Greenlighting Growth Act
This bill limits the financial information an emerging growth company (EGC) must submit to the Securities and Exchange Commission. An EGC is a type of issuer that qualifies for reduced disclosures after its initial public offering (IPO) if its annual gross revenues are below a specific dollar amount. For example, an EGC must currently provide two years of financial statements after its IPO, rather than the three required for other companies.
Under the bill, an emerging growth company is not required to present certain financial statements from acquired companies. This applies to statements from the time period prior to the earliest audited period presented in connection with the EGC’s IPO. In addition, the bill provides that no issuer that was formerly an EGC is required to present financial statements older than its earliest audit performed in connection with its IPO.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3343 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 3343
To amend the Federal securities laws to specify the periods for which
financial statements are required to be provided by an emerging growth
company, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 13, 2025
Mr. Haridopolos (for himself and Mrs. Wagner) introduced the following
bill; which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Federal securities laws to specify the periods for which
financial statements are required to be provided by an emerging growth
company, 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 ``Greenlighting Growth Act''.
SEC. 2. FINANCIAL STATEMENT REPORTING REQUIREMENTS FOR EMERGING GROWTH
COMPANIES.
(a) Securities Act of 1933.--Section 7(a)(2) of the Securities Act
of 1933 (15 U.S.C. 77g(a)(2)) is amended--
(1) in subparagraph (A), by striking ``and'' at the end;
(2) by redesignating subparagraph (B) as subparagraph (C);
and
(3) by inserting after subparagraph (A) the following:
``(B) need not present acquired company financial
statements or information otherwise required under
section 210.3-05 or section 210.8-04 of title 17, Code
of Federal Regulations, or any successor thereto, for
any period prior to the earliest audited period of the
emerging growth company presented in connection with
its initial public offering and, thereafter, in no
event shall an issuer that was an emerging growth
company but is no longer an emerging growth company be
required to present financial statements of the issuer
(or acquired company financial statements or
information otherwise required under section 210.3-05
or section 210.8-04 of title 17, Code of Federal
Regulations, or any successor thereto) for any period
prior to the earliest audited period of the emerging
growth company presented in connection with its initial
public offering; and''.
(b) Securities Exchange Act of 1934.--Section 12(b)(1)(K) of the
Securities Exchange Act of 1934 (15 U.S.C. 78l(b)(1)(K)) is amended by
striking ``firm;'' and inserting ``firm, provided that the application
of an emerging growth company need not present acquired company
financial statements or information otherwise required under section
210.3-05 or section 210.8-04 of title 17, Code of Federal Regulations,
or any successor thereto, for any period prior to the earliest audited
period of the emerging growth company presented in connection with its
application and, thereafter, in no event shall an issuer that was an
emerging growth company but is no longer an emerging growth company be
required to present financial statements of the issuer (or acquired
company financial statements or information otherwise required under
section 210.3-05 or section 210.8-04 of title 17, Code of Federal
Regulations, or any successor thereto) for any period prior to the
earliest audited period of the emerging growth company presented in
connection with any application under subsection (b) of this
section;''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Committee Consideration and Mark-up Session Held
Ordered to be Reported (Amended) by the Yeas and Nays: 49 - 2.
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-119.
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-119.
Placed on the Union Calendar, Calendar No. 89.
Mr. Hill (AR) moved to suspend the rules and pass the bill, as amended.
Considered under suspension of the rules. (consideration: CR H3503-3504)
DEBATE - The House proceeded with forty minutes of debate on H.R. 3343.
Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H3503)
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On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H3503)
Motion to reconsider laid on the table Agreed to without objection.
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.