H.R.1599 - Dismantling Investments in Violation of Ethical Standards through Trusts Act (119th Congress)
Summary
H.R. 1599, the "Dismantling Investments in Violation of Ethical Standards through Trusts Act," aims to prevent conflicts of interest by restricting senior federal employees, their spouses, and dependent children from holding or transacting certain financial instruments. The bill amends Title 5 of the United States Code, introducing restrictions on investments like securities and commodities, while providing exceptions for diversified mutual funds, Treasury securities, and spousal/child compensation. It also establishes penalties for violations, including disgorgement of profits and civil fines, and mandates annual compliance certifications and audits by the Government Accountability Office (GAO).
Expected Effects
The bill's enactment would require senior federal employees to divest certain financial holdings or place them in qualified blind trusts. This could lead to a reduction in potential conflicts of interest and increased public trust in government officials. The legislation also empowers supervising ethics offices to enforce compliance and assess penalties for violations.
Potential Benefits
- Reduces potential conflicts of interest for senior federal employees.
- Increases public trust in government by ensuring impartiality.
- Promotes ethical conduct and accountability within the federal government.
- Provides clear guidelines and definitions for prohibited financial instruments.
- Establishes a framework for monitoring and enforcing compliance.
Potential Disadvantages
- May limit investment options for senior federal employees and their families.
- Could create administrative burdens for ethics offices in implementing and enforcing the regulations.
- Potential for unintended consequences or loopholes in the definitions of prohibited financial instruments.
- Possible challenges in valuing and disgorging profits from prohibited transactions.
- May deter qualified individuals from seeking senior federal positions due to financial restrictions.
Constitutional Alignment
The bill aligns with the principle of promoting public welfare and ensuring the integrity of government officials, as outlined in the Preamble of the US Constitution. Congress has the power to regulate the conduct of federal employees to prevent conflicts of interest, which falls under its implied powers to ensure the effective functioning of the government. The bill does not appear to infringe upon any specific constitutional rights or protections.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).