,,ii  #aae? ,,congress  #b;d ,session   
,s4 #cdba  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,septemb] #f1 #bjah,mr4
 ,p]due introduc$ ! foll[+ bill2 :i* 0  
read twice & ref]r$ to ! ,committee on !
 ,judici>y  ,a ,,bill  ,to provide =    
exclusive ,f$]al jurisdiction ov] c]ta9 
civil securities fraud actions1 & = o!r 
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,blue ,sky ,h>monization   
,act4  #b4 ,f9d+s ,congress f9ds !      
foll[+3  7#a7 ,companies t are engag$ 9 
int]/ate comm]ce & publicly trad$ on    
national ex*anges face unique *all5ges1 
(t5 op]at+ 9 e ,unit$ ,/ates            
jurisdiction "u a v>iety ( civil        
securities fraud /atutes 7commonly kn[n 
z blue sky laws7 t c ov]lap or          
contradict ea* o!r & ,f$]al law4  7#b7  
,civil & crim9al fraud h inh]5t         
diff]5ces 9 affect & burd5 ( pro(4      
,/ates h a unique int]e/ 9 prosecut+    
crim9al fraud t %\ld be ma9ta9$4  7#c7  
,impos+ diff]+ ,/ate regulatory         
requirem5ts = civil securities fraud on 

national m>kets increases risk1 creates 
ineffici5cies1 raises co/s1 & c h>m !   
effici5t op]ation ( ^? critical m>kets  
)\t provid+ mat]ial inve/or protection  
b5efits4  7#d7 ,comply+ ) dual          
regulatory regimes places public        
companies 9 ! ,unit$ ,/ates at a unique 
competitive disadvantage 9 an increas+ly
 global m>ketplace4  7#e7 ,reputational 
risk = ,unit$ ,/ates publicly trad$     
companies accus$ ( civil fraud 9 ,/ate  
civil en=cem5t actions1 (t5 bas$ on     
,/ate law /&>ds t diff] f ,f$]al law t  
o!rwise gov]ns ^? national m>kets1 c    
cause imm$iate & irrep>able f9ancial h>m
 to %>ehold]s & an unnecess>y loss (    
jobs1 ev5 aft] ^? allegations are lat]  
f\nd to be baseless4  7#f7 ,z ( ,june   
#bjag1 !re 7 #e1gcd public companies 9 !
 ,unit$ ,/ates1 few m ?an 9 #aihb1 :5 ! 
economy ( ! ,unit$ ,/ates 0 less ?an    
#a_/b ( its size z ( ! date ( enactm5t (
 ?is ,act4 ,! lack ( a uni=m /&>d =     
public companies is a contribut+ factor 
to ! decl9+ int]e/ 9 ! ,unit$ ,/ates    

public m>ket1 h>m+ ! economy ( ! ,unit$ 
,/ates & r$uc+ inve/m5t opportunities = 
! public 9 ! ,unit$ ,/ates4  7#g7       
,article ,i1 section #h1 clause #c ( !  
,con/itution ( ! ,unit$ ,/ates 7commonly
 kn[n z ! ,comm]ce ,clause7 explicitly  
/ates t ,congress %all h p[] ,to        
regulate ,comm]ce ) =eign ,nations1 &   
among ! sev]al ,/ates1 & ) ! ,indian    
,tribes4 ,! regulation ( int]/ate       
comm]ce is an explicitly ,f$]al         
responsibility & companies actively     
engag+ 9 comm]ce across ,/ate l9es &    
rais+ capital on national m>kets %\ld be
 prim>ily regulat$ by ! uni=m anti-fraud
 /&>d ( ! ,f$]al ,gov]nm5t4  7#h7 ,9 !  
pa/1 ,congress has ex]cis$ ?is au?ority 
9 reg>ds to ,/ate securities preemption 
) bo? ! ,private ,securities ,litigation
 ,re=m ,act ( #aiie 7,public ,law       
#ajd-fg2 #aji ,/at4 #gcg71 :i* 0 design$
 to curb abusive ,f$]al class actions1 &
 ! ,national ,securities ,m>kets        
,improvem5t ,act ( #aiif 7,public ,law  
#ajd-bij2 #aaj ,/at4 #cdaf7 to ensure t 

,/ates c\ld n impose _! own views ( :at 
%\ld or %\ld n be includ$ 9 regi/ration 
/atem5ts fil$ 9 connection ) nationally 
trad$ securities4  7#i7 ,x is 9 ! public
 int]e/ to e/abli% preemption ( ,f$]al  
regulators & c\rts ov] civil securities 
fraud1 elim9at+ concurr5t ,f$]al & ,/ate
 jurisdiction ov] ! specific companies  
cov]$ by ?is ,act4  #c4 ,f$]al          
jurisdiction ov] securities fraud  7a7  
,securities ,ex*ange ,act ( #aicd ,!    
,securities ,ex*ange ,act ( #aicd 7#ae  
,u4,s4,c4 #gh;a et seq47 is am5d$ by    
ins]t+ aft] section #ba;,f 7#ae         
,u4,s4,c4 #ghu-#f7 ! foll[+3  #ba;,g4   
,f$]al jurisdiction ov] securities fraud
  7a7 ,def9itions ,9 ?is section3 7#a7  
,cov]$ security ,! t]m cov]$ security   
means a security t is--  7,a7 7i7 li/$1 
or au?oriz$ = li/+1 on ! ,new ,york     
,/ock ,ex*ange or ! ,national ,m>ket    
,sy/em ( ! ,nasdaq ,/ock ,m>ket 7or any 
successor to ei!r su* entity72  7ii7    
li/$1 or au?oriz$ = li/+1 on a national 
securities ex*ange 7or a ti] or segm5t (

 a national securities ex*ange7 t has   
li/+ /&>ds t ! ,commission det]m9es by  
rule 7^u its own initiative or ^u !     
basis ( a petition7 are sub/antially    
simil> to ! li/+ /&>ds applicable to a  
security describ$ 9 clause 7i72 or      
7iii7 a security ( ! same issu] t is    
equal 9 s5iority1 or t is a s5ior       
security1 to a security describ$ 9      
clause 7i7 or 7ii72 &  7,b7 issu$ by a  
company t is engag$ 9 int]/ate comm]ce4 
7#b7 ,securities fraud ,! t]m securities
 fraud means any misrepres5tation1      
omission1 or manipulative or deceptive  
conduct kn[+ly or unkn[+ly made or      
engag$ 9 9 connection ) a cov]$ security
 or transaction ( a cov]$ security4  7b7
 ,preemption ,no law1 rule1 regulation1 
judgm5t1 agreem5t1 ord]1 or o!r action (
 any ,/ate1 or political subdivision ( a
 ,/ate1 may regulate securities fraud ) 
respect to an issu]4  7c7 ,orig9al      
jurisdiction = ,f$]al c\rts ,! di/rict  
c\rts ( ! ,unit$ ,/ates %all h orig9al  
jurisdiction ov] any civil action alleg+

 securities fraud ) respect to an issu] 
& any su* action br\ght 9 any ,/ate c\rt
 may be remov$ to ! ,f$]al di/rict c\rt 
= ! di/rict 9 :i* ! action is p5d+4  7d7
 ,pres]vation ( ,/ate au?ority ,consi/5t
 ) ?is section1 ! securities commission 
7or ag5cy or (fice p]=m+ l functions7 ( 
any ,/ate %all reta9 jurisdiction "u !  
laws ( t ,/ate to inve/igate & br+--    
7#a7 a civil en=cem5t action ) respect  
to fraud1 deceit1 or unlawful conduct 9 
connection ) securities or securities   
transactions o!r ?an 9 connection ) a   
cov]$ security or transactions ( a cov]$
 security2 &  7#b7 a crim9al en=cem5t   
action ) respect to fraud1 deceit1 or   
unlawful conduct 9 connection ) a cov]$ 
security or transactions ( a cov]$      
security if t en=cem5t action complies 9
 all respects ) ! legal requirem5ts =   
securities fraud "u ,f$]al law4  7e7    
,effect ,?is section %all be effective  
not)/&+ any o!r provision ( law & %all  
sup]s$e any previ\sly enact$ conflict+  
provision4  4  7b7 ,securities ,act (   

#aicc ,! ,securities ,act ( #aicc 7#ae  
,u4,s4,c4 #gg;a et seq47 is am5d$ by    
ins]t+ aft] section #bh 7#ae ,u4,s4,c4  
#ggz-#c7 ! foll[+3  #bi4 ,f$]al         
jurisdiction ov] securities fraud  7a7  
,def9itions ,9 ?is section3 7#a7 ,cov]$ 
security ,! t]m cov]$ security means a  
security t is--  7,a7 7i7 li/$1 or      
au?oriz$ = li/+1 on ! ,new ,york ,/ock  
,ex*ange or ! ,national ,m>ket ,sy/em ( 
! ,nasdaq ,/ock ,m>ket 7or any successor
 to ei!r su* entity72  7ii7 li/$1 or    
au?oriz$ = li/+1 on a national          
securities ex*ange 7or a ti] or segm5t (
 a national securities ex*ange7 t has   
li/+ /&>ds t ! ,commission det]m9es by  
rule 7^u its own initiative or ^u !     
basis ( a petition7 are sub/antially    
simil> to ! li/+ /&>ds applicable to a  
security describ$ 9 clause 7i72 or      
7iii7 a security ( ! same issu] t is    
equal 9 s5iority1 or t is a s5ior       
security1 to a security describ$ 9      
clause 7i7 or 7ii72 &  7,b7 issu$ by a  
company t is engag$ 9 int]/ate comm]ce4 

7#b7 ,securities fraud ,! t]m securities
 fraud means any misrepres5tation1      
omission1 or manipulative or deceptive  
conduct kn[+ly or unkn[+ly made or      
engag$ 9 9 connection ) a cov]$ security
 or transaction ( a cov]$ security4  7b7
 ,preemption ,no law1 rule1 regulation1 
judgm5t1 agreem5t1 ord]1 or o!r action (
 any ,/ate1 or political subdivision ( a
 ,/ate1 may regulate securities fraud ) 
respect to an issu]4  7c7 ,orig9al      
jurisdiction = ,f$]al c\rts ,! di/rict  
c\rts ( ! ,unit$ ,/ates %all h orig9al  
jurisdiction ov] any civil action alleg+
 securities fraud ) respect to an issu] 
& any su* action br\ght 9 any ,/ate c\rt
 may be remov$ to ! ,f$]al di/rict c\rt 
= ! di/rict 9 :i* ! action is p5d+4  7d7
 ,pres]vation ( ,/ate au?ority ,consi/5t
 ) ?is section1 ! securities commission 
7or ag5cy or (fice p]=m+ l functions7 ( 
any ,/ate %all reta9 jurisdiction "u !  
laws ( t ,/ate to inve/igate & br+--    
7#a7 a civil en=cem5t action ) respect  
to fraud1 deceit1 or unlawful conduct 9 

connection ) securities or securities   
transactions o!r ?an 9 connection ) a   
cov]$ security or transactions ( a cov]$
 security2 &  7#b7 a crim9al en=cem5t   
action ) respect to fraud1 deceit1 or   
unlawful conduct 9 connection ) a cov]$ 
security or transactions ( a cov]$      
security if t en=cem5t action complies 9
 all respects ) ! legal requirem5ts =   
securities fraud "u ,f$]al law4  7e7    
,effect ,?is section %all be effective  
not)/&+ any o!r provision ( law & %all  
sup]s$e any previ\sly enact$ conflict+  
provision4  4