[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 442 Engrossed Amendment House (EAH)]

103d CONGRESS

  1st Session

                                 S. 442

_______________________________________________________________________

                               AMENDMENTS
                In the House of Representatives, U. S.,

                                                       October 5, 1993.
      Resolved, That the bill from the Senate (S. 442) entitled ``An 
Act to amend the Securities Exchange Act of 1934 to ensure the 
efficient and fair operation of the government securities market, in 
order to protect investors and facilitate government borrowing at the 
lowest possible cost to taxpayers, and to prevent false and misleading 
statements in connection with offerings of government securities'', do 
pass with the following

                              AMENDMENTS:

        Strike out all after the resolving clause, and insert:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Government Securities Reform Act of 
1993''.

       TITLE I--AMENDMENTS TO THE SECURITIES EXCHANGE ACT OF 1934

SEC. 101. EXTENSION OF GOVERNMENT SECURITIES RULEMAKING AUTHORITY.

    Section 15C of the Securities Exchange Act of 1934 (15 U.S.C. 78o-
5) is amended by striking subsection (g).

SEC. 102. TRANSACTION RECORDS.

    (a) Amendment.--Section 15C(d) of the Securities Exchange Act of 
1934 (15 U.S.C. 78o-5(d)) is amended by adding at the end thereof the 
following new paragraph:
    ``(3) Government Securities Trade Reconstruction.--
            ``(A) Furnishing records.--Every government securities 
        broker and government securities dealer shall furnish to the 
        Commission on request such records of government securities 
        transactions, including records of the date and time of 
        execution of trades, as the Commission may require to 
        reconstruct trading in the course of a particular inquiry or 
        investigation being conducted by the Commission. In requiring 
        information pursuant to this paragraph, the Commission shall 
        specify the information required, the period for which it is 
        required, the time and date on which the information must be 
        furnished, and whether the information is to be furnished 
        directly to the Commission, to the Federal Reserve Bank of New 
        York, or to an appropriate regulatory agency or self-regulatory 
        organization with responsibility for examining the government 
        securities broker or government securities dealer. The 
        Commission may require that such information be furnished in 
        machine readable form notwithstanding any limitation in 
        subparagraph (B).
            ``(B) Limitation; construction.--The Commission shall not 
        utilize its authority under this paragraph to develop regular 
        reporting requirements, except that the Commission may require 
        information to be furnished under this paragraph as frequently 
        as necessary for particular inquiries or investigations. This 
        paragraph shall not be construed as requiring, or as 
        authorizing the Commission to require, any government 
        securities broker or government securities dealer to obtain or 
        maintain any information for purposes of this paragraph which 
        is not otherwise maintained by such broker or dealer in 
        accordance with any other provision of law or usual and 
        customary business practice. The Commission shall, where 
        feasible, avoid requiring any information to be furnished under 
        this paragraph that the Commission may obtain from the Federal 
        Reserve Bank of New York.
            ``(C) Procedures for requiring information.--At the time 
        the Commission requests any information pursuant to 
        subparagraph (A) with respect to any government securities 
        broker or government securities dealer for which the Commission 
        is not the appropriate regulatory agency, the Commission shall 
        notify the appropriate regulatory agency for such government 
        securities broker or government securities dealer and, upon 
        request, furnish to the appropriate regulatory agency any 
        information supplied to the Commission.
            ``(D) Consultation.--Within 90 days after the date of the 
        enactment of this paragraph, and annually thereafter, or upon 
        the request of any other appropriate regulatory agency, the 
        Commission shall consult with the other appropriate regulatory 
        agencies to determine the availability of records that may be 
        required to be furnished under this paragraph and, for those 
        records available directly from the other appropriate 
        regulatory agencies, to develop a procedure for furnishing such 
        records expeditiously upon the Commission's request.
            ``(E) Exclusion for examination reports.--Nothing in this 
        paragraph shall be construed so as to permit the Commission to 
        require any government securities broker or government 
        securities dealer to obtain, maintain, or furnish any 
        examination report of any appropriate regulatory agency other 
        than the Commission or any supervisory recommendations or 
        analysis contained in any such examination report.
            ``(F) Authority to limit disclosure of information.--
        Notwithstanding any other provision of law, the Commission and 
        the appropriate regulatory agencies shall not be compelled to 
        disclose any information required or obtained under this 
        paragraph. Nothing in this paragraph shall authorize the 
        Commission or any appropriate regulatory agency to withhold 
        information from Congress, or prevent the Commission or any 
        appropriate regulatory agency from complying with a request for 
        information from any other Federal department or agency 
        requesting information for purposes within the scope of its 
        jurisdiction, or from complying with an order of a court of the 
        United States in an action brought by the United States, the 
        Commission, or the appropriate regulatory agency. For purposes 
        of section 552 of title 5, United States Code, this 
        subparagraph shall be considered a statute described in 
        subsection (b)(3)(B) of such section 552.''.
    (b) Conforming Amendments.--(1) Section 15C(a)(4) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78o-5(a)(4)) is amended by inserting 
``, other than subsection (d)(3),'' after ``subsection (a), (b), or (d) 
of this section''.
    (2) Section 15C(f)(2) of such Act is amended--
            (A) in the first sentence, by inserting ``, other than 
        subsection (d)(3)'', after ``threatened violation of the 
        provisions of this section''; and
            (B) in the second sentence, by inserting ``(except 
        subsection (d)(3))'' after ``other than this section''.

SEC. 103. LARGE POSITION REPORTING.

    Section 15C of the Securities Exchange Act of 1934 (15 U.S.C. 78o-
5) is amended--
            (1) by redesignating subsection (f) as subsection (h); and
            (2) by inserting after subsection (e) the following new 
        subsection:
    ``(f) Large Position Reporting.--
            ``(1) Reporting requirements.--The Secretary may adopt 
        rules to require specified persons holding, maintaining, or 
        controlling large positions in to-be-issued or recently issued 
        Treasury securities to file such reports regarding such 
        positions as the Secretary determines to be necessary or 
        appropriate for the purpose of monitoring the impact in the 
        Treasury securities market of concentrations of positions in 
        Treasury securities and for the purpose of otherwise assisting 
        the Commission in the enforcement of this title. Reports 
        required under this subsection shall be filed with the Federal 
        Reserve Bank of New York, acting as agent for the Secretary, 
        and shall be provided by that Federal Reserve Bank to the 
        Commission on a timely basis.
            ``(2) Recordkeeping requirements.--Rules under this 
        subsection may require persons holding, maintaining, or 
        controlling large positions in Treasury securities to make and 
        keep for prescribed periods such records as the Secretary 
        determines are necessary or appropriate to ensure that such 
        persons can comply with reporting requirements under this 
        subsection.
            ``(3) Aggregation rules.--Rules under this subsection--
                    ``(A) may prescribe the manner in which positions 
                and accounts shall be aggregated for the purpose of 
                this subsection, including aggregation on the basis of 
                common ownership or control; and
                    ``(B) may define which persons (individually or as 
                a group) hold, maintain, or control large positions.
            ``(4) Definitional authority; determination of reporting 
        threshold.--
                    ``(A) In prescribing rules under this subsection, 
                the Secretary may, consistent with the purpose of this 
                subsection, define terms used in this subsection that 
                are not otherwise defined in section 3 of this title.
                    ``(B) Rules under this subsection shall specify--
                            ``(i) the minimum size of positions subject 
                        to reporting under this subsection, taking into 
                        account the purposes of this subsection and the 
                        potential for price distortions or other 
                        anomalies resulting from large positions;
                            ``(ii) the types of positions (which may 
                        include financing arrangements) to be reported;
                            ``(iii) the securities to be covered; and
                            ``(iv) the form and manner in which reports 
                        shall be transmitted, which may include 
                        transmission in machine readable form.
            ``(5) Limitation on disclosure of information.--
        Notwithstanding any other provision of law, the Secretary and 
        the Commission shall not be compelled to disclose any 
        information required to be kept or reported under this 
        subsection. Nothing in this subsection shall authorize the 
        Secretary or the Commission to withhold information from 
        Congress, or prevent the Secretary or the Commission from 
        complying with a request for information from any other Federal 
        department or agency requesting information for purposes within 
        the scope of its jurisdiction, or from complying with an order 
        of a court of the United States in an action brought by the 
        United States, the Secretary, or the Commission. For purposes 
        of section 552 of title 5, United States Code, this paragraph 
        shall be considered a statute described in subsection (b)(3)(B) 
        of such section 552.''.

SEC. 104. AUTHORITY OF THE COMMISSION TO REGULATE TRANSACTIONS IN 
              EXEMPTED SECURITIES.

    (a) Prevention of Fraudulent and Manipulative Acts and Practices.--
Section 15(c)(2) of the Securities Exchange Act of 1934 (15 U.S.C. 
78o(c)(2)) is amended--
            (1) by inserting ``(A)'' after ``(2)'';
            (2) by striking ``fictitious quotation, and no municipal 
        securities dealer'' and inserting the following:
``fictitious quotation.
    ``(B) No municipal securities dealer'';
            (3) by striking ``fictitious quotation. The Commission 
        shall'' and inserting the following:
``fictitious quotation.
    ``(C) No government securities broker or government securities 
dealer shall make use of the mails or any means or instrumentality of 
interstate commerce to effect any transaction in, or induce or attempt 
to induce the purchase or sale of, any government security in 
connection with which such government securities broker or government 
securities dealer engages in any fraudulent, deceptive, or manipulative 
act or practice, or makes any fictitious quotation.
    ``(D) The Commission shall''; and
            (4) by inserting at the end thereof the following:
    ``(E) The Commission shall, prior to adopting any rule or 
regulation under subparagraph (C), consult with and consider the views 
of the Secretary of the Treasury and each appropriate regulatory 
agency. If the Secretary of the Treasury or any appropriate regulatory 
agency comments in writing on a proposed rule or regulation of the 
Commission under such subparagraph (C) that has been published for 
comment, the Commission shall respond in writing to such written 
comment before adopting the proposed rule.''.
    (b) Fraudulent and Manipulative Devices and Contrivances.--Section 
15(c)(1) of the Securities Exchange Act of 1934 (15 U.S.C. 78o(c)(1)) 
is amended--
            (1) by inserting ``(A)'' after ``(c)(1)'';
            (2) by striking ``contrivance, and no municipal securities 
        dealer'' and inserting the following:
``contrivance.
    ``(B) No municipal securities dealer'';
            (3) by striking ``contrivance. The Commission shall'' and 
        inserting the following:
``contrivance.
    ``(C) No government securities broker or government securities 
dealer shall make use of the mails or any means or instrumentality of 
interstate commerce to effect any transaction in, or to induce or 
attempt to induce the purchase or sale of, any government security by 
means of any manipulative, deceptive, or other fraudulent device or 
contrivance.
    ``(D) The Commission shall''; and
            (4) by inserting at the end thereof the following:
    ``(E) The Commission shall, prior to adopting any rule or 
regulation under subparagraph (C), consult with and consider the views 
of the Secretary of the Treasury and each appropriate regulatory 
agency. If the Secretary of the Treasury or any appropriate regulatory 
agency comments in writing on a proposed rule or regulation of the 
Commission under such subparagraph (C) that has been published for 
comment, the Commission shall respond in writing to such written 
comment before adopting the proposed rule.''.

SEC. 105. BROKER/DEALER SUPERVISION RESPONSIBILITIES.

    Section 15C of the Securities Exchange Act of 1934 (15 U.S.C. 78o-
5) is amended by inserting after subsection (f) (as added by section 
103 of this Act) the following new subsection:
    ``(g) Policies and Procedures to Prevent and Detect Violations.--
Every government securities broker and government securities dealer 
shall establish, maintain, and enforce written policies and procedures 
reasonably designed, taking into consideration the nature of such 
person's business, to prevent and detect in connection with the 
purchase or sale of government securities, insofar as practicable, 
fraud and manipulation in violation of this title and the rules and 
regulations thereunder and violations of such other provisions of this 
title and the rules and regulations thereunder as the appropriate 
regulatory agency for such government securities broker or government 
securities dealer shall designate by rule.''.

SEC. 106. SALES PRACTICE RULEMAKING AUTHORITY.

    (a) Rules for Financial Institutions.--Section 15C(b) of the 
Securities Exchange Act of 1934 (15 U.S.C. 78o-5(b)) is amended--
            (1) by redesignating paragraphs (3), (4), (5), and (6) as 
        paragraphs (4), (5), (6), and (7), respectively; and
            (2) by inserting after paragraph (2) the following new 
        paragraph:
    ``(3) Sales Practice Rules.--(A) With respect to any financial 
institution that has filed notice as a government securities broker or 
government securities dealer or that is required to file notice under 
subsection (a)(1)(B) of this section, the appropriate regulatory agency 
for such government securities broker or government securities dealer 
may issue such rules with respect to transactions in government 
securities as may be necessary to prevent fraudulent and manipulative 
acts and practices and to promote just and equitable principles of 
trade.
    ``(B) Each appropriate regulatory agency shall consult with the 
other appropriate regulatory agencies for the purpose of ensuring the 
consistency of the rules prescribed by such agencies under this 
paragraph. The appropriate regulatory agencies shall consult with and 
consider the views of the Secretary and the Commission with respect to 
the impact of such rules on the operations of the market for government 
securities, consistency with analogous rules of self-regulatory 
organizations, and the enforcement and administration of such rules. 
The consultation required by this paragraph shall be conducted prior to 
the appropriate regulatory agency adopting a rule under this paragraph, 
unless the appropriate regulatory agency determines that an emergency 
exists requiring expeditious and summary action and publishes its 
reasons therefor. If the Secretary or the Commission comments in 
writing to the appropriate regulatory agency on a proposed rule that 
has been published for comment, the appropriate regulatory agency shall 
respond in writing to such written comment before adopting the rule.''.
    (b) Rules by Registered Securities Associations.--
            (1) Removal of limitations on authority.--(A) Section 15A 
        of the Securities Exchange Act of 1934 (15 U.S.C. 78o-3) is 
        amended--
                    (i) by striking subsections (f)(1) and (f)(2); and
                    (ii) by redesignating subsection (f)(3) as 
                subsection (f).
            (B) Section 15A(g) of such Act is amended--
                    (i) by striking ``exempted securities'' in 
                paragraph (3)(D) and inserting ``municipal 
                securities'';
                    (ii) by striking paragraph (4); and
                    (iii) by redesignating paragraph (5) as paragraph 
                (4).
            (2) Oversight of registered securities associations.--
        Section 19 of the Securities Exchange Act of 1934 (15 U.S.C. 
        78s) is amended--
                    (A) in subsection (b), by adding at the end thereof 
                the following new paragraph:
    ``(5) The Commission shall consult with and consider the views of 
the Secretary of the Treasury prior to approving a proposed rule change 
filed by a registered securities association that primarily concerns 
conduct related to transactions in government securities, except where 
the Commission determines that an emergency exists requiring 
expeditious or summary action and publishes its reasons therefor. If 
the Secretary comments in writing to the Commission on such proposed 
rule change that has been published for comment, the Commission shall 
respond in writing to such written comment before approving the 
proposed rule change.'';
                    (B) in subsection (c), by adding at the end thereof 
                the following new paragraph:
            ``(5) Before adopting a rule to amend a rule of a 
        registered securities association that primarily concerns 
        conduct related to transactions in government securities, the 
        Commission shall consult with and consider the views of the 
        Secretary, except where the Commission determines that an 
        emergency exists requiring expeditious or summary action and 
        publishes its reasons therefor. If the Secretary comments in 
        writing to the Commission on such proposed rule change that has 
        been published for comment, the Commission shall respond in 
        writing to such written comment before approving the proposed 
        rule change.''.
            (3) Conforming amendment.--
                    (A) Section 3(a)(12)(B)(ii) of such Act (15 U.S.C. 
                78c(a)(12)(B)(ii)) is amended by striking ``15, 15A 
                (other than subsection (g)(3)), and 17A'' and inserting 
                ``15 and 17A''.
                    (B) Section 15(b)(7) of such Act (15 U.S.C. 
                78o(b)(7)) is amended by inserting ``or government 
                securities broker or government securities dealer 
                registered (or required to register) under section 
                15C(a)(1)(A)'' after ``No registered broker or 
                dealer''.

SEC. 107. MARKET INFORMATION.

    Section 23(b)(4) of the Securities Exchange Act of 1934 (15 U.S.C. 
78w) is amended--
            (1) by striking subparagraphs (C), (D), and (H);
            (2) by redesignating subparagraphs (E), (F), and (G) as 
        subparagraphs (C), (D), and (E), respectively;
            (3) by redesignating subparagraphs (I), (J), and (K) as 
        subparagraphs (F), (G), and (H), respectively;
            (4) by striking ``and'' at the end of such redesignated 
        subparagraph (G);
            (5) by striking the period at the end of such redesignated 
        subparagraph (H) and inserting ``; and''; and
            (6) by inserting after such redesignated subparagraph (H) 
        the following new subparagraph:
            ``(I) the steps that have been taken and the progress that 
        has been made in promoting the timely public dissemination and 
        availability for analytical purposes (on a fair, reasonable, 
        and nondiscriminatory basis) of information concerning 
        government securities transactions and quotations, and its 
        recommendations, if any, for legislation to assure timely 
        dissemination of (i) information on transactions in regularly 
        traded government securities sufficient to permit the 
        determination of the prevailing market price for such 
        securities, and (ii) reports of the highest published bids and 
        lowest published offers for government securities (including 
        the size at which persons are willing to trade with respect to 
        such bids and offers).''.

SEC. 108. STUDY OF REGULATORY SYSTEM FOR GOVERNMENT SECURITIES.

    (a) Joint Study.--The Secretary of the Treasury, the Securities and 
Exchange Commission, and the Board of Governors of the Federal Reserve 
System shall--
            (1) evaluate the effectiveness of any rules promulgated or 
        amended after October 1, 1991, pursuant to section 15C of the 
        Securities Exchange Act of 1934 or any amendment made by this 
        title, and any national securities association rule changes 
        applicable principally to government securities transactions 
        approved after October 1, 1991, in carrying out the purposes of 
        such Act;
            (2) evaluate the effectiveness of surveillance and 
        enforcement with respect to government securities, and the 
        impact on such surveillance and enforcement of defects in any 
        available audit trails with respect to transactions in such 
        securities; and
            (3) submit to the Congress, not later than March 31, 1998, 
        any recommendations they may consider appropriate concerning--
                    (A) the regulation of government securities brokers 
                and government securities dealers,
                    (B) the dissemination of information concerning 
                quotations for and transactions in government 
                securities,
                    (C) the prevention of sales practice abuses in 
                connection with transactions in government securities, 
                and
                    (D) such other matters as they consider 
                appropriate.
    (b) GAO Study.--The Comptroller General shall--
            (1) conduct a study of the effectiveness of regulation of 
        government securities brokers and government securities dealers 
        pursuant to section 15C of the Securities Exchange Act of 1934 
        and the effectiveness of the amendments made by this title; and
            (2) submit to the Congress, not later than March 31, 1997, 
        the Comptroller General's recommendations for change, if any, 
        or such other recommendations as the Comptroller General 
        considers appropriate.
    (c) Treasury Study.--The Secretary of the Treasury, in consultation 
with the Securities and Exchange Commission, shall--
            (1) conduct a study of--
                    (A) the identity and nature of the business of 
                government securities brokers and government securities 
                dealers that are registered with the Securities and 
                Exchange Commission under section 15C of the Securities 
                Exchange Act of 1934; and
                    (B) the continuing need for, and regulatory and 
                financial consequences of, a separate regulatory system 
                for such government securities brokers and government 
                securities dealers; and
            (2) submit to the Congress, not later than 18 months after 
        the date of enactment of this Act, the Secretary's 
        recommendations for change, if any, or such other 
        recommendations as the Secretary considers appropriate.

SEC. 109. TECHNICAL AMENDMENTS.

    (a) Amendments to Definitions.--Section 3(a) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78c(a)) is amended--
            (1) in paragraph (34)(G) (relating to the definition of 
        appropriate regulatory agency), by amending clauses (ii), 
        (iii), and (iv) to read as follows:
                            ``(ii) the Board of Governors of the 
                        Federal Reserve System, in the case of a State 
                        member bank of the Federal Reserve System, a 
                        foreign bank, an uninsured State branch or 
                        State agency of a foreign bank, a commercial 
                        lending company owned or controlled by a 
                        foreign bank (as such terms are used in the 
                        International Banking Act of 1978), or a 
                        corporation organized or having an agreement 
                        with the Board of Governors of the Federal 
                        Reserve System pursuant to section 25 or 
                        section 25A of the Federal Reserve Act;
                            ``(iii) the Federal Deposit Insurance 
                        Corporation, in the case of a bank insured by 
                        the Federal Deposit Insurance Corporation 
                        (other than a member of the Federal Reserve 
                        System or a Federal savings bank) or an insured 
                        State branch of a foreign bank (as such terms 
                        are used in the International Banking Act of 
                        1978);
                            ``(iv) the Director of the Office of Thrift 
                        Supervision, in the case of a savings 
                        association (as defined in section 3(b) of the 
                        Federal Deposit Insurance Act) the deposits of 
                        which are insured by the Federal Deposit 
                        Insurance Corporation;'';
            (2) by amending paragraph (46) (relating to the definition 
        of financial institution) to read as follows:
            ``(46) The term `financial institution' means--
                    ``(A) a bank (as defined in paragraph (6) of this 
                subsection);
                    ``(B) a foreign bank (as such term is used in the 
                International Banking Act of 1978); and
                    ``(C) a savings association (as defined in section 
                3(b) of the Federal Deposit Insurance Act) the deposits 
                of which are insured by the Federal Deposit Insurance 
                Corporation.''; and
            (3) by redesignating paragraph (51) (as added by section 
        204 of the International Securities Enforcement Cooperation Act 
        of 1990) as paragraph (52).
    (b) Effective Date of Broker/Dealer Registration.--
            (1) Government securities brokers and dealers.--Section 
        15C(a)(2)(ii) of the Securities Exchange Act of 1934 (15 U.S.C. 
        78o-5(a)(2)(ii)) is amended by inserting before ``The 
        Commission may extend'' the following: ``The order granting 
        registration shall not be effective until such government 
        securities broker or government securities dealer has become a 
        member of a national securities exchange registered under 
        section 6 of this title, or a securities association registered 
        under section 15A of this title, unless the Commission has 
        exempted such government securities broker or government 
        securities dealer, by rule or order, from such membership.''.
            (2) Other brokers and dealers.--Section 15(b)(1)(B) of such 
        Act (15 U.S.C. 78o(b)(1)(B)) is amended by inserting before 
        ``The Commission may extend'' the following: ``The order 
        granting registration shall not be effective until such broker 
        or dealer has become a member of a registered securities 
        association, or until such broker or dealer has become a member 
        of a national securities exchange if such broker or dealer 
        effects transactions solely on that exchange, unless the 
        Commission has exempted such broker or dealer, by rule or 
        order, from such membership.''.
    (c) Information Sharing.--Section 15C(d)(2) of such Act is amended 
to read as follows:
    ``(2) Information received by an appropriate regulatory agency, the 
Secretary, or the Commission from or with respect to any government 
securities broker, government securities dealer, any person associated 
with a government securities broker or government securities dealer, or 
any other person subject to this section or rules promulgated 
thereunder, may be made available by the Secretary or the recipient 
agency to the Commission, the Secretary, the Department of Justice, the 
Commodity Futures Trading Commission, any appropriate regulatory 
agency, any self-regulatory organization, or any Federal Reserve 
Bank.''.

SEC. 110. OFFERINGS OF CERTAIN GOVERNMENT SECURITIES.

    Section 15(c) of the Securities Exchange Act of 1934 (15 U.S.C. 
78o(c)) is amended by adding at the end the following new paragraph:
    ``(7) In connection with any bid for or purchase of a government 
security related to an offering of government securities by or on 
behalf of an issuer, no government securities broker, government 
securities dealer, or bidder for or purchaser of securities in such 
offering shall knowingly or willfully make any false or misleading 
written statement or omit any fact necessary to make any written 
statement made not misleading.''.

SEC. 111. RULE OF CONSTRUCTION.

    (a) In General.--No provision of, or amendment made by, this title 
may be construed--
            (1) to govern the initial issuance of any public debt 
        obligation, or
            (2) to grant any authority to (or extend any authority of) 
        the Securities and Exchange Commission, any appropriate 
        regulatory agency, or a self-regulatory organization--
                    (A) to prescribe any procedure, term, or condition 
                of such initial issuance,
                    (B) to promulgate any rule or regulation governing 
                such initial issuance, or
                    (C) to otherwise regulate in any manner such 
                initial issuance.
    (b) Exception.--Subsection (a) of this section shall not apply to 
the amendment made by section 110 of this Act.
    (c) Public Debt Obligation.--For purposes of this section, the term 
``public debt obligation'' means an obligation subject to the public 
debt limit established in section 3101 of title 31, United States Code.

                    TITLE II--REPORTS ON PUBLIC DEBT

SEC. 201. ANNUAL REPORT ON PUBLIC DEBT.

    (a) General Rule.--Subchapter II of chapter 31 of title 31, United 
States Code, is amended by adding at the end thereof the following new 
section:
``Sec. 3130. Annual public debt report
    ``(a) General Rule.--On or before June 1 of each calendar year 
after 1993, the Secretary of the Treasury shall submit a report to the 
Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate on--
            ``(1) the Treasury's public debt activities, and
            ``(2) the operations of the Federal Financing Bank.
    ``(b) Required Information on Public Debt Activities.--Each report 
submitted under subsection (a) shall include the following information:
            ``(1) A table showing the following information with 
        respect to the total public debt:
                    ``(A) The past levels of such debt and the 
                projected levels of such debt as of the close of the 
                current fiscal year and as of the close of the next 5 
                fiscal years under the most recent current services 
                baseline projection of the executive branch.
                    ``(B) The past debt to GDP ratios and the projected 
                debt to GDP ratios as of the close of the current 
                fiscal year and as of the close of the next 5 fiscal 
                years under such most recent current services baseline 
                projection.
            ``(2) A table showing the following information with 
        respect to the net public debt:
                    ``(A) The past levels of such debt and the 
                projected levels of such debt as of the close of the 
                current fiscal year and as of the close of the next 5 
                fiscal years under the most recent current services 
                baseline projection of the executive branch.
                    ``(B) The past debt to GDP ratios and the projected 
                debt to GDP ratios as of the close of the current 
                fiscal year and as of the close of the next 5 fiscal 
                years under such most recent current services baseline 
                projection.
                    ``(C) The interest cost on such debt for prior 
                fiscal years and the projected interest cost on such 
                debt for the current fiscal year and for the next 5 
                fiscal years under such most recent current services 
                baseline projection.
                    ``(D) The interest cost to outlay ratios for prior 
                fiscal years and the projected interest cost to outlay 
                ratios for the current fiscal year and for the next 5 
                fiscal years under such most recent current services 
                baseline projection.
            ``(3) A table showing the maturity distribution of the net 
        public debt as of the time the report is submitted and for 
        prior years, and an explanation of the overall financing 
        strategy used in determining the distribution of maturities 
        when issuing public debt obligations.
            ``(4) A table showing the following information as of the 
        time the report is submitted and for prior years:
                    ``(A) A description of the various categories of 
                the holders of public debt obligations.
                    ``(B) The portions of the total public debt held by 
                each of such categories.
            ``(5) A table showing the relationship of federally 
        assisted borrowing to total Federal borrowing as of the time 
        the report is submitted and for prior years.
            ``(6) A table showing the annual principal and interest 
        payments which would be required to amortize in equal annual 
        payments the level (as of the time the report is submitted) of 
        the net public debt over the longest remaining term to maturity 
        of any obligation which is a part of such debt.
    ``(c) Required Information on Federal Financing Bank.--Each report 
submitted under subsection (a) shall include (but not be limited to) 
information on the financial operations of the Federal Financing Bank, 
including loan payments and prepayments, and on the levels and 
categories of the lending activities of the Federal Financing Bank, for 
the current fiscal year and for prior fiscal years.
    ``(d) Recommendations.--The Secretary of the Treasury may include 
in any report submitted under subsection (a) such recommendations to 
improve the issuance and sale of public debt obligations (and with 
respect to other matters) as he may deem advisable.
    ``(e) Definitions.--For purposes of this section--
            ``(1) Current fiscal year.--The term `current fiscal year' 
        means the fiscal year ending in the calendar year in which the 
        report is submitted.
            ``(2) Total public debt.--The term `total public debt' 
        means the total amount of the obligations subject to the public 
        debt limit established in section 3101 of this title.
            ``(3) Net public debt.--The term `net public debt' means 
        the portion of the total public debt which is held by the 
        public.
            ``(4) Debt to gdp ratio.--The term `debt to GDP ratio' 
        means the percentage obtained by dividing the level of the 
        total public debt or net public debt, as the case may be, by 
        the gross domestic product.
            ``(5) Interest cost to outlay ratio.--The term `interest 
        cost to outlay ratio' means, with respect to any fiscal year, 
        the percentage obtained by dividing the interest cost for such 
        fiscal year on the net public debt by the total amount of 
        Federal outlays for such fiscal year.''
    (b) Clerical Amendment.--The analysis for subchapter II of chapter 
31 of title 31, United States Code, is amended by adding at the end 
thereof the following new item:

``3130. Annual public debt report.''

SEC. 202. TREASURY AUCTION REFORMS.

    (a) Ability to Submit Computer Tenders in Treasury Auctions.--By 
the end of 1995, any bidder shall be permitted to submit a computer-
generated tender to any automated auction system established by the 
Secretary of the Treasury for the sale upon issuance of securities 
issued by the Secretary if the bidder--
            (1) meets the minimum creditworthiness standard established 
        by the Secretary; and
            (2) agrees to comply with regulations and procedures 
        applicable to the automated system and the sale upon issuance 
        of securities issued by the Secretary.
    (b) Prohibition on Favored Players.--
            (1) In general.--No government securities broker or 
        government securities dealer may receive any advantage, 
        favorable treatment, or other benefit, in connection with the 
        purchase upon issuance of securities issued by the Secretary of 
        the Treasury, which is not generally available to other 
        government securities brokers or government securities dealers 
        under the regulations governing the sale upon issuance of 
        securities issued by the Secretary of the Treasury.
            (2) Exception.--
                    (A) In general.--The Secretary of the Treasury may 
                grant an exception to the application of paragraph (1) 
                if--
                            (i) the Secretary determines that any 
                        advantage, favorable treatment, or other 
                        benefit referred to in such paragraph is 
                        necessary and appropriate and in the public 
                        interest; and
                            (ii) the grant of the exception is designed 
                        to minimize any anticompetitive effect.
                    (B) Annual report.--The Secretary of the Treasury 
                shall submit an annual report to the Congress 
                describing any exception granted by the Secretary under 
                subparagraph (A) during the year covered by the report 
                and the basis upon which the exception was granted.
    (c) Meetings of Treasury Borrowing Advisory Committee.--
            (1) Open meetings.--
                    (A) In general.--Except as provided in subparagraph 
                (B), any meeting of the Treasury Borrowing Advisory 
                Committee of the Public Securities Association 
                (hereafter in this subsection referred to as the 
                ``advisory committee''), or any successor to the 
                advisory committee, shall be open to the public.
                    (B) Exception.--Subparagraph (A) shall not apply 
                with respect to any part of any meeting of the advisory 
                committee in which the advisory committee--
                            (i) discusses and debates the issues 
                        presented to the advisory committee by the 
                        Secretary of the Treasury; or
                            (ii) makes recommendations to the 
                        Secretary.
            (2) Minutes of each meeting.--The detailed minutes required 
        to be maintained under section 10(c) of the Federal Advisory 
        Committee Act for any meeting by the advisory committee shall 
        be made available to the public within 3 business days of the 
        date of the meeting.
            (3) Prohibition on receipt of gratuities or expenses by any 
        officer or employee of the board or department.--In connection 
        with any meeting of the advisory committee, no officer or 
        employee of the Department of the Treasury, the Board of 
        Governors of the Federal Reserve System, or any Federal reserve 
        bank may accept any gratuity, consideration, expense of any 
        sort, or any other thing of value from any advisory committee 
        described in subsection (c), any member of such committee, or 
        any other person.
            (4) Prohibition on outside discussions.--
                    (A) In general.--Subject to subparagraph (B), a 
                member of the advisory committee may not discuss any 
                part of any discussion, debate, or recommendation at a 
                meeting of the advisory committee which occurs while 
                such meeting is closed to the public (in accordance 
                with paragraph (1)(B)) with, or disclose the contents 
                of such discussion, debate, or recommendation to, 
                anyone other than--
                            (i) another member of the advisory 
                        committee who is present at the meeting; or
                            (ii) an officer or employee of the 
                        Department of the Treasury.
                    (B) Applicable period of prohibition.--The 
                prohibition contained in subparagraph (A) on 
                discussions and disclosures of any discussion, debate, 
                or recommendation at a meeting of the advisory 
                committee shall cease to apply--
                            (i) with respect to any discussion, debate, 
                        or recommendation which relates to the 
                        securities to be auctioned in a midquarter 
                        refunding by the Secretary of the Treasury, at 
                        the time the Secretary makes a public 
                        announcement of the refunding; and
                            (ii) with respect to any other discussion, 
                        debate, or recommendation at the meeting, at 
                        the time the Secretary releases the minutes of 
                        the meeting in accordance with paragraph (2).
                    (C) Removal from advisory committee for violations 
                of this paragraph.--In addition to any penalty or 
                enforcement action to which a person who violates a 
                provision of this paragraph may be subject under any 
                other provision of law, the Secretary of the Treasury 
                shall--
                            (i) remove a member of the advisory 
                        committee who violates a provision of this 
                        paragraph from the advisory committee and 
                        permanently bar such person from serving as a 
                        member of the advisory committee; and
                            (ii) prohibit any director, officer, or 
                        employee of the firm of which the member 
                        referred to in clause (i) is a director, 
                        officer, or employee (at the time the member is 
                        removed from the advisory committee) from 
                        serving as a member of the advisory committee 
                        at any time during the 10-year period beginning 
                        on the date of such removal.
    (d) Report to Congress.--
            (1) Report required.--The Secretary of the Treasury shall 
        submit an annual report to the Congress containing the 
        following information with respect to material violations or 
        suspected material violations of regulations of the Secretary 
        relating to auctions and other offerings of securities upon the 
        issuance of such securities by the Secretary:
                    (A) The number of inquiries begun by the Secretary 
                during the year covered by the report regarding such 
                material violations or suspected material violations by 
                any participant in the auction system or any director, 
                officer, or employee of any such participant and the 
                number of inquiries regarding any such violations or 
                suspected violations which remained open at the end of 
                such year.
                    (B) A brief description of the nature of the 
                violations.
                    (C) A brief description of any action taken by the 
                Secretary during such year with respect to any such 
                violation, including any referrals made to the Attorney 
                General, the Securities and Exchange Commission, any 
                other law enforcement agency, and any Federal banking 
                agency (as defined in section 3 of the Federal Deposit 
                Insurance Act).
            (2) Delay in disclosure of information in certain cases.--
        The Secretary of the Treasury shall not be required to include 
        in a report under paragraph (1) any information the disclosure 
        of which could jeopardize an investigation by an agency 
        described in paragraph (1)(C) for so long as such disclosure 
        could jeopardize the investigation.

SEC. 203. REPORT ON TREASURY MODIFICATIONS TO AUCTION PROCESS.

    The Secretary of the Treasury shall report to the Congress 
concerning significant modifications to the auction process for issuing 
United States Treasury obligations at the time such changes are 
implemented.
            Amend the title so as to read: ``An Act to extend and 
        revise rulemaking authority with respect to government 
        securities under the Federal securities laws, and for other 
        purposes.''.

            Attest:






                                                                 Clerk.

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