,i  #aae? ,,congress  #b;d ,session  ,h4
 ,r4 #fjba  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,june #f1 #bjah,mr4   
,hill 7= himself & ,mr4 ,gonzalez (     
,texas7 introduc$ ! foll[+ bill2 :i* 0  
ref]r$ to ! ,committee on ,f9ancial     
,s]vices  ,a ,,bill  ,to am5d !         
,s>banes-,oxley ,act ( #bjjb to exclude 
privately held1 non-cu/ody brok]s &     
deal]s t are 9 good /&+ f c]ta9         
requirem5ts "u title ,i ( t ,act1 & =   
o!r purposes4  #a4 ,%ort title ,?is ,act
 may be cit$ z ! ,small ,bus9ess ,audit 
,correction ,act ( #bjah4  #b4          
,exemption  7a7 ,am5dm5ts to !          
,s>banes-,oxley ,act ( #bjjb ,title ,i (
 ! ,s>banes-,oxley ,act ( #bjjb 7#ae    
,u4,s4,c4 #gbaa et seq47 is am5d$--     
7#a7 9 section #aja7;e77#a7 7#ae        
,u4,s4,c4 #gbaa7;e77#a771 by /rik+      
brok]s1 & deal]s & ins]t+ brok]s1       
deal]s1 & non-cu/ody brok]s or deal]s t 
are privately held & 9 good /&+2 &  7#b7
 9 section #aaj 7#ae ,u4,s4,c4 #gbbj7-- 
7,a7 9 p>agraph 7#c7-- 7i7 by /rik+ ,!  

t]m & ins]t+ ,except z o!rwise expressly
 provid$1 ! t]m2 &  7ii7 by ins]t+ 1    
except t ! t]m does n include a         
non-cu/ody brok] or deal] t is privately
 held & 9 good /&+ aft] regi/]$ public  
acc\nt+ firm2  7,b7 9 p>agraph 7#d7--   
7i7 by /rik+ ,! t]m & ins]t+ ,except z  
o!rwise expressly provid$1 ! t]m2 &     
7ii7 by ins]t+ 1 except t ! t]m does n  
include a non-cu/ody brok] or deal] t is
 privately held & 9 good /&+ aft]       
regi/]$ public acc\nt+ firm2  7,c7 by   
r$esignat+ p>agraphs 7#e7 & 7#f7 z      
p>agraphs 7#h7 & 7#i71 respectively2 &  
7,d7 by ins]t+ aft] p>agraph 7#d7 !     
foll[+3  7#e7 ,9 good /&+ ,! t]m 9 good 
/&+ means1 ) respect to a brok] or deal]
 7z ^? t]ms are def9$ 9 section #c7;a7 (
 ! ,securities ,ex*ange ,act ( #aicd    
7#ae ,u4,s4,c4 #gh;c7a7771 t1 z ( ! la/ 
day ( ! mo/ rec5tly complet$ fiscal ye> 
( ! brok] or deal]1 z applicable1 !     
brok] or deal]--  7,a7 0 regi/]$ ) !    
,commission2  7,b7 0 lic5s$ by1 &       
regi/]$ )1 ! ,f9ancial ,indu/ry         

,regulatory ,au?ority or a national     
securities ex*ange t is regi/]$ ) !     
,commission "u section #f ( !           
,securities ,ex*ange ,act ( #aicd 7#ae  
,u4,s4,c4 #gh;f72  7,c7 0 compliant ) ! 
m9imum doll> net capital requirem5ts "u 
section #bdj4ae;c#c-a ( title #ag1 ,code
 ( ,f$]al ,regulations1 or any successor
 regulation2  7,d7 _h n1 dur+ ! #aj-ye> 
p]iod prec$+ t date1 be5 convict$ ( a   
felony "u ,f$]al or ,/ate law2 &  7,e7 0
 n b>r$ f regi/]+1 or _h n be5 expell$ f
 regi/ration1 ) ! ,commission1 !        
,f9ancial ,indu/ry ,regulatory          
,au?ority1 ! ,commodity ,futures ,trad+ 
,commission1 or any ,/ate regulatory    
ag5cy1 )\t reg>d to :e!r ! brok] or     
deal] _h1 z ( t date1 fil$ an appeal    
*all5g+ su* a b> or expulsion1 z        
applicable4  7#f7 ,non-cu/ody brok] or  
deal] ,! t]m non-cu/ody brok] or deal]  
means a brok] or deal] 7z ^? t]ms are   
def9$ 9 section #c7;a7 ( ! ,securities  
,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4    
#gh;c7a7771 z applicable1 t--  7,a7 z ( 

! la/ day ( ! mo/ rec5tly complet$      
fiscal ye> ( ! brok] or deal]-- 7i7 _h n
 less ?an #a & n m ?an #aej regi/]$     
p]sons hold+ a securities lic5se regi/]$
 ) ! brok] or deal]2  7ii7 cle>$ ea*    
eligible transaction ) & = a consum] on 
a fully disclos$ basis ) a cle>+ brok]  
or deal] or a memb] ( a national        
securities ex*ange t is regi/]$ ) !     
,commission "u section #f ( !           
,securities ,ex*ange ,act ( #aicd 7#ae  
,u4,s4,c4 #gh;f72  7iii7 did n1 z a     
matt] ( ord9>y bus9ess practice 9       
connection ) ! activities ( ! brok] or  
deal]1 elect to receive cu/om] *ecks1   
drafts1 or o!r evid5ce ( indebt$ness    
made payable to ! brok] or deal] or a   
p]son o!r ?an ! requisite regi/]$ brok] 
or deal] c>ry+ ! acc\nt ( a cu/om]1     
escr[ ag5t1 issu]1 und]writ]1 sponsor1  
or o!r di/ributor ( securities2  7iv7   
did n o!rwise hold funds or securities =
 cu/om]s2 &  7v7 if requir$ "u section  
#c7;a77#b7 ( ! ,securities ,inve/or     
,protection ,act ( #aigj 7#ae ,u4,s4,c4 

#gh;ccc7a77#b771 0 a memb] ( !          
,securities ,inve/or ,protection        
,corporation2 &  7,b7 dur+ ! mo/ rec5tly
 complet$ fiscal ye> ( ! brok] or deal]1
 claim$ exemption f section             
#bdj4ae;c#c-c ( title #ag1 ,code (      
,f$]al ,regulations1 or any successor   
regulation4  7#g7 ,privately held ,! t]m
 privately held means1 ) respect to a   
brok] or deal] 7z ^? t]ms are def9$ 9   
section #c7;a7 ( ! ,securities ,ex*ange 
,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a7771 
t ! brok] or deal]1 z applicable1 is n  
an issu]4  4  7b7 ,am5dm5ts to          
regulations ,n lat] ?an #fj days aft] ! 
date ( enactm5t ( ?is ,act1 !           
,securities & ,ex*ange ,commission %all 
make any necess>y am5dm5ts to           
regulations ( ! ,commission t are 9     
effect z ( ! date ( enactm5t ( ?is ,act 
9 ord] to c>ry out ?is ,act & ! am5dm5ts
 made by ?is ,act4  7c7 ,effective date 
,?is ,act1 & ! am5dm5ts made by ?is     
,act1 %all take effect on ! date t is   
#fj days aft] ! date ( enactm5t ( ?is   

,act4