[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 657 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                H. R. 657

 To amend the Securities Exchange Act of 1934 to augment the emergency 
          authority of the Securities and Exchange Commission.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 11, 2003

Mr. Garrett of New Jersey (for himself, Mr. Oxley, Mr. Baker, Mr. Frank 
   of Massachusetts, Mr. Kanjorski, and Mr. Emanuel) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL


 
 To amend the Securities Exchange Act of 1934 to augment the emergency 
          authority of the Securities and Exchange Commission.

    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 ``Emergency Securities Response Act of 
2003''.

SEC. 2. EXTENSION OF EMERGENCY ORDER AUTHORITY OF THE SECURITIES 
              EXCHANGE COMMISSION.

    (a) Extension of Authority.--Paragraph (2) of section 12(k) of the 
Securities Exchange Act of 1934 (15 U.S.C. 78l(k)(2)) is amended to 
read as follows:
            ``(2) Emergency orders.--(A) The Commission, in an 
        emergency, may by order summarily take such action to alter, 
        supplement, suspend, or impose requirements or restrictions 
        with respect to any matter or action subject to regulation by 
        the Commission or a self-regulatory organization under the 
        securities laws, as the Commission determines is necessary in 
        the public interest and for the protection of investors--
                    ``(i) to maintain or restore fair and orderly 
                securities markets (other than markets in exempted 
                securities);
                    ``(ii) to ensure prompt, accurate, and safe 
                clearance and settlement of transactions in securities 
                (other than exempted securities); or
                    ``(iii) to reduce, eliminate, or prevent the 
                substantial disruption by the emergency of (I) 
                securities markets, investment companies, or any other 
                significant portion or segment of such markets, or (II) 
                the transmission or processing of securities 
                transactions.
            ``(B) An order of the Commission under this paragraph (2) 
        shall continue in effect for the period specified by the 
        Commission, and may be extended. Except as provided in 
        subparagraph (C), the Commission's action may not continue in 
        effect for more than 30 business days, including extensions. If 
        the actions described in subparagraph (A) involve a security 
        futures product, the Commission shall consult with and consider 
        the views of the Commodity Futures Trading Commission. In 
        exercising its authority under this paragraph, the Commission 
        shall not be required to comply with the provisions of section 
        553 of title 5, United States Code, or with the provisions of 
        section 19(c) of this title.
            ``(C) An order of the Commission under this paragraph (2) 
        may be extended to continue in effect for more than 30 business 
        days if, at the time of the extension, the Commission finds 
        that the emergency still exists and determines that the 
        continuation of the order beyond 30 business days is necessary 
        in the public interest and for the protection of investors to 
        attain an objective described in clause (i), (ii), or (iii) of 
        subparagraph (A). In no event shall an order of the Commission 
        under this paragraph (2) continue in effect for more than 90 
        calendar days.''.
    (b) Definition of Emergency.--Paragraph (6) of section 12(k) of the 
Securities Exchange Act of 1934 (15 U.S.C. 78l(k)(6)) is amended to 
read as follows:
            ``(6) Definitions.--
                    ``(A) Emergency.--For purposes of this subsection, 
                the term `emergency' means--
                            ``(i) a major market disturbance 
                        characterized by or constituting--
                                    ``(I) sudden and excessive 
                                fluctuations of securities prices 
                                generally, or a substantial threat 
                                thereof, that threaten fair and orderly 
                                markets; or
                                    ``(II) a substantial disruption of 
                                the safe or efficient operation of the 
                                national system for clearance and 
                                settlement of transactions in 
                                securities, or a substantial threat 
                                thereof; or
                            ``(i) a major disturbance that 
                        substantially disrupts, or threatens to 
                        substantially disrupt--
                                    ``(I) the functioning of securities 
                                markets, investment companies, or any 
                                other significant portion or segment of 
                                the securities markets; or
                                    ``(II) the transmission or 
                                processing of securities transactions.
                    ``(B) Securities laws.--Notwithstanding section 
                3(a)(47), for purposes of this subsection, the term 
                `securities laws' does not include the Public Utility 
                Holding Company Act of 1935 (15 U.S.C. 79a et seq.).''.
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