I
105TH CONGRESS
2D SESSION
H. R. 4120
To amend the Securities Exchange Act of 1934 to provide for an annual
limit on the amount of certain fees which may be collected by the
Securities and Exchange Commission.
IN THE HOUSE OF REPRESENTATIVES
JUNE 23, 1998
Mr. SOLOMON introduced the following bill; which was referred to the
Committee on Commerce
A BILL
To amend the Securities Exchange Act of 1934 to provide
for an annual limit on the amount of certain fees which
may be collected by the Securities and Exchange Com-
mission.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Savings and Invest-
ment Relief Act of 1998’’.
SEC. 2. TRANSACTION FEES.
Section 31 of the Securities Exchange Act of 1934
(15 U.S.C. 78ee) is amended by adding at the end the
following new subsection:
‘‘(h) LIMITATION ON TRANSACTION FEES.—
‘‘(1) EXCHANGE TRADED AND EXCHANGE REG-
ISTERED SECURITIES.—
‘‘(A) IN GENERAL.—The Commission shall
for each fiscal year prescribe a limitation on the
amount of fees described in subsections (b) and
(c) to be paid by each national securities ex-
change and each national securities association,
based on the pro rata share of the aggregate
dollar amount of sales of securities described in
subsections (b) and (c) for the preceding cal-
endar year, such that the total fee payments
will not exceed—
‘‘(i) $150,000,000 during fiscal year
1999;
‘‘(ii) $155,000,000 during fiscal year
2000;
‘‘(iii) $165,000,000 during fiscal year
2001;
‘‘(iv) $170,000,000 during fiscal year
2002;
‘‘(v) $180,000,000 during fiscal year
2003;
‘‘(vi) $190,000,000 during fiscal year
2004;
‘‘(vii) $200,000,000 during fiscal year
2005; and
‘‘(viii) $210,000,000 during fiscal
year 2006 and any succeeding fiscal year.
‘‘(B) 
PUBLICATION.—The 
Commission
shall publish annually in the Federal Register
notice of the fee limitations described in this
paragraph.
‘‘(C) FEE ADJUSTMENTS.—Each national
securities exchange and each national securities
association shall adopt rules to implement the
provisions of this subsection. Such rules shall
provide a reduction from the fee amount other-
wise described in subsections (b) and (c), for all
market participants, including (but not limited
to), individual investors, pension funds, mutual
fund investors, and market professionals.
‘‘(2) OFF-EXCHANGE
TRADES
OF
LAST-SALE-
REPORTED SECURITIES.—
‘‘(A) IN GENERAL.—The Commission shall
for each fiscal year prescribe a limitation on the
amount of fees described in subsection (d) to be
paid by each national securities association,
based on the pro rata share of the aggregate
dollar amount of sales of securities described in
subsection (d) for the preceding calendar year,
such that the total fee payments will not ex-
ceed—
‘‘(i) $120,000,000 during fiscal year
1999;
‘‘(ii) $125,000,000 during fiscal year
2000;
‘‘(iii) $135,000,000 during fiscal year
2001;
‘‘(iv) $140,000,000 during fiscal year
2002;
‘‘(v) $150,000,000 during fiscal year
2003;
‘‘(vi) $160,000,000 during fiscal year
2004;
‘‘(vii) $170,000,000 during fiscal year
2005; and
‘‘(viii) $180,000,000 during fiscal
year 2006 and any succeeding fiscal year.
‘‘(B) 
PUBLICATION.—The 
Commission
shall publish annually in the Federal Register
notice of the fee limitations described in this
paragraph.
‘‘(C) FEE ADJUSTMENTS.—Each national
securities association shall adopt rules to imple-
ment the provisions of this subsection. Such
rules shall provide a reduction from the fee
amount otherwise described in subsection (d),
for all market participants, including, but not
limited to, individual investors, pension funds,
mutual fund investors, and market profes-
sionals.
‘‘(3) REPORT TO CONGRESS.—The Commission
shall annually report to Congress the total amount
of fees collected pursuant to subsection (b), by each
national securities exchange, and the total amount of
fees collected pursuant to subsection (b), by each na-
tional securities association.
‘‘(4) INSUFFICIENT
FEES.—In any year in
which the total amount of fees collected under this
section and section 6(b) of the Securities Act of
1933 (including any balance in the account provid-
ing appropriations to the Commission) are insuffi-
cient to provide for the Commission’s budget author-
ity as provided by an Appropriations Act, such Ap-
propriations Act may provide that the fee limitations
shall be increased by equal amounts under para-
graphs (1) and (2), and all such amounts shall be
deposited and credited as offsetting collections to
the 
account 
providing 
appropriations 
to 
the
Commission.’’.
Æ