[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1653 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 1653

To amend the Securities Act of 1933 and the Securities Exchange Act of 
 1934 to create uniform standards with respect to federally-regulated 
                  securities, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 16, 1997

  Mr. Campbell (for himself, Mr. Klug, and Mr. Dooley of California) 
 introduced the following bill; which was referred to the Committee on 
                                Commerce

_______________________________________________________________________

                                 A BILL


 
To amend the Securities Act of 1933 and the Securities Exchange Act of 
 1934 to create uniform standards with respect to federally-regulated 
                  securities, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Securities Litigation Improvement 
Act of 1997''.

SEC. 2. LIMITATION ON PRIVATE CIVIL ACTIONS.

    (a) Amendments to the Securities Act of 1933.--
            (1) Remedies.--Section 16 of the Securities Act of 1933 (15 
        U.S.C. 77p) is amended to read as follows:

``SEC. 16. REMEDIES.

    ``(a) In General.--Except as provided in subsection (b), the rights 
and remedies provided by this title shall be in addition to any and all 
other rights and remedies that may exist at law or in equity.
    ``(b) Limitation on State Actions.--
            ``(1) Limitation.--Notwithstanding subsection (a), no 
        private civil action alleging--
                    ``(A) a misrepresentation or omission in connection 
                with the purchase or sale of any covered security, or
                    ``(B) that the defendant used or employed any 
                manipulative or deceptive device or contrivance in 
                connection with the purchase or sale of any covered 
                security,
        may be initiated or maintained in any State court or under 
        State law (including a pendent State claim to an action under 
        Federal law).
            ``(2) Definition.--For purposes of paragraph (1), the term 
        `covered security' has the meaning provided by section 18(b)(1) 
        of this title.''.
            (2) Jurisdiction.--Section 22(a) of the Securities Act of 
        1933 (15 U.S.C. 77v(a)) is amended--
                    (A) in the first sentence--
                            (i) by inserting ``exclusive'' before 
                        ``jurisdiction''; and
                            (ii) by striking ``and, concurrent with 
                        State and Territorial courts,'' and inserting 
                        ``and''; and
                    (B) by striking ``No case arising under this title 
                and brought in any State court of competent 
                jurisdiction shall be removed to any court of the 
                United States.''.
    (b) Amendments to the Securities Exchange Act of 1934.--Section 28 
of the Securities Exchange Act of 1934 (15 U.S.C. 78bb) is amended--
            (1) in subsection (a), by striking ``The rights and 
        remedies'' and inserting ``Except as provided in subsection 
        (f), the rights and remedies''; and
            (2) by adding at the end the following new subsection:
    ``(f) Limitation on State Actions.--
            ``(1) Limitation.--Notwithstanding subsection (a), no 
        private civil action alleging--
                    ``(A) a misrepresentation or omission in connection 
                with the purchase or sale of any covered security, or
                    ``(B) that the defendant used or employed any 
                manipulative or deceptive device or contrivance in 
                connection with the purchase or sale of any covered 
                security,
        may be initiated or maintained in any State court or under 
        State law (including a pendent State claim to an action under 
        Federal law).
            ``(2) Definition.--For purposes of paragraph (1), the term 
        `covered security' has the meaning provided by section 18(b)(1) 
        of the Securities Act of 1933.''.
    (c) Technical Amendment.--Section 18(b)(1)(A) of the Securities Act 
of 1933 (15 U.S.C. 77r(b)(1)(A)) is amended ``, or authorized for 
listing'' after ``Exchange, or listed''.
                                 <all>