[Congressional Record Volume 148, Number 49 (Friday, April 26, 2002)]
[Extensions of Remarks]
[Pages E642-E643]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




CORPORATE AND AUDITING ACCOUNTABILITY, RESPONSIBILITY AND TRANSPARENCY 
                              ACT OF 2002

                                 ______
                                 

                               speech of

                       HON. CAROLYN C. KILPATRICK

                              of michigan

                    in the house of representatives

                       Wednesday, April 24, 2002

       The House in Committee of the Whole House on the State of 
     the Union had under consideration the bill (H.R. 3763) to 
     protest

[[Page E643]]

     investors by improving the accuracy and reliability of 
     corporate disclosures made pursuant to the securities laws, 
     and for other purposes:

  Ms. KILPATRICK. Mr. Chairman, yesterday, the House passed H.R. 3763. 
The bill was supposed to create a sense of security for workers and 
victims who are in fear of another Enron disaster. It does not, and for 
that reason I voted ``no'' on its passage.
  The bill gives the Securities and Exchange Commission (SEC) the 
option to establish a Public Regulatory Organization (PRO) if it felt 
investigations or disciplinary measures were warranted. The problem is 
that there is no real power with an option. The SEC needs the 
legislative authority to create the type of PRO we want; yet H.R. 3763 
lacks the explicit language mandating its creation. Without the express 
language, there is no guarantee the PRO would be created.
  The Democratic substitute would explicitly create the Public 
Regulatory Organization. Additionally, the substitute would provide the 
PRO with the express power to supervise, oversee and discipline illegal 
activity. Under the substitute, the PRO could supersede the current 
regulations if more stringent ones were required. H.R. 3763 does 
nothing of the sort. It does not specify authority to a PRO, if the SEC 
decided to create one. Essentially, H.R. 3763 would only have the 
potential of creating a toothless organization with weak disciplinary 
authority.
  H.R 3763 does not live up to its promises and will not prevent a 
reoccurrence of future Enron-like tragedies. The bill, if made law, 
will do nothing of substance. I want to make sure that my constituents 
and all American workers are safe from disasters such as Enron. I want 
to make sure that the victims feel their voices are heard. This issue 
is of great concern to me, and I will not vote for a bill that lulls 
workers into a false sense of security.

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