119-hr3388

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3388 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 3388

 To amend chapter 131 of title 5, United States Code, to prohibit 
 transactions involving certain financial instruments by Members of 
 Congress.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 May 14, 2025

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

_______________________________________________________________________

 A BILL

 To amend chapter 131 of title 5, United States Code, to prohibit 
 transactions involving certain financial instruments by Members of 
 Congress.

 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 ``Preventing Elected Leaders from 
Owning Securities and Investments

    (PELOSI) Act''.

SEC. 2. BANNING INSIDER TRADING IN CONGRESS.

    (a) 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 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) .''.

    (b) Conforming Amendments.--

    (1) 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.''.

    (2) Persons required to file.--

Section 13103

    (f) of title 5, 
 United States Code, is amended--
        (A) in paragraph

    (9) , by striking ``as defined in 
 

section 13101 of this title'';
        (B) in paragraph

    (10) , by striking ``as defined in 
 

section 13101 of this title'';
            (C) in paragraph

    (11) , by striking ``as defined in 
 

section 13101 of this title''; and
            (D) in paragraph

    (12) , by striking ``as defined in 
 

section 13101 of this title''.
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