Int 0951-2026

Int. No. 951 By Council Members Thomas-Henry, J. Sanchez, Cab�n, Restler, Wilson and Morano ..Title A Local Law to amend the administrative code of the city of New York, in relation to preventing policymakers and their relatives from trading on prediction markets using insider information ..Body Be it enacted by the Council as follows: Section 1. Title 3 of the administrative code of the city of New York is amended by adding a new chapter 12 to read as follows: CHAPTER 12 PREDICTION MARKETS AND EVENT CONTRACTS � 3-1201 Definitions. For purposes of this chapter, the following terms have the following meanings: Board. The term "board" means the conflicts of interest board. Covered individual. The term "covered individual" means any policymaker or relative. Event contract. The term "event contract" means any financial instrument related to the outcome, occurrence, or nonoccurrence of a future event or events that is offered for the purposes of trading between clients of a business entity and which results in a financial payout upon the outcome of the event or events. "Event contract" does not include transactions that occur on a service licensed by the New York state gaming commission. Non-public information. The term "non-public information" means any information not available to the public which a policymaker would have access to by virtue of their position in government. Policymaker. The term "policymaker" means the mayor, the public advocate, the comptroller, the members of the council, the borough presidents, and any person who is charged with substantial policy discretion as defined by the rules of the board. Relative. The term "relative" means the spouse, domestic partner, child, stepchild, sibling, parent, or stepparent of a policymaker, the spouse or domestic partner of such child, stepchild, sibling, parent, or stepparent, any person a policymaker claims as a dependent on their most recently filed personal income tax return, or the spouse or domestic partner of such person claimed as a dependent. � 3-1202 Limitations on Use of Predictive Markets. A covered individual shall not purchase, sell, or trade an event contract when such covered individual has non-public information regarding any element of the outcome of the event contemplated by such event contract. � 3-1203 Enforcement. Complaints alleging violations of this chapter, or of rules or directives promulgated by the board pursuant to this chapter, shall be made, received, investigated, and adjudicated in a manner consistent with the procedures relating to investigations and adjudications of allegations of conflicts of interest set forth in chapters 34 and 68 of the charter. � 3-1204 Penalties. Subject to rules promulgated by the board and to the discretion of the board, any person who violates this chapter may be subject to any combination of the following penalties: 1. a civil penalty of not more than $25,000; 2. payment to the city of the value of any gain or benefit obtained by the respondent as result of violating this chapter; or 3. if the person is a policymaker, forfeiture of the person's public office or employment. � 2. Paragraph 1 of subdivision d of section 12-110 of the administrative code of the city of New York, as amended by local law 58 for the year 2012, is amended by adding a new subparagraph (r) to read as follows: (r) List all transactions by the person reporting of $50 or more involving event contracts as such term is defined in section 3-1201 and the following information regarding each transaction: (1) the amount, in U.S. dollars, used to purchase, sell, or trade event contracts in each transaction; (2) when each transaction was placed; (3) what the topic of the transaction was; (4) the business entity through which the transaction occurred; and (5) the amount of any profit or loss on the transaction. � 3. The conflicts of interest board shall promulgate rules describing the circumstances in which the purchase, sale, or trade of, or other conduct related to, an event contract, as such term is defined in the chapter created by this local law, by a public servant would violate paragraph 2, 3, or 4 of subdivision b of section 2604 of the New York city charter, or any other applicable provision of chapter 68 of the New York city charter. � 4. This local law takes effect 180 days after it becomes law. JMF LS #22349/23006/23644 5/26/2026 2:48 PM 1 1