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[House Report 107-415]
[From the U.S. Government Publishing Office]

107th Congress                                            Rept. 107-415
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 2

======================================================================

 
      SECURITIES AND EXCHANGE COMMISSION AUTHORIZATION ACT OF 2002

                                _______
                                

                 April 24, 2002.--Ordered to be printed

                                _______
                                

  Mr. Oxley, from the Committee on Financial Services, submitted the 
                               following

                              R E P O R T

                          SUPPLEMENTAL REPORT

                        [To accompany H.R. 3764]

    This supplemental report shows the cost estimate of the 
Congressional Budget Office with respect to the bill (H.R. 
3764), as reported, which was not included in part 1 of the 
report submitted by the Committee on Financial Services on 
April 22, 2002 (H. Rept. 107-415, pt. 1).
    This supplemental report is submitted in accordance with 
clause 3(a)(2) of rule XIII of the Rules of the House of 
Representatives.
    This supplemental report contains the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974 that was not 
available at the time part 1 of the report was filed and 
updates other sections of the report accordingly. Any section 
appearing in this report should be deemed to supersede the same 
section in part 1 of this report.

   NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that this 
legislation would result in no new budget authority, 
entitlement authority, or tax expenditures or revenues.

                        COMMITTEE COST ESTIMATE

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  CONGRESSIONAL BUDGET OFFICE ESTIMATE

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, April 22, 2002.
Hon. Michael G. Oxley,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3764, the 
Securities and Exchange Commission Authorization Act of 2002.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Ken Johnson.
            Sincerely,
                                           Steven Lieberman
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 3764--Securities and Exchange Commission Authorization Act of 2002

    Summary: H.R. 3764 would authorize the appropriation of 
$776 million for the Securities and Exchange Commission (SEC) 
in 2003. Of this amount, the bill authorizes at least $134 
million for the SEC's Division of Corporate Finance and the 
Office of the Chief Accountant, at least $326 million for the 
agency's Division of Enforcement, and at least $76 million for 
higher compensation for SEC employees.
    Assuming appropriation of the authorized amount, CBO 
estimates that implementing H.R. 3764 would cost about $607 
million in 2003, and an additional $162 million in 2004. 
Assuming the continued collection of the regulatory fees 
assessed by the SEC, however, net SEC spending would be 
negative in 2003, as is the case in 2002. Under H.R. 3764, we 
estimate net SEC spending of -$606 million in 2003. H.R. 3764 
would not affect direct spending or receipts; therefore, pay-
as-you-go procedures would not apply.
    H.R. 3764 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would not affect the budgets of state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 3764 is shown in the following table. 
The costs of this legislation fall within budget function 370 
(commerce and housing credit).

----------------------------------------------------------------------------------------------------------------
                                                            By fiscal year, in millions of dollars--
                                               -----------------------------------------------------------------
                                                   2002       2003       2004       2005       2006       2007
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Gross SEC spending:
    Under current law:
        Budget authority......................        409          0          0          0          0          0
        Estimated outlays.....................        408         90          0          0          0          0
    Proposed changes:
        Authorization level...................          0        776          0          0          0          0
        Estimated outlays.....................          0        607        162          0          0          0
    Under H.R. 3764:
        Budget authority/authorization level..        409        776          0          0          0          0
        Estimated outlays.....................        408        697        162          0          0          0
Less offsetting collections: \1\
    Estimated authorization level.............     -1,135     -1,303          0          0          0          0
    Estimated outlays.........................     -1,135     -1,303          0          0          0          0
Net SEC spending:
    Under current law:
        Estimated budget authority............       -726          0          0          0          0          0
        Estimated outlays.....................       -727         90          0          0          0          0
    Under H.R. 3764:
        Estimated authorization level.........       -726       -527          0          0          0          0
        Estimated outlays.....................       -727       -606        162          0          0          0
----------------------------------------------------------------------------------------------------------------
\1\ The SEC collects fees to the extent provided in advance in appropriation acts. The amount of fees collected
  is not dependent on the amount appropriated. (The authority to collect such fees in 2002 has been triggered by
  the 2002 appropriation; but there is no appropriation for 2003 yet.)

    Basis of estimate: The annual appropriation for the SEC is 
typically offset by fees the agency collects for registrations, 
transactions, and mergers of securities. Under current law, the 
fee rates are determined periodically by the SEC, and they are 
collected only to the extent provided in advance in 
appropriation acts. In recent years those fee collections have 
been significantly greater than the appropriation provided to 
the agency.
    For 2002, CBO estimates that the gross spending of the SEC 
will amount to $408 million. When this figure in added to an 
estimated $1.1 billion in fee collections, CBO estimates that 
the agency's net spending will be about -$727 million for 2002.
    Based on the SEC's historical spending patterns, CBO 
estimates that implementing H.R. 3764 would have a gross cost 
of $607 million in 2003 and $769 million during the 2003-2004 
period, assuming the appropriation of the necessary amounts. 
Adding these amounts to CBO's projections for fee collections 
in 2003, we estimate that the SEC's net spending would equal 
-$606 million in that year.
    Pay-as-you-go considerations: None.
    Intergovernmental and private sector impact: H.R. 3764 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would not affect the budgets of state, 
local, or tribal governments.
    Estimate prepared by: Federal costs: Ken Johnson; impact on 
state, local, and tribal governments: Susan Sieg Thompkins; 
Private-sector impact: Paige Piper/Bach.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                       FEDERAL MANDATES STATEMENT

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                                
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