Fostering Innovation Act of 2017

Bill: 115-s-2126
Sponsor: full_name: Sen. Tillis, Thomas [R-NC]
Introduced: 2017-11-15
Policy area: Finance and Financial Sector
Subjects: Accounting and auditing

Administrative law and regulatory procedures

Business investment and capital

Corporate finance and management

Securities

Securities and Exchange Commission (SEC)
Latest action: action_date: 2018-06-26
text: Committee on Banking, Housing, and Urban Affairs. Hearings held. Hearings printed: S.Hrg. 115-354.

Summaries:
action_date: 2017-11-15
action_desc: Introduced in Senate
text: <p><b>Fostering Innovation Act of 2017</b></p> <p>This bill amends the Sarbanes-Oxley Act of 2002 to establish a temporary exemption&nbsp;from the requirement that each registered public accounting firm that prepares or issues an audit report for an issuer of securities (other than an emerging growth company) shall attest to, and report on, the internal control assessment made by the management of the issuer. Specifically, this requirement shall not apply with respect to an audit report prepared for an issuer that:</p> <ul> <li>ceased to be an emerging growth company on the last day of its fiscal year following the five-year period beginning on the date of its first sale of common equity securities, </li> <li>had average annual gross revenues of less than $50 million as of its most recently completed fiscal year, and </li> <li>is not a large accelerated filer. </li></ul> <p>An issuer shall&nbsp;cease to be eligible for the&nbsp;exemption at the earliest of: (1) the last day of the fiscal year following the&nbsp;10-year period beginning on the date of its&nbsp;first sale of common equity securities, (2) the last day of the fiscal year in which its average annual gross revenues exceed $50 million, or (3) when the issuer becomes a large accelerated filer. </p>

tv_txt: II 115th CONGRESS 1st Session S. 2126 IN THE SENATE OF THE UNITED STATES November 15, 2017 Mr. Tillis (for himself and Mr. Peters ) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To amend the Sarbanes-Oxley Act of 2002 to provide a temporary exemption for low-revenue issuers from certain auditor attestation requirements.

1. Short title This Act may be cited as the Fostering Innovation Act of 2017 . 2. Temporary exemption for low-revenue issuers Section 404 of the Sarbanes-Oxley Act of 2002 ( 15 U.S.C. 7262 ) is amended by adding at the end the following: (d) Temporary exemption for low-Revenue issuers (1) Definitions In this subsection— (A) the term average annual gross revenues means the total gross revenues of an issuer over its most recently completed 3 fiscal years divided by 3; (B) the term emerging growth company has the meaning given the term in section 3 of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c ); and (C) the term large accelerated filer has the meaning given the term in section 240.12b–2 of title 17, Code of Federal Regulations (or any successor regulation). (2) Low-revenue exemption Subsection (b) shall not apply with respect to an audit report prepared for an issuer that— (A) ceased to be an emerging growth company on the last day of the fiscal year of the issuer following the 5-year period beginning on the date of the first sale of common equity securities of the issuer pursuant to an effective registration statement under the Securities Act of 1933 ( 15 U.S.C. 77a et seq.); (B) had average annual gross revenues of less than $50,000,000 as of its most recently completed fiscal year; and (C) is not a large accelerated filer. (3) Expiration of temporary exemption An issuer ceases to be eligible for the exemption described under paragraph (1) on the earlier of— (A) the last day of the fiscal year of the issuer following the 10-year period beginning on the date of the first sale of common equity securities of the issuer pursuant to an effective registration statement under the Securities Act of 1933 ( 15 U.S.C. 77a et seq.); (B) the last day of the fiscal year of the issuer during which the average annual gross revenues of the issuer exceed $50,000,000; or (C) the date on which the issuer becomes a large accelerated filer. .