IB 
Union Calendar No. 13
108TH CONGRESS 
1ST SESSION 
H. R. 657
[Report No. 108–19] 
To amend the Securities Exchange Act of 1934 to augment the emergency 
authority of the Securities and Exchange Commission. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 11, 2003
Mr. GARRETT of New Jersey (for himself, Mr. OXLEY, Mr. BAKER, Mr. 
FRANK of Massachusetts, Mr. KANJORSKI, and Mr. EMANUEL) intro-
duced the following bill; which was referred to the Committee on Finan-
cial Services 
FEBRUARY 25, 2003
Committed to the Committee of the Whole House on the State of the Union 
and ordered to be printed 
A BILL 
To amend the Securities Exchange Act of 1934 to augment 
the emergency authority of the Securities and Exchange 
Commission.
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 ‘‘Emergency Securities 
Response Act of 2003’’. 
SEC. 2. EXTENSION OF EMERGENCY ORDER AUTHORITY OF 
THE SECURITIES EXCHANGE COMMISSION. 
(a) EXTENSION OF AUTHORITY.—Paragraph (2) of 
section 12(k) of the Securities Exchange Act of 1934 (15 
U.S.C. 78l(k)(2)) is amended to read as follows: 
‘‘(2) EMERGENCY ORDERS.—(A) The Commis-
sion, in an emergency, may by order summarily take 
such action to alter, supplement, suspend, or impose 
requirements or restrictions with respect to any mat-
ter or action subject to regulation by the Commis-
sion or a self-regulatory organization under the secu-
rities laws, as the Commission determines is nec-
essary in the public interest and for the protection 
of investors—
‘‘(i) to maintain or restore fair and orderly 
securities markets (other than markets in ex-
empted securities); 
‘‘(ii) to ensure prompt, accurate, and safe 
clearance and settlement of transactions in se-
curities (other than exempted securities); or 
‘‘(iii) to reduce, eliminate, or prevent the 
substantial disruption by the emergency of (I) 
securities markets, investment companies, or
any other significant portion or segment of such 
markets, or (II) the transmission or processing 
of securities transactions. 
‘‘(B) An order of the Commission under this 
paragraph (2) shall continue in effect for the period 
specified by the Commission, and may be extended. 
Except as provided in subparagraph (C), the Com-
mission’s action may not continue in effect for more 
than 30 business days, including extensions. If the 
actions described in subparagraph (A) involve a se-
curity futures product, the Commission shall consult 
with and consider the views of the Commodity Fu-
tures Trading Commission. In exercising its author-
ity under this paragraph, the Commission shall not 
be required to comply with the provisions of section 
553 of title 5, United States Code, or with the provi-
sions of section 19(c) of this title. 
‘‘(C) An order of the Commission under this 
paragraph (2) may be extended to continue in effect 
for more than 30 business days if, at the time of the 
extension, the Commission finds that the emergency 
still exists and determines that the continuation of 
the order beyond 30 business days is necessary in 
the public interest and for the protection of investors 
to attain an objective described in clause (i), (ii), or
(iii) of subparagraph (A). In no event shall an order 
of the Commission under this paragraph (2) con-
tinue in effect for more than 90 calendar days.’’. 
(b) DEFINITION OF EMERGENCY.—Paragraph (6) of 
section 12(k) of the Securities Exchange Act of 1934 (15 
U.S.C. 78l(k)(6)) is amended to read as follows: 
‘‘(6) DEFINITIONS.—
‘‘(A) EMERGENCY.—For purposes of this 
subsection, the term ‘emergency’ means—
‘‘(i) a major market disturbance char-
acterized by or constituting—
‘‘(I) sudden and excessive fluc-
tuations of securities prices generally, 
or a substantial threat thereof, that 
threaten fair and orderly markets; or 
‘‘(II) a substantial disruption of 
the safe or efficient operation of the 
national system for clearance and set-
tlement of transactions in securities, 
or a substantial threat thereof; or 
‘‘(i) a major disturbance that substan-
tially disrupts, or threatens to substantially 
disrupt—
‘‘(I) the functioning of securities 
markets, investment companies, or
any other significant portion or seg-
ment of the securities markets; or 
‘‘(II) the transmission or proc-
essing of securities transactions. 
‘‘(B) SECURITIES LAWS.—Notwithstanding 
section 3(a)(47), for purposes of this sub-
section, the term ‘securities laws’ does not in-
clude the Public Utility Holding Company Act 
of 1935 (15 U.S.C. 79a et seq.).’’.
Union Calendar No. 13
108TH CONGRESS 
1ST SESSION 
H. R. 657
[Report No. 108–19] 
A BILL 
To amend the Securities Exchange Act of 1934 to 
augment the emergency authority of the Securi-
ties and Exchange Commission. 
FEBRUARY 25, 2003
Committed to the Committee of the Whole House on the 
State of the Union and ordered to be printed