Summary

Prohibits Members of Congress and other defined covered congressional individuals from owning certain financial investments by adding a new federal conflict-of-interest chapter to title 5 of the U.S. Code, and instructs the tax code to treat that new chapter as a federal conflict-of-interest statute for purposes of the tax rules on sales of property. The House and Senate ethics committees are authorized to issue certificates of divestiture so covered individuals can meet the Internal Revenue Code’s requirements when they sell disallowed holdings. The measure only creates the new conflict-of-interest prohibition and the tax-code linkage; it does not appropriate funds or create other programmatic authorizations. It also inserts an entry for the new chapter into the chapter table of sections in title 5.

• Creates a new federal conflict-of-interest prohibition specific to Members of Congress and other covered congressional individuals by adding Chapter 131 to title 5, U.S. Code.
• Authorizes House and Senate ethics committees to issue certificates of divestiture for covered individuals who must sell disallowed investments.
• Amends the Internal Revenue Code so the new Chapter 131 is treated as a federal conflict-of-interest statute for purposes of section 1043 tax rules.
• Allows covered Members/staff to be treated as eligible persons under section 1043 and to use committee-issued certificates to satisfy tax-code requirements on sales due to conflicts.
• Adds an index/table entry to title 5 to reflect the new chapter but does not itself create policy changes.
• Does not appropriate funds or create new spending; administrative duties fall primarily to congressional ethics committees and affected individuals.
• Affects ownership and sale treatment of financial assets held by Members of Congress and covered staff, with tax-reporting implications.
• The short-title clause only provides a name and does not alter substantive law or create duties.