Whistleblower Programs Improvement Act

To amend the Commodity Exchange Act and the Securities Exchange Act of 1934 to modify provisions relating to whistleblower incentives and protection, and for other purposes. 1. Short title This Act may be cited as the Whistleblower Programs Improvement Act 2. Whistleblower protections for internal disclosures (a) Commodities Section 23 of the Commodity Exchange Act ( 7 U.S.C. 26 (1) in subsection (a)(7)— (A) by striking The term (A) In general The term ; and (B) by adding at the end the following: (B) Special rule Solely for the purposes of subsection (h)(1), the term whistleblower ; and (2) in subsection (h)(1)(A)— (A) in clause (i), by striking or (B) in clause (ii), by striking the period at the end and inserting ; or (C) by adding at the end the following: (iii) in providing information regarding any conduct that the whistleblower reasonably believes constitutes a violation of any law, rule, or regulation subject to the jurisdiction of the Commission to— (I) a person with supervisory authority over the whistleblower at the employer of the whistleblower, if that employer is an entity registered with, or required to be registered with, the Commission, a self-regulatory organization, or a State securities commission or office performing like functions; or (II) another individual working for the employer described in subclause (I) who the whistleblower reasonably believes has the authority— (aa) to investigate, discover, or terminate the misconduct; or (bb) to take any other action to address the misconduct. . (b) Securities Section 21F of the Securities Exchange Act of 1934 ( 15 U.S.C. 78u–6 (1) in subsection (a)(6)— (A) by striking The term (A) In general The term ; and (B) by adding at the end the following: (B) Special rule Solely for the purposes of subsection (h)(1), the term whistleblower ; and (2) in subsection (h)(1)(A)— (A) in clause (ii), by striking or (B) in clause (iii), by striking the period at the end and inserting ; or (C) by adding at the end the following: (iv) in providing information regarding any conduct that the whistleblower reasonably believes constitutes a violation of any law, rule, or regulation subject to the jurisdiction of the Commission to— (I) a person with supervisory authority over the whistleblower at the employer of the whistleblower, if that employer is an entity registered with, or required to be registered with, the Commission, a self-regulatory organization, or a State securities commission or office performing like functions; or (II) another individual working for the employer described in subclause (I) who the whistleblower reasonably believes has the authority to— (aa) investigate, discover, or terminate the misconduct; or (bb) take any other action to address the misconduct. . 3. Prompt payment of awards (a) Commodities (1) In general Section 23(b) of the Commodity Exchange Act ( 7 U.S.C. 26 (3) Timely processing of claims (A) Initial disposition (i) In general Except as provided in subparagraph (B), and subject to clause (ii), the Commission shall make an initial disposition with respect to a claim submitted by a whistleblower for an award under this section (referred to in this paragraph as an award claim (ii) Multiple actions If a covered judicial or administrative action involves 1 or more related actions, the requirement under clause (i) shall apply with respect to the latest deadline with respect to the actions. (B) Exceptions (i) Initial extension If the Director of the Division of Enforcement of the Commission (referred to in this paragraph as the Director Chairman (ii) Additional extensions If, after providing an extension under clause (i), the Director, or the designee of the Director, determines that the Commission cannot reasonably satisfy the requirement under subparagraph (A) with respect to an award claim, as extended under that clause, the Director or the designee, as applicable, after providing notice to the Chairman, may extend the period in which the Commission may satisfy subparagraph (A) by 1 additional 180-day period. (iii) Notice to whistleblower required If the Director, or the designee of the Director, exercises authority under clause (i) or (ii), the Director or the designee, as applicable, shall submit to the whistleblower who filed the award claim that is subject to that action by the Director or the designee a written notification of that action by the Director or the designee. (C) Applicability This paragraph shall apply only to an award claim that is timely submitted under a deadline established by the Commission after the date of enactment of this paragraph. . (2) Rules The Commodity Futures Trading Commission may issue any rules that are necessary to carry out paragraph (3) of section 23(b) of the Commodity Exchange Act ( 7 U.S.C. 26(b) (b) Securities (1) In general Section 21F(b) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78u–6(b) (3) Timely processing of claims (A) Initial disposition (i) In general Except as provided in subparagraph (B), and subject to clause (ii), the Commission shall make an initial disposition with respect to a claim submitted by a whistleblower for an award under this section (referred to in this paragraph as an award claim (ii) Multiple actions If a covered judicial or administrative action involves 1 or more related actions, the requirement under clause (i) shall apply with respect to the latest deadline with respect to the actions. (B) Exceptions (i) Initial extension If the Director of the Division of Enforcement of the Commission (referred to in this paragraph as the Director Chairman (ii) Additional extensions If, after providing an extension under clause (i), the Director, or the designee of the Director, determines that the Commission cannot reasonably satisfy the requirement under subparagraph (A) with respect to an award claim, as extended under that clause, the Director or the designee, as applicable, after providing notice to the Chairman, may extend the period in which the Commission may satisfy subparagraph (A) by 1 additional 180-day period. (iii) Notice to whistleblower required If the Director, or the designee of the Director, exercises authority under clause (i) or (ii), the Director or the designee, as applicable, shall submit to the whistleblower who filed the award claim that is subject to that action by the Director or the designee a written notification of that action by the Director or the designee. (C) Applicability This paragraph shall apply only to an award claim that is timely submitted under a deadline established by the Commission after the date of enactment of this paragraph. . (2) Rules The Securities and Exchange Commission may issue any rules that are necessary to carry out paragraph (3) of section 21F(b) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78u–6(b) 4. Miscellaneous provisions (a) CFTC Whistleblower Program education initiatives Section 23(g)(2) of the Commodity Exchange Act ( 7 U.S.C. 26(g)(2) (1) in subparagraph (A), by striking and (2) in subparagraph (B), by striking the period at the end and inserting ; and (3) by adding at the end the following: (C) the funding of initiatives designed to educate stakeholders regarding the incentives and protections available under this section, including the benefits of those incentives and protections. . (b) Deposits into CFTC Consumer Protection Fund Section 23(g)(3)(A) of the Commodity Exchange Act ( 7 U.S.C. 26(g)(3)(A) $100,000,000 $150,000,000 (c) Availability of certain CFTC information to government agencies Section 23(h)(2)(C) of the Commodity Exchange Act ( 7 U.S.C. 26(h)(2)(C) (1) in clause (i)— (A) in subclause (II), by striking jurisdiction; (aa) the Federal Trade Commission; (bb) the Internal Revenue Service; and (cc) the Department of State; ; and (B) in subclause (VI), by inserting or other foreign law enforcement authority (2) in clause (ii)— (A) by striking Each (I) In general Each ; (B) in subclause (I) (as so designated), by inserting subclauses (I) through (V) of clause (i) (C) by adding at the end the following: (II) Foreign authorities An entity described in subclause (VI) of clause (i) shall maintain information described in that clause in accordance with such assurances of confidentiality as the Commission determines appropriate. . (d) Technical corrections (1) Review Section 23(f)(3) of the Commodity Exchange Act ( 7 U.S.C. 26(f)(3) section 7064 section 706 (2) Existing commodities provision (A) In general Section 21F of the Securities Exchange Act of 1934 ( 15 U.S.C. 78u–6 (k) Nonenforceability of certain provisions waiving rights and remedies or requiring arbitration (1) Waiver of rights and remedies The rights and remedies provided in this section may not be waived by any agreement, policy form, or condition of employment, including by a predispute arbitration agreement. (2) Predispute arbitration agreement No predispute arbitration agreement shall be valid or enforceable if the agreement requires the arbitration of a dispute arising under this section. . (B) Applicability Subsection (k) of section 21F of the Securities Exchange Act of 1934 ( 15 U.S.C. 78u–6 (e) Clarifications regarding performance evaluations for the foreign service Section 2302(a)(2)(viii) of title 5, United States Code, is amended by striking or under title 38 , under title 38, or under the Foreign Service Act of 1980 ( 22 U.S.C. 3901

Summary: Whistleblower Programs Improvement Act This bill expands whistleblower protections with regard to commodities and securities law violations. Specifically, the bill extends protections from retaliation to individuals who (1) assist in a Commodity Futures Trading Commission (CFTC) or in a Securities and Exchange Commission (SEC) investigation of these violations, (2) make disclosures that are required or protected under any law subject to the CFTC's or the SEC's jurisdiction, or (3) provide information to supervisors or other employees with the authority to investigate potential misconduct. Currently, these protections apply only to individuals who report information directly to the CFTC or the SEC. The bill also provides for the processing of these whistleblower awards no later than one year after the deadline to file a claim.