I 112th CONGRESS 2d Session H. R. 4009 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.

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.

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.