Bill Overview
Title: Investor Justice Act of 2022
Description: This bill establishes grants for investor advocacy clinics. To qualify, clinics associated with a law school or a tax-exempt organization must provide free legal representation to investors with securities arbitration and mediation claims pending before a registered national securities association.
Sponsors: Rep. Quigley, Mike [D-IL-5]
Target Audience
Population: Investors involved in securities arbitration and mediation claims
Estimated Size: 350000
- This bill targets investors who have securities arbitration and mediation claims.
- Such investors would need legal representation which the bill seeks to support by funding clinics.
- These individuals are typically involved in disputes related to their investments and may not be able to afford legal representation.
- The bill specifies that clinics providing this support must be associated with law schools or be tax-exempt organizations.
Reasoning
- The target population consists of individuals involved in securities arbitration and mediation claims who would benefit from free legal support.
- These individuals may have varying levels of financial means, but the common factor is the inability to afford necessary legal aid.
- The policy is aimed at law clinics associated with law schools or non-profit organizations, indicating a structured, educational approach to the provision of services.
- While not all investors will be impacted, those who do engage with these clinics could see improvements in their ability to manage legal disputes, potentially increasing their overall wellbeing.
- Inclusion of individuals not impacted by the policy provides a baseline for the general population not involved in these specific financial and legal issues.
Simulated Interviews
Marketing Manager (New York, NY)
Age: 45 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 10/20
Statement of Opinion:
- I was anxious about handling the arbitration without proper legal support.
- With this policy, I can reach out to a clinic for assistance without worrying about the cost.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 3 |
Software Engineer (San Francisco, CA)
Age: 32 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 1.0 years
Commonness: 15/20
Statement of Opinion:
- I think it's great that there are resources available to help with the mediation process.
- Having access to legal help will definitely ease some of the stress involved.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 6 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 4 |
Graduate Student (Austin, TX)
Age: 29 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 1.0 years
Commonness: 5/20
Statement of Opinion:
- My budget is tight as a student, so I really appreciate the opportunity to get legal help at no cost.
- This support will help me focus better on my studies while dealing with the arbitration.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 8 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 6 | 4 |
| Year 10 | 5 | 3 |
| Year 20 | 5 | 3 |
Teacher (Miami, FL)
Age: 55 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 8/20
Statement of Opinion:
- I'm not very familiar with legal proceedings, so this policy provides a necessary safety net.
- I hope to resolve my case quickly with proper legal representation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 4 |
| Year 20 | 6 | 3 |
Retired (Chicago, IL)
Age: 64 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 2.0 years
Commonness: 12/20
Statement of Opinion:
- It's been difficult handling legal issues on a fixed income.
- I'm relieved at the possibility of finding free legal support to settle this dispute.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 4 |
| Year 2 | 7 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 6 | 3 |
| Year 10 | 5 | 3 |
| Year 20 | 5 | 2 |
Data Analyst (Seattle, WA)
Age: 40 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 14/20
Statement of Opinion:
- I didn't expect to end up in a legal dispute over my investments.
- Having a dedicated resource I can turn to for help is reassuring.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 4 |
| Year 10 | 5 | 3 |
| Year 20 | 4 | 3 |
Entry-level Accountant (Boston, MA)
Age: 23 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 11/20
Statement of Opinion:
- I'm new to investing and didn't expect these issues to arise so early.
- Access to legal help prevents me from feeling overwhelmed by the process.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 4 |
| Year 20 | 5 | 4 |
Real Estate Agent (Los Angeles, CA)
Age: 39 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 6/20
Statement of Opinion:
- I manage most of my finances, but handling a dispute is challenging without specialist advice.
- I'm glad the policy could potentially help clarify and resolve these issues.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 6 | 3 |
Small Business Owner (Denver, CO)
Age: 61 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 9/20
Statement of Opinion:
- Managing a business is hard enough without financial disputes.
- Having access to free legal clinics could significantly reduce the stress of resolving this.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 6 | 3 |
| Year 10 | 6 | 3 |
| Year 20 | 5 | 2 |
Freelance Writer (Portland, OR)
Age: 48 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 7/20
Statement of Opinion:
- As a freelancer, I can't afford large legal expenses.
- It's a relief to know that I can find legal assistance without worrying about the bills.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 6 |
| Year 2 | 8 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 3 |
Cost Estimates
Year 1: $50000000 (Low: $40000000, High: $60000000)
Year 2: $52000000 (Low: $42000000, High: $62000000)
Year 3: $54000000 (Low: $43000000, High: $65000000)
Year 5: $58000000 (Low: $45000000, High: $68000000)
Year 10: $70000000 (Low: $55000000, High: $85000000)
Year 100: $120000000 (Low: $90000000, High: $150000000)
Key Considerations
- The policy primarily impacts individuals unable to afford legal representation in securities disputes, who are served by the funded clinics.
- The indirect economic effects may take time to materialize as improved investor confidence and market participation evolve.
- Operational success depends significantly on the clinics' efficacy in providing meaningful legal support.