The Public Office Conflict of Interest Prevention Act

Liberty Election Reform & Political Integrity
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Title: The Public Office Conflict of Interest Prevention Act

Section 1: Purpose and Findings

The purpose of this Act is to prevent conflicts of interest in public office by restricting stock trading for elected officials, their staff, and immediate family members at all levels of government.

We The People find that:

  1. Public officials at all levels hold positions of trust that require undivided loyalty to the public interest.

  2. Stock trading by public officials, staff, and family can create actual or perceived conflicts of interest.

  3. Limiting trading activity is necessary to maintain public trust in government institutions from the federal to local levels.

Section 2: Definitions

  1. Covered Individuals: Members of Congress, Cabinet-level political appointees, federal agency heads, governors, mayors, city council members, state legislators, and their respective staff in policy-related roles, as well as any appointed officials with policymaking authority. This also includes immediate family members of these individuals.

  2. Immediate Family: Spouse, children, and any other relative living in the same household.

  3. Trading: Any purchase, sale, or transfer of securities, including stocks, bonds, options, or similar financial instruments.

Section 3: Stock Trading Prohibition

Covered individuals shall be prohibited from engaging in stock trading in individual publicly traded companies.

  1. Restriction on Holdings: Covered individuals may not purchase or sell individual stocks, bonds, options, or other financial securities during their tenure.

  2. Blind Trust Requirement: Any existing holdings must be transferred into a qualified blind trust or diversified mutual funds and index funds within 90 days of taking office.

• A qualified blind trust is one managed by an independent third-party trustee with no family, personal, or professional relationship to the covered individual.

Section 4: Reporting Requirements and Compliance

  1. Annual Disclosure: Covered individuals must submit an annual financial disclosure detailing compliance with this Act.

  2. Periodic Transaction Reports: Any inadvertent transactions that occur in a personal account must be reported within 30 days.

  3. Public Transparency: Financial disclosures and transaction reports must be made available online within 15 days of filing for all covered individuals at each level of government.

Section 5: Enforcement and Penalties

  1. Fines and Penalties: Violation of this Act shall result in a minimum fine of $10,000 for each infraction. Repeat violations may lead to increased fines, forfeiture of stock gains, or removal from office.

  2. Oversight Committees:

• At the federal level, the House and Senate Ethics Committees shall oversee compliance and investigate any complaints or suspicions of non-compliance.

• Each state legislature shall establish an ethics body responsible for monitoring compliance among state and local officials.

  1. DOJ Involvement: Repeated or severe violations may be referred to the Department of Justice or appropriate state authorities for criminal investigation.

Section 6: Exceptions and Exemptions

  1. Blind Trust Protection: Transactions conducted within a blind trust shall not be subject to penalties as long as the trust adheres to blind trust guidelines.

  2. Inadvertent Transactions: Unintentional stock transactions resulting from automated systems (e.g., dividend reinvestments) must be disclosed but may not incur penalties if corrected within 30 days.

Section 7: Effective Date

This Act shall take effect immediately upon passage and shall apply to all elected officials and staff at federal, state, and local levels.

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