If enacted, this legislation would limit the ability of Congress members to hold, purchase, or sell covered financial instruments, which include various types of securities and commodities, during their term of service. Exceptions would allow Congress members to retain covered financial instruments in qualified blind trusts but would impose strict obligations on them to disclose compliance to the supervising ethics office. Moreover, any profits gained from prohibited transactions would need to be returned to the U.S. Treasury, further emphasizing the bill’s commitment to curtail wrongful financial conduct and increase accountability in public service.
Summary
House Bill 1138, titled the 'Prohibit Insider Trading Act,' aims to amend Title 5 of the United States Code by instituting a ban on certain financial transactions involving covered financial instruments by Members of Congress and their spouses. The bill is designed to address concerns regarding the ethical implications of congressional members engaging in financial trades based on nonpublic information obtained through their legislative roles. It seeks to enhance the integrity of Congress by preventing potential conflicts of interest and promoting greater transparency in the financial dealings of its members.
Contention
While the bill aims to bolster ethical standards among Members of Congress, its introduction could spark debate regarding the potential implications for financial autonomy of elected officials. Proponents of the bill argue that it is a necessary measure to prevent any perception of impropriety and to safeguard public trust in the political system. Critics, however, may contend that such restrictions could impede Congress members’ rights to manage their own investments and diminish their ability to participate fully in financial markets.
Additional_provisions
The bill also outlines penalties for violations, including the requirement to disgorge profits from unlawful transactions and a prohibition against deducting losses incurred during violations from income taxes. Additionally, each Congress member would need to certify compliance annually, with audits conducted biannually by the supervising ethics office to ensure adherence to the new regulations. This framework establishes a definitive structure to enhance accountability and promote ethical behavior amongst federal lawmakers.
Providing for consideration of the bill (H.R. 1908) to prohibit stock trading and ownership by Members of Congress and their spouses and dependent children, and for other purposes.
Inaction Has Consequences Act This bill withholds the salaries of Members of a chamber of Congress that has not passed each of the annual appropriations bills before the beginning of the fiscal year, beginning with FY2024. Salaries are released on the earlier of (1) the date on which the chamber of Congress passes the bills, or (2) the last day of the Congress.
Citizen Legislature Anti-Corruption Reform of Congress Act or the CLEAN Congress Act This bill (1) requires bills, orders, resolutions, or votes submitted by Congress to the President to include only one subject that is clearly and descriptively expressed in the measure's title; and (2) makes ineffective any provision of law that excludes its application to a Member of Congress or to an employee in a Member's office.
Citizen Legislature Anti-Corruption Reform of Congress Act or the CLEAN Congress Act This bill (1) requires bills, orders, resolutions, or votes submitted by Congress to the President to include only one subject that is clearly and descriptively expressed in the measure's title; and (2) makes ineffective any provision of law that excludes its application to a Member of Congress or to an employee in a Member's office.