H.R.1219 – Supporting America’s Innovators Act of 2017

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Week ending April 5, 2017

H.R.1219 – Supporting America’s Innovators Act of 2017


H.R. 1219 increases the limit on the number of individuals who can invest in certain venture capital funds before those funds must register as “investment companies” with the Securities and Exchange Commission.

‘Currently, the Investment Company Act limits the number of investors in a fund to 100 for the fund to be exempt from SEC registration.’

‘H.R. 1219 amends this cap to allow 250 investors in a “qualified venture capital fund” to be exempt from SEC registration. H.R. 1219 generally defines a “qualifying venture capital fund” to be any venture capital fund that does not purchase more than $10,000,000 in invested capital of any one issuer, adjusted for inflation.’

 (Full text of H.R. 1219 at congress.gov)

Sponsor:  Rep. McHenry, Patrick T. [R-NC-10] (Introduced 02/27/2017)

Status: Passed House /



On Passage: On passage Passed by the Yeas and Nays: 417 – 3 (Roll no. 221)

House Amendments:

Motion to recommit:

Text of the motion:


On Passage:

Procedural Actions:

Senate Amendments:


Cost to the taxpayers:  Based on an analysis of information from the SEC about the current scope of the exemption, CBO estimates that implementing H.R. 1219 would have no significant effect on the agency’s costs or operations because only a relatively small number of companies would qualify for the broader exemption. Moreover, the SEC is authorized to collect fees sufficient to offset its annual appropriation; therefore, CBO estimates that the net effect on discretionary spending would be negligible, assuming appropriation actions consistent with that authority.

Pay-as-you-go requirements:      Enacting H.R. 1219 would not affect direct spending or revenues; therefore, pay-as-you-go procedures do not apply.

Regulatory and Other Impact:    H.R. 1219 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would not affect the budgets of state, local, or tribal governments

Dynamic Scoring:   CBO estimates that enacting H.R. 1219 would not increase net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2028.

Tax Complexity:  Not applicable to this bill.

Earmark Certification:  H.R. 1219 does not contain any congressional earmarks, limited tax benefits, or limited tariff benefits as defined in clause 9 of rule XXI.

Duplication of programs: Pursuant to section 3(c)(5) of rule XIII, the Committee states that no provision of H.R. 1219 establishes or reauthorizes a program of the Federal Government known to be duplicative of another Federal program

Direct Rule-Making:      Pursuant to section 3(i) of H. Res. 5, 115th Cong. (2017), the Committee states that H.R. 1219 contains no directed rulemaking.

Advisory Committee Statement:    No advisory committees within the meaning of section 5(b) of the Federal Advisory Committee Act were created by this legislation.

Budget Authority: Data not available

Constitutional Authority:   Assumed.


More Bill Information:


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