Union Calendar No. 231
104TH CONGRESS
2D SESSION
H. R. 2972
[Report No. 104–479]
A BILL
To authorize appropriations for the Securities and
Exchange Commission, to reduce the fees col-
lected under the Federal securities laws, and for
other purposes.
MARCH 12, 1996
Reported with an amendment, committed to the Commit-
tee of the Whole House on the State of the Union, and
ordered to be printed
IB
Union Calendar No. 231
104TH CONGRESS
2D SESSION
H. R. 2972
[Report No. 104–479]
To authorize appropriations for the Securities and Exchange Commission,
to reduce the fees collected under the Federal securities laws, and for
other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 27, 1996
Mr. BLILEY (for himself, Mr. ARCHER, Mr. ROGERS, Mr. FIELDS of Texas,
Mr. DINGELL, Mr. MARKEY, Mr. OXLEY, and Mr. TAUZIN) introduced
the following bill; which was referred to the Committee on Commerce
MARCH 12, 1996
Additional sponsors: Mr. GILLMOR, Mr. KLUG, Mr. FRISA, Mr. HASTERT, and
Mr. RUSH
MARCH 12, 1996
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on February 27, 1996]
A BILL
To authorize appropriations for the Securities and Exchange
Commission, to reduce the fees collected under the Fed-
eral securities laws, 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 ‘‘Securities and Exchange
Commission Authorization Act of 1996’’.
SEC. 2. PURPOSES.
The purposes of this Act are—
(1) to authorize appropriations for the Securities
and Exchange Commission for fiscal year 1997; and
(2) to reduce over time the rates of fees charged
under the Federal securities laws.
SEC. 3. AUTHORIZATION OF APPROPRIATIONS.
Section 35 of the Securities Exchange Act of 1934 is
amended to read as follows:
‘‘SEC. 35. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
the functions, powers, and duties of the Commission
$317,000,000 for fiscal year 1997.’’.
SEC. 4. REGISTRATION FEES.
Section 6(b) of the Securities Act of 1933 (15 U.S.C.
77f(b)) is amended to read as follows:
‘‘(b) REGISTRATION FEE.—
‘‘(1) RECOVERY
OF
COST
OF
SERVICES.—The
Commission shall, in accordance with this subsection,
collect registration fees that are designed to recover
graph shall be deposited and credited as general reve-
nues of the Treasury.
‘‘(4) OFFSETTING COLLECTION FEES.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraphs (B) and (C), the rate determined
under this paragraph is a rate equal to the fol-
lowing amount for each $1,000,000 of the maxi-
mum aggregate price at which such securities are
proposed to be offered:
‘‘(i) $103 during fiscal year 1997;
‘‘(ii) $70 during fiscal year 1998;
‘‘(iii) $38 during fiscal year 1999;
‘‘(iv) $17 during fiscal year 2000; and
‘‘(v) $0 during fiscal year 2001 or any
succeeding fiscal year.
‘‘(B) LIMITATION; 
DEPOSIT.—Except as
provided in subparagraph (C), no amounts shall
be collected pursuant to this paragraph (4) for
any fiscal year except to the extent provided in
advance in appropriations acts. Fees collected
during any fiscal year pursuant to this para-
graph shall be deposited and credited as offset-
ting collections in accordance with appropria-
tions Acts.
‘‘(C) LAPSE OF APPROPRIATIONS.—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 off-
setting collections) under this paragraph at the
rate in effect during the preceding fiscal year,
until such a regular appropriation is enacted.’’.
SEC. 5. TRANSACTION FEES.
(a) AMENDMENT.—Section 31 of the Securities Ex-
change Act of 1934 (15 U.S.C. 78ee) is amended to read
as follows:
‘‘SEC. 31. TRANSACTION FEES.
‘‘(a) RECOVERY OF COST OF SERVICES.—The Commis-
sion shall, in accordance with this subsection, collect trans-
action fees that are designed to recover the costs to the Gov-
ernment of the supervision and regulation of securities mar-
kets and securities professionals, and costs related to such
supervision and regulation, including enforcement activi-
ties, policy and rulemaking activities, administration, legal
services, and international regulatory activities.
‘‘(b) EXCHANGE-TRADED
SECURITIES.—Every na-
tional securities exchange shall pay to the Commission a
fee at a rate equal to $33 for each $1,000,000 of the aggre-
gate dollar amount of sales of securities (other than bonds,
debentures, and other evidences of indebtedness) transacted
on such national securities exchange, except that for fiscal
year 2002 or any succeeding fiscal year such rate shall be
equal to $25 for each $1,000,000 of such aggregate dollar
amount of sales. Fees collected pursuant to this subsection
shall be deposited and collected as general revenue of the
Treasury.
‘‘(c) OFF-EXCHANGE-TRADES
OF EXCHANGE REG-
ISTERED SECURITIES.—Every national securities associa-
tion shall pay to the Commission a fee at a rate equal $33
for each $1,000,000 of the aggregate dollar amount of sales
transacted by or through any member of such association
otherwise than on a national securities exchange of securi-
ties registered on such an exchange (other than bonds, de-
bentures, and other evidences of indebtedness), except that
for fiscal year 2002 or any succeeding fiscal year such rate
shall be equal to $25 for each $1,000,000 of such aggregate
dollar amount of sales. Fees collected pursuant to this sub-
section shall be deposited and collected as general revenue
of the Treasury.
‘‘(d) OFF-EXCHANGE-TRADES
OF
LAST-SALE-RE-
PORTED SECURITIES.—
‘‘(1) COVERED TRANSACTIONS.—Every national
securities association shall pay to the Commission a
fee at a rate equal to the dollar amount determined
under paragraph (2) for each $1,000,000 of the aggre-
gate dollar amount of sales transacted by or through
any member of such association otherwise than on a
national securities exchange of securities (other than
bonds, debentures, and other evidences of indebted-
ness) subject to prompt last sale reporting pursuant
to the rules of the Commission or a registered na-
tional securities association, excluding any sales for
which a fee is paid under subsection (c).
‘‘(2) FEE RATES.—Except as provided in para-
graph (4), the dollar amount determined under this
paragraph is—
‘‘(A) $12 for fiscal year 1997;
‘‘(B) $14 for fiscal year 1998;
‘‘(C) $17 for fiscal year 1999;
‘‘(D) $18 for fiscal year 2000;
‘‘(E) $20 for fiscal year 2001; and
‘‘(F) $25 for fiscal year 2002 or for any
succeeding fiscal year.
‘‘(3) LIMITATION; DEPOSIT OF FEES.—Except as
provided in paragraph (4), no amounts shall be col-
lected pursuant to this subsection (d) for any fiscal
year beginning before October 1, 2001, except to the
extent provided in advance in appropriations Acts.
Fees collected during any such fiscal year pursuant to
this subsection shall be deposited and credited as off-
setting collections to the account providing appropria-
tions to the Commission, except that any amounts in
excess of the following amounts (and any amount col-
lected for fiscal years beginning on or after October
1, 2001) shall be deposited and credited as general
revenues of the Treasury:
‘‘(A) $20,000,000 for fiscal year 1997;
‘‘(B) $26,000,000 for fiscal year 1998;
‘‘(C) $32,000,000 for fiscal year 1999;
‘‘(D) $32,000,000 for fiscal year 2000;
‘‘(E) $32,000,000 for fiscal year 2001; and
‘‘(F) $0 for fiscal year 2002 and any suc-
ceeding fiscal year.
‘‘(4) LAPSE OF APPROPRIATIONS.—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 such a regular appropria-
tion is enacted.
‘‘(e) DATES FOR PAYMENT OF FEES.—The fees re-
quired by subsections (b), (c), and (d) of this section shall
be paid—
‘‘(1) on or before March 15, with respect to
transactions and sales occurring during the period be-
ginning on the preceding September 1 and ending at
the close of the preceding December 31; and
‘‘(2) on or before September 30, with respect to
transactions and sales occurring during the period be-
ginning on the preceding January 1 and ending at
the close of the preceding August 31.
‘‘(f) EXEMPTIONS.—The Commission, by rule, may ex-
empt any sale of securities or any class of sales of securities
from any fee imposed by this section, if the Commission
finds that such exemption is consistent with the public in-
terest, the equal regulation of markets and brokers and deal-
ers, and the development of a national market system.
‘‘(g) PUBLICATION.—The Commission shall publish in
the Federal Register notices of the fee rates applicable under
this section for each fiscal year.’’.
(b) EFFECTIVE DATES; TRANSITION.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendment made by subsection (a)
shall apply with respect to transactions in securities
that occur on or after January 1, 1997.
(2) OFF-EXCHANGE TRADES OF LAST SALE RE-
PORTED TRANSACTIONS.—The amendment made by
subsection (a) shall apply with respect to transactions
described in section 31(d)(1) of the Securities Ex-