Bloomberg BNA’s Corporate Law & Accountability Report is available on the Corporate Law Resource Center. This news service keeps corporate practitioners informed of legal developments of...
March 30 — The Securities and Exchange Commission has spent more than 20,000 employment hours and more than $2.5 million to implement and defend the conflict minerals rule in court.
Approximately 17,000 hours were spent on the Rule 13p-1 rulemaking, which cost approximately $2.1 million, and the litigation used about 4,000 hours and cost $520,000, SEC Chairman Mary Jo White said in a March 16 letter to members of the House Financial Services Committee. The rule, which has been invalidated, is mandated by Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
The letter was in response to a request from several Republican committee members, including Chairman Jeb Hensarling (Texas) and Rep. Bill Huizenga (Mich.).
Huizenga, who chairs the Monetary Policy Subcommittee, mentioned the figures at a March 24 hearing at which White testified.
The SEC's figures were estimates because the agency staff “did not track and record their time for this project,” the letter states. Instead, the agency “asked current staff to provide their best estimates” of hours worked on the rulemaking and the litigation.
The figures don't include time spent by commissioners.
In April 2014, the U.S. Court of Appeals for the District of Columbia held that the SEC's rule violated the First Amendment. The SEC petitioned the D.C. Circuit panel in December to rehear the case, based on new case law in the intervening months.
The rule requires companies and foreign issuers in the U.S. to report using “conflict minerals” if they are necessary to a product the companies make. Conflict minerals include gold, tantalum, tin and tungsten from the Democratic Republic of Congo and neighboring countries.
To contact the reporter on this story: Rob Tricchinelli in Washington at email@example.com
To contact the editor responsible for this story: Susan Jenkins at firstname.lastname@example.org
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)