,i #aac? ,,congress #a/ ,session ,h4 ,r4 #cddh ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,novemb] #ab1 #bjac,mr4 ,duffy 7= himself & ,mr4 ,c>ney7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,f9ancial ,s]vices ,a ,,bill ,to am5d ! ,securities ,ex*ange ,act ( #aicd to provide = an optional pilot program all[+ c]ta9 em]g+ gr[? companies to increase ! tick sizes ( _! /ocks4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,small ,cap ,liquidity ,re=m ,act ( #bjac4 #b4 ,liquidity pilot program = securities ( c]ta9 em]g+ gr[? companies 7a7 ,9 g5]al ,section #aa;,a7c77#f7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #ghk-#a7;c77#f77 is am5d$ to read z foll[s3 7#f7 ,liquidity pilot program = securities ( c]ta9 em]g+ gr[? companies 7,a7 ,quot+ increm5t ,beg9n+ on ! date t is #ij days aft] ! date ( ! enactm5t ( ! ,small ,cap ,liquidity ,re=m ,act ( #bjac1 ! securities ( a cov]$ em]g+ gr[? company %all be quot$ us+-- 7i7 a m9imum increm5t ( #j4je2 or 7ii7 if1 n lat] ?an #fj days aft] su* date ( enactm5t1 ! bo>d ( directors ( ! company s elects 9 ! mann] describ$ 9 subp>agraph 7,d7-- 7,i7 a m9imum increm5t ( #j4aj2 or 7,,ii7 ! increm5t at :i* su* securities w\ld be quot$ )\t reg>d to ! m9imum increm5ts e/abli%$ "u ?is p>agraph4 7,b7 ,trad+ increm5t ,! securities ( a cov]$ em]g+ gr[? company t are quot$ at a m9imum increm5t ( #j4je or #j4aj "u ?is p>agraph %all be trad$ at-- 7i7 su* m9imum increm5t2 or 7ii7 su* o!r increm5t z p]mitt$ by ! ,commission by regulation1 z ! ,commission consid]s appropriate4 7,c7 ,future "r to opt out or *ange m9imum increm5t 7i7 ,9 g5]al ,at any "t beg9n+ on ! date t is #ij days aft] ! date ( ! enactm5t ( ! ,small ,cap ,liquidity ,re=m ,act ( #bjac1 ! bo>d ( directors ( a cov]$ em]g+ gr[? company ! securities ( :i* are quot$ at a m9imum increm5t ( #j4je or #j4aj "u ?is p>agraph may elect 9 ! mann] describ$ 9 subp>agraph 7,d7-- 7,i7 = ! securities ( su* company to be quot$ at ! increm5t at :i* su* securities w\ld be quot$ )\t reg>d to ! m9imum increm5ts e/abli%$ "u ?is p>agraph2 or 7,,ii7 to *ange ! m9imum increm5t at :i* ! securities ( su* company are quot$ f #j4je to #j4aj or f #j4aj to #j4je4 7ii7 ,:5 election effective ,an election "u ?is subp>agraph %all take effect on ! date t is #cj days aft] su* election is made4 7iii7 ,s+le election to *ange m9imum increm5t ,a cov]$ em]g+ gr[? company may n make m ?an "o election "u clause 7i77,,ii74 7,d7 ,mann] ( election 7i7 ,9 g5]al ,an election is made 9 ! mann] describ$ 9 ?is subp>agraph by in=m+ ! ,commission & ea* ex*ange on :i* ! securities ( ! cov]$ em]g+ gr[? company are quot$ or trad$4 7ii7 ,consultation ,9 mak+ an election "u subp>agraph 7,a77ii71 ! bo>d ( directors %all fir/ consult ) ! prim>y li/+ m>ket & major %>ehold]s ( ! cov]$ em]g+ gr[? company & ) any brok]s & deal]s t ! bo>d ( directors consid]s relevant to ! quality ( ! m>ket = ! securities ( ! company4 7,e7 ,issu]s ceas+ to be cov]$ em]g+ gr[? companies 7i7 ,9 g5]al ,if an issu] ! securities ( :i* are quot$ at a m9imum increm5t ( #j4je or #j4aj "u ?is p>agraph ceases to be a cov]$ em]g+ gr[? company1 ! securities ( su* issu] %all be quot$ at ! increm5t at :i* su* securities w\ld be quot$ )\t reg>d to ! m9imum increm5ts e/abli%$ "u ?is p>agraph4 7ii7 ,exceptions ,! ,commission may by regulation1 z ! ,commission consid]s appropriate1 specify any circum/ances "u :i* an issu] %all cont9ue to be consid]$ a cov]$ em]g+ gr[? company = purposes ( ?is p>agraph aft] ! issu] ceases to meet ! requirem5ts ( subp>agraph 7,l77ii74 7,f7 ,securities trad+ bel[ #a 7i7 ,initial price 7,i7 ,at effective date ,if ! trad+ price ( ! securities ( a cov]$ em]g+ gr[? company is bel[ #a at ! close ( ! la/ trad+ day be=e ! date t is #ij days aft] ! date ( ! enactm5t ( ! ,small ,cap ,liquidity ,re=m ,act ( #bjac1 ! securities ( su* company %all be quot$ us+ ! increm5t at :i* su* securities w\ld be quot$ )\t reg>d to ! m9imum increm5ts e/abli%$ "u ?is p>agraph4 7,,ii7 ,at ,,ipo ,if a cov]$ em]g+ gr[? company makes an initial public (f]+ aft] ! day describ$ 9 subclause 7,i7 & ! fir/ %>e ( ! securities ( su* company is (f]$ to ! public at a price bel[ #a1 ! securities ( su* company %all be quot$ us+ ! increm5t at :i* su* securities w\ld be quot$ )\t reg>d to ! m9imum increm5ts e/abli%$ "u ?is p>agraph4 7ii7 ,av]age trad+ price ,if ! av]age trad+ price ( ! securities ( a cov]$ em]g+ gr[? company falls bel[ #a = any #ij-;day p]iod beg9n+ on or aft] ! day be=e ! date ( ! enactm5t ( ! ,small ,cap ,liquidity ,re=m ,act ( #bjac1 ! securities ( su* company %all1 aft] ! end ( su* p]iod1 be quot$ us+ ! increm5t at :i* su* securities w\ld be quot$ )\t reg>d to ! m9imum increm5ts e/abli%$ "u ?is p>agraph4 7,g7 ,fraud or manipulation ,if ! ,commission det]m9es t a cov]$ em]g+ gr[? company has violat$ any provision ( ! securities laws prohibit+ fraudul5t1 manipulative1 or deceptive acts or practices1 ! securities ( su* company %all1 aft] ! date ( ! det]m9ation1 be quot$ us+ ! increm5t at :i* su* securities w\ld be quot$ )\t reg>d to ! m9imum increm5ts e/abli%$ "u ?is p>agraph4 7,h7 ,ineligibility = increas$ m9imum increm5t p]man5t ,! securities ( an issu] may n be quot$ at a m9imum increm5t ( #j4je or #j4aj "u ?is p>agraph at any "t aft]-- 7i7 su* issu] makes an election "u subp>agraph 7,a77ii77,,ii72 7ii7 su* issu] makes an election "u subp>agraph 7,c77i77,i71 except dur+ ! p]iod be=e su* election takes effect2 or 7iii7 ! securities ( su* issu] are requir$ by ?is p>agraph to be quot$ us+ ! increm5t at :i* su* securities w\ld be quot$ )\t reg>d to ! m9imum increm5ts e/abli%$ "u ?is p>agraph4 7,i7 ,additional reports & disclosures ,! ,commission %all require a cov]$ em]g+ gr[? company ! securities ( :i* are quot$ at a m9imum increm5t ( #j4je or #j4aj "u ?is p>agraph to make su* reports & disclosures z ! ,commission consid]s necess>y or appropriate 9 ! public int]e/ or = ! protection ( inve/ors4 7,j7 ,limitation ( liability ,an issu] 7or any (fic]1 director1 manag]1 or o!r ag5t ( su* issu]7 %all n be liable to any p]son "u any law or regulation ( ! ,unit$ ,/ates1 any con/itution1 law1 or regulation ( any ,/ate or political subdivision !re(1 or any contract or o!r legally en=ceable agreem5t 7includ+ any arbitration agreem5t7 = any losses caus$ solely by ! quot+ ( ! securities ( su* issu] at a m9imum increm5t ( #j4je or #j4aj1 by ! trad+ ( su* securities at su* m9imum increm5t or su* o!r increm5t z p]mitt$ by ! ,commission "u subp>agraph 7,b77ii71 or by bo? su* quot+ & trad+1 z provid$ 9 ?is p>agraph4 7,k7 ,report to ,congress ,n lat] ?an #f mon?s aft] ! date ( ! enactm5t ( ! ,small ,cap ,liquidity ,re=m ,act ( #bjac1 & e #f mon?s !reaft]1 ! ,commission1 9 coord9ation ) ea* ex*ange on :i* ! securities ( cov]$ em]g+ gr[? companies are quot$ or trad$1 %all submit to ,congress a report on ! quot+ & trad+ ( securities 9 increm5ts p]mitt$ by ?is p>agraph & ! ext5t to :i* su* quot+ & trad+ are increas+ liquidity & active trad+ by inc5tiviz+ capital commitm5t1 rese>* cov]age1 & brok]age support1 toge!r ) any legislative recomm5dations ! ,commission may h4 7,l7 ,def9itions ,9 ?is p>agraph3 7i7 ,bo>d ( directors ,! t]m bo>d ( directors means a bo>d ( directors or any p]son or p]sons p]=m+ simil> functions4 7ii7 ,cov]$ em]g+ gr[? company ,! t]m cov]$ em]g+ gr[? company means an em]g+ gr[? company1 z def9$ 9 ! fir/ p>agraph 7#hj7 ( section #c7;a71 except t-- 7,i7 su* p>agraph %all be appli$ by sub/itut+ #gej1jjj1jjj = #a1jjj1jjj1jjj ea* place x appe>s2 & 7,,ii7 subp>agraphs 7,b71 7,c71 & 7,d7 ( su* p>agraph d n apply4 4 7b7 ,sunset ,effective on ! date t is #e ye>s aft] ! date ( ! enactm5t ( ?is ,act1 section #aa;,a7c77#f7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #ghk-#a7;c77#f77 is repeal$4