,i #aaf? ,,congress #a/ ,session ,h4 ,r4 #cfbe ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,july #e1 #bjai,ms4 ,g>cia ( ,texas introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,f9ancial ,s]vices ,a ,,bill ,to e/abli% a :i/lebl[] program at ! ,public ,company ,acc\nt+ ,ov]sight ,bo>d1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,,pcaob ,:i/lebl[] ,protection ,act ( #bjai4 #b4 ,:i/lebl[] inc5tives & protection ,! ,s>banes-,oxley ,act ( #bjjb is am5d$-- 7#a7 9 section #aje 7#ae ,u4,s4,c4 #gbae7 by add+ at ! end ! foll[+3 7f7 ,:i/lebl[] inc5tives & protection 7#a7 ,def9itions ,9 ?is subsection ! foll[+ def9itions %all apply3 7,a7 ,cov]$ proce$+ ,! t]m cov]$ proce$+ means any discipl9>y proce$+ by ! ,bo>d initiat$ aft] ! date ( ! enactm5t ( ?is subsection t results 9 monet>y sanctions exce$+ #b1ejj4 7,b7 ,orig9al in=mation ,! t]m orig9al in=mation means in=mation t-- 7i7 is d]iv$ f ! indep5d5t k or analysis ( a :i/lebl[]2 7ii7 is n kn[n to ! ,bo>d f any o!r s\rce1 unless ! :i/lebl[] is ! orig9al s\rce ( ! in=mation2 & 7iii7 is n exclusively d]iv$ f an allegation made 9 a discipl9>y proce$+1 9 a judicial or adm9i/rative he>+1 9 a gov]nm5tal report1 he>+1 audit1 or inve/igation1 or f ! news m$ia1 unless ! :i/lebl[] is a s\rce ( ! in=mation4 7,c7 ,monet>y sanctions ,! t]m monet>y sanctions means any civil money p5alties impos$ by ! ,bo>d "u subsection 7c77#d7 z modifi$ by ! ,commission "u section #ajg7;c77#c74 7,d7 ,:i/lebl[] ,! t]m :i/lebl[] means any individual :o provides1 or #b or m individuals act+ jo9tly :o provide1 in=mation relat+ to a violation ( ?is ,act1 ! rules ( ! ,bo>d1 ! provisions ( ! securities laws relat+ to ! prep>ation & issuance ( audit reports1 auditor indep5d5ce1 & ! obligations & liabilities ( acc\ntants ) respect !reto1 includ+ ! rules ( ! ,bo>d issu$ pursuant to ?is ,act1 or pr(essional /&>ds gov]n+ auditors & acc\ntants4 7#b7 ,aw>ds 7,a7 ,9 g5]al ,9 any cov]$ discipl9>y proce$+1 ! ,bo>d %all pay an aw>d or aw>ds to #a or m :i/lebl[]s :o volunt>ily provid$ orig9al in=mation to ! ,bo>d t result$ 9 ! bo>d impos+ monet>y sanctions1 9 an aggregate am\nt det]m9$ 9 ! discretion ( ! ,bo>d b equal to-- 7i7 n less ?an #aj p]c5t1 9 total1 ( :at has be5 collect$ ( ! monet>y sanctions impos$2 & 7ii7 n m ?an #ej p]c5t1 9 total1 ( :at has be5 collect$ ( ! monet>y sanctions4 7,b7 ,crit]ia ,9 det]m9+ ! am\nt ( an aw>d made "u subp>agraph 7,a71 ! ,commission %all take into consid]ation-- 7i7 ! significance ( ! in=mation provid$ by ! :i/lebl[] to ! success ( ! discipl9>y proce$+2 7ii7 ! degree ( assi/ance provid$ by ! :i/lebl[] & any legal repres5tative ( ! :i/lebl[] 9 a discipl9>y proce$+2 & 7iii7 ! programmatic int]e/ ( ! ,bo>d 9 det]r+ violations by mak+ aw>ds to :i/lebl[]s :o provide in=mation t lead to successful en=cem5t4 7,c7 ,d5ial ( aw>d ,no aw>d "u subp>agraph 7,a7 %all be made-- 7i7 to any :i/lebl[] :o is1 or 0 at ! "t ! :i/lebl[] acquir$ ! orig9al in=mation submitt$ to ! ,bo>d1 a memb]1 (fic]1 or employee (-- 7,i7 an appropriate regulatory ag5cy 7z su* t]m is def9$ 9 section #cd ( ! ,securities ,ex*ange ,act ( #aicd72 7,,ii7 ! ,dep>tm5t ( ,ju/ice2 7,,iii7 a self-regulatory organization 7z su* t]m is def9$ 9 section #cd ( ! ,securities ,ex*ange ,act ( #aicd72 7,,iv7 ! ,public ,company ,acc\nt+ ,ov]sight ,bo>d2 or 7,v7 a law en=cem5t organization2 7ii7 to any :i/lebl[] :o is convict$ ( a crim9al violation relat$ to ! ,bo>d f9d+ = :i* ! :i/lebl[] o!rwise c\ld receive an aw>d "u ?is section2 7iii7 to any :i/lebl[] :o fails to submit in=mation to ! ,bo>d 9 su* =m z ! ,bo>d may1 by rule1 require2 7iv7 to any :i/lebl[] :o kn[+ly & willfully makes any false1 fictiti\s1 or fraudul5t /atem5t or repres5tation2 & 7v7 to any :i/lebl[] :o uses any false writ+ or docum5t kn[+ ! writ+ or docum5t conta9s any false1 fictiti\s1 or fraudul5t /atem5t or entry4 7,d7 ,paym5t ( aw>ds ,any am\nt paid "u subp>agraph 7,a7 %all be paid f any funds g5]at$ f ! collection ( monet>y sanctions4 7#c7 ,repres5tation 7,a7 ,p]mitt$ repres5tation ,any :i/lebl[] :o makes a claim = an aw>d "u p>agraph 7#b7 may be repres5t$ by c\nsel4 7,b7 ,requir$ repres5tation 7i7 ,9 g5]al ,any :i/lebl[] :o anonym\sly makes a claim = an aw>d "u p>agraph 7#b7 %all be repres5t$ by c\nsel if ! :i/lebl[] anonym\sly submits ! in=mation ^u :i* ! claim is bas$4 7ii7 ,disclosure ( id5tity ,prior to ! paym5t ( an aw>d1 a :i/lebl[] %all disclose ! id5tity ( ! :i/lebl[] & provide su* o!r in=mation z ! ,bo>d may require1 directly or ?r\gh c\nsel1 = ! :i/lebl[]4 7#d7 ,no ,contract ,necess>y ,no contract ) ! ,bo>d is necess>y = any :i/lebl[] to receive an aw>d "u p>agraph 7#b71 unless o!rwise requir$ by ! ,bo>d by rule4 7#e7 ,appeals ,any det]m9ation made "u ?is subsection1 includ+ :e!r1 to :om1 or 9 :at am\nt to make aw>ds1 %all be 9 ! discretion ( ! ,bo>d4 ,any su* det]m9ation1 except ! det]m9ation ( ! am\nt ( an aw>d if ! aw>d 0 made 9 accordance ) ?is p>agraph1 may be appeal$ to ! ,commission n m ?an #cj days aft] ! det]m9ation is issue by ! ,bo>d4 ,! ,commission %all review ! det]m9ation made by ! ,bo>d 9 accordance ) section #ajg7;c74 7#f7 ,protection ( :i/lebl[]s 7,a7 ,prohibition aga9/ retaliation ,no curr5t or =m] employ] may dis*>ge1 demote1 susp5d1 ?reat51 blackli/1 h>ass1 directly or indirectly1 actively or passively1 or 9 any o!r mann] discrim9ate aga9/ any :i/lebl[] 9 ! t]ms & conditions ( employm5t1 includ+ comp5sation1 because ( any lawful act done by ! :i/lebl[] 9-- 7i7 provid+ in=mation to ! ,bo>d 9 accordance ) ?is subsection2 7ii7 initiat+1 te/ify+ 91 or assi/+ 9 any inve/igation or adm9i/rative action ( ! ,bo>d bas$ ^u or relat$ to su* in=mation2 7iii7 mak+ disclosures t are requir$ or protect$ "u ! ,s>banes-,oxley ,act ( #bjjb 7#ae ,u4,s4,c4 #gbja et seq471 ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq471 includ+ section #aj;,a7m7 ( su* ,act 7#ae ,u4,s4,c4 #gh;f7m771 section #aeac7;e7 ( title #ah1 ,unit$ ,/ates ,code1 & any o!r law1 rule1 or regulation subject to ! jurisdiction ( ! ,commission2 & 7iv7 9 provid+ in=mation reg>d+ any conduct t ! :i/lebl[] reasonably believes con/itutes a violation ( any law1 rule1 or regulation subject to ! jurisdiction ( ! ,bo>d to-- 7,i7 a p]son ) sup]visory au?ority ov] ! :i/lebl[] at ! :i/lebl[]'s employ]1 :]e su* employ] is an entity regi/]$ ) or requir$ to be regi/]$ ) ! ,commission1 a self-regulatory organization1 or a ,/ate securities commission or (fice p]=m+ l functions2 or 7,,ii7 su* o!r p]son work+ = ! employ] describ$ "u subclause 7,i7 :o has ! au?ority to inve/igate1 discov]1 or t]m9ate misconduct4 7,b7 ,en=cem5t ( prohibition aga9/ retaliation ,any :i/lebl[] :o alleges dis*>ge or o!r discrim9ation or is o!rwise aggriev$ by an employ] 9 violation ( subp>agraph 7,a7 may seek relief-- 7i7 by fil+ a compla9t ) ! ,secret>y ( ,labor2 or 7ii7 if ! ,secret>y has n issu$ a f9al decision )9 #ahj days ( ! fil+ ( ! compla9t & !re is no %[+ t su* delay is due to ! bad fai? ( ! claimant1 br++ an action at law or equity = de novo review 9 ! appropriate di/rict c\rt ( ! ,unit$ ,/ates1 :i* %all h jurisdiction ov] su* an action )\t reg>d to ! am\nt 9 controv]sy4 7,c7 ,proc$ure 7i7 ,9 g5]al ,an action "u subp>agraph 7,b77ii7 %all be gov]n$ "u ! rules & proc$ures set =? 9 section #dbaba7;b7 ( title #di1 ,unit$ ,/ates ,code4 7ii7 ,exception ,notification made "u section #dbaba7;b77#a7 ( title #di1 ,unit$ ,/ates ,code1 %all be made to ! p]son nam$ 9 ! compla9t & to ! employ]4 7iii7 ,burd5s ( pro( ,an action br\ght "u subp>agraph 7,b77ii7 %all be gov]n$ by ! legal burd5s ( pro( set =? 9 section #dbaba7;b7 ( title #di1 ,unit$ ,/ates ,code4 7iv7 ,/atute ( limitations ,an action "u subp>agraph 7,b7 %all be comm5c$ n lat] ?an #ahj days aft] ! date on :i* ! violation occurs1 or aft] ! date on :i* ! :i/lebl[] became aw>e ( ! violation4 7v7 ,jury trial ,a p>ty to an action br\ght "u subp>agraph 7,b7 %all be entitl$ to trial by jury4 7,d7 ,rem$ies ,any :i/lebl[] :o prevails 9 any action br\ght "u ?is p>agraph %all be entitl$ to all relief necess>y to make ! :i/lebl[] :ole1 includ+-- 7i7 re9/atem5t ) ! same s5iority /atus t ! :i/lebl[] w\ld h _h1 b = ! discrim9ation2 7ii7 #b times ! am\nt ( back pay o!rwise ow$ to ! :i/lebl[]1 ) int]e/2 7iii7 consequ5tial & comp5satory damages2 7iv7 special damages1 includ+ damages = emotional di/ress & reputational h>m2 & 7v7 comp5sation = litigation co/s1 exp]t witness fees1 & reasonable attorneys' fees4 7,e7 ,confid5tiality 7i7 ,9 g5]al ,except z provid$ 9 clause 7ii71 ! ,bo>d & any (fic] or employee ( ! ,bo>d may n disclose any in=mation )\t ! writt5 cons5t ( ! :i/lebl[]1 includ+ in=mation provid$ by ! :i/lebl[] to ! ,bo>d1 :i* c\ld reasonably be expect$ to reveal ! id5tity ( ! :i/lebl[] unless & until ! ,bo>d is requir$ to disclose su* in=mation to a def5dant or respond5t 9 connection ) a public proce$+ in/itut$ by ! ,commission or any entity describ$ 9 clause 7iv74 7ii7 ,notice ,if ! ,bo>d %all1 be=e mak+ in=mation ref]r$ to 9 clause 7i7 available to a def5dant or respond5t 9 connection ) a public proce$+ in/itut$ by ! ,commission or any entity describ$ 9 clause 7iv71 provide notice to ! :i/lebl[] t su* in=mation is be+ made available4 7iii7 ,rule ( con/ruction ,no?+ 9 ?is section is int5d$ to limit1 or %all be con/ru$ to limit1 ! ability ( ! ,attorney ,g5]al to pres5t su* evid5ce to a gr& jury or to %>e su* evid5ce ) pot5tial witnesses or def5dants 9 ! c\rse ( an ongo+ crim9al inve/igation4 7iv7 ,availability to gov]nm5t ag5cies 7,i7 ,9 g5]al ,)\t ! loss ( its /atus z confid5tial 9 ! h&s ( ! ,bo>d1 all in=mation ref]r$ to 9 clause 7i7 may1 9 ! discretion ( ! ,bo>d1 :5 det]m9$ by ! ,bo>d to be necess>y to accompli% ! purposes ( ?is ,act & to protect inve/ors1 be made available to-- 7aa7 ! ,attorney ,g5]al ( ! ,unit$ ,/ates2 7bb7 an appropriate regulatory au?ority2 7cc7 a self-regulatory organization2 7dd7 a ,/ate attorney g5]al 9 connection ) any crim9al inve/igation2 7ee7 any appropriate ,/ate regulatory au?ority2 7ff7 ! ,commission2 7gg7 a =eign securities au?ority2 & 7hh7 a =eign law en=cem5t au?ority4 7,,ii7 ,confid5tiality ,ea* ( ! entities describ$ 9 items 7aa7 ?r\gh 7ff7 ( subclause 7,i7 %all ma9ta9 su* in=mation z confid5tial 9 accordance ) ! requirem5ts e/abli%$ "u clause 7i7 & ea* ( ! entities describ$ 9 subclauses 7gg7 & 7hh7 ( subclause 7,i7 %all ma9ta9 su* in=mation 9 accordance ) su* assurances ( confid5tiality z ! ,bo>d det]m9es appropriate4 7,,iii7 ,notice ,if ! ,bo>d makes in=mation ref]r$ to 9 clause 7i7 available pursuant to subclause 7,i71 ! ,bo>d %all 7,f7 ,rights reta9$ ,no?+ 9 ?is subsection %all be deem$ to dim9i% ! rights1 privileges1 or rem$ies ( any :i/lebl[] "u any ,f$]al or ,/ate law1 or "u any collective b>ga9+ agreem5t4 7,g7 ,un5=ceability 7i7 ,waiv] ( rights & rem$ies ,! rights & rem$ies provid$ = 9 ?is section may n be waiv$ by any condition ( employm5t1 includ+ a pr$ispute arbitration agreem5t4 7ii7 ,requir$ arbitration ,any provision ( a pr$ispute arbitration agreem5t t requires arbitration ( a dispute aris+ "u ?is p>agraph %all be invalid & un5=ceable4 2 & 7#b7 9 section #aji7;c77#b7 7#ae ,u4,s4,c4 #gbai7;c77#b77 by /rik+ all funds collect$ & ins]t+ at lea/ #ej p]c5t ( funds collect$4