Michael Oxley

Mr. OXLEY

Mr. OXLEY. I am indeed.

Mr. OXLEY. Mr. Speaker, I yield back the balance of my time. Amendment in the Nature of a Substitute Offered by Mr. LaFalce

Mr. OXLEY. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I have no further speakers under general debate; but I just want to acknowledge and thank the subcommittee chair, the gentleman from Louisiana (Mr. Baker). He is very obviously supportive of the bill, it came out of his subcommittee, but he is chairing a very important hearing, as we speak, on the securities issues regarding stock analysts; and that is why he was unable to be present during the general debate.

Mr. OXLEY. Mr. Speaker, I yield 2 minutes to the gentleman from Texas (Mr. Bentsen). (Mr. BENTSEN asked and was given permission to revise and extend his remarks.)

Mr. OXLEY. Mr. Speaker, I yield 1 minute to the gentleman from Indiana (Mr. Pence).

Mr. OXLEY. Mr. Speaker, I am to yield 2 minutes to the gentleman from Tennessee (Mr. Ford).

Mr. OXLEY. Mr. Speaker, I reserve the balance of my time.

Mr. OXLEY. Mr. Speaker, I am pleased to yield 2 minutes to the gentleman from the Big Apple, New York, (Mr. Crowley), a distinguished member of our committee. (Mr. CROWLEY asked and was given permission to revise and extend his remarks.)

Mr. OXLEY. Mr. Speaker, I yield 2 minutes to the gentleman from New Jersey (Mr. Menendez), the vice chairman of the Democratic Caucus. (Mr. MENENDEZ asked and was given permission to revise and extend his remarks.)

Mr. OXLEY. Mr. Speaker, I yield 2 minutes to the gentleman from Texas (Mr. Sam Johnson). (Mr. SAM JOHNSON of Texas asked and was given permission to revise and extend his remarks.)

Mr. OXLEY. Mr. Speaker, I am honored to yield such time as he may consume to the gentleman from Iowa (Mr. Nussle), chairman of the Committee on the Budget.

Mr. OXLEY. Mr. Speaker, I am pleased to yield 3 minutes to the gentleman from New York (Mr. Fossella), the sponsor of the legislation. (Mr. FOSSELLA asked and was given permission to revise and extend his remarks.)

Mr. OXLEY. Mr. Speaker, I yield such time as she may consume to the gentlewoman from New Jersey (Mrs. Roukema). (Mrs. ROUKEMA asked and was given permission to revise and extend her remarks.)

Mr. OXLEY. Mr. Speaker, I yield myself 5 minutes. Mr. Speaker, I am pleased today to bring to the floor H.R. 1088, the Investor and Capital Markets Fee Relief Act. This legislation returns excessive Securities and Exchange Commission fees, $14 billion over the next 10 years, to America's investors and those seeking access to our markets. Introduced by my good friend, the gentleman from New York (Mr. Fossella), an important Member of the Committee on Financial Services, H.R. 1088 reduces or eliminates all of the securities fees in a responsible way by holding the appropriators harmless and ensuring that the SEC has a long-term stable funding source for its important mission of protecting investors and promoting capital formation. Contrary to the explicit intent of the Congress, the government now collects fee revenues that far exceed the operating costs of the SEC. In fiscal year 2000, actual SEC fee collections reached a staggering $2.27 billion, over six times the SEC's $377 million budget; and it is estimated that fee collections this fiscal year will be substantially higher. In my home State of Ohio, the Public Employees Pension Fund will pay several million dollars in the next decade if this legislation is not enacted, and that goes for all of the public employees return systems throughout the country. Each day this year investors across the country are paying more than $3 million in excess transaction fees alone. The excess revenues are being used to fund other Federal programs, entirely unrelated to regulation of the securities markets. The fees are unmistakably a tax on investors and capital formation. They are no longer about government need, but about government greed. The legislation also includes a provision granting SEC employees pay parity with the banking regulators. The commission faces a staffing crisis. In the last 3 years, over one-third of the SEC's staff have left the agency. In the increasingly consolidated financial services industry, SEC staff perform the same functions and work side by side with their counterparts at the Federal Banking Agency, yet inexplicably earn anywhere from 25 to 45 percent less. In an environment where the investors and markets need effective regulation more than ever, it is important to address the morale problem and its effects on retention of SEC staff. The securities industry strongly supports pay parity, because it will, by helping the commission attract and retain first-rate staff, improve the regulation efficiency of our capital markets. We intend the pay parity provisions to be executed in a responsible fashion, enabling the SEC to provide the same benefits to its employees as those provided to the Federal banking regulators, but not more. I am pleased that so many Members on the other side of the aisle have helped in this effort. I particularly appreciate all of the efforts of the gentlewoman from New York (Mrs. Maloney), the gentleman from New York (Mr. Crowley), and the gentleman from New Jersey (Mr. Menendez) for their hard work and efforts on our behalf. This bipartisan legislation enjoys widespread support from the investing public, the Securities and Exchange Commission, major pension funds, the Profit-Sharing/401(k) Council of America, and the securities industry. H.R. 1088 is pro-investor, good government legislation. I urge all of my colleagues to vote against the Democratic substitute and to support final passage. Mr. Speaker, I include for the Record two exchanges of letters between myself and Chairman Thomas and Chairman Combest regarding their respective committee's jurisdiction. I also want to thank both of them for their cooperation in bringing this important legislation to the floor. House of Representatives, Committee on Agriculture, Washington, DC, April 2, 2001. Hon. Michael G. Oxley, Chairman, Committee on Financial Services, Rayburn House Office Building, Washington, DC. Dear Mr. Chairman: On March 28, 2001, the Committee on Financial Services ordered reported H.R. 1088, the Investor and Capital Markets Fee Relief Act. As you are aware, section 2 of the bill affects the Agriculture Committee's jurisdiction with regard to transaction fees on security futures products. Because of your willingness to consult with the Committee on Agriculture regarding this matter and the need to move this legislation expeditiously, I will waive consideration of the bill by the Agriculture Committee. By agreeing to waive its consideration of the bill, the Agriculture Committee does not waive its jurisdiction over H.R. 1088. In addition, the Committee on Agriculture reserves its authority to seek conferees on any provisions of the bill that are within our jurisdiction during any House-Senate conference that may be convened on this legislation. I ask your commitment to support any request by our Committee for conferees on H.R. 1088 or related legislation. I request that you include this letter and your response as part of your committee's report on the bill and the Congressional Record during consideration of the legislation on the House floor. Thank you for your cooperation in this matter. Sincerely, Larry Combest, Chairman.

Mr. OXLEY. Mr. Speaker, I yield 5 minutes to the gentleman from Indiana (Mr. Burton) and ask unanimous consent that he be permitted to control that time.

Mr. OXLEY. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks on H.R. 1088.

Mr. OXLEY. Mr. Speaker, pursuant to House Resolution 161, I call up 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, and ask for its immediate consideration in the House.

Mr. OXLEY

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.

Mr. OXLEY

Mr. OXLEY. Mr. Speaker, I would like to join the colleagues who have paid their appreciation to a genial giant of the House of Representatives, Congressman Joe Moakley. Last night, the Massachusetts delegation led a tribute to Joe Moakley in Statutory Hall. How fitting for Joe to be honored in that hall of legends. It's hard in an era of political cynicism to find public officials who would be described as ``beloved.'' But Joe Moakley certainly was one, as evidenced by the heartfelt tributes that have come from those he worked with here in Washington and the people he represented back in Boston. Joe Moakley was principled, fair, and famously friendly. He was passionate without being unpleasant. Joe loved the institution of Congress and, in turn, became one of the select legislators who make Congress work for the American people. But despite his long years of service in the Nation's Capital and his ascension to the highest levels of power in the House, Joe Moakley remained a man of Massachusetts and a person of great humor and humility. His unmistakable and delightful Boston accent told you immediately who Joe Moakley was, where he came from, and who he represented. During his distinguished career, Joe Moakley stood for integrity and decency. In doggedly carrying on with his congressional duties during this illness, he achieved nobility as well. We all mourn the loss of an expert legislator and friend. But we can honor the legacy of Joe Moakley by conducting our business with his sense of honor and decency. It's a way that we can give back, for all that Joe Moakley gave to the House of Representatives, his constituents, and his country.

Mr. OXLEY

Mr. OXLEY. Mr. Speaker, it is my honor today to offer my best wishes to the Lima (Ohio) NAACP at its annual radiothon this Saturday, June 9. This event, to be held at Lima's Bradfield Center, is designed to increase local awareness of the chapter, attracting new members from the community and renewing the dedication and commitment of current members. The radiothon broadcast will be live on Lima's WIMA-AM from 1:00 to 4:00 PM. The Lima chapter president, Mrs. Daisy Gipson, and my good friend Malcolm McCoy deserve particular recognition for this hard work with the organization. I applaud them and their colleagues in the local chapter for their positive influence on young people in and around Lima, and wish them every success with Saturday's radiothon.

Mr. OXLEY

Mr. OXLEY. Madam Speaker, for twenty years, small business owners have lived in fear of the onerous Superfund law. With the passage of H.R. 1831, the Small Business Liability Protection Act, the House of Representatives is saying, ``Enough!'' As you may know, Superfund reform consumed a good portion of my legislative career during the last half decade. That's how I came to meet Barbara Williams, the restaurant owner in Gettysburg who found herself ensnared in Superfund liability even though she did little more than dump a few chicken bones and leftover mashed potatoes in the local landfill. Small business owners across the country have suffered through the same expensive experience. Superfund was never supposed to drive these hard-working business people into bankruptcy. The National Federation of Independent Business has been out in front, trying to correct this injustice. And over the years, I came to feel that many Members also regarded this as unfair. Barbara Williams and the NFIB started a crusade that is culminating in this bill. The legislative process can move slowly . . . and while it's moving, some us move along. But I have a sense of satisfaction that we are doing the right thing for innocent small businesses. I'd like to thank all of the people who worked with me on Superfund reform, and congratulate all those involved in bringing H.R. 1831 to the floor, including my colleague and good friend from Ohio, Representative Paul Gillmor.

Mr. OXLEY

Mr. OXLEY. Mr. Speaker, on behalf of my constituents in the Fourth Congressional District, I want to honor the heroes who stopped the runaway train in northwestern Ohio on Tuesday. The entire nation saw the courage of Jon Hosfeld, Jess Knowlton, and Terry Forson as they slowed and then stopped a 47-car train whose cargo included a dangerous chemical. This train, which got loose near Toledo, traveled unmanned through communities at speeds approaching 46 miles an hour. The television images of how the train was finally stopped riveted a nation. Knowlton and Forson maneuvered a second locomotive and coupled up with the runaway train, bringing it down to a speed that allowed Jon Hosfeld to leap on and finally bring this drama to an end. Jumping onto a moving train is something you only see in the movies. But we witnessed every bit of the trainmaster's 31 years of experience with CSX as he surmounted the risk. Amazingly, what we later learned is that Hosfeld, who lives in my hometown of Findlay, had been in a car pursuing the train nearly from the start. Jon Hosfeld's moment to be a hero had arrived. I salute Jon Hosfeld, Jess Knowlton, Terry Forson and the other skilled railroad workers who responded so nobly and professionally. Thanks to them, what could have been a disaster was averted. I also commend the law enforcement and emergency management teams along the line who secured rail crossings and kept citizens away from harm. While it appears that this incident began as a result of a human error--an error, it seems now, the first engineer tried to correct by vainly trying to climb onto a moving train--what we saw unfold during a dramatic afternoon in Ohio was a testament to professional skill and personal courage. Jon Hosfeld, the feat that you and your colleagues performed will go down in railroad lore.

Mr. OXLEY

Mr. OXLEY. Mr. Speaker, it has come to my attention that some language intended to be included in the report to accompany H.R. 974, the Small Business Interest Checking Act of 2001 (H. Rept. 107-38) was inadvertently omitted when the report was filed. The paragraph beginning on page 19 and ending on page 20 of that report, explaining section 7 of the legislation, should read as follows: This section provides that nothing in the bill is to be construed as creating any presumption or implication that, in the case of an escrow account maintained at a depository institution in connection with a real estate transaction, the absorption of expenses incidental to a normal banking function, or the forbearance of any fee in connection with the same, or the receipt of any benefits thereof by the holder or the beneficiary of that escrow account, may be treated as the payment or receipt of interest for purposes of Public Law 93-100, the Federal Reserve Act, the Home Owner's Loan Act, or the Federal Deposit Insurance Act. The Committee intends that this provision clarify that the current treatment of such transactions under Federal law and regulation, particularly the regulations of the Board of Governors of the Federal Reserve DD and Q, is unaffected by this legislation. Current law does not treat the provision of the services and benefits described by this section as the payment or receipt of interest to or by the holder or beneficiary of an escrow account, and that presumption will remain the law upon the enactment of this bill. This language clarifies the intent of the Committee with respect to this provision, and corrects the omission in the printed report.

Mr. OXLEY

Mr. OXLEY. Mr. Speaker, I yield 2 minutes to the gentleman from Nebraska (Mr. Bereuter), the chairman of the Subcommittee on International Monetary Policy and Trade. (Mr. BEREUTER asked and was given permission to revise and extend his remarks.)

Mr. OXLEY. Mr. Speaker, I have no further requests for time, and I yield back the balance of my time.