Internal Control Disclosure Improvement Act of 2020

I 116TH CONGRESS 2D SESSION H. R. 8841 To amend the Securities Exchange Act of 1934 to require that certain issuers make disclosures regarding general ledger accounts reconciliation, and for other purposes. IN THE HOUSE OF REPRESENTATIVES DECEMBER 2, 2020 Mr. SHERMAN (for himself and Mr. SWALWELL of California) introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the Securities Exchange Act of 1934 to require that certain issuers make disclosures regarding general ledger accounts reconciliation, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Internal Control Dis- 4 closure Improvement Act of 2020’’. 5 SEC. 2. GENERAL LEDGER ACCOUNTS RECONCILIATION. 6 Section 13 of the Securities Exchange Act of 1934 7 (15 U.S.C. 78m) is amended by adding at the end the 8 following: 9 VerDate Sep 11 2014 00:14 Dec 11, 2020 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H8841.IH H8841 pbinns on DSKJLVW7X2PROD with BILLS 2 •HR 8841 IH ‘‘(s) GENERAL LEDGER ACCOUNTS RECONCILI- 1 ATION.— 2 ‘‘(1) IN GENERAL.—Each covered issuer re- 3 quired to file an annual or quarterly report under 4 subsection (a) shall disclose in that report whether 5 such covered issuer has, at the time of such report, 6 completed a general ledger accounts reconciliation 7 for the most recent fiscal quarter and most recent 8 fiscal year, respectively. 9 ‘‘(2) COVERED ISSUER DEFINED.—For pur- 10 poses of this subsection, the term ‘covered issuer’ 11 means an issuer with respect to which a civil or 12 criminal penalty has been imposed under the securi- 13 ties laws by reason of the internal control over fi- 14 nancial reporting of such issuer related to the failure 15 of such issuer to reconcile general ledger accounts.’’. 16 Æ VerDate Sep 11 2014 00:14 Dec 11, 2020 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\H8841.IH H8841 pbinns on DSKJLVW7X2PROD with BILLS