I 
109TH CONGRESS 
2D SESSION 
H. R. 5015 
To prohibit securities trading based on nonpublic information relating to 
Congress, and to require additional reporting by Members and employees 
of Congress of securities transaction, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 28, 2006 
Mr. BAIRD (for himself and Ms. SLAUGHTER) introduced the following bill; 
which was referred to the Committee on Financial Services, and in addi-
tion to the Committees on House Administration, the Judiciary, and Ag-
riculture, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To prohibit securities trading based on nonpublic information 
relating to Congress, and to require additional reporting 
by Members and employees of Congress of securities 
transaction, 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’’. 
VerDate Aug 31 2005 
22:34 Mar 31, 2006
Jkt 049200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H5015.IH
H5015
rwilkins on PROD1PC63 with BILLS
SEC. 2. NONPUBLIC INFORMATION RELATING TO CON-
GRESS. 
(a) SECURITIES TRANSACTIONS.—Section 10 of the 
Securities Exchange Act of 1934 is amended by adding 
at the end the following: 
‘‘(c) NONPUBLIC INFORMATION RELATING TO CON-
GRESS.— 
‘‘(1) PROHIBITION.—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 the securities of any issuer while 
such person is in possession of material nonpublic 
information relating to any pending or prospective 
legislative action relating to such issuer if— 
‘‘(A) such information was obtained by 
reason of such person being a Member or em-
ployee of Congress; or 
‘‘(B) such information was obtained from a 
Member or employee of Congress, and such per-
son knows that the information was so ob-
tained. 
‘‘(2) DISCLOSURE.—Not later than 270 days 
after the date of enactment of this subsection, the 
Commission shall by rule prohibit any Member or 
employee of Congress, or any other person from dis-
closing material nonpublic information relating to 
VerDate Aug 31 2005 
22:23 Mar 29, 2006
Jkt 049200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H5015.IH
H5015
rwilkins on PROD1PC63 with BILLS
any pending or prospective legislative action relating 
to any issuer if that Member, employee, or other 
person has reason to believe that the information 
will be used to buy or sell the securities of such 
issuer based on such information.’’. 
(b) COMMODITIES TRANSACTIONS.—Section 4c of the 
Commodities Exchange Act (7 U.S.C. 6c) is amended by 
adding at the end the following: 
‘‘(h) NONPUBLIC INFORMATION RELATING TO CON-
GRESS.— 
‘‘(1) PROHIBITION.—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 
while such person is in possession of material non-
public information relating to any pending or pro-
spective legislative action relating to such commodity 
if— 
‘‘(A) such information was obtained by 
reason of such person being a Member or em-
ployee of Congress; or 
‘‘(B) such information was obtained from a 
Member or employee of Congress, and such per-
son knows that the information was so ob-
tained. 
VerDate Aug 31 2005 
22:23 Mar 29, 2006
Jkt 049200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H5015.IH
H5015
rwilkins on PROD1PC63 with BILLS
‘‘(2) DISCLOSURE.—Not later than 270 days 
after the date of enactment of this subsection, the 
Commission shall by rule prohibit any Member or 
employee of Congress, or any other person from dis-
closing material nonpublic information relating to 
any pending or prospective legislative action relating 
to any commodity if that Member, employee, or 
other person has reason to believe that the informa-
tion will be used to buy or sell such commodity for 
future delivery based on such information.’’. 
SEC. 
3. 
TIMELY 
REPORTING 
OF 
SECURITIES 
TRANS-
ACTIONS. 
(a) AMENDMENT.—Section 103 of the Ethics in Gov-
ernment Act of 1978 is amended by adding at the end 
the following subsection: 
‘‘(l) Within 30 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 
VerDate Aug 31 2005 
22:23 Mar 29, 2006
Jkt 049200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H5015.IH
H5015
rwilkins on PROD1PC63 with BILLS
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. 
SEC. 4. REGISTRATION OF POLITICAL INTELLIGENCE 
FIRMS. 
(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’’ 
both places such 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 
VerDate Aug 31 2005 
22:23 Mar 29, 2006
Jkt 049200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H5015.IH
H5015
rwilkins on PROD1PC63 with BILLS