Bill > SF557

Introduced Session

This bill relates to trading transactions involving covered financial instruments by members of the general assembly, legislative staff persons, and the immediate family of either based on nonpublic information. The bill prohibits a member of the general assembly, a legislative staff person, and the immediate family of either from directly or indirectly buying, selling, or otherwise engaging in a transaction involving a covered financial instrument if the transaction is based on information derived from the member’s position or official duties, that has not been made publicly available, and that could reasonably be expected to affect the market value of the covered financial instrument, subject to limited exceptions. Current law requires members of, and candidates for, the general assembly to file personal financial disclosure statements with the member’s chamber. The bill requires members of the general assembly to report transactions involving covered financial instruments to the Iowa ethics and campaign disclosure board (board). The board must disclose the reports to the public on the board’s internet site. The board is required to investigate alleged violations of the bill and may refer cases of suspected violations to other appropriate authorities for further investigation and action. The board must submit an annual report to the general assembly including information regarding the effectiveness of the bill, the number of transactions reported, any penalties imposed, and any recommendations for further legislative action. A violation of the bill is a class “C” felony. A class “C” felony is punishable by confinement for no more than 10 years and a fine of at least $1,370 but not more than $13,660. In addition, a person who violates the bill is subject to financial penalties, including disgorgement of any profits resulting from a prohibited transaction, tax liability relating to prohibited transactions, and a member or legislative staff person may face disciplinary action by the applicable ethics committee. The bill does not prohibit a federal authority from imposing additional penalties, if applicable.

Committee Categories

Matt Blake (D)*,  Thomas Townsend (D)*,  Sarah Trone Garriott (D)*,  Zach Wahls (D)*,  Janice Weiner (D)*,  Mike Zimmer (D)*, 

Subcommittee: Rozenboom, Blake, and Schultz. S.J. 492. (on 03/11/2025)

Official Document