2015 US Code
Title 15 - Commerce and Trade (Sections 1 - 8405)
Chapter 98 - Public Company Accounting Reform and Corporate Responsibility (Sections 7201 - 7266)
Subchapter I - Public Company Accounting Oversight Board (Sections 7211 - 7220)
Sec. 7219 - Funding
|Publication Title||United States Code, 2012 Edition, Supplement 3, Title 15 - COMMERCE AND TRADE|
|Category||Bills and Statutes|
|Collection||United States Code|
|SuDoc Class Number||Y 1.2/5:|
|Contained Within||Title 15 - COMMERCE AND TRADE|
CHAPTER 98 - PUBLIC COMPANY ACCOUNTING REFORM AND CORPORATE RESPONSIBILITY
SUBCHAPTER I - PUBLIC COMPANY ACCOUNTING OVERSIGHT BOARD
Sec. 7219 - Funding
|Laws In Effect As Of Date||January 3, 2016|
|Source Credit||Pub. L. 107-204, title I, §109, July 30, 2002, 116 Stat. 769; Pub. L. 111-203, title IX, §982(h), July 21, 2010, 124 Stat. 1930.|
|Statutes at Large References||116 Stat. 769|
124 Stat. 1930
|Public and Private Laws||Public Law 107-204, Public Law 111-203|
The Board, and the standard setting body designated pursuant to section 77s(b) of this title, 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 7211(d) of this title.(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 7212(e) of this title 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 (j), 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), and among brokers and dealers, in accordance with subsection (h), and allowing for differentiation among classes of issuers, brokers and dealers, as appropriate.(3) Brokers and dealers
The Board shall begin the allocation, assessment, and collection of fees under paragraph (2) with respect to brokers and dealers with the payment of support fees to fund the first full fiscal year beginning after July 21, 2010.(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) Allocation of accounting support fees among brokers and dealers(1) Obligation to pay
Each broker or dealer shall pay to the Board the annual accounting support fee allocated to such broker or dealer under this section.(2) Allocation
Any amount due from a broker or dealer (or from a particular class of brokers and dealers) under this section shall be allocated among brokers and dealers and payable by the broker or dealer (or the brokers and dealers in the particular class, as applicable).(3) Proportionality
The amount due from a broker or dealer shall be in proportion to the net capital of the broker or dealer (before or after any adjustments), compared to the total net capital of all brokers and dealers (before or after any adjustments), in accordance with rules issued by the Board.(i) Omitted(j) 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.(k) 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).
(Pub. L. 107–204, title I, §109, July 30, 2002, 116 Stat. 769; Pub. L. 111–203, title IX, §982(h), July 21, 2010, 124 Stat. 1930.)CODIFICATION
Section is comprised of section 109 of Pub. L. 107–204. Subsec. (i) of section 109 of Pub. L. 107–204 amended section 78m of this title.AMENDMENTS
2010—Subsec. (c)(2). Pub. L. 111–203, §982(h)(1), substituted "subsection (j)" for "subsection (i)".
Subsec. (d)(2). Pub. L. 111–203, §982(h)(2)(A), substituted "and among brokers and dealers, in accordance with subsection (h), and allowing for differentiation among classes of issuers, brokers and dealers, as appropriate" for "allowing for differentiation among classes of issuers, as appropriate".
Subsec. (d)(3). Pub. L. 111–203, §982(h)(2)(B), added par. (3).
Subsecs. (h) to (k). Pub. L. 111–203, §982(h)(3), (4), added subsec. (h) and redesignated former subsecs. (h) to (j) as (i) to (k), respectively.EFFECTIVE DATE OF 2010 AMENDMENT
Amendment by Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of Title 12, Banks and Banking.
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