H. R. 3550
IN THE HOUSE OF REPRESENTATIVES
December 2, 2011
Mr. Duffy introduced the following bill; which was referred to the Committee on Oversight and Government Reform, and in addition to the Committees on House Administration and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned
To amend the Ethics in Government Act of 1978 to require certain individuals subject to that Act to either place their securities in a blind trust or to report the sale, purchase, or exchange of securities.
This Act may be cited as the
Restoring Ethical Standards,
Transparency, and Responsibility in Congressional Trading
Act or the
Requirement to use blind trust or file reports
The Ethics in Government Act of 1978 (5 U.S.C. App.) is amended by inserting after section 101 the following new section:
individuals required to establish a blind trust or file reports
Individuals described in section 101(f) shall—
place all of such individual’s stocks, bonds, commodities futures, and other forms of securities, including securities held jointly with such individual’s spouse or dependent child, in a qualified blind trust (as defined under section 102(f)(3)); or
file a report with the appropriate office under section 103 that contains a brief description, the date, and category of value of any purchase, sale, or exchange in stocks, bonds, commodities futures, and other forms of securities, including securities jointly held with such individual’s spouse or dependent child, not later than 3 business days after such purchase, sale, or exchange is settled.
Subsection (a) shall not apply to the financial interests or benefits described under section 102(i).
Failure To comply
The Attorney General may bring a civil action in any appropriate United States district court against any individual subject to subsection (a) who knowingly and willfully falsifies or who knowingly and willfully fails to file a report under subsection (a)(2) if such individual does not place such individual’s securities in a qualified blind trust under subsection (a)(1). The court in which such action is brought may assess against such individual a civil penalty in any amount, not to exceed $50,000.
It shall be unlawful for any individual subject to subsection (a) to knowingly and willingly falsify any information that such individual is required to report under subsection (a)(2) or to knowingly and willfully fail to file a report under subsection (a)(2) if such individual does not place such individual’s securities in a qualified blind trust under subsection (a)(1).
Any individual subject to subsection (a) who violates subparagraph (A) shall be fined under title 18, United States Code.
The amendments made by section 2 shall take effect 30 days after the date of the enactment of this Act.