HB1711 Summary

• Creates the "Stop Trading on Confidential Knowledge Act" requiring members of the Arkansas General Assembly and their spouses and dependents to divest or place covered investments (securities, commodities, futures, and derivatives) into qualified blind trusts within 120 days of the law's effective date.

• Prohibits new members of the General Assembly and their families from acquiring covered investments, with exceptions for inherited investments that must be divested or placed in blind trusts within 120 days.

• Exempts diversified mutual funds, diversified exchange-traded funds, U.S. Treasury securities, spousal employment compensation, and government employee retirement plans from the covered investment restrictions.

• Grants the Arkansas Ethics Commission authority to establish procedures, issue rules, publish documents on a public website, and impose civil penalties equal to monthly legislative salary for each violation, with penalties accruing every 30 days for non-compliance.

• Requires trustees to notify the ethics commission and affected members if beneficiaries gain knowledge of trust holdings, the initial property value falls below $1,000, or assets are divested, with all relevant trust agreements and asset schedules made publicly available on the commission's website.