Bill > HR1599

This bill (the Dismantling Investments in Violation of Ethical Standards through Trusts Act) aims to prohibit senior Federal employees, their spouses, and dependent children from holding, purchasing, or selling certain financial investments during the employee's term of service. Specifically, the bill defines "covered financial instruments" as investments in securities, security futures, commodities, and similar economic interests acquired through derivatives, with exceptions for diversified mutual funds, exchange-traded funds, U.S. Treasury securities, and spousal income. Senior Federal employees (defined as those in the Senior Executive Service) must divest such investments within 180 days of the bill's enactment, with potential exceptions for qualified blind trusts. The bill establishes significant penalties for non-compliance, including mandatory disgorgement of profits to the Treasury, prohibition of tax deductions for losses from prohibited transactions, and potential civil fines up to $1,000 or 10% of the investment's highest value. Employees must annually certify compliance, and these certifications will be publicly published. The bill also mandates a Government Accountability Office audit of compliance within two years of enactment and provides funding for implementation through potential transfers from other executive branch programs.

Government Affairs

https://www.congress.gov/bill/119th-congress/house-bill/1599/all-info