H.R. 3388

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

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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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