,,ii #aahth ,,congress #ast ,session ,s4 #eh ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,january #bd 7legislative day1 ,january #c71 #bjbc,mr4 ,hawley introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,ethics in ,government ,act of #aigh to prohibit transactions involving certain financial instruments by ,members of ,congress4 #a4 ,short title ,this ,act may be cited as the ,preventing ,elected ,leaders from ,owning ,securities and ,investments 7,,pelosi7 ,act4 #b4 ,banning insider trading in ,congress 7a7 ,in general ,the ,ethics in ,government ,act of #aigh 7#e ,u4,s4,c4 ,app47 is amended by inserting after title ,i the following3 ,,ii ,banning insider trading in ,congress #bja4 ,definitions ,in this title3 7#a7 ,covered financial instrument 7,a7 ,in general ,the term covered financial instrument means-- 7i7 any investment in-- 7,i7 a security 7as defined in section #c7;a7 of ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c7a7772 7,,ii7 a security future 7as defined in that section72 or 7,,iii7 a commodity 7as defined in section #a;a of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a772 and 7ii7 any economic interest comparable to an interest described in clause 7i7 that is acquired through synthetic means1 such as the use of a derivative1 including an option1 warrant1 or other similar means4 7,b7 ,exclusions ,the term covered financial instrument does not include-- 7i7 a diversified mutual fund2 7ii7 a diversified exchange-traded fund2 7iii7 a ,united ,states ,treasury bill1 note1 or bond2 or 7iv7 compensation from the primary occupation of a spouse or dependent of a ,member of ,congress4 7#b7 ,member of ,congress ,the term ,member of ,congress has the meaning given the term in section #aji4 7#c7 ,qualified blind trust ,the term qualified blind trust has the meaning given the term in section #ajb7;f77#c74 7#d7 ,supervising ethics committee ,the term supervising ethics committee means1 as applicable-- 7,a7 the ,select ,committee on ,ethics of the ,senate2 and 7,b7 the ,committee on ,ethics of the ,house of ,representatives4 #bjb4 ,prohibition on certain transactions and holdings involving covered financial instruments 7a7 ,prohibition ,except as provided in subsection 7b71 a ,member of ,congress1 or any spouse of a ,member of ,congress1 may not1 during the term of service of the ,member of ,congress1 hold1 purchase1 or sell any covered financial instrument4 7b7 ,exceptions ,the prohibition under subsection 7a7 shall not apply to-- 7#a7 a sale by a ,member of ,congress1 or a spouse of a ,member of ,congress1 that is completed by the date that is-- 7,a7 for a ,member of ,congress serving on the date of enactment of the ,preventing ,elected ,leaders from ,owning ,securities and ,investments 7,,pelosi7 ,act1 #ahj days after that date of enactment2 and 7,b7 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 7,,pelosi7 ,act1 #ahj days after the first date of the initial term of service2 or 7#b7 a covered financial instrument held in a qualified blind trust operated on behalf of1 or for the benefit of1 the ,member of ,congress or spouse of the ,member of ,congress4 7c7 ,penalties 7#a7 ,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 section4 7#b7 ,income tax ,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 ,congress4 7#c7 ,fines ,a ,member of ,congress who holds or conducts a transaction involving1 or whose spouse holds or conducts a transaction involving1 a covered financial instrument in violation of this section may be subject to a civil fine assessed by the supervising ethics committee under section #bjd4 #bjc4 ,certification of compliance 7a7 ,in general ,not less frequently than annually1 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 title4 7b7 ,publication ,the supervising ethics committees shall publish each certification submitted under subsection 7a7 on a publicly available website4 #bjd4 ,authority of supervising ethics committees 7a7 ,in general ,the supervising ethics committees may implement and enforce the requirements of this title1 including by-- 7#a7 issuing-- 7,a7 for ,members of ,congress-- 7i7 rules governing that implementation2 and 7ii7 #a or more reasonable extensions to achieve compliance with this title1 if the supervising ethics committee determines that a ,member of ,congress is making a good faith effort to divest any covered financial instruments2 and 7,b7 guidance relating to covered financial instruments2 7#b7 publishing on the internet certifications submitted by ,members of ,congress under section #bjc7;a72 and 7#c7 assessing civil fines against any ,member of ,congress who is in violation of this title1 subject to subsection 7b74 7b7 ,requirements for civil fines 7#a7 ,in general ,before imposing a fine pursuant to this section1 a supervising ethics committee shall provide to the applicable ,member of ,congress-- 7,a7 a written notice describing each covered financial instrument transaction for which a fine will be assessed2 and 7,b7 an opportunity1 with respect to each such covered financial instrument transaction-- 7i7 for a hearing2 and 7ii7 to achieve compliance with the requirements of this title4 7#b7 ,publication ,each supervising ethics committee shall publish on a publicly available website a description of-- 7,a7 each fine assessed by the supervising ethics committee pursuant to this section2 7,b7 the reasons why each such fine was assessed2 and 7,c7 the result of each assessment1 including any hearing under paragraph 7#a77;,b77i7 relating to the assessment4 7#c7 ,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 ,representatives1 as applicable1 as a privileged motion4 #bje4 ,audit by ,government ,accountability ,office ,not later than #b years after the date of enactment of the ,preventing ,elected ,leaders from ,owning ,securities and ,investments 7,,pelosi7 ,act1 the ,comptroller ,general of the ,united ,states shall-- 7#a7 conduct an audit of the compliance by ,members of ,congress with the requirements of this title2 and 7#b7 submit to the supervising ethics committees a report describing the results of the audit conducted under paragraph 7#a74 4 7b7 ,conforming amendments 7#a7 ,section #aji of the ,ethics in ,government ,act of #aigh 7#e ,u4,s4,c4 ,app47 is amended-- 7,a7 in the matter preceding paragraph 7#a71 by striking ,for the purposes of this title1 the term-- and inserting ,in this title32 7,b7 in paragraph 7#a71 by striking means and all that follows through ,representatives2 and inserting the following3 means1 as applicable-- 7,a7 the ,select ,committee on ,ethics of the ,senate2 and 7,b7 the ,committee on ,ethics of the ,house of ,representatives4 2 7,c7 in each of paragraphs 7#b7 through 7#ag71 by striking the semicolon at the end of the paragraph and inserting a period2 7,d7 in paragraph 7#ah7-- 7i7 in subparagraph 7,b71 by striking ,standards of ,official ,conduct and inserting ,ethics2 and 7ii7 in subparagraph 7,d71 by striking 2 and at the end and inserting a period2 7,e7 in each of paragraphs 7#a7 through 7#ai7-- 7i7 by inserting ,the term after the paragraph designation2 and 7ii7 by inserting a paragraph heading1 the text of which is comprised of the term defined in that paragraph2 and 7,f7 by redesignating paragraphs 7#h7 and 7#i7 as paragraphs 7#i7 and 7#h71 respectively1 and moving the paragraphs so as to appear in numerical order4 7#b7 ,section #aja7;f7 of the ,ethics in ,government ,act of #aigh 7#e ,u4,s4,c4 ,app47 is amended-- 7,a7 in paragraph 7#i71 by striking as defined under section #aji7ab72 7,b7 in paragraph 7#aj71 by striking as defined under section #aji7ac72 7,c7 in paragraph 7#aa71 by striking as defined under section #aji7aj72 and 7,d7 in paragraph 7#ab71 by striking as defined under section #aji7h74 7#c7 ,section #aaa7b7 of the ,ethics in ,government ,act of #aigh 7#e ,u4,s4,c4 ,app47 is amended by striking ,standards of ,official ,conduct and inserting ,ethics4 7#d7 ,section #djb of the ,ethics in ,government ,act of #aigh 7#e ,u4,s4,c4 ,app47 is amended-- 7,a7 in subsection 7b71 by striking title ,,ii of each place it appears2 and 7,b7 in subsection 7f77#b77;,b7-- 7i7 by striking ,subject to clause 7iv7 of this subparagraph1 before each place it appears and inserting ,before2 and 7ii7 by striking clause 7iv74 7#e7 ,section #ejc7a77;,a7 of the ,ethics in ,government ,act of #aigh 7#e ,u4,s4,c4 ,app47 is amended by striking ,standards of ,official ,conduct and inserting ,ethics4 7#f7 ,section #c7d77;,d7 of the ,lobbying ,disclosure ,act of #aiie 7#b ,u4,s4,c4 #afjb7d77;,d77 is amended by striking legislative branch employee serving in a position described under section #aji7ac7 of the ,ethics in ,government ,act of #aigh 7#e ,u4,s4,c4 ,app47 and inserting officer or employee of the ,congress 7as defined in section #aji of the ,ethics in ,government ,act of #aigh 7#e ,u4,s4,c4 ,app4774 7#g7 ,section #ba;,a of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #ghu-#a7 is amended-- 7,a7 in subsection 7g77#b77;,b77ii71 by striking section #aji7aa7 of the ,ethics in ,government ,act of #aigh 7#e ,u4,s4,c4 ,app4 #aji7aa77 and inserting section #aji of the ,ethics in ,government ,act of #aigh 7#e ,u4,s4,c4 ,app472 and 7,b7 in subsection 7h77#b7-- 7i7 in subparagraph 7,b71 by striking section #aji7h7 of the ,ethics in ,government ,act of #aigh 7#e ,u4,s4,c4 ,app4 #aji7h77 and inserting section #aji of the ,ethics in ,government ,act of #aigh 7#e ,u4,s4,c4 ,app472 and 7ii7 in subparagraph 7,c71 by striking under section #aji7aj7 of the ,ethics in ,government ,act of #aigh 7#e ,u4,s4,c4 ,app4 #aji7aj77 and inserting in section #aji of the ,ethics in ,government ,act of #aigh 7#e ,u4,s4,c4 ,app474