[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6401 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 6401
To prohibit Members of Congress from purchasing or selling certain
investments, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 26, 2020
Mr. Krishnamoorthi (for himself, Ms. Ocasio-Cortez, and Mr. Neguse)
introduced the following bill; which was referred to the Committee on
Financial Services, and in addition to the Committees on Agriculture,
and House Administration, for a period to be subsequently determined by
the Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To prohibit Members of Congress from purchasing or selling certain
investments, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Ban Conflicted Trading Act''.
SEC. 2. DEFINITIONS.
In this Act--
(1) the term ``commodity'' has the meaning given the term
in section 1a of the Commodity Exchange Act (7 U.S.C. 1a);
(2) the term ``covered investment''--
(A) means investment in a security, a commodity, or
a future, or any comparable economic interest acquired
through synthetic means such as the use of a
derivative; and
(B) does not include--
(i) a widely held investment fund described
in section 102(f)(8) of the Ethics in
Government Act of 1978 (5 U.S.C. App.); or
(ii) a United States Treasury bill, note,
or bond;
(3) the term ``covered person'' means--
(A) a sitting Member of Congress; and
(B) an individual employed as an officer or
employee of Congress required to file a report under
the Ethics in Government Act of 1978 (5 U.S.C. App.);
(4) 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
instrument, at a predetermined future date and price; and
(5) 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)).
SEC. 3. PROHIBITIONS.
(a) Transactions.--Except as provided in sections 4 and 5, no
covered person may--
(1) purchase or sell any covered investment; or
(2) enter into a transaction that creates a net short
position in any security.
(b) Positions.--A covered person may not serve as an officer or
member of any board of any for-profit association, corporation, or
other entity.
SEC. 4. EXCEPTIONS.
(a) Investments Held Before Taking Office.--
(1) In general.--A covered person may have control over or
knowledge of the management of any covered investment held by
the covered person as of the day before the date on which the
covered person took office.
(2) Prohibition on purchasing or selling.--A covered person
may not buy or sell any investment described in paragraph (1)
except in the case of--
(A) placing the investment in a qualified blind
trust described in section 5; or
(B) divesting themselves of any investment under
subsection (b).
(b) Divestiture.--A covered person may sell a covered investment
during the 6-month period beginning on--
(1) the date on which the covered person takes office or
begins employment, as applicable; or
(2) the date of enactment of this Act.
SEC. 5. TRUSTS.
(a) In General.--On a case-by-case basis, the Select Committee on
Ethics may authorize a covered person to place their securities
holdings in a qualified blind trust approved by the committee under
section 102(f) of the Ethics in Government Act of 1978 (5 U.S.C. App.).
(b) Blind Trust.--A blind trust permitted under this subsection
shall meet the criteria in section 102(f)(4)(B) of the Ethics in
Government Act of 1978 (5 U.S.C. App.), unless an alternative
arrangement is approved by the Select Committee on Ethics.
SEC. 6. ADMINISTRATION AND ENFORCEMENT.
(a) Administration.--
(1) In general.--The provisions of this Act shall be
administered by the Select Committee on Ethics of the Senate
and the Committee on Ethics of the House of Representatives.
(2) Guidance.--The Select Committee on Ethics of the Senate
and the Committee on Ethics of the House of Representatives are
authorized to issue guidance on any matter contained in this
Act, including--
(A) whether a covered person may hold an employee
stock option, or similar instrument, that had not
vested before the date on which the covered person was
elected; and
(B) the process and timeline for when a covered
person shall no longer serve as an officer or member of
any board of any for-profit association, corporation,
or other entity.
(b) Enforcement.--Whoever knowingly fails to comply with this Act
shall be subject to a civil penalty of not less than 10 percent of the
value of the covered investment that was purchased or sold or the
security in which a net short position was created in violation of this
Act, as applicable.
<all>