[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 143 Reported in Senate (RS)]






                                                        Calendar No. 20
107th CONGRESS
  1st Session
                                 S. 143

                           [Report No. 107-3]

To amend the Securities Act of 1933 and the Securities Exchange Act of 
1934, to reduce securities fees in excess of those required to fund the 
    operations of the Securities and Exchange Commission, to adjust 
compensation provisions for employees of the Commission, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 22, 2001

Mr. Gramm (for himself, Mr. Schumer, Mr. Hagel, Mr. Enzi, Mr. Bennett, 
Mr. Bunning, Mr. Bond, Mr. Torricelli, Mr. Allard, Mr. Crapo, Mr. Bayh, 
 Mr. Miller, Mrs. Boxer, Mr. Ensign, and Mr. Santorum) introduced the 
 following bill; which was read twice and referred to the Committee on 
                  Banking, Housing, and Urban Affairs

                             March 14, 2001

                Reported by Mr. Gramm, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
To amend the Securities Act of 1933 and the Securities Exchange Act of 
1934, to reduce securities fees in excess of those required to fund the 
    operations of the Securities and Exchange Commission, to adjust 
compensation provisions for employees of the Commission, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE; TABLE OF CONTENTS.</DELETED>

<DELETED>    (a) Short Title.--This Act may be cited as the 
``Competitive Market Supervision Act of 2001''.</DELETED>
<DELETED>    (b) Table of Contents.--The table of contents for this Act 
is as follows:</DELETED>

<DELETED>Sec. 1. Short title; table of contents.
<DELETED>Sec. 2. Reduction in registration fee rates; elimination of 
                            general revenue component.
<DELETED>Sec. 3. Reduction in merger and tender fee rates; 
                            reclassification as offsetting collections.
<DELETED>Sec. 4. Reduction in transaction fees; elimination of general 
                            revenue component.
<DELETED>Sec. 5. Adjustments to fee rates.
<DELETED>Sec. 6. Comparability provisions.
<DELETED>Sec. 7. Effective date.

<DELETED>SEC. 2. REDUCTION IN REGISTRATION FEE RATES; ELIMINATION OF 
              GENERAL REVENUE COMPONENT.</DELETED>

<DELETED>    Section 6(b) of the Securities Act of 1933 (15 U.S.C. 
77f(b)) is amended--</DELETED>
        <DELETED>    (1) by striking paragraph (2) and inserting the 
        following:</DELETED>
        <DELETED>    ``(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 amount determined 
        under the rate established by paragraph (3). The Commission 
        shall publish in the Federal Register notices of the fee rate 
        applicable under this section for each fiscal 
        year.'';</DELETED>
        <DELETED>    (2) by striking paragraph (3);</DELETED>
        <DELETED>    (3) by redesignating paragraphs (4) and (5) as 
        paragraphs (3) and (4), respectively;</DELETED>
        <DELETED>    (4) in paragraph (3), as redesignated--</DELETED>
                <DELETED>    (A) by striking subparagraph (A) and 
                inserting the following:</DELETED>
                <DELETED>    ``(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 
                per $1,000,000 of the maximum aggregate price at which 
                the securities are proposed to be offered:</DELETED>
                        <DELETED>    ``(i) $67 for each of fiscal years 
                        2002 through 2006.</DELETED>
                        <DELETED>    ``(ii) $33 for fiscal year 2007 
                        and each fiscal year thereafter.''; 
                        and</DELETED>
                <DELETED>    (B) in subparagraph (B), by striking 
                ``this paragraph (4)'' and inserting ``this 
                paragraph''; and</DELETED>
        <DELETED>    (5) by striking paragraph (4), as redesignated, 
        and inserting the following:</DELETED>
        <DELETED>    ``(4) Pro rata application of rate.--The rate 
        required by this subsection shall be applied pro rata to 
        amounts and balances equal to or less than 
        $1,000,000.''.</DELETED>

<DELETED>SEC. 3. REDUCTION IN MERGER AND TENDER FEE RATES; 
              RECLASSIFICATION AS OFFSETTING COLLECTIONS.</DELETED>

<DELETED>    (a) Section 13.--Section 13(e)(3) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78m(e)(3)) is amended to read as 
follows:</DELETED>
        <DELETED>    ``(3) Fees.--</DELETED>
                <DELETED>    ``(A) In general.--At the time of the 
                filing of any statement that the Commission may require 
                by rule pursuant to paragraph (1), the person making 
                the filing shall pay to the Commission a fee equal to--
                </DELETED>
                        <DELETED>    ``(i) $67 for each $1,000,000 of 
                        the value of the securities proposed to be 
                        purchased, for each of fiscal years 2002 
                        through 2006; and</DELETED>
                        <DELETED>    ``(ii) $33 for each $1,000,000 of 
                        the value of securities proposed to be 
                        purchased, for fiscal year 2007 and each fiscal 
                        year thereafter.</DELETED>
                <DELETED>    ``(B) Reduction.--The fee required by this 
                paragraph shall be reduced with respect to securities 
                in an amount equal to any fee paid with respect to any 
                securities issued in connection with the proposed 
                transaction under section 6(b) of the Securities Act of 
                1933, or the fee paid under that section shall be 
                reduced in an amount equal to the fee paid to the 
                Commission in connection with such transaction under 
                this paragraph.</DELETED>
                <DELETED>    ``(C) Limitation; deposit of fees.--
                </DELETED>
                        <DELETED>    ``(i) Limitation.--Except as 
                        provided in subparagraph (D), no amounts shall 
                        be collected pursuant to this paragraph for any 
                        fiscal year, except to the extent provided in 
                        advance in appropriations Acts.</DELETED>
                        <DELETED>    ``(ii) Deposit of fees.--Fees 
                        collected during any fiscal year pursuant to 
                        this paragraph shall be deposited and credited 
                        as offsetting collections in accordance with 
                        appropriations Acts.</DELETED>
                <DELETED>    ``(D) Lapse of appropriations.--If, on the 
                first day of a fiscal year, a regular appropriation to 
                the Commission has not been enacted for that fiscal 
                year, 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.</DELETED>
                <DELETED>    ``(E) Pro rata application of rate.--The 
                rate required by this paragraph shall be applied pro 
                rata to amounts and balances equal to or less than 
                $1,000,000.''.</DELETED>
<DELETED>    (b) Section 14.--</DELETED>
        <DELETED>    (1) Preliminary proxy solicitations.--Section 
        14(g)(1) of the Securities Exchange Act of 1934 (15 U.S.C. 
        78n(g)(1)) is amended--</DELETED>
                <DELETED>    (A) in subparagraph (A), by striking 
                ``Commission the following fees'' and all that follows 
                through the end of the subparagraph and inserting 
                ``Commission--</DELETED>
                        <DELETED>    ``(i) for preliminary proxy 
                        solicitation material involving an acquisition, 
                        merger, or consolidation, if there is a 
                        proposed payment of each or transfer of 
                        securities or property to shareholders, a fee 
                        equal to--</DELETED>
                                <DELETED>    ``(I) $67 for each 
                                $1,000,000 of such proposed payment, or 
                                of the value of such securities or 
                                other property proposed to be 
                                transferred, for each of fiscal years 
                                2002 through 2006; and</DELETED>
                                <DELETED>    ``(II) $33 for each 
                                $1,000,000 of such proposed payment, or 
                                of the value of such securities or 
                                other property proposed to be 
                                transferred, for fiscal year 2007 and 
                                each fiscal year thereafter; 
                                and</DELETED>
                        <DELETED>    ``(ii) for preliminary proxy 
                        solicitation material involving a proposed sale 
                        or other disposition of substantially all of 
                        the assets of a company, a fee equal to--
                        </DELETED>
                                <DELETED>    ``(I) $67 for each 
                                $1,000,000 of the cash or of the value 
                                of any securities or other property 
                                proposed to be received upon such sale 
                                or disposition, for each of fiscal 
                                years 2002 through 2006; and</DELETED>
                                <DELETED>    ``(II) $33 for each 
                                $1,000,000 of the cash or of the value 
                                of any securities or other property 
                                proposed to be received upon such sale 
                                or disposition, for fiscal year 2007 
                                and each fiscal year 
                                thereafter.'';</DELETED>
                <DELETED>    (B) in subparagraph (B), by inserting 
                ``Reduction.--'' before ``The fee''; and</DELETED>
                <DELETED>    (C) by adding at the end the 
                following:</DELETED>
                <DELETED>    ``(C) Limitation; deposit of fees.--
                </DELETED>
                        <DELETED>    ``(i) Limitation.--Except as 
                        provided in subparagraph (D), no amounts shall 
                        be collected pursuant to this paragraph for any 
                        fiscal year, except to the extent provided in 
                        advance in appropriations Acts.</DELETED>
                        <DELETED>    ``(ii) Deposit of fees.--Fees 
                        collected during any fiscal year pursuant to 
                        this paragraph shall be deposited and credited 
                        as offsetting collections in accordance with 
                        appropriations Acts.</DELETED>
                <DELETED>    ``(D) Lapse of appropriations.--If, on the 
                first day of a fiscal year, a regular appropriation to 
                the Commission has not been enacted for that fiscal 
                year, 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.</DELETED>
                <DELETED>    ``(E) Pro rata application of rate.--The 
                rate required by this paragraph shall be applied pro 
                rata to amounts and balances equal to or less than 
                $1,000,000.''.</DELETED>
        <DELETED>    (2) Other filings.--Section 14(g)(3) of the 
        Securities Exchange Act of 1934 (15 U.S.C. 78n(g)(3)) is 
        amended--</DELETED>
                <DELETED>    (A) by striking ``At the time'' and 
                inserting the following: ``Other filings.--</DELETED>
                <DELETED>    ``(A) Fee rate.--At the time'';</DELETED>
                <DELETED>    (B) by striking ``the Commission a fee 
                of'' and all that follows through ``The fee'' and 
                inserting the following: ``the Commission a fee equal 
                to--</DELETED>
                        <DELETED>    ``(i) $67 for each $1,000,000 of 
                        the aggregate amount of cash or of the value of 
                        securities or other property proposed to be 
                        offered, for each of fiscal years 2002 through 
                        2006; and</DELETED>
                        <DELETED>    ``(ii) $33 for each $1,000,000 of 
                        the aggregate amount of cash or of the value of 
                        securities or other property proposed to be 
                        offered, for fiscal year 2007 and each fiscal 
                        year thereafter.</DELETED>
                <DELETED>    ``(B) Reduction.--The fee required under 
                subparagraph (A)''; and</DELETED>
                <DELETED>    (C) by adding at the end the 
                following:</DELETED>
                <DELETED>    ``(C) Limitation; deposit of fees.--
                </DELETED>
                        <DELETED>    ``(i) Limitation.--Except as 
                        provided in subparagraph (D), no amounts shall 
                        be collected pursuant to this paragraph for any 
                        fiscal year, except to the extent provided in 
                        advance in appropriations Acts.</DELETED>
                        <DELETED>    ``(ii) Deposit of fees.--Fees 
                        collected during any fiscal year pursuant to 
                        this paragraph shall be deposited and credited 
                        as offsetting collections in accordance with 
                        appropriations Acts.</DELETED>
                <DELETED>    ``(D) Lapse of appropriations.--If, on the 
                first day of a fiscal year, a regular appropriation to 
                the Commission has not been enacted for that fiscal 
                year, 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.</DELETED>
                <DELETED>    ``(E) Pro rata application of rate.--The 
                rate required by this paragraph shall be applied pro 
                rata to amounts and balances equal to or less than 
                $1,000,000.''.</DELETED>

<DELETED>SEC. 4. REDUCTION IN TRANSACTION FEES; ELIMINATION OF GENERAL 
              REVENUE COMPONENT.</DELETED>

<DELETED>    Section 31 of the Securities Exchange Act of 1934 (15 
U.S.C. 78ee) is amended--</DELETED>
        <DELETED>    (1) by striking subsections (b) through (d) and 
        inserting the following:</DELETED>
<DELETED>    ``(b) Transaction Fees.--</DELETED>
        <DELETED>    ``(1) In general.--Each national securities 
        exchange and national securities association shall pay to the 
        Commission a fee at a rate equal to the transaction offsetting 
        collection rate described in paragraph (2) of the aggregate 
        dollar amount of sales of securities (other than bonds, 
        debentures, and other evidences of indebtedness)--</DELETED>
                <DELETED>    ``(A) transacted on such national 
                securities exchange;</DELETED>
                <DELETED>    ``(B) transacted by or through any member 
                of such association otherwise than on a national 
                securities exchange of securities registered on such an 
                exchange; and</DELETED>
                <DELETED>    ``(C) transacted by or through any member 
                of such association otherwise than on a national 
                securities exchange of securities that are 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 subparagraph (B).</DELETED>
        <DELETED>    ``(2) Fee rate.--</DELETED>
                <DELETED>    ``(A) Transaction offsetting collection 
                rate.--For purposes of this subsection, the 
                `transaction offsetting collection rate' for a fiscal 
                year--</DELETED>
                        <DELETED>    ``(i) is the uniform rate required 
                        to reach the transaction fee cap for that 
                        fiscal year; and</DELETED>
                        <DELETED>    ``(ii) shall become effective on 
                        the later of the beginning of that fiscal year 
                        or the date of enactment of appropriations 
                        legislation setting such rate.</DELETED>
                <DELETED>    ``(B) Transaction fee cap.--For purposes 
                of this paragraph, the `transaction fee cap' shall be 
                equal to--</DELETED>
                        <DELETED>    ``(i) $497,000,000 for fiscal year 
                        2002;</DELETED>
                        <DELETED>    ``(ii) $607,000,000 for fiscal 
                        year 2003;</DELETED>
                        <DELETED>    ``(iii) $706,000,000 for fiscal 
                        year 2004;</DELETED>
                        <DELETED>    ``(iv) $896,000,000 for fiscal 
                        year 2005;</DELETED>
                        <DELETED>    ``(v) $1,094,000,000 for fiscal 
                        year 2006;</DELETED>
                        <DELETED>    ``(vi) $554,000,000 for fiscal 
                        year 2007;</DELETED>
                        <DELETED>    ``(vii) $580,000,000 for fiscal 
                        year 2008;</DELETED>
                        <DELETED>    ``(viii) $719,000,000 for fiscal 
                        year 2009; and</DELETED>
                        <DELETED>    ``(ix) $884,000,000 for fiscal 
                        year 2010 and each fiscal year 
                        thereafter.</DELETED>
<DELETED>    ``(c) Limitation; Deposit of Fees.--</DELETED>
        <DELETED>    ``(1) Limitation.--Except as provided in 
        subsection (d), no amount may be collected pursuant to 
        subsection (b) for any fiscal year, except to the extent 
        provided in advance in appropriation Acts.</DELETED>
        <DELETED>    ``(2) Deposit of fees.--Fees collected during any 
        fiscal year pursuant to this section shall be deposited and 
        credited as offsetting collections in accordance with 
        appropriations Acts.</DELETED>
<DELETED>    ``(d) Lapse of Appropriations.--If, on the first day of a 
fiscal year, a regular appropriation to the Commission has not been 
enacted for that fiscal year, the Commission shall continue to collect 
fees (as offsetting collections) under this section at the rate in 
effect during the preceding fiscal year (prior to adjustments, if any, 
under subsections (b) and (c) of section 5 of the Competitive Market 
Supervision Act), until such a regular appropriation is 
enacted.'';</DELETED>
        <DELETED>    (2) in subsection (e), by striking ``subsections 
        (b), (c), and (d)'' and inserting ``subsection (b)''; 
        and</DELETED>
        <DELETED>    (3) in subsection (g), by striking ``rates'' and 
        inserting ``rate''.</DELETED>

<DELETED>SEC. 5. ADJUSTMENTS TO FEE RATES.</DELETED>

<DELETED>    (a) Estimates of Collections.--</DELETED>
        <DELETED>    (1) Fee projections.--The Securities and Exchange 
        Commission (hereafter in this Act referred to as the 
        ``Commission'') shall, 1 month after submission of its initial 
        report under subsection (e)(1) and on a monthly basis 
        thereafter, project the aggregate amount of fees from all 
        sources likely to be collected by the Commission during the 
        current fiscal year.</DELETED>
        <DELETED>    (2) Submission of information.--Each national 
        securities exchange and national securities association shall 
        file with the Commission, not later than 10 days after the end 
        of each month--</DELETED>
                <DELETED>    (A) an estimate of the fee required to be 
                paid pursuant to section 31 of the Securities Exchange 
                Act of 1934 by such national securities exchange or 
                national securities association for transactions and 
                sales occurring during such month; and</DELETED>
                <DELETED>    (B) such other information and documents 
                as the Commission may require, as necessary or 
                appropriate to project the aggregate amount of fees 
                pursuant to paragraph (1).</DELETED>
<DELETED>    (b) Floor for Total Fee Collections.--If, at any time 
after the end of the first half of the fiscal year, the Commission 
projects under subsection (a) that the aggregate amount of fees 
collected by the Commission will, during that fiscal year, fall below 
an amount equal to the floor for total fee collections, the Commission 
may by order, subject to subsection (e), increase the fee rate 
established under section 31 of the Securities Exchange Act of 1934 to 
the extent necessary to bring estimated collections to an amount equal 
to the floor for total fee collections. Such increase shall apply only 
to transactions and sales occurring on or after the effective date 
specified in such order through August 31 of that fiscal year. Such 
increase shall not affect the obligation of each national securities 
exchange and national securities association to pay the Commission the 
fee required by section 31 of the Securities Exchange Act of 1934 at 
the fee rate in effect prior to the effective date of such order for 
transactions and sales occurring prior to the effective date of such 
order. 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.</DELETED>
<DELETED>    (c) Cap on Total Fee Collections.--If, at any time after 
the end of the first half of the fiscal year, the Commission projects 
under subsection (a) that the aggregate amount of fees collected by the 
Commission will exceed the cap on total fee collections by more than 5 
percent during any fiscal year, the Commission shall by order, subject 
to subsection (e), decrease the fee rate or suspend collection of fees 
under section 31 of the Securities Exchange Act of 1934 to the extent 
necessary to bring estimated collections to an amount equal to the cap 
on total fee collections. Such decrease or suspension shall apply only 
to transactions and sales occurring on or after the effective date 
specified in such order through August 31 of that fiscal year. Such 
decrease or suspension shall not affect the obligation of each national 
securities exchange and national securities association to pay the 
Commission the fee required by section 31 of the Securities Exchange 
Act of 1934 at the fee rate in effect prior to the effective date of 
such order for transactions and sales occurring prior to the effective 
date of such order. 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.</DELETED>
<DELETED>    (d) Definitions.--For purposes of this section--</DELETED>
        <DELETED>    (1) the term ``floor for total fee collections'' 
        means the greater of--</DELETED>
                <DELETED>    (A) the total amount appropriated to the 
                Commission for fiscal year 2002 (adjusted annually, 
                based on the annual percentage change, if any, in the 
                Consumer Price Index for all urban consumers, as 
                published by the Department of Labor); or</DELETED>
                <DELETED>    (B) the amount authorized for the 
                Commission pursuant to section 35 of the Securities 
                Exchange Act of 1934 (15 U.S.C. 78kk), if applicable; 
                and</DELETED>
        <DELETED>    (2) the term ``cap on total fee collections'' 
        means--</DELETED>
                <DELETED>    (A) for fiscal years 2002 through 2010, 
                the baseline amount for aggregate offsetting 
                collections for such fiscal year under section 6(b) of 
                the Securities Act of 1933 and section 31 of the 
                Securities Exchange Act of 1934, as projected for such 
                fiscal year by the Congressional Budget Office pursuant 
                to section 257 of the Balanced Budget and Emergency 
                Deficit Control Act of 1985 in its most recently 
                published report of its baseline projection before the 
                date of enactment of this Act; and</DELETED>
                <DELETED>    (B) for fiscal years 2011 and thereafter, 
                the amount authorized for the Commission pursuant to 
                section 35 of the Securities Exchange Act of 1934 (15 
                U.S.C. 78kk).</DELETED>
<DELETED>    (e) Reports to Congress; Judicial Review; Notice.--
</DELETED>
        <DELETED>    (1) Initial report.--Not later than 90 days after 
        the date of enactment of this Act, the Commission shall report 
        to the Committee on Banking, Housing, and Urban Affairs of the 
        Senate and the Committee on Financial Services of the House of 
        Representatives to explain the methodology used by the 
        Commission to make projections under subsection (a). Not later 
        than 30 days after the beginning of each fiscal year, the 
        Commission may report to the Committee on Banking, Housing, and 
        Urban Affairs of the Senate and the Committee on Financial 
        Services of the House of Representatives on revisions to the 
        methodology used by the Commission to make projections under 
        subsection (a) for such fiscal year and subsequent fiscal 
        years.</DELETED>
        <DELETED>    (2) Judicial review; reports of intent to act.--
        The determinations made and the actions taken by the Commission 
        under this subsection shall not be subject to judicial review. 
        Not later than 45 days before taking action under subsection 
        (b) or (c), the Commission shall report to the Committee on 
        Banking, Housing, and Urban Affairs of the Senate and the 
        Committee on Financial Services of the House of Representatives 
        on its intent to take such action.</DELETED>
        <DELETED>    (3) Notice.--Not later than 30 days before taking 
        action under subsection (b) or (c), the Commission shall notify 
        each national securities exchange and national securities 
        association of its intent to take such action.</DELETED>

<DELETED>SEC. 6. COMPARABILITY PROVISIONS.</DELETED>

<DELETED>    (a) Securities and Exchange Commission Employees.--
</DELETED>
        <DELETED>    (1) In general.--Section 4(b) of the Securities 
        Exchange Act of 1934 (15 U.S.C. 78d(b)) is amended--</DELETED>
                <DELETED>    (A) by striking paragraphs (1) and (2) and 
                inserting the following:</DELETED>
        <DELETED>    ``(1) Appointment and compensation.--</DELETED>
                <DELETED>    ``(A) In general.--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 this Act.</DELETED>
                <DELETED>    ``(B) Rates of pay.--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 of title 5, United States Code.</DELETED>
                <DELETED>    ``(C) Comparability.--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(a) 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(a) of the Financial Institutions Reform, 
                Recovery, and Enforcement Act of 1989 (12 U.S.C. 
                1833b).''; and</DELETED>
                <DELETED>    (B) by redesignating paragraph (3) as 
                paragraph (2).</DELETED>
        <DELETED>    (2) Employees represented by labor 
        organizations.--To the extent that any employee of the 
        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 
        subsection.</DELETED>
<DELETED>    (b) Reporting on Information by the Commission.--Section 
1206 of the Financial Institutions Reform, Recovery, and Enforcement 
Act of 1989 (12 U.S.C. 1833b) is amended--</DELETED>
        <DELETED>    (1) by inserting ``(a) In General.--'' before 
        ``The Federal Deposit'';</DELETED>
        <DELETED>    (2) by striking ``the Thrift Depositor Protection 
        Oversight Board of the Resolution Trust Corporation''; 
        and</DELETED>
        <DELETED>    (3) by adding at the end the following:</DELETED>
<DELETED>    ``(b) In establishing and adjusting schedules of 
compensation and benefits for employees of the Securities and Exchange 
Commission under applicable provisions of law, the Commission shall 
inform the heads of the agencies referred to under subsection (a) and 
Congress of such compensation and benefits and shall seek to maintain 
comparability with such agencies regarding compensation and 
benefits.''.</DELETED>
<DELETED>    (c) Technical Amendments.--</DELETED>
        <DELETED>    (1) Section 3132(a)(1) of title 5, United States 
        Code, is amended--</DELETED>
                <DELETED>    (A) in subparagraph (C), by striking 
                ``or'' after the semicolon;</DELETED>
                <DELETED>    (B) in subparagraph (D), by inserting 
                ``or'' after the semicolon; and</DELETED>
                <DELETED>    (C) by adding at the end the 
                following:</DELETED>
                <DELETED>    ``(E) the Securities and Exchange 
                Commission.''.</DELETED>
        <DELETED>    (2) Section 5373(a) of title 5, United States 
        Code, is amended--</DELETED>
                <DELETED>    (A) in paragraph (2), by striking ``or'' 
                after the semicolon;</DELETED>
                <DELETED>    (B) in paragraph (3), by striking the 
                period and inserting ``; or''; and</DELETED>
                <DELETED>    (C) by adding at the end the 
                following:</DELETED>
        <DELETED>    ``(4) section 4(b) of the Securities Exchange Act 
        of 1934.''.</DELETED>

<DELETED>SEC. 7. EFFECTIVE DATE.</DELETED>

<DELETED>    (a) In General.--Subject to subsection (b), this Act and 
the amendments made by this Act shall become effective on October 1, 
2001.</DELETED>
<DELETED>    (b) Exceptions.--The authorities provided by section 
13(e)(3)(D), section 14(g)(1)(D), section 14(g)(3)(D), and section 
31(d) of the Securities Exchange Act of 1934, as so designated by this 
Act, shall not apply until October 1, 2002.</DELETED>

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Competitive Market 
Supervision Act of 2001''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Reduction in registration fee rates; elimination of general 
                            revenue component.
Sec. 3. Reduction in merger and tender fee rates; reclassification as 
                            offsetting collections.
Sec. 4. Reduction in transaction fees; elimination of general revenue 
                            component.
Sec. 5. Adjustments to fee rates.
Sec. 6. Comparability provisions.
Sec. 7. Effective date.

SEC. 2. REDUCTION IN REGISTRATION FEE RATES; ELIMINATION OF GENERAL 
              REVENUE COMPONENT.

    (a) Securities Act of 1933.--Section 6(b) of the Securities Act of 
1933 (15 U.S.C. 77f(b)) is amended--
            (1) by striking paragraph (2) 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 that shall be equal to the amount determined 
        under the rate established by paragraph (3). The Commission 
        shall publish in the Federal Register notices of the fee rate 
        applicable under this section for each fiscal year.'';
            (2) by striking paragraph (3);
            (3) by redesignating paragraphs (4) and (5) as paragraphs 
        (3) and (4), respectively;
            (4) in paragraph (3), as redesignated--
                    (A) by striking subparagraph (A) and inserting the 
                following:
                    ``(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 
                per $1,000,000 of the maximum aggregate price at which 
                the securities are proposed to be offered:
                            ``(i) $67 for each of fiscal years 2002 
                        through 2006.
                            ``(ii) $33 for fiscal year 2007 and each 
                        fiscal year thereafter.''; and
                    (B) in subparagraph (B), by striking ``this 
                paragraph (4)'' and inserting ``this paragraph''; and
            (5) by striking paragraph (4), as redesignated, and 
        inserting the following:
            ``(4) Pro rata application of rate.--The rate required by 
        this subsection shall be applied pro rata to amounts and 
        balances equal to or less than $1,000,000.''.
    (b) Trust Indenture Act of 1939.--Section 307(b) of the Trust 
Indenture Act of 1939 (15 U.S.C. 77ggg(b)) is amended by striking ``, 
but, in the case of'' and all that follows through the end of the 
subsection and inserting a period.

SEC. 3. REDUCTION IN MERGER AND TENDER FEE RATES; RECLASSIFICATION AS 
              OFFSETTING COLLECTIONS.

    (a) Section 13.--Section 13(e)(3) of the Securities Exchange Act of 
1934 (15 U.S.C. 78m(e)(3)) is amended to read as follows:
            ``(3) Fees.--
                    ``(A) In general.--At the time of the filing of any 
                statement that the Commission may require by rule 
                pursuant to paragraph (1), the person making the filing 
                shall pay to the Commission a fee equal to--
                            ``(i) $67 for each $1,000,000 of the value 
                        of the securities proposed to be purchased, for 
                        each of fiscal years 2002 through 2006; and
                            ``(ii) $33 for each $1,000,000 of the value 
                        of securities proposed to be purchased, for 
                        fiscal year 2007 and each fiscal year 
                        thereafter.
                    ``(B) Reduction.--The fee required by this 
                paragraph shall be reduced with respect to securities 
                in an amount equal to any fee paid with respect to any 
                securities issued in connection with the proposed 
                transaction under section 6(b) of the Securities Act of 
                1933, or the fee paid under that section shall be 
                reduced in an amount equal to the fee paid to the 
                Commission in connection with such transaction under 
                this paragraph.
                    ``(C) Limitation; deposit of fees.--
                            ``(i) Limitation.--Except as provided in 
                        subparagraph (D), no amounts shall be collected 
                        pursuant to this paragraph for any fiscal year, 
                        except to the extent provided in advance in 
                        appropriations Acts.
                            ``(ii) Deposit of fees.--Fees collected 
                        during any fiscal year pursuant to this 
                        paragraph shall be deposited and credited as 
                        offsetting collections in accordance with 
                        appropriations Acts.
                    ``(D) Lapse of appropriations.--If, on the first 
                day of a fiscal year, a regular appropriation to the 
                Commission has not been enacted for that fiscal year, 
                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.
                    ``(E) Pro rata application of rate.--The rate 
                required by this paragraph shall be applied pro rata to 
                amounts and balances equal to or less than 
                $1,000,000.''.
    (b) Section 14.--
            (1) Preliminary proxy solicitations.--Section 14(g)(1) of 
        the Securities Exchange Act of 1934 (15 U.S.C. 78n(g)(1)) is 
        amended--
                    (A) in subparagraph (A), by striking ``Commission 
                the following fees'' and all that follows through the 
                end of the subparagraph and inserting ``Commission--
                            ``(i) for preliminary proxy solicitation 
                        material involving an acquisition, merger, or 
                        consolidation, if there is a proposed payment 
                        of each or transfer of securities or property 
                        to shareholders, a fee equal to--
                                    ``(I) $67 for each $1,000,000 of 
                                such proposed payment, or of the value 
                                of such securities or other property 
                                proposed to be transferred, for each of 
                                fiscal years 2002 through 2006; and
                                    ``(II) $33 for each $1,000,000 of 
                                such proposed payment, or of the value 
                                of such securities or other property 
                                proposed to be transferred, for fiscal 
                                year 2007 and each fiscal year 
                                thereafter; and
                            ``(ii) for preliminary proxy solicitation 
                        material involving a proposed sale or other 
                        disposition of substantially all of the assets 
                        of a company, a fee equal to--
                                    ``(I) $67 for each $1,000,000 of 
                                the cash or of the value of any 
                                securities or other property proposed 
                                to be received upon such sale or 
                                disposition, for each of fiscal years 
                                2002 through 2006; and
                                    ``(II) $33 for each $1,000,000 of 
                                the cash or of the value of any 
                                securities or other property proposed 
                                to be received upon such sale or 
                                disposition, for fiscal year 2007 and 
                                each fiscal year thereafter.'';
                    (B) in subparagraph (B), by inserting 
                ``Reduction.--'' before ``The fee''; and
                    (C) by adding at the end the following:
                    ``(C) Limitation; deposit of fees.--
                            ``(i) Limitation.--Except as provided in 
                        subparagraph (D), no amounts shall be collected 
                        pursuant to this paragraph for any fiscal year, 
                        except to the extent provided in advance in 
                        appropriations Acts.
                            ``(ii) Deposit of fees.--Fees collected 
                        during any fiscal year pursuant to this 
                        paragraph shall be deposited and credited as 
                        offsetting collections in accordance with 
                        appropriations Acts.
                    ``(D) Lapse of appropriations.--If, on the first 
                day of a fiscal year, a regular appropriation to the 
                Commission has not been enacted for that fiscal year, 
                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.
                    ``(E) Pro rata application of rate.--The rate 
                required by this paragraph shall be applied pro rata to 
                amounts and balances equal to or less than 
                $1,000,000.''.
            (2) Other filings.--Section 14(g)(3) of the Securities 
        Exchange Act of 1934 (15 U.S.C. 78n(g)(3)) is amended--
                    (A) by striking ``At the time'' and inserting the 
                following: ``Other filings.--
                    ``(A) Fee rate.--At the time'';
                    (B) by striking ``the Commission a fee of'' and all 
                that follows through ``The fee'' and inserting the 
                following: ``the Commission a fee equal to--
                            ``(i) $67 for each $1,000,000 of the 
                        aggregate amount of cash or of the value of 
                        securities or other property proposed to be 
                        offered, for each of fiscal years 2002 through 
                        2006; and
                            ``(ii) $33 for each $1,000,000 of the 
                        aggregate amount of cash or of the value of 
                        securities or other property proposed to be 
                        offered, for fiscal year 2007 and each fiscal 
                        year thereafter.
                    ``(B) Reduction.--The fee required under 
                subparagraph (A)''; and
                    (C) by adding at the end the following:
                    ``(C) Limitation; deposit of fees.--
                            ``(i) Limitation.--Except as provided in 
                        subparagraph (D), no amounts shall be collected 
                        pursuant to this paragraph for any fiscal year, 
                        except to the extent provided in advance in 
                        appropriations Acts.
                            ``(ii) Deposit of fees.--Fees collected 
                        during any fiscal year pursuant to this 
                        paragraph shall be deposited and credited as 
                        offsetting collections in accordance with 
                        appropriations Acts.
                    ``(D) Lapse of appropriations.--If, on the first 
                day of a fiscal year, a regular appropriation to the 
                Commission has not been enacted for that fiscal year, 
                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.
                    ``(E) Pro rata application of rate.--The rate 
                required by this paragraph shall be applied pro rata to 
                amounts and balances equal to or less than 
                $1,000,000.''.

SEC. 4. REDUCTION IN TRANSACTION FEES; ELIMINATION OF GENERAL REVENUE 
              COMPONENT.

    Section 31 of the Securities Exchange Act of 1934 (15 U.S.C. 78ee) 
is amended--
            (1) by striking subsections (b) through (d) and inserting 
        the following:
    ``(b) Transaction Fees.--
            ``(1) In general.--Each national securities exchange and 
        national securities association shall pay to the Commission a 
        fee at a rate equal to the transaction offsetting collection 
        rate described in paragraph (2) of the aggregate dollar amount 
        of sales of securities (other than bonds, debentures, other 
        evidences of indebtedness, and security futures products)--
                    ``(A) transacted on such national securities 
                exchange; and
                    ``(B) transacted by or through any member of such 
                association otherwise than on a national securities 
                exchange of securities that are--
                            ``(i) registered on such an exchange; or
                            ``(ii) subject to prompt last sale 
                        reporting pursuant to the rules of the 
                        Commission or a registered national securities 
                        association.
            ``(2) Fee rate.--
                    ``(A) Transaction offsetting collection rate.--For 
                purposes of this subsection, the `transaction 
                offsetting collection rate' for a fiscal year--
                            ``(i) is the uniform rate required to reach 
                        the transaction fee cap for that fiscal year; 
                        and
                            ``(ii) shall become effective on the later 
                        of the beginning of that fiscal year or 30 days 
                        after the date of enactment of appropriations 
                        legislation setting such rate.
                    ``(B) Transaction fee cap.--Subject to subparagraph 
                (C), for purposes of this paragraph, the `transaction 
                fee cap' shall be equal to--
                            ``(i) $915,000,000 for fiscal year 2002;
                            ``(ii) $1,115,000,000 for fiscal year 2003;
                            ``(iii) $1,340,000,000 for fiscal year 
                        2004;
                            ``(iv) $1,665,000,000 for fiscal year 2005;
                            ``(v) $2,010,000,000 for fiscal year 2006;
                            ``(vi) $1,015,000,000 for fiscal year 2007;
                            ``(vii) $1,035,000,000 for fiscal year 
                        2008;
                            ``(viii) $1,225,000,000 for fiscal year 
                        2009;
                            ``(ix) $1,430,000,000 for fiscal year 2010; 
                        and
                            ``(x) $1,665,000,000 for fiscal year 2011 
                        and each fiscal year thereafter.
                    ``(C) Reduction.--The amounts specified in clauses 
                (i) through (x) of subparagraph (B) shall be reduced by 
                the amount of assessments estimated to be collected by 
                the Commission for the subject fiscal year pursuant to 
                subsection (e).
    ``(c) Limitation; Deposit of Fees and Assessments.--
            ``(1) Limitation.--Except as provided in subsection (d), no 
        amount may be collected pursuant to subsection (b) or (e) for 
        any fiscal year, except to the extent provided in advance in 
        appropriations Acts.
            ``(2) Deposit of fees and assessments.--Fees and 
        assessments collected during any fiscal year pursuant to this 
        section shall be deposited and credited as offsetting 
        collections in accordance with appropriations Acts.
    ``(d) Lapse of Appropriations.--If, on the first day of a fiscal 
year, a regular appropriation to the Commission has not been enacted 
for that fiscal year, the Commission shall, until such a regular 
appropriation is enacted--
            ``(1) continue to collect fees (as offsetting collections) 
        under subsection (b) at the rate in effect during the preceding 
        fiscal year (prior to adjustments, if any, under subsections 
        (b) and (c) of section 5 of the Competitive Market Supervision 
        Act of 2001); and
            ``(2) continue to collect assessments (as offsetting 
        collections) under subsection (e) at the assessment rate in 
        effect during the preceding fiscal year.'';
            (2) in subsection (e), by striking ``Assessments 
        collected'' and all that follows through the period; and
            (3) in subsection (f), by striking ``(f)'' and all that 
        follows through ``paid--'' and inserting the following:
    ``(f) Dates for Payment of Fees and Assessments.--The fees and 
assessments required by subsections (b) and (e) shall be paid--''.

SEC. 5. ADJUSTMENTS TO FEE RATES.

    (a) Estimates of Collections.--
            (1) Fee projections.--The Securities and Exchange 
        Commission (hereafter in this Act referred to as the 
        ``Commission'') shall, 1 month after submission of its initial 
        report under subsection (e)(1) and on a monthly basis 
        thereafter, project the aggregate amount of fees and 
        assessments from all sources likely to be collected by the 
        Commission during the current fiscal year.
            (2) Submission of information.--Each national securities 
        exchange and national securities association shall file with 
        the Commission, not later than 10 days after the end of each 
        month--
                    (A) an estimate of the fee and the assessment 
                required to be paid pursuant to section 31 of the 
                Securities Exchange Act of 1934 by such national 
                securities exchange or national securities association 
                for transactions and sales occurring during that month; 
                and
                    (B) such other information and documents as the 
                Commission may require, as necessary or appropriate to 
                project the aggregate amount of fees and assessments 
                pursuant to paragraph (1).
    (b) Floor for Total Fee and Assessment Collections.--If, at any 
time after the end of the first half of the fiscal year, the Commission 
projects under subsection (a) that the aggregate amount of fees and 
assessments collected by the Commission will, during that fiscal year, 
fall below an amount equal to the floor for total fee and assessment 
collections, the Commission may, by order, subject to subsection (e) of 
this section, increase the fee rate established under section 31(b)(2) 
of the Securities Exchange Act of 1934, to the extent necessary to 
bring estimated collections to an amount equal to the floor for total 
fee collections. Such increase shall apply only to transactions and 
sales occurring on or after the effective date specified in such order 
through August 31 of that fiscal year. Such increase shall not affect 
the obligation of each national securities exchange and national 
securities association to pay to the Commission the fee required by 
section 31(b) of the Securities Exchange Act of 1934, at the fee rate 
in effect prior to the effective date of such order for transactions 
and sales occurring prior to the effective date of such order. 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.
    (c) Cap on Total Fee and Assessment Collections.--If, at any time 
after the end of the first half of the fiscal year, the Commission 
projects under subsection (a) that the aggregate amount of fees and 
assessments collected by the Commission will exceed the cap on total 
fee and assessment collections by more than 10 percent during any 
fiscal year, the Commission shall, by order, subject to subsection (e), 
decrease the fee rate established under paragraph (2) of section 31(b) 
of the Securities Exchange Act of 1934, or suspend collection of fees 
under that section 31(b), to the extent necessary to bring estimated 
collections to an amount that is not more than 110 percent of the cap 
on total fee collections. Such decrease or suspension shall apply only 
to transactions and sales occurring on or after the effective date 
specified in such order through August 31 of that fiscal year. Such 
decrease or suspension shall not affect the obligation of each national 
securities exchange and national securities association to pay to the 
Commission the fee required by section 31(b) of the Securities Exchange 
Act of 1934, at the fee rate in effect prior to the effective date of 
such order for transactions and sales occurring prior to the effective 
date of such order. 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.
    (d) Definitions.--For purposes of this section--
            (1) the term ``floor for total fee and assessment 
        collections'' means the greater of--
                    (A) the total amount appropriated to the Commission 
                for fiscal year 2002 (adjusted annually, based on the 
                annual percentage change, if any, in the Consumer Price 
                Index for all urban consumers, as published by the 
                Department of Labor); or
                    (B) the amount authorized for the Commission 
                pursuant to section 35 of the Securities Exchange Act 
                of 1934 (15 U.S.C. 78kk), if applicable; and
            (2) the term ``cap on total fee collections'' means--
                    (A) for fiscal years 2002 through 2011, the 
                baseline amount for aggregate offsetting collections 
                for such fiscal year under section 6(b) of the 
                Securities Act of 1933 and section 31 of the Securities 
                Exchange Act of 1934, as projected for such fiscal year 
                by the Congressional Budget Office pursuant to section 
                257 of the Balanced Budget and Emergency Deficit 
                Control Act of 1985 in its most recently published 
                report of its baseline projection before the date of 
                enactment of this Act; and
                    (B) for fiscal years 2012 and thereafter, the 
                amount authorized for the Commission pursuant to 
                section 35 of the Securities Exchange Act of 1934 (15 
                U.S.C. 78kk).
    (e) Reports to Congress; Judicial Review; Notice.--
            (1) Initial report.--Not later than 90 days after the date 
        of enactment of this Act, the Commission shall report to the 
        Committee on Banking, Housing, and Urban Affairs of the Senate 
        and the Committee on Financial Services of the House of 
        Representatives to explain the methodology used by the 
        Commission to make projections under subsection (a). Not later 
        than 30 days after the beginning of each fiscal year, the 
        Commission may report to the Committee on Banking, Housing, and 
        Urban Affairs of the Senate and the Committee on Financial 
        Services of the House of Representatives on revisions to the 
        methodology used by the Commission to make projections under 
        subsection (a) for such fiscal year and subsequent fiscal 
        years.
            (2) Judicial review; reports of intent to act.--The 
        determinations made and the actions taken by the Commission 
        under this subsection shall not be subject to judicial review. 
        Not later than 45 days before taking action under subsection 
        (b) or (c), the Commission shall report to the Committee on 
        Banking, Housing, and Urban Affairs of the Senate and the 
        Committee on Financial Services of the House of Representatives 
        on its intent to take such action.
            (3) Notice.--Not later than 30 days before taking action 
        under subsection (b) or (c), the Commission shall notify each 
        national securities exchange and national securities 
        association of its intent to take such action.

SEC. 6. COMPARABILITY PROVISIONS.

    (a) Securities and Exchange Commission Employees.--
            (1) In general.--Section 4(b) of the Securities Exchange 
        Act of 1934 (15 U.S.C. 78d(b)) is amended--
                    (A) by striking paragraphs (1) and (2) and 
                inserting the following:
            ``(1) Appointment and compensation.--
                    ``(A) In general.--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 this 
                Act.
                    ``(B) Rates of pay.--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 of title 5, 
                United States Code.
                    ``(C) Comparability.--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(a) 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(a) of the Financial Institutions 
                Reform, Recovery, and Enforcement Act of 1989 (12 
                U.S.C. 1833b).''; and
                    (B) by redesignating paragraph (3) as paragraph 
                (2).
            (2) Employees represented by labor organizations.--To the 
        extent that any employee of the 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 
subsection.
    (b) Reporting on Information by the Commission.--Section 1206 of 
the Financial Institutions Reform, Recovery, and Enforcement Act of 
1989 (12 U.S.C. 1833b) is amended--
            (1) by inserting ``(a) In General.--'' before ``The Federal 
        Deposit'';
            (2) by striking ``the Thrift Depositor Protection Oversight 
        Board of the Resolution Trust Corporation''; and
            (3) by adding at the end the following:
    ``(b) In establishing and adjusting schedules of compensation and 
benefits for employees of the Securities and Exchange Commission under 
applicable provisions of law, the Commission shall inform the heads of 
the agencies referred to under subsection (a) and Congress of such 
compensation and benefits and shall seek to maintain comparability with 
such agencies regarding compensation and benefits.''.
    (c) Technical Amendments.--
            (1) Section 3132(a)(1) of title 5, United States Code, is 
        amended--
                    (A) in subparagraph (C), by striking ``or'' after 
                the semicolon;
                    (B) in subparagraph (D), by inserting ``or'' after 
                the semicolon; and
                    (C) by adding at the end the following:
                    ``(E) the Securities and Exchange Commission.''.
            (2) Section 5373(a) of title 5, United States Code, is 
        amended--
                    (A) in paragraph (2), by striking ``or'' after the 
                semicolon;
                    (B) in paragraph (3), by striking the period and 
                inserting ``; or''; and
                    (C) by adding at the end the following:
            ``(4) section 4(b) of the Securities Exchange Act of 
        1934.''.

SEC. 7. EFFECTIVE DATE.

    (a) In General.--Subject to subsection (b), this Act and the 
amendments made by this Act shall become effective on October 1, 2001.
    (b) Exceptions.--The authorities provided by section 13(e)(3)(D), 
section 14(g)(1)(D), section 14(g)(3)(D), and section 31(d) of the 
Securities Exchange Act of 1934, as so designated by this Act, shall 
not apply until October 1, 2002.




                                                        Calendar No. 20

107th CONGRESS

  1st Session

                                 S. 143

                           [Report No. 107-3]

_______________________________________________________________________

                                 A BILL

To amend the Securities Act of 1933 and the Securities Exchange Act of 
1934, to reduce securities fees in excess of those required to fund the 
    operations of the Securities and Exchange Commission, to adjust 
compensation provisions for employees of the Commission, and for other 
                               purposes.

_______________________________________________________________________

                             March 14, 2001

                       Reported with an amendment