,,ib ,union ,calendar ,no4 #dgd #aadth ,,congress #b;d ,session ,h4 ,r4 #dfch ,report ,no4 #aad-fji ,,in ,,the ,,house ,,of ,,representatives ,february #bf1 #bjaf ,mr4 ,garrett 7for himself and ,mr4 ,chabot7 introduced the following bill2 which was referred to the ,committee on ,financial ,services ,june #h1 #bjaf ,reported with an amendment1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed ,strike out all after the enacting clause and insert the part printed in italic ,for text of introduced bill1 see copy of bill as introduced on ,february #bf1 #bjaf ,a ,,bill ,to amend the ,securities ,exchange ,act of #aicd to allow for the creation of venture exchanges to promote liquidity of venture securities1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,main ,street ,growth ,act4 #b4 ,venture exchanges 7a7 ,securities ,exchange ,act of #aicd ,section #f of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;f7 is amended by adding at the end the following3 7m7 ,venture exchange 7#a7 ,registration 7,a7 ,in general ,a national securities exchange may elect to be treated 7or for a listing tier of such exchange to be treated7 as a venture exchange by notifying the ,commission of such election1 either at the time the exchange applies to be registered as a national securities exchange or after registering as a national securities exchange4 7,b7 ,determination time period ,with respect to a securities exchange electing to be treated 7or for a listing tier of such exchange to be treated7 as a venture exchange-- 7i7 at the time the exchange applies to be registered as a national securities exchange1 such application and election shall be deemed to have been approved by the ,commission unless the ,commission denies such application before the end of the #f-month period beginning on the date the ,commission received such application2 and 7ii7 after registering as a national securities exchange1 such election shall be deemed to have been approved by the ,commission unless the ,commission denies such approval before the end of the #f-month period beginning on the date the ,commission received notification of such election4 7#b7 ,powers and restrictions ,a venture exchange-- 7,a7 may only constitute1 maintain1 or provide a market place or facilities for bringing together purchasers and sellers of venture securities2 7,b7 may determine the increment to be used for quoting and trading venture securities on the exchange2 7,c7 shall disseminate last sale and quotation information on terms that are fair and reasonable and not unreasonably discriminatory2 7,d7 may choose to carry out periodic auctions for the sale of a venture security instead of providing continuous trading of the venture security2 and 7,e7 may not extend unlisted trading privileges to any venture security4 7#c7 ,exemptions from certain national security exchange regulations ,a venture exchange shall not be required to-- 7,a7 comply with any of sections #bdb4fjj through #bdb4fab of title #ag1 ,code of ,federal ,regulations2 7,b7 comply with any of sections #bdb4cjj through #bdb4cjc of title #ag1 ,code of ,federal ,regulations2 7,c7 submit any data to a securities information processor2 or 7,d7 use decimal pricing4 7#d7 ,treatment of certain exempted securities ,a security that is exempt from registration pursuant to section #c7;b7 of the ,securities ,act of #aicc shall be exempt from section #ab7;a7 of this title with respect to the trading of such security on a venture exchange1 if the issuer of such security is in compliance with all disclosure obligations of such section #c7;b7 and the regulations issued under such section4 7#e7 ,definitions ,for purposes of this subsection3 7,a7 ,early-stage1 growth company 7i7 ,in general ,the term early-stage1 growth company means an issuer-- 7,i7 that has not made an initial public offering of any securities of the issuer2 and 7,,ii7 with a market capitalization of #a1jjj1jjj1jjj 7as such amount is indexed for inflation every #e years by the ,commission to reflect the change in the ,consumer ,price ,index for ,all ,urban ,consumers published by the ,bureau of ,labor ,statistics1 setting the threshold to the nearest #a1jjj1jjj7 or less4 7ii7 ,treatment when market capitalization exceeds threshold 7,i7 ,in general ,in the case of an issuer that is an early-stage1 growth company the securities of which are traded on a venture exchange1 such issuer shall not cease to be an early-stage1 growth company by reason of the market capitalization of such issuer exceeding the threshold specified in clause 7i77,,ii7 until the end of the period of #bd consecutive months during which the market capitalization of such issuer exceeds #b1jjj1jjj1jjj 7as such amount is indexed for inflation every #e years by the ,commission to reflect the change in the ,consumer ,price ,index for ,all ,urban ,consumers published by the ,bureau of ,labor ,statistics1 setting the threshold to the nearest #a1jjj1jjj74 7,,ii7 ,exemptions ,if an issuer would cease to be an early-stage1 growth company under subclause 7,i71 the venture exchange may1 at the request of the issuer1 exempt the issuer from the market capitalization requirements of this subparagraph for the #a-year period that begins on the day after the end of the #bd-month period described in such subclause4 ,the venture exchange may1 at the request of the issuer1 extend the exemption for #a additional year4 7,b7 ,venture security ,the term venture security means-- 7i7 securities of an early-stage1 growth company that are exempt from registration pursuant to section #c7;b7 of the ,securities ,act of #aicc2 and 7ii7 securities of an emerging growth company4 4 7b7 ,securities ,act of #aicc ,section #ah7;b77#a7 of the ,securities ,act of #aicc 7#ae ,u4,s4,c4 #ggr7b77#a77 is amended-- 7#a7 in subparagraph 7,b71 by striking or at the end2 7#b7 in subparagraph 7,c71 by striking the period and inserting 2 or2 and 7#c7 by adding at the end the following3 7,d7 a venture security1 as defined under section #f7m77#e7 of the ,securities ,exchange ,act of #aicd4 4 7c7 ,sense of ,congress ,it is the sense of the ,congress that the ,securities and ,exchange ,commission should-- 7#a7 when necessary or appropriate in the public interest and consistent with the protection of investors1 make use of the ,commission's general exemptive authority under section #cf of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #ghmm7 with respect to the provisions added by this section2 and 7#b7 if the ,commission determines appropriate1 create an ,office of ,venture ,exchanges within the ,commission's ,division of ,trading and ,markets4 7d7 ,rule of construction ,nothing in this section or the amendments made by this section shall be construed to impair or limit the construction of the antifraud provisions of the securities laws 7as defined in section #c7;a7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c7a777 or the authority of the ,securities and ,exchange ,commission under those provisions4 7e7 ,effective date for tiers of existing national securities exchanges ,in the case of a securities exchange that is registered as a national securities exchange under section #f of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;f7 on the date of the enactment of this ,act1 any election for a listing tier of such exchange to be treated as a venture exchange under subsection 7m7 of such section shall not take effect before the date that is #ahj days after such date of enactment4 ,june #h1 #bjaf ,reported with an amendment1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed