H. R. 3005—25
receive inquiries regarding disciplinary actions and proceedings
involving investment advisers and persons associated with
investment advisers; and
(2) provide for prompt response to any inquiry described
in paragraph (1).
SEC. 307. CONTINUED STATE AUTHORITY.
(a) PRESERVATION OF FILING REQUIREMENTS.—Nothing in this
title or any amendment made by this title prohibits the securities
commission (or any agency or office performing like functions) of
any State from requiring the filing of any documents filed with
the Commission pursuant to the securities laws solely for notice
purposes, together with a consent to service of process and any
required fee.
(b) PRESERVATION OF FEES.—Until otherwise provided by law,
rule, regulation, or order, or other administrative action of any
State, or any political subdivision thereof, adopted after the date
of enactment of this Act, filing, registration, or licensing fees shall,
notwithstanding the amendments made by this title, continue to
be paid in amounts determined pursuant to the law, rule, regula-
tion, or order, or other administrative action as in effect on the
day before such date of enactment.
(c) AVAILABILITY OF PREEMPTION CONTINGENT ON PAYMENT OF
FEES.—
(1) IN GENERAL.—During the period beginning on the date
of enactment of this Act and ending 3 years after that
date of enactment, the securities commission (or any agency
or office performing like functions) of any State may require
registration of any investment adviser that fails or refuses
to pay the fees required by subsection (b) in or to such State,
notwithstanding the limitations on the laws, rules, regulations,
or orders, or other administrative actions of any State, or
any political subdivision thereof, contained in subsection (a),
if the laws of such State require registration of investment
advisers.
(2) DELAYS.—For purposes of this subsection, delays in
payment of fees or underpayments of fees that are promptly
remedied in accordance with the applicable laws, rules, regula-
tions, or orders, or other administrative actions of the relevant
State shall not constitute a failure or refusal to pay fees.
SEC. 308. EFFECTIVE DATE.
(a) IN GENERAL.—This title and the amendments made by
this title shall take effect 180 days after the date of enactment
of this Act.
(b) CONFORMING AMENDMENT.—
(1) IN GENERAL.—Section 3(38)(B) of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 1002(38)(B)) is
amended by inserting ‘‘or under the laws of any State’’ after
‘‘1940’’.
(2) SUNSET.—The amendment made by paragraph (1) shall
cease to be effective 2 years after the date of enactment of
this Act.
H. R. 3005—26
TITLE IV—SECURITIES AND EXCHANGE
COMMISSION AUTHORIZATION
SEC. 401. SHORT TITLE.
This title may be cited as the ‘‘Securities and Exchange
Commission Authorization Act of 1996’’.
SEC. 402. PURPOSES.
The purposes of this title are—
(1) to authorize appropriations for the Commission for fiscal
year 1997; and
(2) to reduce over time the rates of fees charged under
the Federal securities laws.
SEC. 403. 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 $300,000,000 for
fiscal year 1997, in addition to any other funds authorized to
be appropriated to the Commission.’’.
SEC. 404. 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 the costs to the government
of the securities registration process, and costs related to such
process, including enforcement activities, policy and rulemaking
activities, administration, legal services, and international regu-
latory activities.
‘‘(2) FEE PAYMENT REQUIRED.—At the time of filing a reg-
istration statement, the applicant shall pay to the Commission
a fee that shall be equal to the sum of the amounts (if any)
determined under the rates established by paragraphs (3) and
(4). The Commission shall publish in the Federal Register
notices of the fee rates applicable under this section for each
fiscal year.
‘‘(3) GENERAL REVENUE FEES.—The rate determined under
this paragraph is a rate equal to $200 per $1,000,000 of the
maximum aggregate price at which such securities are proposed
to be offered, except that during fiscal year 2007 and any
succeeding fiscal year such rate is equal to $67 per $1,000,000
of the maximum aggregate price at which such securities are
proposed to be offered. Fees collected during any fiscal year
pursuant to this paragraph shall be deposited and credited
as general revenues of the Treasury.
‘‘(4) OFFSETTING COLLECTION FEES.—
‘‘(A) IN
GENERAL.—Except as provided in sub-
paragraphs (B) and (C), the rate determined under this
paragraph is a rate equal to the following amount per
$1,000,000 of the maximum aggregate price at which such
securities are proposed to be offered:
H. R. 3005—27
‘‘(i) $95 during fiscal year 1998;
‘‘(ii) $78 during fiscal year 1999;
‘‘(iii) $64 during fiscal year 2000;
‘‘(iv) $50 during fiscal year 2001;
‘‘(v) $39 during fiscal year 2002;
‘‘(vi) $28 during fiscal year 2003;
‘‘(vii) $9 during fiscal year 2004;
‘‘(viii) $5 during fiscal year 2005; and
‘‘(ix) $0 during fiscal year 2006 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 paragraph
shall be deposited and credited as offsetting collections
in accordance with appropriations 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 offsetting collections) under this paragraph
at the rate in effect during the preceding fiscal year, until
such a regular appropriation is enacted.
‘‘(5) PRO RATA APPLICATION OF RATES.—The rates required
by this subsection shall be applied pro rata to amounts and
balances equal to less than $1,000,000.’’.
SEC. 405. TRANSACTION FEES.
(a) AMENDMENT.—Section 31 of the Securities Exchange 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 Commission shall,
in accordance with this subsection, collect transaction fees that
are designed to recover the costs to the Government of the
supervision and regulation of securities markets and securities
professionals, and costs related to such supervision and regulation,
including enforcement activities, policy and rulemaking activities,
administration, legal services, and international regulatory activi-
ties.
‘‘(b) EXCHANGE-TRADED SECURITIES.—Every national securities
exchange shall pay to the Commission a fee at a rate equal to
1⁄300 of one percent of the aggregate 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 2007 or any succeeding fiscal year such
rate shall be equal to 1⁄800 of one percent 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
REGISTERED
SECURITIES.—Each national securities association shall pay to the
Commission a fee at a rate equal to 1⁄300 of one percent of the
aggregate dollar amount of sales transacted by or through any
member of such association otherwise than on a national securities
exchange of securities registered on such an exchange (other than
bonds, debentures, and other evidences of indebtedness), except
that for fiscal year 2007 or any succeeding fiscal year such rate
shall be equal to 1⁄800 of one percent of such aggregate dollar
H. R. 3005—28
amount of sales. Fees collected pursuant to this subsection shall
be deposited and collected as general revenue of the Treasury.
‘‘(d) 
OFF-EXCHANGE
TRADES
OF
LAST-SALE-REPORTED
SECURITIES.—
‘‘(1) COVERED
TRANSACTIONS.—Each national securities
association shall pay to the Commission a fee at a rate equal
to 1⁄300 of one percent of the aggregate dollar amount of sales
transacted by or through any member of such association other-
wise than on a national securities exchange of securities (other
than bonds, debentures, and other evidences of indebtedness)
subject to prompt last sale reporting pursuant to the rules
of the Commission or a registered national securities associa-
tion, excluding any sales for which a fee is paid under sub-
section (c), except that for fiscal year 2007, or any succeeding
fiscal year, such rate shall be equal to 1⁄800 of one percent
of such aggregate dollar amount of sale.
‘‘(2) LIMITATION; DEPOSIT OF FEES.—Except as provided in
paragraph (3), no amounts shall be collected pursuant to sub-
section (d) for any fiscal year, 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 offsetting collections to the account providing
appropriations to the Commission.
‘‘(3) 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
appropriation is enacted.
‘‘(e) DATES FOR PAYMENT OF FEES.—The fees required by sub-
sections (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 beginning on the preced-
ing 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 beginning on the
preceding January 1 and ending at the close of the preceding
August 31.
‘‘(f) EXEMPTIONS.—The Commission, by rule, may exempt any
sale of securities or any class of sales of securities from any fee
imposed by this section, if the Commission finds that such exemp-
tion is consistent with the public interest, the equal regulation
of markets and brokers and dealers, 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 paragraph (2), the
amendment made by subsection (a) shall apply with respect
to transactions in securities that occur on or after October
1, 1997.
(2) OFF-EXCHANGE TRADES OF LAST SALE REPORTED TRANS-
ACTIONS.—The amendment made by subsection (a) shall apply
with respect to transactions described in section 31(d)(1) of