,,ii #aaith ,,congress #ast ,session ,s4 #bheb ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #ag 7legislative day1 ,september #af71 #bjbe ,mr4 ,kim introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to prohibit ,federal officials from owning covered investments1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,restoring ,trust in ,public ,servants ,act4 #b4 ,ownership of covered investments 7a7 ,definitions ,in this section3 7#a7 ,commodity2 security future ,the terms commodity and security future have the meanings given those term in section #a;a of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a74 7#b7 ,covered investment 7,a7 ,in general ,the term covered investment means-- 7i7 an investment in-- 7,i7 a security2 7,,ii7 a commodity2 7,,iii7 a digital asset2 or 7,,iv7 a security future2 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 other1 similar means4 7,b7 ,inclusions ,the term covered investment includes an investment or economic interest described in subparagraph 7,a7 that is held directly1 or in which an individual has an indirect1 beneficial1 or economic interest1 through-- 7i7 an investment fund2 7ii7 a trust2 7iii7 an employee benefit plan2 or 7iv7 a deferred compensation plan1 including a carried interest or other agreement tied to the performance of an investment1 other than a fixed cash payment4 7,c7 ,exclusions ,the term covered investment does not include-- 7i7 a diversified mutual fund 7including any holdings of such a fund72 7ii7 a diversified exchange-traded fund 7including any holdings of such a fund72 7iii7 a ,united ,states ,treasury bill1 note1 or bond2 7iv7 compensation from the primary occupation of a family member of a ,member of ,congress2 or 7v7 any investment fund held in a ,federal1 ,state1 or local government employee retirement plan4 7,d7 ,clarification ,an investment that achieves compliance with applicable environmental1 social1 and governance criteria shall not be considered to be a covered investment solely by reason of that compliance4 7#c7 ,covered official ,the term covered official means the following3 7,a7 ,in the legislative branch1 a ,member of ,congress and each of the following 7other 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 ,representatives73 7i7 ,an employee of a ,senator 7as described in section #bjg7;e77#i77;,f7 of title #ah1 ,united ,states ,code74 7ii7 ,an employee of a ,member of the ,house of ,representatives 7as described in section #bjg7;e77#i77;,e7 of title #ah1 ,united ,states ,code74 7iii7 ,an employee of a committee of ,congress 7as defined in section #bjg7;e77#i77;,a7 of title #ah1 ,united ,states ,code74 7iv7 ,an employee on the leadership staff of the ,senate 7as defined in section #bjg7;e77#i77;,i7 of title #ah1 ,united ,states ,code74 7v7 ,an employee on the leadership staff of the ,house of ,representatives 7as defined in section #bjg7;e77#i77;,h7 of title #ah1 ,united ,states ,code74 7,b7 ,in the executive branch-- 7i7 the ,president2 7ii7 the ,vice ,president2 7iii7 a political appointee2 or 7iv7 any officer or employee of the executive branch who-- 7,i7 is not a political appointee2 and 7,,ii7 occupies a position described in paragraphs 7#c7 through 7#h7 of section #acajc7;f7 of title #e1 ,united ,states ,code4 7,c7 ,a judicial officer4 7#d7 ,digital asset ,the term digital asset means any digital representation of value that is recorded on a cryptographically secured distributed ledger or any similar technology4 7#e7 ,executive branch2 ,member of ,congress ,the terms executive branch and ,member of ,congress have the meanings given those term in section #acaja of title #e1 ,united ,states ,code4 7#f7 ,family member ,the term family member means a spouse or a dependent child 7as defined in section #acaja of title #e1 ,united ,states ,code74 7#g7 ,judicial officer ,the term judicial officer-- 7,a7 has the meaning given the term in section #acaja of title #e1 ,united ,states ,code2 and 7,b7 includes-- 7i7 a bankruptcy judge2 and 7ii7 a magistrate judge4 7#h7 ,political appointee ,the term political appointee means any individual occupying a position in the executive branch-- 7,a7 who was appointed to such position by the ,president1 by and with the advice and consent of the ,senate2 7,b7 described in sections #ecab through #ecaf of title #e1 ,united ,states ,code 7relating to the ,executive ,schedule72 7,c7 as a noncareer appointee in the ,senior ,executive ,service1 as defined in section #cacb7;a7 of title #e1 ,united ,states ,code2 or 7,d7 that is of a confidential or policy-determining character under schedule ,c of subpart ,c of part #bac of title #e1 ,code of ,federal ,regulations1 or any other position that is excepted from the competitive service because of the confidential policy-determining1 policy-making or policy-advocating character of the position4 7#i7 ,security ,the term security has the meaning given the term in section #c7;a7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c7a774 7#aj7 ,supervising ethics office ,the term supervising ethics office means any of the following3 7,a7 ,in the case of an individual described in paragraph 7#c77;,a7-- 7i7 the ,select ,committee on ,ethics of the ,senate2 or 7ii7 the ,committee on ,ethics of the ,house of ,representatives4 7,b7 ,in the case of an individual described in paragraph 7#c77;,b71 the ,office of ,government ,ethics4 7,c7 ,in the case of a judicial officer1 the ,judicial ,conference of the ,united ,states4 7b7 ,ownership of covered investments 7#a7 ,conduct during ,federal service ,except as described in paragraph 7#b71 no covered official or family member of a ,member of ,congress may own or trade any covered investment4 7#b7 ,compliance 7,a7 ,in general ,except as provided in subparagraph 7,b71 to comply with the requirements under paragraph 7#a71 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 period4 7,b7 ,applicable compliance period ,in this paragraph1 the term applicable compliance period means-- 7i7 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 ,act1 the #ij-;day period that begins on the date of enactment of this ,act2 7ii7 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 ,act1 the #ij-;day period that begins on the date on which the individual becomes a covered official or becomes a family member of a ,member of ,congress2 and 7iii7 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 7i7 or 7ii71 the #ij-;day period that begins on the date on which the covered investment was first held by the covered official or family member4 7c7 ,penalties 7#a7 ,in general ,except as provided in paragraph 7#b71 a covered official in violation of this section1 as determined by the supervising ethics office1 shall pay a penalty in an amount equal to the fee set forth under section #acajf7;d77#a7 of title #e1 ,united ,states ,code1 for each such violation4 7#b7 ,exception 7,a7 ,penalty ,an individual described in subparagraph 7,c7 who during any month is in violation of this section with respect to a covered investment1 as determined by the supervising ethics office1 shall pay a penalty in an amount equal to-- 7i7 in the case of an individual who is a covered official1 the salary of such official for that month2 or 7ii7 in the case of an individual who is a family member of a ,member of ,congress1 the salary of the ,member of ,congress for that month4 7,b7 ,amount determined without regard to number of violations ,the amount of the penalty imposed under subparagraph 7,a7 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 imposed4 7,c7 ,individuals described ,the individuals described in this paragraph are the following3 7i7 ,a ,member of ,congress or a family member of a ,member of ,congress4 7ii7 ,the ,president4 7iii7 ,the ,vice ,president4 7iv7 ,a political appointee who was appointed to such position by the ,president1 by and with the advice and consent of the ,senate4 7v7 ,a judicial officer4 7d7 ,publication ,for each individual in violation of this section1 as determined by the supervising ethics office1 the supervising ethics office shall make available a list1 on a publicly accessible website of the supervising ethics office1 detailing the names1 occupation1 and office of employment for each such individual or1 in the case of a family member of a ,member of ,congress1 the name of such family member and of such ,member of ,congress4 7e7 ,tax treatment of divestitures 7#a7 ,in general ,section #ajdc7;b77#a7 of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 by striking and at the end of subparagraph 7,a72 7,b7 by striking the period at the end of subparagraph 7,b7 and inserting 1 and2 and 7,c7 by adding at the end the following new subparagraph3 7,c7 any-- 7i7 covered official described in subparagraph 7,b7 or 7,c7 of section #b7;a77#c7 of the ,restoring ,trust in ,public ,servants ,act who is not described in subparagraph 7,a71 7ii7 any covered official described in subparagraph 7,a7 of section #b7;a77#c7 of such ,act1 and 7iii7 any family member of a ,member of ,congress 7as such terms are defined in section #b7;a7 of such ,act74 4 7#b7 ,certificate of divestiture ,section #ajdc7;b77#b7 of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 in subparagraph 7,a71 by inserting 1 and the ,restoring ,trust in ,public ,servants ,act after including section #bjh of title #ah1 ,united ,states ,code2 and 7,b7 by striking subparagraph 7,b7 and inserting the following3 7,b7 that has been issued by-- 7i7 in the case of an eligible person described in subparagraph 7,a7 or 7,b7 of paragraph 7#a71 the ,president or the ,director of the ,office of ,government ,ethics1 in the case of executive branch officers or employees1 or by the ,judicial ,conference of the ,united ,states 7or its designee71 in the case of judicial officers1 and 7ii7 in the case of any eligible person described in paragraph 7#a77;,c71 the supervising ethics office 7as defined in section #b7;a7 of the ,restoring ,trust in ,public ,servants ,act71 and 4 7#c7 ,effective date ,the amendments made by this subsection shall apply to sales after the date of the enactment of this ,act4 #c4 ,ban on all outside earned income and all service on boards by ,members of ,congress 7a7 ,outside earned income 7#a7 ,in general ,section #acadc7;a77#a7 of title #e1 ,united ,states ,code1 is amended by striking outside earned income attributable to such calendar year which exceeds #ae percent and inserting any outside earned income attributable to such calendar year1 except that such an officer or employee may have outside earned income attributable to such calendar year which does not exceed #ae percent4 7#b7 ,individuals becoming ,members during calendar year ,section #acadc7;a77#b7 of title #e1 ,united ,states ,code1 is amended-- 7,a7 by striking outside earned income attributable to the portion of that calendar year which occurs after such individual becomes a ,member or such an officer or employee which exceeds #ae percent and inserting any outside earned income attributable to the portion of that calendar year which occurs after such individual becomes a ,member or such an officer or employee1 except that such an officer or employee may have outside earned income attributable to such portion of that calendar year which does not exceed #ae percent2 and 7,b7 by striking such individual is a ,member or such officer or employee and inserting such individual is such an officer or employee4 7#c7 ,preserving authority of officers and employees of ,congress to earn compensation from practicing medicine ,section #acadd7;a7 of title #e1 ,united ,states ,code1 is amended-- 7,a7 in paragraph 7#a71 by striking fiduciary relationship and inserting fiduciary relationship1 except that such an officer or employee of the ,house of ,representatives or ,senate may receive such compensation if the fiduciary relationship involves the practice of medicine2 and 7,b7 in paragraph 7#c71 by striking fiduciary relationship and inserting fiduciary relationship1 except that such an officer or employee of the ,house of ,representatives or ,senate may receive such compensation if the fiduciary relationship involves the practice of medicine4 7#d7 ,application of ban to income earned from teaching ,section #acadd7;a77#e7 of title #e1 ,united ,states ,code1 is amended by striking without the prior notification and inserting except that such an officer or employee may receive compensation for teaching with the prior notification4 7#e7 ,definition ,section #acada of title #e1 ,united ,states ,code1 is amended-- 7,a7 by redesignating paragraph 7#e7 as paragraph 7#f72 and 7,b7 by inserting after paragraph 7#d7 the following3 7#e7 ,the term outside earned income1 with respect to a ,member of ,congress1 has the meaning given that term in clause #d7;d7 of rule ,,xxv of the ,rules of the ,house of ,representatives for the ,one ,hundred ,seventeenth ,congress1 except that paragraph 7d77#a77;,d7 of such clause shall not apply4 ,such term shall apply with respect to a ,senator in the same manner as such term applies to a ,member of the ,house of ,representatives under such clause4 4 7b7 ,service on boards ,section #acadd7;a77#d7 of title #e1 ,united ,states ,code1 is amended to read as follows3 7#d7 serve as an officer or member of the board of any association1 corporation1 or other entity1 except that-- 7,a7 a ,member and such an officer or employee may serve without compensation as an officer or member of the board of any nonprofit association1 nonprofit corporation1 or other nonprofit entity2 and 7,b7 such an officer or employee may serve without compensation as an officer or member of any other association1 corporation or other entity2 or 4 #d4 ,lifetime lobbying ban 7a7 ,in general ,section #bjg7;e7 of title #ah1 ,united ,states ,code1 is amended-- 7#a7 by striking paragraph 7#a7 and inserting the following3 7#a7 ,members of ,congress 7,a7 ,in general ,any person who is a ,senator or a ,member of the ,house of ,representatives and who1 after that person leaves office1 knowingly makes any lobbying contact to1 or engages in lobbying activities with1 a covered executive branch official or any ,member1 officer1 or employee of either ,house of ,congress shall be punished as provided in section #baf of this title4 7,b7 ,definitions ,in this paragraph3 7i7 ,the terms lobbying activities and covered executive branch official have the meanings given those terms in section #c of the ,lobbying ,disclosure ,act of #aiie 7#b ,u4,s4,c4 #afjb74 7ii7 ,the term lobbying contact has the meaning given the term in section #c7h7 of the ,lobbying ,disclosure ,act of #aiie 7#b ,u4,s4,c4 #afjb7h77 except that subparagraph 7,b77iv7 of such paragraph shall not apply4 2 and 7#b7 in paragraph 7#b7-- 7,a7 by striking the heading and all that follows through ,any person and inserting the following3 7#b7 ,officers and certain staff 7,a7 ,officers and staff of the ,senate ,any person 2 and 7,b7 by adding at the end the following3 7,b7 ,officers of the ,house of ,representatives 7i7 ,any person who is an elected officer of the ,house of ,representatives and who1 within #a year after that person leaves office1 knowingly makes1 with the intent to influence1 any communication to or appearance before any of the persons described in clause 7ii71 on behalf of any other person 7except the ,united ,states7 in connection with any matter on which such elected officer seeks action by a ,member1 officer1 or employee of either ,house of ,congress1 in his or her official capacity1 shall be punished as provided in section #baf of this title4 7ii7 ,the persons referred to in clause 7i7 with respect to appearances or communications by a former elected officer are any ,member1 officer1 or employee of the ,house of ,representatives4 4 7b7 ,restrictions relating to foreign entities ,section #bjg7;f7 of title #ah1 ,united ,states ,code1 is amended-- 7#a7 in paragraph 7#a71 by striking ,any person and inserting ,except as provided in paragraph 7#b71 any person2 7#b7 by redesignating paragraphs 7#b7 and 7#c7 as paragraphs 7#c7 and 7#d71 respectively2 7#c7 by inserting after paragraph 7#a7 the following3 7#b7 ,member of ,congress ,with respect to the restrictions under paragraph 7#a71 any person who is a ,member of ,congress may not engage in any of the activities under such paragraph at any time after leaving office4 2 and 7#d7 by striking paragraph 7#d71 as so redesignated1 and inserting the following3 7#d7 ,definition ,for purposes of this subsection1 the term foreign entity means-- 7,a7 the government of a foreign country1 as defined in section #a7;e7 of the ,foreign ,agents ,registration ,act of #aich1 as amended 7#bb ,u4,s4,c4 #faa7;e771 or a foreign political party1 as defined in section #a7;f7 of the ,foreign ,agents ,registration ,act of #aich1 as amended 7#bb ,u4,s4,c4 #faa7;f772 and 7,b7 in the case of a ,member of ,congress1 any foreign principal as defined in section #a7;b7 of the ,foreign ,agents ,registration ,act of #aich1 as amended 7#bb ,u4,s4,c4 #faa7;b774 4 7c7 ,effective date ,the amendments made by subsection 7a7 shall apply to individuals who leave office or employment to which such amendments apply on or after the date of commencement of the first session of the ,one ,hundred ,twentieth ,congress sine die or ,january #d1 #bjbg1 whichever date is earlier4