Gains past $150,000 and $300,000 climb to a first-degree felony.
The bill raises the penalties for the existing Texas offense of misusing official information, which covers public servants who use inside government information for gain. If the offense brings the person a net financial gain, the penalty climbs from a third-degree felony up to a first-degree felony as the gain passes $150,000 and $300,000. It replaces the old penalty-boost subsection, applies only to conduct on or after September 1, 2025, and touches public servants who trade on nonpublic government information.
Labels
Labels: BACK FROM THE DEAD. Same text as a bill filed before that died: 88R HB 1899 by Rep. Meyer (Died in committee). Filed in 2 sessions, counting this one. Checked against 88R only.TRY NO. 2. Filed in 2 sessions: 88R and 89R. Checked against 88R only.
relating to increasing the criminal penalties for insider trading
and other misuse of official information.
WHAT IT DOES
Gains past $150,000 and $300,000 climb to a first-degree felony.
The bill raises the penalties for the existing Texas offense of misusing official information, which covers public servants who use inside government information for gain. If the offense brings the person a net financial gain, the penalty climbs from a third-degree felony up to a first-degree felony as the gain passes $150,000 and $300,000. It replaces the old penalty-boost subsection, applies only to conduct on or after September 1, 2025, and touches public servants who trade on nonpublic government information.
89R3373 MPF-D
By: Bettencourt
S.B. No. 3041
A BILL TO BE ENTITLED
AN ACT
relating to increasing the criminal penalties for insider trading
and other misuse of official information.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 39.06, Penal Code, is amended by
amending Subsection (e) and adding Subsection (g) to read as
follows:
(e) Except as provided by Subsection (g) [ (f) ], an offense
under this section is a felony of the third degree.
(g) If the commission of an offense under this section
results in a net pecuniary gain to the person committing the
offense, the offense is:
(1) a felony of the third degree if the net pecuniary
gain is less than $150,000;
(2) a felony of the second degree if the net pecuniary
gain is $150,000 or more but less than $300,000; or
(3) a felony of the first degree if the net pecuniary
gain is $300,000 or more.
SECTION 2. Section 39.06(f), Penal Code, is repealed.
SECTION 3. The change in law made by this Act applies only
to an offense committed on or after the effective date of this Act.
An offense committed before the effective date of this Act is
governed by the law in effect on the date the offense was committed,
and the former law is continued in effect for that purpose. For
purposes of this section, an offense was committed before the
effective date of this Act if any element of the offense occurred
before that date.
SECTION 4. This Act takes effect September 1, 2025.