Wildfire Event Contract Prohibition Act

This legislation, known as the Wildfire Event Contract Prohibition Act, amends the Commodity Exchange Act to explicitly prohibit any agreement, contract, transaction, or swap involving a wildfire event from being listed or made available for clearing or trading on a registered entity. This prohibition covers all aspects of a wildfire, including its ignition, occurrence, location, duration, intensity, size, spread, containment, and any resulting damage or casualties. A Sense of Congress is included, stating that these contracts create improper financial incentives to profit from wildfire destruction, may undermine public confidence in emergency responses, and could lead to the exploitation of material nonpublic information. It emphasizes that federally regulated markets should not facilitate gambling on the destruction of communities and clarifies that the Act does not preempt state gambling laws. Furthermore, the bill mandates that the Attorney General, in consultation with the Commodity Futures Trading Commission and other relevant federal agencies, conduct a comprehensive review within 180 days. This review will assess existing federal criminal and civil authorities related to conduct undertaken to influence, exploit, or profit from a wildfire event through contracts or wagers. The assessment will specifically examine authorities applicable to individuals who intentionally cause wildfires for profit or trade on nonpublic information, and will identify barriers to enforcement, including those involving offshore prediction markets. The review is also tasked with determining whether additional legislation, such as enhanced penalties or information-sharing authorities, is necessary to deter and prosecute such conduct. A report detailing the findings and legislative recommendations must be submitted to Congress within 30 days of completing the review.