H.R. 4200House113th Congress (2013-2015)Passed House

SBIC Advisers Relief Act of 2014

Legislative Activity

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13 earlier actions

SenateIntro Referral Latest Action

Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Banking, Housing, and Urban Affairs Committee

December 3, 2014

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HouseIntro Referral

Introduced in House

March 11, 2014

HouseIntro Referral

Referred to the House Committee on Financial Services.

Financial Services Committee

March 11, 2014

HouseCommittee

Hearings Held by the Subcommittee on Capital Markets and Government Sponsored Enterprises Prior to Referral.

Capital Markets Subcommittee

April 9, 2014

HouseCommittee

Committee Consideration and Mark-up Session Held.

Financial Services Committee

May 22, 2014

HouseCommittee

Ordered to be Reported by the Yeas and Nays: 56 - 0.

Financial Services Committee

May 22, 2014

HouseCommittee

Reported by the Committee on Financial Services. H. Rept. 113-641.

Financial Services Committee

December 2, 2014

HouseCalendars

Placed on the Union Calendar, Calendar No. 481.

December 2, 2014

HouseFloor

Mr. Luetkemeyer moved to suspend the rules and pass the bill.

December 2, 2014 • 1:44 PM

HouseFloor

Considered under suspension of the rules. (consideration: CR H8239-8240)

December 2, 2014 • 1:44 PM

HouseFloor

DEBATE - The House proceeded with forty minutes of debate on H.R. 4200.

December 2, 2014 • 1:44 PM

HouseFloor

Passed/agreed to in House: On motion to suspend the rules and pass the bill Agreed to by voice vote.(text: CR H8239-8240)

December 2, 2014 • 1:49 PM

HouseFloor

On motion to suspend the rules and pass the bill Agreed to by voice vote. (text: CR H8239-8240)

December 2, 2014 • 1:49 PM

HouseFloor

Motion to reconsider laid on the table Agreed to without objection.

December 2, 2014 • 1:49 PM

SenateIntro Referral

Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Banking, Housing, and Urban Affairs Committee

December 3, 2014

Floor Debate

2 members

What members said about H.R. 4200 on the floor

1 Republican1 Democrat

Rep. Blaine LuetkemeyerR-MO-3 · Dec 2, 2014

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 4200) to amend the Investment Advisers Act of 1940 to prevent duplicative regulation of advisers of small business investment…

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 4200) to amend the Investment Advisers Act of 1940 to prevent duplicative regulation of advisers of small business investment companies.

Mr. Speaker, I ask unanimous consent that all Members have 5 legislative days within which to revise and extend their remarks and submit extraneous materials for the Record on H.R. 4200, currently under consideration.

Mr. Speaker, I yield myself such time as I may consume.

The legislation we consider today is a bipartisan, noncontroversial, and commonsense change that will ultimately allow for greater small business capital formation and job creation.

H.R. 4200, the SBIC Advisers Relief Act, streamlines reporting requirements for advisers to small business investment companies, or SBICs. These are advisers to investment funds who make long-term investments in U.S. small businesses and who have to the tune of more than $63 billion since 1958.

Under current law and for more than 55 years, SBICs have been regulated and closely supervised by the Small Business Administration. The existing regulatory regime surrounding SBICs includes an in-depth examination of management, strong investment rules, operational requirements, recordkeeping, examination and reporting mandates, and conflict of interest rules. These entities and the management of these entities are anything but unregulated.

The need for exemptions for SBICs and their advisers has been well- recognized by Congress. Congress' intent by including some of these exemptions in previous legislation was to reduce the regulatory burdens facing smaller funds and SBICs. This bill fixes some unintended consequences that have arisen and need to be addressed.

The SBIC Advisers Relief Act does so by doing three things: number one, it allows advisers who jointly advise SBICs and venture funds to be exempt from registration, combining two separate exemptions that already exist; number two, it excludes SBIC assets from the SEC's assets under management threshold calculation; number three, it allows SBIC funds with less than $90 million in assets under management to be regulated solely by the SBA, as they are today.

The Financial Services Committee has thoroughly examined the bipartisan legislation in both a legislative hearing and a markup. H.R. 4200 garnered praise from members on both sides of the aisle and from witnesses who testified on the bill in an April hearing. This noncontroversial legislation passed the committee by a vote of 56-0 in May.

It is also important to note that the legislation includes suggestions made by the SEC. Most importantly, this legislation includes sensible provisions that prevent redundant regulatory mandates and allow for a greater investment in America's small businesses.

I want to thank Congresswoman Maloney for her help on this bill, and I ask my colleagues for their support.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I have no other speakers, and I yield back the balance of my time.

Rep. Gwen MooreD-WI-4 · Dec 2, 2014

Mr. Speaker, I yield myself such time as I may consume. This bill, as has been indicated, is a bipartisan bill. We support the bill. I have no requests for time; therefore, I would urge my colleagues…

Bill Text

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Referred in SenateIssued December 3, 2014

IIB

113th CONGRESS

2d Session

H. R. 4200

IN THE SENATE OF THE UNITED STATES

December 3, 2014

Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs

AN ACT

To amend the Investment Advisers Act of 1940 to prevent duplicative regulation of advisers of small business investment companies.

Short title

This Act may be cited as the SBIC Advisers Relief Act of 2014.

Advisers of SBICs and venture capital funds

Section 203(l) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–3(l)) is amended—

(1)

by striking No investment adviser and inserting the following:

(1)

In general

No investment adviser

; and

(2)

by adding at the end the following:

(2)

Advisers of SBICs

For purposes of this subsection, a venture capital fund includes an entity described in subparagraph (A), (B), or (C) of subsection (b)(7) (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).

Advisers of SBICs and 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:

(3)

Advisers of SBICs

For purposes of this subsection, the assets under management of a private fund that is an entity described in subparagraph (A), (B), or (C) of subsection (b)(7) (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) shall be excluded from the limit set forth in paragraph (1).

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 (A), by striking or at the end;

(2)

in subparagraph (B), by striking the period at the end and inserting ; or; and

(3)

by adding at the end the following:

(C)

that is not registered under section 203 because that person is exempt from registration as provided in subsection (b)(7) of such section, or is a supervised person of such person.

Passed the House of Representatives December 2, 2014.

Karen L. Haas,

Clerk