Responsible Accounting Standards Act of 2019

Bill: 116-hr-4565
Sponsor: full_name: Rep. Luetkemeyer, Blaine [R-MO-3]
Introduced: 2019-09-27
Policy area: Finance and Financial Sector
Subjects: Accounting and auditing

Administrative law and regulatory procedures

Banking and financial institutions regulation

Congressional oversight

Credit and credit markets

Economic performance and conditions

Government information and archives

Government studies and investigations

Securities and Exchange Commission (SEC)
Latest action: action_date: 2019-09-27
text: Referred to the House Committee on Financial Services.

Summaries:
action_date: 2019-09-27
action_desc: Introduced in House
text: <p><b>Responsible Accounting Standards Act of 2019</b></p> <p>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. </p> <p>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. </p>

tv_txt: I 116th CONGRESS 1st Session H. R. 4565 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.

1. Short title This Act may be cited as the Responsible Accounting Standards Act of 2019 . 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 ). . 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).