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Union Calendar No. 57 

111TH CONGRESS 

1ST SESSION H. R. 885 

[Report No. 111–114] 

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 HOUSE OF REPRESENTATIVES 

FEBRUARY 4, 2009 

Mr. LARSON of Connecticut (for himself, Mr. HINCHEY, Mr. HOLT, Mr. 

DEFAZIO, Mr. NYE, and Mr. TOWNS) introduced the following bill; which 

was referred to the Committee on Oversight and Government Reform 

MAY 18, 2009 

Additional sponsors: Mr. RYAN of Ohio, Mr. CAPUANO, Mr. BOCCIERI, Mr. 

STUPAK, Mr. WEXLER, Mr. PASCRELL, Mr. MURPHY of Connecticut, Mr. 

KIND, Mr. COURTNEY, Mr. TAYLOR, Mr. MURTHA, Mr. HASTINGS of 

Florida, Mr. JACKSON of Illinois, Mr. DAVIS of Illinois, Mr. CLEAVER, 

Mr. GONZALEZ, Mr. MEEKS of New York, Mr. PAYNE, Mr. WATT, Mr. 

AL GREEN of Texas, Ms. LINDA T. SA ́NCHEZ of California, Mr. DOYLE, 

Ms. ESHOO, Mr. MICHAUD, Mr. BRADY of Texas, Mr. HIGGINS, Ms. 

DELAURO, Mr. BISHOP of New York, Mr. LOBIONDO, Mr. PLATTS, Mr. 

BRADY of Pennsylvania, and Mr. SCHIFF

MAY 18, 2009 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 


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[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on February 4, 2009] 

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 ‘‘Im5 proved Financial and Commodity Markets Oversight and 

6 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. 

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. 

9 SEC. 2. ELEVATION OF CERTAIN INSPECTORS GENERAL TO 

10 APPOINTMENT PURSUANT TO SECTION 3 OF 

11 THE INSPECTOR GENERAL ACT OF 1978. 

12 (a) INCLUSION IN CERTAIN DEFINITIONS.—Section 12 

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

14 amended— 


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1 (1) in paragraph (1), by striking ‘‘or the Federal 

2 Cochairpersons of the Commissions established under 

3 section 15301 of title 40, United States Code;’’ and 

4 inserting ‘‘the Federal Cochairpersons of the Commis5 sions established under section 15301 of title 40, 

6 United States Code; the Chairman of the Board of 

7 Governors of the Federal Reserve System; the Chair8 man of the Commodity Futures Trading Commission; 

9 the Chairman of the National Credit Union Adminis10 tration; the Director of the Pension Benefit Guaranty 

11 Corporation; or the Chairman of the Securities and 

12 Exchange Commission;’’; and 

13 (2) in paragraph (2), by striking ‘‘or the Com14 missions established under section 15301 of title 40, 

15 United States Code,’’ and inserting ‘‘the Commissions 

16 established under section 15301 of title 40, United 

17 States Code, the Board of Governors of the Federal 

18 Reserve System, the Commodity Futures Trading 

19 Commission, the National Credit Union Administra20 tion, the Pension Benefit Guaranty Corporation, or 

21 the Securities and Exchange Commission,’’. 

22 (b) EXCLUSION FROM DEFINITION OF DESIGNATED

23 FEDERAL ENTITY.—Section 8G(a)(2) of the Inspector Gen24 eral Act of 1978 (5 U.S.C. App.) is amended— 


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

2 Federal Reserve System,’’; 

3 (2) by striking ‘‘the Commodity Futures Trading 

4 Commission,’’; 

5 (3) by striking ‘‘the National Credit Union Ad6 ministration,’’; and 

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

8 Corporation, the Securities and Exchange Commis9 sion,’’. 

10 SEC. 3. CONTINUATION OF PROVISIONS RELATING TO PER11 SONNEL. 

12 (a) IN GENERAL.—The Inspector General Act of 1978 

13 (5 U.S.C. App.) is amended by inserting after section 8L 

14 the following: 

15 ‘‘SEC. 8M. SPECIAL PROVISIONS CONCERNING CERTAIN ES16 TABLISHMENTS. 

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

18 term ‘covered establishment’ means the Board of Governors 

19 of the Federal Reserve System, the Commodity Futures 

20 Trading Commission, the National Credit Union Adminis21 tration, the Pension Benefit Guaranty Corporation, and the 

22 Securities and Exchange Commission. 

23 ‘‘(b) PROVISIONS RELATING TO ALL COVERED ESTAB24 LISHMENTS.— 


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1 ‘‘(1) PROVISIONS RELATING TO INSPECTORS GEN2 ERAL.—In the case of the Inspector General of a cov3 ered establishment, subsections (b) and (c) of section 

4 4 of the Inspector General Reform Act of 2008 (Public 

5 Law 110–409) shall apply in the same manner as if 

6 such covered establishment were a designated Federal 

7 entity under section 8G. An Inspector General who is 

8 subject to the preceding sentence shall not be subject 

9 to section 3(e). 

10 ‘‘(2) PROVISIONS RELATING TO OTHER PER11 SONNEL.—Notwithstanding paragraphs (7) and (8) of 

12 section 6(a), the Inspector General of a covered estab13 lishment may select, appoint, and employ such offi14 cers and employees as may be necessary for carrying 

15 out the functions, powers, and duties of the Office of 

16 Inspector General of such establishment and to obtain 

17 the temporary or intermittent services of experts or 

18 consultants or an organization of experts or consult19 ants, subject to the applicable laws and regulations 

20 that govern such selections, appointments, and em21 ployment, and the obtaining of such services, within 

22 such establishment. 

23 ‘‘(c) PROVISION RELATING TO THE BOARD OF GOV24 ERNORS OF THE FEDERAL RESERVE SYSTEM.—The provi25 sions of subsection (a) of section 8D (other than the proviVerDate Nov 24 2008 01:23 May 19, 2009 Jkt 079200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6203 E:\BILLS\H885.RH H885

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1 sions of subparagraphs (A), (B), (C), and (E) of paragraph 

2 (1) of such subsection (a)) shall apply to the Inspector Gen3 eral of the Board of Governors of the Federal Reserve Sys4 tem and the Chairman of the Board of Governors of the 

5 Federal Reserve System in the same manner as such provi6 sions apply to the Inspector General of the Department of 

7 the Treasury and the Secretary of the Treasury, respec8 tively.’’. 

9 (b) CONFORMING AMENDMENT.—Paragraph (3) of sec10 tion 8G(g) of the Inspector General Act of 1978 (5 U.S.C. 

11 App.) is repealed. 

12 SEC. 4. SUBPOENA AUTHORITY OF CERTAIN INSPECTORS 

13 GENERAL. 

14 The Inspector General of the Board of Governors of the 

15 Federal Reserve System, the Commodity Futures Trading 

16 Commission, the National Credit Union Administration, 

17 the Pension Benefit Guaranty Corporation, or the Securi18 ties and Exchange Commission, in carrying out the provi19 sions of the Inspector General Act of 1978 (5 U.S.C. App), 

20 is authorized to require by subpoena, from any officer or 

21 employee of a contractor or grantee of the establishment, 

22 any officer or employee of a subcontractor or subgrantee of 

23 such a contractor or grantee, or any person or entity regu24 lated by the establishment, any records and testimony nec25 essary in the performance of functions assigned to the InVerDate Nov 24 2008 01:23 May 19, 2009 Jkt 079200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6203 E:\BILLS\H885.RH H885

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1 spector General under such Act. Any such subpoena, in the 

2 case of contumacy or refusal to obey, shall be enforceable 

3 by order of any appropriate United States district court. 

4 SEC. 5. CORRECTIVE RESPONSES BY HEADS OF CERTAIN 

5 ESTABLISHMENTS TO DEFICIENCIES IDENTI6 FIED BY INSPECTORS GENERAL. 

7 The Chairman of the Board of Governors of the Federal 

8 Reserve System, the Chairman of the Commodity Futures 

9 Trading Commission, the Chairman of the National Credit 

10 Union Administration, the Director of the Pension Benefit 

11 Guaranty Corporation, and the Chairman of the Securities 

12 and Exchange Commission shall each— 

13 (1) take action to address deficiencies identified 

14 by a report or investigation of the Inspector General 

15 of the establishment concerned; or 

16 (2) certify to both Houses of Congress that no ac17 tion is necessary or appropriate in connection with a 

18 deficiency described in paragraph (1). 

19 SEC. 6. EFFECTIVE DATE; TRANSITION RULE. 

20 (a) EFFECTIVE DATE.—This Act and the amendments 

21 made by this Act shall take effect 30 days after the date 

22 of the enactment of this Act. 

23 (b) TRANSITION RULE.—An individual serving as In24 spector General of the Board of Governors of the Federal 

25 Reserve System, the Commodity Futures Trading CommisVerDate Nov 24 2008 01:23 May 19, 2009 Jkt 079200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6203 E:\BILLS\H885.RH H885

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1 sion, the National Credit Union Administration, the Pen2 sion Benefit Guaranty Corporation, or the Securities and 

3 Exchange Commission on the effective date of this Act pur4 suant to an appointment made under section 8G of the In5 spector General Act of 1978 (5 U.S.C. App.)— 

6 (1) may continue so serving until the President 

7 makes an appointment under section 3(a) of such Act 

8 with respect to the Board of Governors of the Federal 

9 Reserve System, the Commodity Futures Trading 

10 Commission, the National Credit Union Administra11 tion, the Pension Benefit Guaranty Corporation, or 

12 the Securities and Exchange Commission, as the case 

13 may be, consistent with the amendments made by sec14 tion 2; and 

15 (2) shall, while serving under paragraph (1), re16 main subject to the provisions of section 8G of such 

17 Act which, immediately before the effective date of this 

18 Act, applied with respect to the Inspector General of 

19 the Board of Governors of the Federal Reserve System, 

20 the Commodity Futures Trading Commission, the Na21 tional Credit Union Administration, the Pension 

22 Benefit Guaranty Corporation, or the Securities and 

23 Exchange Commission, as the case may be, and suffer 

24 no reduction in pay. 


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Union Calendar No. 57 

111TH CONGRESS 

1ST SESSION H. R. 885 

[Report No. 111–114] 

A BILL 

To elevate the Inspector General of certain Federal 

1978. ant to section 3 of the Inspector General Act of entities to an Inspector General appointed pursuMAY 18, 2009 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


wwoods2 on PRODPC68 with BILLS