[Congressional Record Volume 171, Number 124 (Monday, July 21, 2025)]
[House]
[Pages H3503-H3504]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
GREENLIGHTING GROWTH ACT
Mr. HILL of Arkansas. Mr. Speaker, I move to suspend the rules and
pass the bill (H.R. 3343) to amend the Federal securities laws to
specify the periods for which financial statements are required to be
provided by an emerging growth company, and for other purposes, as
amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 3343
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 ``Greenlighting Growth Act''.
SEC. 2. FINANCIAL STATEMENT REPORTING REQUIREMENTS FOR
EMERGING GROWTH COMPANIES.
(a) Securities Act of 1933.--Section 7(a)(2) of the
Securities Act of 1933 (15 U.S.C. 77g(a)(2)) is amended--
(1) in subparagraph (A), by striking ``and'' at the end;
(2) by redesignating subparagraph (B) as subparagraph (C);
and
(3) by inserting after subparagraph (A) the following:
``(B) need not present acquired company financial
statements or information otherwise required under section
210.3-05 or section 210.8-04 of title 17, Code of Federal
Regulations, or any successor thereto, for any period prior
to the earliest audited period of the emerging growth company
presented in connection with its initial public offering and,
thereafter, in no event shall an issuer that was an emerging
growth company but is no longer an emerging growth company be
required to present financial statements of the issuer (or
acquired company financial statements or information
otherwise required under section 210.3-05 or section 210.8-04
of title 17, Code of Federal Regulations, or any successor
thereto) for any period prior to the earliest audited period
of the emerging growth company presented in connection with
its initial public offering; and''.
(b) Securities Exchange Act of 1934.--Section 12(b)(1)(K)
of the Securities Exchange Act of 1934 (15 U.S.C.
78l(b)(1)(K)) is amended by striking ``firm'' and inserting
``firm, provided that the application of an emerging growth
company need not present acquired company financial
statements or information otherwise required under section
210.3-05 or section 210.8-04 of title 17, Code of Federal
Regulations, or any successor thereto, for any period prior
to the earliest audited period of the emerging growth company
presented in connection with its application and, thereafter,
in no event shall an issuer that was an emerging growth
company but is no longer an emerging growth company be
required to present financial statements of the issuer (or
acquired company financial statements or information
otherwise required under section 210.3-05 or section 210.8-04
of title 17, Code of Federal Regulations, or any successor
thereto) for any period prior to the earliest audited period
of the emerging growth company presented in connection with
any application under this subsection''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Arkansas (Mr. Hill) and the gentleman from New Jersey (Mr. Gottheimer)
each will control 20 minutes.
The Chair recognizes the gentleman from Arkansas.
General Leave
Mr. HILL of Arkansas. Mr. Speaker, I ask unanimous consent that all
Members may have 5 legislative days in which to revise and extend their
remarks and include extraneous material on this bill.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Arkansas?
There was no objection.
Mr. HILL of Arkansas. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise in strong support of H.R. 3343, the Greenlighting
Growth Act.
Currently, title 1 of the JOBS Act allows emerging growth companies,
EGCs, to provide 2 years of audited financial statements rather than 3
years in an initial public offering registration statement. However,
there are exceptions that cause confusion.
Mr. Haridopolos' bill provides clarity to title 1 by directing that
current and former EGCs do not need to provide financial statements for
a period earlier than the 2 years of audited financial statements
required during the EGC's initial public offering.
This will increase efficiency and eliminate situations where emerging
growth companies were unexpectedly required to provide more extensive
disclosures than necessary.
Mr. Speaker, I urge all of my colleagues to join me in supporting
this bill, and I reserve the balance of my time.
Mr. GOTTHEIMER. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, as a special accommodation for their smaller size and to
reduce their regulatory burden, emerging growth companies, known as
EGCs, are typically only required to provide 2 years of audited
financials when they first go public. Other public companies, on the
other hand, are required to provide 3 years of audited financials when
they go public. In some situations, an EGC must provide 3 years of
financials, such as an EGC acquiring another company or conducting a
follow-on offering after its IPO.
This bill will eliminate this regulatory hurdle by ensuring EGCs only
need to provide 2 years, not 3, of audited financials across the board,
whether for an IPO, an acquisition, or a follow-on offering.
This bipartisan legislation will further reduce the burden on EGCs
trying to raise capital, cutting red tape and burdensome regulations to
help unleash economic growth.
Mr. Speaker, I urge my colleagues to vote ``yes'' on this bipartisan
bill, and I reserve the balance of my time.
Mr. HILL of Arkansas. Mr. Speaker, I yield to the gentleman from
Florida (Mr. Haridopolos), the author of this important bill and our
committee majority whip.
Mr. HARIDOPOLOS. Mr. Speaker, I thank the chairman for his leadership
on this and for the opportunity to present today.
Mr. Speaker, I rise in strong support to ask my colleagues to support
H.R. 3343, the Greenlighting Growth Act, a bill which I introduced with
the subcommittee chair, Ms. Wagner.
This bill will make business easier for small companies right here in
America. That is something we all agree on. Too often, regulations make
it harder than it should be, especially for entrepreneurs and emerging
businesses trying to make the next step.
In 2012, Congress worked to fix that problem, passing the JOBS Act to
create a more affordable path for smaller companies to go public, raise
capital, and fuel the next wave of American innovation, but there is a
problem. After going public, these same companies can get hit with
extra paperwork if they try to grow through acquisitions.
The current law undermines the incentives that the JOBS Act set up,
so we look to change it with H.R. 3343. The bill fixes the problem and
keeps the rule simple and consistent so that small companies can focus
on growing, not growing government paperwork. That means more companies
will go
[[Page H3504]]
public, raise capital, grow, and create jobs.
That was the goal of the JOBS Act, and that is what this bill will
accomplish. Small businesses shouldn't be punished for success. They
should be encouraged to grow, build, hire, and do that right here in
the good old USA.
This is a simple, targeted fix with a big impact. It cuts red tape
and keeps America's capital markets open and accessible for the next
generation of job creators.
Let's green-light growth. Let's pass this bill and keep America's
strong economy.
Mr. Speaker, I ask all of my colleagues to join me in supporting H.R.
3343.
Mr. GOTTHEIMER. Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, when emerging growth companies were created during the
bipartisan JOBS Act nearly a decade ago, the goal was to make it easier
for new companies to access capital with less red tape while still
ensuring their investors have critical disclosures.
{time} 1710
This bill ensures that EGCs are treated consistently by balancing the
need for financial transparency while also ensuring burdensome
regulations are not so high that it stifles innovation and hinders
growth.
I thank Mr. Haridopolos for his bipartisan leadership on this
legislation.
Mr. Speaker, again, I urge my colleagues to support this bill, and I
yield back the balance of my time.
Mr. HILL of Arkansas. Mr. Speaker, I yield myself the balance of my
time.
Mr. Speaker, for the reasons that Mr. Haridopolos so eloquently
argued, I ask all my colleagues to support this bill, and I yield back
the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Arkansas (Mr. Hill) that the House suspend the rules and
pass the bill, H.R. 3343, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
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