Michael Oxley

Mr. OXLEY

Mr. OXLEY. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise in strong support of this legislation and commend the gentleman from Wisconsin (Mr. Sensenbrenner), the chairman of the Committee on the Judiciary, for his excellent work. This bill addresses corporate wrong-doing in a responsible and measured way. Specifically, the bill raises the criminal penalties for securities fraud under section 32 of the 1934 act by increasing the maximum fines and doubling of the potential jail time to a maximum of 20 years. It authorizes the SEC to place a temporary freeze on extraordinary payments to directors, officers, partners, or employees of public companies under investigation for a possible violation of securities fraud. Finally, it gives the SEC the authority to prohibit bad actors from ever serving as an officer or director in a public company. I urge my colleagues to pass this tough measure. It is a good complement to the bipartisan legislation we passed in April with 119 Democrat votes in support to improve corporate responsibility, accounting practices, and the quality and timeliness of information to investors. We need responsible measures to clean up corporate America, not measures that create loopholes for voracious trial lawyers. I again thank the gentleman for his leadership on this important issue. Our committee, the Committee on Financial Services, did not have jurisdiction over the criminal penalties side of the issue and so we welcome the complementary bill by the chairman of the Committee on the Judiciary. Mr. Speaker, I reserve the balance of my time.

Mr. OXLEY. Mr. Speaker, I yield myself such time as I may consume. I would point out to my friend from Michigan that I suggest this will be a strong bipartisan vote when the vote is taken and it will be very much of a bipartisan effort in the House. Mr. Speaker, I yield 3 minutes to the gentleman from Louisiana (Mr. Baker), and pending that, I ask unanimous consent that the gentleman from Louisiana be allowed to control the time for our side.

Mr. OXLEY

Mr. OXLEY. Mr. Speaker, I stand in strong support of H. Res. 459, which I am proud to cosponsor. I am deeply troubled, but sadly not surprised, that the action of this San Francisco-based court compels us to consider this resolution today. Mr. Speaker, the Pledge of Allegiance is one of the first things that children learn to recite in school. Adults still place their hands over their hearts when they say it. This simple thirty-one-word affirmation of our great country encompasses the affection and devotion of Americans young and old toward their flag and their nation. Two years ago, in a court decision equally as absurd as this Newdow decision, a three-judge panel of the Sixth U.S. Circuit Court of Appeals struck down Ohio's official state motto, ``With God All Things Are Possible.'' The Court sided with the American Civil Liberties Union in declaring that the motto expresses a ``particular affinity toward Christianity,'' in violation of the Establishment clause. Mr. Speaker the Ohio motto decision was ultimately overturned, just as this outrageous decision will be overturned. Our Pledge of Allegiance, along with our Biblically based national motto ``In God We Trust,'' stands as a testament to the undeniable religious foundation of our country. ``In God We Trust'' has been upheld in the courts time and again as a proper reflection of our nation's enduring faith. It's too often overlooked that the First Amendment's Establishment clause--``Congress shall make no law respecting an establishment of religion''--is followed by the phrase ``or prohibiting the free exercise thereof.'' My constituents are tired of having their free religious exercise attacked by fringe groups in the name of separation of church and state. The Ninth Circuit Court's action is nothing more than political correctness run rampant. When President Eisenhower approved the addition of the words ``under God'' to the Pledge of Allegiance in 1954, he said, ``In this way we are reaffirming the transcendence of religious faith in America's heritage and future; in this way we shall constantly strengthen those spiritual weapons which forever will be our country's most powerful resource in peace and war.'' During this time of war, when people across the nation gather in their homes and places of worship to pray for the safety of our men and women in uniform, the Ninth Circuit's assault on our nation's faith-based foundation cannot stand. It flies in the face of common sense, and blatantly ignores a plethora of court precedents. When we pledge allegiance to our flag, we are not saluting a mere piece of cloth. Our flag is the most visible symbol of our nation--a unifying force in our nation of nearly 300 million. Since the Supreme Court invalidated state flag protection laws in 1989, the legislatures in each of the 50 states have passed resolutions petitioning Congress to propose a flag protection amendment to the Constitution. People across the nation--and across the political spectrum--support the right of everyone to affirm the religious foundation of our country through our Pledge. My hometown of Findlay, Ohio, is known as Flag City USA. Major downtown thoroughfares are lined with flags in a patriotic salute to the greatness of America. Nearby Arlington, Ohio, which I am also privileged to represent enjoys the designation Flag Village USA. The messages I am receiving from Findlay, Arlington and throughout my district are clear: we are one nation under God, despite this ludicrous court action. I know that my constituents and all Americans are saying the Pledge of Allegiance a little louder and with even more pride.

Mr. OXLEY

Mr. OXLEY. Mr. Speaker, I rise today in support of S. 2594, the Support of American Eagle Silver Bullion Program Act. The language is identical to language introduced in the House by the gentleman from Idaho, Mr. Otter, as H.R. 4971, and virtually identical to language passed 417-1 by the House Tuesday in H.R. 4846, a larger bill authored by the gentleman from Oklahoma, Mr. Lucas. Mr. Speaker, the American Silver Eagle coin program is the most successful silver bullion coin program in the world. Since its introduction in 1983, nearly 115 million of the one-troy-ounce silver coins have been sold. The coin now controls roughly 80 percent of the silver bullion coin market in the world. The silver for the coin is .999 fine, much more pure than the old ``cartwheel'' silver dollars, such as the Morgan dollar, that used to be issued by the United States and which were 90 percent pure. Silver for the coin has come since the coin's inception from the United States strategic stockpile of silver, as mandated in law. However, a decade ago Congress, noting reduced need, ordered that stockpile and several others sold off, and earlier this month the last of the stockpile was delivered to processors for refining and to be turned into the blanks from which the coins eventually will be struck. While the United States Mint will have adequate coin blanks to meet demand for several weeks yet, I am told the refiners will have to start layoffs of key staff shortly after the Fourth of July if this legislation is not immediately passed and sent to the President. Mr. Speaker, the silver industry is important to the economy of the United States, and preservation of jobs is an important foal of the Financial Services Committee, especially as this Nation's economy comes out of the doldrums in which it has stood for more than a year. To that end I believe we must pass this legislation and do so quickly, and I ask its immediate approval. The Senate bill was ordered to be read a third time, was read the third time, and passed, and a motion to reconsider was laid on the table.

Mr. OXLEY

Mr. OXLEY. Mr. Speaker, on that I demand the yeas and nays.

Mr. OXLEY. Madam Speaker, I am pleased to yield 5 minutes to the gentleman from Oklahoma (Mr. Lucas), the author of the legislation.

Mr. OXLEY. Madam Speaker, I am pleased to yield 3 minutes to the gentleman from Idaho (Mr. Otter), who has shown great leadership on this issue.

Mr. OXLEY. Madam Speaker, I have no further requests for time, and I yield back the balance of my time.

Mr. OXLEY. Madam Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks and to insert extraneous material on this legislation, H.R. 4846.

Mr. OXLEY. Madam Speaker, I yield myself 5 minutes. Madam Speaker, I rise to support H.R. 4846, the Silver Eagle Coin Continuation Act of 2002. The American Silver Eagle coin is truly a coin for the bullion market. It was authorized by Congress in 1983, spurred partly by the success of the Canadian Maple Leaf $1 investment grade coin. The American Silver Eagle has gone on to become the most popular investment coin in the entire world. More than 100 million have been sold, and the Maple Leaf dollar has been pretty much displaced from the market. The Mint sells the coins for an amount that includes the actual silver cost, plus manufacturing, distribution and marketing costs. Right now, the coin sells for about $6.75 in uncirculated form. Madam Speaker, when Congress authorized the Silver Eagle coin program, the United States maintained a number of strategic materials stockpiles, and Congress quite naturally mandated that the silver for the new coin come from the strategic silver stockpile. In the last decade, however, recognizing that there was no longer a real need for most of the strategic materials stockpiles, Congress ordered a drawdown of those reserves. We now have come to the end of the strategic silver stockpile, but to continue the Silver Eagle coin program we must allow the Secretary of the Treasury, through the Mint, to acquire silver from another source. The legislation before us does just that, keeping the program intact and maintaining jobs both at the U.S. Mint facilities where the coin is produced and at the refineries where the bullion for the coins is refined. This bill was ably drafted by the gentleman from Oklahoma (Mr. Lucas) and includes language addressing the silver problem introduced separately by the gentleman from Idaho (Mr. Otter). Madam Speaker, the legislation before us also has two other sections. One is merely clerical, restating the Mint's authority to operate but not adding or subtracting from that authority. The bulk of the language will be consolidated into a single section of the U.S. Code, and some archaic references to long- defunct Mint operations are removed from law. Also, the bill clarifies language referring to the distribution of surcharges on the sale of U.S. commemorative coins, making it clear that organizations which benefit from the surcharges must raise matching funds from private sources. Madam Speaker, compared to some of the legislation we will consider in the House this week, this is indeed a minor bill, but to the men and women whose jobs are on the line if we do not allow a new source of silver for the American Silver Eagle coin program or for the beneficiary organizations that would receive surcharge funding from the sale of commemorative coins, it is most important; and I urge swift passage of the bill. Madam Speaker, I reserve the balance of my time.

Mr. OXLEY. Madam Speaker, I move to suspend the rules and pass the bill (H.R. 4846) to amend title 31, United States Code, to clarify the sources of silver for bullion coins, and for other purposes, as amended.

Mr. OXLEY

Mr. OXLEY. Mr. Speaker, I simply point out that I do not think at the end of the day that this is going to be an appropriations issue. It will be an issue that those fees will generate the amount of money necessary to run the SEC. That is what the legislation that passed in 1996 says. I have no reason to think that that will be any different and that the effect on the appropriations process will be minimal if any.

Mr. OXLEY. Mr. Speaker, will the gentleman yield?

Mr. OXLEY. Mr. Speaker, will the gentleman yield?

Mr. OXLEY. Mr. Speaker, will the gentleman yield?

Mr. OXLEY. Mr. Speaker, I want to thank my friend from Virginia for yielding. I point out that since the mid-1990s, as the gentleman knows, the SEC has been funded through section 31 fees and other fee operations. During our debate on the legislation that reduced the fees, we came to understand that, clearly, those fees in this case would cover the operation of the SEC. As a matter of fact, history would suggest that the fees generate six times currently what it takes to run the SEC.

Mr. OXLEY. Mr. Speaker, I would literally be the last person in this Congress to cut FBI funding. In my estimation this does not do that. Those fees, the cost to the SEC comes out of those fees; and I want to make certain that that is the case.

Mr. OXLEY. Madam Speaker, I yield myself such time as I may consume; and, in conclusion, let me just point out something to the gentleman from California. The 16 percent figure of review of the top 500 companies is nothing new. I cannot remember ever, in the history of this country, any SEC ever viewing all 500 companies; and I think it is important to point that out for the record. It was not this particular SEC but many previous SECs that were in that same category.

Mr. OXLEY. Madam Speaker, I yield back the balance of my time.

Mr. OXLEY. Madam Speaker, I am pleased to yield 3 minutes to the gentleman from Louisiana (Mr. Baker), the chairman of the Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises.

Mr. OXLEY. Mr. Speaker, I yield 5 minutes to the gentleman from Virginia (Mr. Wolf).

Mr. OXLEY. Mr. Speaker, I reserve the balance of my time.

Mr. OXLEY. Mr. Speaker, I yield myself 5 minutes. Mr. Speaker, the Securities and Exchange Commission Authorization Act of 2002 authorizes important new resources for the Securities and Exchange Commission for fiscal year 2003. I would like to commend the ranking member of the Committee on Financial Services, the gentleman from New York (Mr. LaFalce), and the chairman of the Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises, the gentleman from Louisiana (Mr. Baker), for their leadership on this very important and timely issue. As we know, the SEC is statutorily charged with supervising the Nation's securities markets. This legislation is necessary to reauthorize the work of the SEC to enable it to continue its mission of protecting investors and promoting efficiency, competition, and capital formation. For quite some time, the U.S. securities markets have been widely regarded as the deepest, most liquid, and fairest markets in the world, in large part due to the fine work of the SEC. Today, however, it is abundantly clear that our markets are in need of reform. Too many people have abused the public trust. In the wake of recent scandals, many have noted a crisis of public confidence in the integrity of our system. That is why the Committee on Financial Services was first out of the block in analyzing analysts, corporate reporting, and accountants. The committee drafted comprehensive legislation that overwhelmingly passed the House, and has directed the self-regulatory organizations to promulgate new rules on analysts and corporate governance. Much has been done, with still more to do, in order to ensure investors are protected through full and timely disclosure of financial information. The bill before us today authorizes the SEC at a level of $776 million for fiscal year 2003, with $134 billion earmarked for the division of corporate finance and the office of the chief accountant, and $326 million earmarked for the division of enforcement. The bill identifies these particular divisions for increased funding because it is vital that the commission have sufficient resources to review public filings and bring enforcement cases against those who violate the securities laws. One of the primary findings of our hearings was the need for the commission to pursue wrongdoers in real time. This bill provides the commission with the resources it needs to do exactly that. The bill also fully funds the pay parity provisions of the Investor and Capital Markets Fee Relief Act enacted into law this past January. This $76 million in funding would grant SEC employees pay parity with the banking regulators and help the commission attract and retain the first-rate attorneys, accountants, and economists needed to protect investors. With modest staff and limited resources, the SEC currently oversees an estimated 8,000 brokerage firms employing nearly 700,000 brokers; 7,500 investment advisors with approximately $20 trillion in assets under management; 34,000 investment company portfolios; and over 17,000 reporting companies. The commission also has oversight responsibilities for nine registered securities exchanges, the National Association of Securities Dealers, the National Futures Association, 13 registered clearing agencies, and the Municipal Securities Rulemaking Board. The funding level authorized in this legislation is significantly higher than the fiscal year 2002 level, but there is ample justification. Much has changed since last year. The commission needs funding for its e-government and information technology initiatives, telecommunications systems, and security enhancement. The commission has not received a staffing increase in the last 2 years, despite the additional responsibilities put upon it by the enactment of the Commodity Futures Modernization Act and the Gramm- Leach-Bliley Financial Services Modernization Act. Now, with the tragic events of September 11 in which the SEC's Northeast regional office was destroyed and the deep crisis in confidence facing the markets, the challenges facing the SEC have never been greater. For the U.S. markets to remain the envy of the world, it is absolutely vital for the SEC to have the necessary resources to protect investors and promote capital formation. I urge all of my colleagues to support this important legislation. Mr. Speaker, I reserve the balance of my time.

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

Mr. OXLEY. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 3764) to authorize appropriations for the Securities and Exchange Commission, as amended.