Section 1 Short title
This Act may be cited as the “Responsible Accounting Standards Act of 2023”.
Responsible Accounting Standards Act of 2023
A BILL
To amend the Securities Act of 1933 to require the accounting principles standard setting body to comply with the Administrative Procedure Act and the Government in the Sunshine Act, to require the head of such body to testify annually before Congress, and for other purposes.
Sec. 2 Accounting principles standard setting body reforms
Administrative procedures for adoption of accounting principles— Section 19(b) of the Securities Act of 1933 (15 U.S.C. 77s(b)) is amended by adding at the end the following:
“(3) Administrative procedures for adoption of accounting principles—When adopting an accounting principle, the standard setting body described in paragraph (1) shall—
“(A) follow procedures that are as close as practicable to those requirements for a Federal agency issuing a rule under chapter 5 of title 5, United States Code (commonly referred to as the “Administrative Procedure Act”); and
“(B) carry out the cost benefit analysis described under section 6(a)(3)(C) of Executive Order 12866 for a significant regulatory action, to the extent the requirements for such analysis relate to the efficient functioning of the economy and private markets, and the cost of businesses complying with the action.”
Open meeting requirement— Section 19(b) of the Securities Act of 1933 (15 U.S.C. 77s(b)), as amended by subsection (a), is further amended by adding at the end the following:
“(4) Open meeting requirement—The requirements under section 552b of title 5, United States Code (commonly referred to as the “Government in the Sunshine Act”) shall apply to a standard setting body described in paragraph (1) to the same extent as such requirements apply to an agency.”
Testimony by the head of the standard setting body— Section 19(b) of the Securities Act of 1933 (15 U.S.C. 77s(b)), as amended by subsection (b), is further amended by adding at the end the following:
“(5) Congressional testimony—The head of each standard setting body described in paragraph (1) shall annually testify before the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate.”
Report on implementation— Not later than the end of the 3-month period beginning on the date of enactment of this Act, the Chief Accountant of the Securities and Exchange Commission, in consultation with the standard setting body described under section 19(b)(1) of the Securities Act of 1933, shall issue a report to the Congress describing the steps taken by the standard setting body to implement the requirements in the amendments made by this section.