II

107TH CONGRESS

1ST SESSION S. 143

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, and Mr.

CRAPO) introduced the following bill; which was read twice and referred

to the Committee on Banking, Housing, and Urban Affairs

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.

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’’.
2

•S 143 IS

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

2 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.

3 SEC. 2. REDUCTION IN REGISTRATION FEE RATES; ELIMI4 NATION OF GENERAL REVENUE COMPONENT.

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

6 77f(b)) is amended—

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

8 following:

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

10 filing a registration statement, the applicant shall

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

12 the amount determined under the rate established by

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

14 Federal Register notices of the fee rate applicable

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

16 (2) by striking paragraph (3);

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

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

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

•S 143 IS

1 (A) by striking subparagraph (A) and in2 serting the following:

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

4 subparagraphs (B) and (C), the rate deter5 mined under this paragraph is a rate equal to

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

7 maximum aggregate price at which the securi8 ties are proposed to be offered:

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

10 through 2006.

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

12 each fiscal year thereafter.’’; and

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

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

15 and

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

17 and inserting the following:

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

19 rate required by this subsection shall be applied pro

20 rata to amounts and balances equal to or less than

21 $1,000,000.’’.
4

•S 143 IS

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
5

•S 143 IS

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
6

•S 143 IS

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
7

•S 143 IS

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
8

•S 143 IS

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’’;
9

•S 143 IS

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
10

•S 143 IS

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-
11

•S 143 IS

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
12

•S 143 IS

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.
13

•S 143 IS

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.—
14

•S 143 IS

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-
15

•S 143 IS

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,
16

•S 143 IS

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
17

•S 143 IS

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.—
18

•S 143 IS

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.
19

•S 143 IS

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.
20

•S 143 IS

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-
21

•S 143 IS

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;
22

•S 143 IS

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.

Æ