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Preventing Elected Leaders from Owning Securities and Investments (PELOSI) Act
12/15/2023, 4:05 PM
Summary of Bill S 439
The PELOSI Act aims to address potential conflicts of interest that may arise when elected officials hold investments in companies that could be impacted by their legislative decisions. By prohibiting elected leaders from owning securities and investments, the bill seeks to promote transparency and accountability in government.
If passed, the PELOSI Act would require elected leaders to divest themselves of any securities and investments within 90 days of taking office. Additionally, the bill would prohibit elected officials from acquiring new securities and investments while serving in office. Supporters of the PELOSI Act argue that it is necessary to ensure that elected leaders are making decisions in the best interest of the public, rather than their own financial gain. Critics, however, may argue that the bill could limit the financial opportunities available to elected officials and potentially discourage qualified individuals from running for office. Overall, the PELOSI Act represents an effort to address concerns about conflicts of interest in government and promote ethical behavior among elected leaders. It is currently being debated in Congress, and its fate will ultimately be decided by lawmakers.
Congressional Summary of S 439
Preventing Elected Leaders from Owning Securities and Investments (PELOSI) Act
This bill prohibits Members of Congress (or their spouses) from holding or trading certain investments (e.g., individual stocks and related financial instruments other than diversified investment funds or U.S. Treasury securities).
The prohibition does not apply to assets held in a qualified blind trust or to sales by a Member to come into compliance with the bill's requirements. Specifically, the bill allows for sales by current Members during the 180 days following the bill's enactment and for sales by future Members during the 180 days following the commencement of their service.
Any profit made in violation of the prohibition must be disgorged to the Treasury and may subject the Member to a civil fine.
Each Member must submit an annual certification of compliance, and the Government Accountability Office must audit Members' compliance with the bill's provisions.
