This bill establishes new regulations regarding transactions involving covered financial instruments by members of the Iowa General Assembly, legislative staff, and their immediate families, particularly when such transactions are based on nonpublic information. It defines "covered financial instruments" and prohibits individuals in these roles from engaging in transactions that could affect the market value of these instruments if the information used is derived from their official duties and has not been publicly disclosed. Exceptions are provided if the transaction is based solely on publicly available information and no conflict of interest exists.

Additionally, the bill mandates that members of the General Assembly report any transactions involving covered financial instruments to the Iowa Ethics and Campaign Disclosure Board within thirty days. These reports will be publicly accessible on the board's website. The board is tasked with investigating alleged violations, which are classified as class C felonies, and may impose penalties including disgorgement of profits from prohibited transactions. The bill also includes provisions for annual reporting on its effectiveness and the number of transactions reported, as well as potential disciplinary actions by ethics committees for violations.

Statutes affected:
Introduced: 68B.42