II 

111TH CONGRESS 

1ST SESSION S. 1354 

To elevate the Inspector General of certain Federal entities to an Inspector 

General appointed pursuant to section 3 of the Inspector General Act 

of 1978. 

IN THE SENATE OF THE UNITED STATES 

JUNE 25, 2009 

Mr. MENENDEZ introduced the following bill; which was read twice and 

referred to the Committee on Homeland Security and Governmental Affairs 

A BILL 

To elevate the Inspector General of certain Federal entities 

to an Inspector General appointed pursuant to section 

3 of the Inspector General Act of 1978. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Improved Financial and Commodity Markets Oversight 

6 and Accountability Act’’. 

7 (b) TABLE OF CONTENTS.—The table of contents for 

8 this Act is as follows: 

Sec. 1. Short title; table of contents. 


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Sec. 2. Elevation of certain Inspectors General to appointment pursuant to section 3 of the Inspector General Act of 1978. 

Sec. 3. Continuation of provisions relating to personnel. 

Sec. 4. Subpoena authority of certain Inspectors General. 

Sec. 5. Corrective responses by heads of certain establishments to deficiencies 

identified by Inspectors General. 

Sec. 6. Effective date; transition rule. 

1 SEC. 2. ELEVATION OF CERTAIN INSPECTORS GENERAL TO 

2 APPOINTMENT PURSUANT TO SECTION 3 OF 

3 THE INSPECTOR GENERAL ACT OF 1978. 

4 (a) INCLUSION IN CERTAIN DEFINITIONS.—Section 

5 12 of the Inspector General Act of 1978 (5 U.S.C. App.) 

6 is amended— 

7 (1) in paragraph (1), by striking ‘‘or the Fed8 eral Cochairpersons of the Commissions established 

9 under section 15301 of title 40, United States 

10 Code;’’ and inserting ‘‘the Federal Cochairpersons of 

11 the Commissions established under section 15301 of 

12 title 40, United States Code; the Chairman of the 

13 Board of Governors of the Federal Reserve System; 

14 the Chairman of the Commodity Futures Trading 

15 Commission; the Chairman of the National Credit 

16 Union Administration; the Director of the Pension 

17 Benefit Guaranty Corporation; or the Chairman of 

18 the Securities and Exchange Commission;’’; and 

19 (2) in paragraph (2), by striking ‘‘or the Com20 missions established under section 15301 of title 40, 

21 United States Code,’’ and inserting ‘‘the Commis22 sions established under section 15301 of title 40, 


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1 United States Code, the Board of Governors of the 

2 Federal Reserve System, the Commodity Futures 

3 Trading Commission, the National Credit Union Ad4 ministration, the Pension Benefit Guaranty Corpora5 tion, or the Securities and Exchange Commission,’’. 

6 (b) EXCLUSION FROM DEFINITION OF DESIGNATED

7 FEDERAL ENTITY.—Section 8G(a)(2) of the Inspector 

8 General Act of 1978 (5 U.S.C. App.) is amended— 

9 (1) by striking ‘‘the Board of Governors of the 

10 Federal Reserve System,’’; 

11 (2) by striking ‘‘the Commodity Futures Trad12 ing Commission,’’; 

13 (3) by striking ‘‘the National Credit Union Ad14 ministration,’’; and 

15 (4) by striking ‘‘the Pension Benefit Guaranty 

16 Corporation, the Securities and Exchange Commis17 sion,’’. 

18 SEC. 3. CONTINUATION OF PROVISIONS RELATING TO PER19 SONNEL. 

20 (a) IN GENERAL.—The Inspector General Act of 

21 1978 (5 U.S.C. App.) is amended by inserting after sec22 tion 8L the following: 


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1 ‘‘SEC. 8M. SPECIAL PROVISIONS CONCERNING CERTAIN ES2 TABLISHMENTS. 

3 ‘‘(a) DEFINITION.—For purposes of this section, the 

4 term ‘covered establishment’ means the Board of Gov5 ernors of the Federal Reserve System, the Commodity Fu6 tures Trading Commission, the National Credit Union Ad7 ministration, the Pension Benefit Guaranty Corporation, 

8 and the Securities and Exchange Commission. 

9 ‘‘(b) PROVISIONS RELATING TO ALL COVERED ES10 TABLISHMENTS.— 

11 ‘‘(1) PROVISIONS RELATING TO INSPECTORS

12 GENERAL.—In the case of the Inspector General of 

13 a covered establishment, subsections (b) and (c) of 

14 section 4 of the Inspector General Reform Act of 

15 2008 (Public Law 110–409) shall apply in the same 

16 manner as if such covered establishment were a des17 ignated Federal entity under section 8G. An Inspec18 tor General who is subject to the preceding sentence 

19 shall not be subject to section 3(e). 

20 ‘‘(2) PROVISIONS RELATING TO OTHER PER21 SONNEL.—Notwithstanding paragraphs (7) and (8) 

22 of section 6(a), the Inspector General of a covered 

23 establishment may select, appoint, and employ such 

24 officers and employees as may be necessary for car25 rying out the functions, powers, and duties of the 

26 Office of Inspector General of such establishment 


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1 and to obtain the temporary or intermittent services 

2 of experts or consultants or an organization of ex3 perts or consultants, subject to the applicable laws 

4 and regulations that govern such selections, appoint5 ments, and employment, and the obtaining of such 

6 services, within such establishment. 

7 ‘‘(c) PROVISION RELATING TO THE BOARD OF GOV8 ERNORS OF THE FEDERAL RESERVE SYSTEM.—The pro9 visions of subsection (a) of section 8D (other than the pro10 visions of subparagraphs (A), (B), (C), and (E) of para11 graph (1) of such subsection (a)) shall apply to the Inspec12 tor General of the Board of Governors of the Federal Re13 serve System and the Chairman of the Board of Governors 

14 of the Federal Reserve System in the same manner as 

15 such provisions apply to the Inspector General of the De16 partment of the Treasury and the Secretary of the Treas17 ury, respectively.’’. 

18 (b) CONFORMING AMENDMENT.—Paragraph (3) of 

19 section 8G(g) of the Inspector General Act of 1978 (5 

20 U.S.C. App.) is repealed. 

21 SEC. 4. SUBPOENA AUTHORITY OF CERTAIN INSPECTORS 

22 GENERAL. 

23 The Inspector General of the Board of Governors of 

24 the Federal Reserve System, the Commodity Futures 

25 Trading Commission, the National Credit Union AdminisVerDate Nov 24 2008 03:39 Jun 26, 2009 Jkt 079200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1354.IS S1354

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1 tration, the Pension Benefit Guaranty Corporation, or the 

2 Securities and Exchange Commission, in carrying out the 

3 provisions of the Inspector General Act of 1978 (5 U.S.C. 

4 App.), is authorized to require by subpoena, from any offi5 cer or employee of a contractor or grantee of the establish6 ment, any officer or employee of a subcontractor or sub7 grantee of such a contractor or grantee, or any person 

8 or entity regulated by the establishment, any records and 

9 testimony necessary in the performance of functions as10 signed to the Inspector General under such Act. Any such 

11 subpoena, in the case of contumacy or refusal to obey, 

12 shall be enforceable by order of any appropriate United 

13 States district court. 

14 SEC. 5. CORRECTIVE RESPONSES BY HEADS OF CERTAIN 

15 ESTABLISHMENTS TO DEFICIENCIES IDENTI16 FIED BY INSPECTORS GENERAL. 

17 The Chairman of the Board of Governors of the Fed18 eral Reserve System, the Chairman of the Commodity Fu19 tures Trading Commission, the Chairman of the National 

20 Credit Union Administration, the Director of the Pension 

21 Benefit Guaranty Corporation, and the Chairman of the 

22 Securities and Exchange Commission shall each— 

23 (1) take action to address deficiencies identified 

24 by a report or investigation of the Inspector General 

25 of the establishment concerned; or 


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1 (2) certify to both Houses of Congress that no 

2 action is necessary or appropriate in connection with 

3 a deficiency described in paragraph (1). 

4 SEC. 6. EFFECTIVE DATE; TRANSITION RULE. 

5 (a) EFFECTIVE DATE.—This Act and the amend6 ments made by this Act shall take effect 30 days after 

7 the date of the enactment of this Act. 

8 (b) TRANSITION RULE.—An individual serving as In9 spector General of the Board of Governors of the Federal 

10 Reserve System, the Commodity Futures Trading Com11 mission, the National Credit Union Administration, the 

12 Pension Benefit Guaranty Corporation, or the Securities 

13 and Exchange Commission on the effective date of this 

14 Act pursuant to an appointment made under section 8G 

15 of the Inspector General Act of 1978 (5 U.S.C. App.)— 

16 (1) may continue so serving until the President 

17 makes an appointment under section 3(a) of such 

18 Act with respect to the Board of Governors of the 

19 Federal Reserve System, the Commodity Futures 

20 Trading Commission, the National Credit Union Ad21 ministration, the Pension Benefit Guaranty Corpora22 tion, or the Securities and Exchange Commission, as 

23 the case may be, consistent with the amendments 

24 made by section 2; and 


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1 (2) shall, while serving under paragraph (1), re2 main subject to the provisions of section 8G of such 

3 Act which, immediately before the effective date of 

4 this Act, applied with respect to the Inspector Gen5 eral of the Board of Governors of the Federal Re6 serve System, the Commodity Futures Trading Com7 mission, the National Credit Union Administration, 

8 the Pension Benefit Guaranty Corporation, or the 

9 Securities and Exchange Commission, as the case 

10 may be, and suffer no reduction in pay. 

Æ 


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