[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1855 Introduced in Senate (IS)]







104th CONGRESS
  2d Session
                                S. 1855

     To reduce registration fees required to be paid by issuers of 
                  securities, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 10, 1996

Mr. Gramm (for himself and Mr. D'Amato) introduced the following bill; 
which was read twice and referred to the Committee on Banking, Housing, 
                           and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
     To reduce registration fees required to be paid by issuers of 
                  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 ``Securities and Exchange Commission 
Fee Reduction Act of 1996''.

SEC. 2. REDUCING 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) Fee payment required.--
                    ``(A) In general.--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 paragraph (3).
                    ``(B) Publication of fees.--The Commission shall 
                publish in the Federal Register notices of the fee 
                rates applicable under this subsection for each fiscal 
                year.
                    ``(C) Amounts of fees.--In no case shall a minimum 
                fee required by this subsection be greater than $100.
            ``(2) General revenue fees.--
                    ``(A) Rate.--The rate determined under this 
                paragraph is a rate equal to--
                            ``(i) during each fiscal year before fiscal 
                        year 2002, $200 for each $1,000,000 of the 
                        maximum aggregate price at which the subject 
                        securities are proposed to be offered; and
                            ``(ii) during fiscal year 2002 and each 
                        succeeding fiscal year, $182 for each 
                        $1,000,000 of the maximum aggregate price at 
                        which the subject securities are proposed to be 
                        offered.
                    ``(B) Revenues of treasury.--Fees collected during 
                any fiscal year pursuant to this paragraph shall be 
                deposited and credited as general revenues of the 
                Treasury.
            ``(3) Offsetting collection fees.--
                    ``(A) In general.--Except as provided in 
                subparagraphs (B) and (C), for each $1,000,000 of the 
                maximum aggregate price at which the subject securities 
                are proposed to be offered, the rate determined under 
                this paragraph is a rate equal to--
                            ``(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 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. 3. 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) Exchange-Traded Securities.--
            ``(1) Rate.--Each national securities exchange shall pay to 
        the Commission a fee at a rate equal to--
                    ``(A) $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 during 
                the period to which the fee relates under subsection 
                (d); and
                    ``(B) for fiscal year 2002 and each succeeding 
                fiscal year, $25 for each $1,000,000 of such aggregate 
                dollar amount of sales during the period to which the 
                fee relates under subsection (d).
            ``(2) Revenues of treasury.--Fees collected pursuant to 
        this subsection shall be deposited and collected as general 
        revenue of the Treasury.
    ``(b) Off-Exchange-Trades of Exchange-Registered Securities.--
            ``(1) Rates.--Each national securities association shall 
        pay to the Commission a fee at a rate equal to--
                    ``(A) $33 for each $1,000,000 of the aggregate 
                dollar amount of sales transacted during the period to 
                which the fee relates under subsection (d) 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); and
                    ``(B) for fiscal year 2002 and each succeeding 
                fiscal year, $25 for each $1,000,000 of the aggregate 
                dollar amount of sales referral to in subparagraph (A) 
                during the period to which the fee relates under 
                subsection (d).
            ``(2) Revenues of treasury.--Fees collected pursuant to 
        this subsection shall be deposited and collected as general 
        revenue of the Treasury.
    ``(c) Off-Exchange-Trades of Last-Sale-Reported Securities.--
            ``(1) Covered transactions.--Each 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 
        during the period to which the fee relates under subsection (d) 
        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 
        (b).
            ``(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 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.
                    ``(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.
    ``(d) Dates for Payment of Fees.--The fees required by subsections 
(a), (b), and (c) 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.
    ``(e) Exemptions.--
            ``(1) Commission authority.--The Commission may, by rule, 
        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.
            ``(2) Low-volume transactions.--No fee shall be assessed 
        under this section for transactions involving portfolios of 
        equity securities taking place at times of day characterized by 
        low volume and during nontraditional trading hours, as 
        determined by the Commission.
    ``(f) Publication.--The Commission shall publish in the Federal 
Register notices of the fee rates applicable under this section for 
each fiscal year.''.
    (b) Effective Date; Transition.--
            (1) Effective date.--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 October 1, 
        1996.
            (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 October 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, as in effect on the day 
        before the effective date of the amendment made by subsection 
        (a), to make the payments required by such section on March 15, 
        1997.

SEC. 4. 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 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. 5. ELIMINATION OF UNNECESSARY FEES.

    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.
                                 <all>