H. R. 3784 
One Hundred Fourteenth Congress 
of the 
United States of America 
AT THE SECOND SESSION 
Begun and held at the City of Washington on Monday, 
the fourth day of January, two thousand and sixteen 
An Act 
To amend the Securities Exchange Act of 1934 to establish an Office of the Advocate 
for Small Business Capital Formation and a Small Business Capital Formation 
Advisory Committee, 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 ‘‘SEC Small Business Advocate 
Act of 2016’’. 
SEC. 2. ESTABLISHMENT OF OFFICE OF THE ADVOCATE FOR SMALL 
BUSINESS CAPITAL FORMATION AND SMALL BUSINESS CAP-
ITAL FORMATION ADVISORY COMMITTEE. 
(a) OFFICE OF THE ADVOCATE FOR SMALL BUSINESS CAPITAL 
FORMATION.—Section 4 of the Securities Exchange Act of 1934 
(15 U.S.C. 78d) is amended by adding at the end the following: 
‘‘(j) OFFICE OF THE ADVOCATE FOR SMALL BUSINESS CAPITAL 
FORMATION.— 
‘‘(1) OFFICE ESTABLISHED.—There is established within the 
Commission the Office of the Advocate for Small Business 
Capital Formation (hereafter in this subsection referred to as 
the ‘Office’). 
‘‘(2) ADVOCATE FOR SMALL BUSINESS CAPITAL FORMATION.— 
‘‘(A) IN
GENERAL.—The head of the Office shall be 
the Advocate for Small Business Capital Formation, who 
shall— 
‘‘(i) report directly to the Commission; and 
‘‘(ii) be appointed by the Commission, from among 
individuals having experience in advocating for the 
interests of small businesses and encouraging small 
business capital formation. 
‘‘(B) COMPENSATION.—The annual rate of pay for the 
Advocate for Small Business Capital Formation shall be 
equal to the highest rate of annual pay for other senior 
executives who report directly to the Commission. 
‘‘(C) NO
CURRENT
EMPLOYEE
OF
THE
COMMISSION.— 
An individual may not be appointed as the Advocate for 
Small Business Capital Formation if the individual is cur-
rently employed by the Commission. 
‘‘(3) STAFF OF OFFICE.—The Advocate for Small Business 
Capital Formation, after consultation with the Commission, 
may retain or employ independent counsel, research staff, and
H. R. 3784—2 
service staff, as the Advocate for Small Business Capital Forma-
tion determines to be necessary to carry out the functions 
of the Office. 
‘‘(4) FUNCTIONS
OF
THE
ADVOCATE
FOR
SMALL
BUSINESS 
CAPITAL FORMATION.—The Advocate for Small Business Capital 
Formation shall— 
‘‘(A) assist small businesses and small business inves-
tors in resolving significant problems such businesses and 
investors may have with the Commission or with self- 
regulatory organizations; 
‘‘(B) identify areas in which small businesses and small 
business investors would benefit from changes in the regu-
lations of the Commission or the rules of self-regulatory 
organizations; 
‘‘(C) identify problems that small businesses have with 
securing access to capital, including any unique challenges 
to minority-owned and women-owned small businesses; 
‘‘(D) analyze the potential impact on small businesses 
and small business investors of— 
‘‘(i) proposed regulations of the Commission that 
are likely to have a significant economic impact on 
small businesses and small business capital formation; 
and 
‘‘(ii) proposed rules that are likely to have a signifi-
cant economic impact on small businesses and small 
business capital formation of self-regulatory organiza-
tions registered under this title; 
‘‘(E) conduct outreach to small businesses and small 
business investors, including through regional roundtables, 
in order to solicit views on relevant capital formation 
issues; 
‘‘(F) to the extent practicable, propose to the Commis-
sion changes in the regulations or orders of the Commission 
and to Congress any legislative, administrative, or per-
sonnel changes that may be appropriate to mitigate prob-
lems identified under this paragraph and to promote the 
interests of small businesses and small business investors; 
‘‘(G) consult with the Investor Advocate on proposed 
recommendations made under subparagraph (F); and 
‘‘(H) advise the Investor Advocate on issues related 
to small businesses and small business investors. 
‘‘(5) ACCESS TO DOCUMENTS.—The Commission shall ensure 
that the Advocate for Small Business Capital Formation has 
full access to the documents and information of the Commission 
and any self-regulatory organization, as necessary to carry out 
the functions of the Office. 
‘‘(6) ANNUAL REPORT ON ACTIVITIES.— 
‘‘(A) IN GENERAL.—Not later than December 31 of each 
year after 2015, the Advocate for Small Business Capital 
Formation shall submit to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the Com-
mittee on Financial Services of the House of Representa-
tives a report on the activities of the Advocate for Small 
Business Capital Formation during the immediately pre-
ceding fiscal year. 
‘‘(B) CONTENTS.—Each report required under subpara-
graph (A) shall include—
H. R. 3784—3 
‘‘(i) appropriate statistical information and full and 
substantive analysis; 
‘‘(ii) information on steps that the Advocate for 
Small Business Capital Formation has taken during 
the reporting period to improve small business services 
and the responsiveness of the Commission and self- 
regulatory organizations to small business and small 
business investor concerns; 
‘‘(iii) a summary of the most serious issues encoun-
tered by small businesses and small business investors, 
including any unique issues encountered by minority- 
owned and women-owned small businesses and their 
investors, during the reporting period; 
‘‘(iv) an inventory of the items summarized under 
clause (iii) (including items summarized under such 
clause for any prior reporting period on which no action 
has been taken or that have not been resolved to 
the satisfaction of the Advocate for Small Business 
Capital Formation as of the beginning of the reporting 
period covered by the report) that includes— 
‘‘(I) identification of any action taken by the 
Commission or the self-regulatory organization 
and the result of such action; 
‘‘(II) the length of time that each item has 
remained on such inventory; and 
‘‘(III) for items on which no action has been 
taken, the reasons for inaction, and an identifica-
tion of any official who is responsible for such 
action; 
‘‘(v) recommendations for such changes to the regu-
lations, guidance and orders of the Commission and 
such legislative actions as may be appropriate to 
resolve problems with the Commission and self-regu-
latory organizations encountered by small businesses 
and small business investors and to encourage small 
business capital formation; and 
‘‘(vi) any other information, as determined appro-
priate by the Advocate for Small Business Capital 
Formation. 
‘‘(C) 
CONFIDENTIALITY.—No 
report 
required 
by 
subparagraph (A) may contain confidential information. 
‘‘(D) INDEPENDENCE.—Each report required under 
subparagraph (A) shall be provided directly to the commit-
tees of Congress listed in such subparagraph without any 
prior review or comment from the Commission, any 
commissioner, any other officer or employee of the Commis-
sion, or the Office of Management and Budget. 
‘‘(7) REGULATIONS.—The Commission shall establish proce-
dures requiring a formal response to all recommendations sub-
mitted to the Commission by the Advocate for Small Business 
Capital Formation, not later than 3 months after the date 
of such submission. 
‘‘(8) GOVERNMENT-BUSINESS
FORUM
ON
SMALL
BUSINESS 
CAPITAL FORMATION.—The Advocate for Small Business Capital 
Formation shall be responsible for planning, organizing, and 
executing the annual Government-Business Forum on Small 
Business Capital Formation described in section 503 of the