By Jessica DiNapoli

NEW YORK (Reuters), A U.S. House of Representatives committee will be discussing a draft bill that requires companies with dual-class stocks to cease trading after seven years. The legislation was published in a late Thursday copy.

While dual-class shares structures are not popular among investors, they have become very popular in the fast-growing tech companies. U.S.-based investors have been pressing companies to eliminate the structure for several years. However, they are not stopping short of investing in such firms.

This draft bill is intended for newly listed companies. It would also grandfather in social media firms such as Facebook Inc Snapchat parent Snap Inc (NYSE: This bill permits the dual-class structure in order to be maintained for another seven years, if approved by at least a majority in each class.

On Friday, the Council of Institutional Investors (shareholder advocacy group) wrote to the committee in support of the bill. They were joined by New York State Comptroller and Ohio Public Employees Retirement System.

OPERS wrote that the divesting of dual-class companies’ stock is a way to end any constructive dialogue it might have with these firms.

It also requires companies to publicly disclose the ethnicity and racial makeup of their boards and top executives. A similar rule is being implemented by the U.S. Securities and Exchange Commission.