The Fostering Innovation Act, HR 6161, was approved last week by the House Capital Markets Subcommittee. The bill would modify the filing status classifications by raising the public float requirement for accelerated filers from $75 million to $250 million and adding a new element, a $100 million revenue component. If the bill were enacted as approved by the Subcommittee, issuers with less than $250 million of public float, or less than $100 million of revenues would be considered non-accelerated filers. Non-accelerated filers are subject to less burdensome reporting requirements than accelerated filers. HR 6161 seems to have broad support among emerging growth company executives, investors and industry groups. They see this as providing some cost savings and, perhaps more important, a measure of relief from what they view as burdensome reporting requirements. Critics argue that it would go farther than the JOBS Act in providing compliance relief to smaller companies. HR 6161 is sponsored by Congressman Michael Fitzgerald (R, Pa).
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