,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #bbgd  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,june #f1 #bjac ,mr4  
,huiz5ga ( ,mi*igan 7= himself1 ,mr4    
,higg9s1 & ,mr4 ,posey7 introduc$ !     
foll[+ bill2 :i* 0 ref]r$ to !          
,committee on ,f9ancial ,s]vices  ,a    
,,bill  ,to am5d ! ,securities ,ex*ange 
,act ( #aicd to provide = a notice-fil+ 
regi/ration proc$ure = brok]s p]=m+     
s]vices 9 connection ) ! transf] (      
own]%ip ( small] privately held         
companies & to provide = regulation     
appropriate to ! limit$ scope ( !       
activities ( su* brok]s4  #a4 ,%ort     
title ,?is ,act may be cit$ z ! ,small  
,bus9ess ,m]g]s1 ,acquisitions1 ,sales1 
& ,brok]age ,simplification ,act (      
#bjac4  #b4 ,m]g] & acquisition brok]s  
7a7 ,9 g5]al ,section #ae7;b7 ( !       
,securities ,ex*ange ,act ( #aicd 7#ae  
,u4,s4,c4 #gho7b77 is am5d$ by add+ at !
 end ! foll[+3  7#ac7 ,m]g] &           
acquisition brok]s  7,a7 ,regi/ration by
 notice-fil+ ,not)/&+ p>agraphs 7#a7 &  

7#b71 an ,m,a brok] may regi/] =        
purposes ( ?is section by fil+ ) !      
,commission an electronic notice 9 su*  
=m & conta9+ su* in=mation conc]n+ !    
,m,a brok] & any p]sons associat$ ) !   
,m,a brok] z ! ,commission may by rule  
prescribe z necess>y or appropriate 9 ! 
public int]e/ or = ! protection (       
inve/ors4  7,b7 ,effectiv5ess (         
regi/ration  7i7 ,imm$iate ,except z    
provid$ 9 clause 7ii71 ! regi/ration (  
an ,m,a brok] "u subp>agraph 7,a7 %all  
become effective ^u receipt by !        
,commission ( a prop]ly complet$ notice 
f ! ,m,a brok] "u su* subp>agraph4  7ii7
 ,commission approval requir$ ,!        
regi/ration ( an ,m,a brok] "u          
subp>agraph 7,a7 %all n become effective
 )\t approval by ! ,commission if ! ,m,a
 brok] or a p]son associat$ ) ! ,m,a    
brok] is subject to--  7,i7 susp5sion or
 revocation ( regi/ration "u p>agraph   
7#d72  7,,ii7 a /atutory                
disqualification 7except t ! date ( !   
fil+ ( ! notice "u subp>agraph 7,a7 %all

 be sub/itut$ = ! date ref]r$ to 9      
section #c7;a77#ci77;,f772 or  7,,iii7  
disqualification "u ! rules adopt$ by ! 
,commission "u section #ibf ( !         
,dodd-,frank ,wall ,/reet ,re=m &       
,consum] ,protection ,act 7#ae ,u4,s4,c4
 #gg;d note7 7except t ! date ( ! fil+ (
 ! notice "u subp>agraph 7,a7 %all be   
sub/itut$ = ! date ref]r$ to 9 p>agraph 
7#b77;,a77ii7 ( su* section74  7,c7     
,updat$ in=mation ,if ! in=mation       
conta9$ 9 a notice fil$ "u subp>agraph  
7,a7 becomes inaccurate or incomplete 9 
any mat]ial respect1 ! ,m,a brok] %all  
update su* in=mation 9 a =m & mann] to  
be specifi$ by ! ,commission4  7,d7     
,public availability ,! ,commission %all
 make publicly available on ! website ( 
! ,commission ! in=mation provid$ 9 a   
notice fil$ "u subp>agraph 7,a71 z      
updat$ "u subp>agraph 7,c74  7,e7       
,disclosure to cli5ts ,! ,commission may
 require an ,m,a brok] regi/]$ "u       
subp>agraph 7,a7 to deliv] to ! cli5ts (
 ! ,m,a brok] a disclosure docum5t      

describ+ ! ,m,a brok] & ! affiliates1   
associat$ p]sons1 s]vices1 & fees ( !   
,m,a brok]1 any conflicts ( int]e/ ( !  
,m,a brok]1 & su* o!r in=mation z !     
,commission consid]s necess>y or        
appropriate 9 ! public int]e/ or = !    
protection ( inve/ors4  7,f7 ,exemptions
 = ,m,a brok]s ,to ! ext5t t !          
activities ( an ,m,a brok] regi/]$ "u   
subp>agraph 7,a7 are )9 ! scope ( !     
activities describ$ 9 subp>agraph       
7,k77iii71 ! ,m,a brok] 7& any p]sons   
associat$ ) ! ,m,a brok]7 %all be exempt
 f--  7i7 except z provid$ 9 subp>agraph
 7,g71 ! requirem5ts ( ?is ,act t apply 
to a brok] regi/]$1 or requir$ to be    
regi/]$1 "u ?is subsection 7or to any   
p]sons associat$ ) su* a brok]1 z ! case
 may be72 &  7ii7 ! ,securities ,inve/or
 ,protection ,act ( #aigj 7#ae ,u4,s4,c4
 #gh;aaa et seq474  7,g7 ,provisions    
applicable to ,m,a brok]s  7i7 ,9 g5]al 
,! foll[+ provisions %all apply to an   
,m,a brok] regi/]$ "u subp>agraph 7,a7  
7or to any p]sons associat$ ) ! ,m,a    

brok]1 z ! case may be73  7,i7 ,?is     
p>agraph & p>agraphs 7#d71 7#e71 7#f71 &
 7#g74  7,,ii7 ,subsection 7a71         
p>agraphs 7#a77;,a7 & 7#c77;,a7 (       
subsection 7c71 & subsection 7g74       
7,,iii7 ,subsections 7a77#a7 & 7b77#a7 (
 section #ag4  7ii7 ,tailor$ application
 ,9 apply+ subsection 7c77#c77;,a7 ( ?is
 section & subsections 7a77#a7 & 7b77#a7
 ( section #ag to ,m,a brok]s1 !        
,commission %all take into acc\nt !     
nature ( ! transactions 9 :i* ,m,a      
brok]s are involv$1 ! involvem5t ( !    
p>ties to su* transactions 9 su*        
transactions1 & ! limit$ scope ( !      
activities ( ,m,a brok]s "u subp>agraph 
7,k77iii71 includ+ t ,m,a brok]s d n h  
cu/ody ( ! funds or securities to be    
ex*ang$ by ! p>ties to su* transactions4
  7iii7 ,/ate law preemption ,subsection
 7i77#a7 %all gov]n ! relation%ip betwe5
 ! requirem5ts applicable to ,m,a brok]s
 "u ?is ,act & ! requirem5ts applicable 
to ,m,a brok]s "u ! law ( a ,/ate or a  
political subdivision ( a ,/ate4 ,except

 z provid$ 9 su* subsection1 ?is        
p>agraph %all n preempt ! law ( a ,/ate 
or a political subdivision ( a ,/ate    
applicable to ,m,a brok]s4  7,h7        
,exclud$ activities ,an ,m,a brok] may n
 9 reliance on ?is p>agraph d any ( !   
foll[+3  7i7 ,directly or indirectly1 9 
connection ) ! transf] ( own]%ip ( an   
eligible privately held company1        
receive1 hold1 transmit1 or h cu/ody ( !
 funds or securities to be ex*ang$ by ! 
p>ties to ! transaction4  7ii7 ,engage  
on behalf ( an issu] 9 a public (f]+ (  
any class ( securities t is regi/]$1 or 
is requir$ to be regi/]$1 ) !           
,commission "u section #ab or ) respect 
to :i* ! issu] files1 or is requir$ to  
file1 p]iodic in=mation1 docum5ts1 &    
reports "u section #ae7;d74  7,i7       
,coord9ation ) ! ,/ates ,9 e/abli%+     
appropriate uni=m & consi/5t /&>ds (    
tra9+1 exp]i5ce1 compet5ce1 & o!r       
qualifications "u p>agraph 7#g7 = p]sons
 associat$ ) an ,m,a brok]1 & 9         
prescrib+ ! =m & cont5t ( ! notice      

describ$ 9 subp>agraph 7,a71 !          
,commission %all coop]ate1 coord9ate1 & 
%>e in=mation ) any association compos$ 
( duly con/itut$ repres5tatives ( ,/ate 
gov]nm5ts ! prim>y assignm5t ( :i* is ! 
regulation ( ! securities bus9ess )9 su*
 ,/ates4  7,j7 ,regulations ,n lat] ?an 
#ahj days aft] ! date ( ! enactm5t ( ?is
 p>agraph1 ! ,commission %all promulgate
 regulations to--  7i7 implem5t & en=ce 
?is p>agraph2 &  7ii7 codify !          
int]pretative guidance issu$ by ! /aff (
 ! ,commission 9 ! no-action lett] to   
,int]national ,bus9ess ,ex*ange         
,corporation dat$ ,decemb] #ab1 #aihf1 &
 9 ! no-action lett] to ,c\ntry         
,bus9ess1 ,inc41 dat$ ,novemb] #h1      
#bjjf1 ) respect to circum/ances "u :i* 
regi/ration z a brok] "u ?is section is 
n requir$4  7,k7 ,def9itions ,9 ?is     
p>agraph3  7i7 ,control ,! t]m control  
means ! p[]1 directly or indirectly1 to 
direct ! managem5t or policies ( a      
company1 :e!r ?r\gh own]%ip (           
securities1 by contract1 or o!rwise4    

,!re is a presumption ( control = any   
p]son :o--  7,i7 is a director1 g5]al   
p>tn]1 memb] or manag] ( a limit$       
liability company1 or (fic] ex]cis+     
executive responsibility 7or has simil> 
/atus or functions72  7,,ii7 has ! "r to
 vote #be p]c5t or m ( a class ( vot+   
securities or ! p[] to sell or direct ! 
sale ( #be p]c5t or m ( a class ( vot+  
securities2 or  7,,iii7 9 ! case ( a    
p>tn]%ip or limit$ liability company1   
has ! "r to receive ^u dissolution1 or  
has contribut$1 #be p]c5t or m ( !      
capital4  7ii7 ,eligible privately held 
company ,! t]m eligible privately held  
company means a company t meets bo? ( ! 
foll[+ conditions3  7,i7 ,! company does
 n h any class ( securities regi/]$1 or 
requir$ to be regi/]$1 ) ! ,commission  
"u section #ab or ) respect to :i* !    
company files1 or is requir$ to file1   
p]iodic in=mation1 docum5ts1 & reports  
"u section #ae7;d74  7,,ii7 ,9 ! fiscal 
ye> end+ imm$iately be=e ! fiscal ye> 9 
:i* ! s]vices ( ! ,m,a brok] are        

initially engag$ ) respect to !         
securities transaction1 ! company meets 
ei!r or bo? ( ! foll[+ conditions       
7det]m9$ 9 accordance ) ! hi/orical     
f9ancial acc\nt+ records ( ! company73  
7aa7 ,! e>n+s ( ! company be=e int]e/1  
taxes1 depreciation1 & amortization are 
less ?an #be1jjj1jjj4  7bb7 ,! gross    
rev5ues ( ! company are less ?an        
#bej1jjj1jjj4  7iii7 ,m,a brok] ,! t]m  
,m,a brok] means a brok] engag$ 9 !     
bus9ess ( effect+ ! transf] ( own]%ip ( 
an eligible privately held company1     
reg>dless ( :e!r ! brok] acts on behalf 
( a sell] or buy]1 ?r\gh ! pur*ase1     
sale1 ex*ange1 issuance1 repur*ase1 or  
r$emption (1 or a bus9ess comb9ation    
involv+1 securities or assets ( !       
eligible privately held company1 if !   
brok] reasonably believes t--  7,i7 ^u  
consummation ( ! transaction1 any p]son 
acquir+ securities or assets ( !        
eligible privately held company1 act+   
alone or 9 conc]t1 w control &1 directly
 or indirectly1 w be active 9 !         

managem5t ( ! eligible privately held   
company or ! bus9ess conduct$ ) ! assets
 ( ! eligible privately held company2 & 
7,,ii7 if any p]son is (f]$ securities 9
 ex*ange = securities or assets ( !     
eligible privately held company1 su*    
p]son w1 prior to becom+ legally b\nd to
 consummate ! transaction1 receive or h 
reasonable access to ! mo/ rec5t ye>-end
 balance %eet1 income /atem5t1 /atem5t (
 *anges 9 f9ancial position1 & /atem5t (
 own]'s equity ( ! issu] ( ! securities 
(f]$ 9 ex*ange1 &1 if ! f9ancial        
/atem5ts ( ! issu] are audit$1 ! relat$ 
report ( ! indep5d5t auditor1 a balance 
%eet dat$ n m ?an #abj days be=e ! date 
( ! (f]1 & in=mation p]ta9+ to !        
managem5t1 bus9ess1 results ( op]ations 
= ! p]iod cov]$ by ! =ego+ f9ancial     
/atem5ts1 & mat]ial loss cont+5cies ( ! 
issu]4  7,l7 ,inflation adju/m5t  7i7 ,9
 g5]al ,on ! date t is #e ye>s aft] !   
,commission fir/ promulgates f9al       
regulations "u subp>agraph 7,j71 & e #e 
ye>s !reaft]1 ea* doll> am\nt 9         

subp>agraph 7,k77ii77,,ii7 %all be      
adju/$ by--  7,i7 divid+ ! annual value 
( ! ,employm5t ,co/ ,index ,= ,wages &  
,sal>ies1 ,private ,indu/ry ,work]s 7or 
any successor index71 z publi%$ by !    
,bureau ( ,labor ,/ati/ics1 = ! cal5d>  
ye> prec$+ ! cal5d> ye> 9 :i* ! adju/m5t
 is be+ made by ! annual value ( su*    
index 7or successor7 = ! cal5d> ye> end+
 ,decemb] #ca1 #bjab2 &  7,,ii7         
multiply+ su* doll> am\nt by ! quoti5t  
obta9$ "u subclause 7,i74  7ii7 ,r\nd+  
,ea* doll> am\nt det]m9$ "u clause 7i7  
%all be r\nd$ to ! ne>e/ multiple (     
#ajj1jjj4  4  7b7 ,effective date       
,p>agraph 7#ac7 ( section #ae7;b7 ( !   
,securities ,ex*ange ,act ( #aicd1 z    
add$ by subsection 7a71 except          
subp>agraph 7,j7 ( su* p>agraph1 %all   
take effect on ! date t is #ahj days    
aft] ! date ( ! enactm5t ( ?is ,act4