In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Q: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Municipal Securities Investor
Protection Act of 1996''.

SEC. 2. TREATMENT OF MUNICIPAL SECURITIES IN THE SECURITIES ACT OF
1933.

Section 3 of the Securities Act of 1933 (15 U.S.C. 77c) is amended
by adding at the end the following new subsection:
''(d)(1) Notwithstanding subsection (a)(2), a security issued by a
municipal issuer shall only be exempt from the provisions of this
title--
''(A) if the municipal issuer pledges the full faith and
credit or the taxing power of that municipal issuer to make
timely payments of principal and interest on the obligation; or
''(B) if the municipal issuer--
''(i) offers or sells such securities in a single
transaction in an aggregate principal amount equal to
less than $1,000,000,000; or
''(ii) offers or sells such securities in a series
of related transactions, and at the time of the offer
or sale of such securities, does not reasonably
anticipate that the aggregate principal amount of the
series of related transactions will exceed
$1,000,000,000.
''(2) For purposes of this subsection--
''(A) the term 'municipal issuer' means--
''(i) a State, the District of Columbia, or a
Territory of the United States; or
''(ii) a public instrumentality or political
subdivision of an entity referred to in clause (i);
''(B) the term 'series of related transactions' means a
series of separate securities offerings made--
''(i) as part of a single plan of financing; or
''(ii) for the same general purpose; and
''(C) the term 'reasonably anticipate' shall have the
meaning provided that term by the Commission by regulation,
taking into consideration, as necessary or appropriate--
''(i) the public interest;
''(ii) the protection of investors; and
''(iii) the need to prevent the circumvention of
the requirements of this subsection.''.

SEC. 3. TREATMENT OF MUNICIPAL SECURITIES IN THE SECURITIES EXCHANGE
ACT OF 1934.

(a) In General.--Section 3(a)(12) of the Securities Exchange Act of
1934 (15 U.S.C. 78c(a)(12)) is amended--
(1) in subparagraph (A), by striking clause (ii) and
inserting the following:
''(ii) any security issued by a municipal issuer with
respect to which the municipal issuer--
''(I) pledges the full faith and credit or the
taxing power of that municipal issuer to make timely
payments of principal and interest on the obligation;
or
''(II)(aa) offers or sells such securities in a
single transaction in an aggregate principal amount
equal to less than $1,000,000,000; or
''(bb) offers or sells such securities in a series
of related transactions, and at the time of the offer
or sale of such securities, does not reasonably
anticipate that the aggregate principal amount of the
series of related transactions will exceed
$1,000,000,000;'';
(2) in subparagraph (B)(ii), by striking ''municipal
securities'' and inserting ''the securities described in
subparagraph (A)(ii)'';
(3) by redesignating subparagraph (C) as subparagraph (D);
and
(4) by inserting after subparagraph (B) the following:
''(C) For purposes of subparagraph (A)(ii)--
''(i) the term 'municipal issuer' means--
''(I) a State or any political subdivision thereof,
or an agency or instrumentality of a State or any
political subdivision thereof; or
''(II) any municipal corporate instrumentality of a
State;
''(ii) the term 'series of related transactions' means a
series of separate securities offerings made--
''(I) as part of a single plan of financing; or
''(II) for the same general purpose; and
''(iii) the term 'reasonably anticipate' shall have the
meaning provided that term by the Commission by regulation,
taking into consideration, as necessary or appropriate--
''(I) the public interest;
''(II) the protection of investors; and
''(III) the need to prevent the circumvention of
the requirements of subparagraph (A)(ii).''.
(b) Treatment of Municipal Securities That Are Not Exempted
Securities.--The third sentence of section 15(d) of the Securities
Exchange Act of 1934 (15 U.S.C. 78o(d)) is amended by inserting before
the period the following: '', except that, with respect to a class of
municipal securities that are not exempted securities, the duty to file
under this subsection may not be suspended by reason of the number of
security holders of record of that class of municipal securities''.
(c) Reporting Prior to the Sale of Securities.--Section 15B(d)(1)
of the Securities Exchange Act of 1934 (15 U.S.C. 78o-4(d)(1)) is
amended--
(1) by striking ''(d)(1) Neither'' and inserting
''(d)(1)(A) Except as provided in subparagraph (B), neither'';
and
(2) by adding at the end the following new subparagraph:
''(B) Subparagraph (A) does not apply to an issuer of any municipal
security that is not an exempted security.''.

SEC. 4. TREATMENT OF CERTAIN MUNICIPAL SECURITIES IN THE TRUST
INDENTURE ACT OF 1939.

Section 304(a)(4) of the Trust Indenture Act of 1939 (15 U.S.C.
77ddd(a)(4)) is amended by striking ''of subsection 3(a) thereof'' and
inserting ''of subsection (a), or subsection (d) of section 3 of that
Act''.
A:
Municipal Securities Investor Protection Act of 1996 - Amends the Securities Act of 1933 and the Securities Exchange Act of 1934 to provide that a municipal issuer shall only be exempt from its provisions if such issuer: (1) pledges its full faith and credit or taxing power to make timely payments of principal and interest; (2) offers or sells such securities in a minimum single transaction amount of under $1 billion; or (3) offers or sells such securities in a series of related transactions, but does not reasonably anticipate that the aggregate principal amount of the series will exceed $1 billion at the time of such offer or sale.
Amends the Securities Exchange Act of 1934 to provide that the duty to file supplementary and periodic information by non-exempt municipal securities may not be suspended by reason of the number of security holders of record of that class of securities.
Authorizes the Securities and Exchange Commission to require non- exempt municipal security issuers to file requisite documents before the sale of such securities.
Amends the Trust Indenture Act of 1939 to make conforming amendments.