[Congressional Record Volume 164, Number 96 (Monday, June 11, 2018)]
[Senate]
[Page S3613]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 2583. Mr. CASSIDY submitted an amendment intended to be proposed 
by him to the bill H.R. 5515, to authorize appropriations for fiscal 
year 2019 for military activities of the Department of Defense, for 
military construction, and for defense activities of the Department of 
Energy, to prescribe military personnel strengths for such fiscal year, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end of subtitle F of title X, add the following:

     SEC. ___. DISCLOSURE TO INVESTORS OF FAILURE OF ACCOUNTING 
                   FIRMS TO COMPLY WITH PCAOB REQUIREMENTS.

       (a) Definitions.--In this section--
       (1) the term ``Board'' means the Public Company Accounting 
     Oversight Board established under section 101 of the 
     Sarbanes-Oxley Act of 2002 (15 U.S.C. 7211);
       (2) the term ``Commission'' means the Securities and 
     Exchange Commission;
       (3) the term ``covered issuer'' means a foreign issuer that 
     is listed on a national securities exchange;
       (4) the term ``Form 10-K'' means the form described in 
     section 249.310 of title 17, Code of Federal Regulations, or 
     any successor regulation;
       (5) the term ``Form 10-Q'' means the form described in 
     section 249.308a of title 17, Code of Federal Regulations, or 
     any successor regulation;
       (6) the term ``Form 20-F'' means the form described in 
     section 249.220f of title 17, Code of Federal Regulations, or 
     any successor regulation;
       (7) the term ``issuer'' has the meaning given the term in 
     section 3(a) of the Securities Exchange Act of 1934 (15 
     U.S.C. 78c(a)); and
       (8) the term ``registered public accounting firm'' has the 
     meaning given the term in section 2(a) of the Sarbanes-Oxley 
     Act of 2002 (15 U.S.C. 7201(a)).
       (b) Disclosure Requirement.--
       (1) In general.--If a registered public accounting firm 
     that prepares or issues an audit report for a covered issuer 
     fails to provide the Board with any documentation requested 
     by the Board with respect to that preparation or issuance, as 
     applicable--
       (A) the Board shall notify the Commission with respect to 
     that failure of the registered public accounting firm;
       (B) upon receipt of the notification from the Board under 
     subparagraph (A), the Commission shall notify the covered 
     issuer--
       (i) with respect to that failure of the registered public 
     accounting firm; and
       (ii) subject to paragraph (2) and subsection (c), that the 
     covered issuer shall, in any required public disclosure 
     document, including Form 20-F, Form 10-K, any proxy 
     materials, and Form 10-Q, notify investors regarding that 
     failure of the registered public accounting firm; and
       (C) after the date on which the registered public 
     accounting firm provides the Board with the documentation 
     requested by the Board--
       (i) the Board shall notify the Commission that the 
     registered public accounting firm has complied with the 
     request of the Board; and
       (ii) upon receipt of the notification from the Board under 
     clause (i), the Commission shall notify the covered issuer 
     that the registered public accounting firm has complied with 
     the request of the Board.
       (2) Period of applicability.--The requirement under 
     paragraph (1)(B)(ii) with respect to a covered issuer shall 
     apply during the period beginning on the date on which the 
     covered issuer receives notice from the Commission under 
     paragraph (1)(B)(i) and ending on the date on which the 
     covered issuer receives notice from the Commission under 
     paragraph (1)(C)(ii).
       (c) Rulemaking.--Not later than 90 days after the date of 
     enactment of this Act, the Commission, in consultation with 
     the Board, shall promulgate a rule that, with respect to a 
     covered issuer that is subject to the notification 
     requirement under subsection (b)(1)(B)(ii), directs the 
     covered issuer regarding--
       (1) in which materials, in addition to the materials 
     described in that subsection, the covered issuer is required 
     to provide the notification; and
       (2) the information that the covered issuer is required to 
     provide with respect to each such notification.
                                 ______