,,ii  #aafth ,,congress  #ast ,session  
,s4 #ide  ,,in ,,the ,,senate ,,of ,,the
 ,,united ,,states  ,march #bh1         
#bjai,mr4 ,kennedy 7for himself and ,mr4
 ,van ,hollen7 introduced the following 
bill2 which was read twice and referred 
to the ,committee on ,banking1 ,housing1
 and ,urban ,affairs  ,a ,,bill  ,to    
amend the ,sarbanes-,oxley ,act of #bjjb
 to require certain issuers to disclose 
to the ,securities and ,exchange        
,commission information regarding       
foreign jurisdictions that prevent the  
,public ,company ,accounting ,oversight 
,board from performing inspections under
 that ,act1 and for other purposes4  #a4
 ,short title ,this ,act may be cited as
 the ,holding ,foreign ,companies       
,accountable ,act4  #b4 ,disclosure     
requirement  ,section #ajd of the       
,sarbanes-,oxley ,act of #bjjb 7#ae     
,u4,s4,c4 #gbad7 is amended by adding at
 the end the following3  7i7 ,disclosure
 regarding foreign jurisdictions that   
prevent inspections  7#a7 ,definitions  

,in this subsection-- 7,a7 the term     
covered issuer means an issuer that is  
required to file reports under section  
#ac or #ae7;d7 of the ,securities       
,exchange ,act of #aicd 7#ae ,u4,s4,c4  
#ghm2 #gho7d772 and  7,b7 the term      
non-inspection year means1 with respect 
to a covered issuer1 a year-- 7i7 during
 which the ,commission identifies the   
covered issuer under paragraph 7#b77;,a7
 with respect to every report described 
in subparagraph 7,a7 filed by the       
covered issuer during that year2 and    
7ii7 that begins after the date of the  
enactment of this subsection4  7#b7     
,disclosure to ,commission ,the         
,commission shall-- 7,a7 identify each  
covered issuer that1 with respect to the
 preparation of the audit report on the 
financial statement of the covered      
issuer that is included in a report     
described in paragraph 7#a77;,a7 filed  
by the covered issuer1 retains a        
registered public accounting firm that  
has a branch or office that-- 7i7 is    

located in a foreign jurisdiction2 and  
7ii7 the ,board is unable to inspect    
under this section2 and  7,b7 require   
each covered issuer identified under    
subparagraph 7,a7 to1 in accordance with
 the rules issued by the ,commission    
under paragraph 7#d71 submit to the     
,commission documentation that          
establishes that the covered issuer is  
not owned or controlled by a            
governmental entity in the foreign      
jurisdiction described in subparagraph  
7,a77i74  7#c7 ,trading prohibition     
after #c years of non-inspections  7,a7 
,in general ,if the ,commission         
determines that a covered issuer has #c 
consecutive non-inspection years1 the   
,commission shall prohibit the          
securities of the covered issuer from   
being traded on a national securities   
exchange4  7,b7 ,removal of initial     
prohibition ,if1 after the ,commission  
imposes a prohibition on a covered      
issuer under subparagraph 7,a71 the     
covered issuer certifies to the         

,commission that the covered issuer has 
retained a registered public accounting 
firm that the ,board has inspected under
 this section to the satisfaction of the
 ,commission1 the ,commission shall end 
that prohibition4  7,c7 ,recurrence of  
non-inspection years ,if1 after the     
,commission ends a prohibition under    
subparagraph 7,b7 or 7,d7 with respect  
to a covered issuer1 the ,commission    
determines that the covered issuer has a
 non-inspection year1 the ,commission   
shall prohibit the securities of the    
covered issuer from being traded on a   
national securities exchange4  7,d7     
,removal of subsequent prohibition ,if1 
after the end of the #e-year period     
beginning on the date on which the      
,commission imposes a prohibition on a  
covered issuer under subparagraph 7,c71 
the covered issuer certifies to the     
,commission that the covered issuer will
 retain a registered public accounting  
firm that the ,board is able to inspect 
under this section1 the ,commission     

shall end that prohibition4  7#d7 ,rules
 ,not later than #ij days after the date
 of enactment of this subsection1 the   
,commission shall issue rules that      
establish the manner and form in which a
 covered issuer shall make a disclosure 
and a submission required under clauses 
7i7 and 7ii7 of paragraph 7#b77;,b71    
respectively4  4