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U.S. GOVERNMENT
INFORMATION
Op
115TH CONGRESS REPORT
2d Session HOUSE OF REPRESENTATIVES 115-1118
DUE PROCESS RESTORATION ACT OF 2017
JANUARY 2, 2019.-Committed to the Committee of the Whole House on the State
of the Union and ordered to be printed
Mr. HENSARLING, from the Committee on Financial Services,
submitted the following
REPORT
together with
MINORITY VIEWS
[To accompany H.R. 2128]
The Committee on Financial Services, to whom was referred the
bill (H.R. 2128) to amend the Securities Exchange Act of 1934 to
permit private persons to compel the Securities and Exchange
Commission to seek legal or equitable remedies in a civil action, in-
stead of an administrative proceeding, and for other purposes, hav-
ing considered the same, report favorably thereon without amend-
ment and recommend that the bill do pass.
PURPOSE AND SUMMARY
The ability for the U.S. Securities and Exchange Commission
(SEC) to control the forum in which an action is brought raises due
process concerns because the SEC's in-house tribunals do not guar-
antee respondents the same types of rules and processes that help
ensure fairness in the U.S. justice system. For example, SEC ad-
ministrative proceedings do not afford respondents the same pro-
tections as they would receive under the Federal Rules of Civil Pro-
cedure and the Federal Rules of Evidence, and respondents do not
have the opportunity to have a jury trial. To address these con-
cerns, on April 25, 2017, Representative Warren Davidson intro-
duced H.R. 2128, the Due Process Restoration Act to provide re-
spondents in actions brought by SEC in an in-house administra-
tive proceeding with the ability to have their case removed to a fed-
eral district court. The legislation requires the clear and con-
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