Due Process Restoration Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 1259 To authorize private parties to compel the Securities and Exchange Commission to seek sanctions by filing civil actions, and for other purposes. IN THE HOUSE OF REPRESENTATIVES FEBRUARY 14, 2019 Mr. DAVIDSON of Ohio (for himself, Mr. HILL of Arkansas, Mr. BANKS, Mr. KEVIN HERN of Oklahoma, Mr. NORMAN, Mr. LAMALFA, and Mr. POSEY) introduced the following bill; which was referred to the Com- mittee on Financial Services A BILL To authorize private parties to compel the Securities and Exchange Commission to seek sanctions by filing civil actions, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Due Process Restora- 4 tion Act of 2019’’. 5 VerDate Sep 11 2014 04:35 Feb 28, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1259.IH H1259 kjohnson on DSK79L0C42 with BILLS 2 •HR 1259 IH SEC. 2. PRIVATE PARTIES AUTHORIZED TO COMPEL THE 1 SECURITIES AND EXCHANGE COMMISSION TO 2 SEEK SANCTIONS BY FILING CIVIL ACTIONS. 3 Title I of the Securities Exchange Act of 1934 (15 4 U.S.C. 78a et seq.) is amended by adding at the end the 5 following: 6 ‘‘SEC. 41. PRIVATE PARTIES AUTHORIZED TO COMPEL THE 7 COMMISSION TO SEEK SANCTIONS BY FILING 8 CIVIL ACTIONS. 9 ‘‘(a) TERMINATION OF ADMINISTRATIVE PRO- 10 CEEDING.—In the case of any person who is a party to 11 a proceeding brought by the Commission under a securi- 12 ties law, to which section 554 of title 5, United States 13 Code, applies, and against whom an order imposing a 14 cease and desist order and a penalty may be issued at 15 the conclusion of the proceeding, that person may, not 16 later than 20 days after receiving notice of such pro- 17 ceeding, and at that person’s discretion, require the Com- 18 mission to terminate the proceeding. 19 ‘‘(b) CIVIL ACTION AUTHORIZED.—If a person re- 20 quires the Commission to terminate a proceeding pursuant 21 to subsection (a), the Commission may bring a civil action 22 against that person for the same remedy that might be 23 imposed. 24 ‘‘(c) VENUE.—An action brought by the Commission 25 under subsection (b) may be brought only in accordance 26 VerDate Sep 11 2014 04:35 Feb 28, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1259.IH H1259 kjohnson on DSK79L0C42 with BILLS 3 •HR 1259 IH with the requirements relating to venue under section 1 1391 of title 28, United States Code.’’. 2 Æ VerDate Sep 11 2014 04:35 Feb 28, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H1259.IH H1259 kjohnson on DSK79L0C42 with BILLS