[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4134 Introduced in Senate (IS)]

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119th CONGRESS
  2d Session
                                S. 4134

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 18, 2026

Mr. Ricketts (for himself, Mr. McCormick, Mr. Husted, Mrs. Fischer, Mr. 
 Marshall, Mr. Cassidy, and Mr. Young) introduced the following bill; 
which was read twice and referred to the Committee on Homeland Security 
                        and Governmental Affairs

_______________________________________________________________________

                                 A BILL


 
To amend chapter 131 of title 5, United States Code, 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 the following:

          ``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' 
                means--
                            ``(i) a security issued by a publicly 
                        traded company; or
                            ``(ii) any derivative, option, warrant, 
                        swap, or other instrument that provides 
                        economic exposure to, or the value of which is 
                        determined by reference to, a security 
                        described in clause (i).
                    ``(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 in section 3 of the Small 
                        Business Act (15 U.S.C. 632); or
                            ``(iv) any investment held in a trust if--
                                    ``(I) no covered individual has any 
                                authority, directly or indirectly, to 
                                direct, veto, or materially influence 
                                any specific investment decisions of 
                                the trust, including any right to 
                                approve, disapprove, or require 
                                particular purchases, sales, or 
                                investment strategies; and
                                    ``(II) the trustee of the trust 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 may sell a covered 
        investment, unless a notice of intent to sell the covered 
        investment is made by the relevant Member of Congress, on 
        behalf of the Member of Congress or the spouse or dependent 
        child of the Member of Congress, as applicable, and publicly 
        disclosed at least 7 calendar days, and not 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 to whom the notice applies determines not to sell 
        the covered investment.
            ``(4) Filing.--A Member of Congress shall file the notice 
        under paragraph (1) for each intended sale by the Member of 
        Congress, or the spouse or dependent child of the Member of 
        Congress, 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 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 under section 13152 with respect to a covered investment, 
shall, at the direction of the supervising ethics office--
            ``(1) incur a fee, as calculated under subsection (b), to 
        be paid by the Member of Congress who--
                    ``(A) caused the violation; or
                    ``(B) is the spouse or parent of the covered 
                individual who caused the violation; and
            ``(2) in the case of a purchase of a covered investment, be 
        required to sell the covered investment purchased in violation 
        of section 13152(a).
    ``(b) Calculation of Fees.--The fee required under subsection 
(a)(1) shall be equal to the sum of--
            ``(1) $2,000 or 10 percent of the value of the transaction 
        in the covered investment that 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) If the covered individual is a Senator, the Senators' 
        Official Personnel and Office Expense Account.
            ``(2) If the covered individual is a Member of the House of 
        Representatives, the Members' Representational Allowance.
            ``(3) Any contribution (as defined in section 301 of the 
        Federal Election Campaign Act of 1971 (52 U.S.C. 30101)) 
        accepted as a candidate (as defined in that section), and any 
        other donation received as support for activities of the 
        covered individual as a holder of Federal office (as defined in 
        that section).
    ``(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 may refer a Member of Congress to the 
Attorney General 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 relating to 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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