The legislation, which the American Hospital Association supports, would modify the definition of “municipal advisor” to exclude “any elected or appointed member of a governing body of a municipal entity, with respect to such member’s role on the governing body.” A subcommittee of the House Financial Services Committee yesterday voted 21-10 to approve the bill.
Rick Pollock, executive vice president of AHA, wrote a letter to Rep. Scott Garrett (R-N.J.), chairman of the Subcommittee on Capital Markets and Government-Sponsored Enterprises, on the matter. “It is unclear what additional benefit would flow to the community by requiring board members to fulfill a costly, burdensome, periodic and voluminous registration requirement with the SEC.”
He said the requirement, and potential civil and criminal penalties for failure to comply, could be “a powerful deterrent to voluntary service and could result in the loss of many talented and dedicated community leaders,” according to the letter.
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