[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1088 Enrolled Bill (ENR)]
H.R.1088
One Hundred Seventh Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Wednesday,
the third day of January, two thousand and one
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) thirty 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) thirty 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) five 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) five 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 estimates or
projections on which such rate is based.
``(11) Definitions.--For purposes of this subsection:
``(A) 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........................................
$377,000,000
2003........................................
$435,000,000
2004........................................
$467,000,000
2005........................................
$570,000,000
2006........................................
$689,000,000
2007........................................
$214,000,000
2008........................................
$234,000,000
2009........................................
$284,000,000
2010........................................
$334,000,000
2011........................................
$394,000,000
``(B) Baseline estimate of the aggregate maximum offering
prices.--The baseline estimate of the aggregate maximum
offering prices for any fiscal year is the baseline estimate of
the aggregate maximum offering price at which securities are
proposed to be offered pursuant to registration statements
filed with the Commission 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 projections pursuant to section
257 of the Balanced Budget and Emergency Deficit Control Act of
1985.''.
SEC. 5. FEES FOR STOCK REPURCHASE STATEMENTS.
Section 13(e) of the Securities Exchange Act of 1934 (15 U.S.C.
78m(e)) is amended--
(1) in paragraph (3), by striking ``a fee of \1/50\ of 1 per
centum of the value of securities proposed to be purchased'' and
inserting ``a fee at a rate that, subject to paragraphs (5) and
(6), is equal to $92 per $1,000,000 of the value of securities
proposed to be purchased'';
(2) by inserting after paragraph (3) the following new
paragraphs:
``(4) Offsetting collections.--Fees collected pursuant to this
subsection for any fiscal year shall be deposited and credited as
offsetting collections to the account providing appropriations to
the Commission, and, except as provided in paragraph (9), shall not
be collected for any fiscal year except to the extent provided in
advance in appropriation Acts. 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 (3) for such fiscal year to a rate that is
equal to the rate (expressed in dollars per million) that is
applicable under section 6(b) of the Securities Act of 1933 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 (3) for all of such fiscal years to
a rate that is equal to the rate (expressed in dollars per million)
that is applicable under section 6(b) of the Securities Act of 1933
for all of such fiscal years.
``(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 (4) 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) five 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) five 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 rate applicable under this subsection
for each fiscal year is published pursuant to section 6(b)(10) of
the Securities Act of 1933.''.
SEC. 6. FEES FOR PROXY SOLICITATIONS AND STATEMENTS IN CORPORATE
CONTROL TRANSACTIONS.
Section 14(g) of the Securities Exchange Act of 1934 (15 U.S.C.
78n(g)) is amended--
(1) in paragraphs (1) and (3), by striking ``a fee of \1/50\ of
1 per centum of'' each place it appears and inserting ``a fee at a
rate that, subject to paragraphs (5) and (6), is equal to $92 per
$1,000,000 of'';
(2) by redesignating paragraph (4) as paragraph (11); and
(3) by inserting after paragraph (3) the following new
paragraphs:
``(4) Offsetting collections.--Fees collected pursuant to this
subsection for any fiscal year shall be deposited and credited as
offsetting collections to the account providing appropriations to
the Commission, and, except as provided in paragraph (9), shall not
be collected for any fiscal year except to the extent provided in
advance in appropriation Acts. 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 each of the
rates required by paragraphs (1) and (3) for such fiscal year to a
rate that is equal to the rate (expressed in dollars per million)
that is applicable under section 6(b) of the Securities Act of 1933
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
each of the rates required by paragraphs (1) and (3) for all of
such fiscal years to a rate that is equal to the rate (expressed in
dollars per million) that is applicable under section 6(b) of the
Securities Act of 1933 for all of such fiscal years.
``(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 (4) 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) five 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) five 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 rate applicable under this subsection
for each fiscal year is published pursuant to section 6(b)(10) of
the Securities Act of 1933.''.
SEC. 7. TRUST INDENTURE ACT FEE.
Section 307(b) of the Trust Indenture Act of 1939 (15 U.S.C.
77ggg(b)) is amended by striking ``Commission, but, in the case'' and
all that follows and inserting ``Commission.''.
SEC. 8. COMPARABILITY PROVISIONS.
(a) Commission Demonstration Project.--Subpart C of part III of
title 5, United States Code, is amended by adding at the end the
following:
``CHAPTER 48--AGENCY PERSONNEL DEMONSTRATION PROJECT
``Sec.
``4801. Nonapplicability of chapter 47.
``4802. Securities and Exchange Commission.
``Sec. 4801. Nonapplicability of chapter 47
``Chapter 47 shall not apply to this chapter.
``Sec. 4802. Securities and Exchange Commission
``(a) In this section, the term `Commission' means the Securities
and Exchange Commission.
``(b) The Commission may appoint and fix the compensation of such
officers, attorneys, economists, examiners, and other employees as may
be necessary for carrying out its functions under the securities laws
as defined under section 3 of the Securities Exchange Act of 1934 (15
U.S.C. 78c).
``(c) Rates of basic pay for all employees of the Commission may be
set and adjusted by the Commission without regard to the provisions of
chapter 51 or subchapter III of chapter 53.
``(d) The Commission may provide additional compensation and
benefits to employees of the Commission if the same type of
compensation or benefits are then being provided by any agency referred
to under section 1206 of the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 (12 U.S.C. 1833b) or, if not then being
provided, could be provided by such an agency under applicable
provisions of law, rule, or regulation. In setting and adjusting the
total amount of compensation and benefits for employees, the Commission
shall consult with, and seek to maintain comparability with, the
agencies referred to under section 1206 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1833b).
``(e) The Commission shall consult with the Office of Personnel
Management in the implementation of this section.
``(f) This section shall be administered consistent with merit
system principles.''.
(b) Employees Represented by Labor Organizations.--To the extent
that any employee of the Securities and Exchange Commission is
represented by a labor organization with exclusive recognition in
accordance with chapter 71 of title 5, United States Code, no reduction
in base pay of such employee shall be made by reason of enactment of
this section (including the amendments made by this section).
(c) Implementation Plan and Report.--
(1) Implementation plan.--
(A) In general.--The Securities and Exchange Commission
shall develop a plan to implement section 4802 of title 5,
United States Code, as added by this section.
(B) Inclusion in annual performance plan and report.--The
Securities and Exchange Commission shall include--
(i) the plan developed under this paragraph in the
annual program performance plan submitted under section
1115 of title 31, United States Code; and
(ii) the effects of implementing the plan developed
under this paragraph in the annual program performance
report submitted under section 1116 of title 31, United
States Code.
(2) Implementation report.--
(A) In general.--Before implementing the plan developed
under paragraph (1), the Securities and Exchange Commission
shall submit a report to the Committee on Governmental Affairs
and the Committee on Banking, Housing, and Urban Affairs of the
Senate, the Committee on Government Reform and the Committee on
Financial Services of the House of Representatives, and the
Office of Personnel Management on the details of the plan.
(B) Content.--The report under this paragraph shall
include--
(i) evidence and supporting documentation justifying
the plan; and
(ii) budgeting projections on costs and benefits
resulting from the plan.
(d) Technical and Conforming Amendments.--
(1) Amendments to title 5, united states code.--
(A) The table of chapters for part III of title 5, United
States Code, is amended by adding at the end of subpart C the
following:
``48. Agency Personnel Demonstration Project..................
4801.''.
(B) Section 3132(a)(1) of title 5, United States Code, is
amended--
(i) in subparagraph (C), by striking ``or'' after the
semicolon;
(ii) in subparagraph (D), by inserting ``or'' after the
semicolon; and
(iii) by adding at the end the following:
``(E) the Securities and Exchange Commission;''.
(C) Section 5373(a) of title 5, United States Code, is
amended--
(i) in paragraph (2), by striking ``or'' after the
semicolon;
(ii) in paragraph (3), by striking the period and
inserting ``; or''; and
(iii) by adding at the end the following:
``(4) section 4802.''.
(2) Amendment to securities exchange act of 1934.--Section 4(b)
of the Securities Exchange Act of 1934 (15 U.S.C. 78d(b)) is
amended by striking paragraphs (1) and (2) and inserting the
following:
``(1) Appointment and compensation.--The Commission shall
appoint and compensate officers, attorneys, economists, examiners,
and other employees in accordance with section 4802 of title 5,
United States Code.
``(2) Reporting of information.--In establishing and adjusting
schedules of compensation and benefits for officers, attorneys,
economists, examiners, and other employees of the Commission under
applicable provisions of law, the Commission shall inform the heads
of the agencies referred to under section 1206 of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 1833b) and Congress of such compensation and benefits and
shall seek to maintain comparability with such agencies regarding
compensation and benefits.''.
(3) Amendment to firrea of 1989.--Section 1206 of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 1833b) is amended by striking ``the Thrift Depositor
Protection Oversight Board of the Resolution Trust Corporation''.
SEC. 9. STUDY OF THE EFFECT OF FEE REDUCTIONS.
(a) Study.--The Office of Economic Analysis of the Securities and
Exchange Commission (hereinafter referred to as the ``Office'') shall
conduct a study of the extent to which the benefits of reductions in
fees effected as a result of this Act are passed on to investors.
(b) Factors for Consideration.--In conducting the study under
subsection (a), the Office shall--
(1) consider the various elements of the securities industry
directly and indirectly benefiting from the fee reductions,
including purchasers and sellers of securities, members of national
securities exchanges, issuers, broker-dealers, underwriters,
participants in investment companies, retirement programs, and
others;
(2) consider the impact on different types of investors, such
as individual equity holders, individual investment company
shareholders, businesses, and other types of investors;
(3) include in the interpretation of the term ``investor''
shareholders of entities subject to the fee reductions; and
(4) consider the economic benefits to investors flowing from
the fee reductions to include such factors as market efficiency,
expansion of investment opportunities, and enhanced liquidity and
capital formation.
(c) Report to Congress.--Not later than 2 years after the date of
the enactment of this Act, the Securities and Exchange Commission shall
submit to the Congress the report prepared by the Office on the
findings of the study conducted under subsection (a).
SEC. 10. STUDY OF CONVERSION TO SELF-FUNDING.
(a) GAO Study Required.--The Comptroller General shall conduct a
study of the impact, implications, and consequences of converting the
Securities and Exchange Commission to a self-funded basis. Such study
shall include analysis of the following issues:
(1) SEC operations.--The impact of such conversion on the
Commission's operations, including staff quality, recruitment, and
retention.
(2) Congressional oversight.--The implications for
congressional oversight of the Commission, including whether
imposing annual expenditure limitations would be beneficial to such
oversight.
(3) Fees.--The likely consequences of the conversion on the
rates, collection procedures, and predictability of fees collected
by the Commission.
(4) Appropriations.--The methods by which the conversion may be
accomplished without reducing the availability of offsetting
collections for appropriations.
(5) Other matters.--Such other impacts, implications, and
consequences as the Comptroller General may consider relevant to
congressional consideration of the question of such conversion.
(b) Submission of Report.--The Comptroller General shall submit to
the Committees on Financial Services and Government Reform of the House
of Representatives and the Committees on Banking, Housing, and Urban
Affairs and Governmental Affairs of the Senate a report on the study
required by subsection (a) no later than 180 days after the date of the
enactment of this Act.
(c) Definition.--For the purposes of this section, the term ``self-
funded basis'' means that--
(1) an agency is authorized to deposit the receipts of its
collections in the Treasury of the United States, or in a
depository institution, but such deposits are not treated as
Government funds or appropriated monies, and are available for the
salaries and other expenses of the Commission and its employees
without annual appropriation or apportionment; and
(2) the agency is authorized to employ and fix the salaries and
other compensation of its officers and employees, and such salaries
and other compensation are paid without regard to the provisions of
other laws applicable to officers and employees of the United
States.
SEC. 11. EFFECTIVE DATES.
(a) In General.--Except as provided in subsections (b) and (c), the
amendments made by this Act shall take effect on October 1, 2001.
(b) Immediate Transaction Fee Reductions.--The amendments made by
section 2 shall take effect on the later of--
(1) the first day of fiscal year 2002; or
(2) thirty days after the date on which a regular appropriation
to the Commission for such fiscal year is enacted.
(c) Additional Exceptions.--The authorities provided by section
6(b)(9) of the Securities Act of 1933 and sections 13(e)(9), 14(g)(9),
and 31(k) of the Securities Exchange Act of 1934, as so designated by
this Act, shall not apply until October 1, 2002.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.