[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5956 Introduced in House (IH)]
109th CONGRESS
2d Session
H. R. 5956
To make all civil penalties collected by the Securities and Exchange
Commission in securities law enforcement actions available for the
benefit of victims of securities law violations, and for other
purposes.
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IN THE HOUSE OF REPRESENTATIVES
July 28, 2006
Mr. Baker (for himself, Mr. Kanjorski, Mr. Oxley, Mr. Frank of
Massachusetts, and Mr. Shays) introduced the following bill; which was
referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To make all civil penalties collected by the Securities and Exchange
Commission in securities law enforcement actions available for the
benefit of victims of securities law violations, 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 ``Fair Fund Improvement Act''.
SEC. 2. FAIR FUND IMPROVEMENTS.
(a) Amendment.--Subsection (a) of section 308 of the Sarbanes-Oxley
Act of 2002 (15 U.S.C. 7246(a)) is amended to read as follows:
``(a) Civil Penalties To Be Used for the Relief of Victims.--If in
any judicial or administrative action brought by the Commission under
the securities laws (as such term is defined in section 3(a)(47) of the
Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(47)), the Commission
obtains a civil penalty against any person for a violation of such
laws, the amount of such civil penalty shall, on the motion or at the
direction of the Commission, be added to and become part of a
disgorgement fund or other fund established for the benefit of the
victims of such violation.''.
(b) Conforming Amendments.--
(1) Section 308(b) of such Act is amended--
(A) by striking ``for a disgorgement fund described
in subsection (a)'' and inserting ``for a disgorgement
fund or other fund described in subsection (a)''; and
(B) by striking ``in the disgorgement fund'' and
inserting ``in such fund''.
(2) Section 308 of such Act is further amended by striking
subsection (e).
SEC. 3. AUTHORITY TO CONTRACT WITH PRIVATE COUNSEL FOR LEGAL SERVICES
TO COLLECT DELINQUENT JUDGMENTS AND ORDERS.
Subsection (b) of section 4 of the Securities Exchange Act of 1934
(15 U.S.C. 78d(b)) is amended--
(1) in the subsection heading by striking ``and Leasing
Authority'' and inserting ``, Leasing Authority, and
Contracting Authority''; and
(2) by adding at the end of such subsection the following
new paragraph:
``(4) Contracting authority.--
``(A) In general.--Notwithstanding any other
provision of law, the Commission is authorized to enter
into contracts to retain private legal counsel to
furnish legal services, including representation in
litigation, negotiation, compromise, and settlement, in
the case of any claim of indebtedness resulting from
any judgment or order (either by litigation or
settlement) obtained by the Commission in any judicial
action or administrative proceeding brought by or on
behalf of the Commission. Private counsel retained
under this paragraph may represent the Commission in
such debt collection matters to the same extent as the
Commission may represent itself.
``(B) Terms and conditions of contract.--Each such
contract shall include such terms and conditions as the
Commission considers necessary and appropriate, and
shall include provisions specifying--
``(i) the amount of the fee to be paid to
the private counsel under such contract or the
method for calculating that fee;
``(ii) that the Commission retains the
authority to represent itself, resolve a
dispute, compromise a claim, end collection
efforts, and refer a matter to other private
counsel or to the Attorney General; and
``(iii) that the Commission may terminate
either the contract or the private counsel's
representation of the Commission in particular
cases for any reason, including for the
convenience of the Commission.
``(C) Payment of fees.--Notwithstanding section
3302(b) of title 31, United States Code, a contract
under this paragraph may provide that fees and costs
incurred by private counsel under such contracts are
payable from the amounts recovered.
``(D) Competition requirements.--Nothing in this
paragraph shall relieve the Commission of the
competition requirements set forth in title III of the
Federal Property and Administrative Services Act of
1949 (41 U.S.C. 251 et seq.).
``(E) Counterclaims.--In any action to recover
indebtedness which is brought on behalf of the
Commission by private counsel retained under this
paragraph, no counterclaim may be asserted against the
Commission unless the counterclaim is served directly
on the Commission. Such service shall be made in
accordance with the rules of procedure of the court in
which the action is brought.''.
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