Us Congress 2025-2026 Regular Session

Us Congress House Bill HB1712 Compare Versions

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Old	New	Differences
1	1	I
2	2	119THCONGRESS
3	3	1
4	4	STSESSION H. R. 1712
5	5	To amend chapter 131 of title 5, United States Code, with respect to
6	6	prohibited financial transactions.
7	7	IN THE HOUSE OF REPRESENTATIVES
8	8	FEBRUARY27, 2025
9	9	Mr. L
10	10	ICCARDO(for himself, Mr. KHANNA, Ms. NORTON, Mr. MULLIN, Mr.
11	11	G
12	12	RIJALVA, Mr. THANEDAR, Mrs. TORRESof California, Mr. CARSON, Mr.
13	13	S
14	14	WALWELL, Mr. PETERS, Mr. SOTO, Ms. ELFRETH, Mr. GARAMENDI,
15	15	Ms. B
16	16	ARRAGA´N, Mr. OLSZEWSKI, Mr. LIEU, Mr. GOLDMANof New York,
17	17	Mr. S
18	18	MITHof Washington, and Mr. TURNERof Texas) introduced the
19	19	following bill; which was referred to the Committee on Oversight and
20	20	Government Reform, and in addition to the Committees on the Judiciary,
21	21	and House Administration, for a period to be subsequently determined by
22	22	the Speaker, in each case for consideration of such provisions as fall with-
23	23	in the jurisdiction of the committee concerned
24	24	A BILL
25	25	To amend chapter 131 of title 5, United States Code, with
26	26	respect to prohibited financial transactions.
27	27	Be it enacted by the Senate and House of Representa-1
28	28	tives of the United States of America in Congress assembled, 2
29	29	SECTION 1. SHORT TITLE. 3
30	30	This Act may be cited as the ‘‘Modern Emoluments 4
31	31	and Malfeasance Enforcement Act’’ or the ‘‘MEME Act’’. 5
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34	34	•HR 1712 IH
35	35	SEC. 2. SENSE OF CONGRESS. 1
36	36	It is the sense of Congress that Federal elected offi-2
37	37	cials must not utilize their position, granted by the trust 3
38	38	of the public, for private financial gain. The issuance, 4
39	39	sponsorship, or promotion of financial instruments by pub-5
40	40	lic office holders will deprive the public of the office hold-6
41	41	er’s honest services, facilitate bribery by investors or pur-7
42	42	chasers, and result in public exploitation and corrupt for-8
43	43	eign influence. Members of Congress and the Executive 9
44	44	Branch must not seek to use their public office to benefit 10
45	45	financially; rather their positions are held in trust for the 11
46	46	benefit of the American public. 12
47	47	SEC. 3. PROHIBITED FINANCIAL TRANSACTIONS. 13
48	48	(a) I
49	49	NGENERAL.—Chapter 131 of title 5, United 14
50	50	States Code, is amended by adding at the end the fol-15
51	51	lowing: 16
52	52	‘‘SUBCHAPTER IV—FINANCIAL EXPLOI-17
53	53	TATION BY A PUBLIC OFFICE HOLDER 18
54	54	‘‘SEC. 13151. DEFINITIONS. 19
55	55	‘‘In this subchapter: 20
56	56	‘‘(1) A
57	57	DJACENT INDIVIDUAL.—The term ‘adja-21
58	58	cent individual’ means— 22
59	59	‘‘(A) each officer or employee in the execu-23
60	60	tive branch holding a Senior Executive Service 24
61	61	position (as defined under section 3132(a)(2)); 25
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64	64	•HR 1712 IH
65	65	‘‘(B) each member of a uniformed service 1
66	66	whose pay grade is at or in excess of O–7 under 2
67	67	section 201 of title 37; 3
68	68	‘‘(C) each officer or employee in any other 4
69	69	position determined by the Special Counsel of 5
70	70	the United States, in consultation with the Di-6
71	71	rector of the Office of Government Ethics, to be 7
72	72	of equal classification to a position described in 8
73	73	subparagraph (A) or (B); or 9
74	74	‘‘(D) the spouse or dependent child of any 10
75	75	individual described in subparagraph (A), (B), 11
76	76	or (C). 12
77	77	‘‘(2) P
78	78	ROHIBITED FINANCIAL TRANSACTION .— 13
79	79	‘‘(A) I
80	80	N GENERAL.—The term ‘prohibited 14
81	81	financial transaction’ means the issuance, spon-15
82	82	sorship, or promotion of a covered asset for pe-16
83	83	cuniary gain. 17
84	84	‘‘(B) C
85	85	OVERED ASSET.—The term ‘covered 18
86	86	asset’ means— 19
87	87	‘‘(i) a security (as such term is de-20
88	88	fined in section 3(a) of Securities Ex-21
89	89	change Act of 1934); 22
90	90	‘‘(ii) a security future (as such term is 23
91	91	defined in section 3(a) of Securities Ex-24
92	92	change Act of 1934); 25
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95	95	•HR 1712 IH
96	96	‘‘(iii) a commodity (as defined in sec-1
97	97	tion 1a of the Commodity Exchange Act); 2
98	98	‘‘(iv) a digital asset which can be sold 3
99	99	for remuneration, including a 4
100	100	cryptocurrency, a meme coin, a token, or a 5
101	101	non-fungible token; or 6
102	102	‘‘(v) any derivative, option, warrant, 7
103	103	mutual fund, or exchange-traded fund of 8
104	104	an asset described in clause (i), (ii), (iii), 9
105	105	or (iv). 10
106	106	‘‘(3) C
107	107	OVERED INDIVIDUAL .—The term ‘cov-11
108	108	ered individual’ means— 12
109	109	‘‘(A) the President; 13
110	110	‘‘(B) the Vice President; 14
111	111	‘‘(C) a public official (as defined in section 15
112	112	201(a) of title 18); or 16
113	113	‘‘(D) the spouse or dependent child of any 17
114	114	individual described in subparagraph (A), (B), 18
115	115	or (C). 19
116	116	‘‘(4) D
117	117	EPENDENT CHILD.—The term dependent 20
118	118	child has the meaning given the term in section 21
119	119	13101. 22
120	120	‘‘SEC. 13152. PROHIBITION ON CERTAIN TRANSACTIONS. 23
121	121	‘‘(a) P
122	122	ROHIBITION.—Except as provided in sub-24
123	123	section (b), a covered individual or an adjacent individual 25
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126	126	•HR 1712 IH
127	127	may not engage in or benefit from a prohibited financial 1
128	128	transaction— 2
129	129	‘‘(1) during the term of service of the covered 3
130	130	individual or adjacent individual; 4
131	131	‘‘(2) during the 180-day period prior to the 5
132	132	date on which the service of such covered individual 6
133	133	or adjacent individual commenced; or 7
134	134	‘‘(3) during the 180-day period beginning on 8
135	135	the date on which the service of such covered indi-9
136	136	vidual or adjacent individual is terminated. 10
137	137	‘‘(b) A
138	138	DJACENTINDIVIDUALS.—With respect to adja-11
139	139	cent individuals, nothing in this section shall be construed 12
140	140	to limit the application of section 208 of title 18. 13
141	141	‘‘(c) L
142	142	IABILITY ANDIMMUNITY.—For purposes of 14
143	143	any immunities to civil liability, any conduct comprising 15
144	144	or relating to a prohibited financial transaction under this 16
145	145	section shall be deemed an ‘unofficial act,’ and beyond the 17
146	146	scope of official duties. 18
147	147	‘‘SEC. 13153. CIVIL PENALTIES. 19
148	148	‘‘(a) C
149	149	IVILACTION.—The Attorney General may 20
150	150	bring a civil action in any appropriate United States dis-21
151	151	trict court against any covered individual or adjacent indi-22
152	152	vidual who violates any provision of section 13152. 23
153	153	‘‘(b) CONTINUING CONDUCT: Any act intended 24
154	154	to encourage the sale of a covered asset, including adver-25
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157	157	•HR 1712 IH
158	158	tisement, promotion, solicitation, marketing, or endorse-1
159	159	ment of the covered asset, constitutes a violation of this 2
160	160	section. 3
161	161	‘‘(c) C
162	162	IVILPENALTY.—The court in which any action 4
163	163	is brought under subsection (a) may assess against a cov-5
164	164	ered individual or an adjacent individual a civil penalty 6
165	165	of not more than $250,000. 7
166	166	‘‘(d) D
167	167	ISGORGEMENT.— 8
168	168	‘‘(1) I
169	169	N GENERAL.—A covered individual or ad-9
170	170	jacent individual shall disgorge to the Treasury of 10
171	171	the United States any profit from a prohibited fi-11
172	172	nancial transaction or holding conducted in violation 12
173	173	of this section. 13
174	174	‘‘(2) R
175	175	ETROACTIVE.—Disgorgement shall be re-14
176	176	quired for any person who violates section 13152 re-15
177	177	gardless of whether the issuance of the financial 16
178	178	asset transpired prior to the enactment of this Act. 17
179	179	‘‘(e) P
180	180	RIVATERIGHT OFACTION.—Notwithstanding 18
181	181	any contrary provision in any contract relating to the 19
182	182	asset, any investor, competitor, or other private party suf-20
183	183	fering harm may bring an action in an appropriate district 21
184	184	court of the United States for any appropriate equitable 22
185	185	or declaratory relief, including monetary damages, with re-23
186	186	spect to a violation of section 13152.’’. 24
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189	189	•HR 1712 IH
190	190	(b) CRIMINALPENALTIES.—Chapter 11 of title 18, 1
191	191	United States is amended by adding at the end the fol-2
192	192	lowing: 3
193	193	‘‘§ 228. Prohibited financial transactions 4
194	194	‘‘(a) B
195	195	ENEFITFROMPROHIBITED FINANCIAL 5
196	196	T
197	197	RANSACTION.—Where any covered individual or adjacent 6
198	198	individual knowingly violates any provision of section 7
199	199	13152 of title 5, and has either— 8
200	200	‘‘(1) caused an aggregate loss of $1,000,000 or 9
201	201	more to members of the public; or 10
202	202	‘‘(2) benefitted financially, through profit, gain, 11
203	203	or advantage, directly or indirectly through family 12
204	204	members or business associates, from the sale, pur-13
205	205	chase, or distribution of the covered asset issued in 14
206	206	violation of section 13152 of title 5, 15
207	207	shall be fined under this title or imprisoned for not more 16
208	208	than five years, or both. 17
209	209	‘‘(b) B
210	210	RIBERY.—Where any covered individual or ad-18
211	211	jacent individual who knowingly violates any provision of 19
212	212	section 13152 of title 5, and directly or indirectly, cor-20
213	213	ruptly demands, seeks, receives, accepts, or agrees to re-21
214	214	ceive or accept anything of value personally or for any 22
215	215	other person or entity, in return for— 23
216	216	‘‘(1) being influenced in the performance of any 24
217	217	official act; 25
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220	220	•HR 1712 IH
221	221	‘‘(2) being influenced to commit or aid in com-1
222	222	mitting, or to collude in, or allow, any fraud, or 2
223	223	make opportunity for the commission of any fraud, 3
224	224	on the United States; or 4
225	225	‘‘(3) being induced to do or omit to do any act 5
226	226	in violation of the official duty of such official or 6
227	227	person, 7
228	228	shall be punished pursuant to section 201(b). 8
229	229	‘‘(c) I
230	230	NSIDERTRADING.—Where any covered indi-9
231	231	vidual or adjacent individual who knowingly violates any 10
232	232	provision of section 13152 of title 5, and violates section 11
233	233	10(b) of the Securities Exchange Act of 1934, shall be 12
234	234	subject to punished pursuant to section 201(b). 13
235	235	‘‘(d) I
236	236	NTENT.—To incur criminal liability under this 14
237	237	section, it is not required that the covered or adjacent indi-15
238	238	vidual intended to create an investment asset through the 16
239	239	sponsorship, issuance, or promotion of the asset. 17
240	240	‘‘(e) L
241	241	IABILITY ANDIMMUNITY.—For purposes of 18
242	242	any immunities to civil and criminal liability, any conduct 19
243	243	comprising or relating to a prohibited financial transaction 20
244	244	under this section shall be deemed an unofficial act and 21
245	245	beyond the scope of official duties. 22
246	246	‘‘(f) D
247	247	EFINITIONS.—In this section: 23
248	248	‘‘(1) A
249	249	DJACENT INDIVIDUAL.—The term ‘adja-24
250	250	cent individual’ means— 25
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253	253	•HR 1712 IH
254	254	‘‘(A) each officer or employee in the execu-1
255	255	tive branch holding a Senior Executive Service 2
256	256	position (as defined under section 3132(a)(2)); 3
257	257	‘‘(B) each member of a uniformed service 4
258	258	whose pay grade is at or in excess of O–7 under 5
259	259	section 201 of title 37; 6
260	260	‘‘(C) each officer or employee in any other 7
261	261	position determined by the Special Counsel of 8
262	262	the United States, in consultation with the Di-9
263	263	rector of the Office of Government Ethics, to be 10
264	264	of equal classification to a position described in 11
265	265	subparagraph (A) or (B); or 12
266	266	‘‘(D) the spouse or dependent child of any 13
267	267	individual described in subparagraph (A), (B), 14
268	268	or (C). 15
269	269	‘‘(2) P
270	270	ROHIBITED FINANCIAL TRANSACTION .— 16
271	271	‘‘(A) I
272	272	N GENERAL.—The term ‘prohibited 17
273	273	financial transaction’ means the issuance, spon-18
274	274	sorship, or promotion of a covered asset for pe-19
275	275	cuniary gain. 20
276	276	‘‘(B) C
277	277	OVERED ASSET.—The term ‘covered 21
278	278	asset’ means— 22
279	279	‘‘(i) a security (as such term is de-23
280	280	fined in section 3(a) of Securities Ex-24
281	281	change Act of 1934); 25
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284	284	•HR 1712 IH
285	285	‘‘(ii) a security future (as such term is 1
286	286	defined in section 3(a) of Securities Ex-2
287	287	change Act of 1934); 3
288	288	‘‘(iii) a commodity (as defined in sec-4
289	289	tion 1a of the Commodity Exchange Act); 5
290	290	‘‘(iv) a digital asset which can be sold 6
291	291	for remuneration, including a 7
292	292	cryptocurrency, a meme coin, a token, or a 8
293	293	non-fungible token; or 9
294	294	‘‘(v) any derivative, option, warrant, 10
295	295	mutual fund, or exchange-traded fund of 11
296	296	(i), (ii), (iii), or (iv). 12
297	297	‘‘(3) C
298	298	OVERED INDIVIDUAL .—The term ‘cov-13
299	299	ered individual’ means— 14
300	300	‘‘(A) the President; 15
301	301	‘‘(B) the Vice President; 16
302	302	‘‘(C) a public official (as defined in section 17
303	303	201(a) of title 18); or 18
304	304	‘‘(D) the spouse or dependent child of any 19
305	305	individual described in subparagraph (A), (B), 20
306	306	or (C). 21
307	307	‘‘(4) D
308	308	EPENDENT CHILD.—The term dependent 22
309	309	child has the meaning given the term in section 23
310	310	13101.’’. 24
311	311	Æ
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