Bill summaries are authored by CRS.

Shown Here:
Passed House amended (06/14/2001)

Investor and Capital Markets Fee Relief Act - Amends the Securities Exchange Act of 1934 to reduce mandatory transaction fees (by changing from a percentage to a flat dollar amount) with respect to: (1) exchange-traded securities transactions (including off-exchange trades of exchange-registered and last-sale-reported securities) from 1/300th of one percent to $15 per million of the dollar amount of securities transacted; and (2) stock repurchase statements and proxy solicitations and statements in corporate control transactions from 1/50th of one percent to $125 per million of the value of the transaction. Reduces assessments for security futures transactions from $0.02 to $0.009 per round turn transaction (for 2007 and after, from $0.0075 to $0.0042 per round turn transaction).

Excludes from the calculation of fees the sales of options on securities indexes that are not narrow-based.

(Sec. 3) Replaces the fee structure for off-exchange trades of last-sale-reported securities with a fee structure for off-exchange trades of exchange-registered and last-sale-reported securities. Requires the Securities and Exchange Commission (SEC) to adjust each fee rate each fiscal year (including a mid-year adjustment) from FY 2003 through 2011 to a uniform adjusted rate that, when applied to the baseline estimate of the aggregate dollar amount of sales for the fiscal year, is reasonably likely to produce aggregate fee and assessment collections equal to the specified target offsetting collection amount for such fiscal year.

Provides that the fees so collected shall: (1) be deposited and credited as offsetting collections to the account providing appropriations to the SEC; and (2) not be deposited and credited as general revenue of the Treasury.

(Sec. 4) Amends the Securities Act of 1933 to: (1) reduce registration fees from $239 per million to $92 per million of the maximum offering price at which securities are proposed to be offered; and (2) reflect the provisions of this Act.

(Sec. 5) Revises fees for stock repurchase statements, proxy solicitations, and statements in corporate control transactions to equal $92 per million (adjusted annually) of the value of securities proposed to be purchased. Requires that fees collected for any fiscal year be deposited and credited as offsetting collections in the account providing appropriations to the SEC. Prohibits their deposit and crediting as general revenue of the Treasury. Prohibits the collection of such fees for FY 2002 and subsequent fiscal years except to the extent provided in advance in appropriations Acts.

(Sec. 7) Amends the Trust Indenture Act of 1939 to terminate the mandatory $100 application filing fee.

(Sec. 8). Amends Federal law governing human resources procedures for Federal employees to: (1) establish an Agency Personnel Demonstration Project applicable to the SEC; and (2) authorize the SEC to provide additional compensation and benefits following guidelines under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.

(Sec. 9) Instructs the SEC Office of Economic Analysis to study and report to Congress on the extent to which investors receive the benefits of fee reductions effected under this Act. Prescribes factors for consideration.

(Sec. 10) Mandates a GAO study of the impact, implications, and consequences of converting the SEC to a self-funded basis. Defines self-funded basis to mean an agency is authorized to: (1) deposit the receipts of its collections in the Treasury, or in a depository institution, subject to certain treatment; and (2) employ, fix, and pay compensation of its personnel without regard to other laws applicable to other Federal staff. Requires that such collections receipts in the Treasury not be treated as Government funds or appropriated monies, but be available for SEC staff and expenses without annual appropriation or apportionment.