S. 4134

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4134 Introduced in Senate (IS)]

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119th CONGRESS
2d Session
S. 4134

To amend chapter 131 of title 5, United States Code, to require certain 
restrictions on stocks for Members of Congress and their spouses and 
dependents, and for other purposes.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

March 18, 2026

Mr. Ricketts (for himself, Mr. McCormick, Mr. Husted, Mrs. Fischer, Mr. 
Marshall, Mr. Cassidy, and Mr. Young) introduced the following bill; 
which was read twice and referred to the Committee on Homeland Security 
and Governmental Affairs

_______________________________________________________________________

A BILL

To amend chapter 131 of title 5, United States Code, to require certain 
restrictions on stocks for Members of Congress and their spouses and 
dependents, and for other purposes.

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 ``Stop Insider Trading Act''.

SEC. 2. RESTRICTIONS ON COVERED INVESTMENTS.

(a) Table of Contents.--The table of contents for chapter 131 of 
title 5, United States Code, is amended by adding at the end the 
following:

``subchapter iv--restrictions on covered investments

``13151. Definitions.
``13152. Restrictions on covered investments.
``13153. Penalties.''.
(b) Restrictions.--Chapter 131 of title 5, United States Code, is 
amended by adding at the end the following:

``SUBCHAPTER IV--RESTRICTIONS ON COVERED INVESTMENTS

``Sec. 13151. Definitions
``In this subchapter:
``(1) Covered individual.--The term `covered individual' 
means any of the following:
``(A) A Member of Congress, as defined in section 
13101.
``(B) A dependent child (as defined in section 
13101) or a spouse of a Member of Congress.
``(2) Covered investment.--
``(A) In general.--The term `covered investment' 
means--
``(i) a security issued by a publicly 
traded company; or
``(ii) any derivative, option, warrant, 
swap, or other instrument that provides 
economic exposure to, or the value of which is 
determined by reference to, a security 
described in clause (i).
``(B) Exclusion.--The term `covered investment' 
does not include--
``(i) an excepted investment fund (as 
described in section 13104(f)(8));
``(ii) any other fund that would be an 
excepted investment fund but for the fact that 
the fund does not meet the diversification 
requirement solely because the fund is 
concentrated in--
``(I) the United States; or
``(II) the State, territory, or 
District of residence of the covered 
individual who owns the fund;
``(iii) an interest in a small business 
concern, as defined in section 3 of the Small 
Business Act (15 U.S.C. 632); or
``(iv) any investment held in a trust if--
``(I) no covered individual has any 
authority, directly or indirectly, to 
direct, veto, or materially influence 
any specific investment decisions of 
the trust, including any right to 
approve, disapprove, or require 
particular purchases, sales, or 
investment strategies; and
``(II) the trustee of the trust is 
not the spouse, child, parent, or 
sibling of a Member of Congress.
``(3) Publicly traded company.--The term `publicly traded 
company' means an issuer that has a class of securities 
registered under section 12 of the Securities Exchange Act of 
1934 (15 U.S.C. 78l).
``(4) Security.--The term `security' has the meaning given 
the term in section 3(a) of the Securities Exchange Act of 1934 
(15 U.S.C. 78c(a)).
``(5) Supervising ethics office.--The term `supervising 
ethics office' has the meaning given the term in section 13101.
``Sec. 13152. Restrictions on covered investments
``(a) Conduct During Federal Service.--Except as described in 
subsection (c), no covered individual may purchase a covered 
investment.
``(b) Advanced Notice Requirement.--
``(1) In general.--No covered individual may sell a covered 
investment, unless a notice of intent to sell the covered 
investment is made by the relevant Member of Congress, on 
behalf of the Member of Congress or the spouse or dependent 
child of the Member of Congress, as applicable, and publicly 
disclosed at least 7 calendar days, and not more than 14 
calendar days, prior to the sale in accordance with the 
requirements of this subsection.
``(2) Contents of notice.--The notice under paragraph (1) 
shall include the following:
``(A) The projected date of sale of a covered 
investment.
``(B) A description of such sale.
``(C) The number of shares in such sale.
``(3) Withdrawal.--The notice under paragraph (1) shall be 
withdrawn by the Member of Congress who filed it, prior to the 
close of the expiration of the notice, if the covered 
individual to whom the notice applies determines not to sell 
the covered investment.
``(4) Filing.--A Member of Congress shall file the notice 
under paragraph (1) for each intended sale by the Member of 
Congress, or the spouse or dependent child of the Member of 
Congress, with--
``(A) the Clerk of the House of Representatives, in 
the case of a Representative in Congress, a Delegate to 
Congress, or the Resident Commissioner from Puerto 
Rico; or
``(B) the Secretary of the Senate, in the case of a 
Senator.
``(5) Publication.--The notice under paragraph (1) and the 
withdrawal under paragraph (3) shall, upon receipt, be made 
publicly available on a website controlled by the Clerk of the 
House of Representatives or the Secretary of the Senate, as 
applicable.
``(c) Exceptions.--
``(1) Occupation.--The requirements of subsections (a) and 
(b) shall not apply to a spouse or dependent child of a Member 
of Congress with respect to a transaction in a covered 
investment which is--
``(A) on behalf, or for the benefit, of any person 
other than a covered individual; or
``(B) made as a part of compensation from an 
employer of such individual or in furtherance of any 
fiduciary or occupational obligations of such 
individual.
``(2) Other.--The requirements of subsection (a) shall not 
apply to a covered individual with respect to a transaction in 
a covered investment made for the purpose of reinvesting 
dividends received from such covered investment.
``Sec. 13153. Enforcement
``(a) In General.--Any covered individual who violates the 
restrictions under section 13152 with respect to a covered investment, 
shall, at the direction of the supervising ethics office--
``(1) incur a fee, as calculated under subsection (b), to 
be paid by the Member of Congress who--
``(A) caused the violation; or
``(B) is the spouse or parent of the covered 
individual who caused the violation; and
``(2) in the case of a purchase of a covered investment, be 
required to sell the covered investment purchased in violation 
of section 13152(a).
``(b) Calculation of Fees.--The fee required under subsection 
(a)(1) shall be equal to the sum of--
``(1) $2,000 or 10 percent of the value of the transaction 
in the covered investment that violates section 13152, 
whichever is greater; and
``(2) the net gain realized, if any, from the covered 
investment during the period beginning on the most recent date 
on which the individual became a covered individual and ending 
on the date of disposition of the covered investment, as 
determined by the supervising ethics office.
``(c) Payment Restrictions.--A Member of Congress may not pay any 
of the fees under this section by using amounts from the following 
sources:
``(1) If the covered individual is a Senator, the Senators' 
Official Personnel and Office Expense Account.
``(2) If the covered individual is a Member of the House of 
Representatives, the Members' Representational Allowance.
``(3) Any contribution (as defined in section 301 of the 
Federal Election Campaign Act of 1971 (52 U.S.C. 30101)) 
accepted as a candidate (as defined in that section), and any 
other donation received as support for activities of the 
covered individual as a holder of Federal office (as defined in 
that section).
``(d) Miscellaneous Receipts.--Any amounts collected in fees 
authorized by this section shall be deposited in the general fund of 
the Treasury as miscellaneous receipts in accordance with section 
3302(b) of title 31.
``(e) Referral.--Upon the assessment of a fee under this section, 
the supervising ethics office may refer a Member of Congress to the 
Attorney General in the same manner and to the same extent as a 
violation under section 13106 if such Member of Congress resigns or 
retires before paying such assessed fee.
``(f) Interpretative Guidance.--Each supervising ethics office may 
issue interpretative guidance relating to this subchapter and, in 
issuing such guidance, may consider mitigating or aggravating 
circumstances.''.
(c) Effective Date.--The amendments made by this Act shall take 
effect on the date that is 180 days after the date of enactment of this 
Act.
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