H.R. 1712

119 HR 1712 IH: Modern Emoluments and Malfeasance Enforcement Act
 U.S. House of Representatives
 2025-02-27
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 I  119th CONGRESS  1st Session  H. R. 1712  IN THE HOUSE OF REPRESENTATIVES   February 27, 2025   Mr. Liccardo  (for himself,  Mr. Khanna ,  Ms. Norton ,  Mr. Mullin ,  Mr. Grijalva ,  Mr. Thanedar ,  Mrs. Torres of California ,  Mr. Carson ,  Mr. Swalwell ,  Mr. Peters ,  Mr. Soto ,  Ms. Elfreth ,  Mr. Garamendi ,  Ms. Barragán ,  Mr. Olszewski ,  Mr. Lieu ,  Mr. Goldman of New York ,  Mr. Smith of Washington , and  Mr. Turner of Texas ) introduced the following bill; which was referred to the  Committee on Oversight and Government Reform , and in addition to the Committees on  the Judiciary , and  House Administration , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned   A BILL
To amend  chapter 131  of title 5, United States Code, with respect to prohibited financial transactions.
1.
Short title
This Act may be cited as the   Modern Emoluments and Malfeasance Enforcement Act   or the   MEME Act  .
2.
Sense of congress
It is the sense of Congress that Federal elected officials must not utilize their position, granted by the trust of the public, for private financial gain. The issuance, sponsorship, or promotion of financial instruments by public office holders will deprive the public of the office holder’s honest services, facilitate bribery by investors or purchasers, and result in public exploitation and corrupt foreign influence. Members of Congress and the Executive Branch must not seek to use their public office to benefit financially; rather their positions are held in trust for the benefit of the American public.
3.
Prohibited financial transactions
(a)
In general
 Chapter 131  of title 5, United States Code, is amended by adding at the end the following:
SUBCHAPTER IV—FINANCIAL EXPLOITATION BY A PUBLIC OFFICE HOLDER
13151.
Definitions
In this subchapter:
(1)
Adjacent individual
The term  adjacent individual  means—
(A)
each officer or employee in the executive branch holding a Senior Executive Service position (as defined under section 3132(a)(2));
(B)
each member of a uniformed service whose pay grade is at or in excess of O–7 under section 201 of title 37;
(C)
each officer or employee in any other position determined by the Special Counsel of the United States, in consultation with the Director of the Office of Government Ethics, to be of equal classification to a position described in subparagraph (A) or (B); or
(D)
the spouse or dependent child of any individual described in subparagraph (A), (B), or (C).
(2)
Prohibited financial transaction
(A)
In general
The term  prohibited financial transaction  means the issuance, sponsorship, or promotion of a covered asset for pecuniary gain.
(B)
Covered asset
The term  covered asset  means—
(i)
a security (as such term is defined in section 3(a) of Securities Exchange Act of 1934);
(ii)
a security future (as such term is defined in section 3(a) of Securities Exchange Act of 1934);
(iii)
a commodity (as defined in section 1a of the Commodity Exchange Act);
(iv)
a digital asset which can be sold for remuneration, including a cryptocurrency, a meme coin, a token, or a non-fungible token; or
(v)
any derivative, option, warrant, mutual fund, or exchange-traded fund of an asset described in clause (i), (ii), (iii), or (iv).
(3)
Covered individual
The term  covered individual  means—
(A)
the President;
(B)
the Vice President;
(C)
a public official (as defined in section 201(a) of title 18); or
(D)
the spouse or dependent child of any individual described in subparagraph (A), (B), or (C).
(4)
Dependent child
The term dependent child has the meaning given the term in section 13101.
13152.
Prohibition on certain transactions
(a)
Prohibition
Except as provided in subsection (b), a covered individual or an adjacent individual may not engage in or benefit from a prohibited financial transaction—
(1)
during the term of service of the covered individual or adjacent individual;
(2)
during the 180-day period prior to the date on which the service of such covered individual or adjacent individual commenced; or
(3)
during the 180-day period beginning on the date on which the service of such covered individual or adjacent individual is terminated.
(b)
Adjacent individuals
With respect to adjacent individuals, nothing in this section shall be construed to limit the application of section 208 of title 18.
(c)
Liability and immunity
For purposes of any immunities to civil liability, any conduct comprising or relating to a prohibited financial transaction under this section shall be deemed an  unofficial act,  and beyond the scope of official duties.
13153.
Civil penalties
(a)
Civil action
The Attorney General may bring a civil action in any appropriate United States district court against any covered individual or adjacent individual who violates any provision of section 13152.
(b)
CONTINUING CONDUCT: Any act intended to encourage the sale of a covered asset, including advertisement, promotion, solicitation, marketing, or endorsement of the covered asset, constitutes a violation of this section.
(c)
Civil penalty
The court in which any action is brought under subsection (a) may assess against a covered individual or an adjacent individual a civil penalty of not more than $250,000.
(d)
Disgorgement
(1)
In general
A covered individual or adjacent individual shall disgorge to the Treasury of the United States any profit from a prohibited financial transaction or holding conducted in violation of this section.
(2)
Retroactive
Disgorgement shall be required for any person who violates section 13152 regardless of whether the issuance of the financial asset transpired prior to the enactment of this Act.
(e)
Private right of action
Notwithstanding any contrary provision in any contract relating to the asset, any investor, competitor, or other private party suffering harm may bring an action in an appropriate district court of the United States for any appropriate equitable or declaratory relief, including monetary damages, with respect to a violation of section 13152.
 .
(b)
Criminal penalties
 Chapter 11  of title 18, United States is amended by adding at the end the following:
228.
Prohibited financial transactions
(a)
Benefit from prohibited financial transaction
Where any covered individual or adjacent individual knowingly violates any provision of section 13152 of title 5, and has either—
(1)
caused an aggregate loss of $1,000,000 or more to members of the public; or
(2)
benefitted financially, through profit, gain, or advantage, directly or indirectly through family members or business associates, from the sale, purchase, or distribution of the covered asset issued in violation of section 13152 of title 5,
 shall be fined under this title or imprisoned for not more than five years, or both.
(b)
Bribery
Where any covered individual or adjacent individual who knowingly violates any provision of section 13152 of title 5, and directly or indirectly, corruptly demands, seeks, receives, accepts, or agrees to receive or accept anything of value personally or for any other person or entity, in return for—
(1)
being influenced in the performance of any official act;
(2)
being influenced to commit or aid in committing, or to collude in, or allow, any fraud, or make opportunity for the commission of any fraud, on the United States; or
(3)
being induced to do or omit to do any act in violation of the official duty of such official or person,
 shall be punished pursuant to section 201(b).
(c)
Insider trading
Where any covered individual or adjacent individual who knowingly violates any provision of section 13152 of title 5, and violates section 10(b) of the Securities Exchange Act of 1934, shall be subject to punished pursuant to section 201(b).
(d)
Intent
To incur criminal liability under this section, it is not required that the covered or adjacent individual intended to create an investment asset through the sponsorship, issuance, or promotion of the asset.
(e)
Liability and immunity
For purposes of any immunities to civil and criminal liability, any conduct comprising or relating to a prohibited financial transaction under this section shall be deemed an unofficial act and beyond the scope of official duties.
(f)
Definitions
In this section:
(1)
Adjacent individual
The term  adjacent individual  means—
(A)
each officer or employee in the executive branch holding a Senior Executive Service position (as defined under section 3132(a)(2));
(B)
each member of a uniformed service whose pay grade is at or in excess of O–7 under section 201 of title 37;
(C)
each officer or employee in any other position determined by the Special Counsel of the United States, in consultation with the Director of the Office of Government Ethics, to be of equal classification to a position described in subparagraph (A) or (B); or
(D)
the spouse or dependent child of any individual described in subparagraph (A), (B), or (C).
(2)
Prohibited financial transaction
(A)
In general
The term  prohibited financial transaction  means the issuance, sponsorship, or promotion of a covered asset for pecuniary gain.
(B)
Covered asset
The term  covered asset  means—
(i)
a security (as such term is defined in section 3(a) of Securities Exchange Act of 1934);
(ii)
a security future (as such term is defined in section 3(a) of Securities Exchange Act of 1934);
(iii)
a commodity (as defined in section 1a of the Commodity Exchange Act);
(iv)
a digital asset which can be sold for remuneration, including a cryptocurrency, a meme coin, a token, or a non-fungible token; or
(v)
any derivative, option, warrant, mutual fund, or exchange-traded fund of (i), (ii), (iii), or (iv).
(3)
Covered individual
The term  covered individual  means—
(A)
the President;
(B)
the Vice President;
(C)
a public official (as defined in section 201(a) of title 18); or
(D)
the spouse or dependent child of any individual described in subparagraph (A), (B), or (C).
(4)
Dependent child
The term dependent child has the meaning given the term in section 13101.
 .