The senators' letter follows reports that show that the Department of Labor has dismissed more than 1000 of the approximately 1,600 cases that have been filed by whistleblowers alleging retaliation under this law.  The cases were allegedly dismissed on the grounds that the employee alleging retaliation worked for a non-public subsidiary of a publicly traded parent company and was not therefore covered by the law.

"We strongly disagree with this legal interpretation. It erroneously excludes thousands of employees Congress meant to protect when it passed Sarbanes-Oxley and contradicts the spirit and intent of the overall legislation," the senators wrote.

The senators are the authors of the corporate whistleblower protection provision in the Sarbanes-Oxley Act and have been outspoken advocates for whistleblowers following the Enron scandal.  The Senators have previously written to President Bush in 2002 objecting to interpretations made by White House staff following the signing of the law, to the Securities and Exchange Commission Chairman in 2004, and to Labor Secretary Elaine Chao in 2008 explaining the intent of the law.  While the current administration has pledged to review its handling of whistleblower cases under Sarbanes-Oxley, it appears that it is interpreting the law in a similar fashion.  The senators have asked for details of an ongoing internal review and how recent changes to the whistleblower provisions will be implemented.

Here is a copy of the text of the letter to Secretary of Labor Hilda Solis.

October 6, 2010

The Honorable Hilda L. Solis

Secretary of Labor

United States Department of Labor

200 Constitution Ave, N.W.

Washington, D.C. 20210

Dear Secretary Solis:

We authored the corporate whistleblower provisions of the Corporate and Criminal Fraud Accountability Act, section 806 of the Sarbanes-Oxley Act. Since passage of the law in 2002, we have been frustrated by the executive branch's overly restrictive interpretation of these provisions.  It is our understanding that the Department of Labor has dismissed more than 1000 of the approximately 1,600 cases that have been filed by whistleblowers alleging retaliation under this law.

Many of these cases were dismissed on the grounds that the employee alleging retaliation worked for a non-public subsidiary of a publicly traded parent company and was not therefore covered by the law. As we made clear in our September 2008 letter to then-Labor Secretary Elaine Chao, we strongly disagree with this legal interpretation. It erroneously excludes thousands of employees Congress meant to protect when it passed Sarbanes-Oxley and contradicts the spirit and intent of the overall legislation.

We are optimistic that the recently passed Wall Street Reform and Consumer Protection Act will clarify any remaining confusion on this point.  Section 929A of the new law makes clear that the whistleblower provisions in Sarbanes-Oxley include "any subsidiary or affiliate whose financial information is included in the consolidated financial statements of [a publicly traded] company."  The legislation also extends the whistleblower protections in section 806 to employees of nationally recognized statistical rating organizations.

Additionally, we were encouraged to read in a July 22 article published by the Center for Public Integrity that Assistant Secretary of Labor David Michaels has ordered a "top-to-bottom" review of the Department's handling of claims brought under the whistleblower provisions of Sarbanes-Oxley.  We would like more information about the Department's progress in conducting this review, including the scope of the review process and the timeline for its completion.  We are also interested to hear about the Department's recent decision to provide employees who file whistleblower complaints a copy of employer responses to that complaint, and to learn why the Department previously withheld this information.

Whistleblowers are vital in promoting accountability and transparency, but they are also extremely vulnerable to retaliation.  They need and deserve the protection of the law, and they should be able to rely on vigilant application of the law by the Department.  Accordingly, we ask that you please work with staff from our offices to schedule a briefing on this important matter.

Sincerely,

PATRICK LEAHY, Chairman                                         CHARLES GRASSLEY, Senator

During his weekly video address, Chuck Grassley discusses legislation he co-sponsored that would require Congress to give final approval before major federal regulations can take effect.

Senator Grassley:  "I would like to visit with you about the runaway federal government bureaucracy. Consequently, this week I joined a group of senators introducing a bill that would require Congress to give final approval to major federal regulations before those regulations can take effect.

The new bill responds to growing regulatory burden and its negative impact on job creation.  The Constitution vests all legislative power in the Congress, which is the branch most accountable to the people.  Yet, year after year, Congress passes legislation that delegates more power to the executive branch.  In doing so, it also fails to assess the full impact of those laws and how that power is used.  As a result, federal agencies are increasingly bypassing Congress and imposing new regulations that Congress never intended.  Unfortunately, these regulations often have grave consequences for average Americans that don't appear to be explored or are ignored by the federal agency.

For instance, a tidal wave of new regulations is hitting the private sector with health care reform and other big pieces of legislation like the financial system regulation.  The uncertainty about the real impact and cost of these new regulations, along with the uncertainty of looming tax increases, make it much harder for employers to make commitments to create new jobs and hire workers.

The financial burdens of new regulations are estimated to be in the many trillions of dollars.  The Heritage Foundation estimates that the rules issued by the Environmental Protection Agency to regulate carbon dioxide alone could reach nearly $7 trillion in the next 20 years.  This is a cost that Americans simply can't handle.

This bill is a step in the right direction.  It will help establish greater accountability for major regulations handed down from the executive branch.  And, it will restore some badly needed checks and balances in our system of government that have been eroded."

Think Tank Releases Findings of Statewide Poll on Top Economic Issues

ROCK ISLAND - The Illinois Policy Institute will visit the Quad Cities on their Turnaround Tour, a campaign focused on practical, common-sense solutions to rein in out-of-control spending, expand government transparency, remove government roadblocks to creating a more friendly business climate and reform the bankrupt state pension system. The Institute will also release findings from a statewide poll that discusses spending, taxes and other issues. The tour will include rallies with local leaders and educational forums with candidates for the state legislature to discuss their solutions to the state's fiscal problems.

Details on Candidate's Forum

WHO: Kristina Rasmussen, Executive Vice President of the Illinois Policy Institute, Moderator

INVITED: Richard Morthland, Candidate 71st House District

CANDIDATES: Dennis Ahern, Candidate 71st House District

WHAT: Turnaround Tour Candidate's Forum

WHEN: Wednesday, September 29th, 7:30 - 9 pm

WHERE: Holiday Inn Rock Island Hotel and Conference Center

Venice Room

226 17th Street, Rock Island, IL

For additional information on this event, visit:

http://www.illinoisturnaround.com/next-tour-stops/upcoming-tour-stops/september-29-quadcities/

About the Illinois Policy Institute

The Illinois Policy Institute is a nonpartisan research and education organization dedicated to making our state a beacon for liberty and prosperity for all citizens. As a leading voice for economic liberty and government accountability, we engage policy makers, opinion leaders, and citizens on the state and local level by promoting free market principles and liberty-based public policy initiatives for a better Illinois. To learn more about our organization or review our policy briefs, please visit our website at www.illinoispolicy.org.

Campaign Finance Reform Task Force to Study Campaign Contribution Limits

CHICAGO - August 30, 2010. Governor Pat Quinn today announced appointments to the Campaign Finance Reform Task Force. The Governor signed Senate Bill 1466 into law late last year, creating the task force to examine campaign contribution limits.

"This task force is an important tool that will ensure that our election process reflects the will of the citizens of Illinois, not the influence of special interests," said Governor Quinn.

The Campaign Finance Reform Task Force will study the impact of contribution limits and make recommendations following the 2012 and 2014 elections. The task force will also conduct an in-depth study on the feasibility of implementing public financing for statewide, legislative and judicial offices and will make those recommendations by Sept. 30, 2012.

The task force, consisting of 11 members appointed by the Governor and the Illinois General Assembly, will issue a final report by March 10, 2015. The new appointees include :

Lindsay Hansen Anderson will serve as the chair of the Campaign Finance Reform Task Force. Anderson lives in Chicago and is Governor Quinn's legislative director/legislative counsel. Prior to joining the Quinn Administration in February 2009, Anderson was an attorney at the law firm McGuireWoods. She worked in the State Government Relations practice group, providing clients with the development and execution of strategic legislative plans. Also in that role, she advised clients on how to comply with complex campaign finance laws.

William McNary lives in Chicago and is currently the president of USAction, one of the largest national federations of independent state organizations. He is also the co-executive director of Citizen Action/Illinois, the Illinois affiliate of USAction. In addition, McNary serves as a board member of Public Campaign, a national nonprofit, non?partisan organization dedicated to sweeping campaign reform that will lessen the role of special interest money in elections.

Joseph Seliga of Chicago is an attorney and partner with Mayer Brown LLP. In his current role, Seliga helps lead his law firm's campaign finance practice by advising candidates, public officials, individual contributors and corporations on the laws and regulations related to campaign disclosure requirements and political contribution limitations.

Today's appointments reflect Governor Quinn's longtime commitment to increasing ethics and accountability in state government. The Governor led the effort for the state's first constitutional amendment that will enable Illinois residents to remove a governor from office. Governor Quinn also signed legislation to strengthen the state's ethics laws, reform the Illinois Freedom of Information Act and to prohibit state funds from being used to finance gubernatorial portraits of individuals who have been impeached.

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