US
Us Congress House Bill HB2799

Us Congress 2023-2024 Regular Session

Us Congress House Bill HB2799 Compare Versions

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1+IB
2+Union Calendar No. 112
13 118THCONGRESS
2-2
3-DSESSION H. R. 2799
4-AN ACT
4+1
5+STSESSION H. R. 2799
6+[Report No. 118–143, Part I]
7+To make reforms to the capital markets of the United States, and for
8+other purposes.
9+IN THE HOUSE OF REPRESENTATIVES
10+APRIL24, 2023
11+Mr. M
12+CHENRYintroduced the following bill; which was referred to the Com-
13+mittee on Financial Services, and in addition to the Committee on Edu-
14+cation and the Workforce, for a period to be subsequently determined by
15+the Speaker, in each case for consideration of such provisions as fall with-
16+in the jurisdiction of the committee concerned
17+J
18+ULY17, 2023
19+Reported from the Committee on Financial Services with an amendment
20+[Strike out all after the enacting clause and insert the part printed in italic]
21+JULY17, 2023
22+Committee on Education and the Workforce discharged; committed to the
23+Committee of the Whole House on the State of the Union and ordered
24+to be printed
25+[For text of introduced bill, see copy of bill as introduced on April 24, 2023]
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29+A BILL
530 To make reforms to the capital markets of the United States,
631 and for other purposes.
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735 Be it enacted by the Senate and House of Representa-1
8-tives of the United States of America in Congress assembled, 2 2
9-•HR 2799 EH
10-SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 1
36+tives of the United States of America in Congress assembled, 2
37+SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 3
1138 (a) S
12-HORTTITLE.—This Act may be cited as the 2
13-‘‘Expanding Access to Capital Act of 2023’’. 3
39+HORTTITLE.—This Act may be cited as the ‘‘Ex-4
40+panding Access to Capital Act of 2023’’. 5
1441 (b) T
15-ABLE OFCONTENTS.—The table of contents for 4
16-this Act is as follows: 5
42+ABLE OFCONTENTS.—The table of contents for 6
43+this Act is as follows: 7
1744 Sec. 1. Short title; table of contents.
1845 DIVISION A—STRENGTHENING PUBLIC MARKETS
1946 TITLE I—REMOVE ABERRATIONS IN THE MARKET CAP TEST FOR
2047 TARGET COMPANY FINANCIAL STATEMENTS
21-Sec. 1101. Avoiding aberrational results in requirements for acquisition and
22-disposition financial statements.
48+Sec. 1101. Avoiding aberrational results in requirements for acquisition and dis-
49+position financial statements.
2350 TITLE II—HELPING STARTUPS CONTINUE TO GROW
2451 Sec. 1201. Short title.
2552 Sec. 1202. Emerging growth company criteria.
26-TITLE III—SEC AND PCAOB AUDITOR REQUIREMENTS FOR
27-NEWLY PUBLIC COMPANIES
53+TITLE III—SEC AND PCAOB AUDITOR REQUIREMENTS FOR NEWLY
54+PUBLIC COMPANIES
2855 Sec. 1301. Auditor independence for certain past audits occurring before an
2956 issuer is a public company.
30-TITLE IV—EXPAND THE PROTECTION FOR RESEARCH REPORTS
31-TO COVER ALL SECURITIES OF ALL ISSUERS
57+TITLE IV—EXPAND THE PROTECTION FOR RESEARCH REPORTS TO
58+COVER ALL SECURITIES OF ALL ISSUERS
3259 Sec. 1401. Provision of research.
3360 TITLE V—EXCLUDE QIBS AND IAAS FROM THE RECORD HOLDER
3461 COUNT FOR MANDATORY REGISTRATION
3562 Sec. 1501. Exclusions from mandatory registration threshold.
3663 TITLE VI—EXPAND WKSI ELIGIBILITY
3764 Sec. 1601. Definition of well-known seasoned issuer.
38-DIVISION B—HELPING SMALL BUSINESSES AND
39-ENTREPRENEURS
65+TITLE VII—SMALLER REPORTING COMPANY, ACCELERATED FILER,
66+AND LARGE ACCELERATED FILER THRESHOLDS
67+Sec. 1701. Smaller reporting company, accelerated filer, and large accelerated
68+filer thresholds.
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72+DIVISION B—HELPING SMALL BUSINESSES AND ENTREPRENEURS
4073 TITLE I—UNLOCKING CAPITAL FOR SMALL BUSINESSES
4174 Sec. 2101. Short title.
4275 Sec. 2102. Safe harbors for private placement brokers and finders.
4376 Sec. 2103. Limitations on State law.
4477 TITLE II—SMALL BUSINESS INVESTOR CAPITAL ACCESS
4578 Sec. 2201. Short title.
46-Sec. 2202. Inflation adjustment for the exemption threshold for certain invest-
47-ment advisers of private funds. 3
48-•HR 2799 EH
79+Sec. 2202. Inflation adjustment for the exemption threshold for certain investment
80+advisers of private funds.
4981 TITLE III—IMPROVING CAPITAL ALLOCATION FOR NEWCOMERS
5082 Sec. 2301. Short title.
5183 Sec. 2302. Qualifying venture capital funds.
5284 TITLE IV—SMALL ENTREPRENEURS’ EMPOWERMENT AND
5385 DEVELOPMENT
5486 Sec. 2401. Short title.
5587 Sec. 2402. Micro-offering exemption.
5688 TITLE V—REGULATION A+ IMPROVEMENT
5789 Sec. 2501. Short title.
5890 Sec. 2502. JOBS Act-related exemption.
5991 TITLE VI—DEVELOPING AND EMPOWERING OUR ASPIRING
6092 LEADERS
6193 Sec. 2601. Short title.
6294 Sec. 2602. Definitions.
6395 Sec. 2603. Reports.
6496 TITLE VII—IMPROVING CROWDFUNDING OPPORTUNITIES
6597 Sec. 2701. Short title.
6698 Sec. 2702. Crowdfunding revisions.
6799 TITLE VIII—RESTORING THE SECONDARY TRADING MARKET
68100 Sec. 2801. Short title.
69101 Sec. 2802. Exemption from State regulation.
70102 DIVISION C—INCREASING ACCESS TO PRIVATE MARKETS
71103 TITLE I—GIG WORKER EQUITY COMPENSATION
72104 Sec. 3101. Short title.
73105 Sec. 3102. Extension of Rule 701.
74-Sec. 3103. GAO study.
106+Sec. 3103. Preemption of certain provisions of State law.
107+Sec. 3104. GAO study.
75108 TITLE II—INVESTMENT OPPORTUNITY EXPANSION
76109 Sec. 3201. Short title.
77110 Sec. 3202. Investment thresholds to qualify as an accredited investor.
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78114 TITLE III—RISK DISCLOSURE AND INVESTOR ATTESTATION
79115 Sec. 3301. Short title.
80116 Sec. 3302. Investor attestation.
81117 TITLE IV—ACCREDITED INVESTORS INCLUDE INDIVIDUALS
82118 RECEIVING ADVICE FROM CERTAIN PROFESSIONALS
83119 Sec. 3401. Accredited investors include individuals receiving advice from certain
84120 professionals.
85-DIVISION D—HELPING ANGELS LEAD OUR STARTUPS
86-Sec. 4001. Clarification of general solicitation. 4
87-•HR 2799 EH
88-DIVISION E—IMPROVING DISCLOSURE FOR INVESTORS
89-Sec. 5001. Short title.
90-Sec. 5002. Electronic delivery.
91-DIVISION F—ENHANCEMENT OF 403(b) PLANS
92-Sec. 6101. Short title.
93-Sec. 6102. Enhancement of 403(b) plans.
94-DIVISION G—INCREASING INVESTOR OPPORTUNITIES
95-Sec. 7001. Closed-end company authority to invest in private funds.
96121 DIVISION A—STRENGTHENING 1
97122 PUBLIC MARKETS 2
98123 TITLE I—REMOVE ABERRATIONS 3
99124 IN THE MARKET CAP TEST 4
100125 FOR TARGET COMPANY FI-5
101126 NANCIAL STATEMENTS 6
102-SEC. 1101. AVOIDING ABERRATIONAL RESULTS IN RE-7
103-QUIREMENTS FOR ACQUISITION AND DIS-8
104-POSITION FINANCIAL STATEMENTS. 9
127+SEC. 1101. AVOIDING ABERRATIONAL RESULTS IN REQUIRE-7
128+MENTS FOR ACQUISITION AND DISPOSITION 8
129+FINANCIAL STATEMENTS. 9
105130 The Securities and Exchange Commission shall revise 10
106131 section 210.1–02(w)(1)(i)(A) of title 17, Code of Federal 11
107-Regulations, to permit a registrant, in determining the 12
108-significance of an acquisition or disposition described in 13
109-such section 210.1–02(w)(1)(i)(A), to calculate the reg-14
110-istrant’s aggregate worldwide market value based on the 15
111-applicable trading value, conversion value, or exchange 16
112-value of all of the registrant’s outstanding classes of stock 17
113-(including preferred stock and non-traded common shares 18
114-that are convertible into or exchangeable for traded com-19 5
115-•HR 2799 EH
116-mon shares) and not just the voting and non-voting com-1
117-mon equity of the registrant. 2
118-TITLE II—HELPING STARTUPS 3
119-CONTINUE TO GROW 4
120-SEC. 1201. SHORT TITLE. 5
121-This title may be cited as the ‘‘Helping Startups Con-6
122-tinue To Grow Act’’. 7
123-SEC. 1202. EMERGING GROWTH COMPANY CRITERIA. 8
132+Regulations, to permit a registrant, in determining the sig-12
133+nificance of an acquisition or disposition described in such 13
134+section 210.1–02(w)(1)(i)(A), to calculate the registrant’s 14
135+aggregate worldwide market value based on the applicable 15
136+trading value, conversion value, or exchange value of all 16
137+of the registrant’s outstanding classes of stock (including 17
138+preferred stock and non-traded common shares that are con-18
139+vertible into or exchangeable for traded common shares) and 19
140+not just the voting and non-voting common equity of the 20
141+registrant. 21
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145+TITLE II—HELPING STARTUPS 1
146+CONTINUE TO GROW 2
147+SEC. 1201. SHORT TITLE. 3
148+This title may be cited as the ‘‘Helping Startups Con-4
149+tinue To Grow Act’’. 5
150+SEC. 1202. EMERGING GROWTH COMPANY CRITERIA. 6
124151 (a) S
125-ECURITIESACT OF1933.—Section 2(a)(19) of 9
126-the Securities Act of 1933 (15 U.S.C. 77b(a)(19)) is 10
127-amended— 11
128-(1) by striking ‘‘$1,000,000,000’’ each place 12
129-such term appears and inserting ‘‘$1,500,000,000’’; 13
130-(2) in subparagraph (B)— 14
131-(A) by striking ‘‘fifth’’ and inserting ‘‘7- 15
132-year’’; and 16
133-(B) by adding ‘‘or’’ at the end; 17
134-(3) in subparagraph (C), by striking ‘‘; or’’ and 18
135-inserting a period; and 19
136-(4) by striking subparagraph (D). 20
152+ECURITIESACT OF1933.—Section 2(a)(19) of the 7
153+Securities Act of 1933 (15 U.S.C. 77b(a)(19)) is amended— 8
154+(1) by striking ‘‘$1,000,000,000’’ each place such 9
155+term appears and inserting ‘‘$1,500,000,000’’; 10
156+(2) in subparagraph (B)— 11
157+(A) by striking ‘‘fifth’’ and inserting ‘‘7- 12
158+year’’; and 13
159+(B) by adding ‘‘or’’ at the end; 14
160+(3) in subparagraph (C), by striking ‘‘; or’’ and 15
161+inserting a period; and 16
162+(4) by striking subparagraph (D). 17
137163 (b) S
138-ECURITIESEXCHANGEACT OF1934.—Section 21
139-3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 22
140-78c(a)) is amended, in the first paragraph (80) (related 23
141-to emerging growth companies)— 24 6
142-•HR 2799 EH
143-(1) by striking ‘‘$1,000,000,000’’ each place 1
144-such term appears and inserting ‘‘$1,500,000,000’’; 2
145-(2) in subparagraph (B)— 3
146-(A) by striking ‘‘fifth’’ and inserting ‘‘7- 4
147-year’’; and 5
148-(B) by adding ‘‘or’’ at the end; 6
149-(3) in subparagraph (C), by striking ‘‘; or’’ and 7
150-inserting a period; and 8
151-(4) by striking subparagraph (D). 9
152-TITLE III—SEC AND PCAOB 10
153-AUDITOR REQUIREMENTS 11
154-FOR NEWLY PUBLIC COMPA-12
155-NIES 13
156-SEC. 1301. AUDITOR INDEPENDENCE FOR CERTAIN PAST 14
157-AUDITS OCCURRING BEFORE AN ISSUER IS A 15
158-PUBLIC COMPANY. 16
164+ECURITIESEXCHANGEACT OF1934.—Section 18
165+3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 19
166+78c(a)) is amended, in the first paragraph (80) (related to 20
167+emerging growth companies)— 21
168+(1) by striking ‘‘$1,000,000,000’’ each place such 22
169+term appears and inserting ‘‘$1,500,000,000’’; 23
170+(2) in subparagraph (B)— 24
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174+(A) by striking ‘‘fifth’’ and inserting ‘‘7- 1
175+year’’; and 2
176+(B) by adding ‘‘or’’ at the end; 3
177+(3) in subparagraph (C), by striking ‘‘; or’’ and 4
178+inserting a period; and 5
179+(4) by striking subparagraph (D). 6
180+TITLE III—SEC AND PCAOB AUDI-7
181+TOR REQUIREMENTS FOR 8
182+NEWLY PUBLIC COMPANIES 9
183+SEC. 1301. AUDITOR INDEPENDENCE FOR CERTAIN PAST 10
184+AUDITS OCCURRING BEFORE AN ISSUER IS A 11
185+PUBLIC COMPANY. 12
159186 (a) A
160-UDITORINDEPENDENCE STANDARDS OF THE 17
187+UDITORINDEPENDENCE STANDARDS OF THE 13
161188 P
162-UBLICCOMPANYACCOUNTINGOVERSIGHTBOARD.— 18
163-Section 103 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 19
164-7213) is amended by adding at the end the following: 20
189+UBLICCOMPANYACCOUNTINGOVERSIGHTBOARD.—Sec-14
190+tion 103 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 15
191+7213) is amended by adding at the end the following: 16
165192 ‘‘(e) A
166-UDITORINDEPENDENCE FOR CERTAINPAST 21
193+UDITORINDEPENDENCE FOR CERTAINPASTAU-17
194+DITSOCCURRINGBEFORE ANISSUERISAPUBLICCOM-18
195+PANY.—With respect to an issuer that is a public company 19
196+or an issuer that has filed a registration statement to be-20
197+come a public company, the auditor independence rules es-21
198+tablished by the Board with respect to audits occurring be-22
199+fore the last fiscal year of the issuer completed before the 23
200+issuer filed a registration statement to become a public com-24
201+pany shall treat an auditor as independent if— 25
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205+‘‘(1) the auditor is independent under standards 1
206+established by the American Institute of Certified 2
207+Public Accountants applicable to certified public ac-3
208+countants in United States; or 4
209+‘‘(2) with respect to a foreign issuer, the auditor 5
210+is independent under comparable standards applica-6
211+ble to certified public accountants in the issuer’s home 7
212+country.’’. 8
213+(b) A
214+UDITORINDEPENDENCESTANDARDS OF THESE-9
215+CURITIES ANDEXCHANGECOMMISSION.—Section 10A of 10
216+the Securities Exchange Act of 1934 (15 U.S.C. 78j–1) is 11
217+amended by adding at the end the following: 12
218+‘‘(n) A
219+UDITORINDEPENDENCE FOR CERTAINPAST 13
167220 A
168-UDITSOCCURRINGBEFORE ANISSUERISAPUBLIC 22
169-C
170-OMPANY.—With respect to an issuer that is a public 23
171-company or an issuer that has filed a registration state-24
172-ment to become a public company, the auditor independ-25 7
173-•HR 2799 EH
174-ence rules established by the Board with respect to audits 1
175-occurring before the last fiscal year of the issuer completed 2
176-before the issuer filed a registration statement to become 3
177-a public company shall treat an auditor as independent 4
178-if— 5
179-‘‘(1) the auditor is independent under standards 6
180-established by the American Institute of Certified 7
181-Public Accountants applicable to certified public ac-8
182-countants in United States; or 9
183-‘‘(2) with respect to a foreign issuer, the audi-10
184-tor is independent under comparable standards ap-11
185-plicable to certified public accountants in the issuer’s 12
186-home country.’’. 13
187-(b) A
188-UDITORINDEPENDENCE STANDARDS OF THE 14
189-S
190-ECURITIES ANDEXCHANGECOMMISSION.—Section 10A 15
191-of the Securities Exchange Act of 1934 (15 U.S.C. 78j– 16
192-1) is amended by adding at the end the following: 17
193-‘‘(n) A
194-UDITORINDEPENDENCE FOR CERTAINPAST 18
195-A
196-UDITSOCCURRINGBEFORE ANISSUERISAPUBLIC 19
197-C
198-OMPANY.—With respect to an issuer that is a public 20
199-company or an issuer that has filed a registration state-21
200-ment to become a public company, the auditor independ-22
201-ence rules established by the Commission under the securi-23
202-ties laws with respect to audits occurring before the last 24
203-fiscal year of the issuer completed before the issuer filed 25 8
204-•HR 2799 EH
205-a registration statement to become a public company shall 1
206-treat an auditor as independent if— 2
207-‘‘(1) the auditor is independent under standards 3
208-established by the American Institute of Certified 4
209-Public Accountants applicable to certified public ac-5
210-countants in United States; or 6
211-‘‘(2) with respect to a foreign issuer, the audi-7
212-tor is independent under comparable standards ap-8
213-plicable to certified public accountants in the issuer’s 9
214-home country.’’. 10
215-TITLE IV—EXPAND THE PROTEC-11
216-TION FOR RESEARCH RE-12
217-PORTS TO COVER ALL SECU-13
218-RITIES OF ALL ISSUERS 14
219-SEC. 1401. PROVISION OF RESEARCH. 15
220-Section 2(a)(3) of the Securities Act of 1933 (15 16
221-U.S.C. 77b(a)(3)) is amended— 17
222-(a) by striking ‘‘an emerging growth company’’ and 18
223-inserting ‘‘an issuer’’; 19
224-(b) by striking ‘‘the common equity’’ and inserting 20
225-‘‘any’’; and 21
226-(c) by striking ‘‘such emerging growth company’’ and 22
227-inserting ‘‘such issuer’’. 23 9
228-•HR 2799 EH
221+UDITSOCCURRINGBEFORE ANISSUERISAPUBLICCOM-14
222+PANY.—With respect to an issuer that is a public company 15
223+or an issuer that has filed a registration statement to be-16
224+come a public company, the auditor independence rules es-17
225+tablished by the Commission under the securities laws with 18
226+respect to audits occurring before the last fiscal year of the 19
227+issuer completed before the issuer filed a registration state-20
228+ment to become a public company shall treat an auditor 21
229+as independent if— 22
230+‘‘(1) the auditor is independent under standards 23
231+established by the American Institute of Certified 24
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235+Public Accountants applicable to certified public ac-1
236+countants in United States; or 2
237+‘‘(2) with respect to a foreign issuer, the auditor 3
238+is independent under comparable standards applica-4
239+ble to certified public accountants in the issuer’s home 5
240+country.’’. 6
241+TITLE IV—EXPAND THE PROTEC-7
242+TION FOR RESEARCH RE-8
243+PORTS TO COVER ALL SECU-9
244+RITIES OF ALL ISSUERS 10
245+SEC. 1401. PROVISION OF RESEARCH. 11
246+Section 2(a)(3) of the Securities Act of 1933 (15 U.S.C. 12
247+77b(a)(3)) is amended— 13
248+(a) by striking ‘‘an emerging growth company’’ and 14
249+inserting ‘‘an issuer’’; 15
250+(b) by striking ‘‘the common equity’’ and inserting 16
251+‘‘any’’; and 17
252+(c) by striking ‘‘such emerging growth company’’ and 18
253+inserting ‘‘such issuer’’. 19
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229257 TITLE V—EXCLUDE QIBS AND 1
230258 IAAS FROM THE RECORD 2
231259 HOLDER COUNT FOR MANDA-3
232260 TORY REGISTRATION 4
233261 SEC. 1501. EXCLUSIONS FROM MANDATORY REGISTRATION 5
234262 THRESHOLD. 6
235263 (a) I
236264 NGENERAL.—Section 12(g)(1) of the Securities 7
237265 Exchange Act of 1934 (15 U.S.C. 78l(g)(1)) is amended— 8
238266 (1) in subparagraph (A)(i), by inserting after 9
239-‘‘persons’’ the following: ‘‘(that are not a qualified 10
240-institutional buyer or an institutional accredited in-11
241-vestor)’’; and 12
242-(2) in subparagraph (B), by inserting after 13
243-‘‘persons’’ the following: ‘‘(that are not a qualified 14
244-institutional buyer or an institutional accredited in-15
245-vestor)’’. 16
267+‘‘persons’’ the following: ‘‘(that are not a qualified in-10
268+stitutional buyer or an institutional accredited inves-11
269+tor)’’; and 12
270+(2) in subparagraph (B), by inserting after ‘‘per-13
271+sons’’ the following: ‘‘(that are not a qualified institu-14
272+tional buyer or an institutional accredited investor)’’. 15
246273 (b) N
247-ONAPPLICABILITY OF GENERALEXEMPTIVE 17
248-A
249-UTHORITY.—Section 36 of the Securities Exchange Act 18
250-of 1934 (15 U.S.C. 78mm) shall not apply to the matter 19
251-inserted by the amendments made by subsection (a). 20 10
252-•HR 2799 EH
274+ONAPPLICABILITY OFGENERALEXEMPTIVEAU-16
275+THORITY.—Section 36 of the Securities Exchange Act of 17
276+1934 (15 U.S.C. 78mm) shall not apply to the matter in-18
277+serted by the amendments made by subsection (a). 19
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253281 TITLE VI—EXPAND WKSI 1
254282 ELIGIBILITY 2
255283 SEC. 1601. DEFINITION OF WELL-KNOWN SEASONED 3
256284 ISSUER. 4
257-For purposes of the Federal securities laws, and reg-5
258-ulations issued thereunder, an issuer shall be a ‘‘well- 6
259-known seasoned issuer’’ if— 7
260-(1) the aggregate market value of the voting 8
261-and non-voting common equity held by non-affiliates 9
262-of the issuer is $250,000,000 or more (as deter-10
263-mined under Form S–3 general instruction I.B.1. as 11
264-in effect on the date of enactment of this Act); and 12
265-(2) the issuer otherwise satisfies the require-13
266-ments of the definition of ‘‘well-known seasoned 14
267-issuer’’ contained in section 230.405 of title 17, 15
268-Code of Federal Regulations without reference to 16
269-any requirement in such definition relating to min-17
270-imum worldwide market value of outstanding voting 18
271-and non-voting common equity held by non-affiliates. 19 11
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285+For purposes of the Federal securities laws, and regu-5
286+lations issued thereunder, an issuer shall be a ‘‘well-known 6
287+seasoned issuer’’ if— 7
288+(1) the aggregate market value of the voting and 8
289+non-voting common equity held by non-affiliates of 9
290+the issuer is $250,000,000 or more (as determined 10
291+under Form S–3 general instruction I.B.1. as in ef-11
292+fect on the date of enactment of this Act); and 12
293+(2) the issuer otherwise satisfies the requirements 13
294+of the definition of ‘‘well-known seasoned issuer’’ con-14
295+tained in section 230.405 of title 17, Code of Federal 15
296+Regulations without reference to any requirement in 16
297+such definition relating to minimum worldwide mar-17
298+ket value of outstanding voting and non-voting com-18
299+mon equity held by non-affiliates. 19
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303+TITLE VII—SMALLER REPORT-1
304+ING COMPANY, ACCELERATED 2
305+FILER, AND LARGE ACCELER-3
306+ATED FILER THRESHOLDS 4
307+SEC. 1701. SMALLER REPORTING COMPANY, ACCELERATED 5
308+FILER, AND LARGE ACCELERATED FILER 6
309+THRESHOLDS. 7
310+(a) S
311+MALLERREPORTINGCOMPANIES.— 8
312+(1) I
313+N GENERAL.—The Securities and Exchange 9
314+Commission shall revise the definition of a ‘‘smaller 10
315+reporting company’’ under section 229.10(f)(1) of title 11
316+17, Code of Federal Regulations— 12
317+(A) in paragraph (i), by adjusting the pub-13
318+lic float threshold from $250,000,000 to 14
319+$500,000,000; and 15
320+(B) in paragraph (ii)— 16
321+(i) by adjusting the annual revenue 17
322+threshold from $100,000,000 to 18
323+$250,000,000; and 19
324+(ii) in paragraph (B), by adjusting the 20
325+public float threshold from $700,000,000 to 21
326+$900,000,000. 22
327+(2) U
328+SE OF THREE-YEAR ROLLING AVERAGE AN -23
329+NUAL REVENUES .—The Securities and Exchange 24
330+Commission shall revise paragraphs (1)(ii) and 25
331+VerDate Sep 11 2014 23:34 Jul 17, 2023 Jkt 039200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6203 E:\BILLS\H2799.RH H2799
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333+•HR 2799 RH
334+(2)(iii)(B) under the definition of ‘‘smaller reporting 1
335+company’’ under section 229.10(f)(1) of title 17, Code 2
336+of Federal Regulations, by substituting ‘‘three-year 3
337+rolling average annual revenues’’ for ‘‘annual reve-4
338+nues’’. 5
339+(3) C
340+ONFORMING CHANGES .—The Securities and 6
341+Exchange Commission shall revise the definition of a 7
342+‘‘smaller reporting company’’ under sections 230.405 8
343+and 240.12b–2 of title 17, Code of Federal Regula-9
344+tions, and any other rule of the Commission in the 10
345+same manner as such definition is revised under 11
346+paragraphs (1) and (2). 12
347+(b) A
348+CCELERATEDFILERS ANDLARGEACCELERATED 13
349+F
350+ILERS.— 14
351+(1) L
352+ARGE ACCELERATED FILER .—The Securi-15
353+ties and Exchange Commission shall revise the defini-16
354+tion of a ‘‘large accelerated filer’’ under section 17
355+240.12b–2(2) of title 17, Code of Federal Regulations, 18
356+to increase the threshold amount (for the aggregate 19
357+worldwide market value of the voting and non-voting 20
358+common equity held by non-affiliates of an issuer) 21
359+from $700,000,000 to $750,000,000. 22
360+(2) T
361+HRESHOLD TO EXIT ACCELERATED FILER 23
362+STATUS.—The Securities and Exchange Commission 24
363+shall revise section 240.12b–2(3)(ii) of title 17, Code 25
364+VerDate Sep 11 2014 23:34 Jul 17, 2023 Jkt 039200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6203 E:\BILLS\H2799.RH H2799
365+pbinns on DSKJLVW7X2PROD with $$_JOB 14
366+•HR 2799 RH
367+of Federal Regulations, to increase the threshold 1
368+amount (for the aggregate worldwide market value of 2
369+the voting and non-voting common equity held by 3
370+non-affiliates of an issuer) at which an issuer is no 4
371+longer an accelerated filer from $60,000,000 to 5
372+$75,000,000. 6
373+(3) T
374+HRESHOLD TO EXIT LARGE ACCELERATED 7
375+FILER STATUS.—The Securities and Exchange Com-8
376+mission shall revise section 240.12b–2(3)(iii) of title 9
377+17, Code of Federal Regulations, to increase the 10
378+threshold amount (for the aggregate worldwide market 11
379+value of the voting and non-voting common equity 12
380+held by non-affiliates of an issuer) at which an issuer 13
381+is no longer a large accelerated filer from 14
382+$560,000,000 to $750,000,000. 15
383+(4) E
384+XCLUSION OF SMALLER REPORTING COMPA -16
385+NIES.—The Securities and Exchange Commission 17
386+shall revise the definitions of an ‘‘accelerated filer’’ 18
387+and a ‘‘large accelerated filer’’ under paragraphs (1) 19
388+and (2) of section 240.12b–2 of title 17, Code of Fed-20
389+eral Regulations, respectively, to exclude any issuer 21
390+that is a smaller reporting company, as defined under 22
391+section 229.10(f)(1) of title 17, Code of Federal Regu-23
392+lations. 24
393+VerDate Sep 11 2014 23:34 Jul 17, 2023 Jkt 039200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6203 E:\BILLS\H2799.RH H2799
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395+•HR 2799 RH
273396 DIVISION B—HELPING SMALL 1
274397 BUSINESSES AND ENTRE-2
275398 PRENEURS 3
276399 TITLE I—UNLOCKING CAPITAL 4
277400 FOR SMALL BUSINESSES 5
278401 SEC. 2101. SHORT TITLE. 6
279402 This title may be cited as the ‘‘Unlocking Capital for 7
280403 Small Businesses Act of 2023’’. 8
281404 SEC. 2102. SAFE HARBORS FOR PRIVATE PLACEMENT BRO-9
282405 KERS AND FINDERS. 10
283406 (a) I
284407 NGENERAL.—Section 15 of the Securities Ex-11
285408 change Act of 1934 (15 U.S.C. 78o) is amended by adding 12
286409 at the end the following: 13
287410 ‘‘(p) P
288-RIVATEPLACEMENTBROKERSAFEHAR-14
289-BOR.— 15
411+RIVATEPLACEMENTBROKERSAFEHARBOR.— 14
290412 ‘‘(1) R
291-EGISTRATION REQUIREMENTS .—Not 16
292-later than 180 days after the date of the enactment 17
293-of this subsection the Commission shall promulgate 18
294-regulations with respect to private placement brokers 19
295-that are no more stringent than those imposed on 20
296-funding portals. 21
413+EGISTRATION REQUIREMENTS .—Not later 15
414+than 180 days after the date of the enactment of this 16
415+subsection the Commission shall promulgate regula-17
416+tions with respect to private placement brokers that 18
417+are no more stringent than those imposed on funding 19
418+portals. 20
297419 ‘‘(2) N
298-ATIONAL SECURITIES ASSOCIATIONS .— 22
299-Not later than 180 days after the date of the enact-23
300-ment of this subsection the Commission shall pro-24
301-mulgate regulations that require the rules of any na-25 12
302-•HR 2799 EH
303-tional securities association to allow a private place-1
304-ment broker to become a member of such national 2
305-securities association subject to reduced membership 3
306-requirements consistent with this subsection. 4
420+ATIONAL SECURITIES ASSOCIATIONS .—Not 21
421+later than 180 days after the date of the enactment 22
422+of this subsection the Commission shall promulgate 23
423+regulations that require the rules of any national se-24
424+curities association to allow a private placement 25
425+VerDate Sep 11 2014 23:34 Jul 17, 2023 Jkt 039200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6203 E:\BILLS\H2799.RH H2799
426+pbinns on DSKJLVW7X2PROD with $$_JOB 16
427+•HR 2799 RH
428+broker to become a member of such national securities 1
429+association subject to reduced membership require-2
430+ments consistent with this subsection. 3
307431 ‘‘(3) D
308-ISCLOSURES REQUIRED .—Before effect-5
309-ing a transaction, a private placement broker shall 6
310-disclose clearly and conspicuously, in writing, to all 7
311-parties to the transaction as a result of the broker’s 8
312-activities— 9
313-‘‘(A) that the broker is acting as a private 10
314-placement broker; 11
315-‘‘(B) the amount of any payment or antici-12
316-pated payment for services rendered as a pri-13
317-vate placement broker in connection with such 14
318-transaction; 15
319-‘‘(C) the person to whom any such pay-16
320-ment is made; and 17
321-‘‘(D) any beneficial interest in the issuer, 18
322-direct or indirect, of the private placement 19
323-broker, of a member of the immediate family of 20
324-the private placement broker, of an associated 21
325-person of the private placement broker, or of a 22
326-member of the immediate family of such associ-23
327-ated person. 24 13
328-•HR 2799 EH
329-‘‘(4) PRIVATE PLACEMENT BROKER DE -1
330-FINED.—In this subsection, the term ‘private place-2
331-ment broker’ means a person that— 3
432+ISCLOSURES REQUIRED .—Before effecting 4
433+a transaction, a private placement broker shall dis-5
434+close clearly and conspicuously, in writing, to all 6
435+parties to the transaction as a result of the broker’s 7
436+activities— 8
437+‘‘(A) that the broker is acting as a private 9
438+placement broker; 10
439+‘‘(B) the amount of any payment or antici-11
440+pated payment for services rendered as a private 12
441+placement broker in connection with such trans-13
442+action; 14
443+‘‘(C) the person to whom any such payment 15
444+is made; and 16
445+‘‘(D) any beneficial interest in the issuer, 17
446+direct or indirect, of the private placement 18
447+broker, of a member of the immediate family of 19
448+the private placement broker, of an associated 20
449+person of the private placement broker, or of a 21
450+member of the immediate family of such associ-22
451+ated person. 23
452+VerDate Sep 11 2014 23:34 Jul 17, 2023 Jkt 039200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6203 E:\BILLS\H2799.RH H2799
453+pbinns on DSKJLVW7X2PROD with $$_JOB 17
454+•HR 2799 RH
455+‘‘(4) PRIVATE PLACEMENT BROKER DEFINED .— 1
456+In this subsection, the term ‘private placement broker’ 2
457+means a person that— 3
332458 ‘‘(A) receives transaction-based compensa-4
333459 tion— 5
334460 ‘‘(i) for effecting a transaction by— 6
335-‘‘(I) introducing an issuer of se-7
336-curities and a buyer of such securities 8
337-in connection with the sale of a busi-9
338-ness effected as the sale of securities; 10
339-or 11
340-‘‘(II) introducing an issuer of se-12
341-curities and a buyer of such securities 13
342-in connection with the placement of 14
343-securities in transactions that are ex-15
344-empt from registration requirements 16
345-under the Securities Act of 1933; and 17
346-‘‘(ii) that is not with respect to— 18
347-‘‘(I) a class of publicly traded se-19
348-curities; 20
349-‘‘(II) the securities of an invest-21
350-ment company (as defined in section 3 22
351-of the Investment Company Act of 23
352-1940); or 24 14
353-•HR 2799 EH
461+‘‘(I) introducing an issuer of secu-7
462+rities and a buyer of such securities in 8
463+connection with the sale of a business 9
464+effected as the sale of securities; or 10
465+‘‘(II) introducing an issuer of se-11
466+curities and a buyer of such securities 12
467+in connection with the placement of se-13
468+curities in transactions that are ex-14
469+empt from registration requirements 15
470+under the Securities Act of 1933; and 16
471+‘‘(ii) that is not with respect to— 17
472+‘‘(I) a class of publicly traded se-18
473+curities; 19
474+‘‘(II) the securities of an invest-20
475+ment company (as defined in section 3 21
476+of the Investment Company Act of 22
477+1940); or 23
478+VerDate Sep 11 2014 23:34 Jul 17, 2023 Jkt 039200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6203 E:\BILLS\H2799.RH H2799
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480+•HR 2799 RH
354481 ‘‘(III) a variable or equity-in-1
355482 dexed annuity or other variable or eq-2
356483 uity-indexed life insurance product; 3
357-‘‘(B) with respect to a transaction for 4
358-which such transaction-based compensation is 5
359-received— 6
360-‘‘(i) does not handle or take posses-7
361-sion of the funds or securities; and 8
484+‘‘(B) with respect to a transaction for which 4
485+such transaction-based compensation is re-5
486+ceived— 6
487+‘‘(i) does not handle or take possession 7
488+of the funds or securities; and 8
362489 ‘‘(ii) does not engage in an activity 9
363490 that requires registration as an investment 10
364491 adviser under State or Federal law; and 11
365492 ‘‘(C) is not a finder as defined under sub-12
366493 section (q). 13
367494 ‘‘(q) F
368495 INDERSAFEHARBOR.— 14
369496 ‘‘(1) N
370497 ONREGISTRATION.—A finder is exempt 15
371498 from the registration requirements of this Act. 16
372499 ‘‘(2) N
373500 ATIONAL SECURITIES ASSOCIATIONS .—A 17
374501 finder shall not be required to become a member of 18
375502 any national securities association. 19
376503 ‘‘(3) F
377504 INDER DEFINED.—In this subsection, the 20
378-term ‘finder’ means a person described in para-21
379-graphs (A) and (B) of subsection (p)(4) that— 22
505+term ‘finder’ means a person described in paragraphs 21
506+(A) and (B) of subsection (p)(4) that— 22
380507 ‘‘(A) receives transaction-based compensa-23
381-tion of equal to or less than $500,000 in any 24
382-calendar year; 25 15
383-•HR 2799 EH
508+tion of equal to or less than $500,000 in any cal-24
509+endar year; 25
510+VerDate Sep 11 2014 23:34 Jul 17, 2023 Jkt 039200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6203 E:\BILLS\H2799.RH H2799
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512+•HR 2799 RH
384513 ‘‘(B) receives transaction-based compensa-1
385514 tion in connection with transactions that result 2
386515 in a single issuer selling securities valued at 3
387516 equal to or less than $15,000,000 in any cal-4
388517 endar year; 5
389518 ‘‘(C) receives transaction-based compensa-6
390519 tion in connection with transactions that result 7
391520 in any combination of issuers selling securities 8
392521 valued at equal to or less than $30,000,000 in 9
393522 any calendar year; or 10
394523 ‘‘(D) receives transaction-based compensa-11
395524 tion in connection with fewer than 16 trans-12
396-actions that are not part of the same offering 13
397-or are otherwise unrelated in any calendar 14
398-year.’’. 15
525+actions that are not part of the same offering or 13
526+are otherwise unrelated in any calendar year.’’. 14
399527 (b) V
400-ALIDITY OFCONTRACTSWITHREGISTERED 16
401-P
402-RIVATEPLACEMENTBROKERS ANDFINDERS.—Section 17
403-29 of the Securities Exchange Act of 1934 (15 U.S.C. 18
404-78cc) is amended by adding at the end the following: 19
405-‘‘(d) Subsection (b) shall not apply to a contract 20
406-made for a transaction if— 21
407-‘‘(1) the transaction is one in which the issuer 22
408-engaged the services of a broker or dealer that is not 23
409-registered under this Act with respect to such trans-24
410-action; 25 16
411-•HR 2799 EH
412-‘‘(2) such issuer received a self-certification 1
413-from such broker or dealer certifying that such 2
414-broker or dealer is a registered private placement 3
415-broker under section 15(p) or a finder under section 4
416-15(q); and 5
417-‘‘(3) the issuer either did not know that such 6
418-self-certification was false or did not have a reason-7
419-able basis to believe that such self-certification was 8
420-false.’’. 9
528+ALIDITY OFCONTRACTSWITHREGISTEREDPRI-15
529+VATEPLACEMENTBROKERS ANDFINDERS.—Section 29 of 16
530+the Securities Exchange Act of 1934 (15 U.S.C. 78cc) is 17
531+amended by adding at the end the following: 18
532+‘‘(d) Subsection (b) shall not apply to a contract made 19
533+for a transaction if— 20
534+‘‘(1) the transaction is one in which the issuer 21
535+engaged the services of a broker or dealer that is not 22
536+registered under this Act with respect to such trans-23
537+action; 24
538+VerDate Sep 11 2014 23:34 Jul 17, 2023 Jkt 039200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6203 E:\BILLS\H2799.RH H2799
539+pbinns on DSKJLVW7X2PROD with $$_JOB 20
540+•HR 2799 RH
541+‘‘(2) such issuer received a self-certification from 1
542+such broker or dealer certifying that such broker or 2
543+dealer is a registered private placement broker under 3
544+section 15(p) or a finder under section 15(q); and 4
545+‘‘(3) the issuer either did not know that such self- 5
546+certification was false or did not have a reasonable 6
547+basis to believe that such self-certification was false.’’. 7
421548 (c) R
422-EMOVAL OF PRIVATEPLACEMENTBROKERS 10
549+EMOVAL OF PRIVATEPLACEMENTBROKERS 8
423550 F
424-ROMDEFINITIONS OFBROKER.— 11
551+ROMDEFINITIONS OFBROKER.— 9
425552 (1) R
426-ECORDS AND REPORTS ON MONETARY IN -12
427-STRUMENTS TRANSACTIONS .—Section 5312 of title 13
428-31, United States Code, is amended in subsection 14
429-(a)(2)(G) by inserting ‘‘with the exception of a pri-15
430-vate placement broker as defined in section 15(p)(4) 16
431-of the Securities Exchange Act of 1934 (15 U.S.C. 17
432-78o(p)(4))’’ before the semicolon at the end. 18
553+ECORDS AND REPORTS ON MONETARY IN -10
554+STRUMENTS TRANSACTIONS .—Section 5312 of title 31, 11
555+United States Code, is amended in subsection 12
556+(a)(2)(G) by inserting ‘‘with the exception of a pri-13
557+vate placement broker as defined in section 15(p)(4) 14
558+of the Securities Exchange Act of 1934 (15 U.S.C. 15
559+78o(p)(4))’’ before the semicolon at the end. 16
433560 (2) S
434-ECURITIES EXCHANGE ACT OF 1934 .—Sec-19
435-tion 3(a)(4) of the Securities Exchange Act of 1934 20
436-(15 U.S.C. 78c(a)(4)) is amended by adding at the 21
437-end the following: 22
561+ECURITIES EXCHANGE ACT OF 1934 .—Sec-17
562+tion 3(a)(4) of the Securities Exchange Act of 1934 18
563+(15 U.S.C. 78c(a)(4)) is amended by adding at the 19
564+end the following: 20
438565 ‘‘(G) P
439-RIVATE PLACEMENT BROKERS .—A 23
440-private placement broker as defined in section 24 17
441-•HR 2799 EH
442-15(p)(4) is not a broker for the purposes of this 1
443-Act.’’. 2
444-SEC. 2103. LIMITATIONS ON STATE LAW. 3
445-Section 15(i) of the Securities Exchange Act of 1934 4
446-(15 U.S.C. 78o(i)) is amended— 5
447-(1) by redesignating paragraphs (3) and (4) as 6
448-paragraphs (4) and (5), respectively; 7
449-(2) by inserting after paragraph (2) the fol-8
450-lowing: 9
566+RIVATE PLACEMENT BROKERS .—A 21
567+private placement broker as defined in section 22
568+15(p)(4) is not a broker for the purposes of this 23
569+Act.’’. 24
570+VerDate Sep 11 2014 23:34 Jul 17, 2023 Jkt 039200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6203 E:\BILLS\H2799.RH H2799
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572+•HR 2799 RH
573+SEC. 2103. LIMITATIONS ON STATE LAW. 1
574+Section 15(i) of the Securities Exchange Act of 1934 2
575+(15 U.S.C. 78o(i)) is amended— 3
576+(1) by redesignating paragraphs (3) and (4) as 4
577+paragraphs (4) and (5), respectively; 5
578+(2) by inserting after paragraph (2) the fol-6
579+lowing: 7
451580 ‘‘(3) P
452-RIVATE PLACEMENT BROKERS AND FIND -10
453-ERS.— 11
581+RIVATE PLACEMENT BROKERS AND FIND -8
582+ERS.— 9
454583 ‘‘(A) I
455-N GENERAL.—No State or political 12
456-subdivision thereof may enforce any law, rule, 13
457-regulation, or other administrative action that 14
458-imposes greater registration, audit, financial 15
459-recordkeeping, or reporting requirements on a 16
460-private placement broker or finder than those 17
461-that are required under subsections (p) and (q), 18
462-respectively. 19
584+N GENERAL.—No State or political 10
585+subdivision thereof may enforce any law, rule, 11
586+regulation, or other administrative action that 12
587+imposes greater registration, audit, financial rec-13
588+ordkeeping, or reporting requirements on a pri-14
589+vate placement broker or finder than those that 15
590+are required under subsections (p) and (q), re-16
591+spectively. 17
463592 ‘‘(B) D
464-EFINITION OF STATE .—For pur-20
465-poses of this paragraph, the term ‘State’ in-21
466-cludes the District of Columbia and each terri-22
467-tory of the United States.’’; and 23 18
468-•HR 2799 EH
469-(3) in paragraph (4), as so redesignated, by 1
470-striking ‘‘paragraph (3)’’ and inserting ‘‘paragraph 2
471-(5)’’. 3
472-TITLE II—SMALL BUSINESS 4
473-INVESTOR CAPITAL ACCESS 5
474-SEC. 2201. SHORT TITLE. 6
475-This title may be cited as the ‘‘Small Business Inves-7
476-tor Capital Access Act’’. 8
477-SEC. 2202. INFLATION ADJUSTMENT FOR THE EXEMPTION 9
478-THRESHOLD FOR CERTAIN INVESTMENT AD-10
479-VISERS OF PRIVATE FUNDS. 11
480-Section 203(m) of the Investment Advisers Act of 12
481-1940 (15 U.S.C. 80b–3(m)) is amended by adding at the 13
482-end the following: 14
593+EFINITION OF STATE.—For purposes 18
594+of this paragraph, the term ‘State’ includes the 19
595+District of Columbia and each territory of the 20
596+United States.’’; and 21
597+(3) in paragraph (4), as so redesignated, by 22
598+striking ‘‘paragraph (3)’’ and inserting ‘‘paragraph 23
599+(5)’’. 24
600+VerDate Sep 11 2014 23:34 Jul 17, 2023 Jkt 039200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6203 E:\BILLS\H2799.RH H2799
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602+•HR 2799 RH
603+TITLE II—SMALL BUSINESS 1
604+INVESTOR CAPITAL ACCESS 2
605+SEC. 2201. SHORT TITLE. 3
606+This title may be cited as the ‘‘Small Business Investor 4
607+Capital Access Act’’. 5
608+SEC. 2202. INFLATION ADJUSTMENT FOR THE EXEMPTION 6
609+THRESHOLD FOR CERTAIN INVESTMENT AD-7
610+VISERS OF PRIVATE FUNDS. 8
611+Section 203(m) of the Investment Advisers Act of 1940 9
612+(15 U.S.C. 80b–3(m)) is amended by adding at the end the 10
613+following: 11
483614 ‘‘(5) I
484-NFLATION ADJUSTMENT .—The Commis-15
485-sion shall adjust the dollar amount described under 16
486-paragraph (1)— 17
487-‘‘(A) upon enactment of this paragraph, to 18
488-reflect the change in the Consumer Price Index 19
489-for All Urban Consumers published by the Bu-20
490-reau of Labor Statistics of the Department of 21
491-Labor between the date of enactment of the 22
492-Private Fund Investment Advisers Registration 23
493-Act of 2010 and the date of enactment of this 24
494-paragraph; and 25 19
495-•HR 2799 EH
496-‘‘(B) annually thereafter, to reflect the 1
497-change in the Consumer Price Index for All 2
498-Urban Consumers published by the Bureau of 3
499-Labor Statistics of the Department of Labor.’’. 4
500-TITLE III—IMPROVING CAPITAL 5
501-ALLOCATION FOR NEWCOMERS 6
502-SEC. 2301. SHORT TITLE. 7
503-This title may be cited as the ‘‘Improving Capital Al-8
504-location for Newcomers Act of 2023’’. 9
505-SEC. 2302. QUALIFYING VENTURE CAPITAL FUNDS. 10
506-Section 3(c)(1) of the Investment Company Act of 11
507-1940 (15 U.S.C. 80a–3(c)(1)) is amended— 12
508-(1) in the matter preceding subparagraph (A), 13
509-by striking ‘‘250 persons’’ and inserting ‘‘600 per-14
510-sons’’; and 15
511-(2) in subparagraph (C)(i), by striking 16
512-‘‘$10,000,000’’ and inserting ‘‘$150,000,000’’. 17
513-TITLE IV—SMALL ENTRE-18
514-PRENEURS’ EMPOWERMENT 19
515-AND DEVELOPMENT 20
516-SEC. 2401. SHORT TITLE. 21
517-This title may be cited as the ‘‘Small Entrepreneurs’ 22
518-Empowerment and Development Act of 2023’’ or the 23
519-‘‘SEED Act of 2023’’. 24 20
520-•HR 2799 EH
521-SEC. 2402. MICRO-OFFERING EXEMPTION. 1
615+NFLATION ADJUSTMENT.—The Commission 12
616+shall adjust the dollar amount described under para-13
617+graph (1)— 14
618+‘‘(A) upon enactment of this paragraph, to 15
619+reflect the change in the Consumer Price Index 16
620+for All Urban Consumers published by the Bu-17
621+reau of Labor Statistics of the Department of 18
622+Labor between the date of enactment of the Pri-19
623+vate Fund Investment Advisers Registration Act 20
624+of 2010 and the date of enactment of this para-21
625+graph; and 22
626+‘‘(B) annually thereafter, to reflect the 23
627+change in the Consumer Price Index for All 24
628+VerDate Sep 11 2014 23:34 Jul 17, 2023 Jkt 039200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6203 E:\BILLS\H2799.RH H2799
629+pbinns on DSKJLVW7X2PROD with $$_JOB 23
630+•HR 2799 RH
631+Urban Consumers published by the Bureau of 1
632+Labor Statistics of the Department of Labor.’’. 2
633+TITLE III—IMPROVING CAPITAL 3
634+ALLOCATION FOR NEWCOMERS 4
635+SEC. 2301. SHORT TITLE. 5
636+This title may be cited as the ‘‘Improving Capital Allo-6
637+cation for Newcomers Act of 2023’’. 7
638+SEC. 2302. QUALIFYING VENTURE CAPITAL FUNDS. 8
639+Section 3(c)(1) of the Investment Company Act of 1940 9
640+(15 U.S.C. 80a–3(c)(1)) is amended— 10
641+(1) in the matter preceding subparagraph (A), 11
642+by striking ‘‘250 persons’’ and inserting ‘‘600 per-12
643+sons’’; and 13
644+(2) in subparagraph (C)(i), by striking 14
645+‘‘$10,000,000’’ and inserting ‘‘$150,000,000’’. 15
646+TITLE IV—SMALL ENTRE-16
647+PRENEURS’ EMPOWERMENT 17
648+AND DEVELOPMENT 18
649+SEC. 2401. SHORT TITLE. 19
650+This title may be cited as the ‘‘Small Entrepreneurs’ 20
651+Empowerment and Development Act of 2023’’ or the 21
652+‘‘SEED Act of 2023’’. 22
653+SEC. 2402. MICRO-OFFERING EXEMPTION. 23
522654 (a) I
523-NGENERAL.—Section 4 of the Securities Act of 2
524-1933 (15 U.S.C. 77d) is amended— 3
525-(1) in subsection (a), by adding at the end the 4
526-following: 5
527-‘‘(8) transactions meeting the requirements of 6
528-subsection (f).’’; and 7
529-(2) by adding at the end the following: 8
655+NGENERAL.—Section 4 of the Securities Act of 24
656+1933 (15 U.S.C. 77d) is amended— 25
657+VerDate Sep 11 2014 23:34 Jul 17, 2023 Jkt 039200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6203 E:\BILLS\H2799.RH H2799
658+pbinns on DSKJLVW7X2PROD with $$_JOB 24
659+•HR 2799 RH
660+(1) in subsection (a), by adding at the end the 1
661+following: 2
662+‘‘(8) transactions meeting the requirements of 3
663+subsection (f).’’; and 4
664+(2) by adding at the end the following: 5
530665 ‘‘(f) M
531-ICRO-OFFERINGS.—The transactions referred 9
532-to in subsection (a)(8) are transactions involving the sale 10
533-of securities by an issuer (including all entities controlled 11
534-by or under common control with the issuer) where the 12
535-aggregate amount of all securities sold by the issuer, in-13
536-cluding any amount sold in reliance on the exemption pro-14
537-vided under subsection (a)(8), during the 12-month period 15
538-preceding such transaction, does not exceed $250,000.’’. 16
666+ICRO-OFFERINGS.—The transactions referred to 6
667+in subsection (a)(8) are transactions involving the sale of 7
668+securities by an issuer (including all entities controlled by 8
669+or under common control with the issuer) where the aggre-9
670+gate amount of all securities sold by the issuer, including 10
671+any amount sold in reliance on the exemption provided 11
672+under subsection (a)(8), during the 12-month period pre-12
673+ceding such transaction, does not exceed $250,000.’’. 13
539674 (b) D
540-ISQUALIFICATION.— 17
675+ISQUALIFICATION.— 14
541676 (1) I
542-N GENERAL.—Not later than 270 days 18
543-after the date of enactment of this Act, the Securi-19
544-ties and Exchange Commission shall, by rule, estab-20
545-lish disqualification provisions under which an issuer 21
546-shall not be eligible to offer securities pursuant to 22
547-section 4(a)(8) of the Securities Act of 1933, as 23
548-added by this section. 24
677+N GENERAL.—Not later than 270 days after 15
678+the date of enactment of this Act, the Securities and 16
679+Exchange Commission shall, by rule, establish dis-17
680+qualification provisions under which an issuer shall 18
681+not be eligible to offer securities pursuant to section 19
682+4(a)(8) of the Securities Act of 1933, as added by this 20
683+section. 21
549684 (2) I
550-NCLUSIONS.—Disqualification provisions 25
551-required by this subsection shall— 26 21
552-•HR 2799 EH
553-(A) be substantially similar to the provi-1
554-sions of section 230.506(d) of title 17, Code of 2
555-Federal Regulations (or any successor thereto); 3
556-and 4
557-(B) disqualify any offering or sale of secu-5
558-rities by a person that— 6
559-(i) is subject to a final order of a cov-7
560-ered regulator that— 8
561-(I) bars the person from— 9
562-(aa) association with an en-10
563-tity regulated by the covered reg-11
564-ulator; 12
565-(bb) engaging in the busi-13
566-ness of securities, insurance, or 14
567-banking; or 15
568-(cc) engaging in savings as-16
569-sociation or credit union activi-17
570-ties; or 18
571-(II) constitutes a final order 19
572-based on a violation of any law or reg-20
573-ulation that prohibits fraudulent, ma-21
574-nipulative, or deceptive conduct, if 22
575-such final order was issued within the 23
576-previous 10-year period; or 24 22
577-•HR 2799 EH
578-(ii) has been convicted of any felony 1
579-or misdemeanor in connection with the 2
580-purchase or sale of any security or involv-3
581-ing the making of any false filing with the 4
582-Commission. 5
685+NCLUSIONS.—Disqualification provisions re-22
686+quired by this subsection shall— 23
687+(A) be substantially similar to the provi-24
688+sions of section 230.506(d) of title 17, Code of 25
689+VerDate Sep 11 2014 23:34 Jul 17, 2023 Jkt 039200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6203 E:\BILLS\H2799.RH H2799
690+pbinns on DSKJLVW7X2PROD with $$_JOB 25
691+•HR 2799 RH
692+Federal Regulations (or any successor thereto); 1
693+and 2
694+(B) disqualify any offering or sale of securi-3
695+ties by a person that— 4
696+(i) is subject to a final order of a cov-5
697+ered regulator that— 6
698+(I) bars the person from— 7
699+(aa) association with an en-8
700+tity regulated by the covered regu-9
701+lator; 10
702+(bb) engaging in the business 11
703+of securities, insurance, or bank-12
704+ing; or 13
705+(cc) engaging in savings as-14
706+sociation or credit union activi-15
707+ties; or 16
708+(II) constitutes a final order based 17
709+on a violation of any law or regulation 18
710+that prohibits fraudulent, manipula-19
711+tive, or deceptive conduct, if such final 20
712+order was issued within the previous 21
713+10-year period; or 22
714+(ii) has been convicted of any felony or 23
715+misdemeanor in connection with the pur-24
716+chase or sale of any security or involving 25
717+VerDate Sep 11 2014 23:34 Jul 17, 2023 Jkt 039200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6203 E:\BILLS\H2799.RH H2799
718+pbinns on DSKJLVW7X2PROD with $$_JOB 26
719+•HR 2799 RH
720+the making of any false filing with the 1
721+Commission. 2
583722 (3) C
584-OVERED REGULATOR DEFINED .—In this 6
585-subsection, the term ‘‘covered regulator’’ means— 7
586-(A) a State securities commission (or an 8
587-agency or officer of a State performing like 9
588-functions); 10
589-(B) a State authority that supervises or 11
590-examines banks, savings associations, or credit 12
591-unions; 13
592-(C) a State insurance commission (or an 14
593-agency or officer of a State performing like 15
594-functions); 16
595-(D) a Federal banking agency (as defined 17
596-under section 3 of the Federal Deposit Insur-18
597-ance Act); and 19
598-(E) the National Credit Union Administra-20
599-tion. 21
723+OVERED REGULATOR DEFINED .—In this 3
724+subsection, the term ‘‘covered regulator’’ means— 4
725+(A) a State securities commission (or an 5
726+agency or officer of a State performing like func-6
727+tions); 7
728+(B) a State authority that supervises or ex-8
729+amines banks, savings associations, or credit 9
730+unions; 10
731+(C) a State insurance commission (or an 11
732+agency or officer of a State performing like func-12
733+tions); 13
734+(D) a Federal banking agency (as defined 14
735+under section 3 of the Federal Deposit Insurance 15
736+Act); and 16
737+(E) the National Credit Union Administra-17
738+tion. 18
600739 (c) E
601-XEMPTIONUNDERSTATEREGULATIONS.—Sec-22
602-tion 18(b)(4) of the Securities Act of 1933 (15 U.S.C. 23
603-77r(b)(4)) is amended— 24 23
604-•HR 2799 EH
605-(1) in subparagraph (F), by striking ‘‘or’’ at 1
606-the end; 2
607-(2) in subparagraph (G), by striking the period 3
608-and inserting ‘‘; or’’; and 4
609-(3) by adding at the end the following: 5
610-‘‘(H) section 4(a)(8).’’. 6
611-TITLE V—REGULATION A+ 7
612-IMPROVEMENT 8
613-SEC. 2501. SHORT TITLE. 9
614-This title may be cited as the ‘‘Regulation A+ Im-10
615-provement Act of 2023’’. 11
616-SEC. 2502. JOBS ACT-RELATED EXEMPTION. 12
617-Section 3(b) of the Securities Act of 1933 (15 U.S.C. 13
618-77c(b)) is amended— 14
619-(1) in paragraph (2)(A), by striking 15
620-‘‘$50,000,000’’ and inserting ‘‘$150,000,000, ad-16
621-justed for inflation by the Commission every 2 years 17
622-to the nearest $10,000 to reflect the change in the 18
623-Consumer Price Index for All Urban Consumers 19
624-published by the Bureau of Labor Statistics’’; and 20
625-(2) in paragraph (5)— 21
626-(A) by striking ‘‘such amount as’’ and in-22
627-serting: ‘‘such amount, in addition to the ad-23
628-justment for inflation provided for under such 24
629-paragraph (2)(A), as’’; and 25 24
630-•HR 2799 EH
631-(B) by striking ‘‘such amount, it’’ and in-1
632-serting ‘‘such amount, in addition to the adjust-2
633-ment for inflation provided for under such 3
634-paragraph (2)(A), it’’. 4
635-TITLE VI—DEVELOPING AND EM-5
636-POWERING OUR ASPIRING 6
637-LEADERS 7
638-SEC. 2601. SHORT TITLE. 8
639-This title may be cited as the ‘‘Developing and Em-9
640-powering our Aspiring Leaders Act of 2023’’ or the 10
641-‘‘DEAL Act of 2023’’. 11
642-SEC. 2602. DEFINITIONS. 12
643-Not later than the end of the 180-day period begin-13
644-ning on the date of the enactment of this Act, the Securi-14
645-ties and Exchange Commission shall, in a manner that 15
646-facilitates capital formation without compromising inves-16
647-tor protection— 17
648-(1) revise the definition of a qualifying invest-18
649-ment under paragraph (c) of section 275.203(l)–1 of 19
650-title 17, Code of Federal Regulations— 20
651-(A) to include an equity security issued by 21
652-a qualifying portfolio company, whether ac-22
653-quired directly from the company or in a sec-23
654-ondary acquisition; and 24 25
655-•HR 2799 EH
656-(B) to specify that an investment in an-1
657-other venture capital fund is a qualifying in-2
658-vestment under such definition; and 3
659-(2) revise paragraph (a) of such section to re-4
660-quire, as a condition of a private fund qualifying as 5
661-a venture capital fund under such paragraph, that 6
662-the qualifying investments of the private fund are ei-7
663-ther— 8
664-(A) predominantly qualifying investments 9
665-that were acquired directly from a qualifying 10
666-portfolio company; or 11
667-(B) predominantly qualifying investments 12
668-in another venture capital fund or other venture 13
669-capital funds. 14
670-SEC. 2603. REPORTS. 15
740+XEMPTIONUNDERSTATEREGULATIONS.—Sec-19
741+tion 18(b)(4) of the Securities Act of 1933 (15 U.S.C. 20
742+77r(b)(4)) is amended— 21
743+(1) in subparagraph (F), by striking ‘‘or’’ at the 22
744+end; 23
745+(2) in subparagraph (G), by striking the period 24
746+and inserting ‘‘; or’’; and 25
747+VerDate Sep 11 2014 23:34 Jul 17, 2023 Jkt 039200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6203 E:\BILLS\H2799.RH H2799
748+pbinns on DSKJLVW7X2PROD with $$_JOB 27
749+•HR 2799 RH
750+(3) by adding at the end the following: 1
751+‘‘(H) section 4(a)(8).’’. 2
752+TITLE V—REGULATION A+ 3
753+IMPROVEMENT 4
754+SEC. 2501. SHORT TITLE. 5
755+This title may be cited as the ‘‘Regulation A+ Im-6
756+provement Act of 2023’’. 7
757+SEC. 2502. JOBS ACT-RELATED EXEMPTION. 8
758+Section 3(b) of the Securities Act of 1933 (15 U.S.C. 9
759+77c(b)) is amended— 10
760+(1) in paragraph (2)(A), by striking 11
761+‘‘$50,000,000’’ and inserting ‘‘$150,000,000, adjusted 12
762+for inflation by the Commission every 2 years to the 13
763+nearest $10,000 to reflect the change in the Consumer 14
764+Price Index for All Urban Consumers published by 15
765+the Bureau of Labor Statistics’’; and 16
766+(2) in paragraph (5)— 17
767+(A) by striking ‘‘such amount as’’ and in-18
768+serting: ‘‘such amount, in addition to the adjust-19
769+ment for inflation provided for under such para-20
770+graph (2)(A), as’’; and 21
771+(B) by striking ‘‘such amount, it’’ and in-22
772+serting ‘‘such amount, in addition to the adjust-23
773+ment for inflation provided for under such para-24
774+graph (2)(A), it’’. 25
775+VerDate Sep 11 2014 23:34 Jul 17, 2023 Jkt 039200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6203 E:\BILLS\H2799.RH H2799
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777+•HR 2799 RH
778+TITLE VI—DEVELOPING AND EM-1
779+POWERING OUR ASPIRING 2
780+LEADERS 3
781+SEC. 2601. SHORT TITLE. 4
782+This title may be cited as the ‘‘Developing and Em-5
783+powering our Aspiring Leaders Act of 2023’’ or the ‘‘DEAL 6
784+Act of 2023’’. 7
785+SEC. 2602. DEFINITIONS. 8
786+Not later than the end of the 180-day period beginning 9
787+on the date of the enactment of this Act, the Securities and 10
788+Exchange Commission shall, to the extent such revisions fa-11
789+cilitate capital formation without compromising investor 12
790+protection— 13
791+(1) revise the definition of a qualifying invest-14
792+ment under paragraph (c) of section 275.203(l)–1 of 15
793+title 17, Code of Federal Regulations— 16
794+(A) to include an equity security issued by 17
795+a qualifying portfolio company, whether ac-18
796+quired directly from the company or in a sec-19
797+ondary acquisition; and 20
798+(B) to specify that an investment in another 21
799+venture capital fund is a qualifying investment 22
800+under such definition; and 23
801+(2) revise paragraph (a) of such section to re-24
802+quire, as a condition of a private fund qualifying as 25
803+VerDate Sep 11 2014 23:34 Jul 17, 2023 Jkt 039200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6203 E:\BILLS\H2799.RH H2799
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805+•HR 2799 RH
806+a venture capital fund under such paragraph, that 1
807+the qualifying investments of the private fund are ei-2
808+ther— 3
809+(A) predominantly qualifying investments 4
810+that were acquired directly from a qualifying 5
811+portfolio company; or 6
812+(B) predominantly qualifying investments 7
813+in another venture capital fund or other venture 8
814+capital funds. 9
815+SEC. 2603. REPORTS. 10
671816 (a) GAO R
672-EPORT.—The Comptroller General of the 16
673-United States shall issue a report to Congress on the risks 17
674-and impacts of concentrated sectoral counterparty risk in 18
675-the banking sector, in light of the failure of Silicon Valley 19
676-Bank. 20
817+EPORT.—The Comptroller General of the 11
818+United States shall issue a report to Congress on the risks 12
819+and impacts of concentrated sectoral counterparty risk in 13
820+the banking sector, in light of the failure of Silicon Valley 14
821+Bank. 15
677822 (b) A
678-DVOCATE FORSMALLBUSINESSCAPITALFOR-21
679-MATIONREPORT.—The Advocate for Small Business Cap-22
680-ital Formation shall issue a report to Congress and the 23
681-Securities and Exchange Commission— 24 26
682-•HR 2799 EH
683-(1) examining the access to banking services for 1
684-venture funds and companies funded by venture cap-2
685-ital, in light of the failure of Silicon Valley Bank, es-3
686-pecially those funds and companies located outside 4
687-of the established technology and venture capital 5
688-hubs of California, Massachusetts, and New York; 6
689-and 7
690-(2) containing any policy recommendations of 8
691-the Advocate. 9
692-TITLE VII—IMPROVING 10
693-CROWDFUNDING OPPORTUNI-11
694-TIES 12
695-SEC. 2701. SHORT TITLE. 13
696-This title may be cited as the ‘‘Improving 14
697-Crowdfunding Opportunities Act’’. 15
698-SEC. 2702. CROWDFUNDING REVISIONS. 16
823+DVOCATE FORSMALLBUSINESSCAPITALFORMA-16
824+TIONREPORT.—The Advocate for Small Business Capital 17
825+Formation shall issue a report to Congress and the Securi-18
826+ties and Exchange Commission— 19
827+(1) examining the access to banking services for 20
828+venture funds and companies funded by venture cap-21
829+ital, in light of the failure of Silicon Valley Bank, es-22
830+pecially those funds and companies located outside of 23
831+the established technology and venture capital hubs of 24
832+California, Massachusetts, and New York; and 25
833+VerDate Sep 11 2014 23:34 Jul 17, 2023 Jkt 039200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6203 E:\BILLS\H2799.RH H2799
834+pbinns on DSKJLVW7X2PROD with $$_JOB 30
835+•HR 2799 RH
836+(2) containing any policy recommendations of 1
837+the Advocate. 2
838+TITLE VII—IMPROVING 3
839+CROWDFUNDING OPPORTUNI-4
840+TIES 5
841+SEC. 2701. SHORT TITLE. 6
842+This title may be cited as the ‘‘Improving 7
843+Crowdfunding Opportunities Act’’. 8
844+SEC. 2702. CROWDFUNDING REVISIONS. 9
699845 (a) E
700-XEMPTIONFROMSTATEREGULATION.—Sec-17
701-tion 18(b)(4)(A) of the Securities Act of 1933 (15 U.S.C. 18
702-77r(b)(4)(A)) is amended by striking ‘‘pursuant to sec-19
703-tion’’ and all that follows through the semicolon at the 20
704-end and inserting the following: ‘‘pursuant to— 21
705-‘‘(i) section 13 or 15(d) of the Securi-22
706-ties Exchange Act of 1934 (15 U.S.C. 23
707-78m, 78o(d)); or 24 27
708-•HR 2799 EH
709-‘‘(ii) section 4A(b) or any regulation 1
710-issued under that section;’’. 2
846+XEMPTIONFROMSTATEREGULATION.—Section 10
847+18(b)(4)(A) of the Securities Act of 1933 (15 U.S.C. 11
848+77r(b)(4)(A)) is amended by striking ‘‘pursuant to section’’ 12
849+and all that follows through the semicolon at the end and 13
850+inserting the following: ‘‘pursuant to— 14
851+‘‘(i) section 13 or 15(d) of the Securi-15
852+ties Exchange Act of 1934 (15 U.S.C. 78m, 16
853+78o(d)); or 17
854+‘‘(ii) section 4A(b) or any regulation 18
855+issued under that section;’’. 19
711856 (b) L
712-IABILITY FORMATERIALMISSTATEMENTS AND 3
857+IABILITY FORMATERIALMISSTATEMENTS AND 20
713858 O
714-MISSIONS.—Section 4A(c) of the Securities Act of 1933 4
715-(15 U.S.C. 77d–1(c)) is amended— 5
716-(1) by redesignating paragraph (3) as para-6
717-graph (4); and 7
718-(2) by inserting after paragraph (2) the fol-8
719-lowing: 9
859+MISSIONS.—Section 4A(c) of the Securities Act of 1933 21
860+(15 U.S.C. 77d–1(c)) is amended— 22
861+(1) by redesignating paragraph (3) as para-23
862+graph (4); and 24
863+VerDate Sep 11 2014 23:34 Jul 17, 2023 Jkt 039200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6203 E:\BILLS\H2799.RH H2799
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865+•HR 2799 RH
866+(2) by inserting after paragraph (2) the fol-1
867+lowing: 2
720868 ‘‘(3) L
721-IABILITY OF FUNDING PORTALS .—For 10
722-the purposes of this subsection, a funding portal, as 11
723-that term is defined in section 3(a) of the Securities 12
724-Exchange Act of 1934 (15 U.S.C. 78c(a)), shall not 13
725-be considered to be an issuer unless, in connection 14
726-with the offer or sale of a security, the funding por-15
727-tal knowingly— 16
728-‘‘(A) makes any untrue statement of a ma-17
729-terial fact or omits to state a material fact in 18
730-order to make the statements made, in light of 19
731-the circumstances under which they are made, 20
732-not misleading; or 21
733-‘‘(B) engages in any act, practice, or 22
734-course of business which operates or would op-23
735-erate as a fraud or deceit upon any person.’’. 24 28
736-•HR 2799 EH
737-(c) APPLICABILITY OF BANKSECRECYACTRE-1
738-QUIREMENTS.— 2
869+IABILITY OF FUNDING PORTALS .—For the 3
870+purposes of this subsection, a funding portal, as that 4
871+term is defined in section 3(a) of the Securities Ex-5
872+change Act of 1934 (15 U.S.C. 78c(a)), shall not be 6
873+considered to be an issuer unless, in connection with 7
874+the offer or sale of a security, the funding portal 8
875+knowingly— 9
876+‘‘(A) makes any untrue statement of a ma-10
877+terial fact or omits to state a material fact in 11
878+order to make the statements made, in light of 12
879+the circumstances under which they are made, 13
880+not misleading; or 14
881+‘‘(B) engages in any act, practice, or course 15
882+of business which operates or would operate as a 16
883+fraud or deceit upon any person.’’. 17
884+(c) A
885+PPLICABILITY OFBANKSECRECYACTREQUIRE-18
886+MENTS.— 19
739887 (1) S
740-ECURITIES ACT OF 1933.—Section 4A(a) of 3
741-the Securities Act of 1933 (15 U.S.C. 77d–1(a)) is 4
742-amended— 5
743-(A) in paragraph (11), by striking ‘‘and’’ 6
744-at the end; 7
745-(B) in paragraph (12), by striking the pe-8
746-riod at the end and inserting ‘‘; and’’; and 9
747-(C) by adding at the end the following: 10
748-‘‘(13) not be subject to the recordkeeping and 11
749-reporting requirements relating to monetary instru-12
750-ments under subchapter II of chapter 53 of title 31, 13
751-United States Code.’’. 14
888+ECURITIES ACT OF 1933.—Section 4A(a) of 20
889+the Securities Act of 1933 (15 U.S.C. 77d–1(a)) is 21
890+amended— 22
891+(A) in paragraph (11), by striking ‘‘and’’ 23
892+at the end; 24
893+VerDate Sep 11 2014 23:34 Jul 17, 2023 Jkt 039200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6203 E:\BILLS\H2799.RH H2799
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895+•HR 2799 RH
896+(B) in paragraph (12), by striking the pe-1
897+riod at the end and inserting ‘‘; and’’; and 2
898+(C) by adding at the end the following: 3
899+‘‘(13) not be subject to the recordkeeping and re-4
900+porting requirements relating to monetary instru-5
901+ments under subchapter II of chapter 53 of title 31, 6
902+United States Code.’’. 7
752903 (2) T
753-ITLE 31, UNITED STATES CODE .—Section 15
754-5312 of title 31, United States Code, is amended by 16
755-striking subsection (c) and inserting the following: 17
904+ITLE 31, UNITED STATES CODE .—Section 8
905+5312 of title 31, United States Code, is amended by 9
906+striking subsection (c) and inserting the following: 10
756907 ‘‘(c) A
757-DDITIONALCLARIFICATION.—The term ‘finan-18
758-cial institution’ (as defined in subsection (a))— 19
759-‘‘(1) includes any futures commission merchant, 20
760-commodity trading advisor, or commodity pool oper-21
761-ator registered, or required to register, under the 22
762-Commodity Exchange Act (7 U.S.C. 1 et seq.); and 23 29
763-•HR 2799 EH
764-‘‘(2) does not include a funding portal, as that 1
765-term is defined in section 3(a) of the Securities Ex-2
766-change Act of 1934 (15 U.S.C. 78c(a)).’’. 3
908+DDITIONALCLARIFICATION.—The term ‘finan-11
909+cial institution’ (as defined in subsection (a))— 12
910+‘‘(1) includes any futures commission merchant, 13
911+commodity trading advisor, or commodity pool oper-14
912+ator registered, or required to register, under the 15
913+Commodity Exchange Act (7 U.S.C. 1 et seq.); and 16
914+‘‘(2) does not include a funding portal, as that 17
915+term is defined in section 3(a) of the Securities Ex-18
916+change Act of 1934 (15 U.S.C. 78c(a)).’’. 19
767917 (d) P
768-ROVISION OFIMPERSONALINVESTMENTAD-4
769-VICE ANDRECOMMENDATIONS .—Section 3(a) of the Secu-5
770-rities Exchange Act of 1934 (15 U.S.C. 78c(a)) is amend-6
771-ed— 7
772-(1) by redesignating the second paragraph (80) 8
773-(relating to funding portals) as paragraph (81); and 9
774-(2) in paragraph (81)(A), as so redesignated, 10
775-by inserting after ‘‘recommendations’’ the following: 11
776-‘‘(other than by providing impersonal investment ad-12
777-vice by means of written material, or an oral state-13
778-ment, that does not purport to meet the objectives 14
779-or needs of a specific individual or account)’’. 15
918+ROVISION OFIMPERSONALINVESTMENTADVICE 20
919+ANDRECOMMENDATIONS.—Section 3(a) of the Securities 21
920+Exchange Act of 1934 (15 U.S.C. 78c(a)) is amended— 22
921+(1) by redesignating the second paragraph (80) 23
922+(relating to funding portals) as paragraph (81); and 24
923+VerDate Sep 11 2014 23:34 Jul 17, 2023 Jkt 039200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6203 E:\BILLS\H2799.RH H2799
924+pbinns on DSKJLVW7X2PROD with $$_JOB 33
925+•HR 2799 RH
926+(2) in paragraph (81)(A), as so redesignated, by 1
927+inserting after ‘‘recommendations’’ the following: 2
928+‘‘(other than by providing impersonal investment ad-3
929+vice by means of written material, or an oral state-4
930+ment, that does not purport to meet the objectives or 5
931+needs of a specific individual or account)’’. 6
780932 (e) T
781-ARGETAMOUNTS OFCERTAINEXEMPTEDOF-16
782-FERINGS.—The Securities and Exchange Commission 17
783-shall amend paragraph (t)(1) of section 227.201 of title 18
784-17, Code of Federal Regulations so that such paragraph 19
785-applies with respect to an issuer offering or selling securi-20
786-ties in reliance on section 4(a)(6) of the Securities Act 21
787-of 1933 (15 U.S.C. 77d(a)(6)) if— 22
788-(1) the offerings of such issuer, together with 23
789-all other amounts sold under such section 4(a)(6) 24
790-within the preceding 12-month period, have, in the 25 30
791-•HR 2799 EH
792-aggregate, a target amount of more than $124,000 1
793-but not more than $250,000; 2
794-(2) the financial statements of such issuer that 3
795-have either been reviewed or audited by a public ac-4
796-countant that is independent of the issuer are un-5
797-available at the time of filing; and 6
798-(3) such issuer provides a statement that finan-7
799-cial information certified by the principal executive 8
800-officer of the issuer has been provided instead of fi-9
801-nancial statements reviewed by a public accountant 10
802-that is independent of the issuer. 11
933+ARGETAMOUNTS OFCERTAINEXEMPTEDOFFER-7
934+INGS.—The Securities and Exchange Commission shall 8
935+amend paragraph (t)(1) of section 227.201 of title 17, Code 9
936+of Federal Regulations so that such paragraph applies with 10
937+respect to an issuer offering or selling securities in reliance 11
938+on section 4(a)(6) of the Securities Act of 1933 (15 U.S.C. 12
939+77d(a)(6)) if— 13
940+(1) the offerings of such issuer, together with all 14
941+other amounts sold under such section 4(a)(6) within 15
942+the preceding 12-month period, have, in the aggregate, 16
943+a target amount of more than $124,000 but not more 17
944+than $250,000; 18
945+(2) the financial statements of such issuer that 19
946+have either been reviewed or audited by a public ac-20
947+countant that is independent of the issuer are un-21
948+available at the time of filing; and 22
949+(3) such issuer provides a statement that finan-23
950+cial information certified by the principal executive 24
951+officer of the issuer has been provided instead of fi-25
952+VerDate Sep 11 2014 23:34 Jul 17, 2023 Jkt 039200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6203 E:\BILLS\H2799.RH H2799
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954+•HR 2799 RH
955+nancial statements reviewed by a public accountant 1
956+that is independent of the issuer. 2
803957 (f) E
804-XEMPTIONAVAILABLE TOINVESTMENTCOMPA-12
805-NIES.—Section 4A(f) of the Securities Act of 1933 (15 13
806-U.S.C. 77d–1(f)) is amended— 14
807-(1) in paragraph (2), by inserting ‘‘or’’ after 15
808-the semicolon; 16
809-(2) by striking paragraph (3); and 17
810-(3) by redesignating paragraph (4) as para-18
811-graph (3). 19
958+XEMPTIONAVAILABLE TOINVESTMENTCOMPA-3
959+NIES.—Section 4A(f) of the Securities Act of 1933 (15 4
960+U.S.C. 77d–1(f)) is amended— 5
961+(1) in paragraph (2), by inserting ‘‘or’’ after the 6
962+semicolon; 7
963+(2) by striking paragraph (3); and 8
964+(3) by redesignating paragraph (4) as para-9
965+graph (3). 10
812966 (g) N
813-ON-ACCREDITEDINVESTORREQUIREMENTS.— 20
814-Section 4(a)(6) of the Securities Act of 1933 (15 U.S.C. 21
815-77d(a)(6))) is amended— 22
816-(1) in subparagraph (A), by striking 23
817-‘‘$1,000,000’’ and inserting ‘‘$10,000,000’’; and 24 31
818-•HR 2799 EH
819-(2) in subparagraph (B), by striking ‘‘does not 1
820-exceed’’ and all that follows through ‘‘more than 2
821-$100,000’’ and inserting ‘‘does not exceed 10 per-3
822-cent of the annual income or net worth of such in-4
823-vestor’’. 5
967+ON-ACCREDITEDINVESTORREQUIREMENTS.— 11
968+Section 4(a)(6) of the Securities Act of 1933 (15 U.S.C. 12
969+77d(a)(6))) is amended— 13
970+(1) in subparagraph (A), by striking 14
971+‘‘$1,000,000’’ and inserting ‘‘$10,000,000’’; and 15
972+(2) in subparagraph (B), by striking ‘‘does not 16
973+exceed’’ and all that follows through ‘‘more than 17
974+$100,000’’ and inserting ‘‘does not exceed 10 percent 18
975+of the annual income or net worth of such investor’’. 19
824976 (h) T
825-ECHNICALCORRECTION.—The Securities Act of 6
826-1933 (15 U.S.C. 77a et seq.) is amended— 7
827-(1) by striking the term ‘‘section 4(6)’’ each 8
828-place such term appears and inserting ‘‘section 9
829-4(a)(6)’’; 10
830-(2) by striking the term ‘‘section 4(6)(B)’’ each 11
831-place such term appears and inserting ‘‘section 12
832-4(a)(6)(B)’’; 13
833-(3) in section 4A(f), by striking ‘‘Section 4(6)’’ 14
834-and inserting ‘‘Section 4(a)(6)’’; and 15
835-(4) in section 18(b)(4)(A), by striking ‘‘section 16
836-4’’ and inserting ‘‘section 4(a)’’. 17
837-TITLE VIII—RESTORING THE 18
838-SECONDARY TRADING MARKET 19
839-SEC. 2801. SHORT TITLE. 20
840-This title may be cited as the ‘‘Restoring the Sec-21
841-ondary Trading Market Act’’. 22
842-SEC. 2802. EXEMPTION FROM STATE REGULATION. 23
843-Section 18(a) of the Securities Act of 1933 (15 24
844-U.S.C. 77r(a)) is amended— 25 32
845-•HR 2799 EH
846-(1) in paragraph (2), by striking ‘‘or’’ at the 1
847-end; 2
848-(2) in paragraph (3), by striking the period at 3
849-the end and inserting ‘‘; or’’; and 4
850-(3) by adding at the end the following: 5
851-‘‘(4) shall directly or indirectly prohibit, limit, 6
852-or impose any conditions upon the off-exchange sec-7
853-ondary trading (as such term is defined by the Com-8
854-mission) in securities of an issuer that makes cur-9
855-rent information publicly available, including— 10
856-‘‘(A) the information required in the peri-11
857-odic and current reports described under para-12
858-graph (b) of section 230.257 of title 17, Code 13
859-of Federal Regulations; or 14
860-‘‘(B) the documents and information re-15
861-quired with respect to Tier 2 offerings, as de-16
862-fined in section 230.251(a) of title 17, Code of 17
863-Federal Regulations.’’. 18
864-DIVISION C—INCREASING 19
865-ACCESS TO PRIVATE MARKETS 20
866-TITLE I—GIG WORKER EQUITY 21
867-COMPENSATION 22
868-SEC. 3101. SHORT TITLE. 23
869-This title may be cited as the ‘‘Gig Worker Equity 24
870-Compensation Act’’. 25 33
871-•HR 2799 EH
872-SEC. 3102. EXTENSION OF RULE 701. 1
977+ECHNICALCORRECTION.—The Securities Act of 20
978+1933 (15 U.S.C. 77a et seq.) is amended— 21
979+(1) by striking the term ‘‘section 4(6)’’ each place 22
980+such term appears and inserting ‘‘section 4(a)(6)’’; 23
981+VerDate Sep 11 2014 23:34 Jul 17, 2023 Jkt 039200 PO 00000 Frm 00034 Fmt 6652 Sfmt 6203 E:\BILLS\H2799.RH H2799
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983+•HR 2799 RH
984+(2) by striking the term ‘‘section 4(6)(B)’’ each 1
985+place such term appears and inserting ‘‘section 2
986+4(a)(6)(B)’’; and 3
987+(3) in section 4A(f), by striking ‘‘Section 4(6)’’ 4
988+and inserting ‘‘Section 4(a)(6)’’. 5
989+TITLE VIII—RESTORING THE 6
990+SECONDARY TRADING MARKET 7
991+SEC. 2801. SHORT TITLE. 8
992+This title may be cited as the ‘‘Restoring the Secondary 9
993+Trading Market Act’’. 10
994+SEC. 2802. EXEMPTION FROM STATE REGULATION. 11
995+Section 18(a) of the Securities Act of 1933 (15 U.S.C. 12
996+77r(a)) is amended— 13
997+(1) in paragraph (2), by striking ‘‘or’’ at the 14
998+end; 15
999+(2) in paragraph (3), by striking the period at 16
1000+the end and inserting ‘‘; or’’; and 17
1001+(3) by adding at the end the following: 18
1002+‘‘(4) shall directly or indirectly prohibit, limit, 19
1003+or impose any conditions upon the off-exchange sec-20
1004+ondary trading (as such term is defined by the Com-21
1005+mission) in securities of an issuer that makes current 22
1006+information publicly available, including— 23
1007+‘‘(A) the information required in the peri-24
1008+odic and current reports described under para-25
1009+VerDate Sep 11 2014 23:34 Jul 17, 2023 Jkt 039200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6203 E:\BILLS\H2799.RH H2799
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1011+•HR 2799 RH
1012+graph (b) of section 230.257 of title 17, Code of 1
1013+Federal Regulations; or 2
1014+‘‘(B) the documents and information re-3
1015+quired with respect to Tier 2 offerings, as defined 4
1016+in section 230.251(a) of title 17, Code of Federal 5
1017+Regulations.’’. 6
1018+DIVISION C—INCREASING 7
1019+ACCESS TO PRIVATE MARKETS 8
1020+TITLE I—GIG WORKER EQUITY 9
1021+COMPENSATION 10
1022+SEC. 3101. SHORT TITLE. 11
1023+This title may be cited as the ‘‘Gig Worker Equity 12
1024+Compensation Act’’. 13
1025+SEC. 3102. EXTENSION OF RULE 701. 14
8731026 (a) I
874-NGENERAL.—The exemption provided under 2
875-section 230.701 of title 17, Code of Federal Regulations, 3
876-shall apply to individuals (other than employees) providing 4
877-goods for sale, labor, or services for remuneration to either 5
878-an issuer or to customers of an issuer to the same extent 6
879-as such exemptions apply to employees of the issuer. For 7
880-purposes of the previous sentence, the term ‘‘customers’’ 8
881-may, at the election of an issuer, include users of the 9
882-issuer’s platform. 10
1027+NGENERAL.—The exemption provided under sec-15
1028+tion 230.701 of title 17, Code of Federal Regulations, shall 16
1029+apply to individuals (other than employees) providing 17
1030+goods for sale, labor, or services for remuneration to either 18
1031+an issuer or to customers of an issuer to the same extent 19
1032+as such exemptions apply to employees of the issuer. For 20
1033+purposes of the previous sentence, the term ‘‘customers’’ 21
1034+may, at the election of an issuer, include users of the issuer’s 22
1035+platform. 23
8831036 (b) A
884-DJUSTMENT FOR INFLATION.—The Securities 11
885-and Exchange Commission shall annually adjust the dollar 12
886-figure under section 230.701(e) of title 17, Code of Fed-13
887-eral Regulations, to reflect the percentage change in the 14
888-Consumer Price Index for All Urban Consumers published 15
889-by the Bureau of Labor Statistics of the Department of 16
890-Labor. 17
1037+DJUSTMENT FORINFLATION.—The Securities and 24
1038+Exchange Commission shall annually adjust the dollar fig-25
1039+VerDate Sep 11 2014 23:34 Jul 17, 2023 Jkt 039200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6203 E:\BILLS\H2799.RH H2799
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1041+•HR 2799 RH
1042+ure under section 230.701(e) of title 17, Code of Federal 1
1043+Regulations, to reflect the percentage change in the Con-2
1044+sumer Price Index for All Urban Consumers published by 3
1045+the Bureau of Labor Statistics of the Department of Labor. 4
8911046 (c) R
892-ULEMAKING.—The Securities and Exchange 18
893-Commission— 19
894-(1) shall revise section 230.701 of title 17, 20
895-Code of Federal Regulations, to reflect the require-21
896-ments of this section; and 22
897-(2) may not revise such section 230.701 in any 23
898-manner that would have the effect of restricting ac-24
899-cess to equity compensation for employees or individ-25
900-uals described under subsection (a). 26 34
901-•HR 2799 EH
902-SEC. 3103. GAO STUDY. 1
903-Not later than the end of the 3-year period beginning 2
904-on the date of enactment of this Act, the Comptroller Gen-3
905-eral of the United States shall carry out a study on the 4
906-effects of this title and submit a report on such study to 5
907-the Congress. 6
908-TITLE II—INVESTMENT 7
909-OPPORTUNITY EXPANSION 8
910-SEC. 3201. SHORT TITLE. 9
911-This title may be cited as the ‘‘Investment Oppor-10
912-tunity Expansion Act’’. 11
913-SEC. 3202. INVESTMENT THRESHOLDS TO QUALIFY AS AN 12
914-ACCREDITED INVESTOR. 13
915-Section 2(a)(15) of the Securities Act of 1933 (15 14
916-U.S.C. 77b(a)(15)) is amended— 15
917-(1) by striking ‘‘(15) The term ‘accredited in-16
918-vestor’ shall mean—’’ and inserting the following: 17
1047+ULEMAKING.—The Securities and Exchange Com-5
1048+mission— 6
1049+(1) shall revise section 230.701 of title 17, Code 7
1050+of Federal Regulations, to reflect the requirements of 8
1051+this section; and 9
1052+(2) may not revise such section 230.701 in any 10
1053+manner that would have the effect of restricting access 11
1054+to equity compensation for employees or individuals 12
1055+described under subsection (a). 13
1056+SEC. 3103. PREEMPTION OF CERTAIN PROVISIONS OF 14
1057+STATE LAW. 15
1058+Any provision of a State law with respect to wage 16
1059+rates or benefits that creates a presumption that an indi-17
1060+vidual providing goods for sale, labor, or services for remu-18
1061+neration for a person is an employee of such person under 19
1062+such law is preempted. 20
1063+SEC. 3104. GAO STUDY. 21
1064+Not later than the end of the 3-year period beginning 22
1065+on the date of enactment of this Act, the Comptroller Gen-23
1066+eral of the United States shall carry out a study on the 24
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1069+•HR 2799 RH
1070+effects of this title and submit a report on such study to 1
1071+the Congress. 2
1072+TITLE II—INVESTMENT 3
1073+OPPORTUNITY EXPANSION 4
1074+SEC. 3201. SHORT TITLE. 5
1075+This title may be cited as the ‘‘Investment Opportunity 6
1076+Expansion Act’’. 7
1077+SEC. 3202. INVESTMENT THRESHOLDS TO QUALIFY AS AN 8
1078+ACCREDITED INVESTOR. 9
1079+Section 2(a)(15) of the Securities Act of 1933 (15 10
1080+U.S.C. 77b(a)(15)) is amended— 11
1081+(1) by striking ‘‘(15) The term ‘accredited inves-12
1082+tor’ shall mean—’’ and inserting the following: 13
9191083 ‘‘(15) A
920-CCREDITED INVESTOR.— 18
1084+CCREDITED INVESTOR.— 14
9211085 ‘‘(A) I
922-N GENERAL.—The term ‘accredited 19
923-investor’ means—’’; 20
924-(2) in clause (i), by striking ‘‘or’’ at the end; 21
925-(3) in clause (ii), by striking the period at the 22
926-end and inserting a semicolon; and 23
927-(4) by adding at the end the following: 24
928-‘‘(iii) with respect to a proposed 25
929-transaction, any individual whose aggre-26 35
930-•HR 2799 EH
931-gate investment, at the completion of such 1
932-transaction, in securities with respect to 2
933-which there has not been a public offering 3
934-is not more than 10 percent of the greater 4
935-of— 5
936-‘‘(I) the net assets of the indi-6
937-vidual; or 7
938-‘‘(II) the annual income of the 8
939-individual;’’. 9
940-TITLE III—RISK DISCLOSURE 10
941-AND INVESTOR ATTESTATION 11
942-SEC. 3301. SHORT TITLE. 12
943-This title may be cited as the ‘‘Risk Disclosure and 13
944-Investor Attestation Act’’. 14
945-SEC. 3302. INVESTOR ATTESTATION. 15
1086+N GENERAL.—The term ‘accredited 15
1087+investor’ means—’’; 16
1088+(2) in clause (i), by striking ‘‘or’’ at the end; 17
1089+(3) in clause (ii), by striking the period at the 18
1090+end and inserting a semicolon; and 19
1091+(4) by adding at the end the following: 20
1092+‘‘(iii) with respect to a proposed trans-21
1093+action, any individual whose aggregate in-22
1094+vestment, at the completion of such trans-23
1095+action, in securities with respect to which 24
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1098+•HR 2799 RH
1099+there has not been a public offering is not 1
1100+more than 10 percent of the greater of— 2
1101+‘‘(I) the net assets of the indi-3
1102+vidual; or 4
1103+‘‘(II) the annual income of the in-5
1104+dividual;’’. 6
1105+TITLE III—RISK DISCLOSURE 7
1106+AND INVESTOR ATTESTATION 8
1107+SEC. 3301. SHORT TITLE. 9
1108+This title may be cited as the ‘‘Risk Disclosure and 10
1109+Investor Attestation Act’’. 11
1110+SEC. 3302. INVESTOR ATTESTATION. 12
9461111 (a) I
947-NGENERAL.—Section 2(a)(15) of the Securities 16
948-Act of 1933 (15 U.S.C. 77b(a)(15)), as amended by sec-17
949-tion 3202, is further amended by adding at the end the 18
950-following: 19
951-‘‘(iv) with respect to an issuer, any in-20
952-dividual that has attested to the issuer 21
953-that the individual understands the risks of 22
954-investment in private issuers, using such 23
955-form as the Commission shall establish, by 24 36
956-•HR 2799 EH
957-rule, but which form may not be longer 1
958-than 2 pages in length; or’’. 2
1112+NGENERAL.—Section 2(a)(15) of the Securities 13
1113+Act of 1933 (15 U.S.C. 77b(a)(15)), as amended by section 14
1114+3202, is further amended by adding at the end the fol-15
1115+lowing: 16
1116+‘‘(iv) with respect to an issuer, any in-17
1117+dividual that has attested to the issuer that 18
1118+the individual understands the risks of in-19
1119+vestment in private issuers, using such form 20
1120+as the Commission shall establish, by rule, 21
1121+but which form may not be longer than 2 22
1122+pages in length; or’’. 23
9591123 (b) R
960-ULEMAKING.—Not later than the end of the 1- 3
961-year period beginning on the date of enactment of this 4
962-Act, the Securities and Exchange Commission shall issue 5
963-rules to carry out the amendments made by subsection (a), 6
964-including establishing the form required under such 7
965-amendments. 8
966-TITLE IV—ACCREDITED INVES-9
967-TORS INCLUDE INDIVIDUALS 10
968-RECEIVING ADVICE FROM 11
969-CERTAIN PROFESSIONALS 12
970-SEC. 3401. ACCREDITED INVESTORS INCLUDE INDIVIDUALS 13
971-RECEIVING ADVICE FROM CERTAIN PROFES-14
972-SIONALS. 15
1124+ULEMAKING.—Not later than the end of the 1- 24
1125+year period beginning on the date of enactment of this Act, 25
1126+VerDate Sep 11 2014 23:34 Jul 17, 2023 Jkt 039200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6203 E:\BILLS\H2799.RH H2799
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1128+•HR 2799 RH
1129+the Securities and Exchange Commission shall issue rules 1
1130+to carry out the amendments made by subsection (a), in-2
1131+cluding establishing the form required under such amend-3
1132+ments. 4
1133+TITLE IV—ACCREDITED INVES-5
1134+TORS INCLUDE INDIVIDUALS 6
1135+RECEIVING ADVICE FROM 7
1136+CERTAIN PROFESSIONALS 8
1137+SEC. 3401. ACCREDITED INVESTORS INCLUDE INDIVIDUALS 9
1138+RECEIVING ADVICE FROM CERTAIN PROFES-10
1139+SIONALS. 11
9731140 (a) S
974-ECURITIESACT OF1933.—Section 2(a)(15) of 16
975-the Securities Act of 1933 (15 U.S.C. 77b(a)(15)), as 17
976-amended by sections 3202 and 3302, is further amended 18
977-by adding at the end the following: 19
978-‘‘(v) any individual receiving individ-20
979-ualized investment advice or individualized 21
980-investment recommendations with respect 22
981-to the applicable transaction from an indi-23
982-vidual described under section 24 37
983-•HR 2799 EH
984-203.501(a)(10) of title 17, Code of Federal 1
985-Regulations. 2
1141+ECURITIESACT OF1933.—Section 2(a)(15) of the 12
1142+Securities Act of 1933 (15 U.S.C. 77b(a)(15)), as amended 13
1143+by sections 3202 and 3302, is further amended by adding 14
1144+at the end the following: 15
1145+‘‘(v) any individual receiving individ-16
1146+ualized investment advice or individualized 17
1147+investment recommendations with respect to 18
1148+the applicable transaction from an indi-19
1149+vidual described under section 20
1150+203.501(a)(10) of title 17, Code of Federal 21
1151+Regulations. 22
9861152 ‘‘(B) D
987-EFINITIONS.—In subparagraph 3
988-(A)(v): 4
989-‘‘(i) I
990-NVESTMENT ADVICE .—The term 5
991-‘investment advice’ shall be interpreted 6
992-consistently with the interpretation of the 7
993-phrase ‘engages in the business of advising 8
994-others, either directly or through publica-9
995-tions or writings, as to the value of securi-10
996-ties or as to the advisability of investing in, 11
997-purchasing, or selling securities’ under sec-12
998-tion 202(a)(11) of the Investment Advisers 13
999-Act of 1940 (15 U.S.C. 80b–2(a)(11)). 14
1153+EFINITIONS.—In subparagraph 23
1154+(A)(v): 24
1155+VerDate Sep 11 2014 23:34 Jul 17, 2023 Jkt 039200 PO 00000 Frm 00040 Fmt 6652 Sfmt 6203 E:\BILLS\H2799.RH H2799
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1157+•HR 2799 RH
1158+‘‘(i) INVESTMENT ADVICE.—The term 1
1159+‘investment advice’ shall be interpreted con-2
1160+sistently with the interpretation of the 3
1161+phrase ‘engages in the business of advising 4
1162+others, either directly or through publica-5
1163+tions or writings, as to the value of securi-6
1164+ties or as to the advisability of investing in, 7
1165+purchasing, or selling securities’ under sec-8
1166+tion 202(a)(11) of the Investment Advisers 9
1167+Act of 1940 (15 U.S.C. 80b–2(a)(11)). 10
10001168 ‘‘(ii) I
1001-NVESTMENT RECOMMENDA -15
1002-TION.—The term ‘investment recommenda-16
1003-tion’ shall be interpreted consistently with 17
1004-the interpretation of the term ‘rec-18
1005-ommendation’ under section 240.15l-1 of 19
1006-title 17, Code of Federal Regulations.’’. 20
1169+NVESTMENT RECOMMENDA -11
1170+TION.—The term ‘investment recommenda-12
1171+tion’ shall be interpreted consistently with 13
1172+the interpretation of the term ‘recommenda-14
1173+tion’ under section 240.15l-1 of title 17, 15
1174+Code of Federal Regulations.’’. 16
10071175 (b) C
1008-ONFORMINGCHANGES TOREGULATIONS.—The 21
1009-Securities and Exchange Commission shall revise section 22
1010-203.501(a) of title 17, Code of Federal Regulations, and 23
1011-any other definition of ‘‘accredited investor’’ in a rule of 24 38
1012-•HR 2799 EH
1013-the Commission in the same manner as such definition 1
1014-is revised under subsection (a). 2
1015-DIVISION D—HELPING ANGELS 3
1016-LEAD OUR STARTUPS 4
1017-SEC. 4001. CLARIFICATION OF GENERAL SOLICITATION. 5
1018-(a) D
1019-EFINITIONS.—For purposes of this section and 6
1020-the revision of rules required under this section: 7
1021-(1) A
1022-NGEL INVESTOR GROUP .—The term 8
1023-‘‘angel investor group’’ means any group that— 9
1024-(A) is composed of accredited investors in-10
1025-terested in investing personal capital in early- 11
1026-stage companies; 12
1027-(B) holds regular meetings and has defined 13
1028-processes and procedures for making invest-14
1029-ment decisions, either individually or among the 15
1030-membership of the group as a whole; and 16
1031-(C) is neither associated nor affiliated with 17
1032-brokers, dealers, or investment advisers. 18
1033-(2) I
1034-SSUER.—The term ‘‘issuer’’ means an 19
1035-issuer that is a business, is not in bankruptcy or re-20
1036-ceivership, is not an investment company, and is not 21
1037-a blank check, blind pool, or shell company. 22
1038-(b) I
1039-NGENERAL.—Not later than 6 months after the 23
1040-date of enactment of this Act, the Securities and Ex-24
1041-change Commission shall revise Regulation D (17 CFR 25 39
1042-•HR 2799 EH
1043-230.500 et seq.) to require that in carrying out the prohi-1
1044-bition against general solicitation or general advertising 2
1045-contained in section 230.502(c) of title 17, Code of Fed-3
1046-eral Regulations, the prohibition shall not apply to a pres-4
1047-entation or other communication made by or on behalf of 5
1048-an issuer which is made at an event— 6
1049-(1) sponsored by— 7
1050-(A) the United States or any territory 8
1051-thereof, the District of Columbia, any State, a 9
1052-political subdivision of any State or territory, or 10
1053-any agency or public instrumentality of any of 11
1054-the foregoing; 12
1055-(B) a college, university, or other institu-13
1056-tion of higher education; 14
1057-(C) a nonprofit organization; 15
1058-(D) an angel investor group; 16
1059-(E) a venture forum, venture capital asso-17
1060-ciation, or trade association; or 18
1061-(F) any other group, person, or entity as 19
1062-the Securities and Exchange Commission may 20
1063-determine by rule; 21
1064-(2) where any advertising for the event does not 22
1065-reference any specific offering of securities by the 23
1066-issuer; 24
1067-(3) the sponsor of which— 25 40
1068-•HR 2799 EH
1069-(A) does not make investment rec-1
1070-ommendations or provide investment advice to 2
1071-event attendees; 3
1072-(B) does not engage in an active role in 4
1073-any investment negotiations between the issuer 5
1074-and investors attending the event; 6
1075-(C) does not charge event attendees any 7
1076-fees other than reasonable administrative fees; 8
1077-(D) does not receive any compensation for 9
1078-making introductions between investors attend-10
1079-ing the event and issuers, or for investment ne-11
1080-gotiations between such parties; 12
1081-(E) makes readily available to attendees a 13
1082-disclosure not longer than one page in length, 14
1083-as prescribed by the Securities and Exchange 15
1084-Commission, describing the nature of the event 16
1085-and the risks of investing in the issuers pre-17
1086-senting at the event; and 18
1087-(F) does not receive any compensation 19
1088-with respect to such event that would require 20
1089-registration of the sponsor as a broker or a 21
1090-dealer under the Securities Exchange Act of 22
1091-1934, or as an investment advisor under the In-23
1092-vestment Advisers Act of 1940; and 24 41
1093-•HR 2799 EH
1094-(4) where no specific information regarding an 1
1095-offering of securities by the issuer is communicated 2
1096-or distributed by or on behalf of the issuer, other 3
1097-than— 4
1098-(A) that the issuer is in the process of of-5
1099-fering securities or planning to offer securities; 6
1100-(B) the type and amount of securities 7
1101-being offered; 8
1102-(C) the amount of securities being offered 9
1103-that have already been subscribed for; and 10
1104-(D) the intended use of proceeds of the of-11
1105-fering. 12
1106-(c) R
1107-ULE OFCONSTRUCTION.—Subsection (b) may 13
1108-only be construed as requiring the Securities and Ex-14
1109-change Commission to amend the requirements of Regula-15
1110-tion D with respect to presentations and communications, 16
1111-and not with respect to purchases or sales. 17
1112-(d) N
1113-OPRE-EXISTINGSUBSTANTIVERELATIONSHIP 18
1114-BYREASON OFEVENT.—Attendance at an event de-19
1115-scribed under subsection (b) shall not qualify, by itself, 20
1116-as establishing a pre-existing substantive relationship be-21
1117-tween an issuer and a purchaser, for purposes of Rule 22
1118-506(b). 23 42
1119-•HR 2799 EH
1120-DIVISION E—IMPROVING 1
1121-DISCLOSURE FOR INVESTORS 2
1122-SEC. 5001. SHORT TITLE. 3
1123-This division may be cited as the ‘‘Improving Disclo-4
1124-sure for Investors Act of 2024’’. 5
1125-SEC. 5002. ELECTRONIC DELIVERY. 6
1126-(a) P
1127-ROMULGATION OF RULES.—Not later than 180 7
1128-days after the date of the enactment of this section, the 8
1129-Securities and Exchange Commission shall propose and, 9
1130-not later than 1 year after the date of the enactment of 10
1131-this section, the Commission shall finalize, rules, regula-11
1132-tions, amendments, or interpretations, as appropriate, to 12
1133-allow a covered entity to satisfy the entity’s obligation to 13
1134-deliver regulatory documents required under the securities 14
1135-laws to investors using electronic delivery. 15
1136-(b) R
1137-EQUIREDPROVISIONS.—Rules, regulations, 16
1138-amendments, or interpretations the Commission promul-17
1139-gates pursuant to subsection (a) shall: 18
1140-(1) With respect to investors that do not receive 19
1141-all regulatory documents by electronic delivery, pro-20
1142-vide for— 21
1143-(A) delivery of an initial communication in 22
1144-paper form regarding electronic delivery; 23
1145-(B) a transition period not to exceed 180 24
1146-days until such regulatory documents are deliv-25 43
1147-•HR 2799 EH
1148-ered to such investors by electronic delivery; 1
1149-and 2
1150-(C) during a period not to exceed 2 years 3
1151-following the transition period set forth in sub-4
1152-paragraph (B), delivery of an annual notice in 5
1153-paper form solely reminding such investors of 6
1154-the ability to opt out of electronic delivery at 7
1155-any time and receive paper versions of regu-8
1156-latory documents. 9
1157-(2) Set forth requirements for the content of 10
1158-the initial communication described in paragraph 11
1159-(1)(A). 12
1160-(3) Set forth requirements for the timing of de-13
1161-livery of a notice of website availability of regulatory 14
1162-documents and the content of the appropriate notice 15
1163-described in subsection (h)(3)(B). 16
1164-(4) Provide a mechanism for investors to opt 17
1165-out of electronic delivery at any time and receive 18
1166-paper versions of regulatory documents. 19
1167-(5) Require measures reasonably designed to 20
1168-identify and remediate failed electronic deliveries of 21
1169-regulatory documents. 22
1170-(6) Set forth minimum requirements regarding 23
1171-readability and retainability for regulatory docu-24
1172-ments that are delivered electronically. 25 44
1173-•HR 2799 EH
1174-(7) For covered entities other than brokers, 1
1175-dealers, investment advisers registered with the 2
1176-Commission, and investment companies, require 3
1177-measures reasonably designed to ensure the con-4
1178-fidentiality of personal information in regulatory 5
1179-documents that are delivered to investors electroni-6
1180-cally. 7
1181-(c) R
1182-ULE OFCONSTRUCTION.—Nothing in this sec-8
1183-tion shall be construed as altering the substance or timing 9
1184-of any regulatory document obligation under the securities 10
1185-laws or regulations of a self-regulatory organization. 11
1186-(d) T
1187-REATMENT OFREVISIONSNOTCOMPLETED IN 12
1188-ATIMELYMANNER.—If the Commission fails to finalize 13
1189-the rules, regulations, amendments, or interpretations re-14
1190-quired under subsection (a) before the date specified in 15
1191-such subsection— 16
1192-(1) a covered entity may deliver regulatory doc-17
1193-uments using electronic delivery in accordance with 18
1194-subsections (b) and (c); and 19
1195-(2) such electronic delivery shall be deemed to 20
1196-satisfy the obligation of the covered entity to deliver 21
1197-regulatory documents required under the securities 22
1198-laws. 23
1199-(e) O
1200-THERREQUIREDACTIONS.— 24 45
1201-•HR 2799 EH
1202-(1) REVIEW OF RULES .—The Commission 1
1203-shall— 2
1204-(A) within 180 days of the date of enact-3
1205-ment of this Act, conduct a review of the rules 4
1206-and regulations of the Commission to determine 5
1207-whether any such rules or regulations require 6
1208-delivery of written documents to investors; and 7
1209-(B) within 1 year of the date of enactment 8
1210-of this Act, promulgate amendments to such 9
1211-rules or regulations to provide that any require-10
1212-ment to deliver a regulatory document ‘‘in writ-11
1213-ing’’ may be satisfied by electronic delivery. 12
1214-(2) A
1215-CTIONS BY SELF-REGULATORY ORGANIZA -13
1216-TIONS.—Each self-regulatory organization shall 14
1217-adopt rules and regulations, or amend the rules and 15
1218-regulations of the self-regulatory organization, con-16
1219-sistent with this Act and consistent with rules, regu-17
1220-lations, amendments, or interpretations finalized by 18
1221-the Commission pursuant to subsection (a). 19
1222-(3) R
1223-ULE OF APPLICATION .—This subsection 20
1224-shall not apply to a rule or regulation issued pursu-21
1225-ant to a Federal statute if that Federal statute spe-22
1226-cifically requires delivery of written documents to in-23
1227-vestors. 24
1228-(f) D
1229-EFINITIONS.—In this section: 25 46
1230-•HR 2799 EH
1231-(1) COMMISSION.—The term ‘‘Commission’’ 1
1232-means the Securities and Exchange Commission. 2
1233-(2) C
1234-OVERED ENTITY.—The term ‘‘covered en-3
1235-tity’’ means— 4
1236-(A) an investment company (as defined in 5
1237-section 3(a)(1) of the Investment Company Act 6
1238-of 1940 (15 U.S.C. 80a–3(a)(1))) that is reg-7
1239-istered under such Act; 8
1240-(B) a business development company (as 9
1241-defined in section 2(a) the Investment Company 10
1242-Act of 1940 (15 U.S.C. 80a–2(a))) that has 11
1243-elected to be regulated as such under such Act; 12
1244-(C) a registered broker or dealer (as de-13
1245-fined in section 3(a)(4) and section 3(a)(5) of 14
1246-the Securities Exchange Act of 1934) (15 15
1247-U.S.C. 78c(a)(4) & 78c(a)(5)); 16
1248-(D) a registered municipal securities dealer 17
1249-(as defined in section 3(a)(30) of the Securities 18
1250-Exchange Act of 1934) (15 U.S.C. 78c(a)(30)); 19
1251-(E) a registered government securities 20
1252-broker or government securities dealer (as de-21
1253-fined in section 3(a)(43) and section 3(a)(44) of 22
1254-the Securities Exchange Act of 1934) (15 23
1255-U.S.C. 78c(a)(43) & 78c(a)(44)); 24 47
1256-•HR 2799 EH
1257-(F) a registered investment adviser (as de-1
1258-fined in section 202(a)(11) of the Investment 2
1259-Advisers Act of 1940) (15 U.S.C. 80b– 3
1260-1(a)(11)); 4
1261-(G) a registered transfer agent (as defined 5
1262-in section 3(a)(25) of the Securities Exchange 6
1263-Act of 1934) (15 U.S.C. 78c(a)(25)); or 7
1264-(H) a registered funding portal (as defined 8
1265-in the second paragraph (80) of section 3(a) of 9
1266-the Securities Exchange Act of 1934) (15 10
1267-U.S.C. 78c(a)(80)). 11
1268-(3) E
1269-LECTRONIC DELIVERY .—The term ‘‘elec-12
1270-tronic delivery’’, with respect to regulatory docu-13
1271-ments, includes— 14
1272-(A) the direct delivery of such regulatory 15
1273-document to an electronic address of an inves-16
1274-tor; 17
1275-(B) the posting of such regulatory docu-18
1276-ment to a website and direct electronic delivery 19
1277-of an appropriate notice of the availability of 20
1278-the regulatory document to the investor; and 21
1279-(C) an electronic method reasonably de-22
1280-signed to ensure receipt of such regulatory doc-23
1281-ument by the investor. 24 48
1282-•HR 2799 EH
1283-(4) REGULATORY DOCUMENTS .—The term 1
1284-‘‘regulatory documents’’ includes— 2
1285-(A) prospectuses meeting the requirements 3
1286-of section 10(a) of the Securities Act of 1933 4
1287-(15 U.S.C. 77j(a)); 5
1288-(B) summary prospectuses meeting the re-6
1289-quirements of— 7
1290-(i) section 230.498 of title 17, Code of 8
1291-Federal Regulations; or 9
1292-(ii) section 230.498A of title 17, Code 10
1293-of Federal Regulations; 11
1294-(C) statements of additional information, 12
1295-as described under section 270.30e–3(h)(3) of 13
1296-title 17, Code of Federal Regulations; 14
1297-(D) annual and semi-annual reports to in-15
1298-vestors meeting the requirements of section 16
1299-30(e) of the Investment Company Act of 1940 17
1300-(15 U.S.C. 80a–29(e)); 18
1301-(E) notices meeting the requirements 19
1302-under section 270.19a–1 of title 17, Code of 20
1303-Federal Regulations; 21
1304-(F) confirmations and account statements 22
1305-meeting the requirements under section 23
1306-240.10b–10 of title 17, Code of Federal Regula-24
1307-tions; 25 49
1308-•HR 2799 EH
1309-(G) proxy statements meeting the require-1
1310-ments under section 240.14a–3 of title 17, 2
1311-Code of Federal Regulations; 3
1312-(H) privacy notices meeting the require-4
1313-ments of Regulation S–P under subpart A of 5
1314-part 248 of title 17, Code of Federal Regula-6
1315-tions; 7
1316-(I) affiliate marketing notices meeting the 8
1317-requirements of Regulation S–AM under sub-9
1318-part B of part 248 of title 17, Code of Federal 10
1319-Regulations; and 11
1320-(J) all other regulatory documents re-12
1321-quired to be delivered by covered entities to in-13
1322-vestors under the securities laws and the rules 14
1323-and regulations of the Commission and the self- 15
1324-regulatory organizations. 16
1325-(5) S
1326-ECURITIES LAWS.—The term ‘‘securities 17
1327-laws’’ has the meaning given the term in section 18
1328-3(a) of the Securities Exchange Act of 1934 (15 19
1329-U.S.C. 78c(a)). 20
1330-(6) S
1331-ELF-REGULATORY ORGANIZATION .—The 21
1332-term ‘‘self-regulatory organization’’ means— 22
1333-(A) a self-regulatory organization, as de-23
1334-fined in section 2(a)(26) of the Securities Ex-24 50
1335-•HR 2799 EH
1336-change Act of 1934 (15 U.S.C. 78c(a)(26)); 1
1337-and 2
1338-(B) the Municipal Securities Rulemaking 3
1339-Board. 4
1340-(7) W
1341-EBSITE.—The term ‘‘website’’ means an 5
1342-internet website or other digital, internet, or elec-6
1343-tronic-based information repository, such as a mobile 7
1344-application, to which an investor of a covered entity 8
1345-has been provided reasonable access. 9
1346-DIVISION F—ENHANCEMENT OF 10
1347-403(b) PLANS 11
1348-SEC. 6101. SHORT TITLE. 12
1349-This division may be cited as the ‘‘Retirement Fair-13
1350-ness for Charities and Educational Institutions Act of 14
1351-2024’’. 15
1352-SEC. 6102. ENHANCEMENT OF 403(b) PLANS. 16
1353-(a) A
1354-MENDMENTS TO THE INVESTMENTCOMPANY 17
1355-A
1356-CT OF1940.—Section 3(c)(11) of the Investment Com-18
1357-pany Act of 1940 (15 U.S.C. 80a–3(c)(11)) is amended 19
1358-to read as follows: 20
1359-‘‘(11) Any— 21
1360-‘‘(A) employee’s stock bonus, pension, or 22
1361-profit-sharing trust which meets the require-23
1362-ments for qualification under section 401 of the 24
1363-Internal Revenue Code of 1986; 25 51
1364-•HR 2799 EH
1365-‘‘(B) custodial account meeting the re-1
1366-quirements of section 403(b)(7) of such Code; 2
1367-‘‘(C) governmental plan described in sec-3
1368-tion 3(a)(2)(C) of the Securities Act of 1933; 4
1369-‘‘(D) collective trust fund maintained by a 5
1370-bank consisting solely of assets of one or 6
1371-more— 7
1372-‘‘(i) trusts described in subparagraph 8
1373-(A); 9
1374-‘‘(ii) government plans described in 10
1375-subparagraph (C); 11
1376-‘‘(iii) church plans, companies, or ac-12
1377-counts that are excluded from the defini-13
1378-tion of an investment company under para-14
1379-graph (14) of this subsection; or 15
1380-‘‘(iv) plans which meet the require-16
1381-ments of section 403(b) of the Internal 17
1382-Revenue Code of 1986— 18
1383-‘‘(I) if— 19
1384-‘‘(aa) such plan is subject to 20
1385-title I of the Employee Retire-21
1386-ment Income Security Act of 22
1387-1974 (29 U.S.C. 1001 et seq.); 23
1388-‘‘(bb) any employer making 24
1389-such plan available agrees to 25 52
1390-•HR 2799 EH
1391-serve as a fiduciary for the plan 1
1392-with respect to the selection of 2
1393-the plan’s investments among 3
1394-which participants can choose; or 4
1395-‘‘(cc) such plan is a govern-5
1396-mental plan (as defined in sec-6
1397-tion 414(d) of such Code); and 7
1398-‘‘(II) if the employer, a fiduciary 8
1399-of the plan, or another person acting 9
1400-on behalf of the employer reviews and 10
1401-approves each investment alternative 11
1402-offered under such plan described 12
1403-under subclause (I)(cc) prior to the 13
1404-investment being offered to partici-14
1405-pants in the plan; or 15
1406-‘‘(E) separate account the assets of which 16
1407-are derived solely from— 17
1408-‘‘(i) contributions under pension or 18
1409-profit-sharing plans which meet the re-19
1410-quirements of section 401 of the Internal 20
1411-Revenue Code of 1986 or the requirements 21
1412-for deduction of the employer’s contribu-22
1413-tion under section 404(a)(2) of such Code; 23
1414-‘‘(ii) contributions under govern-24
1415-mental plans in connection with which in-25 53
1416-•HR 2799 EH
1417-terests, participations, or securities are ex-1
1418-empted from the registration provisions of 2
1419-section 5 of the Securities Act of 1933 by 3
1420-section 3(a)(2)(C) of such Act; 4
1421-‘‘(iii) advances made by an insurance 5
1422-company in connection with the operation 6
1423-of such separate account; and 7
1424-‘‘(iv) contributions to a plan described 8
1425-in clause (iii) or (iv) of subparagraph 9
1426-(D).’’. 10
1427-(b) A
1428-MENDMENTS TO THE SECURITIESACT OF 11
1429-1933.—Section 3(a)(2) of the Securities Act of 1933 (15 12
1430-U.S.C. 77c(a)(2)) is amended— 13
1431-(1) by striking ‘‘beneficiaries, or (D)’’ and in-14
1432-serting ‘‘beneficiaries, (D) a plan which meets the 15
1433-requirements of section 403(b) of such Code (i) if 16
1434-(I) such plan is subject to title I of the Employee 17
1435-Retirement Income Security Act of 1974 (29 U.S.C. 18
1436-1001 et seq.), (II) any employer making such plan 19
1437-available agrees to serve as a fiduciary for the plan 20
1438-with respect to the selection of the plan’s invest-21
1439-ments among which participants can choose, or (III) 22
1440-such plan is a governmental plan (as defined in sec-23
1441-tion 414(d) of such Code), and (ii) if the employer, 24
1442-a fiduciary of the plan, or another person acting on 25 54
1443-•HR 2799 EH
1444-behalf of the employer reviews and approves each in-1
1445-vestment alternative offered under any plan de-2
1446-scribed under clause (i)(III) prior to the investment 3
1447-being offered to participants in the plan, or (E)’’; 4
1448-(2) by striking ‘‘(C), or (D)’’ and inserting 5
1449-‘‘(C), (D), or (E)’’; and 6
1450-(3) by striking ‘‘(iii) which is a plan funded’’ 7
1451-and all that follows through ‘‘retirement income ac-8
1452-count).’’ and inserting ‘‘(iii) in the case of a plan not 9
1453-described in subparagraph (D) or (E), which is a 10
1454-plan funded by an annuity contract described in sec-11
1455-tion 403(b) of such Code’’. 12
1456-(c) A
1457-MENDMENTS TO THE SECURITIESEXCHANGE 13
1458-A
1459-CT OF1934.—Section 3(a)(12)(C) of the Securities Ex-14
1460-change Act of 1934 (15 U.S.C. 78c(a)(12)(C)) is amend-15
1461-ed— 16
1462-(1) by striking ‘‘or (iv)’’ and inserting ‘‘(iv) a 17
1463-plan which meets the requirements of section 403(b) 18
1464-of such Code (I) if (aa) such plan is subject to title 19
1465-I of the Employee Retirement Income Security Act 20
1466-of 1974 (29 U.S.C. 1001 et seq.), (bb) any employer 21
1467-making such plan available agrees to serve as a fidu-22
1468-ciary for the plan with respect to the selection of the 23
1469-plan’s investments among which participants can 24
1470-choose, or (cc) such plan is a governmental plan (as 25 55
1471-•HR 2799 EH
1472-defined in section 414(d) of such Code), and (II) if 1
1473-the employer, a fiduciary of the plan, or another per-2
1474-son acting on behalf of the employer reviews and ap-3
1475-proves each investment alternative offered under any 4
1476-plan described under subclause (I)(cc) prior to the 5
1477-investment being offered to participants in the plan, 6
1478-or (v)’’; 7
1479-(2) by striking ‘‘(ii), or (iii)’’ and inserting 8
1480-‘‘(ii), (iii), or (iv)’’; and 9
1481-(3) by striking ‘‘(II) is a plan funded’’ and in-10
1482-serting ‘‘(II) in the case of a plan not described in 11
1483-clause (iv), is a plan funded’’. 12
1484-(d) C
1485-ONFORMINGAMENDMENT TO THE SECURITIES 13
1486-E
1487-XCHANGEACT OF1934.—Section 12(g)(2)(H) of the 14
1488-Securities Exchange Act of 1934 (15 U.S.C. 78l(g)(2)(H)) 15
1489-is amended by striking ‘‘or (iii)’’ and inserting ‘‘(iii) a plan 16
1490-described in section 3(a)(12)(C)(iv) of this Act, or (iv)’’. 17
1491-DIVISION G—INCREASING 18
1492-INVESTOR OPPORTUNITIES 19
1493-SEC. 7001. CLOSED-END COMPANY AUTHORITY TO INVEST 20
1494-IN PRIVATE FUNDS. 21
1495-(a) I
1496-NGENERAL.—Section 5 of the Investment Com-22
1497-pany Act of 1940 (15 U.S.C. 80a–5) is amended by add-23
1498-ing at the end the following: 24 56
1499-•HR 2799 EH
1500-‘‘(d) CLOSED-ENDCOMPANYAUTHORITY TOINVEST 1
1501-INPRIVATEFUNDS.— 2
1502-‘‘(1) I
1503-N GENERAL.—Except as otherwise pro-3
1504-hibited or restricted by this Act (or any rule issued 4
1505-under this Act), the Commission may not prohibit or 5
1506-otherwise limit a closed-end company from investing 6
1507-any or all of the assets of the closed-end company 7
1508-in securities issued by private funds. 8
1509-‘‘(2) O
1510-THER RESTRICTIONS ON COMMISSION AU -9
1511-THORITY.— 10
1512-‘‘(A) I
1513-N GENERAL.—Except as otherwise 11
1514-prohibited or restricted by this Act (or any rule 12
1515-issued under this Act) or to the extent per-13
1516-mitted by subparagraph (B), the Commission 14
1517-may not impose any condition on, restrict, or 15
1518-otherwise limit— 16
1519-‘‘(i) the offer to sell, or the sale of, se-17
1520-curities issued by a closed-end company 18
1521-that invests, or proposes to invest, in secu-19
1522-rities issued by private funds; or 20
1523-‘‘(ii) the listing of the securities of a 21
1524-closed-end company described in clause (i) 22
1525-on a national securities exchange. 23
1526-‘‘(B) U
1527-NRELATED RESTRICTIONS .—The 24
1528-Commission may impose a condition on, re-25 57
1529-•HR 2799 EH
1530-strict, or otherwise limit an activity described in 1
1531-clause (i) or (ii) of subparagraph (A) if that 2
1532-condition, restriction or limitation is unrelated 3
1533-to the underlying characteristics of a private 4
1534-fund or the status of a private fund as a private 5
1535-fund. 6
1536-‘‘(3) A
1537-PPLICATION.—Notwithstanding section 7
1538-6(f), this subsection shall also apply to a closed-end 8
1539-company that elects to be treated as a business de-9
1540-velopment company pursuant to section 54.’’. 10
1541-(b) D
1542-EFINITION OFPRIVATEFUND.—Section 2(a) of 11
1543-the Investment Company Act of 1940 (15 U.S.C. 80a– 12
1544-2(a)) is amended by adding at the end the following: 13
1545-‘‘(55) The term ‘private fund’ has the meaning 14
1546-given in section 202(a) of the Investment Advisers 15
1547-Act of 1940 (15 U.S.C. 80b–2(a)).’’. 16
1548-(c) T
1549-REATMENT BY NATIONALSECURITIESEX-17
1550-CHANGES.—Section 6 of the Securities Exchange Act of 18
1551-1934 (15 U.S.C. 78f) is amended by adding at the end 19
1552-the following: 20
1553-‘‘(m)(1) Except as otherwise prohibited or restricted 21
1554-by rules of the exchange that are consistent with section 22
1555-5(d) of the Investment Company Act of 1940 (15 U.S.C. 23
1556-80a–5(d)), an exchange may not prohibit, condition, re-24
1557-strict, or impose any other limitation on the listing or 25 58
1558-•HR 2799 EH
1559-trading of the securities of a closed-end company when 1
1560-the closed-end company invests, or may invest, some or 2
1561-all of the assets of the closed-end company in securities 3
1562-issued by private funds. 4
1563-‘‘(2) In this subsection— 5
1564-‘‘(A) the term ‘closed-end company’— 6
1565-‘‘(i) has the meaning given the term in sec-7
1566-tion 5(a) of the Investment Company Act of 8
1567-1940 (15 U.S.C. 80a–5(a)); and 9
1568-‘‘(ii) includes a closed-end company that 10
1569-elects to be treated as a business development 11
1570-company pursuant to section 54 of the Invest-12
1571-ment Company Act of 1940 (15 U.S.C. 80a– 13
1572-53); and 14
1573-‘‘(B) the term ‘private fund’ has the meaning 15
1574-given the term in section 2(a) of the Investment 16
1575-Company Act of 1940 (15 U.S.C. 80a–2(a))).’’. 17
1576-(d) I
1577-NVESTMENTLIMITATION.—Section 3(c) of the 18
1578-Investment Company Act of 1940 (15 U.S.C. 80a–3(c)) 19
1579-is amended— 20
1580-(1) in paragraph (1), in the matter preceding 21
1581-subparagraph (A), in the second sentence, by strik-22
1582-ing ‘‘subparagraphs (A)(i) and (B)(i)’’ and inserting 23
1583-‘‘subparagraphs (A)(i), (B)(i), and (C)’’; and 24 59
1584-•HR 2799 EH
1585-(2) in paragraph (7)(D), by striking ‘‘subpara-1
1586-graphs (A)(i) and (B)(i)’’ and inserting ‘‘subpara-2
1587-graphs (A)(i), (B)(i), and (C)’’. 3
1588-(e) R
1589-ULES OFCONSTRUCTION.— 4
1590-(1) Nothing in this section or the amendments 5
1591-made by this section may be construed to limit or 6
1592-amend any fiduciary duty owed to a closed-end com-7
1593-pany (as defined in section 5(a)(2) of the Investment 8
1594-Company Act of 1940 (15 U.S.C. 80a-5(a)(2))) or 9
1595-by an investment adviser (as defined under section 10
1596-2(a) of the Investment Company Act of 1940 (15 11
1597-U.S.C. 80a–2(a))) to a closed-end company. 12
1598-(2) Nothing in this section or the amendments 13
1599-made by this section may be construed to limit or 14
1600-amend the valuation, liquidity, or redemption re-15
1601-quirements or obligations of a closed-end company 16
1602-(as defined in section 5(a)(2) of the Investment 17
1603-Company Act of 1940 (15 U.S.C. 80a-5(a)(2))) as 18
1604-required by the Investment Company Act of 1940. 19
1605-Passed the House of Representatives March 8,
1606-2024.
1607-Attest:
1608-Clerk. 118
1176+ONFORMINGCHANGES TOREGULATIONS.—The 17
1177+Securities and Exchange Commission shall revise section 18
1178+203.501(a) of title 17, Code of Federal Regulations, and any 19
1179+other definition of ‘‘accredited investor’’ in a rule of the 20
1180+Commission in the same manner as such definition is re-21
1181+vised under subsection (a). 22
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1185+118
16091186 TH
16101187 CONGRESS
1611-2
1612-D
1188+1
1189+ST
16131190 S
16141191 ESSION
16151192
16161193 H. R. 2799
1617-AN ACT
1194+[Report No. 118–143, Part I]
1195+A BILL
16181196 To make reforms to the capital markets of the
16191197 United States, and for other purposes.
1198+J
1199+ULY
1200+17, 2023
1201+Reported from the Committee on Financial Services with
1202+an amendment
1203+J
1204+ULY
1205+17, 2023
1206+Committee on Education and the Workforce discharged;
1207+committed to the Committee of the Whole House on
1208+the State of the Union and ordered to be printed
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