II 

118TH CONGRESS 

1ST SESSION S. 439 

To amend chapter 131 of title 5, United States Code, to prohibit transactions 

involving certain financial instruments by Members of Congress. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 15, 2023 

Mr. HAWLEY introduced the following bill; which was read twice and referred 

to the Committee on Homeland Security and Governmental Affairs 

A BILL 

To amend chapter 131 of title 5, United States Code, to 

prohibit transactions involving certain financial instruments by Members of Congress. 

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 ‘‘Preventing Elected 

5 Leaders from Owning Securities and Investments 

6 (PELOSI) Act’’. 

7 SEC. 2. BANNING INSIDER TRADING IN CONGRESS. 

8 (a) IN GENERAL.—Chapter 131 of title 5, United 

9 States Code, is amended by adding at the end the fol10 lowing: 


kjohnson on DSK79L0C42PROD with BILLS
2 

•S 439 IS

1 ‘‘Subchapter IV—Banning Insider Trading in 

2 Congress 

3 ‘‘§ 13161. Definitions 

4 ‘‘In this subchapter: 

5 ‘‘(1) COVERED FINANCIAL INSTRUMENT.— 

6 ‘‘(A) IN GENERAL.—The term ‘covered fi7 nancial instrument’ means— 

8 ‘‘(i) any investment in— 

9 ‘‘(I) a security (as defined in sec10 tion 3(a) of Securities Exchange Act 

11 of 1934 (15 U.S.C. 78c(a))); 

12 ‘‘(II) a security future (as de13 fined in that section); or 

14 ‘‘(III) a commodity (as defined in 

15 section 1a of the Commodity Ex16 change Act (7 U.S.C. 1a)); and 

17 ‘‘(ii) any economic interest com18 parable to an interest described in clause 

19 (i) that is acquired through synthetic 

20 means, such as the use of a derivative, in21 cluding an option, warrant, or other simi22 lar means. 

23 ‘‘(B) EXCLUSIONS.—The term ‘covered fi24 nancial instrument’ does not include— 

25 ‘‘(i) a diversified mutual fund; 


kjohnson on DSK79L0C42PROD with BILLS
3 

•S 439 IS

1 ‘‘(ii) a diversified exchange-traded 

2 fund; 

3 ‘‘(iii) a United States Treasury bill, 

4 note, or bond; or 

5 ‘‘(iv) compensation from the primary 

6 occupation of a spouse or dependent of a 

7 Member of Congress. 

8 ‘‘(2) MEMBER OF CONGRESS.—The term ‘Mem9 ber of Congress’ has the meaning given the term in 

10 section 13101. 

11 ‘‘(3) QUALIFIED BLIND TRUST.—The term 

12 ‘qualified blind trust’ has the meaning given the 

13 term in section 13104(f). 

14 ‘‘(4) SUPERVISING ETHICS COMMITTEE.—The 

15 term ‘supervising ethics committee’ means, as appli16 cable— 

17 ‘‘(A) the Select Committee on Ethics of 

18 the Senate; and 

19 ‘‘(B) the Committee on Ethics of the 

20 House of Representatives. 

21 ‘‘§ 13162. Prohibition on certain transactions and 

22 holdings involving covered financial in23 struments 

24 ‘‘(a) PROHIBITION.—Except as provided in sub25 section (b), a Member of Congress, or any spouse of a 


kjohnson on DSK79L0C42PROD with BILLS
4 

•S 439 IS

1 Member of Congress, may not, during the term of service 

2 of the Member of Congress, hold, purchase, or sell any 

3 covered financial instrument. 

4 ‘‘(b) EXCEPTIONS.—The prohibition under sub5 section (a) shall not apply to— 

6 ‘‘(1) a sale by a Member of Congress, or a 

7 spouse of a Member of Congress, that is completed 

8 by the date that is— 

9 ‘‘(A) for a Member of Congress serving on 

10 the date of enactment of the Preventing Elected 

11 Leaders from Owning Securities and Invest12 ments (PELOSI) Act, 180 days after that date 

13 of enactment; and 

14 ‘‘(B) for any Member of Congress who 

15 commences service as a Member of Congress 

16 after the date of enactment of the Preventing 

17 Elected Leaders from Owning Securities and 

18 Investments (PELOSI) Act, 180 days after the 

19 first date of the initial term of service; or 

20 ‘‘(2) a covered financial instrument held in a 

21 qualified blind trust operated on behalf of, or for the 

22 benefit of, the Member of Congress or spouse of the 

23 Member of Congress. 

24 ‘‘(c) PENALTIES.— 


kjohnson on DSK79L0C42PROD with BILLS
5 

•S 439 IS

1 ‘‘(1) DISGORGEMENT.—A Member of Congress 

2 shall disgorge to the Treasury of the United States 

3 any profit from a transaction or holding involving a 

4 covered financial instrument that is conducted in 

5 violation of this section. 

6 ‘‘(2) FINES.—A Member of Congress who holds 

7 or conducts a transaction involving, or whose spouse 

8 holds or conducts a transaction involving, a covered 

9 financial instrument in violation of this section may 

10 be subject to a civil fine assessed by the supervising 

11 ethics committee under section 13164. 

12 ‘‘§ 13163. Certification of compliance 

13 ‘‘(a) IN GENERAL.—Not less frequently than annu14 ally, each Member of Congress shall submit to the applica15 ble supervising ethics committee a written certification 

16 that the Member of Congress has achieved compliance 

17 with the requirements of this subchapter. 

18 ‘‘(b) PUBLICATION.—The supervising ethics commit19 tees shall publish each certification submitted under sub20 section (a) on a publicly available website. 

21 ‘‘§ 13164. Authority of supervising ethics committees 

22 ‘‘(a) IN GENERAL.—The supervising ethics commit23 tees may implement and enforce the requirements of this 

24 subchapter, including by— 

25 ‘‘(1) issuing— 


kjohnson on DSK79L0C42PROD with BILLS
6 

•S 439 IS

1 ‘‘(A) for Members of Congress— 

2 ‘‘(i) rules governing that implementa3 tion; and 

4 ‘‘(ii) 1 or more reasonable extensions 

5 to achieve compliance with this subchapter, 

6 if the supervising ethics committee deter7 mines that a Member of Congress is mak8 ing a good faith effort to divest any cov9 ered financial instruments; and 

10 ‘‘(B) guidance relating to covered financial 

11 instruments; 

12 ‘‘(2) publishing on the internet certifications 

13 submitted by Members of Congress under section 

14 13163(a); and 

15 ‘‘(3) assessing civil fines against any Member of 

16 Congress who is in violation of this subchapter, sub17 ject to subsection (b). 

18 ‘‘(b) REQUIREMENTS FOR CIVIL FINES.— 

19 ‘‘(1) IN GENERAL.—Before imposing a fine pur20 suant to this section, a supervising ethics committee 

21 shall provide to the applicable Member of Con22 gress— 

23 ‘‘(A) a written notice describing each cov24 ered financial instrument transaction for which 

25 a fine will be assessed; and 


kjohnson on DSK79L0C42PROD with BILLS
7 

•S 439 IS

1 ‘‘(B) an opportunity, with respect to each 

2 such covered financial instrument transaction— 

3 ‘‘(i) for a hearing; and 

4 ‘‘(ii) to achieve compliance with the 

5 requirements of this subchapter. 

6 ‘‘(2) PUBLICATION.—Each supervising ethics 

7 committee shall publish on a publicly available 

8 website a description of— 

9 ‘‘(A) each fine assessed by the supervising 

10 ethics committee pursuant to this section; 

11 ‘‘(B) the reasons why each such fine was 

12 assessed; and 

13 ‘‘(C) the result of each assessment, includ14 ing any hearing under paragraph (1)(B)(i) re15 lating to the assessment. 

16 ‘‘(3) APPEAL.—A Member of Congress may ap17 peal the assessment of a fine under this section to 

18 a vote on the floor of the Senate or the House of 

19 Representatives, as applicable, as a privileged mo20 tion. 

21 ‘‘§ 13165. Audit by Government Accountability Office 

22 ‘‘Not later than 2 years after the date of enactment 

23 of the Preventing Elected Leaders from Owning Securities 

24 and Investments (PELOSI) Act, the Comptroller General 

25 of the United States shall— 


kjohnson on DSK79L0C42PROD with BILLS
8 

•S 439 IS

1 ‘‘(1) conduct an audit of the compliance by 

2 Members of Congress with the requirements of this 

3 subchapter; and 

4 ‘‘(2) submit to the supervising ethics commit5 tees a report describing the results of the audit con6 ducted under paragraph (1).’’. 

7 (b) CONFORMING AMENDMENTS.— 

8 (1) Section 13103(f) of title 5, United States 

9 Code, is amended— 

10 (A) in paragraph (9), by striking ‘‘as de11 fined in section 13101 of this title’’; 

12 (B) in paragraph (10), by striking ‘‘as de13 fined in section 13101 of this title’’; 

14 (C) in paragraph (11), by striking ‘‘as de15 fined in section 13101 of this title’’; and 

16 (D) in paragraph (12), by striking ‘‘as de17 fined in section 13101 of this title’’. 

18 (2) Section 3(4)(D) of the Lobbying Disclosure 

19 Act of 1995 (2 U.S.C. 1602(4)(D)) is amended by 

20 striking ‘‘legislative branch employee serving in a po21 sition described under section 13101(13) of title 5, 

22 United States Code’’ and inserting ‘‘officer or em23 ployee of Congress (as defined in section 13101 of 

24 title 5, United States Code)’’. 


kjohnson on DSK79L0C42PROD with BILLS
9 

•S 439 IS

1 (3) The table of sections for chapter 131 of title 

2 5, United States Code, is amended by adding at the 

3 end the following: 

‘‘SUBCHAPTER IV—BANNING INSIDER TRADING IN CONGRESS

‘‘13161. Definitions. 

‘‘13162. Prohibition on certain transactions and holdings involving covered financial instruments. 

‘‘13163. Certification of compliance. 

‘‘13164. Authority of supervising ethics committees. 

‘‘13165. Audit by Government Accountability Office.’’. 

Æ 


kjohnson on DSK79L0C42PROD with BILLS