,,ib ,union ,calendar ,no4 #bje #aaith  
,,congress  #ast ,session  ,h4 ,r4 #ddca
 ,report ,no4 #aai-bdh ,,in ,,the       
,,house ,,of ,,representatives  ,july   
#af1 #bjbe,mr4 ,timmons introduced the  
following bill2 which was referred to   
the ,committee on ,financial ,services  
,september #h1 #bjbe;,additional        
sponsor3 ,ms4 ,pettersen  ,september #h1
 #bjbe,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 ,july #af1 #bjbe  
,a ,,bill  ,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,c77i71 by striking #aj1jjj1jjj and    
inserting #ej1jjj1jjj4  #c4 ,study and  
rulemaking  7a7 ,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  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 in subsection 7a71 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;,c77 to     
index the first dollar amount in such   
clause for inflation4  ,september #h1   
#bjbe,reported with an amendment1       
committed to the ,committee of the      
,whole ,house on the ,state of the      
,union1 and ordered to be printed