THE PELO$I ACT

(Preventing Elected Lawmakers from Owning Stocks Illicitly Act)

An Act

To prohibit public officials from engaging in certain financial activities while in office, to prevent conflicts of interest and the misuse of non-public information, and to restore public trust in the integrity of elected state officials.

SECTION 1. SHORT TITLE.

This Act may be cited as the "PELO$I Act."

SECTION 2. DEFINITIONS.

For the purposes of this Act:

(1) "Elected official" means any person elected to public office within this state, including members of the state legislature, statewide elected officials, and any other officeholder elected by the people of the state.

(2) "Blind trust" means a trust in which the public official has no knowledge of the holdings or management of the trust and no right to intervene in its handling, administered by an independent trustee.

(3) "Immediate family member" means a spouse, domestic partner, child, stepchild, or any individual claimed as a dependent for tax purposes.

(4) "Controlled entity" means any business, corporation, partnership, or other legal entity in which the official or their immediate family member has a controlling interest.

SECTION 3. PROHIBITION ON ACTIVE MANAGEMENT OF FINANCIAL HOLDINGS.

(a) No elected official shall directly or indirectly manage, buy, sell, or trade any individual stocks, bonds, options, or other financial instruments during the term of office.

(b) Within thirty (30) days of assuming office, each elected official shall:

(1) Place all applicable financial holdings into a qualified blind trust as defined in Section 2; or

(2) Fully divest from such holdings.