Small Business Investment Incentive Act of 1980
Latest action. Referred to House Committee on Interstate and Foreign Commerce.
Small Business Investment Incentive Act of 1980 - Title I: Amendments to the Securities Act of 1933 - Amends the Securities Act of 1933 to include within the private offering exemption from full registration any transaction involving securities bearing a legend stating that such securities may not be sold or transferred except to accredited investors provided all purchasers of such securities are accredited investors or persons the issuer reasonably believes to be accredited investors and there is no general advertising or solicitation in connection with the transaction. Defines the term "accredited investor" to include banks, insurance companies, registered investment companies, licensed small business investment companies, venture capital companies, any fund, trust, or account administered by a bank or insurance company, and any purchaser of $100,000 or more of the issuer's securities. Exempts from registration, as a transaction not involving an underwriter, any resale of: (1) securities bearing such a restrictive legend sold to accredited investors or persons reasonably believed to be accredited investors; and (2) securities acquired in a private offering by a venture capital company which is an affiliate of the issuer and which has been the beneficial owner of such securities for at least five years. Empowers the Securities and Exchange Commission to limit the availability of such exemption for venture capital companies. Title II: Amendments to the Investment Company Act of 1940 and the Investment Advisers Act of 1940 - Amends the Investment Company Act of 1940 to define a "venture capital company" to include companies which: (1) primarily engage in activities such as providing capital to industry, financing promotional enterprises, purchasing securities for which no ready market exists, or reorganizing companies; and (2) have at least 80 percent of their assets (excluding Government securities, short-term paper, and cash) in securities obtained in connection with a private offering, resale of restricted securities, or corporate reorganization. Exempts from regulation as an investment company, any venture capital company which has operated as such for at least three years and which: (1) is a reporting company under the Securities Exchange Act of 1934; (2) has outstanding securities beneficially owned by more than 100 persons, but only for a period of 180 days; or (3) presently proposes to make a public offering of its securities for 180 days after filing its registration statement and 60 days following its effective date or withdrawal, whichever last occurs. Requires such venture capital companies to have disinterested directors or voting partnership advisers in order to qualify for the exemption provided by this title. Requires such companies to dispose of their securities only in the manner permitted under the Securities Act of 1933 for securities acquired in a private offering. Places restrictions on dealings between the insiders of a venture capital company and the businesses in which it invests. Permits a venture capital company to register as an investment company, though it would be entitled to an exemption under this Act, provided it is not a personal holding company as defined in the Internal Revenue Code of 1954. Amends the Investment Advisers Act of 1940 to exclude shareholders, partners, and owners of venture capital companies from the clients of an investment adviser in determining the adviser's entitlement to an exemption from registration for having fewer than 15 clients. Establishes a private right of action for damages or injunctive relief for persons injured by a willfull violation of the Investment Advisers Act of 1940 or the regulations promulgated thereunder. Title III: Effective Date and Miscellaneous Provisions - States that this Act shall take effect upon its enactment. Directs the Securities and Exchange Commission to promulgate regulations to implement this Act within 180 days of its enactment.
Written by analysts at the Congressional Research Service and published on Congress.gov, not by Civibrief. Summarized at the "Introduced in House" stage on March 6, 1980. It describes the bill, it is not the legal text.
Where is it in the process, and what happens next?
4 steps remain before this bill could become law.
The record's latest action, on March 6, 1980: Referred to House Committee on Interstate and Foreign Commerce.
- Clearing the committees it was referred to, and being scheduled for a floor vote
- Passage by the House
- Passage by the Senate
- The President's signature. If the President vetoes it, two-thirds of both chambers must vote to override.
How likely is it to become law?
Civibrief does not forecast outcomes and this page has no opinion about this one. What the record supports is a base rate, which is a fact about the whole pile, not a prediction about this measure.
In the 96th Congress (1979-80), 613 of the 12,581 bills and joint resolutions introduced became law, about 4.9 percent. That count covers every measure at every stage, including the many that never left committee.
This one is not there yet: 4 steps are still outstanding, listed above.
Has anyone actually voted on it?
No. No roll call in this Congress cites this measure. That is the ordinary outcome: most measures never reach a recorded floor vote, and a committee ends most of them simply by not acting.
A vote is not the only thing that happens to a measure. Hearings, markups, and referrals are all recorded actions, and none of them is a vote of the full chamber.
Who is behind it?
JAMES BROYHILL (R-NC) introduced it on March 6, 1980, and 3 members have since signed on as cosponsors.
They come from both major parties: 2 Democrats, 1 Republican.
Cosponsoring is a formal signature on the text. It is not a commitment to vote for the measure, it does not bind anyone's party, and a long list of cosponsors is a measure of attention rather than of prospects.
How long has it been in play?
It was introduced on March 6, 1980, 16989 days ago. The most recent recorded action was 16989 days ago, on March 6, 1980.
Measures do not carry over. Anything the 96th Congress has not finished by January 3, 1981 dies when the term ends, and has to be introduced again from the start in the next Congress.
Every answer above is assembled from this measure's own record on Congress.gov and from published counts of what Congress has passed before. Civibrief does not predict outcomes and takes no position on any measure.
Vote history
- HouseIn committee, no floor vote yet
- SenateAwaits House passage
- PresidentAwaits both chambers