S. 2924

119 S2924 IS: Small Entity Update Act
 U.S. Senate
 2025-09-29
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 II  119th CONGRESS  1st Session  S. 2924  IN THE SENATE OF THE UNITED STATES   September 29, 2025   Mrs. Britt  (for herself and  Mr. Kim ) introduced the following bill; which was read twice and referred to the  Committee on Banking, Housing, and Urban Affairs    A BILL
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.
1.
Short title
This Act may be cited as the   Small Entity Update Act  .
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.