| 1 | 1 | | I |
|---|
| 2 | 2 | | 118THCONGRESS |
|---|
| 3 | 3 | | 1 |
|---|
| 4 | 4 | | STSESSION H. R. 2579 |
|---|
| 5 | 5 | | To require the Securities and Exchange Commission to revise the definition |
|---|
| 6 | 6 | | of a qualifying investment, for purposes of the exemption from registra- |
|---|
| 7 | 7 | | tion for venture capital fund advisers under the Investment Advisers |
|---|
| 8 | 8 | | Act of 1940, to include an equity security issued by a qualifying portfolio |
|---|
| 9 | 9 | | company and to include an investment in another venture capital fund, |
|---|
| 10 | 10 | | and for other purposes. |
|---|
| 11 | 11 | | IN THE HOUSE OF REPRESENTATIVES |
|---|
| 12 | 12 | | APRIL13, 2023 |
|---|
| 13 | 13 | | Mr. B |
|---|
| 14 | 14 | | ARRintroduced the following bill; which was referred to the Committee |
|---|
| 15 | 15 | | on Financial Services |
|---|
| 16 | 16 | | A BILL |
|---|
| 17 | 17 | | To require the Securities and Exchange Commission to revise |
|---|
| 18 | 18 | | the definition of a qualifying investment, for purposes |
|---|
| 19 | 19 | | of the exemption from registration for venture capital |
|---|
| 20 | 20 | | fund advisers under the Investment Advisers Act of |
|---|
| 21 | 21 | | 1940, to include an equity security issued by a qualifying |
|---|
| 22 | 22 | | portfolio company and to include an investment in an- |
|---|
| 23 | 23 | | other venture capital fund, and for other purposes. |
|---|
| 24 | 24 | | Be it enacted by the Senate and House of Representa-1 |
|---|
| 25 | 25 | | tives of the United States of America in Congress assembled, 2 |
|---|
| 26 | 26 | | VerDate Sep 11 2014 23:40 Apr 14, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2579.IH H2579 |
|---|
| 27 | 27 | | kjohnson on DSK79L0C42PROD with BILLS 2 |
|---|
| 28 | 28 | | •HR 2579 IH |
|---|
| 29 | 29 | | SECTION 1. SHORT TITLE. 1 |
|---|
| 30 | 30 | | This Act may be cited as the ‘‘Developing and Em-2 |
|---|
| 31 | 31 | | powering our Aspiring Leaders Act of 2023’’. 3 |
|---|
| 32 | 32 | | SEC. 2. DEFINITIONS. 4 |
|---|
| 33 | 33 | | Not later than the end of the 180-day period begin-5 |
|---|
| 34 | 34 | | ning on the date of the enactment of this Act, the Securi-6 |
|---|
| 35 | 35 | | ties and Exchange Commission shall— 7 |
|---|
| 36 | 36 | | (1) revise the definition of a qualifying invest-8 |
|---|
| 37 | 37 | | ment under paragraph (c) of section 275.203(l)–1 of 9 |
|---|
| 38 | 38 | | title 17, Code of Federal Regulations— 10 |
|---|
| 39 | 39 | | (A) to include an equity security issued by 11 |
|---|
| 40 | 40 | | a qualifying portfolio company, whether ac-12 |
|---|
| 41 | 41 | | quired directly from the company or in a sec-13 |
|---|
| 42 | 42 | | ondary acquisition; and 14 |
|---|
| 43 | 43 | | (B) to specify that an investment in an-15 |
|---|
| 44 | 44 | | other venture capital fund is a qualifying in-16 |
|---|
| 45 | 45 | | vestment under such definition; and 17 |
|---|
| 46 | 46 | | (2) revise paragraph (a) of such section to re-18 |
|---|
| 47 | 47 | | quire, as a condition of a private fund qualifying as 19 |
|---|
| 48 | 48 | | a venture capital fund under such paragraph, that 20 |
|---|
| 49 | 49 | | the qualifying investments of the private fund are ei-21 |
|---|
| 50 | 50 | | ther— 22 |
|---|
| 51 | 51 | | (A) predominantly qualifying investments 23 |
|---|
| 52 | 52 | | that were acquired directly from a qualifying 24 |
|---|
| 53 | 53 | | portfolio company; or 25 |
|---|
| 54 | 54 | | VerDate Sep 11 2014 23:40 Apr 14, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2579.IH H2579 |
|---|
| 55 | 55 | | kjohnson on DSK79L0C42PROD with BILLS 3 |
|---|
| 56 | 56 | | •HR 2579 IH |
|---|
| 57 | 57 | | (B) predominantly qualifying investments 1 |
|---|
| 58 | 58 | | in another venture capital fund or other venture 2 |
|---|
| 59 | 59 | | capital funds. 3 |
|---|
| 60 | 60 | | Æ |
|---|
| 61 | 61 | | VerDate Sep 11 2014 23:40 Apr 14, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H2579.IH H2579 |
|---|
| 62 | 62 | | kjohnson on DSK79L0C42PROD with BILLS |
|---|