[Congressional Record Volume 164, Number 201 (Thursday, December 20, 2018)]
[House]
[Pages H10416-H10417]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    RBIC ADVISERS RELIEF ACT OF 2018

  Mr. HUIZENGA. Mr. Speaker, I move to suspend the rules and pass the 
bill (S. 2765) to amend the Investment Advisers Act of 1940 to exempt 
investment advisers who solely advise certain rural business investment 
companies, and for other purposes.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                                S. 2765

       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 ``RBIC Advisers Relief Act of 
     2018''.

     SEC. 2. ADVISERS OF RBICS.

       Section 203 of the Investment Advisers Act of 1940 (15 
     U.S.C. 80b-3(b)) is amended--
       (1) in subsection (b)--
       (A) in paragraph (6)(B)--
       (i) by adjusting the margins accordingly; and
       (ii) by striking the period at the end and inserting a 
     semicolon;
       (B) in paragraph (7)(C), by striking the period at the end 
     and inserting ``; or''; and
       (C) by adding at the end the following:
       ``(8) any investment adviser, other than an entity that has 
     elected to be regulated or is regulated as a business 
     development company pursuant to section 54 of the Investment 
     Company Act of 1940 (15 U.S.C. 80a-53), who solely advises--
       ``(A) rural business investment companies (as defined in 
     section 384A of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 2009cc)); or
       ``(B) companies that have submitted to the Secretary of 
     Agriculture an application in accordance with section 384D(b) 
     of the Consolidated Farm and Rural Development Act (7 U.S.C. 
     2009cc-3(b)) that--
       ``(i) have received from the Secretary of Agriculture a 
     letter of conditions, which has not been revoked; or
       ``(ii) are affiliated with 1 or more rural business 
     investment companies described in subparagraph (A).'';
       (2) in subsection (l), by adding at the end the following:
       ``(3) Advisers of rbics.--For purposes of this subsection, 
     a venture capital fund includes an entity described in 
     subparagraph (A) or (B) of subsection (b)(8) (other than an 
     entity that has elected to be regulated as a business 
     development company pursuant to section 54 of the Investment 
     Company Act of 1940 (15 U.S.C. 80a-53)).''; and
       (3) in subsection (m), by adding at the end the following:
       ``(4) Advisers of rbics.--For purposes of this subsection, 
     the assets under management of a private fund that is an 
     entity described in subparagraph (A) or (B) of subsection 
     (b)(8) (other than an entity that has elected to be regulated 
     or is regulated as a business development company pursuant to 
     section 54 of the Investment Company Act of 1940 (15 U.S.C. 
     80a-53)) shall be excluded from the limit set forth in 
     paragraph (1).''.

     SEC. 3. RELATIONSHIP TO STATE LAW.

       Section 203A(b)(1) of the Investment Advisers Act of 1940 
     (15 U.S.C. 80b-3a(b)(1)) is amended--
       (1) in subparagraph (C), by striking the period at the end 
     and inserting ``; or''; and
       (2) by adding at the end the following:
       ``(D) that is not registered under section 203 because that 
     person is exempt from registration as provided in subsection 
     (b)(8) of such section, or is a supervised person of such 
     person.''.
  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Michigan (Mr. Huizenga) and the gentleman from Missouri (Mr. Clay) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Michigan.


                             General Leave

  Mr. HUIZENGA. Mr. Speaker, I ask unanimous consent that all Members 
have 5 legislative days to revise and extend their remarks and to 
include any extraneous material on this bill.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Michigan?
  There was no objection.
  Mr. HUIZENGA. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, this critical bill has broad and extensive bipartisan 
support, and I urge all Members to support this legislation.
  A few years ago, we had gone in and done a technical fix regarding 
small businesses, and this Rural Business Investment Company, or the 
RBIC, deals with language that will allow the advisers to go in and 
deal with rural businesses--not just small business, but these rural 
businesses. We think that this is an important step to helping rural 
America continue the economic recovery that they have seen over the 
last year or two.
  Mr. Speaker, I reserve the balance of my time.
  Mr. CLAY. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I am pleased that the House is taking up S. 2765, a bill 
that shows once again that Democrats support investment, job creation, 
and the development of wealth in rural areas.
  The bill is simple. It extends the exemption from registration in the 
Dodd-Frank Act to certain advisers to small private funds known as 
Rural Business Investment Companies, which are regulated by the USDA 
and are required to provide significant financing to rural area small 
businesses.
  Mr. Speaker, I support the bill, and I yield back the balance of my 
time.
  Mr. HUIZENGA. Mr. Speaker, I just want to note that we are having our 
second Senate bill from Louisiana, so we are covering our colleagues 
from down in Louisiana.
  I just want to encourage my colleagues to support this important 
piece of legislation, and I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Michigan (Mr. Huizenga) that the House suspend the rules 
and pass the bill, S. 2765.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.

[[Page H10417]]

  

  Mr. MASSIE. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further 
proceedings on this motion will be postponed.

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