[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2972 Engrossed in House (EH)]


  2d Session

                               H. R. 2972

_______________________________________________________________________

                                 AN ACT

      To authorize appropriations for the Securities and Exchange 
 Commission, to reduce the fees collected under the Federal securities 
                     laws, and for other purposes.
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
104th CONGRESS
  2d Session
                                H. R. 2972

_______________________________________________________________________

                                 AN ACT


 
      To authorize appropriations for the Securities and Exchange 
 Commission, to reduce the fees collected under the Federal securities 
                     laws, 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 ``Securities and Exchange Commission 
Authorization Act of 1996''.

SEC. 2. PURPOSES.

    The purposes of this Act are--
            (1) to authorize appropriations for the Securities and 
        Exchange Commission for fiscal year 1997; and
            (2) to reduce over time the rates of fees charged under the 
        Federal securities laws.

SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

    Section 35 of the Securities Exchange Act of 1934 is amended to 
read as follows:

``SEC. 35. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out the 
functions, powers, and duties of the Commission $317,000,000 for fiscal 
year 1997.''.

SEC. 4. REGISTRATION FEES.

    Section 6(b) of the Securities Act of 1933 (15 U.S.C. 77f(b)) is 
amended to read as follows:
    ``(b) Registration Fee.--
            ``(1) Recovery of cost of services.--The Commission shall, 
        in accordance with this subsection, collect registration fees 
        that are designed to recover the costs to the government of the 
        securities registration process, and costs related to such 
        process, including enforcement activities, policy and 
        rulemaking activities, administration, legal services, and 
        international regulatory activities.
            ``(2) Fee payment required.--At the time of filing a 
        registration statement, the applicant shall pay to the 
        Commission a fee that shall be equal to the sum of the amounts 
        (if any) determined under the rates established by paragraphs 
        (3) and (4). The Commission shall publish in the Federal 
        Register notices of the fee rates applicable under this section 
        for each fiscal year. In no case shall the fee required by this 
        subsection be less than $200, except that during fiscal year 
        2002 or any succeeding fiscal year such minimum fee shall be 
        $182.
            ``(3) General revenue fees.--The rate determined under this 
        paragraph is a rate equal to $200 for each $1,000,000 of the 
        maximum aggregate price at which such securities are proposed 
        to be offered, except that during fiscal year 2002 and any 
        succeeding fiscal year such rate is equal to $182 for each 
        $1,000,000 of the maximum aggregate price at which such 
        securities are proposed to be offered. Fees collected during 
        any fiscal year pursuant to this paragraph shall be deposited 
        and credited as general revenues of the Treasury.
            ``(4) Offsetting collection fees.--
                    ``(A) In general.--Except as provided in 
                subparagraphs (B) and (C), the rate determined under 
                this paragraph is a rate equal to the following amount 
                for each $1,000,000 of the maximum aggregate price at 
                which such securities are proposed to be offered:
                            ``(i) $103 during fiscal year 1997;
                            ``(ii) $70 during fiscal year 1998;
                            ``(iii) $38 during fiscal year 1999;
                            ``(iv) $17 during fiscal year 2000; and
                            ``(v) $0 during fiscal year 2001 or any 
                        succeeding fiscal year.
                    ``(B) Limitation; deposit.--Except as provided in 
                subparagraph (C), no amounts shall be collected 
                pursuant to this paragraph (4) for any fiscal year 
                except to the extent provided in advance in 
                appropriations acts. Fees collected during any fiscal 
                year pursuant to this paragraph shall be deposited and 
                credited as offsetting collections in accordance with 
                appropriations Acts.
                    ``(C) Lapse of appropriations.--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 paragraph at the rate in effect during the 
                preceding fiscal year, until such a regular 
                appropriation is enacted.''.

SEC. 5. TRANSACTION FEES.

    (a) Amendment.--Section 31 of the Securities Exchange Act of 1934 
(15 U.S.C. 78ee) is amended to read as follows:

``SEC. 31. TRANSACTION FEES.

    ``(a) Recovery of Cost of Services.--The Commission shall, in 
accordance with this subsection, collect transaction fees that are 
designed to recover the costs to the Government of the supervision and 
regulation of securities markets and securities professionals, and 
costs related to such supervision and regulation, including enforcement 
activities, policy and rulemaking activities, administration, legal 
services, and international regulatory activities.
    ``(b) Exchange-Traded Securities.--Every national securities 
exchange shall pay to the Commission a fee at a rate equal to $33 for 
each $1,000,000 of the aggregate dollar amount of sales of securities 
(other than bonds, debentures, and other evidences of indebtedness) 
transacted on such national securities exchange, except that for fiscal 
year 2002 or any succeeding fiscal year such rate shall be equal to $25 
for each $1,000,000 of such aggregate dollar amount of sales. Fees 
collected pursuant to this subsection shall be deposited and collected 
as general revenue of the Treasury.
    ``(c) Off-Exchange-Trades of Exchange-Registered Securities.--Every 
national securities association shall pay to the Commission a fee at a 
rate equal $33 for each $1,000,000 of the aggregate dollar amount of 
sales transacted by or through any member of such association otherwise 
than on a national securities exchange of securities registered on such 
an exchange (other than bonds, debentures, and other evidences of 
indebtedness), except that for fiscal year 2002 or any succeeding 
fiscal year such rate shall be equal to $25 for each $1,000,000 of such 
aggregate dollar amount of sales. Fees collected pursuant to this 
subsection shall be deposited and collected as general revenue of the 
Treasury.
    ``(d) Off-Exchange-Trades of Last-Sale-Reported Securities.--
            ``(1) Covered transactions.--Every national securities 
        association shall pay to the Commission a fee at a rate equal 
        to the dollar amount determined under paragraph (2) for each 
        $1,000,000 of the aggregate dollar amount of sales transacted 
        by or through any member of such association otherwise than on 
        a national securities exchange of securities (other than bonds, 
        debentures, and other evidences of indebtedness) subject to 
        prompt last sale reporting pursuant to the rules of the 
        Commission or a registered national securities association, 
        excluding any sales for which a fee is paid under subsection 
        (c).
            ``(2) Fee rates.--Except as provided in paragraph (4), the 
        dollar amount determined under this paragraph is--
                    ``(A) $12 for fiscal year 1997;
                    ``(B) $14 for fiscal year 1998;
                    ``(C) $17 for fiscal year 1999;
                    ``(D) $18 for fiscal year 2000;
                    ``(E) $20 for fiscal year 2001; and
                    ``(F) $25 for fiscal year 2002 or for any 
                succeeding fiscal year.
            ``(3) Limitation; deposit of fees.--Except as provided in 
        paragraph (4), no amounts shall be collected pursuant to this 
        subsection (d) for any fiscal year beginning before October 1, 
        2001, except to the extent provided in advance in 
        appropriations Acts. Fees collected during any such fiscal year 
        pursuant to this subsection shall be deposited and credited as 
        offsetting collections to the account providing appropriations 
        to the Commission, except that any amounts in excess of the 
        following amounts (and any amount collected for fiscal years 
        beginning on or after October 1, 2001) shall be deposited and 
        credited as general revenues of the Treasury:
                    ``(A) $20,000,000 for fiscal year 1997;
                    ``(B) $26,000,000 for fiscal year 1998;
                    ``(C) $32,000,000 for fiscal year 1999;
                    ``(D) $32,000,000 for fiscal year 2000;
                    ``(E) $32,000,000 for fiscal year 2001; and
                    ``(F) $0 for fiscal year 2002 and any succeeding 
                fiscal year.
            ``(4) Lapse of appropriations.--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 such a regular 
        appropriation is enacted.
    ``(e) Dates for Payment of Fees.--The fees required by subsections 
(b), (c), and (d) of this section shall be paid--
            ``(1) on or before March 15, with respect to transactions 
        and sales occurring during the period beginning on the 
        preceding September 1 and ending at the close of the preceding 
        December 31; and
            ``(2) on or before September 30, with respect to 
        transactions and sales occurring during the period beginning on 
        the preceding January 1 and ending at the close of the 
        preceding August 31.
    ``(f) Exemptions.--The Commission, by rule, may exempt any sale of 
securities or any class of sales of securities from any fee imposed by 
this section, if the Commission finds that such exemption is consistent 
with the public interest, the equal regulation of markets and brokers 
and dealers, and the development of a national market system.
    ``(g) Publication.--The Commission shall publish in the Federal 
Register notices of the fee rates applicable under this section for 
each fiscal year.''.
    (b) Effective Dates; Transition.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendment made by subsection (a) shall apply with respect to 
        transactions in securities that occur on or after January 1, 
        1997.
            (2) Off-exchange trades of last sale reported 
        transactions.--The amendment made by subsection (a) shall apply 
        with respect to transactions described in section 31(d)(1) of 
        the Securities Exchange Act of 1934 (as amended by subsection 
        (a) of this section) that occur on or after September 1, 1996.
            (3) Rule of construction.--Nothing in this subsection shall 
        be construed to affect the obligation of national securities 
        exchanges and registered brokers and dealers under section 31 
        of the Securities Exchange Act of 1934 (15 U.S.C. 78ee) as in 
        effect prior to the amendment made by subsection (a) to make 
        the payments required by such section on March 15, 1997.

SEC. 6. TIME FOR PAYMENT.

    Section 4(e) of the Securities Exchange Act of 1934 (15 U.S.C. 
78d(e)) is amended by inserting before the period at the end thereof 
the following: ``and the Commission may also specify the time that such 
fee shall be determined and paid relative to the filing of any 
statement or document with the Commission''.

SEC. 7. SENSE OF THE CONGRESS CONCERNING FEES.

    It is the sense of the Congress that--
            (1) the fees authorized by the amendments made by this Act 
        are in lieu of, and not in addition to, any fees that the 
        Securities and Exchange Commission is authorized to impose or 
        collect pursuant to section 9701 of title 31, United States 
        Code; and
            (2) in order to maintain the competitiveness of United 
        States securities markets relative to foreign markets, no fee 
        should be assessed on transactions involving portfolios of 
        equity securities taking place at times of day characterized by 
        low volume and during non-traditional trading hours.

            Passed the House of Representatives March 12, 1996.

            Attest:

                                                                 Clerk.