[Congressional Record Volume 143, Number 132 (Monday, September 29, 1997)]
[House]
[Pages H8084-H8086]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




SECURITIES AND EXCHANGE COMMISSION AUTHORIZATION, FISCAL YEARS 1998 AND 
                                  1999

  Mr. OXLEY. Mr. Speaker, I move to suspend the rules and pass the bill 
(H.R. 1262) to authorize appropriations for the Securities and Exchange 
Commission for fiscal years 1998 and 1999, and for other purposes.
  The Clerk read as follows:

[[Page H8085]]

                               H.R. 1262

       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 1997''.

     SEC. 2. AUTHORIZATION OF APPROPRIATIONS.

       Section 35 of the Securities Exchange Act of 1934 (15 
     U.S.C. 78kk) is amended to read as follows:

     ``SEC. 35. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) In General.--In addition to any other funds 
     authorized to be appropriated to the Commission, there are 
     authorized to be appropriated to carry out the functions, 
     powers, and duties of the Commission--
       ``(1) $320,000,000 for fiscal year 1998; and
       ``(2) $342,700,000 for fiscal year 1999.
       ``(b) Miscellaneous Expenses.--Funds appropriated pursuant 
     to this section are authorized to be expended--
       ``(1) not to exceed $3,000 per fiscal year, for official 
     reception and representation expenses;
       ``(2) not to exceed $10,000 per fiscal year, for funding a 
     permanent secretariat for the International Organization of 
     Securities Commissions; and
       ``(3) not to exceed $100,000 per fiscal year, for expenses 
     for consultations and meetings hosted by the Commission with 
     foreign governmental and other regulatory officials, members 
     of their delegations, appropriate representatives, and staff 
     to exchange views concerning developments relating to 
     securities matters, for development and implementation of 
     cooperation agreements concerning securities matters and 
     provision of technical assistance for the development of 
     foreign securities markets, such expenses to include 
     necessary logistic and administrative expenses and the 
     expenses of Commission staff and foreign invitees in 
     attendance at such consultations and meetings, including--
       ``(A) such incidental expenses as meals taken in the course 
     of such attendance;
       ``(B) any travel or transportation to or from such 
     meetings; and
       ``(C) any other related lodging or subsistence.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Ohio [Mr. Oxley] and the gentleman from New York [Mr. Manton] each will 
control 20 minutes.
  The Chair recognizes the gentleman from Ohio [Mr. Oxley].
  (Mr. OXLEY asked and was given permission to revise and extend his 
remarks and include extraneous material.)
  Mr. OXLEY. Mr. Speaker I yield myself such time as I may consume.
  Mr. Speaker, I am pleased to be a sponsor of the legislation before 
us today which will authorize the Securities and Exchange Commission 
for appropriations for fiscal years 1998 and 1999.
  The capital markets of this Nation are expanding at an unprecedented 
rate. The broad spectrum of investors that these markets attract, 
individual Americans saving through mutual fund investments, 
institutional investors like pension funds, venture capitalists and 
more, are fueling the growth of our economy. Last year, $50 billion was 
raised for new businesses through our capital markets. Today, mutual 
fund assets, at a record $3.7 trillion, surpass bank deposits by more 
than $1 trillion.
  As our markets are expanding, they are also developing. The 
astonishing advancements in technology in recent years are creating new 
mechanisms for investors to access our markets and to obtain better, 
faster information about market activity.
  Against this backdrop, this legislation takes on increased 
significance. The Securities and Exchange Commission is, indeed, the 
investor's advocate. The growth and success of our great capital 
markets is dependent upon their fundamental fairness. The Securities 
and Exchange Commission has demonstrated its commitment to ensure that 
the fairness of our markets is not compromised. Investors around the 
world come to the U.S. markets in no small part because of the 
confidence they have in that basic fairness.
  Our capital markets rely upon not only investor confidence, but also 
the extraordinary ingenuity that has spurred the markets' development. 
It is essential that in regulating these markets, we do not stifle 
them. Chairman Arthur Levitt and the Commission are to be commended for 
initiating regulatory changes to facilitate the ability of companies to 
raise capital. They have eliminated unnecessary regulations, 
liberalized exemptions for all business, streamlined filing 
requirements, and promoted the use of something we are often in dire 
need of here on Capitol Hill: good old plain English. Reduction of 
regulatory burdens has aided the tremendous growth of our markets, and 
I intend to ensure that regulation continues to become less intrusive, 
less expensive, more flexible and more sensible.
  H.R. 1262, the Securities and Exchange Commission Authorization Act 
of 1997, authorizes $320 million for fiscal year 1998 and $342 million 
for fiscal year 1999. The authorization for fiscal year 1998 is 
essentially flat from the current year. The increase of approximately 
$22 million for the 1999 appropriation will provide the Commission with 
necessary resources to manage the growth and development of our capital 
markets.
  Importantly, this legislation is consistent with the provisions of 
the fee reduction agreement among the gentleman from Virginia [Mr. 
Bliley] of the Committee on Commerce, the gentleman from Texas [Mr. 
Archer] of the Committee on Ways and Means, and the gentleman from 
Kentucky [Mr. Rogers] of the Committee on Appropriations, as enacted in 
the National Securities Markets Improvement Act of 1996. Through this 
agreement, the fees that the Commission receives will gradually be 
reduced, while the funding for the Commission will be increasingly 
provided through an appropriation.
  I am pleased to have sponsored H.R. 1262 and to be joined by my 
friends, the gentleman from Virginia [Mr. Bliley], the gentleman from 
Michigan [Mr. Dingell], the gentleman from New York, [Mr. Manton], and 
the gentleman from Massachusetts [Mr. Markey], as cosponsors. This 
legislation is as necessary for the economy as it is for investors, and 
I urge all of my colleagues to join us with their support.
  Mr. Speaker, I reserve the balance of my time.
  Mr. MANTON. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I am pleased to join my colleague, the gentleman from 
Ohio [Mr. Oxley], in support of this legislation. Over the years, the 
SEC has proven to be an efficient and effective regulator of our 
securities markets, despite having both limited resources and 
personnel. The funding authorized by this legislation will enable the 
SEC to continue to fulfill its dual objectives of both protecting 
investors and assuring fair and orderly markets.
  As a representative from the great State of New York, home to the 
largest financial markets in the world, I am particularly appreciative 
of the indispensable role the Commission performs in maintaining the 
strength and integrity of our markets. The importance of this industry 
to the city and State cannot be overestimated. The exchanges and 
financial institutions provide enormous tax revenue and also jobs for 
thousands of New Yorkers. In fact, last year alone record profits on 
Wall Street resulted in more than $450 million in unanticipated tax 
revenue for the city.
  Over the last several years, millions of Americans have flooded the 
securities market, resulting in record-breaking highs on major indices. 
The SEC serves as police and protector for average investors by 
guarding against fraud and manipulation. This is especially necessary 
at present when so many people rely on stability and fairness of our 
markets.
  The SEC also faces new challenges due to technological developments 
that offer instant and inexpensive communication between markets and 
participants. While this new technology offers great opportunity for 
investors, it also potentially exposes them to significant risk.
  I commend Chairman Levitt and the Commissioners for doing a wonderful 
job keeping pace in this rapidly-changing environment and for working 
to ensure that, above all, individual investors be protected and 
supplied with clear and trustworthy information.
  Mr. Speaker, in keeping with tradition, the Committee on Commerce 
reported out a clean SEC reauthorization bill. I hope all of my 
colleagues will support this legislation.
  Mr. BLILEY. Mr. Speaker, I am pleased to be a sponsor of the 
legislation before us today. H.R. 1262, the Securities and Exchange 
Commission Authorization Act of 1997, authorizes appropriations for the 
Securities and Exchange Commission for fiscal years 1998 and 1999. 
These appropriations are necessary to ensure that the Commission is 
provided with the resources it needs to continue its important work as 
regulator of our securities markets.

[[Page H8086]]

  This legislation continues the process we put into place in the 104th 
Congress with the enactment of the National Securities Markets 
Improvement Act of 1996. That act established a mechanism to bring 
greater certainty to the Commission's funding and to reduce the fees 
that the participants in our capital markets pay the Commission.
  That mechanism, reached through an agreement with my friends Bill 
Archer of the Ways and Means Committee and Harold Rogers of the 
Appropriations Committee, implements a new funding structure that 
increasingly funds the Commission through an appropriation and reduces 
SEC fees. Those fees, which in recent years have amounted to more than 
double the Commission's budget, are a tax on capital. The legislation 
we enacted last year will eventually bring the fees down to a level 
that equals what it costs to run the agency.
  I am pleased that the funding authorization in H.R. 1262 and the 
Commission's budget request for fiscal 1998 and 1999 are consistent 
with the agreement underlying the Commission's new funding structure.
  This legislation is especially important in this era of unprecedented 
growth in our capital markets. Last October 14, the markets were abuzz 
with the remarkable news that the Dow had finally crossed the 6,000 
mark. Incredibly, today, less than a year later, the Dow is hovering 
around 8,000. The record pace at which investors are pouring their 
money into our capital markets is a testament to the confidence those 
markets inspire. The Securities and Exchange Commission serves a vital 
role in preserving and promoting the fairness that is the backbone of 
our markets.
  Equally important, the Commission is charged with the obligation to 
tailor its regulation of our markets to promote efficiency, 
competition, and the continued fostering of capital formation. Our 
markets may be the most successful in the world today, but that doesn't 
mean there is no competition out there. In order to remain ahead and 
provide our country's investors and businesses with the greatest 
opportunity we must ensure that the regulation of our markets does not 
trap us in obsolescence. It is essential that the Commission weigh the 
costs and benefits of regulations before their implementation to ensure 
that our markets are not weighed down by needless cost, or stifled by 
obstacles to growth and innovation. The Commission has worked to 
streamline regulation and reduce the burden on businesses seeking 
access to our capital markets. I commend the Commission for this work 
and look forward to continued progress.
  The appropriation for fiscal year 1998 in H.R. 1262 is essentially 
flat from the current year. The increased funding authorization that 
the legislation would provide the Commission for fiscal year 1999 will 
permit the Commission to request additional funds from the 
appropriators to permit the Commission to meet the regulatory demands 
and obligations accompanying the remarkable growth in our markets.
  I commend Subcommittee Chairman Oxley for introducing this important 
legislation. I also commend my good friend and ranking member of the 
committee, John Dingell, ranking member of the Finance Subcommittee Tom 
Manton, and Ed Markey for their cosponsorship of this legislation. This 
legislation is important to every American investor, and every 
participant in the great capital markets of our nation. I urge all my 
colleagues to join me in supporting H.R. 1262.
  Mr. OXLEY. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  Mr. MANTON. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. 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. 1262.
  The question was taken.
  Mr. DOGGETT. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 5 of rule I and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.

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