Streamlining Public Company Accounting Oversight Act
This bill dissolves the Public Company Accounting Oversight Board and creates the Office of Public Accounting Oversight within the Securities and Exchange Commission. The board is a nonprofit corporation that regulates the audits of publicly traded companies.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5489 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 5489
To amend the Sarbanes-Oxley Act of 2002 to transfer the Public Company
Accounting Oversight Board to the Securities and Exchange Commission,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 5, 2021
Mr. Huizenga introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Sarbanes-Oxley Act of 2002 to transfer the Public Company
Accounting Oversight Board to the Securities and Exchange Commission,
and for other purposes.
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 ``Streamlining Public Company
Accounting Oversight Act''.
SEC. 2. TRANSFER OF PUBLIC COMPANY ACCOUNTING OVERSIGHT BOARD TO
SECURITIES AND EXCHANGE COMMISSION.
(a) Global Amendments.--Title I of the Sarbanes-Oxley Act of 2002
(15 U.S.C. 7211 et seq.) is amended--
(1) in the title heading, by striking ``PUBLIC COMPANY
ACCOUNTING OVERSIGHT BOARD'' and inserting ``OFFICE OF PUBLIC
ACCOUNTING OVERSIGHT'';
(2) by striking ``Public Company Accounting Oversight
Board'' each place it appears and inserting ``Office of Public
Accounting Oversight'';
(3) by striking ``the Board'' each place it appears and
inserting ``the Office'';
(4) by striking ``The Board'' each place it appears and
inserting ``The Office''; and
(5) by striking ``the Board's'' each place it appears and
inserting ``the Office's''.
(b) Repeals.--Sections 104, 105, and 107 of the Sarbanes-Oxley Act
of 2002 (15 U.S.C. 7214; 15 U.S.C. 7215; 15 U.S.C. 7217) are repealed.
(c) References.--Beginning on the date that is 2 years after the
date of the enactment of this Act, any reference to the Public Company
Accounting Oversight Board in any law, regulation, map, document,
record, or other paper of the United States shall be deemed to be a
reference to the Office of Public Accounting Oversight of the Office of
the Chief Accountant of the Securities and Exchange Commission.
(d) Termination of Existing Board.--The Public Company Accounting
Oversight Board shall terminate on the date that is 2 years after the
date of the enactment of this Act.
SEC. 3. ESTABLISHMENT; ADMINISTRATIVE PROVISIONS.
Section 101 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7211) is
amended--
(1) by amending subsection (a) to read as follows:
``(a) Establishment of Office.--There is established in the Office
of the Chief Accountant of the Commission an Office of Public
Accounting Oversight, to oversee the audit of companies that are
subject to the securities laws, and related matters, in order to
protect the interests of investors and further the public interest in
the preparation of informative, accurate, and independent audit
reports.'';
(2) by amending subsection (b) to read as follows:
``(b) Director.--The Chief Accountant of the Office of the Chief
Accountant of the Commission shall serve as the Director of the Office
of Public Accounting Oversight.'';
(3) in subsection (c)--
(A) in the heading, by striking ``the Board'' and
inserting ``the Office'';
(B) by striking ``, subject to action by the
Commission under section 107, and once a determination
is made by the Commission under subsection (d) of this
section'';
(C) in paragraph (3), by striking ``section 104''
and inserting ``subsection (e)'';
(D) in paragraph (4), by striking ``section 105''
and inserting ``subsection (f)'';
(E) in paragraph (5)--
(i) by striking ``the Board (or the
Commission, by rule or order)'' and inserting
``the Commission''; and
(ii) by inserting ``and'' after the
semicolon;
(F) in paragraph (6)--
(i) by striking ``the rules of the Board''
and inserting ``the rules of the Commission'';
and
(ii) by striking ``; and'' and inserting a
period; and
(G) by striking paragraph (7);
(4) in subsection (d)--
(A) by striking ``The members of the Board'' and
inserting ``The Chief Accountant of the Office of the
Chief Accountant of the Commission'';
(B) by striking ``270 days after the date of
enactment of this Act'' and inserting ``1 year after
the date of the enactment of the Streamlining Public
Company Accounting Oversight Act''; and
(C) by striking the last sentence;
(5) by striking subsections (e), (f), and (g);
(6) by inserting after subsection (d) the following:
``(e) Inspections of Registered Public Accounting Firms.--The
Office shall conduct a continuing program of inspections to assess the
degree of compliance of each registered public accounting firm and
associated persons of that firm with this Act, the rules of the
Commission, or professional standards, in connection with its
performance of audits, issuance of audit reports, and related matters
involving issuers.
``(f) Investigations and Disciplinary Proceedings.--The Commission
shall establish, by rule, fair procedures for the investigation and
disciplining of registered public accounting firms and associated
persons of such firms.'';
(7) by redesignating subsection (h) as subsection (g); and
(8) in the heading of subsection (g), as so redesignated,
by striking ``the Board'' and inserting ``the Office''.
SEC. 4. REGISTRATION WITH THE OFFICE.
Section 102 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7212) is
amended--
(1) in the section heading by striking ``the board'' and
inserting ``the office'';
(2) in subsection (b)(2)(H), by striking ``the Board or
the''; and
(3) in subsection (c)(2), by striking `` for purposes of
sections 105(d) and 107(c)''.
SEC. 5. AUDITING, QUALITY CONTROL, STANDARDS, AND RULES.
Section 103 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7213) is
amended--
(1) in the heading, by striking ``and Independence
Standards'' and inserting ``Standards, and'';
(2) in subsection (a)(3)--
(A) in subparagraph (A)(i), by striking ``, subject
to the terms of section 107,'';
(B) by striking subparagraph (B); and
(C) by redesignating subparagraph (C) as
subparagraph (B);
(3) in subsection (c) in the heading of paragraph (2), by
striking ``Board'' and inserting ``Office''; and
(4) in subsection (d), by striking ``101(h)'' and inserting
``101(g)''.
SEC. 6. FOREIGN PUBLIC ACCOUNTING FIRMS.
Section 106 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7216) is
amended--
(1) in the heading of subsection (a)(2), by striking
``Board'' and inserting ``Office''; and
(2) in subsection (c)--
(A) by striking ``and the Board, subject to the
approval of the Commission, may,''; and
(B) by striking ``(or Board)''.
SEC. 7. FUNDING.
Section 109 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7219) is
amended--
(1) by amending subsection (b) to read as follows:
``(b) Annual Budgets.--
``(1) Standard setting body.--The standard setting body
referred to in subsection (a) shall establish a budget for each
fiscal year, which shall be reviewed and approved according to
their respective internal procedures not less than 1 month
prior to the commencement of the fiscal year to which the
budget pertains.
``(2) The office.--The Commission shall establish the
budget for the Office for each fiscal year.'';
(2) in subsection (c)--
(A) by amending paragraph (1) to read as follows:
``(1) Recoverable budget expenses.--
``(A) Standard setting body.--The budget of the
standard setting body referred to in subsection (a) for
each fiscal year shall be payable from annual
accounting support fees, in accordance with subsections
(d) and (e). Accounting support fees and other receipts
of such standard-setting body shall not be considered
public monies of the United States.
``(B) The office.--The budget of the Office
(reduced by any registration or annual fees received
under section 102(f) for the year preceding the year
for which the budget is being computed) for each fiscal
year may be payable from annual accounting support
fees, in accordance with subsections (d) and (e).
Accounting support fees and other receipts of the
Office.'';
(B) in paragraph (2), by striking ``shall'' and
inserting ``may'';
(3) in subsection (d)--
(A) in the heading, by striking ``the Board'' and
inserting ``the Office'';
(B) in paragraph (1), by striking ``The Board shall
establish, with the approval of the Commission,'' and
inserting ``The Commission may establish'';
(C) in paragraph (2), by striking ``shall'' and
inserting ``may''; and
(D) by striking paragraph (3);
(4) in subsection (j)--
(A) by striking ``either the Board,''; and
(B) by striking ``, or both,''; and
(5) by striking subsection (k).
SEC. 8. DEFINITIONS.
Section 110 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7220) is
amended--
(1) by redesignating paragraphs (5) and (6) as paragraphs
(6) and (7); and
(2) by inserting after paragraph (4) the following:
``(5) Office.--The term `Office' means the Office of Public
Accounting Oversight of the Office of the Chief Accountant of
the Commission.''.
SEC. 9. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Definitions.--Section 2(a)(9)(C) of the Sarbanes-Oxley Act of
2002 (15 U.S.C. 7201) is amended by striking ``, 101(c), 105, and
107(c) and the rules of the Board and Commission issued thereunder''
and inserting ``and 101(c) and the rules of the Commission
thereunder''.
(b) Exemption Authority.--Section 201(b) of the Sarbanes-Oxley Act
of 2002 (15 U.S.C. 7231(b)) is amended--
(1) by striking ``The Board may'' and inserting ``The
Commission may''; and
(2) by striking ``in the same manner as for rules of the
Board under section 107.''.
(c) Self-Regulatory Organization.--Section 603(y)(3) of the
Consumer Credit Protection Act (15 U.S.C. 1681a(y)(3)) is amended by
striking ``any entity established under title I of the Sarbanes-Oxley
Act of 2002,''.
SEC. 10. RULE OF CONSTRUCTION WITH RESPECT TO COOPERATIVE ARRANGEMENTS.
Nothing in this Act, or the amendments made by this Act, shall be
construed to invalidate or otherwise affect a cooperative arrangement
between the Public Company Accounting Oversight Board and a foreign
auditor oversight authority (as defined in section 2(a) of the
Sarbanes-Oxley Act of 2002 (15 U.S.C. 7201(a))) in effect on the date
that is 2 years after the date of the enactment of this Act.
SEC. 11. REGULATIONS.
The Securities and Exchange Commission may issue such regulations
as may be necessary to carry out this Act.
SEC. 12. EFFECTIVE DATE.
The amendments made by this Act shall take effect on the date that
is 2 years after the date of the enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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