§78qq Small Business Capital Formation Advisory Committee

Summary

Creates a Small Business Capital Formation Advisory Committee inside the Commission to give advice on the Commission’s rules, regulations, and policies about protecting investors, keeping markets fair and orderly, and helping small companies raise money. The Committee focuses on capital raising by emerging privately held small businesses and public companies with less than $250,000,000 in public market capitalization, trading in their securities, and their public reporting and governance. The Committee must not give advice about the Commission’s enforcement actions. The Committee includes the Advocate for Small Business Capital Formation, 10–20 members the Commission appoints who represent emerging companies, smaller public companies, their advisors, investors, minority- and women-owned small businesses, and market participants, plus three non‑voting members appointed by the Investor Advocate, the North American Securities Administrators Association, and the Administrator of the Small Business Administration. Appointed members serve 4‑year terms. The members pick a chair, vice chair, secretary, and assistant secretary for 3‑year terms. The Committee must meet at least four times a year and also when the Commission asks. The chair must give written notice at least 2 weeks before a meeting. Non‑federal members may be paid up to the daily equivalent of the annual rate for level V of the Executive Schedule under section 5316 of title 5 and get travel pay under section 5703 of title 5. The Commission must give staff the chair needs, review the Committee’s findings, and promptly publish its response. The Federal Advisory Committee Act does not apply.