IB 

Union Calendar No. 539 

114TH CONGRESS 

2D SESSION H. R. 3798 

[Report No. 114–697] 

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. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 22, 2015 

Mr. GARRETT introduced the following bill; which was referred to the 

Committee on Financial Services 

JULY 21, 2016 

Additional sponsor: Mr. EMMER of Minnesota 

JULY 21, 2016 

Committed to the Committee of the Whole House on the State of the Union 

and ordered to be printed 


srobinson on DSK5SPTVN1PROD with BILLS
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•HR 3798 RH

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. 


srobinson on DSK5SPTVN1PROD with BILLS
3 

•HR 3798 RH

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Due Process Restora5 tion Act of 2015’’. 

6 SEC. 2. PRIVATE PARTIES AUTHORIZED TO COMPEL THE 

7 SECURITIES AND EXCHANGE COMMISSION TO 

8 SEEK SANCTIONS BY FILING CIVIL ACTIONS. 

9 (a) IN GENERAL.—The Securities Exchange Act of 

10 1934 (15 U.S.C. 78a et seq.) is amended by adding at 

11 the end of title I the following: 

12 ‘‘SEC. 40. PRIVATE PARTIES AUTHORIZED TO COMPEL THE 

13 COMMISSION TO SEEK SANCTIONS BY FILING 

14 CIVIL ACTIONS. 

15 ‘‘(a) TERMINATION OF ADMINISTRATIVE PRO16 CEEDING.—In the case of any person who is a party to 

17 a proceeding brought by the Commission under a securi18 ties law, to which section 554 of title 5, United States 

19 Code, applies, and against whom an order imposing a 

20 cease and desist order and a penalty may be issued at 

21 the conclusion of the proceeding, that person may, not 

22 later than 20 days after receiving notice of such pro23 ceeding, and at that person’s discretion, require the Com24 mission to terminate the proceeding. 


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•HR 3798 RH

1 ‘‘(b) CIVIL ACTION AUTHORIZED.—If a person re2 quires the Commission to terminate a proceeding pursuant 

3 to subsection (a), the Commission may bring a civil action 

4 against that person for the same remedy that might be 

5 imposed. 

6 ‘‘(c) STANDARD OF PROOF IN ADMINISTRATIVE PRO7 CEEDING.—Notwithstanding any other provision of law, in 

8 the case of a proceeding brought by the Commission under 

9 a securities law, to which section 554 of title 5, United 

10 States Code, applies, a legal or equitable remedy may be 

11 imposed on the person against whom the proceeding was 

12 brought only on a showing by the Commission of clear and 

13 convincing evidence that the person has violated the rel14 evant provision of law.’’. 

15 (b) CLERICAL AMENDMENT.—The table of contents 

16 of the Securities Exchange Act of 1934 (15 U.S.C. 78a 

17 et seq.) is amended by inserting after the item relating 

18 to section 39 the following: 

‘‘40. Private parties authorized to compel the Commission to seek sanctions by 

filing civil actions.’’. 


srobinson on DSK5SPTVN1PROD with BILLS

srobinson on DSK5SPTVN1PROD with BILLS
Union Calendar No. 539 

114TH CONGRESS 

2D SESSION H. R. 3798 

[Report No. 114–697] 

A BILL 

To amend the Securities Exchange Act of 1934 to 

ministrative proceeding, and for other purposes. table remedies in a civil action, instead of an adand Exchange Commission to seek legal or equipermit private persons to compel the Securities 

JULY 21, 2016 

Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed 


srobinson on DSK5SPTVN1PROD with BILLS