Us Congress 2023-2024 Regular Session

Us Congress House Bill HB389 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	I
2	2	118THCONGRESS
3	3	1
4	4	STSESSION H. R. 389
5	5	To amend the Ethics in Government Act of 1978 to restrict trading and
6	6	ownership of covered investments by each Federal employee, and for
7	7	other purposes.
8	8	IN THE HOUSE OF REPRESENTATIVES
9	9	JANUARY17, 2023
10	10	Mr. S
11	11	CHWEIKERTintroduced the following bill; which was referred to the
12	12	Committee on Oversight and Accountability, and in addition to the Com-
13	13	mittees on the Judiciary, House Administration, and Ways and Means,
14	14	for a period to be subsequently determined by the Speaker, in each case
15	15	for consideration of such provisions as fall within the jurisdiction of the
16	16	committee concerned
17	17	A BILL
18	18	To amend the Ethics in Government Act of 1978 to restrict
19	19	trading and ownership of covered investments by each
20	20	Federal employee, and for other purposes.
21	21	Be it enacted by the Senate and House of Representa-1
22	22	tives of the United States of America in Congress assembled, 2
23	23	SECTION 1. SHORT TITLE. 3
24	24	This Act may be cited as the ‘‘Preventing Opportun-4
25	25	istic Returns on Trades and Futures by Officials, Leader-5
26	26	ship, and Individuals in Office Act’’ or the ‘‘PORTFOLIO 6
27	27	Act’’. 7
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30	30	•HR 389 IH
31	31	SEC. 2. RESTRICTING TRADING AND OWNERSHIP OF COV-1
32	32	ERED INVESTMENTS BY FEDERAL PER-2
33	33	SONNEL. 3
34	34	(a) Q
35	35	UALIFIEDBLINDTRUSTAMENDMENTS.—Sec-4
36	36	tion 102(f)(3) of the Ethics in Government Act of 1978 5
37	37	(5 U.S.C. App 102(f)(3)) is amended— 6
38	38	(1) in subparagraph (C)(iii), by striking 7
39	39	‘‘promptly notify’’ and inserting ‘‘promptly provide a 8
40	40	written notice to’’; and 9
41	41	(2) by adding after subparagraph (F) the fol-10
42	42	lowing new subparagraph: 11
43	43	‘‘(G) Any asset described as a covered invest-12
44	44	ment under title II that is placed in a trust after the 13
45	45	date of enactment of the PORTFOLIO Act shall be 14
46	46	divested not later than 18 months after such asset 15
47	47	was so placed. 16
48	48	‘‘(H) Notwithstanding subparagraphs (A) 17
49	49	through (G), a form of a trust approved by the Of-18
50	50	fice of Government Ethics, Judicial Conference, 19
51	51	House of Representatives, or Senate through rule-20
52	52	making or by majority vote for its respective juris-21
53	53	diction.’’. 22
54	54	(b) T
55	55	RADE ANDOWNERSHIPRESTRICTIONS.—The 23
56	56	Ethics in Government Act of 1978 (5 U.S.C. App.) is 24
57	57	amended by inserting after title I the following: 25
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60	60	•HR 389 IH
61	61	‘‘TITLE II—RESTRICTIONS ON 1
62	62	TRADE AND OWNERSHIP OF 2
63	63	COVERED INVESTMENTS BY 3
64	64	FEDERAL PERSONNEL 4
65	65	‘‘SEC. 201. DEFINITIONS. 5
66	66	‘‘In this title: 6
67	67	‘‘(1) C
68	68	OMMODITY.—The term ‘commodity’ has 7
69	69	the meaning given the term in section 1a of the 8
70	70	Commodity Exchange Act (7 U.S.C. 1a). 9
71	71	‘‘(2) C
72	72	OVERED INVESTMENT .—The term ‘cov-10
73	73	ered investment’— 11
74	74	‘‘(A) means an investment in a security, a 12
75	75	commodity, a future, cryptocurrency or other 13
76	76	digital asset, or any comparable economic inter-14
77	77	est acquired through synthetic means, such as 15
78	78	the use of a derivative, including an option, 16
79	79	warrant, or other similar means; and 17
80	80	‘‘(B) does not include— 18
81	81	‘‘(i) a widely held investment fund de-19
82	82	scribed in section 102(f)(8) that is diversi-20
83	83	fied and publicly traded on a national or 21
84	84	regional stock exchange; 22
85	85	‘‘(ii) an asset held in a qualified blind 23
86	86	trust; 24
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89	89	•HR 389 IH
90	90	‘‘(iii) an asset held in a qualified di-1
91	91	versified trust; 2
92	92	‘‘(iv) a diversified mutual fund (in-3
93	93	cluding any holdings of such a fund); 4
94	94	‘‘(v) a diversified exchange-traded 5
95	95	fund (including any holdings of such a 6
96	96	fund); 7
97	97	‘‘(vi) a United States Treasury bill, 8
98	98	note, or bond; 9
99	99	‘‘(vii) a State or municipal govern-10
100	100	ment bill, note, or bond; 11
101	101	‘‘(viii) the Thrift Savings Plan (in-12
102	102	cluding any holdings in such plan); 13
103	103	‘‘(ix) any compensation received by 14
104	104	the spouse or dependent child of a covered 15
105	105	official from their primary employer; 16
106	106	‘‘(x) any investment fund held in a 17
107	107	Federal, State, or local government em-18
108	108	ployee retirement plan; or 19
109	109	‘‘(xi) an interest in a small business 20
110	110	concern or family-owned business that does 21
111	111	not present a conflict of interest. 22
112	112	‘‘(3) C
113	113	OVERED PERSON .—The term ‘covered 23
114	114	person’ means— 24
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117	117	•HR 389 IH
118	118	‘‘(A) any employee (as that term is defined 1
119	119	in section 2105 of title 5, United States Code), 2
120	120	including— 3
121	121	‘‘(i) an officer or employee of the 4
122	122	United States Postal Service and the Post-5
123	123	al Regulatory Commission; 6
124	124	‘‘(ii) notwithstanding section 7425(b) 7
125	125	of title 38, United States Code, employees 8
126	126	appointed under chapter 73 or 74 of such 9
127	127	title 38; and 10
128	128	‘‘(iii) any other individual occupying a 11
129	129	position in the civil service (as that term is 12
130	130	defined in section 2101 of such title 5); 13
131	131	‘‘(B) a Member of Congress as defined in 14
132	132	section 109(12); 15
133	133	‘‘(C) the President; and 16
134	134	‘‘(D) the Vice President. 17
135	135	‘‘(4) C
136	136	RYPTOCURRENCY OR OTHER DIGITAL 18
137	137	ASSET.—The term ‘cryptocurrency or other digital 19
138	138	asset’ means an asset that is issued or transferred 20
139	139	using distributed ledger or blockchain technology, in-21
140	140	cluding: virtual currencies, coins and tokens, or any 22
141	141	other digital asset specified by regulations of a filer’s 23
142	142	supervising ethics office. 24
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145	145	•HR 389 IH
146	146	‘‘(5) DEPENDENT CHILD .—The term ‘depend-1
147	147	ent child’ means an individual described in section 2
148	148	109(2). 3
149	149	‘‘(6) I
150	150	NTERESTED PARTY .—The term ‘inter-4
151	151	ested party’ has the meaning given the term in sec-5
152	152	tion 102(f)(3)(E). 6
153	153	‘‘(7) F
154	154	UTURE.—The term ‘future’ means a fi-7
155	155	nancial contract obligating the buyer to purchase an 8
156	156	asset or the seller to sell an asset, such as a physical 9
157	157	commodity or a financial investment, at a predeter-10
158	158	mined future date and price. 11
159	159	‘‘(8) Q
160	160	UALIFIED BLIND TRUST .—The term 12
161	161	‘qualified blind trust’ has the meaning given the 13
162	162	term in section 102(f)(3). 14
163	163	‘‘(9) Q
164	164	UALIFIED DIVERSIFIED TRUST .—The 15
165	165	term ‘qualified diversified trust’ means a trust de-16
166	166	scribed in section 102(f)(4)(B). 17
167	167	‘‘(10) S
168	168	ECURITY.—The term ‘security’ has the 18
169	169	meaning given the term in section 3(a) of the Secu-19
170	170	rities Exchange Act of 1934 (15 U.S.C. 78c(a)). 20
171	171	‘‘(11) S
172	172	MALL BUSINESS CONCERN .—The term 21
173	173	‘small business concern’ has the meaning given that 22
174	174	term under section 3 of the Small Business Act (15 23
175	175	U.S.C. 632). 24
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178	178	•HR 389 IH
179	179	‘‘(12) SUPERVISING ETHICS OFFICE .—The term 1
180	180	‘supervising ethics office’ has the meaning given the 2
181	181	term in section 109(18). 3
182	182	‘‘SEC. 202. OWNERSHIP OF COVERED INVESTMENTS. 4
183	183	‘‘(a) C
184	184	ONDUCTDURINGFEDERALSERVICE.—Except 5
185	185	as described in paragraph (2) of subsection (b) or sub-6
186	186	sections (c) through (h), no covered person may own or 7
187	187	trade any covered investment. 8
188	188	‘‘(b) C
189	189	OMPLIANCE.—To comply with the require-9
190	190	ments under paragraph (1)— 10
191	191	‘‘(1) a covered person shall not purchase any 11
192	192	covered investment beginning 60 days after the date 12
193	193	of enactment of the PORTFOLIO Act or the date 13
194	194	on which an individual becomes a covered person, 14
195	195	whichever is later; and 15
196	196	‘‘(2) a covered person shall divest of any cov-16
197	197	ered investment within 180 days of the effective date 17
198	198	established in subsection (k)(2) or the date on which 18
199	199	an individual becomes a covered person, whichever is 19
200	200	later— 20
201	201	‘‘(A) through gift or charitable donation of 21
202	202	a covered investment; 22
203	203	‘‘(B) by converting a covered investment to 23
204	204	cash; or 24
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207	207	•HR 389 IH
208	208	‘‘(C) by placing a covered investment in a 1
209	209	qualified blind trust in accordance with sub-2
210	210	section (c). 3
211	211	‘‘(c) Q
212	212	UALIFIEDBLINDTRUST.— 4
213	213	‘‘(1) C
214	214	OVERED PERSONS AS OF DATE OF EN -5
215	215	ACTMENT.—An individual who is a covered person 6
216	216	as of the date of enactment of the PORTFOLIO Act 7
217	217	may comply with subsection (b) by placing any cov-8
218	218	ered investment owned by such person into a quali-9
219	219	fied blind trust not later than 180 days after the ef-10
220	220	fective date established in subsection (k)(2). 11
221	221	‘‘(2) C
222	222	OVERED PERSONS AFTER DATE OF EN -12
223	223	ACTMENT.—An individual who becomes a covered 13
224	224	person after the date of enactment of the PORT-14
225	225	FOLIO Act may comply with subsection (b) by plac-15
226	226	ing any covered investment owned by such person 16
227	227	into a qualified blind trust not later than 180 days 17
228	228	after the effective date established in subsection 18
229	229	(k)(2) or the date on which the individual becomes 19
230	230	a covered person, whichever is later. 20
231	231	‘‘(3) M
232	232	INGLING OF ASSETS.—A spouse or de-21
233	233	pendent child of a covered person may place a cov-22
234	234	ered investment in a qualified blind trust established 23
235	235	by a covered person. 24
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238	238	•HR 389 IH
239	239	‘‘(d) PUBLICNOTIFICATION.—Not later than 30 days 1
240	240	after receiving any written notice under section 2
241	241	102(f)(3)(C)(iii), the supervising ethics office shall make 3
242	242	such notices publicly available in the manner provided 4
243	243	under section 105(a). 5
244	244	‘‘(e) E
245	245	XCEPTION.—Subsection (a) shall not apply to 6
246	246	an individual who ceases to be a covered person within 7
247	247	180 days of the date of the enactment of the PORT-8
248	248	FOLIO Act. 9
249	249	‘‘(f) C
250	250	OMPLEXFINANCIALARRANGEMENTS.— 10
251	251	‘‘(1) T
252	252	EMPORARY EXEMPTIONS .—A supervising 11
253	253	ethics office may grant a temporary exemption to a 12
254	254	covered person regarding their compliance with the 13
255	255	requirements of subsection (a) for investments held 14
256	256	in trusts or other complex financial arrangements in 15
257	257	which— 16
258	258	‘‘(A) the covered person entered into, or 17
259	259	was made a beneficiary of or to, a complex fi-18
260	260	nancial arrangement before the enactment of 19
261	261	the PORTFOLIO Act; and 20
262	262	‘‘(B) the covered person is contractually 21
263	263	prohibited from— 22
264	264	‘‘(i) having knowledge or control of 23
265	265	the covered person’s investments; or 24
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268	268	•HR 389 IH
269	269	‘‘(ii) withdrawing the investment in 1
270	270	certain circumstances. 2
271	271	‘‘(2) P
272	272	UBLICATION.—A supervising ethics office 3
273	273	shall make publicly available in the manner provided 4
274	274	under section 105(a)— 5
275	275	‘‘(A) any requests from a covered person 6
276	276	for a temporary exemption within 30 days of 7
277	277	receipt; and 8
278	278	‘‘(B) any decision by the supervising ethics 9
279	279	office on the temporary exemption request of a 10
280	280	covered person within 30 days of issuing it. 11
281	281	‘‘(g) A
282	282	SSETSACQUIRED IN SPECIALCIR-12
283	283	CUMSTANCES.— 13
284	284	‘‘(1) D
285	285	IVESTMENT.—Except as described in 14
286	286	paragraph (2), in the event that a covered person 15
287	287	acquires a covered investment after the date of en-16
288	288	actment of the PORTFOLIO Act other than by pur-17
289	289	chase (such as by marriage, inheritance, divorce set-18
290	290	tlement, or other circumstance), the covered person 19
291	291	shall have 180 days of the effective date established 20
292	292	in subsection (k)(2) to divest of such investment 21
293	293	through any means provided under subsection 22
294	294	(b)(2). 23
295	295	‘‘(2) E
296	296	XTENSION.—A supervising ethics office 24
297	297	may grant a covered person an extension of time to 25
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300	300	•HR 389 IH
301	301	comply with the deadline specified in paragraph (1) 1
302	302	in accordance with subsection (h). 2
303	303	‘‘(h) E
304	304	XTENSIONS.—With respect to subsections (a) 3
305	305	and (g), in response to a written request for an extension, 4
306	306	a supervising ethics office may grant a covered person one 5
307	307	or more extensions to comply with such subsections in the 6
308	308	following manner: 7
309	309	‘‘(1) An extension of up to 30 days may be 8
310	310	granted but the total of all extensions for each cov-9
311	311	ered person in a calendar year may not exceed 90 10
312	312	days. 11
313	313	‘‘(2) A copy of each extension granted by the 12
314	314	supervising ethics office shall be made publicly avail-13
315	315	able in the manner provided under section 105(a). 14
316	316	‘‘(i) R
317	317	ULESPROVIDINGNONRECOGNITION OF GAIN 15
318	318	ONSALESTOCOMPLYWITHCONFLICT-OF-INTEREST 16
319	319	R
320	320	EQUIREMENTSNOTAPPLICABLE.—For purposes of sec-17
321	321	tion 1043 of the Internal Revenue Code of 1986, this title 18
322	322	(and any regulation or rule issued pursuant to this title) 19
323	323	shall not be treated as a statute, regulation, or rule de-20
324	324	scribed in subsection (b)(2)(A) of such section. 21
325	325	‘‘(j) A
326	326	SSETSUPONSEPARATION.—An individual who 22
327	327	is a covered person under this section may not dissolve 23
328	328	any qualified blind trust in which a covered investment 24
329	329	has been placed pursuant to subsection (c), or otherwise 25
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332	332	•HR 389 IH
333	333	control such an investment, until the date that is 180 days 1
334	334	after the date such individual ceases to be a covered per-2
335	335	son. 3
336	336	‘‘(k) A
337	337	DMINISTRATION AND ENFORCEMENT.— 4
338	338	‘‘(1) I
339	339	N GENERAL.—The provisions of this sec-5
340	340	tion shall be administered by the supervising ethics 6
341	341	office for each branch. 7
342	342	‘‘(2) R
343	343	EGULATIONS.—Within 180 days of en-8
344	344	actment of the PORTFOLIO Act, the supervising 9
345	345	ethics office for each branch shall issue regulations 10
346	346	implementing the provisions of this section and 11
347	347	specifying an effective date for the provisions of this 12
348	348	section. 13
349	349	‘‘(3) G
350	350	UIDANCE.—The supervising ethics office 14
351	351	for each branch is authorized to issue guidance on 15
352	352	any matter contained in this section for its respec-16
353	353	tive jurisdiction. 17
354	354	‘‘SEC. 203. PENALTIES FOR VIOLATIONS OF RESTRICTIONS 18
355	355	ON TRADING AND OWNERSHIP OF COVERED 19
356	356	INVESTMENTS. 20
357	357	‘‘(a) P
358	358	ENALTIES.— 21
359	359	‘‘(1) I
360	360	N GENERAL.—Any covered person who 22
361	361	violates the restrictions on trading or ownership of 23
362	362	covered investments in section 202 shall, at the di-24
363	363	rection of the supervising ethics office, pay a fee of 25
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366	366	•HR 389 IH
367	367	$1,000 after being notified by the supervising ethics 1
368	368	office of such violation. 2
369	369	‘‘(2) A
370	370	SSESSMENT OF ADDITIONAL PEN -3
371	371	ALTIES.—If the violation that is the subject of a no-4
372	372	tice under paragraph (1) continues for more than 30 5
373	373	days after the date of the notice (including a viola-6
374	374	tion resulting from a covered person who continues 7
375	375	to own a covered investment in violation of section 8
376	376	202) for each subsequent 30-day period after the 9
377	377	date of the notice during which the violation is ongo-10
378	378	ing, such person shall be assessed an additional fee 11
379	379	equal to— 12
380	380	‘‘(A) the amount in paragraph (1); plus 13
381	381	‘‘(B) an amount equal to 10 percent of the 14
382	382	value of the covered investment that is the sub-15
383	383	ject of the violation at the beginning of the ad-16
384	384	ditional 30-day period of a continuing violation. 17
385	385	‘‘(3) A
386	386	NNUAL INDEXING OF PENALTY FOR IN -18
387	387	FLATION.—By January 31 of the calendar year fol-19
388	388	lowing the enactment of the PORTFOLIO Act and 20
389	389	in each year thereafter, the supervising ethics office 21
390	390	shall adjust the amount of the penalty in paragraph 22
391	391	(1) in the same manner that civil monetary penalties 23
392	392	are annually adjusted for inflation pursuant to sec-24
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395	395	•HR 389 IH
396	396	tion 4 of the Federal Civil Penalties Inflation Ad-1
397	397	justment Act of 1990 (28 U.S.C. 2461 note). 2
398	398	‘‘(4) T
399	399	REATMENT OF FEES.— 3
400	400	‘‘(A) D
401	401	EPOSIT.—All such fees collected 4
402	402	under this section shall be deposited in the mis-5
403	403	cellaneous receipts of the Treasury. 6
404	404	‘‘(B) D
405	405	ELEGATION OF AUTHORITY .—The 7
406	406	authority under this section to direct the pay-8
407	407	ment of a fee may be delegated by the super-9
408	408	vising ethics office in the executive branch to 10
409	409	other agencies in the executive branch. 11
410	410	‘‘(b) W
411	411	AIVER ORREDUCTION.— 12
412	412	‘‘(1) I
413	413	N GENERAL.—The supervising ethics of-13
414	414	fice may waive or reduce the amount of a fee under 14
415	415	subsection (a) in extraordinary circumstances in re-15
416	416	sponse to a written request signed by the covered 16
417	417	person to whom the fee would otherwise apply. 17
418	418	‘‘(2) P
419	419	UBLICATION.—In the event the super-18
420	420	vising ethics office grants a request for a fee waiver 19
421	421	or reduction, the response of the supervising office 20
422	422	shall be made public in the same manner as under 21
423	423	section 105(a). 22
424	424	‘‘(c) C
425	425	IVILPENALTIES.—The Attorney General may 23
426	426	bring a civil action in any appropriate United States dis-24
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429	429	•HR 389 IH
430	430	trict court in the same manner as authorized by section 1
431	431	104(a)(1) against any individual who— 2
432	432	‘‘(1) knowingly and willfully makes a trans-3
433	433	action in a manner that is prohibited by section 202; 4
434	434	or 5
435	435	‘‘(2) knowingly and willfully holds a covered in-6
436	436	vestment in a manner that is prohibited by section 7
437	437	202. 8
438	438	‘‘SEC. 204. ACCOUNTABILITY AND PUBLIC DISCLOSURE OF 9
439	439	ENFORCEMENT MEASURES. 10
440	440	‘‘(a) R
441	441	EFERRAL TOATTORNEYGENERAL.—The head 11
442	442	of each agency, each Secretary concerned, the Director of 12
443	443	the Office of Government Ethics, each congressional ethics 13
444	444	committee, or the Judicial Conference, shall refer to the 14
445	445	Attorney General the name of any individual whom such 15
446	446	official or committee has reasonable cause to believe has 16
447	447	willfully violated the requirements under section 202. 17
448	448	‘‘(b) J
449	449	UDICIALOFFICERS.—Whenever the Judicial 18
450	450	Conference refers a name to the Attorney General under 19
451	451	this section, the Judicial Conference also shall notify the 20
452	452	judicial council of the circuit in which the named indi-21
453	453	vidual serves of the referral. 22
454	454	‘‘(c) R
455	455	EPORT TOCONGRESS.— 23
456	456	‘‘(1) I
457	457	N GENERAL.—The Attorney General shall 24
458	458	annually submit to Congress a report on the crimi-25
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461	461	•HR 389 IH
462	462	nal and civil actions brought against any individual 1
463	463	under titles I or II. 2
464	464	‘‘(2) T
465	465	IMING.—Such report shall be filed by 3
466	466	January 31 of each year covering the prior calendar 4
467	467	year. 5
468	468	‘‘(d) R
469	469	EPORTS BYSUPERVISINGETHICSOFFICE.— 6
470	470	‘‘(1) I
471	471	N GENERAL.—Each supervising ethics of-7
472	472	fice shall annually make a public report about com-8
473	473	pliance by individuals within its jurisdiction with the 9
474	474	requirements of titles I or II. 10
475	475	‘‘(2) C
476	476	ONTENTS.—Such public report shall in-11
477	477	clude the following information: 12
478	478	‘‘(A) The overall compliance by such indi-13
479	479	viduals. 14
480	480	‘‘(B) The measures taken by the super-15
481	481	vising ethics office to ensure compliance. 16
482	482	‘‘(C) The efforts taken to enforce such re-17
483	483	quirements, including through the issuance of 18
484	484	fees or other sanctions. 19
485	485	‘‘(D) The rate of compliance with the en-20
486	486	forcement measures described under subpara-21
487	487	graph (C). 22
488	488	‘‘(E) The issuance of waivers, reductions, 23
489	489	temporary exemptions, and extensions for statu-24
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492	492	•HR 389 IH
493	493	tory requirements, rules, or enforcement meas-1
494	494	ures described under subparagraph (C). 2
495	495	‘‘(3) T
496	496	IMING.—Such public report shall be filed 3
497	497	by January 31 of each year covering the prior cal-4
498	498	endar year.’’. 5
499	499	SEC. 3. REFORMS TO FINANCIAL DISCLOSURE REQUIRE-6
500	500	MENTS. 7
501	501	(a) U
502	502	PDATED INCOME REPORTING REQUIRE-8
503	503	MENTS.—Section 102(a)(1)(B) of the Ethics in Govern-9
504	504	ment Act of 1978 (5 U.S.C. App. 102(a)(1)(B)) is amend-10
505	505	ed— 11
506	506	(1) in clause (vii), by adding at the end ‘‘or’’; 12
507	507	(2) in clause (viii), by striking ‘‘greater than 13
508	508	$1,000,000’’ through ‘‘not more than $5,000,000, 14
509	509	or’’ and inserting ‘‘greater than $1,000,000, in 15
510	510	which case the filer shall provide an indication of the 16
511	511	value of such income rounded to the nearest one 17
512	512	hundred thousand dollars.’’; and 18
513	513	(3) by striking clause (ix). 19
514	514	(b) I
515	515	NCREASEDTRANSPARENCY FOR INTERESTS IN 20
516	516	P
517	517	ROPERTY, LIABILITIES, TRANSACTIONS, ANDQUALI-21
518	518	FIEDBLINDTRUSTS.—Section 102(d)(1) of the Ethics in 22
519	519	Government Act of 1978 (5 U.S.C. App. 102(d)(1)) is 23
520	520	amended— 24
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523	523	•HR 389 IH
524	524	(1) in subparagraph (G), by adding at the end 1
525	525	‘‘and’’; 2
526	526	(2) by striking subparagraphs (H), (I), and (J); 3
527	527	and 4
528	528	(3) by inserting after subparagraph (G) the fol-5
529	529	lowing subparagraph: 6
530	530	‘‘(H) greater than $5,000,000, in which case 7
531	531	the filer shall provide an indication of the value 8
532	532	rounded to the nearest million dollars.’’. 9
533	533	(c) E
534	534	NDINGDISCLOSURE LOOPHOLE.—Section 10
535	535	102(e)(1) of the Ethics in Government Act of 1978 (5 11
536	536	U.S.C. App. 102(e)(1)) is amended— 12
537	537	(1) in the matter preceding subparagraph (A), 13
538	538	by striking ‘‘Except as provided in the last sentence 14
539	539	of this paragraph, each’’ and insert ‘‘Each’’; and 15
540	540	(2) by striking subparagraph (F). 16
541	541	(d) S
542	542	WIFTERDISCLOSURE OF CERTAINTRANS-17
543	543	ACTIONS.—Section 103 of the Ethics in Government Act 18
544	544	of 1978 (5 U.S.C. App. 103) is amended— 19
545	545	(1) in subsection (l), by striking ‘‘Not later 20
546	546	than’’ and inserting ‘‘Except as provided in sub-21
547	547	section (m), not later than’’; and 22
548	548	(2) by adding at the end the following sub-23
549	549	section: 24
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552	552	•HR 389 IH
553	553	‘‘(m) Not later than 14 days after receiving notifica-1
554	554	tion of any transaction required to be reported under sec-2
555	555	tion 102(a)(5)(B), where the value of the transaction is 3
556	556	$15,000 or greater, but in no case later than 21 days after 4
557	557	such transaction, the persons listed in subsection (l), if 5
558	558	required to file a report under any subsection of section 6
559	559	101, subject to any waivers and exclusions, shall file a re-7
560	560	port of the transaction. In such case, the filer does not 8
561	561	need to file an additional report of that transaction pursu-9
562	562	ant to subsection (l).’’. 10
563	563	(e) D
564	564	ISCLOSURE OFCRYPTOCURRENCY OR OTHER 11
565	565	D
566	566	IGITALASSETS.—Section 102(a) of the Ethics in Gov-12
567	567	ernment Act of 1978 (5 U.S.C. App. 102(a)) is amend-13
568	568	ed— 14
569	569	(1) in paragraph (3), by inserting ‘‘For pur-15
570	570	poses of this paragraph, ‘property’ includes 16
571	571	cryptocurrency or other digital assets that are issued 17
572	572	or transferred using distributed ledger or blockchain 18
573	573	technology including: virtual currencies, coins and 19
574	574	tokens or any other digital asset specified by regula-20
575	575	tions of a filer’s supervising ethics office.’’ after 21
576	576	‘‘similar financial institution.’’; and 22
577	577	(2) in paragraph (5)(B), by striking ‘‘other 23
578	578	forms of securities.’’ and inserting ‘‘other forms of 24
579	579	securities and in cryptocurrency or other digital as-25
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582	582	•HR 389 IH
583	583	sets that are issued or transferred using distributed 1
584	584	ledger or blockchain technology including: virtual 2
585	585	currencies, coins and tokens or any other digital 3
586	586	asset specified by regulations of a filer’s supervising 4
587	587	ethics office.’’. 5
588	588	(f) M
589	589	ANDATORY ELECTRONIC FILING.—Section 6
590	590	103(a) of the Ethics in Government Act of 1978 (5 U.S.C. 7
591	591	App. 103(a)) is amended by striking ‘‘or in which he will 8
592	592	serve.’’ and inserting ‘‘or in which the individual will serve 9
593	593	using the system for electronically filing reports imple-10
594	594	mented by that agency’s supervising ethics office.’’. 11
595	595	(g) S
596	596	UPERVISINGETHICSOFFICE.— 12
597	597	(1) A
598	598	DDED AUTHORITIES.—Section 111 of the 13
599	599	Ethics in Government Act of 1978 (5 U.S.C. App. 14
600	600	111) is amended— 15
601	601	(A) by striking ‘‘The provisions of this 16
602	602	title’’ and inserting ‘‘(a) The provisions of this 17
603	603	title’’; 18
604	604	(B) by striking ‘‘The Judicial Conference 19
605	605	may delegate any authority it has under this 20
606	606	title to an ethics committee established by the 21
607	607	Judicial Conference.’’; 22
608	608	(C) in paragraph (3) by striking ‘‘101(f).’’ 23
609	609	and inserting ‘‘101(f). The Judicial Conference 24
610	610	may delegate any authority it has under this 25
611	611	VerDate Sep 11 2014 06:16 Jan 27, 2023 Jkt 039200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\H389.IH H389
612	612	pbinns on DSKJLVW7X2PROD with $$_JOB 21
613	613	•HR 389 IH
614	614	title to an ethics committee established by the 1
615	615	Judicial Conference.’’; and 2
616	616	(D) by adding after subsection (a), as re-3
617	617	designated by this subsection, the following sub-4
618	618	section: 5
619	619	‘‘(b) Each supervising ethics office— 6
620	620	‘‘(1) shall develop and make available forms for 7
621	621	the reporting of information required by titles I or 8
622	622	II, including modifications to the system for elec-9
623	623	tronically filing reports implemented by that agen-10
624	624	cy’s supervising ethics office, as necessary; 11
625	625	‘‘(2) may issue rules or regulations imple-12
626	626	menting titles I or II; 13
627	627	‘‘(3) may establish procedures and promulgate 14
628	628	forms; 15
629	629	‘‘(4) may render advisory opinions interpreting 16
630	630	titles I or II in the same manner as authorized by 17
631	631	section 106(b)(7); 18
632	632	‘‘(5) may impose and collect fees as provided in 19
633	633	sections 104 and 203; 20
634	634	‘‘(6) shall notify any individual within its juris-21
635	635	diction of the changes to disclosure requirements, in-22
636	636	cluding revisions to the forms and electronic filing 23
637	637	system and any regulations issued by the supervising 24
638	638	ethics office; and 25
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641	641	•HR 389 IH
642	642	‘‘(7) shall provide a written notice about the 1
643	643	changes to titles I and II to any individual within its 2
644	644	jurisdiction within 15 days of any such change.’’. 3
645	645	(2) T
646	646	IMING.—For purposes of section 111(b)(1) 4
647	647	of the Ethics in Government Act of 1978, as added 5
648	648	by paragraph (1), the supervising ethics office shall 6
649	649	develop the first iteration of the form required under 7
650	650	such section within 90 days of the date of enactment 8
651	651	of the PORTFOLIO Act. 9
652	652	(h) E
653	653	FFECTIVEDATE.—The amendments made by 10
654	654	this section shall apply to any report due beginning 120 11
655	655	days after the date of the enactment of this Act, except 12
656	656	that the amendments made by subsection (f) shall apply 13
657	657	to any report due beginning 60 days after the date of the 14
658	658	enactment of this Act. 15
659	659	SEC. 4. NEW AND STRENGTHENED PENALTIES FOR NON-16
660	660	COMPLIANCE. 17
661	661	(a) P
662	662	ENALTIES FORFAILURETOTIMELYFILERE-18
663	663	PORTS; PUBLICATION OF FEESASSESSED.—Section 19
664	664	104(d) of the Ethics in Government Act of 1978 (5 U.S.C. 20
665	665	App. 104(d)) is amended— 21
666	666	(1) in the matter following paragraph (1)(B), 22
667	667	by striking ‘‘$200’’ and inserting ‘‘$500’’; 23
668	668	(2) by redesignating paragraph (2) as para-24
669	669	graph (5); 25
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672	672	•HR 389 IH
673	673	(3) by inserting after paragraph (1) the fol-1
674	674	lowing: 2
675	675	‘‘(2) For each subsequent 30-day period during which 3
676	676	the individual has not filed a report required to be filed 4
677	677	under this title, the individual shall be assessed an addi-5
678	678	tional filing fee equal to— 6
679	679	‘‘(A) $500; plus 7
680	680	‘‘(B) if the report is required under section 8
681	681	103(l), an amount equal to 10 percent of the actual 9
682	682	value of the transactions that should have been dis-10
683	683	closed on the report. 11
684	684	‘‘(3) By January 31 of the calendar year following 12
685	685	the enactment of the PORTFOLIO Act and in each year 13
686	686	thereafter, the supervising ethics office shall adjust the 14
687	687	$500 figure in paragraphs (1) and (2) in the same manner 15
688	688	that civil monetary penalties are annually adjusted for in-16
689	689	flation pursuant to section 4 of the Federal Civil Penalties 17
690	690	Inflation Adjustment Act of 1990 (28 U.S.C. 2461 note). 18
691	691	‘‘(4) With respect to a filing fee required to be paid 19
692	692	under this subsection, the supervising ethics office shall 20
693	693	make available, on a publicly accessible website, the fol-21
694	694	lowing information: 22
695	695	‘‘(A) The name and occupation of the individual 23
696	696	required to pay such fee. 24
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699	699	•HR 389 IH
700	700	‘‘(B) The amount of each such fee that such in-1
701	701	dividual is required to pay. 2
702	702	‘‘(C) The date on which the supervising ethics 3
703	703	office assessed each such fee described in subpara-4
704	704	graph (B). 5
705	705	‘‘(D) An indication as to whether such indi-6
706	706	vidual has paid each amount described in subpara-7
707	707	graph (B).’’; and 8
708	708	(4) by adding after paragraph (5), as redesig-9
709	709	nated by this subsection, the following paragraph: 10
710	710	‘‘(6) With respect to a waiver granted under para-11
711	711	graph (5), the supervising ethics office shall make avail-12
712	712	able the name and occupation of each recipient of such 13
713	713	waiver on a publicly accessible website.’’. 14
714	714	(b) E
715	715	FFECTIVEDATE.—The amendments made by 15
716	716	this section shall apply for any report due beginning 30 16
717	717	days after the date of enactment of this Act. 17
718	718	Æ
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