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Senate Proceeding on May 18th, 2010 :: 2:28:30 to 2:38:50
Total video length: 2 hours 39 minutes Stream Tools: Stream Overview | Edit Time

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Christopher S. Bond

2:28:10 to 2:28:30( Edit History Discussion )

Christopher S. Bond: mr. dodd: mr. president, in a minute i'll note the absence of a quoam. but pending that, we're working on aonsent agreement that would schedule two votes after the weekly caucus conference lunches. and we're about to be able to do that. we're just trying to get it written up. as soon as that's he's written up, i'll -- aas soon as that's

Christopher S. Bond

2:28:30 to 2:38:50( Edit History Discussion )
Speech By: Christopher S. Bond

Christopher S. Bond

2:28:31 to 2:28:51( Edit History Discussion )

Christopher S. Bond: written up, i'll present it. but my colleague from texas is read to go ahead. the presiding officer: the senator fr texas is recognized. mrs. hutchison: mr. president, i was just going to speak on the amendment that senator landrieu and i have, the hutchison-landrieu amendment,

Christopher S. Bond

2:28:52 to 2:29:13( Edit History Discussion )

Christopher S. Bond: but i'm -- i'd be happy to yield any time the chairman of the committee wishes to clarify. but until he does, i will speak on the amendment, which is an amendment that has been filed -- is not yet pending. this is an

Christopher S. Bond

2:29:14 to 2:29:34( Edit History Discussion )

Christopher S. Bond: provide a permanent exemption for publicly traded small businesses, less than $150 miion, from the costly reporting requirements mandate by section 404(b) of the sarbanes-oxley act. in removing this burksd our amendment will -- in removing this burden, our amendment will

Christopher S. Bond

2:29:35 to 2:29:56( Edit History Discussion )

Christopher S. Bond: free small businesses to focus on the capital investment and job creation that we need now to get our economy back on track. in 2002, congress passed the sarbanes-oxley act in the aftermath of the huge accounting frauds in enron, tyco and world.com.

Christopher S. Bond

2:29:57 to 2:30:19( Edit History Discussion )

Christopher S. Bond: this was enacted to restore investor confidence -- the presiding officer: will the senator suspend. will the senate please come to order. the senate will come to order. the senator from texas is recognized. mrs. hutchison: thank you, mr. president. the landmark bill, sarbanes-oxley, was enacted to restore investor confidence in the wake of the shocking abuses

Christopher S. Bond

2:30:20 to 2:30:41( Edit History Discussion )

Christopher S. Bond: in enron, tyco and worldcom by making it harder for companies to misrepresentative corporate earnings. hindsight is 20-20. it has expected unexpected costs and burdens for small businesses and medium-size businesses that serve as the backbone of our economy.

Christopher S. Bond

2:30:42 to 2:31:02( Edit History Discussion )

Christopher S. Bond: the main culprit of this immense burden on small businesses is section 404 of sarbanes-oxley. there, the public company is requir to include in its annual report an assessment of the effectiveness of its internal control structure and procedures for financial reporting and the company's auditor must attest to and

Christopher S. Bond

2:31:03 to 2:31:24( Edit History Discussion )

Christopher S. Bond: reporthe company's assessment. the compliance costs of section 404-b have been far greater than expected. in 2009, the s.e.c. reported that companies paid an average of $2.3 million to comply with this one section of sarbanes-oxley. when taking into account the

Christopher S. Bond

2:31:25 to 2:31:46( Edit History Discussion )

Christopher S. Bond: size of a company, small businesses with less than $150 million in public float or the shares held by outside investors are disproportionately encumbered by this section 404-b, facing a complianc cost that is seven times greater than larger companies, when you put it in perspective. small businesses are being

Christopher S. Bond

2:31:47 to 2:32:07( Edit History Discussion )

Christopher S. Bond: forced to tie up time and money on burdensome amounts of paperwork. they should be directing these resources toward operations and capital investment to create jobs and spur our economy toward recovery. the hutchison-landrieu amendment will fix this issue, ensuring that smaller public companies

Christopher S. Bond

2:32:08 to 2:32:28( Edit History Discussion )

Christopher S. Bond: will not be subject to the cost burden imposed by section 404-b. under current s.e.c. rules, small public companies with less than $75 million in public float are now exempt. however, the exemption ends in june. the hutchison-landrieu amendment builds on this existing

Christopher S. Bond

2:32:29 to 2:32:52( Edit History Discussion )

Christopher S. Bond: exemption and takes into account recommendations from the s.e.c. to increase the exemption. our amendment will permanently exempt small businesses with less than $150 million in public float from section 404-b. i'm pleased that my amendment has strong bipartisan support of

Christopher S. Bond

2:32:53 to 2:33:15( Edit History Discussion )

Christopher S. Bond: my colleagues, and my cosponsor is the distinguished chairman of the small business committee, senator landrieu. i also thank our other cosponsors: senators bennett, hatch,rapo, demint and scott brown. we are offering our amendment on boost small businesses across our country that face this disproportionate burden. it's interesting to note that it

Christopher S. Bond

2:33:16 to 2:33:38( Edit History Discussion )

Christopher S. Bond: is the high-tech and entrepreneurial companies that are so affected. we have the support of the biotechnology industry organization, the competive enterprise institute, tech america, the association for competitive technologies, advanced medical technology association, and tech net.

Christopher S. Bond

2:33:39 to 2:33:59( Edit History Discussion )

Christopher S. Bond: these groups represent the companies that want to innovate. they want to grow. they want to excel. but their companies are spending vast amounts of money on compliance costs, and according to an s.e.c. study, this money is being misdirected.

Christopher S. Bond

2:34:00 to 2:34:20( Edit History Discussion )

Christopher S. Bond: the s.e.c. reports that 75% of companies believe that the stations of auditors required by this section of arrest banes-oxley have little to no -- section of sarbanes-oxley have little to no investor confidence. rather than supporting resources to create jobs, small businesses are spending millions on

Christopher S. Bond

2:34:21 to 2:34:41( Edit History Discussion )

Christopher S. Bond: paperwork that investors don't even care about. our amendment also has the support of the independent community bankers of america and the american bankers association. our community banks want to lend to worthy entrepreneurs and help jump-start our economy, but our entrepreneurs and small

Christopher S. Bond

2:34:42 to 2:35:05( Edit History Discussion )

Christopher S. Bond: businesses are hesitant to grow if they are hit with high costs associated with this 404-b compliance. we are also offering this amendment because of the unintended consequences on our initial public offering market brought on by this section.

Christopher S. Bond

2:35:10 to 2:35:31( Edit History Discussion )

Christopher S. Bond: since the inaction of sarbanes-oxley, i.p.o.'s have been lower each year than every year of the 1990's. even in 2006, the peak year of economic growth after sarbanes-oxley, the 162 u.s. i.p.o.'s were far below the 295

Christopher S. Bond

2:35:32 to 2:35:52( Edit History Discussion )

Christopher S. Bond: i.p.o.'s issued in 1991 when our economy was mired in recession. this dropoff in i.p.o.'s hit the max in 2008 and 200 when, according to a renaissance capital report, the i.p.o. level was lower than any period since the vietnam war. why is this?

Christopher S. Bond

2:35:53 to 2:36:14( Edit History Discussion )

Christopher S. Bond: why are companies avoiding initial public offerings? why are companies refusing to access capital that the stock markets can provide? quite frankly, companies do not want to deal with the onerous burden of sarbanes-oxley, and based on the costs that i have mentioned, who can blame them? this provision incentivizes

Christopher S. Bond

2:36:15 to 2:36:36( Edit History Discussion )

Christopher S. Bond: small businesses to remain private, to avoid 404-b. worse, it incentivizes small businesses to go abroad to markets such as the london stock exchange. and keep in mind that the london stock exchanged has advertised itself as a sarbanes-oxley free

Christopher S. Bond

2:36:37 to 2:36:57( Edit History Discussion )

Christopher S. Bond: zone to try to encourage our companies to do their i.p.o.'s there instead of america. small businesses should not be incentivized to stop growing or list overseas. what a choice. what a choice in this environment. the hutchison-landrieu amendment also has the support of the new

Christopher S. Bond

2:36:58 to 2:37:19( Edit History Discussion )

Christopher S. Bond: york stock exchange and nasdaq. they want to see american companies list here and remain home grown. now, more than ever, we should be encouraging our nation's businesses to invest in new jobs, plants and markets. our amendment will help small businesses do this by reducing

Christopher S. Bond

2:37:20 to 2:37:40( Edit History Discussion )

Christopher S. Bond: their paperwork costs. a similar measure was included in the house financial reform language, and with immense bipartisan support. i ask my colleagues to support the hutchison-landrieu amendment to permanently exempt small businesses under $150 million

Christopher S. Bond

2:37:41 to 2:38:01( Edit History Discussion )

Christopher S. Bond: from sarbanes-oxley section 404-b. this would ensure that small businesses can fully devote their resources toward being the engines that drive our nation's economy. and, mr. president, i ask unanimous consent to submit for the record along withy remar the editorial that appeared today in the "wall street

Christopher S. Bond

2:38:02 to 2:38:25( Edit History Discussion )

Christopher S. Bond: journal" that is entitled "the the no-cost stimulus." mr. president, this editorial -- the presiding officer: without objection. mrs. hutchison: -- in the "wall street journal" today says we can have a stimulus that will cost taxpayers nothing by freeing our small businesses, and especially our entrepreneurial and high-tech businesses from the burdens of

Christopher S. Bond

2:38:26 to 2:38:47( Edit History Discussion )

Christopher S. Bond: all this paperwork and instead let them focus on growing, on listing their i.p.o.'s in america for the benefit of the american economy. that is what we should be doing, and that's what the editorial says. and i hope very much that my colleagues will listen and we will be able to pass the

Christopher S. Bond

2:38:48 to 2:38:50( Edit History Discussion )

Christopher S. Bond: hutchison-landrieu amendment, hopefully by voice vote.

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