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“PROVIDING FOR CONSIDERATION OF H.R. 1088, INVESTOR AND CAPITAL MARKETS FEE RELIEF ACT” mentioning the U.S. Dept. of Justice was published in the House of Representatives section on pages H3156-H3159 on June 14, 2001.
The publication is reproduced in full below:
PROVIDING FOR CONSIDERATION OF H.R. 1088, INVESTOR AND CAPITAL MARKETS
FEE RELIEF ACT
Mr. LINDER. Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 161 and ask for its immediate consideration.
The Clerk read the resolution, as follows:
H. Res. 161
Resolved, That upon the adoption of this resolution it shall be in order without intervention of any point of order to consider in the House the bill (H.R. 1088) to amend the Securities Exchange Act of 1934 to reduce fees collected by the Securities and Exchange Commission, and for other purposes. The bill shall be considered as read for amendment. In lieu of the amendment recommended by the Committee on Financial Services now printed in the bill, the amendment in the nature of a substitute printed in the Congressional Record and numbered 1 pursuant to clause 8 of rule XVIII shall be considered as adopted. The previous question shall be considered as ordered on the bill, as amended, and on any further amendment thereto to final passage without intervening motion except: (1) one hour of debate on the bill, as amended, equally divided and controlled by the chairman and ranking minority member of the Committee on Financial Services; (2) the further amendment printed in the Congressional Record and numbered 2 pursuant to clause 8 of rule XVIII, if offered by Representative LaFalce of New York or his designee, which shall be in order without intervention of any point of order, shall be considered as read, and shall be separately debatable for one hour equally divided and controlled by the proponent and an opponent; and (3) one motion to recommit with or without instructions.
The SPEAKER pro tempore (Mr. Isakson). The gentleman from Georgia
(Mr. Linder) is recognized for 1 hour.
Mr. LINDER. Mr. Speaker, for purposes of debate only, I yield the customary 30 minutes to the gentlewoman from New York (Ms. Slaughter); pending which I yield myself such time as I may consume. During consideration of this resolution, all time yielded is for the purpose of debate only.
Mr. Speaker, House Resolution 161 is a modified closed rule providing for the consideration of H.R. 1088, the Investor and Capital Markets Fee Relief Act. This bill is designed to provide tax relief to investors and market participants by reducing or eliminating many of the user fees imposed by the Securities and Exchange Commission for buying and selling securities.
H. Res. 161 provides for 1 hour of debate equally divided and controlled by the chairman and the ranking minority member of the Committee on Financial Services. Upon the adoption of this rule, an amendment in the nature of a substitute, printed in the Congressional Record and offered by the gentleman from Ohio (Mr. Oxley), chairman of the Committee on Financial Services, will be considered as adopted in lieu of the amendment originally recommended by the Committee on Financial Services.
The rule also makes in order a substitute amendment for the minority, offered by the gentleman from New York (Mr. LaFalce) or his designee, which can be debated for up to 1 hour, evenly divided.
The rule also waives all points of order against consideration of both amendments. Finally, the rule provides for one motion to recommit with or without instructions as is the right of the minority.
Mr. Speaker, the purpose of H.R. 1088 is to provide significant tax relief to millions and millions of investors and market participants. When it was originally established, the SEC was supposed to be a user fee-funded entity. The SEC currently taxes investors and companies trading in securities with user fees, using the monies generated by these fees to fund its enforcement of Federal securities' laws and regulations.
As investments in mutual funds, 401(k) plans, and retirement funds have dramatically increased over the last 20 years, the SEC's current fee schedule has unfortunately not been changed to reflect these new circumstances. This has, in turn, created a situation in which billions of dollars in SEC fees, above and beyond the level needed to fund its enforcement activities, are being used for other purposes. H.Res. 161 modernizes the fee schedule, saving investors and companies $14 billion over the next 10 years by significantly reducing five SEC taxes on securities transactions.
The bill provides much needed relief for investors and companies by also terminating the mandatory application fees and reducing registration fees. Also, the new fee schedule gives the SEC the necessary funding to continue enforcing our laws while retaining top quality employees.
{time} 1030
Mr. Speaker, I hope my friends on both sides of the aisle will join me in supporting this legislation to return a greater portion of the Federal Government's excess funds to our investors so they can use these moneys as they see fit.
The Committee on Rules approved this rule by voice vote yesterday, and I urge my colleagues to support it so we may proceed with debate and consideration of this bipartisan bill.
Mr. Speaker, I reserve the balance of my time.
(Ms. SLAUGHTER asked and was given permission to revise and extend her remarks.)
Ms. SLAUGHTER. Mr. Speaker, I yield myself such time as I may consume; and I thank my colleague from Georgia (Mr. Linder) for yielding me the customary time.
Mr. Speaker, this is a modified closed rule that will allow for the consideration of H.R. 1088, the Investor and Capital Markets Fee Relief Act.
Under this restrictive rule, a Democratic substitute may be offered on the floor by the gentleman from New York (Mr. LaFalce). Unfortunately, no other amendments may be offered.
The underlying bill reduces fees levied by the Securities and Exchange Commission for stock-related transactions. This will result in a loss of about $14 billion in Federal receipts between the years 2002 and 2011. This general budget effect is a large revenue depletion. In the year 2002 alone, CBO estimates this will be more than $1.3 billion. It is a drain on the treasury.
The reduction of fees is motivated by an increase in collections, which is the result of greater stock market activity in the last few years. It makes perfect sense to reduce fees that might benefit individual investors. In fact, the Democratic substitute would do just that. However, given the uncertain future of financial markets and the unforeseeable need for regulation and enforcement, it seems imprudent to reduce revenues by such a large amount as this bill does. Moreover, minority members of the Committee on Financial Services warn that these cuts could ultimately result in cuts in important government programs like Head Start, medical research, and transportation and infrastructure improvements.
A more sound approach would be to examine the long-term needs of the Securities and Exchange Commission as well as other government activities involved with protecting the securities markets, including the Federal Bureau of Investigation inquiries, Department of Justice criminal prosecutions, and any other Federal resources needed to prosecute securities cases. Only then would we have a sound basis for establishing an appropriate fee reduction.
Mr. Speaker, for these reasons, I urge my colleagues to support the Democratic substitute at the proper time.
Mr. Speaker, I reserve the balance of my time.
Mr. LINDER. Mr. Speaker, I yield such time as he may consume to the gentleman from Ohio (Mr. Oxley), the chairman of the Committee on Financial Services.
(Mr. OXLEY asked and was given permission to revise and extend his remarks.)
Mr. OXLEY. Mr. Speaker, I thank the gentleman from Georgia (Mr. Linder), the gentleman from California (Mr. Dreier), and the rest of the Committee on Rules for crafting a very effective rule; a rule that allows the gentleman from New York (Mr. LaFalce), the ranking member of the Committee on Financial Services, to offer his substitute amendment for consideration by the House.
Congress has authorized the Securities and Exchange Commission to impose user fees on investors and market participants. The fee, intended to fund Securities and Exchange Commission operations, has turned into a cash cow for the U.S. Treasury. The government now collects fee revenues that far exceed the operating cost of the Securities and Exchange Commission. In fiscal year 2002, actual Securities and Exchange Commission collections reached a staggering
$2.27 billion. That is over six times the Securities and Exchange Commission's $377 million budget.
H.R. 1088, the Investor and Capital Markets Fee Relief Act, addresses this excess collections problem. It is important legislation that returns some $14 billion over the next 10 years to America's investors and those seeking access to our markets. It reduces or eliminates all of the excess securities fees in a responsible way, holding the appropriators harmless and ensuring that the Securities and Exchange Commission has a long-term stable funding source for its important mission of protecting investors and promoting capital formation.
Mr. Speaker, the legislation introduced by my good friend, the gentleman from New York (Mr. Fossella), will help America's nearly 100 million investors save and invest for college, retirement, or simply for a better life.
H.R. 1088 includes pay parity for the Securities and Exchange Commission staff. The SEC is experiencing severe recruiting and retention problems. In the last 3 years, more than 1,000 employees, over one-third of the agency staff, have left the agency. The Securities and Exchange Commission's overall attrition rate is more than twice the government average.
In an effort to combat this staffing crisis, the Securities and Exchange Commission has explored every available tool, including recruitment bonuses, retention allowances, emergency child care and other measures. There is no justification whatsoever for paying Securities and Exchange Commission staff 24 to 39 percent less than the Federal banking regulators, especially in light of the passage of Gramm-Leach-Bliley which requires the SEC staff to work side by side with the Federal banking regulators.
Mr. Speaker, I urge my colleagues to support this very fair rule, and support this needed legislation. Let us give money back to investors and strengthen the Securities and Exchange Commission at the same time.
Ms. SLAUGHTER. Mr. Speaker, I yield 2\1/2\ minutes to the gentlewoman from New York (Mrs. Maloney).
Mrs. MALONEY of New York. Mr. Speaker, I rise in support of the rule and the underlying bill. Investors and capital market participants were overcharged $9.2 billion over the last 10 years in fees that support the operations of the Securities and Exchange Commission. These overcharges will grow to $14 billion over the next 10 years without fee relief now.
For fiscal year 2001, the Securities and Exchange Commission's budget is $423 million, but the agency is set to collect $2.5 billion in fees, over 6 times the Securities and Exchange Commission's budget. Congress created the fee structure so that the operating costs of the Securities and Exchange Commission would be funded by those benefiting from securities regulation. The fees have evolved into a tax on investors which was not the original intent of Congress.
The Investor and Capital Markets Fee Relief Act reduces the fees on stock transactions, mergers, tender offers and new issues that investors and market participants pay to support the Securities and Exchange Commission. These fees, many of which are paid by individual investors and pension funds, were never intended to grow so dramatically. At the same time, the legislation provides pay parity for Securities and Exchange Commission employees.
Mr. Speaker, the Investor and Capital Markets Fee Relief Act will save $14 billion that can potentially be reinvested in the capital markets. It allows fees to be readjusted if the Securities and Exchange Commission ever faces a funding shortage. It provides pay parity for Securities and Exchange Commission employees. The agency has lost one-
third of its employees in the last 3 years, and is truly facing a staffing crisis.
Mr. Speaker, this particular bill passed the Committee on Financial Services and the full Senate by unanimous consent. I urge my colleagues to support both the rule and the underlying bill.
Ms. SLAUGHTER. Mr. Speaker, I have no further requests for time; and I yield back the balance of my time.
Mr. LINDER. Mr. Speaker, I urge my colleagues to support this rule so we can move on to debate on this important bill.
Mr. Speaker, I yield back the balance of my time, and I move the previous question on the resolution.
The SPEAKER pro tempore (Mr. Isakson). The question is on ordering the previous question.
The question was taken; and the Speaker pro tempore announced that the ayes appeared to have it.
Ms. SLAUGHTER. Mr. Speaker, I object to the vote on the ground that a quorum is not present and make the point of order that a quorum is not present.
The SPEAKER pro tempore. Evidently a quorum is not present.
The Sergeant at Arms will notify absent Members.
Pursuant to clause 9 of rule XX, the Chair announces that he will reduce to a minimum of 5 minutes the period of time within which a vote by electronic device, if ordered, will be taken on the question of agreeing to the resolution.
The vote was taken by electronic device, and there were--yeas 418, nays 1, not voting 13, as follows:
YEAS--418
AbercrombieAckermanAderholtAkinAllenAndrewsArmeyBacaBachusBairdBakerBaldacciBaldwinBallengerBarciaBarrBarrettBartlettBartonBassBecerraBentsenBereuterBerkleyBermanBerryBiggertBilirakisBishopBlagojevichBlumenauerBluntBoehlertBoehnerBonillaBoniorBonoBorskiBoswellBoucherBoydBrady (PA)Brady (TX)Brown (OH)Brown (SC)BryantBurrBurtonBuyerCallahanCalvertCampCannonCantorCapitoCappsCapuanoCardinCarson (OK)CastleChabotChamblissClayClaytonClementClyburnCobleCollinsCombestConditConyersCookseyCostelloCoxCoyneCramerCraneCrenshawCrowleyCulbersonCunninghamDavis (CA)Davis (FL)Davis (IL)Davis, Jo AnnDavis, TomDealDeFazioDelahuntDeLauroDeLayDeMintDeutschDiaz-BalartDicksDingellDoggettDooleyDoolittleDoyleDreierDuncanDunnEdwardsEhlersEhrlichEmersonEnglishEshooEtheridgeEvansEverettFarrFattahFilnerFlakeFletcherFoleyFordFossellaFrankFrelinghuysenGallegly GanskeGekasGephardtGibbonsGilchrestGillmorGilmanGonzalezGoodeGoodlatteGordonGossGrahamGrangerGravesGreen (TX)Green (WI)GreenwoodGrucciGutierrezGutknechtHall (OH)Hall (TX)HansenHarmanHartHastings (FL)Hastings (WA)HayesHayworthHefleyHergerHillHillearyHilliardHincheyHinojosaHobsonHoeffelHoekstraHoldenHoltHondaHooleyHornHostettlerHoyerHulshofHunterHutchinsonHydeInsleeIsaksonIsraelIssaIstookJackson (IL)Jackson-Lee (TX)JeffersonJenkinsJohnJohnson (CT)Johnson (IL)Johnson, SamJones (NC)KapturKellerKellyKennedy (MN)Kennedy (RI)KernsKildeeKilpatrickKind (WI)King (NY)KingstonKirkKleczkaKnollenbergKolbeKucinichLaFalceLaHoodLampsonLangevinLantosLargentLarsen (WA)Larson (CT)LathamLaTouretteLeachLeeLevinLewis (CA)Lewis (GA)Lewis (KY)LinderLipinskiLoBiondoLofgrenLoweyLucas (KY)Lucas (OK)LutherMaloney (CT)Maloney (NY)ManzulloMarkeyMascaraMathesonMatsuiMcCarthy (MO)McCarthy (NY)McCollumMcCreryMcDermottMcGovernMcHughMcInnisMcIntyreMcKeonMcKinneyMcNultyMeehanMeek (FL)Meeks (NY)MenendezMicaMillender-McDonaldMiller (FL)Miller, GaryMiller, GeorgeMinkMollohanMooreMoran (KS)Moran (VA)MorellaMurthaMyrickNadlerNapolitanoNealNethercuttNeyNorthupNorwoodNussleOberstarObeyOlverOrtizOsborneOseOtterOwensOxleyPallonePascrellPastorPaulPaynePelosiPencePeterson (MN)Peterson (PA)PetriPhelpsPickeringPittsPlattsPomboPomeroyPortmanPrice (NC)Pryce (OH)PutnamQuinnRadanovichRahallRamstadRangelRegulaRehbergReyesReynoldsRileyRiversRodriguezRoemerRogers (KY)Rogers (MI)RohrabacherRos-LehtinenRossRothmanRoukemaRoybal-AllardRoyceRushRyan (WI)Ryun (KS)SaboSanchezSandersSandlinSawyerSaxtonScarboroughSchafferSchakowskySchiffSchrockScottSensenbrennerSerranoSessionsShadeggShawShaysShermanSherwoodShimkusShowsShusterSimmonsSimpsonSkeenSkeltonSlaughterSmith (MI)Smith (NJ)Smith (TX)Smith (WA)SnyderSolisSouderSpenceSprattStarkStearnsStenholmStricklandStumpStupakSununuSweeneyTancredoTannerTauscherTauzinTaylor (MS)Taylor (NC)TerryThomasThompson (CA)Thompson (MS)ThornberryThuneThurmanTiahrtTiberiTierneyToomeyTownsTraficantTurnerUdall (CO)Udall (NM)UptonVelazquezViscloskyVitterWaldenWalshWampWatersWatkins (OK)Watson (CA)Watt (NC)Watts (OK)WaxmanWeinerWeldon (FL)Weldon (PA)WellerWexlerWickerWilsonWolfWoolseyWuWynnYoung (FL)
NAYS--1
Kanjorski
NOT VOTING--13
Brown (FL)Carson (IN)CubinCummingsDeGetteEngelFergusonFrostHoughtonJohnson, E. B.Jones (OH)WhitfieldYoung (AK)
{time} 1103
Mr. BURTON of Indiana and Mrs. NORTHUP changed their vote from
``nay'' to ``yea.''
So the previous question was ordered.
The result of the vote was announced as above recorded.
Stated for:
Ms. CARSON of Indiana. Mr. Speaker, for reasons beyond my control, the voting machine would not accept my voting card on Thursday, June 14, 2001, and therefore, I was unable to vote on rollcall vote 162. I alerted the Speaker pro tempore, Mr. Quinn, to the problem, but by the time I reached the well, the voting was closed. Had I been able to cast my vote I would have voted ``yea''.
The SPEAKER pro tempore (Mr. Isakson). The question is on the resolution.
The question was taken; and the Speaker pro tempore announced that the ayes appeared to have it.
Recorded Vote
Ms. SLAUGHTER. Mr. Speaker, I demand a recorded vote.
A recorded vote was ordered.
The SPEAKER pro tempore. This will be a 5-minute vote.
The vote was taken by electronic device, and there were--ayes 408, noes 12, not voting 12, as follows:
AYES--408
AbercrombieAckermanAderholtAkinAllenAndrewsArmeyBacaBachusBairdBakerBaldacciBaldwinBallengerBarciaBarrBarrettBartlettBartonBassBecerraBentsenBereuterBerkleyBermanBerryBiggertBilirakisBishopBlagojevichBlumenauerBluntBoehlertBoehnerBonillaBoniorBonoBorskiBoswellBoucherBoydBrady (PA)Brady (TX)Brown (OH)Brown (SC)BryantBurrBuyerCallahanCalvertCampCannonCantorCapitoCappsCapuanoCardinCarson (IN)Carson (OK)CastleChabotChamblissClayClaytonClementClyburnCobleCollinsCombestConditConyersCookseyCoxCoyneCramerCraneCrenshawCrowleyCulbersonCummingsCunninghamDavis (CA)Davis (FL)Davis (IL)Davis, Jo AnnDavis, TomDealDelahuntDeLauroDeLayDeMintDeutschDiaz-BalartDicksDingellDoggettDooleyDoolittleDoyleDreierDuncanDunnEdwardsEhlersEhrlichEmersonEngelEnglishEshooEtheridgeEvansEverettFarrFattahFilnerFlakeFletcherFoleyFordFossellaFrelinghuysenGalleglyGanskeGekasGephardtGibbonsGilchrestGillmorGilmanGonzalezGoodeGoodlatteGordonGossGrahamGrangerGravesGreen (TX)Green (WI)GreenwoodGrucciGutierrezGutknechtHall (OH)Hall (TX)HansenHarmanHartHastings (FL)Hastings (WA)HayesHayworthHefleyHergerHillHillearyHincheyHinojosaHobsonHoeffelHoekstraHoldenHoltHondaHooleyHornHostettlerHoyerHulshofHunterHutchinsonHydeInsleeIsaksonIsraelIssaIstookJackson (IL)Jackson-Lee (TX)JeffersonJenkinsJohnson (CT)Johnson (IL)Johnson, SamJones (NC)KapturKellerKellyKennedy (MN)Kennedy (RI)KernsKildeeKilpatrickKind (WI)King (NY)KingstonKirkKleczkaKnollenbergKolbeKucinichLaHoodLampsonLangevinLantosLargentLarsen (WA)Larson (CT)LathamLaTouretteLeachLeeLevinLewis (CA)Lewis (GA)Lewis (KY)LinderLipinskiLoBiondoLofgrenLoweyLucas (KY)Lucas (OK)LutherMaloney (CT)Maloney (NY)ManzulloMarkeyMascaraMathesonMatsuiMcCarthy (MO)McCarthy (NY)McCollumMcCreryMcDermottMcGovernMcHughMcInnisMcIntyreMcKeonMcKinneyMcNultyMeehanMeek (FL)Meeks (NY)MenendezMicaMillender-McDonaldMiller (FL)Miller, GaryMiller, GeorgeMinkMollohanMooreMoran (KS)Moran (VA)MorellaMurthaMyrickNadlerNapolitanoNealNethercuttNeyNorthupNorwoodNussleOberstarObeyOlverOrtizOsborneOseOtterOwensOxleyPallonePascrellPastorPaulPaynePelosiPencePeterson (MN)Peterson (PA)PetriPhelpsPickeringPittsPlattsPomboPomeroyPortmanPrice (NC)Pryce (OH)PutnamQuinnRadanovichRamstadRangelRegulaRehbergReyesReynoldsRileyRiversRodriguezRoemerRogers (KY)Rogers (MI)RohrabacherRos-LehtinenRossRothmanRoukemaRoybal-AllardRoyceRushRyan (WI)Ryun (KS)SaboSanchezSandersSandlinSawyerSaxtonScarboroughSchafferSchakowskySchiffSchrockScottSensenbrennerSerranoSessionsShadeggShawShaysShermanSherwoodShimkusShowsShusterSimmonsSimpsonSkeenSkeltonSlaughterSmith (MI)Smith (NJ)Smith (TX)Smith (WA)SnyderSolisSouderSpenceSprattStarkStearnsStenholmStricklandStumpStupakSununuSweeneyTancredoTannerTauscherTauzinTaylor (NC)TerryThomasThompson (CA)Thompson (MS)ThornberryThuneThurmanTiahrtTiberiTierneyToomeyTownsTraficantTurnerUdall (CO)Udall (NM)UptonVitterWaldenWalshWampWatkins (OK)Watson (CA)Watt (NC)Watts (OK)WaxmanWeinerWeldon (FL)Weldon (PA)WellerWexlerWickerWilsonWolfWoolseyWynnYoung (FL)
NOES--12
BurtonCostelloDeFazioFrankHilliardKanjorski LaFalceRahallTaylor (MS)ViscloskyWatersWu
NOT VOTING--12
Brown (FL)CubinDeGetteFergusonFrostHoughtonJohnJohnson, E. B.Jones (OH)VelazquezWhitfieldYoung (AK)
{time} 1114
So the resolution was agreed to.
The result of the vote was announced as above recorded.
A motion to reconsider was laid on the table.
____________________
