IIB 
114TH CONGRESS 
2D SESSION 
H. R. 3784 
IN THE SENATE OF THE UNITED STATES 
FEBRUARY 2, 2016 
Received; read twice and referred to the Committee on Banking, Housing, and 
Urban Affairs 
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 Ad-
visory Committee, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
VerDate Sep 11 2014 
00:49 Feb 03, 2016
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H3784.RFS
H3784
SSpencer on DSK4SPTVN1PROD with BILLS
HR 3784 RFS
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 CAPITAL FORMATION 
ADVISORY COMMITTEE. 
(a) OFFICE OF THE ADVOCATE FOR SMALL BUSI-
NESS 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 BUSI-
NESS CAPITAL FORMATION.— 
‘‘(1) OFFICE
ESTABLISHED.—There is estab-
lished within the Commission the Office of the Advo-
cate for Small Business Capital Formation (here-
after in this subsection referred to as the ‘Office’). 
‘‘(2) ADVOCATE FOR SMALL BUSINESS CAPITAL 
FORMATION.— 
‘‘(A) IN GENERAL.—The head of the Of-
fice 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 
VerDate Sep 11 2014 
00:49 Feb 03, 2016
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H3784.RFS
H3784
SSpencer on DSK4SPTVN1PROD with BILLS
HR 3784 RFS
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 Cap-
ital 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 ap-
pointed as the Advocate for Small Business 
Capital Formation if the individual is currently 
employed by the Commission. 
‘‘(3) STAFF
OF
OFFICE.—The Advocate for 
Small Business Capital Formation, after consulta-
tion with the Commission, may retain or employ 
independent counsel, research staff, and service 
staff, as the Advocate for Small Business Capital 
Formation determines to be necessary to carry out 
the functions of the Office. 
‘‘(4) FUNCTIONS
OF
THE
ADVOCATE
FOR 
SMALL BUSINESS CAPITAL FORMATION.—The Advo-
cate for Small Business Capital Formation shall— 
‘‘(A) assist small businesses and small 
business investors in resolving significant prob-
VerDate Sep 11 2014 
00:49 Feb 03, 2016
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H3784.RFS
H3784
SSpencer on DSK4SPTVN1PROD with BILLS
HR 3784 RFS
lems such businesses and investors may have 
with the Commission or with self-regulatory or-
ganizations; 
‘‘(B) identify areas in which small busi-
nesses and small business investors would ben-
efit from changes in the regulations of the 
Commission or the rules of self-regulatory orga-
nizations; 
‘‘(C) identify problems that small busi-
nesses have with securing access to capital, in-
cluding 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 Com-
mission 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 significant economic impact on 
small businesses and small business capital 
formation of self-regulatory organizations 
registered under this title; 
‘‘(E) conduct outreach to small businesses 
and small business investors, including through 
VerDate Sep 11 2014 
00:49 Feb 03, 2016
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H3784.RFS
H3784
SSpencer on DSK4SPTVN1PROD with BILLS