§78qq Small Business Capital Formation Advisory Committee

Summary

Creates a Small Business Capital Formation Advisory Committee inside the Commission. The committee must give the Commission advice on rules and policies that protect investors, keep markets fair and orderly, and help small companies raise money. The advice covers fundraising by emerging private companies and public companies with under $250,000,000 in market value, trading in their securities, and their public reporting and corporate governance. The committee must not give advice about the Commission’s enforcement work. The committee includes the Advocate for Small Business Capital Formation and 10 to 20 members the Commission appoints. Those members must represent groups like emerging companies, their advisors and investors, minority- or women-owned small business leaders, smaller public companies and their advisors and investors, and market participants. There are three non-voting members picked 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 committee elects a chair, vice chair, secretary, and assistant secretary for 3-year terms. It must meet at least four times a year and give written notice at least 2 weeks before meetings. Non-federal members can be paid up to the daily equivalent of Executive Schedule level V (under section 5316 of title 5) and get travel pay under section 5703 of title 5. The Commission provides staff. The Commission must review the committee’s recommendations and promptly publish its assessment and any actions it will take. The Federal Advisory Committee Act does not apply.