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 the buying, selling, or engaging in transactions based on nonpublic information that could affect market value, with exceptions for transactions based solely on publicly available information. Members are required to report any transactions involving these instruments to the Iowa ethics and campaign disclosure board within thirty days, and the board must make these reports publicly accessible on its website.

The bill also outlines enforcement mechanisms, stating that violations will be classified as a class C felony, which carries significant penalties, including potential confinement and fines. Additionally, violators must disgorge any profits from prohibited transactions, and losses cannot be deducted from state income tax. The ethics committee may impose further disciplinary actions, and the board is tasked with investigating violations and submitting annual reports to the General Assembly on the effectiveness of the new regulations.

Statutes affected:
Introduced: 68B.42