[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.