Prohibit Insider Trading Act

“IV Restrictions Regarding Financial Instruments

“13151. Definitions

“In this subchapter—

“(1) the term covered financial instrument—

“(A) 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 subclause (I) that is acquired through synthetic means, such as the use of a derivative, including an option, warrant, or other similar means; and

“(B) does not include—

“(i) a diversified mutual fund;

“(ii) a diversified exchange-traded fund;

“(iii) any investment in the Thrift Savings Plan; or

“(iv) a United States Treasury bill, note, or bond;

“(2) the term Member of Congress has the meaning given that term in section 13101;

“(3) the term supervising ethics office has the meaning given that term in section 13101; and

“(4) the term qualified blind trust has the meaning given that term in section 13104(f)(3).

“13152. Prohibition on certain transactions and holdings involving covered financial instruments

“(a) Prohibition—Except as provided in subsection (b), a Member of Congress and the Member’s spouse may not, during the term of service of the Member, hold, purchase, or sell any covered financial instrument.

“(b) Exceptions—The prohibition under subsection (a)—

“(1) shall begin to apply with respect to a Member of Congress who commences service as a Member after the date of enactment of this subchapter on the date that is seven days after the first date of the initial term of service; and

“(2) does not apply to a covered financial instrument held in a qualified blind trust operated on behalf of, or for the benefit of, a Member of Congress or the Member’s spouse.

“(c) Penalties

“(1) Disgorgement—A Member of Congress and the Member’s spouse shall disgorge to the general fund of the Treasury any profit from a transaction or holding involving a covered financial instrument that is conducted in violation of this section.

“(2) 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 the Member’s spouse.

“(3) Fines—A Member of Congress who holds or conducts a transaction involving a covered financial instrument in violation of this section may be subject to a civil fine as described under section 13106(a).

“13153. Supervising ethics office certification of compliance and audit

“(a) Certification

“(1) In general—Not later than seven days after the beginning of any session of Congress, each Member of Congress shall submit to the supervising ethics office a written certification that the Member and the Member’s spouse has achieved compliance with the requirements of this subchapter.

“(2) Publication—The supervising ethics office shall publish each certification submitted under paragraph (1) on a publicly available website.

“(b) Audit—Not less than every two years, the supervising ethics office shall conduct an audit of the compliance by Members of Congress with the requirements of this subchapter.”