Instructions: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Input: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Investor, Shareholder, and Employee
Protection Act of 2002''.

SEC. 2. FINDINGS.

The Congress finds the following:
(1) The failure of accounting firms to provide accurate
audits of its clients is not a new or isolated problem.
(2) Accounting firms have been implicated in failed audits
that have cost investors billions of dollars when earnings
restatements sent stock prices tumbling.
(3) Auditors have an inherent conflict of interest. They
are hired, and fired, by their audit clients.
(4) This conflict of interest pressures auditors to sign
off on substandard financial statements rather than risk losing
a large client.
(5) Auditing a public company for the benefit of small as
well as large investors requires independence.
(6) Therefore the only truly independent audit is one by a
governmental agency.
(7) The Federal Bureau of Audits, closely regulated by the
Commission, will provide honest audits of all publicly traded
companies.

SEC. 3. ESTABLISHMENT OF BUREAU.

(a) Establishment.--There is hereby established within the
Commission an independent regulatory agency to be known as the Federal
Bureau of Audits.
(b) Function of the Bureau.--The Bureau shall conduct an annual
audit of the financial statements that are required to be submitted by
reporting issuers and to be certified under the securities laws or the
rules or regulations thereunder.
(c) Officers.--
(1) Bureau head.--The head of the Bureau shall be a
Director, who shall be appointed by the President, by and with
the advice and consent of the Senate.
(2) Additional officers.--There shall also be in the Bureau
a Deputy Director and an Inspector General, each of whom shall
be appointed by the President, by and with the advice and
consent of the Senate.
(3) Terms.--The Director, Deputy Director, and Inspector
General shall be appointed for terms of 12 years, except that--
(A) the first term of office of the Deputy Director
shall be eight years; and
(B) the first term of office of the Inspector
General shall be 4 years.
(d) Independence.--Except as provided in sections 4 and 5, in the
performance of their functions, the officers, employees, or other
personnel of the Bureau shall not be responsible to or subject to the
supervision or direction of any officer, employee, or agent of any
other part of the Commission.
(e) Administrative Support.--The Commission shall provide to the
Bureau such support and facilities as the Director determines it needs
to carry out its functions.
(f) Rules.--The Bureau is authorized to establish such procedural
and administrative rules as are necessary to the exercise of its
functions, but the Bureau may not establish any auditing standards
within the jurisdiction of the Commission under sections 4 and 5.
(g) Additional Authority.--In carrying out any of its functions,
the Bureau shall have the power to hold hearings, sign and issue
subpoenas, administer oaths, examine witnesses, and receive evidence at
any place in the United States it may designate. The Bureau may, by one
or more of its officers or by such agents as it may designate, conduct
any hearing or other inquiry necessary or appropriate to its functions,
except that nothing in this subsection shall be deemed to supersede the
provisions of section 556 of title 5, United States Code relating to
hearing examiners.
(h) Conflict of Interest Provisions.--A person previously employed
by the Bureau may not accept employment or compensation from an issuer
audited by the Bureau or an accountant that provides audit related
services to an issuer audited by the Bureau for 10 years after the last
day of employment at the Bureau. Any current employee of the Bureau
shall be required to place all investments in a blind trust, in
accordance with regulations prescribed by the Commission. The employees
of the Bureau who conduct the audits shall be exempt from the civil
service pay system under section 4802 of title 5, United States Code,
and shall be paid salaries that are competitive with similar private
sector employment.
(i) Legal Representation.--Except as provided in section 518 of
title 28, United States Code, relating to litigation before the Supreme
Court, attorneys designated by the Director of the Bureau may appear
for, and represent the Bureau in, any civil action brought in
connection with any function carried out by the Bureau pursuant to this
Act or as otherwise authorized by law.

SEC. 4. ASSUMPTION OF AUTHORITY BY COMMISSION OVER AUDITING STANDARDS.

(a) Assumption of Authority.--Pursuant to its authority under the
securities laws to require the certification, in accordance with the
rules of the Commission, of financial statements and other documents of
reporting issuers of securities, the Commission shall, by rule,
establish and revise as necessary auditing standards for audits of such
financial statements.
(b) Incorporation of Current Standards.--In adopting auditing
standards under this section, the Commission shall incorporate
generally accepted auditing standards in effect on the date of
enactment of this Act, with such modifications as the Commission
determines are necessary and appropriate in the public interest and for
the protection of investors.
(c) Additional Requirements for Rules.--The rules prescribed by the
Commission under subsection (a)--
(1) shall be available for public comment for not less than
90 days;
(2) shall be prescribed not less than 180 days after the
date of enactment of this Act; and
(3) shall be effective on the first January 1 that occurs
after the end of such 180 days.

SEC. 5. FEES FOR THE RECOVERY OF COSTS OF OPERATIONS.

(a) In General.--The Commission shall in accordance with this
section assess and collect a fee on each reporting issuer whose
financial statements are audited by the Bureau. This section applies as
of the first fiscal year that begins after the date of enactment of
this Act (referred to in this section as the ''first applicable fiscal
year'').
(b) Total Fee Revenues; Individual Fee Amounts.--The total fee
revenues collected under subsection (a) for a fiscal year shall be the
amounts appropriated under subsection (d)(2) for such fiscal year.
Individual fees shall be assessed by the Commission on the basis of an
estimate by the Commission of the amount necessary to ensure that the
sum of the fees collected for such fiscal year equals the amount so
appropriated.
(c) Fee Waiver or Reduction.--The Commission shall grant a waiver
from or a reduction of a fee assessed under subsection (a) if the
Commission finds that the fee to be paid will exceed the anticipated
present and future costs of the operations of the Bureau.
(d) Crediting and Availability of Fees.--
(1) In general.--Fees collected for a fiscal year pursuant
to subsection (a) shall be credited to the appropriation
account for salaries and expenses of the Bureau and shall be
available until expended without fiscal year limitation.
(2) Appropriations.--
(A) First fiscal year.--For the first applicable
fiscal year, there shall be available for the salaries
and expenses of the Bureau $5,150,000,000.
(B) Subsequent fiscal years.--For each of the four
fiscal years following the first applicable fiscal
year, there shall be available for the salaries and
expenses of the Bureau an amount equal to the amount
made available by paragraph (1) for the first
applicable fiscal year, multiplied by the adjustment
factor for such fiscal year (as defined in subsection
(f)).
(e) Collection of Unpaid Fees.--In any case where the Commission
does not receive payment of a fee assessed under subsection (a) within
30 days after it is due, such fee shall be treated as a claim of the
United States Government subject to subchapter II of chapter 37 of
title 31, United States Code.
(f) Definition of Adjustment Factor.--For purposes of this section,
the term ''adjustment factor'' applicable to a fiscal year is the lower
of--
(1) the Consumer Price Index for all urban consumers (all
items; United States city average) for April of the preceding
fiscal year divided by such Index for April of the first
applicable fiscal year; or
(2) the total of discretionary budget authority provided
for programs in categories other than the defense category for
the immediately preceding fiscal year (as reported in the
Office of Management and Budget sequestration preview report,
if available, required under section 254(c) of the Balanced
Budget and Emergency Deficit Control Act of 1985) divided by
such budget authority for the first applicable fiscal year (as
reported in the Office of Management and Budget final
sequestration report submitted for such year).
For purposes of this subsection, the terms ''budget authority'' and
''category'' have the meaning given such terms in the Balanced Budget
and Emergency Deficit Control Act of 1985.''.

SEC. 5. DEFINITIONS.

As used in this Act:
(1) Commission.--The term ''Commission'' means the
Securities and Exchange Commission.
(2) Securities laws.--The term ''securities laws'' means
the Securities Act of 1933 (15 U.S.C. 77a et seq.), the
Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), the
Trust Indenture Act of 1939 (15 U.S.C. 77aaa et seq.), the
Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.), the
Investment Advisers Act of 1940 (15 U.S.C. 80b et seq.), and
the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa
et seq.).
(3) Reporting issuer.--The term ''reporting issuer'' means
any registrant under section 12 of the Securities Exchange Act
of 1934 (15 U.S.C. 78l) or any other issuer required to file
periodic reports under section 13 or 15 of such Act (15 U.S.C.
78m, 78o).
Output:
Investor, Shareholder, and Employee Protection Act of 2002 - Establishes within the Securities and Exchange Commission (SEC) an independent regulatory agency to be known as the Federal Bureau of Audits, which shall conduct an annual audit of the financial statements submitted to the SEC by reporting issuers. Requires the President to appoint the Director of the Bureau, by and with the advice and consent of the Senate.Declares that officers, employees, and other Bureau personnel shall not be responsible to or subject to the supervision or direction of Commission personnel. Prohibits Bureau employees from receiving employment or compensation from an issuer audited by the Bureau, or any accountant that provides audit-related services to a Bureau-audited issuer, for ten years after employment with the Bureau.Requires the SEC to establish standards for such audits, incorporating generally accepted auditing standards in effect on the enactment of this Act, with any necessary and appropriate modifications.Directs the SEC to assess and collect a fee from each reporting issuer whose financial statements are audited by the Bureau.