S.Amdt. 3229

SA 3229. Mr. MERKLEY (for himself, Mr. Peters, Mr. Ossoff, Ms. Rosen,
Mr. Hawley, and Mr. Brown) submitted an amendment intended to be
proposed by him to the bill S. 4638, to authorize appropriations for
fiscal year 2025 for military activities of the Department of Defense,
for military construction, and for defense activities of the Department
of Energy, to prescribe military personnel strengths for such fiscal
year, and for other purposes; which was ordered to lie on the table; as
follows:

At the appropriate place, insert the following:

SEC. __. ENDING TRADING AND HOLDINGS IN CONGRESSIONAL STOCKS
ACT.

(a) Short Title.--This section may be cited as the ``Ending
Trading and Holdings In Congressional Stocks (ETHICS) Act''.
(b) Divestment of Certain Assets of Members of Congress,
the President, the Vice President, and Their Spouses and
Dependent Children.--
(1) In general.--Chapter 131 of title 5, United States
Code, is amended by adding at the end the following:

``Subchapter IV--Certain Assets of Members of Congress, the President,
the Vice President, and Their Spouses and Dependent Children

``Sec. 13161. Definitions

``In this subchapter:
``(1) Commodity.--The term `commodity' has the meaning
given the 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 future; or
``(IV) a digital asset;

``(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; or
``(iii) any interest described in clause (i) or (ii) that
is held directly, or in which an individual has an indirect,
beneficial, or economic interest, through--

``(I) an investment fund or holding company;
``(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.

``(B) 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 the
spouse of a covered person, or any security that is issued or
paid by an operating business that is the primary employer of
such a spouse that is issued or paid to such a spouse;
``(v) holding and acquiring any security that is issued or
paid as compensation from corporate board service by the
spouse of a covered person, including the dividend
reinvestment in the same security received from the corporate
board service by the spouse of a covered person;
``(vi) any covered investment that is traded by the spouse
of a covered person in the course of performing the primary
occupation of such a spouse, provided the investment is not
owned by a covered person or the spouse or dependent child of
a covered person;
``(vii) any investment fund held in a Federal, State, or
local government employee retirement plan;
``(viii) a tax-free State or municipal bond;

[[Page S5824]]

``(ix) an interest in a small business concern, if the
supervising ethics office determines that the small business
concern does not present a conflict of interest, 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;
``(x) holding investment-grade corporate bonds, provided
that the corporate bonds are held by an individual who is a
covered person, or a spouse or dependent child of a covered
person, on the date of enactment of the Ending Trading and
Holdings In Congressional Stocks (ETHICS) Act;
``(xi) 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
``(xii) any share of Settlement Common Stock, as defined in
section 3 of the Alaska Native Claims Settlement Act (43
U.S.C. 1602).
``(C) Rule of construction.--Nothing in this paragraph
shall be construed to imply that particular digital assets
are not securities, commodities, or other types of covered
investments.
``(3) Covered person.--The term `covered person' means--
``(A) a Member of Congress;
``(B) the President of the United States; or
``(C) the Vice President of the United States.
``(4) Custody.--The term `custody' has the meaning given
the term in section 275.206(4)-2(d) of title 17, Code of
Federal Regulations, as in effect on the date of enactment of
the Ending Trading and Holdings In Congressional Stocks
(ETHICS) Act (or any successor regulation).
``(5) Dependent child.--The term `dependent child' means,
with respect to any covered person, any individual who is--
``(A) under 19 years of age; and
``(B) a dependent of the covered person within the meaning
of section 152 of the Internal Revenue Code of 1986.
``(6) 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.
``(7) Diversified.--The term `diversified', with respect to
a fund, trust, or plan, means that the fund, trust, or plan
does not have a stated policy of concentrating its
investments in any single industry, business, or single
country other than the United States.
``(8) Future.--The term `future' means--
``(A) a security future (as defined in section 3(a) of the
Securities Exchange Act of 1934 (15 U.S.C. 78c(a))); and
``(B) any other contract for the sale of a commodity for
future delivery.
``(9) Illiquid investment.--The term `illiquid investment'
means an interest in a private fund, as defined in section
202(a) of the Investment Advisers Act of 1940 (15 U.S.C. 80b-
2(a)).
``(10) Interested party.--The term `interested party' has
the meaning given the term in section 13104(f)(3)(E).
``(11) Member of congress; supervising ethics office.--The
terms `Member of Congress' and `supervising ethics office'
have the meanings given those terms in section 13101.
``(12) Qualified blind trust.--The term `qualified blind
trust' has the meaning given the term in section 13104(f)(3).
``(13) 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)).
``(14) Small business concern.--The term `small business
concern' has the meaning given the term under section 3 of
the Small Business Act (15 U.S.C. 632).

``Sec. 13162. Trading covered investments

``(a) Ban on Trading.--Except as provided in subsections
(b) and (c)--
``(1) effective on the date of enactment of the Ending
Trading and Holdings In Congressional Stocks (ETHICS) Act, a
covered person shall not purchase any covered investment;
``(2) effective on the date that is 90 days after the date
of enactment of the Ending Trading and Holdings In
Congressional Stocks (ETHICS) Act, a covered person shall not
sell any covered investment, except as provided in section
13163(a)(1); and
``(3) on and after the effective date described in section
13163(j), an individual who is a spouse or dependent child of
a covered person shall not purchase any covered investment or
sell any covered investment, except as provided in section
13163(a)(1).
``(b) Optional Divestment Window.--
``(1) Current members.--Notwithstanding subsection (a), a
covered person who is sworn into office on or before the date
of enactment of the Ending Trading and Holdings In
Congressional Stocks (ETHICS) Act may sell a covered
investment within 90 days of the date of enactment of such
Act.
``(2) New members.--Notwithstanding subsection (a), a
covered person who is sworn into office after the date of
enactment of the Ending Trading and Holdings In Congressional
Stocks (ETHICS) Act, but before the effective date under
section 13163(j), may sell a covered investment within 90
days of commencing a new non-consecutive term of service as a
Member of Congress, President, or Vice President.
``(c) Exception.--Notwithstanding subsection (a), a covered
person may divest a covered investment as directed by the
relevant supervising ethics office pursuant to this Act.
``(d) Joint Covered Investment.--Any covered investment
reported to the supervising ethics office as jointly owned by
a covered person and the spouse of the covered person shall
be deemed to be a covered investment of the covered person
for purposes of this section.

``Sec. 13163. Addressing owned covered investments

``(a) Covered Persons.--
``(1) Divestiture.--
``(A) Requirements.--
``(i) Officials sworn in before the effective date.--
Subject to paragraph (2) and the amendments made under
subsection (b), a covered person who is sworn into office on
or before the effective date described in subsection (j), not
later than 120 days after the effective date described in
subsection (j), subject to any extension granted under
subparagraph (C)(iii) of this paragraph, shall divest each
covered investment owned or in the custody of--

``(I) the covered person; or
``(II) a spouse or dependent child of the covered person.

``(ii) Officials sworn in after the effective date.--
Subject to paragraph (2) and the amendments made under
subsection (b), a covered person who is sworn into office
after the effective date described in subsection (j), not
later than 120 days after commencing a new non-consecutive
term of service as a Member of Congress, President, or Vice
President, subject to any extension granted under
subparagraph (C)(iii) of this paragraph, shall divest each
covered investment owned or in the custody of--

``(I) the covered person; or
``(II) a spouse or dependent child of the covered person.

``(B) Illiquid investments.--Not later than 90 days after
the date on which a covered person is contractually permitted
to sell an illiquid investment, the covered person shall
divest the illiquid investment.
``(C) Qualified blind trusts.--
``(i) Prohibition on future qualified blind trusts.--Except
as provided in clause (iii), on and after the date that is
180 days after the effective date described in subsection
(j), no covered person, or the spouse or dependent child of
the covered person, may maintain a qualified blind trust.
``(ii) Mandatory sale of covered investments in existing
qualified blind trusts.--

``(I) In general.--The trustee of a qualified blind trust
holding covered investments shall, at a time elected by the
covered person, on behalf of a covered person, and in
accordance with clause (iv)--

``(aa) divest all covered investments held in the qualified
blind trust for the purposes of complying with the
divestiture requirements under this section, in accordance
with subparagraph (A); and
``(bb) dissolve the qualified blind trust in accordance
with this chapter and guidance from the supervising ethics
office.

``(II) Notice of compliance.--

``(aa) Notice of divestiture.--
``(AA) In general.--Upon the completion of divestiture of
all covered investments pursuant to subclause (I)(aa), the
trustee shall submit to the supervising ethics office and the
applicable covered person a written notice stating that the
trustee has completed divestiture of all covered investments
held in the qualified blind trust pursuant to subclause
(I)(aa).
``(BB) Publication.--The supervising ethics office shall
publish the notice required under subitem (AA) on the website
of the supervising ethics office.
``(bb) Notice of dissolution.--Upon the dissolution of a
qualified blind trust pursuant to subclause (I)(bb), the
trustee shall submit to the supervising ethics office and the
applicable covered person a written notice stating that the
trust has dissolved the qualified blind trust pursuant to
subclause (I)(bb) and shall include a list of the assets held
in the qualified blind trust on the date of the dissolution
of such trust and the category of value of each such asset.
``(iii) Extension of mandatory sale of covered
investments.--

``(I) Request.--Each covered person who maintains a
qualified blind trust established by the covered person, or a
spouse or dependent child of the covered person, in any case
in which the trustee of the qualified blind trust believes
the size or complexity of the covered investments in the
qualified blind trust warrant such extension may apply to the
supervising ethics office for an extension of the period
described in subparagraph (A).
``(II) Duration.--An extension granted under subclause (I)
shall not exceed 90 days.

``(iv) Communications.--A covered person may communicate
with and direct the trustee of their qualified blind trust
for the purposes of--

``(I) determining when divestment of covered investments in
the qualified blind trust should occur, pursuant to paragraph
1(A) of this subsection, clause (ii) of this subparagraph, or
section 13162(b), as applicable;
``(II) determining which permitted property covered
investments should be divested into; and
``(III) whether the trustee utilizes a certificate of
divestiture pursuant to section 1043(b) of the Internal
Revenue Code of 1986, as amended by subsection (b) of this
section.

``(2) Exception for dependents.--An individual who is a
dependent child of a covered person may have a legal guardian
hold or trade on behalf of the dependent child 1 or more
covered investments provided that the

[[Page S5825]]

value of the covered investments in total does not exceed
$10,000.
``(b) Tax Treatment of Divestitures.--
``(1) In general.--Section 1043(b) of the Internal Revenue
Code of 1986 is amended--
``(A) in paragraph (1)(A), by inserting `or a covered
person (as defined in section 13161 of title 5, United States
Code),' after `of the Federal Government,';
``(B) in paragraph (2)(B)--
``(i) by striking `employees, or' and inserting
`employees,'; and
``(ii) by inserting `or the applicable supervising ethics
office (as defined in section 13101 of title 5, United States
Code), in the case of a covered person' after `judicial
officers,'; and
``(C) in paragraph (3), by striking `or any diversified
investment fund approved by regulations issued by the Office
of Government Ethics' and inserting `, any diversified
investment fund approved by regulations issued by the Office
of Government Ethics (in the case of any eligible person who
is not a covered person (as defined in section 13161 of title
5, United States Code)), or any diversified mutual fund or a
diversified exchange-traded fund described in clause (i) or
(ii) of section 13161(2)(B) of title 5, United States Code
(in the case of any eligible person who is a covered person
(as so defined)).'.
``(2) Effective date.--The amendments made by this
subsection shall apply to sales after the date of enactment
of the Ending Trading and Holdings In Congressional Stocks
(ETHICS) Act.
``(c) Acquisitions During Service.--
``(1) In general.--Subject to paragraph (2), and any
applicable rules issued pursuant to subsection (h)(3),
effective beginning on the date of enactment of the Ending
Trading and Holdings In Congressional Stocks (ETHICS) Act, no
covered person, or spouse or dependent child of a covered
person, may acquire any covered investment.
``(2) Inheritances.--
``(A) In general.--Subject to subparagraph (B), a covered
person, or a spouse or dependent child of a covered person,
who inherits a covered investment shall come into compliance
as required under subsection (a) by not later than 120 days
after the date on which the covered investment is inherited.
``(B) Extensions.--If a covered person, or a spouse or
dependent child of a covered person, is unable to meet the
requirements of subparagraph (A), the applicable covered
person may request, and the supervising ethics office may
grant, 1 or more reasonable extensions, subject to the
conditions that--
``(i) the total period of time covered by all extensions
granted for the covered investment shall not exceed 150 days;
and
``(ii) the period covered by a single extension shall be
not longer than 45 days.
``(d) Family Trusts.--
``(1) In general.--A supervising ethics office may grant an
exemption for a family trust only if--
``(A) no covered person, or spouse or dependent child of a
covered person--
``(i) is a grantor of the family trust;
``(ii) contributed any asset to the family trust; or
``(iii) has any authority over a trustee of the family
trust, including the authority to appoint, replace, or direct
the actions of such a trustee; and
``(B) the grantor of the family trust is or was a family
member of the covered person, or the spouse or dependent
child of the covered person.
``(2) Requests.--A covered person seeking an exemption
under paragraph (1) shall submit to the applicable
supervising ethics office a request for the exemption, in
writing, certifying that the conditions described in that
paragraph are met.
``(3) Publication.--A supervising ethics office shall
publish on the public website of the supervising ethics
office--
``(A) a copy of each request submitted under paragraph (2);
and
``(B) the written response of the supervising ethics office
to each request described in subparagraph (A).
``(e) Separation From Service and Cooling-off Period
Required for Control.--During the period beginning on the
date on which an individual becomes a Member of Congress,
President, or Vice President and ending on the date that is
90 days after the date on which the individual ceases to
serve as a Member of Congress, President, or Vice President,
the covered person, and any spouse or dependent child of the
covered person, may not, except as provided in this section,
otherwise control a covered investment, including purchasing
new covered investments.
``(f) Reporting Requirements.--
``(1) Supervising ethics offices.--Each supervising ethics
office shall make available on the public website of the
supervising ethics office--
``(A) a copy of--
``(i) each notification submitted to the supervising ethics
office in accordance with subsection (a)(1)(C)(ii)(II);
``(ii) each notice and other documentation submitted to the
supervising ethics office under this section; and
``(iii) each written response and other documentation
issued or received by the supervising ethics office under
subsection (d);
``(B) not later than 30 days after a qualified blind trust
maintained by a covered person is dissolved, a written notice
of the dissolution of the qualified blind trust; and
``(C) a description of each extension granted, and each
civil penalty imposed, pursuant to this section.
``(2) Federal benefits.--
``(A) Covered payment.--In this paragraph, the term
`covered payment'--
``(i) means a payment of money or any other item of value
made, or promised to be made, by the Federal Government;
``(ii) includes--

``(I) a loan agreement, contract, or grant made, or
promised to be made, by the Federal Government, including
such an agreement, contract, or grant relating to
agricultural activity; and
``(II) such other types of payment of money or items of
value as the supervising ethics office may establish, by
guidance; and

``(iii) does not include--

``(I) any salary or compensation for service performed as,
or reimbursement of personal outlay by, an officer or
employee of the Federal Government; or
``(II) any tax refund (including a refundable tax credit).

``(B) Reporting requirement.--Not later than 30 days after
the date of receipt of a notice of any application for, or
receipt of, a covered payment by a covered person, or a
spouse or dependent child of a covered person, (including any
business owned and controlled by the covered person, spouse,
or dependent child), but in no case later than 45 days after
the date on which the covered payment is made or promised to
be made, the covered person shall submit to the applicable
supervising ethics office a report describing the covered
payment.
``(g) Enforcement.--
``(1) In general.--The applicable supervising ethics office
shall provide a written notice (including notice of the
potential for civil penalties under paragraph (2)) to any
covered person if the covered person, or the spouse or
dependent child of the covered person, as applicable--
``(A) fails to divest a covered investment owned by, in the
custody of, or held in a qualified blind trust of, the
covered person or spouse or dependent child of a covered
person, in accordance with subsection (a)(1), subject to any
extension under subsection (a)(1)(C)(iii); or
``(B) acquires an interest in a covered investment in
violation of this section.
``(2) Civil penalties.--
``(A) In general.--In the event of continuing noncompliance
after issuance of the notice described in paragraph (1), the
supervising ethics office shall impose a civil penalty, in
the amount described in subparagraph (B), on a covered person
to whom a notice is provided under subparagraph (A) or (B) of
paragraph (1)--
``(i) on the date that is 30 days after the date of
provision of the notice; and
``(ii) during the period in which such noncompliance
continues, not less frequently than once every 30 days
thereafter.
``(B) Amount.--The amount of each civil penalty imposed on
a covered person pursuant to subparagraph (A) shall be equal
to the greater of--
``(i) the monthly equivalent of the annual rate of pay
payable to the covered person; and
``(ii) an amount equal to 10 percent of the value of each
covered investment that was not divested in violation of this
section during the period covered by the penalty.
``(h) Duties of Supervising Ethics Offices.--Each
supervising ethics office shall--
``(1) impose and collect civil penalties in accordance with
subsection (g);
``(2) establish such procedures and standard forms as the
supervising ethics office determines to be appropriate to
implement this section;
``(3) issue such rules and guidelines as the supervising
ethics office determines to be appropriate for the
implementation and application of this title; and
``(4) publish on a website all documents and communications
described in this subsection.
``(i) Rule of Construction.--Nothing in this section shall
be construed to prevent a covered person, or a spouse or
dependent child of a covered person, from owning or trading--
``(1) a diversified mutual fund; or
``(2) a publicly traded, diversified exchange traded fund.
``(j) Effective Date.--Except as provided in subsection
(c)(1), this section shall apply on and after March 31,
2027.''.
(2) Clerical amendment.--The table of sections for chapter
131 of title 5, United States Code, is amended by adding at
the end the following:

``subchapter iv--certain assets of members of congress, the president,
the vice president, and their spouses and dependent children

``13161. Definitions.
``13162. Trading covered investments
``13163. Addressing owned covered investments''.
(3) Technical and conforming amendments.--
(A) Title 5.--Title 5, United States Code, is amended--
(i) in section 13103(f)--

(I) in paragraph (9), by striking ``as defined in section
13101 of this title'';
(II) in paragraph (10), by striking ``as defined in section
13101 of this title'';
(III) in paragraph (11), by striking ``as defined in
section 13101 of this title''; and
(IV) in paragraph (12), by striking ``as defined in section
13101 of this title''; and

(ii) in section 13122(f)(2)(B)--

[[Page S5826]]

(I) by striking ``Subject to clause (iv) of this
subparagraph, before'' each place it appears and inserting
``Before''; and
(II) by striking clause (iv).

(B) Lobbying disclosure act of 1995.--Section 3(4)(D) of
the Lobbying Disclosure Act of 1995 (2 U.S.C. 1602(4)(D)) is
amended by striking ``legislative branch employee serving in
a position described under section 13101(13) of title 5,
United States Code'' and inserting ``officer or employee of
Congress (as defined in section 13101 of title 5, United
States Code)''.
(C) Securities exchange act of 1934.--Section 21A of the
Securities Exchange Act of 1934 (15 U.S.C. 78u-1) is
amended--
(i) in subsection (g)(2)(B)(ii), by striking ``section
13101(11)'' and inserting ``section 13101''; and
(ii) in subsection (h)(2)--

(I) in subparagraph (B), by striking ``in section
13101(9)'' and inserting ``under section 13101''; and
(II) in subparagraph (C), by striking ``section 13101(10)''
and inserting ``section 13101''.

(c) Penalty for STOCK Act Noncompliance.--
(1) Fines for failure to report.--
(A) In general.--The STOCK Act (Public Law 112-105; 126
Stat. 291) is amended by adding at the end the following:

``SEC. 20. FINES FOR FAILURE TO REPORT.

``(a) In General.--Notwithstanding any other provision of
law (including regulations), a reporting individual shall be
assessed a fine, pursuant to regulations issued by the
applicable supervising ethics office (including the
Administrative Office of the United States Courts, as
applicable), of $500 in each case in which the reporting
individual fails to file a transaction report required under
this Act or an amendment made by this Act.
``(b) Deposit in Treasury.--The fines paid under this
section shall be deposited in the miscellaneous receipts of
the Treasury.''.
(B) Effective date.--The amendment made by subparagraph (A)
shall apply on and after March 31, 2027.
(2) Rules, regulations, guidance, and documents.--Not later
than 1 year after the date of enactment of this section, each
supervising ethics office (as defined in section 13101 of
title 5, United States Code) (including the Administrative
Office of the United States Courts, as applicable) shall
amend the rules, regulations, guidance, documents, papers,
and other records of the supervising ethics office in
accordance with the amendment made by this subsection.
(d) Electronic Filing and Online Public Availability of
Financial Disclosure Forms.--
(1) Members of congress and congressional staff.--Section
8(b)(1) of the STOCK Act (5 U.S.C. 13107 note) is amended--
(A) in the matter preceding subparagraph (A), by inserting
``, pursuant to subchapter I of chapter 131 of title 5,
United States Code, through databases maintained on the
official websites of the House of Representatives and the
Senate'' after ``enable''; and
(B) by striking subparagraph (B) and the undesignated
matter following that subparagraph and inserting the
following:
``(B) public access--
``(i) to each--

``(I) financial disclosure report filed by a Member of
Congress or a candidate for Congress;
``(II) transaction disclosure report filed by a Member of
Congress or a candidate for Congress pursuant to subsection
(l) of that section; and
``(III) notice of extension, amendment, or blind trust,
with respect to a report described in subclause (I) or (II),
pursuant to subchapter I of chapter 131 of title 5, United
States Code; and

``(ii) in a manner that--

``(I) allows the public to search, sort, and download data
contained in the reports described in subclause (I) or (II)
of clause (i) by criteria required to be reported, including
by filer name, asset, transaction type, ticker symbol,
notification date, amount of transaction, and date of
transaction;
``(II) allows access through an application programming
interface; and
``(III) is fully compliant with--

``(aa) section 508 of the Rehabilitation Act of 1973 (29
U.S.C. 794d); and
``(bb) the most recent Web Content Accessibility Guidelines
(or successor guidelines).''.
(2) Effective date.--The amendments made by this subsection
shall take effect on the date that is 18 months after the
date of enactment of this section.
(e) Severability.--If any provision of this section, an
amendment made by this section, or the application of such
provision or amendment to any person or circumstance is held
to be unconstitutional, the remainder of this section and of
the amendments made by this section, and the application of
the remaining provisions of this section and amendments to
any person or circumstance, shall not be affected.
______