Plain English Breakdown
The bill status shows 'Passed Legislature' but also notes a hearing was canceled at the author's request, creating uncertainty about whether this text represents final law.
AB-1840: Rules for Prediction Market Contracts
This proposed law would stop certain officials, employees, and lobbyists from trading prediction market contracts if they have secret information about the outcome.
What This Bill Does
- Adds a new rule to the Political Reform Act of 1974 regarding financial transactions involving prediction market contracts.
- Prohibits specified officials, employees, and lobbyists from engaging in these trades if they possess material nonpublic information at the time of the transaction.
- Bans these trades if it is reasonably foreseeable that the person may obtain this secret information while doing their official duties.
- States that violating the Political Reform Act of 1974 is punishable as a misdemeanor.
Who It Names or Affects
- Specified public officials at state or local government levels.
- Government employees who may receive nonpublic information in their work.
- Lobbyists and lobbying firms working on legislative or administrative actions.
Terms To Know
- Prediction market contracts
- Financial agreements defined by the bill involving transactions based on future events, though specific examples are not listed in this text.
- Material nonpublic information
- Important facts that are not known to the general public yet and relate to a transaction, as defined by the bill.
- Misdemeanor
- A type of crime used to punish violations of this act, though specific penalties like jail time or fines are not detailed in this text.
Limits and Unknowns
- The bill does not list exactly which officials or employees are covered beyond the general term 'specified'.
- The exact definition of prediction market contracts and material nonpublic information is referenced but not fully explained in this summary.
- The specific reason why no state reimbursement is required is mentioned as a fact but not detailed.