Changes

|Has title=114115-HR1645 Fostering Innovation Act|Proposed in=114115

|Has bill status=DiedProposed

A BILL

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

``(A) ceased to be an emerging growth company on

``(B) had average annual gross revenues of less

``(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 three fiscal years divided by 3three. ``(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.