IB 
Union Calendar No. 834 
115TH CONGRESS 
2D SESSION 
H. R. 6021 
[Report No. 115–1075] 
To amend the Sarbanes-Oxley Act of 2002 to exclude privately held, non- 
custody brokers and dealers that are in good standing from certain 
requirements under title I of that Act, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 6, 2018 
Mr. HILL (for himself and Mr. GONZALEZ of Texas) introduced the following 
bill; which was referred to the Committee on Financial Services 
DECEMBER 12, 2018 
Additional sponsor: Mr. BEYER 
DECEMBER 12, 2018 
Reported with amendments, committed to the Committee of the Whole House 
on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on June 6, 2018] 
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A BILL 
To amend the Sarbanes-Oxley Act of 2002 to exclude pri-
vately held, non-custody brokers and dealers that are 
in good standing from certain requirements under title 
I of that Act, and for other purposes. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Small Business Audit 
Correction Act of 2018’’. 
SEC. 2. EXEMPTION. 
(a) AMENDMENTS TO TITLE I OF THE SARBANES- 
OXLEY ACT OF 2002.—Section 110 of the Sarbanes-Oxley 
Act of 2002 (15 U.S.C. 7220) is amended— 
(1) in paragraph (3), by inserting ‘‘, except that 
the term does not include a non-custody broker or 
dealer that is privately held and in good standing’’ 
after ‘‘registered public accounting firm’’; 
(2) in paragraph (4), by inserting ‘‘, except that 
the term does not include a non-custody broker or 
dealer that is privately held and in good standing’’ 
after ‘‘registered public accounting firm’’; 
(3) by redesignating paragraphs (5) and (6) as 
paragraphs (8) and (9), respectively; and 
(4) by inserting after paragraph (4) the fol-
lowing: 
‘‘(5) IN
GOOD
STANDING.—The term ‘in good 
standing’ means, with respect to a broker or dealer 
(as those terms are defined in section 3(a) of the Se-
curities Exchange Act of 1934 (15 U.S.C. 78c(a))), 
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‘‘(A) as of the last day of the most recently 
completed fiscal year of the broker or dealer had 
not less than 1 and not more than 150 associated 
persons (as that term is defined in section 3(a) 
of the Securities Exchange Act of 1934 (15 
U.S.C. 78c(a))) registered with a self-regulatory 
organization (as provided in section 3(a)(26) of 
the 
Securities 
Exchange 
Act 
(15 
U.S.C. 
78c(a)(26))) of which the broker or dealer is a 
member; and 
‘‘(B) throughout the most recently completed 
fiscal year of the broker or dealer— 
‘‘(i) did not, as a matter of ordinary 
business practice in connection with the ac-
tivities of the broker or dealer, receive cus-
tomer checks, drafts, or other evidence of in-
debtedness made payable to the broker or 
dealer; 
‘‘(ii) promptly forwarded customer se-
curities and customer checks, drafts, or 
other evidence of indebtedness payable to a 
third party, including a clearing broker or 
dealer, in compliance with section 240.15c3- 
3 of title 17, Code of Federal Regulations, 
or any successor regulation; 
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‘‘(iii) did not otherwise hold customer 
securities or cash; 
‘‘(iv) if required under section 3(a)(2) 
of the Securities Investor Protection Act of 
1970 (15 U.S.C. 78ccc(a)(2)), was a mem-
ber of the Securities Investor Protection 
Corporation; and 
‘‘(v) either— 
‘‘(I) claimed exemption from sec-
tion 240.15c3–3 of title 17, Code of 
Federal Regulations, or any successor 
regulation; or 
‘‘(II) claimed no exemption from 
such section 240.15c3–3, or any suc-
cessor regulation, or was not otherwise 
subject to such, because the broker or 
dealer did not maintain custody over 
any customer securities or cash. 
‘‘(7) PRIVATELY
HELD.—The term ‘privately 
held’ means, with respect to a broker or dealer (as 
those terms are defined in section 3(a) of the Securi-
ties Exchange Act of 1934 (15 U.S.C. 78c(a))), that 
the broker or dealer, as applicable, is not an issuer.’’. 
(b) AMENDMENTS TO REGULATIONS.—Not later than 
180 days after the date of enactment of this Act, the Securi-
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ties and Exchange Commission shall make any necessary 
amendments to regulations of the Commission that are in 
effect as of the date of enactment of this Act in order to— 
(1) carry out this Act and the amendments made 
by this Act; and 
(2) to exclude the auditors of non-custody brokers 
and dealers that are privately held and in good 
standing (as such terms are defined under section 110 
of the Sarbanes-Oxley Act of 2002) from the audit re-
quirements of the Public Company Accounting Over-
sight Board. 
(c) EFFECTIVE DATE.—This Act, and the amendments 
made by this Act, shall take effect on the date that is 180 
days after the date of enactment of this Act. 
Amend the title so as to read: ‘‘A bill to amend the 
Sarbanes-Oxley Act of 2002 to exclude the audits of pri-
vately held, non-custody brokers and dealers that are in 
good standing from certain requirements under title I of 
that Act, and for other purposes.’’. 
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Union Calendar No. 834 
115TH CONGRESS 
2D SESSION 
H. R. 6021 
[Report No. 115–1075] 
A BILL 
To amend the Sarbanes-Oxley Act of 2002 to ex-
clude privately held, non-custody brokers and 
dealers that are in good standing from certain re-
quirements under title I of that Act, and for 
other purposes. 
DECEMBER 12, 2018 
Reported with amendments, committed to the Committee 
of the Whole House on the State of the Union, and or-
dered to be printed 
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