[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2424 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 2424

To require the Board of Governors of the Federal Reserve System to post 
     on its premises notices to employees regarding the applicable 
        provisions of title VII of the Civil Rights Act of 1964.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              July 1, 1999

   Mr. Jackson of Illinois (for himself, Mr. Campbell, Mr. Frank of 
Massachusetts, Mrs. Maloney of New York, Mr. Traficant, Mr. Frost, Ms. 
Lee, Ms. Schakowsky, Ms. Pelosi, Mr. Lantos, Mr. DeFazio, Mrs. Clayton, 
 Mrs. Mink of Hawaii, Mr. Clay, Mr. Cummings, Mr. Gejdenson, Mr. Brown 
of California, Mr. Owens, Mr. Hilliard, Mr. Brady of Pennsylvania, Ms. 
   Kilpatrick, Mr. Rodriguez, Mr. Pastor, Mrs. Christensen, and Ms. 
  McKinney) introduced the following bill; which was referred to the 
  Committee on Banking and Financial Services, and in addition to the 
Committees on Education and the Workforce, and 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

_______________________________________________________________________

                                 A BILL


 
To require the Board of Governors of the Federal Reserve System to post 
     on its premises notices to employees regarding the applicable 
        provisions of title VII of the Civil Rights Act of 1964.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Reserve Board Civil Rights 
Compliance Act of 1999''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) The passage of the Civil Rights Act of 1964 was a 
        milestone embodying a national policy of equal protection under 
        the law regardless of race, color, religion, sex, or national 
        origin.
            (2) Title VII of the Civil Rights Act of 1964 protects 
        individuals against discrimination in the workplace.
            (3) Section 717 of title VII of such Act applies to all 
        personnel actions affecting employees and applicants for 
        employment in an ``executive agency''.
            (4) An ``executive agency'' is defined in section 105 of 
        title 5, United States Code, to include an ``independent 
        establishment'' in the executive branch.
            (5) The Board of Governors of the Federal Reserve System 
        exercises extensive regulatory and enforcement authority as a 
        Federal banking agency (as defined in section 3 of the Federal 
        Deposit Insurance Act) with regard to State banks which are 
        members of a Federal reserve bank, bank holding companies, and 
        foreign bank operations in the United States under the Federal 
        Reserve Act, the Bank Holding Company Act of 1956, the Banking 
        Act of 1933, the International Banking Act of 1978, the Federal 
        Deposit Insurance Act, and other Federal laws, including the 
        authority to remove directors, officers, and employees from 
        their positions in banks and bank holding companies, the 
        authority to impose large civil money penalties, and the 
        authority to order the divestiture of banks by bank holding 
        companies.
            (6) The Supreme Court of the United States has stated in 
        the case of Bowsher, Comptroller General of the United States 
        v. Synar, Member of Congress, et al., 478 U.S. 714, 733 (1986), 
        that ``[i]nterpreting a law enacted by Congress to implement 
        the legislative mandate is the very essence of `execution' of 
        the law'' and noted that the exercise of judgment concerning 
        facts that affect the application of an Act is typically made 
        by officers charged with executing a statute, ibid.
            (7) The activities of the Board of Governors of the Federal 
        Reserve System clearly constitute ``execution of the law'' and 
        the Board is, therefore, clearly and unambiguously an 
        independent establishment in the executive branch (as such term 
        is used in section 104 of title 5, United States Code).
            (8) The Equal Employment Opportunity Commission, which is 
        responsible for enforcing compliance with title VII of the 
        Civil Rights Act of 1964, has consistently and properly 
        interpreted title VII as applying to the Board of Governors of 
        the Federal Reserve System.
            (9) The United States Court of Appeals for the District of 
        Columbia Circuit established, in the case of Hilliard v. 
        Volcker, 659 F.2d 1125 (D.C. Cir. 1981), that the Board of 
        Governors of the Federal Reserve System is an executive agency 
        within the meaning of section 105 of title 5, United States 
        Code, and section 717 of title VII of the Civil Rights Act of 
        1964.
            (10) The Board of Governors of the Federal Reserve System 
        did not argue to the contrary while the case of Hilliard v. 
        Volcker was before the United States Court of Appeals for the 
        District of Columbia Circuit.
            (11) On October 17, 1994, a jury in the case Bennett v. 
        Greenspan, C.A. No. 98-0813-RMU, (Dt. D.C.) found the Board of 
        Governors of the Federal Reserve liable for racial 
        discrimination, and retaliation, in violation of title VII of 
        the Civil Rights Act of 1964.
            (12) The Board of Governors of the Federal Reserve System 
        has repeatedly suggested in correspondence with the Congress 
        that such Board is not an executive agency under section 105 of 
        title 5, United States Code, and is therefore not covered by 
        title VII of the Civil Rights Act of 1964.
            (13) The Board of Governors of the Federal Reserve System 
        has acted inconsistently with current law in suggesting, 
        despite--
                    (A) the unambiguous meaning of section 105 of title 
                5, United States Code,
                    (B) the unambiguous language title VII of the Civil 
                Rights Act of 1964, and
                    (C) the clear applicability of title VII of the 
                Civil Rights Act of 1964 to the Board of Governors of 
                the Federal Reserve in several cases brought against 
                the Board in the courts of the United States,
        that the Board is not covered by title VII of the Civil Rights 
        Act of 1964.

SEC. 3. REQUIRED POSTING OF NOTICES.

    The Board of Governors of the Federal Reserve System shall post and 
keep posted in conspicuous places upon its premises where such notices 
to employees and applicants for employment are customarily posted, and 
at such other places as the Equal Employment Opportunity Commission may 
determine, a notice to be prepared or approved by the Commission 
setting forth--
            (1) excerpts from or summaries of the pertinent provisions 
        of title VII of the Civil Rights Act of 1964 (42 U.S.C. 2000e 
        et seq.), and
            (2) information pertinent to the rights and procedures 
        applicable under such Acts to employees of, and applicants for 
        employment by, the Board.

SEC. 4. REPORT ON COMPLIANCE.

    Not later than 180 days after the date of the enactment of this 
Act, the Board of Governors of the Federal Reserve System shall submit 
a report, to the Committee on Banking and Financial Services of the 
House of Representatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate, describing in detail the actions taken by 
the Board to achieve compliance with section 717 of the Civil Rights 
Act of 1964 (42 U.S.C. 2000e-16).
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