115-HR1645 Fostering Innovation Act
(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.
| 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 | |
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.
