pany (as defined in section 3(w)(1) of the Federal
Deposit Insurance Act).
‘‘(g) CHAIRPERSON AND FEDERAL RESERVE AGENT;
DEPUTY CHAIRPERSON.—
‘‘(1) CHAIRPERSON
AND
FEDERAL
RESERVE
AGENT.—The Board shall designate 1 of the class B
members as the chairperson of the board of directors
of a Federal reserve bank and as the Federal reserve
agent for the district of such bank.
‘‘(2) 
PROVISIONS
RELATING
TO
CHAIR-
PERSON.—
‘‘(A) REPORTS TO AND REPRESENTATION
OF
THE
BOARD
OF
GOVERNORS.—The chair-
person of the board of directors of a Federal re-
serve bank shall—
‘‘(i) make regular reports to the
Board; and
‘‘(ii) shall act as the official represent-
ative of the Board for the performance of
the functions conferred upon the Board by
this Act.
‘‘(B) COMPENSATION.—The chairperson of
the board of directors of a Federal reserve bank
shall receive an annual compensation to be fixed
by the Board and paid monthly by the Federal
reserve bank.
‘‘(3) DEPUTY CHAIRPERSON.—The Board shall
designate 1 of the class B directors of the board of
directors of each Federal reserve bank as the deputy
chairperson of such board of directors who shall, in
the absence or disability of the chairperson or during
a vacancy in the office of chairperson, serve as
chairperson of the board of directors.
‘‘(4) OTHER ACTING CHAIRPERSON.—In the ab-
sence or disability of the chairperson and deputy
chairperson of the board of directors of a Federal
district bank or during a vacancy in the offices of
chairperson and deputy chairperson, the Board shall
designate another class B director as the acting
chairperson of the board of directors.
‘‘(h) ASSISTANT FEDERAL RESERVE AGENTS.—
‘‘(1) 
APPOINTMENT.—The 
Federal 
reserve
agent shall appoint 1 or more assistant Federal re-
serve agents from among individuals with tested
banking experience.
‘‘(2) DUTIES AND POWERS OF ASSISTANTS.—
Assistant Federal reserve agents shall—
‘‘(A) assist the Federal reserve agent in
the performance of the duties of the office; and
‘‘(B) shall have power to act in the Federal
reserve agent’s name and stead during the ab-
sence or disability of such agent or a vacancy
in the office of the Federal reserve agent.
‘‘(3) BONDS.—The Board of Governors of the
Federal Reserve System shall require such bonds of
the assistant Federal reserve agents as the Board
may deem necessary for the protection of the United
States.
‘‘(4) COMPENSATION.—Assistant Federal re-
serve agents shall receive an annual compensation,
to be fixed and paid in the same manner as that of
the Federal reserve agent.
‘‘(i) COMPENSATION AND EXPENSES OF DIRECTORS,
OFFICERS, AND EMPLOYEES.—
‘‘(1) TRAVEL EXPENSES.—Directors of Federal
reserve banks shall receive, in addition to any com-
pensation otherwise provided, a reasonable allowance
for necessary expenses in attending meetings of their
respective boards, which amounts shall be paid by
the respective Federal reserve banks.
‘‘(2) COMPENSATION
SUBJECT
TO
REVIEW.—
Any compensation that may be provided by boards
of directors of Federal reserve banks for directors,
officers, or employees shall be subject to the ap-
proval of the Board of Governors of the Federal Re-
serve System.
‘‘(j) PUBLICATION OF RESULTS OF ELECTIONS AND
APPOINTMENTS OF DIRECTORS.—Notice of the appoint-
ment or election of any member of the board of directors
of any Federal reserve bank shall be published by the
Board or the Federal reserve bank as soon as practicable
after the appointment or election in newspapers of general
circulation in the district of the bank.
‘‘(k) DEFINITIONS.—For purposes of this section and
section 3(b)(3)—
‘‘(1) CONSUMER
AND
COMMUNITY
ORGANIZA-
TION.—The term ‘consumer and community organi-
zation’ means any organization which has more than
a 2-year history of representing consumer or com-
munity interests in the provision of banking services,
services in connection with meeting credit needs, or
housing and financial consumer protections.
‘‘(2) MINORITY.—The term ‘minority’ has the
meaning given to such term in section 1204(c)(3) of
the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect at the end of the 1-year
period beginning on the date of the enactment of this Act,
except that regulations necessary to carry out the effect
of the amendment may be prescribed by the Board of Gov-
ernors of the Federal Reserve System before the end of
such period.
(c) STAGGERED APPOINTMENTS.—
(1) TERMINATION OF TERMS OF BOARD OF DI-
RECTORS OF FEDERAL RESERVE BANKS.—Notwith-
standing any provision of section 4 of the Federal
Reserve Act (as in effect on the day before the date
of the enactment of this Act), the term of office of
any member of the board of directors and any presi-
dent of any Federal reserve bank shall terminate at
the end of the 1-year period referred to in subsection
(b).
(2) APPOINTMENT
OF
PRESIDENTS
OF
FED-
ERAL RESERVE BANKS.—Of the presidents of the
Federal reserve banks first appointed after the end
of the 1-year period referred to in subsection (b)—
(A) 3 shall be appointed for a term of 5
years;
(B) 3 shall be appointed for a term of 4
years;
(C) 2 shall be appointed for a term of 3
years;
(D) 2 shall be appointed for a term of 2
years; and
(E) 2 shall be appointed for a term of 1
year,
as designated by the President at the time of the ap-
pointment.
(3) ELECTION OF CLASS A MEMBERS.—Of the
class A members of the boards of directors of each
Federal reserve bank first elected after the end of
the 1-year period referred to in subsection (b)—
(A) 1 shall be elected for a term of 3
years;
(B) 1 shall be elected for a term of 2
years; and
(C) 1 shall be elected for a term of 1 year,
as designated by the Board of Governors of the Fed-
eral Reserve System.
(4) APPOINTMENT OF CLASS B MEMBERS.—Of
the class B members of the boards of directors of
each Federal reserve bank first appointed after the
end of the 1-year period referred to in subsection
(b)—
(A) 2 shall be appointed for a term of 3
years;
(B) 2 shall be appointed for a term of 2
years; and
(C) 2 shall be appointed for a term of 1
year,
as designated by the Board of Governors of the Fed-
eral Reserve System.
SEC. 3. INDEPENDENT AUDITS OF FEDERAL RESERVE
BOARD AND FEDERAL RESERVE BANKS RE-
QUIRED.
(a) IN GENERAL.—The Federal Reserve Act is
amended by inserting after section 11A (12 U.S.C. 248a)
the following new section:
‘‘SEC. 11B. INDEPENDENT AUDITS.
‘‘The financial statement of the Board and each Fed-
eral reserve bank shall be audited annually in accordance
with generally accepted auditing standards by an inde-
pendent certified public accountant.’’.
(b) REPEAL OF EXCEPTIONS TO GAO AUDIT AU-
THORITY.—Section 714(b) of title 31, United States Code,
is amended by striking ‘‘Audits of the Federal Reserve
Board and Federal reserve banks may not include—’’ and
all that follows through the period at the end.
SEC. 4. PROMPT PUBLIC DISCLOSURE OF OPEN MARKET
COMMITTEE MEETINGS.
Section 12A of the Federal Reserve Act (12 U.S.C.
263) is amended by adding at the end the following new
subsection:
‘‘(d) PROMPT
PUBLIC
DISCLOSURES
OF
MEET-
INGS.—
‘‘(1) TRANSCRIPTION AND VIDEOTAPE OF EACH
MEETING.—A written copy of the minutes of each
meeting of the Federal Open Market Committee and
a transcription and a videotape of the discussion at
each such meeting shall be made available to the
public before the end of the 60-day period beginning
on the date of the meeting and shall be treated as
a Government publication for purposes of making
such material available to depository libraries
through the facilities of the Superintendent of Docu-
ments in accordance with chapter 19 of title 41,
United States Code.
‘‘(2) PROMPT
DISCLOSURE
OF
POLICY
AC-
TIONS.—An explicit, written description of any de-
termination, decision, directive, or other conclusion
made by the Federal Open Market Committee at
any meeting of the committee, including any direc-
tive or instruction sent to any Federal reserve bank
or Federal reserve agent in connection with any
open market operation shall be made available to the
public by the end of the 1-week period beginning on
the date of the meeting.
‘‘(3) MEETING
INCLUDES
EXECUTIVE
SES-
SION.—For purposes of this subsection, the term
‘meeting’ includes any executive session of the Fed-
eral Open Market Committee or any informal meet-
ing or other occasion at which a quorum of the
members of the committee are present.’’.
SEC. 5. ELIGIBILITY REQUIREMENTS FOR BOARD OF DI-
RECTORS OF BRANCHES OF FEDERAL RE-
SERVE BANKS.
Section 3 of the Federal Reserve Act (12 U.S.C. 521)
is amended—
(1) in the 1st paragraph—
(A) by striking ‘‘SEC. 3. The Board of
Governors of the Federal Reserve System’’ and
inserting the following:
‘‘SEC. 3. FEDERAL RESERVE BANK BRANCH OFFICES.
‘‘(a) ESTABLISHMENT OF BRANCHES.—The Board’’;
and
(B) by striking the 2d and 3d sentences;
(2) in the 2d paragraph, by striking ‘‘The
Board of Governors of the Federal Reserve System’’
and inserting the following:
‘‘(c) DISCONTINUANCE OF BRANCHES.—The Board’’;
(3) in the 3d paragraph, by striking ‘‘No Fed-
eral Reserve Bank’’ and inserting the following:
‘‘(d) CONSTRUCTION OF BRANCH BUILDINGS.—No
Federal reserve bank’’; and
(4) by inserting after subsection (a) (as so des-
ignated by the amendment made by paragraph
(1)(A) of this section) the following new subsection:
‘‘(b) MANAGEMENT OF BRANCHES.—
‘‘(1) BOARD OF DIRECTORS.—Subject to such
regulations as the Board may prescribe, each branch
of a Federal reserve bank shall be under the super-
vision of a board of directors composed of not fewer
than 3 members and not more than 7 members ap-
pointed as follows:
‘‘(A) A majority of 1 of the members ap-
pointed by the Federal reserve bank.
‘‘(B) The remainder of the members ap-
pointed by the Board.
‘‘(2) TERMS.—Members of the board of direc-
tors of a branch of a Federal reserve bank shall hold
office at the pleasure of the Board.
‘‘(3) DIVERSIFIED
REPRESENTATION.—In ap-
pointing members of the board of directors of any
branch of a Federal reserve bank, the Board and the