Small Entity Update Act
Officially: “Small Entity Update Act” Read the full text
What it does
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1Short title
This section would state that the Act may be cited as the Small Entity Update Act.
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1. Short title This Act may be cited as the Small Entity Update Act .
2Studies, reports, and rules regarding small entities
This section would require the Securities and Exchange Commission (the Commission) to study and update its definition of small entity used under chapter 6 of title 5 of the United States Code. For this section, small entity would have the meaning given in section 601 of title 5, United States Code, with respect to the Commission's activities, and would also include any definition the Commission has established for small business, small entity, small organization, or small governmental jurisdiction under paragraphs (3), (4), or (5) of that section, respectively, with respect to the Commission's activities. Not later than 1 year after the date of enactment, and again 5 years after that, the Commission would have to conduct a study of the definition of small entity with respect to the Commission's activities for purposes of chapter 6 of title 5, United States Code. That study would have to consider the extent to which the definition of small entity, as in effect during the study, aligns with the findings and declarations made under section 2(a) of the Regulatory Flexibility Act (5 U.S.C. 601 note); the amount by which financial markets in the United States have grown since the Commission last amended the definition of small entity, if it has done so; and how the Commission should define small entity so that a meaningful number of entities would fall under that definition. After each required study, the Commission would have to submit a report to Congress that includes the results of that study and specific and detailed recommendations on ways the Commission could amend the definition of small entity to be consistent with those results and to expand the number of entities covered by the definition. Concurrently with, or after completion of, each study required under this section, the Commission would have to revise its rules, subject to public notice and comment, consistent with the results of that study. After the Commission issues the final rule revisions required by this section, and every 5 years after that, the Commission would have to adjust any dollar figures under the definition of small entity that the Commission has established 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.
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2. Studies, reports, and rules regarding small entities (a) Definitions In this section— (1) the term Commission means the Securities and Exchange Commission; and (2) the term small entity — (A) has the meaning given the term in section 601 of title 5, United States Code, with respect to the activities of the Commission; and (B) includes any definition established by the Commission of the term small business , small entity , small organization , or small governmental jurisdiction under paragraph (3), (4), or (5), respectively, of section 601 of title 5, United States Code, with respect to the activities of the Commission. (b) Studies and reports Not later than 1 year after the date of enactment of this Act, and again 5 years thereafter, the Commission shall— (1) conduct a study of the definition of the term small entity with respect to the activities of the Commission for the purposes of chapter 6 of title 5, United States Code, which shall consider— (A) the extent to which the definition of the term small entity , as in effect during the period in which the study is conducted, aligns with the findings and declarations made under section 2(a) of the Regulatory Flexibility Act ( 5 U.S.C. 601 note); (B) the amount by which financial markets in the United States have grown since the last time the Commission amended the definition of the term small entity , if applicable; and (C) how the Commission should define the term small entity to ensure that a meaningful number of entities would fall under that definition; and (2) submit to Congress a report that includes— (A) the results of the applicable study conducted under paragraph (1); and (B) specific and detailed recommendations on the ways in which the Commission could amend the definition of the term small entity to— (i) be consistent with the results described in subparagraph (A); and (ii) expand the number of entities covered by such definition. (c) Rulemaking Concurrently with, or after the completion of, each study required under subsection (b), the Commission shall, subject to public notice and comment, revise the rules of the Commission consistent with the results of such study. (d) Inflation adjustments After the Commission issued the final rule revisions required under subsection (c), and every 5 years thereafter, the Commission shall adjust any dollar figures under the definition of small entity established 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.
Where it is
In the House.