[Congressional Record Volume 140, Number 146 (Saturday, October 8, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: October 8, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
CONTINUATION OF CERTAIN FEE COLLECTIONS FOR THE SECURITIES AND EXCHANGE 
                               COMMISSION

  Mr. BUMPERS. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of H.R. 5060, a bill to continue 
certain SEC fee collections, just received from the House; that bill be 
deemed read three times, passed, and the motion to reconsider be laid 
upon the table; and, further, that any statements on this measure 
appear in the Record at the appropriate place, as though read.
  The PRESIDENT pro tempore. Without objection, it is so ordered.
  So the bill (H.R. 5060) was deemed read three times, and passed.
  Mr. MOYNIHAN. Mr. President, under the current circumstances, there 
is little choice but to support this legislation to provide adequate 
funding for the Securities and Exchange Commission [SEC] for fiscal 
year 1995. However, as chairman of the Finance Committee, I have 
significant concerns about the Appropriations Committee, I have 
significant concerns about the Appropriations Committee increasing fees 
for an agency which is already raising considerably more money than it 
spends. This action involves the Appropriations Committee in a matter 
which has clear revenue-raising implications and I will seek to avert 
in the future any repetition of this situation. Let me take a few 
minutes to explain to the Senate the circumstances which have brought 
us to this point.
  The SEC collects fees for the registration of securities, the filing 
of certain documents, transactions in stock exchanges, and certain 
other activities under its regulatory jurisdiction. Since fiscal year 
1983, the fees collected have substantially exceeded the amount of 
SEC's annual funding requirements. In fact, in fiscal years 1986, 1987, 
1994, the fees collected were more than double the agency's funding 
requirements.
  Until recently, all SEC fees were deposited in the general fund of 
the Treasury as revenues and the SEC was funded entirely through the 
annual appropriations process. However, due to increasing budgetary 
pressures on discretionary spending, beginning fiscal year 1991, the 
Appropriations Committee began providing part of the SEC's annual 
funding requirements by increasing the rate of registration fees under 
section 6(b) of the Securities Act of 1933 and classifying the 
incremental increase as offsetting collections--that is, funds 
available to the agency without further appropriation.
  The Appropriations Committee's recent practice of providing part of 
the SEC's funding requirements through increases in the section 6(b) 
fees has increased those particular fees from a rate of1/50th of 1 
percent in 1989, to 1/40th in 1990 and 1991; 1/32 of 1 percent in 1992 
and 1993; and 1/29th in 1994. Due to these actions,the aggregate 
section 6(b) fees collected increased from $109 million in fiscal year 
1989 to an estimated $457 million 1994.
  This combination of circumstances has produced the current anomalous 
situation where the Appropriations Committee for the last 4 years has 
imposed additional fees to fund the operations of an agency which was 
already bringing in substantially more money than it was spending.
  Mr. President, as chairman of the Finance Committee, I am well aware 
of the budgetary pressures on the Appropriations Committee which has 
led that committee to seek additional sources of funding. However, when 
an agency is already raising more fees than its total budget, it is 
clear that its fees are being used for revenue-raising--a matter within 
the jurisdiction of the Committee on Finance.
  Therefore, while current circumstances require passage of these SEC 
fee increases to fund that agency for fiscal year 1995, I will resist 
similar increases in the future as a means of supplementing annual 
appropriations. I look forward, next year, to working with my colleague 
so the appropriations and banking committees to find a reasonable 
formula for ensuring adequate annual funding of the SEC without 
recourse to revenue legislation.

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