SEC pay bill may be on fast track

House Financial Services Chairman Michael Oxley, R-Ohio, Wednesday said the Senate has signaled it might be willing to take up House-passed legislation providing a pay raise for Securities and Exchange Commission employees, thereby avoiding the need for a conference committee.

Speaking with reporters, Oxley and House Republican leaders said the bill is definitely slated for debate and a vote Thursday morning.

Asked afterward about the prospects for a conference, Oxley said Sen. Charles Schumer, D-N.Y., who is a cosponsor of similar SEC legislation already approved in the Senate, has expressed "his desire" to take up the House-passed bill. Oxley said the chances of that happening are better, if there is "a good vote" on the measure in the House chamber Thursday.

Avoiding a conference would allow bill proponents to bypass objections raised by House Government Reform Chairman Dan Burton, R-Ind., who is opposed to the bill on the grounds it would raise pay for SEC employees across the board.

Burton has argued that allowing such a pay hike will lead to an avalanche of requests by other agencies for similar increases, and he plans to express his displeasure in a floor speech Thursday.

Asked about Burton's concerns about a possible domino effect, House Majority Leader Dick Armey, R-Texas, told CongressDaily that the Republican leadership understands "that impulse is out there. But we think we have it contained."

He indicated that the main thrust of the bill, which is estimated to save large investors $14 billion over the next decade by reducing fees they must pay, is too tempting to resist. "You bring $14 billion to the table and we'll look at you," he quipped.

If there is a conference on the measure, Armey said he expected it would be House Speaker Dennis Hastert's, R-Ill., disposition to include Burton.

House Financial Services ranking member John LaFalce, D-N.Y., has been granted permission to offer a substitute on the floor. That substitute would offer a savings of $4 billion over 10 years, and is not expected to pass.