83R2263 ATP-D
By: Taylor H.B. No. 1576
A BILL TO BE ENTITLED
AN ACT
relating to prohibiting state officers and employees and related
individuals from engaging in insider trading; providing a criminal
penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 572, Government Code, is
amended by adding Section 572.0532 to read as follows:
Sec. 572.0532. INSIDER TRADING PROHIBITED. (a) In this
section, "nonpublic information" means information that an
individual gains by reason of the individual's office or employment
or relationship to an officer or employee and that the individual
knows or reasonably should know has not been made available to the
general public, including information that the individual knows or
reasonably should know:
(1) is excepted from required disclosure under
Subchapter C, Chapter 552, or otherwise protected from disclosure
by statute or rule;
(2) is designated as confidential by a state agency;
or
(3) has not actually been disseminated to the general
public and is not authorized to be made available to the public on
request.
(b) A state officer, a state employee, or a person related
to a state officer or state employee by the first degree of
consanguinity or affinity who, by virtue of the officer's or
employee's position, acquires nonpublic information that may
affect or tend to affect the price of any commodity or security may
not use the information for personal gain to purchase, sell, or
enter into a contract for the sale of the commodity or security.
(c) A violation of this section is an offense. An offense
under this section is a felony of the third degree.
SECTION 2. This Act takes effect September 1, 2013.