I 
★
112TH CONGRESS 
1ST SESSION H. R. 1148 
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 HOUSE OF REPRESENTATIVES 
MARCH 17, 2011 
Mr. WALZ of Minnesota (for himself and Ms. SLAUGHTER) introduced the fol-
lowing bill; which was referred to the Committee on Financial Services, 
and in addition to the Committees on Agriculture, House Administration, 
the Judiciary, and Ethics, for a period to be subsequently determined by 
the Speaker, in each case for consideration of such provisions as fall with-
in the jurisdiction of the committee concerned 
A BILL 
To prohibit commodities and securities trading based on non-
public information relating to Congress, to require addi-
tional reporting by Members and employees of Congress 
of securities transactions, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Stop Trading on Con-
gressional Knowledge Act’’. 
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SEC. 2. NONPUBLIC INFORMATION RELATING TO CON-
GRESS AND OTHER FEDERAL EMPLOYEES. 
(a) COMMODITIES TRANSACTIONS.—Section 4c of the 
Commodity Exchange Act (7 U.S.C. 6c) is amended by 
adding at the end the following: 
‘‘(h) NONPUBLIC INFORMATION RELATING TO CON-
GRESS.—Not later than 270 days after the date of enact-
ment of this subsection, the Commission shall by rule pro-
hibit any person from buying or selling any commodity 
for future delivery or swap while such person is in posses-
sion of material nonpublic information, as defined by the 
Commission, relating to any pending or prospective legis-
lative action relating to such commodity if— 
‘‘(1) such information was obtained by reason 
of such person being a Member or employee of Con-
gress; or 
‘‘(2) such information was obtained from a 
Member or employee of Congress, and such person 
knows that the information was so obtained. 
‘‘(i) NONPUBLIC INFORMATION RELATING TO OTHER 
FEDERAL EMPLOYEES.— 
‘‘(1) RULEMAKING.—Not later than 270 days 
after the date of enactment of this subsection, the 
Commission shall by rule prohibit any person from 
buying or selling any commodity for future delivery 
or swap while such person is in possession of mate-
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rial nonpublic information derived from Federal em-
ployment and relating to such commodity if— 
‘‘(A) such information was obtained by 
reason of such person being an employee of an 
agency, as such term is defined in section 
551(1) of title 5, United States Code; or 
‘‘(B) such information was obtained from 
such an employee, and such person knows that 
the information was so obtained. 
‘‘(2) MATERIAL
NONPUBLIC
INFORMATION.— 
For purposes of this subsection, the term ‘material 
nonpublic information’ means any information that 
an employee of an agency (as such term is defined 
in section 551(1) of title 5, United States Code) 
gains by reason of Federal employment and that 
such employee knows or should know has not been 
made available to the general public, including infor-
mation that— 
‘‘(A) is routinely exempt from disclosure 
under section 552 of title 5, United States 
Code, or otherwise protected from disclosure by 
statute, Executive order, or regulation; 
‘‘(B) is designated as confidential by an 
agency; or 
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‘‘(C) has not actually been disseminated to 
the general public and is not authorized to be 
made available to the public on request.’’. 
(b) SECURITIES TRANSACTIONS.—Section 10 of the 
Securities Exchange Act of 1934 is amended by adding 
at the end the following: 
‘‘(d) NONPUBLIC INFORMATION RELATING TO CON-
GRESS.—Not later than 270 days after the date of enact-
ment of this subsection, the Commission shall by rule pro-
hibit any person from buying or selling the securities or 
security-based swaps of any issuer while such person is 
in possession of material nonpublic information, as defined 
by the Commission, relating to any pending or prospective 
legislative action relating to such issuer if— 
‘‘(1) such information was obtained by reason 
of such person being a Member or employee of Con-
gress; or 
‘‘(2) such information was obtained from a 
Member or employee of Congress, and such person 
knows that the information was so obtained. 
‘‘(e) NONPUBLIC
INFORMATION
RELATING
TO 
OTHER FEDERAL EMPLOYEES.— 
‘‘(1) RULEMAKING.—Not later than 270 days 
after the date of enactment of this subsection, the 
Commission shall by rule prohibit any person from 
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buying or selling the securities or security-based 
swaps of any issuer while such person is in posses-
sion of material nonpublic information derived from 
Federal employment and relating to such issuer if— 
‘‘(A) such information was obtained by 
reason of such person being an employee of an 
agency, as such term is defined in section 
551(1) of title 5, United States Code; or 
‘‘(B) such information was obtained from 
such an employee, and such person knows that 
the information was so obtained. 
‘‘(2) MATERIAL
NONPUBLIC
INFORMATION.— 
For purposes of this subsection, the term ‘material 
nonpublic information’ means any information that 
an employee of an agency (as such term is defined 
in section 551(1) of title 5, United States Code) 
gains by reason of Federal employment and that 
such employee knows or should know has not been 
made available to the general public, including infor-
mation that— 
‘‘(A) is routinely exempt from disclosure 
under section 552 of title 5, United States 
Code, or otherwise protected from disclosure by 
statute, Executive order, or regulation; 
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‘‘(B) is designated as confidential by an 
agency; or 
‘‘(C) has not actually been disseminated to 
the general public and is not authorized to be 
made available to the public on request.’’. 
SEC. 3. AMENDMENT TO THE RULES OF THE HOUSE OF 
REPRESENTATIVES REGARDING FINANCIAL 
TRADING BASED ON NONPUBLIC INFORMA-
TION. 
Rule XXIII (known as the ‘‘Code of Official Con-
duct’’) of the Rules of the House of Representatives is 
amended by redesignating clause 18 as clause 19 and by 
inserting after clause 17 the following new clause: 
‘‘18. A Member, Delegate, Resident Commis-
sioner, officer, or employee of the House shall not— 
‘‘(a) disclose material nonpublic informa-
tion relating to any pending or prospective leg-
islative action relating to any publicly traded 
company if that Member, Delegate, Resident 
Commissioner, officer, or employee has reason 
to believe that the information will be used to 
buy or sell the securities of such publicly traded 
company based on such information; or 
‘‘(b) disclose material nonpublic informa-
tion relating to any pending or prospective leg-
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islative action relating to any commodity if that 
Member, Delegate, Resident Commissioner, offi-
cer, or employee has reason to believe that the 
information will be used to buy or sell such 
commodity for future delivery based on such in-
formation.’’. 
SEC. 4. COMMITTEE HEARINGS ON IMPLEMENTATION. 
(a) IN GENERAL.—The Committee on Agriculture of 
the House of Representatives shall hold a hearing on the 
implementation by the Commodity Futures Trading Com-
mission of subsections (h) and (i) of section 4c of the Com-
modity Exchange Act (as added by section 2(b) of this 
Act), and the Committee on Financial Services of the 
House of Representatives shall hold a hearing on the im-
plementation by the Securities Exchange Commission of 
subsections (d) and (e) of section 10 of the Securities Ex-
change Act of 1934 (as added by section 2(a) of this Act). 
(b) EXERCISE OF RULEMAKING AUTHORITY.—Sub-
section (a) is enacted— 
(1) as an exercise of the rulemaking power of 
the House of Representatives and, as such, shall be 
considered as part of the rules of the House, and 
such rules shall supersede any other rule of the 
House only to the extent that rule is inconsistent 
therewith; and 
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(2) with full recognition of the constitutional 
right of the House to change such rules (so far as 
relating to the procedure in the House) at any time, 
in the same manner, and to the same extent as in 
the case of any other rule of the House. 
SEC. 5. TIMELY REPORTING OF FINANCIAL TRANSACTIONS. 
(a) REPORTING REQUIREMENT.—Section 103 of the 
Ethics in Government Act of 1978 is amended by adding 
at the end the following subsection: 
‘‘(l) Within 90 days after the purchase, sale, or ex-
change of any stocks, bonds, commodities futures, or other 
forms of securities that are otherwise required to be re-
ported under this Act and the transaction of which in-
volves at least $1000 by any Member of Congress or offi-
cer or employee of the legislative branch required to so 
file, that Member, officer, or employee shall file a report 
of that transaction with the Clerk of the House of Rep-
resentatives in the case of a Representative in Congress, 
a Delegate to Congress, or the Resident Commissioner 
from Puerto Rico, or with the Secretary of the Senate in 
the case of a Senator.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to transactions occurring on or 
after the date that is 90 days after the date of the enact-
ment of this Act. 
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SEC. 6. DISCLOSURE OF POLITICAL INTELLIGENCE ACTIVI-
TIES UNDER LOBBYING DISCLOSURE ACT. 
(a) DEFINITIONS.—Section 3 of the Lobbying Disclo-
sure Act of 1995 (2 U.S.C. 1602) is amended— 
(1) in paragraph (2)— 
(A) by inserting after ‘‘lobbying activities’’ 
each place that term appears the following: ‘‘or 
political intelligence activities’’; and 
(B) by inserting after ‘‘lobbyists’’ the fol-
lowing: ‘‘or political intelligence consultants’’; 
and 
(2) by adding at the end the following new 
paragraphs: 
‘‘(17) POLITICAL INTELLIGENCE ACTIVITIES.— 
The term ‘political intelligence activities’ means po-
litical intelligence contacts and efforts in support of 
such contacts, including preparation and planning 
activities, research, and other background work that 
is intended, at the time it is performed, for use in 
contacts, and coordination with such contacts and 
efforts of others. 
‘‘(18) POLITICAL INTELLIGENCE CONTACT.— 
‘‘(A) DEFINITION.—The term ‘political in-
telligence contact’ means any oral or written 
communication (including an electronic commu-
nication) to or from a covered executive branch 
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official or a covered legislative branch official, 
the information derived from which is intended 
for use in analyzing securities or commodities 
markets, or in informing investment decisions, 
and which is made on behalf of a client with re-
gard to— 
‘‘(i) the formulation, modification, or 
adoption of Federal legislation (including 
legislative proposals); 
‘‘(ii) the formulation, modification, or 
adoption of a Federal rule, regulation, Ex-
ecutive order, or any other program, policy, 
or position of the United States Govern-
ment; or 
‘‘(iii) the administration or execution 
of a Federal program or policy (including 
the negotiation, award, or administration 
of a Federal contract, grant, loan, permit, 
or license). 
‘‘(B) EXCEPTION.—The term ‘political in-
telligence contact’ does not include a commu-
nication that is made by or to a representative 
of the media if the purpose of the communica-
tion is gathering and disseminating news and 
information to the public. 
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‘‘(19) POLITICAL
INTELLIGENCE
FIRM.—The 
term ‘political intelligence firm’ means a person or 
entity that has 1 or more employees who are polit-
ical intelligence consultants to a client other than 
that person or entity. 
‘‘(20) POLITICAL
INTELLIGENCE
CONSULT-
ANT.—The term ‘political intelligence consultant’ 
means any individual who is employed or retained by 
a client for financial or other compensation for serv-
ices that include one or more political intelligence 
contacts.’’. 
(b) REGISTRATION REQUIREMENT.—Section 4 of the 
Lobbying Disclosure Act of 1995 (2 U.S.C. 1603) is 
amended— 
(1) in subsection (a)— 
(A) in paragraph (1)— 
(i) by inserting after ‘‘whichever is 
earlier,’’ the following: ‘‘or a political intel-
ligence consultant first makes a political 
intelligence contact,’’; and 
(ii) by inserting after ‘‘such lobbyist’’ 
each place that term appears the following: 
‘‘or consultant’’; 
(B) in paragraph (2), by inserting after 
‘‘lobbyists’’ each place that term appears the 
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following: ‘‘or political intelligence consultants’’; 
and 
(C) in paragraph (3)(A)— 
(i) by inserting after ‘‘lobbying activi-
ties’’ each place that term appears the fol-
lowing: ‘‘and political intelligence activi-
ties’’; and 
(ii) in clause (i), by inserting after 
‘‘lobbying firm’’ the following: ‘‘or political 
intelligence firm’’; 
(2) in subsection (b)— 
(A) in paragraph (3), by inserting after 
‘‘lobbying activities’’ each place that term ap-
pears the following: ‘‘or political intelligence ac-
tivities’’; 
(B) in paragraph (4)— 
(i) in the matter preceding subpara-
graph (A), by inserting after ‘‘lobbying ac-
tivities’’ the following: ‘‘or political intel-
ligence activities’’; and 
(ii) in subparagraph (C), by inserting 
after ‘‘lobbying activity’’ the following: ‘‘or 
political intelligence activity’’; 
(C) in paragraph (5), by inserting after 
‘‘lobbying activities’’ each place that term ap-
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pears the following: ‘‘or political intelligence ac-
tivities’’; 
(D) in paragraph (6), by inserting after 
‘‘lobbyist’’ each place that term appears the fol-
lowing: ‘‘or political intelligence consultant’’; 
and 
(E) in the matter following paragraph (6), 
by inserting ‘‘or political intelligence activities’’ 
after ‘‘such lobbying activities’’; 
(3) in subsection (c)— 
(A) in paragraph (1), by inserting after 
‘‘lobbying contacts’’ the following: ‘‘or political 
intelligence contacts’’; and 
(B) in paragraph (2)— 
(i) by inserting after ‘‘lobbying con-
tact’’ the following: ‘‘or political intel-
ligence contact’’; and 
(ii) by inserting after ‘‘lobbying con-
tacts’’ the following: ‘‘and political intel-
ligence contacts’’; and 
(4) in subsection (d), by inserting after ‘‘lob-
bying activities’’ each place that term appears the 
following: ‘‘or political intelligence activities’’. 
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(c) REPORTS
BY REGISTERED POLITICAL INTEL-
LIGENCE CONSULTANTS.—Section 5 of the Lobbying Dis-
closure Act of 1995 (2 U.S.C. 1604) is amended— 
(1) in subsection (a), by inserting after ‘‘lob-
bying activities’’ the following: ‘‘and political intel-
ligence activities’’; 
(2) in subsection (b)— 
(A) in paragraph (2)— 
(i) in the matter preceding subpara-
graph (A), by inserting after ‘‘lobbying ac-
tivities’’ the following: ‘‘or political intel-
ligence activities’’; 
(ii) in subparagraph (A)— 
(I) by inserting after ‘‘lobbyist’’ 
the following: ‘‘or political intelligence 
consultant’’; and 
(II) by inserting after ‘‘lobbying 
activities’’ the following: ‘‘or political 
intelligence activities’’; 
(iii) in subparagraph (B), by inserting 
after ‘‘lobbyists’’ the following: ‘‘and polit-
ical intelligence consultants’’; and 
(iv) in subparagraph (C), by inserting 
after ‘‘lobbyists’’ the following: ‘‘or political 
intelligence consultants’’; 
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(B) in paragraph (3)— 
(i) by inserting after ‘‘lobbying firm’’ 
the following: ‘‘or political intelligence 
firm’’; and 
(ii) by inserting after ‘‘lobbying activi-
ties’’ each place that term appears the fol-
lowing: ‘‘or political intelligence activities’’; 
and 
(C) in paragraph (4), by inserting after 
‘‘lobbying activities’’ each place that term ap-
pears the following: ‘‘or political intelligence ac-
tivities’’; and 
(3) in subsection (d)(1), in the matter pre-
ceding subparagraph (A), by inserting ‘‘or a political 
intelligence consultant’’ after ‘‘a lobbyist’’. 
(d) DISCLOSURE AND ENFORCEMENT.—Section 6(a) 
of the Lobbying Disclosure Act of 1995 (2 U.S.C. 1605) 
is amended— 
(1) in paragraph (3)(A), by inserting after ‘‘lob-
bying firms’’ the following: ‘‘, political intelligence 
consultants, political intelligence firms,’’; 
(2) in paragraph (7), by striking ‘‘or lobbying 
firm’’ and inserting ‘‘lobbying firm, political intel-
ligence consultant, or political intelligence firm’’; and 
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(3) in paragraph (8), by striking ‘‘or lobbying 
firm’’ and inserting ‘‘lobbying firm, political intel-
ligence consultant, or political intelligence firm’’. 
(e) RULES OF CONSTRUCTION.—Section 8(b) of the 
Lobbying Disclosure Act of 1995 (2 U.S.C. 1607(b)) is 
amended by striking ‘‘or lobbying contacts’’ and inserting 
‘‘lobbying contacts, political intelligence activities, or polit-
ical intelligence contacts’’. 
(f) IDENTIFICATION OF CLIENTS AND COVERED OF-
FICIALS.—Section 14 of the Lobbying Disclosure Act of 
1995 (2 U.S.C. 1609) is amended— 
(1) in subsection (a)— 
(A) in the heading, by inserting ‘‘OR PO-
LITICAL INTELLIGENCE’’ after ‘‘LOBBYING’’; 
(B) by inserting ‘‘or political intelligence 
contact’’ after ‘‘lobbying contact’’ each place 
that term appears; and 
(C) in paragraph (2), by inserting ‘‘or po-
litical intelligence activity, as the case may be’’ 
after ‘‘lobbying activity’’; 
(2) in subsection (b)— 
(A) in the heading, by inserting ‘‘OR PO-
LITICAL INTELLIGENCE’’ after ‘‘LOBBYING’’; 
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(B) by inserting ‘‘or political intelligence 
contact’’ after ‘‘lobbying contact’’ each place 
that term appears; and 
(C) in paragraph (2), by inserting ‘‘or po-
litical intelligence activity, as the case may be’’ 
after ‘‘lobbying activity’’; and 
(3) in subsection (c), by inserting ‘‘or political 
intelligence contact’’ after ‘‘lobbying contact’’. 
(g) ANNUAL AUDITS
AND REPORTS
BY COMP-
TROLLER GENERAL.—Section 26 of the Lobbying Disclo-
sure Act of 1995 (2 U.S.C. 1614) is amended— 
(1) in subsection (a)— 
(A) by inserting ‘‘political intelligence 
firms, political intelligence consultants,’’ after 
‘‘lobbying firms’’; and 
(B) by striking ‘‘lobbying registrations’’ 
and inserting ‘‘registrations’’; 
(2) in subsection (b)(1)(A), by inserting ‘‘polit-
ical intelligence firms, political intelligence consult-
ants,’’ after ‘‘lobbying firms’’; and 
(3) in subsection (c), by inserting ‘‘or political 
intelligence consultant’’ after ‘‘a lobbyist’’. 
SEC. 7. EFFECTIVE DATE. 
Subject to section 5(b), this Act and the amendments 
made by this Act shall take effect at the end of the 90- 
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day period beginning on the date of the enactment of this 
Act. 
Æ 
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