[Congressional Record Volume 140, Number 149 (Thursday, December 1, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: December 1, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                   WHEN CONGRESS DOESN'T DO ITS WORK

  Mr. PRESSLER. Mr. President, immediately before Congress recessed on 
October 8, 1994, the House of Representatives and the Senate passed 
H.R. 5060 to provide funding for the Securities and Exchange Commission 
for fiscal year 1995. The course which this legislation followed points 
up how damaging it can be for Congress to procrastinate and stumble 
about in passing legislation necessary to keep our Federal departments 
and agencies operating.
  Last July, the Senate passed its version of H.R. 4603, a bill making 
appropriations for the Departments of Commerce, Justice, and State, the 
Judiciary, and related agencies. Senate amendments to the bill included 
a provision extending for the Securities and Exchange Commission a 
self-financing, higher rate of fee for registering securities. The 
Senate Appropriations Committee forewarned in its report, ``If the 
House version of H.R. 4603 stands, the SEC will be forced to shut down 
and cease operations on October 1, 1994.''
  Nevertheless, because of a jurisdictional dispute between committees 
in the House, the Senate amendment extending the higher rate of fees 
was deleted in conference. Hence, it became necessary for the House 
finally to take up and pass a special measure (H.R. 5060) extending the 
higher rate of registration fees for fiscal year 1995. The bill was not 
received in the Senate until September 27.

  Members of Congress had been forewarned by the Senate Appropriations 
Committee report of what might occur if funding for the Securities and 
Exchange Commission were not provided by October 1, 1994. Further, 
Arthur Levitt, the capable and highly regarded Chairman of the 
Commission, stated in very clear terms what some of the consequences 
would be if funding were delayed beyond September 30. Nevertheless, the 
prior and continued delays resulted in the Senate not passing H.R. 5060 
until October 8.
  I am informed, Mr. President, the following resulted from failure to 
pass this legislation prior to October 1:
  From October 1 through October 9--date of enactment--fees paid by 
filers to register securities offerings were reduced from one twenty-
ninth to one-fiftieth of 1 percent of the offering amount, resulting in 
a loss of revenue to the Government of over $20 million.
  The Commission was forced to cancel 6 mutual fund inspections, 30 
broker-dealer examinations, 77 sessions of investigative testimony, and 
18 trips to pursue enforcement investigations.

  Executive and administrative staff also spent hundreds of hours 
trying to resolve the agency's budget crisis and preparing the agency's 
slowdown and possible shutdown.
  The staff prepared for a furlough of at least 3 days per week 
beginning mid-November and for severe reductions in overhead expenses: 
telephone, travel, mail, enforcement support, automated data services, 
and supplies.
  Mr. President, this is a glaring example of how the Government should 
not operate. Hundreds and hundreds of hours are lost in a fruitless 
effort to pass legislation necessary for the operation of an important 
agency. The agency is crippled in its operations. Law enforcement 
suffers. Over $20 million of taxpayer funds are lost--only to benefit 
large security registrants who shrewdly took advantage of the loophole 
created by Congress. I hope somehow we will learn from this experience.

                          ____________________