[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2792 Referred in Senate (RFS)]

<DOC>
118th CONGRESS
  1st Session
                                H. R. 2792


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                 May 31 (legislative day, May 30), 2023

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 
   and rulemaking on the definition of the term ``small entity'' for 
        purposes of the securities laws, 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 ``Small Entity Update Act''.

SEC. 2. STUDIES, REPORTS, AND RULES REGARDING SMALL ENTITIES.

    (a) Definitions.--In this section--
            (1) the term ``Commission'' means the Securities and 
        Exchange Commission; and
            (2) the term ``small entity''--
                    (A) has the meaning given the term in section 601 
                of title 5, United States Code, with respect to the 
                activities of the Commission; and
                    (B) includes any definition established by the 
                Commission of the term ``small business'', ``small 
                organization'', or ``small governmental jurisdiction'' 
                under paragraph (3), (4), or (5), respectively, of 
                section 601 of title 5, United States Code, with 
                respect to the activities of the Commission.
    (b) Studies and Reports.--Not later than 1 year after the date of 
enactment of this Act, and again 5 years thereafter, the Commission 
shall--
            (1) conduct a study of the definition of the term ``small 
        entity'' with respect to the activities of the Commission for 
        the purposes of chapter 6 of title 5, United States Code, which 
        shall consider--
                    (A) the extent to which the definition of the term 
                ``small entity'', as in effect during the period in 
                which the study is conducted, aligns with the findings 
                and declarations made under section 2(a) of the 
                Regulatory Flexibility Act (5 U.S.C. 601 note);
                    (B) the amount by which financial markets in the 
                United States have grown since the last time the 
                Commission amended the definition of the term ``small 
                entity'', if applicable; and
                    (C) how the Commission should define the term 
                ``small entity'' to ensure that a meaningful number of 
                entities would fall under that definition; and
            (2) submit to Congress a report that includes--
                    (A) the results of the applicable study conducted 
                under paragraph (1); and
                    (B) specific and detailed recommendations on the 
                ways in which the Commission could amend the definition 
                of the term ``small entity'' to--
                            (i) be consistent with the results 
                        described in subparagraph (A); and
                            (ii) expand the number of entities covered 
                        by such definition.
    (c) Rulemaking.--After the completion of each study required under 
subsection (b), the Commission shall, subject to public notice and 
comment, revise the rules of the Commission consistent with the results 
of such study.
    (d) Inflation Adjustments.--As soon as practicable following the 
date of enactment of this Act, and every 5 years thereafter, the 
Commission shall adjust all dollar figures under the definition of 
small entity established by the Commission to reflect the change in the 
Consumer Price Index for All Urban Consumers published by the Bureau of 
Labor Statistics of the Department of Labor.

            Passed the House of Representatives May 30, 2023.

            Attest:

                                             CHERYL L. JOHNSON,

                                                                 Clerk.