[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1138 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 1138
To amend title 5, United States Code, to prohibit transactions
involving certain financial instruments by Members of Congress and
their spouses, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 21, 2023
Mr. Nunn of Iowa (for himself and Mr. Stanton) introduced the following
bill; which was referred to the Committee on House Administration, and
in addition to the Committee on Ways and Means, 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
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A BILL
To amend title 5, United States Code, to prohibit transactions
involving certain financial instruments by Members of Congress and
their spouses, 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 ``Prohibit Insider Trading Act''.
SEC. 2. PROHIBITING TRANSACTIONS AND OWNERSHIP OF CERTAIN FINANCIAL
INSTRUMENTS BY MEMBERS OF CONGRESS AND THEIR SPOUSES.
(a) In General.--Chapter 131 of title 5, United States Code, is
amended by adding after subchapter III the following:
``SUBCHAPTER IV--RESTRICTIONS REGARDING FINANCIAL INSTRUMENTS
``Sec. 13151. Definitions
``In this subchapter--
``(1) the term `covered financial instrument'--
``(A) means--
``(i) any investment in--
``(I) a security (as defined in
section 3(a) of Securities Exchange Act
of 1934 (15 U.S.C. 78c(a)));
``(II) a security future (as
defined in that section); or
``(III) a commodity (as defined in
section 1a of the Commodity Exchange
Act (7 U.S.C. 1a)); and
``(ii) any economic interest comparable to
an interest described in subclause (I) that is
acquired through synthetic means, such as the
use of a derivative, including an option,
warrant, or other similar means; and
``(B) does not include--
``(i) a diversified mutual fund;
``(ii) a diversified exchange-traded fund;
``(iii) any investment in the Thrift
Savings Plan; or
``(iv) a United States Treasury bill, note,
or bond;
``(2) the term `Member of Congress' has the meaning given
that term in section 13101;
``(3) the term `supervising ethics office' has the meaning
given that term in section 13101; and
``(4) the term `qualified blind trust' has the meaning
given that term in section 13104(f)(3).
``Sec. 13152. Prohibition on certain transactions and holdings
involving covered financial instruments
``(a) Prohibition.--Except as provided in subsection (b), a Member
of Congress and the Member's spouse may not, during the term of service
of the Member, hold, purchase, or sell any covered financial
instrument.
``(b) Exceptions.--The prohibition under subsection (a)--
``(1) shall begin to apply with respect to a Member of
Congress who commences service as a Member after the date of
enactment of this subchapter on the date that is seven days
after the first date of the initial term of service; and
``(2) does not apply to a covered financial instrument held
in a qualified blind trust operated on behalf of, or for the
benefit of, a Member of Congress or the Member's spouse.
``(c) Penalties.--
``(1) Disgorgement.--A Member of Congress and the Member's
spouse shall disgorge to the general fund of the Treasury any
profit from a transaction or holding involving a covered
financial instrument that is conducted in violation of this
section.
``(2) Income tax.--A loss from a transaction or holding
involving a covered financial instrument that is conducted in
violation of this section may not be deducted from the amount
of income tax owed by the applicable Member of Congress or the
Member's spouse.
``(3) Fines.--A Member of Congress who holds or conducts a
transaction involving a covered financial instrument in
violation of this section may be subject to a civil fine as
described under section 13106(a).
``Sec. 13153. Supervising ethics office certification of compliance and
audit
``(a) Certification.--
``(1) In general.--Not later than seven days after the
beginning of any session of Congress, each Member of Congress
shall submit to the supervising ethics office a written
certification that the Member and the Member's spouse has
achieved compliance with the requirements of this subchapter.
``(2) Publication.--The supervising ethics office shall
publish each certification submitted under paragraph (1) on a
publicly available website.
``(b) Audit.--Not less than every two years, the supervising ethics
office shall conduct an audit of the compliance by Members of Congress
with the requirements of this subchapter.''.
(b) Clerical Amendment.--The table of sections for such chapter 131
is amended by inserting after the item relating to section 13146 the
following:
``subchapter iv--restrictions regarding financial instruments
``13151. Definitions.
``13152. Prohibition on certain transactions and holdings involving
covered financial instruments.
``13153. Supervising ethics office certification of compliance and
audit.''.
(c) Application.--The amendments made by subsection (a) shall begin
to apply to Members of Congress and their spouses on the first day of
the second session of the One Hundred Eighteenth Congress.
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