In anticipation of the financial reform legislation heading to the Senate floor in the coming weeks, current and past Securities and Exchange Commission chairmen are among those pressing lawmakers to keep the SEC self-funding provision in the bill.

Section 991 of the bill passed by the Senate Banking Committee would allow the SEC to set its own budget through fees, penalties, and other assessments imposed on SEC registrants.

SEC Chairman Mary Schapiro reportedly joined with past SEC chairmen and New York Democratic Senator Charles Schumer, who has backed legislation to provide for self-funding, on an April 15 conference call to continue stumping for SEC self-funding. Supporters hope the effort will prevent Senate members from stripping the provision from the bill before a final vote.

The House financial reform bill passed last December didn't specifically provide for self-funding, but rather calls for an outside review of SEC operations, including the question of funding.

In a statement, Schapiro noted that the SEC "languishes as one of the few financial regulators still subject to the annual appropriations process."

The Commission's budget is offset by fees on the securities industry, primarily those collected on securities transactions and registrations. However, those fees are independent of, and typically "significantly exceed" the agency's budget. For example, Schapiro noted that in 2010, the SEC will collect about $1.5 billion for the Treasury, while its appropriation is $1.1 billion.

"The fees assessed on investors' transactions should be dedicated to protecting investors," Schapiro said in a statement.

Chairman Schapiro also sent letters to Majority Leader Harry Reid (D-Nev.) and Minority Leader Mitch McConnell (R-K.) reiterating the importance of self-funding.

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