[Congressional Record Volume 143, Number 41 (Wednesday, April 9, 1997)]
[Extensions of Remarks]
[Page E613]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      EXTENDING EFFECTIVE DATE OF INVESTMENT ADVISORS SUPERVISION 
                            COORDINATION ACT

                                 ______
                                 

                               speech of

                            HON. TOM BLILEY

                              of virginia

                    in the house of representatives

                        Tuesday, March 18, 1997

  Mr. BLILEY. Mr. Speaker, at the time S. 410 was brought up for 
consideration in the House and passed, the Congressional Budget Office 
had not completed its cost estimate for the bill. The Congressional 
Budget Office has since completed its estimate and I ask that it be 
inserted in the Congressional Record at the appropriate place in the 
debate on S. 410.

                                                    U.S. Congress,


                                  Congressional Budget Office,

                                   Washington, DC, March 21, 1997.
     Hon. Tom Bliley,
     Chairman, Committee on Commerce, House of Representatives, 
         Washington, DC.
       Dear Mr. Chairman: At your request, the Congressional 
     Budget Office has prepared the enclosed cost estimate for S. 
     410, an act to extend the effective date of the Investment 
     Advisors Supervision Coordination Act, as passed by the House 
     of Representatives on March 18, 1997.
       If you wish further details on this estimate, we will be 
     pleased to provide them. The CBO staff contacts are Rachel 
     Forward and Pepper Santalucia.
           Sincerely,
                                        June E. O'Neill, Director.
       Enclosure.

               Congressional Budget Office Cost Estimate

     S. 410--An act to extend the effective date of the Investment 
         Advisors Supervision Coordination Act
       CBO estimates that S. 410 would have no significant effect 
     on the federal budget. Because the bill would not affect 
     direct spending or receipts, pay-as-you-go procedures would 
     not apply. In addition, S. 410 contains no intergovernmental 
     or private-sector mandates as defined in the Unfunded 
     Mandates Reform Act of 1995 and would impose no costs on 
     state, local, or tribal governments.
       S. 410 would delay, from April 9, 1997, to July 8, 1997, 
     the effective date for the Investment Advisors Supervision 
     Coordination Act, enacted on October 11, 1996, as title III 
     of Public Law 104-864. The Investment Advisors Supervision 
     Coordination Act eases registration and bookkeeping 
     requirements for certain investment advisers. The law exempts 
     investment advisers already regulated by a state from 
     registering with the Securities and Exchange Commission (SEC) 
     unless the investment adviser manages assets greater than $25 
     million or acts as an adviser to an investment or business 
     development company. In addition, the law restricts the 
     ability of a state to impose certain requirements on 
     investment advisers who conduct business in a state but 
     maintain their principal place of business elsewhere.
       Enacting S. 410 would provide the SEC and states with more 
     time to prepare for the changes required by the 1996 act. CBO 
     estimates that the SEC's workload would not change 
     significantly as a result of the 90-day extension.
       The CBO staff contacts for this estimate are Rachel 
     Forward, for the federal budgetary impact, and Pepper 
     Santalucia, for the state and local impact. This estimate was 
     approved by Robert A. Sunshine, Deputy Assistant Director for 
     Budget Analysis.

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