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A BILL TO BE ENTITLED
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AN ACT
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relating to prohibiting state officers and employees and related |
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individuals from engaging in insider trading; providing a criminal |
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penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 572, Government Code, is |
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amended by adding Section 572.0532 to read as follows: |
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Sec. 572.0532. INSIDER TRADING PROHIBITED. (a) In this |
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section, "nonpublic information" means information that an |
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individual gains by reason of the individual's office or employment |
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or relationship to an officer or employee and that the individual |
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knows or reasonably should know has not been made available to the |
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general public, including information that the individual knows or |
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reasonably should know: |
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(1) is excepted from required disclosure under |
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Subchapter C, Chapter 552, or otherwise protected from disclosure |
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by statute or rule; |
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(2) is designated as confidential by a state agency; |
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or |
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(3) has not actually been disseminated to the general |
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public and is not authorized to be made available to the public on |
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request. |
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(b) A state officer, a state employee, or a person related |
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to a state officer or state employee by the first degree of |
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consanguinity or affinity who, by virtue of the officer's or |
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employee's position, acquires nonpublic information that may |
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affect or tend to affect the price of any commodity or security may |
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not use the information for personal gain to purchase, sell, or |
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enter into a contract for the sale of the commodity or security. |
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(c) A violation of this section is an offense. An offense |
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under this section is a felony of the third degree. |
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SECTION 2. This Act takes effect September 1, 2013. |