In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.

[Q]: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Expanding Access to Medical Records 
Act''.

SEC. 2. FULL ACCESS TO MEDICARE INFORMATION BY THE AUTHORIZED 
              REPRESENTATIVE OF A DECEASED BENEFICIARY.

    (a) In General.--Title XVIII of the Social Security Act (42 U.S.C. 
1395 et seq.) is amended by adding at the end the following new 
section:

``full access to medicare information by the authorized representative 
                       of a deceased beneficiary

    ``Sec. 1899.  (a) In General.--In the case of the death of an 
individual entitled to, or enrolled for, benefits under part A or 
enrolled for benefits under part B, the Secretary shall--
            ``(1) make available to the authorized representative of 
        the individual all information concerning the individual's 
        benefits under this title, including--
                    ``(A) the coverage and status of such benefits (as 
                of the day before the individual's death); and
                    ``(B) billing, claims, and payment information 
                regarding items and services furnished to the 
                individual under this title (on or before such day); 
                and
            ``(2) provide such authorized representative access to any 
        source of information maintained by the Federal government with 
        respect to such benefits, including online databases, that the 
        individual had access to during his or her lifetime.
    ``(b) Definition of Authorized Representative; Special Rules.--
            ``(1) In general.--In this section, the term `authorized 
        representative' means an executor, administrator, or other 
        individual who has authority to act on the deceased 
        individual's behalf (as determined by the Secretary under 
        paragraph (2)).
            ``(2) Determination of authorized representative.--
                    ``(A) In general.--The Secretary shall establish 
                procedures under which the Secretary determines whether 
                an individual is an authorized representative of the 
                deceased individual. Under such procedures, the 
                individual seeking such determination shall provide 
                evidence (in such form and such manner as specified by 
                the Secretary) of the individual's legal authority to 
                act on behalf of the deceased individual.
                    ``(B) Timeline for determination.--The Secretary 
                shall make a determination under subparagraph (A) not 
                later than 30 days after receipt of the evidence 
                described in such subparagraph.
            ``(3) Notification and access to information.--After making 
        a determination under paragraph (2) with respect to an 
        individual, the Secretary shall--
                    ``(A) notify the individual of the determination 
                not later than 7 days after the date on which the 
                determination is made; and
                    ``(B) in the case where such individual is so 
                determined to be the authorized representative of the 
                deceased individual, as soon as practicable--
                            ``(i) make available to the authorized 
                        representative the information described in 
                        paragraph (1) of subsection (a); and
                            ``(ii) provide the authorized 
                        representative access to the sources described 
                        in paragraph (2) of such subsection.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date that is 60 days after the date of enactment of this 
Act.

SEC. 3. FULL ACCESS TO MEDICAID INFORMATION BY THE AUTHORIZED 
              REPRESENTATIVE OF A DECEASED BENEFICIARY.

    (a) In General.--Title XIX of the Social Security Act (42 U.S.C. 
1396 et seq.) is amended by adding at the end the following new 
section:

``full access to medicaid information by the authorized representative 
                       of a deceased beneficiary

    ``Sec. 1943.  (a) In General.--In the case of the death of an 
individual enrolled under the State plan for medical assistance or 
under a waiver of such plan, the State Medicaid agency shall--
            ``(1) make available to the authorized representative of 
        the individual all information concerning the individual's 
        benefits under this title, including--
                    ``(A) the coverage and status of such benefits (as 
                of the day before the individual's death); and
                    ``(B) billing, claims, and payment information 
                regarding items and services furnished to the 
                individual under this title (on or before such day); 
                and
            ``(2) provide such authorized representative access to any 
        source of information maintained by the State with respect to 
        such benefits, including online databases, that the individual 
        had access to during his or her lifetime.
    ``(b) Definition of Authorized Representative; Special Rules.--
            ``(1) In this section, the term `authorized representative' 
        means an executor, administrator, or other individual who has 
        authority to act on the deceased individual's behalf (as 
        determined by the State Medicaid agency under paragraph (2)).
            ``(2) Determination of authorized representative.--
                    ``(A) In general.--The State Medicaid agency shall 
                establish procedures under which such agency determines 
                whether an individual qualifies as an authorized 
                representative of the deceased individual. Under such 
                procedures, the individual seeking such a determination 
                shall provide evidence (in such form and such manner as 
                specified by the State Medicaid Agency) of the 
                individual's legal authority to act on behalf of the 
                deceased individual.
                    ``(B) Timeline for determination.--The State 
                Medicaid agency shall make a determination under 
                subparagraph (A) not later than 30 days after receipt 
                of the evidence described in such subparagraph.
            ``(3) Notification and access to information.--After making 
        a determination under paragraph (2) with respect to an 
        individual, the State Medicaid Agency shall--
                    ``(A) notify the individual of the determination 
                not later than 7 days after the date on which the 
                determination is made; and
                    ``(B) in the case where such individual is so 
                determined to be the authorized representative of the 
                deceased individual, as soon as practicable--
                            ``(i) make available to the authorized 
                        representative the information described in 
                        paragraph (1) of subsection (a); and
                            ``(ii) provide the authorized 
                        representative access to the sources described 
                        in paragraph (2) of such subsection.
    ``(c) Definition of State Medicaid Agency.--The term `State 
Medicaid agency' means the State agency responsible for administering 
the State plan established under this title or any waiver of such 
plan.''.
    (b) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendment made by this section shall take effect on the date 
        that is 60 days after the date of enactment of this Act.
            (2) Extension of effective date for state law amendment.--
        In the case of a State plan under this title which the 
        Secretary of Health and Human Services determines requires 
        State legislation in order for the plan to meet the additional 
        requirements imposed by the amendment made by subsection (a), 
        the State plan shall not be regarded as failing to comply with 
        the requirements of such title solely on the basis of its 
        failure to meet these additional requirements before the first 
        day of the first calendar quarter beginning after the close of 
        the first regular session of the State legislature that begins 
        after the date of the enactment of this Act. For purposes of 
        the previous sentence, in the case of a State that has a 2-year 
        legislative session, each year of the session is considered to 
        be a separate regular session of the State legislature.
[A]: Expanding Access to Medical Records Act - Amends titles XVIII (Medicare) and XIX (Medicaid) of the Social Security Act to require the Secretary of Health and Human Services (HHS) grant the authorized representative of a deceased beneficiary full access to information with respect to the deceased beneficiary's benefits under the Medicare and Medicaid programs.


[Q]: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Consumer Telephone Records 
Protection Act of 2006''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) telephone records can be of great use to criminals 
        because the information contained in call logs listed in such 
        records include a wealth of personal information;
            (2) many call logs reveal the names of many users' doctors, 
        public and private relationships, business associates, and 
        more;
            (3) although other personal information, such as social 
        security numbers may appear in public documents, which can be 
        accessed by data brokers, the only warehouse of telephone 
        records is located at the telephone companies themselves; and
            (4) telephone records may be accessed without authorization 
        of the customer by--
                    (A) an employee of the telephone company selling 
                the data;
                    (B) ``pretexting'', whereby a data broker or other 
                person pretends to be the owner of the phone and 
                convinces the telephone company's employees to release 
                the data to them; or
                    (C) unauthorized access of accounts via the 
                Internet; and
            (5) because telephone companies encourage customers to 
        manage their accounts online, many set up the online capability 
        in advance. Many customers never access their Internet 
        accounts, however. If someone seeking the information activates 
        the account before the customer, he or she can gain unfettered 
        access to the telephone records and call logs of that customer.

SEC. 3. PRIVACY PROTECTION FOR CUSTOMER INFORMATION OF 
              TELECOMMUNICATIONS CARRIERS.

    (a) Prohibition on Obtaining Customer Information by False 
Pretenses.--It shall be unlawful for any person to obtain or attempt to 
obtain, or cause to be disclosed or attempt to cause to be disclosed to 
any person, customer proprietary network information relating to any 
other person by--
            (1) making a false, fictitious, or fraudulent statement or 
        representation to an officer, employee, or agent of a 
        telecommunications carrier; or
            (2) by providing, through any means including the Internet, 
        any document or other information to a telecommunications 
        carrier or an officer, employee, or agent of a 
        telecommunications carrier, knowing that the document or other 
        information is forged, counterfeit, lost, or stolen, was 
        obtained fraudulently or without the customer's consent, or 
        contains a false, fictitious, or fraudulent statement or 
        representation.
    (b) Prohibition on Solicitation of a Person to Obtain Customer 
Information Under False Pretenses.--It shall be unlawful to request a 
person to obtain customer proprietary network information of a 
telecommunications carrier, knowing that the person will obtain, or 
attempt to obtain, the information from the telecommunications carrier 
in the manner described in subsection (a).
    (c) Prohibition on Sale or Other Disclosure of Customer Information 
Obtained Under False Pretenses.--It shall be unlawful for any person to 
sell customer proprietary network information relating to any other 
person, knowing that such information was obtained in the manner 
described in subsection (a).
    (d) Nonapplicability to Law Enforcement Agencies.--No provision of 
this section shall be construed so as to prevent any action by a law 
enforcement agency, or any officer, employee, or agent of such agency, 
to obtain customer proprietary network information of a 
telecommunications carrier in connection with the performance of 
official duties of the agency.

SEC. 4. TELECOMMUNICATIONS CARRIER NOTIFICATION REQUIREMENT.

    Section 222 of the Communications Act of 1934 (47 U.S.C. 222) is 
amended--
            (1) by redesignating subsection (h) as subsection (i); and
            (2) by inserting after subsection (g) the following new 
        subsection:
    ``(h) Notice of Violations.--The Commission shall by regulation 
require each telecommunications carrier to notify the customer of any 
incidents in which such telecommunications carrier becomes or is made 
aware in which customer proprietary network information relating to 
such customer is disclosed to someone other than the customer in 
violation of this section or section 3 of the Consumer Telephone 
Records Protection Act of 2006.''.

SEC. 5. ENFORCEMENT BY THE FEDERAL TRADE COMMISSION.

    A violation of section 3 shall be treated as an unfair or deceptive 
act or practice in violation of section 5 of the Federal Trade 
Commission Act (15 U.S.C. 45). All of the functions and powers of the 
Federal Trade Commission under that Act are available to the Commission 
to enforce compliance by any person with such section, irrespective of 
whether that person is engaged in commerce or meets any other 
jurisdictional tests in the Federal Trade Commission Act, including the 
power to enforce the provisions of such section in the same manner as 
if the violation had been a violation of a Federal Trade Commission 
trade regulation rule.

SEC. 6. CRIMINAL PENALTY.

    (a) In General.--Whoever knowingly and intentionally violates 
section 3 shall be fined in accordance with title 18, United States 
Code, or imprisoned for not more than 5 years, or both.
    (b) Enhanced Penalties for Aggravated Cases.--Whoever violates 
section 3 while violating another law of the United States or as part 
of a pattern of any illegal activity involving more than $100,000, or 
more than 50 customers of a telecommunications carrier, in a 12-month 
period shall be fined twice the amount provided in section 3571 of 
title 18, or imprisoned for not more than 10 years, or both.

SEC. 7. DEFINITIONS.

    As used in this Act, the following definitions apply:
            (1) Customer proprietary network information.--The term 
        ``customer proprietary network information'' has the meaning 
        given such term in section 222(h)(1) of the Communications Act 
        of 1934 (47 U.S.C. 222(h)(1)).
            (2) Telecommunications carrier.--The term 
        ``telecommunications carrier'' has the meaning given such term 
        in section 3(44) of the Communications Act of 1934 (47 U.S.C. 
        153(44)).
[A]: Consumer Telephone Records Protection Act of 2006 - Prohibits any person from obtaining or causing the disclosure of, or requesting another person to obtain, customer proprietary network information relating to another person by: (1) making a false statement to a telecommunications carrier; or (2) providing any information knowing that it is counterfeit, that it was obtained fraudulently or without the customer's consent, or that it contains a false statement. Prohibits a person from selling customer information relating to any other person knowing it was obtained in such manner.

Amends the Communications Act of 1934 to direct the Federal Communications Commission (FCC) to require each telecommunications carrier to notify a customer when proprietary network information relating to such customer is disclosed in violation of such prohibitions.

Treats a violation as an unfair or deceptive act or practice in violation of the Federal Trade Commission Act. Gives all of the functions and powers of the Federal Trade Commission (FTC) under that Act to the FCC to enforce compliance. Prescribes penalties, which double for violations that are part of a pattern of illegal activity.


[Q]: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Incentive Act of 
1993''.

SEC. 2. EXEMPTED SECURITIES.

    Section 3(b) of the Securities Act of 1933 (15 U.S.C. 77c(b)) is 
amended by striking ``$5,000,000'' and inserting ``$10,000,000''.

SEC. 3. EXCLUSIONS FROM THE DEFINITION OF INVESTMENT COMPANY.

    Section 3(c) of the Investment Company Act of 1940 (15 U.S.C. 80a-
3(c)) is amended--
            (1) in paragraph (1), by inserting after the first sentence 
        the following new sentence: ``Such issuer shall be deemed to be 
        an investment company for purposes of the limitations set forth 
        in subparagraphs (A)(i) and (B)(i) of section 12(d)(1) 
        governing the purchase or other acquisition by such issuer of 
        any security issued by a registered investment company and the 
        sale of any security issued by a registered open-end investment 
        company to any such issuer.'';
            (2) in paragraph (1)(A)--
                    (A) by inserting after ``issuer'' the first place 
                it appears ``and the company is or (but for the 
                exceptions set forth in this paragraph and paragraph 
                (7)) would be an investment company''; and
                    (B) by striking ``unless as of the date'' and all 
                that follows through the end of subparagraph (A) and 
                inserting a period; and
            (3) by amending paragraph (7) to read as follows:
            ``(7) Any issuer whose outstanding securities are owned 
        exclusively by persons who, at the time of acquisition of such 
        securities, are qualified purchasers, except that such issuer 
        shall be deemed to be an investment company for purposes of the 
        limitations set forth in subparagraphs (A)(i) and (B)(i) of 
        section 12(d)(1) governing the purchase or other acquisition by 
        such issuer of any security issued by a registered investment 
        company and the sale of any security issued by a registered 
        open-end investment company to any such issuer.''.

SEC. 4. DEFINITION OF QUALIFIED PURCHASER.

    Section 2(a) of the Investment Company Act of 1940 (15 U.S.C. 80a-
2(a)) is amended by adding at the end the following new paragraph:
            ``(51) `Qualified purchaser' means--
                    ``(A) any natural person who owns at least 
                $10,000,000 in securities of issuers, each of which is 
                not an affiliated person, as defined in section 
                2(a)(3)(C), of such person;
                    ``(B) any person, acting for its own account or the 
                accounts of other qualified purchasers, who in the 
                aggregate owns and invests on a discretionary basis, 
                not less than $100,000,000 in securities of issuers, 
                each of which is not an affiliated person, as defined 
                in section 2(a)(3)(C), of such person; or
                    ``(C) any person, who may own or invest a lesser 
                amount in securities than specified in subparagraphs 
                (A) and (B), that the Commission, by rule or 
                regulation, has determined does not need the 
                protections of this title, after consideration of 
                factors such as--
                            ``(i) a high degree of financial 
                        sophistication, including extensive knowledge 
                        of and experience in financial matters;
                            ``(ii) sizable net worth;
                            ``(iii) a substantial amount of assets 
                        owned or under management;
                            ``(iv) relationship with an issuer; or
                            ``(v) such other factors as the Commission 
                        may determine to be consistent with the purpose 
                        of this paragraph.
        The Commission also may adopt such rules and regulations 
        governing the persons specified in subparagraphs (A) and (B) as 
        it determines are necessary or appropriate in the public 
        interest and for the protection of investors.''.

SEC. 5. DEFINITION OF INVESTMENT SECURITIES.

    Section 3(a) of the Investment Company Act of 1940 (15 U.S.C. 80a-
3(a)) is amended in the last sentence by striking subparagraph (C) and 
inserting the following: ``(C) securities issued by any majority-owned 
subsidiary of the owner, unless such subsidiary is an investment 
company or is excluded from the definition of an investment company 
solely by virtue of paragraph (1) or (7) of subsection (c).''.

SEC. 6. EXEMPTION FOR ECONOMIC, BUSINESS, AND INDUSTRIAL DEVELOPMENT 
              COMPANIES.

    Section 6(a) of the Investment Company Act of 1940 (15 U.S.C. 80a-
6(a)) is amended by adding at the end the following new paragraph:
            ``(5)(A) Any company that is not engaged in the business of 
        issuing redeemable securities, the operations of which are 
        subject to regulation by the State in which the company is 
        organized under a statute governing entities that provide 
        financial or managerial assistance to enterprises doing 
        business, or proposing to do business, in that State if--
                    ``(i) the organizational documents of the company 
                state that the activities of the company are limited to 
                the promotion of economic, business, or industrial 
                development in the State through the provision of 
                financial or managerial assistance to enterprises doing 
                business, or proposing to do business, in that State, 
                and such other activities that are incidental or 
                necessary to carry out that purpose;
                    ``(ii) immediately following each sale of the 
                securities of the company by the company or any 
                underwriter for the company, not less than 80 percent 
                of the securities of the company being offered in such 
                sale, on a class-by-class basis, are held by persons 
                who reside or have a substantial business presence in 
                that State;
                    ``(iii) the securities of the company are sold, or 
                proposed to be sold, by the company or any underwriter 
                for the company, solely to accredited investors, as 
                defined in section 2(15) of the Securities Act of 1933, 
                or to such other persons that the Commission, as 
                necessary or appropriate in the public interest and 
                consistent with the protection of investors, may permit 
                by rule, regulation, or order; and
                    ``(iv) the company does not purchase any security 
                issued by an investment company, as defined in section 
                3, or by any company that would be an investment 
                company except for the exclusions from the definition 
                of investment company in section 3(c), other than--
                            ``(I) any security that is rated investment 
                        grade by at least 1 nationally recognized 
                        statistical rating organization; or
                            ``(II) any security issued by a registered 
                        open-end investment company that is required by 
                        its investment policies to invest not less than 
                        65 percent of its total assets in securities 
                        described in subclause (I) or securities that 
                        are determined by such registered open-end 
                        investment company to be comparable in quality 
                        to securities described in subclause (I).
            ``(B) Notwithstanding the exemption provided by this 
        paragraph, the provisions of section 9 (and, to the extent 
        necessary to enforce such provisions, sections 38 through 51) 
        of this title shall apply to a company described in this 
        paragraph as if the company were an investment company 
        registered under this title.
            ``(C) Any company proposing to rely on the exemption 
        provided by this paragraph shall file with the Commission a 
        notification stating that the company intends to do so, in such 
        form and manner as the Commission may prescribe by rule.
            ``(D) Any company meeting the requirements of this 
        paragraph may rely on the exemption provided by this paragraph 
        upon filing with the Commission the notification required by 
        subparagraph (C), until such time as the Commission determines 
        by order that such reliance is not in the public interest or 
        consistent with the protection of investors.
            ``(E) The exemption provided by this paragraph may be 
        subject to such additional terms and conditions as the 
        Commission may by rule, regulation, or order determine are 
        necessary or appropriate in the public interest or for the 
        protection of investors.''.

SEC. 7. INTRASTATE CLOSED-END INVESTMENT COMPANY EXEMPTION.

    Section 6(d)(1) of the Investment Company Act of 1940 (15 U.S.C. 
80a-6(d)(1)) is amended by striking ``$100,000'' and inserting 
``$10,000,000, or such other amount as the Commission may set by rule, 
regulation, or order''.

SEC. 8. DEFINITION OF ELIGIBLE PORTFOLIO COMPANY.

    Section 2(a)(46)(C) of the Investment Company Act of 1940 (15 
U.S.C. 80a-2(a)(46)(C)) is amended--
            (1) in clause (ii), by striking ``or'' at the end;
            (2) by redesignating clause (iii) as clause (iv); and
            (3) by inserting after clause (ii) the following:
                            ``(iii) it has total assets of not more 
                        than $4,000,000, and capital and surplus 
                        (shareholders' equity less retained earnings) 
                        of not more than $2,000,000, except that the 
                        Commission may adjust such amounts by rule, 
                        regulation, or order to reflect changes in 1 or 
                        more generally accepted indices or other 
                        indicators for small businesses; or''.

SEC. 9. DEFINITION OF BUSINESS DEVELOPMENT COMPANY.

    Section 2(a)(48)(B) of the Investment Company Act of 1940 (15 
U.S.C. 80a-2(a)(48)(B)) is amended by inserting before the semicolon at 
the end the following: ``, and provided further that a business 
development company need not make available significant managerial 
assistance with respect to any company described in section 
2(a)(46)(C)(iii), or with respect to any other company that meets such 
criteria as the Commission may by rule, regulation, or order permit, as 
consistent with the public interest, the protection of investors, and 
the purposes fairly intended by the policy and provisions of this 
title''.

SEC. 10. ACQUISITION OF ASSETS BY BUSINESS DEVELOPMENT COMPANIES.

    Section 55(a)(1)(A) of the Investment Company Act of 1940 (15 
U.S.C. 80a-54(a)(1)(A)) is amended--
            (1) by striking ``or from any person'' and inserting ``from 
        any person''; and
            (2) by inserting before the semicolon ``, or from any other 
        person, subject to such rules and regulations as the Commission 
        may prescribe as necessary or appropriate in the public 
        interest or for the protection of investors''.

SEC. 11. CAPITAL STRUCTURE AMENDMENTS.

    Section 61(a) of the Investment Company Act of 1940 (15 U.S.C. 80a-
60(a)) is amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1)(A) The asset coverage requirements of subparagraphs 
        (A) and (B) of section 18(a)(1) applicable to business 
        development companies shall be 200 percent.
            ``(B) Notwithstanding subparagraph (A) of this section or 
        subparagraphs (A) and (B) of section 18(a)(2), a business 
        development company may have an asset coverage of not less than 
        110 percent, if, immediately before the issuance or sale of 
        senior securities, the business development company has--
                    ``(i) total interest and dividend income for the 12 
                months preceding such issuance or sale that exceeds 120 
                percent of the sum of its total expenses (including 
                taxes and interest expenses accrued) and dividends 
                declared on senior securities for that 12-month period; 
                and
                    ``(ii) either--
                            ``(I) an average of not less than 50 
                        percent of its assets invested in securities 
                        described in paragraphs (1) through (5) of 
                        section 55(a) throughout the preceding 12-month 
                        period; or
                            ``(II) not less than 50 percent of its 
                        assets invested in securities described in 
                        paragraphs (1) through (5) of section 55(a) 
                        throughout 10 months of the preceding 12-month 
                        period.
            ``(C) It shall be unlawful for any business development 
        company to issue any class of senior security representing 
        indebtedness, or to sell any such security pursuant to 
        subparagraph (B), unless provision is made to prohibit the 
        declaration of any dividend (except a dividend payable in stock 
        of the issuer), or the declaration of any other distribution 
        upon any class of the capital stock of such business 
        development company, or the purchase of any such capital stock, 
        unless, in every such case--
                    ``(i) the class of senior securities has, at the 
                time of the declaration of any such dividend or 
                distribution or at the time of any such purchase, an 
                asset coverage of not less than 110 percent after 
                deducting the amount of such dividend, distribution, or 
                purchase price, as the case may be; and
                    ``(ii) the business development company complies 
                with subparagraph (B)(i), except with respect to any 
                amounts that are required to be distributed to maintain 
                the status of the company as a regulated investment 
                company under the Internal Revenue Code of 1986.
            ``(D) It shall be unlawful for any business development 
        company to issue any class of senior security representing 
        stock, or to sell any such security pursuant to subparagraph 
        (B), unless provision is made to prohibit the declaration of 
        any dividend (except a dividend payable in common stock of the 
        issuer), or the declaration of any other distribution, upon the 
        common stock of such business development company, or the 
        purchase of any such common stock, unless, in every such case--
                    ``(i) the class of senior securities has, at the 
                time of the declaration of any such dividend or 
                distribution or at the time of any such purchase an 
                asset coverage of not less than 110 percent after 
                deducting the amount of such dividend, distribution, or 
                purchase price, as the case may be; and
                    ``(ii) the business development company complies 
                with subparagraph (B)(i), except with respect to any 
                amounts that are required to be distributed to maintain 
                the status of the company as a regulated investment 
                company under the Internal Revenue Code of 1986.'';
            (2) in paragraph (2), by striking ``if such business 
        development company'' and all that follows through the end of 
        paragraph (2) and inserting a period;
            (3) in paragraph (3)(A)--
                    (A) by striking ``senior securities representing 
                indebtedness accompanied by'';
                    (B) inserting ``accompanied by securities,'' after 
                ``of such company,''; and
                    (C) in clause (ii), by striking ``senior''; and
            (4) in paragraph (3)--
                    (A) in subparagraph (A), by striking ``and'' at the 
                end;
                    (B) in subparagraph (B), by striking the period at 
                the end of clause (iv) and inserting ``; and''; and
                    (C) by inserting after subparagraph (B) the 
                following new subparagraph:
                    ``(C) a business development company may issue 
                warrants, options, or rights to subscribe to, convert 
                to, or purchase voting securities not accompanied by 
                securities, if--
                            ``(i) such warrants, options, or rights 
                        satisfy the conditions in clauses (i) and (iii) 
                        of subparagraph (A); and
                            ``(ii) the proposal to issue such warrants, 
                        options, or rights is authorized by the 
                        shareholders or partners of such business 
                        development company, and such issuance is 
                        approved by the required majority (as defined 
                        in section 57(o)) of the directors of or 
                        general partners in such company on the basis 
                        that such issuance is in the best interests of 
                        the company and its shareholders or 
                        partners.''.

SEC. 12. FILING OF WRITTEN STATEMENTS.

    Section 64(b)(1) of the Investment Company Act of 1940 (15 U.S.C. 
80a-63(b)(1)) is amended by inserting ``and capital structure'' after 
``portfolio''.
            Passed the Senate November 2, 1993.
            Attest:
                                                     WALTER J. STEWART,
                                                             Secretary.
S 479 ES----2
S 479 ES----3
S 479 ES----4
S 479 ES----5
[A]:
Small Business Incentive Act of 1993 - Amends the Securities Act of 1933 to increase from $5 million to $10 million the size of small business offerings that are exempt from the registration requirements of the Act. 
Amends the Investment Company Act of 1940 to exclude from its definition of "investment company" any issuer all of whose securities are held by certain investors whom the Securities and Exchange Commission (SEC) has determined are "qualified purchasers" who possess such financial sophistication, net worth, and other specified factors as not to need the protections of such Act. Empowers the SEC to define such "qualified purchasers." 
Sets forth conditions under which certain economic, business, and industrial development companies that are already subject to regulation by the State in which they are organized are exempt from the regulatory constraints of such Act. 
Increases to $10 million the maximum aggregate amount of proceeds that certain interstate closed-end investment companies may receive from the sale of their outstanding securities and still retain their exempt status under such Act. 
Expands the definition of "eligible portfolio company" to include any company which does not have total assets in excess of $4 million and capital and surpluses in excess of $2 million. 
Declares that a "business development company" is not required to make available significant managerial assistance with respect to any eligible portfolio company or any other company that meets certain SEC criteria. 
Permits a business development company to:  (1) acquire the securities of an eligible portfolio company from persons other than such portfolio company itself; (2) issue multiple classes of debt without restriction; and (3) issue warrants, options, or rights to subscribe or convert to or purchase voting securities either alone or accompanied by debt or equity securities. 
Provides conditions under which a business development company may: 
(1) have a minimum asset coverage of 110 percent; and (2) issue or sell any class of senior security representing indebtedness. 
Requires a business development company to file with the SEC a written evaluation of the risk factors involved in investment due to the nature of the company's capital structure.