Political Quotes

“I thank Chairman Hensarling and Congressman Fitzpatrick for working with me on this narrow, targeted exemption to provide commonsense, regulatory relief for companies on the cutting edge of scientific and medical research. I have heard from companies throughout my district that burdensome and unnecessary regulations continue to stifle their ability to grow and succeed. The Fostering Innovation Act allows certain emerging growth companies, including some biopharmaceutical companies, to spend valuable resources on product research and development instead of costly and unnecessary external audits. Currently, EGCs are exempt from certain regulatory requirements for 5 years after their initial public offering. One of the requirements that EGCs are exempt from is Sarbanes-Oxley section 404(b), which requires public companies to obtain an external audit on the effectiveness of their internal controls for financial reporting. This reporting requirement is costly and unnecessary because management is still required to assess internal controls, and these EGCs, by definition, have very limited public exposure. H.R. 4139 is a very narrow fix that temporarily extends the Sarbanes- Oxley section 404(b) exemption for an additional 5 years for a small subset of EGCs with an annual average revenue of less than $50 million and less than $700 million in public float. This will enable these EGCs to use valuable resources to remain competitive, stable, and, ultimately, successful.…”