US HB1756

Members of Congress, their spouses, and dependent children are prohibited from owning or trading stock, bonds, commodities, futures, or other securities in covered defense contractors or defense industrial base entities, including hedge funds and derivatives

Current members must divest prohibited assets within 120 days of enactment (180 days for hedge funds, venture capital, or private investment vehicles); new members face the same deadlines from their start date

Covered defense contractors include any person or entity with a Department of Defense contract, excluding higher education institutions and non-profit medical facilities; the prohibition applies to contractors active within the preceding 5 years

Exceptions allow ownership of diversified widely-held investment funds, U.S. Treasury securities, government retirement plans, Alaska Native Claims Settlement Stock, and diversified registered investment companies

Violations carry civil penalties up to $50,000 per violation, enforceable by the Attorney General or Special Counsel; the bill also provides tax-free treatment for capital gains on required divestitures through amendments to Internal Revenue Code section 1043