,i #aafth ,,congress #ast ,session ,h4 ,r4 #cfbe ,,in ,,the ,,house ,,of ,,representatives ,july #e1 #bjai,ms4 ,garcia of ,texas introduced the following bill2 which was referred to the ,committee on ,financial ,services ,a ,,bill ,to establish a whistleblower program at the ,public ,company ,accounting ,oversight ,board1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,,pcaob ,whistleblower ,protection ,act of #bjai4 #b4 ,whistleblower incentives and protection ,the ,sarbanes-,oxley ,act of #bjjb is amended-- 7#a7 in section #aje 7#ae ,u4,s4,c4 #gbae7 by adding at the end the following3 7f7 ,whistleblower incentives and protection 7#a7 ,definitions ,in this subsection the following definitions shall apply3 7,a7 ,covered proceeding ,the term covered proceeding means any disciplinary proceeding by the ,board initiated after the date of the enactment of this subsection that results in monetary sanctions exceeding #b1ejj4 7,b7 ,original information ,the term original information means information that-- 7i7 is derived from the independent knowledge or analysis of a whistleblower2 7ii7 is not known to the ,board from any other source1 unless the whistleblower is the original source of the information2 and 7iii7 is not exclusively derived from an allegation made in a disciplinary proceeding1 in a judicial or administrative hearing1 in a governmental report1 hearing1 audit1 or investigation1 or from the news media1 unless the whistleblower is a source of the information4 7,c7 ,monetary sanctions ,the term monetary sanctions means any civil money penalties imposed by the ,board under subsection 7c77#d7 as modified by the ,commission under section #ajg7;c77#c74 7,d7 ,whistleblower ,the term whistleblower means any individual who provides1 or #b or more individuals acting jointly who provide1 information relating to a violation of this ,act1 the rules of the ,board1 the provisions of the securities laws relating to the preparation and issuance of audit reports1 auditor independence1 and the obligations and liabilities of accountants with respect thereto1 including the rules of the ,board issued pursuant to this ,act1 or professional standards governing auditors and accountants4 7#b7 ,awards 7,a7 ,in general ,in any covered disciplinary proceeding1 the ,board shall pay an award or awards to #a or more whistleblowers who voluntarily provided original information to the ,board that resulted in the board imposing monetary sanctions1 in an aggregate amount determined in the discretion of the ,board but equal to-- 7i7 not less than #aj percent1 in total1 of what has been collected of the monetary sanctions imposed2 and 7ii7 not more than #ej percent1 in total1 of what has been collected of the monetary sanctions4 7,b7 ,criteria ,in determining the amount of an award made under subparagraph 7,a71 the ,commission shall take into consideration-- 7i7 the significance of the information provided by the whistleblower to the success of the disciplinary proceeding2 7ii7 the degree of assistance provided by the whistleblower and any legal representative of the whistleblower in a disciplinary proceeding2 and 7iii7 the programmatic interest of the ,board in deterring violations by making awards to whistleblowers who provide information that lead to successful enforcement4 7,c7 ,denial of award ,no award under subparagraph 7,a7 shall be made-- 7i7 to any whistleblower who is1 or was at the time the whistleblower acquired the original information submitted to the ,board1 a member1 officer1 or employee of-- 7,i7 an appropriate regulatory agency 7as such term is defined in section #cd of the ,securities ,exchange ,act of #aicd72 7,,ii7 the ,department of ,justice2 7,,iii7 a self-regulatory organization 7as such term is defined in section #cd of the ,securities ,exchange ,act of #aicd72 7,,iv7 the ,public ,company ,accounting ,oversight ,board2 or 7,v7 a law enforcement organization2 7ii7 to any whistleblower who is convicted of a criminal violation related to the ,board finding for which the whistleblower otherwise could receive an award under this section2 7iii7 to any whistleblower who fails to submit information to the ,board in such form as the ,board may1 by rule1 require2 7iv7 to any whistleblower who knowingly and willfully makes any false1 fictitious1 or fraudulent statement or representation2 and 7v7 to any whistleblower who uses any false writing or document knowing the writing or document contains any false1 fictitious1 or fraudulent statement or entry4 7,d7 ,payment of awards ,any amount paid under subparagraph 7,a7 shall be paid from any funds generated from the collection of monetary sanctions4 7#c7 ,representation 7,a7 ,permitted representation ,any whistleblower who makes a claim for an award under paragraph 7#b7 may be represented by counsel4 7,b7 ,required representation 7i7 ,in general ,any whistleblower who anonymously makes a claim for an award under paragraph 7#b7 shall be represented by counsel if the whistleblower anonymously submits the information upon which the claim is based4 7ii7 ,disclosure of identity ,prior to the payment of an award1 a whistleblower shall disclose the identity of the whistleblower and provide such other information as the ,board may require1 directly or through counsel1 for the whistleblower4 7#d7 ,no ,contract ,necessary ,no contract with the ,board is necessary for any whistleblower to receive an award under paragraph 7#b71 unless otherwise required by the ,board by rule4 7#e7 ,appeals ,any determination made under this subsection1 including whether1 to whom1 or in what amount to make awards1 shall be in the discretion of the ,board4 ,any such determination1 except the determination of the amount of an award if the award was made in accordance with this paragraph1 may be appealed to the ,commission not more than #cj days after the determination is issue by the ,board4 ,the ,commission shall review the determination made by the ,board in accordance with section #ajg7;c74 7#f7 ,protection of whistleblowers 7,a7 ,prohibition against retaliation ,no current or former employer may discharge1 demote1 suspend1 threaten1 blacklist1 harass1 directly or indirectly1 actively or passively1 or in any other manner discriminate against any whistleblower in the terms and conditions of employment1 including compensation1 because of any lawful act done by the whistleblower in-- 7i7 providing information to the ,board in accordance with this subsection2 7ii7 initiating1 testifying in1 or assisting in any investigation or administrative action of the ,board based upon or related to such information2 7iii7 making disclosures that are required or protected under the ,sarbanes-,oxley ,act of #bjjb 7#ae ,u4,s4,c4 #gbja et seq471 the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;a et seq471 including section #aj;,a7m7 of such ,act 7#ae ,u4,s4,c4 #gh;f7m771 section #aeac7;e7 of title #ah1 ,united ,states ,code1 and any other law1 rule1 or regulation subject to the jurisdiction of the ,commission2 and 7iv7 in providing information regarding any conduct that the whistleblower reasonably believes constitutes a violation of any law1 rule1 or regulation subject to the jurisdiction of the ,board to-- 7,i7 a person with supervisory authority over the whistleblower at the whistleblower's employer1 where such employer is an entity registered with or required to be registered with the ,commission1 a self-regulatory organization1 or a ,state securities commission or office performing like functions2 or 7,,ii7 such other person working for the employer described under subclause 7,i7 who has the authority to investigate1 discover1 or terminate misconduct4 7,b7 ,enforcement of prohibition against retaliation ,any whistleblower who alleges discharge or other discrimination or is otherwise aggrieved by an employer in violation of subparagraph 7,a7 may seek relief-- 7i7 by filing a complaint with the ,secretary of ,labor2 or 7ii7 if the ,secretary has not issued a final decision within #ahj days of the filing of the complaint and there is no showing that such delay is due to the bad faith of the claimant1 bringing an action at law or equity for de novo review in the appropriate district court of the ,united ,states1 which shall have jurisdiction over such an action without regard to the amount in controversy4 7,c7 ,procedure 7i7 ,in general ,an action under subparagraph 7,b77ii7 shall be governed under the rules and procedures set forth in section #dbaba7;b7 of title #di1 ,united ,states ,code4 7ii7 ,exception ,notification made under section #dbaba7;b77#a7 of title #di1 ,united ,states ,code1 shall be made to the person named in the complaint and to the employer4 7iii7 ,burdens of proof ,an action brought under subparagraph 7,b77ii7 shall be governed by the legal burdens of proof set forth in section #dbaba7;b7 of title #di1 ,united ,states ,code4 7iv7 ,statute of limitations ,an action under subparagraph 7,b7 shall be commenced not later than #ahj days after the date on which the violation occurs1 or after the date on which the whistleblower became aware of the violation4 7v7 ,jury trial ,a party to an action brought under subparagraph 7,b7 shall be entitled to trial by jury4 7,d7 ,remedies ,any whistleblower who prevails in any action brought under this paragraph shall be entitled to all relief necessary to make the whistleblower whole1 including-- 7i7 reinstatement with the same seniority status that the whistleblower would have had1 but for the discrimination2 7ii7 #b times the amount of back pay otherwise owed to the whistleblower1 with interest2 7iii7 consequential and compensatory damages2 7iv7 special damages1 including damages for emotional distress and reputational harm2 and 7v7 compensation for litigation costs1 expert witness fees1 and reasonable attorneys' fees4 7,e7 ,confidentiality 7i7 ,in general ,except as provided in clause 7ii71 the ,board and any officer or employee of the ,board may not disclose any information without the written consent of the whistleblower1 including information provided by the whistleblower to the ,board1 which could reasonably be expected to reveal the identity of the whistleblower unless and until the ,board is required to disclose such information to a defendant or respondent in connection with a public proceeding instituted by the ,commission or any entity described in clause 7iv74 7ii7 ,notice ,if the ,board shall1 before making information referred to in clause 7i7 available to a defendant or respondent in connection with a public proceeding instituted by the ,commission or any entity described in clause 7iv71 provide notice to the whistleblower that such information is being made available4 7iii7 ,rule of construction ,nothing in this section is intended to limit1 or shall be construed to limit1 the ability of the ,attorney ,general to present such evidence to a grand jury or to share such evidence with potential witnesses or defendants in the course of an ongoing criminal investigation4 7iv7 ,availability to government agencies 7,i7 ,in general ,without the loss of its status as confidential in the hands of the ,board1 all information referred to in clause 7i7 may1 in the discretion of the ,board1 when determined by the ,board to be necessary to accomplish the purposes of this ,act and to protect investors1 be made available to-- 7aa7 the ,attorney ,general of the ,united ,states2 7bb7 an appropriate regulatory authority2 7cc7 a self-regulatory organization2 7dd7 a ,state attorney general in connection with any criminal investigation2 7ee7 any appropriate ,state regulatory authority2 7ff7 the ,commission2 7gg7 a foreign securities authority2 and 7hh7 a foreign law enforcement authority4 7,,ii7 ,confidentiality ,each of the entities described in items 7aa7 through 7ff7 of subclause 7,i7 shall maintain such information as confidential in accordance with the requirements established under clause 7i7 and each of the entities described in subclauses 7gg7 and 7hh7 of subclause 7,i7 shall maintain such information in accordance with such assurances of confidentiality as the ,board determines appropriate4 7,,iii7 ,notice ,if the ,board makes information referred to in clause 7i7 available pursuant to subclause 7,i71 the ,board shall 7,f7 ,rights retained ,nothing in this subsection shall be deemed to diminish the rights1 privileges1 or remedies of any whistleblower under any ,federal or ,state law1 or under any collective bargaining agreement4 7,g7 ,unenforceability 7i7 ,waiver of rights and remedies ,the rights and remedies provided for in this section may not be waived by any condition of employment1 including a predispute arbitration agreement4 7ii7 ,required arbitration ,any provision of a predispute arbitration agreement that requires arbitration of a dispute arising under this paragraph shall be invalid and unenforceable4 2 and 7#b7 in section #aji7;c77#b7 7#ae ,u4,s4,c4 #gbai7;c77#b77 by striking all funds collected and inserting at least #ej percent of funds collected4