Streamlining Public Company Accounting Oversight Act
Bill: H.R.5489 | Sponsor: Rep. Huizenga, Bill (R-MI)
Policy area: Finance and Financial Sector

Summary:
Streamlining Public Company Accounting Oversight Act
This bill dissolves the Public Company Accounting Oversight Board and creates the Office of Public Accounting Oversight within the Securities and Exchange Commission. The board is a nonprofit corporation that regulates the audits of publicly traded companies.

To amend the Sarbanes-Oxley Act of 2002 to transfer the Public Company 
 Accounting Oversight Board to the Securities and Exchange Commission, 
                        and for other purposes.

    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 ``Streamlining Public Company 
Accounting Oversight Act''.

SEC. 2. TRANSFER OF PUBLIC COMPANY ACCOUNTING OVERSIGHT BOARD TO 
              SECURITIES AND EXCHANGE COMMISSION.

    (a) Global Amendments.--Title I of the Sarbanes-Oxley Act of 2002 
(15 U.S.C. 7211 et seq.) is amended--
            (1) in the title heading, by striking ``PUBLIC COMPANY 
        ACCOUNTING OVERSIGHT BOARD'' and inserting ``OFFICE OF PUBLIC 
        ACCOUNTING OVERSIGHT'';
            (2) by striking ``Public Company Accounting Oversight 
        Board'' each place it appears and inserting ``Office of Public 
        Accounting Oversight'';
            (3) by striking ``the Board'' each place it appears and 
        inserting ``the Office'';
            (4) by striking ``The Board'' each place it appears and 
        inserting ``The Office''; and
            (5) by striking ``the Board's'' each place it appears and 
        inserting ``the Office's''.
    (b) Repeals.--Sections 104, 105, and 107 of the Sarbanes-Oxley Act 
of 2002 (15 U.S.C. 7214; 15 U.S.C. 7215; 15 U.S.C. 7217) are repealed.
    (c) References.--Beginning on the date that is 2 years after the 
date of the enactment of this Act, any reference to the Public Company 
Accounting Oversight Board in any law, regulation, map, document, 
record, or other paper of the United States shall be deemed to be a 
reference to the Office of Public Accounting Oversight of the Office of 
the Chief Accountant of the Securities and Exchange Commission.
    (d) Termination of Existing Board.--The Public Company Accounting 
Oversight Board shall terminate on the date that is 2 years after the 
date of the enactment of this Act.

SEC. 3. ESTABLISHMENT; ADMINISTRATIVE PROVISIONS.

    Section 101 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7211) is 
amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Establishment of Office.--There is established in the Office 
of the Chief Accountant of the Commission an Office of Public 
Accounting Oversight, to oversee the audit of companies that are 
subject to the securities laws, and related matters, in order to 
protect the interests of investors and further the public interest in 
the preparation of informative, accurate, and independent audit 
reports.'';
            (2) by amending subsection (b) to read as follows:
    ``(b) Director.--The Chief Accountant of the Office of the Chief 
Accountant of the Commission shall serve as the Director of the Office 
of Public Accounting Oversight.'';
            (3) in subsection (c)--
                    (A) in the heading, by striking ``the Board'' and 
                inserting ``the Office'';
                    (B) by striking ``, subject to action by the 
                Commission under section 107, and once a determination 
                is made by the Commission under subsection (d) of this 
                section'';
                    (C) in paragraph (3), by striking ``section 104'' 
                and inserting ``subsection (e)'';
                    (D) in paragraph (4), by striking ``section 105'' 
                and inserting ``subsection (f)'';
                    (E) in paragraph (5)--
                            (i) by striking ``the Board (or the 
                        Commission, by rule or order)'' and inserting 
                        ``the Commission''; and
                            (ii) by inserting ``and'' after the 
                        semicolon;
                    (F) in paragraph (6)--
                            (i) by striking ``the rules of the Board'' 
                        and inserting ``the rules of the Commission''; 
                        and
                            (ii) by striking ``; and'' and inserting a 
                        period; and
                    (G) by striking paragraph (7);
            (4) in subsection (d)--
                    (A) by striking ``The members of the Board'' and 
                inserting ``The Chief Accountant of the Office of the 
                Chief Accountant of the Commission'';
                    (B) by striking ``270 days after the date of 
                enactment of this Act'' and inserting ``1 year after 
                the date of the enactment of the Streamlining Public 
                Company Accounting Oversight Act''; and
                    (C) by striking the last sentence;
            (5) by striking subsections (e), (f), and (g);
            (6) by inserting after subsection (d) the following:
    ``(e) Inspections of Registered Public Accounting Firms.--The 
Office shall conduct a continuing program of inspections to assess the 
degree of compliance of each registered public accounting firm and 
associated persons of that firm with this Act, the rules of the 
Commission, or professional standards, in connection with its 
performance of audits, issuance of audit reports, and related matters 
involving issuers.
    ``(f) Investigations and Disciplinary Proceedings.--The Commission 
shall establish, by rule, fair procedures for the investigation and 
disciplining of registered public accounting firms and associated 
persons of such firms.'';
            (7) by redesignating subsection (h) as subsection (g); and
            (8) in the heading of subsection (g), as so redesignated, 
        by striking ``the Board'' and inserting ``the Office''.

SEC. 4. REGISTRATION WITH THE OFFICE.

    Section 102 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7212) is 
amended--
            (1) in the section heading by striking ``the board'' and 
        inserting ``the office'';
            (2) in subsection (b)(2)(H), by striking ``the Board or 
        the''; and
            (3) in subsection (c)(2), by striking `` for purposes of 
        sections 105(d) and 107(c)''.

SEC. 5. AUDITING, QUALITY CONTROL, STANDARDS, AND RULES.

    Section 103 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7213) is 
amended--
            (1) in the heading, by striking ``and Independence 
        Standards'' and inserting ``Standards, and'';
            (2) in subsection (a)(3)--
                    (A) in subparagraph (A)(i), by striking ``, subject 
                to the terms of section 107,'';
                    (B) by striking subparagraph (B); and
                    (C) by redesignating subparagraph (C) as 
                subparagraph (B);
            (3) in subsection (c) in the heading of paragraph (2), by 
        striking ``Board'' and inserting ``Office''; and
            (4) in subsection (d), by striking ``101(h)'' and inserting 
        ``101(g)''.

SEC. 6. FOREIGN PUBLIC ACCOUNTING FIRMS.

    Section 106 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7216) is 
amended--
            (1) in the heading of subsection (a)(2), by striking 
        ``Board'' and inserting ``Office''; and
            (2) in subsection (c)--
                    (A) by striking ``and the Board, subject to the 
                approval of the Commission, may,''; and
                    (B) by striking ``(or Board)''.

SEC. 7. FUNDING.

    Section 109 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7219) is 
amended--
            (1) by amending subsection (b) to read as follows:
    ``(b) Annual Budgets.--
            ``(1) Standard setting body.--The standard setting body 
        referred to in subsection (a) shall establish a budget for each 
        fiscal year, which shall be reviewed and approved according to 
        their respective internal procedures not less than 1 month 
        prior to the commencement of the fiscal year to which the 
        budget pertains.
            ``(2) The office.--The Commission shall establish the 
        budget for the Office for each fiscal year.'';
            (2) in subsection (c)--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) Recoverable budget expenses.--
                    ``(A) Standard setting body.--The budget of the 
                standard setting body referred to in subsection (a) for 
                each fiscal year shall be payable from annual 
                accounting support fees, in accordance with subsections 
                (d) and (e). Accounting support fees and other receipts 
                of such standard-setting body shall not be considered 
                public monies of the United States.
                    ``(B) The office.--The budget of the Office 
                (reduced by any registration or annual fees received 
                under section 102(f) for the year preceding the year 
                for which the budget is being computed) for each fiscal 
                year may be payable from annual accounting support 
                fees, in accordance with subsections (d) and (e). 
                Accounting support fees and other receipts of the 
                Office.'';
                    (B) in paragraph (2), by striking ``shall'' and 
                inserting ``may'';
            (3) in subsection (d)--
                    (A) in the heading, by striking ``the Board'' and 
                inserting ``the Office'';
                    (B) in paragraph (1), by striking ``The Board shall 
                establish, with the approval of the Commission,'' and 
                inserting ``The Commission may establish'';
                    (C) in paragraph (2), by striking ``shall'' and 
                inserting ``may''; and
                    (D) by striking paragraph (3);
            (4) in subsection (j)--
                    (A) by striking ``either the Board,''; and
                    (B) by striking ``, or both,''; and
            (5) by striking subsection (k).

SEC. 8. DEFINITIONS.

    Section 110 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7220) is 
amended--
            (1) by redesignating paragraphs (5) and (6) as paragraphs 
        (6) and (7); and
            (2) by inserting after paragraph (4) the following:
            ``(5) Office.--The term `Office' means the Office of Public 
        Accounting Oversight of the Office of the Chief Accountant of 
        the Commission.''.

SEC. 9. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Definitions.--Section 2(a)(9)(C) of the Sarbanes-Oxley Act of 
2002 (15 U.S.C. 7201) is amended by striking ``, 101(c), 105, and 
107(c) and the rules of the Board and Commission issued thereunder'' 
and inserting ``and 101(c) and the rules of the Commission 
thereunder''.
    (b) Exemption Authority.--Section 201(b) of the Sarbanes-Oxley Act 
of 2002 (15 U.S.C. 7231(b)) is amended--
            (1) by striking ``The Board may'' and inserting ``The 
        Commission may''; and
            (2) by striking ``in the same manner as for rules of the 
        Board under section 107.''.
    (c) Self-Regulatory Organization.--Section 603(y)(3) of the 
Consumer Credit Protection Act (15 U.S.C. 1681a(y)(3)) is amended by 
striking ``any entity established under title I of the Sarbanes-Oxley 
Act of 2002,''.

SEC. 10. RULE OF CONSTRUCTION WITH RESPECT TO COOPERATIVE ARRANGEMENTS.

    Nothing in this Act, or the amendments made by this Act, shall be 
construed to invalidate or otherwise affect a cooperative arrangement 
between the Public Company Accounting Oversight Board and a foreign 
auditor oversight authority (as defined in section 2(a) of the 
Sarbanes-Oxley Act of 2002 (15 U.S.C. 7201(a))) in effect on the date 
that is 2 years after the date of the enactment of this Act.

SEC. 11. REGULATIONS.

    The Securities and Exchange Commission may issue such regulations 
as may be necessary to carry out this Act.

SEC. 12. EFFECTIVE DATE.

    The amendments made by this Act shall take effect on the date that 
is 2 years after the date of the enactment of this Act.
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