HF 2659

as introduced - 87th Legislature (2011 - 2012) Posted on 03/05/2012 01:48pm

A bill for an act
relating to governmental operations; legislative and executive branch ethics;
prohibiting insider trading based on nonpublic information by executive branch
officers, legislators, and legislative staff; amending Minnesota Statutes 2010,
section 10A.09, by adding a subdivision; proposing coding for new law in
Minnesota Statutes, chapters 3; 10.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [3.057] PROHIBITION OF USE OF NONPUBLIC INFORMATION
FOR PRIVATE PROFIT.
new text end

new text begin The senate and the house of representatives shall, no later than the conclusion of the
2013 legislative session, each adopt internal rules specifically prohibiting its members and
staff from using nonpublic information derived from the person's position as a member
or staff, or gained from the performance of the person's duties as a member or staff, as a
means of making a private profit.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

new text begin [3.058] PROHIBITION OF INSIDER TRADING.
new text end

new text begin Members and staff of the legislature are subject to the insider trading prohibitions
arising under the federal securities laws, including section 10(b) of the federal Securities
Exchange Act of 1934, United States Code, chapter 15, section 78j(b), and Securities and
Exchange Commission Rule 10b-5, Code of Federal Regulations, chapter 17, section 240,
adopted under that act; and under Minnesota securities laws, including section 80A.68.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

new text begin [10.475] PROHIBITION OF INSIDER TRADING.
new text end

new text begin The governor, lieutenant governor, secretary of state, auditor, and attorney general
are subject to the insider trading prohibitions arising under the federal securities laws,
including section 10(b) of the federal Securities Exchange Act of 1934, United States
Code, chapter 15, section 78j(b), and Securities and Exchange Commission Rule 10b-5,
Code of Federal Regulations, chapter 17, section 240, adopted under that act; and under
Minnesota securities laws, including section 80A.68.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2010, section 10A.09, is amended by adding a subdivision
to read:

new text begin Subd. 5a. new text end

new text begin Prompt reporting of certain financial transactions. new text end

new text begin A person described
in section 10A.01, subdivision 35, clauses (1) to (11), shall no later than 30 days after
receiving notification of completion of any transaction by the person in an amount greater
than $10,000 involving the purchase or sale of any asset that is subject to reporting under
subdivision 5, clause (3), (4), or (5), or under Minnesota Rules, part 4505.0900, subpart
7, report the transaction in writing on a form provided by the Campaign Finance and
Public Disclosure Board. The person must in any event report a completed transaction no
later than 45 days after completion of the transaction, regardless of the person's receipt
or nonreceipt of formal notification of completion. The Campaign Finance and Public
Disclosure Board shall place the information on its Web site no later than 30 days after
receiving it.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for transactions completed on or
after August 1, 2012.
new text end