[Congressional Record Volume 142, Number 33 (Tuesday, March 12, 1996)]
[House]
[Pages H2050-H2053]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SECURITIES AND EXCHANGE COMMISSION AUTHORIZATION ACT OF 1996
Mr. OXLEY. Mr. Speaker, I move to suspend the rules and pass the bill
(H.R. 2972) To authorize appropriations for the Securities and Exchange
Commission, to reduce the fees collected under the Federal securities
laws, and for other purposes, as amended.
The Clerk read as follows:
H.R. 2972
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 ``Securities and Exchange
Commission Authorization Act of 1996''.
SEC. 2. PURPOSES.
The purposes of this Act are--
(1) to authorize appropriations for the Securities and
Exchange Commission for fiscal year 1997; and
(2) to reduce over time the rates of fees charged under the
Federal securities laws.
SEC. 3. AUTHORIZATION OF APPROPRIATIONS.
Section 35 of the Securities Exchange Act of 1934 is
amended to read as follows:
``SEC. 35. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out the
functions, powers, and duties of the Commission $317,000,000
for fiscal year 1997.''.
SEC. 4. REGISTRATION FEES.
Section 6(b) of the Securities Act of 1933 (15 U.S.C.
77f(b)) is amended to read as follows:
``(b) Registration Fee.--
``(1) Recovery of cost of services.--The Commission shall,
in accordance with this subsection, collect registration fees
that are designed to recover the costs to the government of
the securities registration process, and costs related to
such process, including enforcement activities, policy and
rulemaking activities, administration, legal services, and
international regulatory activities.
``(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 sum of the
amounts (if any) determined under the rates established by
paragraphs (3) and (4). The Commission shall publish in the
Federal Register notices of the fee rates applicable under
this section for each fiscal year. In no case shall the fee
required by this subsection be less than $200, except that
during fiscal year 2002 or any succeeding fiscal year such
minimum fee shall be $182.
``(3) General revenue fees.--The rate determined under this
paragraph is a rate equal to $200 for each $1,000,000 of the
maximum aggregate price at which such securities are proposed
to be offered, except that during fiscal year 2002 and any
succeeding fiscal year such rate is equal to $182 for each
$1,000,000 of the maximum aggregate price at which such
securities are proposed to be offered. Fees collected during
any fiscal year pursuant to this paragraph shall be deposited
and credited as general revenues of the Treasury.
``(4) Offsetting collection fees.--
``(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 for each $1,000,000 of the
maximum aggregate price at which such securities are proposed
to be offered:
``(i) $103 during fiscal year 1997;
``(ii) $70 during fiscal year 1998;
``(iii) $38 during fiscal year 1999;
``(iv) $17 during fiscal year 2000; and
``(v) $0 during fiscal year 2001 or any succeeding fiscal
year.
``(B) Limitation; deposit.--Except as provided in
subparagraph (C), no amounts shall be collected pursuant to
this paragraph (4) for any fiscal year except to the extent
provided in advance in appropriations acts. Fees collected
during any fiscal year pursuant to this paragraph shall be
deposited and credited as offsetting collections in
accordance with appropriations Acts.
``(C) Lapse of appropriations.--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 paragraph at the rate
in effect during the preceding fiscal year, until such a
regular appropriation is enacted.''.
SEC. 5. TRANSACTION FEES.
(a) Amendment.--Section 31 of the Securities Exchange Act
of 1934 (15 U.S.C. 78ee) is amended to read as follows:
``SEC. 31. TRANSACTION FEES.
``(a) Recovery of Cost of Services.--The Commission shall,
in accordance with this subsection, collect transaction fees
that are designed to recover the costs to the Government of
the supervision and regulation of securities markets and
securities professionals, and costs related to such
supervision and regulation, including enforcement activities,
policy and rulemaking activities, administration, legal
services, and international regulatory activities.
``(b) Exchange-Traded Securities.--Every national
securities exchange shall pay to the Commission a fee at a
rate equal to $33 for each $1,000,000 of the aggregate dollar
amount of sales of securities (other than bonds, debentures,
and other evidences of indebtedness) transacted on such
national securities exchange, except that for fiscal year
2002 or any succeeding fiscal year such rate shall be equal
to $25 for each $1,000,000 of such aggregate dollar amount of
sales. Fees collected pursuant to this subsection shall be
deposited and collected as general revenue of the Treasury.
``(c) Off-Exchange-Trades of Exchange-Registered
Securities.--Every national securities association shall pay
to the Commission a fee at a rate equal $33 for each
$1,000,000 of the aggregate dollar amount of sales transacted
by or through any member of such association otherwise than
on a national securities exchange of securities registered on
such an exchange (other than bonds, debentures, and other
evidences of indebtedness), except that for fiscal year 2002
or any succeeding fiscal year such rate shall be equal to $25
for each $1,000,000 of such aggregate dollar amount of sales.
Fees collected pursuant to this subsection shall be deposited
and collected as general revenue of the Treasury.
``(d) Off-Exchange-Trades of Last-Sale-Reported
Securities.--
``(1) Covered transactions.--Every national securities
association shall pay to the Commission a fee at a rate equal
to the dollar amount determined under paragraph (2) for each
$1,000,000 of the aggregate dollar amount of sales transacted
by or through any member of such association otherwise than
on a national securities exchange of securities (other than
bonds, debentures, and other evidences of indebtedness)
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 subsection (c).
``(2) Fee rates.--Except as provided in paragraph (4), the
dollar amount determined under this paragraph is--
``(A) $12 for fiscal year 1997;
``(B) $14 for fiscal year 1998;
``(C) $17 for fiscal year 1999;
``(D) $18 for fiscal year 2000;
``(E) $20 for fiscal year 2001; and
``(F) $25 for fiscal year 2002 or for any succeeding fiscal
year.
``(3) Limitation; deposit of fees.--Except as provided in
paragraph (4), no amounts shall be collected pursuant to this
subsection (d) for any fiscal year beginning before October
1, 2001, except to the extent provided in advance in
appropriations Acts. Fees collected during any such fiscal
year pursuant to this subsection shall be deposited and
credited as offsetting collections to the account providing
appropriations to the Commission, except that any amounts in
excess of the following amounts (and any amount collected for
fiscal years beginning on or after October 1, 2001) shall be
deposited and credited as general revenues of the Treasury:
``(A) $20,000,000 for fiscal year 1997;
``(B) $26,000,000 for fiscal year 1998;
``(C) $32,000,000 for fiscal year 1999;
``(D) $32,000,000 for fiscal year 2000;
``(E) $32,000,000 for fiscal year 2001; and
``(F) $0 for fiscal year 2002 and any succeeding fiscal
year.
``(4) Lapse of appropriations.--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 such a
regular appropriation is enacted.
``(e) Dates for Payment of Fees.--The fees required by
subsections (b), (c), and (d) of this section shall be paid--
``(1) on or before March 15, with respect to transactions
and sales occurring during the period beginning on the
preceding September 1 and ending at the close of the
preceding December 31; and
[[Page H2051]]
``(2) on or before September 30, with respect to
transactions and sales occurring during the period beginning
on the preceding January 1 and ending at the close of the
preceding August 31.
``(f) Exemptions.--The Commission, by rule, may exempt any
sale of securities or any class of sales of securities from
any fee imposed by this section, if the Commission finds that
such exemption is consistent with the public interest, the
equal regulation of markets and brokers and dealers, and the
development of a national market system.
``(g) Publication.--The Commission shall publish in the
Federal Register notices of the fee rates applicable under
this section for each fiscal year.''.
(b) Effective Dates; Transition.--
(1) In general.--Except as provided in paragraph (2), the
amendment made by subsection (a) shall apply with respect to
transactions in securities that occur on or after January 1,
1997.
(2) Off-exchange trades of last sale reported
transactions.--The amendment made by subsection (a) shall
apply with respect to transactions described in section
31(d)(1) of the Securities Exchange Act of 1934 (as amended
by subsection (a) of this section) that occur on or after
September 1, 1996.
(3) Rule of construction.--Nothing in this subsection shall
be construed to affect the obligation of national securities
exchanges and registered brokers and dealers under section 31
of the Securities Exchange Act of 1934 (15 U.S.C. 78ee) as in
effect prior to the amendment made by subsection (a) to make
the payments required by such section on March 15, 1997.
SEC. 6. TIME FOR PAYMENT.
Section 4(e) of the Securities Exchange Act of 1934 (15
U.S.C. 78d(e)) is amended by inserting before the period at
the end thereof the following: ``and the Commission may also
specify the time that such fee shall be determined and paid
relative to the filing of any statement or document with the
Commission''.
SEC. 7. SENSE OF THE CONGRESS CONCERNING FEES.
It is the sense of the Congress that--
(1) the fees authorized by the amendments made by this Act
are in lieu of, and not in addition to, any fees that the
Securities and Exchange Commission is authorized to impose or
collect pursuant to section 9701 of title 31, United States
Code; and
(2) in order to maintain the competitiveness of United
States securities markets relative to foreign markets, no fee
should be assessed on transactions involving portfolios of
equity securities taking place at times of day characterized
by low volume and during non-traditional trading hours.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Ohio [Mr. Oxley] and the gentleman from Massachusetts [Mr. Markey] will
each be recognized for 20 minutes.
The Chair recognizes the gentleman from Ohio [Mr. Oxley].
Mr. OXLEY. Mr. Speaker, I yield myself such time as I may consume.
(Mr. OXLEY asked and was given permission to include extraneous
material.)
Mr. OXLEY. Mr. Speaker, today I am pleased to rise in support of H.R.
2972, the SEC Reauthorization Act of 1996. This legislation provides a
long-term mechanism for funding the SEC. In addition, it reduces the
fees charged by the SEC by over $751 million dollars through 2002.
Members of both parties have expressed concern with the amount of fee
revenue collected by the SEC, which currently is more than double the
cost of running the agency.
Currently the SEC takes in over $600 million in fees annually, and
costs approximately $300 million to run. This surplus in fee revenue
over the cost of running the agency amounts to a tax on capital paid by
all investors--including small investors investing in individual
retirement accounts for their retirement. Members of both parties are
rightly concerned with promoting savings and growth, and this tax on
capital represents an impediment to that growth. With the cooperation
of Chairman Rogers of the Commerce, Justice, State, and Judiciary
Subcommittee of the Appropriations Committee, and Chairman Archer of
the Ways and Means Committee, we have been able to work out a sensible
plan to reduce these fees. We also have agreed on a procedure for more
orderly and certain funding of the SEC. I am pleased that the
legislation has the support and cosponsorship of my friends, John
Dingell, ranking member of the Commerce Committee, and Ed Markey,
ranking member of the Telecommunications and Finance Subcommittee of
the Commerce Committee. Additionally, I have received a letter from
Chairman Levitt of the SEC endorsing the legislation.
Mr. Speaker, I include for the Record this letter from Chairman
Levitt, and letters addressed to the chairman of the committee, the
gentleman from Virginia [Mr. Bliley].
U.S. Securities and
Exchange Commission,
Washington, DC, February 27, 1996.
Hon. Thomas J. Bliley, Jr.,
Chairman, Committee on Commerce,
Washington, DC.
Dear Tom: I write to offer my support and endorsement of
the ``Securities and Exchange Commission Authorization Act of
1996.'' Thank you for your strong leadership and the support
of Chairman Fields, Rogers and Archer in designing a creative
approach to the SEC's funding both on a short-term and long
term basis.
Your proposed resolution to the perennial problem of SEC
funding and fees is perhaps the most important aspect of the
``Securities and Exchange Commission Authorization Act of
1996.'' The funding mechanism for the SEC would reduce
Section 6(b) fees over a five-year period and expand existing
securities transaction fees to the over-the-counter market,
recognizing that the Commission also oversees those markets.
Under your proposal, the SEC also has agreed to act to
eliminate fees that it collects pursuant to the Independent
Offices Appropriation Act of 1952 (``IOAA fees''), which
include a fee of $250 that must be paid in connection with
filings of annual reports and certain periodic filings.
Finally, the SEC would gradually move from reliance on
increased offsetting fees towards full appropriation status.
The Commission believes that adoption of this approach
provides a long-term solution to the SEC's funding problems.
Finally, the premier aspects of the SEC Authorization Bill
is that it enables us to maintain our vigorous programs to
both protect investors and ensure that the capital formation
system in the U.S. markets is efficient. This legislation
will help the agency avoid the funding problems it has had in
the past, and enable the SEC to be funded entirely through
appropriations by the year 2001.
David Cavicke has been extremely helpful in this important
initiative. We look forward to working with you and your
staff toward final passage of this authorization legislation.
Sincerely,
Arthur Levitt.
____
House of Representatives,
Committee on Ways and Means,
Washington, DC, March 8, 1996.
Hon. Thomas J. Bliley, Jr.,
Chairman, Committee on Commerce,
Washington, DC.
Dear Mr. Chairman: I am writing to you today to thank you
for working with me on issues of jurisdictional concern to
the Committee on Ways and Means regarding H.R. 2972, the
Securities and Exchange Commission Authorization Act of 1996.
In light of the agreement reached between you, Chairman
Rogers, and me to phase down the rate of certain SEC fees, I
am proud to cosponsor this legislation with you.
As you know, I am strongly committed to protecting the
jurisdictional interests of the Committee on Ways and Means
and to ensuring that all revenue measures are properly
referred to this Committee. To this end, the Committee on
Ways and Means relies upon the statement issued by Speaker
Foley in January 1991 (and reiterated by Speaker Gingrich on
January 4, 1995) regarding the jurisdiction of the House
Committees with respect to fees and revenue measures.
Pursuant to that statement, the Committee on Ways and Means
generally will not assert jurisdiction over ``true''
regulatory fees that met the following requirements:
(i) The fees are assessed and collected solely to cover the
costs of specified regulatory activities (not including
public information activities and other activities benefiting
the public in general);
(ii) The fees are assessed and collected only in such
manner as may reasonably be expected to result in an
aggregate amount collected during any fiscal year which does
not exceed the aggregate amount of the regulatory costs
referred to in (i) above;
(iii) The only persons subject to the fees are those who
directly avail themselves of, or are directly subject to, the
regulatory activities referred to in (i) above; and
(iv) The amounts of the fees (a) are structured such that
any person's liability for such fees is reasonably based on
the proportion of the regulatory activities which relate to
such person, and (b) are nondiscriminatory between foreign
and domestic entities.
Additionally, pursuant to the Speaker's statement, the mere
reauthorization of a preexisting fee that had not
historically been considered a tax would not necessarily
require a sequential referral to the Committee on Ways and
Means. However, if such a preexisting fee were fundamentally
changed, it properly should be referred to the Committee on
Ways and Means.
The fees described in H.R. 2972 clearly do not meet all
four requirements set forth above. If they were being newly
created or were fundamentally different from existing fees,
the Committee on Ways and Means would ask that they be
referred to it, in accordance with its jurisdictional
prerogative. However, the Committee on Ways and Means
understands that these fees have been in place for many
decades and are not being fundamentally changed by H.R. 2972.
Further, H.R. 2972 provides that the fee structure eventually
will reflect the four requirements set forth above.
Therefore, it is not necessary for the Committee on Ways and
Means to assert its jurisdictional interest at this time.
However, I would emphasize that, if the fee structure set
forth in H.R. 2972 is modified in
[[Page H2052]]
the future, the Committee on Ways and Means will take all
action necessary to protect its proper jurisdictional
interest. For example, the Committee on Ways and Means will
view any modification as falling within its jurisdiction if
such modification would result in fee collections in excess
of the amount required to fund the relevant regulatory
activities of the Securities and Exchange Commission.
With regard to budgetary issues, I am concerned about any
legislation that may worsen the pay-as-you-go accounts, thus
threatening a sequester. I understand that the Congressional
Budget Office believes that H.R. 2972 will not create a debit
on the pay-go accounts or a potential sequester of
entitlement programs. I also understand that H.R. 2972 will
not increase the deficit within the current budget window. I
very much appreciate your cooperation in solving these
budgetary problems for purposes of House consideration of
H.R. 2972.
Finally, I would respectfully request that you include a
copy of this letter in the Record during consideration of
H.R. 2972 on the Floor. I wish to thank you again, Mr.
Chairman, for your full cooperation and the cooperation of
your staff. With best personal regards,
Sincerely,
Bill Archer,
Chairman.
____
House of Representatives,
Committee on Appropriations,
Washington, DC, March 12, 1996.
Hon. Thomas J. Bliley, Jr.,
Chairman, Committee on Commerce,
Washington, DC.
Dear Mr. Chairman. As you know, I am a cosponsor of H.R.
2972, the Securities and Exchange Commission Authorization
Act of 1996. I believe it is important that, working
together, we find a way to end the uncertainty about the
SEC's funding that has been a continuing problem in the past
several years.
H.R. 2972 provides for a gradual reduction in the amount of
SEC fees that will be available to support the SEC's
operating budget over a six year period. This will require
that the amount of discretionary funds required just to
support the SEC's budget at its current level will have to be
increased by an estimated $25-35 million each year.
This amount of an increase each year will be a challenge,
during an era when the amount of overall discretionary funds
available to the Appropriations Committee will be declining,
as we seek to balance the budget in seven years. Nonetheless,
the Committee is prepared to try to the best of our ability
to make that happen, in the interest of bringing to a closure
the past years of uncertainty about how the SEC will be
funded.
However, I believe that this is the maximum amount we will
be in a position to attempt to accomplish. As this bill moves
forward, in working with the Senate, I would simply make the
point that a more rapid phase-out in the amount of fees
available to support the SEC budget would probably be
unworkable.
I appreciate the opportunity to work with you and Chairman
Archer, and I congratulate you on bringing this bill to the
floor. I would respectfully request that you include a copy
of this letter in the Record during consideration of H.R.
2972 on the Floor.
With best regards,
Sincerely,
Harold Rogers,
Chairman, Subcommittee on the Departments of Commerce,
Justice, and State, the Judiciary, and Related Agencies.
Mr. OXLEY. Mr. Speaker, I also want to pay special tribute to
Chairman Levitt for his leadership on this very important issue.
Without his help and guidance, Mr. Speaker, we would not be here today
with this I think very historic legislation.
Mr. Speaker, pursuant to this legislation, SEC fees are reduced by
$751 million between fiscal years 1997 to 2002. Thereafter, SEC fees
will be at least $256 million lower per annum than they would be under
current law.
Of equal importance is the fact that Chairman Rogers has agreed to
work with us to provide a more stable funding mechanism for the SEC, so
the Commission can focus on doing its important work rather than
devoting time to the problems of funding its operations. As SEC fees
are reduced, the SEC will be increasingly funded by an appropriation.
By 2002, the SEC will be entirely funded by means of an appropriation.
Fees collected by the SEC will approximately equal the cost of running
the agency, and will be deposited in the Treasury as general revenue.
This legislation will begin to solve the problems associated with
funding the SEC. It will also eliminate the surplus in SEC fees which
constitutes a tax on our capital markets. I urge its support by the
House.
Mr. Speaker, I reserve the balance of my time.
Mr. MARKEY. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I am pleased to rise this afternoon to join with
Commerce Committee Chairman Bliley, Subcommittee Chairman Jack Fields,
and the ranking Democrat on the Commerce Committee, John Dingell, in
support of the Securities and Exchange Commission's authorization for
fiscal year 1997. Each of them deserve praise for their efforts to
develop a solution to the persistent problem of how to provide a stable
funding mechanism for the SEC--an agency long recognized by Members of
both parties as one of the most effective, efficient and essential
anywhere in Government.
The funding mechanism contemplated by the bill is workable and
responsible, and deserves broad bipartisan support. Most significantly,
it removes the temptation that has seduced administrations, past and
present, to view securities registration fees as a source of general
revenues. Especially during the bull market of the last 6 years, these
fees have greatly exceeded the size of the SEC's overall budget.
I am, of course, reluctant to see revenues cut at a time when some
are seeking to slash the resources made available to support our
children's education, our elderly's right to retire with dignity, and
every person's right to a clean environment. At the same time however,
we must be certain that the gamesmanship that has surrounded SEC budget
deliberations for the last several years is ended permanently.
Notwithstanding my support for the bill coming before us today, I
continue to believe that the mission of the Securities and Exchange
Commission--to protect the Nation's 100 million investors and to ensure
fair and orderly markets--is so vital to our national interests that
the Commission should be self-funded, subject to annual Congressional
approval of its budget. Although I will continue to support the self-
funding concept, I am satisfied that the proposal before us today is a
significant step in the right direction, and I am pleased to endorse
it.
I am somewhat less sanguine about the size of the SEC budget as
contemplated by the legislation. In light of the record levels of
investment in our markets, the unprecedented number of new investors
attracted to them, the complexity of many of the securities that are
sold, the increasingly sophisticated marketing techniques used to sell
them, and the growing volatility the market is experiencing as we
attempt to adjust to the remarkable altitudes we have recently reached,
the commitment of additional resources to this remarkable agency would
certainly be justified.
Here are some facts and figures worth keeping in mind when thinking
about the SEC's budget. In 1940, the SEC had 1,400 full-time staff.
Fifty-six years later, the SEC has 2,800 full-time staff. In 1940, the
typical daily trading volume on the New York Stock Exchange could be
counted in the thousands. Today, an average day involves 400 million
shares, and the New York Stock Exchange has increased its capacity to
handle well over a billion shares a day. Another 450 million shares are
traded on the NASDAQ, representing interests in more than 5,000
companies.
Of course the NASDAQ didn't even exist in 1940--it was invented in
1972. Derivatives didn't exist in 1940 either--nor did money market
funds, mortgage-backed securities, bond funds, hedge funds, junk bonds,
penny stocks, stock options, program trading, financial futures, poison
pills, or triple witching hours.
I've addressed the funding mechanism in the bill as well as my
concern about the SEC budget. Let me briefly touch upon why the
soundness of our system of securities regulation is so important, and
why trendy proposals to sweep away important aspects of securities laws
need to be considered carefully, lest they lead to unintended and
possibly devastating consequences.
For a rapidly growing number of Americans, and a vastly higher
percentage of the population than in 1940, hopes for the future--dreams
of being able to send a child to college, to buy a new home, or to
retire in dignity--are increasingly dependent on the stability,
integrity, and success of our financial markets. Indeed, this growing
dependence by individuals on the success of the market may be a stealth
contributor to middle class Americans' growing anxiety about the
future.
For tens of millions of Americans with stakes in the market through a
[[Page H2053]]
pension plan or mutual fund, the effectiveness and safety of our
markets, and the existence of a vital and vigorous SEC, is neither an
abstract nor an ideological issue.
The important bill brought before us today recognizes the crucial
role that the SEC plays in promoting fair, honest, and successful
capital markets.
{time} 1530
Again, I applaud the work of the gentleman from Virginia [Mr.
Bliley], chairman, the gentleman from Texas [Mr. Fields], chairman, and
all on the majority side who worked in a bipartisan fashion, especially
the gentleman from Ohio [Mr. Oxley], so that we could bring this bill
out here today. I speak for the gentleman from Michigan [Mr. Dingell],
the distinguished ranking member, in extending our plaudits to the
majority for their work.
This has been done in a bipartisan fashion, working in close
cooperation with Chairman Levitt of the Securities and Exchange
Commission and their staff to ensure that we could produce a budget
that would give predictable sources of revenue to the SEC for their
very important mission, especially in these coming months and years
when the aerodynamics of the existing market may in fact come into
question and we have to ensure that we have got an agency there that
can manage the consequences at that time.
Mr. Speaker, I reserve the balance of my time.
Mr. OXLEY. Mr. Speaker, I yield such time as he may consume to the
gentleman from Washington [Mr. White].
Mr. WHITE. Mr. Speaker, I thank the gentleman for yielding me the
time.
Mr. Speaker, this House and in particular our committee this year has
seen many hard bills but I am happy to say that this is an easy bill.
It is easy because it eliminates a surplus that the SEC is collecting,
saves a little money for the taxpayers. It makes sure that the SEC is
included under the appropriations process, as it ought to be and as I
think is appropriate.
It is a bipartisan bill which we have been able to work on with our
Democratic colleagues, and that is always a step in the right direction
and, last but not least, it does some great things for my district. We
consider ourselves in the Seattle area to be the capital formation
capital of the Pacific Northwest and of the entire Northwest United
States. This will help us do in Seattle what we need to do to make sure
we prosper and keep those capital markets running.
I was very happy to support this bill in committee, and I am
delighted to support it here on the floor. I would urge all my
colleagues to do the same.
Mr. RICHARDSON. Mr. Speaker, I rise in support of H.R. 2972, the
Securities and Exchange Commission Reauthorization Act of 1996. I would
like to commend Commerce Chairman Bliley, Telecommunications and
Finance Subcommittee Chairman Fields, Ranking Member Dingell and Mr.
Markey of Massachusetts for their work on this piece of legislation
that meets this Congress' objectives of proper market oversight and
fiscal prudence.
H.R. 2972 is an excellent example of good government crafted with
bipartisan interests taken into account. I would like to commend SEC
Chairman Arthur Levitt for accepting the challenges that this tight
budget will impose upon an agency that watches over a larger herd than
ever.
As more and more Americans choose the securities markets to augment
their incomes, it is necessary to maintain the safeguards that make
U.S. markets the best.
This bill ensures that our regulatory structure remains sensible,
reasonable and cost-effective so that the U.S. marketplace remains
vigorous, efficient and attractive to capital formation. I am confident
that the SEC will maintain a regulatory environment that encourages
capital formation for small entrepreneurial businesses, which drive the
U.S. economy in most states like New Mexico.
Finally, the reliance on U.S. equity markets to play a role in the
income of average Americans requires vigilant enforcement of sound
rules that ensure investor protection and the maintenance of the
integrity and honesty of the U.S. capital markets.
In July of 1993, Chairman Levitt requested approximately $317 million
for fiscal year 1995. It is noteworthy and, indeed, a credit to the
Chairman and the administration's efforts to ``reinvent'' government
that we sit here today and request the same amount of money for fiscal
year 1997. Clearly, this stands as evidence that we can get better
government for less money.
The SEC has prepared itself for difficult fiscal times ahead by
doubling its commitment to working with industry to provide cost-
effective, efficient regulation in partnership with the private sector.
Despite tight budgetary limits, the Commission has focused on the
essentials by fostering small businesses who need capital formation to
survive and grow.
Our actions today signal to the American people that periodic review
of agency operations like that of the SEC can yield efficiency without
drastic overhauls designed for political appeal. The leadership of the
subcommittee and committee deserve our sport for endeavors of this
nature.
Mr. OXLEY. Mr. Speaker, as an original cosponsor of the bill, I rise
in support of this reauthorization. I'm pleased to be considering it on
today's suspension calendar.
This bipartisan measure is a credit to its author, Chairman Tom
Bliley, and the subcommittee chairman, Jack Fields. It brings coherence
and stability to the issue of Securities and Exchange Commission
funding, while at the same time providing well-deserved tax relief to
investors. It has the support of SEC Chairman Arthur Levitt.
Currently, the SEC has a budget of approximately $300 million, but it
collects nearly twice that in fees annually. These are filing fees paid
by pension funds, start-up companies, and individual investors. The
excess fees amount to a tax on capital formation.
This reauthorization puts the Commission on-budget and phases out the
surplus fees, saving investors more than $750 million over the next 5
years. In so doing, it will promote investment, capital formation, and
job creation.
Again, Mr. Speaker, I urge support for the bill, and I yield back the
balance of my time.
Mr. MARKEY. Mr. Speaker, I have no other requests for time, and I
yield back the balance of my time.
Mr. OXLEY. Mr. Speaker, I have no further requests for time, and I
yield back the balance of my time.
The SPEAKER pro tempore (Mr. Camp). The question is on the motion
offered by the gentleman from Ohio [Mr. Oxley] that the House suspend
the rules and pass the bill. H.R. 2972, as amended.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
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