[Congressional Record Volume 165, Number 70 (Tuesday, April 30, 2019)]
[Senate]
[Pages S2519-S2523]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. KAINE (for himself, Ms. Collins, Mr. King, Ms. Hassan, Mr.
Blumenthal, Mr. Whitehouse, Ms. Baldwin, Mrs. Shaheen, Mr.
Menendez, Ms. Klobuchar, Ms. Cortez Masto, Mr. Wyden, Ms.
Smith, Mrs. Feinstein, Mr. Booker, Mr. Merkley, Ms. Harris, and
Ms. Cantwell):
S. 1246. A bill to extend the protections of the Fair Housing Act to
persons suffering discrimination on the basis of sexual orientation or
gender identity, and for other purposes; to the Committee on the
Judiciary.
Mr. KAINE. Mr. President, I rise today to re-introduce the Fair and
Equal Housing Act of 2019, legislation to ensure equal housing
opportunities for all Americans. This bipartisan bill would protect
Americans from housing discrimination based on gender identity and
sexual orientation. No American should be turned away from a home they
love because of who they love.
[[Page S2520]]
I began my career as a civil rights attorney. My initial focus was on
fair housing, and I learned early on that a home is more than just
structure or a shelter. A home plays an integral role in one's
identity, and it is central to the life of every American.
Housing discrimination nevertheless continues to plague many
Americans. And it is a reality for LGBT Americans because of incomplete
protections in the Fair Housing Act (FHA), the landmark Federal housing
law.
The FHA prohibits housing discrimination based on race, color,
religion, national origin, sex, familial status, or disability. It does
not, however, protect against discrimination based upon sexual
orientation or gender. More than 20 states and over 200 localities
safeguard sexual orientation and gender identify in their housing
discrimination laws. That's telling. It's time for the federal
government to do the same.
A study released this month analyzed national mortgage data from 1990
to 2015. It found that same-sex applicants were 73 percent more likely
to be denied approval for a mortgage than opposite-sex couples.
The study also found that same-sex couples often pay more for their
loans in interest and fees. This despite the fact that the study found
no evidence that same-sex couples carried a higher default risk. In
fact, the study's findings suggest that same-sex borrowers may perform
better. The analysis indicated that, on average, same-sex couples paid
0.2 percent more in interest and fees, which adds up to as much as $86
million per year.
These findings confirm the need to include gender identity and sexual
orientation as protected classes under federal housing laws. Loan
decisions should be based on fundamental economic considerations, not
race, religion, sexual orientation or gender.
The job of perfecting our Union is an ongoing quest requiring
continued stewardship. Our history is replete with examples of manifest
action from the Bill of Rights, to the 14th Amendment, to the Civil
Rights Act of 1964. The Fair and Equal Housing Act of 2019 is one more
step in our longer journey to perfect our Union and to extinguish
discrimination in places which call for our leadership. I urge my
colleagues to join us in support of this legislation.
______
By Mr. DURBIN (for himself, Mrs. Gillibrand, Mr. Schatz, Mr. Van
Hollen, and Ms. Baldwin):
S. 1249. A bill to prioritize funding for an expanded and sustained
national investment in basic science research; to the Committee on the
Budget.
Mr. DURBIN. Mr. President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 1249
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 ``American Innovation Act''.
SEC. 2. CAP ADJUSTMENT.
(a) In General.--Section 251(b)(2) of the Balanced Budget
and Emergency Deficit Control Act of 1985 (2 U.S.C.
901(b)(2)) is amended--
(1) by redesignating subparagraph (D) as subparagraph (E);
and
(2) by inserting after subparagraph (C), the following:
``(D) Basic science research.--
``(i) National science foundation.--If a bill or joint
resolution making appropriations for a fiscal year is enacted
that specifies amounts for the National Science Foundation,
then the adjustments for that fiscal year shall be the amount
of additional new budget authority provided in that Act for
such programs for that fiscal year, but shall not exceed--
``(I) for fiscal year 2020, $565,000,000 in additional new
budget authority;
``(II) for fiscal year 2021, $1,170,000,000 in additional
new budget authority;
``(III) for fiscal year 2022, $1,820,000,000 in additional
new budget authority;
``(IV) for fiscal year 2023, $2,510,000,000 in additional
new budget authority; and
``(V) for fiscal year 2024, $3,250,000,000 in additional
new budget authority.
``(ii) Department of energy, office of science.--If a bill
or joint resolution making appropriations for a fiscal year
is enacted that specifies amounts for the Office of Science
at the Department of Energy, then the adjustments for that
fiscal year shall be the amount of additional new budget
authority provided in that Act for such programs for that
fiscal year, but shall not exceed--
``(I) for fiscal year 2020, $461,000,000 in additional new
budget authority;
``(II) for fiscal year 2021, $954,000,000 in additional new
budget authority;
``(III) for fiscal year 2022, $1,480,000,000 in additional
new budget authority;
``(IV) for fiscal year 2023, $2,050,000,000 in additional
new budget authority; and
``(V) for fiscal year 2024, $2,650,000,000 in additional
new budget authority.
``(iii) Department of defense science and technology
programs.--If a bill or joint resolution making
appropriations for a fiscal year is enacted that specifies
amounts for the Department of Defense science and technology
programs, then the adjustments for that fiscal year shall be
the amount of additional new budget authority provided in
that Act for such programs for that fiscal year, but shall
not exceed--
``(I) for fiscal year 2020, $1,120,000,000 in additional
new budget authority;
``(II) for fiscal year 2021, $2,310,000,000 in additional
new budget authority;
``(III) for fiscal year 2022, $3,590,000,000 in additional
new budget authority;
``(IV) for fiscal year 2023, $4,960,000,000 in additional
new budget authority; and
``(V) for fiscal year 2024, $6,430,000,000 in additional
new budget authority.
``(iv) National institute of standards and technology
scientific and technical research and services.--If a bill or
joint resolution making appropriations for a fiscal year is
enacted that specifies amounts for the scientific and
technical research and services of the National Institute of
Standards and Technology at the Department of Commerce, then
the adjustments for that fiscal year shall be the amount of
additional new budget authority provided in that Act for such
programs for that fiscal year, but shall not exceed--
``(I) for fiscal year 2020, $51,000,000 in additional new
budget authority;
``(II) for fiscal year 2021, $105,000,000 in additional new
budget authority;
``(III) for fiscal year 2022, $163,000,000 in additional
new budget authority;
``(IV) for fiscal year 2023, $225,000,000 in additional new
budget authority; and
``(V) for fiscal year 2024, $292,000,000 in additional new
budget authority.
``(v) National aeronautics and space administration science
mission directorate.--If a bill or joint resolution making
appropriations for a fiscal year is enacted that specifies
amounts for the Science Mission Directorate at the National
Aeronautics and Space Administration, then the adjustments
for that fiscal year shall be the amount of additional new
budget authority provided in that Act for such programs for
that fiscal year, but shall not exceed--
``(I) for fiscal year 2020, $483,000,000 in additional new
budget authority;
``(II) for fiscal year 2021, $1,000,000,000 in additional
new budget authority;
``(III) for fiscal year 2022, $1,500,000,000 in additional
new budget authority;
``(IV) for fiscal year 2023, $2,150,000,000 in additional
new budget authority; and
``(V) for fiscal year 2024, $2,780,000,000 in additional
new budget authority.
``(vi) Definitions.--As used in this subparagraph:
``(I) Additional new budget authority.--The term
`additional new budget authority' means--
``(aa) with respect to the National Science Foundation, the
amount provided for a fiscal year, in excess of the amount
provided in fiscal year 2019, in an appropriation Act and
specified to support the National Science Foundation;
``(bb) with respect to the Department of Energy Office of
Science, the amount provided for a fiscal year, in excess of
the amount provided in fiscal year 2019, in an appropriation
Act and specified to support the Department of Energy Office
of Science;
``(cc) with respect to the Department of Defense science
and technology programs, the amount provided for a fiscal
year, in excess of the amount provided in fiscal year 2019,
in an appropriation Act and specified to support the
Department of Defense science and technology programs;
``(dd) with respect to the National Institute of Standards
and Technology scientific and technical research services,
the amount provided for a fiscal year, in excess of the
amount provided in fiscal year 2019, in an appropriation Act
and specified to support the National Institute of Standards
and Technology scientific and technical research services;
and
``(ee) with respect to the National Aeronautics and Space
Administration Science Mission Directorate, the amount
provided for a fiscal year, in excess of the amount provided
in fiscal year 2019, in an appropriation Act and specified to
support the National Aeronautics and Space Administration
Science Mission Directorate.
``(II) Department of defense science and technology
programs.--The term `Department of Defense science and
technology programs' means the appropriations accounts that
support the various institutes, offices, and centers that
make up the Department of Defense science and technology
programs.
``(III) Department of energy office of science.--The term
`Department of Energy Office of Science' means the
appropriations accounts that support the various institutes,
offices, and centers that make up the Department of Energy
Office of Science.
``(IV) National aeronautics and space administration
science mission directorate.--The term `National Aeronautics
and Space Administration Science Mission Directorate' means
the appropriations accounts that support the various
institutes,
[[Page S2521]]
offices, and centers that make up the National Aeronautics
and Space Administration Science Mission Directorate.
``(V) National institute of standards and technology
scientific and technical research and services.--The term
`National Institute of Standards and Technology scientific
and technical research and services' means the appropriations
accounts that support the various institutes, offices, and
centers that make up the National Institute of Standards and
Technology scientific and technical research and services.
``(VI) National science foundation.--The term `National
Science Foundation' means the appropriations accounts that
support the various institutes, offices, and centers that
make up the National Science Foundation.''.
(b) Funding.--There are hereby authorized to be
appropriated--
(1) for the National Science Foundation, the amounts
provided for under clause (i) of such section 251(b)(2)(D) in
each of fiscal years 2020 through 2024, and such sums as may
be necessary for each subsequent fiscal year;
(2) for the Department of Energy Office of Science, the
amounts provided for under clause (ii) of such section
251(b)(2)(D) in each of fiscal years 2020 through 2024, and
such sums as may be necessary for each subsequent fiscal
year;
(3) for the Department of Defense science and technology
programs, the amounts provided for under clause (iii) of such
section 251(b)(2)(D) in each of fiscal years 2020 through
2024, and such sums as may be necessary for each subsequent
fiscal year;
(4) for the National Institute of Standards and Technology
scientific and technical research and services, the amounts
provided for under clause (iv) of such section 251(b)(2)(D)
in each of fiscal years 2020 through 2024, and such sums as
may be necessary for each subsequent fiscal year; and
(5) for the National Aeronautics and Space Administration
Science Mission Directorate, the amounts provided for under
clause (v) of such section 251(b)(2)(D) in each of fiscal
years 2020 through 2024, and such sums as may be necessary
for each subsequent fiscal year.
(c) Minimum Continued Funding Requirement.--Amounts
appropriated for each of the programs and agencies described
in section 251(b)(2)(D) of the Balanced Budget and Emergency
Deficit Control Act of 1985 (as added by subsection (a)) for
each of fiscal years 2020 through 2024, and each subsequent
fiscal year, shall not be less than the amounts appropriated
for such programs and agencies for fiscal year 2019.
(d) Exemption of Certain Appropriations From
Sequestration.--
(1) In general.--Section 255(g)(1)(A) of the Balanced
Budget and Emergency Deficit Control Act (2 U.S.C.
905(g)(1)(A)) is amended by inserting after ``Advances to the
Unemployment Trust Fund and Other Funds (16-0327-0-1-600).''
the following:
``Appropriations under the American Innovation Act.''.
(2) Applicability.--The amendment made by this section
shall apply to any sequestration order issued under the
Balanced Budget and Emergency Deficit Control Act of 1985 (2
U.S.C. 900 et seq.) on or after the date of enactment of this
Act.
______
By Mr. DURBIN (for himself, Mr. Brown, Mr. Van Hollen, Mr.
Cardin, Mr. Casey, Mr. Markey, Ms. Baldwin, Mr. Blumenthal, and
Ms. Klobuchar):
S. 1250. A bill to prioritize funding for an expanded and sustained
national investment in biomedical research; to the Committee on the
Budget.
Mr. DURBIN. Mr. President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 1250
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 ``American Cures Act''.
SEC. 2. CAP ADJUSTMENT.
(a) In General.--Section 251(b)(2) of the Balanced Budget
and Emergency Deficit Control Act of 1985 (2 U.S.C.
901(b)(2)) is amended--
(1) by redesignating subparagraphs (D), (E), and (F) as
subparagraphs (E), (F), and (G), respectively; and
(2) by inserting after subparagraph (C), the following:
``(D) Biomedical research.--
``(i) National institutes of health.--If a bill or joint
resolution making appropriations for a fiscal year is enacted
that specifies amounts for the National Institutes of Health
at the Department of Health and Human Services, then the
adjustments for that fiscal year shall be the amount of
additional new budget authority provided in that Act for such
programs for that fiscal year, but shall not exceed--
``(I) for fiscal year 2020, $2,737,000,000 in additional
new budget authority;
``(II) for fiscal year 2021, $5,666,000,000 in additional
new budget authority;
``(III) for fiscal year 2022, $8,800,000,000 in additional
new budget authority;
``(IV) for fiscal year 2023, $12,153,000,000 in additional
new budget authority; and
``(V) for fiscal year 2024, $15,741,000,000 in additional
new budget authority.
``(ii) Centers for disease control and prevention.--If a
bill or joint resolution making appropriations for a fiscal
year is enacted that specifies amounts for the Centers for
Disease Control and Prevention at the Department of Health
and Human Services, then the adjustments for that fiscal year
shall be the amount of additional new budget authority
provided in that Act for such programs for that fiscal year,
but shall not exceed--
``(I) for fiscal year 2020, $511,000,000 in additional new
budget authority;
``(II) for fiscal year 2021, $1,057,000,000 in additional
new budget authority;
``(III) for fiscal year 2022, $1,642,000,000 in additional
new budget authority;
``(IV) for fiscal year 2023, $2,268,000,000 in additional
new budget authority; and
``(V) for fiscal year 2024, $2,938,000,000 in additional
new budget authority.
``(iii) Department of defense health program.--If a bill or
joint resolution making appropriations for a fiscal year is
enacted that specifies amounts for the Department of Defense
health program, then the adjustments for that fiscal year
shall be the amount of additional new budget authority
provided in that Act for such programs for that fiscal year,
but shall not exceed--
``(I) for fiscal year 2020, $167,510,000 in additional new
budget authority;
``(II) for fiscal year 2021, $346,745,700 in additional new
budget authority;
``(III) for fiscal year 2022, $538,527,899 in additional
new budget authority;
``(IV) for fiscal year 2023, $743,734,852 in additional new
budget authority; and
``(V) for fiscal year 2024, $963,306,292 in additional new
budget authority.
``(iv) Medical and prosthetics research program of the
department of veterans affairs.--If a bill or joint
resolution making appropriations for a fiscal year is enacted
that specifies amounts for the medical and prosthetics
research program of the Department of Veterans Affairs, then
the adjustments for that fiscal year shall be the amount of
additional new budget authority provided in that Act for such
programs for that fiscal year, but shall not exceed--
``(I) for fiscal year 2020, $54,530,000 in additional new
budget authority;
``(II) for fiscal year 2021, $58,350,000 in additional new
budget authority;
``(III) for fiscal year 2022, $62,440,000 in additional new
budget authority;
``(IV) for fiscal year 2023, $66,810,000 in additional new
budget authority; and
``(V) for fiscal year 2024, $71,490,000 in additional new
budget authority.
``(v) Definitions.--As used in this subparagraph:
``(I) Additional new budget authority.--The term
`additional new budget authority' means--
``(aa) with respect to the National Institutes of Health,
the amount provided for a fiscal year, in excess of the
amount provided in fiscal year 2019, in an appropriation Act
and specified to support the National Institutes of Health;
``(bb) with respect to the Centers for Disease Control and
Prevention, the amount provided for a fiscal year, in excess
of the amount provided in fiscal year 2019, in an
appropriation Act and specified to support the Centers for
Disease Control and Prevention;
``(cc) with respect to the Department of Defense health
program, the amount provided for a fiscal year, in excess of
the amount provided in fiscal year 2019, in an appropriation
Act and specified to support the Department of Defense health
program; and
``(dd) with respect to the medical and prosthetics research
program of the Department of Veterans Affairs, the amount
provided for a fiscal year, in excess of the amount provided
in fiscal year 2019, in an appropriation Act and specified to
support the medical and prosthetics research program of the
Department of Veterans Affairs.
``(II) Centers for disease control and prevention.--The
term `Centers for Disease Control and Prevention' means the
appropriations accounts that support the various institutes,
offices, and centers that make up the Centers for Disease
Control and Prevention.
``(III) Department of defense health program.--The term
`Department of Defense health program' means the
appropriations accounts that support the various institutes,
offices, and centers that make up the Department of Defense
health program.
``(IV) Medical and prosthetics research program of the
department of veterans affairs.--The term `medical and
prosthetics research program of the Department of Veterans
Affairs' means the appropriations accounts that support the
various institutes, offices, and centers that make up the
medical and prosthetics research program of the Department of
Veterans Affairs.
``(V) National institutes of health.--The term `National
Institutes of Health' means the appropriations accounts that
support the various institutes, offices, and centers that
make up the National Institutes of Health.''.
(b) Funding.--There are hereby authorized to be
appropriated--
(1) for the National Institutes of Health, the amounts
provided for under clause (i) of such section 251(b)(2)(D) in
each of fiscal years 2020 through 2024, and such sums as may
be necessary for each subsequent fiscal year;
[[Page S2522]]
(2) for the Secretary of Health and Human Services, acting
through the Centers for Disease Control and Prevention, the
amounts provided for under clause (ii) of such section
251(b)(2)(D) in each of fiscal years 2020 through 2024, and
such sums as may be necessary for each subsequent fiscal
year;
(3) for the Department of Defense health program, the
amounts provided for under clause (iii) of such section
251(b)(2)(D) in each of fiscal years 2020 through 2024, and
such sums as may be necessary for each subsequent fiscal
year; and
(4) for the medical and prosthetics research program of the
Department of Veterans Affairs, the amounts provided for
under clause (iv) of such section 251(b)(2)(D) in each of
fiscal years 2020 through 2024, and such sums as may be
necessary for each subsequent fiscal year.
(c) Minimum Continued Funding Requirement.--Amounts
appropriated for each of the programs and agencies described
in section 251(b)(2)(D) of the Balanced Budget and Emergency
Deficit Control Act of 1985 (as added by subsection (a)) for
each of fiscal years 2020 through 2024, and each subsequent
fiscal year, shall not be less than the amounts appropriated
for such programs and agencies for fiscal year 2019.
(d) Exemption of Certain Appropriations From
Sequestration.--
(1) In general.--Section 255(g)(1)(A) of the Balanced
Budget and Emergency Deficit Control Act (2 U.S.C.
905(g)(1)(A)) is amended by inserting after ``Advances to the
Unemployment Trust Fund and Other Funds (16-0327-0-1-600).''
the following:
``Appropriations under the American Cures Act.''.
(2) Applicability.--The amendment made by this section
shall apply to any sequestration order issued under the
Balanced Budget and Emergency Deficit Control Act of 1985 (2
U.S.C. 900 et seq.) on or after the date of enactment of this
Act.
______
By Mrs. FEINSTEIN (for herself, Mr. Cornyn, Mr. Van Hollen, Mr.
Blumenthal, Ms. Harris, Ms. Klobuchar, Mr. Wyden, and Mr.
Durbin):
S. 1253. A bill to apply requirements relating to delivery sales of
cigarettes to delivery sales of electronic nicotine delivery systems,
and for other purposes; to the Committee on the Judiciary.
Mrs. FEINSTEIN. Mr. President, I rise in support of the ``Preventing
Online Sales of E-Cigarettes to Children Act,'' which would help
address the concerning rise of electronic cigarette use among America's
youth.
This common-sense bill would protect children by requiring online
retailers of e-cigarettes to meet the same standards as those that sell
regular cigarettes and other tobacco products online.
E-cigarette use among teenagers has increased dramatically over the
past few years. According to the Centers for Disease Control and
Prevention, approximately 20 percent of high school students used
electronic cigarettes in 2018. In comparison, only about 1.5 percent of
high school students reportedly used e-cigarettes in 2011.
Even more disturbing, the rise of teenage use of e-cigarettes appears
to be accelerating. Between 2017 and 2018, e-cigarettes use among high
school-aged children jumped 78%. Today, e-cigarettes have become the
most commonly used tobacco product among America's youth. These severe
levels of e-cigarette use by middle and high school-aged children are
staggering.
According to a U.S. Surgeon General report on e-cigarette use among
youth and young adults, the developing adolescent brain is uniquely
sensitive to nicotine. Studies have also shown that the development of
the brain during adolescence can be permanently altered by nicotine. As
a result, children exposed to nicotine may be at greater risk for
acting out drug-seeking behaviors, experiencing deficits in attention
and cognition, and suffering from mood disorders. These effects may
continue into adulthood, long after e-cigarette use has stopped.
Given the effects of nicotine on children, it is critical that we
close any legal loopholes that have allowed underage youth to gain
access to tobacco, particularly through e-cigarettes.
Among underage e-cigarette users, 86 percent reported that they
obtained the product from somewhere other than a retail store. And a
recent survey of adolescent e-cigarette users showed that 32 percent of
them reported purchasing their products online, making online sales the
single largest source of underage purchases.
Our legislation would build off the ``Prevent All Cigarette
Trafficking Act,'' which has been a tremendous success in preventing
underage use of cigarettes. Since it passed, the number of middle and
high school students who use cigarettes has been nearly cut in half. We
should expand on this success by requiring e-cigarette retailers to
meet the same requirements as those that sell regular cigarettes
online.
By applying the same safeguards that have worked with online sales of
regular cigarettes, our bill would ensure that online e-cigarette
sellers are verifying the age of their customers, properly labeling
packages, and checking identification at delivery.
In addition, our bill requires deliveries of e-cigarettes to comply
with relevant State tobacco taxes and reporting requirements, as is
currently required of online sales of regular cigarettes and smokeless
tobacco products. E-cigarette retailers will also need to register and
maintain a record of their online sales, which will be accessible to
State and Federal law officials. Law enforcement will be able to
identify and shut down online vendors that are systematically breaking
the law by marketing their e-cigarette products to children.
This bill complements efforts by the Food and Drug Administration,
which has recognized the epidemic of youth e-cigarette use and proposed
a number of policies meant to prevent underage retail purchases, limit
flavors that appeal to children, and enforce age verifications.
Over the last 50 years, the United States has made remarkable
progress in reducing the number of Americans that use tobacco products.
However, the dramatic recent rise of e-cigarette use among our youth
threatens that progress and requires a strong response.
I want to thank Senator Cornyn for joining me in introducing
legislation on this important issue. I urge my colleagues to join us in
supporting this bill to address the epidemic of e-cigarette use among
America's youth. Thank you Mr. President. I yield the floor.
______
By Mr. REED (for himself and Mr. Grassley):
S. 1256. A bill to promote transparency by permitting the Public
Company Accounting Oversight Board to allow its disciplinary
proceedings to be open to the public, and for other purposes; to the
Committee on Banking, Housing, and Urban Affairs.
Mr. REED. Mr. President, the PCAOB Enforcement Transparency Act,
which I reintroduce today with Senator Grassley, will permit the Public
Company Accounting Oversight Board (PCAOB) to make public the
disciplinary proceedings it has brought against auditors and audit
firms earlier in the process.
More than fifteen years ago, our markets were victimized by a series
of massive financial reporting frauds, including those involving Enron
and WorldCom. In response to this crisis, the Senate Committee on
Banking, Housing, and Urban Affairs conducted multiple hearings, which
produced consensus on a number of underlying causes, including weak
corporate governance, a lack of accountability, and inadequate
oversight of accountants charged with auditing public companies'
financial statements.
In a 99 to 0 vote, the Senate passed the Sarbanes-Oxley Act of 2002
to address the structural weaknesses and faults revealed by the
hearings. Among its many provisions, this law called for the creation
of a strong and independent board, the PCAOB, responsible for
overseeing auditors of public companies in order to protect investors
who rely on independent audit reports on the financial statements of
public companies.
To conduct its duties, the PCAOB, under the oversight of the U.S.
Securities and Exchange Commission (SEC), oversees more than 1,800
registered accounting firms, as well as the audit partners and staff
who contribute to a firm's work on each audit. The Board's ability to
begin proceedings that can determine whether there have been violations
of its auditing standards or rules of professional practice is an
important component of its oversight.
However, unlike the SEC, the U.S. Department of Labor, the Federal
Deposit Insurance Corporation, the U.S. Commodity Futures Trading
Commission, the Financial Industry Regulatory Authority, and other
oversight bodies, the Board's disciplinary proceedings cannot be made
public without consent from the parties involved.
[[Page S2523]]
Of course, parties subject to disciplinary proceedings have no
incentive to consent to publicizing their alleged wrongdoing and thus
these proceedings typically remain cloaked behind a veil of secrecy. In
addition, the Board cannot publicize the results of its disciplinary
proceedings until after the appeals process has been completely
exhausted, which can often take several years.
Concealing PCAOB disciplinary proceedings from the public creates a
lack of transparency that invites abuse and undermines the
Congressional intent behind the PCAOB, which was to shine a bright
light on auditing firms and practices, and to bolster the
accountability of auditors of public companies to the investing public.
Over the years, some bad actors have used this loophole to shield
themselves from public scrutiny and accountability. Former PCAOB
Chairman James Doty repeatedly stated in testimony provided to both the
Senate and House of Representatives that the secrecy of the proceedings
``has a variety of unfortunate consequences'' and that such secrecy is
harmful to investors, the auditing profession, and the public at large.
For example, an accounting firm continued to issue no fewer than 29
additional audit reports on public companies without those companies
knowing that it was subject to a PCAOB disciplinary proceeding.
Disturbingly, these investors and the public company clients of that
audit firm were deprived of important information about the proceeding
against the firm and the substance of any violations. There are other
critical reasons why the Board's enforcement proceedings should be open
and transparent.
First, the incentive to litigate cases in order to shield conduct
from public scrutiny as long as possible frustrates the process and
requires both litigants and the PCAOB to expend needless resources.
Second, agencies such as the SEC have found that open and transparent
disciplinary proceedings can be valuable because they inform peer audit
firms of the type of activity that could lead to enforcement action by
the regulator. In effect, transparent proceedings can serve as a
deterrent to misconduct because of a perceived increase in the
likelihood of ``getting caught.'' Accordingly, the audit industry as a
whole would also benefit from timely, public, and non-secret
enforcement proceedings.
Our bill will make hearings by the PCAOB, and all related notices,
orders, and motions, transparent and available to the public unless
otherwise ordered by the Board. This would more closely align the
PCAOB's procedures with those of the SEC for analogous matters.
Increasing transparency and accountability of audit firms subject to
PCAOB disciplinary proceedings bolsters investor confidence in our
financial markets and better protects companies from problematic
auditors. I hope our colleagues will join Senator Grassley and me in
supporting this legislation to enhance transparency in the PCAOB's
enforcement process.
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