IB
Union Calendar No. 42
107TH CONGRESS
1ST SESSION
H. R. 1088
[Report No. 107–52 Part I]
To amend the Securities Exchange Act of 1934 to reduce fees collected
by the Securities and Exchange Commission, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 19, 2001
Mr. FOSSELLA (for himself, Mr. OXLEY, Mr. BAKER, Mrs. KELLY, Mrs.
MALONEY of New York, Mr. MENENDEZ, Mr. REYNOLDS, Mr. ROYCE,
Mr. KING, Mr. OSE, Mrs. ROUKEMA, Mr. FOLEY, Mr. TOOMEY, Mr.
GILLMOR, Mr. GARY MILLER of California, Mr. ROGERS of Michigan, Mr.
SHADEGG, Mr. GRUCCI, Mr. WELDON of Florida, Mr. SHAYS, Mr. MAN-
ZULLO, Mr. ACKERMAN, Mr. CROWLEY, Mr. FORD, Mr. MOORE, Mr.
BLAGOJEVICH, Mr. ISRAEL, Mr. BENTSEN, Mr. BACHUS, Ms. HART, Mr.
JONES of North Carolina, Mr. NEY, Mr. SWEENEY, Mr. ROSS, Ms.
VELA´ZQUEZ, and Mr. ENGEL) introduced the following bill; which was re-
ferred to the Committee on Financial Services
MAY 1, 2001
Reported with an amendment and referred to the Committee on Government
Reform for a period ending not later than May 2, 2001, for consideration
of such provisions of the bill and amendment as fall within the jurisdic-
tion of that committee pursuant to clause 1(h), rule X
[Strike out all after the enacting clause and insert the part printed in italic]
MAY 12, 2001
Referral to the Committee on Government Reform extended for a period
ending not later than May 8, 2001
MAY 8, 2001
Referral to the Committee on Government Reform extended for a period
ending not later than May 9, 2001
MAY 9, 2001
Referral to the Committee on Government Reform extended for a period
ending not later than May 10, 2001
MAY 10, 2001
Referral to the Committee on Government Reform extended for a period
ending not later than May 18, 2001
MAY 18, 2001
Referral to the Committee on Government Reform extended for a period
ending not later than May 25, 2001
MAY 25, 2001
Additional sponsors: Mr. RYUN of Kansas, Mr. FERGUSON, Mr. SHERMAN,
Mr. GONZALEZ, Mr. MALONEY of Connecticut, Mr. GREEN of Wisconsin,
Mr. FRELINGHUYSEN, Mr. MATSUI, Mr. LATOURETTE, and Mr. OTTER
MAY 25, 2001
The Committee on Government Reform discharged; referred to the Committee
of the Whole House on the State of the Union and ordered to be printed
[For text of introduced bill, see copy of bill as introduced on March 19, 2001]
A BILL
To amend the Securities Exchange Act of 1934 to reduce
fees collected by the Securities and Exchange Commis-
sion, and for other purposes.
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 ‘‘Investor and Capital
Markets Fee Relief Act’’.
SEC. 2. IMMEDIATE TRANSACTION FEE REDUCTIONS.
Section 31 of the Securities Exchange Act of 1934 (15
U.S.C. 78ee) is amended—
(1) by striking ‘‘1⁄300 of one percent’’ each place
it appears in subsections (b) and (d) and inserting
‘‘$12 per $1,000,000’’;
(2) in the first sentence of subsection (b), by
striking ‘‘, except that’’ and all that follows through
the end of such sentence and inserting a period;
(3) in paragraph (1) of subsection (d), by strik-
ing ‘‘, except that’’ and all that follows through the
end of such paragraph and inserting a period;
(4) in subsection (e), by striking ‘‘$0.02’’ and in-
serting ‘‘$0.0072’’; and
(5) by adding at the end the following new sub-
section:
‘‘(i) 
PRO
RATA
APPLICATION.—The 
rates 
per
$1,000,000 required by this section shall be applied pro rata
to amounts and balances equal to less than $1,000,000.’’.
SEC. 3. REVISION OF SECURITIES TRANSACTION FEE PRO-
VISIONS; ADDITIONAL FEE REDUCTIONS.
(a) POOLING AND ALLOCATION OF COLLECTIONS.—
Section 31 of the Securities Exchange Act of 1934 (15
U.S.C. 78ee) is further amended—
(1) in subsection (b)—
(A) by striking ‘‘Every’’ and inserting
‘‘Subject to subsection (j), each’’; and
(B) by striking the last sentence;
(2) by striking subsection (c);
(3) in subsection (d)—
(A) by striking paragraphs (2) and (3);
(B) by striking the following:
‘‘(d) OFF-EXCHANGE
TRADES
OF
LAST-SALE-RE-
PORTED SECURITIES.—
‘‘(1) COVERED
TRANSACTIONS.—Each national
securities’’
and inserting the following:
‘‘(c) OFF-EXCHANGE TRADES
OF EXCHANGE REG-
ISTERED AND LAST-SALE-REPORTED SECURITIES.—Sub-
ject to subsection (j), each national securities’’;
(C) by inserting ‘‘registered on a national
securities exchange or’’ after ‘‘security futures
products)’’; and
(D) by striking ‘‘, excluding any sales for
which a fee is paid under subsection (c)’’;
(4) in subsection (e), by striking ‘‘except that for
fiscal year 2007’’ and all that follows through the end
of such subsection and inserting the following: ‘‘except
that for fiscal year 2007 and each succeeding fiscal
year such assessment shall be equal to $0.0042 for
each such transaction.’’;
(5) in subsection (f), by striking ‘‘DATES FOR
PAYMENT OF FEES.—The fees required’’ and inserting
‘‘DATES FOR PAYMENTS.—The fees and assessments
required’’;
(6) by redesignating subsections (e) through (i)
(as added by section 2(5)) as subsections (d) through
(h), respectively;
(7) by adding at the end the following new sub-
section:
‘‘(i) DEPOSIT OF FEES.—
‘‘(1) OFFSETTING COLLECTIONS.—Fees collected
pursuant to subsections (b), (c), and (d) for any fiscal
year—
‘‘(A) shall be deposited and credited as off-
setting collections to the account providing ap-
propriations to the Commission; and
‘‘(B) except as provided in subsection (k),
shall not be collected for any fiscal year except
to the extent provided in advance in appropria-
tion Acts.
‘‘(2) GENERAL REVENUES PROHIBITED.—No fees
collected pursuant to subsections (b), (c), and (d) for
fiscal year 2002 or any succeeding fiscal year shall be
deposited and credited as general revenue of the
Treasury.’’.
(b) ADDITIONAL REDUCTIONS OF FEES.—
(1) AMENDMENT.—Section 31 of the Securities
Exchange Act of 1934 (15 U.S.C. 78ee) is further
amended by adding after subsection (i) (as added by
subsection (a)(7)) the following new subsections:
‘‘(j) RECAPTURE
OF PROJECTION WINDFALLS
FOR
FURTHER RATE REDUCTIONS.—
‘‘(1) ANNUAL ADJUSTMENT.—For each of the fis-
cal years 2003 through 2011, the Commission shall by
order adjust each of the rates applicable under sub-
sections (b) and (c) for such fiscal year to a uniform
adjusted rate that, when applied to the baseline esti-
mate of the aggregate dollar amount of sales for such
fiscal year, is reasonably likely to produce aggregate
fee collections under this section (including assess-
ments collected under subsection (d)) that are equal to
the target offsetting collection amount for such fiscal
year.
‘‘(2) FINAL RATE ADJUSTMENT.—For fiscal year
2012 and all of the succeeding fiscal years, the Com-
mission shall by order adjust each of the rates appli-
cable under subsections (b) and (c) for all of such fis-
cal years to a uniform adjusted rate that, when ap-
plied to the baseline estimate of the aggregate dollar
amount of sales for fiscal year 2012, is reasonably
likely to produce aggregate fee collections under this
section in fiscal year 2012 (including assessments col-
lected under subsection (d)) equal to the target offset-
ting collection amount for fiscal year 2011.
‘‘(3) REVIEW
AND
EFFECTIVE
DATE.—An ad-
justed rate prescribed under paragraph (1) or (2) and
published under subsection (g) shall not be subject to
judicial review. Subject to subsections (i)(1)(B) and
(k)—
‘‘(A) an adjusted rate prescribed under
paragraph (1) shall take effect on the later of—
‘‘(i) the first day of the fiscal year to
which such rate applies; or
‘‘(ii) 30 days after the date on which
a regular appropriation to the Commission
for such fiscal year is enacted; and
‘‘(B) an adjusted rate prescribed under
paragraph (2) shall take effect on the later of—
‘‘(i) the first day of fiscal year 2012;
or
‘‘(ii) 30 days after the date on which
a regular appropriation to the Commission
for fiscal year 2012 is enacted.
‘‘(k) LAPSE OF APPROPRIATION.—If on the first day
of a fiscal year a regular appropriation to the Commission
has not been enacted, the Commission shall continue to col-
lect (as offsetting collections) the fees and assessments under
subsections (b), (c), and (d) at the rate in effect during the
preceding fiscal year, until 30 days after the date such a
regular appropriation is enacted.
‘‘(l) DEFINITIONS.—For purposes of this section:
‘‘(1) 
TARGET
OFFSETTING
COLLECTION
AMOUNT.—The target offsetting collection amount for
each of the fiscal years 2002 through 2011 is deter-
mined according to the following table:
Target offsetting
‘‘Fiscal year:
collection amount
2002 .............................................................................................
$585,720,000
2003 .............................................................................................
$679,320,000
2004 .............................................................................................
$822,240,000
2005 .............................................................................................
$976,320,000
2006 .............................................................................................
$1,148,040,000
2007 .............................................................................................
$880,880,000
2008 .............................................................................................
$892,080,000
2009 .............................................................................................
$1,023,120,000
2010 .............................................................................................
$1,161,440,000
2011 .............................................................................................
$1,321,040,000
‘‘(2) BASELINE ESTIMATE OF THE AGGREGATE
DOLLAR AMOUNT OF SALES.—The baseline estimate of
the aggregate dollar amount of sales for any fiscal
year is the baseline estimate of the aggregate dollar
amount of sales of securities (other than bonds, deben-
tures, other evidences of indebtedness, and security fu-
tures products) to be transacted on each national se-
curities exchange and by or through any member of
each national securities association (otherwise than
on a national securities exchange) during such fiscal
year as determined by the Commission, after con-
sultation with the Congressional Budget Office and
the Office of Management and Budget, using the
methodology required for making projections pursuant
to section 257 of the Balanced Budget and Emergency
Deficit Control Act of 1985.’’.
(2) CONFORMING AMENDMENT.—Section 31(g) of
such Act (as redesignated by subsection (a)(6) of this
section) is amended by inserting before the period at
the end the following: ‘‘not later than April 30 of the
fiscal year preceding the fiscal year to which such
rate applies, together with any estimates or projec-
tions on which such fees are based’’.
SEC. 4. REDUCTION OF REGISTRATION FEES.
Section 6(b) of the Securities Act of 1933 (15 U.S.C.
77f(b)) is amended by striking paragraphs (2) through (5)
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 at a rate that shall be
equal to $125 per $1,000,000 of the maximum aggre-
gate price at which such securities are proposed to be
offered, except that during fiscal year 2003 and any
succeeding fiscal year such fee shall be adjusted pur-
suant to paragraph (5) or (6).
‘‘(3) OFFSETTING COLLECTIONS.—Fees collected
pursuant to this subsection for any fiscal year—
‘‘(A) shall be deposited and credited as off-
setting collections to the account providing ap-
propriations to the Commission; and
‘‘(B) except as provided in paragraph (9),
shall not be collected for any fiscal year except
to the extent provided in advance in appropria-
tion Acts.
‘‘(4) GENERAL REVENUES PROHIBITED.—No fees
collected pursuant to this subsection for fiscal year
2002 or any succeeding fiscal year shall be deposited
and credited as general revenue of the Treasury.
‘‘(5) ANNUAL ADJUSTMENT.—For each of the fis-
cal years 2003 through 2011, the Commission shall by
order adjust the rate required by paragraph (2) for
such fiscal year to a rate that, when applied to the
baseline estimate of the aggregate maximum offering
prices for such fiscal year, is reasonably likely to
produce aggregate fee collections under this subsection
that are equal to the target offsetting collection
amount for such fiscal year.
‘‘(6) FINAL RATE ADJUSTMENT.—For fiscal year
2012 and all of the succeeding fiscal years, the Com-
mission shall by order adjust the rate required by
paragraph (2) for all of such fiscal years to a rate
that, when applied to the baseline estimate of the ag-
gregate maximum offering prices for fiscal year 2012,
is reasonably likely to produce aggregate fee collec-
tions under this subsection in fiscal year 2012 equal
to the target offsetting collection amount for fiscal
year 2011.
‘‘(7) PRO
RATA
APPLICATION.—The rates per
$1,000,000 required by this subsection shall be ap-
plied pro rata to amounts and balances equal to less
than $1,000,000.
‘‘(8) REVIEW
AND
EFFECTIVE
DATE.—An ad-
justed rate prescribed under paragraph (5) or (6) and
published under paragraph (10) shall not be subject
to judicial review. Subject to paragraphs (3)(B) and
(9)—
‘‘(A) an adjusted rate prescribed under
paragraph (5) shall take effect on the later of—
‘‘(i) the first day of the fiscal year to
which such rate applies; or
‘‘(ii) 5 days after the date on which a
regular appropriation to the Commission
for such fiscal year is enacted; and
‘‘(B) an adjusted rate prescribed under
paragraph (6) shall take effect on the later of—
‘‘(i) the first day of fiscal year 2012;
or
‘‘(ii) 5 days after the date on which a
regular appropriation to the Commission
for fiscal year 2012 is enacted.
‘‘(9) LAPSE OF APPROPRIATION.—If on the first
day of a fiscal year a regular appropriation to the
Commission has not been enacted, the Commission
shall continue to collect fees (as offsetting collections)
under this subsection at the rate in effect during the
preceding fiscal year, until 5 days after the date such
a regular appropriation is enacted.
‘‘(10) PUBLICATION.—The Commission shall
publish in the Federal Register notices of the rate ap-
plicable under this subsection and under sections
13(e) and 14(g) for each fiscal year not later than
April 30 of the fiscal year preceding the fiscal year
to which such rate applies, together with any esti-
mates or projections on which such rate is based.
‘‘(11) DEFINITIONS.—For purposes of this sub-
section:
‘‘(A) TARGET
OFFSETTING
COLLECTION
AMOUNT.—The 
target 
offsetting 
collection
amount for each of the fiscal years 2002 through
2011 is determined according to the following
table:
Target offsetting
‘‘Fiscal year:
collection amount
2002 .............................................................................................
$512,500,000
2003 .............................................................................................
$589,380,000
2004 .............................................................................................
$650,385,000
2005 .............................................................................................
$790,075,000
2006 .............................................................................................
$949,050,000
2007 .............................................................................................
$214,200,000
2008 .............................................................................................
$233,700,000
2009 .............................................................................................
$284,115,000
2010 .............................................................................................
$333,840,000
2011 .............................................................................................
$394,110,000
‘‘(B) BASELINE ESTIMATE OF THE AGGRE-
GATE MAXIMUM OFFERING PRICES.—The baseline
estimate of the aggregate maximum offering
prices for any fiscal year is the baseline estimate
of the aggregate maximum offering price at
which securities are proposed to be offered pursu-
ant to registration statements filed with the
Commission during such fiscal year as deter-
mined by the Commission, after consultation
with the Congressional Budget Office and the Of-
fice of Management and Budget, using the meth-
odology required for projections pursuant to sec-
tion 257 of the Balanced Budget and Emergency
Deficit Control Act of 1985.’’.
SEC. 5. FEES FOR STOCK REPURCHASE STATEMENTS.
Section 13(e) of the Securities Exchange Act of 1934
(15 U.S.C. 78m(e)) is amended
(1) in paragraph (3), by striking ‘‘a fee of 1⁄50
of 1 per centum of the value of securities proposed to
be purchased’’ and inserting ‘‘a fee at a rate that,
subject to paragraphs (5) and (6), is equal to $125
per $1,000,000 of the value of securities proposed to
be purchased’’;
(2) by inserting after paragraph (3) the fol-
lowing new paragraphs:
‘‘(4) OFFSETTING COLLECTIONS.—Fees collected
pursuant to this subsection for any fiscal year shall
be deposited and credited as offsetting collections to
the account providing appropriations to the Commis-
sion, and, except as provided in paragraph (9), shall
not be collected for any fiscal year except to the extent
provided in advance in appropriation Acts. No fees
collected pursuant to this subsection for fiscal year
2002 or any succeeding fiscal year shall be deposited
and credited as general revenue of the Treasury.
‘‘(5) ANNUAL ADJUSTMENT.—For each of the fis-
cal years 2003 through 2011, the Commission shall by
order adjust the rate required by paragraph (3) for
such fiscal year to a rate that is equal to the rate (ex-
pressed in dollars per million) that is applicable
under section 6(b) of the Securities Act of 1933 for
such fiscal year.
‘‘(6) FINAL RATE ADJUSTMENT.—For fiscal year
2012 and all of the succeeding fiscal years, the Com-
mission shall by order adjust the rate required by
paragraph (3) for all of such fiscal years to a rate
that is equal to the rate (expressed in dollars per mil-
lion) that is applicable under section 6(b) of the Secu-
rities Act of 1933 for all of such fiscal years.
‘‘(7) PRO
RATA
APPLICATION.—The rates per
$1,000,000 required by this subsection shall be ap-
plied pro rata to amounts and balances equal to less
than $1,000,000.
‘‘(8) REVIEW
AND
EFFECTIVE
DATE.—An ad-
justed rate prescribed under paragraph (5) or (6) and
published under paragraph (10) shall not be subject
to judicial review. Subject to paragraphs (4) and
(9)—
‘‘(A) an adjusted rate prescribed under
paragraph (5) shall take effect on the later of—
‘‘(i) the first day of the fiscal year to
which such rate applies; or
‘‘(ii) 5 days after the date on which a
regular appropriation to the Commission
for such fiscal year is enacted; and
‘‘(B) an adjusted rate prescribed under
paragraph (6) shall take effect on the later of—
‘‘(i) the first day of fiscal year 2012;
or
‘‘(ii) 5 days after the date on which a
regular appropriation to the Commission
for fiscal year 2012 is enacted.
‘‘(9) LAPSE OF APPROPRIATION.—If on the first
day of a fiscal year a regular appropriation to the
Commission has not been enacted, the Commission
shall continue to collect fees (as offsetting collections)
under this subsection at the rate in effect during the
preceding fiscal year, until 5 days after the date such
a regular appropriation is enacted.
‘‘(10) PUBLICATION.—The rate applicable under
this subsection for each fiscal year is published pursu-
ant to section 6(b)(10) of the Securities Act of 1933.’’.
SEC. 6. FEES FOR PROXY SOLICITATIONS AND STATEMENTS
IN CORPORATE CONTROL TRANSACTIONS.
Section 14(g) of the Securities Exchange Act of 1934
(15 U.S.C. 78m(e)(3)) is amended—
(1) in paragraphs (1) and (3), by striking ‘‘a fee
of 1⁄50 of 1 per centum of’’ each place it appears and
inserting ‘‘a fee at a rate that, subject to paragraphs
(5) and (6), is equal to $125 per $1,000,000 of’’;
(2) by redesignating paragraph (4) as para-
graph (11); and
(3) by inserting after paragraph (3) the fol-
lowing new paragraphs:
‘‘(4) OFFSETTING COLLECTIONS.—Fees collected
pursuant to this subsection for any fiscal year shall
be deposited and credited as offsetting collections to
the account providing appropriations to the Commis-
sion, and, except as provided in paragraph (9), shall
not be collected for any fiscal year except to the extent
provided in advance in appropriation Acts. No fees
collected pursuant to this subsection for fiscal year
2002 or any succeeding fiscal year shall be deposited
and credited as general revenue of the Treasury.
‘‘(5) ANNUAL ADJUSTMENT.—For each of the fis-
cal years 2003 through 2011, the Commission shall by
order adjust each of the rates required by paragraphs
(1) and (3) for such fiscal year to a rate that is equal
to the rate (expressed in dollars per million) that is
applicable under section 6(b) of the Securities Act of
1933 for such fiscal year.
‘‘(6) FINAL RATE ADJUSTMENT.—For fiscal year
2012 and all of the succeeding fiscal years, the Com-
mission shall by order adjust each of the rates re-
quired by paragraphs (1) and (3) for all of such fiscal
years to a rate that is equal to the rate (expressed in
dollars per million) that is applicable under section
6(b) of the Securities Act of 1933 for all of such fiscal
years.
‘‘(7) PRO
RATA
APPLICATION.—The rates per
$1,000,000 required by this subsection shall be ap-
plied pro rata to amounts and balances equal to less
than $1,000,000.
‘‘(8) REVIEW
AND
EFFECTIVE
DATE.—An ad-
justed rate prescribed under paragraph (5) or (6) and
published under paragraph (10) shall not be subject
to judicial review. Subject to paragraphs (4) and
(9)—
‘‘(A) an adjusted rate prescribed under
paragraph (5) shall take effect on the later of—
‘‘(i) the first day of the fiscal year to
which such rate applies; or
‘‘(ii) 5 days after the date on which a
regular appropriation to the Commission
for such fiscal year is enacted; and
‘‘(B) an adjusted rate prescribed under
paragraph (6) shall take effect on the later of—
‘‘(i) the first day of fiscal year 2012;
or
‘‘(ii) 5 days after the date on which a
regular appropriation to the Commission
for fiscal year 2012 is enacted.
‘‘(9) LAPSE OF APPROPRIATION.—If on the first
day of a fiscal year a regular appropriation to the
Commission has not been enacted, the Commission
shall continue to collect fees (as offsetting collections)
under this subsection at the rate in effect during the
preceding fiscal year, until 5 days after the date such
a regular appropriation is enacted.
‘‘(10) PUBLICATION.—The rate applicable under
this subsection for each fiscal year is published pursu-
ant to section 6(b)(10) of the Securities Act of 1933.’’.
SEC. 7. TRUST INDENTURE ACT FEE.
Section 307(b) of the Trust Indenture Act of 1939 (15
U.S.C. 77ggg(b)) is amended by striking ‘‘Commission, but,
in the case’’ and all that follows and inserting ‘‘Commis-
sion.’’.
SEC. 8. PAY PARITY PROVISIONS.
(a) SECURITIES
AND EXCHANGE COMMISSION EM-
PLOYEES.—Section 4(b) of the Securities Exchange Act of
1934 (15 U.S.C. 78d(b)) is amended—
(1) by striking paragraphs (1) and (2) and by
inserting the following:
‘‘(1) APPOINTMENT, COMPENSATION, AND BENE-
FITS.—
‘‘(A) IN GENERAL.—The Commission may
appoint and fix the compensation of such offi-
cers, attorneys, economists, examiners, and other
employees as may be necessary for carrying out
its functions under this Act.
‘‘(B) RATES OF PAY.—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 of title 5, United States Code.
‘‘(C) ADDITIONAL COMPENSATION AND BEN-
EFITS.—The Commission may provide addi-
tional compensation and benefits to employees of
the Commission if the same type of compensation
or benefits are then being provided by any agen-
cy referred to under section 1206 of the Finan-
cial Institutions Reform, Recovery, and Enforce-
ment Act of 1989 or, if not then being provided,
could be provided by such an agency under ap-
plicable provisions of law, rule, or regulation.
‘‘(2) INFORMATION; COMPARABILITY.—In estab-
lishing and adjusting schedules of compensation and
additional benefits for employees of the Commission,
which are to be determined solely by the Commission
under this subsection, the Commission—
‘‘(A) shall consult with and inform the
heads of the agencies referred to under section
1206 of the Financial Institutions Reform, Re-
covery, and Enforcement Act of 1989;
‘‘(B) shall inform the Congress of such com-
pensation and benefits; and
‘‘(C) shall seek to maintain comparability
with such agencies regarding compensation and
benefits.’’.
(b) TECHNICAL AMENDMENTS.—
(1) Section 3132(a)(1) of title 5, United States
Code, is amended—
(A) in subparagraph (C), by striking ‘‘or’’
after the semicolon;
(B) in subparagraph (D), by inserting ‘‘or’’
after the semicolon; and
(C) by adding at the end of the following:
‘‘(E) the Securities and Exchange Commis-
sion.’’.
(2) Section 5373(a) of title 5, United States
Code, is amended—
(A) in paragraph (2), by striking ‘‘or’’ after
the semicolon;
(B) in paragraph (3), by striking the period
and inserting ‘‘; or’’; and
(C) by adding at the end the following:
‘‘(4) section 4(b) of the Securities Exchange Act
of 1934.’’.
SEC. 9. 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 se-
curities industry directly and indirectly benefitting
from the fee reductions, including purchasers and sell-
ers of securities, members of national securities ex-
changes, issuers, broker-dealers, underwriters, partici-
pants in investment companies, retirement programs,
and others;
(2) evaluate the impact on different types of in-
vestors, such as individual equity holders, individual
investment company shareholders, businesses, and
other types of investors;
(3) include in the interpretation of the term ‘‘in-
vestor’’ shareholders of entities subject to the fee reduc-
tions; and
(4) consider the economic benefits to investors
flowing from the fee reductions to include such factors
as market efficiency, expansion of investment oppor-
tunities, and enhanced liquidity and capital forma-
tion.
(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 re-
port prepared by the Office on the results of the study con-
ducted under subsection (a).
SEC. 10. EFFECTIVE DATES.
(a) IN GENERAL.—Except as provided in subsections
(b), (c), and (d), the amendments made by this Act shall
take effect on October 1, 2001.
(b) IMMEDIATE TRANSACTION FEE REDUCTIONS.—
The amendments made by section 2 shall take effect on the
later of—
(1) the first day of fiscal year 2002; or
(2) 30 days after the date on which a regular ap-
propriation to the Commission for such fiscal year is
enacted.
(c) PAY PARITY.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by section 8 shall
take effect on the date of enactment of this Act.
(2) EXCEPTION.—The amendments made by sec-
tion 8(b)(1) shall take effect as of such date as the Se-
curities and Exchange Commission shall (by order
published in the Federal Register) prescribe, but in no
event later than 1 year after the date of enactment of
this Act.
(d) ADDITIONAL EXCEPTIONS.—The authorities pro-
vided by section 6(b)(9) of the Securities Act of 1933 and
sections 13(e)(9), 14(g)(9) and 31(k) of the Securities Ex-
change Act of 1934, as so designated by this Act, shall not
apply until October 1, 2002.
Union Calendar No. 42
107TH CONGRESS
1ST SESSION
H. R. 1088
[Report No. 107–52, Part I]
A BILL
To amend the Securities Exchange Act of 1934 to
reduce fees collected by the Securities and Ex-
change Commission, and for other purposes.
MAY 25, 2001
Committee discharged; referred to the Committee of the
Whole House on the State of the Union and ordered
to be printed