The bill would amend the Government Code as it relates to prohibiting state officers and employees and related individuals from engaging in insider trading. The provisions of the bill that relate to criminal offenses are the subject of this analysis. Under the provisions of the bill, engaging in insider trading by certain individuals would be punishable as a third degree felony.

A felony of the third degree is punishable by confinement in prison for a term from 2 to 10 years and, in addition to confinement, an optional fine not to exceed $10,000.

Expanding the list of behaviors for which a criminal penalty is applied is expected to result in increased demands upon the correctional resources of counties and or of the state due to longer terms of probation, or longer terms of confinement in county jail, state jail, or prison.  However, in the case of this bill, it is assumed the number of offenders convicted under this statute would not result in a significant impact on the programs and workload of state corrections agencies or on the demand for resources and services of those agencies.