H.R. 935 would exempt certain brokers that perform transactions related to ownership transfers of eligible privately held companies from the requirement to register with the Securities and Exchange Commission (SEC).
Using information from the SEC, CBO estimates that implementing H.R. 935 would cost less than $500,000 for the agency to clarify the applicability of regulations regarding registration requirements for brokers of mergers and acquisitions. Moreover, because the SEC is authorized to collect fees each year to offset its annual appropriation, CBO expects that the net effect on discretionary spending over the 2022-2026 period would be negligible, assuming appropriation actions consistent with that authority.
If the SEC increased fees to offset the costs associated with implementing the bill, H.R. 935 would increase the cost of an existing mandate on private entities required to pay those fees. CBO estimates that, on average, the annual incremental cost of the mandate would be less than $500,000—well below the annual threshold established in the Unfunded Mandates Reform Act (UMRA) for private-sector mandates ($170 million in 2021, adjusted annually for inflation).
H.R. 935 contains no intergovernmental mandates as defined in UMRA.