The dearth of small company IPOs has yet to heat up as a political issue, but in this season of economic discontent, perhaps it's only matter of time before the candidates start talking about it. And that of course will bring Sarbanes Oxley right back into scope. Anyone who thought that the issue of Section 404 small company compliance was essentially over may need to reconsider.

The Obama Administration's jobs council, headed by GE CEO Jeff Immelt, has weighed in with its view that Sarbox was a key factor in reducing the number of small-company from 80 percent of all IPOs in the 1990s to 20 percent in the 2000s. According to Business Insider, the council has recommended amending Sarbox to allow companies with market caps below $1 billion to opt out of at least Section 404 compliance, if not to all of the requirements. Alternatively, the law might be amended to exempt newly public companies from Sarbox compliance for five years.

The council would also amend the Spitzer Decree and the Fair Disclosure Act to lessen the burdens on high-growth entrepreneurial companies. The proposed Sarbox amendment would not be as radical as it might seem, given that Dodd-Frank has already exempted nonaccelerated filers from compliance with Section 404(b), the more onerous of the 404 requirements. Still, this is something politicians can get behind, as it can be pitched as a pro-jobs, anti-regulatory move.

That said, shareholders' advocates and corporate governance activists will likely oppose any attempt to water down the law any more than it already has been.

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