Developing and Empowering our Aspiring Leaders Act of 2020

I 116TH CONGRESS 2D SESSION H. R. 8603 To require the Securities and Exchange Commission to revise the definition of a qualifying investment to include an equity security issued by a qualifying portfolio company, whether acquired directly from the company or in a secondary acquisition, for purposes of the exemption from reg- istration for venture capital fund advisers under the Investment Advisers Act of 1940, and for other purposes. IN THE HOUSE OF REPRESENTATIVES OCTOBER 16, 2020 Mr. HOLLINGSWORTH (for himself and Mr. MCADAMS) introduced the following bill; which was referred to the Committee on Financial Services A BILL To require the Securities and Exchange Commission to revise the definition of a qualifying investment to include an equity security issued by a qualifying portfolio company, whether acquired directly from the company or in a secondary acquisition, for purposes of the exemption from registration for venture capital fund advisers under the Investment Advisers Act of 1940, and for other pur- poses. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 01:49 Nov 01, 2020 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H8603.IH H8603 pbinns on DSKJLVW7X2PROD with BILLS 2 •HR 8603 IH SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Developing and Em- 2 powering our Aspiring Leaders Act of 2020’’. 3 SEC. 2. DEFINITIONS. 4 Not later than the end of the 180-day period begin- 5 ning on the date of the enactment of this Act, the Securi- 6 ties and Exchange Commission shall— 7 (1) revise the definition of a qualifying invest- 8 ment under paragraph (c) of section 275.203(l)–1 of 9 title 17, Code of Federal Regulations, to include an 10 equity security issued by a qualifying portfolio com- 11 pany, whether acquired directly from the company or 12 in a secondary acquisition; and 13 (2) revise paragraph (a) of such section to re- 14 quire, as a condition of a private fund qualifying as 15 a venture capital fund under such paragraph, that 16 the qualifying investments of the private fund are 17 predominantly qualifying investments that were ac- 18 quired directly from a qualifying portfolio company. 19 Æ VerDate Sep 11 2014 01:49 Nov 01, 2020 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\H8603.IH H8603 pbinns on DSKJLVW7X2PROD with BILLS