,i  #aaeth ,,congress  #b;d ,session    
,h4 ,r4 #fjba  ,,in ,,the ,,house ,,of  
,,representatives  ,june #f1 #bjah,mr4  
,hill 7for himself and ,mr4 ,gonzalez of
 ,texas7 introduced the following bill2 
which was referred to the ,committee on 
,financial ,services  ,a ,,bill  ,to    
amend the ,sarbanes-,oxley ,act of #bjjb
 to exclude privately held1 non-custody 
brokers and dealers that are in good    
standing from certain requirements under
 title ,i of that ,act1 and for other   
purposes4  #a4 ,short title ,this ,act  
may be cited as the ,small ,business    
,audit ,correction ,act of #bjah4  #b4  
,exemption  7a7 ,amendments to the      
,sarbanes-,oxley ,act of #bjjb ,title ,i
 of the ,sarbanes-,oxley ,act of #bjjb  
7#ae ,u4,s4,c4 #gbaa et seq47 is        
amended--  7#a7 in section #aja7;e77#a7 
7#ae ,u4,s4,c4 #gbaa7;e77#a771 by       
striking brokers1 and dealers and       
inserting brokers1 dealers1 and         
non-custody brokers or dealers that are 
privately held and in good standing2 and

  7#b7 in section #aaj 7#ae ,u4,s4,c4   
#gbbj7--  7,a7 in paragraph 7#c7-- 7i7  
by striking ,the term and inserting     
,except as otherwise expressly provided1
 the term2 and  7ii7 by inserting 1     
except that the term does not include a 
non-custody broker or dealer that is    
privately held and in good standing     
after registered public accounting firm2
  7,b7 in paragraph 7#d7-- 7i7 by       
striking ,the term and inserting ,except
 as otherwise expressly provided1 the   
term2 and  7ii7 by inserting 1 except   
that the term does not include a        
non-custody broker or dealer that is    
privately held and in good standing     
after registered public accounting firm2
  7,c7 by redesignating paragraphs 7#e7 
and 7#f7 as paragraphs 7#h7 and 7#i71   
respectively2 and  7,d7 by inserting    
after paragraph 7#d7 the following3     
7#e7 ,in good standing ,the term in good
 standing means1 with respect to a      
broker or dealer 7as those terms are    
defined in section #c7;a7 of the        

,securities ,exchange ,act of #aicd 7#ae
 ,u4,s4,c4 #gh;c7a7771 that1 as of the  
last day of the most recently completed 
fiscal year of the broker or dealer1 as 
applicable1 the broker or dealer--  7,a7
 was registered with the ,commission2   
7,b7 was licensed by1 and registered    
with1 the ,financial ,industry          
,regulatory ,authority or a national    
securities exchange that is registered  
with the ,commission under section #f of
 the ,securities ,exchange ,act of #aicd
 7#ae ,u4,s4,c4 #gh;f72  7,c7 was       
compliant with the minimum dollar net   
capital requirements under section      
#bdj4ae;c#c-a of title #ag1 ,code of    
,federal ,regulations1 or any successor 
regulation2  7,d7 had not1 during the   
#aj-year period preceding that date1    
been convicted of a felony under        
,federal or ,state law2 and  7,e7 was   
not barred from registering1 or had not 
been expelled from registration1 with   
the ,commission1 the ,financial         
,industry ,regulatory ,authority1 the   

,commodity ,futures ,trading            
,commission1 or any ,state regulatory   
agency1 without regard to whether the   
broker or dealer had1 as of that date1  
filed an appeal challenging such a bar  
or expulsion1 as applicable4  7#f7      
,non-custody broker or dealer ,the term 
non-custody broker or dealer means a    
broker or dealer 7as those terms are    
defined in section #c7;a7 of the        
,securities ,exchange ,act of #aicd 7#ae
 ,u4,s4,c4 #gh;c7a7771 as applicable1   
that--  7,a7 as of the last day of the  
most recently completed fiscal year of  
the broker or dealer-- 7i7 had not less 
than #a and not more than #aej          
registered persons holding a securities 
license registered with the broker or   
dealer2  7ii7 cleared each eligible     
transaction with and for a consumer on a
 fully disclosed basis with a clearing  
broker or dealer or a member of a       
national securities exchange that is    
registered with the ,commission under   
section #f of the ,securities ,exchange 

,act of #aicd 7#ae ,u4,s4,c4 #gh;f72    
7iii7 did not1 as a matter of ordinary  
business practice in connection with the
 activities of the broker or dealer1    
elect to receive customer checks1       
drafts1 or other evidence of            
indebtedness made payable to the broker 
or dealer or a person other than the    
requisite registered broker or dealer   
carrying the account of a customer1     
escrow agent1 issuer1 underwriter1      
sponsor1 or other distributor of        
securities2  7iv7 did not otherwise hold
 funds or securities for customers2 and 
7v7 if required under section #c7;a77#b7
 of the ,securities ,investor           
,protection ,act of #aigj 7#ae ,u4,s4,c4
 #gh;ccc7a77#b771 was a member of the   
,securities ,investor ,protection       
,corporation2 and  7,b7 during the most 
recently completed fiscal year of the   
broker or dealer1 claimed exemption from
 section #bdj4ae;c#c-c of title #ag1    
,code of ,federal ,regulations1 or any  
successor regulation4  7#g7 ,privately  

held ,the term privately held means1    
with respect to a broker or dealer 7as  
those terms are defined in section      
#c7;a7 of the ,securities ,exchange ,act
 of #aicd 7#ae ,u4,s4,c4 #gh;c7a7771    
that the broker or dealer1 as           
applicable1 is not an issuer4  4  7b7   
,amendments to regulations ,not later   
than #fj days after the date of         
enactment of this ,act1 the ,securities 
and ,exchange ,commission shall make any
 necessary amendments to regulations of 
the ,commission that are in effect as of
 the date of enactment of this ,act in  
order to carry out this ,act and the    
amendments made by this ,act4  7c7      
,effective date ,this ,act1 and the     
amendments made by this ,act1 shall take
 effect on the date that is #fj days    
after the date of enactment of this     
,act4