I 

112TH CONGRESS 

1ST SESSION H. R. 3550 

To amend the Ethics in Government Act of 1978 to require certain individuals 

subject to that Act to either place their securities in a blind trust 

or to report the sale, purchase, or exchange of securities. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 2, 2011 

Mr. DUFFY introduced the following bill; which was referred to the Committee 

on Oversight and Government Reform, and in addition to the Committees 

on House Administration and the Judiciary, 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 amend the Ethics in Government Act of 1978 to require 

certain individuals subject to that Act to either place 

their securities in a blind trust or to report the sale, 

purchase, or exchange of securities. 

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 ‘‘Restoring Ethical 

5 Standards, Transparency, and Responsibility in Congres6 sional Trading Act’’ or the ‘‘RESTRICT Act’’. 


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1 SEC. 2. REQUIREMENT TO USE BLIND TRUST OR FILE RE2 PORTS. 

3 The Ethics in Government Act of 1978 (5 U.S.C. 

4 App.) is amended by inserting after section 101 the fol5 lowing new section: 

6 ‘‘SEC. 101A. INDIVIDUALS REQUIRED TO ESTABLISH A 

7 BLIND TRUST OR FILE REPORTS. 

8 ‘‘(a) REQUIREMENT.—Individuals described in sec9 tion 101(f) shall— 

10 ‘‘(1) place all of such individual’s stocks, bonds, 

11 commodities futures, and other forms of securities, 

12 including securities held jointly with such individ13 ual’s spouse or dependent child, in a qualified blind 

14 trust (as defined under section 102(f)(3)); or 

15 ‘‘(2) file a report with the appropriate office 

16 under section 103 that contains a brief description, 

17 the date, and category of value of any purchase, 

18 sale, or exchange in stocks, bonds, commodities fu19 tures, and other forms of securities, including securi20 ties jointly held with such individual’s spouse or de21 pendent child, not later than 3 business days after 

22 such purchase, sale, or exchange is settled. 

23 ‘‘(b) EXEMPTION.—Subsection (a) shall not apply to 

24 the financial interests or benefits described under section 

25 102(i). 

26 ‘‘(c) FAILURE TO COMPLY.— 


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1 ‘‘(1) CIVIL PENALTY.—The Attorney General 

2 may bring a civil action in any appropriate United 

3 States district court against any individual subject 

4 to subsection (a) who knowingly and willfully fal5 sifies or who knowingly and willfully fails to file a 

6 report under subsection (a)(2) if such individual 

7 does not place such individual’s securities in a quali8 fied blind trust under subsection (a)(1). The court 

9 in which such action is brought may assess against 

10 such individual a civil penalty in any amount, not to 

11 exceed $50,000. 

12 ‘‘(2) CRIMINAL PENALTY.— 

13 ‘‘(A) It shall be unlawful for any individual 

14 subject to subsection (a) to knowingly and will15 ingly falsify any information that such indi16 vidual is required to report under subsection 

17 (a)(2) or to knowingly and willfully fail to file 

18 a report under subsection (a)(2) if such indi19 vidual does not place such individual’s securities 

20 in a qualified blind trust under subsection 

21 (a)(1). 

22 ‘‘(B) Any individual subject to subsection 

23 (a) who violates subparagraph (A) shall be 

24 fined under title 18, United States Code.’’. 


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1 SEC. 3. EFFECTIVE DATE. 

2 The amendments made by section 2 shall take effect 

3 30 days after the date of the enactment of this Act. 

Æ 


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