End Congressional Insider Trading Act

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Synopsis

This bill strengthens the STOCK Act by requiring Members of Congress and their immediate family to be

investigated and prosecuted for insider trading the same as any other citizen. It maintains the current

stock trade reporting requirement, imposes mandatory minimum penalties of a $5 million fine and 5

years in prison, requires public disclosure only after formal charges are filed, and prohibits Members

from serving on any committee if they or their immediate family own $10,000 or more in a company

that falls under that committee’s jurisdiction, removing temptation even for stocks owned before this

law takes effect.

120th CONGRESS

1st SESSION

S. ____

To strengthen enforcement against congressional insider trading, eliminate special treatment, impose

mandatory minimum penalties, prevent conflicts of interest on committees, and restore public

confidence in Congress.

IN THE SENATE OF THE UNITED STATES

Mrs. Perkins (for herself) introduced the following bill; which was read twice and referred to the

Committee on Homeland Security and Governmental Affairs.

A BILL

SECTION 1. SHORT TITLE.

This Act may be cited as the “End Congressional Insider Trading Act”.

SECTION 2. FINDINGS.

Congress finds the following:

(1) Members of Congress and their staff regularly receive non-public information about prospective

legislation that can materially affect the value of publicly traded securities.

(2) Individuals who hold investment securities licenses (FINRA licenses) are subject to strict insider-

trading prohibitions. Members of Congress shall be held to the same or higher standard.

(3) Public confidence in Congress is undermined when Members may personally benefit from

information unavailable to ordinary citizens.

SECTION 3. MANDATORY ENFORCEMENT AND PENALTIES.

(a) Equal Treatment. Members of Congress, their spouses, and dependent children shall be investigated

and prosecuted for violations of insider trading laws under the same standards, procedures, and

timelines applied to any member of the general public. The Securities and Exchange Commission and the

Department of Justice shall have no authority to decline, delay, or provide special treatment in such

investigations or prosecutions based on the individual’s status as a Member of Congress.

(b) Mandatory Minimum Penalties. Any violation of insider trading laws by a Member of Congress, their

spouse, or dependent child shall be subject to a mandatory minimum fine of $5,000,000 and a

mandatory minimum term of imprisonment of 5 years.

(c) Reporting Requirement Preserved. Members of Congress, their spouses, and dependent children

shall continue to publicly report any purchase, sale, or exchange of securities exceeding $1,000 in value

within 45 days as required under the STOCK Act.

SECTION 4. COMMITTEE SERVICE RESTRICTIONS.

No Member of Congress may serve on any committee or subcommittee of Congress if the Member, the

Member’s spouse, or any dependent child owns securities valued at $10,000 or more in any company or

entity that falls under the jurisdiction of that committee or subcommittee. This prohibition shall apply

regardless of when the securities were acquired.

SECTION 5. APPLICATION TO CONGRESSIONAL STAFF.

Senior congressional staff, including chiefs of staff, legislative directors, and counsel, who have access to

non-public legislative information shall be subject to the same prohibitions, penalties, and restrictions as

Members of Congress under this Act.

SECTION 6. PUBLIC DISCLOSURE.

The Securities and Exchange Commission shall publicly disclose the existence of any investigation into a

Member of Congress, the Member's spouse, dependent child, or covered senior congressional staff only after formal charges have been filed by the Department of Justice.

SECTION 7. PROHIBITION ON DISCLOSURE OF NON-PUBLIC INFORMATION TO CONFLICTED PARTIES.

(a) No Member of Congress or covered congressional staff may knowingly disclose material non-public

information obtained in the course of official duties to any Member of Congress or congressional staff

who is prohibited under section 4 from serving on the committee or subcommittee with jurisdiction

over the subject matter of such information.

(b) Penalty. Any violation of this section shall be subject to the same penalties described in section 3 of

this act.

SECTION 8. EFFECTIVE DATE.

This Act shall take effect 90 days after the date of enactment.