H.R. 1908 — End Congressional Stock Trading Act

This section prohibits Members of Congress and their spouses or dependent children from owning interests in or trading stocks, bonds, commodities, futures, or other securities—including hedge funds, derivatives, options, and complex investment vehicles—except as required for divestment. It requires divestment of such assets by current Members and their spouses or dependent children within 180 days of enactment (90 days for new Members), or within 5 years for interests in hedge funds, venture capital funds, or other privately held complex investment vehicles; assets received during service (e.g., inheritance) must be divested within 180 days. This section excepts from the prohibition: (1) diversified, widely held investment funds without conflicts of interest; (2) specified Alaska Native Claims Settlement Act settlement common stocks; (3) U.S. Treasury bills, notes, or bonds; (4) investment funds in federal, state, or local government employee retirement plans; (5) interests in small business concerns (as defined in 15 U.S.C. 632) without conflicts of interest; (6) assets received as compensation from a spouse's primary occupation; and (7) a spouse or dependent child trading non-owned assets in the course of the spouse's primary occupation. This section authorizes the Attorney General or Special Counsel to impose civil penalties of up to $100,000 per violation. It amends IRC §1043(b)(1) to permit nonrecognition of gain or loss for Members of Congress and their spouses or dependent children on divestitures required by this section, if certified within 60 days after divestment.