Expanding Access to Capital Act of 2023

Floor Speech

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Mr. HUIZENGA. Mr. Chair, I yield myself 2\1/2\ minutes.

Mr. Chair, for 90 years, the Securities and Exchange Commission has been tasked with three things: protect investors; maintain fair, orderly, and efficient markets; and finally, facilitate capital formation.

The amendment before us today does all three.

First, it directs the Securities and Exchange Commission to promulgate rules with respect to electronic delivery of some required disclosures to retail investors.

Second, it provides a transition period, allowing an initial paper communication about the electronic delivery to be sent to existing investors.

Third, during a period not to exceed 2 years, the amendment requires delivery of the annual notice in paper solely to remind investors of the ability to opt out of that and into electronic delivery at any time.

Lastly--and I can't emphasize this enough--this amendment provides a mechanism for investors at any time to opt out of e-delivery, and once again, you will receive paper versions of the documents.

You want paper, Mr. Chair, you get it.

You want e-delivery, you can get that, too.

E-delivery is not a new and radical concept, but frankly, it is long overdue, and the data supports the facts.

In 2018, the Social Security Administration eliminated paper as its primary method of delivering benefit statements to individuals. Now, nearly 45 million Americans who receive benefits from Social Security have created online accounts to access their information--information that is more timely and more secure.

Likewise, the Federal Thrift Savings Plan, TSP, which Members and staff in this Chamber use, began offering statements digitally in 2003, with 5.5 million or 85 percent of participants currently taking advantage of this option.

Finally, in 2020, the Department of Labor moved to e-delivery as a default for all of its workplace plan participants.

I would close by addressing consumer protection. This amendment appropriately preserves the ability for investors who prefer to receive paper notices and disclosures to do just that.

Like many of my colleagues, I, too, represent a district that encompasses rural communities. That is why it was important for today's amendment to ensure that paper will always be an option if internet access is an issue.

American financial markets are some of the most sophisticated in the world with innovation happening at every turn. Yet, for retail investors, we have decided that defaulting to an outdated mode of information sharing is in their best interest.

Today's amendment was guided by a commitment to honor consumer choice while ensuring Americans receive important information.

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Mr. HUIZENGA. Madam Speaker, I yield 2 minutes to the gentleman from North Carolina (Mr. Nickel).

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Mr. HUIZENGA. Madam Chair, may I inquire of the time remaining?

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Mr. HUIZENGA. Madam Chair, virtually every Federal agency, including the IRS and the Social Security Administration, have moved to electronic delivery. Why? Because older Americans have rapidly adopted internet technology in recent years, including 96 percent of those between the ages of 50 and 65, of which I am, and over three-quarters of those over the age of 65.

In fact, in a recent AARP study about retirement plan account holders' views on electronic versus paper accounts, 91 percent of the people were comfortable using the internet to log in and view financial accounts and 94 percent used the internet daily.

I understand the AARP has some concerns with this legislation. We have attempted to address those through the ranking member. Unfortunately, their solution so radically changes the scope of the bill that it undercuts the entire intent of this.

As I have said before, if you want paper, you will receive paper. If you want an electronic copy, you will receive an electronic copy. It is disingenuous to say anything else. If you don't have internet access, or if you choose to receive paper, you will get it.

Madam Chair, I yield back the balance of my time.

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Mr. HUIZENGA. Madam Chair, I demand a recorded vote.

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