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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8933 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 8933
To amend the Securities Act of 1933 to require covered issuers to carry
out a racial equity audit every 2 years, to require atonement for the
descendants of enslaved persons, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 5, 2024
Mr. Green of Texas (for himself, Mrs. Beatty, Ms. Clarke of New York,
Ms. Tlaib, Ms. Garcia of Texas, Mr. Jackson of Illinois, Ms. Lee of
California, Ms. Jackson Lee, Mr. Evans, and Ms. Schakowsky) introduced
the following bill; which was referred to the Committee on Financial
Services
_______________________________________________________________________
A BILL
To amend the Securities Act of 1933 to require covered issuers to carry
out a racial equity audit every 2 years, to require atonement for the
descendants of enslaved persons, 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 ``Original Securities and Exchange
Atonement Act of 2024''.
SEC. 2. RACIAL EQUITY AUDIT.
(a) In General.--The Securities Act of 1933 is amended by inserting
after section 4A (15 U.S.C. 77d-1) the following:
``SEC. 4B. RACIAL EQUITY AUDIT.
``(a) In General.--Not later than the end of the 6-month period
beginning on the date of enactment of this section, and every 2 years
thereafter, each covered issuer shall--
``(1) conduct an independent audit to assess within each
line of business--
``(A) the issuer's policies and practices on civil
rights, equity, diversity, and inclusion;
``(B) how such policies and practices affect the
issuer's business; and
``(C) whether the issuer, any predecessor
institution of the issuer, or any affiliate of the
issuer had direct or indirect ties to or profited from
the institution of slavery;
``(2) issue a report to the Commission containing--
``(A) in the case of--
``(i) the initial report or any subsequent
report for which the covered issuer determines
material changes have occurred since the
previous report, all findings and
determinations made in carrying out the
assessments required under paragraph (1); or
``(ii) a subsequent report for which the
covered issuer determines no material changes
have occurred since the previous report, an
attestation that no material changes were found
under the assessments required under paragraph
(1);
``(B) to the extent the issuer identifies ties to
or profits from the institution of slavery, a
disclosure of the steps the issuer has taken to
reconcile such ties or profits; and
``(C) to the extent the issuer identifies ties to
or profits from the institution of slavery and has not
taken steps to reconcile such ties or profits, a
disclosure of the steps to reconcile such ties or
profits the issuer plans to take, which may include--
``(i) startup capital and funded savings
programs in low to moderate income communities
for low to moderate income individuals residing
in such communities;
``(ii) grants or contributions to
historically black colleges and universities;
and
``(iii) grants or contributions to
historically black organizations exempt from
taxation as described in paragraph (3) or (4)
section 501(c) of the Internal Revenue Code of
1986 and exempt from taxation under section
501(a) of such Code; and
``(3) make the report described under paragraph (2)
available to the public, including on a website of the issuer
and a website of the Commission.
``(b) Failure To Issue Report.--
``(1) Enforcement by commission.--
``(A) Covered issuer fines.--Any covered issuer
that fails to issue a report required under subsection
(a)(2), or that reports false, misleading, or
inaccurate information in such a report, shall be fined
by the Commission in an amount of $20,000 per day until
the report is issued, or until the report is corrected
to not be false, misleading, or inaccurate, as
applicable.
``(B) Employee fines.--Any employee or officer of a
covered issuer who intentionally fails to issue a
report required under subsection (a)(2) or that reports
false, misleading, or inaccurate information in such
report, shall be fined by the Commission in an amount
of $2,000 per day until the report is issued, or until
the report is corrected to not be false, misleading, or
inaccurate, as applicable.
``(C) Transfer of amounts.--The Commission shall
transfer--
``(i) 50 percent of the fines collected
pursuant to subparagraphs (A) and (B) to the
Secretary of the Treasury, and the Secretary of
the Treasury shall, without further
appropriation, use such funds to carry out the
duties of the Office of Minority Low to
Moderate Income Programs; and
``(ii) 50 percent of the fines collected
pursuant to subparagraphs (A) and (B) to the
Secretary of Housing and Urban Development, and
the Secretary of Housing and Urban Development
shall, without further appropriation, use such
funds to carry out--
``(I) a program to provide housing
counseling and homebuyer assistance,
including downpayments, closing costs,
and interest rate buydowns, to first-
time, first-generation minority low to
moderate income homebuyers;
``(II) eviction and foreclosure
assistance to minority low to moderate
income renters and homebuyers;
``(III) affordable housing
production under the Housing Trust Fund
established under section 1338 of the
Federal Housing Enterprises Financial
Safety and Soundness act of 1992 (12
U.S.C. 4568), including permanent
supportive housing for people
experiencing homelessness;
``(IV) rental assistance to
eligible low income households under
the Housing Choice Voucher Program
under section 8(o) of the United States
Housing Act of 1937 (42 U.S.C.
1437f(o)); and
``(V) formula grants to
participating jurisdictions to conduct
Equity Plans under the rule of the
Secretary of Housing and Urban
Development implementing the
requirement under the Fair Housing Act
(42 U.S.C. 3601) to affirmatively
further fair housing.
``(2) Private right of action.--A person that holds the
securities of a covered issuer and suffers harm as a result of
the failure of such covered issuer to issue a report required
under subsection (a)(2), may bring an action against the
covered issuer in the appropriate district court of the United
States.
``(3) Whistleblower awards.--
``(A) In general.--The Commission shall pay an
award or awards to 1 or more individuals who
voluntarily provided original information to the
Commission that led to the successful enforcement of
the fines required under subparagraph (A) or (B) of
paragraph (1) in the case of the failure of a covered
issuer to issue a report required under subsection
(a)(2) or that reports false, misleading, or inaccurate
information in such a report.
``(B) Amount.--The amount of an award under
subparagraph (A) shall--
``(i) be established by the Commission by
rule in an amount that the Commission
determines is sufficient to create incentive
for individuals to voluntarily provide original
information and deter noncompliance with
subsection (a); and
``(ii) not be less than $20,000.
``(C) Original information defined.--In this
paragraph, the term `original information' means
information that--
``(i) is derived from the independent
knowledge or analysis of an individual who
voluntarily provides the information to the
Commission;
``(ii) is not known to the Commission from
any other source, unless the whistleblower is
the original source of the information; and
``(iii) is not exclusively derived from an
allegation made in a judicial or administrative
hearing, in a governmental report, hearing,
audit, or investigation, or from the news
media, unless the whistleblower is a source of
the information.
``(c) Definitions.--In this section:
``(1) Area median income.--With respect to an individual,
the term `area median income' means the median income for the
area in which the individual lives, as determined by the
Secretary of Housing and Urban Development for purposes of the
United States Housing Act of 1937 (42 U.S.C. 1437 et seq.).
``(2) Covered issuer.--The term `covered issuer' means an
issuer that--
``(A) makes use of the mails or any means or
instrumentality of interstate commerce; and
``(B) has--
``(i) more than 100 employees; or
``(ii) a capitalization of greater than or
equal to $300,000,000.
``(3) Low to moderate income.--With respect to an
individual, the term `low to moderate income' means the
individual has earnings of less than 80 percent of the area
median income.
``(4) Minority.--The term `minority' means racial and
ethnic populations that are underrepresented in the general
population relative to the number of persons in the total
population.
``(5) Reconcile.--The term `reconcile' means to account for
and balance in an equitable manner.''.
(b) Office of Minority Low to Moderate Income Programs.--Chapter 3
of title 31, United States Code, is amended--
(1) in subchapter I, by adding at the end the following:
``Sec. 317. Office of Minority Low to Moderate Income Programs
``(a) Establishment.--There is established, within the Department
of the Treasury, an Office of Minority Low to Moderate Income Programs.
``(b) Duties.--The Office of Minority Low to Moderate Income
Programs shall provide grants for--
``(1) startup capital and funded savings programs in low to
moderate income minority communities for low to moderate income
minority individuals residing in such communities; and
``(2) such other programs determined appropriate by the
Secretary in furtherance of atonement for descendants of
enslaved persons.
``(c) Funding.--
``(1) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary of the Treasury
$3,000,000,000 to carry out this section.
``(2) Administrative costs.--The Secretary of the Treasury
may use 2 percent of amounts appropriated to carry out this
section for administrative expenses related to carrying out the
duties of the Office of Minority Low to Moderate Income
Programs.
``(d) Definitions.--In this section:
``(1) Area median income.--With respect to a community, the
term `area median income' means the median income for the area
in which the community is located, as determined by the
Secretary of Housing and Urban Development for purposes of the
United States Housing Act of 1937 (42 U.S.C. 1437 et seq.).
``(2) Low to moderate income community.--The term `low to
moderate income community' means a census tract in which 51
percent or more of the households located in the census tract
earn less than 80 percent of the area median income.''; and
(2) in the table of contents for such chapter, by inserting
after the item relating to section 316 the following:
``317. Office of Minority Low to Moderate Income Programs.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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