THE DAILY WHIP: WEDNESDAY, MARCH 7, 2012

For Immediate Release:

March 7, 2012

Contact:

Katie GrantDaniel Reilly, 202-225-3130

House Meets At: First Vote Predicted: Last Vote Predicted:

10:00 a.m.: Morning Hour
12:00 p.m.: Legislative Business

Fifteen “One Minutes” per side

1:30 - 2:30 p.m. 6:00 - 7:00 p.m.

H.Res. 572Rule providing for consideration of H.R. 3606 - Jumpstart Our Business Startups (Rep. Fincher - Financial Services) (One Hour of debate) The Rules Committee has recommended a structured Rule that provides for one hour of general debate equally divided between the Chair and Ranking Member of the Committee on Financial Services. The Rule allows seventeen amendments, each debatable for 10 minutes equally divided between the offeror and an opponent. It also provides one motion to recommit, with or without instructions. Lastly, it waives all points of order against the legislation.

The Rules committee once again rejected a motion by Mr. McGovern to consider the bill under an open Rule. 

Begin Consideration of H.R. 3606 - Jumpstart Our Business Startups (Rep. Fincher - Financial Services) (One Hour of debate) The measure consists of six bills, four of which have already passed the House, that are all aimed at boosting capital formation for small businesses by adjusting Securities and Exchange Commission (SEC) rules on when and how smaller businesses raise money from investors. This bill would reduce certain SEC registration and reporting requirements, clarify conditions under which issuers of securities may advertise to potential investors, and define the conditions under which businesses may use "crowdfunding" to raise capital from investors.

The Rule makes in order 17 amendments, each debatable for 10 minutes, equally divided between the offeror and an opponent. The amendments are:

Rep. Fincher/Rep. Carney Manager’s Amendment. Would make technical changes to the underlying bill
Rep. McIntyre Amendment.
Would adjust the Emerging Growth Company definition for inflation, resulting in providing more flexibility for businesses.
Rep. Himes/Rep. Capuano Amendment.
Would lower the gross annual revenue cap from $1,000,000,000 to $750,000,000 for emerging growth companies to remain eligible for the regulatory on-ramp and strike the public float requirement for the on-ramp
Rep. Jackson-Lee Amendment #4.
Would add a requirement that a company not be  considered an "emerging growth company" if it has issued more than $1 billion in non-convertible debt over the prior three years
Rep. Ellison/Rep. Capuano/Rep. Lynch Amendment.
Would require Emerging Growth Companies to fully comply with say-on-pay and golden parachute shareholder votes
Rep. Waters/Rep. Capuano Amendment.
Would provide that if a broker or dealer is underwriting an initial public offering (IPO) for an emerging growth company (EGC) and providing research to the public about such IPO, those research reports need to be filed with the SEC, and the broker or dealer shall be held to stricter liability for their comments. Would also provide that if EGCs are communicating, either orally or in writing, with potential investors before or following an offering, they need to file those communications with the SEC
Rep. Jackson-Lee Amendment #7.
Would strike language that allows an emerging growth company or its underwriter to communicate with "institutions that are accredited investors"
Rep. Jackson-Lee Amendment #8.
Would establish new filing fee for for initial public offering registrations to discourage frivolous filings
Rep. Connolly Amendment.
Would require the SEC to perform a study, in consultation with the Commodities Futures Trading Commission, of the effects on emerging growth companies of financial speculation on domestic oil and gasoline prices and to forward the results of that study to Congress
Rep.
McCarthy (CA) Amendment.  Would clarify that general advertising under this provision should only apply to Regulation D rule 506 offerings, allow for general solicitation in the secondary sale of these securities so long as only qualified institutional buyers purchase the securities, and provide consistency in interpretation that general advertising should not cause these offerings to be considered public offerings
Rep. McHenry Amendment.
  Would, for Rule 506 of Regulation D, provide an exemption from registration as a broker or dealer for trading platforms that do not charge a fee in connection with the purchase or sale of the security or permit general solicitations, general advertisements, or similar or related activities by issuers of such securities. Would also enable the marketing of private shares to accredited investors through platforms
Rep. Miller (NC)/Rep. Schweikert Amendment.
  Would increase the total number of investors and limit the number of non-accredited investors allowed to be holders
of record before registration is required
Rep. Schweikert Amendment.
Would authorize the SEC to study whether or not it has the authority to enforce anti-evasion provisions associated with the shareholder threshold
Rep. Capuano Amendment.
Would require the SEC to conduct a study to address anti- evasion concerns and determine if the term "held of record" should mean beneficial owner of the security
Rep. Peters Amendment.
Would require publicly traded companies to disclose on an annual basis the total number of employees they have in each country and the percentage increase or decrease in employment in each country
Rep. Capps Amendment.
Would require the SEC to issue a report to the Congress one year after enactment on the increase in initial public offerings that resulted from the act, including specific increases in filings by manufacturing and high-technology companies
Rep. Loebsack Amendment.
Would require information to be made available online, and outreach to be conducted to small and medium-sized businesses, women-owned businesses, veteran-owned businesses, and minority owned businesses to inform them about changes put in place by this legislation

Bill Text for H.R. 3606:
HTML Version

PDF Version
Background for H.R. 3606:
House Report (HTML Version)

House Report (PDF Version)

Complete Consideration of H.R. 2842 - Bureau of Reclamation Small Conduit Hydropower Development Act of 2011 (Rep. Tipton - Natural Resources) (One hour of debate) The bill clarifies the Bureau of Reclamation's role in permitting hydropower projects on federal canals and water pipelines. The bill would also exempt small-scale hydropower projects on federal canals and pipelines from federal environmental review requirements, and creates a process for contracting the operations of such facilities to private or local entities. Under current law, the construction of hydropower conduits is subject to federal environmental review processes under the National Environmental Policy Act (NEPA). 

Despite Republican’s claims, the bill is not a comprehensive jobs plan and will do nothing to put Americans back to work or grow our economy.

The House is expected to complete consideration of H.R. 2842 today, including votes on the amendment, motion to recommit and final passage. As of yesterday, all debate on the amendments was completed and the following amendment has a recorded vote pending:

Rep. Napolitano (CA) Amendment. Strikes language from the underlying bill that waives environmental review requirements for small conduit hydropower projects authorized by the National Environmental Policy Act (NEPA).

Bill Text for H.R. 2842:
HTML Version

PDF Version
Background for H.R. 2842:
House Report (HTML Version)

House Report (PDF Version)

TOMORROW’S OUTLOOK
The GOP Leadership has announced the following schedule for Thursday, March 8: The House will meet at 10:00 a.m. for legislative business. The House is expected to complete consideration of H.R. 3606 - Jumpstart Our Business Startups (Rep. Fincher - Financial Services).

 
The Daily Quote

“Speaker John Boehner (R-Ohio) warned House Republicans Tuesday that he will take up the Senate’s bipartisan $109 billion highway bill if they keep refusing to pass his version. Adopting Senate Majority Leader Harry Reid’s (D-Nev.) bill would be another embarrassing defeat for Boehner, who has talked for months about his vision for a House bill.”

-     The Hill, 3/6/12