IB 

Union Calendar No. 69

108TH CONGRESS 

1ST SESSION H. R. 658

[Report No. 108–63, Part I] 

To provide for the protection of investors, increase confidence in the capital 

markets system, and fully implement the Sarbanes-Oxley Act of 2002 

by streamlining the hiring process for certain employment positions in 

the Securities and Exchange Commission. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 11, 2003

Mr. BAKER (for himself and Mr. OXLEY) introduced the following bill; which 

was referred to the Committee on Financial Services, and in addition to 

the Committee on Government Reform, for a period to be subsequently 

determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

APRIL 8, 2003

Reported from the Committee on Financial Services with an amendment 

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

APRIL 8, 2003

Referral to the Committee on Government Reform extended for a period 

ending not later than June 2, 2003

JUNE 2, 2003

Committee on Government Reform discharged; committed to the Committee 

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

A BILL

To provide for the protection of investors, increase confidence 

in the capital markets system, and fully implement the 
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Sarbanes-Oxley Act of 2002 by streamlining the hiring 

process for certain employment positions in the Securities 

and Exchange Commission.

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. 

4 This Act may be cited as the ‘‘Accountant, Compli5 ance, and Enforcement Staffing Act of 2003’’. 

6 SEC. 2. EXCEPTED SERVICE OF ACCOUNTANTS, ECONO7 MISTS, AND EXAMINERS. 

8 Section 4(b) of the Securities Exchange Act of 1934 

9 (15 U.S.C. 78d(b)) is amended—

10 (1) by redesignating paragraph (3) as para11 graph (4); and 

12 (2) by inserting after paragraph (2) the fol13 lowing new paragraph: 

14 ‘‘(3) ACCOUNTANTS, ECONOMISTS, AND COMPLI15 ANCE EXAMINERS EXCEPTED FROM COMPETITIVE

16 SERVICE.—All accountant, economist, and securities 

17 compliance examiner positions in the Securities and 

18 Exchange Commission shall be excepted from the 

19 competitive service, as defined in section 2102 of 

20 title 5, United States Code. An employee who is in 

21 the competitive service at the time his or her posi22 tion becomes excepted from the competitive service 

23 under this paragraph shall be considered as con-
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1 tinuing in the competitive service as long as he or 

2 she continues to occupy such position.’’.

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Accountant, Compliance, 

5 and Enforcement Staffing Act of 2003’’. 

6 SEC. 2. ACCOUNTANTS, ECONOMISTS, AND EXAMINERS AP7 POINTMENTS. 

8 Section 4(b) of the Securities Exchange Act of 1934 

9 (15 U.S.C. 78d(b)) is amended—

10 (1) by redesignating paragraph (3) as para11 graph (4); and 

12 (2) by inserting after paragraph (2) the fol13 lowing new paragraph: 

14 ‘‘(3) ACCOUNTANTS, ECONOMISTS, AND COMPLI15 ANCE EXAMINERS APPOINTMENTS.—

16 ‘‘(A) APPOINTMENT AUTHORITY.—

17 ‘‘(i) This subparagraph applies with 

18 respect to any position of accountant, econo19 mist, and securities compliance examiner at 

20 the Commission that is in the competitive 

21 service. 

22 ‘‘(ii) The Commission may appoint 

23 candidates to any position described in 

24 clause (i) in accordance with the statutes, 

25 rules, and regulations governing appoint-
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1 ments in the excepted service, and notwith2 standing any statutes, rules, and regula3 tions governing appointments in the com4 petitive service. 

5 ‘‘(iii) The appointment of a candidate 

6 to a position under authority of this sub7 paragraph shall not be considered to cause 

8 such position to be converted from the com9 petitive service to the excepted service. 

10 ‘‘(iv) For purposes of this subpara11 graph, the terms ‘competitive service’ and 

12 ‘excepted service’ have the respective mean13 ings given them under chapter 21 of title 5, 

14 United States Code. 

15 ‘‘(B) REPORTS.—No later than 90 days 

16 after the end of fiscal year 2003 (for fiscal year 

17 2003) and 90 days after the end of fiscal year 

18 2005 (for fiscal years 2004 and 2005), the Com19 mission shall submit a report with respect to its 

20 exercise of the authority granted by subpara21 graph (A) during such fiscal years to the Com22 mittee on Financial Services of the House of 

23 Representatives and the Committee on Banking, 

24 Housing, and Urban Affairs of the Senate. Such 

25 reports shall describe the changes in the hiring 
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1 process authorized by such subparagraph, includ2 ing relevant information related to—

3 ‘‘(i) the quality of candidates; 

4 ‘‘(ii) the procedures used by the Com5 mission to select candidates through the 

6 streamlined hiring process; 

7 ‘‘(iii) the numbers, types, and grades of 

8 employees hired under the authority; 

9 ‘‘(iv) any benefits or shortcomings as10 sociated with the use of the authority; 

11 ‘‘(v) the effect of the exercise of the au12 thority on the hiring of veterans and other 

13 demographic groups; and 

14 ‘‘(vi) the way in which managers were 

15 trained in the administration of the stream16 lined hiring system.’’. 
Union Calendar No. 69

108TH CONGRESS 

1ST SESSION H. R. 658

[Report No. 108–63, Part I] 

A BILL

To provide for the protection of investors, increase 

confidence in the capital markets system, and fully implement the Sarbanes-Oxley Act of 2002 by streamlining the hiring process for certain employment positions in the Securities and Exchange Commission. 

JUNE 2, 2003

Committee on Government Reform discharged; committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed