deal for a second headquarters in Long Island City, N.Y., has prompted NY State senator Michael Gianaris to draft legislation that would prohibit the buying or selling of real estate based on any nonpublic government action.

The idea behind the legislation is the that the law would be similar to federal securities law that bars an individual from trading stock in a public company based on nonpublic information. Senator Michael Gianaris, a Democrat who represents Long Island City and Astoria in Queens, is drafting the proposed law. It would make such real-estate transactions a felony punishable by up to four years in prison.

The implications of this are far reaching. Pay attention to what your local government is proposing.