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![handle is hein.congrecreports/crptxaauu0001 and id is 1 raw text is: AUTHENTICATEO
U.S. GOVERNMENT
INFORMATION
Gp
115TH CONGRESS REPORT
1st Session HOUSE OF REPRESENTATIVES 115-425
FOSTERING INNOVATION ACT OF 2017
NOVEMBER 28, 2017.-Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
Mr. HENSARLING, from the Committee on Financial Services,
submitted the following
REPORT
together with
MINORITY VIEWS
[To accompany H.R. 1645]
[Including cost estimate of the Congressional Budget Office]
The Committee on Financial Services, to whom was referred the
bill (H.R. 1645) to amend the Sarbanes-Oxley Act of 2002 to pro-
vide a temporary exemption for low-revenue issuers from certain
auditor attestation requirements, having considered the same, re-
port favorably thereon without amendment and recommend that
the bill do pass.
PURPOSE AND SUMMARY
On March 21, 2017, Representatives Kyrsten Sinema and Trey
Hollingsworth introduced H.R. 1645, the Fostering Innovation Act
of 2017, which amends Section 404(b) of the Sarbanes-Oxley Act
(SOX) to extend the exemption available to emerging growth com-
panies (EGCs) from the auditor attestation of a company's internal
controls over financial reporting requirement beyond the five-year
period that applies under current law. Specifically, the bill extends
the exemption until the earlier of ten years after the EGC went
public, the end of the fiscal year in which the EGC's average gross
revenues exceed $50 million, or when the EGC qualifies with the
Securities and Exchange Commission (SEC) as a large accelerated
filer, $700 million public float, which is the number of shares avail-
able to trade freely between investors that are not controlled by
corporate officers or promoters.
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