I 
112TH CONGRESS 
1ST SESSION H. R. 3639 
To amend the Ethics in Government Act of 1978 to require federally elected 
officials to place their stocks, bonds, commodities futures, and other 
forms of securities in a blind trust. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 13, 2011 
Mr. NUGENT introduced the following bill; which was referred to the Com-
mittee on Oversight and Government Reform, and in addition to the 
Committee on House Administration, for a period to be subsequently de-
termined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Ethics in Government Act of 1978 to require 
federally elected officials to place their stocks, bonds, 
commodities futures, and other forms of securities in 
a blind trust. 
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 ‘‘Prevent Insider Trad-
ing by Elected Officials Act’’. 
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SEC. 2. REQUIREMENT OF ELECTED OFFICIALS TO USE 
BLIND TRUST. 
The Ethics in Government Act of 1978 (5 U.S.C. 
App.) is amended by inserting after section 101 the fol-
lowing new section: 
‘‘SEC. 101A. ELECTED OFFICIALS REQUIRED TO ESTABLISH 
A BLIND TRUST. 
‘‘(a) REQUIREMENT.—The President, Vice President, 
and each Member of Congress shall place all of such per-
son’s stocks, bonds, commodities futures, and other forms 
of securities, including securities held jointly with such 
person’s spouse, in a qualified blind trust (as defined in 
section 102(f)(3)). 
‘‘(b) EXCLUSION.—Subsection (a) shall not apply to 
the financial interests or benefits described under section 
102(i). 
‘‘(c) TIMING AND EXTENSION.— 
‘‘(1) IN GENERAL.—The President, Vice Presi-
dent, and each Member of Congress shall comply 
with subsection (a) not later than 30 days after tak-
ing office, or in the case of those persons serving in 
those offices on the date of enactment of the Prevent 
Insider Trading by Elected Officials Act, not later 
than 30 days after such date of enactment. 
‘‘(2) EXTENSION.— 
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‘‘(A) The President and Vice President 
may file with the Director of the Office of Gov-
ernment Ethics for an additional 30 day exten-
sion to comply with subsection (a). 
‘‘(B) A Member of Congress may file, with 
the Clerk of the House of Representatives in 
the case of a Representative or Delegate of 
Congress and the Resident Commissioner from 
Puerto Rico, and with the Secretary of the Sen-
ate, in the case of a Senator, for an additional 
30 day extension to comply with subsection (a). 
‘‘(d) CIVIL PENALTY FOR FAILURE TO COMPLY.— 
The Attorney General may bring a civil action in any ap-
propriate United States district court against the Presi-
dent, Vice President, or any Member of Congress who 
knowingly and willfully fails to comply with subsection (a) 
by the end of the time period specified in subsection (c). 
The court in which such action is brought may assess 
against such person a civil penalty not to exceed 
$50,000.’’. 
Æ 
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