[107th Congress Public Law 123]
[From the U.S. Government Printing Office]
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[DOCID: f:publ123.107]
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INVESTOR AND CAPITAL MARKETS FEE RELIEF ACT
[[Page 115 STAT. 2390]]
Public Law 107-123
107th Congress
An Act
To amend the Securities <<NOTE: Jan. 16, 2002 - [H.R. 1088]>> 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 <<NOTE: Investor and Capital
Markets Fee Relief Act.>> assembled,
SECTION 1. SHORT <<NOTE: 15 USC 78a note.>> 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
subsection (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:
[[Page 115 STAT. 2391]]
``(d) Off-Exchange Trades of Last-Sale-Reported Securities.--
``(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
subsection 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 Payments.--
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
collections 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 collected
under subsection (d)) that are equal to the target offsetting
collection amount for such fiscal year.
``(2) <<NOTE: Deadline.>> 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
[[Page 115 STAT. 2392]]
of sales used under paragraph (1) for such fiscal year (or
$48,800,000,000,000 in the case of fiscal year 2002) is
reasonably likely to be 10 percent (or more) greater or less
than the actual aggregate dollar volume of sales for such fiscal
year. <<NOTE: Deadline.>> 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 collected 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 aggregate
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
subsection (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
paragraph (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) <<NOTE: Termination date.>> 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.
[[Page 115 STAT. 2393]]
``(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 estimate 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 projections 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: <<NOTE: Deadline.>> ``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
registration 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 pursuant 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
collections 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.
[[Page 115 STAT. 2394]]
``(4) General revenues prohibited.--No fees collected
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 (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
paragraph (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) <<NOTE: Termination date.>> 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) <<NOTE: Federal Register,
publication. Notice. Deadline.>> Publication.--The Commission
shall publish in the Federal Register notices of the rate
applicable under this subsection 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:
[[Page 115 STAT. 2395]]
``(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 registration statements filed with the
Commission 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 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
paragraphs:
``(4) Offsetting collections.--Fees collected pursuant to
this subsection for any fiscal year shall be deposited and
credited as offsetting collections to the account providing
appropriations 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
collected 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
[[Page 115 STAT. 2396]]
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
paragraph (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) <<NOTE: Termination date.>> 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
subsection 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 CORPORATE 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
paragraphs:
``(4) Offsetting collections.--Fees collected pursuant to
this subsection for any fiscal year shall be deposited and
credited as offsetting collections to the account providing
appropriations 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
collected 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
[[Page 115 STAT. 2397]]
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
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 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) <<NOTE: Applicability.>> 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
paragraph (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) <<NOTE: Termination date.>> 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
subsection 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:
[[Page 115 STAT. 2398]]
``CHAPTER 48--AGENCY PERSONNEL DEMONSTRATION PROJECT
``Sec.
``4801. Nonapplicability of chapter 47.
``4802. Securities and Exchange Commission.
``Sec. 4801. Nonapplicability of chapter 47
``Chapter 47 shall not apply to this chapter.
``Sec. 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 compensation
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) <<NOTE: 5 USC 4802 note.>> 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) <<NOTE: 5 USC 4802 note.>> 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
[[Page 115 STAT. 2399]]
(ii) the effects of implementing the plan
developed under this paragraph in the annual
program performance report submitted under section
1116 of title 31, United States Code.
(2) Implementation report.--
(A) In general.--Before implementing the plan
developed 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
justifying 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 semicolon;
(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
[[Page 115 STAT. 2400]]
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. <<NOTE: 15 USC 78ee note.>> 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 reductions 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,
underwriters, participants in investment companies, retirement
programs, and others;
(2) consider the impact on different types of investors,
such as individual equity holders, individual investment company
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) <<NOTE: Deadline.>> 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 conduct a
study of the impact, implications, and consequences of converting 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, recruitment,
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
collected by the Commission.
(4) Appropriations.--The methods by which the conversion may
be accomplished without reducing the availability of offsetting
collections for appropriations.
(5) Other matters.--Such other impacts, implications, and
consequences as the Comptroller General may consider relevant
[[Page 115 STAT. 2401]]
to congressional consideration of the question of such
conversion.
(b) <<NOTE: Deadline.>> 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
depository institution, but such deposits are not treated as
Government 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. <<NOTE: 15 USC 78ee note.>> 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 amendments 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
appropriation to the Commission for such fiscal year is enacted.
(c) Additional Exceptions.--The authorities provided by section
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.
Approved January 16, 2002.
LEGISLATIVE HISTORY--H.R. 1088:
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HOUSE REPORTS: No. 107-52, Pt. 1 (Comm. on Financial Services).
CONGRESSIONAL RECORD, Vol. 147 (2001):
June 14, considered and passed House.
Dec. 20, considered and passed Senate.
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