Kathleen Rice bill would ban membership on corporate boards

Rep. Kathleen Rice has introduced legislation to prohibit House members from sitting on corporate boards.

The bill by Rice (D-Garden City) and co-sponsor Rep. Tom Reed (R-Corning) says House members “may not serve as an officer or member of the board of any publicly held or publicly regulated corporation, financial institution, or business entity.”

House members are allowed to serve on boards as long as they disclose it.The Senate has banned membership on corporate boards since 1991.

“If we want to maintain the public’s trust in Congress, then we need to change our rules and close gaping ethics loopholes like this one," Rice said. "Our constituents should never have a doubt in their mind that their representative could be corrupted, incriminated or conflicted because of their financial interests or their position in a private company."

Rice aides said the legislation in part is a response to the federal indictment this month of Buffalo-area Rep. Chris Collins for insider trading. Collins, a Republican, allegedly used confidential information about a biotechnology company where he held a board position to help his son make illicit stock trades.

Collins, his son and the father of his son's fiancee are charged with conspiracy, wire fraud and other counts. They have pleaded not guilty.

By Candice Ferrette

candice.ferrette@newsday.comcandiceferrette

Candice Ferrette covers Nassau County government and politics on Long Island. She has been a reporter at Newsday since 2011.