[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1138 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 1138

    To amend title 5, United States Code, to prohibit transactions 
  involving certain financial instruments by Members of Congress and 
                 their spouses, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 21, 2023

Mr. Nunn of Iowa (for himself and Mr. Stanton) introduced the following 
bill; which was referred to the Committee on House Administration, and 
  in addition to the Committee on Ways and Means, 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 amend title 5, United States Code, to prohibit transactions 
  involving certain financial instruments by Members of Congress and 
                 their spouses, 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 ``Prohibit Insider Trading Act''.

SEC. 2. PROHIBITING TRANSACTIONS AND OWNERSHIP OF CERTAIN FINANCIAL 
              INSTRUMENTS BY MEMBERS OF CONGRESS AND THEIR SPOUSES.

    (a) In General.--Chapter 131 of title 5, United States Code, is 
amended by adding after subchapter III the following:

     ``SUBCHAPTER IV--RESTRICTIONS REGARDING FINANCIAL INSTRUMENTS

``Sec. 13151. Definitions
    ``In this subchapter--
            ``(1) the term `covered financial instrument'--
                    ``(A) 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 subclause (I) that is 
                        acquired through synthetic means, such as the 
                        use of a derivative, including an option, 
                        warrant, or other similar means; and
                    ``(B) does not include--
                            ``(i) a diversified mutual fund;
                            ``(ii) a diversified exchange-traded fund;
                            ``(iii) any investment in the Thrift 
                        Savings Plan; or
                            ``(iv) a United States Treasury bill, note, 
                        or bond;
            ``(2) the term `Member of Congress' has the meaning given 
        that term in section 13101;
            ``(3) the term `supervising ethics office' has the meaning 
        given that term in section 13101; and
            ``(4) the term `qualified blind trust' has the meaning 
        given that term in section 13104(f)(3).
``Sec. 13152. Prohibition on certain transactions and holdings 
              involving covered financial instruments
    ``(a) Prohibition.--Except as provided in subsection (b), a Member 
of Congress and the Member's spouse may not, during the term of service 
of the Member, hold, purchase, or sell any covered financial 
instrument.
    ``(b) Exceptions.--The prohibition under subsection (a)--
            ``(1) shall begin to apply with respect to a Member of 
        Congress who commences service as a Member after the date of 
        enactment of this subchapter on the date that is seven days 
        after the first date of the initial term of service; and
            ``(2) does not apply to a covered financial instrument held 
        in a qualified blind trust operated on behalf of, or for the 
        benefit of, a Member of Congress or the Member's spouse.
    ``(c) Penalties.--
            ``(1) Disgorgement.--A Member of Congress and the Member's 
        spouse shall disgorge to the general fund of the Treasury any 
        profit from a transaction or holding involving a covered 
        financial instrument that is conducted in violation of this 
        section.
            ``(2) Income tax.--A loss from a transaction or holding 
        involving a covered financial instrument that is conducted in 
        violation of this section may not be deducted from the amount 
        of income tax owed by the applicable Member of Congress or the 
        Member's spouse.
            ``(3) Fines.--A Member of Congress who holds or conducts a 
        transaction involving a covered financial instrument in 
        violation of this section may be subject to a civil fine as 
        described under section 13106(a).
``Sec. 13153. Supervising ethics office certification of compliance and 
              audit
    ``(a) Certification.--
            ``(1) In general.--Not later than seven days after the 
        beginning of any session of Congress, each Member of Congress 
        shall submit to the supervising ethics office a written 
        certification that the Member and the Member's spouse has 
        achieved compliance with the requirements of this subchapter.
            ``(2) Publication.--The supervising ethics office shall 
        publish each certification submitted under paragraph (1) on a 
        publicly available website.
    ``(b) Audit.--Not less than every two years, the supervising ethics 
office shall conduct an audit of the compliance by Members of Congress 
with the requirements of this subchapter.''.
    (b) Clerical Amendment.--The table of sections for such chapter 131 
is amended by inserting after the item relating to section 13146 the 
following:

      ``subchapter iv--restrictions regarding financial instruments

``13151. Definitions.
``13152. Prohibition on certain transactions and holdings involving 
                            covered financial instruments.
``13153. Supervising ethics office certification of compliance and 
                            audit.''.
    (c) Application.--The amendments made by subsection (a) shall begin 
to apply to Members of Congress and their spouses on the first day of 
the second session of the One Hundred Eighteenth Congress.
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