Floor Statements

Mr. Speaker, I rise in support of H. Res. 771.

Today, the House has an opportunity to demonstrate moral clarity and moral courage. These past few weeks have exposed a level of anti- Semitism in this Nation that is frightening.

Whether it is schoolchildren chanting for the genocide of Israelis by calling for removal ``from the river to the sea'' or radicalized college students projecting anti-Semitic slogans on the side of school property, it is clear young Americans are being indoctrinated against Israel. These actions must be condemned.

Hamas is a terror organization that slaughtered innocent women and children. Hamas is a terror organization that manipulated Western media into doing their bidding by spreading lies about attacks Israel did not commit. Hamas is a terror organization that steals foreign aid, using it to construct rockets and attack Israel.

These are not my opinions, Mr. Speaker, they are facts. Yet too many refuse to call Hamas out for what it is: evil incarnate, focused solely on the destruction of the Jewish people.

Mr. Speaker, the United States Government must be united in support of Israel and against Hamas and anti-Semitism.

There should be no equivocation from the White House when asked whether the rise of anti-Semitism is wrong. There should be no equivocation from a Member of Congress about whether to stand with Israel or with terrorist groups like Hamas.

Today, this body is speaking loudly to the international community that Israel must have the resources to defend itself from genocidal terrorists.

With one voice, let us support H. Res. 771 and stand with Israel. If, Mr. Speaker, you cannot bring yourself to support this resolution today, I would encourage any such Member to do the right thing and resign from this body.

Mr. Speaker, I inadvertently voted yes on Roll Call No. 476, Steube of Florida Part D Amendment No. 45. I intended to vote ``nay'' on Rollcall No. 476.

Mr. Chair, I thank the chairman for yielding, and I thank the ranking member for his support of this amendment also.

Mr. Chair, I rise today in support of my amendment, which has been included in the bipartisan en bloc for the Department of Homeland Security appropriations bill.

Last year, there were over 32 million reports of online child sexual abuse material previously referred to as ``child pornography.''

That is an 89 percent increase since 2019 and equals over 87,000 reports per day of images and videos of children being raped and sexually exploited spreading across the internet.

Homeland Security Investigations, or HSI, is on the front lines fighting to locate and rescue these vulnerable children and apprehend their abusers.

My amendment would ensure that HSI receives the fully offset $24 million that they requested to investigate these unconscionable crimes.

Mr. Chair, Congress must do more to reverse this horrific trend, and I urge my colleagues to support this amendment.

Mr. Chair, I rise in support of my amendment to direct Customs and Border Protection to eliminate the serious delay in the Trusted Traveler Program application processing time, known as Global Entry.

I have heard from so many frustrated constituents who have paid for Global Entry, a $100 up front processing fee that is not cheap only to wait months in some cases for CBP to approve them for an interview. Those who succeed in getting to that point are finding that there simply are no interview slots available.

Today, Global Entry processing time averages 11 months. This is utterly unacceptable.

My amendment will direct CBP to do its job and get the situation and backlog under control.

I urge my colleagues to support this amendment.

Mr. Speaker, I regret that I missed roll call votes today, due to the birth of my fourth grandchild. Had I been present, I would have voted ``yea'' on rollcall No. 383, ``yea'' on rollcall No. 384, and ``yea'' on rollcall No. 385.

Mr. Chair, I rise in support of my amendment to the fiscal year 2024 National Defense Authorization Act, which addresses the shocking rise in child sexual abuse and exploitation in the United States and around the world.

Last year, there were over 32 million reports of online child sexual abuse material, an 89 percent increase since 2019.

The Pentagon's Combating Trafficking in Persons Office coordinates vital programs to prevent human trafficking, bring perpetrators to justice, and to protect victims.

My amendment will direct this office to analyze ways that the Department can better combat child sexual abuse and to recommend educational programs for servicemembers to identify and report exploitation, both online and offline, to law enforcement.

I thank the chair and the ranking member for their hard work on this legislation, and I urge all my colleagues to support this commonsense bipartisan amendment.

Madam Speaker, I move to suspend the rules and pass the bill (H.R. 2622) to amend the Investment Advisers Act of 1940 to codify certain Securities and Exchange Commission no-action letters that exclude brokers and dealers compensated for certain research services from the definition of investment adviser, and for other purposes, as amended.

Madam Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on this bill.

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

I rise in support of H.R. 2622, a bill that would ensure broker- dealers can continue to provide investment research to Europe. This research is incredibly important for smaller and midsize public companies that rely on our capital markets.

I thank my colleagues from both sides of the aisle, Representatives Sessions and Gottheimer, for finding common ground and coming to a sensible agreement to ensure that policies enacted by the European Union's Markets in Financial Instruments Directive, MiFID, do not needlessly burden U.S. broker-dealers.

H.R. 2622 extends an SEC no-action letter originally issued in 2017, and extended again in 2019, for another 6 months, granting U.S. broker- dealers much-needed relief and giving the SEC time to properly study the impact of the no-action letter's expiration.

Widespread dissemination of research by U.S. broker-dealers to investment managers is critical to capital formation and to maintaining the competitiveness and efficiency of the U.S. capital markets. Moreover, non-U.S. and global investment managers rely on the excellent research conducted and provided by U.S. broker-dealers to inform their decisionmaking and fulfill their fiduciary duties to U.S. investors.

Unfortunately, the EU's MiFID II threatens to disrupt the current

broker-dealer research market by requiring separate payments for research services and trade execution. This small change would capture U.S. broker-dealers receiving unbundled payments for research services and put them under the Investment Advisers Act, subjecting them to an entirely new regulatory regime.

The SEC no-action letter, which H.R. 2622 extends, permits broker- dealers to accept separate cash payments from investment advisers without adding new, burdensome regulatory requirements.

Studies have shown that since MiFID II was introduced, there has been a reduction in the availability of research. Many broker-dealers have said that they will significantly curtail or eliminate their research services altogether if this no-action letter expires. Plus, as of last month, several European Union member states are seeking to reverse MiFID II.

Madam Speaker, to ensure the continued availability of investment research and better understand the consequences of allowing the SEC no- action letter to expire, I urge my colleagues to support H.R. 2622, and I reserve the balance of my time.

Madam Speaker, I yield such time as he may consume to the gentleman from Texas (Mr. Sessions), the author of this piece of legislation and my friend and colleague.

Madam Speaker, I would just simply urge my colleagues to support H.R. 2622, and I yield back the balance of my time.

Madam Speaker, I move to suspend the rules and pass the

bill (H.R. 1548) to amend the Securities Exchange Act of 1934 to specify that actions of the Advocate for Small Business Capital Formation are not a collection of information under the Paperwork Reduction Act, as amended.

Madam Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on this bill.

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

Madam Speaker, I rise in support of H.R. 1548, the Improving Access to Small Business Information Act.

I thank my colleagues from both sides of the aisle, the gentlewoman from California (Mrs. Kim), the author of this legislation, and the gentleman from New Jersey (Mr. Gottheimer), for working on this commonsense piece of bipartisan legislation that will help ensure America's small businesses and entrepreneurs are heard at the SEC.

H.R. 1548 provides a simple fix that will allow the SEC's Advocate for Small Business Capital Formation, or the Advocate, to become a more impactful voice in support of American entrepreneurs and capital formation.

Each year, the Advocate and its staff host events around the country to support small businesses and to better understand their most pressing issues when it comes to raising capital. Such interactions help the Advocate analyze the potential impact of policy changes likely to affect small businesses and their investors.

Under current law, however, the Advocate may not collect information--such as through surveys or studies--from small businesses and entrepreneurs without triggering the burdensome requirements of the Paperwork Reduction Act. This, in turn, introduces a host of bureaucratic hurdles the Advocate must navigate in carrying out its mission.

By clarifying that such actions of the Advocate are not a collection of information under the Paperwork Reduction Act and providing exemptions from the most burdensome aspects of the Paperwork Reduction Act, H.R. 1548 enables the Advocate to engage with American small businesses with less friction.

With fewer hurdles in place, the Advocate will gain a better understanding of the capital formation challenges that small businesses face, which will result in better policymaking decisions here in Washington, D.C.

Madam Speaker, H.R. 1548 is a balanced and thoughtful bill that cuts unnecessary and onerous red tape to allow the SEC's Advocate for Small Business Capital Formation to become a more effective champion in support of American small businesses and capital formation. For this reason, I urge my colleagues to support H.R. 1548, and I reserve the balance of my time.

Madam Speaker, I yield such time as she may consume to the gentlewoman from California (Mrs. Kim), the author of this piece of legislation, and my friend and colleague.

Madam Speaker, I have no further speakers, so I reserve the balance of my time.

Madam Speaker, I would simply urge my colleagues to support H.R. 1548, and I yield back the balance of my time.

Madam Speaker, on that I demand the yeas and nays.

Madam Speaker, I move to suspend the rules and pass the bill (H.R. 1096) to require the Secretary of the Treasury to mint coins in commemoration of the 250th Anniversary of the United States Marine Corps, and to support programs at the Marine Corps Heritage Center.

Madam Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on this bill.

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

Madam Speaker, I rise in strong support of H.R. 1096, a bill that will mint a series of coins to commemorate the 250th anniversary of the United States Marine Corps.

I would like to thank my colleagues, the gentleman from Massachusetts (Mr. Moulton) and the gentleman from Michigan (Mr. Bergman), for their work on this bill and for their service.

The Marines are one of the most storied branches of the United States Armed Forces. On November 10, 1775, the Second Continental Congress meeting in Philadelphia, passed a resolution stating that ``two Battalions of Marines be raised'' for service as landing forces with the fleet.

This resolution established the Continental Marines and forever marked the birth date of the United States Marine Corps.

Now, that may be the official inception of the Marines, but if you ask any corpsman, they will tell you that the Marines were formed in a bar.

According to Marine legend, newly commissioned Captains Samuel Nicholas and Robert Mullan organized the first Marine Corps muster at Tun Tavern, a popular watering hole in Philadelphia.

The two officers are said to have lured potential marines with mugs of beer and a promise of adventures on the high seas. They were looking for ``a few good men,'' the ``Few and the Proud.'' Their recruits later made up the first five companies who served aboard Continental Navy ships.

Shortly after their beginning, the marines became known for their unconventional and fierce combat.

The first amphibious assault in Marine Corps history came on March 3, 1776, when a force under Captain Nicholas stormed the beaches of the British-held island of New Providence in the Bahamas. These 220 marines captured the town and successfully seized several brass canons and mortars that were directly shipped to George Washington's Continental Army.

The Marines served in every American war of the 18th and 19th centuries, but their role as naval troops was limited until June of 1918.

In 1918, under General James Harbord, marines clashed with German forces positioned in a French hunting preserve known as Belleau Wood.

Ignoring calls to withdraw, one captain famously said, ``Retreat? Hell, we just got here.'' The marines held their ground against a German assault and later spearheaded an Allied counterattack on June 6, earning their nickname of ``Devil Dogs.''

The Marines have a history that is far too expansive for a floor speech alone. However, every historical battle the Marines took part in left a lasting impact.

The ``leathernecks'' of Derna, the Navajo Code Talkers of World War II, and the Montford Point marines all paved the way for generations of marines to come, including the 15 corpsmen in the 118th Congress.

In August of 2021, marines were among the last U.S. forces on the battleground in Afghanistan, going above and beyond the call of duty to defend Afghan and American civilians alike who were fleeing the Taliban's advance.

Eleven of the 13 courageous and honorable servicemembers killed in the terrorist attack on the Kabul airport were members of the United States Marine Corps. These fearless marines lived and embodied their motto, ``Semper Fidelis,'' or ``Always Faithful,'' a motto I am sure will be the centerpiece of the commemorative coin series.

I again thank my Congressional colleagues who answered the call to service in the Marine Corps, and especially those marines back home in Missouri's Second Congressional District. It is your warrior spirit that we are honoring here today.

Madam Speaker, I urge my colleagues to support this bill, and I reserve the balance of my time.

Madam Speaker, I yield such time as he may consume to the gentleman from Michigan (Mr. Bergman), one of the authors of this coin legislation for the U.S. Marine Corps and a great friend, colleague, and patriot.

Madam Speaker, as a proud Army mom whose son is a graduate of West Point, I insist that the lieutenant general take my son, Raymond, the good captain, to the mint also.

Madam Speaker, I reserve the balance of my time.

Madam Speaker, I reserve the balance of my time, and I am prepared to close.

Madam Speaker, I thank my congressional colleagues for their work on this bill, Captain Seth Moulton and General Jack Bergman. Their steadfast commitment and determination to commemorate the Marine Corps truly shows once a marine, always a marine.

Madam Speaker, I yield back the balance of my time.

Ms. Jackson Lee. Madam Speaker, I rise in support of H.R. 1096, a bill authorizing the U.S. Treasury to mint commemorative coins in honor of the Marine Corps' 250th Anniversary in 2025 and to support programs at the Marine Corps Heritage Center.

The 250th Anniversary of the United States Marine Corps Commemorative Coin Act will allow Americans to continue their substantial contributions toward the preservation of the Marine Corps history without any costs to the taxpayers.

November 2025 marks the 250th anniversary of the Navy Marine Corps' founding at Tun Tavern, Philadelphia, on November 10, 1775.

Since its founding, the Marine Corps has gone on to safeguard our freedom in every climate and region, and in almost every war our nation has fought.

As this House may fervently remember, the coin minted in 2005 for the 230th anniversary of the Marine Corps turned out to be one of the most popular in U.S. Mint history.

The revenue from that coin supported the funding of the construction of the National Museum of the Marine Corps--an award-winning cultural institution which continues to welcome visitors from around the world.

No reason to doubt that a coin marking the 250th anniversary of the Marine Corps will be just as popular.

Revenue from the 250th Anniversary coin will support Marine Corps Heritage Foundation's historical and cultural programs that preserve, showcase, and educate the public on Marine Corps, history, traditions, and culture and support to the National Museum of the Marine Corps.

H.R. 1096 will also help to take the history, tradition, culture, and values of the Marine Corps beyond the museum's walls to Americans across the country.

Today's Marine Corps is an integrated air-ground team, capable of rapidly deploying to any conflict or crisis location in the world.

The men and women of the Marine Corps, Always Faithful, remain our nation's finest examples of Honor, Courage, and Commitment for nearly 250 years.

This legislation is an opportunity for Congress to help Americans honor the Marine Corps legacy of bravery and selfless service on a national scale, in a way that won't cost taxpayers a single cent.

I am honored to join with a bipartisan group of Marine veterans, and other veterans of the armed forces serving in Congress, in supporting a legislation that directs the Treasury Department to issue more than one million coins in 2025 for the commemoration of the 250th Anniversary of the United States Marine Corps.

Madam Speaker, on that I demand the yeas and nays.

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 835) to amend the Securities Act of 1933 to codify certain qualifications of individuals as accredited investors for purposes of the securities laws, as amended.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on the bill.

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

Mr. Speaker, I rise in support of H.R. 835, the Fair Investment Opportunities for Professional Experts Act.

I thank my colleagues from both sides of the aisle, Congressmen Hill, Schweikert, Vargas, and others, for working on this important piece of bipartisan legislation that will expand the pool of eligible investors who can build wealth through private placements. The current ``accredited investor'' definition restricts access to investments in private markets to a select few, largely based on income or net worth. This excludes many individuals who have other types of expertise or experience that would make them sophisticated investors.

According to SEC estimates, only 13 percent of U.S. households actually qualified as accredited investors in 2016, and only a small percentage of accredited investors are Black or Latino. This shows that the current definition disproportionately excludes minorities from accessing investment opportunities.

H.R. 835 expands the definition to include individuals with certain licenses, educational qualifications, or job experience, opening up more investment opportunities for those who are knowledgeable in specific fields. I should also note that this bill passed on suspension by voice vote in the 115th Congress.

Mr. Speaker, passing H.R. 835 will help level the playing field for minority entrepreneurs who often struggle to secure funding due to lack of access to accredited investors. It will also help diversify the pool of eligible investors, providing more investment opportunities but also unlocking new sources of innovation and economic growth.

Mr. Speaker, for this reason, I urge my colleagues to support H.R. 835, and I reserve the balance of my time.

Mr. Speaker, I yield such time as he may consume to the gentleman from Arkansas (Mr. Hill), the author of this bill, who is also the chairman of the Digital Assets, Financial Technology and Inclusion Committee.

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

Mr. Speaker, I would just simply urge my colleagues to support H.R. 835, and I yield back the balance of my time.

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 1579) to amend the Securities Act of 1933 and the Dodd-Frank Wall Street Reform and Consumer Protection Act with respect to the definition of accredited investor, and for other purposes, as amended.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on the bill.

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

Mr. Speaker, I rise in support of H.R. 1579, the Accredited Investor Definition Review Act.

I thank my colleagues, Congressmen Huizenga and Lawler, for working on this important piece of legislation that balances increasing investor opportunities with investor protection.

Currently, to qualify as an accredited investor, an individual must have an annual income of at least $200,000 or a net worth of over $1 million. These thresholds exclude many sophisticated but not wealthy investors from participating in high-growth private companies.

H.R. 1579 requires the SEC to review and update the list of certifications, designations, and credentials that an investor must satisfy to qualify as an accredited investor every 5 years, ensuring that the definition remains relevant and accessible.

By supporting H.R. 1579, we can create a more democratized investment landscape, where more Americans have the opportunity to invest in high- growth private companies, not just the wealthy elite.

This bill provides a pathway for sophisticated investors of all backgrounds to accumulate wealth and participate in the success of private companies.

Mr. Speaker, in short, by expanding the definition of accredited investors and promoting greater access to private investments, H.R. 1579 will help to level the playing field and ensure that all Americans have an opportunity to participate in the growth and success of our economy.

For this reason, I urge my colleagues to support H.R. 1579.

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

Mr. Speaker, I yield such time as he may consume to the gentleman from Michigan (Mr. Huizenga), the author of the bill, who is also chairman of the Oversight and Investigation Subcommittee of the Committee on Financial Services.

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

Mr. Speaker, I strongly urge my colleagues to support H.R. 1579, and I yield back the balance of my time.

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 2593) to create an interdivisional taskforce at the Securities and Exchange Commission for senior investors, as amended.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on the bill.

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

Mr. Speaker, I rise in support of H.R. 2593, the Senior Security Act. I am proud to be an original cosponsor of this bill, and I thank my colleagues from both sides of the aisle, Representatives Gottheimer and Lawler, for working on this important piece of bipartisan legislation that will assist in the protection of our senior investors.

Fraud and exploitation of any kind in our capital markets threaten the integrity of our markets. It is especially problematic when such fraudulent activity targets senior investors.

According to some reports, around 20 percent of senior investors fall prey to fraudulent investment schemes. Similar reports show that seniors lose nearly $3 billion annually from financial fraud and exploitation.

The Senior Security Act is designed to support and enhance efforts to protect against and prevent the financial exploitation of senior investors.

This bill establishes the senior investors task force within the Securities and Exchange Commission, which must report on industry trends and serious issues impacting investors over the age of 65. The task force will also help inform policymaking in Washington by making recommendations for legislative or regulatory actions to address problems encountered by our senior investors.

Mr. Speaker, H.R. 2593 has received very strong bipartisan support in the past, passing by suspension in both the 116th and 117th Congresses. It remains a sensible solution to ensure that senior investors receive adequate protection against fraud and exploitation.

For this reason, I urge my colleagues to support H.R. 2593, and I reserve the balance of my time.

Mr. Speaker, will the gentleman yield for the purpose of a colloquy?

Mr. Speaker, I am happy to inform the ranking member that we may be a bit out of order here. My deepest apologies, and we will be returning to that order right after this bill is finished.

Mr. Speaker, I, too, am pleased to see that the author of the bill, the gentleman from New Jersey (Mr. Gottheimer), is here to speak on his very fine piece of legislation that we are all supportive of, in a bipartisan manner, H.R. 2593, and I reserve the balance of my time.

Mr. Speaker, I strongly urge all of my colleagues to support H.R. 2593, and I reserve the balance of my time.

Mr. Speaker, once again, I urge all my colleagues to support H.R. 2593, a wonderful piece of bipartisan legislation that is going to help our seniors have the kind of financial security that they need going forward.

Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 2608) to amend the Federal securities laws to specify the periods for which financial statements are required to be provided by an emerging growth company, and for other purposes, as amended.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on the bill.

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

Mr. Speaker, I rise in support of H.R. 2608, a bill to specify the periods for which financial statements are required by an emerging growth company.

I thank my colleague, our esteemed chairman of the Financial Services Committee, Mr. McHenry, for his leadership on this important piece of bipartisan legislation which will ensure the continued success of the IPO on-ramp enacted in the bipartisan JOBS Act of 2012.

To address the steady decline of small company IPOs, title I of the JOBS Act of 2012 established a new class of public companies, or issuers, known as emerging growth companies.

These companies are given an on-ramp of up to 5 years to comply with certain regulatory requirements prior to, throughout, and immediately after the company's IPO.

Under the JOBS Act, one particularly helpful accommodation provided to EGCs is the requirement to provide 2 years of audited financial statements instead of 3 years in its IPO registration statement.

Under certain circumstances, however, an EGC, or a company that went public as an EGC, must provide financial statements for earlier periods. This has occurred occasionally, for example, in the case of acquired company financial statements and for follow-on offerings involving an emerging growth company that lost its EGC status during IPO registration.

H.R. 2608 resolves this misinterpretation by establishing that an emerging growth company, as well as any issuer that went public issuing EGC disclosure obligations, only needs to provide 2 years of audited financial statements.

Mr. Speaker, by ensuring that EGCs can consistently rely on the JOBS Act's scaled disclosure obligations by eliminating this irregularity, H.R. 2608 will enhance the utility and the benefits of EGC accommodations.

For this reason, I urge my colleagues to support H.R. 2608, and I reserve the balance of my time.

Mr. Speaker, I yield such time as he may consume to the gentleman from North Carolina (Mr. McHenry), the chairman of the full Financial Services Committee.

Mr. Speaker, I strongly urge my colleagues to support H.R. 2608, and I yield back the balance of my time.

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 2610) to amend the Securities Exchange Act of 1934 to specify certain registration statement contents for emerging growth companies, to permit issuers to file draft registration statements with the Securities and Exchange Commission for confidential review, and for other purposes, as amended.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on this bill.

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

Mr. Speaker, I rise in support of H.R. 2610, a bill to harmonize the emerging growth company, EGC, financial statement requirements originally enacted in the JOBS Act of 2012.

I thank my colleague, and our esteemed chair of the Financial Services Committee, Chairman McHenry, for his leadership on this important piece of bipartisan legislation that will attract companies to go public here in the United States.

Title I of the bipartisan JOBS Act of 2012 established a new class of public companies, or issuers, called emerging growth companies, to attract small companies to go public and reverse the steady decline of small initial public offerings, IPOs, in American capital markets.

Under the JOBS Act, EGCs are granted scaled reporting and disclosure requirements for a limited time after they go public. This attractive accommodation allows the company to grow before absorbing the costly regulatory burdens faced by large public companies.

One accommodation EGCs may take advantage of under the JOBS Act is providing 2 years of audited financial statements rather than 3 years when conducting an IPO.

Sometimes an EGC in its entirety does not undertake an IPO and instead spins off a segment of its business as a new company and takes that spin-off public. However, spin-offs of an EGC may not take advantage of the 2-year financial statement accommodation.

The EGC financial statement accommodations should apply equally, whether an EGC is conducting an IPO or spinning off a segment of its business and taking that company public.

Mr. Speaker, H.R. 2610 ensures consistency and equal application by clarifying that an EGC may present 2 years rather than 3 years of audited financial statements in both IPOs and spinoff transactions.

Mr. Speaker, for this reason, I urge my colleagues to support H.R. 2610, and I reserve the balance of my time.

Mr. Speaker, I yield such time as he may consume to the gentleman from North Carolina (Mr. McHenry), the chairman of the full Financial Services Committee.

Mr. Speaker, I simply urge my colleagues to support H.R. 2610, and I yield back the balance of my time.

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 2793) to amend the Securities Act of 1933 to expand the ability to use testing the waters and confidential draft registration submissions, and for other purposes, as amended.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on this bill.

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

Mr. Speaker, I am proud to rise today in support of my bill, H.R. 2793, the Encouraging Public Offerings Act.

This bipartisan piece of legislation would encourage more companies to go public and expand provisions of the JOBS Act by codifying an existing SEC rule.

The SEC rule that this bill codifies allows for all companies to test the waters by communicating directly with certain potential investors before filing for an IPO.

Although small companies are known to drive technological innovation and job creation, they frequently face obstacles in obtaining funding in the capital markets.

These obstacles often are the result of the disproportionately larger burden that securities regulations--written for large public companies--place on small companies when they seek to go public.

Title I of the JOBS Act established a new category of issuers known as emerging growth companies or EGCs. To qualify as an EGC, a company must maintain a certain threshold of annual revenue.

The law provides that EGCs with a 5-year on-ramp to comply with certain regulatory requirements related to disclosure and reporting.

Additionally, title I allows for EGCs to test the waters by meeting with investors to explain their business structure before issuing an

Mr. Speaker, I strongly urge my colleagues to support H.R. 2793, and I yield back the balance of my time.

Mr. Speaker, on that I demand the yeas and nays.

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 2812) to require the Securities and Exchange Commission to carry out a study of the costs associated with small- and medium-sized companies to undertake initial public offerings, as amended.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on this bill.

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

Mr. Speaker, I rise in support of H.R. 2812, the Middle Market IPO Underwriting Cost Act. I thank my colleagues from both sides of the aisle, Representatives Himes and Lawler, for working on this important piece of bipartisan legislation that will help ensure that our IPO market remains competitive and attractive, especially for small- and medium-sized companies.

I thank Mr. Himes for his willingness to work with the majority, and specifically Congressman French Hill of Arkansas, to reach an agreement on this legislation.

Staff have been working on this since the bill was marked up in April, and I am happy to see that the study will now be carried out by the GAO in consultation with the SEC and FINRA.

Companies have two ways of accessing capital in the securities markets to fund their operations: an initial public offering, IPO, where they sell securities publicly through a registered offering with the SEC, or a private offering under an exemption from registration.

Accessing capital through an IPO is a significant step for a company because there are considerable up-front costs, as well as ongoing, increased costs associated with the company's reporting requirements as a public company.

Before an IPO, companies often spend tens of millions of dollars gathering and compiling mandatory information to submit to the SEC and make available to the public for the sale of its securities.

The SEC itself has estimated that the average cost of just achieving regulatory compliance for going public is $2.5 million, which may not include additional costs of hiring professionals to help undertake the

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

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

Mr. Speaker, I strongly urge my colleagues to support H.R. 2812, and I yield back the balance of my time.

Mr. Speaker, on that I demand the yeas and nays.