HB1711
To Create The Stop Trading On Confidential Knowledge Act; Ban Stock Trading By Members Of The General Assembly; And To Amend The Authority Of The Arkansas Ethics Commission.
Last Action (May 1, 2023): Died in House Committee at Sine Die Adjournment
Sponsors
AI-Generated Summary
House Bill 1711, titled the 'Stop Trading on Confidential Knowledge Act,' seeks to prohibit members of the Arkansas General Assembly, along with their spouses and dependents, from trading individual stocks and other 'covered investments' while in office. The bill mandates that these individuals must either divest their existing covered investments or place them into a qualified blind trust within specified timeframes. It establishes strict rules regarding the management of these assets, including prohibitions on new acquisitions of covered investments during legislative service and for 180 days thereafter. The Arkansas Ethics Commission is tasked with oversight, rule-making, and public reporting requirements concerning these assets. The bill further authorizes the Commission to impose civil penalties on members who fail to comply with these disclosure and divestment requirements. The penalty for non-compliance is set at the monthly equivalent of the member's annual legislative salary for each violation.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are the citizens of Arkansas, who gain increased transparency and assurance that their elected representatives are not prioritizing personal financial gain over public interest. By mitigating potential conflicts of interest, the bill aims to bolster public trust in the integrity of the legislative process and ensure that policy decisions are made without the influence of private financial holdings.
Who Might Suffer?
The primary group negatively impacted are members of the Arkansas General Assembly and their families, who would face significant restrictions on their private financial activities and investment choices. These individuals would incur administrative and legal costs associated with establishing and maintaining qualified blind trusts, as well as the potential financial burden of forced divestment of assets. Additionally, those who rely on active stock trading as a source of supplemental income would see that avenue curtailed during their period of public service.
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