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(Original Signature of Member)

117TH CONGRESS
2D SESSION

H. R. ll

To direct the Securities and Exchange Commission to promulgate rules withrespect to the electronic delivery of certain required disclosures, andfor other purposes.

IN THE HOUSE OF REPRESENTATIVES
Mr. HUIZENGA introduced the following bill; which was referred to theCommittee on llllllllllllll

A BILLTo direct the Securities and Exchange Commission to promulgate rules with respect to the electronic delivery ofcertain required disclosures, and for other purposes.
1

Be it enacted by the Senate and House of Representa-

2 tives of the United States of America in Congress assembled,
3SECTION 1. SHORT TITLE.

4This Act may be cited as the ‘‘Improving Disclosure

5 for Investors Act of 2022’’.
6SEC. 2. ELECTRONIC DELIVERY.

7(a) PROMULGATION OF RULES.—Not later than 180

8 days after the date of the enactment of this section, theg:\VHLD\121522\D121522.042.xml
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2
1 Securities and Exchange Commission shall propose and,
2 not later than 1 year after the date of the enactment of
3 this section, the Commission shall finalize, rules, regula4 tions, amendments, or interpretations, as appropriate, to
5 allow a covered entity to satisfy the entity’s obligation to6 deliver regulatory documents required under the securities
7 laws to investors using electronic delivery.
8(b) REQUIRED PROVISIONS.—Rules, regulations,

9 amendments, or interpretations the Commission promul10 gates pursuant to subsection (a) shall:11(1) With respect to investors that do not receive12

all regulatory documents by electronic delivery, pro-13

vide for—14(A) delivery of an initial communication in

15

paper form regarding electronic delivery;

16(B) a transition period not to exceed 180

17days until such regulatory documents are deliv-

18

ered to such investors by electronic delivery;

19and20(C) during a period not to exceed 2 years

21

following the transition period set forth in sub-22

paragraph (B), delivery of an annual notice in23

paper form solely reminding such investors of24

the ability to opt out of electronic delivery at

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any time and receive paper versions of regu-

2

latory documents.

3(2) Set forth requirements for the content of

4

the initial communication described in paragraph5(1)(A).

6(3) Set forth requirements for the timing of de-7

livery of a notice of website availability of regulatory

8

documents and the content of the appropriate notice9

described in subsection (h)(3)(B).

10(4) Provide a mechanism for investors to opt

11

out of electronic delivery at any time and receive

12

paper versions of regulatory documents.

13(5) Require measures reasonably designed to14identify and remediate failed electronic deliveries of

15

regulatory documents.

16(6) Set forth minimum requirements regarding

17

readability and retainability for regulatory docu-

18

ments that are delivered electronically.

19(7) For covered entities other than brokers,

20

dealers, investment advisers registered with the21Commission, and investment companies, require22

measures reasonably designed to ensure the con-23

fidentiality of personal information in regulatory

24

documents that are delivered to investors electroni-25

cally.

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41(c) EXEMPTION FROM CERTAIN REQUIREMENTS.—

2 Section 101(c) of the Electronic Signatures in Global and
3 National Commerce Act (15 U.S.C. 7001(c)) shall not
4 apply with respect to a regulatory document delivered in
5 accordance with this section.
6(d) RULE OF CONSTRUCTION.—Nothing in this sec-

7 tion shall be construed as altering the substance or timing
8 of any regulatory document obligation under the securities
9 laws or regulations of a self-regulatory organization.
10(e) TREATMENT OF REVISIONS NOT COMPLETED IN

11A TIMELY MANNER.—If the Commission fails to finalize

12 the rules, regulations, amendments, or interpretations re13 quired under subsection (a) before the date specified in
14 such subsection—
15(1) a covered entity may deliver regulatory doc-16uments using electronic delivery in accordance with17subsections (b) through (d); and18(2) such electronic delivery shall be deemed to19

satisfy the obligation of the covered entity to deliver

20

regulatory documents required under the securities

21laws.

22(f) OTHER ACTION.—

23(1) REVIEW OF RULES.—The Commission shall,

24

within 180 days of the date of enactment of this25

Act—

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51(A) conduct a review of the rules and regu-

2lations of the Commission to determine whether

3

any such rules or regulations require delivery of

4written documents to investors; and5(B) propose amendments to any identified

6rules or regulations to eliminate the ‘‘in writ-7ing’’ requirement.

8(2) ACTIONS BY SELF-REGULATORY ORGANIZA-

9TIONS.—Each

10adopt rules and regulations, or amend the rules and11

regulations of the self-regulatory organization, con-12

sistent with this Act and consistent with rules, regu-

13

lations, amendments, or interpretations finalized by

14

the Commission pursuant to subsection (a).

organization

shall15(3) RULE OF APPLICATION.—This subsection

16

shall not apply to a rule or regulation issued pursu-

17

ant to a Federal statute if that Federal statute spe-18cifically requires delivery of written documents to in-

19vestors.

20(g) DEFINITIONS.—In this section:

2122(1) COMMISSION.—The term ‘‘Commission’’means the Securities and Exchange Commission.

2324(2) COVERED ENTITY.—The term ‘‘covered entity’’ means—

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self-regulatory

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61(A) an investment company (as defined in2

section 3(a)(1) of the Investment Company Act

3of 1940 (15 U.S.C. 80a–3)) that is registered

4under such Act;

5(B) a business development company (as6defined in section 2(a) the Investment Company

7Act of 1940 (15 U.S.C. 80a–2(a))) that has

8elected to be regulated as such under such Act;

9(C) a registered broker or dealer (as de-10

fined in section 3(a)(4) and section 3(a)(5) of

11

the Securities Exchange Act of 1934) (1512U.S.C. 78c(a)(4) & 78c(a)(5));13(D) a registered municipal securities dealer

14(as defined in section 3(a)(30) of the Securities

15Exchange Act of 1934) (15 U.S.C. 78c(a)(30));

16(E) a registered government securities

17

broker or government securities dealer (as de-18

fined in section 3(a)(43) and section 3(a)(44) of

19

the Securities Exchange Act of 1934) (1520

U.S.C. 78c(a)(43) & 78c(a)(44));21(F) a registered investment adviser (as de-22

fined in section 202(a)(11) of the Investment

23

Advisers Act of 1940) (15 U.S.C. 80b-1);

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71(G) a registered transfer agent (as defined

2in section 3(a)(25) of the Securities Exchange

3Act of 1934) (15 U.S.C. 78c(a)); or

4(H) a registered funding portal (as defined

5in section 3(a)(80) of the Securities Exchange

6Act of 1934) (15 U.S.C. 78c(a)).

7(3) ELECTRONIC DELIVERY.—The term ‘‘elec-8tronic delivery’’, with respect to regulatory docu-

9ments, includes—

10(A) the direct delivery of such regulatory

11

document to an electronic address of an inves-

12tor;

13(B) the posting of such regulatory docu-

14

ment to a website and direct electronic delivery

15of an appropriate notice of the availability of16

the regulatory document to the investor; and17(C) an electronic method reasonably de-18

signed to ensure receipt of such regulatory doc-

19

ument by the investor.

20(4)

21

DOCUMENTS.—Theterm‘‘regulatory documents’’ includes—

22(A) prospectuses meeting the requirements

23of section 10(a) of the Securities Act of 1933

24(15 U.S.C. 77j);

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REGULATORY

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81(B) summary prospectuses meeting the re-2quirements of—3(i) section 230.498 of title 17, Code of4

Federal Regulations; or5(ii) section 230.498A of title 17, Code

6of Federal Regulations;7(C) statements of additional information,8

as described under section 270.30e–3(h)(3) of

9title 17, Code of Federal Regulations;

10(D) annual and semi-annual reports to in-

11vestors meeting the requirements of section

1230(e) of the Investment Company Act of 1940

13(15 U.S.C. 80a-29(e));14(E) notices meeting the requirements

15

under section 270.19a-1 of title 17, Code of16

Federal Regulations;

17(F) confirmations and account statements

18meeting

19240.10b-10 of title 17, Code of Federal Regula-20tions;requirements

undersection

21(G) proxy statements meeting the require-22

ments under section 240.14a-3 of title 17, Code23of Federal Regulations;24(H) privacy notices meeting the require-25

ments of Regulation S-P under subpart A ofg:\VHLD\121522\D121522.042.xml
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91

part 248 of title 17, Code of Federal Regula-2tions;3(I) affiliate marketing notices meeting the4requirements of Regulation S-AM under sub-5part B of part 248 of title 17, Code of Federal

6Regulations; and7(J) all other regulatory documents re-8

quired to be delivered by covered entities to in-

9vestors under the securities laws and the rules

10and regulations of the Commission and the self-

11

regulatory organizations.

12(5) SECURITIES LAWS.—The term ‘‘securities

13laws’’ has the meaning given the term in section

143(a) of the Securities Exchange Act of 1934 (1515U.S.C. 78c(a)).

1617(6) SELF-REGULATORYterm ‘‘self-regulatory organization’’ means—18(A) a self-regulatory organization, as de-19

fined in section 2(a)(26) of the Securities Ex-20

change Act of 1934 (15 U.S.C. 78c(a)); and21(B) the Municipal Securities Rulemaking

22Board.

23(7) WEBSITE.—The term ‘‘website’’ means an24

internet website or other digital, internet, or elec-25

tronic-based information repository, such as a mobile

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ORGANIZATION.—The

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101

application, to which an investor of a covered entity

2

has been provided reasonable access.

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