2 7#b7 publishing on the internet certifications submitted by senior ,federal employees under section #acaec7;a72 and 7#c7 assessing civil fines against any senior ,federal employee who is in violation of this subchapter1 subject to subsection 7b74 7b7 ,requirements for civil fines 7#a7 ,amount ,a fine imposed under this section against a senior ,federal employee shall be equal to the greater of-- 7,a7 #a1jjj1 or 7,b7 an amount equal to #aj percent of the greatest dollar value of the applicable covered financial instrument during any period that such instrument was held by the applicable senior ,federal employee or their spouse or dependent child 7as the case may be74 7#b7 ,in general ,before imposing a fine pursuant to this section1 the supervising ethics office shall provide to the applicable senior ,federal employee-- 7,a7 a written notice describing each covered financial instrument transaction for which a fine will be assessed2 and 7,b7 an opportunity1 with respect to each such covered financial instrument transaction-- 7i7 for a hearing2 and 7ii7 to achieve compliance with the requirements of this subchapter4 7#c7 ,publication ,the supervising ethics office shall publish on a publicly available website a description of-- 7,a7 each fine assessed pursuant to this section2 7,b7 the reasons why each such fine was assessed2 and 7,c7 the result of each assessment1 including any hearing under paragraph 7#b77;,b77i7 relating to the assessment4 7#d7 ,appeal ,a senior ,federal employee may appeal to the supervising ethics office a fine assessed under this section during the #cj-;day period beginning on the date the fine is so assessed4 #acaee4 ,audit by ,government ,accountability ,office ,not later than #b years after the date of enactment of this subchapter1 the ,comptroller ,general of the ,united ,states shall-- 7#a7 conduct an audit of the compliance by senior ,federal employees with the requirements of this subchapter2 and 7#b7 submit to each supervising ethics office a report describing the results of the audit conducted under paragraph 7#a74 4 7b7 ,application ,the amendments made by subsection 7a7 shall apply to individuals described in section #acaeb7;a7 of title #e1 ,united ,states ,code1 7as added by subsection 7a77 beginning on the date that is #ab months following the date of enactment of this ,act4 7c7 ,additional employees ,section #acaba7;c77#a7 of title #e1 ,united ,states ,code1 is amended by inserting up to #ajj after appoint4 7d7 ,funding ,the ,director of the ,office of ,management and ,budget may transfer such funds as the ,director considers appropriate1 to be derived from unobligated amounts available for executive branch programs identified by the ,director to be duplicative1 to the ,office of ,government ,ethics for the purpose of carrying out this ,act1 to remain available until the date that is #e years following the date of the enactment of this ,act4