II 

112TH CONGRESS 

1ST SESSION S. 1903 

To prohibit commodities and securities trading based on nonpublic information 

relating to Congress, to require additional reporting by Members and 

employees of Congress of securities transactions, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 17, 2011 

Mrs. GILLIBRAND (for herself, Mr. TESTER, Ms. STABENOW, Mr. DURBIN, 

Mrs. MCCASKILL, Ms. KLOBUCHAR, Mr. RUBIO, and Mr. BLUMENTHAL) 

introduced the following bill; which was read twice and referred to the 

Committee on Homeland Security and Governmental Affairs 

A BILL 

To prohibit commodities and securities trading based on nonpublic information relating to Congress, to require additional reporting by Members and employees of Congress 

of securities transactions, 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 ‘‘Stop Trading on Con5 gressional Knowledge Act’’. 


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1 SEC. 2. NONPUBLIC INFORMATION RELATING TO CON2 GRESS AND OTHER FEDERAL EMPLOYEES. 

3 (a) COMMODITIES TRANSACTIONS.—Section 4c of the 

4 Commodity Exchange Act (7 U.S.C. 6c) is amended by 

5 adding at the end the following: 

6 ‘‘(h) NONPUBLIC INFORMATION.— 

7 ‘‘(1) DEFINITIONS.—In this subsection: 

8 ‘‘(A) AGENCY.—The term ‘agency’ has the 

9 meaning given the term in section 551 of title 

10 5, United States Code. 

11 ‘‘(B) MATERIAL NONPUBLIC INFORMA12 TION.—The term ‘material nonpublic informa13 tion’— 

14 ‘‘(i) has the meaning given the term 

15 by the Commission by rule; 

16 ‘‘(ii) includes any information that— 

17 ‘‘(I) a member or employee of 

18 Congress, or an employee of an agen19 cy, as applicable, gains by reason of 

20 that position or employment; and 

21 ‘‘(II) the member or employee 

22 knows or should know has not been 

23 made available to the general public; 

24 and 

25 ‘‘(iii) includes information that— 


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1 ‘‘(I) is routinely exempt from dis2 closure under section 552 of title 5, 

3 United States Code, or otherwise pro4 tected from disclosure by law (includ5 ing Executive orders and regulations); 

6 ‘‘(II) is designated as confidential 

7 by an agency; or 

8 ‘‘(III) has not actually been dis9 seminated to the general public and is 

10 not authorized to be made available to 

11 the public on request. 

12 ‘‘(2) NONPUBLIC INFORMATION RELATING TO

13 CONGRESS.—Not later than 270 days after the date 

14 of enactment of this subsection, the Commission 

15 shall by rule prohibit any person from buying or sell16 ing any commodity for future delivery or swap while 

17 the person is in possession of material nonpublic in18 formation relating to any pending or prospective leg19 islative action relating to the commodity if— 

20 ‘‘(A)(i) the information was obtained by 

21 reason of the person being a Member or em22 ployee of Congress; or 

23 ‘‘(ii)(I) the information was obtained from 

24 a Member or employee of Congress; and 


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1 ‘‘(II) the person knows that the informa2 tion was so obtained; and 

3 ‘‘(B) the person acted with the intent to 

4 assist another person, directly or indirectly, to 

5 use the information to enter into, or offer to 

6 buy or sell the securities of such publicly traded 

7 company based on such information. 

8 ‘‘(3) NONPUBLIC INFORMATION RELATING TO

9 OTHER FEDERAL EMPLOYEES.—Not later than 270 

10 days after the date of enactment of this subsection, 

11 the Commission shall by rule prohibit any person 

12 from buying or selling any commodity for future de13 livery or swap while the person is in possession of 

14 material nonpublic information derived from Federal 

15 employment and relating to the commodity if— 

16 ‘‘(A)(i) the information was obtained by 

17 reason of the person being an employee of an 

18 agency; or 

19 ‘‘(ii)(I) the information was obtained from 

20 an employee of an agency; and 

21 ‘‘(II) the person knows that the informa22 tion was so obtained; and 

23 ‘‘(B) the person acted with the intent to 

24 assist another person, directly or indirectly, to 

25 use the information to enter into, or offer to 


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1 buy or sell the securities of such publicly traded 

2 company based on such information.’’. 

3 (b) SECURITIES TRANSACTIONS.— 

4 (1) DEFINITIONS.—As used in this sub5 section— 

6 (A) the term ‘‘agency’’ has the same mean7 ing as in section 551(1) of title 5, United 

8 States Code; 

9 (B) the term ‘‘Commission’’ means the Se10 curities and Exchange Commission; and 

11 (C) the term ‘‘material nonpublic informa12 tion’’— 

13 (i) has the meaning given that term 

14 by rule of the Commission; and 

15 (ii) includes any information that a 

16 member or employee of Congress or an em17 ployee of an agency, as applicable, gains by 

18 reason of such position or employment, 

19 and that such member or employee knows 

20 or should know has not been made avail21 able to the general public, including infor22 mation that— 

23 (I) is routinely exempt from dis24 closure under section 552 of title 5, 

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1 tected from disclosure by statute, Ex2 ecutive Order, or regulation; 

3 (II) is designated as confidential 

4 by an agency; or 

5 (III) has not actually been dis6 seminated to the general public and is 

7 not authorized to be made available to 

8 the public on request. 

9 (2) NONPUBLIC INFORMATION RELATING TO

10 CONGRESS.—Not later than 270 days after the date 

11 of enactment of this Act, the Commission shall, by 

12 rule, prohibit any person from buying or selling the 

13 securities or security-based swaps of any issuer while 

14 such person is in possession of material nonpublic 

15 information relating to any pending or prospective 

16 legislative action relating to such issuer, if— 

17 (A)(i) such information was obtained by 

18 reason of such person being a Member or em19 ployee of Congress; or 

20 (ii) such information was obtained from a 

21 Member or employee of Congress, and such per22 son knows that the information was so ob23 tained; 

24 (B) the person acted with the intent to as25 sist another person, directly or indirectly, to use 


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1 the information to enter into, or offer to buy or 

2 sell the securities of such publicly traded com3 pany based on such information. 

4 (3) NONPUBLIC INFORMATION RELATING TO

5 OTHER FEDERAL EMPLOYEES.—Not later than 270 

6 days after the date of enactment of this subsection, 

7 the Commission shall, by rule, prohibit any person 

8 from buying or selling the securities or security9 based swaps of any issuer while such person is in 

10 possession of material nonpublic information derived 

11 from Federal employment and relating to such 

12 issuer, if— 

13 (A)(i) such information was obtained by 

14 reason of such person being an employee of an 

15 agency; or 

16 (ii) such information was obtained from 

17 such an employee, and such person knows that 

18 the information was so obtained; and 

19 (B) the person acted with the intent to as20 sist another person, directly or indirectly, to use 

21 the information to enter into, or offer to buy or 

22 sell the securities of such publicly traded com23 pany based on such information. 


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1 SEC. 3. AMENDMENT TO THE RULES OF THE SENATE RE2 GARDING FINANCIAL TRADING BASED ON 

3 NONPUBLIC INFORMATION. 

4 Rule XXXVII of the Standing Rules of the Senate 

5 is amended by— 

6 (1) redesignating paragraph 15 as paragraph 

7 16; and 

8 (2) inserting at the end the following: 

9 ‘‘15. A Member, officer, or employee of the Senate 

10 shall not— 

11 ‘‘(1) disclose material nonpublic information re12 lating to any pending or prospective legislative ac13 tion relating to any publicly traded company if that 

14 Member, officer, or employee acts with the intent to 

15 assist another person, directly or indirectly, to use 

16 the information to enter into, or offer to buy or sell 

17 the securities of such publicly traded company based 

18 on such information; or 

19 ‘‘(2) disclose material nonpublic information re20 lating to any pending or prospective legislative ac21 tion relating to any commodity if that Member, offi22 cer, or employee acts with the intent to assist an23 other person, directly or indirectly, to use the infor24 mation to enter into, or offer to buy or sell the secu25 rities of such publicly traded company based on such 

26 information.’’. 


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1 SEC. 4. TIMELY REPORTING OF FINANCIAL TRANSACTIONS. 

2 (a) REPORTING REQUIREMENT.—Section 103 of the 

3 Ethics in Government Act of 1978 is amended by adding 

4 at the end the following subsection: 

5 ‘‘(l) Within 90 days after the purchase, sale, or ex6 change of any stocks, bonds, commodities futures, or other 

7 forms of securities that are otherwise required to be re8 ported under this Act and the transaction of which in9 volves at least $1,000 by any Member of Congress or offi10 cer or employee of the legislative branch required to so 

11 file, that Member, officer, or employee shall file a report 

12 of that transaction with the Clerk of the House of Rep13 resentatives in the case of a Representative in Congress, 

14 a Delegate to Congress, or the Resident Commissioner 

15 from Puerto Rico, or with the Secretary of the Senate in 

16 the case of a Senator.’’. 

17 (b) EFFECTIVE DATE.—The amendment made by 

18 subsection (a) shall apply to transactions occurring on or 

19 after the date that is 90 days after the date of the enact20 ment of this Act. 

21 SEC. 5. DISCLOSURE OF POLITICAL INTELLIGENCE ACTIVI22 TIES UNDER LOBBYING DISCLOSURE ACT. 

23 (a) DEFINITIONS.—Section 3 of the Lobbying Disclo24 sure Act of 1995 (2 U.S.C. 1602) is amended— 

25 (1) in paragraph (2)— 


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1 (A) by inserting after ‘‘lobbying activities’’ 

2 each place that term appears the following: ‘‘or 

3 political intelligence activities’’; and 

4 (B) by inserting after ‘‘lobbyists’’ the fol5 lowing: ‘‘or political intelligence consultants’’; 

6 and 

7 (2) by adding at the end the following new 

8 paragraphs: 

9 ‘‘(17) POLITICAL INTELLIGENCE ACTIVITIES.— 

10 The term ‘political intelligence activities’ means po11 litical intelligence contacts and efforts in support of 

12 such contacts, including preparation and planning 

13 activities, research, and other background work that 

14 is intended, at the time it is performed, for use in 

15 contacts, and coordination with such contacts and 

16 efforts of others. 

17 ‘‘(18) POLITICAL INTELLIGENCE CONTACT.— 

18 ‘‘(A) DEFINITION.—The term ‘political in19 telligence contact’ means any oral or written 

20 communication (including an electronic commu21 nication) to or from a covered executive branch 

22 official or a covered legislative branch official, 

23 the information derived from which is intended 

24 for use in analyzing securities or commodities 

25 markets, or in informing investment decisions, 


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1 and which is made on behalf of a client with re2 gard to— 

3 ‘‘(i) the formulation, modification, or 

4 adoption of Federal legislation (including 

5 legislative proposals); 

6 ‘‘(ii) the formulation, modification, or 

7 adoption of a Federal rule, regulation, Ex8 ecutive order, or any other program, policy, 

9 or position of the United States Govern10 ment; or 

11 ‘‘(iii) the administration or execution 

12 of a Federal program or policy (including 

13 the negotiation, award, or administration 

14 of a Federal contract, grant, loan, permit, 

15 or license). 

16 ‘‘(B) EXCEPTION.—The term ‘political in17 telligence contact’ does not include a commu18 nication that is made by or to a representative 

19 of the media if the purpose of the communica20 tion is gathering and disseminating news and 

21 information to the public. 

22 ‘‘(19) POLITICAL INTELLIGENCE FIRM.—The 

23 term ‘political intelligence firm’ means a person or 

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1 ical intelligence consultants to a client other than 

2 that person or entity. 

3 ‘‘(20) POLITICAL INTELLIGENCE CONSULT4 ANT.—The term ‘political intelligence consultant’ 

5 means any individual who is employed or retained by 

6 a client for financial or other compensation for serv7 ices that include one or more political intelligence 

8 contacts.’’. 

9 (b) REGISTRATION REQUIREMENT.—Section 4 of the 

10 Lobbying Disclosure Act of 1995 (2 U.S.C. 1603) is 

11 amended— 

12 (1) in subsection (a)— 

13 (A) in paragraph (1)— 

14 (i) by inserting after ‘‘whichever is 

15 earlier,’’ the following: ‘‘or a political intel16 ligence consultant first makes a political 

17 intelligence contact,’’; and 

18 (ii) by inserting after ‘‘such lobbyist’’ 

19 each place that term appears the following: 

20 ‘‘or consultant’’; 

21 (B) in paragraph (2), by inserting after 

22 ‘‘lobbyists’’ each place that term appears the 

23 following: ‘‘or political intelligence consultants’’; 

24 and 

25 (C) in paragraph (3)(A)— 


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1 (i) by inserting after ‘‘lobbying activi2 ties’’ each place that term appears the fol3 lowing: ‘‘and political intelligence activi4 ties’’; and 

5 (ii) in clause (i), by inserting after 

6 ‘‘lobbying firm’’ the following: ‘‘or political 

7 intelligence firm’’; 

8 (2) in subsection (b)— 

9 (A) in paragraph (3), by inserting after 

10 ‘‘lobbying activities’’ each place that term ap11 pears the following: ‘‘or political intelligence ac12 tivities’’; 

13 (B) in paragraph (4)— 

14 (i) in the matter preceding subpara15 graph (A), by inserting after ‘‘lobbying ac16 tivities’’ the following: ‘‘or political intel17 ligence activities’’; and 

18 (ii) in subparagraph (C), by inserting 

19 after ‘‘lobbying activity’’ the following: ‘‘or 

20 political intelligence activity’’; 

21 (C) in paragraph (5), by inserting after 

22 ‘‘lobbying activities’’ each place that term ap23 pears the following: ‘‘or political intelligence ac24 tivities’’; 


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1 (D) in paragraph (6), by inserting after 

2 ‘‘lobbyist’’ each place that term appears the fol3 lowing: ‘‘or political intelligence consultant’’; 

4 and 

5 (E) in the matter following paragraph (6), 

6 by inserting ‘‘or political intelligence activities’’ 

7 after ‘‘such lobbying activities’’; 

8 (3) in subsection (c)— 

9 (A) in paragraph (1), by inserting after 

10 ‘‘lobbying contacts’’ the following: ‘‘or political 

11 intelligence contacts’’; and 

12 (B) in paragraph (2)— 

13 (i) by inserting after ‘‘lobbying con14 tact’’ the following: ‘‘or political intel15 ligence contact’’; and 

16 (ii) by inserting after ‘‘lobbying con17 tacts’’ the following: ‘‘and political intel18 ligence contacts’’; and 

19 (4) in subsection (d), by inserting after ‘‘lob20 bying activities’’ each place that term appears the 

21 following: ‘‘or political intelligence activities’’. 

22 (c) REPORTS BY REGISTERED POLITICAL INTEL23 LIGENCE CONSULTANTS.—Section 5 of the Lobbying Dis24 closure Act of 1995 (2 U.S.C. 1604) is amended— 


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1 (1) in subsection (a), by inserting after ‘‘lob2 bying activities’’ the following: ‘‘and political intel3 ligence activities’’; 

4 (2) in subsection (b)— 

5 (A) in paragraph (2)— 

6 (i) in the matter preceding subpara7 graph (A), by inserting after ‘‘lobbying ac8 tivities’’ the following: ‘‘or political intel9 ligence activities’’; 

10 (ii) in subparagraph (A)— 

11 (I) by inserting after ‘‘lobbyist’’ 

12 the following: ‘‘or political intelligence 

13 consultant’’; and 

14 (II) by inserting after ‘‘lobbying 

15 activities’’ the following: ‘‘or political 

16 intelligence activities’’; 

17 (iii) in subparagraph (B), by inserting 

18 after ‘‘lobbyists’’ the following: ‘‘and polit19 ical intelligence consultants’’; and 

20 (iv) in subparagraph (C), by inserting 

21 after ‘‘lobbyists’’ the following: ‘‘or political 

22 intelligence consultants’’; 

23 (B) in paragraph (3)— 


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1 (i) by inserting after ‘‘lobbying firm’’ 

2 the following: ‘‘or political intelligence 

3 firm’’; and 

4 (ii) by inserting after ‘‘lobbying activi5 ties’’ each place that term appears the fol6 lowing: ‘‘or political intelligence activities’’; 

7 and 

8 (C) in paragraph (4), by inserting after 

9 ‘‘lobbying activities’’ each place that term ap10 pears the following: ‘‘or political intelligence ac11 tivities’’; and 

12 (3) in subsection (d)(1), in the matter pre13 ceding subparagraph (A), by inserting ‘‘or a political 

14 intelligence consultant’’ after ‘‘a lobbyist’’. 

15 (d) DISCLOSURE AND ENFORCEMENT.—Section 6(a) 

16 of the Lobbying Disclosure Act of 1995 (2 U.S.C. 1605) 

17 is amended— 

18 (1) in paragraph (3)(A), by inserting after ‘‘lob19 bying firms’’ the following: ‘‘, political intelligence 

20 consultants, political intelligence firms,’’; 

21 (2) in paragraph (7), by striking ‘‘or lobbying 

22 firm’’ and inserting ‘‘lobbying firm, political intel23 ligence consultant, or political intelligence firm’’; and 


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1 (3) in paragraph (8), by striking ‘‘or lobbying 

2 firm’’ and inserting ‘‘lobbying firm, political intel3 ligence consultant, or political intelligence firm’’. 

4 (e) RULES OF CONSTRUCTION.—Section 8(b) of the 

5 Lobbying Disclosure Act of 1995 (2 U.S.C. 1607(b)) is 

6 amended by striking ‘‘or lobbying contacts’’ and inserting 

7 ‘‘lobbying contacts, political intelligence activities, or polit8 ical intelligence contacts’’. 

9 (f) IDENTIFICATION OF CLIENTS AND COVERED OF10 FICIALS.—Section 14 of the Lobbying Disclosure Act of 

11 1995 (2 U.S.C. 1609) is amended— 

12 (1) in subsection (a)— 

13 (A) in the heading, by inserting ‘‘OR PO14 LITICAL INTELLIGENCE’’ after ‘‘LOBBYING’’; 

15 (B) by inserting ‘‘or political intelligence 

16 contact’’ after ‘‘lobbying contact’’ each place 

17 that term appears; and 

18 (C) in paragraph (2), by inserting ‘‘or po19 litical intelligence activity, as the case may be’’ 

20 after ‘‘lobbying activity’’; 

21 (2) in subsection (b)— 

22 (A) in the heading, by inserting ‘‘OR PO23 LITICAL INTELLIGENCE’’ after ‘‘LOBBYING’’; 


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1 (B) by inserting ‘‘or political intelligence 

2 contact’’ after ‘‘lobbying contact’’ each place 

3 that term appears; and 

4 (C) in paragraph (2), by inserting ‘‘or po5 litical intelligence activity, as the case may be’’ 

6 after ‘‘lobbying activity’’; and 

7 (3) in subsection (c), by inserting ‘‘or political 

8 intelligence contact’’ after ‘‘lobbying contact’’. 

9 (g) ANNUAL AUDITS AND REPORTS BY COMP10 TROLLER GENERAL.—Section 26 of the Lobbying Disclo11 sure Act of 1995 (2 U.S.C. 1614) is amended— 

12 (1) in subsection (a)— 

13 (A) by inserting ‘‘political intelligence 

14 firms, political intelligence consultants,’’ after 

15 ‘‘lobbying firms’’; and 

16 (B) by striking ‘‘lobbying registrations’’ 

17 and inserting ‘‘registrations’’; 

18 (2) in subsection (b)(1)(A), by inserting ‘‘polit19 ical intelligence firms, political intelligence consult20 ants,’’ after ‘‘lobbying firms’’; and 

21 (3) in subsection (c), by inserting ‘‘or political 

22 intelligence consultant’’ after ‘‘a lobbyist’’. 

23 SEC. 6. EFFECTIVE DATE. 

24 Subject to section 5(b), this Act and the amendments 

25 made by this Act shall take effect at the end of the 90- 


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1 day period beginning on the date of the enactment of this 

2 Act. 

Æ 


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