[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2799 Engrossed in House (EH)]

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118th CONGRESS
  2d Session
                                H. R. 2799

_______________________________________________________________________

                                 AN ACT


 
 To make reforms to the capital markets of the United States, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Expanding Access 
to Capital Act of 2023''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                DIVISION A--STRENGTHENING PUBLIC MARKETS

 TITLE I--REMOVE ABERRATIONS IN THE MARKET CAP TEST FOR TARGET COMPANY 
                          FINANCIAL STATEMENTS

Sec. 1101. Avoiding aberrational results in requirements for 
                            acquisition and disposition financial 
                            statements.
              TITLE II--HELPING STARTUPS CONTINUE TO GROW

Sec. 1201. Short title.
Sec. 1202. Emerging growth company criteria.
    TITLE III--SEC AND PCAOB AUDITOR REQUIREMENTS FOR NEWLY PUBLIC 
                               COMPANIES

Sec. 1301. Auditor independence for certain past audits occurring 
                            before an issuer is a public company.
   TITLE IV--EXPAND THE PROTECTION FOR RESEARCH REPORTS TO COVER ALL 
                       SECURITIES OF ALL ISSUERS

Sec. 1401. Provision of research.
    TITLE V--EXCLUDE QIBS AND IAAS FROM THE RECORD HOLDER COUNT FOR 
                         MANDATORY REGISTRATION

Sec. 1501. Exclusions from mandatory registration threshold.
                   TITLE VI--EXPAND WKSI ELIGIBILITY

Sec. 1601. Definition of well-known seasoned issuer.
         DIVISION B--HELPING SMALL BUSINESSES AND ENTREPRENEURS

            TITLE I--UNLOCKING CAPITAL FOR SMALL BUSINESSES

Sec. 2101. Short title.
Sec. 2102. Safe harbors for private placement brokers and finders.
Sec. 2103. Limitations on State law.
            TITLE II--SMALL BUSINESS INVESTOR CAPITAL ACCESS

Sec. 2201. Short title.
Sec. 2202. Inflation adjustment for the exemption threshold for certain 
                            investment advisers of private funds.
         TITLE III--IMPROVING CAPITAL ALLOCATION FOR NEWCOMERS

Sec. 2301. Short title.
Sec. 2302. Qualifying venture capital funds.
       TITLE IV--SMALL ENTREPRENEURS' EMPOWERMENT AND DEVELOPMENT

Sec. 2401. Short title.
Sec. 2402. Micro-offering exemption.
                   TITLE V--REGULATION A+ IMPROVEMENT

Sec. 2501. Short title.
Sec. 2502. JOBS Act-related exemption.
        TITLE VI--DEVELOPING AND EMPOWERING OUR ASPIRING LEADERS

Sec. 2601. Short title.
Sec. 2602. Definitions.
Sec. 2603. Reports.
            TITLE VII--IMPROVING CROWDFUNDING OPPORTUNITIES

Sec. 2701. Short title.
Sec. 2702. Crowdfunding revisions.
           TITLE VIII--RESTORING THE SECONDARY TRADING MARKET

Sec. 2801. Short title.
Sec. 2802. Exemption from State regulation.
            DIVISION C--INCREASING ACCESS TO PRIVATE MARKETS

                TITLE I--GIG WORKER EQUITY COMPENSATION

Sec. 3101. Short title.
Sec. 3102. Extension of Rule 701.
Sec. 3103. GAO study.
               TITLE II--INVESTMENT OPPORTUNITY EXPANSION

Sec. 3201. Short title.
Sec. 3202. Investment thresholds to qualify as an accredited investor.
          TITLE III--RISK DISCLOSURE AND INVESTOR ATTESTATION

Sec. 3301. Short title.
Sec. 3302. Investor attestation.
  TITLE IV--ACCREDITED INVESTORS INCLUDE INDIVIDUALS RECEIVING ADVICE 
                       FROM CERTAIN PROFESSIONALS

Sec. 3401. Accredited investors include individuals receiving advice 
                            from certain professionals.
              DIVISION D--HELPING ANGELS LEAD OUR STARTUPS

Sec. 4001. Clarification of general solicitation.
             DIVISION E--IMPROVING DISCLOSURE FOR INVESTORS

Sec. 5001. Short title.
Sec. 5002. Electronic delivery.
                DIVISION F--ENHANCEMENT OF 403(b) PLANS

Sec. 6101. Short title.
Sec. 6102. Enhancement of 403(b) plans.
             DIVISION G--INCREASING INVESTOR OPPORTUNITIES

Sec. 7001. Closed-end company authority to invest in private funds.

                DIVISION A--STRENGTHENING PUBLIC MARKETS

 TITLE I--REMOVE ABERRATIONS IN THE MARKET CAP TEST FOR TARGET COMPANY 
                          FINANCIAL STATEMENTS

SEC. 1101. AVOIDING ABERRATIONAL RESULTS IN REQUIREMENTS FOR 
              ACQUISITION AND DISPOSITION FINANCIAL STATEMENTS.

    The Securities and Exchange Commission shall revise section 210.1-
02(w)(1)(i)(A) of title 17, Code of Federal Regulations, to permit a 
registrant, in determining the significance of an acquisition or 
disposition described in such section 210.1-02(w)(1)(i)(A), to 
calculate the registrant's aggregate worldwide market value based on 
the applicable trading value, conversion value, or exchange value of 
all of the registrant's outstanding classes of stock (including 
preferred stock and non-traded common shares that are convertible into 
or exchangeable for traded common shares) and not just the voting and 
non-voting common equity of the registrant.

              TITLE II--HELPING STARTUPS CONTINUE TO GROW

SEC. 1201. SHORT TITLE.

    This title may be cited as the ``Helping Startups Continue To Grow 
Act''.

SEC. 1202. EMERGING GROWTH COMPANY CRITERIA.

    (a) Securities Act of 1933.--Section 2(a)(19) of the Securities Act 
of 1933 (15 U.S.C. 77b(a)(19)) is amended--
            (1) by striking ``$1,000,000,000'' each place such term 
        appears and inserting ``$1,500,000,000'';
            (2) in subparagraph (B)--
                    (A) by striking ``fifth'' and inserting ``7-year''; 
                and
                    (B) by adding ``or'' at the end;
            (3) in subparagraph (C), by striking ``; or'' and inserting 
        a period; and
            (4) by striking subparagraph (D).
    (b) Securities Exchange Act of 1934.--Section 3(a) of the 
Securities Exchange Act of 1934 (15 U.S.C. 78c(a)) is amended, in the 
first paragraph (80) (related to emerging growth companies)--
            (1) by striking ``$1,000,000,000'' each place such term 
        appears and inserting ``$1,500,000,000'';
            (2) in subparagraph (B)--
                    (A) by striking ``fifth'' and inserting ``7-year''; 
                and
                    (B) by adding ``or'' at the end;
            (3) in subparagraph (C), by striking ``; or'' and inserting 
        a period; and
            (4) by striking subparagraph (D).

    TITLE III--SEC AND PCAOB AUDITOR REQUIREMENTS FOR NEWLY PUBLIC 
                               COMPANIES

SEC. 1301. AUDITOR INDEPENDENCE FOR CERTAIN PAST AUDITS OCCURRING 
              BEFORE AN ISSUER IS A PUBLIC COMPANY.

    (a) Auditor Independence Standards of the Public Company Accounting 
Oversight Board.--Section 103 of the Sarbanes-Oxley Act of 2002 (15 
U.S.C. 7213) is amended by adding at the end the following:
    ``(e) Auditor Independence for Certain Past Audits Occurring Before 
an Issuer Is a Public Company.--With respect to an issuer that is a 
public company or an issuer that has filed a registration statement to 
become a public company, the auditor independence rules established by 
the Board with respect to audits occurring before the last fiscal year 
of the issuer completed before the issuer filed a registration 
statement to become a public company shall treat an auditor as 
independent if--
            ``(1) the auditor is independent under standards 
        established by the American Institute of Certified Public 
        Accountants applicable to certified public accountants in 
        United States; or
            ``(2) with respect to a foreign issuer, the auditor is 
        independent under comparable standards applicable to certified 
        public accountants in the issuer's home country.''.
    (b) Auditor Independence Standards of the Securities and Exchange 
Commission.--Section 10A of the Securities Exchange Act of 1934 (15 
U.S.C. 78j-1) is amended by adding at the end the following:
    ``(n) Auditor Independence for Certain Past Audits Occurring Before 
an Issuer Is a Public Company.--With respect to an issuer that is a 
public company or an issuer that has filed a registration statement to 
become a public company, the auditor independence rules established by 
the Commission under the securities laws with respect to audits 
occurring before the last fiscal year of the issuer completed before 
the issuer filed a registration statement to become a public company 
shall treat an auditor as independent if--
            ``(1) the auditor is independent under standards 
        established by the American Institute of Certified Public 
        Accountants applicable to certified public accountants in 
        United States; or
            ``(2) with respect to a foreign issuer, the auditor is 
        independent under comparable standards applicable to certified 
        public accountants in the issuer's home country.''.

   TITLE IV--EXPAND THE PROTECTION FOR RESEARCH REPORTS TO COVER ALL 
                       SECURITIES OF ALL ISSUERS

SEC. 1401. PROVISION OF RESEARCH.

    Section 2(a)(3) of the Securities Act of 1933 (15 U.S.C. 77b(a)(3)) 
is amended--
     (a) by striking ``an emerging growth company'' and inserting ``an 
issuer'';
    (b) by striking ``the common equity'' and inserting ``any''; and
    (c) by striking ``such emerging growth company'' and inserting 
``such issuer''.

    TITLE V--EXCLUDE QIBS AND IAAS FROM THE RECORD HOLDER COUNT FOR 
                         MANDATORY REGISTRATION

SEC. 1501. EXCLUSIONS FROM MANDATORY REGISTRATION THRESHOLD.

    (a) In General.--Section 12(g)(1) of the Securities Exchange Act of 
1934 (15 U.S.C. 78l(g)(1)) is amended--
            (1) in subparagraph (A)(i), by inserting after ``persons'' 
        the following: ``(that are not a qualified institutional buyer 
        or an institutional accredited investor)''; and
            (2) in subparagraph (B), by inserting after ``persons'' the 
        following: ``(that are not a qualified institutional buyer or 
        an institutional accredited investor)''.
    (b) Nonapplicability of General Exemptive Authority.--Section 36 of 
the Securities Exchange Act of 1934 (15 U.S.C. 78mm) shall not apply to 
the matter inserted by the amendments made by subsection (a).

                   TITLE VI--EXPAND WKSI ELIGIBILITY

SEC. 1601. DEFINITION OF WELL-KNOWN SEASONED ISSUER.

    For purposes of the Federal securities laws, and regulations issued 
thereunder, an issuer shall be a ``well-known seasoned issuer'' if--
            (1) the aggregate market value of the voting and non-voting 
        common equity held by non-affiliates of the issuer is 
        $250,000,000 or more (as determined under Form S-3 general 
        instruction I.B.1. as in effect on the date of enactment of 
        this Act); and
            (2) the issuer otherwise satisfies the requirements of the 
        definition of ``well-known seasoned issuer'' contained in 
        section 230.405 of title 17, Code of Federal Regulations 
        without reference to any requirement in such definition 
        relating to minimum worldwide market value of outstanding 
        voting and non-voting common equity held by non-affiliates.

         DIVISION B--HELPING SMALL BUSINESSES AND ENTREPRENEURS

            TITLE I--UNLOCKING CAPITAL FOR SMALL BUSINESSES

SEC. 2101. SHORT TITLE.

    This title may be cited as the ``Unlocking Capital for Small 
Businesses Act of 2023''.

SEC. 2102. SAFE HARBORS FOR PRIVATE PLACEMENT BROKERS AND FINDERS.

    (a) In General.--Section 15 of the Securities Exchange Act of 1934 
(15 U.S.C. 78o) is amended by adding at the end the following:
    ``(p) Private Placement Broker Safe Harbor.--
            ``(1) Registration requirements.--Not later than 180 days 
        after the date of the enactment of this subsection the 
        Commission shall promulgate regulations with respect to private 
        placement brokers that are no more stringent than those imposed 
        on funding portals.
            ``(2) National securities associations.--Not later than 180 
        days after the date of the enactment of this subsection the 
        Commission shall promulgate regulations that require the rules 
        of any national securities association to allow a private 
        placement broker to become a member of such national securities 
        association subject to reduced membership requirements 
        consistent with this subsection.
            ``(3) Disclosures required.--Before effecting a 
        transaction, a private placement broker shall disclose clearly 
        and conspicuously, in writing, to all parties to the 
        transaction as a result of the broker's activities--
                    ``(A) that the broker is acting as a private 
                placement broker;
                    ``(B) the amount of any payment or anticipated 
                payment for services rendered as a private placement 
                broker in connection with such transaction;
                    ``(C) the person to whom any such payment is made; 
                and
                    ``(D) any beneficial interest in the issuer, direct 
                or indirect, of the private placement broker, of a 
                member of the immediate family of the private placement 
                broker, of an associated person of the private 
                placement broker, or of a member of the immediate 
                family of such associated person.
            ``(4) Private placement broker defined.--In this 
        subsection, the term `private placement broker' means a person 
        that--
                    ``(A) receives transaction-based compensation--
                            ``(i) for effecting a transaction by--
                                    ``(I) introducing an issuer of 
                                securities and a buyer of such 
                                securities in connection with the sale 
                                of a business effected as the sale of 
                                securities; or
                                    ``(II) introducing an issuer of 
                                securities and a buyer of such 
                                securities in connection with the 
                                placement of securities in transactions 
                                that are exempt from registration 
                                requirements under the Securities Act 
                                of 1933; and
                            ``(ii) that is not with respect to--
                                    ``(I) a class of publicly traded 
                                securities;
                                    ``(II) the securities of an 
                                investment company (as defined in 
                                section 3 of the Investment Company Act 
                                of 1940); or
                                    ``(III) a variable or equity-
                                indexed annuity or other variable or 
                                equity-indexed life insurance product;
                    ``(B) with respect to a transaction for which such 
                transaction-based compensation is received--
                            ``(i) does not handle or take possession of 
                        the funds or securities; and
                            ``(ii) does not engage in an activity that 
                        requires registration as an investment adviser 
                        under State or Federal law; and
                    ``(C) is not a finder as defined under subsection 
                (q).
    ``(q) Finder Safe Harbor.--
            ``(1) Nonregistration.--A finder is exempt from the 
        registration requirements of this Act.
            ``(2) National securities associations.--A finder shall not 
        be required to become a member of any national securities 
        association.
            ``(3) Finder defined.--In this subsection, the term 
        `finder' means a person described in paragraphs (A) and (B) of 
        subsection (p)(4) that--
                    ``(A) receives transaction-based compensation of 
                equal to or less than $500,000 in any calendar year;
                    ``(B) receives transaction-based compensation in 
                connection with transactions that result in a single 
                issuer selling securities valued at equal to or less 
                than $15,000,000 in any calendar year;
                    ``(C) receives transaction-based compensation in 
                connection with transactions that result in any 
                combination of issuers selling securities valued at 
                equal to or less than $30,000,000 in any calendar year; 
                or
                    ``(D) receives transaction-based compensation in 
                connection with fewer than 16 transactions that are not 
                part of the same offering or are otherwise unrelated in 
                any calendar year.''.
    (b) Validity of Contracts With Registered Private Placement Brokers 
and Finders.--Section 29 of the Securities Exchange Act of 1934 (15 
U.S.C. 78cc) is amended by adding at the end the following:
    ``(d) Subsection (b) shall not apply to a contract made for a 
transaction if--
            ``(1) the transaction is one in which the issuer engaged 
        the services of a broker or dealer that is not registered under 
        this Act with respect to such transaction;
            ``(2) such issuer received a self-certification from such 
        broker or dealer certifying that such broker or dealer is a 
        registered private placement broker under section 15(p) or a 
        finder under section 15(q); and
            ``(3) the issuer either did not know that such self-
        certification was false or did not have a reasonable basis to 
        believe that such self-certification was false.''.
    (c) Removal of Private Placement Brokers From Definitions of 
Broker.--
            (1) Records and reports on monetary instruments 
        transactions.--Section 5312 of title 31, United States Code, is 
        amended in subsection (a)(2)(G) by inserting ``with the 
        exception of a private placement broker as defined in section 
        15(p)(4) of the Securities Exchange Act of 1934 (15 U.S.C. 
        78o(p)(4))'' before the semicolon at the end.
            (2) Securities exchange act of 1934.--Section 3(a)(4) of 
        the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(4)) is 
        amended by adding at the end the following:
                    ``(G) Private placement brokers.--A private 
                placement broker as defined in section 15(p)(4) is not 
                a broker for the purposes of this Act.''.

SEC. 2103. LIMITATIONS ON STATE LAW.

    Section 15(i) of the Securities Exchange Act of 1934 (15 U.S.C. 
78o(i)) is amended--
            (1) by redesignating paragraphs (3) and (4) as paragraphs 
        (4) and (5), respectively;
            (2) by inserting after paragraph (2) the following:
            ``(3) Private placement brokers and finders.--
                    ``(A) In general.--No State or political 
                subdivision thereof may enforce any law, rule, 
                regulation, or other administrative action that imposes 
                greater registration, audit, financial recordkeeping, 
                or reporting requirements on a private placement broker 
                or finder than those that are required under 
                subsections (p) and (q), respectively.
                    ``(B) Definition of state.--For purposes of this 
                paragraph, the term `State' includes the District of 
                Columbia and each territory of the United States.''; 
                and
            (3) in paragraph (4), as so redesignated, by striking 
        ``paragraph (3)'' and inserting ``paragraph (5)''.

            TITLE II--SMALL BUSINESS INVESTOR CAPITAL ACCESS

SEC. 2201. SHORT TITLE.

    This title may be cited as the ``Small Business Investor Capital 
Access Act''.

SEC. 2202. INFLATION ADJUSTMENT FOR THE EXEMPTION THRESHOLD FOR CERTAIN 
              INVESTMENT ADVISERS OF PRIVATE FUNDS.

    Section 203(m) of the Investment Advisers Act of 1940 (15 U.S.C. 
80b-3(m)) is amended by adding at the end the following:
            ``(5) Inflation adjustment.--The Commission shall adjust 
        the dollar amount described under paragraph (1)--
                    ``(A) upon enactment of this paragraph, 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 between the date of 
                enactment of the Private Fund Investment Advisers 
                Registration Act of 2010 and the date of enactment of 
                this paragraph; and
                    ``(B) annually thereafter, 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.''.

         TITLE III--IMPROVING CAPITAL ALLOCATION FOR NEWCOMERS

SEC. 2301. SHORT TITLE.

    This title may be cited as the ``Improving Capital Allocation for 
Newcomers Act of 2023''.

SEC. 2302. QUALIFYING VENTURE CAPITAL FUNDS.

    Section 3(c)(1) of the Investment Company Act of 1940 (15 U.S.C. 
80a-3(c)(1)) is amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``250 persons'' and inserting ``600 persons''; and
            (2) in subparagraph (C)(i), by striking ``$10,000,000'' and 
        inserting ``$150,000,000''.

       TITLE IV--SMALL ENTREPRENEURS' EMPOWERMENT AND DEVELOPMENT

SEC. 2401. SHORT TITLE.

    This title may be cited as the ``Small Entrepreneurs' Empowerment 
and Development Act of 2023'' or the ``SEED Act of 2023''.

SEC. 2402. MICRO-OFFERING EXEMPTION.

    (a) In General.--Section 4 of the Securities Act of 1933 (15 U.S.C. 
77d) is amended--
            (1) in subsection (a), by adding at the end the following:
            ``(8) transactions meeting the requirements of subsection 
        (f).''; and
            (2) by adding at the end the following:
    ``(f) Micro-Offerings.--The transactions referred to in subsection 
(a)(8) are transactions involving the sale of securities by an issuer 
(including all entities controlled by or under common control with the 
issuer) where the aggregate amount of all securities sold by the 
issuer, including any amount sold in reliance on the exemption provided 
under subsection (a)(8), during the 12-month period preceding such 
transaction, does not exceed $250,000.''.
    (b) Disqualification.--
            (1) In general.--Not later than 270 days after the date of 
        enactment of this Act, the Securities and Exchange Commission 
        shall, by rule, establish disqualification provisions under 
        which an issuer shall not be eligible to offer securities 
        pursuant to section 4(a)(8) of the Securities Act of 1933, as 
        added by this section.
            (2) Inclusions.--Disqualification provisions required by 
        this subsection shall--
                    (A) be substantially similar to the provisions of 
                section 230.506(d) of title 17, Code of Federal 
                Regulations (or any successor thereto); and
                    (B) disqualify any offering or sale of securities 
                by a person that--
                            (i) is subject to a final order of a 
                        covered regulator that--
                                    (I) bars the person from--
                                            (aa) association with an 
                                        entity regulated by the covered 
                                        regulator;
                                            (bb) engaging in the 
                                        business of securities, 
                                        insurance, or banking; or
                                            (cc) engaging in savings 
                                        association or credit union 
                                        activities; or
                                    (II) constitutes a final order 
                                based on a violation of any law or 
                                regulation that prohibits fraudulent, 
                                manipulative, or deceptive conduct, if 
                                such final order was issued within the 
                                previous 10-year period; or
                            (ii) has been convicted of any felony or 
                        misdemeanor in connection with the purchase or 
                        sale of any security or involving the making of 
                        any false filing with the Commission.
            (3) Covered regulator defined.--In this subsection, the 
        term ``covered regulator'' means--
                    (A) a State securities commission (or an agency or 
                officer of a State performing like functions);
                    (B) a State authority that supervises or examines 
                banks, savings associations, or credit unions;
                    (C) a State insurance commission (or an agency or 
                officer of a State performing like functions);
                    (D) a Federal banking agency (as defined under 
                section 3 of the Federal Deposit Insurance Act); and
                    (E) the National Credit Union Administration.
    (c) Exemption Under State Regulations.--Section 18(b)(4) of the 
Securities Act of 1933 (15 U.S.C. 77r(b)(4)) is amended--
            (1) in subparagraph (F), by striking ``or'' at the end;
            (2) in subparagraph (G), by striking the period and 
        inserting ``; or''; and
            (3) by adding at the end the following:
                    ``(H) section 4(a)(8).''.

                   TITLE V--REGULATION A+ IMPROVEMENT

SEC. 2501. SHORT TITLE.

    This title may be cited as the ``Regulation A+ Improvement Act of 
2023''.

SEC. 2502. JOBS ACT-RELATED EXEMPTION.

    Section 3(b) of the Securities Act of 1933 (15 U.S.C. 77c(b)) is 
amended--
            (1) in paragraph (2)(A), by striking ``$50,000,000'' and 
        inserting ``$150,000,000, adjusted for inflation by the 
        Commission every 2 years to the nearest $10,000 to reflect the 
        change in the Consumer Price Index for All Urban Consumers 
        published by the Bureau of Labor Statistics''; and
            (2) in paragraph (5)--
                    (A) by striking ``such amount as'' and inserting: 
                ``such amount, in addition to the adjustment for 
                inflation provided for under such paragraph (2)(A), 
                as''; and
                    (B) by striking ``such amount, it'' and inserting 
                ``such amount, in addition to the adjustment for 
                inflation provided for under such paragraph (2)(A), 
                it''.

        TITLE VI--DEVELOPING AND EMPOWERING OUR ASPIRING LEADERS

SEC. 2601. SHORT TITLE.

    This title may be cited as the ``Developing and Empowering our 
Aspiring Leaders Act of 2023'' or the ``DEAL Act of 2023''.

SEC. 2602. DEFINITIONS.

    Not later than the end of the 180-day period beginning on the date 
of the enactment of this Act, the Securities and Exchange Commission 
shall, in a manner that facilitates capital formation without 
compromising investor protection--
            (1) revise the definition of a qualifying investment under 
        paragraph (c) of section 275.203(l)-1 of title 17, Code of 
        Federal Regulations--
                    (A) to include an equity security issued by a 
                qualifying portfolio company, whether acquired directly 
                from the company or in a secondary acquisition; and
                    (B) to specify that an investment in another 
                venture capital fund is a qualifying investment under 
                such definition; 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 either--
                    (A) predominantly qualifying investments that were 
                acquired directly from a qualifying portfolio company; 
                or
                    (B) predominantly qualifying investments in another 
                venture capital fund or other venture capital funds.

SEC. 2603. REPORTS.

    (a) GAO Report.--The Comptroller General of the United States shall 
issue a report to Congress on the risks and impacts of concentrated 
sectoral counterparty risk in the banking sector, in light of the 
failure of Silicon Valley Bank.
    (b) Advocate for Small Business Capital Formation Report.--The 
Advocate for Small Business Capital Formation shall issue a report to 
Congress and the Securities and Exchange Commission--
            (1) examining the access to banking services for venture 
        funds and companies funded by venture capital, in light of the 
        failure of Silicon Valley Bank, especially those funds and 
        companies located outside of the established technology and 
        venture capital hubs of California, Massachusetts, and New 
        York; and
            (2) containing any policy recommendations of the Advocate.

            TITLE VII--IMPROVING CROWDFUNDING OPPORTUNITIES

SEC. 2701. SHORT TITLE.

    This title may be cited as the ``Improving Crowdfunding 
Opportunities Act''.

SEC. 2702. CROWDFUNDING REVISIONS.

    (a) Exemption From State Regulation.--Section 18(b)(4)(A) of the 
Securities Act of 1933 (15 U.S.C. 77r(b)(4)(A)) is amended by striking 
``pursuant to section'' and all that follows through the semicolon at 
the end and inserting the following: ``pursuant to--
                            ``(i) section 13 or 15(d) of the Securities 
                        Exchange Act of 1934 (15 U.S.C. 78m, 78o(d)); 
                        or
                            ``(ii) section 4A(b) or any regulation 
                        issued under that section;''.
    (b) Liability for Material Misstatements and Omissions.--Section 
4A(c) of the Securities Act of 1933 (15 U.S.C. 77d-1(c)) is amended--
            (1) by redesignating paragraph (3) as paragraph (4); and
            (2) by inserting after paragraph (2) the following:
            ``(3) Liability of funding portals.--For the purposes of 
        this subsection, a funding portal, as that term is defined in 
        section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 
        78c(a)), shall not be considered to be an issuer unless, in 
        connection with the offer or sale of a security, the funding 
        portal knowingly--
                    ``(A) makes any untrue statement of a material fact 
                or omits to state a material fact in order to make the 
                statements made, in light of the circumstances under 
                which they are made, not misleading; or
                    ``(B) engages in any act, practice, or course of 
                business which operates or would operate as a fraud or 
                deceit upon any person.''.
    (c) Applicability of Bank Secrecy Act Requirements.--
            (1) Securities act of 1933.--Section 4A(a) of the 
        Securities Act of 1933 (15 U.S.C. 77d-1(a)) is amended--
                    (A) in paragraph (11), by striking ``and'' at the 
                end;
                    (B) in paragraph (12), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(13) not be subject to the recordkeeping and reporting 
        requirements relating to monetary instruments under subchapter 
        II of chapter 53 of title 31, United States Code.''.
            (2) Title 31, united states code.--Section 5312 of title 
        31, United States Code, is amended by striking subsection (c) 
        and inserting the following:
    ``(c) Additional Clarification.--The term `financial institution' 
(as defined in subsection (a))--
            ``(1) includes any futures commission merchant, commodity 
        trading advisor, or commodity pool operator registered, or 
        required to register, under the Commodity Exchange Act (7 
        U.S.C. 1 et seq.); and
            ``(2) does not include a funding portal, as that term is 
        defined in section 3(a) of the Securities Exchange Act of 1934 
        (15 U.S.C. 78c(a)).''.
    (d) Provision of Impersonal Investment Advice and 
Recommendations.--Section 3(a) of the Securities Exchange Act of 1934 
(15 U.S.C. 78c(a)) is amended--
            (1) by redesignating the second paragraph (80) (relating to 
        funding portals) as paragraph (81); and
            (2) in paragraph (81)(A), as so redesignated, by inserting 
        after ``recommendations'' the following: ``(other than by 
        providing impersonal investment advice by means of written 
        material, or an oral statement, that does not purport to meet 
        the objectives or needs of a specific individual or account)''.
    (e) Target Amounts of Certain Exempted Offerings.--The Securities 
and Exchange Commission shall amend paragraph (t)(1) of section 227.201 
of title 17, Code of Federal Regulations so that such paragraph applies 
with respect to an issuer offering or selling securities in reliance on 
section 4(a)(6) of the Securities Act of 1933 (15 U.S.C. 77d(a)(6)) 
if--
            (1) the offerings of such issuer, together with all other 
        amounts sold under such section 4(a)(6) within the preceding 
        12-month period, have, in the aggregate, a target amount of 
        more than $124,000 but not more than $250,000;
            (2) the financial statements of such issuer that have 
        either been reviewed or audited by a public accountant that is 
        independent of the issuer are unavailable at the time of 
        filing; and
            (3) such issuer provides a statement that financial 
        information certified by the principal executive officer of the 
        issuer has been provided instead of financial statements 
        reviewed by a public accountant that is independent of the 
        issuer.
    (f) Exemption Available to Investment Companies.--Section 4A(f) of 
the Securities Act of 1933 (15 U.S.C. 77d-1(f)) is amended--
            (1) in paragraph (2), by inserting ``or'' after the 
        semicolon;
            (2) by striking paragraph (3); and
            (3) by redesignating paragraph (4) as paragraph (3).
    (g) Non-accredited Investor Requirements.--Section 4(a)(6) of the 
Securities Act of 1933 (15 U.S.C. 77d(a)(6))) is amended--
            (1) in subparagraph (A), by striking ``$1,000,000'' and 
        inserting ``$10,000,000''; and
            (2) in subparagraph (B), by striking ``does not exceed'' 
        and all that follows through ``more than $100,000'' and 
        inserting ``does not exceed 10 percent of the annual income or 
        net worth of such investor''.
    (h) Technical Correction.--The Securities Act of 1933 (15 U.S.C. 
77a et seq.) is amended--
            (1) by striking the term ``section 4(6)'' each place such 
        term appears and inserting ``section 4(a)(6)'';
            (2) by striking the term ``section 4(6)(B)'' each place 
        such term appears and inserting ``section 4(a)(6)(B)'';
            (3) in section 4A(f), by striking ``Section 4(6)'' and 
        inserting ``Section 4(a)(6)''; and
            (4) in section 18(b)(4)(A), by striking ``section 4'' and 
        inserting ``section 4(a)''.

           TITLE VIII--RESTORING THE SECONDARY TRADING MARKET

SEC. 2801. SHORT TITLE.

    This title may be cited as the ``Restoring the Secondary Trading 
Market Act''.

SEC. 2802. EXEMPTION FROM STATE REGULATION.

    Section 18(a) of the Securities Act of 1933 (15 U.S.C. 77r(a)) is 
amended--
            (1) in paragraph (2), by striking ``or'' at the end;
            (2) in paragraph (3), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(4) shall directly or indirectly prohibit, limit, or 
        impose any conditions upon the off-exchange secondary trading 
        (as such term is defined by the Commission) in securities of an 
        issuer that makes current information publicly available, 
        including--
                    ``(A) the information required in the periodic and 
                current reports described under paragraph (b) of 
                section 230.257 of title 17, Code of Federal 
                Regulations; or
                    ``(B) the documents and information required with 
                respect to Tier 2 offerings, as defined in section 
                230.251(a) of title 17, Code of Federal Regulations.''.

            DIVISION C--INCREASING ACCESS TO PRIVATE MARKETS

                TITLE I--GIG WORKER EQUITY COMPENSATION

SEC. 3101. SHORT TITLE.

    This title may be cited as the ``Gig Worker Equity Compensation 
Act''.

SEC. 3102. EXTENSION OF RULE 701.

    (a) In General.--The exemption provided under section 230.701 of 
title 17, Code of Federal Regulations, shall apply to individuals 
(other than employees) providing goods for sale, labor, or services for 
remuneration to either an issuer or to customers of an issuer to the 
same extent as such exemptions apply to employees of the issuer. For 
purposes of the previous sentence, the term ``customers'' may, at the 
election of an issuer, include users of the issuer's platform.
    (b) Adjustment for Inflation.--The Securities and Exchange 
Commission shall annually adjust the dollar figure under section 
230.701(e) of title 17, Code of Federal Regulations, to reflect the 
percentage change in the Consumer Price Index for All Urban Consumers 
published by the Bureau of Labor Statistics of the Department of Labor.
    (c) Rulemaking.--The Securities and Exchange Commission--
            (1) shall revise section 230.701 of title 17, Code of 
        Federal Regulations, to reflect the requirements of this 
        section; and
            (2) may not revise such section 230.701 in any manner that 
        would have the effect of restricting access to equity 
        compensation for employees or individuals described under 
        subsection (a).

SEC. 3103. GAO STUDY.

    Not later than the end of the 3-year period beginning on the date 
of enactment of this Act, the Comptroller General of the United States 
shall carry out a study on the effects of this title and submit a 
report on such study to the Congress.

               TITLE II--INVESTMENT OPPORTUNITY EXPANSION

SEC. 3201. SHORT TITLE.

    This title may be cited as the ``Investment Opportunity Expansion 
Act''.

SEC. 3202. INVESTMENT THRESHOLDS TO QUALIFY AS AN ACCREDITED INVESTOR.

    Section 2(a)(15) of the Securities Act of 1933 (15 U.S.C. 
77b(a)(15)) is amended--
            (1) by striking ``(15) The term `accredited investor' shall 
        mean--'' and inserting the following:
            ``(15) Accredited investor.--
                    ``(A) In general.--The term `accredited investor' 
                means--'';
            (2) in clause (i), by striking ``or'' at the end;
            (3) in clause (ii), by striking the period at the end and 
        inserting a semicolon; and
            (4) by adding at the end the following:
                            ``(iii) with respect to a proposed 
                        transaction, any individual whose aggregate 
                        investment, at the completion of such 
                        transaction, in securities with respect to 
                        which there has not been a public offering is 
                        not more than 10 percent of the greater of--
                                    ``(I) the net assets of the 
                                individual; or
                                    ``(II) the annual income of the 
                                individual;''.

          TITLE III--RISK DISCLOSURE AND INVESTOR ATTESTATION

SEC. 3301. SHORT TITLE.

    This title may be cited as the ``Risk Disclosure and Investor 
Attestation Act''.

SEC. 3302. INVESTOR ATTESTATION.

    (a) In General.--Section 2(a)(15) of the Securities Act of 1933 (15 
U.S.C. 77b(a)(15)), as amended by section 3202, is further amended by 
adding at the end the following:
                            ``(iv) with respect to an issuer, any 
                        individual that has attested to the issuer that 
                        the individual understands the risks of 
                        investment in private issuers, using such form 
                        as the Commission shall establish, by rule, but 
                        which form may not be longer than 2 pages in 
                        length; or''.
    (b) Rulemaking.--Not later than the end of the 1-year period 
beginning on the date of enactment of this Act, the Securities and 
Exchange Commission shall issue rules to carry out the amendments made 
by subsection (a), including establishing the form required under such 
amendments.

  TITLE IV--ACCREDITED INVESTORS INCLUDE INDIVIDUALS RECEIVING ADVICE 
                       FROM CERTAIN PROFESSIONALS

SEC. 3401. ACCREDITED INVESTORS INCLUDE INDIVIDUALS RECEIVING ADVICE 
              FROM CERTAIN PROFESSIONALS.

    (a) Securities Act of 1933.--Section 2(a)(15) of the Securities Act 
of 1933 (15 U.S.C. 77b(a)(15)), as amended by sections 3202 and 3302, 
is further amended by adding at the end the following:
                            ``(v) any individual receiving 
                        individualized investment advice or 
                        individualized investment recommendations with 
                        respect to the applicable transaction from an 
                        individual described under section 
                        203.501(a)(10) of title 17, Code of Federal 
                        Regulations.
                    ``(B) Definitions.--In subparagraph (A)(v):
                            ``(i) Investment advice.--The term 
                        `investment advice' shall be interpreted 
                        consistently with the interpretation of the 
                        phrase `engages in the business of advising 
                        others, either directly or through publications 
                        or writings, as to the value of securities or 
                        as to the advisability of investing in, 
                        purchasing, or selling securities' under 
                        section 202(a)(11) of the Investment Advisers 
                        Act of 1940 (15 U.S.C. 80b-2(a)(11)).
                            ``(ii) Investment recommendation.--The term 
                        `investment recommendation' shall be 
                        interpreted consistently with the 
                        interpretation of the term `recommendation' 
                        under section 240.15l-1 of title 17, Code of 
                        Federal Regulations.''.
    (b) Conforming Changes to Regulations.--The Securities and Exchange 
Commission shall revise section 203.501(a) of title 17, Code of Federal 
Regulations, and any other definition of ``accredited investor'' in a 
rule of the Commission in the same manner as such definition is revised 
under subsection (a).

              DIVISION D--HELPING ANGELS LEAD OUR STARTUPS

SEC. 4001. CLARIFICATION OF GENERAL SOLICITATION.

    (a) Definitions.--For purposes of this section and the revision of 
rules required under this section:
            (1) Angel investor group.--The term ``angel investor 
        group'' means any group that--
                    (A) is composed of accredited investors interested 
                in investing personal capital in early-stage companies;
                    (B) holds regular meetings and has defined 
                processes and procedures for making investment 
                decisions, either individually or among the membership 
                of the group as a whole; and
                    (C) is neither associated nor affiliated with 
                brokers, dealers, or investment advisers.
            (2) Issuer.--The term ``issuer'' means an issuer that is a 
        business, is not in bankruptcy or receivership, is not an 
        investment company, and is not a blank check, blind pool, or 
        shell company.
    (b) In General.--Not later than 6 months after the date of 
enactment of this Act, the Securities and Exchange Commission shall 
revise Regulation D (17 CFR 230.500 et seq.) to require that in 
carrying out the prohibition against general solicitation or general 
advertising contained in section 230.502(c) of title 17, Code of 
Federal Regulations, the prohibition shall not apply to a presentation 
or other communication made by or on behalf of an issuer which is made 
at an event--
            (1) sponsored by--
                    (A) the United States or any territory thereof, the 
                District of Columbia, any State, a political 
                subdivision of any State or territory, or any agency or 
                public instrumentality of any of the foregoing;
                    (B) a college, university, or other institution of 
                higher education;
                    (C) a nonprofit organization;
                    (D) an angel investor group;
                    (E) a venture forum, venture capital association, 
                or trade association; or
                    (F) any other group, person, or entity as the 
                Securities and Exchange Commission may determine by 
                rule;
            (2) where any advertising for the event does not reference 
        any specific offering of securities by the issuer;
            (3) the sponsor of which--
                    (A) does not make investment recommendations or 
                provide investment advice to event attendees;
                    (B) does not engage in an active role in any 
                investment negotiations between the issuer and 
                investors attending the event;
                    (C) does not charge event attendees any fees other 
                than reasonable administrative fees;
                    (D) does not receive any compensation for making 
                introductions between investors attending the event and 
                issuers, or for investment negotiations between such 
                parties;
                    (E) makes readily available to attendees a 
                disclosure not longer than one page in length, as 
                prescribed by the Securities and Exchange Commission, 
                describing the nature of the event and the risks of 
                investing in the issuers presenting at the event; and
                    (F) does not receive any compensation with respect 
                to such event that would require registration of the 
                sponsor as a broker or a dealer under the Securities 
                Exchange Act of 1934, or as an investment advisor under 
                the Investment Advisers Act of 1940; and
            (4) where no specific information regarding an offering of 
        securities by the issuer is communicated or distributed by or 
        on behalf of the issuer, other than--
                    (A) that the issuer is in the process of offering 
                securities or planning to offer securities;
                    (B) the type and amount of securities being 
                offered;
                    (C) the amount of securities being offered that 
                have already been subscribed for; and
                    (D) the intended use of proceeds of the offering.
    (c) Rule of Construction.--Subsection (b) may only be construed as 
requiring the Securities and Exchange Commission to amend the 
requirements of Regulation D with respect to presentations and 
communications, and not with respect to purchases or sales.
    (d) No Pre-existing Substantive Relationship by Reason of Event.--
Attendance at an event described under subsection (b) shall not 
qualify, by itself, as establishing a pre-existing substantive 
relationship between an issuer and a purchaser, for purposes of Rule 
506(b).

             DIVISION E--IMPROVING DISCLOSURE FOR INVESTORS

SEC. 5001. SHORT TITLE.

    This division may be cited as the ``Improving Disclosure for 
Investors Act of 2024''.

SEC. 5002. ELECTRONIC DELIVERY.

    (a) Promulgation of Rules.--Not later than 180 days after the date 
of the enactment of this section, the Securities and Exchange 
Commission shall propose and, not later than 1 year after the date of 
the enactment of this section, the Commission shall finalize, rules, 
regulations, amendments, or interpretations, as appropriate, to allow a 
covered entity to satisfy the entity's obligation to deliver regulatory 
documents required under the securities laws to investors using 
electronic delivery.
    (b) Required Provisions.--Rules, regulations, amendments, or 
interpretations the Commission promulgates pursuant to subsection (a) 
shall:
            (1) With respect to investors that do not receive all 
        regulatory documents by electronic delivery, provide for--
                    (A) delivery of an initial communication in paper 
                form regarding electronic delivery;
                    (B) a transition period not to exceed 180 days 
                until such regulatory documents are delivered to such 
                investors by electronic delivery; and
                    (C) during a period not to exceed 2 years following 
                the transition period set forth in subparagraph (B), 
                delivery of an annual notice in paper form solely 
                reminding such investors of the ability to opt out of 
                electronic delivery at any time and receive paper 
                versions of regulatory documents.
            (2) Set forth requirements for the content of the initial 
        communication described in paragraph (1)(A).
            (3) Set forth requirements for the timing of delivery of a 
        notice of website availability of regulatory documents and the 
        content of the appropriate notice described in subsection 
        (h)(3)(B).
            (4) Provide a mechanism for investors to opt out of 
        electronic delivery at any time and receive paper versions of 
        regulatory documents.
            (5) Require measures reasonably designed to identify and 
        remediate failed electronic deliveries of regulatory documents.
            (6) Set forth minimum requirements regarding readability 
        and retainability for regulatory documents that are delivered 
        electronically.
            (7) For covered entities other than brokers, dealers, 
        investment advisers registered with the Commission, and 
        investment companies, require measures reasonably designed to 
        ensure the confidentiality of personal information in 
        regulatory documents that are delivered to investors 
        electronically.
    (c) Rule of Construction.--Nothing in this section shall be 
construed as altering the substance or timing of any regulatory 
document obligation under the securities laws or regulations of a self-
regulatory organization.
    (d) Treatment of Revisions Not Completed in a Timely Manner.--If 
the Commission fails to finalize the rules, regulations, amendments, or 
interpretations required under subsection (a) before the date specified 
in such subsection--
            (1) a covered entity may deliver regulatory documents using 
        electronic delivery in accordance with subsections (b) and (c); 
        and
            (2) such electronic delivery shall be deemed to satisfy the 
        obligation of the covered entity to deliver regulatory 
        documents required under the securities laws.
    (e) Other Required Actions.--
            (1) Review of rules.--The Commission shall--
                    (A) within 180 days of the date of enactment of 
                this Act, conduct a review of the rules and regulations 
                of the Commission to determine whether any such rules 
                or regulations require delivery of written documents to 
                investors; and
                    (B) within 1 year of the date of enactment of this 
                Act, promulgate amendments to such rules or regulations 
                to provide that any requirement to deliver a regulatory 
                document ``in writing'' may be satisfied by electronic 
                delivery.
            (2) Actions by self-regulatory organizations.--Each self-
        regulatory organization shall adopt rules and regulations, or 
        amend the rules and regulations of the self-regulatory 
        organization, consistent with this Act and consistent with 
        rules, regulations, amendments, or interpretations finalized by 
        the Commission pursuant to subsection (a).
            (3) Rule of application.--This subsection shall not apply 
        to a rule or regulation issued pursuant to a Federal statute if 
        that Federal statute specifically requires delivery of written 
        documents to investors.
    (f) Definitions.--In this section:
            (1) Commission.--The term ``Commission'' means the 
        Securities and Exchange Commission.
            (2) Covered entity.--The term ``covered entity'' means--
                    (A) an investment company (as defined in section 
                3(a)(1) of the Investment Company Act of 1940 (15 
                U.S.C. 80a-3(a)(1))) that is registered under such Act;
                    (B) a business development company (as defined in 
                section 2(a) the Investment Company Act of 1940 (15 
                U.S.C. 80a-2(a))) that has elected to be regulated as 
                such under such Act;
                    (C) a registered broker or dealer (as defined in 
                section 3(a)(4) and section 3(a)(5) of the Securities 
                Exchange Act of 1934) (15 U.S.C. 78c(a)(4) & 
                78c(a)(5));
                    (D) a registered municipal securities dealer (as 
                defined in section 3(a)(30) of the Securities Exchange 
                Act of 1934) (15 U.S.C. 78c(a)(30));
                    (E) a registered government securities broker or 
                government securities dealer (as defined in section 
                3(a)(43) and section 3(a)(44) of the Securities 
                Exchange Act of 1934) (15 U.S.C. 78c(a)(43) & 
                78c(a)(44));
                    (F) a registered investment adviser (as defined in 
                section 202(a)(11) of the Investment Advisers Act of 
                1940) (15 U.S.C. 80b-1(a)(11));
                    (G) a registered transfer agent (as defined in 
                section 3(a)(25) of the Securities Exchange Act of 
                1934) (15 U.S.C. 78c(a)(25)); or
                    (H) a registered funding portal (as defined in the 
                second paragraph (80) of section 3(a) of the Securities 
                Exchange Act of 1934) (15 U.S.C. 78c(a)(80)).
            (3) Electronic delivery.--The term ``electronic delivery'', 
        with respect to regulatory documents, includes--
                    (A) the direct delivery of such regulatory document 
                to an electronic address of an investor;
                    (B) the posting of such regulatory document to a 
                website and direct electronic delivery of an 
                appropriate notice of the availability of the 
                regulatory document to the investor; and
                    (C) an electronic method reasonably designed to 
                ensure receipt of such regulatory document by the 
                investor.
            (4) Regulatory documents.--The term ``regulatory 
        documents'' includes--
                    (A) prospectuses meeting the requirements of 
                section 10(a) of the Securities Act of 1933 (15 U.S.C. 
                77j(a));
                    (B) summary prospectuses meeting the requirements 
                of--
                            (i) section 230.498 of title 17, Code of 
                        Federal Regulations; or
                            (ii) section 230.498A of title 17, Code of 
                        Federal Regulations;
                    (C) statements of additional information, as 
                described under section 270.30e-3(h)(3) of title 17, 
                Code of Federal Regulations;
                    (D) annual and semi-annual reports to investors 
                meeting the requirements of section 30(e) of the 
                Investment Company Act of 1940 (15 U.S.C. 80a-29(e));
                    (E) notices meeting the requirements under section 
                270.19a-1 of title 17, Code of Federal Regulations;
                    (F) confirmations and account statements meeting 
                the requirements under section 240.10b-10 of title 17, 
                Code of Federal Regulations;
                    (G) proxy statements meeting the requirements under 
                section 240.14a-3 of title 17, Code of Federal 
                Regulations;
                    (H) privacy notices meeting the requirements of 
                Regulation S-P under subpart A of part 248 of title 17, 
                Code of Federal Regulations;
                    (I) affiliate marketing notices meeting the 
                requirements of Regulation S-AM under subpart B of part 
                248 of title 17, Code of Federal Regulations; and
                    (J) all other regulatory documents required to be 
                delivered by covered entities to investors under the 
                securities laws and the rules and regulations of the 
                Commission and the self-regulatory organizations.
            (5) Securities laws.--The term ``securities laws'' has the 
        meaning given the term in section 3(a) of the Securities 
        Exchange Act of 1934 (15 U.S.C. 78c(a)).
            (6) Self-regulatory organization.--The term ``self-
        regulatory organization'' means--
                    (A) a self-regulatory organization, as defined in 
                section 2(a)(26) of the Securities Exchange Act of 1934 
                (15 U.S.C. 78c(a)(26)); and
                    (B) the Municipal Securities Rulemaking Board.
            (7) Website.--The term ``website'' means an internet 
        website or other digital, internet, or electronic-based 
        information repository, such as a mobile application, to which 
        an investor of a covered entity has been provided reasonable 
        access.

                DIVISION F--ENHANCEMENT OF 403(b) PLANS

SEC. 6101. SHORT TITLE.

    This division may be cited as the ``Retirement Fairness for 
Charities and Educational Institutions Act of 2024''.

SEC. 6102. ENHANCEMENT OF 403(B) PLANS.

    (a) Amendments to the Investment Company Act of 1940.--Section 
3(c)(11) of the Investment Company Act of 1940 (15 U.S.C. 80a-3(c)(11)) 
is amended to read as follows:
            ``(11) Any--
                    ``(A) employee's stock bonus, pension, or profit-
                sharing trust which meets the requirements for 
                qualification under section 401 of the Internal Revenue 
                Code of 1986;
                    ``(B) custodial account meeting the requirements of 
                section 403(b)(7) of such Code;
                    ``(C) governmental plan described in section 
                3(a)(2)(C) of the Securities Act of 1933;
                    ``(D) collective trust fund maintained by a bank 
                consisting solely of assets of one or more--
                            ``(i) trusts described in subparagraph (A);
                            ``(ii) government plans described in 
                        subparagraph (C);
                            ``(iii) church plans, companies, or 
                        accounts that are excluded from the definition 
                        of an investment company under paragraph (14) 
                        of this subsection; or
                            ``(iv) plans which meet the requirements of 
                        section 403(b) of the Internal Revenue Code of 
                        1986--
                                    ``(I) if--
                                            ``(aa) such plan is subject 
                                        to title I of the Employee 
                                        Retirement Income Security Act 
                                        of 1974 (29 U.S.C. 1001 et 
                                        seq.);
                                            ``(bb) any employer making 
                                        such plan available agrees to 
                                        serve as a fiduciary for the 
                                        plan with respect to the 
                                        selection of the plan's 
                                        investments among which 
                                        participants can choose; or
                                            ``(cc) such plan is a 
                                        governmental plan (as defined 
                                        in section 414(d) of such 
                                        Code); and
                                    ``(II) if the employer, a fiduciary 
                                of the plan, or another person acting 
                                on behalf of the employer reviews and 
                                approves each investment alternative 
                                offered under such plan described under 
                                subclause (I)(cc) prior to the 
                                investment being offered to 
                                participants in the plan; or
                    ``(E) separate account the assets of which are 
                derived solely from--
                            ``(i) contributions under pension or 
                        profit-sharing plans which meet the 
                        requirements of section 401 of the Internal 
                        Revenue Code of 1986 or the requirements for 
                        deduction of the employer's contribution under 
                        section 404(a)(2) of such Code;
                            ``(ii) contributions under governmental 
                        plans in connection with which interests, 
                        participations, or securities are exempted from 
                        the registration provisions of section 5 of the 
                        Securities Act of 1933 by section 3(a)(2)(C) of 
                        such Act;
                            ``(iii) advances made by an insurance 
                        company in connection with the operation of 
                        such separate account; and
                            ``(iv) contributions to a plan described in 
                        clause (iii) or (iv) of subparagraph (D).''.
    (b) Amendments to the Securities Act of 1933.--Section 3(a)(2) of 
the Securities Act of 1933 (15 U.S.C. 77c(a)(2)) is amended--
            (1) by striking ``beneficiaries, or (D)'' and inserting 
        ``beneficiaries, (D) a plan which meets the requirements of 
        section 403(b) of such Code (i) if (I) such plan is subject to 
        title I of the Employee Retirement Income Security Act of 1974 
        (29 U.S.C. 1001 et seq.), (II) any employer making such plan 
        available agrees to serve as a fiduciary for the plan with 
        respect to the selection of the plan's investments among which 
        participants can choose, or (III) such plan is a governmental 
        plan (as defined in section 414(d) of such Code), and (ii) if 
        the employer, a fiduciary of the plan, or another person acting 
        on behalf of the employer reviews and approves each investment 
        alternative offered under any plan described under clause 
        (i)(III) prior to the investment being offered to participants 
        in the plan, or (E)'';
            (2) by striking ``(C), or (D)'' and inserting ``(C), (D), 
        or (E)''; and
            (3) by striking ``(iii) which is a plan funded'' and all 
        that follows through ``retirement income account).'' and 
        inserting ``(iii) in the case of a plan not described in 
        subparagraph (D) or (E), which is a plan funded by an annuity 
        contract described in section 403(b) of such Code''.
    (c) Amendments to the Securities Exchange Act of 1934.--Section 
3(a)(12)(C) of the Securities Exchange Act of 1934 (15 U.S.C. 
78c(a)(12)(C)) is amended--
            (1) by striking ``or (iv)'' and inserting ``(iv) a plan 
        which meets the requirements of section 403(b) of such Code (I) 
        if (aa) such plan is subject to title I of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1001 et 
        seq.), (bb) any employer making such plan available agrees to 
        serve as a fiduciary for the plan with respect to the selection 
        of the plan's investments among which participants can choose, 
        or (cc) such plan is a governmental plan (as defined in section 
        414(d) of such Code), and (II) if the employer, a fiduciary of 
        the plan, or another person acting on behalf of the employer 
        reviews and approves each investment alternative offered under 
        any plan described under subclause (I)(cc) prior to the 
        investment being offered to participants in the plan, or (v)'';
            (2) by striking ``(ii), or (iii)'' and inserting ``(ii), 
        (iii), or (iv)''; and
            (3) by striking ``(II) is a plan funded'' and inserting 
        ``(II) in the case of a plan not described in clause (iv), is a 
        plan funded''.
    (d) Conforming Amendment to the Securities Exchange Act of 1934.--
Section 12(g)(2)(H) of the Securities Exchange Act of 1934 (15 U.S.C. 
78l(g)(2)(H)) is amended by striking ``or (iii)'' and inserting ``(iii) 
a plan described in section 3(a)(12)(C)(iv) of this Act, or (iv)''.

             DIVISION G--INCREASING INVESTOR OPPORTUNITIES

SEC. 7001. CLOSED-END COMPANY AUTHORITY TO INVEST IN PRIVATE FUNDS.

    (a) In General.--Section 5 of the Investment Company Act of 1940 
(15 U.S.C. 80a-5) is amended by adding at the end the following:
    ``(d) Closed-End Company Authority to Invest in Private Funds.--
            ``(1) In general.--Except as otherwise prohibited or 
        restricted by this Act (or any rule issued under this Act), the 
        Commission may not prohibit or otherwise limit a closed-end 
        company from investing any or all of the assets of the closed-
        end company in securities issued by private funds.
            ``(2) Other restrictions on commission authority.--
                    ``(A) In general.--Except as otherwise prohibited 
                or restricted by this Act (or any rule issued under 
                this Act) or to the extent permitted by subparagraph 
                (B), the Commission may not impose any condition on, 
                restrict, or otherwise limit--
                            ``(i) the offer to sell, or the sale of, 
                        securities issued by a closed-end company that 
                        invests, or proposes to invest, in securities 
                        issued by private funds; or
                            ``(ii) the listing of the securities of a 
                        closed-end company described in clause (i) on a 
                        national securities exchange.
                    ``(B) Unrelated restrictions.--The Commission may 
                impose a condition on, restrict, or otherwise limit an 
                activity described in clause (i) or (ii) of 
                subparagraph (A) if that condition, restriction or 
                limitation is unrelated to the underlying 
                characteristics of a private fund or the status of a 
                private fund as a private fund.
            ``(3) Application.--Notwithstanding section 6(f), this 
        subsection shall also apply to a closed-end company that elects 
        to be treated as a business development company pursuant to 
        section 54.''.
    (b) Definition of Private Fund.--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:
            ``(55) The term `private fund' has the meaning given in 
        section 202(a) of the Investment Advisers Act of 1940 (15 
        U.S.C. 80b-2(a)).''.
    (c) Treatment by National Securities Exchanges.--Section 6 of the 
Securities Exchange Act of 1934 (15 U.S.C. 78f) is amended by adding at 
the end the following:
    ``(m)(1) Except as otherwise prohibited or restricted by rules of 
the exchange that are consistent with section 5(d) of the Investment 
Company Act of 1940 (15 U.S.C. 80a-5(d)), an exchange may not prohibit, 
condition, restrict, or impose any other limitation on the listing or 
trading of the securities of a closed-end company when the closed-end 
company invests, or may invest, some or all of the assets of the 
closed-end company in securities issued by private funds.
    ``(2) In this subsection--
            ``(A) the term `closed-end company'--
                    ``(i) has the meaning given the term in section 
                5(a) of the Investment Company Act of 1940 (15 U.S.C. 
                80a-5(a)); and
                    ``(ii) includes a closed-end company that elects to 
                be treated as a business development company pursuant 
                to section 54 of the Investment Company Act of 1940 (15 
                U.S.C. 80a-53); and
            ``(B) the term `private fund' has the meaning given the 
        term in section 2(a) of the Investment Company Act of 1940 (15 
        U.S.C. 80a-2(a))).''.
    (d) Investment Limitation.--Section 3(c) of the Investment Company 
Act of 1940 (15 U.S.C. 80a-3(c)) is amended--
            (1) in paragraph (1), in the matter preceding subparagraph 
        (A), in the second sentence, by striking ``subparagraphs (A)(i) 
        and (B)(i)'' and inserting ``subparagraphs (A)(i), (B)(i), and 
        (C)''; and
            (2) in paragraph (7)(D), by striking ``subparagraphs (A)(i) 
        and (B)(i)'' and inserting ``subparagraphs (A)(i), (B)(i), and 
        (C)''.
    (e) Rules of Construction.--
            (1) Nothing in this section or the amendments made by this 
        section may be construed to limit or amend any fiduciary duty 
        owed to a closed-end company (as defined in section 5(a)(2) of 
        the Investment Company Act of 1940 (15 U.S.C. 80a-5(a)(2))) or 
        by an investment adviser (as defined under section 2(a) of the 
        Investment Company Act of 1940 (15 U.S.C. 80a-2(a))) to a 
        closed-end company.
            (2) Nothing in this section or the amendments made by this 
        section may be construed to limit or amend the valuation, 
        liquidity, or redemption requirements or obligations of a 
        closed-end company (as defined in section 5(a)(2) of the 
        Investment Company Act of 1940 (15 U.S.C. 80a-5(a)(2))) as 
        required by the Investment Company Act of 1940.

            Passed the House of Representatives March 8, 2024.

            Attest:

                                                                 Clerk.
118th CONGRESS

  2d Session

                               H. R. 2799

_______________________________________________________________________

                                 AN ACT

 To make reforms to the capital markets of the United States, and for 
                            other purposes.