I 111th CONGRESS 1st Session H. R. 3783 IN THE HOUSE OF REPRESENTATIVES October 8, 2009 Mr. Posey (for himself, Mr. Bachus, Mr. Putnam, and Mrs. Bachmann) introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the Securities Exchange Act of 1934 to provide the Securities and Exchange Commission with the authority to contract for the collection of delinquent claims resulting from judgments or orders obtained by the Commission.

1.

Short title

This Act may be cited as the SEC Delinquent Judgment Collection Act.

2.

Authority to contract for collection of delinquent judgments and orders

Subsection (b) of section 4 of the Securities Exchange Act of 1934 (15 U.S.C. 78d(b)) is amended— (1)in the heading of such subsection, by striking and leasing authority and inserting , leasing authority, and contracting authority; and (2)by adding at the end the following new paragraph: (4)

Contracting authority

(A)

In general

Notwithstanding any other provision of law, the Commission is authorized to enter into contracts to assist in the collection of any claim of indebtedness resulting from any judgment or order (either by litigation or settlement) obtained by the Commission in any judicial action or administrative proceeding brought by or on behalf of the Commission. This authority includes, but is not limited to, the retention of private legal counsel to furnish legal services, including representation in litigation, negotiation, compromise, and settlement. Private counsel retained under this paragraph may represent the Commission in such debt collection matters to the same extent as the Commission may represent itself. (B)

Terms and conditions of contract

Each such contract shall include such terms and conditions as the Commission considers necessary and appropriate, and shall include provisions specifying— (i)the amount of the fee to be paid under such contract or the method for calculating that fee; (ii)that the Commission retains the authority to represent itself, resolve a dispute, compromise a claim, end collection efforts, and refer a matter to other counsel or to the Attorney General; and (iii)that the Commission may terminate either the contract or the private counsel's representation of the Commission in particular cases for any reason, including for the convenience of the Commission. (C)

Payment of fees

Notwithstanding section 3302(b) of title 31, United States Code, a contract under this paragraph may provide that fees and costs incurred by private counsel under such contracts are payable from the amounts recovered. (D)

Competition required

Nothing in this paragraph shall relieve the Commission of the competition requirements set forth in title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.). (E)

Counterclaims

In any action to recover indebtedness which is brought on behalf of the Commission by private counsel retained under this paragraph, no counterclaim may be asserted against the Commission unless the counterclaim is served directly on the Commission. Such service shall be made in accordance with the rules of procedure of the court in which the action is brought. .