IB 
Union Calendar No. 676 
115TH CONGRESS 
2D SESSION 
H. R. 6319 
[Report No. 115–878] 
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. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 10, 2018 
Mr. HULTGREN introduced the following bill; which was referred to the 
Committee on Financial Services 
JULY 31, 2018 
Committed to the Committee of the Whole House on the State of the Union 
and ordered to be printed 
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A BILL 
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. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Expanding Investment 
in Small Businesses Act’’. 
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 whether such threshold limits capital formation. 
(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) If investing preferences of diversified com-
panies have shifted away from companies with small-
er market capitalizations. 
(3) The expected increase in the availability of 
capital to small and emerging growth companies if 
the threshold is increased. 
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(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 
(2) any legislative recommendations of the 
Commission, including any recommendation to up-
date the 10 per centum threshold. 
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Union Calendar No. 676 
115TH CONGRESS 
2D SESSION 
H. R. 6319 
[Report No. 115–878] 
A BILL 
To require the Securities and Exchange Commis-
sion 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. 
JULY 31, 2018 
Committed to the Committee of the Whole House on the 
State of the Union and ordered to be printed 
VerDate Sep 11 2014 
20:38 Jul 31, 2018
Jkt 079200
PO 00000
Frm 00006
Fmt 6651
Sfmt 6651
E:\BILLS\H6319.RH
H6319
tkelley on DSKBCP9HB2PROD with BILLS