[House Report 107-415]
[From the U.S. Government Publishing Office]
107th Congress Rept. 107-415
HOUSE OF REPRESENTATIVES
2d Session Part 2
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SECURITIES AND EXCHANGE COMMISSION AUTHORIZATION ACT OF 2002
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April 24, 2002.--Ordered to be printed
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Mr. Oxley, from the Committee on Financial Services, submitted the
following
R E P O R T
SUPPLEMENTAL REPORT
[To accompany H.R. 3764]
This supplemental report shows the cost estimate of the
Congressional Budget Office with respect to the bill (H.R.
3764), as reported, which was not included in part 1 of the
report submitted by the Committee on Financial Services on
April 22, 2002 (H. Rept. 107-415, pt. 1).
This supplemental report is submitted in accordance with
clause 3(a)(2) of rule XIII of the Rules of the House of
Representatives.
This supplemental report contains the cost estimate
provided by the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974 that was not
available at the time part 1 of the report was filed and
updates other sections of the report accordingly. Any section
appearing in this report should be deemed to supersede the same
section in part 1 of this report.
NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee finds that this
legislation would result in no new budget authority,
entitlement authority, or tax expenditures or revenues.
COMMITTEE COST ESTIMATE
The Committee adopts as its own the cost estimate prepared
by the Director of the Congressional Budget Office pursuant to
section 402 of the Congressional Budget Act of 1974.
CONGRESSIONAL BUDGET OFFICE ESTIMATE
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
provided by the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, April 22, 2002.
Hon. Michael G. Oxley,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 3764, the
Securities and Exchange Commission Authorization Act of 2002.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Ken Johnson.
Sincerely,
Steven Lieberman
(For Dan L. Crippen, Director).
Enclosure.
H.R. 3764--Securities and Exchange Commission Authorization Act of 2002
Summary: H.R. 3764 would authorize the appropriation of
$776 million for the Securities and Exchange Commission (SEC)
in 2003. Of this amount, the bill authorizes at least $134
million for the SEC's Division of Corporate Finance and the
Office of the Chief Accountant, at least $326 million for the
agency's Division of Enforcement, and at least $76 million for
higher compensation for SEC employees.
Assuming appropriation of the authorized amount, CBO
estimates that implementing H.R. 3764 would cost about $607
million in 2003, and an additional $162 million in 2004.
Assuming the continued collection of the regulatory fees
assessed by the SEC, however, net SEC spending would be
negative in 2003, as is the case in 2002. Under H.R. 3764, we
estimate net SEC spending of -$606 million in 2003. H.R. 3764
would not affect direct spending or receipts; therefore, pay-
as-you-go procedures would not apply.
H.R. 3764 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would not affect the budgets of state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 3764 is shown in the following table.
The costs of this legislation fall within budget function 370
(commerce and housing credit).
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By fiscal year, in millions of dollars--
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2002 2003 2004 2005 2006 2007
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SPENDING SUBJECT TO APPROPRIATION
Gross SEC spending:
Under current law:
Budget authority...................... 409 0 0 0 0 0
Estimated outlays..................... 408 90 0 0 0 0
Proposed changes:
Authorization level................... 0 776 0 0 0 0
Estimated outlays..................... 0 607 162 0 0 0
Under H.R. 3764:
Budget authority/authorization level.. 409 776 0 0 0 0
Estimated outlays..................... 408 697 162 0 0 0
Less offsetting collections: \1\
Estimated authorization level............. -1,135 -1,303 0 0 0 0
Estimated outlays......................... -1,135 -1,303 0 0 0 0
Net SEC spending:
Under current law:
Estimated budget authority............ -726 0 0 0 0 0
Estimated outlays..................... -727 90 0 0 0 0
Under H.R. 3764:
Estimated authorization level......... -726 -527 0 0 0 0
Estimated outlays..................... -727 -606 162 0 0 0
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\1\ The SEC collects fees to the extent provided in advance in appropriation acts. The amount of fees collected
is not dependent on the amount appropriated. (The authority to collect such fees in 2002 has been triggered by
the 2002 appropriation; but there is no appropriation for 2003 yet.)
Basis of estimate: The annual appropriation for the SEC is
typically offset by fees the agency collects for registrations,
transactions, and mergers of securities. Under current law, the
fee rates are determined periodically by the SEC, and they are
collected only to the extent provided in advance in
appropriation acts. In recent years those fee collections have
been significantly greater than the appropriation provided to
the agency.
For 2002, CBO estimates that the gross spending of the SEC
will amount to $408 million. When this figure in added to an
estimated $1.1 billion in fee collections, CBO estimates that
the agency's net spending will be about -$727 million for 2002.
Based on the SEC's historical spending patterns, CBO
estimates that implementing H.R. 3764 would have a gross cost
of $607 million in 2003 and $769 million during the 2003-2004
period, assuming the appropriation of the necessary amounts.
Adding these amounts to CBO's projections for fee collections
in 2003, we estimate that the SEC's net spending would equal
-$606 million in that year.
Pay-as-you-go considerations: None.
Intergovernmental and private sector impact: H.R. 3764
contains no intergovernmental or private-sector mandates as
defined in UMRA and would not affect the budgets of state,
local, or tribal governments.
Estimate prepared by: Federal costs: Ken Johnson; impact on
state, local, and tribal governments: Susan Sieg Thompkins;
Private-sector impact: Paige Piper/Bach.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
FEDERAL MANDATES STATEMENT
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.