BILL REQ. #:  H-3417.1 

Read first time 01/11/12.   Referred to Committee on Public Safety & Emergency Preparedness.

     AN ACT Relating to transactions by state officers involving nonpublic information; adding new sections to chapter 9A.60 RCW; and prescribing penalties.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 9A.60 RCW to read as follows:
     (1) A state officer may not buy, sell, or invest in securities, commodities, or real property on the basis of material nonpublic information if the officer gained the information by reason of his or her official position.
     (2) Violation of this section is a class C felony.
     (3) The attorney general has concurrent authority with county prosecuting attorneys to investigate and prosecute violations of this section.
     (4) For purposes of this section:
     (a) "Commodity" has the same meaning as in RCW 21.30.010.
     (b) "Material nonpublic information" includes any information that a state officer gains by reason of his or her official position and that he or she knows or should know has not been made available to the general public. It includes information that is statutorily protected from disclosure, that is designated as confidential by an agency, or that has not actually been disseminated to the general public and is not authorized to be made available to the public on request.
     (c) "Security" has the same meaning as in RCW 21.20.005.
     (d) "Sell" has the same meaning as in RCW 21.20.005.
     (e) "State officer" has the same meaning as in RCW 42.52.010.

NEW SECTION.  Sec. 2   A new section is added to chapter 9A.60 RCW to read as follows:
     In addition to the criminal penalties provided in section 1 of this act, the attorney general or a county prosecutor may bring an action against a state officer to enjoin a violation of section 1 of this act. If the court finds that the state officer violated section 1 of this act, the court shall order any profits, gain, gross receipts, or other benefit from the violation to be disgorged and paid to: (1) Any person who was defrauded by the state officer's violation of section 1 of this act; or (2) the state treasurer for deposit in the general fund.