115-HR1219 Supporting America's Innovators Act

Legislation
Title
Congress
© edegan.com, 2016

This bill amends the Investment Company Act of 1940 to exempt from its coverage any issuer whose outstanding securities with respect to a qualifying venture capital fund (other than short-term paper) are beneficially owned by not more than 250 persons.

The bill defines "qualifying venture capital fund" as one with no more than $10 million (annually adjusted for inflation) in invested capital.

The bill was previously introduced in the 114th Congress in 2016 where it passed the House. The previous and current bill differ mainly in clause (2)(C) in their clarifications of the term "qualifying venture capital fund" and "venture capital fund".

2017 Bill Text

[Congressional Bills 115th Congress] [From the U.S. Government Publishing Office] [H.R. 1219 Introduced in House (IH)]

115th CONGRESS

 1st Session
                               H. R. 1219

 To amend the Investment Company Act of 1940 to expand the investor 

limitation for qualifying venture capital funds under an exemption from

               the definition of an investment company.

_______________________________________________________________________

                   IN THE HOUSE OF REPRESENTATIVES

                          February 27, 2017

Mr. McHenry (for himself and Ms. Velazquez) introduced the following 
   bill; which was referred to the Committee on Financial Services

_______________________________________________________________________

                                A BILL

 To amend the Investment Company Act of 1940 to expand the investor 

limitation for qualifying venture capital funds under an exemption from

               the definition of an investment company.

   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 ``Supporting America's Innovators Act 

of 2017.

SEC. 2. INVESTOR LIMITATION FOR 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 inserting 
       ``(or, in the case of a qualifying venture capital fund, 250 
       persons) after ``one hundred persons; and
           (2) by adding at the end the following:
                   ``(C)(i) The term `qualifying venture capital fund' 
               means a venture capital fund that has not more than 
               $10,000,000 in aggregate capital contributions and 
               uncalled committed capital, with such dollar amount to 
               be indexed for inflation once every 5 years by the 
               Commission, beginning from a measurement made by the 
               Commission on a date selected by the Commission, 
               rounded to the nearest $1,000,000.
                   ``(ii) The term `venture capital fund' has the 
               meaning given the term in section 275.203(l)-1 of title 
               17, Code of Federal Regulations, or any successor 
               regulation..

2016 Bill Text

[Congressional Bills 114th Congress] [From the U.S. Government Publishing Office] [H.R. 4854 Received in Senate (RDS)]

114th CONGRESS

 2d Session
                               H. R. 4854

_______________________________________________________________________

                  IN THE SENATE OF THE UNITED STATES

                             July 6, 2016

                               Received

_______________________________________________________________________

                                AN ACT

 To amend the Investment Company Act of 1940 to expand the investor 

limitation for qualifying venture capital funds under an exemption from

               the definition of an investment company.

   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 ``Supporting America's Innovators Act 

of 2016.

SEC. 2. INVESTOR LIMITATION FOR 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) by inserting after ``one hundred persons the 
       following: ``(or, with respect to a qualifying venture capital 
       fund, 250 persons); and
           (2) by adding at the end the following:
                   ``(C) The term `qualifying venture capital fund' 
               means any venture capital fund (as defined pursuant to 
               section 203(l)(1) of the Investment Advisers Act of 
               1940 (15 U.S.C. 80b-3(l)(1)) with no more than 
               $10,000,000 in invested capital, as such dollar amount 
               is annually adjusted by the Commission to reflect the 
               change in the Consumer Price Index for All Urban 
               Consumers published by the Bureau of Labor Statistics 
               of the Department of Labor..

           Passed the House of Representatives July 5, 2016.

           Attest:

                                                KAREN L. HAAS,

                                                                Clerk.

References

https://www.congress.gov/bill/115th-congress/house-bill/1219/text?format=txt https://www.congress.gov/bill/114th-congress/house-bill/4854