,,ib ,union ,cal5d> ,no4 #bge #aah?     
,,congress  #a/ ,session  ,h4 ,r4 #dgij 
,report ,no4 #aah-ccf ,,9 ,,! ,,h\se ,,(
 ,,repres5tatives  ,july #bj1 #bjbc,mr4 
,huiz5ga 7= himself1 ,mr4 ,meus]1 ,mr4  
,lucas1 & ,mr4 ,mooney7 introduc$ !     
foll[+ bill2 :i* 0 ref]r$ to !          
,committee on ,f9ancial ,s]vices        
,decemb] #bb1 #bjbc,report$ ) an        
am5dm5t1 committ$ to ! ,committee ( !   
,:ole ,h\se on ! ,/ate ( ! ,union1 &    
ord]$ to be printed,strike out all aft] 
! enact+ clause & ins]t ! "p pr9t$ 9    
italic,for text ( introduc$ bill1 see   
copy ( bill z introduc$ on ,july #bj1   
#bjbc  ,a ,,bill  ,to am5d ! ,f$]al     
securities laws ) respect to !          
mat]iality ( disclosure requirem5ts1 to 
e/abli% ! ,public ,company ,advisory    
,committee1 & = o!r purposes4  #a4 ,%ort
 title2 table ( cont5ts  7a7 ,%ort title
 ,?is ,act may be cit$ z ! ,guid+ ,uni=m
 & ,responsible ,disclosure ,requirem5ts
 & ,in=mation ,limits ,act ( #bjbc or ! 
,,gu>drail ,act ( #bjbc4  7b7 ,table (  

cont5ts ,! table ( cont5ts = ?is ,act is
 z foll[s3 ,sec4 #a4 ,%ort title2 table 
( cont5ts4,title ,i--,m&atory           
,mat]iality ,requirement,sec4 #aja4     
,limitation on disclosure               
requirem5ts4,title ,,ii--,,sec          
ju/ification ( non-mat]ial disclosure   
mandates,sec4 #bja4 ,,sec ju/ification (
 non-mat]ial disclosure m&ates4,title   
,,iii--,public ,company ,advisory       
,committee,sec4 #cja4 ,public ,company  
,advisory ,committee4,title             
,,iv--,protect+ ,u4,s4 ,bus9ess         
,sovereignty,sec4 #dja4 ,/udy on        
detrim5tal impact ( ! ,directive on     
,corporate ,su/a9ability ,due ,dilig5ce 
& ,corporate ,su/a9ability ,report+     
,directive4  ,i ,m&atory ,mat]iality    
,requirem5t  #aja4 ,limitation on       
disclosure requirem5ts  7a7 ,securities 
,act ( #aicc ,section #b7;b7 ( !        
,securities ,act ( #aicc 7#ae ,u4,s4,c4 
#gg;b7b77 is am5d$-- 7#a7 9 ! subsection
 head+1 by ins]t+ 2 ,limitation on      
,disclosure ,requirem5ts aft] ,=mation2 

7#b7 by /rik+ ,:5ev] & ins]t+ ! foll[+3 
7#a7 ,9 g5]al ,:5ev]  2 &  7#c7 by add+ 
at ! end ! foll[+3  7#b7 ,limitation    
7,a7 ,9 g5]al ,:5ev] pursuant to ?is    
title ! ,commission is engag$ 9 rulemak+
 reg>d+ disclosure obligations ( issu]s1
 ! ,commission %all expressly provide t 
an issu] is only requir$ to disclose    
in=mation 9 response to su* disclosure  
obligations to ! ext5t ! issu] has      
det]m9$ t su* in=mation is mat]ial )    
respect to a vot+ or inve/m5t decision  
reg>d+ ! securities ( su* issu]4  7,b7  
,applicability ,subp>agraph 7,a7 %all n 
apply ) respect to ! removal ( any      
disclosure requirem5t ) respect to an   
issu]4  7,c7 ,rule ( con/ruction ,= !   
purposes ( ?is p>agraph1 in=mation is   
consid]$ mat]ial ) respect to a vot+ or 
inve/m5t decision reg>d+ ! securities ( 
an issu] if !re is a sub/antial         
likelihood t a reasonable inve/or w\ld  
view ! failure to disclose t in=mation z
 hav+ significantly alt]$ ! total mix ( 
in=mation made available to ! inve/or4  

4  7b7 ,securities ,ex*ange ,act ( #aicd
 ,section #c7;f7 ( ! ,securities        
,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4    
#gh;c7f77 is am5d$-- 7#a7 9 ! subsection
 head+1 by ins]t+ 2 ,limitation on      
,disclosure ,requirem5ts aft] ,=mation2 
7#b7 by /rik+ ,:5ev] & ins]t+ ! foll[+3 
7#a7 ,9 g5]al ,:5ev]  2 &  7#c7 by add+ 
at ! end ! foll[+3  7#b7 ,limitation    
7,a7 ,9 g5]al ,:5ev] pursuant to ?is    
title ! ,commission is engag$ 9 rulemak+
 reg>d+ disclosure obligations ( issu]s1
 ! ,commission %all expressly provide t 
an issu] is only requir$ to disclose    
in=mation 9 response to su* disclosure  
obligations to ! ext5t ! issu] has      
det]m9$ t su* in=mation is mat]ial )    
respect to a vot+ or inve/m5t decision  
reg>d+ ! securities ( su* issu]4  7,b7  
,applicability ,subp>agraph 7,a7 %all n 
apply ) respect to ! removal ( any      
disclosure requirem5t ) respect to an   
issu]4  7,c7 ,rule ( con/ruction ,= !   
purposes ( ?is p>agraph1 in=mation is   
consid]$ mat]ial ) respect to a vot+ or 

inve/m5t decision reg>d+ ! securities ( 
an issu] if !re is a sub/antial         
likelihood t a reasonable inve/or w\ld  
view ! failure to disclose t in=mation z
 hav+ significantly alt]$ ! total mix ( 
in=mation made available to ! inve/or4  
4  ,,ii ,,sec ju/ification ( non-mat]ial
 disclosure m&ates  #bja4 ,,sec         
ju/ification ( non-mat]ial disclosure   
m&ates ,section #bc ( ! ,securities     
,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4    
#ghw7 is am5d$ by add+ at ! end !       
foll[+3  7e7 ,non-mat]ial disclosure    
m&ates  7#a7 ,disclosure ,! ,commission 
%all ma9ta9 a li/ on ! website ( !      
,commission t conta9s-- 7,a7 ea* m&ate  
"u ! ,f$]al securities laws &           
regulations t requires ! disclosure (   
non-mat]ial in=mation2 &  7,b7 = ea* su*
 disclosure m&ate1 an explanation ( :y !
 m&ate is requir$4  7#b7 ,/udy & report 
,! ,commission %all1 e #e ye>s1 issue a 
report to ! ,congress ju/ify+ ea*       
disclosure conta9$ on ! li/ requir$ "u  
p>agraph 7#a74  7#c7 ,no private        

liability = fail+ to make a non-mat]ial 
disclosure ,a p]son :o fails to disclose
 non-mat]ial in=mation requir$ to be    
disclos$ "u ! ,f$]al securities laws or 
regulations %all n be liable = su*      
failure 9 any private action4  4  ,,iii 
,public ,company ,advisory ,committee   
#cja4 ,public ,company ,advisory        
,committee ,! ,securities ,ex*ange ,act 
( #aicd is am5d$ by ins]t+ aft] section 
#dj 7#ae ,u4,s4,c4 #ghqq7 ! foll[+3     
#dj;,a4 ,public ,company ,advisory      
,committee  7a7 ,e/abli%m5t & purpose   
7#a7 ,e/abli%m5t ,!re is e/abli%$ )9 !  
,commission ! ,public ,company ,advisory
 ,committee 7ref]r$ to 9 ?is section z !
 #8,committee'74  7#b7 ,purpose ,!      
,committee %all-- 7,a7 provide !        
,commission ) advice on its rules1      
regulations1 & policies ) reg>d to its  
mission ( protect+ inve/ors1 ma9ta9+    
fair1 ord]ly1 & effici5t m>kets1 &      
facilitat+ capital =mation1 z !y relate 
to-- 7i7 exi/+ & em]g+ regulatory       
priorities ( ! ,commission2  7ii7 issues

 relat+ to ! public report+ & corporate 
gov]nance ( public companies2  7iii7    
issues relat+ to ! proxy process =      
%>ehold] meet+s held by public          
companies2  7iv7 issues relat+ to trad+ 
9 ! securities ( public companies2 &    
7v7 issues relat+ to capital =mation2 & 
7,b7 submit to ! ,commission su* f9d+s &
 recomm5dations z ! ,committee det]m9es 
are appropriate1 includ+ recomm5dations 
= propos$ regulatory & legislative      
*anges4  7b7 ,memb]%ip  7#a7 ,9 g5]al ,!
 memb]%ip ( ! ,committee %all be n few] 
?an #aj1 & n m ?an #bj1 memb]s appo9t$  
by ! ,commission f among individuals    
:o-- 7,a7 are (fic]s1 directors1 or     
s5ior (ficials ( public companies       
regi/]$ ) ! ,commission "u ! ,securities
 ,act or #aicc & ?is ,act1 except = ^?  
public companies t own asset managem5t1 
fix$ income1 inve/m5t advisory1         
brok]-deal]1 or proxy s]vices bus9esses2
  7,b7 are executives or o!r individuals
 ) s5ior manag]ial responsibility 9     
bus9ess1 pr(essional1 trade1 & indu/ry  

associations t repres5t ! int]e/s ( su* 
public companies2 or  7,c7 are          
pr(essional advis]s & s]vice provid]s to
 su* public companies 7includ+          
attorneys1 acc\ntants1 inve/m5t bank]s1 
& f9ancial advis]s74  7#b7              
,qualifications ,at lea/ #ej p]c5t ( !  
,committee memb]%ip %all be drawn f     
individuals :o w\ld qualify = memb]%ip  
"u p>agraph 7#a77;,a74  7#c7 ,t]m  7,a7 
,9 g5]al ,ea* memb] ( ! ,committee      
appo9t$ "u p>agraph 7#a7 %all s]ve = a  
t]m ( #d ye>s4  7,b7 ,vacancies         
,vacancies among ! memb]s1 :e!r caus$ by
 ! resignation1 dea?1 removal1          
expiration ( a t]m1 or o!rwise1 w be    
fill$ consi/5t ) ! ,commission's        
proc$ures !n 9 effect4  7,c7 ,/agg]$    
t]ms ,! memb]s ( ! ,committee %all s]ve 
/agg]$ t]ms1 ) "o-?ird ( ! initial      
memb]s ( ! ,committee ea* s]v+ = #a1 #b1
 or #c ye>s4  7#d7 ,memb]s n on o!r     
advisory committees ,public companies & 
o!r organizations t are curr5tly        
repres5t$ on any o!r ,commission        

,advisory ,committee are n eligible to h
 repres5tatives also s]ve on ! ,public  
,company ,advisory ,committee4  7#e7    
,memb]s n ,commission employees ,memb]s 
appo9t$ "u p>agraph 7#a7 %all n be      
consid]$ to be employees or ag5ts ( !   
,commission solely because ( memb]%ip on
 ! ,committee4  7c7 ,*air2 ,vice ,*air2 
,secret>y2 ,assi/ant ,secret>y  7#a7 ,9 
g5]al ,! memb]s ( ! ,committee %all     
elect1 f among ! memb]s ( ! ,committee--
 7,a7 a ,*air2  7,b7 a ,vice ,*air2     
7,c7 a ,secret>y2 &  7,d7 an ,assi/ant  
,secret>y4  7#b7 ,t]m ,ea* memb] elect$ 
"u p>agraph 7#a7 %all s]ve = a t]m ( two
 ye>s 9 ! capacity ! memb] 0 elect$ "u  
p>agraph 7#a74  7#c7 ,subcommittees ,!  
,*air may create subcommittees t hold   
public or non-public meet+s & provide   
recomm5dations to ! full ,committee4    
7d7 ,meet+s  7#a7 ,frequ5cy ( meet+s ,! 
,committee %all meet-- 7,a7 n less      
frequ5tly ?an twice annually1 at ! call 
( ! ,*air ( ! ,committee2 &  7,b7 f "t  
to "t1 at ! call ( ! ,commission4  7#b7 

,notice ,! ,*air ( ! ,committee %all    
give ! memb]s ( ! ,committee writt5     
notice ( ea* meet+1 n lat] ?an two weeks
 be=e ! date ( ! meet+4  7e7            
,comp5sation & travel exp5ses ,ea* memb]
 ( ! ,committee :o is n a full-"t       
employee ( ! ,unit$ ,/ates %all-- 7#a7  
be entitl$ to receive comp5sation at a  
rate n to exce$ ! daily equival5t ( !   
annual rate ( basic pay 9 effect = a    
position at level ,v ( ! ,executive     
,s*$ule "u section #ecaf ( title #e1    
,unit$ ,/ates ,code1 = ea* day dur+ :i* 
! memb]s is engag$ 9 ! actual p]=mance (
 ! duties ( ! ,committee2 &  7#b7 :ile  
away f ! home or regul> place ( bus9ess 
( ! memb] 9 ! p]=mance ( s]vices = !    
,committee1 be all[$ travel exp5ses1    
includ+ p] diem 9 lieu ( subsi/5ce1 9 ! 
same mann] z p]sons employ$ int]mitt5tly
 9 ! ,gov]nm5t s]vice are all[$ exp5ses 
"u section #egjc7;b7 ( title #e1 ,unit$ 
,/ates ,code4  7f7 ,/aff ,! ,commission 
%all make available to ! ,committee su* 
/aff z ! ,*air ( ! ,committee det]m9es  

are necess>y to c>ry out ?is section4   
7g7 ,review by ,commission ,!           
,commission %all-- 7#a7 review ! f9d+s &
 recomm5dations ( ! ,committee2 &  7#b7 
ea* "t ! ,committee submits a f9d+ or   
recomm5dation to ! ,commission1 promptly
 issue a public /atem5t-- 7,a7 assess+ !
 f9d+ or recomm5dation ( ! ,committee2 &
  7,b7 disclos+ ! action1 if any1 !     
,commission int5ds to take ) respect to 
! f9d+ or recomm5dation4  7h7 ,committee
 f9d+s ,no?+ 9 ?is section %all require 
! ,commission to agree to or act ^u any 
f9d+ or recomm5dation ( ! ,committee4   
7i7 ,nonapplicability ( ,,faca ,*apt]   
#aj ( "p ,i ( title #e1 ,unit$ ,/ates   
,code1 %all n apply to ! ,committee &   
its activities4  4  ,,iv ,protect+      
,u4,s4 ,bus9ess ,sov]eignty  #dja4 ,/udy
 on detrim5tal impact ( ! ,directive on 
,corporate ,su/a9ability ,due ,dilig5ce 
& ,corporate ,su/a9ability ,report+     
,directive  7a7 ,/udy ,! ,securities &  
,ex*ange ,commission %all conduct a /udy
 to exam9e & evaluate-- 7#a7 !          

detrim5tal impact & pot5tial detrim5tal 
impact ( ea* ( ! ,directives on-- 7,a7  
,unit$ ,/ates companies1 consum]s1 &    
inve/ors2 &  7,b7 ! economy ( ! ,unit$  
,/ates2  7#b7 ! ext5t to :i* ea* ( !    
,directives aligns ) int]national       
conv5tions & decl>ations on human rights
 & environm5tal obligations2 &  7#c7 !  
legal basis = ! extrat]ritorial rea* (  
ea* ( ! ,directives4  7b7 ,report ,n    
lat] ?an #a ye> aft] ! date ( ! enactm5t
 ( ?is ,act1 ! ,securities & ,ex*ange   
,commission %all submit to ! ,committee 
on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! 
,s5ate1 ! ,committee on ,f9ancial       
,s]vices ( ! ,h\se ( ,repres5tatives1 ! 
,secret>y ( ,/ate1 ! ,secret>y (        
,comm]ce1 & ! ,unit$ ,/ates ,trade      
,repres5tative a report t includes--    
7#a7 ! results ( ! /udy conduct$ "u ?is 
section2 &  7#b7 recomm5dations =       
policymak]s & relevant /akehold]s on    
pot5tial mitigat+ measures1 alt]native  
approa*es1 or modifications to ea* ( !  
,directives t w\ld address any conc]ns  

id5tifi$ 9 ! /udy4  7c7 ,access to      
in=mation ,! ,securities & ,ex*ange     
,commission may reque/ f private        
entities su* relevant data & in=mation z
 ! ,securities & ,ex*ange ,commission   
det]m9es necess>y to c>ry out ! /udy    
requir$ "u ?is section & su* private    
entities %all provide su* reque/$ data &
 in=mation to ! ,securities & ,ex*ange  
,commission4  7d7 ,directives def9$ ,9  
?is section ! t]m ,directives means--   
7#a7 ! propos$ directive entitl$        
,corporate ,su/a9ability ,due ,dilig5ce 
adopt$ by ! ,european ,commission on    
,febru>y #bc1 #bjbb2 &  7#b7 !          
,corporate ,su/a9ability ,report+       
,directive ( ! ,european ,commission    
effective ,janu>y #e1 #bjbc4  ,decemb]  
#bb1 #bjbc,report$ ) an am5dm5t1        
committ$ to ! ,committee ( ! ,:ole ,h\se
 on ! ,/ate ( ! ,union1 & ord]$ to be   
pr9t$