Congressman Scott Garrett

Representing the 5th District of New Jersey

Financial Services Committee Passes Two Garrett-Sponsored Bills

Mar 2, 2016
Press Release
Bills would enforce Constitutional rights and give Main Street businesses new tools to succeed

WASHINGTON, D.C. – Today the Financial Services Committee passed two bills introduced by Congressman Scott Garrett (NJ-05), Chairman of the Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises. The bills were H.R. 4638, The Main Street Growth Act, and H.R. 3798, The Due Process Restoration Act.

“One of the biggest concerns I hear from my constituents that the executive branch has run wild and Congress needs to regain control to protect the Constitutional rights of all Americans. For that reason, I’m pleased that today the Financial Services Committee passed my bill to restore the due process rights of all Americans by allowing them to have their case before the SEC heard by a federal court. I’m also happy to announce that my bill to allow Main Street businesses to raise capital by accessing public markets passed the committee. Because if we want to revive America’s economy, we need to give Main Street businesses the tools they needs to innovate and succeed.”

H.R. 3798, The Due Process Restoration Act Would:

  • Provide a mandatory right of removal allowing the defendant to request that the case be moved to a district court
  • Grant a right of removal to defendants who are subject to a cease and desist order and monetary penalty that the commission is seeking
  • Raise the burden of proof for cases that remain in the ALJ to a higher “clear and convincing evidence” standard

The Main Street Growth Act Would:

  • Authorize the creation of “venture exchanges” which would be registered as a national securities exchange with the SEC and be specifically tailored to list the shares of emerging growth companies and companies that issue shares under the newly finalized “Reg A+”
  • Exempt venture exchanges from Regulation NMS, Regulation ATS, and would be exempt from extending unlisted trading privileges to companies that list on them;
  • Subject venture exchanges to all of the existing anti-fraud and investor protection statutes administered by the SEC
  • Permit all investors— not just Silicon Valley billionaires or the well-connected—to invest in companies that list on venture exchanges