[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6141 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 6141

 To amend title 5, United States Code, to prohibit sale or purchase of 
covered financial instruments by Members of Congress and their spouses, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            November 1, 2023

  Mr. Fallon introduced the following bill; which was referred to the 
                   Committee on House Administration

_______________________________________________________________________

                                 A BILL


 
 To amend title 5, United States Code, to prohibit sale or purchase of 
covered 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 ``Insider Trading Prevention Act''.

SEC. 2. PROHIBITION ON OWNERSHIP OF FINANCIAL INSTRUMENTS.

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

   ``SUBCHAPTER IV--PROHIBITION ON OWNERSHIP OF FINANCIAL INSTRUMENTS

``Sec. 13151. Definitions
    ``In this subchapter:
            ``(1) Covered financial instrument.--
                    ``(A) In general.--The term `covered financial 
                instrument' means a security (as defined in section 
                3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 
                78c(a))).
                    ``(B) Exclusions.--The term `covered financial 
                instrument' does not include--
                            ``(i) a United States Treasury bill, note, 
                        or bond;
                            ``(ii) an exchange-traded fund;
                            ``(iii) a mutual fund; or
                            ``(iv) any investment fund held in a 
                        Federal, State, or local government employee 
                        retirement plan.
            ``(2) Covered individual.--The term `covered individual' 
        means any of the following:
                    ``(A) A Member of Congress.
                    ``(B) The spouse of a Member of Congress.
            ``(3) Member of congress.--The term `Member of Congress' 
        has the meaning given that term in section 13101.
            ``(4) Supervising ethics office.--The term `supervising 
        ethics office' has the meaning given that term in section 
        13101.
``Sec. 13152. Limitation on owning or trading covered financial 
              instruments
    ``(a) Requirement.--Except as provided in subsection (b), no 
covered individual may--
            ``(1) buy a covered financial instrument on or after the 
        date of enactment of the Insider Trading Prevention Act or the 
        date on which such individual becomes a covered individual, 
        whichever is later; or
            ``(2) sell a covered financial instrument described in 
        paragraph (1).
    ``(b) Assets Acquired Through Special Circumstances.--Beginning one 
year after the date on which a spouse of a Member of Congress is 
employed in the primary occupation of such spouse, such spouse may 
receive a covered financial instrument as compensation from such 
primary occupation during the period of employment at such occupation.
    ``(c) Proof of Compliance.--
            ``(1) Submission.--A covered individual shall submit to the 
        supervising ethics office a pledge of compliance with the 
        requirements of this subchapter, and shall produce, upon 
        request of the supervising ethics office, material or 
        information determined by the supervising ethics committee to 
        be necessary to indicate compliance with the provisions of this 
        subchapter.
            ``(2) Certificate.--The supervising ethics office shall 
        provide each covered individual in compliance with the 
        provisions of this subchapter with a certificate of compliance.
            ``(3) Annual publication.--The supervising ethics office 
        shall make available annually, on a publicly accessible 
        website, all certificates issued under this subsection.
``Sec. 13153. Fine for noncompliance
    ``An individual subject to the requirements of this subchapter who 
is in violation of this subchapter as determined by the supervising 
ethics office shall pay a fine equal to the higher of the following 
amounts:
            ``(1) $25,000 per violation.
            ``(2) The value of the covered financial instrument sold or 
        purchased by the individual.''.
    (b) Clerical Amendment.--The table of sections for such chapter is 
amended by inserting after the item relating to section 13146 the 
following:

   ``subchapter iv--prohibition on ownership of financial instruments

``13151. Definitions.
``13152. Limitation on owning or trading covered financial instruments.
``13153. Fine for noncompliance.''.
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