datamatters24/research-document-archive huggingface dataset:
I
103D CONGRESS
1ST SESSION
H. R. 574
To amend the Securities Exchange Act of 1934 to impose additional fraud
detection and disclosure obligations on auditors of public companies.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 26, 1993
Mr. WYDEN (for himself, Mr. MARKEY, and Mr. DINGELL) introduced the
following bill; which was referred to the Committee on Energy and Commerce
A BILL
To amend the Securities Exchange Act of 1934 to impose
additional fraud detection and disclosure obligations on
auditors of public companies.
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 ‘‘Financial Fraud De-
tection and Disclosure Act’’.
SEC. 2. AMENDMENT TO SECURITIES EXCHANGE ACT OF
1934.
(a) AMENDMENTS TO THE SECURITIES EXCHANGE
ACT OF 1934.—The Securities Exchange Act of 1934 is
amended by inserting after section 10 (15 U.S.C. 78j) the
following new section:
‘‘FRAUD DETECTION AND DISCLOSURE
‘‘SEC. 10A. (a) AUDIT REQUIREMENTS.—Each audit
required pursuant to this title of an issuer’s financial
statements by an independent public accountant shall in-
clude, in accordance with methods prescribed by the Com-
mission, the following:
‘‘(1) procedures designed to provide reasonable
assurance of detecting illegal acts that would have a
direct and material effect on the determination of fi-
nancial statement amounts;
‘‘(2) procedures designed to identify related
party transactions which are material to the finan-
cial statements or otherwise require disclosure there-
in; and
‘‘(3) an evaluation of whether there is substan-
tial doubt about the issuer’s ability to continue as a
going concern over the ensuing fiscal year.
‘‘(b) REQUIRED
RESPONSE
TO
AUDIT
DISCOV-
ERIES.—
‘‘(1) INVESTIGATION AND REPORT TO MANAGE-
MENT.—If, in the course of conducting any audit
pursuant to this title to which subsection (a) applies,
the independent public accountant detects or other-
wise becomes aware of information indicating that
A BILL 
To amend title 18, United States Code, to provide for protec-
tion of maritime navigation and prevention of nuclear 
terrorism, and for other purposes. 
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PWALKER on DSK7TPTVN1PROD with BILLS
I
103D CONGRESS
1ST SESSION
H. R. 576
To amend title 39, United States Code, to provide the authority to extend
to essential civilian personnel serving in support of military operations
abroad, the same mailing privileges as are available to members of
the Armed Forces serving in the same area.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 26, 1993
Mr. MCCLOSKEY (for himself and Mrs. COLLINS of Michigan) introduced the
following bill; which was referred to the Committee on Post Office and
Civil Service
A BILL
To amend title 39, United States Code, to provide the au-
thority to extend to essential civilian personnel serving
in support of military operations abroad, the same mail-
ing privileges as are available to members of the Armed
Forces serving in the same area.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. AUTHORITY TO EXTEND MAILING PRIVILEGES.
Paragraph (1) of section 3401(a) of title 39, United
States Code, is amended—
(1) in the matter before subparagraph (A)—
104TH CONGRESS
2D SESSION
H. R. 1675
AN ACT
To amend the National Wildlife Refuge System Administra-
tion Act of 1966 to improve the management of the
National Wildlife Refuge System, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
(A) by inserting ‘‘an individual who is’’ be-
fore ‘‘a member’’; and
(B) by inserting ‘‘or a civilian, otherwise
authorized to use postal services at Armed
Forces installations, who holds a position or
performs 1 or more functions in support of
military operations, as designated by the mili-
tary theater commander,’’ after ‘‘section 101 of
title 10,’’; and
(2) in subparagraphs (A) and (B) by striking
‘‘the member’’ and inserting ‘‘such individual’’.
Æ
I
103D CONGRESS
1ST SESSION
H. R. 577
To amend the Internal Revenue Code of 1986 to increase and make perma-
nent the deduction for the health insurance costs of self-employed individ-
uals.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 26, 1993
Mr. BEREUTER introduced the following bill; which was referred to the
Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to increase
and make permanent the deduction for the health insur-
ance costs of self-employed individuals.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. DEDUCTION FOR THE HEALTH INSURANCE
COSTS OF SELF-EMPLOYED INDIVIDUALS IN-
CREASED AND MADE PERMANENT.
(a) DEDUCTION INCREASED.—Paragraph (1) of sec-
tion 162(l) of the Internal Revenue Code of 1986 (relating
to special rules for health insurance costs of self-employed
individuals) is amended by striking ‘‘25 percent’’ and in-
serting ‘‘50 percent’’.
(b) DEDUCTION MADE PERMANENT.—Subsection (l)
of section 162 of such Code is amended by striking para-
graph (6).
(c) REPEAL OF TRANSITION RULE.—Subsection (a)
of section 110 of the Tax Extension Act of 1991 is
amended by striking paragraph (2).
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1991.
Æ
221 
Schedule of Laws Repealed—Continued 
Act 
Section 
United States Code Former 
Classification 
Consolidated Natural Resources Act of 
2008 (Pub. L. 110–229) .....................
title III, subtitle A, § 301 ........
16 U.S.C. 1j.
Omnibus Public Land Management Act 
of 2009 (Pub. L. 111–11) ...................
title VII, subtitle B, § 7111(b) 
16 U.S.C. 469m(b).
title VII, subtitle B, § 7111(c) 
16 U.S.C. 469m(c).
title VII, subtitle D, § 7301(b), 
(c).
16 U.S.C. 469k–1)(b), (c).
title VII, subtitle D, § 7302(b) 
through (f).
16 U.S.C. 469n(b) through (f).
title VII, subtitle D, § 7303 ....
16 U.S.C. 469o.
Credit Card Accountability Responsi-
bility and Disclosure Act of 2009 
(Pub. L. 111–24) ................................
title V, § 512 (relating to 
National Park System).
16 U.S.C. 1a–7b (relating to 
National Park System).
Passed the House of Representatives April 23, 2013. 
Attest: 
Clerk. 
VerDate Nov 24 2008 
12:20 Apr 24, 2013
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CLERK
deemed to have occurred unless the application is ac-
companied by the fee required under this section.
‘‘(2) ONGOING
REGISTRANTS.—Each invest-
ment adviser whose registration is effective on the
last day of its fiscal year shall pay to the Commis-
sion the fee specified in subsection (c). Such pay-
ment shall be made not later than 90 days after the
end of its fiscal year, or at such other time as the
Commission, by rule, shall determine, unless its reg-
istration has been withdrawn, canceled, or revoked
prior to that date. No part of such fee shall be re-
funded to the investment adviser.
‘‘(c) COST-BASED SCHEDULE OF FEES.—For any
fiscal year for which fees are authorized to be collected
by an appropriation Act, the amount of fees due from in-
vestment advisers in accordance with paragraphs (1) and
(2) of subsection (b) shall be determined according to the
following schedule:
‘‘Assets under management
Fee due:
Less than $10,000,000 ............................................................
$300
$10,000,000 or more, but less than $25,000,000 ...................
$500
$25,000,000 or more, but less than $50,000,000 ...................
$1,000
$50,000,000 or more, but less than $100,000,000 .................
$2,500
$100,000,000 or more, but less than $250,000,000 ...............
$4,000
$250,000,000 or more, but less than $500,000,000 ...............
$5,000
$500,000,000 or more .............................................................
$7,000.
‘‘(d) SUSPENSION FOR FAILURE TO PAY.—The Com-
mission, by order, may suspend the registration of any in-
vestment adviser if it finds, after notice, that such invest-
ment adviser has failed to pay when due any fee required
by this section. The Commission shall reinstate such reg-
istration upon payment of the fee (and any penalty due),
if such suspension was based solely on the failure to pay
the fee.
‘‘(e) RULEMAKING.—The Commission may adopt
such rules as are necessary to carry out this section.
‘‘(f) DEFINITION
OF
ASSETS
UNDER
MANAGE-
MENT.—As used in this section, the term ‘assets under
management’ means the client assets with respect to which
an investment adviser provides continuous and regular su-
pervisory or management services.’’.
(b) EFFECTIVE DATE.—This section shall become ef-
fective upon the adoption by the Commission of imple-
menting rules, under section 203A(f) of the Investment
Advisers Act of 1940, as added by subsection (a).
SEC. 3. EXAMINATIONS AND SURVEYS.
The Investment Advisers Act of 1940 is amended by
inserting after section 222 (15 U.S.C. 80b–22) the follow-
ing new section:
‘‘EXAMINATIONS AND SURVEYS
‘‘SEC. 223. (a) PERIODIC
EXAMINATIONS.—The
Commission shall establish and periodically revise a sched-
ule for the regular examination of investment advisers.
Such schedule shall provide for more frequent examina-
tions of certain investment advisers based on factors that
the Commission determines increase the need for examina-
tion of those investment advisers, which shall include (at
a minimum) each of the following:
‘‘(1) the frequency of customer complaints;
‘‘(2) the risks associated with newly registered
investment advisers;
‘‘(3) custody of funds and the authority to exer-
cise investment discretion;
‘‘(4) the existence of deficiencies detected dur-
ing an examination under this title that may con-
tinue to present high risks to clients; and
‘‘(5) the receipt of commissions for the sale of
investments recommended to clients.
‘‘(b) SURVEYS OF UNREGISTERED PERSONS.—The
Commission shall, within 3 years after the date of enact-
ment of this section and periodically thereafter, provide
for the conduct of a survey to determine the extent of,
and reasons for, the failure of persons to register as re-
quired by this Act. The Commission shall, on the basis
of such survey results, establish objectives for the reduc-
tion or elimination of such failures and shall include in
annual reports to Congress (under section 23(b) of the
Securities Exchange Act of 1934) submitted after comple-
tion of the first survey, a statement of such objectives,
an evaluation of the success in attaining those objectives
during the preceding year, and such recommendations as
the Commission considers appropriate to assist in the at-
tainment of those objectives. If the survey identifies any
pattern of noncompliance with the registration require-
ments of the title and the rules thereunder, the Commis-
sion’s objectives shall include such rulemaking proceedings
as may be required to correct such noncompliance.
‘‘(c) PROVISIONS NOT LIMITATION.—The provisions
of this section shall not be construed to limit the authority
of the Commission to prescribe rules under this Act or
to conduct an examination or investigation at any time
or to institute proceedings under this title or any other
title.’’.
SEC. 4. DESIGNATION OF SELF-REGULATORY ORGANIZA-
TIONS.
The Investment Advisers Act of 1940 (15 U.S.C.
80b–1 et seq.) is amended by inserting after section 223
(as added by section 3 of this Act) the following new sec-
tion:
‘‘DESIGNATION OF SELF-REGULATORY ORGANIZATIONS
‘‘SEC. 224. (a) DESIGNATION TO CONDUCT EXAMI-
NATIONS.—The Commission, by rule, consistent with the
public interest, the protection of investors, and the pur-
poses of this title, may designate one or more self-regu-
latory organizations registered with the Commission under
section 6 or 15A of the Securities Exchange Act of 1934,
to conduct periodic examinations of its members, and af-
filiates of members, that are registered or required to reg-
ister under this title, to determine compliance with appli-
cable provisions of this title and the rules and regulations
thereunder. Such rule shall specify the minimum scope
and frequency for such examinations and shall, to the ex-
tent consistent with the protection of investors, be de-
signed to avoid unnecessary regulatory duplication or
undue regulatory burdens. Such self-regulatory organiza-
tion may discipline such members and affiliates of mem-
bers for violations of the applicable provisions of this title
and the rules and regulations thereunder pursuant to the
standards and procedures set forth in sections 6, 15A, and
19 of the Securities Exchange Act of 1934. The money
penalties imposed by a self-regulatory organization for vio-
lations of this title shall not exceed those contained in sec-
tion 203(i).
‘‘(b) LIMITATIONS.—
‘‘(1) PRIMARY
BUSINESS
LIMITATION.—The
Commission shall not exercise the designation au-
thority contained in subsection (a) for members or
affiliates of members if the primary business of the
member and its affiliates is investment advisory ac-
tivities.
‘‘(2) LIMITATION
WITH
RESPECT
TO
AFFILI-
ATES OF MEMBERS.—The Commission shall not ex-
ercise the authority contained in subsection (a) for
an affiliate of a member if—
‘‘(A) the primary business of the affiliate
is investment advisory activities;
‘‘(B) the affiliate is an affiliate of the
member solely as a result of the adviser’s (or an
associated person of the adviser’s) registration
with the member as a registered representative;
and
‘‘(C) the affiliate is a registered represent-
ative of the member solely to enable the adviser
to execute transactions that are incidental to
the investment adviser’s primary business;
unless the Commission determines, in accordance
with such other criteria as the Commission estab-
lishes by rule, that such exercise of designation au-
thority is consistent with the public interest, the pro-
tection of investors, the purposes of this title, and
the objectives of the Commission’s investment ad-
viser examination program.
‘‘(3) LIMITATION WITH RESPECT TO SAVINGS
ASSOCIATION AFFILIATES OF MEMBERS.—The Com-
mission shall not exercise the authority contained in
subsection (a) for an affiliate of a member if the af-
filiate is a savings association, as such term is de-
fined in section 3(b)(1) of the Federal Deposit In-
surance Act (12 U.S.C. 1813(b)(1)).
‘‘(4) DEFINITIONAL RULES.—For purposes of
this subsection, the Commission may, by rule, estab-
lish criteria for defining the terms ‘primary business’
and ‘incidental to the investment adviser’s primary
business’.
‘‘(c) AUTHORITY TO IMPOSE FEES.—
‘‘(1) IN GENERAL.—Any self-regulatory organi-
zation designated by the Commission to perform the
examinations specified in subsection (a) shall have
the authority to collect fees in accordance with this
subsection.
‘‘(2) LIMITATION.—The total fee paid by a reg-
istered investment adviser under this subsection
shall not exceed an amount determined in accord-
ance with rules prescribed by the Commission. Such
rules shall require that the fees collected by a self-
regulatory organization under this subsection—
‘‘(A) cover only the costs of the self-regu-
latory organization’s expenses for examinations
conducted pursuant to subsection (a);
‘‘(B) as to any investment adviser, bear a
reasonable relationship to the costs of conduct-
ing an examination of that adviser pursuant to
subsection (a); and
‘‘(C) not exceed such portion of the fee au-
thorized under section 203A as the Commission
determines is allocable to the Commission’s ex-
penses for conducting such an examination.
‘‘(3) REDUCTION OF SECTION 203A FEES.—The
amount of any fee that a registered investment ad-
viser is required to pay under section 203A with re-
spect to any fiscal year shall be reduced by the
amount paid to a self-regulatory organization in ac-
cordance with this subsection with respect to such
fiscal year.
‘‘(d) EFFECTIVE DATE OF RULE.—A rule prescribed
by the Commission under this section shall not be effective
until 90 days after the date on which the Commission sub-
mits to each House of Congress a report—
‘‘(1) containing the text of the proposed rule
and the reasons therefor;
‘‘(2) describing the procedures to be used to co-
ordinate the collection of fees by the Commission
under section 203A and by a self-regulatory organi-
zation under the rule; and
‘‘(3) containing such other information as may
be necessary to describe the implementation and en-
forcement of the rule.
‘‘(e) DEFINITION.—For purposes of this section, the
term ‘affiliate’ shall mean any person directly or indirectly
controlling, controlled by, or under common control with
a member.’’.
SEC. 5. SUITABILITY AND OTHER ADVISER OBLIGATIONS.
(a) AMENDMENT.—Section 206 of the Investment
Advisers Act of 1940 (15 U.S.C. 80b–6) is amended to
read as follows:
‘‘PROHIBITED TRANSACTIONS BY INVESTMENT ADVISERS
‘‘SEC. 206. (a) PROHIBITED CONDUCT.—It shall be
unlawful for any investment adviser or any person associ-
ated with an investment adviser, by use of the mails or
any means or instrumentality of interstate commerce, di-
rectly or indirectly—
‘‘(1) to employ any device, scheme, or artifice to
defraud any client or prospective client;
‘‘(2) to engage in any transaction, practice, or
course of business which operates as a fraud or de-
ceit upon any client or prospective client;
‘‘(3) acting as principal for his own account,
knowingly to sell any security to or purchase any se-
curity from a client, or acting as broker for a person
other than such client, knowingly to effect any sale
or purchase of any security for the account of such
client, without disclosing to such client in writing be-
fore the completion of such transaction the capacity
in which he is acting and obtaining the consent of
the client to such transaction;
‘‘(4) to engage in any act, practice, or course of
business which is fraudulent, deceptive, or manipula-
tive;
‘‘(5) to provide investment advice to any client,
other than in connection with impersonal advisory
services, unless the adviser—
‘‘(A) prior to providing any investment ad-
vice, and as appropriate thereafter, makes a
reasonable inquiry into the client’s financial sit-
uation, investment experience, and investment
objectives;
‘‘(B) reasonably determines that the in-
vestment advice is suitable for the client; and
‘‘(C) maintains reasonable records, in ac-
cordance with such rules as the Commission
shall prescribe, of the information obtained
from the inquiries the adviser made in comply-
ing with this paragraph; or
‘‘(6) to guarantee a client that a specific result
will be achieved as a result of the advisory services
provided by the investment adviser.
‘‘(b) EXEMPTIONS AND SPECIAL RULES.—
‘‘(1) EXEMPTION.—The prohibitions of sub-
section (a)(3) shall not apply to any transaction with
a customer of a broker or dealer if such broker or
dealer is not acting as an investment adviser in rela-
tion to such transaction.
‘‘(2) 
AUTHORITY
TO
DEFINE
AND
PRE-
SCRIBE.—The Commission shall, for the purposes of
subsection (a)(4), by rules define, and prescribe
means reasonably designed to prevent, such acts,
practices, and courses of business as are fraudulent,
deceptive, or manipulative.
‘‘(3) DEFINITION
OF
IMPERSONAL
ADVISORY
SERVICES.—As used in subsection (a)(5), the term
‘impersonal advisory services’ means any investment
advisory services provided—
‘‘(A) by means of written material or oral
statements which do not purport to meet the
objectives or needs of specific individuals or ac-
counts;
‘‘(B) through the issuance of statistical in-
formation containing no expression of opinion
as to the investment merits of a particular secu-
rity; or
‘‘(C) by any combination of the foregoing
services.’’.
(b) RULEMAKING REQUIRED.—The Commission shall
prescribe rules for purposes of paragraph (5)(C) of section
206(a) of the Investment Advisers Act of 1940 (as added
by subsection (a) of this section) within one year after the
date of enactment of this Act.
SEC. 6. ADDITIONAL DISCLOSURE OBLIGATIONS OF IN-
VESTMENT ADVISERS.
(a) ADDITIONAL OBLIGATIONS.—Section 204 of the
Investment Advisers Act of 1940 (15 U.S.C. 80b–4) is
amended—
(1) by striking the heading of such section and
inserting the following:
‘‘PERIODIC REPORTS AND OTHER DISCLOSURE
REQUIREMENTS’’;
(2) by inserting ‘‘(a) PERIODIC
AND OTHER
REPORTS.—’’ after ‘‘SEC. 204.’’; and
(3) by adding at the end the following new sub-
sections:
‘‘(b) BROCHURE REQUIRED.—
‘‘(1) IN
GENERAL.—Each person registered
under section 203 of this title shall disseminate to
each client or prospective client a document disclos-
ing material facts concerning matters listed in para-
graphs (2) and (3) and such other matters as the
Commission shall prescribe. In order to provide for
timely and effective disclosure of such facts and
matters to clients, the Commission shall by rule pre-
scribe the format of the document and the timing of
its dissemination.
‘‘(2) CONTENTS OF BROCHURE.—The document
required by paragraph (1) shall include information
concerning—
‘‘(A) the education and business back-
ground of such person and of any associated
person providing significant investment advisory
services to the client,
‘‘(B) compensation arrangements between
the client and the investment adviser,
‘‘(C) the nature of services offered,
‘‘(D) business practices,
‘‘(E) methods for obtaining information on
the disciplinary history and registration of the
investment adviser and persons associated with
the investment adviser, and
‘‘(F) conflicts of interest which could rea-
sonably be expected to impair the rendering of
disinterested advice.
the Commission to receive fees, applications, reports,
or notices pursuant to paragraph (1) to—
‘‘(A) establish and maintain a toll-free tele-
phone listing to receive inquiries regarding the
disciplinary and other information involving in-
vestment advisers and persons associated with
investment advisers; and
‘‘(B) respond promptly to such inquiries in
writing.
Such designated entity may charge persons, other
than individual investors, reasonable fees for the
cost of providing written responses to inquiries. Such
designated entity shall not have any liability to any
person for any actions taken or omitted in good
faith under this paragraph.’’.
(b) RULEMAKING REQUIRED.—The Commission shall
prescribe rules for purposes of subsections (b), (c), and
(d) of section 204 of the Investment Advisers Act of 1940
(as added by subsection (a) of this section) within one year
after the date of enactment of this Act.
SEC. 7. BOND REQUIREMENT.
Section 208 of the Investment Advisers Act of 1940
(15 U.S.C. 80b–8) is amended by adding at the end the
following:
‘‘(e) BOND REQUIREMENT.—
‘‘(1) IN GENERAL.—The Commission, by rules
for the protection of investors, shall require any in-
vestment adviser registered under section 203 who—
‘‘(A) is authorized to exercise investment
discretion, as defined in section 3(a)(35) of the
Securities Exchange Act of 1934, with respect
to an account,
‘‘(B) has access to the securities or funds
of a client, or
‘‘(C) is an investment adviser of an invest-
ment company, as defined in section 2(a)(20) of
the Investment Company Act of 1940,
to obtain a bond from a reputable fidelity insurance
company against larceny and embezzlement in such
reasonable amounts and covering such officers, part-
ners, directors, and employees of the investment ad-
viser as the Commission may prescribe.
‘‘(2) CONSIDERATIONS
IN
RULEMAKING.—In
implementing paragraph (1), the Commission shall
consider—
‘‘(A) the degree of risk to client assets that
is involved;
‘‘(B) the cost and availability of fidelity
bonds;