|
|
 |
|
Sarbanes Oxley
Act Section 109
|
SEC. 109.
FUNDING.
(a) IN GENERAL.—The
Board, and the standard setting body
designated
pursuant to section 19(b) of the Securities
Act of 1933,
as amended by
section 108, shall be funded as provided in
this
section.
(b) ANNUAL BUDGETS.—The
Board and the standard setting
body referred
to in subsection (a) shall each establish a
budget
for each
fiscal year, which shall be reviewed and
approved according
to their
respective internal procedures not less than 1
month prior
to the
commencement of the fiscal year to which the
budget pertains
(or at the
beginning of the Board’s first fiscal year,
which may
be a short
fiscal year). The budget of the Board shall be
subject
to approval
by the Commission. The budget for the first
fiscal
year of the
Board shall be prepared and approved promptly
following
the
appointment of the initial five Board members,
to permit
action by the
Board of the organizational tasks contemplated
by
section
101(d).
(c) SOURCES AND USES OF FUNDS.—
(1) RECOVERABLE
BUDGET EXPENSES.—The budget of the
Board
(reduced by any registration or annual fees
received
under section
102(e) for the year preceding the year for
which
the budget is
being computed), and all of the budget of the
standard
setting body referred to in subsection (a),
for each
fiscal year
of each of those 2 entities, shall be payable
from
annual
accounting support fees, in accordance with
subsections
(d) and (e).
Accounting support fees and other receipts of
the
Board and of
such standard-setting body shall not be
considered
public monies
of the United States.
(2) FUNDS GENERATED FROM THE COLLECTION OF
MONETARY
PENALTIES.—Subject
to the availability in advance in an
appropriations
Act, and
notwithstanding subsection (i), all funds
collected by
the Board as a result of the assessment of
monetary
penalties
shall be used to fund a merit scholarship
program
for
undergraduate and graduate students enrolled
in accredited
accounting
degree programs, which program is to be
administered
by the Board
or by an entity or agent identified by
the Board.
(d) ANNUAL ACCOUNTING SUPPORT FEE FOR THE
BOARD.—
(1) ESTABLISHMENT OF
FEE.—The Board shall establish,
with the
approval of the Commission, a reasonable
annual
accounting
support fee (or a formula for the computation
thereof), as
may be necessary or appropriate to establish
and
maintain the
Board. Such fee may also cover costs incurred
in the
Board’s first fiscal year (which may be a
short fiscal
year), or may
be levied separately with respect to such
short
fiscal year.
(2) ASSESSMENTS.—The
rules of the Board under paragraph
(1) shall
provide for the equitable allocation,
assessment, and
collection by
the Board (or an agent appointed by the Board)
of the fee
established under paragraph (1), among
issuers,
in accordance
with subsection (g), allowing for
differentiation
among classes
of issuers, as appropriate.
(e) ANNUAL ACCOUNTING SUPPORT FEE FOR STANDARD
SETTING
BODY.—The
annual accounting support fee for the standard
setting
body referred
to in subsection (a)—
(1) shall be
allocated in accordance with subsection (g),
and assessed
and collected against each issuer, on behalf
of
the standard
setting body, by 1 or more appropriate
designated
collection
agents, as may be necessary or appropriate to
pay
for the
budget and provide for the expenses of that
standard
setting body,
and to provide for an independent, stable
source
of funding
for such body, subject to review by the
Commission;and
(2) may
differentiate among different classes of
issuers.
(f) LIMITATION ON
FEE.—The amount of fees collected
under
this section
for a fiscal year on behalf of the Board or
the standards
setting body,
as the case may be, shall not exceed the
recoverable
budget
expenses of the Board or body, respectively
(which may
include
operating, capital, and accrued items),
referred to in subsection
(c)(1).
(g) ALLOCATION OF ACCOUNTING SUPPORT FEES
AMONG
ISSUERS.—Any
amount due from issuers (or a particular class
of
issuers)
under this section to fund the budget of the
Board or
the standard
setting body referred to in subsection (a)
shall be
allocated
among and payable by each issuer (or each
issuer in
a particular
class, as applicable) in an amount equal to
the total
of such
amount, multiplied by a fraction—
(1) the
numerator of which is the average monthly
equity
market
capitalization of the issuer for the 12-month
period
immediately
preceding the beginning of the fiscal year to
which
such budget
relates; and
(2) the
denominator of which is the average monthly
equity
market
capitalization of all such issuers for such
12-month
period.
(h) CONFORMING
AMENDMENTS.—Section 13(b)(2) of the
Securities
Exchange Act
of 1934 (15 U.S.C. 78m(b)(2)) is amended—
(1) in
subparagraph (A), by striking ‘‘and’’ at the
end; and
(2) in
subparagraph (B), by striking the period at
the
end and
inserting the following: ‘‘; and ‘‘(C)
notwithstanding
any
other provision of law, pay the allocable
share of such issuer
of a
reasonable annual accounting support fee or
fees, determined
in accordance
with section 109of the Sarbanes-Oxley Act of
2002.’’.
(i) RULE OF
CONSTRUCTION.—Nothing in this
section shall be
construed to
render either the Board, the standard setting
body
referred to
in subsection (a), or both, subject to
procedures in
Congress to
authorize or appropriate public funds, or to
prevent
such
organization from utilizing additional sources
of revenue for
its
activities, such as earnings from publication
sales, provided
that each
additional source of revenue shall not
jeopardize, in
the judgment
of the Commission, the actual and perceived
independence
of such
organization.
(j) START-UP EXPENSES
OF THE BOARD.—From the unexpended
balances of
the appropriations to the Commission for
fiscal year
2003, the
Secretary of the Treasury is authorized to
advance to
the Board not
to exceed the amount necessary to cover the
expenses
of the Board
during its first fiscal year (which may be a
short
fiscal year).
Join the Sarbanes Oxley Compliance
Professionals Association (SOXCPA). Membership
is Free:
www.sarbanes-oxley-association.com/How_to_become_member.htm
Member Benefits:
www.sarbanes-oxley-association.com/Member_Benefits.htm
Reading Room
www.sarbanes-oxley-association.com/Reading_Room.htm
Certified Sarbanes Oxley Expert -
Distance Learning and Online Certification
Program
www.sarbanes-oxley-association.com/Distance_Learning_and_Certification.htm
Certified EU Sarbanes Oxley Expert -
Distance Learning and Online Certification
Program
www.sarbanes-oxley-association.com/CEUSOE_Distance_Learning_and_Certification.htm
Privacy and Compliance with the
Federal Trade Commission Fair, the California
Online Privacy Protection Act, the Children
Online Privacy Protection Act, the Privacy
Alliance, the Controlling the Assault of
Non-Solicited Pornography and Marketing Act
www.sarbanes-oxley-association.com/Privacy.htm
|
|
| | | |
 |