[Congressional Record (Bound Edition), Volume 147 (2001), Part 8]
[House]
[Pages 10391-10398]
[From the U.S. Government Publishing Office, www.gpo.gov]



                               AMENDMENTS

  Under clause 8 of rule XVIII, proposed amendments were submitted as 
follows:

                               H.R. 1088

                         Offered By: Mr. Oxley

               (Amendment in the Nature of a Substitute)

       Amendment No. 1: Strike out all after the enacting clause 
     and insert the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Investor and Capital Markets 
     Fee Relief Act''.

     SEC. 2. IMMEDIATE TRANSACTION FEE REDUCTIONS.

       Section 31 of the Securities Exchange Act of 1934 (15 
     U.S.C. 78ee) is amended--
       (1) by striking ``\1/300\ of one percent'' each place it 
     appears in subsections (b) and (d) and inserting ``$15 per 
     $1,000,000'';
       (2) by striking ``and security futures products'' each 
     place it appears in such subsections and inserting ``security 
     futures products, and options on securities indexes 
     (excluding a narrow-based security index)'';
       (3) in the first sentence of subsection (b), by striking 
     ``, except that'' and all that follows through the end of 
     such sentence and inserting a period;
       (4) in paragraph (1) of subsection (d), by striking ``, 
     except that'' and all that follows through the end of such 
     paragraph and inserting a period;
       (5) in subsection (e), by striking ``$0.02'' and inserting 
     ``$0.009''; and
       (6) by adding at the end the following new subsection:
       ``(i) Pro Rata Application.--The rates per $1,000,000 
     required by this section shall be applied pro rata to amounts 
     and balances of less than $1,000,000.''.

     SEC. 3. REVISION OF SECURITIES TRANSACTION FEE PROVISIONS; 
                   ADDITIONAL FEE REDUCTIONS.

       (a) Pooling and Allocation of Collections.--Section 31 of 
     the Securities Exchange Act of 1934 (15 U.S.C. 78ee) is 
     further amended--
       (1) in subsection (b)--
       (A) by striking ``Every'' and inserting ``Subject to 
     subsection (j), each''; and
       (B) by striking the last sentence;
       (2) by striking subsection (c);
       (3) in subsection (d)--
       (A) by striking paragraphs (2) and (3);
       (B) by striking the following:
       ``(d) Off-Exchange Trades of Last-Sale-Reported 
     Securities.--
       ``(1) Covered transactions.--Each national securities''

     and inserting the following:
       ``(c) Off-Exchange Trades of Exchange Registered and Last-
     Sale-Reported Securities.--Subject to subsection (j), each 
     national securities'';
       (C) by inserting ``registered on a national securities 
     exchange or'' after ``narrow-based security index))'' (as 
     added by section 2(2)); and
       (D) by striking ``, excluding any sales for which a fee is 
     paid under subsection (c)'';
       (4) in subsection (e), by striking ``except that for fiscal 
     year 2007'' and all that follows through the end of such 
     subsection and inserting the following: ``except that for 
     fiscal year 2007 and each succeeding fiscal year such 
     assessment shall be equal to $0.0042 for each such 
     transaction.'';
       (5) in subsection (f), by striking ``Dates for Payment of 
     Fees.--The fees required'' and inserting ``Dates for 
     Payments.--The fees and assessments required'';
       (6) by redesignating subsections (e) through (i) (as added 
     by section 2(5)) as subsections (d) through (h), 
     respectively;
       (7) by adding at the end the following new subsection:
       ``(i) Deposit of Fees.--
       ``(1) Offsetting collections.--Fees collected pursuant to 
     subsections (b), (c), and (d) for any fiscal year--
       ``(A) shall be deposited and credited as offsetting 
     collections to the account providing appropriations to the 
     Commission; and
       ``(B) except as provided in subsection (k), shall not be 
     collected for any fiscal year except to the extent provided 
     in advance in appropriation Acts.
       ``(2) General revenues prohibited.--No fees collected 
     pursuant to subsections (b), (c), and (d) for fiscal year 
     2002 or any succeeding fiscal year shall be deposited and 
     credited as general revenue of the Treasury.''.
       (b) Additional Reductions of Fees.--
       (1) Amendment.--Section 31 of the Securities Exchange Act 
     of 1934 (15 U.S.C. 78ee) is further amended by adding after 
     subsection (i) (as added by subsection (a)(7)) the following 
     new subsections:
       ``(j) Recapture of Projection Windfalls for Further Rate 
     Reductions.--
       ``(1) Annual adjustment.--For each of the fiscal years 2003 
     through 2011, the Commission shall by order adjust each of 
     the rates applicable under subsections (b) and (c) for such 
     fiscal year to a uniform adjusted rate that, when applied to 
     the baseline estimate of the aggregate dollar amount of sales 
     for

[[Page 10392]]

     such fiscal year, is reasonably likely to produce aggregate 
     fee collections under this section (including assessments 
     collected under subsection (d)) that are equal to the target 
     offsetting collection amount for such fiscal year.
       ``(2) Mid-year adjustment.--For each of the fiscal years 
     2002 through 2011, the Commission shall determine, by March 1 
     of such fiscal year, whether, based on the actual aggregate 
     dollar volume of sales during the first 5 months of such 
     fiscal year, the baseline estimate of the aggregate dollar 
     volume of sales used under paragraph (1) for such fiscal year 
     (or $48,800,000,000,000 in the case of fiscal year 2002) is 
     reasonably likely to be 10 percent (or more) greater or less 
     than the actual aggregate dollar volume of sales for such 
     fiscal year. If the Commission so determines, the Commission 
     shall by order, no later than such March 1, adjust each of 
     the rates applicable under subsections (b) and (c) for such 
     fiscal year to a uniform adjusted rate that, when applied to 
     the revised estimate of the aggregate dollar amount of sales 
     for the remainder of such fiscal year, is reasonably likely 
     to produce aggregate fee collections under this section 
     (including fees collected during such 5-month period and 
     assessments collected under subsection (d)) that are equal to 
     the target offsetting collection amount for such fiscal year. 
     In making such revised estimate, the Commission shall, after 
     consultation with the Congressional Budget Office and the 
     Office of Management and Budget, use the same methodology 
     required by subsection (l)(2).
       ``(3) Final rate adjustment.--For fiscal year 2012 and all 
     of the succeeding fiscal years, the Commission shall by order 
     adjust each of the rates applicable under subsections (b) and 
     (c) for all of such fiscal years to a uniform adjusted rate 
     that, when applied to the baseline estimate of the aggregate 
     dollar amount of sales for fiscal year 2012, is reasonably 
     likely to produce aggregate fee collections under this 
     section in fiscal year 2012 (including assessments collected 
     under subsection (d)) equal to the target offsetting 
     collection amount for fiscal year 2011.
       ``(4) Review and effective date.-- In exercising its 
     authority under this subsection, the Commission shall not be 
     required to comply with the provisions of section 553 of 
     title 5, United States Code. An adjusted rate prescribed 
     under paragraph (1), (2), or (3) and published under 
     subsection (g) shall not be subject to judicial review. 
     Subject to subsections (i)(1)(B) and (k)--
       ``(A) an adjusted rate prescribed under paragraph (1) shall 
     take effect on the later of--
       ``(i) the first day of the fiscal year to which such rate 
     applies; or
       ``(ii) 30 days after the date on which a regular 
     appropriation to the Commission for such fiscal year is 
     enacted;
       ``(B) an adjusted rate prescribed under paragraph (2) shall 
     take effect on April 1 of the fiscal year to which such rate 
     applies; and
       ``(C) an adjusted rate prescribed under paragraph (3) shall 
     take effect on the later of--
       ``(i) the first day of fiscal year 2012; or
       ``(ii) 30 days after the date on which a regular 
     appropriation to the Commission for fiscal year 2012 is 
     enacted.
       ``(k) Lapse of Appropriation.--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 (as 
     offsetting collections) the fees and assessments under 
     subsections (b), (c), and (d) at the rate in effect during 
     the preceding fiscal year, until 30 days after the date such 
     a regular appropriation is enacted.
       ``(l) Definitions.--For purposes of this section:
       ``(1) Target offsetting collection amount.--The target 
     offsetting collection amount for each of the fiscal years 
     2002 through 2011 is determined according to the following 
     table:

                                                      Target offsetting
``Fiscal year:                                        collection amount
  2002....................................................$732,000,000 
  2003....................................................$849,000,000 
  2004..................................................$1,028,000,000 
  2005..................................................$1,220,000,000 
  2006..................................................$1,435,000,000 
  2007....................................................$881,000,000 
  2008....................................................$892,000,000 
  2009..................................................$1,023,000,000 
  2010..................................................$1,161,000,000 
  2011..................................................$1,321,000,000 

       ``(2) Baseline estimate of the aggregate dollar amount of 
     sales.--The baseline estimate of the aggregate dollar amount 
     of sales for any fiscal year is the baseline estimate of the 
     aggregate dollar amount of sales of securities (other than 
     bonds, debentures, other evidences of indebtedness, security 
     futures products, and options on securities indexes 
     (excluding a narrow-based security index)) to be transacted 
     on each national securities exchange and by or through any 
     member of each national securities association (otherwise 
     than on a national securities exchange) during such fiscal 
     year as determined by the Commission, after consultation with 
     the Congressional Budget Office and the Office of Management 
     and Budget, using the methodology required for making 
     projections pursuant to section 257 of the Balanced Budget 
     and Emergency Deficit Control Act of 1985.''.
       (2) Conforming amendment.--Section 31(g) of such Act (as 
     redesignated by subsection (a)(6) of this section) is amended 
     by inserting before the period at the end the following: 
     ``not later than April 30 of the fiscal year preceding the 
     fiscal year to which such rate applies, together with any 
     estimates or projections on which such fees are based''.

     SEC. 4. REDUCTION OF REGISTRATION FEES.

       Section 6(b) of the Securities Act of 1933 (15 U.S.C. 
     77f(b)) is amended by striking paragraphs (2) through (5) and 
     inserting the following:
       ``(2) Fee payment required.--At the time of filing a 
     registration statement, the applicant shall pay to the 
     Commission a fee at a rate that shall be equal to $92 per 
     $1,000,000 of the maximum aggregate price at which such 
     securities are proposed to be offered, except that during 
     fiscal year 2003 and any succeeding fiscal year such fee 
     shall be adjusted pursuant to paragraph (5) or (6).
       ``(3) Offsetting collections.--Fees collected pursuant to 
     this subsection for any fiscal year--
       ``(A) shall be deposited and credited as offsetting 
     collections to the account providing appropriations to the 
     Commission; and
       ``(B) except as provided in paragraph (9), shall not be 
     collected for any fiscal year except to the extent provided 
     in advance in appropriation Acts.
       ``(4) General revenues prohibited.--No fees collected 
     pursuant to this subsection for fiscal year 2002 or any 
     succeeding fiscal year shall be deposited and credited as 
     general revenue of the Treasury.
       ``(5) Annual adjustment.--For each of the fiscal years 2003 
     through 2011, the Commission shall by order adjust the rate 
     required by paragraph (2) for such fiscal year to a rate 
     that, when applied to the baseline estimate of the aggregate 
     maximum offering prices for such fiscal year, is reasonably 
     likely to produce aggregate fee collections under this 
     subsection that are equal to the target offsetting collection 
     amount for such fiscal year.
       ``(6) Final rate adjustment.--For fiscal year 2012 and all 
     of the succeeding fiscal years, the Commission shall by order 
     adjust the rate required by paragraph (2) for all of such 
     fiscal years to a rate that, when applied to the baseline 
     estimate of the aggregate maximum offering prices for fiscal 
     year 2012, is reasonably likely to produce aggregate fee 
     collections under this subsection in fiscal year 2012 equal 
     to the target offsetting collection amount for fiscal year 
     2011.
       ``(7) Pro rata application.--The rates per $1,000,000 
     required by this subsection shall be applied pro rata to 
     amounts and balances of less than $1,000,000.
       ``(8) Review and effective date.-- In exercising its 
     authority under this subsection, the Commission shall not be 
     required to comply with the provisions of section 553 of 
     title 5, United States Code. An adjusted rate prescribed 
     under paragraph (5) or (6) and published under paragraph (10) 
     shall not be subject to judicial review. Subject to 
     paragraphs (3)(B) and (9)--
       ``(A) an adjusted rate prescribed under paragraph (5) shall 
     take effect on the later of--
       ``(i) the first day of the fiscal year to which such rate 
     applies; or
       ``(ii) 5 days after the date on which a regular 
     appropriation to the Commission for such fiscal year is 
     enacted; and
       ``(B) an adjusted rate prescribed under paragraph (6) shall 
     take effect on the later of--
       ``(i) the first day of fiscal year 2012; or
       ``(ii) 5 days after the date on which a regular 
     appropriation to the Commission for fiscal year 2012 is 
     enacted.
       ``(9) Lapse of appropriation.--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 5 days 
     after the date such a regular appropriation is enacted.
       ``(10) Publication.--The Commission shall publish in the 
     Federal Register notices of the rate applicable under this 
     subsection and under sections 13(e) and 14(g) for each fiscal 
     year not later than April 30 of the fiscal year preceding the 
     fiscal year to which such rate applies, together with any 
     estimates or projections on which such rate is based.
       ``(11) Definitions.--For purposes of this subsection:
       ``(A) Target offsetting collection amount.--The target 
     offsetting collection amount for each of the fiscal years 
     2002 through 2011 is determined according to the following 
     table:
                                                      Target offsetting
``Fiscal year:                                        collection amount
  2002.....................................................$337,000,000
  2003.....................................................$435,000,000
  2004.....................................................$467,000,000
  2005.....................................................$570,000,000
  2006.....................................................$689,000,000
  2007.....................................................$214,000,000
  2008.....................................................$234,000,000
  2009.....................................................$284,000,000
  2010.....................................................$334,000,000
  2011.....................................................$394,000,000

       ``(B) Baseline estimate of the aggregate maximum offering 
     prices.--The baseline estimate of the aggregate maximum 
     offering

[[Page 10393]]

     prices for any fiscal year is the baseline estimate of the 
     aggregate maximum offering price at which securities are 
     proposed to be offered pursuant to registration statements 
     filed with the Commission during such fiscal year as 
     determined by the Commission, after consultation with the 
     Congressional Budget Office and the Office of Management and 
     Budget, using the methodology required for projections 
     pursuant to section 257 of the Balanced Budget and Emergency 
     Deficit Control Act of 1985.''.

     SEC. 5. FEES FOR STOCK REPURCHASE STATEMENTS.

       Section 13(e) of the Securities Exchange Act of 1934 (15 
     U.S.C. 78m(e)) is amended
       (1) in paragraph (3), by striking ``a fee of \1/50\ of 1 
     per centum of the value of securities proposed to be 
     purchased'' and inserting ``a fee at a rate that, subject to 
     paragraphs (5) and (6), is equal to $92 per $1,000,000 of the 
     value of securities proposed to be purchased'';
       (2) by inserting after paragraph (3) the following new 
     paragraphs:
       ``(4) Offsetting collections.--Fees collected pursuant to 
     this subsection for any fiscal year shall be deposited and 
     credited as offsetting collections to the account providing 
     appropriations to the Commission, and, except as provided in 
     paragraph (9), shall not be collected for any fiscal year 
     except to the extent provided in advance in appropriation 
     Acts. No fees collected pursuant to this subsection for 
     fiscal year 2002 or any succeeding fiscal year shall be 
     deposited and credited as general revenue of the Treasury.
       ``(5) Annual adjustment.--For each of the fiscal years 2003 
     through 2011, the Commission shall by order adjust the rate 
     required by paragraph (3) for such fiscal year to a rate that 
     is equal to the rate (expressed in dollars per million) that 
     is applicable under section 6(b) of the Securities Act of 
     1933 for such fiscal year.
       ``(6) Final rate adjustment.--For fiscal year 2012 and all 
     of the succeeding fiscal years, the Commission shall by order 
     adjust the rate required by paragraph (3) for all of such 
     fiscal years to a rate that is equal to the rate (expressed 
     in dollars per million) that is applicable under section 6(b) 
     of the Securities Act of 1933 for all of such fiscal years.
       ``(7) Pro rata application.--The rates per $1,000,000 
     required by this subsection shall be applied pro rata to 
     amounts and balances of less than $1,000,000.
       ``(8) Review and effective date.-- In exercising its 
     authority under this subsection, the Commission shall not be 
     required to comply with the provisions of section 553 of 
     title 5, United States Code. An adjusted rate prescribed 
     under paragraph (5) or (6) and published under paragraph (10) 
     shall not be subject to judicial review. Subject to 
     paragraphs (4) and (9)--
       ``(A) an adjusted rate prescribed under paragraph (5) shall 
     take effect on the later of--
       ``(i) the first day of the fiscal year to which such rate 
     applies; or
       ``(ii) 5 days after the date on which a regular 
     appropriation to the Commission for such fiscal year is 
     enacted; and
       ``(B) an adjusted rate prescribed under paragraph (6) shall 
     take effect on the later of--
       ``(i) the first day of fiscal year 2012; or
       ``(ii) 5 days after the date on which a regular 
     appropriation to the Commission for fiscal year 2012 is 
     enacted.
       ``(9) Lapse of appropriation.--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 5 days 
     after the date such a regular appropriation is enacted.
       ``(10) Publication.--The rate applicable under this 
     subsection for each fiscal year is published pursuant to 
     section 6(b)(10) of the Securities Act of 1933.''.

     SEC. 6. FEES FOR PROXY SOLICITATIONS AND STATEMENTS IN 
                   CORPORATE CONTROL TRANSACTIONS.

       Section 14(g) of the Securities Exchange Act of 1934 (15 
     U.S.C. 78m(e)(3)) is amended--
       (1) in paragraphs (1) and (3), by striking ``a fee of \1/
     50\ of 1 per centum of'' each place it appears and inserting 
     ``a fee at a rate that, subject to paragraphs (5) and (6), is 
     equal to $92 per $1,000,000 of'';
       (2) by redesignating paragraph (4) as paragraph (11); and
       (3) by inserting after paragraph (3) the following new 
     paragraphs:
       ``(4) Offsetting collections.--Fees collected pursuant to 
     this subsection for any fiscal year shall be deposited and 
     credited as offsetting collections to the account providing 
     appropriations to the Commission, and, except as provided in 
     paragraph (9), shall not be collected for any fiscal year 
     except to the extent provided in advance in appropriation 
     Acts. No fees collected pursuant to this subsection for 
     fiscal year 2002 or any succeeding fiscal year shall be 
     deposited and credited as general revenue of the Treasury.
       ``(5) Annual adjustment.--For each of the fiscal years 2003 
     through 2011, the Commission shall by order adjust each of 
     the rates required by paragraphs (1) and (3) for such fiscal 
     year to a rate that is equal to the rate (expressed in 
     dollars per million) that is applicable under section 6(b) of 
     the Securities Act of 1933 for such fiscal year.
       ``(6) Final rate adjustment.--For fiscal year 2012 and all 
     of the succeeding fiscal years, the Commission shall by order 
     adjust each of the rates required by paragraphs (1) and (3) 
     for all of such fiscal years to a rate that is equal to the 
     rate (expressed in dollars per million) that is applicable 
     under section 6(b) of the Securities Act of 1933 for all of 
     such fiscal years.
       ``(7) Pro rata application.--The rates per $1,000,000 
     required by this subsection shall be applied pro rata to 
     amounts and balances of less than $1,000,000.
       ``(8) Review and effective date.-- In exercising its 
     authority under this subsection, the Commission shall not be 
     required to comply with the provisions of section 553 of 
     title 5, United States Code. An adjusted rate prescribed 
     under paragraph (5) or (6) and published under paragraph (10) 
     shall not be subject to judicial review. Subject to 
     paragraphs (4) and (9)--
       ``(A) an adjusted rate prescribed under paragraph (5) shall 
     take effect on the later of--
       ``(i) the first day of the fiscal year to which such rate 
     applies; or
       ``(ii) 5 days after the date on which a regular 
     appropriation to the Commission for such fiscal year is 
     enacted; and
       ``(B) an adjusted rate prescribed under paragraph (6) shall 
     take effect on the later of--
       ``(i) the first day of fiscal year 2012; or
       ``(ii) 5 days after the date on which a regular 
     appropriation to the Commission for fiscal year 2012 is 
     enacted.
       ``(9) Lapse of appropriation.--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 5 days 
     after the date such a regular appropriation is enacted.
       ``(10) Publication.--The rate applicable under this 
     subsection for each fiscal year is published pursuant to 
     section 6(b)(10) of the Securities Act of 1933.''.

     SEC. 7. TRUST INDENTURE ACT FEE.

       Section 307(b) of the Trust Indenture Act of 1939 (15 
     U.S.C. 77ggg(b)) is amended by striking ``Commission, but, in 
     the case'' and all that follows and inserting 
     ``Commission.''.

     SEC. 8. COMPARABILITY PROVISIONS.

       (a) Commission Demonstration Project.--Subpart C of part 
     III of title 5, United States Code, is amended by adding at 
     the end the following:

          ``CHAPTER 48--AGENCY PERSONNEL DEMONSTRATION PROJECT

``Sec.
``4801. Nonapplicability of chapter 47.
``4802. Securities and Exchange Commission.

     ``Sec. 4801. Nonapplicability of chapter 47

       ``Chapter 47 shall not apply to this chapter.

     ``Sec. 4802. Securities and Exchange Commission

       ``(a) In this section, the term `Commission' means the 
     Securities and Exchange Commission.
       ``(b) The Commission may appoint and fix the compensation 
     of such officers, attorneys, economists, examiners, and other 
     employees as may be necessary for carrying out its functions 
     under the securities laws as defined under section 3 of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78c).
       ``(c) Rates of basic pay for all employees of the 
     Commission may be set and adjusted by the Commission without 
     regard to the provisions of chapter 51 or subchapter III of 
     chapter 53.
       ``(d) The Commission may provide additional compensation 
     and benefits to employees of the Commission if the same type 
     of compensation or benefits are then being provided by any 
     agency referred to under section 1206 of the Financial 
     Institutions Reform, Recovery, and Enforcement Act of 1989 
     (12 U.S.C. 1833b) or, if not then being provided, could be 
     provided by such an agency under applicable provisions of 
     law, rule, or regulation. In setting and adjusting the total 
     amount of compensation and benefits for employees, the 
     Commission shall consult with, and seek to maintain 
     comparability with, the agencies referred to under section 
     1206 of the Financial Institutions Reform, Recovery, and 
     Enforcement Act of 1989 (12 U.S.C. 1833b).
       ``(e) The Commission shall consult with the Office of 
     Personnel Management in the implementation of this section.
       ``(f) This section shall be administered consistent with 
     merit system principles.''.
       (b) Employees Represented by Labor Organizations.--To the 
     extent that any employee of the Securities and Exchange 
     Commission is represented by a labor organization with 
     exclusive recognition in accordance with chapter 71 of title 
     5, United States Code, no reduction in base pay of such 
     employee shall be made by reason of enactment of this section 
     (including the amendments made by this section).
       (c) Implementation Plan and Report.--
       (1) Implementation plan.--
       (A) In general.--The Securities and Exchange Commission 
     shall develop a plan to implement section 4802 of title 5, 
     United States Code, as added by this section.
       (B) Inclusion in annual performance plan and report.--The 
     Securities and Exchange Commission shall include--

[[Page 10394]]

       (i) the plan developed under this paragraph in the annual 
     program performance plan submitted under section 1115 of 
     title 31, United States Code; and
       (ii) the effects of implementing the plan developed under 
     this paragraph in the annual program performance report 
     submitted under section 1116 of title 31, United States Code.
       (2) Implementation report.--
       (A) In general.--Before implementing the plan developed 
     under paragraph (1), the Securities and Exchange Commission 
     shall submit a report to the Committee on Governmental 
     Affairs and the Committee on Banking, Housing, and Urban 
     Affairs of the Senate, the Committee on Government Reform and 
     the Committee on Financial Services of the House of 
     Representatives, and the Office of Personnel Management on 
     the details of the plan.
       (B) Content.--The report under this paragraph shall 
     include--
       (i) evidence and supporting documentation justifying the 
     plan; and
       (ii) budgeting projections on costs and benefits resulting 
     from the plan.
       (d) Technical and Conforming Amendments.--
       (1) Amendments to title 5, united states code.--
       (A) The table of chapters for part III of title 5, United 
     States Code, is amended by adding at the end of subpart C the 
     following:

``48. Agency Personnel Demonstration Project...................4801.''.
       (B) Section 3132(a)(1) of title 5, United States Code, is 
     amended--
       (i) in subparagraph (C), by striking ``or'' after the 
     semicolon;
       (ii) in subparagraph (D), by inserting ``or'' after the 
     semicolon; and
       (iii) by adding at the end the following:
       ``(E) the Securities and Exchange Commission;''.
       (C) Section 5373(a) of title 5, United States Code, is 
     amended--
       (i) in paragraph (2), by striking ``or'' after the 
     semicolon;
       (ii) in paragraph (3), by striking the period and inserting 
     ``; or''; and
       (iii) by adding at the end the following:
       ``(4) section 4802.''.
       (2) Amendment to securities exchange act of 1934.--Section 
     4(b) of the Securities Exchange Act of 1934 (15 U.S.C. 
     78d(b)) is amended by striking paragraphs (1) and (2) and 
     inserting the following:
       ``(1) Appointment and compensation.--The Commission shall 
     appoint and compensate officers, attorneys, economists, 
     examiners, and other employees in accordance with section 
     4802 of title 5, United States Code.
       ``(2) Reporting of information.--In establishing and 
     adjusting schedules of compensation and benefits for 
     officers, attorneys, economists, examiners, and other 
     employees of the Commission under applicable provisions of 
     law, the Commission shall inform the heads of the agencies 
     referred to under section 1206 of the Financial Institutions 
     Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 
     1833b) and Congress of such compensation and benefits and 
     shall seek to maintain comparability with such agencies 
     regarding compensation and benefits.''.
       (3) Amendment to firrea of 1989.--Section 1206 of the 
     Financial Institutions Reform, Recovery, and Enforcement Act 
     of 1989 (12 U.S.C. 1833b) is amended by striking ``the Thrift 
     Depositor Protection Oversight Board of the Resolution Trust 
     Corporation''.

     SEC. 9. STUDY OF THE EFFECT OF FEE REDUCTIONS.

       (a) Study.--The Office of Economic Analysis of the 
     Securities and Exchange Commission (hereinafter referred to 
     as the ``Office'') shall conduct a study of the extent to 
     which the benefits of reductions in fees effected as a result 
     of this Act are passed on to investors.
       (b) Factors for Consideration.--In conducting the study 
     under subsection (a), the Office shall--
       (1) consider the various elements of the securities 
     industry directly and indirectly benefitting from the fee 
     reductions, including purchasers and sellers of securities, 
     members of national securities exchanges, issuers, broker-
     dealers, underwriters, participants in investment companies, 
     retirement programs, and others;
       (2) consider the impact on different types of investors, 
     such as individual equity holders, individual investment 
     company shareholders, businesses, and other types of 
     investors;
       (3) include in the interpretation of the term ``investor'' 
     shareholders of entities subject to the fee reductions; and
       (4) consider the economic benefits to investors flowing 
     from the fee reductions to include such factors as market 
     efficiency, expansion of investment opportunities, and 
     enhanced liquidity and capital formation.
       (c) Report to Congress.--Not later than 2 years after the 
     date of enactment of this Act, the Securities and Exchange 
     Commission shall submit to the Congress the report prepared 
     by the Office on the findings of the study conducted under 
     subsection (a).

     SEC. 10. STUDY OF CONVERSION TO SELF-FUNDING.

       (a) GAO Study Required.--The Comptroller General shall 
     conduct a study of the impact, implications, and consequences 
     of converting the Securities and Exchange Commission to a 
     self-funded basis. Such study shall include analysis of the 
     following issues:
       (1) SEC operations.--The impact of such conversion on the 
     Commission's operations, including staff quality, 
     recruitment, and retention.
       (2) Congressional oversight.--The implications for 
     congressional oversight of the Commission, including whether 
     imposing annual expenditure limitations would be beneficial 
     to such oversight.
       (3) Fees.--The likely consequences of the conversion on the 
     rates, collection procedures, and predictability of fees 
     collected by the Commission.
       (4) Appropriations.--The methods by which the conversion 
     may be accomplished without reducing the availability of 
     offsetting collections for appropriations.
       (5) Other matters.--Such other impacts, implications, and 
     consequences as the Comptroller General may consider relevant 
     to congressional consideration of the question of such 
     conversion.
       (b) Submission of Report.--The Comptroller General shall 
     submit to the Committees on Financial Services and Government 
     Reform of the House of Representatives and the Committees on 
     Banking, Housing, and Urban Affairs and Governmental Affairs 
     of the Senate a report on the study required by subsection 
     (a) no later than 180 days after the date of enactment of 
     this Act.
       (c) Definition.--For the purposes of this section, the term 
     ``self-funded basis'' means that--
       (1) an agency is authorized to deposit the receipts of its 
     collections in the Treasury of the United States, or in a 
     depository institution, but such deposits are not treated as 
     Government funds or appropriated monies, and are available 
     for the salaries and other expenses of the Commission and its 
     employees without annual appropriation or apportionment; and
       (2) the agency is authorized to employ and fix the salaries 
     and other compensation of its officers and employees, and 
     such salaries and other compensation are paid without regard 
     to the provisions of other laws applicable to officers and 
     employees of the United States.

     SEC. 11. EFFECTIVE DATES.

       (a) In General.--Except as provided in subsections (b) and 
     (c), the amendments made by this Act shall take effect on 
     October 1, 2001.
       (b) Immediate Transaction Fee Reductions.--The amendments 
     made by section 2 shall take effect on the later of--
       (1) the first day of fiscal year 2002; or
       (2) 30 days after the date on which a regular appropriation 
     to the Commission for such fiscal year is   enacted.
       (c) Additional Exceptions.--The authorities provided by 
     section 6(b)(9) of the Securities Act of 1933 and sections 
     13(e)(9), 14(g)(9) and 31(k) of the Securities Exchange Act 
     of 1934, as so designated by this Act, shall not apply until 
     October 1, 2002.

                               H.R. 1088

                        Offered By: Mr. LaFalce

               (Amendment in the Nature of a Substitute)

       Amendment No. 2: Strike all after the enacting clause and 
     insert the following:

     SECTION 1. SHORT TITLE; FINDINGS.

       (a) Short Title.--This Act may be cited as the ``Fairness 
     in Securities Transactions Act''.
       (b) Findings.--The Congress finds the following:
       (1) The United States capital markets are recognized as the 
     most liquid, efficient, and fair in the world.
       (2) The Securities and Exchange Commission has been charged 
     since 1934 with maintaining the integrity of the United 
     States capital markets and with the protection of investors 
     in those markets.
       (3) The majority of American households have their savings 
     invested in those securities markets.
       (4) A lack of pay parity for the employees of the 
     Securities and Exchange Commission with other United States 
     financial regulators poses a serious threat to the ability of 
     the Commission to recruit and retain the professional staff 
     required to carry out its essential mission.

     SEC. 2. IMMEDIATE FEE REDUCTION.

       Section 31 of the Securities Exchange Act of 1934 (15 
     U.S.C. 78ee) is amended by striking ``1/300 of one percent'' 
     each place it appears and inserting ``1/500 of one percent''.

     SEC. 3. REVISION OF SECURITIES TRANSACTION FEE PROVISIONS; 
                   ADDITIONAL FEE REDUCTIONS.

       (a) Pooling and Allocation of Collections.--Section 31 of 
     the Securities Exchange Act of 1934 (15 U.S.C. 78ee) is 
     further amended--
       (1) in subsection (b)--
       (A) by striking ``Every'' and inserting ``Subject to 
     subsection (i), each''; and
       (B) by striking the last sentence;
       (2) by striking subsection (c);
       (3) in subsection (d)--
       (A) by striking paragraphs (2) and (3);
       (B) by striking the following:
       ``(d) Off-Exchange Trades of Last-Sale-Reported 
     Securities.--
       ``(1) Covered transactions.--Each national securities''

[[Page 10395]]

     and inserting the following:
       ``(c) Off-Exchange Trades of Exchange Registered and Last-
     Sale-Reported Securities.--Subject to subsection (i), each 
     national securities'';
       (C) by inserting ``registered on a national securities 
     exchange or'' after ``security futures products)'';
       (D) by striking ``, excluding any sales for which a fee is 
     paid under subsection (c)'';
       (4) by redesignating subsections (e) through (h) as 
     subsections (d) through (g), respectively;
       (5) in subsection (e) (as redesignated by paragraph (4)), 
     by striking ``(b), (c), and (d)'' and inserting ``(b) and 
     (c)''; and
       (6) by adding at the end the following new subsection:
       ``(h) Deposit of Fees.--
       ``(1) Offsetting collections.--Fees collected pursuant to 
     subsections (b) and (c) for any fiscal year--
       ``(A) shall be deposited and credited as offsetting 
     collections to the account providing appropriations to the 
     Commission, except that the amount so deposited and credited 
     for fiscal years 2007 through 2011 shall not exceed the 
     target offsetting collection amount for such fiscal year; and
       ``(B) shall not be collected for any fiscal year except to 
     the extent provided in advance in appropriation Acts.
       ``(2) General revenues.--Fees collected pursuant to 
     subsections (b) and (c) for fiscal years 2007 through 2011 in 
     excess of the amount deposited and credited as offsetting 
     collections pursuant to paragraph (1) for such fiscal year 
     shall be deposited and credited as general revenue of the 
     Treasury. No fees collected pursuant to such subsections for 
     fiscal years 2002 through 2006, fiscal year 2012, or any 
     succeeding fiscal year shall be deposited and credited as 
     general revenue of the Treasury.''.
       (b) Additional Reductions of Fees.--
       (1) Amendment.--Section 31 of the Securities Exchange Act 
     of 1934 (15 U.S.C. 78ee) is further amended by adding after 
     subsection (h) (as added by subsection (a)(6)) the following 
     new subsections:
       ``(i) Recapture of Projection Windfalls for Further Rate 
     Reductions.--
       ``(1) Annual adjustment.--For each of the fiscal years 2003 
     through 2011, the Commission shall by order adjust each of 
     the rates applicable under subsections (b) and (c) for such 
     fiscal year to a uniform adjusted rate that, when applied to 
     the baseline estimate of the aggregate dollar amount of sales 
     for such fiscal year, is reasonably likely to produce 
     aggregate fee collections under this section that are equal 
     to the sum of--
       ``(A) the target offsetting collection amount for such 
     fiscal year; and
       ``(B) the target general revenue amount for such fiscal 
     year.
       ``(2) Final rate adjustment.--For fiscal year 2012 and all 
     of the succeeding fiscal years, the Commission shall by order 
     adjust each of the rates applicable under subsections (b) and 
     (c) for all of such fiscal years to a uniform adjusted rate 
     that, when applied to the baseline estimate of the aggregate 
     dollar amount of sales for fiscal year 2012, is reasonably 
     likely to produce aggregate fee collections under this 
     section in fiscal year 2012 equal to the target offsetting 
     collection amount for fiscal year 2011.
       ``(3) Limitation on rate adjustment.--Notwithstanding 
     paragraphs (1) and (2), no adjusted rate established under 
     this subsection for any fiscal year shall exceed the rate 
     that would otherwise be applicable under subsections (b) and 
     (c) for such fiscal year.
       ``(4) Review and effective date.--An adjusted rate 
     prescribed under paragraph (1) or (2) and published under 
     subsection (g) shall not be subject to judicial review. 
     Subject to subsections (h)(1)(B) and (j), an adjusted rate 
     prescribed under paragraph (1) shall take effect on the first 
     day of the fiscal year to which such rate applies and an 
     adjusted rate prescribed under paragraph (2) shall take 
     effect on the first day of fiscal year 2012.
       ``(j) Lapse of Appropriation.--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 subsections (b) and (c) at 
     the rate in effect during the preceding fiscal year, until 
     such a regular appropriation is enacted.
       ``(k) Definitions.--For purposes of this section:
       ``(1) Target offsetting collection amount.--The target 
     offsetting collection amount is an amount equal to--
       ``(A) $976,000,000 for fiscal year 2002;
       ``(B) $1,132,000,000 for fiscal year 2003;
       ``(C) $1,370,000,000 for fiscal year 2004;
       ``(D) $1,627,000,000 for fiscal year 2005;
       ``(E) $1,913,000,000 for fiscal year 2006;
       ``(F) $1,110,000,000 for fiscal year 2007;
       ``(G) $1,144,000,000 for fiscal year 2008;
       ``(H) $1,327,000,000 for fiscal year 2009;
       ``(I) $1,523,000,000 for fiscal year 2010; and
       ``(J) $1,745,000,000 for fiscal year 2011.
       ``(2) Target general revenue amount.--The target general 
     revenue amount is an amount equal to--
       ``(A) zero for each of the fiscal years 2002 through 2006;
       ``(B) $463,000,000 for fiscal year 2007;
       ``(C) $449,000,000 for fiscal year 2008;
       ``(D) $500,000,000 for fiscal year 2009;
       ``(E) $551,000,000 for fiscal year 2010; and
       ``(F) $614,000,000 for fiscal year 2011.
       ``(3) Baseline estimate of the aggregate dollar amount of 
     sales.--The baseline estimate of the aggregate dollar amount 
     of sales for any fiscal year is the baseline estimate of the 
     aggregate dollar amount of sales of securities (other than 
     bonds, debentures, other evidences of indebtedness, and 
     security futures products) to be transacted on each national 
     securities exchange and by or through any member of each 
     national securities association (otherwise than on a national 
     securities exchange) during such fiscal year as determined by 
     the Congressional Budget Office in making projections 
     pursuant to section 257 of the Balanced Budget and Emergency 
     Deficit Control Act of 1985 and as contained in the 
     projection required to be made in March of the preceding 
     fiscal year.''.
       (2) Conforming amendment.--Section 31(g) of such Act is 
     amended by inserting before the period at the end the 
     following: ``not later than April 30 of the fiscal year 
     preceding the fiscal year to which such rate applies''.

     SEC. 4. COMPARABILITY PROVISIONS.

       (a) Commission Demonstration Project.--Subpart C of part 
     III of title 5, United States Code, is amended by adding at 
     the end the following:

          ``CHAPTER 48--AGENCY PERSONNEL DEMONSTRATION PROJECT

``Sec.
``4801. Nonapplicability of chapter 47.
``4802. Securities and Exchange Commission.

     ``Sec. 4801. Nonapplicability of chapter 47.

       ``Chapter 47 shall not apply to this chapter.

     ``Sec. 4802. Securities and Exchange Commission

       ``(a) In this section, the term `Commission' means the 
     Securities and Exchange Commission.
       ``(b) The Commission may appoint and fix the compensation 
     of such officers, attorneys, economists, examiners, and other 
     employees as may be necessary for carrying out its functions 
     under the securities laws as defined under section 3 of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78c).
       ``(c) Rates of basic pay for all employees of the 
     Commission may be set and adjusted by the Commission without 
     regard to the provisions of chapter 51 or subchapter III of 
     chapter 53.
       ``(d) The Commission may provide additional compensation 
     and benefits to employees of the Commission if the same type 
     of compensation or benefits are then being provided by any 
     agency referred to under section 1206 of the Financial 
     Institutions Reform, Recovery, and Enforcement Act of 1989 
     (12 U.S.C. 1833b) or, if not then being provided, could be 
     provided by such an agency under applicable provisions of 
     law, rule, or regulation. In setting and adjusting the total 
     amount of compensation and benefits for employees, the 
     Commission shall consult with, and seek to maintain 
     comparability with, the agencies referred to under section 
     1206 of the Financial Institutions Reform, Recovery, and 
     Enforcement Act of 1989 (12 U.S.C. 1833b).
       ``(e) The Commission shall consult with the Office of 
     Personnel Management in the implementation of this section.
       ``(f) This section shall be administered consistent with 
     merit system principles.''.
       (b) Employees Represented by Labor Organizations.--To the 
     extent that any employee of the Securities and Exchange 
     Commission is represented by a labor organization with 
     exclusive recognition in accordance with chapter 71 of title 
     5, United States Code, no reduction in base pay of such 
     employee shall be made by reason of enactment of this section 
     (including the amendments made by this section).
       (c) Implementation Plan and Report.--
       (1) Implementation plan.--
       (A) In general.--The Securities and Exchange Commission 
     shall develop a plan to implement section 4802 of title 5, 
     United States Code, as added by this section.
       (B) Inclusion in annual performance plan and report.--The 
     Securities and Exchange Commission shall include--
       (i) the plan developed under this paragraph in the annual 
     program performance plan submitted under section 1115 of 
     title 31, United States Code; and
       (ii) the effects of implementing the plan developed under 
     this paragraph in the annual program performance report 
     submitted under section 1116 of title 31, United States Code.
       (2) Implementation report.--
       (A) In general.--Before implementing the plan developed 
     under paragraph (1), the Securities and Exchange Commission 
     shall submit a report to the Committee on Governmental 
     Affairs and the Committee on Banking, Housing, and Urban 
     Affairs of the Senate, the Committee on Government Reform and 
     the Committee on Financial Services of the House of 
     Representatives, and the Office of Personnel Management on 
     the details of the plan.
       (B) Content.--The report under this paragraph shall 
     include--
       (i) evidence and supporting documentation justifying the 
     plan; and
       (ii) budgeting projections on costs and benefits resulting 
     from the plan.
       (d) Technical and Conforming Amendments.--
       (1) Amendments to title 5, united states code.--

[[Page 10396]]

       (A) The table of chapters for part III of title 5, United 
     States Code, is amended by adding at the end of subpart C the 
     following:

``48. Agency Personnel Demonstration Project...................4801.''.
       (B) Section 3132(a)(1) of title 5, United States Code, is 
     amended--
       (i) in subparagraph (C), by striking ``or'' after the 
     semicolon;
       (ii) in subparagraph (D), by inserting ``or'' after the 
     semicolon; and
       (iii) by adding at the end the following:
       ``(E) the Securities and Exchange Commission;''.
       (C) Section 5373(a) of title 5, United States Code, is 
     amended--
       (i) in paragraph (2), by striking ``or'' after the 
     semicolon;
       (ii) in paragraph (3), by striking the period and inserting 
     ``; or''; and
       (iii) by adding at the end the following:
       ``(4) section 4802.''.
       (2) Amendment to securities exchange act of 1934.--Section 
     4(b) of the Securities Exchange Act of 1934 (15 U.S.C. 
     78d(b)) is amended by striking paragraphs (1) and (2) and 
     inserting the following:
       ``(1) Appointment and compensation.--The Commission shall 
     appoint and compensate officers, attorneys, economists, 
     examiners, and other employees in accordance with section 
     4802 of title 5, United States Code.
       ``(2) Reporting of information.--In establishing and 
     adjusting schedules of compensation and benefits for 
     officers, attorneys, economists, examiners, and other 
     employees of the Commission under applicable provisions of 
     law, the Commission shall inform the heads of the agencies 
     referred to under section 1206 of the Financial Institutions 
     Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 
     1833b) and Congress of such compensation and benefits and 
     shall seek to maintain comparability with such agencies 
     regarding compensation and benefits.''.
       (3) Amendment to firrea of 1989.--Section 1206 of the 
     Financial Institutions Reform, Recovery, and Enforcement Act 
     of 1989 (12 U.S.C. 1833b) is amended by striking ``the Thrift 
     Depositor Protection Oversight Board of the Resolution Trust 
     Corporation''.

     SEC. 5. EFFECTIVE DATE.

       This Act and the amendments made by this Act shall take 
     effect on October 1, 2001.

                               H.R. 1157

                       Offered By: Mr. Gilchrest

               (Amendment in the Nature of a Substitute)

       Amendment No. 1: Strike all after the enacting clause and 
     insert the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Pacific Salmon Recovery 
     Act''.

     SEC. 2. SALMON CONSERVATION AND SALMON HABITAT RESTORATION 
                   ASSISTANCE.

       (a) Requirement To Provide Assistance.--Subject to the 
     availability of appropriations, the Secretary of Commerce 
     shall provide financial assistance in accordance with this 
     Act to qualified States and qualified tribal governments for 
     salmon conservation and salmon habitat restoration 
     activities.
       (b) Allocation.--Of the amounts available to provide 
     assistance under this section each fiscal year (after the 
     application of section 3(g)), the Secretary--
       (1) shall allocate 85 percent among qualified States, in 
     equal amounts; and
       (2) shall allocate 15 percent among qualified tribal 
     governments, in amounts determined by the Secretary.
       (c) Transfer.--
       (1) In general.--The Secretary shall promptly transfer--
       (A) to a qualified State that has submitted a Conservation 
     and Restoration Plan under section 3(a) amounts allocated to 
     the qualified State under subsection (b)(1) of this section, 
     unless the Secretary determines, within 30 days after the 
     submittal of the plan to the Secretary, that the plan is 
     inconsistent with the requirements of this Act; and
       (B) to a qualified tribal government that has entered into 
     a memorandum of understanding with the Secretary under 
     section 3(b) amounts allocated to the qualified tribal 
     government under subsection (b)(2) of this section.
       (2) Transfers to qualified states.--The Secretary shall 
     make the transfer under paragraph (1)(A)--
       (A) to the Washington State Salmon Recovery Board, in the 
     case of amounts allocated to Washington;
       (B) to the Oregon State Watershed Enhancement Board, in the 
     case of amounts allocated to Oregon;
       (C) to the California Department of Fish and Game for the 
     California Coastal Salmon Recovery Program, in the case of 
     amounts allocated to California;
       (D) to the Governor of Alaska, in the case of amounts 
     allocated to Alaska; and
       (E) to the Office of Species Conservation, in the case of 
     amounts allocated to Idaho.
       (d) Reallocation.--
       (1) Amounts allocated to qualified states.--Amounts that 
     are allocated to a qualified State for a fiscal year shall be 
     reallocated under subsection (b)(1) among the other qualified 
     States, if--
       (A) the qualified State has not submitted a plan in 
     accordance with section 3(a) as of the end of the fiscal 
     year; or
       (B) the amounts remain unobligated at the end of the 
     subsequent fiscal year.
       (2) Amounts allocated to qualified tribal governments.--
     Amounts that are allocated to a qualified tribal government 
     for a fiscal year shall be reallocated under subsection 
     (b)(2) among the other qualified tribal governments, if the 
     qualified tribal government has not entered into a memorandum 
     of understanding with the Secretary in accordance with 
     section 3(b) as of the end of the fiscal year.

     SEC. 3. RECEIPT AND USE OF ASSISTANCE.

       (a) Qualified State Salmon Conservation and Restoration 
     Plan.--
       (1) In general.--To receive assistance under this Act, a 
     qualified State shall develop and submit to the Secretary a 
     Salmon Conservation and Salmon Habitat Restoration Plan.
       (2) Contents.--Each Salmon Conservation and Salmon 
     Restoration Plan shall, at a minimum--
       (A) be consistent with other applicable Federal laws;
       (B) be consistent with the goal of salmon recovery;
       (C) except as provided in subparagraph (D), give priority 
     to use of assistance under this section for projects that--
       (i) provide a direct and demonstrable benefit to salmon or 
     their habitat;
       (ii) provide the greatest benefit to salmon conservation 
     and salmon habitat restoration relative to the cost of the 
     projects; and
       (iii) conserve, and restore habitat, for--

       (I) salmon that are listed as endangered species or 
     threatened species, proposed for such listing, or candidates 
     for such listing, under the Endangered Species Act of 1973 
     (16 U.S.C. 1531 et seq.); or

       (II) salmon that are given special protection under the 
     laws or regulations of the qualified State;

       (D) in the case of a plan submitted by a qualified State in 
     which, as of the date of the enactment of this Act, there is 
     no area at which a salmon species referred to in subparagraph 
     (C)(iii)(I) spawns--
       (i) give priority to use of assistance for projects 
     referred to in subparagraph (C)(i) and (ii) that contribute 
     to proactive programs to conserve and enhance species of 
     salmon that intermingle with, or are otherwise related to, 
     species referred to in subparagraph (C)(iii)(I), which may 
     include (among other matters)--

       (I) salmon-related research, data collection, and 
     monitoring;
       (II) salmon supplementation and enhancement;
       (III) salmon habitat restoration;
       (IV) increasing economic opportunities for salmon 
     fishermen; and
       (V) national and international cooperative habitat 
     programs; and

       (ii) provide for revision of the plan within one year after 
     any date on which any salmon species that spawns in the 
     qualified State is listed as an endangered species or 
     threatened species, proposed for such listing, or a candidate 
     for such listing, under the Endangered Species Act of 1973 
     (16 U.S.C. 1531 et seq.);
       (E) establish specific goals and timelines for activities 
     funded with such assistance;
       (F) include measurable criteria by which such activities 
     may be evaluated;
       (G) require that activities carried out with such 
     assistance shall--
       (i) be scientifically based;
       (ii) be cost effective;
       (iii) not be conducted on private land except with the 
     consent of the owner of the land; and
       (iv) contribute to the conservation and recovery of salmon;
       (H) require that the qualified State maintain its aggregate 
     expenditures of funds from non-Federal sources for salmon 
     habitat restoration programs at or above the average level of 
     such expenditures in the 2 fiscal years preceding the date of 
     the enactment of this Act; and
       (I) ensure that activities funded under this Act are 
     conducted in a manner in which, and in areas where, the State 
     has determined that they will have long-term benefits.
       (3) Solicitation of comments.--In preparing a plan under 
     this subsection a qualified State shall seek comments on the 
     plan from local governments in the qualified State.
       (b) Tribal MOU With Secretary.--
       (1) In general.--To receive assistance under this Act, a 
     qualified tribal government shall enter into a memorandum of 
     understanding with the Secretary regarding use of the 
     assistance.
       (2) Contents.--Each memorandum of understanding shall, at a 
     minimum--
       (A) be consistent with other applicable Federal laws;
       (B) be consistent with the goal of salmon recovery;
       (C) give priority to use of assistance under this Act for 
     activities that--
       (i) provide a direct and demonstrable benefit to salmon or 
     their habitat;
       (ii) provide the greatest benefit to salmon conservation 
     and salmon habitat restoration relative to the cost of the 
     projects; and
       (iii) conserve, and restore habitat, for--

       (I) salmon that are listed as endangered species or 
     threatened species, proposed for such listing, or candidates 
     for such listing,

[[Page 10397]]

     under the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
     seq.); or
       (II) salmon that are given special protection under the 
     ordinances or regulations of the qualified tribal government;

       (D) in the case of a memorandum of understanding entered 
     into by a qualified tribal government for an area in which, 
     as of the date of the enactment of this Act, there is no area 
     at which a salmon species that is referred to in subparagraph 
     (C)(iii)(I) spawns--
       (i) give priority to use of assistance for projects 
     referred to in subparagraph (C)(i) and (ii) that contribute 
     to proactive programs described in subsection (a)(2)(D)(i);
       (ii) include a requirement that the memorandum shall be 
     revised within 1 year after any date on which any salmon 
     species that spawns in the area is listed as an endangered 
     species or threatened species, proposed for such listing, or 
     a candidate for such listing, under the Endangered Species 
     Act of 1973 (16 U.S.C. 1531 et seq.);
       (E) establish specific goals and timelines for activities 
     funded with such assistance;
       (F) include measurable criteria by which such activities 
     may be evaluated;
       (G) establish specific requirements for reporting to the 
     Secretary by the qualified tribal government;
       (H) require that activities carried out with such 
     assistance shall--
       (i) be scientifically based;
       (ii) be cost effective;
       (iii) not be conducted on private land except with the 
     consent of the owner of the land; and
       (iv) contribute to the conservation or recovery of salmon; 
     and
       (I) require that the qualified tribal government maintain 
     its aggregate expenditures of funds from non-Federal sources 
     for salmon habitat restoration programs at or above the 
     average level of such expenditures in the 2 fiscal years 
     preceding the date of the enactment of this Act.
       (c) Eligible Activities.--
       (1) In general.--Assistance under this Act may be used by a 
     qualified State in accordance with a plan submitted by the 
     State under subsection (a), or by a qualified tribal 
     government in accordance with a memorandum of understanding 
     entered into by the government under subsection (b), to carry 
     out or make grants to carry out, among other activities, the 
     following:
       (A) Watershed evaluation, assessment, and planning 
     necessary to develop a site-specific and clearly prioritized 
     plan to implement watershed improvements, including for 
     making multi-year grants.
       (B) Salmon-related research, data collection, and 
     monitoring, salmon supplementation and enhancement, and 
     salmon habitat restoration.
       (C) Maintenance and monitoring of projects completed with 
     such assistance.
       (D) Technical training and education projects, including 
     teaching private landowners about practical means of 
     improving land and water management practices to contribute 
     to the conservation and restoration of salmon habitat.
       (E) Other activities related to salmon conservation and 
     salmon habitat restoration.
       (2) Use for local and regional projects.--Funds allocated 
     to qualified States under this Act shall be used for local 
     and regional projects.
       (d) Use of Assistance for Activities Outside of 
     Jurisdiction of Recipient.--Assistance under this section 
     provided to a qualified State or qualified tribal government 
     may be used for activities conducted outside the areas under 
     its jurisdiction if the activity will provide conservation 
     benefits to naturally produced salmon in streams of concern 
     to the qualified State or qualified tribal government, 
     respectively.
       (e) Cost Sharing by Qualified States.--
       (1) In general.--A qualified State shall match, in the 
     aggregate, the amount of any financial assistance provided to 
     the qualified State for a fiscal year under this Act, in the 
     form of monetary contributions or in-kind contributions of 
     services for projects carried out with such assistance. For 
     purposes of this paragraph, monetary contributions by the 
     State shall not be considered to include funds received from 
     other Federal sources.
       (2) Limitation on requiring matching for each project.--The 
     Secretary may not require a qualified State to provide 
     matching funds for each project carried out with assistance 
     under this Act.
       (3) Treatment of monetary contributions.--For purposes of 
     subsection (a)(2)(H), the amount of monetary contributions by 
     a qualified State under this subsection shall be treated as 
     expenditures from non-Federal sources for salmon conservation 
     and salmon habitat restoration programs.
       (f) Coordination of Activities.--
       (1) In general.--Each qualified State and each qualified 
     tribal government receiving assistance under this Act is 
     encouraged to carefully coordinate salmon conservation 
     activities of its agencies to eliminate duplicative and 
     overlapping activities.
       (2) Consultation.--Each qualified State and qualified 
     tribal government receiving assistance under this Act shall 
     consult with the Secretary to ensure there is no duplication 
     in projects funded under this Act.
       (g) Limitation on Administrative Expenses.--
       (1) Federal administrative expenses.--Of the amount made 
     available under this Act each fiscal year, not more than 1 
     percent may be used by the Secretary for administrative 
     expenses incurred in carrying out this Act.
       (2) State and tribal administrative expenses.--Of the 
     amount allocated under this Act to a qualified State or 
     qualified tribal government each fiscal year, not more than 3 
     percent may be used by the qualified State or qualified 
     tribal government, respectively, for administrative expenses 
     incurred in carrying out this Act.

     SEC. 4. PUBLIC PARTICIPATION.

       (a) Qualified State Governments.--Each qualified State 
     seeking assistance under this Act shall establish a citizens 
     advisory committee or provide another similar forum for local 
     governments and the public to participate in obtaining and 
     using the assistance.
       (b) Qualified Tribal Governments.--Each qualified tribal 
     government receiving assistance under this Act shall hold 
     public meetings to receive recommendations on the use of the 
     assistance.

     SEC. 5. CONSULTATION NOT REQUIRED.

       Consultation under section 7 of the Endangered Species Act 
     of 1973 (16 U.S.C. 1531 et seq.) shall not be required based 
     solely on the provision of financial assistance under this 
     Act.

     SEC. 6. REPORTS.

       (a) Qualified States.--Each qualified State shall, by not 
     later than December 31 of each year, submit to the Committee 
     on Commerce, Science, and Transportation of the Senate and 
     the Committee on Resources of the House of Representatives an 
     annual report on the use of financial assistance received by 
     the qualified State under this Act. The report shall contain 
     an evaluation of the success of this Act in meeting the 
     criteria listed in section 3(a)(2).
       (b) Secretary.--
       (1) Annual report regarding qualified tribal governments.--
     The Secretary shall, by not later than December 31 of each 
     year, submit to the Committee on Commerce, Science, and 
     Transportation of the Senate and the Committee on Resources 
     of the House of Representatives an annual report on the use 
     of financial assistance received by qualified tribal 
     governments under this Act. The report shall contain an 
     evaluation of the success of this Act in meeting the criteria 
     listed in section 3(b)(2).
       (2) Biannual report.--The Secretary shall, by not later 
     than December 31 of the second year in which amounts are 
     available to carry out this Act, and of every second year 
     thereafter, submit to the Committee on Commerce, Science, and 
     Transportation of the Senate and the Committee on Resources 
     of the House of Representatives a biannual report on the use 
     of funds allocated to qualified States under this Act. The 
     report shall review programs funded by the States and 
     evaluate the success of this Act in meeting the criteria 
     listed in section 3(a)(2).

     SEC. 7. DEFINITIONS.

       In this Act:
       (1) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given that term in section 4(e) of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 
     450b(e)).
       (2) Qualified state.--The term ``qualified State'' means 
     each of the States of Alaska, Washington, Oregon, California, 
     and Idaho.
       (3) Qualified tribal government.--The term ``qualified 
     tribal government'' means--
       (A) a tribal government of an Indian tribe in Washington, 
     Oregon, California, or Idaho that the Secretary of Commerce, 
     in consultation with the Secretary of the Interior, 
     determines--
       (i) is involved in salmon management and recovery 
     activities under the Endangered Species Act of 1973 (16 
     U.S.C. 1531 et seq.); and
       (ii) has the management and organizational capability to 
     maximize the benefits of assistance provided under this Act; 
     and
       (B) a village corporation as defined in or established 
     pursuant to the Alaska Native Claims Settlement Act (43 
     U.S.C. 1601 et seq.) that the Secretary of Commerce, in 
     consultation with the Secretary of the Interior, determines--
       (i) is involved in salmon conservation and management; and
       (ii) has the management and organizational capability to 
     maximize the benefits of assistance provided under this Act.
       (4) Salmon.--The term ``salmon'' means any naturally 
     produced salmon or naturally produced trout of the following 
     species:
       (A) Coho salmon (oncorhynchus kisutch).
       (B) Chinook salmon (oncorhynchus tshawytscha).
       (C) Chum salmon (oncorhynchus keta).
       (D) Pink salmon (oncorhynchus gorbuscha).
       (E) Sockeye salmon (oncorhynchus nerka).
       (F) Steelhead trout (oncorhynchus mykiss).
       (G) Sea-run cutthroat trout (oncorhynchus clarki clarki).
       (H) For purposes of application of this Act in Oregon--
       (i) Lahontan cutthroat trout (oncorhnychus clarki 
     henshawi); and
       (ii) Bull trout (salvelinus confluentus).
       (I) For purposes of application of this Act in Washington 
     and Idaho, Bull trout (salvelinus confluentus).

[[Page 10398]]

       (5) Secretary.--The term Secretary means the Secretary of 
     Commerce.

     SEC. 8. REPORT REGARDING TREATMENT OF INTERNATIONAL FISHERY 
                   COMMISSION PENSIONERS.

       The President shall--
       (1) determine the number of United States citizens who--
       (A) served as employees of the International Pacific Salmon 
     Fisheries Commission or the International North Pacific 
     Fisheries Commission; and
       (B) worked in Canada in the course of employment with that 
     commission;
       (2) calculate for each such employee the difference 
     between--
       (A) the value, in United States currency, of the annuity 
     payments made and to be made (determined by an actuarial 
     valuation) by or on behalf of each such commission to the 
     employee; and
       (B) the value, in Canadian currency, of such annuity 
     payments; and
       (3) by not later than September 1, 2001, submit to the 
     Committee on Resources of the House of Representatives and 
     the Committee on Commerce, Science and Transportation of the 
     Senate a report on the determinations and calculations made 
     under paragraphs (1) and (2).

     SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated $200,000,000 for 
     each of the fiscal years 2002, 2003, and 2004 to carry out 
     this Act. Funds appropriated under this section may remain 
     until expended.

                               H.R. 1157

                    Offered By: Ms. Hooley of Oregon

               (Amendment in the Nature of a Substitute)

       Amendment No. 2: At the end of the bill add the following:

     SEC.     . REPORT ON EFFECTS ON PACIFIC SALMON STOCKS OF 
                   CERTAIN TIMBER HARVESTING IN CANADA.

       The Secretary, in conjunction with other Federal agencies, 
     shall by not later than December 31 of each year report to 
     the Congress to the best of the ability of the Secretary 
     regarding the effects on Pacific Salmon stocks of timber 
     harvesting on publicly owned lands in British Columbia.

                               H.R. 1157

                         Offered By: Mr. Otter

               (Amendment in the Nature of a Substitute)

       Amendment No. 3: Add at the end the following:

     SEC.     . SENSE OF THE CONGRESS REGARDING BIPARTISAN JULY 
                   2000 GOALS.

       It is the sense of the Congress that the Congress supports 
     the bipartisan July 2000 goals, objectives, and 
     recommendations of the Governors of Idaho, Montana, Oregon 
     and Washington to protect and restore salmon and other 
     aquatic species to sustainable and harvestable levels while 
     meeting the requirements of the Endangered Species Act of 
     1973, the Clean Water Act, the Pacific Northwest Electric 
     Power Planning and Conservation Act, tribal treaty rights, 
     and executive orders and while taking into account the need 
     to preserve a sound economy in Alaska, California, Idaho, 
     Montana, Oregon, and Washington.

                               H.R. 2052

                         Offered By: Mr. Bachus

       Amendment No. 1: Insert the following after section 8 and 
     redesignate the succeeding sections, and references thereto, 
     accordingly:

     SEC. 9. PROHIBITION ON TRADING IN U.S. CAPITAL MARKETS.

       (a) Prohibition.--The President shall exercise the 
     authorities he has under the International Emergency Economic 
     Powers Act to prohibit any entity engaged in the development 
     of oil or gas in Sudan--
       (1) from raising capital in the United States; or
       (2) from trading its securities (or depository receipts 
     with respect to its securities) in any capital market in the 
     United States.
       (b) Definition.--For purposes of this section, an entity is 
     ``engaged in the development of oil or gas in Sudan'' if that 
     entity is directly engaged in the exploration, production, 
     transportation (by pipeline or otherwise), or refining of 
     petroleum, natural gas, or petroleum products in Sudan.


             CONGRESSIONAL RECORD 

                United States
                 of America

This ``bullet'' symbol identifies statements or insertions 
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June 12, 2001
                                                           June 12, 2001