The bill would amend the Penal Code as it relates to increasing the criminal penalties for insider trading and other misuse of official information by public servants. Under the provisions of the bill, the punishment for the offense of misuse of official information would increase in certain circumstances. The punishment for this offense would range from a third-degree to a first-degree felony with the punishment level based on the net pecuniary gain to the person committing the offense.

A first-degree felony is punishable by confinement in prison for life or a term from 5 to 99 years; a second-degree felony for a term from 2 to 20 years; and a third-degree felony for a term from 2 to 10 years. In addition to confinement, most felony level offenses are subject to an optional fine not to exceed $10,000.

Expanding the penalty range for any criminal offense is expected to result in greater demands on the correctional resources of the counties or of the State due to an expected increase in the number of individuals sentenced to a term of supervision in the community or to a term of confinement within a state correctional institution and subsequent release to parole supervision. In fiscal year 2018, ten individuals were arrested, fewer than ten were placed on felony community supervision, and fewer than ten were admitted into state correctional institutions for misuse of official information. This analysis assumes the provisions of the bill addressing felony sanctions would not result in a significant impact on state correctional populations or on the demand for state correctional resources.