I 

112TH CONGRESS 

1ST SESSION H. R. 3639 

To amend the Ethics in Government Act of 1978 to require federally elected 

officials to place their stocks, bonds, commodities futures, and other 

forms of securities in a blind trust. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 13, 2011 

Mr. NUGENT introduced the following bill; which was referred to the Committee on Oversight and Government Reform, and in addition to the 

Committee on House Administration, 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 

federally elected officials to place their stocks, bonds, 

commodities futures, and other forms of securities in 

a blind trust. 

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 ‘‘Prevent Insider Trad5 ing by Elected Officials Act’’. 


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1 SEC. 2. REQUIREMENT OF ELECTED OFFICIALS TO USE 

2 BLIND TRUST. 

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. ELECTED OFFICIALS REQUIRED TO ESTABLISH 

7 A BLIND TRUST. 

8 ‘‘(a) REQUIREMENT.—The President, Vice President, 

9 and each Member of Congress shall place all of such per10 son’s stocks, bonds, commodities futures, and other forms 

11 of securities, including securities held jointly with such 

12 person’s spouse, in a qualified blind trust (as defined in 

13 section 102(f)(3)). 

14 ‘‘(b) EXCLUSION.—Subsection (a) shall not apply to 

15 the financial interests or benefits described under section 

16 102(i). 

17 ‘‘(c) TIMING AND EXTENSION.— 

18 ‘‘(1) IN GENERAL.—The President, Vice Presi19 dent, and each Member of Congress shall comply 

20 with subsection (a) not later than 30 days after tak21 ing office, or in the case of those persons serving in 

22 those offices on the date of enactment of the Prevent 

23 Insider Trading by Elected Officials Act, not later 

24 than 30 days after such date of enactment. 

25 ‘‘(2) EXTENSION.— 


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1 ‘‘(A) The President and Vice President 

2 may file with the Director of the Office of Gov3 ernment Ethics for an additional 30 day exten4 sion to comply with subsection (a). 

5 ‘‘(B) A Member of Congress may file, with 

6 the Clerk of the House of Representatives in 

7 the case of a Representative or Delegate of 

8 Congress and the Resident Commissioner from 

9 Puerto Rico, and with the Secretary of the Sen10 ate, in the case of a Senator, for an additional 

11 30 day extension to comply with subsection (a). 

12 ‘‘(d) CIVIL PENALTY FOR FAILURE TO COMPLY.— 

13 The Attorney General may bring a civil action in any ap14 propriate United States district court against the Presi15 dent, Vice President, or any Member of Congress who 

16 knowingly and willfully fails to comply with subsection (a) 

17 by the end of the time period specified in subsection (c). 

18 The court in which such action is brought may assess 

19 against such person a civil penalty not to exceed 

20 $50,000.’’. 

Æ 


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