IB 
Union Calendar No. 311 
114TH CONGRESS 
2D SESSION 
H. R. 3784 
[Report No. 114–408] 
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. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 21, 2015 
Mr. CARNEY (for himself, Mr. DUFFY, Mr. QUIGLEY, and Mr. CRENSHAW) 
introduced the following bill; which was referred to the Committee on Fi-
nancial Services 
FEBRUARY 1, 2016 
Additional sponsors: Mr. SHERMAN, Mr. FINCHER, Mrs. CAROLYN B. MALO-
NEY of New York, Miss RICE of New York, Mr. KILDEE, and Ms. 
VELA´ZQUEZ 
FEBRUARY 1, 2016 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on October 21, 2015] 
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A BILL 
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. 
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‘‘(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 busi-
nesses and encouraging small business cap-
ital 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 re-
port directly to the Commission. 
‘‘(C) NO CURRENT EMPLOYEE OF THE COM-
MISSION.—An individual may not be appointed 
as the Advocate for Small Business Capital For-
mation if the individual is currently 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 service staff, as the Advo-
cate for Small Business Capital Formation deter-
mines to be necessary to carry out the functions of the 
Office. 
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‘‘(4) FUNCTIONS OF THE ADVOCATE FOR SMALL 
BUSINESS
CAPITAL
FORMATION.—The Advocate for 
Small Business Capital Formation shall— 
‘‘(A) assist small businesses and small busi-
ness investors in resolving significant problems 
such businesses and investors may have with the 
Commission or with self-regulatory organiza-
tions; 
‘‘(B) identify areas in which small busi-
nesses and small business investors would benefit 
from changes in the regulations of the Commis-
sion 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 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 
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formation of self-regulatory organizations 
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 
Commission changes in the regulations or orders 
of the Commission and to Congress any legisla-
tive, administrative, or personnel changes that 
may be appropriate to mitigate problems identi-
fied under this paragraph and to promote the in-
terests of small businesses and small business in-
vestors; 
‘‘(G) consult with the Investor Advocate on 
proposed recommendations made under subpara-
graph (F); and 
‘‘(H) advise the Investor Advocate on issues 
related to small businesses and small business in-
vestors. 
‘‘(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-reg-
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ulatory organization, as necessary to carry out the 
functions of the Office. 
‘‘(6) ANNUAL REPORT ON ACTIVITIES.— 
‘‘(A) IN GENERAL.—Not later than Decem-
ber 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 Committee 
on Financial Services of the House of Represent-
atives a report on the activities of the Advocate 
for Small Business Capital Formation during 
the immediately preceding fiscal year. 
‘‘(B) CONTENTS.—Each report required 
under subparagraph (A) shall include— 
‘‘(i) appropriate statistical informa-
tion and full and substantive analysis; 
‘‘(ii) information on steps that the Ad-
vocate for Small Business Capital Forma-
tion 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 encountered by small businesses and 
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small business investors, including any 
unique issues encountered by minority- 
owned and women-owned small businesses 
and their investors, during the reporting pe-
riod; 
‘‘(iv) an inventory of the items sum-
marized 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 begin-
ning 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 ac-
tion has been taken, the reasons for in-
action, and an identification of any of-
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ficial who is responsible for such ac-
tion; 
‘‘(v) recommendations for such changes 
to the regulations, guidance and orders of 
the Commission and such legislative actions 
as may be appropriate to resolve problems 
with the Commission and self-regulatory or-
ganizations encountered by small businesses 
and small business investors and to encour-
age small business capital formation; and 
‘‘(vi) any other information, as deter-
mined appropriate by the Advocate for 
Small Business Capital Formation. 
‘‘(C) 
CONFIDENTIALITY.—No 
report 
re-
quired by subparagraph (A) may contain con-
fidential information. 
‘‘(D) INDEPENDENCE.—Each report re-
quired under subparagraph (A) shall be provided 
directly to the committees of Congress listed in 
such subparagraph without any prior review or 
comment from the Commission, any commis-
sioner, any other officer or employee of the Com-
mission, or the Office of Management and Budg-
et. 
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