[Congressional Record Volume 165, Number 99 (Thursday, June 13, 2019)]
[Senate]
[Pages S3506-S3507]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 474. Mr. KENNEDY (for himself and Mr. Van Hollen) submitted an 
amendment intended to be proposed by him to the bill S. 1790, to 
authorize appropriations for fiscal year 2020 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 appropriate place, insert the following:

     SEC. ___. DISCLOSURE REQUIREMENT.

       Section 104 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 
     7214) is amended by adding at the end the following:
       ``(i) Disclosure Regarding Foreign Jurisdictions That 
     Prevent Inspections.--
       ``(1) Definitions.--In this subsection--
       ``(A) the term `covered issuer' means an issuer that is 
     required to file reports under section 13 or 15(d) of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78m; 78o(d)); and
       ``(B) the term `non-inspection year' means, with respect to 
     a covered issuer, a year--
       ``(i) during which the Commission identifies the covered 
     issuer under paragraph (2)(A) with respect to every report 
     described in subparagraph (A) filed by the covered issuer 
     during that year; and
       ``(ii) that begins after the date of the enactment of this 
     subsection.

[[Page S3507]]

       ``(2) Disclosure to commission.--The Commission shall--
       ``(A) identify each covered issuer that, with respect to 
     the preparation of the audit report on the financial 
     statement of the covered issuer that is included in a report 
     described in paragraph (1)(A) filed by the covered issuer, 
     retains a registered public accounting firm that has a branch 
     or office that--
       ``(i) is located in a foreign jurisdiction; and
       ``(ii) the Board is unable to inspect under this section; 
     and
       ``(B) require each covered issuer identified under 
     subparagraph (A) to, in accordance with the rules issued by 
     the Commission under paragraph (4), submit to the Commission 
     documentation that establishes that the covered issuer is not 
     owned or controlled by a governmental entity in the foreign 
     jurisdiction described in subparagraph (A)(i).
       ``(3) Trading prohibition after 3 years of non-
     inspections.--
       ``(A) In general.--If the Commission determines that a 
     covered issuer has 3 consecutive non-inspection years, the 
     Commission shall prohibit the securities of the covered 
     issuer from being traded on a national securities exchange or 
     alternative trading system.
       ``(B) Removal of initial prohibition.--If, after the 
     Commission imposes a prohibition on a covered issuer under 
     subparagraph (A), the covered issuer certifies to the 
     Commission that the covered issuer has retained a registered 
     public accounting firm that the Board has inspected under 
     this section to the satisfaction of the Commission, the 
     Commission shall end that prohibition.
       ``(C) Recurrence of non-inspection years.--If, after the 
     Commission ends a prohibition under subparagraph (B) or (D) 
     with respect to a covered issuer, the Commission determines 
     that the covered issuer has a non-inspection year, the 
     Commission shall prohibit the securities of the covered 
     issuer from being traded on a national securities exchange or 
     alternative trading system.
       ``(D) Removal of subsequent prohibition.--If, after the end 
     of the 5-year period beginning on the date on which the 
     Commission imposes a prohibition on a covered issuer under 
     subparagraph (C), the covered issuer certifies to the 
     Commission that the covered issuer will retain a registered 
     public accounting firm that the Board is able to inspect 
     under this section, the Commission shall end that 
     prohibition.
       ``(4) Rules.--Not later than 90 days after the date of 
     enactment of this subsection, the Commission shall issue 
     rules that establish the manner and form in which a covered 
     issuer shall make a submission required under paragraph 
     (2)(B).''.
                                 ______