H.R. 3382 — Small Entity Update Act

This section defines terms and directs the Securities and Exchange Commission (SEC) to, not later than one year after enactment and every five years thereafter— (1) conduct a study of its definition of small entity (as provided in 5 U.S.C. 601) for purposes of the Regulatory Flexibility Act (RFA), assessing alignment with RFA findings and declarations, growth in U.S. financial markets since the last such definition amendment, and options to ensure a meaningful number of entities qualify; (2) submit a report to Congress with study results and detailed recommendations to amend the definition consistent with study findings and to expand entity coverage; (3) revise its rules consistent with each study, subject to public notice and comment; and (4) after issuing final rule revisions under (3) and every five years thereafter, adjust dollar figures in the small entity definition to reflect changes in the Consumer Price Index for All Urban Consumers. (As background, the RFA requires agencies to analyze proposed and final rules' impacts on small entities—small businesses, organizations, and governmental jurisdictions—and consider regulatory alternatives to minimize burdens.)