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H.R. 3550 (112th): Restoring Ethical Standards, Transparency, and Responsibility in Congressional Trading Act

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The text of the bill below is as of Dec 2, 2011 (Introduced). The bill was not enacted into law.

I

112th CONGRESS

1st Session

H. R. 3550

IN THE HOUSE OF REPRESENTATIVES

December 2, 2011

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

A BILL

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.

1.

Short title

This Act may be cited as the Restoring Ethical Standards, Transparency, and Responsibility in Congressional Trading Act or the RESTRICT Act.

2.

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:

101A.

individuals required to establish a blind trust or file reports

(a)

Requirement

Individuals described in section 101(f) shall—

(1)

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

(2)

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.

(b)

Exemption

Subsection (a) shall not apply to the financial interests or benefits described under section 102(i).

(c)

Failure To comply

(1)

Civil Penalty

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.

(2)

Criminal Penalty

(A)

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).

(B)

Any individual subject to subsection (a) who violates subparagraph (A) shall be fined under title 18, United States Code.

.

3.

Effective date

The amendments made by section 2 shall take effect 30 days after the date of the enactment of this Act.