[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3388 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 3388

   To amend chapter 131 of title 5, United States Code, to prohibit 
  transactions involving certain financial instruments by Members of 
                               Congress.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 14, 2025

  Mr. Alford introduced the following bill; which was referred to the 
                   Committee on House Administration

_______________________________________________________________________

                                 A BILL


 
   To amend chapter 131 of title 5, United States Code, to prohibit 
  transactions involving certain financial instruments by Members of 
                               Congress.

    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 ``Preventing Elected Leaders from 
Owning Securities and Investments (PELOSI) Act''.

SEC. 2. BANNING INSIDER TRADING IN CONGRESS.

    (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 Congress

``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)); and
                            ``(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, a 
                        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 spouse or dependent child of a 
                        Member of Congress.
            ``(2) Dependent child; member of congress.--The terms 
        `dependent child' and `Member of Congress' have the meanings 
        given those terms in section 13101.
            ``(3) 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), a Member 
of Congress, or any spouse of a Member of Congress, may not, during the 
term of service of the Member of Congress, hold, purchase, or sell any 
covered financial instrument.
    ``(b) Exceptions.--The prohibition under subsection (a) shall not 
apply to a sale by a Member of Congress, or a spouse of a Member of 
Congress, that is completed by the date that is--
            ``(1) for a Member of Congress serving on the date of 
        enactment of the Preventing Elected Leaders from Owning 
        Securities and Investments (PELOSI) Act, 180 days after that 
        date of enactment; and
            ``(2) for any Member of Congress who commences service as a 
        Member of Congress after the date of enactment of the 
        Preventing Elected Leaders from Owning Securities and 
        Investments (PELOSI) Act, 180 days after the first date of the 
        initial term of service.
    ``(c) Penalties.--
            ``(1) Disgorgement.--A Member of Congress 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 Member of Congress 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 applicable supervising ethics committee under 
        section 13164.
``Sec. 13163. Certification of compliance
    ``(a) In General.--Not less frequently than annually, each Member 
of Congress shall submit to the applicable supervising ethics committee 
a written certification that the Member of Congress has achieved 
compliance with the requirements of this subchapter.
    ``(b) Publication.--The supervising ethics committees shall publish 
each certification submitted under subsection (a) on a publicly 
available website.
``Sec. 13164. Authority of supervising ethics committees
    ``(a) In General.--The supervising ethics committees may implement 
and enforce the requirements of this subchapter, including by--
            ``(1) issuing--
                    ``(A) for Members of Congress--
                            ``(i) rules governing that implementation; 
                        and
                            ``(ii) 1 or more reasonable extensions to 
                        achieve compliance with this subchapter, if the 
                        applicable supervising ethics committee 
                        determines that a Member of Congress is making 
                        a good faith effort to divest any covered 
                        financial instruments; and
                    ``(B) guidance relating to covered financial 
                instruments;
            ``(2) publishing on the internet certifications submitted 
        by Members of Congress under section 13163(a); and
            ``(3) assessing civil fines against any Member of Congress 
        who is in violation of this subchapter, subject to subsection 
        (b).
    ``(b) Requirements for Civil Fines.--
            ``(1) In general.--Before imposing a fine pursuant to this 
        section, the applicable supervising ethics committee shall 
        provide to the applicable Member of Congress--
                    ``(A) a written notice describing each covered 
                financial instrument transaction for which a fine will 
                be assessed; and
                    ``(B) an opportunity, with respect to each such 
                covered financial instrument transaction--
                            ``(i) for a hearing; and
                            ``(ii) to achieve compliance with the 
                        requirements of this subchapter.
            ``(2) Enforcement.--
                    ``(A) In general.--In the event of continuing 
                noncompliance after issuance of the notice described in 
                paragraph (1), the applicable supervising ethics 
                committee shall impose a civil penalty, in the amount 
                described in subparagraph (B), on the Member of 
                Congress to whom a notice was provided--
                            ``(i) on the date that is 30 days after the 
                        date of provision of the notice; and
                            ``(ii) during the period in which such 
                        noncompliance continues, not less frequently 
                        than once every 30 days thereafter.
                    ``(B) Amount.--The amount of each civil penalty 
                imposed on a Member of Congress pursuant to 
                subparagraph (A) shall be an amount equal to 10 percent 
                of the value of each covered financial instrument that 
                was not divested in violation of this subchapter during 
                the period covered by the penalty.
            ``(3) Publication.--Each supervising ethics committee shall 
        publish on a publicly available website a description of--
                    ``(A) each fine assessed by the supervising ethics 
                committee pursuant to this section;
                    ``(B) the reasons why each such fine was assessed; 
                and
                    ``(C) the result of each assessment, including any 
                hearing under paragraph (1)(B)(i) relating to the 
                assessment.
            ``(4) Appeal.--A Member of Congress may appeal the 
        assessment of a fine under this section to a vote on the floor 
        of the Senate or the House of Representatives, as applicable, 
        as a privileged motion.
``Sec. 13165. Audit by Government Accountability Office
    ``Not later than 2 years after the date of enactment of the 
Preventing Elected Leaders from Owning Securities and Investments 
(PELOSI) Act, the Comptroller General of the United States shall--
            ``(1) conduct an audit of the compliance by Members of 
        Congress 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) Conforming Amendments.--
            (1) Table of sections.--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. Certification of compliance.
``13164. Authority of supervising ethics committees.
``13165. Audit by Government Accountability Office.''.
            (2) Persons required to file.--Section 13103(f) of title 5, 
        United States Code, is amended--
                    (A) in paragraph (9), by striking ``as defined in 
                section 13101 of this title'';
                    (B) in paragraph (10), by striking ``as defined in 
                section 13101 of this title'';
                    (C) in paragraph (11), by striking ``as defined in 
                section 13101 of this title''; and
                    (D) in paragraph (12), by striking ``as defined in 
                section 13101 of this title''.
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