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Stock Act Redline

Stock Act Redline

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Published by Sunlight Foundation
A redline of the Stock Act, as passed by the Senate and introduced in the House on 2012-02-08
A redline of the Stock Act, as passed by the Senate and introduced in the House on 2012-02-08

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Published by: Sunlight Foundation on Feb 09, 2012
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08/19/2012

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S. 2038
 To prohibit Members of Congress and employees of Congress from usingnonpublic information derived from their official positions for personalbenefit, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
 
AN ACT
 To prohibit Members of Congress and employees of Congress from usingnonpublic information derived from their official positions for personalbenefit, 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 Trading on Congressional Knowledge Act of 2012” or the “STOCK Act”.
SEC. 2. DEFINITIONS.
 In this Act:(1)
M
EMBER OF CONGRESS
.—The term “Member of Congress” meansa member of the Senate or House of Representatives, a Delegate to theHouse of Representatives, and the Resident Commissioner from PuertoRico.(2)
E
MPLOYEE OF CONGRESS
.—The term “employee of Congress”means—
112
TH
CONGRESS2
D
S
ESSION
 
 
(A)an employee of the any individual (other than a Member of Congress), whose compensation is disbursed by the Secretary of theSenate;or  (B) an employee the Chief Administrative Officerof the House of Representatives.; and (B) any other officer or employee of the legislative branch (asdefined in section 109(11) of the Ethics in Government Act of 1978 (5U.S.C. App. 109(11))).(3)
E
XECUTIVE BRANCH EMPLOYEE
.—The term “executive branchemployee”—(A) has the meaning given the term “employee” undersection 2105of title 5, United States Code; and(B) includes—(i) the President;(ii) the Vice President; and(iii) an employee of the United States Postal Service or thePostal Regulatory Commission.(4)
J
UDICIAL OFFICER
.—The term “judicial officer” has the meaninggiven that term under section 109(10) of the Ethics in Government Act of 1978(U.S.C. App. 109(10)).(5)
J
UDICIAL EMPLOYEE
.—The term “judicial employee” has themeaning given that term in section 109(8) of the Ethics in Government Actof 1978 (5 U.S.C. App. 109(8)).(6)
S
UPERVISING ETHICS OFFICE
.—The term “supervising ethics office”has the meaning given that term in section 109(18) of the Ethics inGovernment Act of 1978 (5 U.S.C. App. 109(18)).
SEC. 3. PROHIBITION OF THE USE OF NONPUBLIC INFORMATION FOR PRIVATEPROFIT.
 
 
The Select Committee on Ethics of the Senate and the Committee onStandardsof Official ConductEthicsof the House of Representatives shall issueinterpretive guidance of the relevant rules of each chamber, including rules onconflicts of interest and gifts, clarifying that a Member of Congress and anemployee of Congress may not use nonpublic information derived from suchperson’s position as a Member of Congress or employee of Congress or gainedfrom the performance of such person’s official responsibilities as a means formaking a private profit.
SEC. 4. PROHIBITION OF INSIDER TRADING.
 (a) A
FFIRMATION
O
F
N
ON
-E
XEMPTION
N
ONEXEMPTION
.—Members of Congress and employees of Congress are not exempt from the insider tradingprohibitions arising under the securities laws, including section 10(b) of theSecurities Exchange Act of 1934 and Rule 10b–5 thereunder.(b) D
UTY
.—(1)
P
URPOSE
.—The purpose of the amendment made by this subsectionis to affirm a duty arising from a relationship of trust and confidence owedby each Member of Congress and each employee of Congress.(2)
A
MENDMENT
.—Section 21A of the Securities Exchange Act of 1934()(15 U.S.C. 78u–1)is amended by adding at the end the following:“(g) D
UTY
O
F
M
EMBERS
A
ND
E
MPLOYEES
O
F
C
ONGRESS
.—“(1)
I
N GENERAL
.—Subject to the rule of construction under section 10of the STOCK Act and solelyfor purposes of the insider tradingprohibitions arising underthe securities lawsthis Act, including section10(b) and Rule 10b–5 thereunder, each Member of Congress or employee of Congress owes a duty arising from a relationship of trust and confidence tothe Congress, the United States Government, and the citizens of the UnitedStates with respect to material, nonpublic information derived from suchperson’s position as a Member of Congress or employee of Congress orgained from the performance of such person’s official responsibilities.“(2)
D
EFINITIONS
.—In this subsection—

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