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[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 2765 Engrossed in Senate (ES)]

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115th CONGRESS
  2d Session
                                S. 2765

_______________________________________________________________________

                                 AN ACT

 
   To amend the Investment Advisers Act of 1940 to exempt investment 
advisers who solely advise certain rural business investment companies, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``RBIC Advisers Relief Act of 2018''.

SEC. 2. ADVISERS OF RBICS.

    Section 203 of the Investment Advisers Act of 1940 (15 U.S.C. 80b-
3(b)) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (6)(B)--
                            (i) by adjusting the margins accordingly; 
                        and
                            (ii) by striking the period at the end and 
                        inserting a semicolon;
                    (B) in paragraph (7)(C), by striking the period at 
                the end and inserting ``; or''; and
                    (C) by adding at the end the following:
            ``(8) any investment adviser, other than an entity that has 
        elected to be regulated or is regulated as a business 
        development company pursuant to section 54 of the Investment 
        Company Act of 1940 (15 U.S.C. 80a-53), who solely advises--
                    ``(A) rural business investment companies (as 
                defined in section 384A of the Consolidated Farm and 
                Rural Development Act (7 U.S.C. 2009cc)); or
                    ``(B) companies that have submitted to the 
                Secretary of Agriculture an application in accordance 
                with section 384D(b) of the Consolidated Farm and Rural 
                Development Act (7 U.S.C. 2009cc-3(b)) that--
                            ``(i) have received from the Secretary of 
                        Agriculture a letter of conditions, which has 
                        not been revoked; or
                            ``(ii) are affiliated with 1 or more rural 
                        business investment companies described in 
                        subparagraph (A).'';
            (2) in subsection (l), by adding at the end the following:
            ``(3) Advisers of rbics.--For purposes of this subsection, 
        a venture capital fund includes an entity described in 
        subparagraph (A) or (B) of subsection (b)(8) (other than an 
        entity that has elected to be regulated as a business 
        development company pursuant to section 54 of the Investment 
        Company Act of 1940 (15 U.S.C. 80a-53)).''; and
            (3) in subsection (m), by adding at the end the following:
            ``(4) Advisers of rbics.--For purposes of this subsection, 
        the assets under management of a private fund that is an entity 
        described in subparagraph (A) or (B) of subsection (b)(8) 
        (other than an entity that has elected to be regulated or is 
        regulated as a business development company pursuant to section 
        54 of the Investment Company Act of 1940 (15 U.S.C. 80a-53)) 
        shall be excluded from the limit set forth in paragraph (1).''.

SEC. 3. RELATIONSHIP TO STATE LAW.

    Section 203A(b)(1) of the Investment Advisers Act of 1940 (15 
U.S.C. 80b-3a(b)(1)) is amended--
            (1) in subparagraph (C), by striking the period at the end 
        and inserting ``; or''; and
            (2) by adding at the end the following:
                    ``(D) that is not registered under section 203 
                because that person is exempt from registration as 
                provided in subsection (b)(8) of such section, or is a 
                supervised person of such person.''.

            Passed the Senate October 11, 2018.

            Attest:

                                                             Secretary.
115th CONGRESS

  2d Session

                                S. 2765

_______________________________________________________________________

                                 AN ACT

   To amend the Investment Advisers Act of 1940 to exempt investment 
advisers who solely advise certain rural business investment companies, 
                        and for other purposes.
```