,,ii  #aadth ,,congress  #ast ,session  
,s4 #gjb  ,,in ,,the ,,senate ,,of ,,the
 ,,united ,,states  ,march #aa1 #bjae   
,mr4 ,reed 7for himself and ,mr4        
,menendez7 introduced the following     
bill2 which was read twice and referred 
to the ,committee on ,banking1 ,housing1
 and ,urban ,affairs  ,a ,,bill  ,to    
strengthen the prohibitions on insider  
trading1 and for other purposes4  #a4   
,short title ,this ,act may be cited as 
the ,stop ,illegal ,insider ,trading    
,act4  #b4 ,strengthening the           
prohibition on insider trading ,section 
#aj of the ,securities ,exchange ,act of
 #aicd 7#ae ,u4,s4,c4 #gh;j7 is         
amended--  7#a7 in the matter           
immediately preceding the flush text at 
the end of the section1 by inserting at 
the end the following3  7d7 7#a7 7,a7   
,to purchase1 sell1 or cause the        
purchase or sale of any security on the 
basis of material information that the  
person knows or has reason to know is   
not publicly available4  7,b7 ,to       

knowingly or recklessly communicate     
material information that the person    
knows or has reason to know is not      
publicly available to any other person  
under circumstances in which it is      
reasonably foreseeable that such        
communication is likely to result in a  
violation of subparagraph 7,a74  7#b7   
,for purposes of this subsection1 the   
term not publicly available shall not   
include information that the person has 
independently developed from publicly   
available sources4  7#c7 ,the           
,commission may1 by rule1 exempt any    
person1 transaction1 or communication1  
or any class of persons1 transactions1  
or communications from the prohibitions 
under this subsection1 if the           
,commission determines that such        
exemption is necessary or appropriate in
 the public interest and consistent with
 the protection of investors4  7#d7     
,nothing in this subsection shall be    
construed to affect liability under     
subsection 7b74  2 and  7#b7 in the     

flush text at the end of the section--  
7,a7 by striking ,rules promulgated and 
inserting ,subsection 7d7 and rules     
promulgated2 and  7,b7 by inserting or  
subsection 7d7 after subsection 7b7 each
 place that term appears4