[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1903 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                S. 1903

   To prohibit commodities and securities trading based on nonpublic 
 information relating to Congress, to require additional reporting by 
 Members and employees of Congress of securities transactions, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 17, 2011

  Mrs. Gillibrand (for herself, Mr. Tester, Ms. Stabenow, Mr. Durbin, 
     Mrs. McCaskill, Ms. Klobuchar, Mr. Rubio, and Mr. Blumenthal) 
introduced the following bill; which was read twice and referred to the 
        Committee on Homeland Security and Governmental Affairs

_______________________________________________________________________

                                 A BILL


 
   To prohibit commodities and securities trading based on nonpublic 
 information relating to Congress, to require additional reporting by 
 Members and employees of Congress of securities transactions, 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 ``Stop Trading on Congressional 
Knowledge Act''.

SEC. 2. NONPUBLIC INFORMATION RELATING TO CONGRESS AND OTHER FEDERAL 
              EMPLOYEES.

    (a) Commodities Transactions.--Section 4c of the Commodity Exchange 
Act (7 U.S.C. 6c) is amended by adding at the end the following:
    ``(h) Nonpublic Information.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Agency.--The term `agency' has the meaning 
                given the term in section 551 of title 5, United States 
                Code.
                    ``(B) Material nonpublic information.--The term 
                `material nonpublic information'--
                            ``(i) has the meaning given the term by the 
                        Commission by rule;
                            ``(ii) includes any information that--
                                    ``(I) a member or employee of 
                                Congress, or an employee of an agency, 
                                as applicable, gains by reason of that 
                                position or employment; and
                                    ``(II) the member or employee knows 
                                or should know has not been made 
                                available to the general public; and
                            ``(iii) includes information that--
                                    ``(I) is routinely exempt from 
                                disclosure under section 552 of title 
                                5, United States Code, or otherwise 
                                protected from disclosure by law 
                                (including Executive orders and 
                                regulations);
                                    ``(II) is designated as 
                                confidential by an agency; or
                                    ``(III) has not actually been 
                                disseminated to the general public and 
                                is not authorized to be made available 
                                to the public on request.
            ``(2) Nonpublic information relating to congress.--Not 
        later than 270 days after the date of enactment of this 
        subsection, the Commission shall by rule prohibit any person 
        from buying or selling any commodity for future delivery or 
        swap while the person is in possession of material nonpublic 
        information relating to any pending or prospective legislative 
        action relating to the commodity if--
                    ``(A)(i) the information was obtained by reason of 
                the person being a Member or employee of Congress; or
                    ``(ii)(I) the information was obtained from a 
                Member or employee of Congress; and
                    ``(II) the person knows that the information was so 
                obtained; and
                    ``(B) the person acted with the intent to assist 
                another person, directly or indirectly, to use the 
                information to enter into, or offer to buy or sell the 
                securities of such publicly traded company based on 
                such information.
            ``(3) Nonpublic information relating to other federal 
        employees.--Not later than 270 days after the date of enactment 
        of this subsection, the Commission shall by rule prohibit any 
        person from buying or selling any commodity for future delivery 
        or swap while the person is in possession of material nonpublic 
        information derived from Federal employment and relating to the 
        commodity if--
                    ``(A)(i) the information was obtained by reason of 
                the person being an employee of an agency; or
                    ``(ii)(I) the information was obtained from an 
                employee of an agency; and
                    ``(II) the person knows that the information was so 
                obtained; and
                    ``(B) the person acted with the intent to assist 
                another person, directly or indirectly, to use the 
                information to enter into, or offer to buy or sell the 
                securities of such publicly traded company based on 
                such information.''.
    (b) Securities Transactions.--
            (1) Definitions.--As used in this subsection--
                    (A) the term ``agency'' has the same meaning as in 
                section 551(1) of title 5, United States Code;
                    (B) the term ``Commission'' means the Securities 
                and Exchange Commission; and
                    (C) the term ``material nonpublic information''--
                            (i) has the meaning given that term by rule 
                        of the Commission; and
                            (ii) includes any information that a member 
                        or employee of Congress or an employee of an 
                        agency, as applicable, gains by reason of such 
                        position or employment, and that such member or 
                        employee knows or should know has not been made 
                        available to the general public, including 
                        information that--
                                    (I) is routinely exempt from 
                                disclosure under section 552 of title 
                                5, United States Code, or otherwise 
                                protected from disclosure by statute, 
                                Executive Order, or regulation;
                                    (II) is designated as confidential 
                                by an agency; or
                                    (III) has not actually been 
                                disseminated to the general public and 
                                is not authorized to be made available 
                                to the public on request.
            (2) Nonpublic information relating to congress.--Not later 
        than 270 days after the date of enactment of this Act, the 
        Commission shall, by rule, prohibit any person from buying or 
        selling the securities or security-based swaps of any issuer 
        while such person is in possession of material nonpublic 
        information relating to any pending or prospective legislative 
        action relating to such issuer, if--
                    (A)(i) such information was obtained by reason of 
                such person being a Member or employee of Congress; or
                    (ii) such information was obtained from a Member or 
                employee of Congress, and such person knows that the 
                information was so obtained;
                    (B) the person acted with the intent to assist 
                another person, directly or indirectly, to use the 
                information to enter into, or offer to buy or sell the 
                securities of such publicly traded company based on 
                such information.
            (3) Nonpublic information relating to other federal 
        employees.--Not later than 270 days after the date of enactment 
        of this subsection, the Commission shall, by rule, prohibit any 
        person from buying or selling the securities or security-based 
        swaps of any issuer while such person is in possession of 
        material nonpublic information derived from Federal employment 
        and relating to such issuer, if--
                    (A)(i) such information was obtained by reason of 
                such person being an employee of an agency; or
                    (ii) such information was obtained from such an 
                employee, and such person knows that the information 
                was so obtained; and
                    (B) the person acted with the intent to assist 
                another person, directly or indirectly, to use the 
                information to enter into, or offer to buy or sell the 
                securities of such publicly traded company based on 
                such information.

SEC. 3. AMENDMENT TO THE RULES OF THE SENATE REGARDING FINANCIAL 
              TRADING BASED ON NONPUBLIC INFORMATION.

    Rule XXXVII of the Standing Rules of the Senate is amended by--
            (1) redesignating paragraph 15 as paragraph 16; and
            (2) inserting at the end the following:
    ``15. A Member, officer, or employee of the Senate shall not--
            ``(1) disclose material nonpublic information relating to 
        any pending or prospective legislative action relating to any 
        publicly traded company if that Member, officer, or employee 
        acts with the intent to assist another person, directly or 
        indirectly, to use the information to enter into, or offer to 
        buy or sell the securities of such publicly traded company 
        based on such information; or
            ``(2) disclose material nonpublic information relating to 
        any pending or prospective legislative action relating to any 
        commodity if that Member, officer, or employee acts with the 
        intent to assist another person, directly or indirectly, to use 
        the information to enter into, or offer to buy or sell the 
        securities of such publicly traded company based on such 
        information.''.

SEC. 4. TIMELY REPORTING OF FINANCIAL TRANSACTIONS.

    (a) Reporting Requirement.--Section 103 of the Ethics in Government 
Act of 1978 is amended by adding at the end the following subsection:
    ``(l) Within 90 days after the purchase, sale, or exchange of any 
stocks, bonds, commodities futures, or other forms of securities that 
are otherwise required to be reported under this Act and the 
transaction of which involves at least $1,000 by any Member of Congress 
or officer or employee of the legislative branch required to so file, 
that Member, officer, or employee shall file a report of that 
transaction with the Clerk of the House of Representatives in the case 
of a Representative in Congress, a Delegate to Congress, or the 
Resident Commissioner from Puerto Rico, or with the Secretary of the 
Senate in the case of a Senator.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to transactions occurring on or after the date that is 90 days 
after the date of the enactment of this Act.

SEC. 5. DISCLOSURE OF POLITICAL INTELLIGENCE ACTIVITIES UNDER LOBBYING 
              DISCLOSURE ACT.

    (a) Definitions.--Section 3 of the Lobbying Disclosure Act of 1995 
(2 U.S.C. 1602) is amended--
            (1) in paragraph (2)--
                    (A) by inserting after ``lobbying activities'' each 
                place that term appears the following: ``or political 
                intelligence activities''; and
                    (B) by inserting after ``lobbyists'' the following: 
                ``or political intelligence consultants''; and
            (2) by adding at the end the following new paragraphs:
            ``(17) Political intelligence activities.--The term 
        `political intelligence activities' means political 
        intelligence contacts and efforts in support of such contacts, 
        including preparation and planning activities, research, and 
        other background work that is intended, at the time it is 
        performed, for use in contacts, and coordination with such 
        contacts and efforts of others.
            ``(18) Political intelligence contact.--
                    ``(A) Definition.--The term `political intelligence 
                contact' means any oral or written communication 
                (including an electronic communication) to or from a 
                covered executive branch official or a covered 
                legislative branch official, the information derived 
                from which is intended for use in analyzing securities 
                or commodities markets, or in informing investment 
                decisions, and which is made on behalf of a client with 
                regard to--
                            ``(i) the formulation, modification, or 
                        adoption of Federal legislation (including 
                        legislative proposals);
                            ``(ii) the formulation, modification, or 
                        adoption of a Federal rule, regulation, 
                        Executive order, or any other program, policy, 
                        or position of the United States Government; or
                            ``(iii) the administration or execution of 
                        a Federal program or policy (including the 
                        negotiation, award, or administration of a 
                        Federal contract, grant, loan, permit, or 
                        license).
                    ``(B) Exception.--The term `political intelligence 
                contact' does not include a communication that is made 
                by or to a representative of the media if the purpose 
                of the communication is gathering and disseminating 
                news and information to the public.
            ``(19) Political intelligence firm.--The term `political 
        intelligence firm' means a person or entity that has 1 or more 
        employees who are political intelligence consultants to a 
        client other than that person or entity.
            ``(20) Political intelligence consultant.--The term 
        `political intelligence consultant' means any individual who is 
        employed or retained by a client for financial or other 
        compensation for services that include one or more political 
        intelligence contacts.''.
    (b) Registration Requirement.--Section 4 of the Lobbying Disclosure 
Act of 1995 (2 U.S.C. 1603) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by inserting after ``whichever is 
                        earlier,'' the following: ``or a political 
                        intelligence consultant first makes a political 
                        intelligence contact,''; and
                            (ii) by inserting after ``such lobbyist'' 
                        each place that term appears the following: 
                        ``or consultant'';
                    (B) in paragraph (2), by inserting after 
                ``lobbyists'' each place that term appears the 
                following: ``or political intelligence consultants''; 
                and
                    (C) in paragraph (3)(A)--
                            (i) by inserting after ``lobbying 
                        activities'' each place that term appears the 
                        following: ``and political intelligence 
                        activities''; and
                            (ii) in clause (i), by inserting after 
                        ``lobbying firm'' the following: ``or political 
                        intelligence firm'';
            (2) in subsection (b)--
                    (A) in paragraph (3), by inserting after ``lobbying 
                activities'' each place that term appears the 
                following: ``or political intelligence activities'';
                    (B) in paragraph (4)--
                            (i) in the matter preceding subparagraph 
                        (A), by inserting after ``lobbying activities'' 
                        the following: ``or political intelligence 
                        activities''; and
                            (ii) in subparagraph (C), by inserting 
                        after ``lobbying activity'' the following: ``or 
                        political intelligence activity'';
                    (C) in paragraph (5), by inserting after ``lobbying 
                activities'' each place that term appears the 
                following: ``or political intelligence activities'';
                    (D) in paragraph (6), by inserting after 
                ``lobbyist'' each place that term appears the 
                following: ``or political intelligence consultant''; 
                and
                    (E) in the matter following paragraph (6), by 
                inserting ``or political intelligence activities'' 
                after ``such lobbying activities'';
            (3) in subsection (c)--
                    (A) in paragraph (1), by inserting after ``lobbying 
                contacts'' the following: ``or political intelligence 
                contacts''; and
                    (B) in paragraph (2)--
                            (i) by inserting after ``lobbying contact'' 
                        the following: ``or political intelligence 
                        contact''; and
                            (ii) by inserting after ``lobbying 
                        contacts'' the following: ``and political 
                        intelligence contacts''; and
            (4) in subsection (d), by inserting after ``lobbying 
        activities'' each place that term appears the following: ``or 
        political intelligence activities''.
    (c) Reports by Registered Political Intelligence Consultants.--
Section 5 of the Lobbying Disclosure Act of 1995 (2 U.S.C. 1604) is 
amended--
            (1) in subsection (a), by inserting after ``lobbying 
        activities'' the following: ``and political intelligence 
        activities'';
            (2) in subsection (b)--
                    (A) in paragraph (2)--
                            (i) in the matter preceding subparagraph 
                        (A), by inserting after ``lobbying activities'' 
                        the following: ``or political intelligence 
                        activities'';
                            (ii) in subparagraph (A)--
                                    (I) by inserting after ``lobbyist'' 
                                the following: ``or political 
                                intelligence consultant''; and
                                    (II) by inserting after ``lobbying 
                                activities'' the following: ``or 
                                political intelligence activities'';
                            (iii) in subparagraph (B), by inserting 
                        after ``lobbyists'' the following: ``and 
                        political intelligence consultants''; and
                            (iv) in subparagraph (C), by inserting 
                        after ``lobbyists'' the following: ``or 
                        political intelligence consultants'';
                    (B) in paragraph (3)--
                            (i) by inserting after ``lobbying firm'' 
                        the following: ``or political intelligence 
                        firm''; and
                            (ii) by inserting after ``lobbying 
                        activities'' each place that term appears the 
                        following: ``or political intelligence 
                        activities''; and
                    (C) in paragraph (4), by inserting after ``lobbying 
                activities'' each place that term appears the 
                following: ``or political intelligence activities''; 
                and
            (3) in subsection (d)(1), in the matter preceding 
        subparagraph (A), by inserting ``or a political intelligence 
        consultant'' after ``a lobbyist''.
    (d) Disclosure and Enforcement.--Section 6(a) of the Lobbying 
Disclosure Act of 1995 (2 U.S.C. 1605) is amended--
            (1) in paragraph (3)(A), by inserting after ``lobbying 
        firms'' the following: ``, political intelligence consultants, 
        political intelligence firms,'';
            (2) in paragraph (7), by striking ``or lobbying firm'' and 
        inserting ``lobbying firm, political intelligence consultant, 
        or political intelligence firm''; and
            (3) in paragraph (8), by striking ``or lobbying firm'' and 
        inserting ``lobbying firm, political intelligence consultant, 
        or political intelligence firm''.
    (e) Rules of Construction.--Section 8(b) of the Lobbying Disclosure 
Act of 1995 (2 U.S.C. 1607(b)) is amended by striking ``or lobbying 
contacts'' and inserting ``lobbying contacts, political intelligence 
activities, or political intelligence contacts''.
    (f) Identification of Clients and Covered Officials.--Section 14 of 
the Lobbying Disclosure Act of 1995 (2 U.S.C. 1609) is amended--
            (1) in subsection (a)--
                    (A) in the heading, by inserting ``or Political 
                Intelligence'' after ``Lobbying'';
                    (B) by inserting ``or political intelligence 
                contact'' after ``lobbying contact'' each place that 
                term appears; and
                    (C) in paragraph (2), by inserting ``or political 
                intelligence activity, as the case may be'' after 
                ``lobbying activity'';
            (2) in subsection (b)--
                    (A) in the heading, by inserting ``or Political 
                Intelligence'' after ``Lobbying'';
                    (B) by inserting ``or political intelligence 
                contact'' after ``lobbying contact'' each place that 
                term appears; and
                    (C) in paragraph (2), by inserting ``or political 
                intelligence activity, as the case may be'' after 
                ``lobbying activity''; and
            (3) in subsection (c), by inserting ``or political 
        intelligence contact'' after ``lobbying contact''.
    (g) Annual Audits and Reports by Comptroller General.--Section 26 
of the Lobbying Disclosure Act of 1995 (2 U.S.C. 1614) is amended--
            (1) in subsection (a)--
                    (A) by inserting ``political intelligence firms, 
                political intelligence consultants,'' after ``lobbying 
                firms''; and
                    (B) by striking ``lobbying registrations'' and 
                inserting ``registrations'';
            (2) in subsection (b)(1)(A), by inserting ``political 
        intelligence firms, political intelligence consultants,'' after 
        ``lobbying firms''; and
            (3) in subsection (c), by inserting ``or political 
        intelligence consultant'' after ``a lobbyist''.

SEC. 6. EFFECTIVE DATE.

    Subject to section 5(b), this Act and the amendments made by this 
Act shall take effect at the end of the 90-day period beginning on the 
date of the enactment of this Act.
                                 <all>