[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4009 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 4009

  To prohibit Members of Congress, senior congressional staffers, and 
  administration executives from making certain purchases or sales of 
   registered securities, futures, swaps, security futures products, 
   security-based swaps, and options, to prohibit bonus payments to 
   executives at Fannie Mae and Freddie Mac, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 9, 2012

   Mr. Issa introduced the following bill; which was referred to the 
 Committee on Financial Services, and in addition to the Committees on 
House Administration and Oversight and Government Reform, 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, senior congressional staffers, and 
  administration executives from making certain purchases or sales of 
   registered securities, futures, swaps, security futures products, 
   security-based swaps, and options, to prohibit bonus payments to 
   executives at Fannie Mae and Freddie Mac, 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. LIMITATIONS ON DISCRETION OVER INVESTMENTS IN REGISTERED 
              SECURITIES.

    (a) In General.--Members of Congress, senior congressional 
staffers, and administration executives are prohibited from the 
purchase or sale of registered securities, futures, swaps, security 
futures products, security-based swaps, and options on such securities, 
futures, and swaps, subject to exceptions for the purchase or sale of--
            (1) exchange traded funds, exchange traded notes, and 
        mutual funds registered with the Securities and Exchange 
        Commission that contain greater than 10 single name securities;
            (2) commodity-based swaps, futures, exchange traded funds 
        and exchange traded notes;
            (3) security-based swaps or security futures products whose 
        value is not primarily dependent on 10 or fewer single name 
        securities;
            (4) Treasury, State, and municipal securities;
            (5) options on any investments described under paragraphs 
        (1) through (4); and
            (6) securities, security-based swaps, and security futures 
        products whose value is primarily dependent on 10 or fewer 
        single name securities, or options on such investments, subject 
        to--
                    (A) preapproval by the Securities and Exchange 
                Commission;
                    (B) compliance with a written contract relying on 
                any of the affirmative defenses available under section 
                240.10b5-1(c)(1) of title 17, Code of Federal 
                Regulations, where such written contract is executed 
                and delivered to the Securities and Exchange 
                Commission, or its designated agent, at least 30 days 
                prior to the date of the first scheduled purchase or 
                sale transaction; or
                    (C) such purchase or sale being made on behalf of 
                such person by a qualified blind trust (as defined 
                under section 102(f)(3) of the Ethics in Government Act 
                of 1978), where notice of the execution of a blind 
                trust agreement is provided to the Securities and 
                Exchange Commission, or its designated agent, not later 
                than 3 days after executing such agreement.
    (b) Penalty.--Any person who violates subsection (a) shall be 
subject to the provisions of section 240.10b5-1 of title 17, Code of 
Federal Regulations, relating to material nonpublic information 
received in the course of employment.
    (c) Definitions.--For purposes of this section:
            (1) Administration executives.--The term ``administration 
        executive'' means--
                    (A) the President;
                    (B) the Vice President;
                    (C) any position in the executive branch the 
                appointment to which is made by the President and 
                requires advice and consent of the Senate; or
                    (D) an officer or employee of the executive branch, 
                including all Federal agencies, who, for at least 60 
                days, occupies a position 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.
            (2) Member of congress.--The term ``Member of Congress'' 
        means a member of the Senate or House of Representatives, a 
        Delegate to the House of Representatives, or the Resident 
        Commissioner from Puerto Rico.
            (3) Senior congressional staffer.--The term ``senior 
        congressional staffer'' means an officer or employee of the 
        legislative branch who, for at least 60 days, occupies a 
        position 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) Effective Date.--This section shall take effect after the end 
of the 270-day period beginning on the date of the enactment of this 
Act.

SEC. 2. LIMITATION ON BONUSES TO EXECUTIVES OF FANNIE MAE AND FREDDIE 
              MAC.

    Notwithstanding any other provision in law, senior executives at 
the Federal National Mortgage Association and the Federal Home Loan 
Mortgage Corporation are prohibited from receiving bonuses during any 
period of conservatorship for those entities on or after the date of 
enactment of this Act.
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