[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 693 Introduced in Senate (IS)]
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118th CONGRESS
1st Session
S. 693
To amend chapter 131 of title 5, United States Code, to prohibit
certain executive branch officials from holding individual stocks, and
for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 7, 2023
Mr. Hawley introduced the following bill; which was read twice and
referred to the Committee on Homeland Security and Governmental Affairs
_______________________________________________________________________
A BILL
To amend chapter 131 of title 5, United States Code, to prohibit
certain executive branch officials from holding individual stocks, 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 ``Eliminating Executive Branch Insider
Trading Act''.
SEC. 2. SENSE OF CONGRESS.
It is the sense of Congress that executive branch officials should
not have a personal financial interest in the outcome of Government
policy decisions.
SEC. 3. BANNING INSIDER TRADING IN THE EXECUTIVE BRANCH.
(a) In General.--Chapter 131 of title 5, United States Code, is
amended by adding at the end the following:
``Subchapter IV--Banning Insider Trading in the Executive Branch
``Sec. 13161. Definitions
``In this subchapter:
``(1) Covered financial instrument.--
``(A) In general.--The term `covered financial
instrument' 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)); or
``(ii) any economic interest comparable to
an interest described in clause (i) that is
acquired through synthetic means, such as the
use of a derivative, including an option,
warrant, or other similar means.
``(B) Exclusions.--The term `covered financial
instrument' does not include--
``(i) a diversified mutual fund;
``(ii) a diversified exchange-traded fund;
``(iii) a United States Treasury bill,
note, or bond; or
``(iv) compensation from the primary
occupation of a covered individual who is a
spouse or dependent of an individual described
in subparagraphs (A) through (E) of paragraph
(2).
``(2) Covered individual.--The term `covered individual'
means--
``(A) the President;
``(B) the Vice President;
``(C) each officer or employee in the executive
branch, including a special Government employee as
defined in section 202 of title 18, who occupies a
position classified GS-15 or above of the General
Schedule or, in the case of positions not under the
General Schedule, for which the rate of basic pay is
equal to or greater than 120 percent of the minimum
rate of basic pay payable for GS-15 of the General
Schedule;
``(D) each member of a uniformed service whose pay
grade is at or in excess of O-7 under section 201 of
title 37;
``(E) each officer or employee in any other
position determined by the Director of the Office of
Government Ethics to be of equal classification to the
positions described in subparagraphs (C) and (D); and
``(F) the spouse of any individual described in
subparagraphs (A) through (E).
``(3) Qualified blind trust.--The term `qualified blind
trust' has the meaning given the term in section 13104(f)(3).
``(4) Supervising ethics committee.--The term `supervising
ethics committee' means, as applicable--
``(A) the Select Committee on Ethics of the Senate;
and
``(B) the Committee on Ethics of the House of
Representatives.
``Sec. 13162. Prohibition on certain transactions and holdings
involving covered financial instruments
``(a) Prohibition.--Except as provided in subsection (b), covered
individual, or any spouse of a covered individual, may not, during the
term of service of the covered individual, hold, purchase, or sell any
covered financial instrument.
``(b) Exceptions.--The prohibition under subsection (a) shall not
apply to--
``(1) a sale by a covered individual, or a spouse of a
covered individual, that is completed by the date that is--
``(A) for a covered individual serving on the date
of enactment of the Eliminating Executive Branch
Insider Trading Act, 180 days after that date of
enactment; and
``(B) for any covered individual who commences
service as a covered individual after the date of
enactment of Eliminating Executive Branch Insider
Trading Act, 180 days after the first date of the
initial term of service; or
``(2) a covered financial instrument held in a qualified
blind trust operated on behalf of, or for the benefit of, the
covered individual or spouse of the covered individual.
``(c) Penalties.--
``(1) Disgorgement.--A covered individual shall disgorge to
the Treasury of the United States any profit from a transaction
or holding involving a covered financial instrument that is
conducted in violation of this section.
``(2) Fines.--A covered individual who holds or conducts a
transaction involving, or whose spouse holds or conducts a
transaction involving, a covered financial instrument in
violation of this section may be subject to a civil fine
assessed by the Attorney General under section 13163.
``Sec. 13163. Civil penalties
``(a) Civil Action.--The Attorney General may bring a civil action
in any appropriate United States district court against any covered
individual who violates any provision of section 13162.
``(b) Civil Penalty.--The court in which any action is brought
under subsection (a) may assess against a covered individual a civil
penalty of not more than $10,000 or the amount of compensation, if any,
that the covered individual received for the prohibited conduct,
whichever is greater.
``Sec. 13164. Audit by Government Accountability Office
``Not later than 2 years after the date of enactment of the
Eliminating Executive Branch Insider Trading Act, and annually
thereafter, the Comptroller General of the United States shall--
``(1) conduct an audit of the compliance by a
representative sample of covered individuals with the
requirements of this subchapter; and
``(2) submit to the supervising ethics committees a report
describing the results of the audit conducted under paragraph
(1).''.
(b) Clerical Amendment.--The table of sections for chapter 131 of
title 5, United States Code, is amended by adding at the end the
following:
``subchapter iv--banning insider trading in congress
``13161. Definitions.
``13162. Prohibition on certain transactions and holdings involving
covered financial instruments.
``13163. Civil penalties.
``13164. Audit by Government Accountability Office.''.
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