II 117th CONGRESS 2d Session S. 4657 IN THE SENATE OF THE UNITED STATES July 28, 2022 Ms. Cortez Masto (for herself, Mr. Menendez , and Mrs. Feinstein ) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To amend the Securities Exchange Act of 1934 to establish a grant program to fund qualified investor advocacy clinics, and for other purposes.

1. Short title This Act may be cited as the Investor Justice Act of 2022 . 2. Grants to qualified investor advocacy clinics Section 4(g) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78d(g) ) is amended by adding at the end the following: (9) Grants to qualified investor advocacy clinics (A) Definitions In this paragraph: (i) Qualified investor advocacy clinic The term qualified investor advocacy clinic means an entity that— (I) provides, or will provide, free representation to investors with claims of less than $100,000 (as such amount is annually adjusted by the Investor Advocate to reflect the percentage change in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor) in securities arbitrations and mediations before a registered national securities association (with exceptions to the requirements of this subclause authorized to be made by the Investor Advocate on a case-by-case basis); and (II) is or will be sponsored, offered, or run by— (aa) a clinical program at, or partnering with, an American Bar Association accredited law school; or (bb) an organization described in section 501(c) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code. (ii) Qualified representative The term qualified representative means any individual authorized to represent investors before a registered national securities association. (B) Grant authority The Commission, acting through the Investor Advocate, may make grants, on a competitive basis, to qualified investor advocacy clinics in accordance with this paragraph. (C) Applications To be eligible for a grant under subparagraph (B), a qualified investor advocacy clinic shall submit to the Commission an application at such time, in such form, and containing such information as the Commission may require, including information with respect to— (i) the number of investors in the geographical area served by the clinic; (ii) other similar entities serving the same population; (iii) the quality of the program offered by the clinic, including— (I) the qualifications of the administrators and qualified representatives of the clinic; and (II) the record of the clinic, if any, in providing legal and educational services to investors with low dollar value claims in arbitrations and mediations; and (iv) funding sources available to the clinic, including— (I) amounts received from other grants and contributions; and (II) the endowment and resources of any institution sponsoring the clinic. (D) Grant uses A qualified investor advocacy clinic to which a grant is made under subparagraph (B) may only use the grant funds for the development, expansion, or continuation of the qualified investor advocacy clinic. (E) Detail of Federal agency employees (i) In general Upon the request of the Commission, the head of any Federal agency may detail, on a reimbursable basis, any of the personnel of that Federal agency to the Commission to assist the Commission in carrying out the functions of the Commission under this paragraph. (ii) No interruption of status The detail of any personnel under clause (i) shall be without interruption or loss of civil service status or privilege. (F) Transparency A qualified investor advocacy clinic to which a grant is made under subparagraph (B) shall submit to the Commission a detailed accounting of the use of the grant funds at such time, in such form, and containing such information as the Commission may require. (G) Limitations (i) Aggregate limitation The aggregate amount of grants made under subparagraph (B) during a fiscal year may not exceed $5,000,000 (as such amount is annually adjusted by the Investor Advocate to reflect the percentage change in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor). (ii) Single clinic limitation In making grants under subparagraph (B), the Commission may not make, during a fiscal year, more than $150,000 (as such amount is annually adjusted to reflect the percentage change in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor) in grants to any single qualified investor advocacy clinic. (iii) Federal share The Federal share of the cost of activities carried out using a grant made under subparagraph (B) may not exceed 50 percent. (iv) Multi-year grants (I) In general In making grants under subparagraph (B), the Commission may make multi-year grants. (II) Limitation A multi-year grant made under this clause may not be made for a period exceeding 3 years. (H) Authorization of appropriations There are authorized to be appropriated such sums as may be necessary to carry out this paragraph. .