Preventing Elected Leaders from Owning Securities and Investments (PELOSI) Act
Impact
If enacted, SB439 would amend Chapter 131 of Title 5 of the United States Code, establishing stringent regulations on the financial activities of lawmakers. By effectively banning insider trading among Congress members, the bill seeks to enhance the ethical standards and accountability of elected officials. Members would need to disclose any holdings in covered financial instruments and could face civil penalties, including fines and the requirement to disgorge profits gained through prohibited transactions. This legislation aims to restore public confidence that lawmakers are acting in the interest of their constituents rather than personal financial gain.
Summary
SB439, titled the Preventing Elected Leaders from Owning Securities and Investments (PELOSI) Act, aims to prohibit Members of Congress and their spouses from holding, purchasing, or selling covered financial instruments during their term of service. Covered financial instruments include securities, securities futures, and commodities, as well as comparable economic interests acquired through synthetic means such as derivatives. The bill specifically excludes diversified mutual funds, exchange-traded funds, U.S. Treasury securities, and compensation from primary occupations of a Member's spouse or dependent.
Contention
Discussions around SB439 are likely to center on the balance between the legal and ethical obligations of elected officials versus their rights to manage personal wealth. Critics may argue that the bill overly restricts the financial freedoms of Congress members, while proponents view it as a crucial step towards eliminating conflicts of interest in government. Furthermore, the effectiveness of enforcement measures and the scope of compliance, including the role of supervising ethics committees in monitoring and adjudicating violations, will be key points in legislative debates.
Related
Preventing Elected Leaders from Owning Securities and Investments (PELOSI) Act This bill prohibits Members of Congress (or their spouses) from holding or trading certain investments (e.g., individual stocks and related financial instruments other than diversified investment funds or U.S. Treasury securities). The prohibition does not apply to assets held in a qualified blind trust or to sales by a Member to come into compliance with the bill's requirements. Specifically, the bill allows for sales by current Members during the 180 days following the bill's enactment and for sales by future Members during the 180 days following the commencement of their service. Any profit made in violation of the prohibition must be disgorged to the Treasury and may subject the Member to a civil fine. Additionally, a loss stemming from a prohibited holding or transaction may not be used as an income tax deduction. Each Member must submit an annual certification of compliance, and the Government Accountability Office must audit Members' compliance with the bill's provisions.
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.