United States 117th Congress Status: In Committee Bipartisan · 1 R · 1 D cosponsors

HR 8754 — Dismantling Investments in Violation of Ethical Standards through Trusts Act

Last action — Referred to the Committee on Oversight and Reform, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 117th Congress. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there are no live odds of enactment. It would have to be reintroduced in the current session to move again.

Summary

Dismantling Investments in Violation of Ethical Standards through Trusts Act This bill prohibits a senior federal employee, his or her spouse, or dependent children from holding, purchasing, or selling certain financial instruments during the employee's term of service. Any profit made in violation of the prohibition must be disgorged to the Treasury and may subject the individual to a civil fine. The bill also requires the submission of an annual certification of compliance and requires the Government Accountability Office to conduct a compliance audit. A loss from a transaction or holding involving a covered financial instrument that is conducted in violation of this bill may not be deducted from the amount of income tax owed by the applicable senior federal employee, spouse, or dependent child. A senior federal employee who holds or conducts a transaction involving a covered financial instrument in violation of this bill may be subject to a civil fine assessed by the supervising ethics office.

Bill Text

How this bill changes current law

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Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill adds new prohibitions on transactions and ownership of certain financial instruments by senior federal employees and their families, alongside various compliance and enforcement mechanisms.

  • 5 U.S.C. App.

    TITLE II--RESTRICTIONS REGARDING FINANCIAL INSTRUMENTS

    New title added to the Ethics in Government Act of 1978 addressing financial instrument restrictions.

  • 5 U.S.C. App.

    SEC. 201. DEFINITIONS. In this title: (1) Covered financial instrument.--(A) In general.--The term `covered financial instrument' means--(i) any investment in--(I) a security (as defined in section 3(a) of Securities Exchange Act of 1934 (15 U.S.C. 78c(a))); (II) a security future (as defined in that section); or (III) a commodity (as defined in section 1a of the Commodity Exchange Act (7 U.S.C. 1a)); 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) Exclusions.--The term `covered financial instrument' does not include--(i) a diversified mutual fund; (ii) a diversified exchange-traded fund; (iii) a United States Treasury bill, note, or bond; or (iv) compensation from the primary occupation of a spouse or dependent child of a senior Federal employee.

    Definitions for terms related to financial instruments and related restrictions are established.

  • 5 U.S.C. App.

    SEC. 202. PROHIBITION ON CERTAIN TRANSACTIONS AND HOLDINGS INVOLVING COVERED FINANCIAL INSTRUMENTS. (a) Prohibition.--Except as provided in subsection (b), a senior Federal employee, their spouse, or their dependent children may not, during the term of service of the employee, hold, purchase, or sell any covered financial instrument.

    Establishing a prohibition against senior federal employees and their families from holding or transacting in covered financial instruments.

  • 5 U.S.C. App.

    SEC. 203. CERTIFICATION OF COMPLIANCE. (a) In General.--Not less frequently than annually, each senior Federal employee shall submit to the supervising ethics office a written certification that the employee, their spouse, or their dependent child has achieved compliance with the requirements of this title.

    Require annual compliance certifications from senior federal employees regarding financial instrument holdings.

  • 5 U.S.C. App.

    SEC. 204. AUTHORITY OF SUPERVISING ETHICS OFFICE. (a) In General.--The supervising ethics office may implement and enforce the requirements of this title, including by-- (1) issuing-- (A) for applicable senior Federal employees-- (i) rules governing that implementation; and (ii) 1 or more reasonable extensions to achieve compliance with this title, if the supervising ethics office determines that an employee is making a good faith effort to divest any covered financial instruments; and (B) guidance relating to covered financial instruments.

    Empowers the supervising ethics office to enforce compliance and issue rules regarding the new financial prohibitions.

  • 5 U.S.C. App.

    SEC. 205. AUDIT BY GOVERNMENT ACCOUNTABILITY OFFICE. Not later than 2 years after the date of enactment of this title, the Comptroller General of the United States shall-- (1) conduct an audit of the compliance by senior Federal employees with the requirements of this title; and (2) submit to each supervising ethics office a report describing the results of the audit conducted under paragraph (1).

    Mandates a compliance audit by the Government Accountability Office to be conducted within two years.

  • 5 U.S.C. App.

    (b) Application.--The amendments made by subsection (a) shall apply to individuals described in section 202(a) of the Ethics in Government Act of 1978 (5 U.S.C. App.) beginning on the date that is 12 months following the date of enactment of this Act.

    Defines the applicability of the new provisions to specific individuals a year after enactment.

  • 5 U.S.C. App.

    SEC. 206. PENALTIES. (1) Disgorgement.--A senior Federal employee, their spouse, 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 section.

    Imposes penalties for violations involving transactions in covered financial instruments, including disgorgement of profits.

Action History

  1. Introduced in House

  2. Introduced in House

  3. Referred to the Committee on Oversight and Reform, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

  4. Referred to the Committee on Oversight and Reform, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Sponsors

Sponsorship breakdown

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1 sponsors · 1 co-sponsors · 545 not signed on

Sponsors (1)

Co-sponsors (1)

Not signed on (545)

545 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Subjects

finance civil-rights
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Frequently asked questions

What does HR 8754 do?
Dismantling Investments in Violation of Ethical Standards through Trusts Act This bill prohibits a senior federal employee, his or her spouse, or dependent children from holding, purchasing, or selling certain financial instruments during the employee's term of service. Any profit made in violation of the prohibition must be disgorged to the Treasury and may subject the individual to a civil fine. The bill also requires the submission of an annual certification of compliance and requires the Government Accountability Office to conduct a compliance audit. A loss from a transaction or holding involving a covered financial instrument that is conducted in violation of this bill may not be deducted from the amount of income tax owed by the applicable senior federal employee, spouse, or dependent child. A senior federal employee who holds or conducts a transaction involving a covered financial instrument in violation of this bill may be subject to a civil fine assessed by the supervising ethics office.
Who sponsors HR 8754?
HR 8754 is sponsored by Cloud, Michael (Republican) and Golden, Jared F. (Democratic).
What is the current status of HR 8754?
This bill died with 117th Congress. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track HR 8754?
Track HR 8754 free on One Click Politics — get push/email alerts when it moves.

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