December 20, 2018 - Issue: Vol. 164, No. 201 — Daily Edition115th Congress (2017 - 2018) - 2nd Session
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RBIC ADVISERS RELIEF ACT OF 2018; Congressional Record Vol. 164, No. 201
(House of Representatives - December 20, 2018)
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[Pages H10416-H10417] From the Congressional Record Online through the Government Publishing Office [www.gpo.gov] RBIC ADVISERS RELIEF ACT OF 2018 Mr. HUIZENGA. Mr. Speaker, I move to suspend the rules and pass the bill (S. 2765) to amend the Investment Advisers Act of 1940 to exempt investment advisers who solely advise certain rural business investment companies, and for other purposes. The Clerk read the title of the bill. The text of the bill is as follows: S. 2765 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``RBIC Advisers Relief Act of 2018''. SEC. 2. ADVISERS OF RBICS. Section 203 of the Investment Advisers Act of 1940 (15 U.S.C. 80b-3(b)) is amended-- (1) in subsection (b)-- (A) in paragraph (6)(B)-- (i) by adjusting the margins accordingly; and (ii) by striking the period at the end and inserting a semicolon; (B) in paragraph (7)(C), by striking the period at the end and inserting ``; or''; and (C) by adding at the end the following: ``(8) any investment adviser, other than an entity that has elected to be regulated or is regulated as a business development company pursuant to section 54 of the Investment Company Act of 1940 (15 U.S.C. 80a-53), who solely advises-- ``(A) rural business investment companies (as defined in section 384A of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009cc)); or ``(B) companies that have submitted to the Secretary of Agriculture an application in accordance with section 384D(b) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009cc-3(b)) that-- ``(i) have received from the Secretary of Agriculture a letter of conditions, which has not been revoked; or ``(ii) are affiliated with 1 or more rural business investment companies described in subparagraph (A).''; (2) in subsection (l), by adding at the end the following: ``(3) Advisers of rbics.--For purposes of this subsection, a venture capital fund includes an entity described in subparagraph (A) or (B) of subsection (b)(8) (other than an entity that has elected to be regulated as a business development company pursuant to section 54 of the Investment Company Act of 1940 (15 U.S.C. 80a-53)).''; and (3) in subsection (m), by adding at the end the following: ``(4) Advisers of rbics.--For purposes of this subsection, the assets under management of a private fund that is an entity described in subparagraph (A) or (B) of subsection (b)(8) (other than an entity that has elected to be regulated or is regulated as a business development company pursuant to section 54 of the Investment Company Act of 1940 (15 U.S.C. 80a-53)) shall be excluded from the limit set forth in paragraph (1).''. SEC. 3. RELATIONSHIP TO STATE LAW. Section 203A(b)(1) of the Investment Advisers Act of 1940 (15 U.S.C. 80b-3a(b)(1)) is amended-- (1) in subparagraph (C), by striking the period at the end and inserting ``; or''; and (2) by adding at the end the following: ``(D) that is not registered under section 203 because that person is exempt from registration as provided in subsection (b)(8) of such section, or is a supervised person of such person.''. The SPEAKER pro tempore. Pursuant to the rule, the gentleman from Michigan (Mr. Huizenga) and the gentleman from Missouri (Mr. Clay) each will control 20 minutes. The Chair recognizes the gentleman from Michigan. General Leave Mr. HUIZENGA. Mr. Speaker, I ask unanimous consent that all Members have 5 legislative days to revise and extend their remarks and to include any extraneous material on this bill. The SPEAKER pro tempore. Is there objection to the request of the gentleman from Michigan? There was no objection. Mr. HUIZENGA. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, this critical bill has broad and extensive bipartisan support, and I urge all Members to support this legislation. A few years ago, we had gone in and done a technical fix regarding small businesses, and this Rural Business Investment Company, or the RBIC, deals with language that will allow the advisers to go in and deal with rural businesses--not just small business, but these rural businesses. We think that this is an important step to helping rural America continue the economic recovery that they have seen over the last year or two. Mr. Speaker, I reserve the balance of my time. Mr. CLAY. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I am pleased that the House is taking up S. 2765, a bill that shows once again that Democrats support investment, job creation, and the development of wealth in rural areas. The bill is simple. It extends the exemption from registration in the Dodd-Frank Act to certain advisers to small private funds known as Rural Business Investment Companies, which are regulated by the USDA and are required to provide significant financing to rural area small businesses. Mr. Speaker, I support the bill, and I yield back the balance of my time. Mr. HUIZENGA. Mr. Speaker, I just want to note that we are having our second Senate bill from Louisiana, so we are covering our colleagues from down in Louisiana. I just want to encourage my colleagues to support this important piece of legislation, and I yield back the balance of my time. The SPEAKER pro tempore. The question is on the motion offered by the gentleman from Michigan (Mr. Huizenga) that the House suspend the rules and pass the bill, S. 2765. The question was taken. The SPEAKER pro tempore. In the opinion of the Chair, two-thirds being in the affirmative, the ayes have it. [[Page H10417]] Mr. MASSIE. Mr. Speaker, on that I demand the yeas and nays. The yeas and nays were ordered. The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further proceedings on this motion will be postponed. ____________________
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