[Congressional Record (Bound Edition), Volume 147 (2001), Part 11]
[Senate]
[Page 16076]
[From the U.S. Government Publishing Office, www.gpo.gov]



     H.R. 1088, THE INVESTOR AND CAPITAL MARKETS RELIEF ACT OF 2001

  Mr. DASCHLE. Mr. President, many of our colleagues have indicated 
their strong support for H.R. 1088, the Investor and Capital Markets 
Fee Relief Act. I share the belief that the Senate should take action 
on this critical legislation promptly.
  A number of Senate leaders on securities matters have noted the 
importance of this bill, including the senior Senator from New York, 
Mr. Schumer, Chairman of the Banking Committee, Mr. Sarbanes, the 
Chairman of the Securities Subcommittee, Senator Dodd, the Assistant 
Majority Leader, Senator Reid, and many others.
  I want to take this opportunity to update the Senate on the status of 
H.R. 1088. The Senate approved the bill unanimously in March. After 
good-faith negotiations between both bodies, the House then approved an 
amended bill, which included agreed-upon improvements by an 
overwhelming bipartisan vote of 404 to 22. It is now pending on the 
Senate calendar.
  This legislation is long overdue. The Securities Exchange Commission 
now collects fees from the investing public that are six times higher 
than needed to cover the costs of operating the Commission. Fee 
reductions can free up new investment capital that can help spur the 
economy at a time when it needs a boost.
  Equally important are provisions in the bill that provide the 
Commission staff pay parity with other Federal financial regulators, 
which can help the agency stem turnover and retain quality staff. 
Investors in our securities markets deserve the best quality regulators 
to protect them, and those fine public servants deserve proper 
compensation.
  This legislation should have been approved last year. It was 
unfortunate that, in the last Congress, even though the bill was 
approved by committees in both the House and Senate, it was never 
considered on the floor of either body. Efforts by many Senators to 
move the bill in the waning days of the last Congress were stymied.
  Under new leadership, the Senate will soon have an opportunity to 
make amends for that lapse by finalizing this legislation. When 
Congress returns from its August work period, I will continue working 
with my colleagues to ensure enactment of this key measure.
  Mr. SARBANES. Mr. President, I am pleased that the Majority Leader 
will work to ensure enactment of the SEC pay parity and fee reduction 
legislation when Congress returns from the August recess. Passage of 
H.R. 1088 is very important to the staff of the Securities and Exchange 
Commission as well as to the many segments of the securities industry.
  This bill enjoys wide bipartisan support in the Senate. The Senate 
version of the bill, S. 143, The Competitive Market Supervision Act of 
2001, was passed by the Banking Committee on March 1 by voice vote. It 
was passed by the full Senate on March 22, by unanimous consent.
  I want to focus on the importance of the bill's pay parity 
provisions. These would authorize the Commission to pay its employees 
on a par with the other Federal financial regulators. Our securities 
markets are the envy of the world. It is important that the regulator 
of those markets be in a favorable position to attract and retain 
qualified employees. Enacting pay parity contributes towards this goal 
and will result in enhanced supervision of the securities markets.
  Mr. SCHUMER. Mr. President, I thank my good friend, the Majority 
Leader, Mr. Daschle, and the Chairman of the Banking Committee, Mr. 
Sarbanes, for their commitment to this important piece of legislation, 
H.R. 1088, of which I am the chief Democratic sponsor. This bill is of 
tremendous importance to New York.
  As the Senator from South Dakota, Mr. Daschle, has indicated, this 
legislation would reduce transaction fees paid by investors to fund the 
ongoing activities of the SEC. Such fee reductions will be of 
substantial benefit to investors, businesses and individual investors, 
alike. The bill also gives pay parity for employees at the SEC so that 
the SEC may attract and retain highly qualified regulators to ensure 
the integrity of our markets.
  As my colleague knows, H.R. 1088, as passed by the House, 
incorporated the Senate position reflected in S. 143, which was 
approved by this Senate under unanimous consent in March. There will be 
no conference on the bill and we have assurances the President will 
sign it. All that is left is for the Senate to act, and I urge that we 
do so as expeditiously as possible upon our return from the August 
recess.
  I also thank the distinguished Assistant Majority Leader, the Senator 
from Nevada, Mr. Reid, for his commitment to moving this critical 
legislation.
  Mr. REID. I thank my friend, the Senator from New York, Mr. Schumer, 
for his unwavering leadership on this bill. I couldn't agree more that 
this bill is very important to investors. It is unfortunate that we 
have not been able to act on this bill before the August recess, but 
this should not be interpreted as anything other than a difficulty with 
timing.
  As my friend knows, I support this legislation. I think it is a good 
bill and I look forward to getting it to the floor. As the Majority 
Leader has indicated, although there will be a number of important 
measures competing for floor time this fall, including appropriations 
bills, it is our intention to bring this bill before the Senate.
  I am hopeful our friends in the minority will extend to us the 
necessary cooperation to complete action on this matter. I look forward 
to working with the Senator from New York and our colleagues to pass 
this important legislation.
  Mr. DODD. Mr. President, I would like to add my support for the 
passage of H.R.1088, the Investor and Capital Markets Relief Act. As 
many of my colleagues have noted, this legislation is the result of 
bipartisan cooperation in both the Senate and the House.
  We have worked closely to craft legislation that I believe will have 
important benefits for both retail and institutional investors, the 
securities industry and the Securities and Exchange Commission.
  I would specifically like to recognize the Chairman and Ranking 
Members of the Banking Committee for their efforts on this bill, 
especially with regard to ensuring pay parity for employees of the SEC. 
The inclusion of this vital component will help to maintain the high 
level of competency we currently enjoy at the SEC .
  I would also like to thank the Majority Leader and the Assistant 
Majority Leader for their commitment to the timely consideration of 
this legislation. It is my hope that when we return from the August 
work period, we can consider this legislation in a prompt fashion.

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