Expanding Investment in Small Businesses Act of 2019

Bill: 116-hr-3050
Sponsor: full_name: Rep. Steil, Bryan [R-WI-1]
Introduced: 2019-05-30
Policy area: Finance and Financial Sector
Subjects: Banking and financial institutions regulation

Business investment and capital

Competition and antitrust

Congressional oversight

Government information and archives

Government studies and investigations

Small business
Latest action: action_date: 2019-07-10
text: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2019-05-30
action_desc: Introduced in House
text: <p><b>Expanding Investment in Small Businesses Act of 2019</b></p> <p>This bill directs the Securities and Exchange Commission to report on (1)&nbsp;the limitiation on shares of an individual company that a diversified investment company may own, and (2) the limitation's impact on capital formation. </p>

action_date: 2019-07-09
action_desc: Passed House
text: <p><b>Expanding Investment in Small Businesses Act of 2019</b></p> <p>This bill directs the Securities and Exchange Commission to report on (1)&nbsp;the limitiation on shares of an individual company that a diversified investment company may own, and (2) the limitation's impact on capital formation. </p>

tv_txt: I 116th CONGRESS 1st Session H. R. 3050 IN THE HOUSE OF REPRESENTATIVES May 30, 2019 Mr. Steil introduced the following bill; which was referred to the Committee on Financial Services 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.

1. Short title This Act may be cited as the Expanding Investment in Small Businesses Act of 2019 . 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 diversified company under section 5(b)(1) of the Investment Company Act of 1940 ( 15 U.S.C. 80a–5(b)(1) ) and determine whether such threshold limits capital formation. (b) Considerations In carrying out the study required under subsection (a), the Commission shall consider the following: (1) The size and number of diversified companies 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 companies have shifted away from companies with smaller market capitalizations. (3) The expected increase in the availability of capital to small and emerging growth companies if the threshold is increased. (4) The ability of registered funds to manage liquidity risk. (5) Any other consideration that the Commission considers necessary and appropriate for the protection of investors. (c) Solicitation of public comments In carrying 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 carrying out the study required under subsection (a); and (2) any legislative recommendations of the Commission, including any recommendation to update the 10 per centum threshold.

tv_txt: I 116th CONGRESS 1st Session H. R. 3050 IN THE HOUSE OF REPRESENTATIVES 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.

1. Short title This Act may be cited as the Expanding Investment in Small Businesses Act of 2019 . 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 diversified company under section 5(b)(1) of the Investment Company Act of 1940 ( 15 U.S.C. 80a–5(b)(1) ) and determine the impacts of such threshold limits upon the protection of investors, efficiency, competition, and capital formation. (b) Considerations In carrying out the study required under subsection (a), the Commission shall consider the following: (1) The size and number of diversified companies 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 capital, related impacts on investor confidence and risk, and impacts on competition, if the threshold is increased or otherwise changed. (4) The ability of registered funds to manage liquidity risk. (5) Any other consideration that the Commission considers necessary and appropriate for the protection of investors. (c) Solicitation of public comments In carrying 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 carrying out the study required under subsection (a); and (2) any legislative recommendations of the Commission.

Passed the House of Representatives July 9, 2019. Karen L. Haas, Clerk.

tv_txt: 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.

1. Short title This Act may be cited as the Expanding Investment in Small Businesses Act of 2019 . 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 diversified company under section 5(b)(1) of the Investment Company Act of 1940 ( 15 U.S.C. 80a–5(b)(1) ) and determine the impacts of such threshold limits upon the protection of investors, efficiency, competition, and capital formation. (b) Considerations In carrying out the study required under subsection (a), the Commission shall consider the following: (1) The size and number of diversified companies 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 capital, related impacts on investor confidence and risk, and impacts on competition, if the threshold is increased or otherwise changed. (4) The ability of registered funds to manage liquidity risk. (5) Any other consideration that the Commission considers necessary and appropriate for the protection of investors. (c) Solicitation of public comments In carrying 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 carrying out the study required under subsection (a); and (2) any legislative recommendations of the Commission.

Passed the House of Representatives July 9, 2019. Cheryl L. Johnson, Clerk