pd05au02 Digest of Other White House Announcements...

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Secretary of Treasury O'Neill and Attorney General Ashcroft, Secretary 
Evans, Secretary Chao. I appreciate the FBI Director being here, along 
with the Chairman of Securities and Exchange Commission, Harvey Pitt. I 
appreciate the Corporate Fraud Task Force members who are here. I want 
to assure the American people, they're just getting started.
    America's system of free enterprise, with all its risk and all its 
rewards, is a strength of our country and a model for the world. Yet, 
free markets are not a jungle in which only the unscrupulous survive or 
a financial free-for-all guided only by greed. The fundamentals of a 
free market--buying and selling, saving and investing--require clear 
rules and confidence in basic fairness.
    The only risks, the only fair risks are based on honest information. 
Tricking an investor into taking a risk is theft by another name. 
Corporate executives must set an ethical tone for their companies. They 
must understand the skepticism Americans feel and take action to set 
clear standards of right and wrong. Those who break the rules tarnish a 
great economic system that provides opportunity for all.
    Their actions hurt workers who committed their lives to building the 
company that hired them. Their actions hurt investors and retirees who 
placed their faith in the promise of growth and integrity. For the sake 
of our free economy, those who break the law, break the rules of 
fairness, those who are dishonest, however wealthy or successful they 
may be, must pay a price.
    Today we are taking practical steps to encourage honest enterprise 
in our Nation. Under this law, CEOs and chief financial officers must 
personally vouch for the truth and fairness of their companies' 
disclosures. Those financial disclosures will be broader and better, for 
the sake of shareholders and investors.
    Corporate officials will play by the same rules as their employees. 
In the periods when

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workers are prevented from buying and selling stock in their pensions or 
401(k)s, corporate officials will also be barred from any buying or 
selling.
    Corporate misdeeds will be found and will be punished. This law 
authorizes new funding for investigators and technology at the 
Securities and Exchange Commission to uncover wrongdoing. The SEC will 
now have the administrative authority to bar dishonest directors and 
officers from ever again serving in positions of corporate 
responsibility. The penalties for obstructing justice and shredding 
documents are greatly increased. Corporate crime will no longer pay. 
CEOs who profit by betraying the public trust will be forced to return 
those gains to investors. And the maximum prison term for common types 
of fraud has quadrupled from 5 to 20 years.
    For the first time, the accounting profession will be regulated by 
an independent board. This board will set clear standards to uphold the 
integrity of public audits and have the authority to investigate abuses 
and discipline offenders. And auditing firms will no longer be permitted 
to provide consulting services that create conflicts of interest.
    This law gives my administration new tools for enforcement. We will 
use them to the fullest. We will continue to investigate, arrest, and 
prosecute corporate officials who break the law. The Corporate Fraud 
Task Force I established is now hard at work, overseeing investigations 
of alleged fraud and insider trading. More than 200 Federal prosecutors 
are at work detecting and punishing corporate crimes. Every corporate 
official who has chosen to commit a crime can expect to face the 
consequences. No more easy money for corporate criminals, just hard 
time.
    As the work of enforcement proceeds, I hope Congress will join me in 
other important efforts to protect the savings and investments of 
Americans preparing for retirement. We've seen how workers can lose a 
lifetime of savings overnight, locked into pension plans without 
adequate choices and information.
    Workers should be able to sell company stock and diversify into 
other investments after 3 years in their own company's plan. They should 
receive updates on their retirement accounts, not once a year but every 
3 months. They should have access to sound investment advice. I have 
proposed pension protection reforms. The House has passed them. I hope 
the Senate takes them up soon.
    We must also work together to promote more growth in the economy and 
jobs for the American people. The fundamentals of our economy are sound. 
After all, sales of automobiles and new houses are on the rise. New 
unemployment claims have been falling since April. Inflation is low. 
Productivity is increasing, and growth continues. Those are signs of 
strength in our economy, and with the right policies, we can build on 
it.
    We must continue to work to control Federal spending and make the 
tax cuts permanent, so Americans can save and plan for their own future. 
We must tear down trade barriers, so people everywhere can buy American. 
We must make terrorism insurance available to spur more construction. 
And on energy, we must encourage conservation through new technology and 
produce more energy at home, to give our economy safe and steady sources 
of power and make our country less reliant upon foreign sources of 
power.
    The attacks against our economy in the last year have caused deep 
hardship and highlighted the economy's fundamental strength. The 
American economy is more diverse and more innovative than ever before, 
and its greatest strength, the people who make it work, are better 
trained and more productive and more highly skilled than ever before.
    Whenever we face challenges, from the fear that threatened our 
economy after September the 11th to the fraud that threatens investor 
confidence today, we've tackled them head on. The American economy 
depends on fairness and honesty. The vast majority of businesses uphold 
those values. With this law, we have new tools to enforce those values, 
and we will use those tools aggressively to defend our free enterprise 
system against corruption and crime.
    It is now my honor to sign the Sarbanes-Oxley Act of 2002.

Note: The President spoke at 10:15 a.m. in the East Room at the White 
House. H.R. 3763, approved July 30, was assigned Public Law No. 107-204.

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[Page 1286]
 
Pages 1271-1300
 
Week Ending Friday, August 2, 2002
 
Statement on Signing the Sarbanes-Oxley Act of 2002

July 30, 2002

    Today I have signed into law H.R. 3763, ``An Act to protect 
investors by improving the accuracy and reliability of corporate 
disclosures made pursuant to the securities laws, and for other 
purposes.'' The Act adopts tough new provisions to deter and punish 
corporate and accounting fraud and corruption, ensure justice for 
wrongdoers, and protect the interests of workers and shareholders.
    Several provisions of the Act require careful construction by the 
executive branch as it faithfully executes the Act.
    The legislative purpose of sections 302, 401, and 906 of the Act, 
relating to certification and accuracy of reports, is to strengthen the 
existing corporate reporting system under section 13(a) and 15(d) of the 
Securities Exchange Act of 1934. Accordingly, the executive branch shall 
construe this Act as not affecting the authority relating to national 
security set forth in section 13(b) of the Securities Exchange Act of 
1934.
    To ensure that no infringement on the constitutional right to 
petition the Government for redress of grievances occurs in the 
enforcement of section 1512(c) of title 18 of the U.S. Code, enacted by 
section 1102 of the Act, which among other things prohibits corruptly 
influencing any official proceeding, the executive branch shall construe 
the term ``corruptly'' in section 1512(c)(2) as requiring proof of a 
criminal state of mind on the part of the defendant.
    Given that the legislative purpose of section 1514A of title 18 of 
the U.S. Code, enacted by section 806 of the Act, is to protect against 
company retaliation for lawful cooperation with investigations and not 
to define the scope of investigative authority or to grant new 
investigative authority, the executive branch shall construe section 
1514A(a)(1)(B) as referring to investigations authorized by the rules of 
the Senate or the House of Representatives and conducted for a proper 
legislative purpose.
                                                George W. Bush
 The White House,
 July 30, 2002.

Note: H.R. 3763, approved July 30, was assigned Public Law No. 107-204.


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[Weekly Compilation of Presidential Documents]
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[Page 1286-1288]
 
Pages 1271-1300
 
Week Ending Friday, August 2, 2002
 
Remarks on the USA Freedom Corps Public Service Campaign

July 30, 2002

    The President. Thanks. Thanks for coming to the White House. 
Welcome, and thanks so very much for your good works and your commitment 
to serve others.
    The men and women in this room and the members of my administration 
are working to foster a culture of service, of citizenship, and of 
responsibility for decades to come. You're part of a cultural change 
that will make America a much better place.
    I--today I'm going to announce some new steps that the USA Freedom 
Corps will be taking to make service a more central part of American 
life. I want to thank Gale Norton, a member of my Cabinet, the Secretary 
of the Department of Interior, for being here. I appreciate one of the 
newest television stars, Bob Dole--[laughter]--being here. Thank you, 
Senator. And it's good to see my friend Steve Goldsmith, who's the 
Chairman of the Board of Directors of the Corporation of National and 
Community Service; and its CEO, Les Lenkowsky. Thank you all for being 
here as well.
    I appreciate the many foundations and organizations who are 
represented here today that have supported the Corporation for National 
Community Service. The Network for Good, which is a nonprofit 
organization--it has been a strong supporter of our call to service from 
the very start. I want to thank the Walt Disney Company. I appreciate so 
very much the U.S. Department of Justice for sending representatives 
here. I want to thank the UPS Foundation. I want to thank Peggy Conlon, 
who is the president and the

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CEO of the Ad Council. I want to thank the members of the Ad Council who 
have done some pretty good work, as you'll see here in a minute.
    I appreciate very much the USA Freedom Corps Volunteer Network 
members who are here. I want to thank the representatives of television, 
print, and radio as well.
    You know, none of us would ever wish the evil that was done on 
September the 11th; yet out of the tragedy can come great good. I 
believe that from the bottom of my heart. Out of the evil done to 
America will come some good. Challenging times test the character of 
individuals and test the character of our Nation. In the aftermath of 
September the 11th, Americans have responded with courage and 
compassion, with great resolve and determination.
    The last 10 months have offered us a glimpse of what a new culture 
of service can be. And we're not going to let this moment pass. We'll 
sustain and extend the best that has emerged in our country. And there 
are good reasons for every American to serve our Nation. We serve 
because it's important to our neighbors. We understand that serving 
others meets needs that a Government can never fulfill. You see, 
Government can hand out money, but it can't put hope in people's hearts 
or a sense of purpose in people's lives. The need for kindness and for 
understanding and for love is not a Government function. It's a human 
function. And that's why we serve our neighbor.
    We serve because it's important to our own character. Acts of 
compassion add direction and purpose to our lives. Serving something 
greater than yourself in life is part of a fulfilling life. And finally, 
we serve because it's important to our country. Our Nation is the 
greatest force for good in history, and we show our gratitude by doing 
our duty. We express our love for America by loving Americans.
    Six months ago in my State of the Union Address, I issued a call to 
service. I asked every American to commit at least 2 years, 4,000 hours 
over the rest of your life, to service for neighbors and our Nation. To 
encourage service, we established what we call the USA Freedom Corps, 
ably headed by John Bridgeland.
    The USA Freedom Corps is matching potential volunteers with local 
charities. It is encouraging participation in the new Citizen Corps, 
AmeriCorps, Senior Corps, and the Peace Corps. We're promoting service 
to prepare for crises at home, to strengthen our communities, to help 
people in need, and to extend American compassion throughout the world.
    The response to the call to service has been strong, and it can get 
stronger. VolunteerMatch, a group that matches volunteers to charities 
on the USA Freedom Corps Web page, reports that referrals have increased 
by more than 70 percent over last year.
    I want to thank my fellow Americans for answering the call to 
service, because Americans in record numbers are now being directed to 
local service opportunities. Since the State of the Union Address, more 
than 66,000 people have requested applications for the Peace Corps--
66,000. Applications to join AmeriCorps are up by nearly 90 percent. 
More than 45,000 Americans have signed up to participate in the new 
Citizen Corps. And visits to the Senior Corps Web site have increased by 
almost 60 percent.
    Individuals and nonprofit organizations and businesses have stepped 
forward to offer pledges and new commitments and ways in which citizens 
can meet the 2-year call. Businesses are offering employees annual paid 
leave to perform community service. I think it's a movement that's just 
beginning here in the country, and I want to thank those corporate 
leaders who understand that responsibility not only to shareholders is 
important, but responsibility to communities in which they exist is 
equally as important.
    We're looking for ways to make service count positively in getting a 
job. In other words, corporate America views that as an important part 
of a complete employee. Promoting service is really what corporate 
responsibility means.
    The United States Congress is also meeting its responsibilities. 
Congress is providing $25 million this year to support Citizen Corps so 
that Americans can be trained in emergency response and can support 
first-responders. Good progress is being made to renew the promise of 
the Peace Corps and

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double the number of volunteers over the next 5 years.
    I hope Congress will soon pass, so I can sign into law, the 
bipartisan ``Citizen Service Act,'' which incorporates many of the 
principles to strengthen and reform national service programs. It should 
be an interest to Members of Congress that all 50 Governors also have 
urged Congress to strengthen these important programs. Congress needs to 
act for the good of service for the United States.
    Since January, this Nation has made tremendous progress in serving 
others, yet I fully recognize more needs to be done. Today I'm pleased 
to announce a public service advertising campaign, developed with the 
Corporation for National and Community Service and the Ad Council. This 
campaign rests on a single, simple principle: Everyone can do something.
    And today I'm pleased to unleash the TV ads. It's a private showing, 
first of its kind. [Laughter] This is one part of an effort that 
includes radio and print and the Internet. To support Americans who will 
respond to the call to service, we are launching the new USA Freedom 
Corps Volunteer Network, which is the most comprehensive volunteer 
clearinghouse ever. The network connects Americans to service 
opportunities throughout more than 50,000 organizations, including 
America's Promise and the National Mentoring Partnership, the Points of 
Light Foundation, SERVEnet, and the United Way and VolunteerMatch.
    This network is now accessible through the newly redesigned USA 
Freedom Corps Web site, usafreedomcorps.gov. If you want to serve in a 
soup kitchen or mentor a child in your local community, call up the Web 
page, and you can find out where to go. If you want to take a full year 
and serve in the Senior Corps, America Corps, this is where you can find 
opportunity to do so. If you want to help people overseas through the 
Peace Corps or other organizations, usafreedomcorps.gov will tell you 
what's available.
    You know, one of the main reasons people give for not volunteering 

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