#aaith ,,congress  #ast ,session  ,h4   
,r4 #ddca  ,,an ,,act  ,to amend the    
,investment ,company ,act of #aidj with 
respect to the definition of qualifying 
venture capital funds1 and for other    
purposes4  #a4 ,short title ,this ,act  
may be cited as the ,improving ,capital 
,allocation for ,newcomers ,act of      
#bjbe4  #b4 ,qualifying venture capital 
funds ,section #c7;c77#a7 of the        
,investment ,company ,act of #aidj 7#ae 
,u4,s4,c4 #hj;a-#c7;c77#a77 is amended--
  7#a7 in the matter preceding          
subparagraph 7,a71 by striking #bej     
persons and inserting #ejj persons2 and 
7#b7 in subparagraph 7,c77i7--  7,a7 by 
striking #aj1jjj1jjj and inserting      
#ej1jjj1jjj2 and  7,b7 by striking      
beginning from a measurement made by the
 ,commission on a date selected by the  
,commission and inserting beginning from
 a measurement made on the date of the  
enactment of the ,improving ,capital    
,allocation for ,newcomers ,act of      
#bjbe4  #c4 ,study and rulemaking  7a7  

,study required  7#a7 ,in general       
,beginning #e years after the date of   
enactment of this ,act1 the ,advocate   
for ,small ,business ,capital           
,formation1 in consultation with the    
,investor ,advocate1 shall conduct a    
study on the effect of the amendments   
made by section #b on the businesses and
 startup entities in which qualifying   
venture capital funds invest1           
specifically including1 with respect to 
such businesses and startup entities1   
changes or trends relating to-- 7,a7 the
 geographic distribution of capital to  
portfolio companies2  7,b7 the          
socio-economic characteristics of       
founders or controlling persons2  7,c7  
the veteran status of founders or       
controlling persons2  7,d7 the industry 
sector1 size1 stage of development1 and 
related details2 and  7,e7 other factors
 or metrics determined by the ,advocate 
for ,small ,business ,capital           
,formation4  7#b7 ,authorities related  
to required study ,for purposes of      

conducting the study required by        
paragraph 7#a71 the ,advocate for ,small
 ,business ,capital ,formation and the  
,investor ,advocate shall have authority
 to-- 7,a7 obtain from the ,securities  
and ,exchange ,commission 7in this      
section referred to as the ,commission7 
and utilize any data or information     
necessary to carry out the study2  7,b7 
request and receive assistance from any 
division or office of the ,commission1  
including the ,division of ,economic and
 ,risk ,analysis2 and  7,c7 enter into  
agreements with third parties to assist 
in data analysis4  7b7 ,report ,the     
,advocate for ,small ,business ,capital 
,formation shall issue a report to the  
,congress containing all findings and   
determinations made in carrying out the 
study required by subsection 7a77#a71   
and make such report available to the   
public on the website of the            
,commission4  7c7 ,public comment       
,during the #ahj-;day period beginning  
on the date the report is issued under  

subsection 7b71 the ,commission shall   
solicit feedback from the public on the 
findings and determinations contained in
 the report4  7d7 ,rulemaking  7#a7 ,in 
general ,the ,commission1 in            
consultation with the ,investor         
,advocate and the ,advocate for ,small  
,business ,capital ,formation1 may1     
after considering all comments received 
under subsection 7c7 and only if the    
,commission determines in such report   
that the amendments made by section #b  
have had a demonstrable effect on       
increasing the geographic distribution  
of capital to portfolio companies1      
increasing the variety of the           
socio-economic characteristics of       
founders or controlling persons1 or     
increasing the number of founders or    
controlling persons who are veterans1   
issue rules to-- 7,a7 increase or       
decrease the #ejj person threshold      
described in the matter preceding       
subparagraph 7,a7 of section #c7;c77#a7 
of the ,investment ,company ,act of     

#aidj1 but such threshold may not exceed
 #gej persons or be reduced below #bej  
persons2 and  7,b7 increase or decrease 
the #ej1jjj1jjj dollar figure in section
 #c7;c77#a77;,c77i7 of the ,investment  
,company ,act of #aidj1 but such dollar 
figure may not exceed #ajj1jjj1jjj or be
 reduced below #aj1jjj1jjj4  7#b7       
,deadline for rulemaking ,the rulemaking
 authority in paragraph 7#a7 only       
applies to a rule with respect to which 
the proposed rule was issued during the 
#ahj-;day period beginning at the end of
 the public comment period described in 
subsection 7c74  7#c7 ,no effect on     
inflation adjustments ,a rule issued    
under this subsection shall have no     
effect on the requirement under clause  
7i7 of section #c7;c77#a77;,c7 of the   
,investment ,company ,act of #aidj 7#ae 
,u4,s4,c4 #hj;a-#c7;c77#a77;,c771 as    
amended by section #b1 to index the     
first dollar amount in such clause for  
inflation4  ,passed the ,house of       
,representatives ,december #a1          

#bjbe4;,clerk4