Tracking Bad Actors Act of 2023

II 118TH CONGRESS 1ST SESSION S. 1900 To require Federal financial regulators to create a publicly available database for certain bad actors, and for other purposes. IN THE SENATE OF THE UNITED STATES JUNE 8, 2023 Mr. KENNEDY (for himself and Ms. LUMMIS) introduced the following bill; which was read twice and referred to the Committee on Banking, Hous- ing, and Urban Affairs A BILL To require Federal financial regulators to create a publicly available database for certain bad actors, 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 ‘‘Tracking Bad Actors 4 Act of 2023’’. 5 SEC. 2. DEFINITION. 6 In this Act, the term ‘‘Federal financial regulator’’ 7 means— 8 VerDate Sep 11 2014 23:44 Jul 01, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1900.IS S1900 kjohnson on DSK79L0C42PROD with BILLS 2 •S 1900 IS (1) the Commodity Futures Trading Commis- 1 sion; 2 (2) the Securities and Exchange Commission; 3 (3) the Office of the Comptroller of the Cur- 4 rency; 5 (4) the Federal Deposit Insurance Corporation; 6 (5) the Financial Industry Regulatory Agency; 7 and 8 (6) the Public Company Accounting Oversight 9 Board. 10 SEC. 3. DATABASE. 11 (a) IN GENERAL.—Not later than 3 years after the 12 date of enactment of this Act, the Federal financial regu- 13 lators shall jointly establish a publicly available database 14 of persons convicted or held liable in criminal, civil, and 15 administrative actions relating to financial services 16 brought by— 17 (1) any Federal financial regulator, to the 18 greatest extent practicable; 19 (2) the Department of Justice; 20 (3) any self-regulatory organization or similar 21 entity overseen by a Federal financial regulator if 22 required by such regulator; or 23 VerDate Sep 11 2014 23:44 Jul 01, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1900.IS S1900 kjohnson on DSK79L0C42PROD with BILLS 3 •S 1900 IS (4) any State or local criminal or regulatory 1 agency that voluntarily submits information to the 2 database. 3 (b) OVERSIGHT.—The Securities and Exchange Com- 4 mission shall be the lead agency responsible for oversight 5 of the database established under subsection (a). 6 (c) FREE ACCESS.—The information in the database 7 established under subsection (a) shall be free of charge 8 to the public. 9 (d) OPERATION.—The database established under 10 subsection (a) shall be operated by a Federal agency or 11 maintained by a third party. 12 (e) EXPUNGEMENT.—Any agency who submits infor- 13 mation to the database under subsection (a) shall expunge 14 any enforcement action brought by the agency if the action 15 is— 16 (1) overturned upon judicial review; or 17 (2) withdrawn by the agency. 18 (f) REPORTS.— 19 (1) FEDERAL FINANCIAL REGULATORS.—The 20 Federal financial regulators shall jointly submit to 21 Congress an annual report on the database during 22 the period beginning on the date of enactment of 23 this Act and ending on the date on which the data- 24 base is operational. 25 VerDate Sep 11 2014 23:44 Jul 01, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1900.IS S1900 kjohnson on DSK79L0C42PROD with BILLS 4 •S 1900 IS (2) GAO REPORT.—Not later than 5 years 1 after the date on which the database is operational, 2 the Comptroller General of the United States shall 3 submit to Congress a report on the database. 4 Æ VerDate Sep 11 2014 23:44 Jul 01, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\S1900.IS S1900 kjohnson on DSK79L0C42PROD with BILLS