[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 114 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                 S. 114

To authorize the Securities and Exchange Commission to require greater 
   disclosure by municipalities that issue securities, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 4, 1995

  Mrs. Boxer introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
To authorize the Securities and Exchange Commission to require greater 
   disclosure by municipalities that issue securities, 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 ``Municipal Securities Disclosure Act 
of 1995''.

SEC. 2. MUNICIPAL SECURITIES TREATMENT UNDER SECURITIES EXCHANGE ACT OF 
              1934.

    (a) Exemption Authority.--Section 15B of the Securities Exchange 
Act of 1934 (15 U.S.C. 78o-4) is amended by striking subsection (d) and 
inserting the following:
    ``(d) The Commission may, by rule or regulation, and subject to 
such terms and conditions as may be prescribed in accordance with those 
rules and regulations, add municipal securities to the classes of 
securities exempted from the application of any provision of this 
title, if the Commission finds that the enforcement of such provision 
with respect to such securities is not necessary in the public interest 
and for the protection of investors.''.
    (b) Amendment to Definition of ``Exempted Security''.--Section 
3(a)(12) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(12)) 
is amended--
            (1) in subparagraph (A)--
                    (A) by striking clause (ii); and
                    (B) by redesignating clauses (iii) through (v) as 
                clauses (ii) through (iv), respectively; and
            (2) in subparagraph (B)--
                    (A) by striking ``(i)''; and
                    (B) by striking clause (ii).

SEC. 3. MUNICIPAL SECURITIES TREATMENT UNDER SECURITIES ACT OF 1933.

    (a) Repeal of Exemption for Municipal Securities.--Section 3(a)(2) 
of the Securities Act of 1933 (15 U.S.C. 77c(a)(2)) is amended in the 
first sentence--
            (1) by striking ``or any Territory thereof, or by the 
        District of Columbia, or by any State of the United States, or 
        by any political subdivision of a State or Territory, or by any 
        public instrumentality of one or more States or Territories''; 
        and
            (2) by striking ``or any security which is an industrial'' 
        and all that follows through ``does not apply to such 
        security;''.
    (b) Commission Authority To Exempt.--Section 3 of the Securities 
Act of 1933 (15 U.S.C. 77c) is amended by adding at the end the 
following new subsection:
    ``(d) Exemption Authority.--The Commission may, by rule or 
regulation, and subject to such terms and conditions as may be 
prescribed in accordance with those rules and regulations, add to the 
securities exempted as provided in this section, any class of 
securities issued by a State of the United States or by any political 
subdivision of a State or by any Territory of the United States or 
political subdivision of a Territory or by any public instrumentality 
of one or more States or Territories, if the Commission finds that the 
enforcement of this title with respect to such securities is not 
necessary in the public interest and for the protection of 
investors.''.

SEC. 4. EFFECTIVE DATE.

    The amendments made by this Act shall become effective 6 months 
after the date of enactment of this Act.

SEC. 5. FUNDING.

    There are authorized to be appropriated to the Securities and 
Exchange Commission such sums as may be necessary to carry out this Act 
and the amendments made by this Act.
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