IB 
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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the ‘‘Im-
proved Financial and Commodity Markets Oversight and 
Accountability Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Elevation of certain Inspectors General to appointment pursuant to sec-
tion 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 iden-
tified by Inspectors General. 
Sec. 6. Effective date; transition rule. 
SEC. 2. ELEVATION OF CERTAIN INSPECTORS GENERAL TO 
APPOINTMENT PURSUANT TO SECTION 3 OF 
THE INSPECTOR GENERAL ACT OF 1978. 
(a) INCLUSION IN CERTAIN DEFINITIONS.—Section 12 
of the Inspector General Act of 1978 (5 U.S.C. App.) is 
amended— 
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(1) in paragraph (1), by striking ‘‘or the Federal 
Cochairpersons of the Commissions established under 
section 15301 of title 40, United States Code;’’ and 
inserting ‘‘the Federal Cochairpersons of the Commis-
sions established under section 15301 of title 40, 
United States Code; the Chairman of the Board of 
Governors of the Federal Reserve System; the Chair-
man of the Commodity Futures Trading Commission; 
the Chairman of the National Credit Union Adminis-
tration; the Director of the Pension Benefit Guaranty 
Corporation; or the Chairman of the Securities and 
Exchange Commission;’’; and 
(2) in paragraph (2), by striking ‘‘or the Com-
missions established under section 15301 of title 40, 
United States Code,’’ and inserting ‘‘the Commissions 
established under section 15301 of title 40, United 
States Code, the Board of Governors of the Federal 
Reserve System, the Commodity Futures Trading 
Commission, the National Credit Union Administra-
tion, the Pension Benefit Guaranty Corporation, or 
the Securities and Exchange Commission,’’. 
(b) EXCLUSION FROM DEFINITION OF DESIGNATED 
FEDERAL ENTITY.—Section 8G(a)(2) of the Inspector Gen-
eral Act of 1978 (5 U.S.C. App.) is amended— 
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(1) by striking ‘‘the Board of Governors of the 
Federal Reserve System,’’; 
(2) by striking ‘‘the Commodity Futures Trading 
Commission,’’; 
(3) by striking ‘‘the National Credit Union Ad-
ministration,’’; and 
(4) by striking ‘‘the Pension Benefit Guaranty 
Corporation, the Securities and Exchange Commis-
sion,’’. 
SEC. 3. CONTINUATION OF PROVISIONS RELATING TO PER-
SONNEL. 
(a) IN GENERAL.—The Inspector General Act of 1978 
(5 U.S.C. App.) is amended by inserting after section 8L 
the following: 
‘‘SEC. 8M. SPECIAL PROVISIONS CONCERNING CERTAIN ES-
TABLISHMENTS. 
‘‘(a) DEFINITION.—For purposes of this section, the 
term ‘covered establishment’ means the Board of Governors 
of the Federal Reserve System, the Commodity Futures 
Trading Commission, the National Credit Union Adminis-
tration, the Pension Benefit Guaranty Corporation, and the 
Securities and Exchange Commission. 
‘‘(b) PROVISIONS RELATING TO ALL COVERED ESTAB-
LISHMENTS.— 
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‘‘(1) PROVISIONS RELATING TO INSPECTORS GEN-
ERAL.—In the case of the Inspector General of a cov-
ered establishment, subsections (b) and (c) of section 
4 of the Inspector General Reform Act of 2008 (Public 
Law 110–409) shall apply in the same manner as if 
such covered establishment were a designated Federal 
entity under section 8G. An Inspector General who is 
subject to the preceding sentence shall not be subject 
to section 3(e). 
‘‘(2) PROVISIONS
RELATING
TO
OTHER
PER-
SONNEL.—Notwithstanding paragraphs (7) and (8) of 
section 6(a), the Inspector General of a covered estab-
lishment may select, appoint, and employ such offi-
cers and employees as may be necessary for carrying 
out the functions, powers, and duties of the Office of 
Inspector General of such establishment and to obtain 
the temporary or intermittent services of experts or 
consultants or an organization of experts or consult-
ants, subject to the applicable laws and regulations 
that govern such selections, appointments, and em-
ployment, and the obtaining of such services, within 
such establishment. 
‘‘(c) PROVISION RELATING TO THE BOARD OF GOV-
ERNORS OF THE FEDERAL RESERVE SYSTEM.—The provi-
sions of subsection (a) of section 8D (other than the provi-
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sions of subparagraphs (A), (B), (C), and (E) of paragraph 
(1) of such subsection (a)) shall apply to the Inspector Gen-
eral of the Board of Governors of the Federal Reserve Sys-
tem and the Chairman of the Board of Governors of the 
Federal Reserve System in the same manner as such provi-
sions apply to the Inspector General of the Department of 
the Treasury and the Secretary of the Treasury, respec-
tively.’’. 
(b) CONFORMING AMENDMENT.—Paragraph (3) of sec-
tion 8G(g) of the Inspector General Act of 1978 (5 U.S.C. 
App.) is repealed. 
SEC. 4. SUBPOENA AUTHORITY OF CERTAIN INSPECTORS 
GENERAL. 
The Inspector General of the Board of Governors of the 
Federal Reserve System, the Commodity Futures Trading 
Commission, the National Credit Union Administration, 
the Pension Benefit Guaranty Corporation, or the Securi-
ties and Exchange Commission, in carrying out the provi-
sions of the Inspector General Act of 1978 (5 U.S.C. App), 
is authorized to require by subpoena, from any officer or 
employee of a contractor or grantee of the establishment, 
any officer or employee of a subcontractor or subgrantee of 
such a contractor or grantee, or any person or entity regu-
lated by the establishment, any records and testimony nec-
essary in the performance of functions assigned to the In-
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spector General under such Act. Any such subpoena, in the 
case of contumacy or refusal to obey, shall be enforceable 
by order of any appropriate United States district court. 
SEC. 5. CORRECTIVE RESPONSES BY HEADS OF CERTAIN 
ESTABLISHMENTS TO DEFICIENCIES IDENTI-
FIED BY INSPECTORS GENERAL. 
The Chairman of the Board of Governors of the Federal 
Reserve System, the Chairman of the Commodity Futures 
Trading Commission, the Chairman of the National Credit 
Union Administration, the Director of the Pension Benefit 
Guaranty Corporation, and the Chairman of the Securities 
and Exchange Commission shall each— 
(1) take action to address deficiencies identified 
by a report or investigation of the Inspector General 
of the establishment concerned; or 
(2) certify to both Houses of Congress that no ac-
tion is necessary or appropriate in connection with a 
deficiency described in paragraph (1). 
SEC. 6. EFFECTIVE DATE; TRANSITION RULE. 
(a) EFFECTIVE DATE.—This Act and the amendments 
made by this Act shall take effect 30 days after the date 
of the enactment of this Act. 
(b) TRANSITION RULE.—An individual serving as In-
spector General of the Board of Governors of the Federal 
Reserve System, the Commodity Futures Trading Commis-
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sion, the National Credit Union Administration, the Pen-
sion Benefit Guaranty Corporation, or the Securities and 
Exchange Commission on the effective date of this Act pur-
suant to an appointment made under section 8G of the In-
spector General Act of 1978 (5 U.S.C. App.)— 
(1) may continue so serving until the President 
makes an appointment under section 3(a) of such Act 
with respect to the Board of Governors of the Federal 
Reserve System, the Commodity Futures Trading 
Commission, the National Credit Union Administra-
tion, the Pension Benefit Guaranty Corporation, or 
the Securities and Exchange Commission, as the case 
may be, consistent with the amendments made by sec-
tion 2; and 
(2) shall, while serving under paragraph (1), re-
main subject to the provisions of section 8G of such 
Act which, immediately before the effective date of this 
Act, applied with respect to the Inspector General of 
the Board of Governors of the Federal Reserve System, 
the Commodity Futures Trading Commission, the Na-
tional Credit Union Administration, the Pension 
Benefit Guaranty Corporation, or the Securities and 
Exchange Commission, as the case may be, and suffer 
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 
entities to an Inspector General appointed pursu-
ant to section 3 of the Inspector General Act of 
1978. 
MAY 18, 2009 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
VerDate Nov 24 2008 
01:23 May 19, 2009
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