Home > 107th Congressional Bills > H.R. 1088 (rh) To amend the Securities Exchange Act of 1934 to reduce fees collected by the Securities and Exchange Commission, and for other purposes. [Reported in House] ...H.R. 1088 (rh) To amend the Securities Exchange Act of 1934 to reduce fees collected by the Securities and Exchange Commission, and for other purposes. [Reported in House] ...
Calendar No. 74
107th CONGRESS
1st Session
H. R. 1088
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 14, 2001
Received; read twice and placed on the calendar
_______________________________________________________________________
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 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:
``(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) 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 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. 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) 30 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) 30 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.
``(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: ``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.
``(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) 5 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) 5 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
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
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