115-HR1645 Fostering Innovation Act

Legislation
Title	114-HR1645 Fostering Innovation Act
Congress	114
Sponsor	Rep. Sinema, Kyrsten (D-AZ-9)
Committee(s)	House - Financial Services
Status	Proposed
Keywords	McCarthy
© edegan.com, 2016

(Sec. 2) This bill amends the Sarbanes-Oxley Act of 2002 with respect to the requirement that each registered public accounting firm that prepares or issues an audit report for an issuer of securities (other than an emerging growth company) shall attest to, and report on, the internal control assessment made by the issuer's management.

This requirement shall not apply with respect to any audit report prepared for an issuer that:

ceased to be an emerging growth company on the last day of its fiscal year following the fifth anniversary of its first sale of common equity securities, had average annual gross revenues of less than $50 million as of its most recently completed fiscal year, and is not a large accelerated filer. This temporary exemption for low-revenue issuers shall expire upon the earliest of:

the last day of the issuer's fiscal year following the tenth anniversary of its first sale of common equity securities pursuant to an effective registration statement under the Securities Act of 1933, the last day of the issuer's fiscal year during which the issuer's average annual gross revenues exceed $50 million, or the date upon which the issuer becomes a large accelerated filer.

Bill Text

[Congressional Bills 114th Congress] [From the U.S. Government Publishing Office] [H.R. 4139 Referred in Senate (RFS)]

114th CONGRESS

 2d Session
                               H. R. 4139

_______________________________________________________________________

                  IN THE SENATE OF THE UNITED STATES

                             May 24, 2016

Received; read twice and referred to the Committee on Banking, Housing,

                          and Urban Affairs

_______________________________________________________________________

                                AN ACT

   To amend the Sarbanes-Oxley Act of 2002 to provide a temporary 
 exemption for low-revenue issuers from certain auditor attestation 
                            requirements.

   Be it enacted by the Senate and House of Representatives of the 

United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

   This Act may be cited as the ``Fostering Innovation Act of 2015.

SEC. 2. TEMPORARY EXEMPTION FOR LOW-REVENUE ISSUERS.

   Section 404 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7262) is 

amended by adding at the end the following:

   ``(d) Temporary Exemption for Low-Revenue Issuers.--
           ``(1) Low-revenue exemption.--Subsection (b) shall not 
       apply with respect to an audit report prepared for an issuer 
       that--
                   ``(A) ceased to be an emerging growth company on 
               the last day of the fiscal year of the issuer following 
               the fifth anniversary of the date of the first sale of 
               common equity securities of the issuer pursuant to an 
               effective registration statement under the Securities 
               Act of 1933;
                   ``(B) had average annual gross revenues of less 
               than $50,000,000 as of its most recently completed 
               fiscal year; and
                   ``(C) is not a large accelerated filer.
           ``(2) Expiration of temporary exemption.--An issuer ceases 
       to be eligible for the exemption described under paragraph (1) 
       at the earliest of--
                   ``(A) the last day of the fiscal year of the issuer 
               following the tenth anniversary of the date of the 
               first sale of common equity securities of the issuer 
               pursuant to an effective registration statement under 
               the Securities Act of 1933;
                   ``(B) the last day of the fiscal year of the issuer 
               during which the average annual gross revenues of the 
               issuer exceed $50,000,000; or
                   ``(C) the date on which the issuer becomes a large 
               accelerated filer.
           ``(3) Definitions.--For purposes of this subsection:
                   ``(A) Average annual gross revenues.--The term 
               `average annual gross revenues' means the total gross 
               revenues of an issuer over its most recently completed 
               3 fiscal years divided by 3.
                   ``(B) Emerging growth company.--The term `emerging 
               growth company' has the meaning given such term under 
               section 3 of the Securities Exchange Act of 1934 (15 
               U.S.C. 78c).
                   ``(C) Large accelerated filer.--The term `large 
               accelerated filer' has the meaning given that term 
               under section 240.12b-2 of title 17, Code of Federal 
               Regulations, or any successor thereto..

           Passed the House of Representatives May 23, 2016.

           Attest:

                                                KAREN L. HAAS,

                                                                Clerk.

References

https://www.congress.gov/bill/115th-congress/house-bill/1645?q=%7B%22search%22%3A%5B%22fostering+innovation+act%22%5D%7D&r=1