```

[House Report 111-41, Part 1]
[From the U.S. Government Publishing Office]

111th Congress                                             Rept. 111-41
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 1

======================================================================

 
SPECIAL INSPECTOR GENERAL FOR THE TROUBLED ASSET RELIEF PROGRAM ACT OF 
                                  2009

                                _______
                                

March 19, 2009.--Committed to the Whole House on the State of the Union 
                       and ordered to be printed

                                _______
                                

 Mr. Frank of Massachusetts, from the Committee on Financial Services, 
                        submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                         [To accompany S. 383]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Financial Services, to whom was referred 
the bill (S. 383) to amend the Emergency Economic Stabilization 
Act of 2008 (division A of Public Law 110-343) to provide the 
Special Inspector General with additional authorities and 
responsibilities, and for other purposes, having considered the 
same, report favorably thereon without amendment and recommend 
that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     3
Committee Consideration..........................................     3
Committee Votes..................................................     3
Committee Oversight Findings.....................................     6
Performance Goals and Objectives.................................     6
New Budget Authority, Entitlement Authority, and Tax Expenditures     6
Committee Cost Estimate..........................................     7
Congressional Budget Office Estimate.............................     7
Federal Mandates Statement.......................................     7
Advisory Committee Statement.....................................     8
Constitutional Authority Statement...............................     8
Applicability to Legislative Branch..............................     8
Earmark Identification...........................................     8
Section-by-Section Analysis of the Legislation...................     8
Changes in Existing Law Made by the Bill, as Reported............     9
Additional Views.................................................    13

                          Purpose and Summary

    S. 383, the ``Special Inspector General for the Troubled 
Asset Relief Program Act of 2009,'' would clarify the law 
enforcement authority of the Special Inspector General and 
provide additional hiring flexibility for the Office of the 
Special Inspector General for the Troubled Asset Relief Program 
(SIGTARP).
    Specifically, S. 383 would amend the TARP provisions of the 
Emergency Economic Stabilization Act of 2008 (EESA, P.L. 110-
343), by providing the SIG with more authority to examine 
actions taken under TARP; clarifying the law enforcement 
authority of the SIG; providing the SIG with temporary hiring 
authority for six months; permitting the SIG the ability to 
hire federal annuitants without the need for such hires to 
offset their pension, and requiring the Treasury Department to 
notify Congress of the reason for failing to follow any written 
recommendations made by SIGTARP; requiring cooperation amongst 
the Inspectors General that have oversight responsibility over 
TARP; adding the SIGTARP to the council of Inspectors General; 
and changing the timing of reporting requirements and the time 
limit for release of funds to SIGTARP.

                  Background and Need for Legislation

    Nearly five months ago, Congress enacted EESA, which 
authorized the establishment of the Troubled Asset Relief 
Program (TARP) within the Treasury Department, and created the 
Office of Financial Stability within Treasury to implement 
TARP. The Act also established the Office of the Special 
Inspector General for the Troubled Asset Relief Program and 
authorized $50 million for the office.
    President Bush nominated Neil M. Barofsky on November 14, 
2008, to serve as the Special Inspector General for TARP. 
Subsequently, Mr. Barofsky was confirmed by the Senate on 
December 8, 2008, and was sworn into office on December 15, 
2008.
    Senator Claire McCaskill introduced S. 383, the Special 
Inspector General for the Troubled Asset Relief Program of 
2009, on February 4, 2009. The Senate passed the bill by 
unanimous consent on February 4, and the bill was subsequently 
referred to the House Committees on Financial Services and 
Oversight and Government Reform for consideration.
    On February 24, 2009, the Subcommittee on Oversight and 
Investigations held a hearing on TARP Oversight. At this 
hearing, Mr. Barofsky testified that the additional hiring 
flexibility provided by S. 383 is urgently needed to enable his 
office to quickly hire experienced investigators to help 
effectively and expeditiously carry out the congressional 
mandate to ``conduct, supervise, and coordinate audits and 
investigations of the purchase, management, and sale of assets 
by the Secretary of the Treasury under any program established 
by the Secretary'' under TARP.
    On March 5, 2009, Subcommittee on Oversight and 
Investigations Chairman Dennis Moore and Subcommittee Ranking 
Member Judy Biggert introduced H.R. 1341, an identical version 
of the Senate legislation. In introducing the companion 
legislation, Chairman Moore and Ranking Member Biggert noted 
that SIGTARP is the sole TARP oversight body charged with 
criminal law enforcement authority, and given the scale of 
government funds being quickly disbursed, the SIGTARP should 
have every tool available to vigilantly monitor for any crimes 
and waste, fraud or abuse related to the TARP program. Other 
Members joining as co-sponsor include Representatives Bean, 
Driehaus, Hinchey, Kilroy, Paulsen and Sherman.
    The Committee is concerned about the inclusion and 
utilization to the maximum extent possible of minority- and 
women-owned businesses in all business and activities of the 
Secretary and each assisted institution under TARP at all 
levels, including in procurement, insurance, and all types of 
contracts. As such, the Committee encourages the Special 
Inspector General to closely monitor and provide ongoing 
reports to the Congress on the ability of these groups to 
participate under TARP, and any remedial actions that might 
increase such participation. Furthermore, the Committee 
encourages the Special Inspector General to consider examining 
how TARP funding has been used to benefit smaller banks that 
may be well-positioned to provide needed credit to families and 
small businesses in their communities.

                                Hearings

    The Subcommittee on Oversight and Investigations held a 
hearing on February 24, 2009, on ``A Review of TARP Oversight, 
Accountability and Transparency for U.S. Taxpayers.'' The 
following witnesses testified:
           Mr. Neil M. Barofsky, Special Inspector 
        General, Office of the Special Inspector General, 
        Troubled Asset Relief Program
           Mr. Gene L. Dodaro, Acting Comptroller 
        General of the United States, Government Accountability 
        Office
           Ms. Elizabeth Warren, Chair, Congressional 
        Oversight Panel & Leo Gottlieb Professor of Law, 
        Harvard University

                        Committee Consideration

    The Committee on Financial Services met in open session on 
March 11, 2009, and on March 12, 2009, ordered S. 383, the 
``Special Inspector General for the Troubled Asset Relief 
Program Act of 2009,'' favorably reported to the House by a 
voice vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. A 
motion by Mr. Frank to report the bill to the House with a 
favorable recommendation was agreed to by a voice vote.
    During the consideration of the bill, the following 
amendments were disposed of by record votes. The names of 
Members voting for and against follow:
    An amendment by Mr. Paulsen, No. 1, regarding a report on 
assistance for smaller financial institutions, as amended, was 
not agreed to by a record vote of 25 yeas, 35 nays and 1 
present (FC-2):

                                              RECORD VOTE NO. FC-2
----------------------------------------------------------------------------------------------------------------
         Representative             Aye       Nay     Present     Representative       Aye       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Frank.......................  .......        X   .........  Mr. Bachus........        X   ........  ........
Mr. Kanjorski...................  .......        X   .........  Mr. Castle........        X   ........  ........
Ms. Waters......................  .......        X   .........  Mr. King (NY).....        X   ........  ........
Mrs. Maloney....................  .......        X   .........  Mr. Royce.........        X   ........  ........
Mr. Gutierrez...................  .......        X   .........  Mr. Lucas.........        X   ........  ........
Ms. Velazquez...................  .......        X   .........  Mr. Paul..........        X   ........  ........
Mr. Watt........................  .......        X   .........  Mr. Manzullo......        X   ........  ........
Mr. Ackerman....................  .......  ........  .........  Mr. Jones.........        X   ........  ........
Mr. Sherman.....................  .......        X   .........  Mrs. Biggert......        X   ........  ........
Mr. Meeks.......................  .......  ........  .........  Mr. Miller (CA)...  ........  ........  ........
Mr. Moore (KS)..................  .......        X   .........  Mrs. Capito.......        X   ........  ........
Mr. Capuano.....................  .......        X   .........  Mr. Hensarling....        X   ........  ........
Mr. Hinojosa....................  .......  ........  .........  Mr. Garrett (NJ)..  ........  ........  ........
Mr. Clay........................  .......        X   .........  Mr. Barrett (SC)..        X   ........  ........
Mrs. McCarthy...................  .......        X   .........  Mr. Gerlach.......        X   ........  ........
Mr. Baca........................  .......        X   .........  Mr. Neugebauer....        X   ........  ........
Mr. Lynch.......................  .......        X   .........  Mr. Price (GA)....  ........  ........  ........
Mr. Miller (NC).................  .......        X   .........  Mr. McHenry.......        X   ........  ........
Mr. Scott.......................  .......        X   .........  Mr. Campbell......  ........        X   ........
Mr. Green.......................  .......        X   .........  Mr. Putnam........        X   ........  ........
Mr. Cleaver.....................  .......        X   .........  Mrs. Bachmann.....        X   ........  ........
Ms. Bean........................  .......        X   .........  Mr. Marchant......        X   ........  ........
Ms. Moore (WI)..................  .......        X   .........  Mr. McCotter......        X   ........  ........
Mr. Hodes.......................  .......        X   .........  Mr. McCarthy......        X   ........  ........
Mr. Ellison.....................  .......  ........         X   Mr. Posey.........        X   ........  ........
Mr. Klein.......................  .......        X   .........  Ms. Jenkins.......        X   ........  ........
Mr. Wilson......................  .......        X   .........  Mr. Lee...........        X   ........  ........
Mr. Perlmutter..................  .......        X   .........  Mr. Paulsen.......        X   ........  ........
Mr. Donnelly....................  .......        X   .........  Mr. Lance.........        X   ........  ........
Mr. Foster......................  .......  ........  .........
Mr. Carson......................  .......        X   .........
Mr. Speier......................  .......  ........  .........
Mr. Childers....................  .......        X   .........
Mr. Minnick.....................  .......  ........  .........
Mr. Adler.......................  .......        X   .........
Ms. Kilroy......................  .......        X   .........
Mr. Driehaus....................  .......        X   .........
Ms. Kosmas......................  .......  ........  .........
Mr. Grayson.....................  .......        X   .........
Mr. Himes.......................  .......        X   .........
Mr. Peters......................  .......        X   .........
Mr. Maffei......................  .......  ........  .........
----------------------------------------------------------------------------------------------------------------

    An amendment by Mr. Hensarling, No. 3, regarding minimizing 
potential long-term negative impact on the taxpayer, was not 
agreed to by a record vote of 26 yeas and 37 nays (FC-3):

                                              RECORD VOTE NO. FC-3
----------------------------------------------------------------------------------------------------------------
         Representative             Aye       Nay     Present     Representative       Aye       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Frank.......................  .......        X   ........  Mr. Bachus.........        X   ........  ........
Mr. Kanjorski...................  .......        X   ........  Mr. Castle.........        X   ........  ........
Ms. Waters......................  .......        X   ........  Mr. King (NY)......        X   ........  ........
Mrs. Maloney....................  .......        X   ........  Mr. Royce..........        X   ........  ........
Mr. Gutierrez...................  .......        X   ........  Mr. Lucas..........        X   ........  ........
Ms. Velazquez...................  .......        X   ........  Mr. Paul...........        X   ........  ........
Mr. Watt........................  .......        X   ........  Mr. Manzullo.......        X   ........  ........
Mr. Ackerman....................  .......  ........  ........  Mr. Jones..........        X   ........  ........
Mr. Sherman.....................  .......        X   ........  Mrs. Biggert.......        X   ........  ........
Mr. Meeks.......................  .......  ........  ........  Mr. Miller (CA)....  ........  ........  ........
Mr. Moore (KS)..................  .......        X   ........  Mrs. Capito........        X   ........  ........
Mr. Capuano.....................  .......        X   ........  Mr. Hensarling.....        X   ........  ........
Mr. Hinojosa....................  .......  ........  ........  Mr. Garrett (NJ)...        X   ........  ........
Mr. Clay........................  .......        X   ........  Mr. Barrett (SC)...        X   ........  ........
Mrs. McCarthy...................  .......        X   ........  Mr. Gerlach........        X   ........  ........
Mr. Baca........................  .......        X   ........  Mr. Neugebauer.....        X   ........  ........
Mr. Lynch.......................  .......        X   ........  Mr. Price (GA).....  ........  ........  ........
Mr. Miller (NC).................  .......        X   ........  Mr. McHenry........        X   ........  ........
Mr. Scott.......................  .......        X   ........  Mr. Campbell.......  ........        X   ........
Mr. Green.......................  .......        X   ........  Mr. Putnam.........        X   ........  ........
Mr. Cleaver.....................  .......        X   ........  Mrs. Bachmann......        X   ........  ........
Ms. Bean........................  .......        X   ........  Mr. Marchant.......        X   ........  ........
Ms. Moore (WI)..................  .......        X   ........  Mr. McCotter.......        X   ........  ........
Mr. Hodes.......................  .......        X   ........  Mr. McCarthy.......        X   ........  ........
Mr. Ellison.....................  .......        X   ........  Mr. Posey..........        X   ........  ........
Mr. Klein.......................  .......        X   ........  Ms. Jenkins........        X   ........  ........
Mr. Wilson......................  .......        X   ........  Mr. Lee............        X   ........  ........
Mr. Perlmutter..................  .......        X   ........  Mr. Paulsen........        X   ........  ........
Mr. Donnelly....................  .......        X   ........  Mr. Lance..........        X   ........  ........
Mr. Foster......................  .......  ........  ........
Mr. Carson......................  .......        X   ........
Mr. Speier......................  .......  ........  ........
Mr. Childers....................  .......        X   ........
Mr. Minnick.....................  .......        X   ........
Mr. Adler.......................  .......        X   ........
Ms. Kilroy......................  .......        X   ........
Mr. Driehaus....................  .......        X   ........
Ms. Kosmas......................  .......  ........  ........
Mr. Grayson.....................  .......        X   ........
Mr. Himes.......................  .......        X   ........
Mr. Peters......................  .......        X   ........
Mr. Maffei......................  .......        X   ........
----------------------------------------------------------------------------------------------------------------

    An amendment by Mr. Lee, No. 5, regarding obtaining 
auditors' services through private persons to the greatest 
extent practicable, was not agreed to by a record vote of 27 
yeas and 36 nays (FC-4):

                                              RECORD VOTE NO. FC-4
----------------------------------------------------------------------------------------------------------------
          Representative             Aye       Nay     Present     Representative       Aye      Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Frank........................  .......        X   ........  Mr. Bachus.........        X   .......  ........
Mr. Kanjorski....................  .......        X   ........  Mr. Castle.........        X   .......  ........
Ms. Waters.......................  .......        X   ........  Mr. King (NY)......        X   .......  ........
Mrs. Maloney.....................  .......        X   ........  Mr. Royce..........        X   .......  ........
Mr. Gutierrez....................  .......        X   ........  Mr. Lucas..........        X   .......  ........
Ms. Velazquez....................  .......        X   ........  Mr. Paul...........        X   .......  ........
Mr. Watt.........................  .......        X   ........  Mr. Manzullo.......        X   .......  ........
Mr. Ackerman.....................  .......  ........  ........  Mr. Jones..........        X   .......  ........
Mr. Sherman......................  .......        X   ........  Mrs. Biggert.......        X   .......  ........
Mr. Meeks........................  .......  ........  ........  Mr. Miller (CA)....  ........  .......  ........
Mr. Moore (KS)...................  .......        X   ........  Mrs. Capito........        X   .......  ........
Mr. Capuano......................  .......        X   ........  Mr. Hensarling.....        X   .......  ........
Mr. Hinojosa.....................  .......  ........  ........  Mr. Garrett (NJ)...        X   .......  ........
Mr. Clay.........................  .......        X   ........  Mr. Barrett (SC)...        X   .......  ........
Mrs. McCarthy....................  .......        X   ........  Mr. Gerlach........        X   .......  ........
Mr. Baca.........................  .......        X   ........  Mr. Neugebauer.....        X   .......  ........
Mr. Lynch........................  .......        X   ........  Mr. Price (GA).....  ........  .......  ........
Mr. Miller (NC)..................  .......        X   ........  Mr. McHenry........        X   .......  ........
Mr. Scott........................  .......        X   ........  Mr. Campbell.......        X   .......  ........
Mr. Green........................  .......        X   ........  Mr. Putnam.........        X   .......  ........
Mr. Cleaver......................  .......        X   ........  Mrs. Bachmann......        X   .......  ........
Ms. Bean.........................  .......        X   ........  Mr. Marchant.......        X   .......  ........
Ms. Moore (WI)...................  .......        X   ........  Mr. McCotter.......        X   .......  ........
Mr. Hodes........................  .......        X   ........  Mr. McCarthy.......        X   .......  ........
Mr. Ellison......................  .......        X   ........  Mr. Posey..........        X   .......  ........
Mr. Klein........................  .......        X   ........  Ms. Jenkins........        X   .......  ........
Mr. Wilson.......................  .......        X   ........  Mr. Lee............        X   .......  ........
Mr. Perlmutter...................  .......        X   ........  Mr. Paulsen........        X   .......  ........
Mr. Donnelly.....................  .......        X   ........  Mr. Lance..........        X   .......  ........
Mr. Foster.......................  .......  ........  ........
Mr. Carson.......................  .......        X   ........
Mr. Speier.......................  .......  ........  ........
Mr. Childers.....................  .......        X   ........
Mr. Minnick......................  .......        X   ........
Mr. Adler........................  .......        X   ........
Ms. Kilroy.......................  .......        X   ........
Mr. Driehaus.....................  .......        X   ........
Ms. Kosmas.......................  .......  ........  ........
Mr. Grayson......................  .......        X   ........
Mr. Himes........................  .......        X   ........
Mr. Peters.......................  .......        X   ........
Mr. Maffei.......................  .......        X   ........
----------------------------------------------------------------------------------------------------------------

    The following amendments were also considered:
    An amendment by Mr. Watt (and Ms. Waters and Mr. Meeks), 
No. 1a, to the amendment offered by Mr. Paulsen, regarding 
reporting on inclusion and utilization of women and minorities, 
was agreed to by a voice vote.
    An amendment by Mr. Castle, No. 2, regarding authority to 
follow the money, was offered and withdrawn.
    An amendment by Mr. Barrett, No. 4, regarding the 
nonapplicability of certain provisions, was ruled out of order 
on a point of order.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee held a hearing and made 
findings that are reflected in this report.

                    Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the Committee establishes the 
following performance related goals and objectives for this 
legislation:
    S. 383 would clarify the law enforcement authority of the 
Special Inspector General and provide additional hiring 
flexibility for the Office of the Special Inspector General for 
the Troubled Asset Relief Program (SIGTARP) in order to give 
the SIGTARP every tool available to vigilantly monitor for any 
crimes and waste, fraud or abuse related to the TARP program.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee adopts as its 
own the estimate of new budget authority, entitlement 
authority, or tax expenditures or revenues contained in the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act of 1974.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, March 17, 2009.
Hon. Barney Frank,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 383, the Special 
Inspector General for the Troubled Asset Relief Program Act of 
2009.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                      Douglas W. Elmendorf,
                                                          Director.
    Enclosure.

S. 383--Special Inspector General for the Troubled Asset Relief Program 
        Act of 2009

    S. 383 would amend the Emergency Economic Stabilization Act 
of 2008 to expand the authorities of the Special Inspector 
General (SIG) for the Troubled Asset Relief Program. The 
legislation would broaden the SIG's authority to carry out 
audits and investigations, and would require the Department of 
the Treasury to transfer to the SIG, within seven days of 
enactment, whatever remains of the $50 million already 
appropriated for the SIG's activities.
    Under the act, about $40 million of amounts previously 
appropriated would be transferred to the SIG. Based on 
information provided by the SIG, CBO expects that this 
provision would not affect the timing of the agency's 
expenditures. We estimate that the other provisions of the 
legislation also would have no significant effect on the 
federal budget.
    S. 383 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would impose no costs on state, local, or tribal governments.
    The CBO staff contacts for this estimate are Matthew 
Pickford and Deborah Reis. The estimate was approved by Theresa 
Gullo, Deputy Assistant Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional Authority of Congress to enact this legislation 
is provided by Article 1, section 8, clause 1 (relating to the 
general welfare of the United States) and clause 3 (relating to 
the power to regulate interstate commerce).

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

                         Earmark Identification

    S. 383 does not contain any congressional earmarks, limited 
tax benefits, or limited tariff benefits as defined in clause 9 
of rule XXI.

             Section-by-Section Analysis of the Legislation

Section 1. Short title

    This section establishes the short title of the bill, the 
``Special Inspector General for the Troubled Asset Relief 
Program Act of 2009.''

Section 2. Audit and investigations

    Clarifies existing SIGTARP authority to conduct, supervise, 
and coordinate audits or investigations of any action taken 
under Title I of EESA (TARP Authorization).
    Requires the SIGTARP to be treated the same as an office 
under Section 6(e)(3) of the Inspector General Act of 1978, as 
amended. This language is similar to that included in H.R. 384, 
which passed the House earlier this year. Section 6(e)(3) 
enumerates IGs that are exempt from an initial determination by 
the AG regarding whether an IG, Assistant IG or agent 
supervised by an assistant IG may (1) carry a firearm; (2) make 
an arrest without a warrant while engaged in official duties as 
authorized under this Act or other statute; or (3) seek and 
execute warrants for arrest, search of a premises, or seizure 
of evidence issued under the authority of the United States 
upon probable cause to believe that a violation has been 
committed.
    Provides that in the event that the Office of the Special 
Inspector General is terminated, the Inspector General of the 
Department of the Treasury shall assume the responsibilities of 
the Special Inspector General under this subsection.

Section 3. Personnel authorities

    Provides SIGTARP the authority to exercise temporary hiring 
authorities for a limited time (six months from the date of 
enactment of the bill).
    Also provides SIGTARP the authority to hire federal 
annuitants without requiring that they offset their pension. 
This authority would be limited to 25 employees at any one 
time. SIGTARP estimates that 25 staff would be equivalent to 
between 28 to 40 percent of SIGTARP's investigative and audit 
staff.

Section 4. Response to audits and cooperation and coordination with 
        other entities

    Requires Treasury to notify Congress of the reason for 
failing to follow any written recommendations made by SIGTARP. 
It also requires cooperation among the various Inspectors 
General touched by the Relief Program to avoid duplication of 
effort and to ensure comprehensive oversight of TARP.
    Adds SIGTARP to the Council of the Inspectors General on 
Integrity and Efficiency.

Section 5. Reporting requirements

    Requires a report to Congress by September 1, 2009, on the 
use of funds received by financial institutions. The general 
quarterly reporting requirements for SIGTARP are changed so 
that reports will be due 30 days after the end of each fiscal 
quarter.

Section 6. Funding of the Office of the Special Inspector General

    Adds a time limit of seven days after enactment of this 
bill to the existing requirement of release of funds to SIGTARP 
set forth in EESA.

Section 7. Council of the Inspectors General on Integrity and 
        Efficiency

    Adds the Special Inspector General for Iraq Reconstruction 
and the Special Inspector General for Afghanistan 
Reconstruction as members of the Council of the Inspectors 
General on Integrity and Efficiency established pursuant to the 
Inspectors General Act of 1978, as amended.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

              EMERGENCY ECONOMIC STABILIZATION ACT OF 2008

DIVISION A--EMERGENCY ECONOMIC STABILIZATION

           *       *       *       *       *       *       *

TITLE I--TROUBLED ASSETS RELIEF PROGRAM

           *       *       *       *       *       *       *

SEC. 121. SPECIAL INSPECTOR GENERAL FOR THE TROUBLED ASSET RELIEF 
                    PROGRAM.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Duties.--(1) * * *

           *       *       *       *       *       *       *

          (4)(A) Except as provided under subparagraph (B) and 
        in addition to the duties specified in paragraphs (1), 
        (2), and (3), the Special Inspector General shall have 
        the authority to conduct, supervise, and coordinate an 
        audit or investigation of any action taken under this 
        title as the Special Inspector General determines 
        appropriate.
          (B) Subparagraph (A) shall not apply to any action 
        taken under section 115, 116, 117, or 125.
  (d) Powers and Authorities.--(1) * * *
  (2) The Special Inspector General shall carry out the duties 
specified in [subsection (c)(1)] subsection (c)(1) and (4) in 
accordance with section 4(b)(1) of the Inspector General Act of 
1978.
          (3) The Office of the Special Inspector General for 
        the Troubled Asset Relief Program shall be treated as 
        an office included under section 6(e)(3) of the 
        Inspector General Act of 1978 (5 U.S.C. App.) relating 
        to the exemption from the initial determination of 
        eligibility by the Attorney General.
  (e) Personnel, Facilities, and Other Resources.--(1)(A) The 
Special Inspector General may select, appoint, and employ such 
officers and employees as may be necessary for carrying out the 
duties of the Special Inspector General, subject to the 
provisions of title 5, United States Code, governing 
appointments in the competitive service, and the provisions of 
chapter 51 and subchapter III of chapter 53 of such title, 
relating to classification and General Schedule pay rates.
  (B)(i) Subject to clause (ii), the Special Inspector General 
may exercise the authorities of subsections (b) through (i) of 
section 3161 of title 5, United States Code (without regard to 
subsection (a) of that section).
  (ii) In exercising the employment authorities under 
subsection (b) of section 3161 of title 5, United States Code, 
as provided under clause (i) of this subparagraph--
          (I) the Special Inspector General may not make any 
        appointment on and after the date occurring 6 months 
        after the date of enactment of the Special Inspector 
        General for the Troubled Asset Relief Program Act of 
        2009;
          (II) paragraph (2) of that subsection (relating to 
        periods of appointments) shall not apply; and
          (III) no period of appointment may exceed the date on 
        which the Office of the Special Inspector General 
        terminates under subsection (k).

           *       *       *       *       *       *       *

  (5)(A) Except as provided under subparagraph (B), if an 
annuitant receiving an annuity from the Civil Service 
Retirement and Disability Fund becomes employed in a position 
within the Office of the Special Inspector General for the 
Troubled Asset Relief Program, his annuity shall continue. An 
annuitant so reemployed shall not be considered an employee for 
purposes of chapter 83 or 84.
  (B) Subparagraph (A) shall apply to--
          (i) not more than 25 employees at any time as 
        designated by the Special Inspector General; and
          (ii) pay periods beginning after the date of 
        enactment of the Special Inspector General for the 
        Troubled Asset Relief Program Act of 2009.
  (f) Corrective Responses to Audit Problems.--The Secretary 
shall--
  (1) take action to address deficiencies identified by a 
report or investigation of the Special Inspector General or 
other auditor engaged by the TARP; or
  (2) certify to appropriate committees of Congress that no 
action is necessary or appropriate.
  (g) Cooperation and Coordination With Other Entities.--In 
carrying out the duties, responsibilities, and authorities of 
the Special Inspector General under this section, the Special 
Inspector General shall work with each of the following 
entities, with a view toward avoiding duplication of effort and 
ensuring comprehensive oversight of the Troubled Asset Relief 
Program through effective cooperation and coordination:
          (1) The Inspector General of the Department of 
        Treasury.
          (2) The Inspector General of the Federal Deposit 
        Insurance Corporation.
          (3) The Inspector General of the Securities and 
        Exchange Commission.
          (4) The Inspector General of the Federal Reserve 
        Board.
          (5) The Inspector General of the Federal Housing 
        Finance Board.
          (6) The Inspector General of any other entity as 
        appropriate.
  (h) Council of the Inspectors General on Integrity and 
Efficiency.--The Special Inspector General shall be a member of 
the Council of the Inspectors General on Integrity and 
Efficiency established under section 11 of the Inspector 
General Act of 1978 (5 U.S.C. App.) until the date of 
termination of the Office of the Special Inspector General for 
the Troubled Asset Relief Program.
  [(f)] (i) Reports.--(1) [Not later than 60 days after the 
confirmation of the Special Inspector General, and every 
calendar quarter thereafter, the Special Inspector General 
shall submit to the appropriate committees of Congress a report 
summarizing the activities of the Special Inspector General 
during the 120-day period ending on the date of such report.] 
Not later than 60 days after the confirmation of the Special 
Inspector General, and not later than 30 days following the end 
of each fiscal quarter, the Special Inspector General shall 
submit to the appropriate committees of Congress a report 
summarizing the activities of the Special Inspector General 
during that fiscal quarter. Each report shall include, for the 
period covered by such report, a detailed statement of all 
purchases, obligations, expenditures, and revenues associated 
with any program established by the Secretary of the Treasury 
under sections 101 and 102, as well as the information 
collected under subsection (c)(1).
  (2) Not later than September 1, 2009, the Special Inspector 
General shall submit a report to Congress assessing use of any 
funds, to the extent practical, received by a financial 
institution under the TARP and make the report available to the 
public, including posting the report on the home page of the 
website of the Special Inspector General within 24 hours after 
the submission of the report.
  [(2)] (3) Nothing in this subsection shall be construed to 
authorize the public disclosure of information that is--
          (A) * * *

           *       *       *       *       *       *       *

  [(3)] (4) Any reports required under this section shall also 
be submitted to the Congressional Oversight Panel established 
under section 125.
  (5) Except as provided under paragraph (3), all reports 
submitted under this subsection shall be available to the 
public.
  [(g)] (j) Funding.--(1) Of the amounts made available to the 
Secretary of the Treasury under section 118, $50,000,000 shall 
be available to the Special Inspector General to carry out this 
section, not later than 7 days after the date of enactment of 
the Special Inspector General for the Troubled Asset Relief 
Program Act of 2009.

           *       *       *       *       *       *       *

  [(h)] (k) Termination.--The Office of the Special Inspector 
General shall terminate on the later of--
          (1) * * *

           *       *       *       *       *       *       *

                            ADDITIONAL VIEWS

    Republicans support giving the special Inspector general 
for the Troubled Asset Relief Program (SIGTARP) the necessary 
audit and investigative authority to ensure that taxpayers are 
protected and that the program is free of waste, fraud and 
abuse. S. 383 gives the SIGTARP authority to quickly hire 
auditors by granting him temporary hiring authority, and 
requires the Treasury Secretary to explain to Congress why any 
specific SIGTARP recommendation is not implemented. While these 
are useful provisions, Republican offered amendments during 
Committee consideration of S. 383 to substantially improve the 
bill by strengthening accountability in the TARP and enhancing 
taxpayer protections. These amendments, summarized below, were 
opposed by every Committee Democrat, largely on the ground that 
making any changes to the Senate-passed versions of S. 383 
would slow down the process. Because Republicans believe that 
it is more important to get it right than to get it done 
quickly, we urge the Majority to reconsider its opposition to 
these common-sense amendments and allow them to be considered 
in the full House.
    Paulsen amendment. An Amendment offered by Mr. Paulsen of 
Minnesota would have mandated that the SIGTARP include within 
its required regular reports to Congress information on how the 
TARP is being used to benefit small financial institutions, 
such as community banks. (A second degree amendment to the 
Paulsen amendment was adopted by voice vote that directed the 
SIGTARP to report to Congress on efforts by recipients of TARP 
funds to utilize women, minorities, and women and minority 
owned businesses.)
    Hensarling amendment. Mr. Hensarling of Texas offered an 
amendment that would have explicitly required SIGTARP to review 
the Treasury Department's efforts to ``minimize any potential 
long-term negative impact on the taxpayer'' in its 
implementation of TARP.
    Lee amendment. Mr. Lee of New York offered an amendment to 
improve oversight of TARP by requiring the SIGTARP to 
immediately seek out and hire as subcontractors private 
auditors who are knowledgeable in the operation of financial 
institutions.

                                   Spencer Bachus.
                                   Jeb Hensarling.
                                   Judy Biggert.
                                   Christopher Lee.
                                   Erik Paulsen.

                                  
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