118 HR 8339 IH: SEC Reform and Restructuring Act
U.S. House of Representatives
2024-05-10
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; table of contents(a)This Act may be cited as the SEC Reform and Restructuring Act
. (b)The table of contents for this Act is as follows:Sec. 1. Short title; table of contents.Title I—SEC Regulatory AccountabilitySec. 101. Consideration by the Securities and Exchange Commission of the costs and benefits of regulations and certain other agency actions of the Commission.Sec. 102. Sense of Congress relating to other regulatory entities.Sec. 103. Accountability provision relating to other regulatory entities.Title II—SEC TransparencySec. 201. Semiannual testimony to Congress regarding activities of the Securities and Exchange Commission.Title III—SEC CybersecuritySec. 301. GAO audit of information technology infrastructure and handling of data.Title IV—Review the Expansion of GovernmentSec. 401. Periodic review of final rules required.Sec. 402. Consideration of cumulative effect of regulations required.Title V—Streamlining Public Company Accounting OversightSec. 501. Transfer of Public Company Accounting Oversight Board to Securities and Exchange Commission.Sec. 502. Establishment; administrative provisions.Sec. 503. Registration with the Office.Sec. 504. Auditing, quality control, standards, and rules.Sec. 505. Foreign public accounting firms.Sec. 506. Funding.Sec. 507. Definitions.Sec. 508. Technical and conforming amendments.Sec. 509. Rule of construction with respect to cooperative arrangements.Sec. 510. Regulations.Sec. 511. Effective date.Title VI—Study Regarding Major Rules Issued by the Securities and Exchange CommissionSec. 601. GAO study regarding major rules.Title VII—Minimum public comment periodSec. 701. Minimum public comment period.<enum>I</enum><header>SEC Regulatory Accountability</header><section id="H1714800A0A874E20B83FCA72148E3611"><enum>101.</enum><header>Consideration by the Securities and Exchange Commission of the costs and benefits of regulations and certain other agency actions of the Commission</header><text display-inline="no-display-inline">Section 23 of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78w">15 U.S.C. 78w</external-xref>) is amended by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="H50925F5507C04C9E8BF25E9C8EA0DADC" style="OLC"><subsection id="H9AEA5DAA4A93439AA7B3BBC7766E0FC0"><enum>(e)</enum><header>Consideration of costs and benefits</header><paragraph id="HCFB3269503354AA7A79E125A8126A03C"><enum>(1)</enum><header>Considerations before proposing a regulation</header><text>Before proposing a regulation, the Commission shall—</text><subparagraph id="HF7BFBD1985D94B4E89A5D1C9271170A3"><enum>(A)</enum><text display-inline="yes-display-inline">clearly identify the nature and source of the problem that the regulation is designed to address, as well as assess the significance of that problem, to enable assessment of whether any new regulation is warranted; and</text></subparagraph><subparagraph id="HB2711F1A3B024B059EA67F60EEA3A96A"><enum>(B)</enum><text display-inline="yes-display-inline">ensure that the regulation would be within the Commission’s jurisdiction and that the Commission has sufficient experience and expertise to regulate the subject matter covered by the regulation.</text></subparagraph></paragraph><paragraph id="HC0C0C02B6765466CAED47F9C9D3D9934"><enum>(2)</enum><header>Requirements for issuing a proposed or final regulation</header><subparagraph id="H5552CD0AAEAF414684C5A8A1B41C05BC"><enum>(A)</enum><header>In general</header><text>In issuing a proposed or final regulation, the Commission shall—</text><clause id="H5FC368CBF74C4311B43FAB803165BC8D"><enum>(i)</enum><text display-inline="yes-display-inline">clearly identify the market participants who will be impacted by the regulation;</text></clause><clause id="H348077D9FE18425E97B762313CF0CAFA"><enum>(ii)</enum><text display-inline="yes-display-inline">utilize the Chief Economist of the Commission to assess the costs and benefits, both qualitative and quantitative, of the regulation, both on the regulation’s own and cumulatively with other existing and proposed regulations;</text></clause><clause id="H31D3855799E04123862CF15313D9AC3D"><enum>(iii)</enum><text>only issue the regulation if the Commission makes a reasoned determination that the benefits of the regulation justify the costs of the regulation;</text></clause><clause id="H04F189D9947E4C80B743937D70CE1781"><enum>(iv)</enum><text display-inline="yes-display-inline">identify and assess available alternatives to the regulation that were considered, including modification of an existing regulation;</text></clause><clause id="H667D1BF6AA4641B597756E70A1BE0E9E"><enum>(v)</enum><text display-inline="yes-display-inline">ensure that the regulation is accessible, consistent, written in plain language, and easy to understand; and</text></clause><clause id="HE17DEAF6EE7A44A2B4CA872E68EA6D4B"><enum>(vi)</enum><text display-inline="yes-display-inline">ensure that the length of the public comment period is commensurate with the complexity of the regulation and the expected public interest in the rulemaking.</text></clause></subparagraph><subparagraph id="HE03CC120E6F543BBAD3731EF67A9FA0C"><enum>(B)</enum><header>Inclusion of information in a proposed or final regulation</header><text>In issuing a proposed or final regulation, the Commission shall include in the regulation—</text><clause id="HA61E39F5305D4CA68F03E7CDAACF26B1"><enum>(i)</enum><text>the results of the identifications and assessments required under clauses (i) and (ii) of subparagraph (A) with respect to the regulation;</text></clause><clause id="HA2B7CC152FF747A0953E00354C464938"><enum>(ii)</enum><text display-inline="yes-display-inline">an explanation of why the regulation meets the regulatory objectives of the Commission more effectively than other available alternatives, including modification of an existing regulation;</text></clause><clause id="H5E2791606B6F473F8BE2D5DF8A9556C8"><enum>(iii)</enum><text display-inline="yes-display-inline">a description of how the Commission intends the regulation to interact with existing regulations and proposed regulations; and</text></clause><clause id="HB6A45D81B2A84CDF9E85CCBAC2AA96FF"><enum>(iv)</enum><text display-inline="yes-display-inline">a justification of the length of the public comment period for the regulation.</text></clause></subparagraph></paragraph><paragraph id="H56F548A92B9B45BCB2934A5B98C15B92"><enum>(3)</enum><header>Considerations and actions</header><subparagraph id="HC85093C4C8CC41558D531F44B04BED4C"><enum>(A)</enum><header>Required actions</header><text>In deciding whether and how to regulate, the Commission shall assess the costs and benefits of available regulatory alternatives, including the alternative of not regulating, and choose the approach that maximizes net benefits. Specifically, the Commission shall—</text><clause id="H7176B3245C034A22B7C83ED4006B91C9"><enum>(i)</enum><text display-inline="yes-display-inline">consistent with the requirements of section 3(f) (<external-xref legal-doc="usc" parsable-cite="usc/15/78c">15 U.S.C. 78c(f)</external-xref>), section 2(b) of the Securities Act of 1933 (<external-xref legal-doc="usc" parsable-cite="usc/15/77b">15 U.S.C. 77b(b)</external-xref>), section 202(c) of the Investment Advisers Act of 1940 (<external-xref legal-doc="usc" parsable-cite="usc/15/80b-2">15 U.S.C. 80b–2(c)</external-xref>), and section 2(c) of the Investment Company Act of 1940 (<external-xref legal-doc="usc" parsable-cite="usc/15/80a-2">15 U.S.C. 80a–2(c)</external-xref>), consider whether a rulemaking (both on the regulation’s own and cumulatively with other existing and proposed regulations), in addition to being in the interest of protecting investors, will promote efficiency, competition, and capital formation;</text></clause><clause id="HB257A135CBA8403DBD3D7BA8C052FBB8"><enum>(ii)</enum><text display-inline="yes-display-inline">evaluate whether, consistent with obtaining regulatory objectives, a regulation (both on the regulation’s own and cumulatively with other existing and proposed regulations) is tailored to impose the least burden on society, including market participants, individuals, businesses of differing sizes, and other entities (including State and local governmental entities), taking into account, to the extent practicable, the cumulative costs of regulations; and</text></clause><clause id="H1C60CDFF15ED462FB3DA18DB122E13BC"><enum>(iii)</enum><text>evaluate whether a regulation is inconsistent, incompatible, or duplicative of other Federal regulations.</text></clause></subparagraph><subparagraph id="H836749CBC067436188290267220BD53F"><enum>(B)</enum><header>Additional considerations</header><text display-inline="yes-display-inline">In addition, in making a reasoned determination under paragraph (2)(A)(iii) of the costs and benefits of a regulation, the Commission shall, to the extent that each is relevant to the particular regulation, take into consideration the impact of the regulation on—</text><clause id="H115187A1FA734B36AF437ECCCF85AE07"><enum>(i)</enum><text>investor choice;</text></clause><clause id="HA733A06BB3DC452788A03AC7C7CCE830"><enum>(ii)</enum><text>market liquidity in the securities markets;</text></clause><clause id="H98D7FEE02FC8419EA9047F2214A5DA3C"><enum>(iii)</enum><text>small businesses;</text></clause><clause id="H295969215CCC4B528CF7A69A8A51F4C6"><enum>(iv)</enum><text display-inline="yes-display-inline">competition in the marketplace;</text></clause><clause id="H2704EF52080342689C89FEB6816B7FED"><enum>(v)</enum><text>investor access; and</text></clause><clause id="HB685D578F5984A7E99469F9A226AC3C0"><enum>(vi)</enum><text>the United States’ economic competitiveness.</text></clause></subparagraph></paragraph><paragraph id="HD016DE87805C4D6DB84FEEC8F242CB55"><enum>(4)</enum><header>Post-adoption impact assessment</header><subparagraph id="H4D35D20834A846E59CD2D401CE10636D"><enum>(A)</enum><header>In general</header><text>Whenever the Commission issues a final regulation that is a <quote>major rule</quote> (as defined under section 804 of title 5, United States Code), it shall state, in the regulation, the following:</text><clause id="H41FF617CE1764B23A93FA652366745EF"><enum>(i)</enum><text display-inline="yes-display-inline">The purposes and intended consequences of the regulation.</text></clause><clause id="H0F500A968BCD41CA945060B13812ACF6"><enum>(ii)</enum><text display-inline="yes-display-inline">Appropriate post-implementation quantitative and qualitative metrics to measure the economic impact of the regulation and to measure the extent to which the regulation has accomplished the stated purposes.</text></clause><clause id="HEADE0F06474D44C2AD381EE0C49F36FE"><enum>(iii)</enum><text display-inline="yes-display-inline">The assessment plan that will be used, consistent with the requirements of subparagraph (B) and under the supervision of the Chief Economist, to assess whether the regulation has achieved the stated purposes.</text></clause><clause id="H4A28B10FE7CA455ABB9465CA33B9B1A3"><enum>(iv)</enum><text>Any unintended or negative consequences that the Commission foresees may result from the regulation.</text></clause></subparagraph><subparagraph id="H24712F37DFFC4B85912B5A40F1D384C7"><enum>(B)</enum><header>Requirements of assessment plan and report</header><clause id="H0C19935AE78749A8B12BC44073DDCFA0"><enum>(i)</enum><header>Requirements of plan</header><text display-inline="yes-display-inline">For each regulation described under subparagraph (A), the Chief Economist shall establish an assessment plan, which shall—</text><subclause id="HFD8459F98C594A4EAABFD89C4B5F098A"><enum>(I)</enum><text>consider the costs, benefits, and intended and unintended consequences of the regulation;</text></subclause><subclause id="H0BB03FE0BCE749BBB2A67DF0A4C7F329"><enum>(II)</enum><text>specify the data to be collected, the methods for collection and analysis of the data, and a date for completion of the assessment; and</text></subclause><subclause id="H817B928A79CB40CEAB837C9E5A5F84AA"><enum>(III)</enum><text>include an analysis of any jobs added or lost as a result of the regulation, differentiating between public and private sector jobs.</text></subclause></clause><clause id="HF802A486D55F410AA3DB31F6ECE86F7B"><enum>(ii)</enum><header>Timing of assessment plan report</header><text display-inline="yes-display-inline">A report on each completed assessment plan described under clause (i) shall be submitted by the Chief Economist to the Commission not later than the end of the 4-year period beginning on the date the applicable regulation is issued, unless the Commission, at the request of the Chief Economist, publishes at least 90 days before the end of such period a notice in the Federal Register extending the date and providing specific reasons why an extension is necessary.</text></clause><clause id="H0E34524D5E2E460A9DFC3A0AF8E29C0D"><enum>(iii)</enum><header>Public comment</header><text>Not later than 7 days after the Commission receives an assessment plan report under clause (ii), the Commission shall publish the report in the Federal Register for public comment.</text></clause></subparagraph></paragraph><paragraph id="H5CEFF3DCC85F4027ACDB4EDAFC342CF6"><enum>(5)</enum><header>Regulation defined</header><text display-inline="yes-display-inline">In this subsection, the term <term>regulation</term>—</text><subparagraph id="HDBFB64B0A4C94AB69385068C2D1E76C5"><enum>(A)</enum><text>means an agency statement of general applicability and future effect that is designed to implement, interpret, or prescribe law or policy or to describe the procedure or practice requirements of an agency, including rules, orders of general applicability, interpretive releases, and other statements of general applicability that the agency intends to have the force and effect of law; and</text></subparagraph><subparagraph id="HC5E3E4A326E34CB2A13D2DB47E31EE7D"><enum>(B)</enum><text>does not include—</text><clause id="H6C058A245ECC42829139FA72E72EAFCD"><enum>(i)</enum><text>a regulation issued in accordance with the formal rulemaking provisions of section 556 or 557 of title 5, United States Code;</text></clause><clause id="H4444BC2E4A8545CFA01317132939DDDB"><enum>(ii)</enum><text>a regulation that is limited to agency organization, management, or personnel matters;</text></clause><clause id="HB93E65FBD2014A179A7AAE38A600121A"><enum>(iii)</enum><text>a regulation promulgated pursuant to statutory authority that expressly prohibits compliance with this provision; and</text></clause><clause id="HEA6015E07AE54E8A8A730DED0ED20C04"><enum>(iv)</enum><text>a regulation that is certified by the agency to be an emergency action, if such certification is published in the Federal Register.</text></clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="HC470E4B893CA48F5846D633C14AFC58B"><enum>102.</enum><header>Sense of Congress relating to other regulatory entities</header><text display-inline="no-display-inline">It is the sense of the Congress that the Public Company Accounting Oversight Board should also follow the requirements of section 23(e) of the Securities Exchange Act of 1934.</text></section><section id="H82F7266559B041CFA381E42C348B19A7"><enum>103.</enum><header>Accountability provision relating to other regulatory entities</header><text display-inline="no-display-inline">A rule adopted by the Municipal Securities Rulemaking Board or any national securities association registered under section 15A of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78o-3">15 U.S.C. 78o–3</external-xref>) shall not take effect unless the Securities and Exchange Commission determines that, in adopting such rule, the Board or association has complied with the requirements of section 23(e) of the Securities Exchange Act of 1934, in the same manner as is required by the Commission under such section 23(e).</text></section><enum>II</enum><header>SEC Transparency</header><section id="H7C07E7E8081345FAB5FB8AF42C475D57"><enum>201.</enum><header>Semiannual testimony to Congress regarding activities of the Securities and Exchange Commission</header><text display-inline="no-display-inline">Section 4 of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78d">15 U.S.C. 78d</external-xref>) is amended by adding at the end the following:</text><quoted-block style="OLC" id="H2FB4EDBD30A44DBE929DB993A8161ECA" display-inline="no-display-inline"><subsection id="HE649141E2C924F42BB15720677EFD779"><enum>(l)</enum><header>Semiannual testimony to Congress</header><text display-inline="yes-display-inline">The Chairman of the Commission shall, not less than once every 6 months after the date of the enactment of this subsection, testify before the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate on the activities of the Commission. At least once annually, the Commissioners shall join the Chairman with respect to testifying pursuant to the preceding sentence. </text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section><enum>III</enum><header>SEC Cybersecurity</header><section id="HE7FAF63029064774BE9B09DF50ECBA1B"><enum>301.</enum><header>GAO audit of information technology infrastructure and handling of data</header><text display-inline="no-display-inline">The Comptroller General of the United States shall, not later than 1 year after the date of the enactment of this Act—</text><paragraph id="H2D77A67D28EB45BEA9C475E18DFC8249"><enum>(1)</enum><text>perform an independent audit of the information technology (IT) infrastructure of the Securities and Exchange Commission and the Commission’s handling of data, including—</text><subparagraph id="H75DAEF388AB44B60B41FA72D07453612"><enum>(A)</enum><text display-inline="yes-display-inline">a comparison of the Commission’s IT spending to other Federal financial regulators, including—</text><clause id="H94E6ED627C7C449D8F3DBD126EFB98AC"><enum>(i)</enum><text>the total amount spent on IT equipment and services; and</text></clause><clause id="HF6F8EE7432A340DB9D3A4EE19C6A30A6"><enum>(ii)</enum><text>the amount of IT spending in proportion to each regulator’s total spending;</text></clause></subparagraph><subparagraph id="HC4B009A644C74F6186444C550E096999"><enum>(B)</enum><text>examining the quality and effectiveness of the Commission’s IT contracting;</text></subparagraph><subparagraph id="H4DFEDB941042467CAB32CC635D9D938C"><enum>(C)</enum><text>determining if the Commission’s data and cybersecurity systems and procedures are sufficient; and</text></subparagraph><subparagraph id="H214B723D8D544CFBAC7F3AE2987D87D2"><enum>(D)</enum><text>examining any recent Commission IT or data events, such as breaches or hacks, that may have compromised the Commission’s IT infrastructure or exposed a vulnerability; and</text></subparagraph></paragraph><paragraph id="H1648C058DC11416F8A8610C8FF4B293E"><enum>(2)</enum><text>provide to the Commission, the Committee on Financial Services of the House of Representatives, and the Committee on Banking, Housing, and Urban Affairs of the Senate a report containing—</text><subparagraph id="H0D14D57EC9FA4B90B5470133EDEDBB4A"><enum>(A)</enum><text>all findings and determinations made in conducting the audit; and</text></subparagraph><subparagraph id="H1767C7701C1242D0812421E3DAEEFA0C"><enum>(B)</enum><text display-inline="yes-display-inline">recommendations for steps that can be taken to improve the Commission’s IT infrastructure.</text></subparagraph></paragraph></section><enum>IV</enum><header>Review the Expansion of Government</header><section id="HE3681BF2128A49E39309AA8DB31CBBD9"><enum>401.</enum><header>Periodic review of final rules required</header><text display-inline="no-display-inline">Section 4 of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78d">15 U.S.C. 78d</external-xref>), as amended by section 201, is further amended by adding at the end the following: </text><quoted-block style="OLC" id="HBFD2E645D3D640C8A78D6220932CC59D" display-inline="no-display-inline"><subsection id="H735E720BA4DF4B29BE19B9278C9569ED" display-inline="no-display-inline"><enum>(m)</enum><header>Periodic review of final rules required</header><paragraph id="HB9C728A09B264015B431192E522542CC"><enum>(1)</enum><header>In general</header><text>With respect to a final rule issued by the Commission, the Commission shall review such rule not later than 5 years after the date on which such final rule is issued, and every 5 years thereafter, to determine if any revision (including a rescission) to the rule is necessary or appropriate—</text><subparagraph id="H8E6836647CF444D0B3DE60B565786727"><enum>(A)</enum><text>to facilitate capital formation;</text></subparagraph><subparagraph id="HBCC3B5671F664F03BA86F9DE698D68B5"><enum>(B)</enum><text>to maintain fair and orderly markets; and</text></subparagraph><subparagraph id="H74F02D53C2E9486296846E7658D2B2B0"><enum>(C)</enum><text>for the protection of investors.</text></subparagraph></paragraph><paragraph id="H7F8692FBE08A49B6BE05593DC7638289"><enum>(2)</enum><header>Application</header><text>With respect to a final rule issued by the Commission before the date of enactment of this subsection, the first review of such rule required under paragraph (1) shall occur before the end of the 5-year period beginning on the date of enactment of this subsection.</text></paragraph><paragraph id="H1C0C7EDC66BD4F0EA3318D927707D598"><enum>(3)</enum><header>Reports required</header><text>The Commission shall—</text><subparagraph id="HBEA9AC02782D4F5388CD24B6F05B2663"><enum>(A)</enum><text>not later than 1 year after the date of the enactment of this subsection, submit to Congress and make publicly available a report that includes a plan to carry out the review required under this subsection with respect to the final rules described in paragraphs (1) and (2); and </text></subparagraph><subparagraph id="HF4DD902E15EA4A92ADA40F80BEEF950E"><enum>(B)</enum><text>not later than 5 years after the date of the enactment of this subsection and not less than once every 5 years thereafter, submit to Congress and make publicly available a report that identifies—</text><clause id="HB7F87FC5E5FC44BE9499AD016D1B4A40"><enum>(i)</enum><text>each final rule the Commission reviewed under this subsection in the preceding 5-year period and an explanation of the Commission’s findings and actions taken or planned to be taken; and</text></clause><clause id="H6AC46B2ED49D460C84FBEE46CE20109C"><enum>(ii)</enum><text>each action or review the Commission failed to carry out in the preceding 5-year period under the plan required under subparagraph (A) and an explanation for such failure.</text></clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="H6894C9065FFB4438A11C2241E66B174E"><enum>402.</enum><header>Consideration of cumulative effect of regulations required</header><subsection id="H7E0C1762F8DF40F5B9A1AC6FCA398128"><enum>(a)</enum><header>Rules under the Securities Act of 1933</header><text display-inline="yes-display-inline">Section 2(b) of the Securities Act of 1933 (<external-xref legal-doc="usc" parsable-cite="usc/15/77b">15 U.S.C. 77b(b)</external-xref>) is amended by inserting <quote>, when considered individually or cumulatively with other rules or regulations or other proposed rules or regulations,</quote> before <quote>will promote</quote>. </text></subsection><subsection id="HD4E4FE78264F42909FBA01CAD1F2BE20"><enum>(b)</enum><header>Rules under the Securities Exchange Act of 1934</header><text>Section 23(a)(2) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78w">15 U.S.C. 78w</external-xref>) is amended by inserting <quote>, when considered individually or cumulatively with other rules or regulations or other proposed rules or regulations,</quote> after <quote>which would</quote>.</text></subsection><subsection id="HF6B8A55F1CC448BEAD60CC4DC770F8E7"><enum>(c)</enum><header>Rules under the Investment Company Act of 1940</header><text display-inline="yes-display-inline">Section 2(c) of the Investment Company Act of 1940 (<external-xref legal-doc="usc" parsable-cite="usc/15/80a-2">15 U.S.C. 80a–2</external-xref>) is amended by inserting <quote>, when considered individually or cumulatively with other rules or regulations or other proposed rules or regulations,</quote> before <quote>will promote</quote>. </text></subsection><subsection id="H2FBEDB25FD4B4EBAA3CDAE9CF6D73C1C"><enum>(d)</enum><header>Rules under the Investment Advisers Act of 1940</header><text display-inline="yes-display-inline">Section 202(c) of the Investment Advisers Act of 1940 (<external-xref legal-doc="usc" parsable-cite="usc/15/80b-2">15 U.S.C. 80b–2</external-xref>) is amended by inserting <quote>, when considered individually or cumulatively with other rules or regulations or other proposed rules or regulations,</quote> before <quote>will promote</quote>.</text></subsection></section><enum>V</enum><header>Streamlining Public Company Accounting Oversight</header><section id="H7D4E1EA191C04F598E4647BA15AC2314"><enum>501.</enum><header>Transfer of Public Company Accounting Oversight Board to Securities and Exchange Commission</header><subsection id="HD82BFF9586664152B2BFF17428475A33"><enum>(a)</enum><header>Global amendments</header><text display-inline="yes-display-inline">Except as otherwise provided under this title, title I of the Sarbanes-Oxley Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/7211">15 U.S.C. 7211 et seq.</external-xref>) is amended—</text><paragraph id="H68FEA4C03BBE49DA9D0C62729BCBB911"><enum>(1)</enum><text>in the title heading, by striking <quote><header-in-text level="title" style="OLC">Public Company Accounting Oversight Board</header-in-text></quote> and inserting <quote><header-in-text level="title" style="OLC">Office of Public Accounting Oversight</header-in-text></quote>; </text></paragraph><paragraph id="HCF523C6F490641AD85389E43A9C39C27"><enum>(2)</enum><text>by striking <quote>Public Company Accounting Oversight Board</quote> each place it appears and inserting <quote>Office of Public Accounting Oversight</quote>;</text></paragraph><paragraph id="H7FFE2925A0854E9F9DE57C871A0F662A"><enum>(3)</enum><text>by striking <quote>the Board</quote> each place it appears and inserting <quote>the Office</quote>; </text></paragraph><paragraph id="H8BD982355EEF4249B1C3EC04185B267A"><enum>(4)</enum><text>by striking <quote>The Board</quote> each place it appears and inserting <quote>The Office</quote>; and</text></paragraph><paragraph id="HF3C29A19D62644368B4549D81BAE461D"><enum>(5)</enum><text>by striking <quote>the Board’s</quote> each place it appears and inserting <quote>the Office’s</quote>. </text></paragraph></subsection><subsection id="HBDAF8EF3C77842C0A80F49B21A13BE91"><enum>(b)</enum><header>Repeals</header><text display-inline="yes-display-inline">Sections 104, 105, and 107 of the Sarbanes-Oxley Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/7214">15 U.S.C. 7214</external-xref>; <external-xref legal-doc="usc" parsable-cite="usc/15/7215">15 U.S.C. 7215</external-xref>; <external-xref legal-doc="usc" parsable-cite="usc/15/7217">15 U.S.C. 7217</external-xref>) are repealed.</text></subsection><subsection id="HC2A9C68E6C534659ABF4E7989F8ED75A"><enum>(c)</enum><header>References</header><text display-inline="yes-display-inline">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.</text></subsection><subsection id="H0B3DEEF8961E4EC59DDAEA08C7BF4498"><enum>(d)</enum><header>Termination of existing Board</header><text>The Public Company Accounting Oversight Board shall terminate on the date that is 2 years after the date of the enactment of this Act.</text></subsection></section><section id="H4614A893471946C398C76BADEB12CDCD"><enum>502.</enum><header>Establishment; administrative provisions</header><subsection id="HFD587A8AE1974E6F92FA3ACB615729E2"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 101 of the Sarbanes-Oxley Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/7211">15 U.S.C. 7211</external-xref>) is amended—</text><paragraph id="H11FAF9E6BA6F4B7093DA134973BE3824"><enum>(1)</enum><text>by amending subsection (a) to read as follows: </text><quoted-block style="OLC" id="H23D018E7E75A4A2491B5D286CD233BDB" display-inline="no-display-inline"><subsection id="HE97EF847A09A42A79917D2ED1E5C0CE6"><enum>(a)</enum><header>Establishment of Office</header><text display-inline="yes-display-inline">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.</text></subsection><after-quoted-block>;</after-quoted-block></quoted-block></paragraph><paragraph id="H2E618083CBE548A492723F1B3F9A2073"><enum>(2)</enum><text>by amending subsection (b) to read as follows: </text><quoted-block style="OLC" id="H74147700BFD3461FA6F3F604702F006A" display-inline="no-display-inline"><subsection id="H6D9DCE5E940C4747990C9B5E444978BD"><enum>(b)</enum><header>Director</header><text display-inline="yes-display-inline">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.</text></subsection><after-quoted-block>;</after-quoted-block></quoted-block></paragraph><paragraph id="H696BA11E84D54771A714CF983F9D75AB"><enum>(3)</enum><text>in subsection (c)—</text><subparagraph id="H768272B5480248F399F5C1C6E6EEA0FB"><enum>(A)</enum><text>in the heading, by striking <quote><header-in-text level="subsection" style="OLC">the Board</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">the Office</header-in-text></quote>;</text></subparagraph><subparagraph id="H8ECB10212F054F3AA568FB36B72FA3A2"><enum>(B)</enum><text>by striking <quote>, subject to action by the Commission under section 107, and once a determination is made by the Commission under subsection (d) of this section</quote>;</text></subparagraph><subparagraph id="HD4F792D0C9C946AA8042E313EAC4A548"><enum>(C)</enum><text>in paragraph (3), by striking <quote>section 104</quote> and inserting <quote>subsection (e)</quote>;</text></subparagraph><subparagraph id="H7D59991BDF1E41D28EEC1FA88B5E2DF4"><enum>(D)</enum><text display-inline="yes-display-inline">in paragraph (4), by striking <quote>section 105</quote> and inserting <quote>subsection (f)</quote>;</text></subparagraph><subparagraph id="H42012AFB58FE4E159C26B6FFC582B9DC" display-inline="no-display-inline"><enum>(E)</enum><text>in paragraph (5)—</text><clause id="HEEBE18D97CF34150BF753E1E28428893"><enum>(i)</enum><text>by striking <quote>the Board (or the Commission, by rule or order)</quote> and inserting <quote>the Commission</quote>; and</text></clause><clause id="H415CFC81D8A04BF9BF2000EB468ED07E"><enum>(ii)</enum><text>by inserting <quote>and</quote> after the semicolon; </text></clause></subparagraph><subparagraph id="H852411573C5B4324B3EBAA4359596868"><enum>(F)</enum><text>in paragraph (6)—</text><clause id="H87792B7D6F71487FB4221C0D28C2B630"><enum>(i)</enum><text>by striking <quote>the rules of the Board</quote> and inserting <quote>the rules of the Commission</quote>; and</text></clause><clause id="H84EFAE8FBBE84D01B4DD3D66E4D43435"><enum>(ii)</enum><text>by striking <quote>; and</quote> and inserting a period; and </text></clause></subparagraph><subparagraph id="HA76D29A1D40740CC97AB8DAEA03A8C6D"><enum>(G)</enum><text>by striking paragraph (7);</text></subparagraph></paragraph><paragraph id="HA12F3C0385DB4EC186C95B0E24FC53DA"><enum>(4)</enum><text>in subsection (d)—</text><subparagraph id="HBE8140B8624D4331B0C33B8ECFB6F102" display-inline="no-display-inline"><enum>(A)</enum><text>by striking <quote>The members of the Board</quote> and inserting <quote>The Chief Accountant of the Office of the Chief Accountant of the Commission</quote>; </text></subparagraph><subparagraph id="H17118975AB5C4264B54C3178FD0DA9A6"><enum>(B)</enum><text>by striking <quote>270 days after the date of enactment of this Act</quote> and inserting <quote>1 year after the date of the enactment of the <short-title>Streamlining Public Company Accounting Oversight Act</short-title></quote>; and</text></subparagraph><subparagraph id="H57CF923D7D0D4D178C63B707BDCCAA7C"><enum>(C)</enum><text>by striking the last sentence;</text></subparagraph></paragraph><paragraph id="H5072822D76764A03922D9995702DED0B"><enum>(5)</enum><text>by striking subsections (e), (f), and (g);</text></paragraph><paragraph id="HF96021932D3E4824B36F655B1D93F526"><enum>(6)</enum><text>by inserting after subsection (d) the following:</text><quoted-block style="OLC" id="HB424956DF0C24A189FB7FCAE07C80C43" display-inline="no-display-inline"><subsection id="H85401009F13445EEB74D2A22C0586088" commented="no"><enum>(e)</enum><header>Inspections of registered public accounting firms</header><text display-inline="yes-display-inline">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. </text></subsection><subsection id="H842526A5EC5A4887BE0365CD394588DE"><enum>(f)</enum><header>Investigations and disciplinary proceedings</header><text display-inline="yes-display-inline">The Commission shall establish, by rule, fair procedures for the investigation and disciplining of registered public accounting firms and associated persons of such firms. </text></subsection><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph id="HFA0FDD44144245429D0F0BC6AA9609E4"><enum>(7)</enum><text>by redesignating subsection (h) as subsection (g).</text></paragraph></subsection><subsection id="H7E247934FDDA411FB4EEB13C76D7E6E9"><enum>(b)</enum><header>Publication of rules</header><text display-inline="yes-display-inline">The Director of the Office of Public Accounting Oversight shall, promptly after the creation of the Office, cause to be published in the Federal Register all rules that are transferred to the jurisdiction of the Office pursuant to section 2 upon the termination of the Public Company Accounting Oversight Board.</text></subsection></section><section id="H4CC343024C7C4350B89BD31FDBC8AFBA"><enum>503.</enum><header>Registration with the Office</header><text display-inline="no-display-inline">Section 102 of the Sarbanes-Oxley Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/7212">15 U.S.C. 7212</external-xref>) is amended—</text><paragraph id="H8CA3B1D9BE204EFF89815C972105E25C"><enum>(1)</enum><text>in the section heading by striking <quote><header-in-text level="section" style="OLC">the Board</header-in-text></quote> and inserting <quote><header-in-text level="section" style="OLC">the Office</header-in-text></quote>;</text></paragraph><paragraph id="H0D8AA42237B64C31AE7F46547A35F7E6"><enum>(2)</enum><text>in subsection (b)(2)(H), by striking <quote>the Board or the</quote>; and</text></paragraph><paragraph id="HCC8A121FA85343F194CD696A97F78289"><enum>(3)</enum><text>in subsection (c)(2), by striking <quote>for purposes of sections 105(d) and 107(c)</quote>.</text></paragraph></section><section id="HF67F62244D9E45068D3936EAA949E03A"><enum>504.</enum><header>Auditing, quality control, standards, and rules</header><text display-inline="no-display-inline">Section 103 of the Sarbanes-Oxley Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/7213">15 U.S.C. 7213</external-xref>) is amended—</text><paragraph id="HE01FE487206D458BA7FD1F2FB214C714"><enum>(1)</enum><text>in the heading, by striking <quote><header-in-text level="subsection" style="OLC">and independence standards</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">standards, and</header-in-text></quote>;</text></paragraph><paragraph id="HD335530C1F8C4C1D80D04C020D2CEFA9"><enum>(2)</enum><text>in subsection (a)(3)—</text><subparagraph id="HFEADFD23CB894039A85E5570DEFDA5AC"><enum>(A)</enum><text>in subparagraph (A)(i), by striking <quote>, subject to the terms of section 107,</quote>;</text></subparagraph><subparagraph id="H126466E0589D4F519F8CB4EF895A3464"><enum>(B)</enum><text>by striking subparagraph (B); and</text></subparagraph><subparagraph id="HD2C60BFB28AF40A2969FB43D7ADCB705"><enum>(C)</enum><text>by redesignating subparagraph (C) as subparagraph (B); </text></subparagraph></paragraph><paragraph id="H206C4A1CD4234FFD953969ACE4328754"><enum>(3)</enum><text>in subsection (c) in the heading of paragraph (2), by striking <quote><header-in-text level="paragraph" style="OLC">Board</header-in-text></quote> and inserting <quote><header-in-text level="paragraph" style="OLC">Office</header-in-text></quote>; and</text></paragraph><paragraph id="HF375A2D43397427E9A1CE02B866A47D1"><enum>(4)</enum><text>in subsection (d), by striking <quote>101(h)</quote> and inserting <quote>101(g)</quote>.</text></paragraph></section><section id="H7610881312ED4C6F8CDED88E328E60FC"><enum>505.</enum><header>Foreign public accounting firms</header><text display-inline="no-display-inline">Section 106 of the Sarbanes-Oxley Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/7216">15 U.S.C. 7216</external-xref>) is amended—</text><paragraph id="H067011F880D44AE6901765C60FB73324"><enum>(1)</enum><text>in the heading of subsection (a)(2), by striking <quote><header-in-text level="paragraph" style="OLC">Board</header-in-text></quote> and inserting <quote><header-in-text level="paragraph" style="OLC">Office</header-in-text></quote>; and</text></paragraph><paragraph id="H68B3343B41514FA8BC2BD055202A7730"><enum>(2)</enum><text>in subsection (c)—</text><subparagraph id="HB18C8C7DE80347CFB42071AC7D266127"><enum>(A)</enum><text>by striking <quote>and the Board, subject to the approval of the Commission, may,</quote>; and</text></subparagraph><subparagraph id="H3C7E3AD12D1149FCAA64D65DA80702DF"><enum>(B)</enum><text>by striking <quote>(or Board)</quote>.</text></subparagraph></paragraph></section><section id="H73C3A617EF664A678373406EDC86052F" commented="no"><enum>506.</enum><header>Funding</header><text display-inline="no-display-inline">Section 109 of the Sarbanes-Oxley Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/7219">15 U.S.C. 7219</external-xref>) is amended— </text><paragraph id="HC61ADE4BAA3C49F281CF337151FE55F0" commented="no"><enum>(1)</enum><text>by amending subsection (b) to read as follows: </text><quoted-block style="OLC" id="H58483381CCC545868C6489BA35FE7DB7" display-inline="no-display-inline"><subsection id="H272F0DAACE40414AB69C4C7356D27092" commented="no"><enum>(b)</enum><header>Annual budgets</header><paragraph id="HA4859DCCB02647BC8C808B13FB82A752" commented="no"><enum>(1)</enum><header>Standard setting body</header><text display-inline="yes-display-inline">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.</text></paragraph><paragraph id="H2B3EB7F73ACF4B9FB630E425FE0966E9" commented="no"><enum>(2)</enum><header>The Office</header><text>The Commission shall establish the budget for the Office for each fiscal year. </text></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block></paragraph><paragraph id="H1156A08F89594A889654BC72D69A6642" commented="no"><enum>(2)</enum><text>in subsection (c)—</text><subparagraph id="H172BC21F78374B0AAE5B13D07B3A2F36" commented="no"><enum>(A)</enum><text>by amending paragraph (1) to read as follows: </text><quoted-block style="OLC" id="H53FD4A188C0C4728BB42C56FC4E6388C" display-inline="no-display-inline"><paragraph id="HF4EB0513BDE04712BA0B312454373CAF" commented="no"><enum>(1)</enum><header>Recoverable budget expenses</header><subparagraph id="HEE4E25571C414E55BFB065A08099637F" commented="no"><enum>(A)</enum><header>Standard setting body</header><text>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.</text></subparagraph><subparagraph id="H71F84127BBD14F7D98296B78A54D20E5" commented="no"><enum>(B)</enum><header>The Office</header><text display-inline="yes-display-inline">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.</text></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph><subparagraph id="H9FC192B1C1D54715B493FB990C463DEF" commented="no"><enum>(B)</enum><text>in paragraph (2), by striking <quote>shall</quote> and inserting <quote>may</quote>; </text></subparagraph></paragraph><paragraph id="H1B61CEE275174B1E9924D8BDFBEE0AAF" commented="no"><enum>(3)</enum><text>in subsection (d)—</text><subparagraph id="HF716D02427494E969A9705D67E775777" commented="no"><enum>(A)</enum><text>in the heading, by striking <quote><header-in-text level="subsection" style="OLC">the Board</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">the Office</header-in-text></quote>;</text></subparagraph><subparagraph id="H7694E699C1AC46938FD79E19CF7C9727" commented="no"><enum>(B)</enum><text>in paragraph (1), by striking <quote>The Board shall establish, with the approval of the Commission,</quote> and inserting <quote>The Commission may establish</quote>;</text></subparagraph><subparagraph id="HC7D31DBFD3E443C4991818D51679A568" commented="no"><enum>(C)</enum><text>in paragraph (2), by striking <quote>shall</quote> and inserting <quote>may</quote>; and</text></subparagraph><subparagraph id="HD6250FFD28BA47A3B0D41930A65912AC" commented="no"><enum>(D)</enum><text>by striking paragraph (3);</text></subparagraph></paragraph><paragraph id="H370738258CB54BE79F0E68A5273DEC7F" commented="no"><enum>(4)</enum><text>in subsection (j)—</text><subparagraph id="HD1694A55456A49BAB9C6718842FD6F7D" commented="no"><enum>(A)</enum><text>by striking <quote>either the Board,</quote>; and</text></subparagraph><subparagraph id="H074DA149E29A4B82975E73C70383B9C5" commented="no"><enum>(B)</enum><text>by striking <quote>, or both,</quote>; and </text></subparagraph></paragraph><paragraph id="H43B3E3D0466B451AB516D7A3E538960E" commented="no"><enum>(5)</enum><text display-inline="yes-display-inline">by striking subsection (k).</text></paragraph></section><section id="HDD663D26835E49698F34839E57749A03"><enum>507.</enum><header>Definitions</header><text display-inline="no-display-inline">Section 110 of the Sarbanes-Oxley Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/7220">15 U.S.C. 7220</external-xref>) is amended—</text><paragraph id="H23843F70083C492694B6378411AAFFA0"><enum>(1)</enum><text>by redesignating paragraphs (5) and (6) as paragraphs (6) and (7); and</text></paragraph><paragraph id="H96164A450349407A9B33173833DDE5DA"><enum>(2)</enum><text>by inserting after paragraph (4) the following:</text><quoted-block style="OLC" id="H79AA1558AA8243698E9B9E90ACDC0462" display-inline="no-display-inline"><paragraph id="HE080DBA9DDD34C7AB68D854EED18DE1A"><enum>(5)</enum><header>Office</header><text display-inline="yes-display-inline">The term <term>Office</term> means the Office of Public Accounting Oversight of the Office of the Chief Accountant of the Commission.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section><section id="H5EFD32D905FC4B11AB7205FBBF6059C1"><enum>508.</enum><header>Technical and conforming amendments</header><subsection id="H0352EAA2ADA34A5FBAC7C9ED6B83F7DC"><enum>(a)</enum><header>Definitions</header><text display-inline="yes-display-inline">Section 2(a)(9)(C) of the Sarbanes-Oxley Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/7201">15 U.S.C. 7201</external-xref>) is amended by striking <quote>, 101(c), 105, and 107(c) and the rules of the Board and Commission issued thereunder</quote> and inserting <quote>and 101(c) and the rules of the Commission thereunder</quote>.</text></subsection><subsection id="HF8EF6A283BCD45ABBA670232513E4C55"><enum>(b)</enum><header>Exemption authority</header><text display-inline="yes-display-inline">Section 201(b) of the Sarbanes-Oxley Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/7231">15 U.S.C. 7231(b)</external-xref>) is amended—</text><paragraph id="H9A1C9D4E20E54165B08B395DEFC2B2F4"><enum>(1)</enum><text>by striking <quote>The Board may</quote> and inserting <quote>The Commission may</quote>; and</text></paragraph><paragraph id="HAFE04B54D7484A298A7AFEE993ACBC76"><enum>(2)</enum><text>by striking <quote>in the same manner as for rules of the Board under section 107</quote>.</text></paragraph></subsection><subsection id="H9BAE08EC84A644B79BB62F0C9D94949A"><enum>(c)</enum><header>Self-Regulatory organization</header><text display-inline="yes-display-inline">Section 603(y)(3) of the Consumer Credit Protection Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1681a">15 U.S.C. 1681a(y)(3)</external-xref>) is amended by striking <quote>any entity established under title I of the Sarbanes-Oxley Act of 2002,</quote>.</text></subsection><subsection id="H04F110077D194C95B9FA6A8773DF360E"><enum>(d)</enum><header>Clerical amendment</header><text display-inline="yes-display-inline">The table of contents in section 1(b) of the Sarbanes-Oxley Act of 2002 is amended—</text><paragraph id="H88EBAEC28CAE4CDFAD80800822EFA100"><enum>(1)</enum><text display-inline="yes-display-inline">in the item relating to section 102, by striking <quote>the Board</quote> and inserting <quote>the Office</quote>;</text></paragraph><paragraph id="HD49E5EB7B00147B7AE2D709891F9D3AD"><enum>(2)</enum><text display-inline="yes-display-inline">in the item relating to section 103, by striking <quote>and independence standards</quote> and inserting <quote>standards, and</quote>; and</text></paragraph><paragraph id="H855AEBA9E2E54CAAA957FF3FE71D2870"><enum>(3)</enum><text>by striking the items relating to sections 104, 105, and 107.</text></paragraph></subsection></section><section id="HD0AC03C668194DC2969538261434EE7C"><enum>509.</enum><header>Rule of construction with respect to cooperative arrangements</header><text display-inline="no-display-inline">Nothing in this title, or the amendments made by this title, 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 (<external-xref legal-doc="usc" parsable-cite="usc/15/7201">15 U.S.C. 7201(a)</external-xref>)) in effect on the date that is 2 years after the date of the enactment of this Act. </text></section><section id="HACF82835DB13485AB3707E37EFE55F98"><enum>510.</enum><header>Regulations</header><text display-inline="no-display-inline">The Securities and Exchange Commission may issue such regulations as may be necessary to carry out this title.</text></section><section id="HE01D140A77B749489019C26EED4C93DA"><enum>511.</enum><header>Effective date</header><text display-inline="no-display-inline">The amendments made by this title shall take effect on the date that is 2 years after the date of the enactment of this Act.</text></section><enum>VI</enum><header>Study Regarding Major Rules Issued by the Securities and Exchange Commission</header><section id="HA4D8F16BE16C4C79B961E51EADD9E80E"><enum>601.</enum><header>GAO study regarding major rules</header><text display-inline="no-display-inline">Section 4 of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78d">15 U.S.C. 78d</external-xref>), as amended by section 401, is further amended by adding at the end the following:</text><quoted-block style="OLC" id="H2C52595B870F4B0191A5D9C1D1064177" display-inline="no-display-inline"><subsection id="HAABC238777C240B0B51D4326ED7C4F9C"><enum>(n)</enum><header>GAO study regarding major rules</header><paragraph id="H1F717687E9E34DB699F58EAA8CEFA93C"><enum>(1)</enum><header>Study required</header><subparagraph id="HF8B3C25DB4AD479996447159771E0371"><enum>(A)</enum><header>In general</header><text>Subject to subparagraph (C), not later than 1 year after the date of the enactment of this subsection, and every 3 years thereafter, the Comptroller General of the United States shall carry out a study on each of the major rules issued by the Commission since the last such review. </text></subparagraph><subparagraph id="H83EC8566011C459BBB2528F2975324AC"><enum>(B)</enum><header>Elements</header><text display-inline="yes-display-inline">The study required under subparagraph (A) shall include, with respect to each major rule described in such subparagraph—</text><clause id="HE4FEDEDF1BB44C76ACAADED9451656DD"><enum>(i)</enum><text>a cost benefit analysis of such major rule;</text></clause><clause id="H5F8596D729BB4E108D83315313469695"><enum>(ii)</enum><text>a comparison between the cost benefit analysis under clause (i) and the cost benefit analysis for the same major rule carried out by the Commission;</text></clause><clause id="H7C05AC6F7A454AC398C49014960DFB51"><enum>(iii)</enum><text>a comparison between the projected costs of the major rule and the actual costs of the major rule; and</text></clause><clause id="HBFCA2EC8F8B94E35A6A745372266C607"><enum>(iv)</enum><text>an evaluation of whether each major rule—</text><subclause id="H9E84E95945124DAD8CDDB672D0252046"><enum>(I)</enum><text>facilitates capital formation;</text></subclause><subclause id="H86AB52522A4F4839B375976DA0098B47"><enum>(II)</enum><text>promotes fair, efficient markets; and</text></subclause><subclause id="H0BC14B16A6CD4EB6A5DCC029C7E37A45"><enum>(III)</enum><text>protects investors.</text></subclause></clause></subparagraph><subparagraph id="HBC5C8DCB6ABD49D9BD4A012F42E9B3D2"><enum>(C)</enum><header>Special rule</header><text display-inline="yes-display-inline">If a study required under subparagraph (A) would apply to more than 10 major rules, the Comptroller Genera shall review only the 10 major rules that are the most significant, as determined by the Comptroller General. </text></subparagraph></paragraph><paragraph id="H4391D7C80680486FA0F0469E1F30E32E"><enum>(2)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than 1 year after completing a study under paragraph (1), the Comptroller General shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a report that includes—</text><subparagraph id="H80A869400025418AAD6E13AEF4B41710"><enum>(A)</enum><text>the results of such study; and</text></subparagraph><subparagraph id="H25BD0B02D04F459B87238F50909C1BCC"><enum>(B)</enum><text display-inline="yes-display-inline">with respect to any major rule reviewed in such study that has not yet been fully implemented by the Commission, a statement that the Comptroller General is unable to fully analyze the costs of the major rule at the time the report is submitted.</text></subparagraph></paragraph><paragraph id="H0169991041FB4F5999CC270CA0A66652"><enum>(3)</enum><header>Major rule defined</header><text>In this subsection, the term <quote>major rule</quote> has the meaning given the term in section 804 of title 5, United States Code.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section><enum>VII</enum><header>Minimum public comment period</header><section id="HA44409AE357C4559B3FA783CFA834B33" section-type="subsequent-section"><enum>701.</enum><header>Minimum public comment period</header><text display-inline="no-display-inline">Section 4 of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78d">15 U.S.C. 78d</external-xref>), as amended by section 601, is further amended by adding at the end the following:</text><quoted-block style="OLC" id="H156C4ED4CC9E45DBAEF3641A39C0B3D1" display-inline="no-display-inline"><subsection id="HB60A5AEF9E62432D865C45188E74D0D6"><enum>(o)</enum><header>Minimum public comment period</header><paragraph id="HE0CD5FD89194419F954BD788EC498DED"><enum>(1)</enum><header>In general</header><text>With respect to a proposed rulemaking for which a public comment period is required under section 553 of title 5, United States Code, the Commission shall provide a public comment period of—</text><subparagraph id="H9A5C8569F50D4F4799BF1A3F448E4D92"><enum>(A)</enum><text>at least 60 days; or</text></subparagraph><subparagraph id="H73D3F80213514BF6BE57BAC800585D05"><enum>(B)</enum><text display-inline="yes-display-inline">if the Commission determines the proposed rule addresses imminent investor harm, at least 30 days.</text></subparagraph></paragraph><paragraph id="H10CDB0C1AFDB40999D684832E89BE25A"><enum>(2)</enum><header>Calculation of periods</header><text>For purposes of calculating the number of days in a period under paragraph (1) with respect to a proposed rulemaking—</text><subparagraph id="H8C5536080FB14AA1A2E615A77034B969"><enum>(A)</enum><text>a Federal holiday shall not be counted; and</text></subparagraph><subparagraph id="HDA9100D1F34443B88AEB01E92C8059EB"><enum>(B)</enum><text>the period shall begin on the date the proposed rule is published in the Federal Register.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section>