115-HR1219 Supporting America's Innovators Act
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.
| Legislation | |
|---|---|
| Title | 115-HR1219 Supporting America's Innovators Act |
| Congress | 115 |
| Sponsor | Rep. McHenry, Patrick T. (R-NC-10) |
| Committee(s) | House - Financial Services |
| Status | Proposed |
| Keywords | McCarthy |
| © edegan.com, 2016 | |
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
115th CONGRESS 1st Session H. R. 1219 IN THE SENATE OF THE UNITED STATES April 6 (legislative day, April 4), 2017 Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs
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 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.”.
Passed the House of Representatives April 6, 2017.
Attest: karen l. haas, Clerk
