‘‘(7) REGULATIONS.—The Commission shall es-
tablish procedures requiring a formal response to all 
recommendations submitted 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 respon-
sible for planning, organizing, and executing the an-
nual Government-Business Forum on Small Business 
Capital Formation described in section 503 of the 
Small Business Investment Incentive Act of 1980 (15 
U.S.C. 80c–1). 
‘‘(9) RULE OF CONSTRUCTION.—Nothing in this 
subsection may be construed as replacing or reducing 
the responsibilities of the Investor Advocate with re-
spect to small business investors.’’. 
(b) SMALL BUSINESS CAPITAL FORMATION ADVISORY 
COMMITTEE.—Title I of the Securities Exchange Act of 
1934 (15 U.S.C. 78a et seq.) is amended by adding at the 
end the following: 
‘‘SEC. 40. SMALL BUSINESS CAPITAL FORMATION ADVISORY 
COMMITTEE. 
‘‘(a) ESTABLISHMENT AND PURPOSE.— 
VerDate Sep 11 2014 
21:45 Feb 01, 2016
Jkt 059200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6203
E:\BILLS\H3784.RH
H3784
tkelley on DSK3SPTVN1PROD with BILLS
‘‘(1) 
ESTABLISHMENT.—There 
is 
established 
within the Commission the Small Business Capital 
Formation Advisory Committee (hereafter in this sec-
tion referred to as the ‘Committee’). 
‘‘(2) FUNCTIONS.— 
‘‘(A) IN
GENERAL.—The Committee shall 
provide the Commission with advice on the Com-
mission’s rules, regulations, and policies with re-
gard to the Commission’s mission of protecting 
investors, maintaining fair, orderly, and effi-
cient markets, and facilitating capital forma-
tion, as such rules, regulations, and policies re-
late to— 
‘‘(i) capital raising by emerging, pri-
vately held small businesses (‘emerging com-
panies’) and publicly traded companies 
with less than $250,000,000 in public mar-
ket capitalization (‘smaller public compa-
nies’) through securities offerings, including 
private and limited offerings and initial 
and other public offerings; 
‘‘(ii) trading in the securities of emerg-
ing companies and smaller public compa-
nies; and 
VerDate Sep 11 2014 
21:45 Feb 01, 2016
Jkt 059200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6203
E:\BILLS\H3784.RH
H3784
tkelley on DSK3SPTVN1PROD with BILLS
‘‘(iii) public reporting and corporate 
governance requirements of emerging com-
panies and smaller public companies. 
‘‘(B) LIMITATION.—The Committee shall 
not provide any advice with respect to any poli-
cies, practices, actions, or decisions concerning 
the Commission’s enforcement program. 
‘‘(b) MEMBERSHIP.— 
‘‘(1) IN GENERAL.—The members of the Com-
mittee shall be— 
‘‘(A) the Advocate for Small Business Cap-
ital Formation; 
‘‘(B) not fewer than 10, and not more than 
20, members appointed by the Commission, from 
among individuals— 
‘‘(i) who represent— 
‘‘(I) emerging companies engaging 
in private and limited securities offer-
ings or considering initial public offer-
ings (‘IPO’) (including the companies’ 
officers and directors); 
‘‘(II) the professional advisors of 
such companies (including attorneys, 
accountants, investment bankers, and 
financial advisors); and 
VerDate Sep 11 2014 
21:45 Feb 01, 2016
Jkt 059200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6203
E:\BILLS\H3784.RH
H3784
tkelley on DSK3SPTVN1PROD with BILLS
‘‘(III) the investors in such com-
panies (including angel investors, ven-
ture capital funds, and family offices); 
‘‘(ii) who are officers or directors of 
minority-owned 
small 
businesses 
and 
women-owned small businesses; 
‘‘(iii) who represent— 
‘‘(I) smaller public companies (in-
cluding the companies’ officers and di-
rectors); 
‘‘(II) the professional advisors of 
such companies (including attorneys, 
auditors, underwriters, and financial 
advisors); and 
‘‘(III) the pre-IPO and post-IPO 
investors in such companies (both in-
stitutional, such as venture capital 
funds, and individual, such as angel 
investors); and 
‘‘(iv) who represent participants in the 
marketplace for the securities of emerging 
companies and smaller public companies, 
such as securities exchanges, alternative 
trading systems, analysts, information proc-
essors, and transfer agents; and 
VerDate Sep 11 2014 
21:45 Feb 01, 2016
Jkt 059200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6203
E:\BILLS\H3784.RH
H3784
tkelley on DSK3SPTVN1PROD with BILLS
‘‘(C) 3 non-voting members— 
‘‘(i) 1 of whom shall be appointed by 
the Investor Advocate; 
‘‘(ii) 1 of whom shall be appointed by 
the North American Securities Administra-
tors Association; and 
‘‘(iii) 1 of whom shall be appointed by 
the Administrator of the Small Business 
Administration. 
‘‘(2) TERM.—Each member of the Committee ap-
pointed under subparagraph (B), (C)(ii), or (C)(iii) 
of paragraph (1) shall serve for a term of 4 years. 
‘‘(3) MEMBERS NOT COMMISSION EMPLOYEES.— 
Members appointed under subparagraph (B), (C)(ii), 
or (C)(iii) of paragraph (1) shall not be treated as 
employees or agents of the Commission solely because 
of membership on the Committee. 
‘‘(c) CHAIRMAN; VICE CHAIRMAN; SECRETARY; AS-
SISTANT SECRETARY.— 
‘‘(1) IN GENERAL.—The members of the Com-
mittee shall elect, from among the members of the 
Committee— 
‘‘(A) a chairman; 
‘‘(B) a vice chairman; 
‘‘(C) a secretary; and 
VerDate Sep 11 2014 
21:45 Feb 01, 2016
Jkt 059200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6203
E:\BILLS\H3784.RH
H3784
tkelley on DSK3SPTVN1PROD with BILLS
‘‘(D) an assistant secretary. 
‘‘(2) TERM.—Each member elected under para-
graph (1) shall serve for a term of 3 years in the ca-
pacity for which the member was elected under para-
graph (1). 
‘‘(d) MEETINGS.— 
‘‘(1) FREQUENCY OF MEETINGS.—The Committee 
shall meet— 
‘‘(A) not less frequently than four times an-
nually, at the call of the chairman of the Com-
mittee; and 
‘‘(B) from time to time, at the call of the 
Commission. 
‘‘(2) NOTICE.—The chairman of the Committee 
shall give the members of the Committee written no-
tice of each meeting, not later than 2 weeks before the 
date of the meeting. 
‘‘(e) COMPENSATION AND TRAVEL EXPENSES.—Each 
member of the Committee who is not a full-time employee 
of the United States shall— 
‘‘(1) be entitled to receive compensation at a rate 
not to exceed the daily equivalent of the annual rate 
of basic pay in effect for a position at level V of the 
Executive Schedule under section 5316 of title 5, 
United States Code, for each day during which the 
VerDate Sep 11 2014 
21:45 Feb 01, 2016
Jkt 059200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6203
E:\BILLS\H3784.RH
H3784
tkelley on DSK3SPTVN1PROD with BILLS