I 
112TH CONGRESS 
1ST SESSION H. R. 1401 
To amend the Federal Reserve Act to alter the terms and conditions applica-
ble to members of the Board of Governors of the Federal Reserve 
System, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 6, 2011 
Ms. KAPTUR introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To amend the Federal Reserve Act to alter the terms and 
conditions applicable to members of the Board of Gov-
ernors of the Federal Reserve System, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Democratizing the 
Federal Reserve System Act of 2011’’. 
SEC. 2. AMENDMENTS TO FEDERAL RESERVE ACT. 
(a) REDUCTION IN LENGTH OF TERMS.— 
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(1) The first sentence of the first undesignated 
paragraph of section 10 of the Federal Reserve Act 
(12 U.S.C. 241) is amended by striking ‘‘fourteen 
years’’ and inserting ‘‘7 years’’. 
(2) The 2nd sentence of the 2nd undesignated 
paragraph of section 10 of the Federal Reserve Act 
(12 U.S.C. 242) is amended by striking ‘‘fourteen 
years’’ the 2nd place such term appears and insert-
ing ‘‘7 years’’. 
(3) The ultimate sentence of the 2nd undesig-
nated paragraph of section 10 of the Federal Re-
serve Act (12 U.S.C. 242) is amended by striking 
‘‘fourteen years’’ and inserting ‘‘7 years’’. 
(b) INCREASE IN POST-SERVICE RESTRICTION.—The 
first sentence of the 2nd undesignated paragraph of sec-
tion 10 of the Federal Reserve Act (12 U.S.C. 242) is 
amended by striking ‘‘two years’’ and inserting ‘‘4 years’’. 
(c) ONGOING SERVICE
ON BOARD REQUIREMENT 
FOR CHAIRMAN AND VICE CHAIRMAN.— 
(1) CHAIRMAN.—The 3rd sentence of the 2nd 
undesignated paragraph of section 10 of the Federal 
Reserve Act (12 U.S.C. 242) is amended by striking 
‘‘1 shall be designated’’ and inserting ‘‘a member 
who is currently serving on the Board and has al-
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ready served at least 2 consecutive years on the 
Board shall be designated’’. 
(2) VICE CHAIRMAN.—The 3rd sentence of the 
2nd undesignated paragraph of section 10 of the 
Federal Reserve Act (12 U.S.C. 242) is amended by 
striking ‘‘2 shall be designated’’ and inserting ‘‘2 
members who are currently serving on the Board 
and have already served at least 1 year on the 
Board, shall be designated’’. 
(d) LIMITATION ON CONTINUING VACANCIES.—The 
4th undesignated paragraph of section 10 of the Federal 
Reserve Act (12 U.S.C. 244) is amended— 
(1) in the ultimate sentence, by inserting ‘‘, be-
fore the end of the 90-day period beginning on the 
date such vacancy occurs,’’ after ‘‘shall be ap-
pointed’’; and 
(2) by adding at the end the following new sen-
tences: ‘‘If, as of 30 days after the end of such 90- 
day period, no nomination has been made by the 
President, the chairperson and ranking Member of 
the Committees of the House of Representatives and 
the Senate which have jurisdiction over this Act, 
under the rules of the respective House, the Speaker 
and the minority leader of the House of Representa-
tives, and the majority leader and minority leader of 
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the Senate shall jointly create a list of 5 candidates 
in rank order to present to the President for consid-
eration for the vacancy. Not later than 30 days after 
the transmittal of such list to the President, the 
President shall nominate a person, whether from 
such list or another person, to fill the vacancy.’’. 
(e) AMENDMENTS RELATING
TO FEDERAL OPEN 
MARKET COMMITTEE.— 
(1) INCREASE
IN
FEDERAL
RESERVE
BANK 
REPRESENTATION.—The 1st sentence of section 
12A(a) of the Federal Reserve Act (12 U.S.C. 263) 
is amended by striking ‘‘five’’ and inserting ‘‘6’’. 
(2) DISTRIBUTION OF FEDERAL RESERVE BANK 
MEMBERSHIP.—Section 12A(a) of the Federal Re-
serve Act (12 U.S.C. 263) is amended by striking 
the 2nd sentence and inserting the following: ‘‘Such 
representatives shall be presidents or first vice presi-
dents of Federal reserve banks and shall be elected 
annually as follows: In even numbered calendar 
years, from among the presidents and first vice 
presidents of the Federal Reserve Banks of Boston, 
Kansas City, Philadelphia, San Francisco, Rich-
mond, and St. Louis and in odd numbered calendar 
years from among the presidents and first vice presi-
dents of the Federal Reserve Banks of New York, 
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Dallas, Chicago, Cleveland, Atlanta, and Min-
neapolis.’’. 
Æ 
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