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H.R. 5106: Restore Trust in Congress Act

This bill, known as the Restore Trust in Congress Act, aims to establish significant restrictions on Members of Congress and their immediate families regarding stock ownership and trading. The key points of the bill are outlined below:

Definitions

The bill introduces several terms that define the individuals and investments covered under the new rules:

Covered individual: This includes Members of Congress, their spouses, and dependent children.
Covered investment: Refers to stocks, securities, commodities, and other financial interests, excluding certain government securities and widely held diversified investment funds.

Prohibitions on Trading and Ownership

Under this legislation:

Covered individuals are prohibited from owning or trading covered investments directly or indirectly during their time in office.
They must divest any existing covered investments, with specific timelines based on when they became a covered individual.
The divestment must occur at fair market value.

Compliance and Deadlines

The bill sets explicit deadlines for compliance:

For current Members as of the enactment date, the divestment deadline is 180 days.
For new covered individuals, the deadline is within 90 days of becoming a covered individual.

Trusts

If covered investments are held in trusts:

Investments in a qualified blind trust must also be divested according to the established rules.
Some exemptions may apply to investments held in family trusts if specific criteria are met.

Exceptions

There are exceptions for trading by spouses or dependent children, provided that the trade does not involve ownership by the covered individual and occurs as part of their primary occupation.