IIB 
116TH CONGRESS 
1ST SESSION H. R. 3050 
IN THE SENATE OF THE UNITED STATES 
JULY 10, 2019 
Received; read twice and referred to the Committee on Banking, Housing, and 
Urban Affairs 
AN ACT 
To require the Securities and Exchange Commission to carry 
out a study of the 10 per centum threshold limitation 
applicable to the definition of a diversified company 
under the Investment Company Act of 1940, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Expanding Investment 
in Small Businesses Act of 2019’’. 
SEC. 2. SEC STUDY. 
(a) IN GENERAL.—The Securities and Exchange 
Commission shall carry out a study of the 10 per centum 
threshold limitation applicable to the definition of a diver-
sified company under section 5(b)(1) of the Investment 
Company Act of 1940 (15 U.S.C. 80a–5(b)(1)) and deter-
mine the impacts of such threshold limits upon the protec-
tion of investors, efficiency, competition, and capital for-
mation. 
(b) CONSIDERATIONS.—In carrying out the study re-
quired under subsection (a), the Commission shall con-
sider the following: 
(1) The size and number of diversified compa-
nies that are currently restricted in their ability to 
own more than 10 percent of the voting shares in an 
individual company. 
(2) How the investing preferences of diversified 
companies have shifted over time with respect to 
companies with smaller market capitalizations and 
companies in industries where competition may be 
limited. 
(3) The expected impact to small and emerging 
growth companies regarding the availability of cap-
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ital, related impacts on investor confidence and risk, 
and impacts on competition, if the threshold is in-
creased or otherwise changed. 
(4) The ability of registered funds to manage li-
quidity risk. 
(5) Any other consideration that the Commis-
sion considers necessary and appropriate for the pro-
tection of investors. 
(c) SOLICITATION OF PUBLIC COMMENTS.—In car-
rying out the study required under subsection (a), the 
Commission may solicit public comments. 
(d) REPORT.—Not later than the end of the 180-day 
period beginning on the date of enactment of this Act, the 
Commission shall issue a report to the Congress, and 
make such report publicly available on the website of the 
Commission, containing— 
(1) all findings and determinations made in car-
rying out the study required under subsection (a); 
and 
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(2) any legislative recommendations of the 
Commission. 
Passed the House of Representatives July 9, 2019. 
Attest: 
CHERYL L. JOHNSON, 
Clerk. 
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