US Code Title 15 Section 78

CITE

    15 USC Sec. 78d                                             01/08/2008

EXPCITE

    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 2B - SECURITIES EXCHANGES

HEAD

    Sec. 78d. Securities and Exchange Commission

STATUTE

    (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.
    (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.

SOURCE

    (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.

FOOTNOTE

    (!1) So in original. Probably should be "Notwithstanding".