<enum>II</enum><header>Banning insider trading in Congress</header><section id="id67a63ee06986481bbd5c2b35de16ccbd"><enum>201.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text><paragraph id="id36439fd7681e410781fc58e2d1962738"><enum>(1)</enum><header>Covered financial instrument</header><subparagraph id="id572E7630B5F24C2B93671D632DDD6F7E"><enum>(A)</enum><header>In general</header><text>The term <term>covered financial instrument</term> means—</text><clause id="id5f9ee68c074d4f9f8c81c3993b6ba795"><enum>(i)</enum><text>any investment in—</text><subclause id="id680D261A0C6F4B1A94230AACDD82EAF7"><enum>(I)</enum><text>a security (as defined in section 3(a) of Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78c">15 U.S.C. 78c(a)</external-xref>));</text></subclause><subclause id="idA64B5968FB5B4DBEAE962F1B4D45B032"><enum>(II)</enum><text>a security future (as defined in that section); or</text></subclause><subclause id="id5F7780DF021F46648047FF4887686564"><enum>(III)</enum><text>a commodity (as defined in section 1a of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1a">7 U.S.C. 1a</external-xref>)); and</text></subclause></clause><clause id="id8df32512baf64f49883bf53325907ed0"><enum>(ii)</enum><text>any economic interest comparable to an interest described in clause (i) that is acquired through synthetic means, such as the use of a derivative, including an option, warrant, or other similar means.</text></clause></subparagraph><subparagraph id="id540A39F7B32642F2AF1A2ED139335CA7"><enum>(B)</enum><header>Exclusions</header><text>The term <term>covered financial instrument</term> does not include—</text><clause id="id9815e35239e948489ede8da429403f8b"><enum>(i)</enum><text>a diversified mutual fund;</text></clause><clause id="id2a5b3d79485f450f878f45d2510bd955"><enum>(ii)</enum><text>a diversified exchange-traded fund;</text></clause><clause id="id63b611f75e8a430d8f0e284d5f85a6e7"><enum>(iii)</enum><text>a United States Treasury bill, note, or bond; or</text></clause><clause id="id0995da3d1a964d578d96e1aa8129b3e0"><enum>(iv)</enum><text>compensation from the primary occupation of a spouse or dependent of a Member of Congress.</text></clause></subparagraph></paragraph><paragraph id="id9A15AAB1CDC54DC394F1A3282926602A"><enum>(2)</enum><header>Member of Congress</header><text>The term <term>Member of Congress</term> has the meaning given the term in section 109. </text></paragraph><paragraph id="id2374d59751da42b6a68c9a27b28f798a"><enum>(3)</enum><header>Qualified blind trust</header><text>The term <term>qualified blind trust</term> has the meaning given the term in section 102(f)(3).</text></paragraph><paragraph id="id29AB1ACD1DD84A27B3D7177DEA1FD893"><enum>(4)</enum><header>Supervising ethics committee</header><text>The term <term>supervising ethics committee</term> means, as applicable—</text><subparagraph id="idD192B76848914041840D87EAF008BA81"><enum>(A)</enum><text>the Select Committee on Ethics of the Senate; and</text></subparagraph><subparagraph id="idEC1C982E267F42BDB94E0220F106D4CE"><enum>(B)</enum><text>the Committee on Ethics of the House of Representatives.</text></subparagraph></paragraph></section><section id="idB57EBDB2A5B442A8B6AAE1DED54E6142"><enum>202.</enum><header>Prohibition on certain transactions and holdings involving covered financial instruments</header><subsection id="id87A1D28BFBA34995ACD59CF191AB3B7B"><enum>(a)</enum><header>Prohibition</header><text>Except as provided in subsection (b), a Member of Congress, or any spouse of a Member of Congress, may not, during the term of service of the Member of Congress, hold, purchase, or sell any covered financial instrument.</text></subsection><subsection id="idEA3A32B0511346F3BE9F441B80AF676D"><enum>(b)</enum><header>Exceptions</header><text>The prohibition under subsection (a) shall not apply to—</text><paragraph id="id59EB8B594DB84E46A4AE1D48D51710E0"><enum>(1)</enum><text>a sale by a Member of Congress, or a spouse of a Member of Congress, that is completed by the date that is—</text><subparagraph id="idDFE4ACA1820F49EC81E1F95315FD6A69"><enum>(A)</enum><text>for a Member of Congress serving on the date of enactment of the <short-title>Preventing Elected Leaders from Owning Securities and Investments (PELOSI) Act</short-title>, 180 days after that date of enactment; and</text></subparagraph><subparagraph id="id325E9035778F45A2B8AB901E6466C088"><enum>(B)</enum><text>for any Member of Congress who commences service as a Member of Congress after the date of enactment of the <short-title>Preventing Elected Leaders from Owning Securities and Investments (PELOSI) Act</short-title>, 180 days after the first date of the initial term of service; or</text></subparagraph></paragraph><paragraph id="idDAB5166880404234A02258F1F7870657"><enum>(2)</enum><text>a covered financial instrument held in a qualified blind trust operated on behalf of, or for the benefit of, the Member of Congress or spouse of the Member of Congress.</text></paragraph></subsection><subsection id="idf9c06bfdf92245a9815aa12eef9e3cdf"><enum>(c)</enum><header>Penalties</header><paragraph id="id4498BAED8960484D9F6A88E677424034"><enum>(1)</enum><header>Disgorgement</header><text>A Member of Congress shall disgorge to the Treasury of the United States any profit from a transaction or holding involving a covered financial instrument that is conducted in violation of this section.</text></paragraph><paragraph id="idFC22417061F047539E23AB5325948AC3"><enum>(2)</enum><header>Income tax</header><text>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 spouse of a Member of Congress.</text></paragraph><paragraph id="idA37BB9E6C8644F12A9112606D3AA5C9E"><enum>(3)</enum><header>Fines</header><text>A Member of Congress who holds or conducts a transaction involving, or whose spouse holds or conducts a transaction involving, a covered financial instrument in violation of this section may be subject to a civil fine assessed by the supervising ethics committee under section 204.</text></paragraph></subsection></section><section id="id2ab6956343674d66af0f8d6a9957e30a"><enum>203.</enum><header>Certification of compliance</header><subsection id="id9B1C97EE36E441F18CA99B2B08013E7C"><enum>(a)</enum><header>In general</header><text>Not less frequently than annually, each Member of Congress shall submit to the applicable supervising ethics committee a written certification that the Member of Congress has achieved compliance with the requirements of this title.</text></subsection><subsection id="id87350D98528D476DAB730C7DA6B35706"><enum>(b)</enum><header>Publication</header><text>The supervising ethics committees shall publish each certification submitted under subsection (a) on a publicly available website.</text></subsection></section><section id="id2feecdf73eec43938e3d8015112b1492"><enum>204.</enum><header>Authority of supervising ethics committees</header><subsection id="idD059D95CB0D846018DC916B3E65FEE34"><enum>(a)</enum><header>In general</header><text>The supervising ethics committees may implement and enforce the requirements of this title, including by—</text><paragraph id="id8437A2F67BD24ADAB8FDB52FFC039E58"><enum>(1)</enum><text>issuing—</text><subparagraph id="idEE26CE83A1D14872B891641369BB3969"><enum>(A)</enum><text>for Members of Congress—</text><clause id="idF016A4A8AE52441E98241FE1D4E49627"><enum>(i)</enum><text>rules governing that implementation; and</text></clause><clause id="id9ABEE88114124871A3D827BDC45A764A"><enum>(ii)</enum><text>1 or more reasonable extensions to achieve compliance with this title, if the supervising ethics committee determines that a Member of Congress is making a good faith effort to divest any covered financial instruments; and</text></clause></subparagraph><subparagraph id="idBC4845AF64D54290B9B9543F467B987D"><enum>(B)</enum><text>guidance relating to covered financial instruments;</text></subparagraph></paragraph><paragraph id="idfd80d5bd4f4a4c17bda5fe576028d97c"><enum>(2)</enum><text>publishing on the internet certifications submitted by Members of Congress under section 203(a); and</text></paragraph><paragraph id="id3c493cd651844aa3b364cc0f673ed749"><enum>(3)</enum><text>assessing civil fines against any Member of Congress who is in violation of this title, subject to subsection (b).</text></paragraph></subsection><subsection id="idE6930496FD434A9793254ACB7889A923"><enum>(b)</enum><header>Requirements for civil fines</header><paragraph id="ida5877dcc94074b26bbe3690efa13540e"><enum>(1)</enum><header>In general</header><text>Before imposing a fine pursuant to this section, a supervising ethics committee shall provide to the applicable Member of Congress—</text><subparagraph id="id711467488AE74445BF0565CE4620500A"><enum>(A)</enum><text>a written notice describing each covered financial instrument transaction for which a fine will be assessed; and</text></subparagraph><subparagraph id="idE5293D2927A94B7C88465A4660A18713"><enum>(B)</enum><text>an opportunity, with respect to each such covered financial instrument transaction—</text><clause id="idD28397F6454D427A83A5614D72C19C54"><enum>(i)</enum><text>for a hearing; and</text></clause><clause id="id20928AC2EC3A4000951FEA2492BF5585"><enum>(ii)</enum><text>to achieve compliance with the requirements of this title.</text></clause></subparagraph></paragraph><paragraph id="idE54E26A90D664622B95AC9C60292BDB8"><enum>(2)</enum><header>Publication</header><text>Each supervising ethics committee shall publish on a publicly available website a description of—</text><subparagraph id="id798665A8D3B042E6953628EEF02EFCF0"><enum>(A)</enum><text>each fine assessed by the supervising ethics committee pursuant to this section;</text></subparagraph><subparagraph id="idABCFA0BC6CD946C4950B604D46FC7305"><enum>(B)</enum><text>the reasons why each such fine was assessed; and</text></subparagraph><subparagraph id="id2B5A23B6B4384138B70A47E212008A8B"><enum>(C)</enum><text>the result of each assessment, including any hearing under paragraph (1)(B)(i) relating to the assessment.</text></subparagraph></paragraph><paragraph id="idaa0bd28b87844516a2c036d986e3b60f"><enum>(3)</enum><header>Appeal</header><text>A Member of Congress may appeal the assessment of a fine under this section to a vote on the floor of the Senate or the House of Representatives, as applicable, as a privileged motion.</text></paragraph></subsection></section><section id="idc275a7bd9a14452a9be1ec0c04d73755"><enum>205.</enum><header>Audit by Government Accountability Office</header><text display-inline="no-display-inline">Not later than 2 years after the date of enactment of the <short-title>Preventing Elected Leaders from Owning Securities and Investments (PELOSI) Act</short-title>, the Comptroller General of the United States shall—</text><paragraph id="id947EC72B2A8244979E8D8C5DC2675801"><enum>(1)</enum><text display-inline="yes-display-inline">conduct an audit of the compliance by Members of Congress with the requirements of this title; and</text></paragraph><paragraph id="id5d573856aded424e822feb0c77cc54a1"><enum>(2)</enum><text>submit to the supervising ethics committees a report describing the results of the audit conducted under paragraph (1).</text></paragraph></section>

Banning insider trading in Congress

(a)

In general

The Ethics in Government Act of 1978 (5 U.S.C. App.) is amended by inserting after title I the following:

(b)

Conforming amendments

(1)Section 109 of the Ethics in Government Act of 1978 (5 U.S.C. App.) is amended—(A)in the matter preceding paragraph (1), by striking For the purposes of this title, the term— and inserting In this title:;(B)in paragraph (1), by striking means and all that follows through Representatives; and inserting the following:

means, as applicable—(A)the Select Committee on Ethics of the Senate; and(B)the Committee on Ethics of the House of Representatives.

;

(C)in each of paragraphs (2) through (17), by striking the semicolon at the end of the paragraph and inserting a period;(D)in paragraph (18)—(i)in subparagraph (B), by striking Standards of Official Conduct and inserting Ethics; and(ii)in subparagraph (D), by striking ; and at the end and inserting a period;(E)in each of paragraphs (1) through (19)—(i)by inserting The term after the paragraph designation; and (ii)by inserting a paragraph heading, the text of which is comprised of the term defined in that paragraph; and(F)by redesignating paragraphs (8) and (9) as paragraphs (9) and (8), respectively, and moving the paragraphs so as to appear in numerical order.(2)Section 101(f) of the Ethics in Government Act of 1978 (5 U.S.C. App.) is amended—(A)in paragraph (9), by striking as defined under section 109(12);(B)in paragraph (10), by striking as defined under section 109(13);(C)in paragraph (11), by striking as defined under section 109(10); and(D)in paragraph (12), by striking as defined under section 109(8).(3)Section 111(2) of the Ethics in Government Act of 1978 (5 U.S.C. App.) is amended by striking Standards of Official Conduct and inserting Ethics.(4)Section 402 of the Ethics in Government Act of 1978 (5 U.S.C. App.) is amended—(A)in subsection (b), by striking title II of each place it appears; and(B)in subsection (f)(2)(B)—(i)by striking Subject to clause (iv) of this subparagraph, before each place it appears and inserting Before; and(ii)by striking clause (iv).(5)Section 503(1)(A) of the Ethics in Government Act of 1978 (5 U.S.C. App.) is amended by striking Standards of Official Conduct and inserting Ethics. (6)Section 3(4)(D) of the Lobbying Disclosure Act of 1995 (2 U.S.C. 1602(4)(D)) is amended by striking legislative branch employee serving in a position described under section 109(13) of the Ethics in Government Act of 1978 (5 U.S.C. App.) and inserting officer or employee of the Congress (as defined in section 109 of the Ethics in Government Act of 1978 (5 U.S.C. App.)). (7)Section 21A of the Securities Exchange Act of 1934 (15 U.S.C. 78u–1) is amended—(A)in subsection (g)(2)(B)(ii), by striking section 109(11) of the Ethics in Government Act of 1978 (5 U.S.C. App. 109(11)) and inserting section 109 of the Ethics in Government Act of 1978 (5 U.S.C. App.); and(B)in subsection (h)(2)—(i)in subparagraph (B), by striking section 109(8) of the Ethics in Government Act of 1978 (5 U.S.C. App. 109(8)) and inserting section 109 of the Ethics in Government Act of 1978 (5 U.S.C. App.); and(ii)in subparagraph (C), by striking under section 109(10) of the Ethics in Government Act of 1978 (5 U.S.C. App. 109(10)) and inserting in section 109 of the Ethics in Government Act of 1978 (5 U.S.C. App.).