118 HR 6141 IH: Insider Trading Prevention Act U.S. House of Representatives 2023-11-01 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I118th CONGRESS1st SessionH. R. 6141IN THE HOUSE OF REPRESENTATIVESNovember 1, 2023Mr. Fallon introduced the following bill; which was referred to the Committee on House AdministrationA BILLTo 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.

1.

Short title

This Act may be cited as the Insider Trading Prevention Act.

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:IV

Prohibition on Ownership of Financial Instruments

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.

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.

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 INSTRUMENTS13151. Definitions.13152. Limitation on owning or trading covered financial instruments.13153. Fine for noncompliance..