[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2128 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 2128

To amend the Securities Exchange Act of 1934 to permit private persons 
   to compel the Securities and Exchange Commission to seek legal or 
  equitable remedies in a civil action, instead of an administrative 
                  proceeding, and for other purposes.


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                    IN THE HOUSE OF REPRESENTATIVES

                             April 25, 2017

 Mr. Davidson introduced the following bill; which was referred to the 
                    Committee on Financial Services

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                                 A BILL


 
To amend the Securities Exchange Act of 1934 to permit private persons 
   to compel the Securities and Exchange Commission to seek legal or 
  equitable remedies in a civil action, instead of an administrative 
                  proceeding, 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 ``Due Process Restoration Act of 
2017''.

SEC. 2. PRIVATE PARTIES AUTHORIZED TO COMPEL THE SECURITIES AND 
              EXCHANGE COMMISSION TO SEEK SANCTIONS BY FILING CIVIL 
              ACTIONS.

    The Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) is 
amended by adding at the end of title I the following:

``SEC. 40. PRIVATE PARTIES AUTHORIZED TO COMPEL THE COMMISSION TO SEEK 
              SANCTIONS BY FILING CIVIL ACTIONS.

    ``(a) Termination of Administrative Proceeding.--In the case of any 
person who is a party to a proceeding brought by the Commission under a 
securities law, to which section 554 of title 5, United States Code, 
applies, and against whom an order imposing a cease and desist order 
and a penalty may be issued at the conclusion of the proceeding, that 
person may, not later than 20 days after receiving notice of such 
proceeding, and at that person's discretion, require the Commission to 
terminate the proceeding.
    ``(b) Civil Action Authorized.--If a person requires the Commission 
to terminate a proceeding pursuant to subsection (a), the Commission 
may bring a civil action against that person for the same remedy that 
might be imposed.
    ``(c) Standard of Proof in Administrative Proceeding.--
Notwithstanding any other provision of law, in the case of a proceeding 
brought by the Commission under a securities law, to which section 554 
of title 5, United States Code, applies, a legal or equitable remedy 
may be imposed on the person against whom the proceeding was brought 
only on a showing by the Commission of clear and convincing evidence 
that the person has violated the relevant provision of law.''.
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