H.R. 7008

Stop Insider Trading Act

Sponsor: Bryan Steil

93 cosponsors
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In plain English: what this bill does

Summary

This bill would stop members of Congress and their spouses and dependent children from buying most stocks and similar investments while in office, and would require members to announce planned sales of those investments in advance. It would also make voters show a valid photo ID to have an in-person ballot given to them and to have a mailed ballot accepted, with exceptions and a provisional-ballot option, and would require states to make photo copying available at public buildings.

  • Members of Congress and their spouses and dependent children could not buy covered investments such as company stocks or options.
  • Members who want to sell a covered investment would have to publicly file a notice 7 to 14 days before the sale.
  • Violators would have to pay a fee of at least $2,000 or 10 percent of the transaction value, plus any net gain, and sell any investment bought illegally.
  • Voters would generally need a valid photo ID to receive an in-person ballot, and mailed ballots would need a copy of a photo ID or other listed proof.

Who this affects

  • Members of Congress: They could not buy covered investments, would have to file advance notice before selling one, and could have to pay fees for violations.
  • Spouses and dependent children of Members of Congress: They could not buy covered investments, though some exceptions apply for work-related trades.
  • State and local election officials: They would have to require a valid photo ID before giving an in-person ballot or accepting most mailed ballots, and would have to notify voter applicants of the requirement.
  • Voters: Those voting in person or by mail would need to show or submit a valid photo ID, unless they qualify for an exception or provisional ballot.

Words to know

  • Covered investment: A stock or similar financial interest in a publicly traded company, including options or other derivatives.
  • Derivative: A financial contract whose value depends on another investment, such as an option or warrant.
  • Provisional ballot: A ballot that is set aside and counted only if the voter later proves they are eligible.
  • Notarization: An official certification by a notary public that a person signed or marked a document in their presence.

For example

Made-up situation: A Member of Congress's spouse, who is not an exempt case, wants to buy shares of a company. Under the bill, the spouse could not buy them. If the spouse bought the shares anyway, the Member responsible could owe the greater of $2,000 or 10 percent of the purchase, plus any gain, and the spouse would have to sell the shares.

Written by AI from the bill's text below; it can be wrong. How it's written

Official summary

Written by the Congressional Research Service.

Stop Insider Trading Act

This bill generally prohibits Members of Congress and their spouses and dependent children from purchasing stocks and requires public notice before these individuals may sell stocks.

Specifically, Members of Congress and the spouses and dependent children of Members of Congress may not purchase covered investments. Between 7 and 14 days before a Member or a covered spouse or dependent sells a covered investment, the relevant Member must file public notice of the intent to sell with the Clerk of the House of Representatives or the Secretary of the Senate, as appropriate. The Clerk or Secretary must publish this notice online. If the individual decides not to sell the covered investment, the notice must be withdrawn.

Under the bill, a covered investment is a security issued by a publicly traded company or a comparable economic interest. Some investments are exempt, including interest in a widely held investment fund and certain investments held in a trust.

Violations of these provisions are subject to a fee and, in the case of a purchase, a requirement to sell the covered investment. The fee must equal (1) the greater of $2,000 or 10% of the transaction value, and (2) any net gain realized from the transaction during a specified period. The fee may not be paid using campaign donations or Members’ official allowances.

Certain transactions by covered spouses and dependents are exempt, including transactions made on behalf of another person or made as part of compensation from the individual’s employer.

Text of the bill

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