S.Amdt. 4030

1. Rewrites section 965

   Replaces

   Removes section 965.

   Inserted: SEC. 965. ORGANIZATION OF COMMISSION.

   Inserted: The Securities Exchange Act of 1934 (15 U.S.C. 78 et seq.) is amended by inserting after section 4D, as added by section 996 of this Act, the following:

   Inserted: "SEC. 4E. ORGANIZATION OF THE COMMISSION.

   Inserted: "(a) Division of Retail Investor Protection and Retail Financial Services.--

   Inserted: "(1) In general.--There shall be within the Commission a Division of Retail Investor Protection and Retail Financial Services.

   Inserted: "(2) Head of division.--The head of the Division of Retail Investor Protection and Retail Financial Services shall be appointed by the Chairman.

   Inserted: "(3) Subdivisions.--There shall be within the Division of Retail Investor Protection and Retail Financial Services--

   Inserted: "(A) a subdivision with responsibility for functions relating to investor outreach and education; and

   Inserted: "(B) a subdivision with responsibility for functions relating to inspections and examinations.

   Inserted: "(b) Division of Trading.--

   Inserted: "(1) In general.--There shall be within the Commission a Division of Trading.

   Inserted: "(2) Head of division.--The head of the Division of Trading shall be appointed by the Chairman.

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   Inserted: "(3) Subdivision.--There shall be within the Division of Trading a subdivision with responsibility for functions relating to inspections and examinations.

   Inserted: "(c) Division of Corporate Disclosure.--

   Inserted: "(1) In general.--There shall be within the Commission a Division of Corporate Disclosure.

   Inserted: "(2) Head of division.--The head of the Division of Corporate Disclosure shall be appointed by the Chairman.

   Inserted: "(3) Subdivision.--There shall be within the Division of Corporate Disclosure a subdivision with responsibility for functions relating to accounting and auditing matters.

   Inserted: "(d) Division of Economic Analysis.--

   Inserted: "(1) Purposes.--The purpose of this subsection is to enhance the ability of the Commission to use professional and objective economic analysis to inform the design and implementation of rulemaking and other actions of the Commission.

   Inserted: "(2) Division established.--There shall be within the Commission a Division of Economic Analysis.

   Inserted: "(3) Subdivisions.--There shall be within the Division of Economic Analysis--

   Inserted: "(A) a subdivision with responsibility for functions relating to risk analysis and financial innovation; and

   Inserted: "(B) a subdivision with responsibility for functions relating to international technical assistance.

   Inserted: "(4) Chief economist.--

   Inserted: "(A) Appointment.--The Division shall be headed by a Chief Economist, appointed by the Chairman of the Commission, subject to approval of a vote of at least a majority of the members of the Commission then in office, such majority to include at least 1 member of the Commission who is not a member of the same political party as the Chairman, if any such member is then in office.

   Inserted: "(B) Criteria.--The Chief Economist--

   Inserted: "(i) shall be an experienced economist of distinction, with a doctorate in economics or the equivalent in education and experience;

   Inserted: "(ii) shall report to and be under the general supervision of the Chairman; and

   Inserted: "(iii) shall not report to, or be subject to supervision by, any other officer or employee of the Commission.

   Inserted: "(C) Removal.--The Chairman of the Commission may remove the Chief Economist from office. The Chairman shall communicate in writing to both Houses of Congress the reasons for any such removal, not later than 30 days before the effective date of such removal.

   Inserted: "(5) Reports.--

   Inserted: "(A) In general.--Except as provided in subparagraph (D), whenever using its authority under any provision of law, the Commission publishes a release giving notice of a proposed rulemaking or other proposed action by the Commission, and affords interested persons an opportunity to comment on such proposed rulemaking or other action or publishes a release adopting a final rule or otherwise taking action after such publication and opportunity to comment, such release shall include as a part thereof a report by the Division.

   Inserted: "(B) Content.--Each report required by subparagraph (A)--

   Inserted: "(i) shall set forth in reasonable detail an economic analysis of the consequences of the Commission action that is the subject of the report, in light of the statutory responsibilities of the Commission and the stated purposes of the Commission for the action, including when the responsibilities of the Commission so require, the effects of the action on efficiency, competition, and capital formation;

   Inserted: "(ii) shall refer to any peer-reviewed or other relevant literature, including any study undertaken by the staff of the Commission, that provides support for the analysis contained in the report (except that the Division is not required to undertake original research in the preparation thereof);

   Inserted: "(iii) shall describe the extent to which the conclusions of the report remain subject to uncertainty; and

   Inserted: "(iv) with respect to a report delivered in connection with a proposed rulemaking or other proposed action, may request information or comment from the public.

   Inserted: "(C) Form and oversight.--Each report required by subparagraph (A)--

   Inserted: "(i) shall be prepared under the direction of, and expressly approved by and published over the name of, the Chief Economist;

   Inserted: "(ii) shall not be subject to approval by the Chairman of the Commission or the Commission;

   Inserted: "(iii) shall be in final form, dated not later than 1 week prior to the vote of the Commission (or the circulation of a seriatim or other means of Commission action) to which the report relates, to ensure adequate opportunity for the Commission to consider its contents prior to such action;

   Inserted: "(iv) shall include a statement confirming that the Chairman of the Commission informed the Division, not later than 60 days prior to the date of the report, of all material aspects of the proposed action covered by the report, in sufficient detail for the purposes of the report or, if a lesser time was afforded, that such lesser time was reasonably sufficient for the preparation of the report; and

   Inserted: "(v) shall include a statement confirming that the Division was afforded reasonably sufficient resources for the preparation of the report, or describing any lack thereof.

   Inserted: "(D) Exception.--

   Inserted: "(i) In general.--Notwithstanding subparagraph (A), no report shall be required under this paragraph--

   Inserted: "(I) if the subject Commission action does not propose or adopt a major rule for purposes of the Small Business Regulatory Enforcement Fairness Act of 1996, unless at least 2 members of the Commission (or 1 member, if 5 members of the Commission are not then in office) request a report; or

   Inserted: "(II) at the time of issuance of an interim final rulemaking or other emergency action by the Commission, provided that a report regarding such rulemaking or action is published not later than 60 days thereafter.

   Inserted: "(ii) Procedure.--The Commission may adopt rules of procedure governing the time and manner by which requests described in clause (i)(I) shall be made by members of the Commission.

   Inserted: "(e) Division of Enforcement.--

   Inserted: "(1) In general.--There shall be within the Commission a Division of Enforcement.

   Inserted: "(2) Head of division.--The head of the Division of Enforcement shall be appointed by the Chairman.

   Inserted: "(3) Subdivision.--There shall be within the Division of Enforcement a subdivision with responsibility for functions relating to international enforcement assistance.".

   Original wording

   Strike section 965 and insert the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed