S. 979Senate108th Congress (2003-2005)In Committee

Broad-Based Stock Option Plan Transparency Act of 2003

Introduced May 1, 2003

Legislative Activity

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2 earlier actions
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (text of measure as introduced: CR S5671)

May 1, 2003

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SenateIntro Referral

Introduced in Senate

May 1, 2003

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S5670-5671)

May 1, 2003

SenateIntro Referral

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (text of measure as introduced: CR S5671)

May 1, 2003

Floor Debate

18 members

What members said about S. 979 on the floor

9 Republicans9 Democrats
Arlen Specter
Sen. Arlen SpecterR-PA · May 1, 2003

Mr. President, I have sought recognition to join Senator Tom Harkin, my colleague and distinguished ranking member of the Appropriations Subcommittee on Labor, Health and Human Services and…

Edward M. Kennedy
Sen. Edward M. KennedyD-MA · May 1, 2003

Mr. President, it's a privilege to join my colleagues in introducing this legislation to combat hate crimes. Hate crimes are a violation of all our country stands for. They send the poisonous message…

Frank R. Lautenberg
Sen. Frank R. LautenbergD-NJ · May 1, 2003

Mr. President, I rise to introduce a critical piece of legislation, the Homeland Security Gun Safety Act. In the aftermath of the tragic events of 9-11, the Federal Government has reassessed the…

Max Baucus
Sen. Max BaucusD-MT · May 1, 2003

Mr. President, I am introducing a bill today that I hope will take us one step closer to achieving permanent protections for Montana's magnificent Rocky Mountain Front. The Front, as we call it back…

Tom Harkin
Sen. Tom HarkinD-IA · May 1, 2003

Mr. President, today Senator Specter and I and others introduce the Medicaid Community-Based Attendant Services and Supports Act of 2003, MICASSA. This legislation is needed to truly bring people…

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Dianne Feinstein
Sen. Dianne FeinsteinD-CA · May 1, 2003

Mr. President, I rise in support of legislation introduced by Senators Boxer and Ensign to improve disclosure of stock option grants in company financial statements while, at the same time, delaying…

Dianne Feinstein
Sen. Dianne FeinsteinD-CA · May 1, 2003

Mr. President, I rise in support of legislation introduced by Senators Boxer and Ensign to improve disclosure of stock option grants in company financial statements while, at the same time, delaying…

Jeff Sessions
Sen. Jeff SessionsR-AL · May 1, 2003

Mr. President, I rise today to introduce legislation which will simplify and update a provision of the tax code that affects the sale of timber. It is both a simplification measure and a fairness…

Lincoln Chafee
Sen. Lincoln ChafeeR-RI · May 1, 2003

Mr. President, I am pleased to be joined today by Senator Harry Reid and others in introducing the Breast Cancer and Environmental Research Act of 2003. This bill would establish research centers…

John Warner
Sen. John WarnerR-VA · May 1, 2003

Mr. President, I rise today to introduce legislation, along with my colleague, Senator Allen, to mint a commemorative coin celebrating the 400th anniversary of the founding of Jamestown, VA in 2007.…

Peter Fitzgerald
Sen. Peter FitzgeraldR-IL · May 1, 2003

Mr. President, I rise today to introduce the Children's Deformities Act of 2003, which will require insurance companies to cover corrective surgeries for children with congenital or developmental…

Barbara Boxer
Sen. Barbara BoxerD-CA · May 1, 2003

Mr. President, today I am introducing legislation is to ensure that American taxpayers and American businesses are protected when the Federal Government procures property or services. The purpose of…

Christopher J. Dodd
Sen. Christopher J. DoddD-CT · May 1, 2003

Mr. President, I rise today to introduce legislation that is important to America's Federal law enforcement officers and the people they protect across the country. I am joined today by Senator…

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John Ensign
Sen. John EnsignR-NV · May 1, 2003

Mr. President, I rise today, along with my good friend, the junior Senator from California, to introduce legislation on an issue that could have a significant impact on the economy. The financial…

John Ensign
Sen. John EnsignR-NV · May 1, 2003

Mr. President, I rise today, along with my good friend, the junior Senator from California, to introduce legislation on an issue that could have a significant impact on the economy. The financial…

Harry Reid
Sen. Harry ReidD-NV · May 1, 2003

Mr. President, I am pleased to join Senator Chafee in reintroducing the Breast Cancer and Environmental Research Act. Senator Chafee and I serve together on the Environment and Public Works Committee…

Don Nickles
Sen. Don NicklesR-OK · May 1, 2003

Mr. President, I rise today to introduce legislation to provide that restaurant buildings are depreciated over 15 years instead of the current-law 39 years. My legislation will ensure that the tax…

Ernest F. Hollings
Sen. Ernest F. HollingsD-SC · May 1, 2003

Mr. President, March marked the 32nd consecutive month, since July 2000), that manufacturing employment has declined in the United States. This is the longest consecutive monthly decline in the post…

Norm Coleman
Sen. Norm ColemanR-MN · May 1, 2003

Mr. President, I ask unanimous consent that the bill I introduce today to clarify the authority of States to establish conditions for insurers to conduct the business of insurance within a State…

Lindsey Graham
Sen. Lindsey GrahamR-SC · May 1, 2003

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Bill Text

Latest available legislative text

Reading Mode
Latest
Introduced in SenateIssued May 1, 2003
        [Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 979 Introduced in Senate (IS)]

108th CONGRESS
1st Session
S. 979

To direct the Securities and Exchange Commission to require enhanced
disclosures of employee stock options, to require a study on the
economic impact of broad-based employee stock option plans, and for
other purposes.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

May 1, 2003

Mr. Ensign  (for himself, Mrs. Boxer, Ms. Cantwell, Mr. Crapo, Mr.
Craig, Mr. Allen, Mrs. Murray, Mrs. Feinstein, Mr. Reid, Mr. Allard,
Mr. Burns, Mr. Warner, Mr. Bennett, Mr. Smith, and Ms. Stabenow)
introduced the following bill; which was read twice and referred to the
Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

A BILL

To direct the Securities and Exchange Commission to require enhanced
disclosures of employee stock options, to require a study on the
economic impact of broad-based employee stock option plans, and for
other purposes.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Broad-Based Stock Option Plan
Transparency Act of 2003''.

SEC. 2. CONGRESSIONAL FINDINGS.

Congress finds that--
(1) innovation and entrepreneurship, particularly in the
high technology industry, helped propel the economic growth of
the 1990s, and will continue to be the essential building
blocks of economic growth in the 21st century;
(2) broad-based employee stock option plans enable
entrepreneurs and corporations to attract quality workers, to
incentivize worker innovation, and to stimulate productivity,
which in turn increase shareholder value;
(3) broad-based employee stock options plans that expand
corporate ownership to rank-and-file employees spur capital
formation, benefit workers, and improve corporate performance
to the benefit of investors and the economy;
(4) concerns raised about the impact of employee stock
option plans on shareholder value raise legitimate issues
relevant to the current level of disclosure and transparency of
those plans to current and potential investors; and
(5) investors deserve to have accurate, reliable, and
meaningful information about the existence of outstanding
employee stock options and their impact on the share value of a
going concern.

SEC. 3. IMPROVED EMPLOYEE STOCK OPTION TRANSPARENCY AND REPORTING
DISCLOSURES.

(a) Enhanced Disclosures Required.--Not later than 180 days after
the date of enactment of this Act, the Securities and Exchange
Commission (in this Act referred to as the ``Commission'') shall, by
rule, require, for each company required to file periodic reports under
section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15
U.S.C. 78m, 78o(d)), that such reports include detailed information
regarding stock option plans, stock purchase plans, and other
arrangements involving an employee acquisition of an equity interest in
the company, particularly with respect to the dilutive effect of such
plans, including--
(1) a discussion, written in ``plain English'' (in
accordance with the Plain English Handbook published by the
Office of Investor Education and Assistance of the Commission),
of the dilutive effect of stock option plans, including tables
or graphic illustrations of such dilutive effects;
(2) expanded disclosure of the dilutive effect of employee
stock options on the earnings per share number of the company;
(3) prominent placement and increased comparability of all
stock option related information; and
(4) a summary of the stock options granted to the 5 most
highly compensated executive officers of the company, including
any outstanding stock options of those officers.
(b) Equity Interest.--As used in this section, the term ``equity
interest'' includes common stock, preferred stock, stock appreciation
rights, phantom stock, and any other security that replicates the
investment characteristics of such securities, and any right or option
to acquire any such security.

SEC. 4. EVALUATION OF EMPLOYEE STOCK OPTION PLANS TRANSPARENCY AND
REPORTING DISCLOSURES AND REPORT TO CONGRESS.

(a) Study and Report.--
(1) Study.--During the 3-year period following the date of
issuance of a final rule under section 3(a), the Commission
shall conduct a study of the effectiveness of the enhanced
disclosures required by section 3 in increasing transparency to
current and potential investors.
(2) Report.--Not later than 180 days after the end of the
3-year period referred to in paragraph (1), the Commission
shall transmit a report of the results of the study conducted
under paragraph (1) to the Committee on Financial Services of
the House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate.
(b) Moratorium on New Accounting Standards Related to Stock
Options.--During the period beginning on the date of enactment of this
Act and ending 60 days after the date of transmission of the report
required under subsection (a)(2), the Commission shall not recognize as
generally accepted accounting principles for purposes of enforcing the
securities laws any accounting standards related to the treatment of
stock options that the Commission did not recognize for that purpose
before April 1, 2003.

SEC. 5. STUDY ON THE ECONOMIC IMPACT OF BROAD-BASED EMPLOYEE STOCK
OPTION PLANS AND REPORT TO CONGRESS.

(a) Study.--
(1) In general.--The Secretary of Commerce shall conduct a
study and analysis of broad-based employee stock option plans,
particularly in the high technology and any other high growth
industries.
(2) Content.--The study and analysis required by paragraph
(1) shall include an examination of--
(A) the impact of such plans on expanding employee
corporate ownership to workers at a wide-range of
income levels, with a particular focus on rank-and-file
employees;
(B) the role of such plans in the recruitment and
retention of skilled workers; and
(C) the role of such plans in stimulating research
and innovation;
(D) the impact of such plans on the economic growth
of the United States; and
(E) the role of such plans in strengthening the
international competitiveness of companies organized
under the laws of the United States.
(b) Report.--Not later than 1 year after the date of enactment of
this Act, the Secretary of Commerce shall submit a report on the study
and analysis required by subsection (a) to--
(1) the Committee on Energy and Commerce and the Committee
on Financial Services of the House of Representatives; and
(2) the Committee on Commerce, Science, and Transportation
and the Committee on Banking, Housing, and Urban Affairs of the
Senate.
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