Congresswoman Maxine Waters (D-CA), the top Democrat on the House Financial Services Committee, announced passage of the following bills under suspension of the rules.

H.R. 2593, the Senior Security Act is a bill offered by Representative Josh Gottheimer (D-NJ) that would establish the Senior Investor Taskforce within the SEC. The taskforce must report on topics relating to investors over the age of 65 and make recommendations for actions to address problems encountered by senior investors.  

Passed the House by a voice vote.

H.R. 2812, the Middle Market IPO Underwriting Study Act is a bill offered by Representative Jim Himes (D-CT) that would require the GAO, in consultation with the SEC, to study the costs encountered by small- and medium-sized companies when undertaking initial public offerings and certain offerings exempt from securities registration requirements. The study under the bill would improve understanding of the costs companies going public face, including costs associated with underwriting the IPO. The study may also improve competition among underwriting firms that would help small and middle-market companies that need the services of underwriters.

Passed the House by a vote of 390-10.

H.R. 2793, the Encouraging Public Offerings Act of 2023 is a bill offered by Representative Ann Wagner (R-MO) that would allow any issuer to (1) file a confidential draft registration statement and (2) “test the waters” (i.e., communicate with potential investors before a registration statement is filed). The bill codifies existing SEC policies, which would improve the ability for companies to gauge investor interest in their IPO and facilitate their communications with the SEC. 

Passed the House by a vote of 384-13.

H.R. 835, The Fair Investment Opportunities for Professional Experts Act is a bill offered by Representative French Hill (R-AR) that would expand the definition of “accredited investor” to include individuals with certain licenses and qualifying education or job experience, such as MBA grads or those with FINRA certifications (like those who have passed the Series 7 general securities representative exam, for example). 

Passed the House by a voice vote.

H.R.1579, The Accredited Investor Definition Review Act is a bill offered by Representative Bill Huizenga (R-MI) that would clarify that the SEC has discretion to expand the accredited investor definition as the “Commission determines necessary or appropriate in the public interest or for the protection of investors.” It further requires the SEC to review the list of certifications and credentials for individuals to qualify as an accredited investor and add additional certifications and credentials to such list which the SEC determines are substantially similar to the existing ones within 18 months of enactment and every five years thereafter. 

Passed the House by a voice vote.

H.R. 2608 is a bill to amend the Federal securities laws to specify the periods for which financial statements are required to be provided by an emerging growth company, and for other purposes. This bill is offered by Representative Patrick McHenry (R-NC) and would establish that an Emerging Growth Company (EGC) only needs to provide two years of audited financial statements when conducting an acquisition or follow-on offering.  

Passed the House by a voice vote.

H.R. 2610 is a bill to amend the Securities Exchange Act of 1934 to specify certain registration statement contents for emerging growth companies, to permit issuers to file draft registration statements with the Securities and Exchange Commission for confidential review, and for other purposes. This bill is offered by Representative Patrick McHenry (R-NC) and would update the emerging growth company (EGC) financial statement requirements to clarify that an EGC may present two years, rather than three years, of audited financial statements in both IPOs and spin-off transactions. The bill allows a spin-off of an EGC to benefit from the two-year financial statement accommodation, which is currently only available during an IPO. When a company creates a new independent company by selling or distributing new shares of its existing business, this is called a spinoff; companies often create spinoffs expecting that it will be worth more as an independent entity. The bill also would allow any issuer (i.e., a public company) to ask the SEC to review their registration statements confidentially. 

Passed the House by a voice vote.