Responsible Accounting Standards Act of 2022
Bill: H.R.9315 | Sponsor: Rep. Luetkemeyer, Blaine (R-MO)
Policy area: Finance and Financial Sector

Summary:
Responsible Accounting Standards Act of 2022
This bill requires the standard-setting bodies of accounting principles to comply with provisions generally required of federal agencies, including those that apply to rulemaking procedures, cost benefit analysis of certain actions, and open meeting requirements. The standard-setting bodies must also testify annually before Congress.

To amend the Securities Act of 1933 to require the accounting 
  principles standard setting body to comply with the Administrative 
 Procedure Act and the Government in the Sunshine Act, to require the 
 head of such body to testify annually before Congress, 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 ``Responsible Accounting Standards Act 
of 2022''.

SEC. 2. ACCOUNTING PRINCIPLES STANDARD SETTING BODY REFORMS.

    (a) Administrative Procedures for Adoption of Accounting 
Principles.--Section 19(b) of the Securities Act of 1933 (15 U.S.C. 
77s(b)) is amended by adding at the end the following:
            ``(3) Administrative procedures for adoption of accounting 
        principles.--When adopting an accounting principle, the 
        standard setting body described in paragraph (1) shall--
                    ``(A) follow procedures that are as close as 
                practicable to those requirements for a Federal agency 
                issuing a rule under chapter 5 of title 5, United 
                States Code (commonly referred to as the 
                `Administrative Procedure Act'); and
                    ``(B) carry out the cost benefit analysis described 
                under section 6(a)(3)(C) of Executive Order 12866 for a 
                significant regulatory action, to the extent the 
                requirements for such analysis relate to the efficient 
                functioning of the economy and private markets, and the 
                cost of businesses complying with the action.''.
    (b) Open Meeting Requirement.--Section 19(b) of the Securities Act 
of 1933 (15 U.S.C. 77s(b)), as amended by subsection (a), is further 
amended by adding at the end the following:
            ``(4) Open meeting requirement.--The requirements under 
        section 552b of title 5, United States Code (commonly referred 
        to as the `Government in the Sunshine Act') shall apply to a 
        standard setting body described in paragraph (1) to the same 
        extent as such requirements apply to an agency.''.
    (c) Testimony by the Head of the Standard Setting Body.--Section 
19(b) of the Securities Act of 1933 (15 U.S.C. 77s(b)), as amended by 
subsection (b), is further amended by adding at the end the following:
            ``(5) Congressional testimony.--The head of each standard 
        setting body described in paragraph (1) shall annually testify 
        before the Committee on Financial Services of the House of 
        Representatives and the Committee on Banking, Housing, and 
        Urban Affairs of the Senate.''.
    (d) Report on Implementation.--Not later than the end of the 3-
month period beginning on the date of enactment of this Act, the Chief 
Accountant of the Securities and Exchange Commission, in consultation 
with the standard setting body described under section 19(b)(1) of the 
Securities Act of 1933, shall issue a report to the Congress describing 
the steps taken by the standard setting body to implement the 
requirements in the amendments made by this section.
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