Statement of Administration Policy: H.R. 2972 - Securities and Exchange Commission Authorization Act

(House)
(Bliley (R) Virginia and 12 cosponsors)

The Administration supports authorization of the Securities and Exchange Commission (SEC), out has serious concerns about the budgetary structure proposed in H.R. 2972. The Administration will work with the Senate to address its budgetary concerns with this legislation.

H.R. 2972 would reduce or eliminate certain securities registration and transaction fees.

Currently these fees are used to offset almost two thirds of the SEC's appropriation. A key objective of the bill is to preclude the use of such fees to fund the SEC's budget under the appropriations process. This would require the Appropriations Committees to fund the SEC solely from the limited budget authority available under the discretionary caps. At a time when both the Congress and the Administration are contemplating declining discretionary resources, this year and in future years, fully handing the SEC through appropriations, as proposed in H.R. 2972, would create a situation where the SEC is competing for.funding with other worthy programs funded by the Commerce, Justice, State, Judiciary and Related Agencies (CJS) Subcommittees. Such programs include: (1) criminal justice programs, such as drug interdiction and community policing; (2) important research and technology programs; (3) immigration enforcement and border control initiatives; and (4) US commitments to international organizations and peacekeeping.

By comparison, the Administration proposes to continue past practice and use fees to fund the SEC. In the FY 1996 and 1997 Budgets, the Administration proposes that SEC be fully funded through such fees, requiring no use of discretionary budget authority and ensuring that the SEC is fully funded.