Public Company Advisory Committee Act of 2026
- Bill Number
- H.R. 6967
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2026-03-19: Placed on the Union Calendar, Calendar No. 479.
- Last Updated
- 2026-07-06T22:26:15Z
AI-Generated Summary
Purpose of the Legislation
The Public Company Advisory Committee Act of 2026 aims to create a new advisory body within the U.S. Securities and Exchange Commission (SEC) to offer guidance on regulations affecting public companies. This focuses on protecting investors, ensuring fair and efficient markets, and supporting the formation of capital (raising money for businesses), while excluding advice on the SEC's enforcement activities, such as investigations or penalties.
Key Provisions
- Establishment and Role: The bill creates the Public Company Advisory Committee (PCAC) inside the SEC. The committee's main job is to advise on SEC rules, policies, and priorities related to public companies, including:
- Regulatory issues for public reporting and corporate governance (how companies are run and overseen).
- Shareholder voting processes (proxy rules for company meetings).
- Trading in public company stocks.
- Ways to help companies raise capital.
- The committee can recommend changes to rules or laws but cannot advise on SEC enforcement actions. It submits reports and suggestions to the SEC as needed.
- Membership Requirements:
- 10 to 20 members, appointed by the SEC.
- Members must be officers, directors, or senior officials of public companies (registered under federal securities laws, excluding those in asset management, fixed income, investment advising, broker-dealer, or proxy services).
- Also includes leaders from business associations representing public companies and professional advisors (e.g., lawyers, accountants, investment bankers).
- At least 50% of members from public company leaders.
- 4-year terms with staggered starts (initial members split between 2-year and 4-year terms).
- No overlap allowed with other SEC advisory committees; members are not considered SEC employees.
- Leadership and Operations:
- Members elect a Chair, Vice Chair, Secretary, and Assistant Secretary for 2-year terms.
- The Chair can form subcommittees for focused discussions, which may be public or private.
- Meetings: At least twice a year, called by the Chair, or more often if requested by the SEC; 2 weeks' written notice required.
- SEC provides staff support.
- SEC Response Process:
- The SEC must review all committee findings and recommendations.
- For each submission, the SEC issues a public statement assessing the input and explaining any planned actions (or lack thereof).
- The SEC is not required to follow the committee's advice.
- Exemptions: The committee is not subject to the Federal Advisory Committee Act (FACA), a law that sets rules for how federal advisory groups operate, including public access and record-keeping requirements.
Significant Changes to Existing Law
This bill inserts a new section (40A) into the Securities Exchange Act of 1934, which governs securities trading and SEC operations. Previously, the SEC had other advisory committees (e.g., on investor issues or small businesses), but none specifically dedicated to public company perspectives on reporting, governance, proxies, trading, and capital formation. The exemption from FACA streamlines operations by avoiding standard federal oversight rules for advisory bodies. It also explicitly bars advice on enforcement, clarifying boundaries not previously detailed for similar groups.
Potential Impacts
- On Government Agencies: The SEC gains a dedicated source of industry input, potentially leading to more targeted and effective regulations on public companies. This could reduce regulatory surprises for businesses but adds administrative work for reviewing and responding to recommendations.
- On Citizens and Businesses: Public companies and their shareholders may benefit from regulations better aligned with real-world needs, improving transparency in reporting and governance, smoother shareholder voting, and easier access to capital markets. Individual investors could see indirect gains through stronger markets, but there's no direct impact on everyday citizens outside investing.
- On International Relations: Minimal to none, as the bill focuses on domestic U.S. securities regulation without addressing foreign entities or cross-border issues.
Main Stakeholders Affected
- Public Companies: Especially non-financial service firms (e.g., manufacturing or tech companies), their executives, directors, and associations, who gain a formal voice in SEC rulemaking.
- Professional Advisors: Lawyers, accountants, and bankers serving public companies, who can participate and influence policies affecting their clients.
- SEC and Regulators: Directly tasked with managing the committee and incorporating its advice.
- Investors and Shareholders: Indirectly affected through potential improvements in market fairness and company oversight.
- Excluded Groups: Firms in investment services or those already on other SEC committees cannot participate, limiting their input.
Notable Legal, Constitutional, or Political Implications
- Legal: The FACA exemption allows faster, less formal operations but could raise concerns about transparency, as it bypasses requirements for open meetings and public records. Recommendations are purely advisory, preserving the SEC's independent authority under existing securities laws.
- Constitutional: No direct challenges; it aligns with Congress's power to regulate commerce and oversee federal agencies. It promotes balanced input without infringing on executive branch functions.
- Political: Introduced bipartisanship (by Rep. Lucas, R-OK, and Rep. Pettersen, D-CO) suggests broad support for enhancing industry-SEC dialogue. It could influence future regulations by institutionalizing public company views, potentially reducing litigation over rules, but might be seen as favoring business interests over stricter oversight.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Rep. Pettersen, Brittany [D-CO-7]
Recent Actions
- 2026-03-19: Placed on the Union Calendar, Calendar No. 479.
- 2026-03-19: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-557.
- 2026-03-19: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-557.
- 2026-01-22: Ordered to be Reported (Amended) by the Yeas and Nays: 39 - 15.
- 2026-01-22: Committee Consideration and Mark-up Session Held
- 2026-01-07: Referred to the House Committee on Financial Services.
- 2026-01-07: Introduced in House
- 2026-01-07: Introduced in House
Bill Versions
- Public Company Advisory Committee Act of 2026 — issued 2026-01-07 — PDF (7 pages)
- Public Company Advisory Committee Act of 2026 — issued 2026-03-19 — PDF (10 pages)