California AB 1840: Real estate.

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 Bill Text - AB-1840 Political Reform Act of 1974: prediction market contracts.

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 |Add To My Favorites |Track Bill | Version: 02/11/26 - Introduced

 AB-1840 Political Reform Act of 1974: prediction market contracts.(2025-2026)

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 Date Published: 02/11/2026 09:00 PM

AB1840:v99#DOCUMENTBill Start

 CALIFORNIA LEGISLATURE—
 2025–2026 REGULAR SESSION

 Assembly Bill

No. 1840

Introduced by Assembly Member Sanchez

February 11, 2026

 An act to amend Section 86205 of, and to add Section 87451 to, the Government Code, relating to the Political Reform Act of 1974. 

LEGISLATIVE COUNSEL'S DIGEST

AB 1840, as introduced, Sanchez.
 Political Reform Act of 1974: prediction market contracts.

The Political Reform Act of 1974 provides for the comprehensive regulation of political campaigns, lobbying, and other matters relating to governmental ethics and elections. The act prohibits a lobbyist or lobbying firm from, among other things, accepting or agreeing to accept a payment that is in any way contingent upon the defeat, enactment, or outcome of any proposed legislative or administrative action. The act also prohibits a public official at any level of state or local government from making, participating in making, or in any way attempting to use the public official’s official position to influence a governmental decision in which the official knows or has reason to know the official has a financial interest, as defined.

This bill would prohibit specified officials, employees, and lobbyists from engaging in transactions involving
 prediction market contracts, as defined, if before or at the time of the transaction, the specified individual possesses, or it is reasonably foreseeable the specified individual may obtain in the course of their official duties, material nonpublic information, as defined, relating to the transaction.

A violation of the Political Reform Act of 1974 is punishable as a misdemeanor. By creating a new crime, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

The Political Reform Act of 1974, an
 initiative measure, provides that the Legislature may amend the act to further the act’s purposes upon a 2/3 vote of each house of the Legislature and compliance with specified procedural requirements.

This bill would declare that it furthers the purposes of the act.

Digest Key

 Vote:
 2/3 
 Appropriation:
 NO 
 Fiscal Committee:
 YES 
 Local Program:
 YES 

Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 86205 of the Government Code is amended to read:

86205.

 No A lobbyist or lobbying firm shall: shall not:

(a) Do anything with the purpose of placing any elected state officer, legislative official, agency official, or state candidate under personal obligation to the lobbyist, the lobbying firm, or the lobbyist’s or the firm’s employer.

(b) Deceive or attempt to deceive any elected state officer,
 legislative official, agency official, or state candidate with regard to any material fact pertinent to any pending or proposed legislative or administrative action.

(c) Cause or influence the introduction of any bill or amendment thereto for the purpose of thereafter being employed to secure its passage or defeat.

(d) Attempt to create a fictitious appearance of public favor or disfavor of any proposed legislative or administrative action or to cause any communication to be sent to any elected state officer, legislative official, agency official, or state candidate in the name of any fictitious person or in the name of any real person, except with the consent of such real person.

(e) Represent falsely, either directly or indirectly, that the lobbyist or the lobbying firm can control the official action of any
 elected state officer, legislative official, or agency official.

(f) Accept or agree to accept any payment in any way contingent upon the defeat, enactment, or outcome of any proposed legislative or administrative action.

(g) Violate Section 87451.

SEC. 2.

 Section 87451 is added to the Government Code, to read:

87451.

 (a) A covered person shall not knowingly engag