Congressional Integrity Act
The purpose of this Act is to eliminate conflicts of interest among members of Congress by prohibiting the ownership, purchase, or sale of individual stocks and securities during their tenure, ensuring that legislative decisions prioritize the public good over personal financial gain.
Definitions
(a) Covered Individuals: Members of Congress, including Senators and Representatives.
(b) Individual Stocks and Securities: Includes stocks, bonds, mutual funds that are not diversified, derivatives, and any other tradable financial instruments.
Prohibition on Ownership of Individual Stocks and Securities
(a) Restriction on Ownership:
(i) Covered individuals are prohibited from owning, purchasing, or selling individual stocks and securities while serving in Congress.
(ii) Covered individuals may hold assets in broadly diversified index funds, mutual funds, Treasury bonds, or other instruments that do not present a conflict of interest.
(b) Divestment Requirement:
(i) Covered individuals who own prohibited assets upon taking office must divest such assets within 120 days of assuming office.
Blind Trusts
(a) Members of Congress may transfer prohibited assets into a qualified blind trust.
(b) A qualified blind trust must be managed independently, with no communication between the trustee and the member regarding specific investments.
Enforcement and Penalties
(a) Disclosure Requirements:
(i) Covered individuals must disclose their compliance with this Act in their annual financial disclosures.
(ii) Any violations must be reported to the Office of Congressional Ethics.
(b) Penalties:
(i) Violation of this Act will result in:
- A fine equivalent to 150% of the financial gains made from prohibited transactions.
- Referral to the Department of Justice for potential prosecution under insider trading laws.
- Potential censure, removal from committee assignments, or expulsion from Congress, as applicable.
Public Transparency
(a) All financial disclosures will be made publicly available in an easily accessible format to ensure accountability and transparency.
Effective Date
This Act shall take effect immediately upon enactment and apply to all members of Congress, including those elected after the effective date.
Severability
If any provision of this Act, or the application of such provision to any person or circumstance, is held invalid, the remainder of the Act and its application to other persons or circumstances shall not be affected.
