H.R. 2064 would broaden some of the federal reporting exemptions available to emerging growth companies (EGCs) and allow a grace period to continue operations as an EGC if the company’s status changes. (An EGC is a company that has issued or proposes to issue stock and had gross revenues of less than $1 billion during its most recently completed fiscal year; companies can retain that designation from the Securities and Exchange Commission (SEC) for up to five years.) The bill also would require the SEC to revise some of its forms to allow for a simplified registration process for EGCs.
Based on information from the SEC, CBO expects that the agency would spend $1 million under H.R. 2064 to revise instructions and other documents to reflect the new treatment of EGCs. In addition, limiting the information EGCs would need to report could increase the SEC’s workload to review registration statements. Because the SEC is authorized to collect fees sufficient to offset its annual appropriation, CBO estimates that the net budgetary effect of H.R. 2064 would be negligible, assuming appropriation actions consistent with the agency’s authority.
Enacting H.R. 2064 would not affect direct spending or revenues; therefore, pay-as-you-go procedures do not apply.
H.R. 2064 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would not affect the budgets of state, local, or tribal governments.
