Title: Responsible Accounting Standards Act of 2019
Policy area: Finance and Financial Sector

Summary:
Responsible Accounting Standards Act of 2019
This bill requires a standard setting body to meet certain requirements when establishing generally accepted accounting principles for purposes of securities laws. Specifically, the standard setting body must follow certain administrative procedures when adopting accounting principles.
The Securities and Exchange Commission may recognize an accounting principle if the standard setting body considers the impact the accounting principle will have on the U.S. economy, market stability, and the availability of credit.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4565 Introduced in House (IH)]

<DOC>






116th CONGRESS
  1st Session
                                H. R. 4565

   To amend the Securities Act of 1933 to require the Securities and 
    Exchange Commission to issue a rule to apply the Administrative 
Procedure Act to the adoption of accounting principles by the standard 
setting body, and to require the standard setting body to consider, in 
adopting accounting principles, the impact such principles will have on 
the broader U.S. economy, market stability, and availability of credit.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 27, 2019

 Mr. Luetkemeyer introduced the following bill; which was referred to 
                  the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
   To amend the Securities Act of 1933 to require the Securities and 
    Exchange Commission to issue a rule to apply the Administrative 
Procedure Act to the adoption of accounting principles by the standard 
setting body, and to require the standard setting body to consider, in 
adopting accounting principles, the impact such principles will have on 
the broader U.S. economy, market stability, and availability of credit.

    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 2019''.

SEC. 2. 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.--The Commission shall issue a rule requiring a 
        standard setting body described in paragraph (1) to follow 
        procedures when adopting an accounting principle 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').''.

SEC. 3. CONSIDERATION OF THE IMPACT OF ACCOUNTING PRINCIPLES ON THE 
              BROADER U.S. ECONOMY, MARKET STABILITY, AND AVAILABILITY 
              OF CREDIT.

    (a) In General.--Section 19(b)(1)(A)(v) of the Securities Act of 
1933 (15 U.S.C. 77s(b)) is amended by inserting after ``investors'' the 
following: ``, and the impact such accounting principles will have on 
the broader U.S. economy, market stability, and availability of credit 
(particularly for low- and moderate-income borrowers)''.
    (b) Report.--Not later than the end of the 6-month period beginning 
on the date of enactment of this Act, any standard setting body 
described in section 19(b)(1) of the Securities Act of 1933 shall issue 
a report to the Securities and Exchange Commission and the Congress 
containing a list of changes the standard setting body has made or will 
make in order to ensure that the standard setting body takes into 
consideration the impact of accounting principles on the broader U.S. 
economy, market stability, and availability of credit, as required by 
the amendment made under subsection (a).
                                 <all>