I 
115TH CONGRESS 
2D SESSION 
H. R. 6021 
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 
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. 
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’’. 
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SEC. 2. EXEMPTION. 
(a) AMENDMENTS TO THE SARBANES-OXLEY ACT OF 
2002.—Title I of the Sarbanes-Oxley Act of 2002 (15 
U.S.C. 7211 et seq.) is amended— 
(1) in section 101(e)(1) (15 U.S.C. 7211(e)(1)), 
by striking ‘‘brokers, and dealers’’ and inserting 
‘‘brokers, dealers, and non-custody brokers or deal-
ers that are privately held and in good standing’’; 
and 
(2) in section 110 (15 U.S.C. 7220)— 
(A) in paragraph (3)— 
(i) by striking ‘‘The term’’ and insert-
ing ‘‘Except as otherwise expressly pro-
vided, the term’’; and 
(ii) 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 account-
ing firm’’; 
(B) in paragraph (4)— 
(i) by striking ‘‘The term’’ and insert-
ing ‘‘Except as otherwise expressly pro-
vided, the term’’; and 
(ii) by inserting ‘‘, except that the 
term does not include a non-custody broker 
or dealer that is privately held and in good 
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standing’’ after ‘‘registered public account-
ing firm’’; 
(C) by redesignating paragraphs (5) and 
(6) as paragraphs (8) and (9), respectively; and 
(D) by inserting after paragraph (4) the 
following: 
‘‘(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))), 
that, as of the last day of the most recently com-
pleted fiscal year of the broker or dealer, as applica-
ble, the broker or dealer— 
‘‘(A) was registered with the Commission; 
‘‘(B) was licensed by, and registered with, 
the Financial Industry Regulatory Authority or 
a national securities exchange that is registered 
with the Commission under section 6 of the Se-
curities Exchange Act of 1934 (15 U.S.C. 78f); 
‘‘(C) was compliant with the minimum dol-
lar net capital requirements under section 
240.15c3–1 of title 17, Code of Federal Regula-
tions, or any successor regulation; 
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