Stop Insider Trading Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7008 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 7008

  To amend chapter 131 of title 5 to require certain restrictions on
 stocks for Members of Congress and their spouses and dependents, and
                          for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            January 12, 2026

  Mr. Steil (for himself, Mr. Hudson, Mr. Griffith, Mr. Murphy, Mrs.
Bice, Mr. Carey, Mrs. Miller of Illinois, Ms. Lee of Florida, Mr. Biggs
 of Arizona, Mr. Ogles, Mrs. Luna, Mr. Roy, Mr. Taylor, Mr. Van Orden,
Mr. Bacon, Mr. Johnson of South Dakota, Mr. Hurd of Colorado, Mr. Joyce
 of Pennsylvania, Mr. Collins, Mr. Lawler, Mr. Baumgartner, Mr. Cloud,
 Mr. Feenstra, Mr. Scott Franklin of Florida, Mr. Mann, Mr. Buchanan,
 Mr. Timmons, Mrs. Kim, Mr. Nunn of Iowa, Mr. Cline, Mr. Crenshaw, Mr.
 Harris of Maryland, Mr. Arrington, Mr. Alford, Mr. Yakym, Mr. Kennedy
  of Utah, Mrs. Miller-Meeks, Mr. James, Mr. Mills, Mrs. Cammack, Mr.
Barrett, Mr. Carter of Georgia, Mr. LaLota, Mr. Mackenzie, Mr. Schmidt,
Mrs. Fedorchak, Mrs. Kiggans of Virginia, Mrs. Hinson, Mr. Rutherford,
 Mr. Smith of New Jersey, Mr. Ciscomani, Mr. Kiley of California, Mr.
   Patronis, Mrs. Houchin, Mr. Riley of New York, Mr. Harrigan, Mr.
  Moolenaar, Mr. Perry, Mr. Bean of Florida, Mr. Flood, Mr. Self, Mr.
  Bresnahan, Mr. Huizenga, Mr. Bergman, Mr. Messmer, Mr. Tiffany, Mr.
Grothman, Mr. Fitzgerald, Mr. Smucker, Mr. Strong, Mr. Miller of Ohio,
Mr. McDowell, and Mrs. Wagner) introduced the following bill; which was
           referred to the Committee on House Administration

_______________________________________________________________________

                                 A BILL

  To amend chapter 131 of title 5 to require certain restrictions on
 stocks for Members of Congress and their spouses and dependents, and
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stop Insider Trading Act''.

SEC. 2. RESTRICTIONS ON COVERED INVESTMENTS.

    (a) Table of Contents.--The table of contents for chapter 131 of
title 5, United States Code, is amended by adding at the end the
following:

           subchapter iv. restrictions on covered investments

13151. Definitions.
13152. Restrictions on covered investments.
13153. Penalties.
    (b) Restrictions.--Chapter 131 of title 5, United States Code, is
amended by adding at the end a new subchapter:

          ``SUBCHAPTER IV--RESTRICTIONS ON COVERED INVESTMENTS

``Sec. 13151. Definitions
    ``In this subchapter:
            ``(1) Covered individual.--The term `covered individual'
        means any of the following:
                    ``(A) A Member of Congress, as defined in section
                13101.
                    ``(B) A dependent child (as defined in section
                13101) or a spouse of a Member of Congress.
            ``(2) Covered investment.--
                    ``(A) In general.--The term `covered investment'--
                            ``(i) means a security issued by a publicly
                        traded company or any comparable economic
                        interest acquired through synthetic means, such
                        as the use of a derivative, including an
                        option, warrant, or other similar means; and
                    ``(B) Exclusion.--The term `covered investment'
                does not include--
                            ``(i) an excepted investment fund (as
                        described in section 13104(f)(8));
                            ``(ii) any other fund that would be an
                        excepted investment fund but for the fact that
                        the fund does not meet the diversification
                        requirement solely because the fund is
                        concentrated in--
                                    ``(I) the United States; or
                                    ``(II) the State, territory, or
                                District of residence of the covered
                                individual who owns the fund;
                            ``(iii) an interest in a small business
                        concern as defined under section 3 of the Small
                        Business Act (15 U.S.C. 632); or
                            ``(iv) investments held in a trust if no
                        covered individual has any authority over a
                        trustee of the trust, including the authority
                        to appoint, replace, or direct the actions of
                        such a trustee, and the trustee is not the
                        spouse, child, parent, or sibling of a Member
                        of Congress.
            ``(3) Publicly traded company.--The term `publicly traded
        company' means an issuer that has a class of securities
        registered under section 12 of the Securities Exchange Act of
        1934 (15 U.S.C. 78l).
            ``(4) Security.--The term `security' has the meaning given
        the term in section 3(a) of the Securities Exchange Act of 1934
        (15 U.S.C. 78c(a)).
            ``(5) Supervising ethics office.--The term `supervising
        ethics office' has the meaning given the term in section 13101.
``Sec. 13152. Restrictions on covered investments
    ``(a) Conduct During Federal Service.--Except as described in
subsection (c), no covered individual may purchase a covered
investment.
    ``(b) Advanced Notice Requirement.--
            ``(1) In general.--No covered individual shall sell a
        covered investment, unless a notice of intent to sell the
        covered investment is made by the Member of Congress and
        publicly disclosed at least 7 calendar days, and no more than
        14 calendar days, prior to the sale in accordance with the
        requirements of this subsection.
            ``(2) Contents of notice.--The notice under paragraph (1)
        shall include the following:
                    ``(A) The projected date of sale of a covered
                investment.
                    ``(B) A description of such sale.
                    ``(C) The number of shares in such sale.
            ``(3) Withdrawal.--The notice under paragraph (1) shall be
        withdrawn by the Member of Congress who filed it, prior to the
        close of the expiration of the notice, if the covered
        individual determines not to sell the covered asset.
            ``(4) Filing.--A Member of Congress shall file the notice
        under paragraph (1) for each intended sale by the Member, or
        the spouse or dependent child of the Member, with--
                    ``(A) the Clerk of the House of Representatives, in
                the case of a Representative in Congress, a Delegate to
                Congress, or the Resident Commissioner from Puerto
                Rico; or
                    ``(B) the Secretary of the Senate, in the case of a
                Senator.
            ``(5) Publication.--The notice under paragraph (1) and the
        withdrawal under paragraph (3) shall, upon receipt, be made
        publicly available on a website controlled by the by the Clerk
        of the House of Representatives or the Secretary of the Senate,
        as applicable.
    ``(c) Exceptions.--
            ``(1) Occupation.--The requirements of subsections (a) and
        (b) shall not apply to a spouse or dependent child of a Member
        of Congress with respect to a transaction in a covered
        investment which is--
                    ``(A) on behalf, or for the benefit, of any person
                other than a covered individual; or
                    ``(B) made as a part of compensation from an
                employer of such individual or in furtherance of any
                fiduciary or occupational obligations of such
                individual.
            ``(2) Other.--The requirements of subsection (a) shall not
        apply to a covered individual with respect to a transaction in
        a covered investment made for the purpose of reinvesting
        dividends received from such covered investment.
``Sec. 13153. Enforcement
    ``(a) In General.--Any covered individual who violates the
restrictions in section 13152 with respect to a covered investment,
shall, at the direction of the supervising ethics office--
            ``(1) incur a fee, as calculated in subsection (b), to be
        paid by the Member of Congress who--
                    ``(A) caused the violation; or
                    ``(B) is the spouse or parent of a covered
                individual who caused the violation; and
            ``(2) in the case of a purchase of a covered investment, be
        required to sell a covered investment purchased in violation of
        section 13152(a).
    ``(b) Calculation of Fees.--The fee required under subsection (a)
shall be equal to the sum of--
            ``(1) $2,000 or ten percent of the value of the transaction
        in the covered investment which violates section 13152,
        whichever is greater; and
            ``(2) the net gain realized, if any, from the covered
        investment during the period beginning on the most recent date
        on which the individual became a covered individual and ending
        on the date of disposition of the covered investment, as
        determined by the supervising ethics office.
    ``(c) Payment Restrictions.--A Member of Congress may not pay any
of the fees under this section by using amounts from the following
sources:
            ``(1) The Members' Representational Allowance.
            ``(2) The Senators' Official Personnel and Office Expense
        Account.
            ``(3) Any contribution (as defined in section 301(8) of the
        Federal Election Campaign Act of 1971 (52 U.S.C. 30101(8)))
        accepted as a candidate, and any other donation received as
        support for activities of the individual as a holder of Federal
        office.
    ``(d) Miscellaneous Receipts.--Any amounts collected in fees
authorized by this section shall be deposited in the general fund of
the Treasury as miscellaneous receipts in accordance with section
3302(b) of title 31.
    ``(e) Referral.--Upon the assessment of a fee under this section,
the supervising ethics office has the authority to refer a Member of
Congress to the Department of Justice in the same manner and to the
same extent as a violation under section 13106 if such Member of
Congress resigns or retires before paying such assessed fee.
    ``(f) Interpretative Guidance.--Each supervising ethics office may
issue interpretative guidance on this subchapter and in issuing such
guidance, may consider mitigating or aggravating circumstances.''.
    (c) Effective Date.--The amendments made by this Act shall take
effect on the date that is 180 days after the date of enactment of this
Act.
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