CONGRESSWOMAN ELISE STEFANIK
On Tuesday, July 14, 2015, the House will consider H.R. 1334, the Holding Company Registration Threshold Equalization Act of 2015, under suspension of the rules. The bill was introduced on March 4, 2015, by Rep. Steve Womack (R-AR) and was referred to the Committee on Financial Services, which ordered the bill reported by a vote of 60 to 0 on May 20, 2015.
H.R. 1334 amends Title VI of the Jumpstart Our Business Startups (JOBS) Act to make it applicable to savings and loan holding companies (SLHCs). Title VI raised the mandatory shareholder threshold to register with the SEC from 500 shareholders to 2,000 for banks and bank holding companies with total assets over $10 million, and it raised the deregistration threshold from 300 shareholders to 1,200. The JOBS Act did not explicitly extend these thresholds to SLHCs.
The Jumpstart Our Business Startups (JOBS) Act, enacted on April 5, 2012, “was intended to create jobs in a suffering economy by relaxing the securities registration requirements, considered onerous and costly by the Act’s backers, for small and mid-size companies.”
Title VI of the JOBS Act, titled Capital Expansion, increases the number of shareholders and the total asset dollar amount of companies required to register with the SEC. “The number of shareholders triggering registration was increased from 500 to 2,000, and the total statutory assets dollar amount triggering registration was increased from $1 million to $10 million. For banks and bank holding companies, the number of shareholders and the total assets triggering registration were also increased to 2,000 and $10 million. However, for banks and bank holding companies to deregister (i.e., for banks and bank holding companies already registered to exit SEC registration), the shareholder number was raised from 300 to 1200.” Under current law, these threshold changes do not explicitly apply to SLHCs.
According to the bill sponsor, it was not the intention of Congress to treat SLHCs differently from bank and bank holding companies in the JOBS Act. He asserted that the bill is a “bipartisan effort to grant our nation’s 600 small savings and loan holding companies the same flexibility afforded to bank and bank holding companies so they can better serve their communities and enable job creation and economic growth.”
 See Congressional Research Service (CRS) Legal Sidebar, “JOBS Act Allows Some Banks to End SEC Reporting,” March 5, 2013.
 See CRS Legal Sidebar, “JOBS Act Allows Some Banks to End SEC Reporting,” March 5, 2013.
 See Press Release, “Womack, Himes, Delaney, Wagner Reintroduce Bipartisan Holding Company Registration Threshold Equalization Act,” March 4, 2015.
The Congressional Budget Office (CBO) estimates that implementing H.R. 1334 would not significantly affect discretionary spending. Based on information from the SEC, CBO expects that implementing H.R. 1334 would not have a significant effect on the workload of the agency. Further, under current law, the SEC is authorized to collect fees sufficient to offset its appropriation each year; therefore, CBO estimates that the net cost to the SEC would not be significant, assuming appropriation actions consistent with that authority. Enacting H.R. 1334 would not affect direct spending or revenues; therefore, pay-as-you-go procedures do not apply.
For questions or further information please contact John Huston with the House Republican Policy Committee by email or at 6-5539.