Small entity update

(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 the entities that would fall under that definition be appropriately considered a small entity consistent with subparagraphs (A) and (B); 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) Proposed rule revisions in lieu of study (1) Initial study The Commission may satisfy the requirement to conduct the first study described in subsection (b)(1) and submit the associated report described in subsection (b)(2) by, within 1 year of the date of enactment of this Act, proposing revisions to the rules of the Commission relating to the term small entity in consideration of subparagraphs (A), (B), and (C) of subsection (b)(1). (2) Second study The Commission may satisfy the requirement to conduct the second study described in subsection (b)(1) and submit the associated report described in subsection (b)(2) by, no sooner than 5 years and no later than 6 years after the date of enactment of this Act, proposing revisions to the rules of the Commission relating to the term small entity in consideration of subparagraphs (A), (B), and (C) of subsection (b)(1). (d) 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. (e) Inflation adjustments After the Commission issues 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.