I
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) intro-
duced the following bill; which was referred to the Committee on Com-
merce
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 Representa-
tives 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 cov-
ered security, or
‘‘(B) that the defendant used or employed
any manipulative or deceptive device or contriv-
ance 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 pro-
vided by section 18(b)(1) of this title.’’.
(2) JURISDICTION.—Section 22(a) of the Secu-
rities Act of 1933 (15 U.S.C. 77v(a)) is amended—
(A) in the first sentence—
(i) by inserting ‘‘exclusive’’ before ‘‘ju-
risdiction’’; and
(ii) by striking ‘‘and, concurrent with
State and Territorial courts,’’ and insert-
ing ‘‘and’’; and
(B) by striking ‘‘No case arising under this
title and brought in any State court of com-
petent 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 sub-
section:
‘‘(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 cov-
ered security, or
‘‘(B) that the defendant used or employed
any manipulative or deceptive device or contriv-
ance 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 pro-
vided 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’’.
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