[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8933 Introduced in House (IH)]

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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.''.
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