Fostering Innovation Act of 2017

Bill: 115-hr-1645
Sponsor: full_name: Rep. Sinema, Kyrsten [D-AZ-9]
Introduced: 2017-03-21
Policy area: Finance and Financial Sector
Subjects: Accounting and auditing

Business records

Government information and archives

Securities
Latest action: action_date: 2017-11-28
text: Placed on the Union Calendar, Calendar No. 315.

Summaries:
action_date: 2017-03-21
action_desc: Introduced in House
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;to 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 fifth anniversary 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;10th anniversary 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>

action_date: 2017-11-28
action_desc: Reported to House without amendment
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;to 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 fifth anniversary 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;10th anniversary 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: I 115th CONGRESS 1st Session H. R. 1645 IN THE HOUSE OF REPRESENTATIVES March 21, 2017 Ms. Sinema (for herself and Mr. Hollingsworth ) introduced the following bill; which was referred to the Committee on Financial Services 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) 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 fifth anniversary of 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; (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. (2) Expiration of temporary exemption An issuer ceases to be eligible for the exemption described under paragraph (1) at the earliest of— (A) the last day of the fiscal year of the issuer following the tenth anniversary of 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; (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. (3) Definitions For purposes of this subsection: (A) Average annual gross revenues The term average annual gross revenues means the total gross revenues of an issuer over its most recently completed three fiscal years divided by three. (B) Emerging growth company The term emerging growth company has the meaning given such term under section 3 of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c ). (C) Large accelerated filer The term large accelerated filer has the meaning given that term under section 240.12b–2 of title 17, Code of Federal Regulations, or any successor thereto. .

tv_txt: IB Union Calendar No. 315 115th CONGRESS 1st Session H. R. 1645 [Report No. 115–425] IN THE HOUSE OF REPRESENTATIVES March 21, 2017 Ms. Sinema (for herself and Mr. Hollingsworth ) introduced the following bill; which was referred to the Committee on Financial Services November 28, 2017 Additional sponsors: Mr. Hultgren , Mr. Gottheimer , Mrs. Wagner , Mr. Pittenger , Mr. Luetkemeyer , Mr. Delaney , Mr. Massie , Mr. Ross , Mr. Emmer , Mr. Hill , Mr. MacArthur , Mr. Foster , Mr. Stivers , and Mr. Messer November 28, 2017 Committed to the Committee of the Whole House on the State of the Union and ordered to be printed 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) 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 fifth anniversary of 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; (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. (2) Expiration of temporary exemption An issuer ceases to be eligible for the exemption described under paragraph (1) at the earliest of— (A) the last day of the fiscal year of the issuer following the tenth anniversary of 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; (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. (3) Definitions For purposes of this subsection: (A) Average annual gross revenues The term average annual gross revenues means the total gross revenues of an issuer over its most recently completed three fiscal years divided by three. (B) Emerging growth company The term emerging growth company has the meaning given such term under section 3 of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c ). (C) Large accelerated filer The term large accelerated filer has the meaning given that term under section 240.12b–2 of title 17, Code of Federal Regulations, or any successor thereto. .

November 28, 2017 Committed to the Committee of the Whole House on the State of the Union and ordered to be printed