§ 78d. — Securities and Exchange Commission.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC78d]
TITLE 15--COMMERCE AND TRADE
CHAPTER 2B--SECURITIES EXCHANGES
Sec. 78d. Securities and Exchange Commission
(a) Establishment; composition; limitations on commissioners; terms of
office
There is hereby established a Securities and Exchange Commission
(hereinafter referred to as the ``Commission'') to be composed of five
commissioners to be appointed by the President by and with the advice
and consent of the Senate. Not more than three of such commissioners
shall be members of the same political party, and in making appointments
members of different political parties shall be appointed alternately as
nearly as may be practicable. No commissioner shall engage in any other
business, vocation, or employment than that of serving as commissioner,
nor shall any commissioner participate, directly or indirectly, in any
stock-market operations or transactions of a character subject to
regulation by the Commission pursuant to this chapter. Each commissioner
shall hold office for a term of five years and until his successor is
appointed and has qualified, except that he shall not so continue to
serve beyond the expiration of the next session of Congress subsequent
to the expiration of said fixed term of office, and except (1) any
commissioner appointed to fill a vacancy occurring prior to the
expiration of the term for which his predecessor was appointed shall be
appointed for the remainder of such term, and (2) the terms of office of
the commissioners first taking office after June 6, 1934, shall expire
as designated by the President at the time of nomination, one at the end
of one year, one at the end of two years, one at the end of three years,
one at the end of four years, and one at the end of five years, after
June 6, 1934.
(b) Appointment and compensation of staff and leasing authority
(1) Appointment and compensation
The Commission shall appoint and compensate officers, attorneys,
economists, examiners, and other employees in accordance with
section 4802 of title 5.
(2) Reporting of information
In establishing and adjusting schedules of compensation and
benefits for officers, attorneys, economists, examiners, and other
employees of the Commission under applicable provisions of law, the
Commission shall inform the heads of the agencies referred to under
section 1833b of title 12 and Congress of such compensation and
benefits and shall seek to maintain comparability with such agencies
regarding compensation and benefits.
(3) Leasing authority
Nothwithstanding \1\ any other provision of law, the Commission
is authorized to enter directly into leases for real property for
office, meeting, storage, and such other space as is necessary to
carry out its functions, and shall be exempt from any General
Services Administration space management regulations or directives.
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\1\ So in original. Probably should be ``Notwithstanding''.
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(c) Acceptance of travel support for Commission activities from non-
Federal sources; regulations
Notwithstanding any other provision of law, in accordance with
regulations which the Commission shall prescribe to prevent conflicts of
interest, the Commission may accept payment and reimbursement, in cash
or in kind, from non-Federal agencies, organizations, and individuals
for travel, subsistence, and other necessary expenses incurred by
Commission members and employees in attending meetings and conferences
concerning the functions or activities of the Commission. Any payment or
reimbursement accepted shall be credited to the appropriated funds of
the Commission. The amount of travel, subsistence, and other necessary
expenses for members and employees paid or reimbursed under this
subsection may exceed per diem amounts established in official travel
regulations, but the Commission may include in its regulations under
this subsection a limitation on such amounts.
(d) Acceptance of relocation expenses from former employers by
professional fellows program participants
Notwithstanding any other provision of law, former employers of
participants in the Commission's professional fellows programs may pay
such participants their actual expenses for relocation to Washington,
District of Columbia, to facilitate their participation in such
programs, and program participants may accept such payments.
(e) Fee payments
Notwithstanding any other provision of law, whenever any fee is
required to be paid to the Commission pursuant to any provision of the
securities laws or any other law, the Commission may provide by rule
that such fee shall be paid in a manner other than in cash and the
Commission may also specify the time that such fee shall be determined
and paid relative to the filing of any statement or document with the
Commission.
(f) Reimbursement of expenses for assisting foreign securities
authorities
Notwithstanding any other provision of law, the Commission may
accept payment and reimbursement, in cash or in kind, from a foreign
securities authority, or made on behalf of such authority, for necessary
expenses incurred by the Commission, its members, and employees in
carrying out any investigation pursuant to section 78u(a)(2) of this
title or in providing any other assistance to a foreign securities
authority. Any payment or reimbursement accepted shall be considered a
reimbursement to the appropriated funds of the Commission.
(June 6, 1934, ch. 404, title I, Sec. 4, 48 Stat. 885; Oct. 28, 1949,
ch. 782, title XI, Sec. 1106(a), 63 Stat. 972; Pub. L. 86-619, Sec. 3,
July 12, 1960, 74 Stat. 408; Pub. L. 86-771, Sept. 13, 1960, 74 Stat.
913; Pub. L. 88-426, title III, Sec. 305(20), Aug. 14, 1964, 78 Stat.
425; Pub. L. 98-38, Sec. 1, June 6, 1983, 97 Stat. 205; Pub. L. 100-181,
title III, Sec. 307, Dec. 4, 1987, 101 Stat. 1254; Pub. L. 101-550,
title I, Sec. 103, title II, Sec. 207, Nov. 15, 1990, 104 Stat. 2713,
2721; Pub. L. 104-290, title IV, Sec. 406, Oct. 11, 1996, 110 Stat.
3444; Pub. L. 105-353, title II, Sec. 203, Nov. 3, 1998, 112 Stat. 3234;
Pub. L. 107-123, Sec. 8(d)(2), Jan. 16, 2002, 115 Stat. 2399.)
References in Text
This chapter, referred to in subsec. (a), was in the original ``this
title'' and ``this Act'', respectively. See References in Text note set
out under section 78a of this title.
Amendments
2002--Subsec. (b)(1), (2). Pub. L. 107-123 added pars. (1) and (2)
and struck out former pars. (1) and (2), which authorized the Commission
to appoint and compensate officers, attorneys, examiners, and other
experts as needed, and to select, appoint, and compensate professional
economists.
1998--Subsec. (b)(2), (3). Pub. L. 105-353 added par. (2) and
redesignated former par. (2) as (3).
1996--Subsec. (e). Pub. L. 104-290 inserted before period at end
``and the Commission may also specify the time that such fee shall be
determined and paid relative to the filing of any statement or document
with the Commission''.
1990--Subsec. (b). Pub. L. 101-550, Sec. 103, inserted heading,
designated existing provision as par. (1) and inserted heading, and
added par. (2).
Subsec. (f). Pub. L. 101-550, Sec. 207, added subsec. (f).
1987--Subsec. (e). Pub. L. 100-181 added subsec. (e).
1983--Subsecs. (c), (d). Pub. L. 98-38 added subsecs. (c) and (d).
1964--Subsec. (a). Pub. L. 88-426 repealed provisions which
prescribed the compensation of the Chairman and the Commissioners.
1960--Subsec. (a). Pub. L. 86-771 authorized the chairman to receive
an additional $500 a year.
Pub. L. 86-619 increased the salary of each commissioner from
$15,000 to $20,000 a year, and provided for continuation in office of a
commissioner upon termination of his term until a successor is appointed
and has qualified, not beyond expiration of next session of Congress
subsequent to the expiration of said fixed term of office.
1949--Subsec. (b). Act Oct. 28, 1949, substituted ``Classification
Act of 1949'' for ``Classification Act of 1923''.
Effective Date of 2002 Amendment
Amendment by Pub. L. 107-123 effective Oct. 1, 2001, see section 11
of Pub. L. 107-123, set out as a note under section 78ee of this title.
Effective Date of 1964 Amendment
For effective date of amendment by Pub. L. 88-426, see section 501
of Pub. L. 88-426.
Repeals
Act Oct. 28, 1949, ch. 782, set out in the credit of this section,
was repealed (subject to a savings clause) by Pub. L. 89-554, Sept. 6,
1966, Sec. 8, 80 Stat. 632, 655.
Transfer of Functions
For transfer of functions of Securities and Exchange Commission,
with certain exceptions, to Chairman of such Commission, see Reorg. Plan
No. 10 of 1950, Secs. 1, 2, eff. May 24, 1950, 15 F.R. 3175, 64 Stat.
1265, set out below.
Compensation of Chairman and Commissioners
Compensation of Chairman and Commissioners, see sections 5314 and
5315 of Title 5, Government Organization and Employees.
1950 REORGANIZATION PLAN NO. 10
15 F.R. 3175, 64 Stat. 1265
Prepared by the President and transmitted to the Senate and the House of
Representatives in Congress assembled, March 13, 1950, pursuant to
the provisions of the Reorganization Act of 1949, approved June 20,
1949 [see 5 U.S.C. 901 et seq.].
SECURITIES AND EXCHANGE COMMISSION
Section 1. Transfer of Functions to the Chairman
(a) Subject to the provisions of subsection (b) of this section
there are hereby transferred from the Securities and Exchange
Commission, hereinafter referred to as the Commission, to the Chairman
of the Commission, hereinafter referred to as the Chairman, the
executive and administrative functions of the Commission, including
functions of the Commission with respect to (1) the appointment and
supervision of personnel employed under the Commission, (2) the
distribution of business among such personnel and among administrative
units of the Commission, and (3) the use and expenditure of funds.
(b)(1) In carrying out any of his functions under the provisions of
this section the Chairman shall be governed by general policies of the
Commission and by such regulatory decisions, findings, and
determinations as the Commission may by law be authorized to make.
(2) The appointment by the Chairman of the heads of major
administrative units under the Commission shall be subject to the
approval of the Commission.
(3) Personnel employed regularly and full time in the immediate
offices of Commissioners other than the Chairman shall not be affected
by the provisions of this reorganization plan.
(4) There are hereby reserved to the Commission its functions with
respect to revising budget estimates and with respect to determining
upon the distribution of appropriated funds according to major programs
and purposes.
Sec. 2. Performance of Transferred Functions
The Chairman may from time to time make such provisions as he shall
deem appropriate authorizing the performance by any officer, employee,
or administrative unit under his jurisdiction of any function
transferred to the Chairman by the provisions of section 1 of this
reorganization plan.
Sec. 3. Designation of Chairman
The functions of the Commission with respect to choosing a Chairman
from among the Commissioners composing the Commission are hereby
transferred to the President.
Message of the President
To the Congress of the United States:
I transmit herewith Reorganization Plan No. 10 of 1950, prepared in
accordance with the Reorganization Act of 1949 and providing for
reorganizations in the Securities and Exchange Commission. My reasons
for transmitting this plan are stated in an accompanying general
message.
After investigation I have found and hereby declare that each
reorganization included in Reorganization Plan No. 10 of 1950 is
necessary to accomplish one or more of the purposes set forth in section
2(a) of the Reorganization Act of 1949.
The taking effect of the reorganizations included in this plan may
not in itself result in substantial immediate savings. However, many
benefits in improved operations are probable during the next years which
will result in a reduction in expenditures as compared with those that
would be otherwise necessary. An itemization of these reductions in
advance of actual experience under this plan is not practicable.
Harry S. Truman.
Section Referred to in Other Sections
This section is referred to in sections 77uuu, 78c, 79z-5, 80a-45,
80b-18 of this title.
