119-hr3382

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3382 Referred in Senate

    (RFS) ]

<DOC>
119th CONGRESS
 1st Session
 H. R. 3382

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 July 22, 2025

Received; read twice and referred to the Committee on Banking, Housing, 
 and Urban Affairs

_______________________________________________________________________

 AN ACT

To require the Securities and Exchange Commission to carry out a study 
and rulemaking on the definition of the term ``small entity'' under the 
 securities laws for purposes of chapter 6 of title 5, United States 
 Code, and for other purposes.

 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 ``Small Entity Update Act''.

SEC. 2. STUDIES, REPORTS, AND RULES REGARDING SMALL ENTITIES.

    (a) 

=== Definitions. ===
-In this section--

    (1) the term ``Commission'' means the Securities and 
 Exchange Commission; and

    (2) the term ``small entity''--
        (A) has the meaning given the term in 

section 601 
 of title 5, United States Code, with respect to the 
 activities of the Commission; and
        (B) includes any definition established by the 
 Commission of the term ``small business'', ``small 
 organization'', ``small governmental jurisdiction'', or 
 ``small entity'' under paragraph

    (3) ,

    (4) ,

    (5) , or

    (6) , 
 respectively, of 

section 601 of title 5, United States 
 Code, with respect to the activities of the Commission.

    (b) Studies and Reports.--Not later than 1 year after the date of 
enactment of this Act, and again 5 years thereafter, the Commission 
shall--

    (1) conduct a study of the definition of the term ``small 
 entity'' with respect to the activities of the Commission for 
 the purposes of chapter 6 of title 5, United States Code, which 
 shall consider--
        (A) the extent to which the definition of the term 
 ``small entity'', as in effect during the period in 
 which the study is conducted, aligns with the findings 
 and declarations made under 

section 2

    (a) of the 
 Regulatory Flexibility Act (5 U.S.C. 601 note);
        (B) the amount by which financial markets in the 
 United States have grown since the last time the 
 Commission amended the definition of the term ``small 
 entity'', if applicable; and
            (C) how the Commission should define the term 
 ``small entity'' to ensure that a meaningful number of 
 entities would fall under that definition; and

    (2) submit to Congress a report that includes--
        (A) the results of the applicable study conducted 
 under paragraph

    (1) ; and
        (B) specific and detailed recommendations on the 
 ways in which the Commission could amend the definition 
 of the term ``small entity'' to--
            (i) be consistent with the results 
 described in subparagraph
        (A) ; and
            (ii) expand the number of entities covered 
 by such definition.
            (c) Rulemaking.--Concurrently with, or after the completion of, 
each study required under subsection

    (b) , the Commission shall, subject 
to public notice and comment, revise the rules of the Commission 
consistent with the results of such study.
            (d) Inflation Adjustments.--After the Commission issued the final 
rule revisions required under subsection
            (c) , and every 5 years 
thereafter, the Commission shall adjust any dollar figures under the 
definition of small entity established by the Commission to reflect the 
change in the Consumer Price Index for All Urban Consumers published by 
the Bureau of Labor Statistics of the Department of Labor.

 Passed the House of Representatives July 21, 2025.

 Attest:

 KEVIN F. MCCUMBER,

 Clerk.