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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3388 Introduced in House (IH)]
<DOC>
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''.
<all>
Introduced in House
Sponsor introductory remarks on measure. (CR H2041-2042)
Introduced in House
Referred to the House Committee on House Administration.
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