Securities and Exchange Commission Authorization Act of 1993

Summary: Securities and Exchange Commission Authorization Act of 1993 - Amends the Securities Exchange Act of 1934 to authorize appropriations for the Securities and Exchange Commission (SEC) for FY 1994 and 1995. 
Requires the SEC to adjust annually the rates of registration, transaction, proxy filing, and other related fees in order to secure a total amount of collections that offsets the amounts appropriated to it (and the applicable surplus amounts if any). Prescribes a fee adjustment mechanism.  Exempts such fee determinations and adjustments from judicial review.  Requires the SEC to submit explanatory reports to the Congress before the effective date of any adjustment. 
Directs the SEC to study and report to the Congress on the structure and procedures for such fee collection.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Securities and Exchange Commission 
Authorization Act of 1993''.

SEC. 2. AUTHORIZATION OF APPROPRIATIONS.

    Section 35 of the Securities Exchange Act of 1934 (15 U.S.C. 78kk) 
is amended to read as follows:

                   ``authorization of appropriations

    ``Sec. 35. There are authorized to be appropriated to carry out the 
functions, powers, and duties of the Commission--
            ``(1) $281,900,000 for fiscal year 1994; and
            ``(2) $317,700,000 for fiscal year 1995.
Funds appropriated for any fiscal year pursuant to this section are 
authorized to remain available during the succeeding fiscal year.''.

SEC. 3. SECURITIES AND EXCHANGE COMMISSION FEES.

    (a) Full Cost Recovery of Commission Expenses.--The Securities 
Exchange Act of 1934 is further amended by inserting after section 31 
the following new section:

              ``full cost recovery of commission expenses

    ``Sec. 31A. (a) Purpose.--It is the purpose of this section--
            ``(1) to establish a system for the annual adjustment of 
        fees collected by the Commission so that the total amount 
        appropriated to the Commission for any fiscal year will be 
        offset by the amount collected during such fiscal year; and
            ``(2) in order to permit an orderly transition to this 
        method of funding the Commission, to require that such fees 
        continue to collect general revenues during each of the fiscal 
        years 1994 through 1998 in amounts commensurate with the amount 
        of such revenues produced by such fees prior to the enactment 
        of this section.
    ``(b) Establishment of Adjusted Rates.--
            ``(1) Obligation to adjust rates to recover cost.--For each 
        of the fiscal years after fiscal year 1993, the Commission, by 
        rule or order, shall adjust the rate of each of the fees 
        described in subsection (c) to secure (when combined with fees 
        collected during the period from October 1 through December 31 
        under the rates then in effect) a total amount of collections 
        of such fees during such fiscal year that can reasonably be 
        expected to equal the sum of--
                    ``(A) the applicable surplus amount for such fiscal 
                year, if any; and
                    ``(B) subject to subsection (e)(1), the amount 
                appropriated for such fiscal year of this title 
                (determined without regard to any reduction of the net 
                amount appropriated that is attributable to offsetting 
                collections).
            ``(2) Method of adjustment.--Such rates shall be adjusted 
        by making an equal proportionate change in each of such rates, 
        except that the Commission may round such proportionate changes 
        to avoid requiring rates that are unduly mathematically 
        complex.
            ``(3) Effective date of adjustments.--Such adjusted rates 
        shall apply--
                    ``(A) with respect to any fee described in 
                paragraph (1), (2), (3), or (5) of subsection (c), to 
                any fee paid on or after January 1 of such fiscal year; 
                and
                    ``(B) with respect to any fee described in 
                paragraph (4) of such subsection, to any fee based on a 
                transaction occurring on or after January 1 of such 
                fiscal year.
        Any such adjusted rate shall continue to apply until the 
        effective date of a subsequent adjusted rate.
    ``(c) Fees to Which Adjustments Apply.--For purposes of this 
section, the fees described in this subsection are--
            ``(1) the fees collected under section 6(b) of the 
        Securities Act of 1933;
            ``(2) the fees collected under section 13(e) of this title;
            ``(3) the fees collected under section 14(g) of this title;
            ``(4) the fees collected under section 31 of this title; 
        and
            ``(5) the fees collected under section 203A of the 
        Investment Advisers Act of 1940.
    ``(d) Applicable Surplus Amount.--For purposes of subsection 
(b)(1)(A), the applicable surplus amount is equal to--
            ``(1) $171,000,000 for fiscal year 1994;
            ``(2) $174,000,000 for fiscal year 1995;
            ``(3) $178,000,000 for fiscal year 1996;
            ``(4) $181,000,000 for fiscal year 1997;
            ``(5) $184,000,000 for fiscal year 1998; and
            ``(6) zero each succeeding fiscal year.
    ``(e) Deposit and Credit of Offsetting Collections.--
            ``(1) Offsetting collections contingent on 
        appropriations.--The authority of the Commission to collect and 
        deposit fees as offsetting collections pursuant to paragraph 
        (2) is available only to the extent provided in advance in 
        appropriations Acts.
            ``(2) Offsetting collections.--Of the moneys received 
        during any fiscal year from fees described in subsection (c), 
        there shall (subject to paragraph (1)) be deposited as an 
        offsetting collection in, and credited to, the account 
        providing appropriations to carry out the functions described 
        in the sections referred to in such subsection, an amount equal 
        to the amount appropriated to the Commission for such fiscal 
        year (determined without regard to any reduction attributable 
        to such offsetting collections and excluding any amounts that 
        are permitted to remain available after the close of the 
        succeeding fiscal year).
            ``(3) General revenues.--The remainder of any moneys 
        received during any fiscal year (after complying with paragraph 
        (2)) shall be deposited in the Treasury of the United States as 
        miscellaneous receipts.
    ``(f) Judicial Review; Reports to Congress.--The determinations and 
adjustments made by the Commission under this section shall not be 
subject to judicial review. The Commission shall, not less than 30 days 
before the effective date of any adjustments required by this section, 
submit such adjustments to the Congress together with a report 
explaining the estimates and calculations on which such adjustments are 
based.
    ``(g) Reclassification for Budget Purposes.--
            ``(1) Effect on discretionary spending limits.--For 
        purposes of complying with section 251 of the Balanced Budget 
        and Emergency Deficit Control Act of 1985, the change mandated 
        by subsection (e) of this section in the budgetary treatment of 
        certain moneys received from fees shall be treated as a change 
        in concepts and definitions within the meaning of section 
        251(b)(1)(A) of that Act. Accordingly--
                    ``(A) at the earliest time allowed by section 
                251(b)(1) of that Act, the Director of the Office of 
                Management and Budget shall adjust the discretionary 
                spending limits in accordance with section 251(b)(1) to 
                reflect this change in concepts and definitions; and
                    ``(B) if a final sequestration report under section 
                254(g) of that Act is issued before the adjustment 
                under subparagraph (A) occurs, the change in budgetary 
                treatment mandated by subsection (e) of this section 
                shall be disregarded for all purposes of that report.
            ``(2) Effect on pay-as-you-go limits.--The changes mandated 
        by this section shall be treated as affecting receipts for 
        purposes of section 252 of that Act only to the extent that the 
        applicable surplus amount differs from the surplus amount in 
        the baseline. For this purpose, the surplus amount in the 
        baseline shall be determined by subtracting the baseline 
        estimate of outlays of the Commission from the baseline 
        estimate of receipts generated by the fees described in 
        subsection (c).''.
    (b) Adjustment of Fees to Recover Costs.--
            (1) Changes in application and collection of transaction 
        fees under section 31 of the securities exchange act of 1934.--
        Section 31 of the Securities Exchange Act of 1934 (15 U.S.C. 
        78ee) is amended to read as follows:

                           ``transaction fees

    ``Sec. 31. (a) Cost Recovery.--The Commission shall, in accordance 
with this section and subject to section 31A(e), collect transaction 
fees to recover the costs of supervision and regulation of, and 
enforcement with respect to, securities markets and securities 
professionals. Such costs shall include a proportional share of related 
Commission expenses in the following areas: enforcement activities, 
policy and rulemaking activities, administration, legal services, 
investor information services, and international regulatory activities.
    ``(b) Exchange-Traded Securities.--Every national securities 
exchange shall pay to the Commission a fee in an amount equal to 1/
300th of 1 percent of the aggregate dollar amount of sales of 
securities (other than bonds, debentures, and other evidences of 
indebtedness) transacted on such national securities exchange.
    ``(c) Off-Exchange-Traded Securities.--For transactions occurring 
on or after January 1, 1994, every national securities association 
shall pay to the Commission a fee in an amount equal to 1/300th of 1 
percent of the aggregate dollar amount of sales transacted by or 
through any member of such association otherwise than on a national 
securities exchange of--
            ``(1) securities registered on such an exchange (other than 
        bonds, debentures, and other evidences of indebtedness); and
            ``(2) securities (other than bonds, debentures, and other 
        evidences of indebtedness) subject to prompt last sale 
        reporting pursuant to the rules of a registered national 
        securities association.
    ``(d) Dates for Payment of Fees.--For transactions occurring on or 
after January 1, 1994, the fees required by subsections (b) and (c) 
shall be paid semiannually. Fees shall be paid on September 15 for 
transactions occurring during the period from the preceding January 1 
through June 30, and shall be paid on March 15 for transactions 
occurring during the period from the preceding July 1 through December 
31.
    ``(e) Exemptions.--The Commission, by rule, may exempt any sale of 
securities or any class of sales of securities from any fee imposed by 
this section, if the Commission finds that such exemption is consistent 
with the public interest, the equal regulation of markets and brokers 
and dealers, and the development of a national market system.
    ``(f) Rates Subject to Adjustment and Contingent on 
Appropriations.--The fees required by this section are subject to 
adjustment by the Commission pursuant to section 31A of this title. The 
authority to collect such fees and the total amount of such fees are 
subject to subsection (e) of such section.''.
            (2) Registration fees.--Section 6(b) of the Securities Act 
        of 1933 (15 U.S.C. 77f(b)) is amended to read as follows:
    ``(b)(1) The Commission shall, in accordance with this subsection 
and subject to section 31A(e) of the Securities Exchange Act of 1934, 
collect registration fees to recover the costs of services of the 
securities registration process. Such costs shall include a 
proportional share of related Commission expenses in the following 
areas: enforcement activities, policy and rulemaking activities, 
administration, legal services, investor information services, and 
international regulatory activities.
    ``(2) At the time of filing a registration statement, the applicant 
shall pay to the Commission a fee of \1/32\ of 1 percent of the maximum 
aggregate price at which such securities are proposed to be offered, 
but in no case shall such fee be less than $100.
    ``(3) The fees required by this subsection are subject to 
adjustment by the Commission pursuant to section 31A of the Securities 
Exchange Act of 1934. The authority to collect such fees and the total 
amount of such fees are subject to subsection (e) of such section.''.
            (3) Self-tendering transactions.--Section 13(e)(3) of the 
        Securities Exchange Act of 1934 (15 U.S.C. 78m(e)(3)) is 
        amended--
                    (A) by inserting after ``(3)'' the following: ``The 
                Commission shall, in accordance with this paragraph and 
                subject to section 31A(e), collect fees to recover the 
                costs of supervision and regulation of, and enforcement 
                with respect to, disclosure relating to transactions 
                subject to this subsection. Such costs shall include a 
                proportional share of related Commission expenses in 
                the following areas: enforcement activities, policy and 
                rulemaking activities, administration, legal services, 
                investor information services, and international 
                regulatory activities.'';
                    (B) by striking ``\1/50\ of 1 per centum'' and 
                inserting ``\1/32\ of 1 percent''; and
                    (C) by adding at the end thereof the following: 
                ``The fees required by this paragraph are subject to 
                adjustment by the Commission pursuant to section 31A of 
                the Securities Exchange Act of 1934. The authority to 
                collect such fees and the total amount of such fees are 
                subject to subsection (e) of such section.''.
            (4) Proxy filing fees.--Section 14(g) of the Securities 
        Exchange Act of 1934 (15 U.S.C. 78n(g)) is amended--
                    (A) by striking ``\1/50\ of 1 per centum'' each 
                place it appears in paragraphs (1)(A)(i), (1)(A)(ii), 
                and (3) and inserting ``\1/32\ of 1 percent'';
                    (B) by redesignating paragraphs (1) through (4) as 
                paragraphs (2) through (5);
                    (C) by striking such subsection designation and by 
                inserting before such redesignated paragraph (2) the 
                following:
    ``(g)(1) The Commission shall, in accordance with this paragraph 
and subject to section 31A(e), collect proxy filing fees to recover the 
costs of supervision and regulation of the proxy filing and disclosure 
process. Such costs shall include a proportional share of related 
Commission expenses in the following areas: enforcement activities, 
policy and rulemaking activities, administration, legal services, 
investor information services, and international regulatory 
activities.''; and
                    (D) by adding at the end thereof the following new 
                paragraph:
    ``(6) The fees required by this subsection are subject to 
adjustment by the Commission pursuant to section 31A of this title. The 
authority to collect such fees and the total amount of such fees are 
subject to subsection (e) of such section.''.
    (c) Effective Dates.--Except as otherwise provided therein, the 
amendments made by this section are effective for fiscal years after 
fiscal year 1993.

SEC. 4. FEE STRUCTURE STUDY.

    (a) Study Required.--The Securities and Exchange Commission shall 
conduct a study of the structure and procedures for the collection of 
fees by the Commission pursuant to the amendments made by this Act. 
Such study shall include (but not be limited to) an examination of--
            (1) the expanding statutory mandate and regulatory 
        responsibilities of the Commission,
            (2) the adequacy of current fees to meet Commission 
        resource needs,
            (3) the possible need for new fees in specific program 
        areas,
            (4) the extent to which beneficiaries of Commission 
        regulatory activities equitably share fee burdens, and
            (5) the impact of specific fees on the international 
        competitiveness of United States markets.
    (b) Report Required.--Not later than March 31, 1995, the Commission 
shall submit to the Congress a final report containing a detailed 
statement of findings made and conclusions drawn from the study 
conducted under this section, including such recommendations for 
administrative and legislative action as the Commission determines to 
be appropriate.

            Passed the House of Representatives July 20, 1993.

            Attest:

                                           DONNALD K. ANDERSON,

                                                                 Clerk.