Bill summaries are authored by CRS.

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Passed House amended (03/12/1996)

Securities and Exchange Commission Authorization Act of 1996 - Authorizes appropriations for the Securities and Exchange Commission (SEC) for FY 1997.

(Sec. 4) Amends the Securities Act of 1933 to require the SEC to collect securities registration fees that are designed to recover the costs to the Government of the securities registration process, and costs related to such process, including enforcement activities, policy and rulemaking activities, administration, legal services, and international regulatory activities.

Revises the registration fee formula, increasing the minimum fee from $100 to $200, with a reduction to $182 beginning FY 2002. States that such fee shall be the sum of a general revenue fee and an offsetting collection fee.

Sets the general revenue fee at $200 for each $1 million of the maximum aggregate price at which the securities in question are sold (reduced to $182 per $1 million beginning FY 2002).

Schedules the offsetting collection rate for each $1 million of the maximum aggregate sales price of the securities in question in declining specified levels from $103 in FY 1997 to $17 in FY 2000, and zero in each succeeding fiscal year. Declares: (1) that no offsetting collection fees shall be collected for any fiscal year except to the extent provided in advance in appropriations Acts; and (2) that such fees collected during any fiscal year shall be deposited and credited as offsetting collections in accordance with appropriations Acts.

States that, if on the first day of a fiscal year a regular appropriation to the SEC has not been enacted, the SEC shall continue to collect offsetting collections fees at the preceding fiscal year rate, until such regular appropriation is enacted.

(Sec. 5) Amends the Securities Exchange Act of 1934 to revise annual transaction fees that national securities exchanges and registered brokers and dealers must pay the SEC.

Requires the SEC to collect transaction fees that are designed to recover the costs to the Government of the supervision and regulation of securities markets and securities professionals, and costs related to such supervision and regulation, including enforcement activities, policy and rulemaking activities, administration, legal services, and international regulatory activities.

Requires every national securities exchange to pay the SEC an annual exchange-traded securities fee at a rate of $33 for each $1 million (reduced in FY 2002 to $25 per $1 million) of the aggregate dollar amount of sales of securities (other than bonds, debentures, and other evidences of indebtedness) transacted on such exchange.

Eliminates specific reference to registered brokers and dealers.

Requires every national securities association to pay the SEC an annual off-exchange-trade fee at a rate of $33 for each $1 million (reduced in FY 2002 to $25 per $1 million) of the aggregate dollar amount of sales transacted by or through any member of such association otherwise than on a national securities exchange of securities registered on such an exchange (other than bonds, debentures, and other evidences of indebtedness).

Requires every national securities association to pay the SEC an annual fee for off-exchange-trades of last-sale-reported securities at a specified rate (determined according to a certain schedule) for each $1 million of the aggregate dollar amount of sales transacted by or through any member of such association otherwise than on a national securities exchange of securities (other than bonds, debentures, and other evidences of indebtedness) subject to prompt last sale reporting under SEC rules or the rules of a registered national securities association. Excludes from such fee any sales for which a regular off-exchange-trade fee is paid.

Schedules the rate per $1 million for fees for off-exchange-trades of last-sale-reported securities in specified rising levels from $12 in FY 1997 to $25 in FY 2002 and each succeeding fiscal year. Declares that no offsetting collection fees shall be collected for any fiscal year before FY 2002 except to the extent provided in advance in appropriations Acts. States that any such fees collected during any fiscal year, except in excess of certain levels, shall be deposited and credited as offsetting collections to the account providing appropriations to the SEC. Requires deposit and crediting as general revenues of the Treasury of total annual amounts of fees for off-exchange-trades of last-sale-reported securities: (1) exceeding specified levels ranging from $20 million in FY 1997 up to $32 million in each of FY 1999 through 2001; and (2) any such amount collected for FY 2002 and succeeding fiscal years.

States that, if on the first day of a fiscal year a regular appropriation to the SEC has not been enacted, the SEC shall continue to collect fees for off-exchange-trades of last-sale-reported securities (as offsetting collections) at the preceding fiscal year rate, until such regular appropriation is enacted.

Sets forth annual due dates for all fees. Requires annual publication of fee rates in the Federal Register.

(Sec. 6) Authorizes the SEC to specify the time that fee payments shall be determined and paid relative to the filing with the SEC of any statement or document.

(Sec. 7) Declares the sense of the Congress that: (1) the fees authorized by this Act are in lieu of, and not in addition to, any other specified fees and charges for Government services and things of value that the Securities and Exchange Commission is authorized to impose or collect; and (2) in order to maintain the competitiveness of U.S. securities markets relative to foreign markets, no fee should be assessed on transactions involving portfolios of equity securities taking place at times of day characterized by low volume and during non-traditional trading hours.