[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3050 Referred in Senate (RFS)]

<DOC>
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.

    Be it enacted by the Senate and House of Representatives 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 of 2019''.

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 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.

            Attest:

                                             CHERYL L. JOHNSON,

                                                                 Clerk.