II

Calendar No. 20

107TH CONGRESS

1ST SESSION S. 143

[Report No. 107–3]

To amend the Securities Act of 1933 and the Securities Exchange Act

of 1934, to reduce securities fees in excess of those required to fund

the operations of the Securities and Exchange Commission, to adjust

compensation provisions for employees of the Commission, and for other

purposes.

IN THE SENATE OF THE UNITED STATES

JANUARY 22, 2001

Mr. GRAMM (for himself, Mr. SCHUMER, Mr. HAGEL, Mr. ENZI, Mr. BENNETT, Mr. BUNNING, Mr. BOND, Mr. TORRICELLI, Mr. ALLARD, Mr.

CRAPO, Mr. BAYH, Mr. MILLER, Mrs. BOXER, Mr. ENSIGN, and Mr.

SANTORUM) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs

MARCH 14, 2001

Reported by Mr. GRAMM, with an amendment

[Strike out all after the enacting clause and insert the part printed in italic]

A BILL

To amend the Securities Act of 1933 and the Securities

Exchange Act of 1934, to reduce securities fees in excess

of those required to fund the operations of the Securities

and Exchange Commission, to adjust compensation provisions for employees of the Commission, and for other

purposes.
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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Competitive Market Supervision Act of 2001’’.

6 (b) TABLE OF CONTENTS.—The table of contents for

7 this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Reduction in registration fee rates; elimination of general revenue component.

Sec. 3. Reduction in merger and tender fee rates; reclassification as offsetting

collections.

Sec. 4. Reduction in transaction fees; elimination of general revenue component.

Sec. 5. Adjustments to fee rates.

Sec. 6. Comparability provisions.

Sec. 7. Effective date.

8 SEC. 2. REDUCTION IN REGISTRATION FEE RATES; ELIMI9 NATION OF GENERAL REVENUE COMPONENT.

10 Section 6(b) of the Securities Act of 1933 (15 U.S.C.

11 77f(b)) is amended—

12 (1) by striking paragraph (2) and inserting the

13 following:

14 ‘‘(2) FEE PAYMENT REQUIRED.—At the time of

15 filing a registration statement, the applicant shall

16 pay to the Commission a fee that shall be equal to

17 the amount determined under the rate established by

18 paragraph (3). The Commission shall publish in the

19 Federal Register notices of the fee rate applicable

20 under this section for each fiscal year.’’;
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1 (2) by striking paragraph (3);

2 (3) by redesignating paragraphs (4) and (5) as

3 paragraphs (3) and (4), respectively;

4 (4) in paragraph (3), as redesignated—

5 (A) by striking subparagraph (A) and in6 serting the following:

7 ‘‘(A) IN GENERAL.—Except as provided in

8 subparagraphs (B) and (C), the rate deter9 mined under this paragraph is a rate equal to

10 the following amount per $1,000,000 of the

11 maximum aggregate price at which the securi12 ties are proposed to be offered:

13 ‘‘(i) $67 for each of fiscal years 2002

14 through 2006.

15 ‘‘(ii) $33 for fiscal year 2007 and

16 each fiscal year thereafter.’’; and

17 (B) in subparagraph (B), by striking ‘‘this

18 paragraph (4)’’ and inserting ‘‘this paragraph’’;

19 and

20 (5) by striking paragraph (4), as redesignated,

21 and inserting the following:

22 ‘‘(4) PRO RATA APPLICATION OF RATE.—The

23 rate required by this subsection shall be applied pro

24 rata to amounts and balances equal to or less than

25 $1,000,000.’’.
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1 SEC. 3. REDUCTION IN MERGER AND TENDER FEE RATES;

2 RECLASSIFICATION AS OFFSETTING COLLEC3 TIONS.

4 (a) SECTION 13.—Section 13(e)(3) of the Securities

5 Exchange Act of 1934 (15 U.S.C. 78m(e)(3)) is amended

6 to read as follows:

7 ‘‘(3) FEES.—

8 ‘‘(A) IN GENERAL.—At the time of the fil9 ing of any statement that the Commission may

10 require by rule pursuant to paragraph (1), the

11 person making the filing shall pay to the Com12 mission a fee equal to—

13 ‘‘(i) $67 for each $1,000,000 of the

14 value of the securities proposed to be pur15 chased, for each of fiscal years 2002

16 through 2006; and

17 ‘‘(ii) $33 for each $1,000,000 of the

18 value of securities proposed to be pur19 chased, for fiscal year 2007 and each fiscal

20 year thereafter.

21 ‘‘(B) REDUCTION.—The fee required by

22 this paragraph shall be reduced with respect to

23 securities in an amount equal to any fee paid

24 with respect to any securities issued in connec25 tion with the proposed transaction under sec26 tion 6(b) of the Securities Act of 1933, or the
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1 fee paid under that section shall be reduced in

2 an amount equal to the fee paid to the Commis3 sion in connection with such transaction under

4 this paragraph.

5 ‘‘(C) LIMITATION; DEPOSIT OF FEES.—

6 ‘‘(i) LIMITATION.—Except as provided

7 in subparagraph (D), no amounts shall be

8 collected pursuant to this paragraph for

9 any fiscal year, except to the extent pro10 vided in advance in appropriations Acts.

11 ‘‘(ii) DEPOSIT OF FEES.—Fees col12 lected during any fiscal year pursuant to

13 this paragraph shall be deposited and cred14 ited as offsetting collections in accordance

15 with appropriations Acts.

16 ‘‘(D) LAPSE OF APPROPRIATIONS.—If, on

17 the first day of a fiscal year, a regular appro18 priation to the Commission has not been en19 acted for that fiscal year, the Commission shall

20 continue to collect fees (as offsetting collec21 tions) under this paragraph at the rate in effect

22 during the preceding fiscal year, until such a

23 regular appropriation is enacted.

24 ‘‘(E) PRO RATA APPLICATION OF RATE.—

25 The rate required by this paragraph shall be
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1 applied pro rata to amounts and balances equal

2 to or less than $1,000,000.’’.

3 (b) SECTION 14.—

4 (1) PRELIMINARY PROXY SOLICITATIONS.—Sec5 tion 14(g)(1) of the Securities Exchange Act of

6 1934 (15 U.S.C. 78n(g)(1)) is amended—

7 (A) in subparagraph (A), by striking

8 ‘‘Commission the following fees’’ and all that

9 follows through the end of the subparagraph

10 and inserting ‘‘Commission—

11 ‘‘(i) for preliminary proxy solicitation

12 material involving an acquisition, merger,

13 or consolidation, if there is a proposed pay14 ment of each or transfer of securities or

15 property to shareholders, a fee equal to—

16 ‘‘(I) $67 for each $1,000,000 of

17 such proposed payment, or of the

18 value of such securities or other prop19 erty proposed to be transferred, for

20 each of fiscal years 2002 through

21 2006; and

22 ‘‘(II) $33 for each $1,000,000 of

23 such proposed payment, or of the

24 value of such securities or other prop25 erty proposed to be transferred, for
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1 fiscal year 2007 and each fiscal year

2 thereafter; and

3 ‘‘(ii) for preliminary proxy solicitation

4 material involving a proposed sale or other

5 disposition of substantially all of the assets

6 of a company, a fee equal to—

7 ‘‘(I) $67 for each $1,000,000 of

8 the cash or of the value of any securi9 ties or other property proposed to be

10 received upon such sale or disposition,

11 for each of fiscal years 2002 through

12 2006; and

13 ‘‘(II) $33 for each $1,000,000 of

14 the cash or of the value of any securi15 ties or other property proposed to be

16 received upon such sale or disposition,

17 for fiscal year 2007 and each fiscal

18 year thereafter.’’;

19 (B) in subparagraph (B), by inserting

20 ‘‘REDUCTION.—’’ before ‘‘The fee’’; and

21 (C) by adding at the end the following:

22 ‘‘(C) LIMITATION; DEPOSIT OF FEES.—

23 ‘‘(i) LIMITATION.—Except as provided

24 in subparagraph (D), no amounts shall be

25 collected pursuant to this paragraph for
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1 any fiscal year, except to the extent pro2 vided in advance in appropriations Acts.

3 ‘‘(ii) DEPOSIT OF FEES.—Fees col4 lected during any fiscal year pursuant to

5 this paragraph shall be deposited and cred6 ited as offsetting collections in accordance

7 with appropriations Acts.

8 ‘‘(D) LAPSE OF APPROPRIATIONS.—If, on

9 the first day of a fiscal year, a regular appro10 priation to the Commission has not been en11 acted for that fiscal year, the Commission shall

12 continue to collect fees (as offsetting collec13 tions) under this paragraph at the rate in effect

14 during the preceding fiscal year, until such a

15 regular appropriation is enacted.

16 ‘‘(E) PRO RATA APPLICATION OF RATE.—

17 The rate required by this paragraph shall be

18 applied pro rata to amounts and balances equal

19 to or less than $1,000,000.’’.

20 (2) OTHER FILINGS.—Section 14(g)(3) of the

21 Securities Exchange Act of 1934 (15 U.S.C.

22 78n(g)(3)) is amended—

23 (A) by striking ‘‘At the time’’ and insert24 ing the following: ‘‘OTHER FILINGS.—

25 ‘‘(A) FEE RATE.—At the time’’;
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1 (B) by striking ‘‘the Commission a fee of’’

2 and all that follows through ‘‘The fee’’ and in3 serting the following: ‘‘the Commission a fee

4 equal to—

5 ‘‘(i) $67 for each $1,000,000 of the

6 aggregate amount of cash or of the value

7 of securities or other property proposed to

8 be offered, for each of fiscal years 2002

9 through 2006; and

10 ‘‘(ii) $33 for each $1,000,000 of the

11 aggregate amount of cash or of the value

12 of securities or other property proposed to

13 be offered, for fiscal year 2007 and each

14 fiscal year thereafter.

15 ‘‘(B) REDUCTION.—The fee required under

16 subparagraph (A)’’; and

17 (C) by adding at the end the following:

18 ‘‘(C) LIMITATION; DEPOSIT OF FEES.—

19 ‘‘(i) LIMITATION.—Except as provided

20 in subparagraph (D), no amounts shall be

21 collected pursuant to this paragraph for

22 any fiscal year, except to the extent pro23 vided in advance in appropriations Acts.

24 ‘‘(ii) DEPOSIT OF FEES.—Fees col25 lected during any fiscal year pursuant to
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1 this paragraph shall be deposited and cred2 ited as offsetting collections in accordance

3 with appropriations Acts.

4 ‘‘(D) LAPSE OF APPROPRIATIONS.—If, on

5 the first day of a fiscal year, a regular appro6 priation to the Commission has not been en7 acted for that fiscal year, the Commission shall

8 continue to collect fees (as offsetting collec9 tions) under this paragraph at the rate in effect

10 during the preceding fiscal year, until such a

11 regular appropriation is enacted.

12 ‘‘(E) PRO RATA APPLICATION OF RATE.—

13 The rate required by this paragraph shall be

14 applied pro rata to amounts and balances equal

15 to or less than $1,000,000.’’.

16 SEC. 4. REDUCTION IN TRANSACTION FEES; ELIMINATION

17 OF GENERAL REVENUE COMPONENT.

18 Section 31 of the Securities Exchange Act of 1934

19 (15 U.S.C. 78ee) is amended—

20 (1) by striking subsections (b) through (d) and

21 inserting the following:

22 ‘‘(b) TRANSACTION FEES.—

23 ‘‘(1) IN GENERAL.—Each national securities ex24 change and national securities association shall pay

25 to the Commission a fee at a rate equal to the trans-
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1 action offsetting collection rate described in para2 graph (2) of the aggregate dollar amount of sales of

3 securities (other than bonds, debentures, and other

4 evidences of indebtedness)—

5 ‘‘(A) transacted on such national securities

6 exchange;

7 ‘‘(B) transacted by or through any member

8 of such association otherwise than on a national

9 securities exchange of securities registered on

10 such an exchange; and

11 ‘‘(C) transacted by or through any member

12 of such association otherwise than on a national

13 securities exchange of securities that are subject

14 to prompt last sale reporting pursuant to the

15 rules of the Commission or a registered national

16 securities association, excluding any sales for

17 which a fee is paid under subparagraph (B).

18 ‘‘(2) FEE RATE.—

19 ‘‘(A) TRANSACTION OFFSETTING COLLEC20 TION RATE.—For purposes of this subsection,

21 the ‘transaction offsetting collection rate’ for a

22 fiscal year—

23 ‘‘(i) is the uniform rate required to

24 reach the transaction fee cap for that fiscal

25 year; and
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1 ‘‘(ii) shall become effective on the

2 later of the beginning of that fiscal year or

3 the date of enactment of appropriations

4 legislation setting such rate.

5 ‘‘(B) TRANSACTION FEE CAP.—For pur6 poses of this paragraph, the ‘transaction fee

7 cap’ shall be equal to—

8 ‘‘(i) $497,000,000 for fiscal year

9 2002;

10 ‘‘(ii) $607,000,000 for fiscal year

11 2003;

12 ‘‘(iii) $706,000,000 for fiscal year

13 2004;

14 ‘‘(iv) $896,000,000 for fiscal year

15 2005;

16 ‘‘(v) $1,094,000,000 for fiscal year

17 2006;

18 ‘‘(vi) $554,000,000 for fiscal year

19 2007;

20 ‘‘(vii) $580,000,000 for fiscal year

21 2008;

22 ‘‘(viii) $719,000,000 for fiscal year

23 2009; and

24 ‘‘(ix) $884,000,000 for fiscal year

25 2010 and each fiscal year thereafter.
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1 ‘‘(c) LIMITATION; DEPOSIT OF FEES.—

2 ‘‘(1) LIMITATION.—Except as provided in sub3 section (d), no amount may be collected pursuant to

4 subsection (b) for any fiscal year, except to the ex5 tent provided in advance in appropriation Acts.

6 ‘‘(2) DEPOSIT OF FEES.—Fees collected during

7 any fiscal year pursuant to this section shall be de8 posited and credited as offsetting collections in ac9 cordance with appropriations Acts.

10 ‘‘(d) LAPSE OF APPROPRIATIONS.—If, on the first

11 day of a fiscal year, a regular appropriation to the Com12 mission has not been enacted for that fiscal year, the Com13 mission shall continue to collect fees (as offsetting collec14 tions) under this section at the rate in effect during the

15 preceding fiscal year (prior to adjustments, if any, under

16 subsections (b) and (c) of section 5 of the Competitive

17 Market Supervision Act), until such a regular appropria18 tion is enacted.’’;

19 (2) in subsection (e), by striking ‘‘subsections

20 (b), (c), and (d)’’ and inserting ‘‘subsection (b)’’;

21 and

22 (3) in subsection (g), by striking ‘‘rates’’ and

23 inserting ‘‘rate’’.

24 SEC. 5. ADJUSTMENTS TO FEE RATES.

25 (a) ESTIMATES OF COLLECTIONS.—
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1 (1) FEE PROJECTIONS.—The Securities and

2 Exchange Commission (hereafter in this Act referred

3 to as the ‘‘Commission’’) shall, 1 month after sub4 mission of its initial report under subsection (e)(1)

5 and on a monthly basis thereafter, project the aggre6 gate amount of fees from all sources likely to be col7 lected by the Commission during the current fiscal

8 year.

9 (2) SUBMISSION OF INFORMATION.—Each na10 tional securities exchange and national securities as11 sociation shall file with the Commission, not later

12 than 10 days after the end of each month—

13 (A) an estimate of the fee required to be

14 paid pursuant to section 31 of the Securities

15 Exchange Act of 1934 by such national securi16 ties exchange or national securities association

17 for transactions and sales occurring during

18 such month; and

19 (B) such other information and documents

20 as the Commission may require, as necessary or

21 appropriate to project the aggregate amount of

22 fees pursuant to paragraph (1).

23 (b) FLOOR FOR TOTAL FEE COLLECTIONS.—If, at

24 any time after the end of the first half of the fiscal year,

25 the Commission projects under subsection (a) that the ag-
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1 gregate amount of fees collected by the Commission will,

2 during that fiscal year, fall below an amount equal to the

3 floor for total fee collections, the Commission may by

4 order, subject to subsection (e), increase the fee rate es5 tablished under section 31 of the Securities Exchange Act

6 of 1934 to the extent necessary to bring estimated collec7 tions to an amount equal to the floor for total fee collec8 tions. Such increase shall apply only to transactions and

9 sales occurring on or after the effective date specified in

10 such order through August 31 of that fiscal year. Such

11 increase shall not affect the obligation of each national

12 securities exchange and national securities association to

13 pay the Commission the fee required by section 31 of the

14 Securities Exchange Act of 1934 at the fee rate in effect

15 prior to the effective date of such order for transactions

16 and sales occurring prior to the effective date of such

17 order. In exercising its authority under this subsection, the

18 Commission shall not be required to comply with the provi19 sions of section 553 of title 5, United States Code.

20 (c) CAP ON TOTAL FEE COLLECTIONS.—If, at any

21 time after the end of the first half of the fiscal year, the

22 Commission projects under subsection (a) that the aggre23 gate amount of fees collected by the Commission will ex24 ceed the cap on total fee collections by more than 5 per25 cent during any fiscal year, the Commission shall by order,
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1 subject to subsection (e), decrease the fee rate or suspend

2 collection of fees under section 31 of the Securities Ex3 change Act of 1934 to the extent necessary to bring esti4 mated collections to an amount equal to the cap on total

5 fee collections. Such decrease or suspension shall apply

6 only to transactions and sales occurring on or after the

7 effective date specified in such order through August 31

8 of that fiscal year. Such decrease or suspension shall not

9 affect the obligation of each national securities exchange

10 and national securities association to pay the Commission

11 the fee required by section 31 of the Securities Exchange

12 Act of 1934 at the fee rate in effect prior to the effective

13 date of such order for transactions and sales occurring

14 prior to the effective date of such order. In exercising its

15 authority under this subsection, the Commission shall not

16 be required to comply with the provisions of section 553

17 of title 5, United States Code.

18 (d) DEFINITIONS.—For purposes of this section—

19 (1) the term ‘‘floor for total fee collections’’

20 means the greater of—

21 (A) the total amount appropriated to the

22 Commission for fiscal year 2002 (adjusted an23 nually, based on the annual percentage change,

24 if any, in the Consumer Price Index for all
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1 urban consumers, as published by the Depart2 ment of Labor); or

3 (B) the amount authorized for the Com4 mission pursuant to section 35 of the Securities

5 Exchange Act of 1934 (15 U.S.C. 78kk), if ap6 plicable; and

7 (2) the term ‘‘cap on total fee collections’’

8 means—

9 (A) for fiscal years 2002 through 2010,

10 the baseline amount for aggregate offsetting

11 collections for such fiscal year under section

12 6(b) of the Securities Act of 1933 and section

13 31 of the Securities Exchange Act of 1934, as

14 projected for such fiscal year by the Congres15 sional Budget Office pursuant to section 257 of

16 the Balanced Budget and Emergency Deficit

17 Control Act of 1985 in its most recently pub18 lished report of its baseline projection before

19 the date of enactment of this Act; and

20 (B) for fiscal years 2011 and thereafter,

21 the amount authorized for the Commission pur22 suant to section 35 of the Securities Exchange

23 Act of 1934 (15 U.S.C. 78kk).

24 (e) REPORTS TO CONGRESS; JUDICIAL REVIEW; NO25 TICE.—
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1 (1) INITIAL REPORT.—Not later than 90 days

2 after the date of enactment of this Act, the Commis3 sion shall report to the Committee on Banking,

4 Housing, and Urban Affairs of the Senate and the

5 Committee on Financial Services of the House of

6 Representatives to explain the methodology used by

7 the Commission to make projections under sub8 section (a). Not later than 30 days after the begin9 ning of each fiscal year, the Commission may report

10 to the Committee on Banking, Housing, and Urban

11 Affairs of the Senate and the Committee on Finan12 cial Services of the House of Representatives on re13 visions to the methodology used by the Commission

14 to make projections under subsection (a) for such

15 fiscal year and subsequent fiscal years.

16 (2) JUDICIAL REVIEW; REPORTS OF INTENT TO

17 ACT.—The determinations made and the actions

18 taken by the Commission under this subsection shall

19 not be subject to judicial review. Not later than 45

20 days before taking action under subsection (b) or

21 (c), the Commission shall report to the Committee

22 on Banking, Housing, and Urban Affairs of the Sen23 ate and the Committee on Financial Services of the

24 House of Representatives on its intent to take such

25 action.
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1 (3) NOTICE.—Not later than 30 days before

2 taking action under subsection (b) or (c), the Com3 mission shall notify each national securities ex4 change and national securities association of its in5 tent to take such action.

6 SEC. 6. COMPARABILITY PROVISIONS.

7 (a) SECURITIES AND EXCHANGE COMMISSION EM8 PLOYEES.—

9 (1) IN GENERAL.—Section 4(b) of the Securi10 ties Exchange Act of 1934 (15 U.S.C. 78d(b)) is

11 amended—

12 (A) by striking paragraphs (1) and (2) and

13 inserting the following:

14 ‘‘(1) APPOINTMENT AND COMPENSATION.—

15 ‘‘(A) IN GENERAL.—The Commission may

16 appoint and fix the compensation of such offi17 cers, attorneys, economists, examiners, and

18 other employees as may be necessary for car19 rying out its functions under this Act.

20 ‘‘(B) RATES OF PAY.—Rates of basic pay

21 for all employees of the Commission may be set

22 and adjusted by the Commission without regard

23 to the provisions of chapter 51 or subchapter

24 III of chapter 53 of title 5, United States Code.
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1 ‘‘(C) COMPARABILITY.—The Commission

2 may provide additional compensation and bene3 fits to employees of the Commission if the same

4 type of compensation or benefits are then being

5 provided by any agency referred to under sec6 tion 1206(a) of the Financial Institutions Re7 form, Recovery, and Enforcement Act of 1989

8 (12 U.S.C. 1833b) or, if not then being pro9 vided, could be provided by such an agency

10 under applicable provisions of law, rule, or reg11 ulation. In setting and adjusting the total

12 amount of compensation and benefits for em13 ployees, the Commission shall consult with, and

14 seek to maintain comparability with, the agen15 cies referred to under section 1206(a) of the Fi16 nancial Institutions Reform, Recovery, and En17 forcement Act of 1989 (12 U.S.C. 1833b).’’;

18 and

19 (B) by redesignating paragraph (3) as

20 paragraph (2).

21 (2) EMPLOYEES REPRESENTED BY LABOR OR22 GANIZATIONS.—To the extent that any employee of

23 the Commission is represented by a labor organiza24 tion with exclusive recognition in accordance with

25 chapter 71 of title 5, United States Code, no reduc-
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1 tion in base pay of such employee shall be made by

2 reason of enactment of this subsection.

3 (b) REPORTING ON INFORMATION BY THE COMMIS4 SION.—Section 1206 of the Financial Institutions Reform,

5 Recovery, and Enforcement Act of 1989 (12 U.S.C.

6 1833b) is amended—

7 (1) by inserting ‘‘(a) IN GENERAL.—’’ before

8 ‘‘The Federal Deposit’’;

9 (2) by striking ‘‘the Thrift Depositor Protection

10 Oversight Board of the Resolution Trust Corpora11 tion’’; and

12 (3) by adding at the end the following:

13 ‘‘(b) In establishing and adjusting schedules of com14 pensation and benefits for employees of the Securities and

15 Exchange Commission under applicable provisions of law,

16 the Commission shall inform the heads of the agencies re17 ferred to under subsection (a) and Congress of such com18 pensation and benefits and shall seek to maintain com19 parability with such agencies regarding compensation and

20 benefits.’’.

21 (c) TECHNICAL AMENDMENTS.—

22 (1) Section 3132(a)(1) of title 5, United States

23 Code, is amended—

24 (A) in subparagraph (C), by striking ‘‘or’’

25 after the semicolon;
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1 (B) in subparagraph (D), by inserting

2 ‘‘or’’ after the semicolon; and

3 (C) by adding at the end the following:

4 ‘‘(E) the Securities and Exchange Commis5 sion.’’.

6 (2) Section 5373(a) of title 5, United States

7 Code, is amended—

8 (A) in paragraph (2), by striking ‘‘or’’

9 after the semicolon;

10 (B) in paragraph (3), by striking the pe11 riod and inserting ‘‘; or’’; and

12 (C) by adding at the end the following:

13 ‘‘(4) section 4(b) of the Securities Exchange

14 Act of 1934.’’.

15 SEC. 7. EFFECTIVE DATE.

16 (a) IN GENERAL.—Subject to subsection (b), this Act

17 and the amendments made by this Act shall become effec18 tive on October 1, 2001.

19 (b) EXCEPTIONS.—The authorities provided by sec20 tion 13(e)(3)(D), section 14(g)(1)(D), section

21 14(g)(3)(D), and section 31(d) of the Securities Exchange

22 Act of 1934, as so designated by this Act, shall not apply

23 until October 1, 2002.
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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

2 (a) SHORT TITLE.—This Act may be cited as the

3 ‘‘Competitive Market Supervision Act of 2001’’.

4 (b) TABLE OF CONTENTS.—The table of contents for

5 this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Reduction in registration fee rates; elimination of general revenue component.

Sec. 3. Reduction in merger and tender fee rates; reclassification as offsetting collections.

Sec. 4. Reduction in transaction fees; elimination of general revenue component.

Sec. 5. Adjustments to fee rates.

Sec. 6. Comparability provisions.

Sec. 7. Effective date.

6 SEC. 2. REDUCTION IN REGISTRATION FEE RATES; ELIMI7 NATION OF GENERAL REVENUE COMPONENT.

8 (a) SECURITIES ACT OF 1933.—Section 6(b) of the Se9 curities Act of 1933 (15 U.S.C. 77f(b)) is amended—

10 (1) by striking paragraph (2) and inserting the

11 following:

12 ‘‘(2) FEE PAYMENT REQUIRED.—At the time of

13 filing a registration statement, the applicant shall

14 pay to the Commission a fee that shall be equal to the

15 amount determined under the rate established by

16 paragraph (3). The Commission shall publish in the

17 Federal Register notices of the fee rate applicable

18 under this section for each fiscal year.’’;

19 (2) by striking paragraph (3);

20 (3) by redesignating paragraphs (4) and (5) as

21 paragraphs (3) and (4), respectively;
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1 (4) in paragraph (3), as redesignated—

2 (A) by striking subparagraph (A) and in3 serting the following:

4 ‘‘(A) IN GENERAL.—Except as provided in

5 subparagraphs (B) and (C), the rate determined

6 under this paragraph is a rate equal to the fol7 lowing amount per $1,000,000 of the maximum

8 aggregate price at which the securities are pro9 posed to be offered:

10 ‘‘(i) $67 for each of fiscal years 2002

11 through 2006.

12 ‘‘(ii) $33 for fiscal year 2007 and each

13 fiscal year thereafter.’’; and

14 (B) in subparagraph (B), by striking ‘‘this

15 paragraph (4)’’ and inserting ‘‘this paragraph’’;

16 and

17 (5) by striking paragraph (4), as redesignated,

18 and inserting the following:

19 ‘‘(4) PRO RATA APPLICATION OF RATE.—The rate

20 required by this subsection shall be applied pro rata

21 to amounts and balances equal to or less than

22 $1,000,000.’’.

23 (b) TRUST INDENTURE ACT OF 1939.—Section 307(b)

24 of the Trust Indenture Act of 1939 (15 U.S.C. 77ggg(b))

25 is amended by striking ‘‘, but, in the case of ’’ and all that
25

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1 follows through the end of the subsection and inserting a

2 period.

3 SEC. 3. REDUCTION IN MERGER AND TENDER FEE RATES;

4 RECLASSIFICATION AS OFFSETTING COLLEC5 TIONS.

6 (a) SECTION 13.—Section 13(e)(3) of the Securities

7 Exchange Act of 1934 (15 U.S.C. 78m(e)(3)) is amended

8 to read as follows:

9 ‘‘(3) FEES.—

10 ‘‘(A) IN GENERAL.—At the time of the filing

11 of any statement that the Commission may re12 quire by rule pursuant to paragraph (1), the

13 person making the filing shall pay to the Com14 mission a fee equal to—

15 ‘‘(i) $67 for each $1,000,000 of the

16 value of the securities proposed to be pur17 chased, for each of fiscal years 2002 through

18 2006; and

19 ‘‘(ii) $33 for each $1,000,000 of the

20 value of securities proposed to be purchased,

21 for fiscal year 2007 and each fiscal year

22 thereafter.

23 ‘‘(B) REDUCTION.—The fee required by this

24 paragraph shall be reduced with respect to secu25 rities in an amount equal to any fee paid with
26

•S 143 RS

1 respect to any securities issued in connection

2 with the proposed transaction under section 6(b)

3 of the Securities Act of 1933, or the fee paid

4 under that section shall be reduced in an amount

5 equal to the fee paid to the Commission in con6 nection with such transaction under this para7 graph.

8 ‘‘(C) LIMITATION; DEPOSIT OF FEES.—

9 ‘‘(i) LIMITATION.—Except as provided

10 in subparagraph (D), no amounts shall be

11 collected pursuant to this paragraph for

12 any fiscal year, except to the extent pro13 vided in advance in appropriations Acts.

14 ‘‘(ii) DEPOSIT OF FEES.—Fees col15 lected during any fiscal year pursuant to

16 this paragraph shall be deposited and cred17 ited as offsetting collections in accordance

18 with appropriations Acts.

19 ‘‘(D) LAPSE OF APPROPRIATIONS.—If, on

20 the first day of a fiscal year, a regular appro21 priation to the Commission has not been enacted

22 for that fiscal year, the Commission shall con23 tinue to collect fees (as offsetting collections)

24 under this paragraph at the rate in effect during
27

•S 143 RS

1 the preceding fiscal year, until such a regular

2 appropriation is enacted.

3 ‘‘(E) PRO RATA APPLICATION OF RATE.—

4 The rate required by this paragraph shall be ap5 plied pro rata to amounts and balances equal to

6 or less than $1,000,000.’’.

7 (b) SECTION 14.—

8 (1) PRELIMINARY PROXY SOLICITATIONS.—Sec9 tion 14(g)(1) of the Securities Exchange Act of 1934

10 (15 U.S.C. 78n(g)(1)) is amended—

11 (A) in subparagraph (A), by striking ‘‘Com12 mission the following fees’’ and all that follows

13 through the end of the subparagraph and insert14 ing ‘‘Commission—

15 ‘‘(i) for preliminary proxy solicitation

16 material involving an acquisition, merger,

17 or consolidation, if there is a proposed pay18 ment of each or transfer of securities or

19 property to shareholders, a fee equal to—

20 ‘‘(I) $67 for each $1,000,000 of

21 such proposed payment, or of the value

22 of such securities or other property

23 proposed to be transferred, for each of

24 fiscal years 2002 through 2006; and
28

•S 143 RS

1 ‘‘(II) $33 for each $1,000,000 of

2 such proposed payment, or of the value

3 of such securities or other property

4 proposed to be transferred, for fiscal

5 year 2007 and each fiscal year there6 after; and

7 ‘‘(ii) for preliminary proxy solicitation

8 material involving a proposed sale or other

9 disposition of substantially all of the assets

10 of a company, a fee equal to—

11 ‘‘(I) $67 for each $1,000,000 of

12 the cash or of the value of any securi13 ties or other property proposed to be

14 received upon such sale or disposition,

15 for each of fiscal years 2002 through

16 2006; and

17 ‘‘(II) $33 for each $1,000,000 of

18 the cash or of the value of any securi19 ties or other property proposed to be

20 received upon such sale or disposition,

21 for fiscal year 2007 and each fiscal

22 year thereafter.’’;

23 (B) in subparagraph (B), by inserting ‘‘RE24 DUCTION.—’’ before ‘‘The fee’’; and

25 (C) by adding at the end the following:
29

•S 143 RS

1 ‘‘(C) LIMITATION; DEPOSIT OF FEES.—

2 ‘‘(i) LIMITATION.—Except as provided

3 in subparagraph (D), no amounts shall be

4 collected pursuant to this paragraph for

5 any fiscal year, except to the extent pro6 vided in advance in appropriations Acts.

7 ‘‘(ii) DEPOSIT OF FEES.—Fees col8 lected during any fiscal year pursuant to

9 this paragraph shall be deposited and cred10 ited as offsetting collections in accordance

11 with appropriations Acts.

12 ‘‘(D) LAPSE OF APPROPRIATIONS.—If, on

13 the first day of a fiscal year, a regular appro14 priation to the Commission has not been enacted

15 for that fiscal year, the Commission shall con16 tinue to collect fees (as offsetting collections)

17 under this paragraph at the rate in effect during

18 the preceding fiscal year, until such a regular

19 appropriation is enacted.

20 ‘‘(E) PRO RATA APPLICATION OF RATE.—

21 The rate required by this paragraph shall be ap22 plied pro rata to amounts and balances equal to

23 or less than $1,000,000.’’.
30

•S 143 RS

1 (2) OTHER FILINGS.—Section 14(g)(3) of the Se2 curities Exchange Act of 1934 (15 U.S.C. 78n(g)(3))

3 is amended—

4 (A) by striking ‘‘At the time’’ and inserting

5 the following: ‘‘OTHER FILINGS.—

6 ‘‘(A) FEE RATE.—At the time’’;

7 (B) by striking ‘‘the Commission a fee of’’

8 and all that follows through ‘‘The fee’’ and in9 serting the following: ‘‘the Commission a fee

10 equal to—

11 ‘‘(i) $67 for each $1,000,000 of the ag12 gregate amount of cash or of the value of se13 curities or other property proposed to be of14 fered, for each of fiscal years 2002 through

15 2006; and

16 ‘‘(ii) $33 for each $1,000,000 of the ag17 gregate amount of cash or of the value of se18 curities or other property proposed to be of19 fered, for fiscal year 2007 and each fiscal

20 year thereafter.

21 ‘‘(B) REDUCTION.—The fee required under

22 subparagraph (A)’’; and

23 (C) by adding at the end the following:

24 ‘‘(C) LIMITATION; DEPOSIT OF FEES.—
31

•S 143 RS

1 ‘‘(i) LIMITATION.—Except as provided

2 in subparagraph (D), no amounts shall be

3 collected pursuant to this paragraph for

4 any fiscal year, except to the extent pro5 vided in advance in appropriations Acts.

6 ‘‘(ii) DEPOSIT OF FEES.—Fees col7 lected during any fiscal year pursuant to

8 this paragraph shall be deposited and cred9 ited as offsetting collections in accordance

10 with appropriations Acts.

11 ‘‘(D) LAPSE OF APPROPRIATIONS.—If, on

12 the first day of a fiscal year, a regular appro13 priation to the Commission has not been enacted

14 for that fiscal year, the Commission shall con15 tinue to collect fees (as offsetting collections)

16 under this paragraph at the rate in effect during

17 the preceding fiscal year, until such a regular

18 appropriation is enacted.

19 ‘‘(E) PRO RATA APPLICATION OF RATE.—

20 The rate required by this paragraph shall be ap21 plied pro rata to amounts and balances equal to

22 or less than $1,000,000.’’.
32

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1 SEC. 4. REDUCTION IN TRANSACTION FEES; ELIMINATION

2 OF GENERAL REVENUE COMPONENT.

3 Section 31 of the Securities Exchange Act of 1934 (15

4 U.S.C. 78ee) is amended—

5 (1) by striking subsections (b) through (d) and

6 inserting the following:

7 ‘‘(b) TRANSACTION FEES.—

8 ‘‘(1) IN GENERAL.—Each national securities ex9 change and national securities association shall pay

10 to the Commission a fee at a rate equal to the trans11 action offsetting collection rate described in para12 graph (2) of the aggregate dollar amount of sales of

13 securities (other than bonds, debentures, other evi14 dences of indebtedness, and security futures prod15 ucts)—

16 ‘‘(A) transacted on such national securities

17 exchange; and

18 ‘‘(B) transacted by or through any member

19 of such association otherwise than on a national

20 securities exchange of securities that are—

21 ‘‘(i) registered on such an exchange; or

22 ‘‘(ii) subject to prompt last sale report23 ing pursuant to the rules of the Commission

24 or a registered national securities associa25 tion.

26 ‘‘(2) FEE RATE.—
33

•S 143 RS

1 ‘‘(A) TRANSACTION OFFSETTING COLLEC2 TION RATE.—For purposes of this subsection, the

3 ‘transaction offsetting collection rate’ for a fiscal

4 year—

5 ‘‘(i) is the uniform rate required to

6 reach the transaction fee cap for that fiscal

7 year; and

8 ‘‘(ii) shall become effective on the later

9 of the beginning of that fiscal year or 30

10 days after the date of enactment of appro11 priations legislation setting such rate.

12 ‘‘(B) TRANSACTION FEE CAP.—Subject to

13 subparagraph (C), for purposes of this para14 graph, the ‘transaction fee cap’ shall be equal

15 to—

16 ‘‘(i) $915,000,000 for fiscal year 2002;

17 ‘‘(ii) $1,115,000,000 for fiscal year

18 2003;

19 ‘‘(iii) $1,340,000,000 for fiscal year

20 2004;

21 ‘‘(iv) $1,665,000,000 for fiscal year

22 2005;

23 ‘‘(v) $2,010,000,000 for fiscal year

24 2006;
34

•S 143 RS

1 ‘‘(vi) $1,015,000,000 for fiscal year

2 2007;

3 ‘‘(vii) $1,035,000,000 for fiscal year

4 2008;

5 ‘‘(viii) $1,225,000,000 for fiscal year

6 2009;

7 ‘‘(ix) $1,430,000,000 for fiscal year

8 2010; and

9 ‘‘(x) $1,665,000,000 for fiscal year

10 2011 and each fiscal year thereafter.

11 ‘‘(C) REDUCTION.—The amounts specified

12 in clauses (i) through (x) of subparagraph (B)

13 shall be reduced by the amount of assessments es14 timated to be collected by the Commission for the

15 subject fiscal year pursuant to subsection (e).

16 ‘‘(c) LIMITATION; DEPOSIT OF FEES AND ASSESS17 MENTS.—

18 ‘‘(1) LIMITATION.—Except as provided in sub19 section (d), no amount may be collected pursuant to

20 subsection (b) or (e) for any fiscal year, except to the

21 extent provided in advance in appropriations Acts.

22 ‘‘(2) DEPOSIT OF FEES AND ASSESSMENTS.—

23 Fees and assessments collected during any fiscal year

24 pursuant to this section shall be deposited and cred-
35

•S 143 RS

1 ited as offsetting collections in accordance with ap2 propriations Acts.

3 ‘‘(d) LAPSE OF APPROPRIATIONS.—If, on the first day

4 of a fiscal year, a regular appropriation to the Commission

5 has not been enacted for that fiscal year, the Commission

6 shall, until such a regular appropriation is enacted—

7 ‘‘(1) continue to collect fees (as offsetting collec8 tions) under subsection (b) at the rate in effect during

9 the preceding fiscal year (prior to adjustments, if

10 any, under subsections (b) and (c) of section 5 of the

11 Competitive Market Supervision Act of 2001); and

12 ‘‘(2) continue to collect assessments (as offsetting

13 collections) under subsection (e) at the assessment rate

14 in effect during the preceding fiscal year.’’;

15 (2) in subsection (e), by striking ‘‘Assessments

16 collected’’ and all that follows through the period; and

17 (3) in subsection (f), by striking ‘‘(f)’’ and all

18 that follows through ‘‘paid—’’ and inserting the fol19 lowing:

20 ‘‘(f) DATES FOR PAYMENT OF FEES AND ASSESS21 MENTS.—The fees and assessments required by subsections

22 (b) and (e) shall be paid—’’.

23 SEC. 5. ADJUSTMENTS TO FEE RATES.

24 (a) ESTIMATES OF COLLECTIONS.—
36

•S 143 RS

1 (1) FEE PROJECTIONS.—The Securities and Ex2 change Commission (hereafter in this Act referred to

3 as the ‘‘Commission’’) shall, 1 month after submission

4 of its initial report under subsection (e)(1) and on a

5 monthly basis thereafter, project the aggregate amount

6 of fees and assessments from all sources likely to be

7 collected by the Commission during the current fiscal

8 year.

9 (2) SUBMISSION OF INFORMATION.—Each na10 tional securities exchange and national securities as11 sociation shall file with the Commission, not later

12 than 10 days after the end of each month—

13 (A) an estimate of the fee and the assess14 ment required to be paid pursuant to section 31

15 of the Securities Exchange Act of 1934 by such

16 national securities exchange or national securi17 ties association for transactions and sales occur18 ring during that month; and

19 (B) such other information and documents

20 as the Commission may require, as necessary or

21 appropriate to project the aggregate amount of

22 fees and assessments pursuant to paragraph (1).

23 (b) FLOOR FOR TOTAL FEE AND ASSESSMENT COL24 LECTIONS.—If, at any time after the end of the first half

25 of the fiscal year, the Commission projects under subsection
37

•S 143 RS

1 (a) that the aggregate amount of fees and assessments col2 lected by the Commission will, during that fiscal year, fall

3 below an amount equal to the floor for total fee and assess4 ment collections, the Commission may, by order, subject to

5 subsection (e) of this section, increase the fee rate established

6 under section 31(b)(2) of the Securities Exchange Act of

7 1934, to the extent necessary to bring estimated collections

8 to an amount equal to the floor for total fee collections. Such

9 increase shall apply only to transactions and sales occur10 ring on or after the effective date specified in such order

11 through August 31 of that fiscal year. Such increase shall

12 not affect the obligation of each national securities exchange

13 and national securities association to pay to the Commis14 sion the fee required by section 31(b) of the Securities Ex15 change Act of 1934, at the fee rate in effect prior to the

16 effective date of such order for transactions and sales occur17 ring prior to the effective date of such order. In exercising

18 its authority under this subsection, the Commission shall

19 not be required to comply with the provisions of section 553

20 of title 5, United States Code.

21 (c) CAP ON TOTAL FEE AND ASSESSMENT COLLEC22 TIONS.—If, at any time after the end of the first half of

23 the fiscal year, the Commission projects under subsection

24 (a) that the aggregate amount of fees and assessments col25 lected by the Commission will exceed the cap on total fee
38

•S 143 RS

1 and assessment collections by more than 10 percent during

2 any fiscal year, the Commission shall, by order, subject to

3 subsection (e), decrease the fee rate established under para4 graph (2) of section 31(b) of the Securities Exchange Act

5 of 1934, or suspend collection of fees under that section

6 31(b), to the extent necessary to bring estimated collections

7 to an amount that is not more than 110 percent of the cap

8 on total fee collections. Such decrease or suspension shall

9 apply only to transactions and sales occurring on or after

10 the effective date specified in such order through August 31

11 of that fiscal year. Such decrease or suspension shall not

12 affect the obligation of each national securities exchange

13 and national securities association to pay to the Commis14 sion the fee required by section 31(b) of the Securities Ex15 change Act of 1934, at the fee rate in effect prior to the

16 effective date of such order for transactions and sales occur17 ring prior to the effective date of such order. In exercising

18 its authority under this subsection, the Commission shall

19 not be required to comply with the provisions of section 553

20 of title 5, United States Code.

21 (d) DEFINITIONS.—For purposes of this section—

22 (1) the term ‘‘floor for total fee and assessment

23 collections’’ means the greater of—

24 (A) the total amount appropriated to the

25 Commission for fiscal year 2002 (adjusted annu-
39

•S 143 RS

1 ally, based on the annual percentage change, if

2 any, in the Consumer Price Index for all urban

3 consumers, as published by the Department of

4 Labor); or

5 (B) the amount authorized for the Commis6 sion pursuant to section 35 of the Securities Ex7 change Act of 1934 (15 U.S.C. 78kk), if applica8 ble; and

9 (2) the term ‘‘cap on total fee collections’’

10 means—

11 (A) for fiscal years 2002 through 2011, the

12 baseline amount for aggregate offsetting collec13 tions for such fiscal year under section 6(b) of

14 the Securities Act of 1933 and section 31 of the

15 Securities Exchange Act of 1934, as projected for

16 such fiscal year by the Congressional Budget Of17 fice pursuant to section 257 of the Balanced

18 Budget and Emergency Deficit Control Act of

19 1985 in its most recently published report of its

20 baseline projection before the date of enactment

21 of this Act; and

22 (B) for fiscal years 2012 and thereafter, the

23 amount authorized for the Commission pursuant

24 to section 35 of the Securities Exchange Act of

25 1934 (15 U.S.C. 78kk).
40

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1 (e) REPORTS TO CONGRESS; JUDICIAL REVIEW; NO2 TICE.—

3 (1) INITIAL REPORT.—Not later than 90 days

4 after the date of enactment of this Act, the Commis5 sion shall report to the Committee on Banking, Hous6 ing, and Urban Affairs of the Senate and the Com7 mittee on Financial Services of the House of Rep8 resentatives to explain the methodology used by the

9 Commission to make projections under subsection (a).

10 Not later than 30 days after the beginning of each fis11 cal year, the Commission may report to the Com12 mittee on Banking, Housing, and Urban Affairs of

13 the Senate and the Committee on Financial Services

14 of the House of Representatives on revisions to the

15 methodology used by the Commission to make projec16 tions under subsection (a) for such fiscal year and

17 subsequent fiscal years.

18 (2) JUDICIAL REVIEW; REPORTS OF INTENT TO

19 ACT.—The determinations made and the actions

20 taken by the Commission under this subsection shall

21 not be subject to judicial review. Not later than 45

22 days before taking action under subsection (b) or (c),

23 the Commission shall report to the Committee on

24 Banking, Housing, and Urban Affairs of the Senate

25 and the Committee on Financial Services of the
41

•S 143 RS

1 House of Representatives on its intent to take such ac2 tion.

3 (3) NOTICE.—Not later than 30 days before tak4 ing action under subsection (b) or (c), the Commis5 sion shall notify each national securities exchange

6 and national securities association of its intent to

7 take such action.

8 SEC. 6. COMPARABILITY PROVISIONS.

9 (a) SECURITIES AND EXCHANGE COMMISSION EM10 PLOYEES.—

11 (1) IN GENERAL.—Section 4(b) of the Securities

12 Exchange Act of 1934 (15 U.S.C. 78d(b)) is

13 amended—

14 (A) by striking paragraphs (1) and (2) and

15 inserting the following:

16 ‘‘(1) APPOINTMENT AND COMPENSATION.—

17 ‘‘(A) IN GENERAL.—The Commission may

18 appoint and fix the compensation of such offi19 cers, attorneys, economists, examiners, and other

20 employees as may be necessary for carrying out

21 its functions under this Act.

22 ‘‘(B) RATES OF PAY.—Rates of basic pay

23 for all employees of the Commission may be set

24 and adjusted by the Commission without regard
42

•S 143 RS

1 to the provisions of chapter 51 or subchapter III

2 of chapter 53 of title 5, United States Code.

3 ‘‘(C) COMPARABILITY.—The Commission

4 may provide additional compensation and bene5 fits to employees of the Commission if the same

6 type of compensation or benefits are then being

7 provided by any agency referred to under section

8 1206(a) of the Financial Institutions Reform,

9 Recovery, and Enforcement Act of 1989 (12

10 U.S.C. 1833b) or, if not then being provided,

11 could be provided by such an agency under ap12 plicable provisions of law, rule, or regulation. In

13 setting and adjusting the total amount of com14 pensation and benefits for employees, the Com15 mission shall consult with, and seek to maintain

16 comparability with, the agencies referred to

17 under section 1206(a) of the Financial Institu18 tions Reform, Recovery, and Enforcement Act of

19 1989 (12 U.S.C. 1833b).’’; and

20 (B) by redesignating paragraph (3) as

21 paragraph (2).

22 (2) EMPLOYEES REPRESENTED BY LABOR ORGA23 NIZATIONS.—To the extent that any employee of the

24 Commission is represented by a labor organization

25 with exclusive recognition in accordance with chapter
43

•S 143 RS

1 71 of title 5, United States Code, no reduction in base

2 pay of such employee shall be made by reason of en3 actment of this subsection.

4 (b) REPORTING ON INFORMATION BY THE COMMIS5 SION.—Section 1206 of the Financial Institutions Reform,

6 Recovery, and Enforcement Act of 1989 (12 U.S.C. 1833b)

7 is amended—

8 (1) by inserting ‘‘(a) IN GENERAL.—’’ before

9 ‘‘The Federal Deposit’’;

10 (2) by striking ‘‘the Thrift Depositor Protection

11 Oversight Board of the Resolution Trust Corpora12 tion’’; and

13 (3) by adding at the end the following:

14 ‘‘(b) In establishing and adjusting schedules of com15 pensation and benefits for employees of the Securities and

16 Exchange Commission under applicable provisions of law,

17 the Commission shall inform the heads of the agencies re18 ferred to under subsection (a) and Congress of such com19 pensation and benefits and shall seek to maintain com20 parability with such agencies regarding compensation and

21 benefits.’’.

22 (c) TECHNICAL AMENDMENTS.—

23 (1) Section 3132(a)(1) of title 5, United States

24 Code, is amended—
44

•S 143 RS

1 (A) in subparagraph (C), by striking ‘‘or’’

2 after the semicolon;

3 (B) in subparagraph (D), by inserting ‘‘or’’

4 after the semicolon; and

5 (C) by adding at the end the following:

6 ‘‘(E) the Securities and Exchange Commis7 sion.’’.

8 (2) Section 5373(a) of title 5, United States

9 Code, is amended—

10 (A) in paragraph (2), by striking ‘‘or’’ after

11 the semicolon;

12 (B) in paragraph (3), by striking the period

13 and inserting ‘‘; or’’; and

14 (C) by adding at the end the following:

15 ‘‘(4) section 4(b) of the Securities Exchange Act

16 of 1934.’’.

17 SEC. 7. EFFECTIVE DATE.

18 (a) IN GENERAL.—Subject to subsection (b), this Act

19 and the amendments made by this Act shall become effective

20 on October 1, 2001.

21 (b) EXCEPTIONS.—The authorities provided by section

22 13(e)(3)(D), section 14(g)(1)(D), section 14(g)(3)(D), and

23 section 31(d) of the Securities Exchange Act of 1934, as so

24 designated by this Act, shall not apply until October 1,

25 2002.

Calendar No. 20

107TH CONGRESS

1ST SESSION S. 143

[Report No. 107–3]

A BILL

To amend the Securities Act of 1933 and the Securities Exchange Act of 1934, to reduce securities

fees in excess of those required to fund the operations of the Securities and Exchange Commission, to adjust compensation provisions for employees of the Commission, and for other purposes.

MARCH 14, 2001

Reported with an amendment