REVEAL Act

not have a stated policy of concentrating its investments in any industry, business, single country other than the United States, or bonds of a single State within the United States except for the State in which the Member of Congress resides. ``(6) Future.--The term `future' means a financial contract obligating the buyer to purchase an asset or the seller to sell an asset, such as a physical commodity or a financial investment, at a predetermined future date and price. ``(7) Political appointee.--The term `political appointee' means an individual-- ``(A) occupying a position described under sections 5312 through 5316 of this title (relating to the Executive Schedule); ``(B) serving under a noncareer appointment in the Senior Executive Service, as defined under paragraph (7) of section 3132(a) of this title; or ``(C) occupying a position in the executive branch of the Government of a confidential or policy- determining character under schedule C of subpart C of part 213 of title 5, Code of Federal Regulations. ``(8) 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)). ``(9) Small business concern.--The term `small business concern' has the meaning given that term under section 3 of the Small Business Act (15 U.S.C. 632). ``(10) Supervising ethics office.--The term `supervising ethics office'-- ``(A) has the meaning given the term in section 13101 of this title; and ``(B) in the case of an independent agency, means the Office of Government Ethics. ``Sec. 13152. Trading on prediction markets ``(a) Conduct During Federal Service.--No covered individual may enter into, or offer to enter into an agreement, contract, or transaction that provides for any purchase, sale, payment, or delivery of an excluded commodity (as defined in section 1a of the Commodity Exchange Act (7 U.S.C. 1a)), that is dependent on the occurrence, nonoccurrence, or the extent of the occurrence of a specific event or contingency. ``(b) Rule of Construction.--Nothing in subsection (a) shall be construed to apply to insurance for which the insured holds a lawful insurable interest. ``(c) Interpretative Guidance.--The supervising ethics office shall issue interpretive guidance on any relevant term not defined in this section. ``Sec. 13153. Trade and ownership of covered investments ``(a) Conduct During Federal Service.--Except as described in subsection (b)(1)(B) and subsections (d) through (f), no covered individual may, directly or indirectly, own or trade a covered investment. ``(b) Compliance.-- ``(1) Requirement.--To comply with subsection (a)-- ``(A) a covered individual may not purchase a covered investment; and ``(B) a covered individual shall divest of any covered investment by the effective date established in paragraph (2) at fair market value. ``(2) Effective date.--The effective date is established as follows: ``(A) 180 days after the date of the enactment of this subchapter for an individual who is a covered individual on such date. ``(B) 90 days within the date on which an individual becomes a covered individual if such date occurs after the date of enactment of this subchapter. ``(c) Certificates of Divestiture.-- ``(1) Application of certificate of divestiture program.-- For purposes of section 1043 of the Internal Revenue Code of 1986-- ``(A) this section shall be treated as a Federal conflict of interest statute; ``(B) any covered individual described in subparagraphs (A), (B), (C), (D), (E), and (G) of section 13151(2) shall be treated as an eligible person described in section 1043(b)(1)(A) of such Code; and ``(C) any spouse or dependent child described in section 13151(2)(F) shall be treated as an eligible person described in section 1043(b)(1)(B) of such Code. ``(2) Issuance of certificate of divestiture.-- ``(A) In general.--Each supervising ethics office shall issue a certificate of divestiture to each covered individual required to divest under this subchapter upon submission of proof of compliance by such individual with the requirements to divest or any extensions granted by the supervising ethics office. ``(B) Eligibility.--Such certificate shall include an identification of each specific property eligible for the application of the certificate of divestiture program as determined by the supervising ethics office. ``(d) Occupational Exception.--A spouse or dependent child of a Member of Congress may trade any covered investment if such covered investment is not owned by a covered individual and if such trade is performed as a function of the primary occupation of the spouse or dependent child. ``(e) Trusts.-- ``(1) Qualified blind trust.--Any covered investment held in a qualified blind trust as defined in section 13104(f)(3) shall be divested in accordance with subsection (b)(1)(B) by the effective date established in subsection (b)(2). ``(2) Family trust.--A supervising ethics office may grant an exemption for covered investments held in a family trust only if-- ``(A) no covered individual-- ``(i) is a grantor of the family trust; ``(ii) contributed any covered investment 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 individual. ``(3) Requests.--A covered individual seeking an exemption under paragraph (2) 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. ``(f) Assets Acquired in Special Circumstances.--In the event that a covered individual acquires a covered investment after the date of enactment of the REVEAL Act other than by purchase (such as by marriage, inheritance, divorce settlement, or other circumstance), the covered individual shall have 90 days from the date on which such investment was acquired to divest such covered investment at fair market value. ``(g) Extension.--A supervising ethics office may grant a covered individual an extension of time to comply with a divestment deadline under this section if a covered investment cannot be divested by such deadline due to low liquidity, vesting schedules, or contractual restrictions. ``(h) Interpretative Guidance.--The supervising ethics office shall issue interpretive guidance on any relevant term not defined in this section. ``Sec. 13154. Penalties ``(a) In General.-- ``(1) Penalties.--Any covered individual who violates the restrictions in section 13152 or 13153 of this title shall, at the direction of the supervising ethics office-- ``(A) pay a fee equal to 10 percent of the value of the agreement, contract, or transaction in violation; and ``(B) disgorge the profits of any agreement, contract, or transaction that violates the provisions of such section 13152 or 13153. ``(2) Payment of penalty to treasury.--A penalty imposed under paragraph (1)(B) shall be payable into the Treasury. ``(b) Payment Restrictions.--A covered individual may not pay any of the penalties under this section from the following sources: ``(1) The Members' Representational Allowance. ``(2) The Senators' Official Personnel and Office Expense Account. ``(3) Any contribution (as defined in section 301(8) of the Federal Election Campaign Act of 1971 (52 U.S.C. 30101(8))) accepted as a candidate, and any other donation received as support for activities of the individual as a holder of Federal office. ``(4) Any other source of funds, other than a salary, available to such individual through employment or service in the Federal Government. ``(c) Publication.--Each supervising ethics office shall publish on a publicly available website a description of-- ``(1) each fine assessed by the supervising ethics office pursuant to this section; ``(2) the reason why each such fine was assessed; and ``(3) the result of each assessment.''. (b) Table of Contents.--The table of contents for chapter 131 of title 5, United States Code, is amended by adding at the end the following: subchapter iv. prohibitions relating to prediction markets and covered investments 13151. Definitions. 13152. Trading on prediction markets. 13153. Trade and ownership of covered investments. 13154. Penalties. <all>