IB
Union Calendar No. 596
106TH CONGRESS
2D SESSION
H. R. 2441
[Report No. 106–1034]
To amend the Securities Exchange Act of 1934 to reduce fees on securities
transactions.
IN THE HOUSE OF REPRESENTATIVES
JULY 1, 1999
Mr. LAZIO (for himself, Mr. REYNOLDS, Mr. TOWNS, Mr. COOK, Mr. FORBES,
Mr. BILBRAY, Mr. LARGENT, Mrs. KELLY, Mr. BAKER, Mr. SWEENEY,
Mr. ENGEL, Mr. CROWLEY, Mr. SESSIONS, Mr. BARTON of Texas, Mr.
SCHAFFER, Mr. DEAL of Georgia, Mr. RILEY, Mr. GILLMOR, Mrs.
MALONEY of New York, Mr. BRYANT, Mr. DELAY, Mr. SHAYS, Mr.
MEEKS of New York, Mr. PALLONE, Mr. BURR of North Carolina, Mr.
ARMEY, Mr. TAUZIN, and Mr. HALL of Texas) introduced the following
bill; which was referred to the Committee on Commerce
DECEMBER 15, 2000
Additional sponsors: Mr. HILL of Montana, Mr. BUYER, Mr. CUNNINGHAM,
Mr. GEKAS, Mr. CALVERT, Mr. UPTON, Mr. COX, Mr. OWENS, Mr. BAR-
RETT of Wisconsin, Mr. BARR of Georgia, Mr. SAM JOHNSON of Texas,
Mr. COBURN, Mr. RUSH, and Mr. FRANKS of New Jersey
DECEMBER 15, 2000
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
such appropriations Act may provide that the fee under
this section shall be increased, with all such increased
amounts deposited and credited as offsetting collections
to the account providing appropriations to the Commis-
sion.’’.
SEC. 3. REVISION OF SECURITIES TRANSACTION FEE PRO-
VISIONS.
(a) AMENDMENTS.—Section 31 of the Securities Ex-
change Act of 1934 (15 U.S.C. 78ee) is amended—
(1) in the last sentence of subsection (b), by in-
serting before the period the following: ‘‘, except
that 10 percent of such fees shall be deposited and
credited as offsetting collections to the account pro-
viding appropriations to the Commission’’;
(2) in the last sentence of subsection (c), by in-
serting before the period the following: ‘‘, except
that 10 percent of such fees shall be deposited and
credited as offsetting collections to the account pro-
viding appropriations to the Commission’’; and
(3) in subsection (d), by striking paragraphs
(2) and (3) and inserting the following:
‘‘(2) DEPOSIT OF FEES.—Fees collected pursu-
ant to this subsection shall be deposited and col-
lected as general revenue of the Treasury, except
that 10 percent of such fees shall be deposited and
credited as offsetting collections to the account pro-
viding appropriations to the Commission.’’.
SEC. 4. EFFECTIVE DATE.
The amendments made by this Act—
(1) shall take effect on October 1, 1999; and
(2) shall cease to be effective on October 1,
2007.
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Fairness in Securities
Transactions Act’’.
SEC. 2. FEE REDUCTION.
(a) REDUCTIONS OF FEES.—Section 31 of the Securi-
ties Exchange Act of 1934 (15 U.S.C. 78ee) is amended by
striking ‘‘1⁄300 of one percent’’ each place it appears and
inserting ‘‘1⁄500 of one percent’’.
(b) PREVENTION OF SHORTFALLS IN COMMISSION AP-
PROPRIATIONS.—Section 31 of the Securities Exchange Act
of 1934 is further amended by adding at the end the fol-
lowing new subsection:
‘‘(h) INSUFFICIENT FEES.—In any year in which the
total amount of fees collected under this section and section
6(b) of the Securities Act of 1933 (including any balance
in the account providing appropriations to the Commis-
sion) are insufficient to provide for the Commission’s budg-
et authority as provided by an appropriation Act, such ap-
propriation Act may provide that the fee under this section
shall be increased, with all such increased amounts depos-
ited and credited as offsetting collections to the account pro-
viding appropriations to the Commission.’’.
SEC. 3. REVISION OF SECURITIES TRANSACTION FEE PRO-
VISIONS.
Section 31 of the Securities Exchange Act of 1934 (15
U.S.C. 78ee) is further amended—
(1) in subsection (b), by striking the last sen-
tence;
(2) in subsection (c), by striking the last sen-
tence;
(3) in subsection (d)—
(A) by striking paragraphs (2) and (3); and
(B) by striking the following:
‘‘(d) OFF-EXCHANGE
TRADES
OF
LAST-SALE-RE-
PORTED SECURITIES.—
‘‘(1) COVERED
TRANSACTIONS.—Each national
securities’’ and adding the following:
‘‘(d) OFF-EXCHANGE
TRADES
OF
LAST-SALE-RE-
PORTED SECURITIES.—Each national securities’’; and
(4) by adding after subsection (h) (as added by
section 2(b) of this Act) the following new subsections:
‘‘(i) DEPOSIT OF FEES.—
‘‘(1) GENERAL REVENUES.—Fees collected pursu-
ant to subsections (b), (c), and (d) shall be deposited
and collected as general revenue of the Treasury, ex-
cept that the amount deposited and collected as gen-
eral revenues for any fiscal year shall not exceed the
baseline amount for such fiscal year.
‘‘(2) OFFSETTING COLLECTIONS.—Fees collected
pursuant subsections (b), (c) and (d) for any fiscal
year in excess of the baseline amount for such fiscal
year—
‘‘(A) shall not be collected or spent for any
fiscal year except to the extent provided in ad-
vance in appropriation Acts; and
‘‘(B) shall be deposited and credited as off-
setting collections to the account providing ap-
propriations to the Commission.
‘‘(3) BASELINE AMOUNT.—For purposes of this
subsection, the baseline amount for any fiscal year is
the amount projected by the Congressional Budget Of-
fice pursuant to section 257 the Balanced Budget and
Emergency Deficit Control Act of 1985, in its most
recently published report of its baseline projection be-
fore the date of enactment of the Fairness in Securi-
ties Transactions Act, to be collected and deposited as
general revenues pursuant to subsections (b) and (c)
of this section as in effect on the day before the date
of enactment of such Act.
‘‘(j) 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 fees under subsections (b), (c), and (d) at the rate in
effect during the preceding fiscal year, until such a regular
appropriation is enacted.’’.
SEC. 4. EFFECTIVE DATE.
The amendments made by this Act—
(1) shall take effect on October 1, 2000; and
(2) shall cease to be effective on October 1, 2006.
Union Calendar No. 596
106TH CONGRESS
2D SESSION
H. R. 2441
[Report No. 106–1034]
A BILL
To amend the Securities Exchange Act of 1934 to
reduce fees on securities transactions.
DECEMBER 15, 2000
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union,
and ordered to be printed