[Congressional Record Volume 171, Number 125 (Tuesday, July 22, 2025)]
[Senate]
[Pages S4534-S4535]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 2965. Mr. HAWLEY submitted an amendment intended to be proposed by
him to the bill H.R. 3944, making appropriations for military
construction, the Department of Veterans Affairs, and related agencies
for the fiscal year ending September 30, 2026, and for other purposes;
which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. ___. PREVENTING ELECTED LEADERS FROM OWNING SECURITIES
AND INVESTMENTS (PELOSI) ACT.
(a) Short Title.--This section may be cited as the
``Preventing Elected Leaders from Owning Securities and
Investments (PELOSI) Act''.
(b) Banning Insider Trading in Congress.--
(1) In general.--Chapter 131 of title 5, United States
Code, is amended by adding at the end the following:
``Subchapter IV--Banning Insider Trading in Congress
``Sec. 13161. Definitions
``In this subchapter:
``(1) Covered financial instrument.--
``(A) In general.--The term `covered financial instrument'
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 clause (i) that is acquired through synthetic
means, such as the use of a derivative, including an option,
a warrant, or other similar means.
``(B) Exclusions.--The term `covered financial instrument'
does not include--
``(i) a diversified mutual fund;
``(ii) a diversified exchange-traded fund;
``(iii) a United States Treasury bill, note, or bond; or
``(iv) compensation from the primary occupation of a spouse
or dependent child of a Member of Congress.
``(2) Dependent child; member of congress.--The terms
`dependent child' and `Member of Congress' have the meanings
given those terms in section 13101.
``(3) Supervising ethics committee.--The term `supervising
ethics committee' means, as applicable--
``(A) the Select Committee on Ethics of the Senate; and
``(B) the Committee on Ethics of the House of
Representatives.
``Sec. 13162. Prohibition on certain transactions and
holdings involving covered financial instruments
``(a) Prohibition.--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.
``(b) Exceptions.--The prohibition under subsection (a)
shall not apply to a sale by a Member of Congress, or a
spouse of a Member of Congress, that is completed by the date
that is--
``(1) for a Member of Congress serving on the date of
enactment of the Preventing Elected Leaders from Owning
Securities and Investments (PELOSI) Act, 180 days after that
date of enactment; and
``(2) for any Member of Congress who commences service as a
Member of Congress after the date of enactment of the
Preventing Elected Leaders from Owning Securities and
Investments (PELOSI) Act, 180 days after the first date of
the initial term of service.
``(c) Penalties.--
``(1) Disgorgement.--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.
``(2) Fines.--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 applicable supervising ethics committee under
section 13164.
``Sec. 13163. Certification of compliance
``(a) In General.--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 subchapter.
``(b) Publication.--The supervising ethics committees shall
publish each certification submitted under subsection (a) on
a publicly available website.
``Sec. 13164. Authority of supervising ethics committees
``(a) In General.--The supervising ethics committees may
implement and enforce the requirements of this subchapter,
including by--
``(1) issuing--
``(A) for Members of Congress--
``(i) rules governing that implementation; and
``(ii) 1 or more reasonable extensions to achieve
compliance with this subchapter, if the applicable
supervising ethics committee determines that a Member of
Congress is making a good faith effort to divest any covered
financial instruments; and
``(B) guidance relating to covered financial instruments;
``(2) publishing on the internet certifications submitted
by Members of Congress under section 13163(a); and
``(3) assessing civil fines against any Member of Congress
who is in violation of this subchapter, subject to subsection
(b).
``(b) Requirements for Civil Fines.--
``(1) In general.--Before imposing a fine pursuant to this
section, the applicable supervising ethics committee shall
provide to the applicable Member of Congress--
``(A) a written notice describing each covered financial
instrument transaction for which a fine will be assessed; and
``(B) an opportunity, with respect to each such covered
financial instrument transaction--
``(i) for a hearing; and
``(ii) to achieve compliance with the requirements of this
subchapter.
``(2) Enforcement.--
``(A) In general.--In the event of continuing noncompliance
after issuance of the
[[Page S4535]]
notice described in paragraph (1), the applicable supervising
ethics committee shall impose a civil penalty, in the amount
described in subparagraph (B), on the Member of Congress to
whom a notice was provided--
``(i) on the date that is 30 days after the date of
provision of the notice; and
``(ii) during the period in which such noncompliance
continues, not less frequently than once every 30 days
thereafter.
``(B) Amount.--The amount of each civil penalty imposed on
a Member of Congress pursuant to subparagraph (A) shall be an
amount equal to 10 percent of the value of each covered
financial instrument that was not divested in violation of
this subchapter during the period covered by the penalty.
``(3) Publication.--Each supervising ethics committee shall
publish on a publicly available website a description of--
``(A) each fine assessed by the supervising ethics
committee pursuant to this section;
``(B) the reasons why each such fine was assessed; and
``(C) the result of each assessment, including any hearing
under paragraph (1)(B)(i) relating to the assessment.
``(4) Appeal.--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.
``Sec. 13165. Audit by Government Accountability Office
``Not later than 2 years after the date of enactment of the
Preventing Elected Leaders from Owning Securities and
Investments (PELOSI) Act, the Comptroller General of the
United States shall--
``(1) conduct an audit of the compliance by Members of
Congress with the requirements of this subchapter; and
``(2) submit to the supervising ethics committees a report
describing the results of the audit conducted under paragraph
(1).''.
(2) Conforming amendments.--
(A) Table of sections.--The table of sections for chapter
131 of title 5, United States Code, is amended by adding at
the end the following:
``subchapter iv--banning insider trading in congress
``13161. Definitions.
``13162. Prohibition on certain transactions and holdings involving
covered financial instruments.
``13163. Certification of compliance.
``13164. Authority of supervising ethics committees.
``13165. Audit by Government Accountability Office.''.
(B) Persons required to file.--Section 13103(f) of title 5,
United States Code, is amended--
(i) in paragraph (9), by striking ``as defined in section
13101 of this title'';
(ii) in paragraph (10), by striking ``as defined in section
13101 of this title'';
(iii) in paragraph (11), by striking ``as defined in
section 13101 of this title''; and
(iv) in paragraph (12), by striking ``as defined in section
13101 of this title''.
(C) Lobbying disclosure act of 1995.--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 13101(13) of title 5,
United States Code'' and inserting ``officer or employee of
Congress (as defined in section 13101 of title 5, United
States Code)''.
______