Ann Wagner

Mrs. WAGNER

Mrs. WAGNER. Mr. Speaker, I reserve the balance of my time.

Mrs. WAGNER. Mr. Speaker, I reserve the balance of my time.

Mrs. WAGNER. Mr. Speaker, I strongly urge my colleagues to support H.R. 2812, and I yield back the balance of my time.

Mrs. WAGNER. Mr. Speaker, on that I demand the yeas and nays.

Mrs. WAGNER

Mrs. WAGNER. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise in support of H.R. 2797, the Equal Opportunity for All Investors Act. I thank my colleagues, Congressman Flood and Congressman Nickel, for their work on this important piece of bipartisan legislation that will safely increase investment opportunities for everyday investors. The ``accredited investor'' definition is intended to limit private market investments to only those investors who are considered ``sophisticated.'' To qualify as an accredited investor, an individual must have an annual income of at least $200,000 or $300,000 together with a spouse for each of the previous 2 years or a net worth of over $1 million. However, using wealth as a proxy for determining sophistication excludes a large pool of investors who may have other types of expertise or experience. According to estimates from the Securities and Exchange Commission, the SEC, in 2016, about 13 percent of U.S. households qualified as accredited investors. Additionally, only about 1.3 percent and 2.8 percent of accredited investors are Black and Latino, respectively. H.R. 2797 represents a thoughtful approach to expanding the accredited investor definition to include individuals who are certified through an examination established by the SEC and administered by FINRA. Under this bill, if you can demonstrate competency with these types of investments through an exam, then you qualify as an accredited investor. Mr. Speaker, by expanding the pathways to qualify as an accredited investor beyond wealth tests, this bill modernizes the outdated definition that has inappropriately sidelined sophisticated-but-not- wealthy individuals from high-growth asset classes historically reserved for the wealthiest individuals. By doing so, this legislation will help more American families realize the American Dream by building wealth through our capital markets. For these reasons, I urge my colleagues to support H.R. 2797, and I reserve the balance of my time.

Mrs. WAGNER. Mr. Speaker, I yield to the gentleman from Nebraska (Mr. Flood), the author of this piece of legislation.

Mrs. WAGNER. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on this bill.

Mrs. WAGNER

Mrs. WAGNER. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 2792) to require the Securities and Exchange Commission to carry out a study and rulemaking on the definition of the term ``small entity'' for purposes of the securities laws, and for other purposes, as amended.

Mrs. WAGNER. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on this bill.

Mrs. WAGNER. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise today in support of my bill, H.R. 2792, the Small Entity Update Act. Mr. Speaker, the slated bills that we are considering today are the culmination of four hearings that the Capital Markets Subcommittee, which I have the honor and privilege of chairing, has held this year, where we heard from over a dozen witnesses, including founders of private and public companies, investors, former SEC Commissioners, security law practitioners, and even one of the authors of the IPO- related provisions of the JOBS Act. All of these bills play a vital role in expanding investment opportunities for all Americans, improving access to capital for small businesses, and strengthening our public markets. Mr. Speaker, 11 years ago, the Jumpstart Our Business Startups Act, or JOBS Act of 2012, was enacted into law by a divided Congress with the intention of increasing access to capital for small businesses and entrepreneurs in the United States. The purpose of the JOBS Act was to provide greater opportunities for small business owners and entrepreneurs to grow their companies and create jobs in their communities. Despite the successes of the JOBS Act, there are still significant regulatory barriers that impede the growth of small businesses and hinder the competitiveness of job growth in the United States. Small businesses, Mr. Speaker, make up 99 percent of all enterprises, employ almost half of the United States' workforce, and are disproportionately affected by these barriers. These companies represent the engine of our economy and are far too often subject to one-size-fits-all regulation. The lack of access to capital makes it challenging for small business owners to grow and expand their companies, which can limit job creation and economic growth. That is why I introduced the Small Entity Update Act. This bipartisan bill would direct the SEC to conduct a study, followed by a rulemaking that is consistent with the results of such study every 5 years. This study would focus on defining the term ``small entity'' under the Regulatory Flexibility Act. Regulations often impose disproportionate burdens on startups, small businesses, and other small entities. Small entities simply can't afford the number of lawyers and regulatory experts that large multinational firms can to comply with every regulation while still being able to afford the cost of doing business. The government cannot and should not treat a small startup in my hometown of Ballwin, Missouri, with seven employees as it would a Fortune 500 company. The reality is that the size of companies and the underlying makeup of market forces behind them change over time, which is why my bill requires the SEC to reevaluate their small business definition every 5 years. What makes sense for companies today in terms of regulatory compliance may not in 5 years. My bill addresses longstanding concerns that numerous SEC rules do not appropriately balance the SEC's mandates to protect investors and facilitate capital formation. Studying and revising these definitions will result in a better understanding of regulatory costs on small entities and ensure that the SEC modernizes its criteria for defining them. In order for our economy to thrive, Mr. Speaker, Congress and regulators must ensure that any policies enacted keep in mind any impacts they would have on our millions of small businesses. H.R. 2792 will lead to a more targeted regulatory framework for these entities and help make the American Dream a reality for all entrepreneurs. Mr. Speaker, I thank Mr. Himes, Mr. Torres, Mr. Scott, and Mr. Casten for their bipartisan support of this impactful legislation, and I urge all my colleagues to vote for this bill. Mr. Speaker, I reserve the balance of my time.

Mrs. WAGNER. Mr. Speaker, I have no further requests for time. Mr. Speaker, I urge my colleagues to support H.R. 2792, and I yield back the balance of my time.

Mrs. WAGNER. Mr. Speaker, on that I demand the yeas and nays.

Mrs. WAGNER

Mrs. WAGNER. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 2795) to amend the Securities Exchange Act of 1934 to require issuers with a multi-class stock structure to make certain disclosures in any proxy or consent solicitation material, and for other purposes, as amended.

Mrs. WAGNER. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on this bill.

Mrs. WAGNER. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise in support of H.R. 2795, the Enhancing Multi- Class Share Disclosures Act. Mr. Speaker, I thank my colleague from the other side of the aisle, Congressman Meeks, for his work on this thoughtful piece of bipartisan legislation that improves the information shareholders receive about voting powers in the companies in which they invest. Since the late 1800s, U.S. companies have utilized multi-class share structures. The original intent behind these structures was to allow companies, particularly family-run enterprises, to maintain voting control without having to own the majority of equity in their company. There have been several efforts to limit the availability of multi- class share structures in the past. For example, starting in 1926 and ending in 1985, some national securities exchanges restricted the number of multi-class shares that were allowed to list on those exchanges. In response to the increasing competitiveness of national securities exchanges in the 1980s, the exchanges eased those restrictions on multi-class share structures. While the SEC Investor Advisory Committee has called for more mandatory disclosures from companies with multi- class shares, the SEC does not currently require companies to disclose the gap between the equity an individual holds in the company and the number of voting shares they control, although many companies already disclose those for their shareholders voluntarily. By requiring disclosures regarding voting power, particularly regarding officers and directors and those who have more than 5 percent voting power, H.R. 2795 will ensure that shareholders receive more uniform information in proxy materials. Mr. Speaker, rather than prohibiting multi-class share structures altogether, H.R. 2795 represents a thoughtful and balanced approach to enhance transparency without eliminating class structures that encourage founders that may not otherwise go public to do so. Mr. Speaker, for these reasons, I support H.R. 2795, and I urge my colleagues to support this bill. Mr. Speaker, I reserve the balance of my time.

Mrs. WAGNER. Mr. Speaker, I reserve the balance of my time.

Mrs. WAGNER. Mr. Speaker, are there further requests for time on the other side or does the gentlewoman from California yield back? Mr. Speaker, I reserve the balance of my time.

Mrs. WAGNER. Mr. Speaker, I simply urge my colleagues to support H.R. 2795, and I yield back the balance of my time.

Mrs. WAGNER. Mr. Speaker, on that I demand the yeas and nays.

Mrs. WAGNER

Mrs. WAGNER. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 2796) to amend the Securities Exchange Act of 1934 to require the Advocate for Small Business Capital Formation to provide educational resources and host events to promote capital raising options for traditionally under-represented small businesses, and for other purposes, as amended.

Mrs. WAGNER. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on the bill.

Mrs. WAGNER. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise in support of H.R. 2796, the Promoting Opportunities for Non-Traditional Capital Formation Act. I thank my colleague and ranking member of the Financial Services Committee, Ms. Waters, for her work on this commonsense, bipartisan legislation to improve access to capital for underserved entrepreneurs and businesses from overlooked parts of the country. When trying to raise capital to start or grow their businesses, entrepreneurs and founders need as little friction as possible. Unfortunately, access to capital and funding is more challenging for some than others. Likewise, funding is harder to obtain outside of a few select regions. For example, most venture capital funding goes to companies in just three States: California, Massachusetts, and New York. Likewise, less than 3 percent of venture dollars went to women, Black, and Latino founders. As a result, Congress should take steps to help companies and entrepreneurs from all geographic regions have access to resources that they need to grow. This bill would require the SEC's Office of the Advocate for Small Business Capital Formation, or the Advocate, to provide educational resources and host events to promote capital-raising options for underrepresented small businesses and businesses in rural areas. Last month, the Financial Services Committee passed numerous bipartisan bills out of our committee to facilitate capital formation and increase access to capital for entrepreneurs and small businesses. H.R. 2796 is a commonsense piece of our committee's efforts and complements the other bills that we passed. Mr. Speaker, by requiring the Advocate to provide educational resources and host events to promote capital-raising options for underserved entrepreneurs, this bill will assist entrepreneurs throughout the entire country in utilizing the capital-raising provisions within our securities laws best suited for their needs and circumstances. For these reasons, I urge my colleagues to support H.R. 2796. Mr. Speaker, I reserve the balance of my time.

Mrs. WAGNER. Mr. Speaker, are there further requests for time on the other side, or does the gentlewoman from California, is she prepared to close and yield back? I reserve the balance of my time.

Mrs. WAGNER. Mr. Speaker, I simply urge my colleagues to support H.R. 2796, and I yield back the balance of my time.

Mrs. WAGNER. Mr. Speaker, on that I demand the yeas and nays.