H. R. 1088
One Hundred Seventh Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Wednesday,
the third day of January, two thousand and one
An Act
To amend the Securities Exchange Act of 1934 to reduce fees collected by the
Securities and Exchange Commission, and for other purposes.
Be it enacted by the Senate and House of Representatives 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 ‘‘$15 per $1,000,000’’;
(2) by striking ‘‘and security futures products’’ each place
it appears in such subsections and inserting ‘‘security futures
products, and options on securities indexes (excluding a narrow-
based security index)’’;
(3) 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;
(4) in paragraph (1) of subsection (d), by striking ‘‘, except
that’’ and all that follows through the end of such paragraph
and inserting a period;
(5) in subsection (e), by striking ‘‘$0.02’’ and inserting
‘‘$0.009’’; and
(6) by adding at the end the following new subsection:
‘‘(i) PRO RATA APPLICATION.—The rates per $1,000,000 required
by this section shall be applied pro rata to amounts and balances
of less than $1,000,000.’’.
SEC. 3. REVISION OF SECURITIES TRANSACTION FEE PROVISIONS;
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 sub-
section (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:
H. R. 1088—2
‘‘(d) OFF-EXCHANGE TRADES OF LAST-SALE-REPORTED SECURI-
TIES.—
‘‘(1) COVERED TRANSACTIONS.—Each national securities’’
and inserting the following:
‘‘(c) OFF-EXCHANGE TRADES
OF EXCHANGE REGISTERED
AND
LAST-SALE-REPORTED SECURITIES.—Subject to subsection (j), each
national securities’’;
(C) by inserting ‘‘registered on a national securities
exchange or’’ after ‘‘narrow-based security index))’’ (as
added by section 2(2)); 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 sub-
section 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 PAY-
MENTS.—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 subsection:
‘‘(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 offsetting collec-
tions to the account providing appropriations 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 appropriation 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 fiscal years
2003 through 2011, the Commission shall by order adjust each
of the rates applicable under subsections (b) and (c) for such
fiscal year to a uniform adjusted rate that, when applied to
the baseline estimate of the aggregate dollar amount of sales
for such fiscal year, is reasonably likely to produce aggregate
fee collections under this section (including assessments col-
lected under subsection (d)) that are equal to the target offset-
ting collection amount for such fiscal year.
‘‘(2) MID-YEAR ADJUSTMENT.—For each of the fiscal years
2002 through 2011, the Commission shall determine, by March
1 of such fiscal year, whether, based on the actual aggregate
dollar volume of sales during the first 5 months of such fiscal
year, the baseline estimate of the aggregate dollar volume
H. R. 1088—3
of sales used under paragraph (1) for such fiscal year (or
$48,800,000,000,000 in the case of fiscal year 2002) is reason-
ably likely to be 10 percent (or more) greater or less than
the actual aggregate dollar volume of sales for such fiscal
year. If the Commission so determines, the Commission shall
by order, no later than such March 1, adjust each of the
rates applicable under subsections (b) and (c) for such fiscal
year to a uniform adjusted rate that, when applied to the
revised estimate of the aggregate dollar amount of sales for
the remainder of such fiscal year, is reasonably likely to produce
aggregate fee collections under this section (including fees col-
lected during such 5-month period and assessments collected
under subsection (d)) that are equal to the target offsetting
collection amount for such fiscal year. In making such revised
estimate, the Commission shall, after consultation with the
Congressional Budget Office and the Office of Management
and Budget, use the same methodology required by subsection
(l)(2).
‘‘(3) FINAL RATE ADJUSTMENT.—For fiscal year 2012 and
all of the succeeding fiscal years, the Commission shall by
order adjust each of the rates applicable under subsections
(b) and (c) for all of such fiscal years to a uniform adjusted
rate that, when applied to the baseline estimate of the aggre-
gate 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 collected under sub-
section (d)) equal to the target offsetting collection amount
for fiscal year 2011.
‘‘(4) REVIEW
AND
EFFECTIVE
DATE.—In exercising its
authority under this subsection, the Commission shall not be
required to comply with the provisions of section 553 of title
5, United States Code. An adjusted rate prescribed under para-
graph (1), (2), or (3) 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) thirty days after the date on which a regular
appropriation to the Commission for such fiscal year
is enacted;
‘‘(B) an adjusted rate prescribed under paragraph (2)
shall take effect on April 1 of the fiscal year to which
such rate applies; and
‘‘(C) an adjusted rate prescribed under paragraph (3)
shall take effect on the later of—
‘‘(i) the first day of fiscal year 2012; or
‘‘(ii) thirty 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 collect (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.
H. R. 1088—4
‘‘(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 determined according to the following table:
Target offsetting
‘‘Fiscal year:
collection amount
2002 ..........................................................................................
$732,000,000
2003 ..........................................................................................
$849,000,000
2004 .......................................................................................... $1,028,000,000
2005 .......................................................................................... $1,220,000,000
2006 .......................................................................................... $1,435,000,000
2007 ..........................................................................................
$881,000,000
2008 ..........................................................................................
$892,000,000
2009 .......................................................................................... $1,023,000,000
2010 .......................................................................................... $1,161,000,000
2011 .......................................................................................... $1,321,000,000
‘‘(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 esti-
mate of the aggregate dollar amount of sales of securities
(other than bonds, debentures, other evidences of indebtedness,
security futures products, and options on securities indexes
(excluding a narrow-based security index)) to be transacted
on each national securities 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 consultation with the
Congressional Budget Office and the Office of Management
and Budget, using the methodology required for making projec-
tions 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
projections 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 reg-
istration statement, the applicant shall pay to the Commission
a fee at a rate that shall be equal to $92 per $1,000,000
of the maximum aggregate 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 pursu-
ant 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 offsetting collec-
tions to the account providing appropriations 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 appropriation Acts.
H. R. 1088—5
‘‘(4) GENERAL
REVENUES
PROHIBITED.—No fees collected
pursuant to this subsection for fiscal year 2002 or any suc-
ceeding fiscal year shall be deposited and credited as general
revenue of the Treasury.
‘‘(5) ANNUAL ADJUSTMENT.—For each of the fiscal 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 Commission 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 aggregate maximum offering prices for fiscal year 2012,
is reasonably likely to produce aggregate fee collections 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 applied pro rata to amounts
and balances of less than $1,000,000.
‘‘(8) REVIEW
AND
EFFECTIVE
DATE.—In exercising its
authority under this subsection, the Commission shall not be
required to comply with the provisions of section 553 of title
5, United States Code. An adjusted rate prescribed under para-
graph (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) five 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) five 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 applicable under this sub-
section 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 estimates
or projections on which such rate is based.
‘‘(11) DEFINITIONS.—For purposes of this subsection:
H. R. 1088—6
‘‘(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 ...................................................................................
$377,000,000
2003 ...................................................................................
$435,000,000
2004 ...................................................................................
$467,000,000
2005 ...................................................................................
$570,000,000
2006 ...................................................................................
$689,000,000
2007 ...................................................................................
$214,000,000
2008 ...................................................................................
$234,000,000
2009 ...................................................................................
$284,000,000
2010 ...................................................................................
$334,000,000
2011 ...................................................................................
$394,000,000
‘‘(B) BASELINE ESTIMATE OF THE AGGREGATE 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 pursuant to registra-
tion statements filed with the Commission 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 projections pursuant to section 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 $92 per $1,000,000 of the value of
securities proposed to be purchased’’;
(2) by inserting after paragraph (3) the following new para-
graphs:
‘‘(4) OFFSETTING COLLECTIONS.—Fees collected pursuant to
this subsection for any fiscal year shall be deposited and cred-
ited as offsetting collections to the account providing appropria-
tions to the Commission, 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 col-
lected 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 fiscal 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 (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 Commission 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
H. R. 1088—7
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 applied pro rata to amounts
and balances of less than $1,000,000.
‘‘(8) REVIEW
AND
EFFECTIVE
DATE.—In exercising its
authority under this subsection, the Commission shall not be
required to comply with the provisions of section 553 of title
5, United States Code. An adjusted rate prescribed under para-
graph (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) five 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) five 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 sub-
section for each fiscal year is published pursuant to section
6(b)(10) of the Securities Act of 1933.’’.
SEC. 6. FEES FOR PROXY SOLICITATIONS AND STATEMENTS IN COR-
PORATE CONTROL TRANSACTIONS.
Section 14(g) of the Securities Exchange Act of 1934 (15 U.S.C.
78n(g)) 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 $92 per $1,000,000 of’’;
(2) by redesignating paragraph (4) as paragraph (11); and
(3) by inserting after paragraph (3) the following new para-
graphs:
‘‘(4) OFFSETTING COLLECTIONS.—Fees collected pursuant to
this subsection for any fiscal year shall be deposited and cred-
ited as offsetting collections to the account providing appropria-
tions to the Commission, 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 col-
lected 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 fiscal years
2003 through 2011, the Commission shall by order adjust each
H. R. 1088—8
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 Securi-
ties Act of 1933 for such fiscal year.
‘‘(6) FINAL RATE ADJUSTMENT.—For fiscal year 2012 and
all of the succeeding fiscal years, the Commission shall by
order adjust each of the rates required 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 applied pro rata to amounts
and balances of less than $1,000,000.
‘‘(8) REVIEW
AND
EFFECTIVE
DATE.—In exercising its
authority under this subsection, the Commission shall not be
required to comply with the provisions of section 553 of title
5, United States Code. An adjusted rate prescribed under para-
graph (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) five 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) five 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 sub-
section for each fiscal year is published pursuant 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 ‘‘Commission.’’.
SEC. 8. COMPARABILITY PROVISIONS.
(a) COMMISSION DEMONSTRATION PROJECT.—Subpart C of part
III of title 5, United States Code, is amended by adding at the
end the following:
H. R. 1088—9
‘‘CHAPTER 48—AGENCY PERSONNEL DEMONSTRATION
PROJECT
‘‘Sec.
‘‘4801. Nonapplicability of chapter 47.
‘‘4802. Securities and Exchange Commission.
‘‘§ 4801. Nonapplicability of chapter 47
‘‘Chapter 47 shall not apply to this chapter.
‘‘§ 4802. Securities and Exchange Commission
‘‘(a) In this section, the term ‘Commission’ means the Securities
and Exchange Commission.
‘‘(b) The Commission may appoint and fix the compensation
of such officers, attorneys, economists, examiners, and other
employees as may be necessary for carrying out its functions under
the securities laws as defined under section 3 of the Securities
Exchange Act of 1934 (15 U.S.C. 78c).
‘‘(c) 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.
‘‘(d) The Commission may provide additional compensation and
benefits to employees of the Commission if the same type of com-
pensation or benefits are then being provided by any agency referred
to under section 1206 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 1833b) or, if
not then being provided, could be provided by such an agency
under applicable provisions of law, rule, or regulation. In setting
and adjusting the total amount of compensation and benefits for
employees, the Commission shall consult with, and seek to maintain
comparability with, the agencies referred to under section 1206
of the Financial Institutions Reform, Recovery, and Enforcement
Act of 1989 (12 U.S.C. 1833b).
‘‘(e) The Commission shall consult with the Office of Personnel
Management in the implementation of this section.
‘‘(f) This section shall be administered consistent with merit
system principles.’’.
(b) EMPLOYEES REPRESENTED BY LABOR ORGANIZATIONS.—To
the extent that any employee of the Securities and Exchange
Commission is represented by a labor organization with exclusive
recognition in accordance with chapter 71 of title 5, United States
Code, no reduction in base pay of such employee shall be made
by reason of enactment of this section (including the amendments
made by this section).
(c) IMPLEMENTATION PLAN AND REPORT.—
(1) IMPLEMENTATION PLAN.—
(A) IN
GENERAL.—The Securities and Exchange
Commission shall develop a plan to implement section 4802
of title 5, United States Code, as added by this section.
(B) INCLUSION
IN
ANNUAL
PERFORMANCE
PLAN
AND
REPORT.—The Securities and Exchange Commission shall
include—
(i) the plan developed under this paragraph in
the annual program performance plan submitted under
section 1115 of title 31, United States Code; and
H. R. 1088—10
(ii) the effects of implementing the plan developed
under this paragraph in the annual program perform-
ance report submitted under section 1116 of title 31,
United States Code.
(2) IMPLEMENTATION REPORT.—
(A) IN GENERAL.—Before implementing the plan devel-
oped under paragraph (1), the Securities and Exchange
Commission shall submit a report to the Committee on
Governmental Affairs and the Committee on Banking,
Housing, and Urban Affairs of the Senate, the Committee
on Government Reform and the Committee on Financial
Services of the House of Representatives, and the Office
of Personnel Management on the details of the plan.
(B) CONTENT.—The report under this paragraph shall
include—
(i) evidence and supporting documentation justi-
fying the plan; and
(ii) budgeting projections on costs and benefits
resulting from the plan.
(d) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) AMENDMENTS TO TITLE 5, UNITED STATES CODE.—
(A) The table of chapters for part III of title 5, United
States Code, is amended by adding at the end of subpart
C the following:
‘‘48. Agency Personnel Demonstration Project ..............................................
4801.’’.
(B) Section 3132(a)(1) of title 5, United States Code,
is amended—
(i) in subparagraph (C), by striking ‘‘or’’ after the
semicolon;
(ii) in subparagraph (D), by inserting ‘‘or’’ after
the semicolon; and
(iii) by adding at the end the following:
‘‘(E) the Securities and Exchange Commission;’’.
(C) Section 5373(a) of title 5, United States Code, is
amended—
(i) in paragraph (2), by striking ‘‘or’’ after the semi-
colon;
(ii) in paragraph (3), by striking the period and
inserting ‘‘; or’’; and
(iii) by adding at the end the following:
‘‘(4) section 4802.’’.
(2) AMENDMENT TO SECURITIES EXCHANGE ACT OF 1934.—
Section 4(b) of the Securities Exchange Act of 1934 (15 U.S.C.
78d(b)) is amended by striking paragraphs (1) and (2) and
inserting the following:
‘‘(1) APPOINTMENT AND COMPENSATION.—The Commission
shall appoint and compensate officers, attorneys, economists,
examiners, and other employees in accordance with section
4802 of title 5, United States Code.
‘‘(2) REPORTING
OF
INFORMATION.—In establishing and
adjusting schedules of compensation and benefits for officers,
attorneys, economists, examiners, and other employees of the
Commission under applicable provisions of law, the Commission
shall inform the heads of the agencies referred to under section
1206 of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (12 U.S.C. 1833b) and Congress of
H. R. 1088—11
such compensation and benefits and shall seek to maintain
comparability with such agencies regarding compensation and
benefits.’’.
(3) AMENDMENT TO FIRREA OF 1989.—Section 1206 of the
Financial Institutions Reform, Recovery, and Enforcement Act
of 1989 (12 U.S.C. 1833b) is amended by striking ‘‘the Thrift
Depositor Protection Oversight Board of the Resolution Trust
Corporation’’.
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 reduc-
tions 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 the various elements of the securities industry
directly and indirectly benefiting from the fee reductions,
including purchasers and sellers of securities, members of
national securities exchanges, issuers, broker-dealers, under-
writers, participants in investment companies, retirement pro-
grams, and others;
(2) consider the impact on different types of investors,
such as individual equity holders, individual investment com-
pany shareholders, businesses, and other types of investors;
(3) include in the interpretation of the term ‘‘investor’’
shareholders of entities subject to the fee reductions; and
(4) consider the economic benefits to investors flowing from
the fee reductions to include such factors as market efficiency,
expansion of investment opportunities, and enhanced liquidity
and capital formation.
(c) REPORT TO CONGRESS.—Not later than 2 years after the
date of the enactment of this Act, the Securities and Exchange
Commission shall submit to the Congress the report prepared by
the Office on the findings of the study conducted under subsection
(a).
SEC. 10. STUDY OF CONVERSION TO SELF-FUNDING.
(a) GAO STUDY REQUIRED.—The Comptroller General shall con-
duct a study of the impact, implications, and consequences of con-
verting the Securities and Exchange Commission to a self-funded
basis. Such study shall include analysis of the following issues:
(1) SEC OPERATIONS.—The impact of such conversion on
the Commission’s operations, including staff quality, recruit-
ment, and retention.
(2) CONGRESSIONAL
OVERSIGHT.—The implications for
congressional oversight of the Commission, including whether
imposing annual expenditure limitations would be beneficial
to such oversight.
(3) FEES.—The likely consequences of the conversion on
the rates, collection procedures, and predictability of fees col-
lected by the Commission.
(4) APPROPRIATIONS.—The methods by which the conversion
may be accomplished without reducing the availability of offset-
ting collections for appropriations.
(5) OTHER MATTERS.—Such other impacts, implications, and
consequences as the Comptroller General may consider relevant
H. R. 1088—12
to congressional consideration of the question of such conver-
sion.
(b) SUBMISSION OF REPORT.—The Comptroller General shall
submit to the Committees on Financial Services and Government
Reform of the House of Representatives and the Committees on
Banking, Housing, and Urban Affairs and Governmental Affairs
of the Senate a report on the study required by subsection (a)
no later than 180 days after the date of the enactment of this
Act.
(c) DEFINITION.—For the purposes of this section, the term
‘‘self-funded basis’’ means that—
(1) an agency is authorized to deposit the receipts of its
collections in the Treasury of the United States, or in a deposi-
tory institution, but such deposits are not treated as Govern-
ment funds or appropriated monies, and are available for the
salaries and other expenses of the Commission and its
employees without annual appropriation or apportionment; and
(2) the agency is authorized to employ and fix the salaries
and other compensation of its officers and employees, and such
salaries and other compensation are paid without regard to
the provisions of other laws applicable to officers and employees
of the United States.
SEC. 11. EFFECTIVE DATES.
(a) IN GENERAL.—Except as provided in subsections (b) and
(c), the amendments made by this Act shall take effect on October
1, 2001.
(b) IMMEDIATE TRANSACTION FEE REDUCTIONS.—The amend-
ments made by section 2 shall take effect on the later of—
(1) the first day of fiscal year 2002; or
(2) thirty days after the date on which a regular appropria-
tion to the Commission for such fiscal year is enacted.
(c) ADDITIONAL EXCEPTIONS.—The authorities provided by sec-
tion 6(b)(9) of the Securities Act of 1933 and sections 13(e)(9),
14(g)(9), and 31(k) of the Securities Exchange Act of 1934, as
so designated by this Act, shall not apply until October 1, 2002.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.