Greenlighting Growth Act

Mr. Speaker, I thank the chairman for his leadership on this and for the opportunity to present today.

Mr. Speaker, I rise in strong support to ask my colleagues to support H.R. 3343, the Greenlighting Growth Act, a bill which I introduced with the subcommittee chair, Ms. Wagner.

This bill will make business easier for small companies right here in America. That is something we all agree on. Too often, regulations make it harder than it should be, especially for entrepreneurs and emerging businesses trying to make the next step.

In 2012, Congress worked to fix that problem, passing the JOBS Act to create a more affordable path for smaller companies to go public, raise capital, and fuel the next wave of American innovation, but there is a problem. After going public, these same companies can get hit with extra paperwork if they try to grow through acquisitions.

The current law undermines the incentives that the JOBS Act set up, so we look to change it with H.R. 3343. The bill fixes the problem and keeps the rule simple and consistent so that small companies can focus on growing, not growing government paperwork. That means more companies will go

public, raise capital, grow, and create jobs.

That was the goal of the JOBS Act, and that is what this bill will accomplish. Small businesses shouldn't be punished for success. They should be encouraged to grow, build, hire, and do that right here in the good old USA.

This is a simple, targeted fix with a big impact. It cuts red tape and keeps America's capital markets open and accessible for the next generation of job creators.

Let's green-light growth. Let's pass this bill and keep America's strong economy.

Mr. Speaker, I ask all of my colleagues to join me in supporting H.R. 3343.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, as a special accommodation for their smaller size and to reduce their regulatory burden, emerging growth companies, known as EGCs, are typically only required to provide 2 years of audited financials when they first go public. Other public companies, on the other hand, are required to provide 3 years of audited financials when they go public. In some situations, an EGC must provide 3 years of financials, such as an EGC acquiring another company or conducting a follow-on offering after its IPO.

This bill will eliminate this regulatory hurdle by ensuring EGCs only need to provide 2 years, not 3, of audited financials across the board, whether for an IPO, an acquisition, or a follow-on offering.

This bipartisan legislation will further reduce the burden on EGCs trying to raise capital, cutting red tape and burdensome regulations to help unleash economic growth.

Mr. Speaker, I urge my colleagues to vote ``yes'' on this bipartisan bill, and I reserve the balance of my time.

Mr. Speaker, I yield myself the balance of my time.

Mr. Speaker, when emerging growth companies were created during the bipartisan JOBS Act nearly a decade ago, the goal was to make it easier for new companies to access capital with less red tape while still ensuring their investors have critical disclosures.

This bill ensures that EGCs are treated consistently by balancing the need for financial transparency while also ensuring burdensome regulations are not so high that it stifles innovation and hinders growth.

I thank Mr. Haridopolos for his bipartisan leadership on this legislation.

Mr. Speaker, again, I urge my colleagues to support this bill, and I yield back the balance of my time.

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 3343) to amend the Federal securities laws to specify the periods for which financial statements are required to be provided by an emerging growth company, and for other purposes, as amended.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on this bill.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise in strong support of H.R. 3343, the Greenlighting Growth Act.

Currently, title 1 of the JOBS Act allows emerging growth companies, EGCs, to provide 2 years of audited financial statements rather than 3 years in an initial public offering registration statement. However, there are exceptions that cause confusion.

Mr. Haridopolos' bill provides clarity to title 1 by directing that current and former EGCs do not need to provide financial statements for a period earlier than the 2 years of audited financial statements required during the EGC's initial public offering.

This will increase efficiency and eliminate situations where emerging growth companies were unexpectedly required to provide more extensive disclosures than necessary.

Mr. Speaker, I urge all of my colleagues to join me in supporting this bill, and I reserve the balance of my time.

Mr. Speaker, I yield to the gentleman from Florida (Mr. Haridopolos), the author of this important bill and our committee majority whip.

Mr. Speaker, I yield myself the balance of my time.

Mr. Speaker, for the reasons that Mr. Haridopolos so eloquently argued, I ask all my colleagues to support this bill, and I yield back the balance of my time.