Public Company Advisory Committee Act of 2026
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The bill would create a Public Company Advisory Committee inside the Securities and Exchange Commission to advise regulators on rules affecting public companies, their corporate governance, proxy processes, and capital formation.
The committee would be barred from weighing in on SEC enforcement matters, and while the SEC would have to publicly respond to its recommendations, the agency would not be required to act on them.
What this bill would do
What it would do
The bill would amend the Securities Exchange Act of 1934 to establish a Public Company Advisory Committee within the SEC. The committee would advise the Commission on regulatory priorities, public reporting and corporate governance, the proxy process for shareholder meetings, securities trading, and capital formation as they relate to public companies. It would be barred from advising on the SEC's enforcement program. Membership would run from 10 to 20 people, drawn from public company officers and directors, trade association executives, and professional advisers such as attorneys, accountants, and bankers, with at least half of members coming from public company officers or directors themselves. Members would serve staggered four-year terms and elect their own chair, vice chair, secretary, and assistant secretary. The committee would meet at least twice a year, and the SEC would have to publicly respond to each recommendation the committee submits, though the bill would not require the SEC to adopt any of them. The committee would be exempt from the Federal Advisory Committee Act.
Key provisions
- 1Would establish a Public Company Advisory Committee within the SEC to advise on regulatory priorities, governance, proxy process, trading, and capital formation for public companies
- 2Would prohibit the committee from advising on the SEC's enforcement program
- 3Would set membership at 10-20 people drawn from public company officials, trade association executives, and professional advisers, with at least half from public company officers or directors
- 4Would require staggered four-year member terms and election of a chair, vice chair, secretary, and assistant secretary
- 5Would require the committee to meet at least twice annually and require the SEC to publicly respond to each committee recommendation
- 6Would exempt the committee from the Federal Advisory Committee Act
Who would be affected
The Securities and Exchange Commission, which would staff and oversee the new committee; public companies and their officers, directors, and trade associations, who would be eligible for appointment; and professional advisers such as attorneys, accountants, and investment bankers who serve public companies.
Why it matters
Public companies and their representatives would gain a formal, ongoing channel to shape SEC rulemaking on governance, proxy rules, and capital formation, with guaranteed public responses to their recommendations. Because the SEC would not be bound to act on the advice, the committee's practical influence would depend on how seriously the agency treats its findings.
What would change
Changes to existing law
Amends Securities Exchange Act of 1934 (Sec. 2)
Inserts a new Section 40A establishing the Public Company Advisory Committee within the SEC, defining its purpose, membership, and procedures.
Amends Federal Advisory Committee Act (Chapter 10 of part I of title 5, U.S. Code) (Sec. 2)
Exempts the new Public Company Advisory Committee from Federal Advisory Committee Act requirements.
Agencies directed to act
Funding and costs
Congressional Budget Office estimate
CBO estimates that implementing H.R. 6967 would cost less than $500,000 over the 2026–2031 period, with no effect on direct spending, revenues, or the deficit.
CBO finds that H.R. 6967 would have no effect on direct (mandatory) spending or revenues over the 2026–2036 scoring window. Discretionary spending (funding that must be approved annually by Congress) to implement the bill would be less than $500,000 over 2026–2031; because the SEC is authorized to collect fees to offset its annual appropriation, the net effect on discretionary spending is expected to be negligible. The bill contains no intergovernmental mandates, but it does impose a private-sector mandate — if the SEC raises fees to cover implementation costs, that incremental cost would fall well below UMRA's annual private-sector mandate threshold of $214 million (in 2026 dollars).
How implementation would work
The SEC would appoint 10 to 20 committee members from three defined categories, with staggered initial terms so half serve two years and half serve four. The committee would elect its own leadership, could form subcommittees, and would meet at least twice a year with two weeks' written notice. The SEC would supply staff as the chair determines necessary. Each time the committee submits findings or recommendations, the SEC would have to publicly assess them and disclose any intended action, though it would not be obligated to adopt them.
Legislative status & sources
Latest action
Placed on the Union Calendar, Calendar No. 479.
Official CRS summary
Show the CRS summaryHide the CRS summary
This bill establishes the Public Company Advisory Committee within the Securities and Exchange Commission (SEC).
The committee must advise the SEC on regulatory priorities, public reporting and corporate governance of public companies, shareholder meetings and the proxy process, and other topics. The committee must be comprised of individuals who are officers, directors, or senior officials of public companies; have senior managerial responsibility in associations that represent the interests of public companies; or provide professional advice and services to public companies.
Legislative subjects
Administrative law and regulatory procedures; Advisory bodies; Finance and Financial Sector; Public-private cooperation; Securities; Securities and Exchange Commission (SEC)
Committee report
H. Rept. 119-557