I 

118TH CONGRESS 

1ST SESSION H. R. 6141 

To amend title 5, United States Code, to prohibit sale or purchase of covered 

financial instruments by Members of Congress and their spouses, and 

for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 1, 2023 

Mr. FALLON introduced the following bill; which was referred to the 

Committee on House Administration 

A BILL 

To amend title 5, United States Code, to prohibit sale or 

purchase of covered financial instruments by Members 

of Congress and their spouses, 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 ‘‘Insider Trading Pre5 vention Act’’. 


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1 SEC. 2. PROHIBITION ON OWNERSHIP OF FINANCIAL IN2 STRUMENTS. 

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

4 States Code, is amended by adding at the end the fol5 lowing: 

6 ‘‘SUBCHAPTER IV—PROHIBITION ON 

7 OWNERSHIP OF FINANCIAL INSTRUMENTS 

8 ‘‘§ 13151. Definitions 

9 ‘‘In this subchapter: 

10 ‘‘(1) COVERED FINANCIAL INSTRUMENT.— 

11 ‘‘(A) IN GENERAL.—The term ‘covered fi12 nancial instrument’ means a security (as de13 fined in section 3(a) of the Securities Exchange 

14 Act of 1934 (15 U.S.C. 78c(a))). 

15 ‘‘(B) EXCLUSIONS.—The term ‘covered fi16 nancial instrument’ does not include— 

17 ‘‘(i) a United States Treasury bill, 

18 note, or bond; 

19 ‘‘(ii) an exchange-traded fund; 

20 ‘‘(iii) a mutual fund; or 

21 ‘‘(iv) any investment fund held in a 

22 Federal, State, or local government em23 ployee retirement plan. 

24 ‘‘(2) COVERED INDIVIDUAL.—The term ‘cov25 ered individual’ means any of the following: 

26 ‘‘(A) A Member of Congress. 


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1 ‘‘(B) The spouse of a Member of Congress. 

2 ‘‘(3) MEMBER OF CONGRESS.—The term ‘Mem3 ber of Congress’ has the meaning given that term in 

4 section 13101. 

5 ‘‘(4) SUPERVISING ETHICS OFFICE.—The term 

6 ‘supervising ethics office’ has the meaning given that 

7 term in section 13101. 

8 ‘‘§ 13152. Limitation on owning or trading covered fi9 nancial instruments 

10 ‘‘(a) REQUIREMENT.—Except as provided in sub11 section (b), no covered individual may— 

12 ‘‘(1) buy a covered financial instrument on or 

13 after the date of enactment of the Insider Trading 

14 Prevention Act or the date on which such individual 

15 becomes a covered individual, whichever is later; or 

16 ‘‘(2) sell a covered financial instrument de17 scribed in paragraph (1). 

18 ‘‘(b) ASSETS ACQUIRED THROUGH SPECIAL CIR19 CUMSTANCES.—Beginning one year after the date on 

20 which a spouse of a Member of Congress is employed in 

21 the primary occupation of such spouse, such spouse may 

22 receive a covered financial instrument as compensation 

23 from such primary occupation during the period of em24 ployment at such occupation. 

25 ‘‘(c) PROOF OF COMPLIANCE.— 


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1 ‘‘(1) SUBMISSION.—A covered individual shall 

2 submit to the supervising ethics office a pledge of 

3 compliance with the requirements of this subchapter, 

4 and shall produce, upon request of the supervising 

5 ethics office, material or information determined by 

6 the supervising ethics committee to be necessary to 

7 indicate compliance with the provisions of this sub8 chapter. 

9 ‘‘(2) CERTIFICATE.—The supervising ethics of10 fice shall provide each covered individual in compli11 ance with the provisions of this subchapter with a 

12 certificate of compliance. 

13 ‘‘(3) ANNUAL PUBLICATION.—The supervising 

14 ethics office shall make available annually, on a pub15 licly accessible website, all certificates issued under 

16 this subsection. 

17 ‘‘§ 13153. Fine for noncompliance 

18 ‘‘An individual subject to the requirements of this 

19 subchapter who is in violation of this subchapter as deter20 mined by the supervising ethics office shall pay a fine 

21 equal to the higher of the following amounts: 

22 ‘‘(1) $25,000 per violation. 

23 ‘‘(2) The value of the covered financial instru24 ment sold or purchased by the individual.’’. 


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1 (b) CLERICAL AMENDMENT.—The table of sections 

2 for such chapter is amended by inserting after the item 

3 relating to section 13146 the following: 

‘‘SUBCHAPTER IV—PROHIBITION ON OWNERSHIP OF FINANCIAL INSTRUMENTS

‘‘13151. Definitions. 

‘‘13152. Limitation on owning or trading covered financial instruments. 

‘‘13153. Fine for noncompliance.’’. 

Æ 


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