I 

112TH CONGRESS 

1ST SESSION H. R. 3565 

To reduce the salaries of Members of Congress if a Federal budget deficit 

exists, prohibit commodities and securities trading based on non-public 

information relating to Congress, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 6, 2011 

Mr. FLORES introduced the following bill; which was referred to the Committee on House Administration, and in addition to the Committees on 

Oversight and Government Reform, Agriculture, Rules, and Financial 

Services, for a period to be subsequently determined by the Speaker, in 

each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To reduce the salaries of Members of Congress if a Federal 

budget deficit exists, prohibit commodities and securities 

trading based on non-public information relating to Congress, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Reconnecting Congress 

5 with America Act of 2011’’. 


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1 SEC. 2. REDUCTION IN SALARIES OF MEMBERS OF CON2 GRESS IN RESPONSE TO FEDERAL BUDGET 

3 DEFICIT. 

4 (a) DETERMINATION OF SALARIES.—The annual 

5 rate of pay for a Member of Congress (including a Dele6 gate or Resident Commissioner to the Congress) for pay 

7 periods occurring in a calendar year shall be equal to the 

8 following: 

9 (1) If, with respect to the most recent fiscal 

10 year ending before that calendar year, the Federal 

11 deficit was equal to or greater than 3 percent of the 

12 gross domestic product, 80% of the base rate appli13 cable to the Member. 

14 (2) If, with respect to the most recent fiscal 

15 year ending before that calendar year, the Federal 

16 deficit was less than 3 percent of the gross domestic 

17 product, 90% of the base rate applicable to the 

18 Member. 

19 (3) If, with respect to the most recent fiscal 

20 year ending before that calendar year, there was no 

21 Federal deficit, 100% of the base rate applicable to 

22 the Member. 

23 (b) FEDERAL DEFICIT.— 

24 (1) DEFINITION.—For purposes of this section, 

25 the term ‘‘Federal deficit’’ means, with respect to a 

26 fiscal year, the amount by which outlays of the FedVerDate Mar 15 2010 02:32 Dec 07, 2011 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3565.IH H3565

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1 eral Government exceeded receipts of the Govern2 ment for that fiscal year. 

3 (2) REPORT BY SECRETARY OF THE TREAS4 URY.—Not later than 30 days after the end of each 

5 fiscal year (beginning with fiscal year 2011), the 

6 Secretary of the Treasury shall— 

7 (A) make a determination of the gross do8 mestic product for that fiscal year; 

9 (B) make a determination of whether a 

10 Federal deficit existed with respect to that fis11 cal year, and, if so, the amount of such Federal 

12 deficit; and 

13 (C) submit a report of such determinations 

14 to Congress. 

15 (c) BASE RATE.—For purposes of this section, the 

16 ‘‘base rate’’ applicable to a Member of Congress means— 

17 (1) in the case of the Speaker of the House of 

18 Representatives, $223,500; 

19 (2) in the case of the President pro tempore of 

20 the Senate, the majority leader and the minority 

21 leader of the Senate, and the majority leader and 

22 the minority leader of the House of Representatives, 

23 $193,400; and 

24 (3) in the case of any other Member of Con25 gress, $174,000. 


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1 (d) CONFORMING AMENDMENT.—Section 601(a) of 

2 the Legislative Reorganization Act of 1946 (2 U.S.C. 31) 

3 is repealed. 

4 (e) EFFECTIVE DATE.— 

5 (1) IN GENERAL.—This section and the amend6 ments made by this section shall apply with respect 

7 to pay periods occurring on or after January 1, 

8 2013. 

9 (2) SENSE OF CONGRESS REGARDING VOL10 UNTARY RETURN OF SALARY.—It is the sense of 

11 Congress that, during pay periods occurring after 

12 the date of enactment of this Act and prior to the 

13 date referred to in paragraph (1), each Member of 

14 Congress should voluntarily adjust the amount of 

15 the Member’s salary to reflect the annual rates of 

16 pay that will take effect on such date. 

17 SEC. 3. RETIREMENT CONTRIBUTIONS FOR MEMBERS OF 

18 CONGRESS. 

19 (a) CIVIL SERVICE RETIREMENT SYSTEM.— 

20 (1) MEMBER CONTRIBUTION.—Notwithstanding 

21 any provision of subsection (a)(1)(A) or (k)(1)(A) of 

22 section 8334 of title 5, United States Code, for any 

23 period beginning on or after date of enactment of 

24 this Act, the contributions payable by a Member of 

25 Congress under such provision for such period shall 


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1 be equal to the percentage that would otherwise 

2 apply plus 4.9 percentage points. 

3 (2) GOVERNMENT CONTRIBUTION.—Notwith4 standing any provision of subsection (a)(1)(B) or 

5 (k)(1)(B) of section 8334 of such title, for any pe6 riod beginning on or after date of enactment of this 

7 Act, the contributions payable under such provision 

8 for a Member of Congress shall be equal to the per9 centage that would otherwise apply minus 4.9 per10 centage points. 

11 (b) FEDERAL EMPLOYEES’ RETIREMENT SYSTEM.— 

12 (1) MEMBER CONTRIBUTION.—Notwithstanding 

13 any provision of section 8422(a) of title 5, United 

14 States Code, for any period beginning on or after 

15 date of enactment of this Act, the contributions pay16 able by a Member of Congress under such provision 

17 for such period shall be equal to the percentage that 

18 would otherwise apply plus 4.9 percentage points. 

19 (2) GOVERNMENT CONTRIBUTION.—Notwith20 standing any provision of section 8423 of such title, 

21 for any period beginning on or after date of enact22 ment of this Act, the contributions payable under 

23 such provision for a Member of Congress shall be 

24 equal to the percentage that would otherwise apply 


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1 (disregarding paragraph (1)) minus 4.9 percentage 

2 points. 

3 SEC. 4. PROHIBITING COMMODITIES AND SECURITIES 

4 TRADING BASED ON NONPUBLIC INFORMA5 TION RELATING TO CONGRESS. 

6 (a) NONPUBLIC INFORMATION RELATING TO CON7 GRESS AND OTHER FEDERAL EMPLOYEES.— 

8 (1) COMMODITIES TRANSACTIONS.—Section 4c 

9 of the Commodity Exchange Act (7 U.S.C. 6c) is 

10 amended by adding at the end the following: 

11 ‘‘(h) NONPUBLIC INFORMATION RELATING TO CON12 GRESS.—Not later than 270 days after the date of enact13 ment of this subsection, the Commission shall by rule pro14 hibit any person from buying or selling any commodity 

15 for future delivery or swap while such person is in posses16 sion of material nonpublic information, as defined by the 

17 Commission, relating to any pending or prospective legis18 lative action relating to such commodity if— 

19 ‘‘(1) such information was obtained by reason 

20 of such person being a Member or employee of Con21 gress; or 

22 ‘‘(2) such information was obtained from a 

23 Member or employee of Congress, and such person 

24 knows that the information was so obtained. 


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1 ‘‘(i) NONPUBLIC INFORMATION RELATING TO OTHER

2 FEDERAL EMPLOYEES.— 

3 ‘‘(1) RULEMAKING.—Not later than 270 days 

4 after the date of enactment of this subsection, the 

5 Commission shall by rule prohibit any person from 

6 buying or selling any commodity for future delivery 

7 or swap while such person is in possession of mate8 rial nonpublic information derived from Federal em9 ployment and relating to such commodity if— 

10 ‘‘(A) such information was obtained by 

11 reason of such person being an employee of an 

12 agency, as such term is defined in section 

13 551(1) of title 5, United States Code; or 

14 ‘‘(B) such information was obtained from 

15 such an employee, and such person knows that 

16 the information was so obtained. 

17 ‘‘(2) MATERIAL NONPUBLIC INFORMATION.— 

18 For purposes of this subsection, the term ‘material 

19 nonpublic information’ means any information that 

20 an employee of an agency (as such term is defined 

21 in section 551(1) of title 5, United States Code) 

22 gains by reason of Federal employment and that 

23 such employee knows or should know has not been 

24 made available to the general public, including infor25 mation that— 


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1 ‘‘(A) is routinely exempt from disclosure 

2 under section 552 of title 5, United States 

3 Code, or otherwise protected from disclosure by 

4 statute, Executive order, or regulation; 

5 ‘‘(B) is designated as confidential by an 

6 agency; or 

7 ‘‘(C) has not actually been disseminated to 

8 the general public and is not authorized to be 

9 made available to the public on request.’’. 

10 (2) SECURITIES TRANSACTIONS.—Section 10 of 

11 the Securities Exchange Act of 1934 (15 U.S.C. 

12 78j) is amended by adding at the end the following: 

13 ‘‘(d) NONPUBLIC INFORMATION RELATING TO CON14 GRESS.—Not later than 270 days after the date of enact15 ment of this subsection, the Commission shall by rule pro16 hibit any person from buying or selling the securities or 

17 security based swaps of any issuer while such person is 

18 in possession of material nonpublic information, as defined 

19 by the Commission, relating to any pending or prospective 

20 legislative action relating to such issuer if— 

21 ‘‘(1) such information was obtained by reason 

22 of such person being a Member or employee of Con23 gress; or 


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1 ‘‘(2) such information was obtained from a 

2 Member or employee of Congress, and such person 

3 knows that the information was so obtained. 

4 ‘‘(e) NONPUBLIC INFORMATION RELATING TO

5 OTHER FEDERAL EMPLOYEES.— 

6 ‘‘(1) RULEMAKING.—Not later than 270 days 

7 after the date of enactment of this subsection, the 

8 Commission shall by rule prohibit any person from 

9 buying or selling the securities or security based 

10 swaps of any issuer while such person is in posses11 sion of material nonpublic information derived from 

12 Federal employment and relating to such issuer if— 

13 ‘‘(A) such information was obtained by 

14 reason of such person being an employee of an 

15 agency, as such term is defined in section 

16 551(1) of title 5, United States Code; or 

17 ‘‘(B) such information was obtained from 

18 such an employee, and such person knows that 

19 the information was so obtained. 

20 ‘‘(2) MATERIAL NONPUBLIC INFORMATION.— 

21 For purposes of this subsection, the term ‘material 

22 nonpublic information’ means any information that 

23 an employee of an agency (as such term is defined 

24 in section 551(1) of title 5, United States Code) 

25 gains by reason of Federal employment and that 


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1 such employee knows or should know has not been 

2 made available to the general public, including infor3 mation that— 

4 ‘‘(A) is routinely exempt from disclosure 

5 under section 552 of title 5, United States 

6 Code, or otherwise protected from disclosure by 

7 statute, Executive order, or regulation; 

8 ‘‘(B) is designated as confidential by an 

9 agency; or 

10 ‘‘(C) has not actually been disseminated to 

11 the general public and is not authorized to be 

12 made available to the public on request.’’. 

13 (b) COMMITTEE HEARINGS ON IMPLEMENTATION.— 

14 (1) IN GENERAL.—The Committee on Agri15 culture of the House of Representatives shall hold a 

16 hearing on the implementation by the Commodity 

17 Futures Trading Commission of subsections (h) and 

18 (i) of section 4c of the Commodity Exchange Act (as 

19 added by subsection (a)), and the Committee on Fi20 nancial Services of the House of Representatives 

21 shall hold a hearing on the implementation by the 

22 Securities Exchange Commission of subsections (d) 

23 and (e) of section 10 of the Securities Exchange Act 

24 of 1934 (as added by subsection (a)). 


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1 (2) EXERCISE OF RULEMAKING AUTHORITY.— 

2 Paragraph (1) is enacted— 

3 (A) as an exercise of the rulemaking power 

4 of the House of Representatives and, as such, 

5 shall be considered as part of the rules of the 

6 House, and such rules shall supersede any other 

7 rule of the House only to the extent that rule 

8 is inconsistent therewith; and 

9 (B) with full recognition of the constitu10 tional right of the House to change such rules 

11 (so far as relating to the procedure in the 

12 House) at any time, in the same manner, and 

13 to the same extent as in the case of any other 

14 rule of the House. 

15 SEC. 5. SENSE OF CONGRESS REGARDING APPLICATION OF 

16 LAWS TO MEMBERS. 

17 It is the sense of Congress that any law enacted by 

18 Congress should apply to Members of Congress in the 

19 same manner and to the same extent as the law applies 

20 to other individuals. 

Æ 


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