[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4227 Engrossed in House (EH)]

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117th CONGRESS
  2d Session
                                H. R. 4227

_______________________________________________________________________

                                 AN ACT


 
    To require the Securities and Exchange Commission to revise the 
  definition of a qualifying investment to include an equity security 
  issued by a qualifying portfolio company, whether acquired directly 
  from the company or in a secondary acquisition, for purposes of the 
exemption from registration for venture capital fund advisers under the 
        Investment Advisers 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 ``Developing and Empowering our 
Aspiring Leaders Act of 2022''.

SEC. 2. DEFINITIONS.

    Not later than the end of the 180-day period beginning on the date 
of the enactment of this Act, if the Securities and Exchange Commission 
determines the revisions would facilitate capital formation without 
compromising investor protection, the Commission shall--
            (1) revise the definition of a qualifying investment under 
        paragraph (c) of section 275.203(l)-1 of title 17, Code of 
        Federal Regulations, to include an equity security issued by a 
        qualifying portfolio company, whether acquired directly from 
        the company or in a secondary acquisition; and
            (2) revise paragraph (a) of such section to require, as a 
        condition of a private fund qualifying as a venture capital 
        fund under such paragraph, that the qualifying investments of 
        the private fund are predominantly qualifying investments that 
        were acquired directly from a qualifying portfolio company.

            Passed the House of Representatives July 26, 2022.

            Attest:

                                                                 Clerk.
117th CONGRESS

  2d Session

                               H. R. 4227

_______________________________________________________________________

                                 AN ACT

    To require the Securities and Exchange Commission to revise the 
  definition of a qualifying investment to include an equity security 
  issued by a qualifying portfolio company, whether acquired directly 
  from the company or in a secondary acquisition, for purposes of the 
exemption from registration for venture capital fund advisers under the 
        Investment Advisers Act of 1940, and for other purposes.