House Approves Landmark Corporate Accountability Bill

July 25, 2002

WASHINGTON, D.C. - Congressman David Dreier (R-San Dimas), Chairman of the House Rules Committee, voted today to approve an historic agreement on corporate accountability legislation that will strengthen penalties for corporate wrong-doers, provide greater oversight of the accounting industry, and increase the amount of information provided to investors. The Sarbanes Oxley Act of 2002 Conference Report, H.R. 3763, was approved with overwhelming bipartisan support, 423-3.

"Americans need and deserve peace of mind when it comes to their college savings and retirement security," Dreier said. "Today’s bipartisan vote sends a clear signal to corporate executives and their accountants: If you commit fraud, you will be found out and punished severely.

"Through stronger criminal penalties and greater oversight, we’ll be able to keep corporate America accountable to investors. And by requiring quicker dissemination of information for investors, we’re giving them the tools they need to stay on top of their financial stakes in public companies."

H.R. 3763 will:

• Create a Public Company Accounting Oversight Board to enforce auditing, quality control, and independence standards and rules. Fees charged to all publicly traded companies will fund the Board;

• Enhance corporate disclosure, including immediate disclosure of any information affecting the material health of the company;

• Ensure investors who have lost money in the markets as a result of corporate malfeasance receive compensation from any legal settlement; and

• Increase criminal penalties for a broad array of white-collar crimes (including 20 years for document shredding and obstruction of justice), freezes extraordinary payments to employees of companies under investigation by the Securities and Exchange Commission and makes it a crime to retaliate against corporate whistleblowers.

Dreier commended the work of House Financial Services Committee Chairman Mike Oxley (R-OH) and Ranking Member John LaFalce (D-NY) for their leadership in securing a comprehensive agreement so quickly.