Florida Senate - 2012 SM 1822 By Senator Hays 20-01365-12 20121822__ 1 Senate Memorial 2 A memorial to the Congress of the United States, 3 urging Congress to repeal the Sarbanes-Oxley Act of 4 2002. 5 6 WHEREAS, the Sarbanes-Oxley Act was enacted on July 30, 7 2002, in Pub. L. No. 107-204, and 8 WHEREAS, the stated purpose of the act is “to protect 9 investors by improving the accuracy and reliability of corporate 10 disclosures made pursuant to the securities laws ...,” and 11 WHEREAS, this federal legislation was passed with the best 12 of corrective intentions after the discovery of corporate fraud 13 and accounting scandals that cost investors and retirees 14 billions of dollars, and 15 WHEREAS, the Sarbanes-Oxley Act, in spite of the good 16 intentions that motivated its passage, has created an extremely 17 complex maze of federal regulations that are costly and damaging 18 to public companies and diminish the companies’ ability to 19 compete against foreign financial entities that are not subject 20 to its regulations, and 21 WHEREAS, the costs that businesses must bear to comply with 22 the extensive provisions of the Sarbanes-Oxley Act are 23 unnecessary and crippling, disproportionately affecting smaller 24 businesses, and 25 WHEREAS, financial market scholars have observed that the 26 Sarbanes-Oxley Act has produced the unfortunate consequence of 27 discouraging American businesses from listing with New York 28 stock exchanges and listing instead in England where the markets 29 and stock exchanges are less heavily regulated, and 30 WHEREAS, the Sarbanes-Oxley Act is a very costly example of 31 Federal Government intrusion that imposes unnecessary regulatory 32 costs on American businesses and interferes with basic free 33 market principles, and 34 WHEREAS, instead of preventing fraud and ensuring 35 transparency, the extensive regulations created by the Sarbanes 36 Oxley Act have thwarted the creation of new public companies, 37 driven business away from domestic stock markets, and cost the 38 industrial sector billions of dollars, NOW, THEREFORE, 39 40 Be It Resolved by the Legislature of the State of Florida: 41 42 That the Congress of the United States is urged to repeal 43 the Sarbanes-Oxley Act of 2002 to remove the damaging obstacles 44 that the act has created for American public companies and 45 replace it with reasonable non-intrusive measures to protect 46 investors. 47 BE IT FURTHER RESOLVED that copies of this memorial be 48 dispatched to the President of the United States, to the 49 President of the United States Senate, to the Speaker of the 50 United States House of Representatives, and to each member of 51 the Florida delegation to the United States Congress.