[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2760 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 2760

To direct the Securities and Exchange Commission to conduct a study and 
   make recommendations regarding the accounting treatment of stock 
          options for purposes of the Federal securities laws.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 19, 2002

Mr. Enzi (for himself, Mr. Lieberman, Mr. Allen, Mrs. Boxer, Mr. Burns, 
  Mr. Frist, and Mr. Ensign) introduced the following bill; which was 
read twice and referred to the Committee on Banking, Housing, and Urban 
                                Affairs

_______________________________________________________________________

                                 A BILL


 
To direct the Securities and Exchange Commission to conduct a study and 
   make recommendations regarding the accounting treatment of stock 
          options for purposes of the Federal securities laws.

    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 ``Stock Option Fairness and 
Accountability Act''.

SEC. 2. STOCK OPTION EXPENSING ANALYSIS AND REPORT.

    The Securities and Exchange Commission (in this Act referred to as 
the ``Commission'') shall conduct an analysis and make regulatory and 
legislative recommendations on the accounting treatment of stock 
options for purposes of the Federal securities laws, including--
            (1) the accuracy of available stock option pricing models;
            (2) the adequacy of current disclosure requirements to 
        investors and shareholders on stock options;
            (3) the adequacy of corporate governance requirements, 
        including shareholder approval of stock option plans;
            (4) any need for new stock holding period requirements for 
        senior executives; and
            (5) the benefit and detriment of any new options expensing 
        rules on--
                    (A) the productivity and performance of large, 
                medium, and small companies, and start-up enterprises;
                    (B) the recruitment and retention of skilled 
                workers; and
                    (C) employees at various income levels, with a 
                particular focus on the effect on rank-and-file 
                employees and the income of women.

SEC. 3. REGULATORY AND LEGISLATIVE RECOMMENDATIONS.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Commission shall submit regulatory and 
legislative recommendations and supporting analysis to--
            (1) the standard setting body designated pursuant to 
        section 19(b) of the Securities Act of 1933 (as amended by the 
        Public Company Accounting Reform and Investor Protection Act of 
        2002);
            (2) the Committee on Banking, Housing, and Urban Affairs of 
        the Senate; and
            (3) the Committee on Financial Services of the House of 
        Representatives.
    (b) Contents.--The analysis and regulatory and legislative 
recommendations required by this Act shall include--
            (1) the results of the analysis conducted under section 2; 
        and
            (2) regulatory and legislative recommendations, if any, for 
        changes in the appropriate accounting treatment of stock 
        options for purposes of the Federal securities laws.
                                 <all>