I
107TH CONGRESS
2D SESSION
H. R. 5149
To establish the Securities and Commodities Exchange Commission in order
to combine the functions of the Commodity Futures Trading Commission
and the Securities and Exchange Commission in a single independent
regulatory commission, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JULY 17, 2002
Mr. LEACH introduced the following bill; which was referred to the Committee
on Financial Services, and in addition to the Committee on Agriculture,
for a period to be subsequently determined by the Speaker, in each case
for consideration of such provisions as fall within the jurisdiction of the
committee concerned
A BILL
To establish the Securities and Commodities Exchange Com-
mission in order to combine the functions of the Com-
modity Futures Trading Commission and the Securities
and Exchange Commission in a single independent regu-
latory commission, 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; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Markets and Trading Reorganization and Reform Act’’.
(b) TABLE OF CONTENTS.—
TITLE VI—EFFECTIVE DATE
Sec. 601. Effective date.
SEC. 2. PURPOSES.
The purposes of this Act are—
(1) to establish a single Federal regulatory body
with jurisdiction over securities, options, futures,
and related markets and instruments;
(2) to consolidate and revise the authority for
setting margin requirements on all such instru-
ments;
(3) to coordinate the regulation of all financial
markets;
(4) to strengthen investor confidence in United
States financial markets; and
(5) to ensure the competitiveness of those mar-
kets.
SEC. 3. DEFINITIONS.
As used in this Act—
(1) the term ‘‘Commission’’ means the Securi-
ties and Commodities Exchange Commission estab-
lished by section 101 of this Act; and
(2) the term ‘‘function’’ includes any duty, obli-
gation, power, authority, responsibility, right, privi-
lege, activity, or program.
TITLE I—ESTABLISHMENT OF
COMMISSION
SEC. 101. ESTABLISHMENT.
There is established an independent regulatory com-
mission to be known as the Securities and Commodities
Exchange Commission.
SEC. 102. MEMBERS: APPOINTMENT; TERMS.
(a) COMPOSITION OF COMMISSION.—The Commis-
sion shall be composed of five commissioners appointed by
the President, by and with the advice and consent of the
Senate. One of the commissioners shall be designated by
the President as chairperson. Not more than 3 of such
members shall be members of the same political party.
Each Commissioner shall be selected solely on the basis
of integrity and demonstrated knowledge of the operations
of the markets subject to the jurisdiction of the Commis-
sion.
(b) TERMS.—Each commissioner shall be appointed
for a term of 5 years, except that—
(1) a commissioner may continue to serve after
the expiration of such term until a successor is ap-
pointed and has qualified, but may not continue to
so serve beyond the expiration of the next session of
Congress beginning after the expiration of such
term;
(2) the terms of office of the commissioners
first taking office after the enactment of this Act
shall expire, as designated by the President at the
time of their appointment—
(A) 1 at the end of 1 year;
(B) 2 at the end of 3 years; and
(C) 2 at the end of 5 years; and
(3) any member appointed to fill a vacancy oc-
curring prior to the expiration of the term for which
the predecessor was appointed shall be appointed for
the remainder of such term.
(c) CONFLICTS OF INTEREST.—
(1) IN GENERAL.—No commissioner shall en-
gage in any other business, vocation, or employment
than that of serving as commissioner, nor shall any
commissioner participate, directly or indirectly, in
any market operations or transactions of a character
subject to regulation by the Commission pursuant to
this title.
(2) REIMBURSEMENT FOR TRAVEL.—Notwith-
standing any other provision of law, in accordance
with regulations which the Commission shall pre-
scribe to prevent conflicts of interest, the Commis-
sion may accept payment and reimbursement, in
cash or in kind, from non-Federal agencies, organi-
zations, and individuals for travel, subsistence, and
other necessary expenses incurred by Commission
members and employees in attending meetings and
conferences concerning the functions or activities of
the Commission. Any payment or reimbursement ac-
cepted shall be credited to the appropriated funds of
the Commission. The amount of travel, subsistence,
and other necessary expenses for members and em-
ployees paid or reimbursed under this subsection
may exceed per diem amounts established in official
travel regulations, but the Commission may include
in its regulations under this subsection a limitation
on such amounts.
(d) FEES.—Notwithstanding any other provision of
law, whenever any fee is required to be paid to the Com-
mission pursuant to any provision of the securities laws
or any other law, the Commission may provide by rule that
such fee shall be paid in a manner other than in cash.
SEC. 103. ORGANIZATION OF COMMISSION.
The Commission shall establish the principal divi-
sions and subdivisions of the Commission, except that the
Commission shall establish a separate division with re-
sponsibility for functions relating to markets in physical
commodities.
SEC. 104. GENERAL COUNSEL.
There shall be in the Commission an Office of Gen-
eral Counsel, headed by a General Counsel appointed by
the President, by and with the advice and consent of the
Senate.
TITLE II—TRANSFERS OF
FUNCTIONS
SEC. 201. COMMODITY FUTURES TRADING COMMISSION
FUNCTIONS.
There are transferred to the Commission all functions
of the Commodity Futures Trading Commission and of
any officer or component of the Commodity Futures Trad-
ing Commission.
SEC. 202. SECURITIES AND EXCHANGE COMMISSION.
There are transferred to the Commission all functions
of the Security and Exchange Commission and of any offi-
cer or component of the Securities and Exchange Commis-
sion.
SEC. 203. JURISDICTION OF MARGIN AUTHORITY WITH RE-
SPECT TO SECURITIES.
There is transferred to the Commission the functions
of the Board of Governors of the Federal Reserve System
under section 7 of the Securities Exchange Act of 1934.
TITLE III—FEDERAL FINANCIAL
MARKETS 
COORDINATING
COUNCIL
SEC. 301. ESTABLISHMENT; MEMBERSHIP.
(a) ESTABLISHMENT.—There is established in the ex-
ecutive branch a council to be known as the Federal Fi-
nancial Markets Coordinating Council.
(b) MEMBERSHIP.—The Council shall be composed of
the heads of the following agencies or their designees for
this purpose:
(1) The Board of Governors of the Federal Re-
serve System.
(2) The Comptroller of the Currency.
(3) The Secretary of the Treasury.
(4) The Securities and Commodities Exchange
Commission.
(5) The Office of Thrift Supervision.
(6) The Federal Deposit Insurance Corporation.
(c) CHAIRPERSON.—The Council shall elect 1 of its
members to serve as chairperson.
SEC. 302. FUNCTIONS OF THE COUNCIL.
The Federal Financial Markets Coordinating Council
shall—
(1) serve as a facility for the coordination of
the regulatory operations of each of the agencies
represented on the Council;
(2) meet bimonthly and at the call of the chair
to discuss issues relating to the safety and effective-
ness of the financial services industry and other
issues relating to those regulatory operations;
(3) establish an advisory committee of not more
than 5 members representative of the futures, com-
modities, options, and securities exchanges and the
banking industry to meet no less than 4 times annu-
ally; and
(4) report biennially to the Congress on its
functions and activities, including in the first such
report such recommendations for legislative action
as it considers appropriate.
SEC. 303. STAFF; ADMINISTRATIVE SUPPORT; EXPENSES.
(a) STAFF; ADMINISTRATIVE SUPPORT.—The Com-
mission and each agency represented on the Council shall
provide to the Council such personnel and administrative
support as the Council may require to carry out its func-
tions under this title.
(b) EXPENSES.—There are authorized to be appro-
priated such sums as may be necessary for the expenses
of the Commission in carrying out this title. Funds appro-
priated under this subsection may be available to reim-
burse agencies for personnel detailed to the Council and
for administrative support provided under subsection (a).
TITLE IV—ADMINISTRATIVE
PROVISIONS
PART A—PERSONNEL PROVISIONS
SEC. 401. OFFICERS AND EMPLOYEES.
(a) APPOINTMENT AND COMPENSATION.—The Com-
mission may appoint and fix the compensation of such of-
ficers and employees, including attorneys, as may be nec-
essary to carry out the functions of the Commission. Ex-
cept as otherwise provided by law, such officers and em-
ployees shall be appointed in accordance with the civil
service laws and their compensation fixed in accordance
with title 5 of the United States Code.
(b) SPECIAL PROVISIONS.—
(1) CONTINUITY OF SUPERGRADE POSITIONS.—
At the request of the Commission, the Director of
the Office of Personnel Management shall, under
section 5108 of title 5, United States Code, provide
for the establishment in each of the grade levels GS–
16, GS–17, and GS–18 of a number of positions in
the Commission equal to the number of positions in
that grade level which were used primarily for the
performance of functions and offices transferred
under this Act and which were assigned and filled on
the day before the effective date of this Act.
(2) CONTINUITY OF PROFESSIONAL AND TECH-
NICAL POSITIONS.—At the request of the Commis-
sion, the Director of the Office of Personnel Man-
agement shall, under section 3104 of title 5, United
States Code, provide for the establishment in the
Commission of a number of professional and tech-
nical positions outside of the General Schedule equal
to the number of such positions which were used pri-
marily for the performance of functions and offices
transferred under this Act and which were assigned
and filled on the day before the effective date of this
Act.
(3) APPOINTMENTS TO SPECIAL POSITIONS.—
Appointments to positions provided for under this
subsection may be made without regard to the provi-
sions of section 3324 of title 5 of the United States
Code, if the individual appointed in such position is
an individual who is transferred in connection with
the transfer of functions and offices under this Act
and, on the day preceding the effective date of this
Act, holds a position and has duties comparable to
those of the position to which appointed hereunder.
(4) TERMINATION OF SPECIAL AUTHORITY.—
The authority under this subsection with respect to
any position shall terminate when the person first
appointed to fill such position ceases to hold such
position.
(5) TECHNICAL PROVISION.—For purposes of
section 414(a)(3)(A) of the Civil Service Reform Act
of 1978, an individual appointed under this sub-
section shall be deemed to occupy the same position
as the individual occupied on the day preceding the
effective date of this Act.
(c) ADDITIONAL TECHNICAL
AND PROFESSIONAL
POSITIONS.—The Commission may appoint, without re-
gard to the provisions of title 5, United States Code, gov-
erning appointment in the competitive service, up to 100
technical or professional employees of the Commission and
may compensate employees so appointed without regard
to the provisions of chapter 51 and subchapter III of chap-
ter 53 of such title relating to classification and General
Schedule pay rates. The rate of basic compensation for
such employees shall not be equal to or in excess of the
minimum rate of pay currently paid for GS–16 of the Gen-
eral Schedule under section 5332 of such title.
(d) LIMITED-TERM APPOINTEES.—Notwithstanding
any other provision of law, the Director of the Office of
Personnel Management shall establish positions within the
Senior Executive Service for 10 limited-term appointees.
The Commission shall appoint individuals to such posi-
tions as provided by section 3394 of title 5, United States
Code. Such positions shall expire on the later of 3 years
after the effective date of this Act or 3 years after the
initial appointment to each position. Positions in effect
under this subsection shall be taken into account in apply-
ing the limitations on positions prescribed under section
3134(e) and section 5108 of such title.
SEC. 402. EXPERTS AND CONSULTANTS.
The Commission may as provided in appropriation
Acts obtain the services of experts and consultants in ac-
cordance with the provisions of section 3109 of title 5,
United States Code, and may compensate such experts
and consultants at rates not to exceed the daily rate pre-
scribed for GS–18 of the General Schedule under section
5332 of such title.
PART B—GENERAL ADMINISTRATIVE
PROVISIONS
SEC. 411. GENERAL AUTHORITY.
In carrying out any function transferred by this Act,
the Commission, or any officer or employee of the Com-
mission, may exercise any authority available by law (in-
cluding appropriation Acts) with respect to such function
to the official or agency from which such function is trans-
ferred, and the actions of the Commission in exercising
such authority shall have the same force and effect as
when exercised by such official or agency.
SEC. 412. DELEGATION.
Exception as otherwise provided in this Act, the Com-
mission may delegate any function to such officers and
employees of the Commission as the Commission may des-
ignate, and may authorize such successive redelegations
of such functions within the Commission as may be nec-
essary or appropriate. No delegation of functions by the
Commission under this section or under any other provi-
sion of this Act shall relieve the Commission of responsi-
bility for the administration of such functions.
SEC. 413. REORGANIZATION.
The Commission may allocate or reallocate functions
among the officers of the Commission, and to establish,
consolidate, alter, or discontinue such organizational enti-
ties within the Commission as may be necessary or appro-
priate.
SEC. 414. RULES.
The Commission may prescribe such rules and regu-
lations as the Commission determines necessary or appro-
priate to administer and manage the functions of the Com-
mission.
SEC. 415. CONTRACTS.
(a) IN GENERAL.—Subject to the provisions of the
Federal Property and Administrative Services Act of
1949, the Commission may make, enter into, and perform
such contracts, grants, leases, cooperative agreements, or
other similar transactions with Federal or other public
agencies (including State and local governments) and pri-
vate organizations and persons, and to make such pay-
ments, by way of advance or reimbursement, as the Com-
mission may determine necessary or appropriate to carry
out functions of the Commission.
(b) APPROPRIATIONS REQUIRED.—Notwithstanding
any other provision of this Act, no authority to enter into
contracts or to make payments under this title shall be
effective except to such extent or in such amounts as are
provided in advance under appropriation Acts.
SEC. 416. REGIONAL AND FIELD OFFICES.
The Commission may establish, alter, discontinue, or
maintain such regional or other field offices as the Com-
mission may find necessary or appropriate to perform
functions of the Commission.
SEC. 417. USE OF FACILITIES.
(a) USE BY COMMISSION.—With their consent, the
Commission may, with or without reimbursement, use the
research, equipment, services, and facilities of any agency
or instrumentality of the United States, of any State or
political subdivision thereof, or of any foreign government,
in carrying out any function of the Commission.
(b) USE BY OTHERS.—The Commission may permit
public and private agencies, corporations, associations, or-
ganizations, or individuals to use any real property, or any
facilities, structures, or other improvements thereon,
under the custody and control of the Commission for Com-
mission purposes. The Commission shall permit the use
of such property, facilities, structures, or improvements
under such terms and rates and for such period as may
be in the public interest, except that the periods of such
uses may not exceed five years. The Commission may re-
quire permittees under this section to recondition and
maintain, at their own expense, the real property, facili-
ties, structures, and improvements used by such permit-
tees to a standard satisfactory to the Commission. This
subsection shall not apply to excess property as defined
in section 3(e) of the Federal Property and Administrative
Services Act of 1949.
(c) PROCEEDS FROM REIMBURSEMENTS.—Proceeds
from reimbursements under this section may be credited
to the appropriation of funds that bear or will bear all
or part of the cost of such equipment or facilities provided
or to refund excess sums when necessary.
(d) TITLE TO PROPERTY.—Any interest in real prop-
erty acquired pursuant to this Act shall be acquired in
the name of the United States Government.
SEC. 418. WORKING CAPITAL FUND.
(a) AUTHORITY AND USE.—The Commission, with
the approval of the Director of the Office of Management
and Budget, may establish for the Commission a working
capital fund, to be available without fiscal year limitation,
for expenses necessary for the maintenance and operation
of such common administrative services as the Commis-
sion shall find to be desirable in the interests of economy
and efficiency, including such services as—
(1) a central supply service for stationery and
other supplies and equipment for which adequate
stocks may be maintained to meet in whole or in
part the requirements of the Commission and its
components;
(2) central messenger, mail, telephone, and
other communications services;
(3) office space, central services for document
reproduction, and for graphics and visual aids; and
(4) a central library service.
(b) CONTENTS AND MANAGEMENT OF FUND.—The
capital of the fund shall consist of any appropriations
made for the purpose of providing working capital and the
fair and reasonable value of such stocks of supplies, equip-
ment, and other assets and inventories on order as the
Commission may transfer to the fund, less the related li-
abilities and unpaid obligations. Such funds shall be reim-
bursed in advance from available funds of agencies and
offices in the Commission, or from other sources, for sup-
plies and services at rates that will approximate the ex-
pense of operation, including the accrual of annual leave
and the depreciation of equipment. The fund shall also be
credited with receipts from sale or exchange of property
and receipts in payment for loss or damage to property
owned by the fund. There shall be covered into the Treas-
ury as miscellaneous receipts any surplus of the fund (all
assets, liabilities, and prior losses considered) above the
amounts transferred or appropriated to establish and
maintain such fund. There shall be transferred to the fund
the stocks of supplies, equipment, other assets, liabilities,
and unpaid obligations relating to the services which the
Commission determines, with the approval of the Director
of the Office of Management and Budget, will be per-
formed.
SEC. 419. FUNDS TRANSFER.
The Commission may, when authorized in an appro-
priation Act in any fiscal year, transfer funds from 1 ap-
propriation to another within the Commission, except that
no appropriation for any fiscal year shall be either in-
creased or decreased pursuant to this section by more than
5 percent and no such transfer shall result in increasing
any such appropriation above the amount authorized to
be appropriated therefor.
SEC. 420. SEAL OF COMMISSION.
The Commission shall cause a seal of office to be
made for the Commission of such design as the Commis-
sion shall approve. Judicial notice shall be taken of such
seal.
SEC. 421. ANNUAL REPORT.
(a) CONTENTS.—The Commission shall, as soon as
practicable after the close of each fiscal year, make a sin-
gle, comprehensive report to the President for trans-
mission to the Congress on the activities of the Commis-
sion during such fiscal year. The report shall include a
statement of goals, priorities, and plans for the Commis-
sion together with an assessment of the progress made
toward—
(1) the attainment of such goals, priorities, and
plans; and
(2) the more effective and efficient management
of the Commission and the coordination of its func-
tions;
accompanied where necessary by recommendations for
proposed legislation for the achievement of such objectives.
(b) CONTRACTING-OUT ESTIMATE.—The report re-
quired by subsection (a) shall also include an estimate of
the extent of the non-Federal personnel employed pursu-
ant to contracts entered into by the Commission under
section 415 or under any other authority (including any
subcontract thereunder), the number of such contracts
and subcontracts pursuant to which non-Federal per-
sonnel are employed, and the total cost of those contracts
and subcontracts.
TITLE 
V—TRANSITIONAL, 
SAV-
INGS, 
AND 
CONFORMING
PROVISIONS
SEC. 501. TRANSFER AND ALLOCATION OF APPROPRIA-
TIONS AND PERSONNEL.
(a) IN GENERAL.—Except as otherwise provided in
this Act, the personnel employed in connection with, and
the assets, liabilities, contracts, property, records, and un-
expended balance of appropriations, authorizations, alloca-
tions, and other funds employed, held, used, arising from,
available to, or to be made available in connection with
the functions and offices, or portions thereof transferred
by this Act, subject to section 202 of the Budget and Ac-
counting Procedures Act of 1950, shall be transferred to
the Commission for appropriate allocation. Unexpended
funds transferred pursuant to this subsection shall be used
only for the purposes for which the funds were originally
authorized and appropriated.
(b) EXCEPTION.—Positions expressly specified by
statute or reorganization plan to carry out functions or
offices transferred by this Act, personnel occupying those
positions on the effective date of this Act, and personnel
authorized to receive compensation in such positions at the
rate prescribed for offices and positions at level IV or V
of the Executive Schedule (5 U.S.C. 5315–5316) on the
effective date of this Act, shall be subject to the provisions
of section 503.
SEC. 502. EFFECT ON PERSONNEL.
(a) PROTECTION AGAINST REDUCTION IN GRADE OR
COMPENSATION.—Except as otherwise provided in this
Act, the transfer pursuant to this title of full-time per-
sonnel (except special Government employees) and part-
time personnel holding permanent positions shall not
cause any such employee to be separated or reduced in
grade or compensation for 1 year after the date of transfer
to the Commission.
(b) EXECUTIVE LEVEL APPOINTEES.—Any person
who, on the day preceding the effective date of this Act,
held a position compensated in accordance with the Execu-
tive Schedule prescribed in chapter 53 of title 5, United
States Code, and who, without a break in service, is ap-
pointed in the Commission to a position having duties
comparable to the duties performed immediately preceding
such appointment shall continue to be compensated in
such new position at not less than the rate provided for
such previous position, for the duration of the service of
such person in such new position.
SEC. 503. AGENCY TERMINATIONS.
(a) TERMINATED AGENCIES.—On the effective date
of this Act, the following entities shall terminate:
(1) The Commodity Futures Trading Commis-
sion.
(2) The Securities and Exchange Commission.
(b) TERMINATED POSITIONS.—Each position which
was expressly authorized by law, or the incumbent of
which was authorized to receive compensation at the rate
prescribed for level III, IV, or V of the Executive Schedule
(5 U.S.C. 5315–5316), in an office terminated pursuant
to this Act shall also terminate.
SEC. 504. INCIDENTAL TRANSFERS.
(a) GENERAL AUTHORITY OF OMB.—The Director
of the Office of Management and Budget, at such time
or times as the Director shall provide, shall make such
determinations as may be necessary with regard to the
functions, offices, or portions thereof transferred by this
Act, and to make such additional incidental dispositions
of personnel, assets, liabilities, grants, contracts, property,
records, and unexpended balances of appropriations, au-
thorizations, allocations, and other funds held, used, aris-
ing from, available to, or to be made available in connec-
tion with such functions, offices, or portions thereof, as
may be necessary to carry out the provisions of this Act.
The Director shall provide for the termination of the af-
fairs of all entities terminated by this Act and for such
further measures and dispositions as may be necessary to
effectuate the purposes of this Act.
(b) SES POSITIONS.—After consultation with the Di-
rector of the Office of Personnel Management, the Direc-
tor of the Office of Management and Budget may, at such
time as the Director of the Office of Management and
Budget provides, to make such determinations as may be
necessary with regard to the transfer of positions within
the Senior Executive Service in connection with functions
and offices transferred by this Act.
SEC. 505. SAVINGS PROVISIONS.
(a) CONTINUITY OF LEGAL INSTRUMENTS.—All or-
ders, determinations, rules, regulations, permits, grants,
contracts, certificates, licenses, and privileges—
(1) which have been issued, made, granted, or
allowed to become effective by the President, any
Federal department or agency or official thereof, or
by a court of competent jurisdiction, in the perform-
ance of functions which are transferred under this
Act to the Commission, and
(2) which are in effect at the time this Act
takes effect,
shall continue in effect according to their terms until
modified, terminated, superseded, set aside, or revoked in
accordance with the law by the President, the Commission,
or other authorized official, a court of competent jurisdic-
tion, or by operation of law.
(b) CONTINUITY OF PROCEEDINGS.—
(1) IN GENERAL.—The provisions of this Act
shall not affect any proceedings, including notices of
proposed rulemaking, or any application for any li-
cense, permit, certificate, or financial assistance
pending on the effective date of this Act before any
department, agency, commission, or component
thereof, functions of which are transferred by this
Act; but such proceedings and applications, to the
extent that they relate to functions so transferred,
shall be continued. Orders shall be issued in such
proceedings, appeals shall be taken therefrom, and
payments shall be made pursuant to such orders, as
if this Act had not been enacted; and orders issued
in any such proceedings shall continue in effect until
modified, terminated, superseded, or revoked by the
Commission, by a court of competent jurisdiction, or
by operation of law. Nothing in this subsection shall
be deemed to prohibit the discontinuance or modi-
fication of any such proceeding under the same
terms and conditions and to the same extent that
such proceeding could have been discontinued or
modified if this Act had not been enacted.
(2) REGULATIONS CONCERNING TRANSFERS.—
The Commission may prescribe regulations providing
for the orderly transfer of proceedings continued
under paragraph (1) to the Commission.
(c) PENDING LITIGATION.—Except as provided in
subsection (e)—
(1) the provisions of this Act shall not affect
suits commenced prior to the effective date of this
Act, and
(2) in all such suits, proceedings shall be had,
appeals taken, and judgments rendered in the same
manner and effect as if this Act had not been en-
acted.
(d) NONABATEMENT.—No suit, action, or other pro-
ceeding commenced by or against any officer in the official
capacity of such individual as an officer of any department
or agency, functions of which are transferred by this Act,
shall abate by reason of the enactment of this Act. No
cause of action by or against any department or agency,
functions of which are transferred by this Act, or by or
against any officer thereof in the official capacity of such
officer shall abate by reason of the enactment of this Act.
(e) SUBSTITUTION OF PARTIES.—If, before the date
on which this Act takes effect, any department or agency,
or officer thereof in the official capacity of such officer,
is a party to a suit, and under this Act any function of
such department, agency, or officer is transferred to the
Commission or any other official of the Commission, then
such suit shall be continued with the Commission or other
appropriate official of the Commission substituted or
added as a party.
(f) JUDICIAL REVIEW AS REQUIRED BY EXISTING
LAW.—Orders and actions of the Commission in the exer-
cise of functions transferred under this Act shall be sub-
ject to judicial review to the same extent and in the same
manner as if such orders and actions had been by the
agency or office, or part thereof, exercising such functions
immediately preceding their transfer. Any statutory re-
quirements relating to notice, hearings, action upon the
record, or administrative review that apply to any function
transferred by this Act shall apply to the exercise of such
function by the Commission.
SEC. 506. REFERENCE.
With respect to any function transferred by this Act
and exercised on or after the effective date of this Act,
reference in any other Federal law to any department,
commission, or agency or any officer or office the func-
tions of which are so transferred shall be deemed to refer
to the Commission, other official, or component of the
Commission to which this Act transfers such functions.
SEC. 507. AMENDMENTS.
(a) EXECUTIVE SCHEDULE SALARIES.—
(1) CHAIRPERSON.—Section 5314 of title 5,
United States Code, is amended—
(A) by striking ‘‘Chairman, Securities and
Exchange Commission.’’ and inserting ‘‘Chair-
person, Securities and Commodities Exchange
Commission.’’; and
(B) by striking ‘‘Chairman, Commodity
Futures Trading Commission.’’.
(2) MEMBERS.—Section 5315 of title 5, United
States Code, is amended—
(A) by striking ‘‘Members, Securities and
Exchange Commission’’ and inserting ‘‘Mem-
bers, Securities and Commodities Exchange
Commission’’; and
(B) by striking ‘‘Members, Commodity Fu-
tures Trading Commission.’’.
(b) CONFORMING AMENDMENTS.—
(1) SECURITIES
EXCHANGE
ACT.—Sections 4
and 35 of the Securities Exchange Act of 1934 are
repealed.
(2) COMMODITY EXCHANGE ACT.—Section 2(a)
of the Commodity Exchange Act is amended by
striking paragraphs (2), (3), and (4).
SEC. 508. TRANSITION.
With the consent of the appropriate department or
agency head concerned, the Commission may utilize the
services of such officers, employees, and other personnel
of the departments and agencies from which functions or
offices have been transferred to the Commission, and
funds appropriated to such functions or offices for such
period of time as may reasonably be needed to facilitate
the orderly implementation of this Act.
TITLE VI—EFFECTIVE DATE
SEC. 601. EFFECTIVE DATE.
(a) IN GENERAL.—The provisions of this Act shall
take effect 180 days after the first Commissioner takes
office, or on any later date on or before October 1, 2003,
as the President may prescribe and publish in the Federal
Register, except that at any time on or after the date of
enactment of this Act—
(1) any of the officers provided for in title II
of this Act may be nominated and appointed, as pro-
vided in such title; and
(2) the Commission may prescribe regulations
pursuant to section 505(b)(2) of this Act.
(b) TRANSITION EXPENSES.—Funds available to any
department or agency (or any official department or agen-
cy or any official or component thereof), the functions or
offices of which are transferred to the Commission by this
Act, may, with the approval of the Director of the Office
of Management and Budget, be used to pay the compensa-
tion and expenses of any officer appointed pursuant to this
title and other transitional and planning expenses associ-
ated with the establishment of the Commission or transfer
of functions or offices thereto until such time as funds
for such purposes are otherwise available.
Æ