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[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 143 Engrossed in Senate (ES)]

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
107th CONGRESS
  1st Session
                                 S. 143

_______________________________________________________________________

                                 AN ACT

 
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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Competitive Market 
Supervision Act of 2001''.
    (b) Table of Contents.--The table of contents for 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. Study of the effect of fee reductions.
Sec. 8. Effective date.

SEC. 2. REDUCTION IN REGISTRATION FEE RATES; ELIMINATION OF GENERAL 
              REVENUE COMPONENT.

    (a) Securities Act of 1933.--Section 6(b) of the Securities Act of 
1933 (15 U.S.C. 77f(b)) is amended--
            (1) by striking paragraph (2) and inserting the following:
            ``(2) Fee payment required.--At the time of filing a 
        registration statement, the applicant shall pay to the 
        Commission a fee that shall be equal to the amount determined 
        under the rate established by paragraph (3). The Commission 
        shall publish in the Federal Register notices of the fee rate 
        applicable under this section for each fiscal year.'';
            (2) by striking paragraph (3);
            (3) by redesignating paragraphs (4) and (5) as paragraphs 
        (3) and (4), respectively;
            (4) in paragraph (3), as redesignated--
                    (A) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) In general.--Except as provided in 
                subparagraphs (B) and (C), the rate determined under 
                this paragraph is a rate equal to the following amount 
                per $1,000,000 of the maximum aggregate price at which 
                the securities are proposed to be offered:
                            ``(i) $67 for each of fiscal years 2002 
                        through 2006.
                            ``(ii) $33 for fiscal year 2007 and each 
                        fiscal year thereafter.''; and
                    (B) in subparagraph (B), by striking ``this 
                paragraph (4)'' and inserting ``this paragraph''; and
            (5) by striking paragraph (4), as redesignated, and 
        inserting the following:
            ``(4) Pro rata application of rate.--The rate required by 
        this subsection shall be applied pro rata to amounts and 
        balances equal to or less than $1,000,000.''.
    (b) Trust Indenture Act of 1939.--Section 307(b) of the Trust 
Indenture Act of 1939 (15 U.S.C. 77ggg(b)) is amended by striking ``, 
but, in the case of'' and all that follows through the end of the 
subsection and inserting a period.

SEC. 3. REDUCTION IN MERGER AND TENDER FEE RATES; RECLASSIFICATION AS 
              OFFSETTING COLLECTIONS.

    (a) Section 13.--Section 13(e)(3) of the Securities Exchange Act of 
1934 (15 U.S.C. 78m(e)(3)) is amended to read as follows:
            ``(3) Fees.--
                    ``(A) In general.--At the time of the filing of any 
                statement that the Commission may require by rule 
                pursuant to paragraph (1), the person making the filing 
                shall pay to the Commission a fee equal to--
                            ``(i) $67 for each $1,000,000 of the value 
                        of the securities proposed to be purchased, for 
                        each of fiscal years 2002 through 2006; and
                            ``(ii) $33 for each $1,000,000 of the value 
                        of securities proposed to be purchased, for 
                        fiscal year 2007 and each fiscal year 
                        thereafter.
                    ``(B) Reduction.--The fee required by this 
                paragraph shall be reduced with respect to securities 
                in an amount equal to any fee paid with respect to any 
                securities issued in connection with the proposed 
                transaction under section 6(b) of the Securities Act of 
                1933, or the fee paid under that section shall be 
                reduced in an amount equal to the fee paid to the 
                Commission in connection with such transaction under 
                this paragraph.
                    ``(C) Limitation; deposit of fees.--
                            ``(i) Limitation.--Except as provided in 
                        subparagraph (D), no amounts shall be collected 
                        pursuant to this paragraph for any fiscal year, 
                        except to the extent provided in advance in 
                        appropriations Acts.
                            ``(ii) Deposit of fees.--Fees collected 
                        during any fiscal year pursuant to this 
                        paragraph shall be deposited and credited as 
                        offsetting collections in accordance with 
                        appropriations Acts.
                    ``(D) Lapse of appropriations.--If, on the first 
                day of a fiscal year, a regular appropriation to the 
                Commission has not been enacted for that fiscal year, 
                the Commission shall continue to collect fees (as 
                offsetting collections) under this paragraph at the 
                rate in effect during the preceding fiscal year, until 
                such a regular appropriation is enacted.
                    ``(E) Pro rata application of rate.--The rate 
                required by this paragraph shall be applied pro rata to 
                amounts and balances equal to or less than 
                $1,000,000.''.
    (b) Section 14.--
            (1) Preliminary proxy solicitations.--Section 14(g)(1) of 
        the Securities Exchange Act of 1934 (15 U.S.C. 78n(g)(1)) is 
        amended--
                    (A) in subparagraph (A), by striking ``Commission 
                the following fees'' and all that follows through the 
                end of the subparagraph and inserting ``Commission--
                            ``(i) for preliminary proxy solicitation 
                        material involving an acquisition, merger, or 
                        consolidation, if there is a proposed payment 
                        of each or transfer of securities or property 
                        to shareholders, a fee equal to--
                                    ``(I) $67 for each $1,000,000 of 
                                such proposed payment, or of the value 
                                of such securities or other property 
                                proposed to be transferred, for each of 
                                fiscal years 2002 through 2006; and
                                    ``(II) $33 for each $1,000,000 of 
                                such proposed payment, or of the value 
                                of such securities or other property 
                                proposed to be transferred, for fiscal 
                                year 2007 and each fiscal year 
                                thereafter; and
                            ``(ii) for preliminary proxy solicitation 
                        material involving a proposed sale or other 
                        disposition of substantially all of the assets 
                        of a company, a fee equal to--
                                    ``(I) $67 for each $1,000,000 of 
                                the cash or of the value of any 
                                securities or other property proposed 
                                to be received upon such sale or 
                                disposition, for each of fiscal years 
                                2002 through 2006; and
                                    ``(II) $33 for each $1,000,000 of 
                                the cash or of the value of any 
                                securities or other property proposed 
                                to be received upon such sale or 
                                disposition, for fiscal year 2007 and 
                                each fiscal year thereafter.'';
                    (B) in subparagraph (B), by inserting 
                ``Reduction.--'' before ``The fee''; and
                    (C) by adding at the end the following:
                    ``(C) Limitation; deposit of fees.--
                            ``(i) Limitation.--Except as provided in 
                        subparagraph (D), no amounts shall be collected 
                        pursuant to this paragraph for any fiscal year, 
                        except to the extent provided in advance in 
                        appropriations Acts.
                            ``(ii) Deposit of fees.--Fees collected 
                        during any fiscal year pursuant to this 
                        paragraph shall be deposited and credited as 
                        offsetting collections in accordance with 
                        appropriations Acts.
                    ``(D) Lapse of appropriations.--If, on the first 
                day of a fiscal year, a regular appropriation to the 
                Commission has not been enacted for that fiscal year, 
                the Commission shall continue to collect fees (as 
                offsetting collections) under this paragraph at the 
                rate in effect during the preceding fiscal year, until 
                such a regular appropriation is enacted.
                    ``(E) Pro rata application of rate.--The rate 
                required by this paragraph shall be applied pro rata to 
                amounts and balances equal to or less than 
                $1,000,000.''.
            (2) Other filings.--Section 14(g)(3) of the Securities 
        Exchange Act of 1934 (15 U.S.C. 78n(g)(3)) is amended--
                    (A) by striking ``At the time'' and inserting the 
                following: ``Other filings.--
                    ``(A) Fee rate.--At the time'';
                    (B) by striking ``the Commission a fee of'' and all 
                that follows through ``The fee'' and inserting the 
                following: ``the Commission a fee equal to--
                            ``(i) $67 for each $1,000,000 of the 
                        aggregate amount of cash or of the value of 
                        securities or other property proposed to be 
                        offered, for each of fiscal years 2002 through 
                        2006; and
                            ``(ii) $33 for each $1,000,000 of the 
                        aggregate amount of cash or of the value of 
                        securities or other property proposed to be 
                        offered, for fiscal year 2007 and each fiscal 
                        year thereafter.
                    ``(B) Reduction.--The fee required under 
                subparagraph (A)''; and
                    (C) by adding at the end the following:
                    ``(C) Limitation; deposit of fees.--
                            ``(i) Limitation.--Except as provided in 
                        subparagraph (D), no amounts shall be collected 
                        pursuant to this paragraph for any fiscal year, 
                        except to the extent provided in advance in 
                        appropriations Acts.
                            ``(ii) Deposit of fees.--Fees collected 
                        during any fiscal year pursuant to this 
                        paragraph shall be deposited and credited as 
                        offsetting collections in accordance with 
                        appropriations Acts.
                    ``(D) Lapse of appropriations.--If, on the first 
                day of a fiscal year, a regular appropriation to the 
                Commission has not been enacted for that fiscal year, 
                the Commission shall continue to collect fees (as 
                offsetting collections) under this paragraph at the 
                rate in effect during the preceding fiscal year, until 
                such a regular appropriation is enacted.
                    ``(E) Pro rata application of rate.--The rate 
                required by this paragraph shall be applied pro rata to 
                amounts and balances equal to or less than 
                $1,000,000.''.

SEC. 4. REDUCTION IN TRANSACTION FEES; ELIMINATION OF GENERAL REVENUE 
              COMPONENT.

    Section 31 of the Securities Exchange Act of 1934 (15 U.S.C. 78ee) 
is amended--
            (1) by striking subsections (b) through (d) and inserting 
        the following:
    ``(b) Transaction Fees.--
            ``(1) In general.--Each national securities exchange and 
        national securities association shall pay to the Commission a 
        fee at a rate equal to the transaction offsetting collection 
        rate described in paragraph (2) of the aggregate dollar amount 
        of sales of securities (other than bonds, debentures, other 
        evidences of indebtedness, and security futures products)--
                    ``(A) transacted on such national securities 
                exchange; and
                    ``(B) transacted by or through any member of such 
                association otherwise than on a national securities 
                exchange of securities that are--
                            ``(i) registered on such an exchange; or
                            ``(ii) subject to prompt last sale 
                        reporting pursuant to the rules of the 
                        Commission or a registered national securities 
                        association.
            ``(2) Fee rate.--
                    ``(A) Transaction offsetting collection rate.--For 
                purposes of this subsection, the `transaction 
                offsetting collection rate' for a fiscal year--
                            ``(i) is the uniform rate required to reach 
                        the transaction fee cap for that fiscal year; 
                        and
                            ``(ii) shall become effective on the later 
                        of the beginning of that fiscal year or 30 days 
                        after the date of enactment of appropriations 
                        legislation setting such rate.
                    ``(B) Transaction fee cap.--Subject to subparagraph 
                (C), for purposes of this paragraph, the `transaction 
                fee cap' shall be equal to--
                            ``(i) $915,000,000 for fiscal year 2002;
                            ``(ii) $1,115,000,000 for fiscal year 2003;
                            ``(iii) $1,340,000,000 for fiscal year 
                        2004;
                            ``(iv) $1,665,000,000 for fiscal year 2005;
                            ``(v) $2,010,000,000 for fiscal year 2006;
                            ``(vi) $1,015,000,000 for fiscal year 2007;
                            ``(vii) $1,035,000,000 for fiscal year 
                        2008;
                            ``(viii) $1,225,000,000 for fiscal year 
                        2009;
                            ``(ix) $1,430,000,000 for fiscal year 2010; 
                        and
                            ``(x) $1,665,000,000 for fiscal year 2011 
                        and each fiscal year thereafter.
                    ``(C) Reduction.--The amounts specified in clauses 
                (i) through (x) of subparagraph (B) shall be reduced by 
                the amount of assessments estimated to be collected by 
                the Commission for the subject fiscal year pursuant to 
                subsection (e).
    ``(c) Limitation; Deposit of Fees and Assessments.--
            ``(1) Limitation.--Except as provided in subsection (d), no 
        amount may be collected pursuant to subsection (b) or (e) for 
        any fiscal year, except to the extent provided in advance in 
        appropriations Acts.
            ``(2) Deposit of fees and assessments.--Fees and 
        assessments collected during any fiscal year pursuant to this 
        section shall be deposited and credited as offsetting 
        collections in accordance with appropriations Acts.
    ``(d) Lapse of Appropriations.--If, on the first day of a fiscal 
year, a regular appropriation to the Commission has not been enacted 
for that fiscal year, the Commission shall, until such a regular 
appropriation is enacted--
            ``(1) continue to collect fees (as offsetting collections) 
        under subsection (b) at the rate in effect during the preceding 
        fiscal year (prior to adjustments, if any, under subsections 
        (b) and (c) of section 5 of the Competitive Market Supervision 
        Act of 2001); and
            ``(2) continue to collect assessments (as offsetting 
        collections) under subsection (e) at the assessment rate in 
        effect during the preceding fiscal year.'';
            (2) in subsection (e), by striking ``Assessments 
        collected'' and all that follows through the period; and
            (3) in subsection (f), by striking ``(f)'' and all that 
        follows through ``paid--'' and inserting the following:
    ``(f) Dates for Payment of Fees and Assessments.--The fees and 
assessments required by subsections (b) and (e) shall be paid--''.

SEC. 5. ADJUSTMENTS TO FEE RATES.

    (a) Estimates of Collections.--
            (1) Fee projections.--The Securities and Exchange 
        Commission (hereafter in this Act referred to as the 
        ``Commission'') shall, 1 month after submission of its initial 
        report under subsection (e)(1) and on a monthly basis 
        thereafter, project the aggregate amount of fees and 
        assessments from all sources likely to be collected by the 
        Commission during the current fiscal year.
            (2) Submission of information.--Each national securities 
        exchange and national securities association shall file with 
        the Commission, not later than 10 days after the end of each 
        month--
                    (A) an estimate of the fee and the assessment 
                required to be paid pursuant to section 31 of the 
                Securities Exchange Act of 1934 by such national 
                securities exchange or national securities association 
                for transactions and sales occurring during that month; 
                and
                    (B) such other information and documents as the 
                Commission may require, as necessary or appropriate to 
                project the aggregate amount of fees and assessments 
                pursuant to paragraph (1).
    (b) Floor for Total Fee and Assessment Collections.--If, at any 
time after the end of the first half of the fiscal year, the Commission 
projects under subsection (a) that the aggregate amount of fees and 
assessments collected by the Commission will, during that fiscal year, 
fall below an amount equal to the floor for total fee and assessment 
collections, the Commission may, by order, subject to subsection (e) of 
this section, increase the fee rate established under section 31(b)(2) 
of the Securities Exchange Act of 1934, to the extent necessary to 
bring estimated collections to an amount equal to the floor for total 
fee collections. Such increase shall apply only to transactions and 
sales occurring on or after the effective date specified in such order 
through August 31 of that fiscal year. Such increase shall not affect 
the obligation of each national securities exchange and national 
securities association to pay to the Commission the fee required by 
section 31(b) of the Securities Exchange Act of 1934, at the fee rate 
in effect prior to the effective date of such order for transactions 
and sales occurring prior to the effective date of such order. In 
exercising its authority under this subsection, the Commission shall 
not be required to comply with the provisions of section 553 of title 
5, United States Code.
    (c) Cap on Total Fee and Assessment Collections.--If, at any time 
after the end of the first half of the fiscal year, the Commission 
projects under subsection (a) that the aggregate amount of fees and 
assessments collected by the Commission will exceed the cap on total 
fee and assessment collections by more than 10 percent during any 
fiscal year, the Commission shall, by order, subject to subsection (e), 
decrease the fee rate established under paragraph (2) of section 31(b) 
of the Securities Exchange Act of 1934, or suspend collection of fees 
under that section 31(b), to the extent necessary to bring estimated 
collections to an amount that is not more than 110 percent of the cap 
on total fee collections. Such decrease or suspension shall apply only 
to transactions and sales occurring on or after the effective date 
specified in such order through August 31 of that fiscal year. Such 
decrease or suspension shall not affect the obligation of each national 
securities exchange and national securities association to pay to the 
Commission the fee required by section 31(b) of the Securities Exchange 
Act of 1934, at the fee rate in effect prior to the effective date of 
such order for transactions and sales occurring prior to the effective 
date of such order. In exercising its authority under this subsection, 
the Commission shall not be required to comply with the provisions of 
section 553 of title 5, United States Code.
    (d) Definitions.--For purposes of this section--
            (1) the term ``floor for total fee and assessment 
        collections'' means the greater of--
                    (A) the total amount appropriated to the Commission 
                for fiscal year 2002 (adjusted annually, based on the 
                annual percentage change, if any, in the Consumer Price 
                Index for all urban consumers, as published by the 
                Department of Labor); or
                    (B) the amount authorized for the Commission 
                pursuant to section 35 of the Securities Exchange Act 
                of 1934 (15 U.S.C. 78kk), if applicable; and
            (2) the term ``cap on total fee collections'' means--
                    (A) for fiscal years 2002 through 2011, the 
                baseline amount for aggregate offsetting collections 
                for such fiscal year under section 6(b) of the 
                Securities Act of 1933 and section 31 of the Securities 
                Exchange Act of 1934, as projected for such fiscal year 
                by the Congressional Budget Office pursuant to section 
                257 of the Balanced Budget and Emergency Deficit 
                Control Act of 1985 in its most recently published 
                report of its baseline projection before the date of 
                enactment of this Act; and
                    (B) for fiscal years 2012 and thereafter, the 
                amount authorized for the Commission pursuant to 
                section 35 of the Securities Exchange Act of 1934 (15 
                U.S.C. 78kk).
    (e) Reports to Congress; Judicial Review; Notice.--
            (1) Initial report.--Not later than 90 days after the date 
        of enactment of this Act, the Commission shall report to the 
        Committee on Banking, Housing, and Urban Affairs of the Senate 
        and the Committee on Financial Services of the House of 
        Representatives to explain the methodology used by the 
        Commission to make projections under subsection (a). Not later 
        than 30 days after the beginning of each fiscal year, the 
        Commission may report to the Committee on Banking, Housing, and 
        Urban Affairs of the Senate and the Committee on Financial 
        Services of the House of Representatives on revisions to the 
        methodology used by the Commission to make projections under 
        subsection (a) for such fiscal year and subsequent fiscal 
        years.
            (2) Judicial review; reports of intent to act.--The 
        determinations made and the actions taken by the Commission 
        under this subsection shall not be subject to judicial review. 
        Not later than 45 days before taking action under subsection 
        (b) or (c), the Commission shall report to the Committee on 
        Banking, Housing, and Urban Affairs of the Senate and the 
        Committee on Financial Services of the House of Representatives 
        on its intent to take such action.
            (3) Notice.--Not later than 30 days before taking action 
        under subsection (b) or (c), the Commission shall notify each 
        national securities exchange and national securities 
        association of its intent to take such action.

SEC. 6. COMPARABILITY PROVISIONS.

    (a) Commission Demonstration Project.--Subpart C of part III of 
title 5, United States Code, is amended by adding at the end the 
following:

          ``CHAPTER 48--AGENCY PERSONNEL DEMONSTRATION PROJECT

``Sec.
``4801. Nonapplicability of chapter 47.
``4802. Securities and Exchange Commission.
``Sec. 4801. Nonapplicability of chapter 47.
    ``Chapter 47 shall not apply to this chapter.
``Sec. 4802. Securities and Exchange Commission
    ``(a) In this section, the term `Commission' means the Securities 
and Exchange Commission.
    ``(b) The Commission may appoint and fix the compensation of such 
officers, attorneys, economists, examiners, and other employees as may 
be necessary for carrying out its functions under the securities laws 
as defined under section 3 of the Securities Exchange Act of 1934 (15 
U.S.C. 78c).
    ``(c) Rates of basic pay for all employees of the Commission may be 
set and adjusted by the Commission without regard to the provisions of 
chapter 51 or subchapter III of chapter 53.
    ``(d) The Commission may provide additional compensation and 
benefits to employees of the Commission if the same type of 
compensation or benefits are then being provided by any agency referred 
to under section 1206 of the Financial Institutions Reform, Recovery, 
and Enforcement Act of 1989 (12 U.S.C. 1833b) or, if not then being 
provided, could be provided by such an agency under applicable 
provisions of law, rule, or regulation. In setting and adjusting the 
total amount of compensation and benefits for employees, the Commission 
shall consult with, and seek to maintain comparability with, the 
agencies referred to under section 1206 of the Financial Institutions 
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1833b).
    ``(e) The Commission shall consult with the Office of Personnel 
Management in the implementation of this section.
    ``(f) This section shall be administered consistent with merit 
system principles.''.
    (b) Employees Represented by Labor Organizations.--To the extent 
that any employee of the Securities and Exchange Commission is 
represented by a labor organization with exclusive recognition in 
accordance with chapter 71 of title 5, United States Code, no reduction 
in base pay of such employee shall be made by reason of enactment of 
this section (including the amendments made by this section).
    (c) Implementation Plan and Report.--
            (1) Implementation plan.--
                    (A) In general.--The Securities and Exchange 
                Commission shall develop a plan to implement section 
                4802 of title 5, United States Code, as added by this 
                section.
                    (B) Inclusion in annual performance plan and 
                report.--The Securities and Exchange Commission shall 
                include--
                            (i) the plan developed under this paragraph 
                        in the annual program performance plan 
                        submitted under section 1115 of title 31, 
                        United States Code; and
                            (ii) the effects of implementing the plan 
                        developed under this paragraph in the annual 
                        program performance report submitted under 
                        section 1116 of title 31, United States Code.
            (2) Implementation report.--
                    (A) In general.--Before implementing the plan 
                developed under paragraph (1), the Securities and 
                Exchange Commission shall submit a report to the 
                Committee on Governmental Affairs and the Committee on 
                Banking, Housing, and Urban Affairs of the Senate, the 
                Committee on Government Reform and the Committee on 
                Financial Services of the House of Representatives, and 
                the Office of Personnel Management on the details of 
                the plan.
                    (B) Content.--The report under this paragraph shall 
                include--
                            (i) evidence and supporting documentation 
                        justifying the plan; and
                            (ii) budgeting projections on costs and 
                        benefits resulting from the plan.
    (d) Technical and Conforming Amendments.--
            (1) Amendments to title 5, united states code.--
                    (A) The table of chapters for part III of title 5, 
                United States Code, is amended by adding at the end of 
                subpart C the following:

``48. Agency Personnel Demonstration Project...............    4801.''.
                    (B) Section 3132(a)(1) of title 5, United States 
                Code, is amended--
                            (i) in subparagraph (C), by striking ``or'' 
                        after the semicolon;
                            (ii) in subparagraph (D), by inserting 
                        ``or'' after the semicolon; and
                            (iii) by adding at the end the following:
                    ``(E) the Securities and Exchange Commission;''.
                    (C) Section 5373(a) of title 5, United States Code, 
                is amended--
                            (i) in paragraph (2), by striking ``or'' 
                        after the semicolon;
                            (ii) in paragraph (3), by striking the 
                        period and inserting ``; or''; and
                            (iii) by adding at the end the following:
            ``(4) section 4802.''.
            (2) Amendment to securities and exchange act of 1934.--
        Section 4(b) of the Securities Exchange Act of 1934 (15 U.S.C. 
        78d(b)) is amended by striking paragraphs (1) and (2) and 
        inserting the following:
            ``(1) Appointment and compensation.--The Commission shall 
        appoint and compensate officers, attorneys, economists, 
        examiners, and other employees in accordance with section 4802 
        of title 5, United States Code.
            ``(2) Reporting of information.--In establishing and 
        adjusting schedules of compensation and benefits for officers, 
        attorneys, economists, examiners, and other employees of the 
        Commission under applicable provisions of law, the Commission 
        shall inform the heads of the agencies referred to under 
        section 1206 of the Financial Institutions Reform, Recovery, 
        and Enforcement Act of 1989 (12 U.S.C. 1833b) and Congress of 
        such compensation and benefits and shall seek to maintain 
        comparability with such agencies regarding compensation and 
        benefits.''.
            (3) Amendment to firrea of 1989.--Section 1206 of the 
        Financial Institutions Reform, Recovery, and Enforcement Act of 
        1989 (12 U.S.C. 1833b) is amended by striking ``the Thrift 
        Depositor Protection Oversight Board of the Resolution Trust 
        Corporation''.

SEC. 7. STUDY OF THE EFFECT OF FEE REDUCTIONS.

    (a) Study.--The Office of Economic Analysis of the Securities and 
Exchange Commission (hereinafter referred to as the ``Office'') shall 
conduct a study of the extent to which the benefits of reductions in 
fees effected as a result of this Act are passed on to investors.
    (b) Factors for Consideration.--In conducting the study under 
subsection (a), the Office shall--
            (1) consider all of the various elements of the securities 
        industry directly and indirectly benefitting from the fee 
        reductions, including purchasers and sellers of securities, 
        members of national securities exchanges, issuers, broker-
        dealers, underwriters, participants in investment companies, 
        retirement programs, and others;
            (2) evaluate the impact on different types of investors, 
        such as individual equity holders, individual investment 
        company shareholders, businesses, and other types of investors;
            (3) include in the interpretation of the term ``investor'' 
        shareholders of entities subject to the fee reductions; and
            (4) consider the economic benefits to investors flowing 
        from the fee reductions to include such factors as market 
        efficiency, expansion of investment opportunities, and enhanced 
        liquidity and capital formation.
    (c) Report to Congress.--Not later than 2 years after the date of 
enactment of this Act, the Securities and Exchange Commission shall 
submit to the Congress the report prepared by the Office on the results 
of the study conducted under subsection (a).

SEC. 8. EFFECTIVE DATE.

    (a) In General.--Subject to subsection (b), this Act and the 
amendments made by this Act shall become effective on October 1, 2001.
    (b) Exceptions.--The authorities provided by section 13(e)(3)(D), 
section 14(g)(1)(D), section 14(g)(3)(D), and section 31(d) of the 
Securities Exchange Act of 1934, as so designated by this Act, shall 
not apply until October 1, 2002.

            Passed the Senate March 22, 2001.

            Attest:

                                                             Secretary.
107th CONGRESS

  1st Session

                                 S. 143

_______________________________________________________________________

                                 AN ACT

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.

S 143 ES----2
S 143 ES----3
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S 143 ES----5
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